Evening star. [volume] (Washington, D.C.) 1854-1972, 1889-06-04
THE WRECKED CANAL.
The President Of the Company Says 1,
Is Gone as a Waterway.

THE WRECKED CANAL.
The President Of the Company Says 1t
Is Gone as a Waterway.
WHAT WAS SAID AT THE MEETING OF STOCK
HOLDERS 1EsrERDAY-THE HOPELESS coNpI-
TON OF THE FINANcEs-A HISTORY OF TIE
NEUTRALITY-SUSPICIOUS. WITH RAILWAYS.
The most important and permanent effect of
the great food in the Potomac ID the damage done
to the Chesapeake and Ohio canal, in which the
commercial interests of Georgetown are deeply
involved. At the annual meeting of the stock
holders Of the canal company held at Annapo-
lis yesterday, President Gambrill, said in his
annual report, after making the usual state
ment Of the business for the year.
I'VE have to report that since the foregoing
was written another disaster has befallen the
canal, greater than any in its history. The
tremendous rain storms Of last week, you are
aware, caused great floods and destruction in
the Virginias, Pennsylvania and Maryland.
We were not exempted, and the Potomac river
was much higher than ever known before, it
being on Saturday and Sunday, June and 2, 6
feet at Cumberland and over feet at George
town more than was the great food of 1877. As our
telephone is destroyed and nearly all telegraph
and rait Dad communication between George
town and Cumberland cut of, we are unable to
get any positive information as to the extent
OF damages to the canal, and will not be able to
DO 50 until the water recedes, which will be sew
eral days. We are satisfied, however, from the
meager information we have received and what
we have been able to see that it will take from
$500 900 to 100000 and many months of
labor to put the canal in navigable condition
we may, therefore, consider the canal virtually
gone as waterway. AS soon as it is possible
we Will make an inspection Of the entire line
and full report of damages sustained"
President Gambrill stated that both the gov
ernor and treasurer considered the canal to be
In hopeless condition, and that il could never
again be used as waterway. This also seems
to be the impression Of all who have been
spoken to on the subject
AN UNLUcKY SEASON.
President Gambrill, in his report Of the
operations Of the canal from January to May
81, 1889, says: The canal was opened in good
condition for transportation on the Goth Of
March, with fair prospect for early trade
owing to local demand but our expectations
were not to be realized, as on the oath Of
March very large break occurred short dis
lance above Shepherdstown, caused by one Of
those treacherous leaks in the crevices of the
limestone rock.
The breach in the towpath side was 10
feet long and 80 feet deep. Superintendent
Biser Immediately put good force of men
n to work o. make and on April we
disaster happened, caused by rock slide
at cut near lower end OF tunnel, by which over
l,2OO cubic yards Of stone was thrown in the
canal, filling 1t several feet above the water
line for distance Of 100 feet, and completely
demolishing the trestie-work or towing way for
the same distance. This rock, which came
down in large blocks, some Of which weighed
Is to 20 tons, had to be blasted and all hauled
away by scows, which made it hard and tedious
work. Superintendent Mulvaney had a we'll
organized force at work immediately after the
accident. and the debris removed BY the 18th
of April, and on that date navigation was re-
sumed
THE FINANCIAL STATEMENT.
The financial statement shows the expenses
for ordinary repairs and maintenance during
the period covered amounted to "a, 266. q, and
an additional extraordinary expense Of S9, 40 1S
was incurred by the break and rock slide in the
Georgetown level The coal tonnage to May
81 was 57,079.08, Q decrease Of S,858Ol below
the tonnage for the same months q year ago.
The revenues amounted to $50, 03l.64. The
excess of expenditures over revenue is ac-
counted for by the fact that the first three
months, viz, January, February and March,
navigation was closed and repairs being made.
January /, 1889, the company was in debt to
the extent Of SS1 81 for labor, material and
rent Of outlet locks. The present current in
de6tedness is stated at sl05, 1885, 90, to which is
added $75, 600 represented by Ave coupons on
repair bonds Of 1873.
THE DANGER OF FORECLOSURE
eve have made every effort possible, Presi-
dent Gambrilrs report says, "to induce ship
ments of coal by canal. but the soft coal trade
is so dull and demoralized that it is i'm
possible 1or us to make any prediction
as to canal trade for this season. We
again call the attention Of the stockholders
to the fact that the receipts Of the canal COM
pany during the past and present year have
not been sufficient to pay its current expenses
and the interest on the repair bonds under act
of 1878. chapter So The amount of interest
due on these bonds on July 1 next will be
$4,000, or coupons. As We stated in our last
report, you are well aware that BY the terms
OF the act authorizing the issuing Of these
bonds the holders Of a majority of them have
the power to foreclose the mortgage when
ever three successive coupons should be
in default. As yet no action has been taken
toward a foreclosure. The Baltimore and Ohio
railroad company has the controlling interest
or $3.50, 900 Of the bonds.
UNABLE TO COMPETE WITH RArLRoAps.
''The inability Of the canal company to sue
cessfully compete with other lines Of trans
portation 30 long as it remains in its present
condition has frequently been brought to the
attention Of the stockholders by our prede-
cessors as well as ourselves.
"As early as 1875 the president and directors
informed the stockholders that unless the
canal was enlarged by doubling the locks or
increasing the depth Of waterway so as to
increase the carrying capacity Of the boats
from liz tons to $50 tons it would be impos-
sible to meet the sharp competition and
lower charges that were being and would be
made by the railroads consequent upon the
great improvements they we're making. which
would eventually enable them to haul coal at
less than one-half Of what it then cost and have