The Washington critic. [volume] (Washington, D.C.) 1889-1889, 1889-06-15
THE OLD HOLLAND LOAN.

the Dutch is an expression longtime
residents Of Washington sometimes use
and which often excites an inquiry as
10 the aptness of the phrase.
Now that II is destroyed and not un
likely to remain so, things relating to
the Chesapeake and Ohio Canal have an
especial interest This phrase Is often |
used in speaking of the early history of
the canal and owes It's origin to 1t. The
District Of Columbia was at one time
about the largest individual holder of
canal securities and the canals history
is closely interviewer with that Of this
city
From the memorable Fourth Of July
1S2S-and as that day, was Friday, peo-
pie Of certain tendencies may find con
firmation of their belief in Fridays
reputation as Jonah In this fact 1.-THE
canals history has been one of disaster.
II was great day, this Friday was.
Georgetown then was the city of the
District, after Alexandria, perhaps, and
ii was virtually the making OF George
town when the canal project was car.
ried out On this day of days for
Georgetown President Adams and his
Cabinet, Washingtons city fathers and
about all the dignitarics OF the National
Government went together over to
Georgetown and were received by
Georgetown & authorities and the canal
officers and board Of directors. A pro-
cession was formed and after parade
that ended at the dock they all boarded
boat called the Sunrise" and steamed
up the river to place four or five miles
above where the .Aqueduct bridge used
to be.
Here the party landed, and going to
n place on the shore where q mahogany.
stake had been driven into the ground
they marked the place where work on
the canal would begin. The president
of the canal company made an address
TO the President of the United States,
and the President of the United States
made a speech TO the president of the
canal company. When the canal
president finished his speech he handed
President Adams bran-n spade to
be used in lifting the first spadcful OF
earth in the great work. AS he talked,
SO the fathers of old residents used to
tell them, President Adams leaned as
gracefully on the spade as does q la
borer working for 81. so a day.
After the President of the United
States finished his speech he plantedthe
spade on the ground beside the Mahog.
any stake and put his foot on II 10 push
II into the earth. II struck the root of
a nearby tree and stopped. The Presi-
dent of the United States again tried to
dig up a spadeful Of earth and failed
again. Then President John Quincy
Adams threw down the spade onto the
ground, squared his broad shoulders
and took of his handsome coat and
threw II on the ground with an air of
determination that elected salvo after
salvo of cheers from the thousands of
people who were about on the hills to
witness the great event. Then to a
chorus of the laundering plaudits of
enthusiastic thousands President Adams
dug up not one but dozen spadefuls
of earth with an energy and celerity
that spoke as much for his physique as
for his interest in seeing the canal
project well started.
An interesting thing about the Chesa-
peake and Ohio Canal is that part of
1t, near Great Falls, is the old Potomac
Canal that was begun in 1884 and lin,
ished few years later, and the ma.
sonry Of this old canal, the locks, ETC.,
are as soiidly firm to-day, despite the
flood, as the day they were built. over a
| century ago,
But the great work that the President
| OF the United States began on Friday
morning never got on well and the canal
projectors were always pushed for
money. Washington people were in
terestcd In the proposed canal particu-
larly because II crossed the centre of this
| city, intersecting the James Creek
Canal that flowed past the foot Of the
Capitol in South Washington. This
made an island of southwest Washing
ton and even now 1t maintains that
name in local nomenclature. So it was
that on May "a, 1928 Congress passed
an act empowering the cities of Alex
andria, Georgetown and Washington,
which were then all in the District of
Columbia. to subscribe for 81 100000
| worth of canal stock between them.
| Alexandria and Georgetown were to
each subscribe for $500 and Washing.
ton 10000 shares at 300 per share.
The act authorized the three cities to
borrow the money and issue bonds for
| the security of the debt, everybody
seeming to think that the canal would
| prove so ell-paying an investment that
| the debt would be quickly met after the
| canal was completed and began to pay
| dividends to stockholders.
Richard Rush, ex.Secretary of the
Treasury was selected TO float the loan.
| In those days Holland was noted for It's
big capitalists and these capitalists for
| their readiness to invest in American
securities, so to Holland Mr.. Rush
looked as the place to float the loan.
Real estate spectators had before this
time borrowed lots of money in Holland,
| giving as security city lots here in
Washington, so that Holland -financiers'
interests in Washington were then
quite extensive. Mr.. Rush made a trip
to Holland and succeeded in placing the
| entire e-million,dollar loan with the
| Messrs. Crommelius of Amsterdam, one
of the grand old-time banking.houses of
those days.
The million was all dumped into the
ditch, and for years people used to say;
Washington Is owned by the Dutch"
In 1886 Congress passed an act re-
lieving the District of this Indebtedness.
The general Government took the stock
and paid the debt to the Hollanders,
and thus Washington ceased to be
owned by the Dutch. This stock Is
still in the hands of the Solicitor of the
Treasury, The old law, passed in 1928,
under which the stock was bought,
provided that the Government should
have equal voice and representation in
the affairs of the canal with other
shareholders.
But at the meeting of canal stock,
holders in Annapolis this week the
United States was entirely unrcpIe.
sented. The United States holding of
| stock is lnrpnr thnn nnv nihnr indi vidunl