Evening star. [volume] (Washington, D.C.) 1854-1972, 1889-12-31

| THEY FILE BILLS IN EQUITY HERE AND IN
HAGERsrowN TO PREVENT SALE OF TIKI
CANAL AND TO PRESERVE IT As A WATERWAY
Gen. George s. Brown, Or. John s. Cuttings
VIM. NJ. Matthews, Frederick NJ Colston and
Bradley s. johnson, trustees of the bond hold
ers of the Chesapeake and Ohio canal company
under the act of 1874 and the mortgage of 1913
have fled bills in the Supreme Court of the
District of Columbia and the circuit court for
Washington county, Md. in equity, asking fol-
the appointment Of receiver to take charge Of
the canal. to borrow money to put it in repair
and to operate it, The bill charges that the
company Is insolvent; that it owes 81 500 500
of bonds, which are now DUE with twenty-five
years interest on them; that in May last
great freshet totally wrecked the canal
and made it useless, and that it is
now completely destroyed as a waterway.
1t is stated that the company has made every
reasonable effort to raise money to repair the
canal, without success. The report of the
president and directors of June -. 1885, states
that 1t will require $4,000 to repair the canal
and put it i'll good condition. and that the COM
pany is powerless to raise this amount; that the
bondholders, for whom the complainants are
trustees, have first lien on the tolls and reve-
MUGS of the canal, and unless it is repaired and
operated as a canal, they viii lose their money
and be without remedy; that if a receiver or
receivers be appointed, money can be obtained
to repair the canal, it can be maintained a
waterway, and revenue can be earned 70 pay
the bondholders. Chief Judge Alvey, at Hagers-
town, set the application down for q hearing on
the 3Otn of January. The counsel for the trus-
tees is Gen. Bradley T. johnson, and the bill in
Hagerstown was filed by Johnson & johnson
and II. Ii. keedy and in this city by johnson &
johnson and W. ". Matthew'S
WHAT GEN. JOHNSON SAYS.
The Baltimore San quotes Gen. johnson as
saying 1.-The object of this movement is to
prevent the sale of the canal and to preserve it
as waterway. The bond holders are vitality
interested in having the canal operated as
canal and not as a railroad. 1t is great mis-
take to believe that the days of canals are
numbered. Under proper conditions canals
can transport heavy freight like coal on terms
beyond possible competition by railroads. The
bond holders are not willing to advance the
money to repair and operate the canal as long
as 1t remains under political management. We
are not complaining of the personnel of the
management, but of the system. Politics can't
run hotel, a canal or a railroad. Experience
Is overwhelming on that point but we believe
that the canal may be resuscitated and made a
great benefit to the coal regions, to the state
and to the bond holders. The canals in Bel
GUM regulate the railroad charges. The Erie
canal Is the great regulator OF east and west
transportation, and we believe that the Chesa-
peake and Ohio canal may be made the means
Of cheapening coal i'll Baltimore, OF increasing
power, and OF developing great system OF
manufacture. Ii we can get a receivership, and
thus have an administration purely an indus
trial one, we can get the money necessary in
ten days: If we cannot get the receivership
the canal must remain dry and then be sold.
The question is: TO whom will it be sold and
for what pr'ce? We propose to save the canal
and to make it pay"