Evening star. [volume] (Washington, D.C.) 1854-1972, 1889-07-22
SITUATION GETTING SERIOUS.
President GambrilI to Tell the C. and O.
Canal Directors Its True Condition.

Canal Directors Its True Condition.
from the Baltimore Sun
President Stephen Gambrill. of the Chesa,
Peake and Ohio canal, has announced his in
tention Of calling the directors together and
laying the true situation of the canals affairs
before them officially. If they can suggest nc
remedy, as seems probable, they will report
their helpless condition to general meeting OF
the stockholders. The next step, unless meas
ures for relief can be found, will be the ap-
pointment of a receiver.
President Gambrill said yesterday in refer
ence to the crisis in the affairs of the canal
"The waterway is practically useless to us now,
owing to the heavy damage from the recent
food We have done all we could to put il
once more in working order, but our efforts
have been futile. The $500, 900 repair bonds
which were issued find no takers, owing to a
general feeling that they will prove an unsafe
investment We have advertised for proposals
TO make the repairs, offering to pay for them in
toll certificates of 20 per cent, but have not had
a single bid. Five coupons of the bonds have
matured without takers coming forward, and
under the stipulations a receiver can be asked
Tor when only three have been passed There
seems to be no prospect that either the bonds
will be taken or any bidders for the repairs
will come forward. IL we cannot settle our
troubles BY August / / shall report to the
directors and they in turn Will state the facts
to the stockholders. II we can do nothing then
the management of tie canal VIII pass into the
hands Of the courts
REPAIRS have been made to only two sections
of the canal The Georgetown level, which ex-
tends from the mills in Georgetown, ID. c., to
the dam between four and five miles up the
bed will soon be in condition. A number OF
millers derive their water power from the canal
between those points, and they have taken the
question of repairs into their own hands.
Becker 1. Blundon, Washington firm, have
been awarded the contract at S13,750, together
with S2.250 for repair to the feeder and feeder
gates. The entire work will be finished in about
two weeks. 1t is going on under the super
vision of myself and Division Superintendent
]. b. Biser of the canal. The amount has been
raised by the millers and deposited in bank by
Mr.. George W. Cissel, representing their in
terests, and myself. The total OF $4,000 is
accepted by the canal management as an ad-
vance of the rent the millers have to pay II
viii amount to that snm in two years.
The other portion of the canal repaired is
the stretch of % miles between Cumberland
and the lumber mills of Francis Mertens Il
Sons. The firm is now running boats upon it.
The section repaired by the Messrs. Mer-
tens at a cost of $4,000, for which they will be
reimbursed in the event the repair bonds are
sold No other repairs have been made beyond
patching up a few holes for letting the canal
water from dam No. into Hancock, Nd, and
from dam No. into Williamsport.
with regard to the conference between my
self, Directors Berrett, Mcclure and Dobbin,
representing the canal, and Messrs. Victor
Cushwa, James Findlay and f. II. Darby, repre-
senting interests in Williamsport, which con-
ference was held at the Carrollton hotel on July
9, must say that the delegation made US no
stated proposition. They simply asked how we
would consider their plan. Their idea was to
go to work and repair the canal between Mer-
tens Mills and Williamsport, and run it between
those points themselves until they could be re-
imbursed by the receipts from the tolls. We
informed them that, managers for the stock
holders, we could not accept such proposition,
which would be nothing more than surrender
ing the canal temporarily to outside parties.
The claim of the three Williamsport gentle
men that they could do the work for one-half
the cost estimated by US cannot be accepted as
Just one. Our estimate was $4,000 for the
entire Cumberland division, which is 100
miles long. 1t extends from Cumberland
to dam No. 4, II miles south of Williamsport.
Their estimate did not include the % miles put
in order by Mr.. Mertens and the IL miles be-
tween Williamsport and dam No, 4, or 80 out
OF the 100 miles. Then, again, our estimate
was for permanent repairs. while their scheme
was only to restore navigation temporarily.
The directors placed the cost of running the
entire Cumberland division, including the
wharf at the northern terminus, at q, 500 a
month, while the Williamsport conferees
stated their belief that $500 would be
sufficient for the same period They formed
their opinions upon the supposition that they
would not have to pay lock tenders and other
employees during the duh season, which is not
correct
The best way see just now of settling the
troubles with which the canal management is
confronted is to prosecute the repairs on re-
ceVers certificates, which would come in before
all other claims for payment in the event of a
foreclosure Of the mortgages held by the state
and other parties. II the people doing bust
ness along the route choose they can pay the
expenses themselves and put in a new manage
ment The situation is a critical one for the
canal, and see but little chance to avoid what
fear must come-the appointment of a re-
ceiyer."