Evening star. [volume] (Washington, D.C.) 1854-1972, 1890-02-07
THE CANAL COMPANY's ANSWER.
II Is Contended That the Bondholders
Are Not Entitled to Possession.

In the case Of George 8 Brown against the
Chesapeake and Ohio canal company the latter
yesterday afternoon 6led an answer. The
answer admits most of the averments a. 10 the
mortgages and raises no technical objection
that all tae facts may be fully known. 1t ayers
that the failure 10 pay principal and interest
under the mortgage of lS4A was due 10 want Of
business and not to any fault on the part Of the
company. II admits insolvency, and says that
iss unfortunate condition 10 wholly due TO . de-
nciency OF revenue, and to NO fault Of the
company. 1t submits that the security accepted
by the bondholders has deprecated in value
and that, under the terms OF the mortgage, il
the failure was not chargeable to the company
| sion.
They say further that the bondhoiders have
sner remedy at Law by Judgment or execution
upon the canal, subject to prior liens. They
are not entitled 70 the appointment of a re-
eeiver Tor the reasons stated above. A re-
ceiver u not necessary TO protect the canal from
damage and could do nothing with its wreck.
Even II a receiver could put the canal in order
its history for the last twelve years shows that
the expenses of carrying on. the canal exceed
its revenues.
The canal company is forced to admit that
under no circumstances likely to arise can il
obtain tonnage enough to compete with the
baltimore and Ohio railroad company in such
way as TO pay its running expenses. They
further allege that the state Of Maryland is a
necessary party 10 the suit and ask to be dis
missed
ABIGAIL QUESTION.
1t is stated by some who have considered the
situation that the constitution Of the state Of
Maryland forbids any legislation affecting the
lowing the one that passed the Law. Even if
the Maryland legislature should accept the
proposition made by the Washington and Cum
berland railroad company it is said that such
action must be ratified by the next legislature
before It would become operative.
1t is expected that the decision OF Judge
Alvey on the application to appoint a receiver
for the Maryland portion OF the road will be rem
dered tomorrow. In case the application is
granted the receivers will be appointed at once.
will begin active work IN preparing the canal
Tor use as water way. although IL is claimed
by others that the canal will never be used
again az q water way.
Mr.. Henry c. Winship, one OF the receivers
for the portion Of the canal within the District
was seen today by STAR man. Mr.. Winship
saId that he had nothing to say in regard to
canal matters. He added that as soon as there
was anything to be said he would be glad to
give it to the public.
bill to provide for leasing the canal under
the terms of the bid received from the Wash
ington and Cumberland railroad company will
be introduced in the Maryland legislature. II
is said also that bill will come in providing
Tor sale OF the canal to the highest bidder.
THEY WANT THE CANAL RIsroEp.
The Annapolis correspondent OF TIE STAR
writes:
1T has been manifest through the whole ses-
sion thus far that the people of the counties
through which the canal runs are desperately
DESTROYS to have the canal restored as a water
way. They will not be convinced that, apart
from the devastations of nature, its evil for
tunes have been due to the fact that the opera
ton of the canal has been under the malign
influence OF party and political manage
ment. In their strait they have been
ready to welcome a receivership as a
means of giving the great water way,
under the supervision of wise, experienced,
capable, non-partizan men, guided and con-
trolied by an impartial court. one chance at
least for a fair test Of its worth. But il has
been equally clear all along that the political
majority ascendant in the legislature had
formulated its decree for final passage that the
canal should be sold. The only question re-
naming for determination is TO whom and how
shall the sale be made and the interests OF
Maryland and Of the District Of Columbia
closed out"