Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1890-06-13
THE THREE WISE MEN,

411G L 1Ic6 w 4OG m6N,
As Receivers. find the G. q, o. Canal q
Hopeless Concern and Reluctantly
refuse to Recommend the Res
toration Of 1t.
The Following Report they haze Fiiec
at Hagerstown
"The second report of Robert Bridges,
Richard ID. johnson and Joseph d. Baker,
receivers, respectfully shows that by the
terms of the order passed in this cause,
March 3, 1890, it is made their duty to col
lect the books, papers, maps, belonging to
the canal company; to collect its persona.
property and assets to make schedules of
its real and personal property, and to make
Pull and thorough examination, and collect
all such information as they may be able as
to the condition of the canal, the needtul
repairs thereof and the probable cost of re.
pairing it, and the feasibility OF operating it
when repaired, and report the same with
the results of their judgment and opinion in
the premises, and the reasons therefor, to the
court for its information, and such further
action as it may deem necessary. g
I'VE have in our first report filed sched-
ules of the personal property OF the canal
| anu vi Tile real eSldte us ldT us we WERE dDlc
| to specify and describe the same, and have
brought to our office in Hagerstown all the
books, papers and maps which were found
in the offices of the company at Annapolis
| and elsewhere We have made a full and
thorough examination of the canal and its
| property, by personal inspection, from Cum
berland to Georgetown, and have collected
all Information possible of the condition of
the canal, the cost of its repairs, and the
prospects of business and revenue, and the
cost of operating it. if it is repaired, before
submitting to the court the result of our in
vestigations and the conclusions we have
reached theretrom.
THE CANALS PROPERTY
ave having examined the entire line of
the canal have iouRd that there is Il great
deal of very valuable property belonging to
the canal company and not absolutely cs-
sential for the use of the canal as a trans
portation line Much of this property is
leased at Il nominal rent, at rent far below
the true value of the property. From the
books and maps which have been turned
over 10 the receivers by the officers OF the
canal company it has been impossible to as
certain exactly what property the canal
owns, what leases it has made, and what
rent il is entitled to receive.
ain case there should be u sale of the canal
the receivers deem it absolutely essential
that before such sale should be made they
be empowered to ascertain and report TO the
court exactly the property which the com
pany owns both in Maryland and the Dis
trict of Columbia, and also to ascertain and
report what leases have been made aud on
what terms, and whether any leases have
been made since the issue OF bonds secured
by the several mortgages, and il the same
are valid.
al intending purchaser of the canal can
not make an intelligent bid for it until he
knows exactly what this valuable property
is which the company owns both in Mary
land and the District of the Columbia, and
what, if any, burdens are imposed upon it
by way Of leases which may or may not be
cut off by "A decree of foreclosure and sale.
To this end we respectfully ask the court To
give the necessary authority to employ com
petent surveyors To make the requisite plats
of the property both in Maryland and the
District OF Columbia, and u make exami
nation of the company's title to said prop
erty. Upon such u report made to the court
there will be proper basis for any parties
who may desire to buy the canal and its
valuable property to estimate its value. We
file herewith the report of the receivers APP
pointed by the Supreme Court of the Dis
trict of Columbia and order OF said court in
reference to said property. marked exhibits,
report ami decree.
at turns out that the company owns real
estate in the District OF Columbia and else
where not necessary to its operation as Il
canal. and that it could be sold Tor an
amount sufficient to pay in full the bonds OF
the canal company issued under the act oil
1878, wages now due laborers, the cost of
repairs now necessary, and wharf debt, then
the net revenues OF the canal would be solely
applicable to the payment OF interest on the
dc, II and, a xU.,ll OF ~ un
at "A different conclusion from that we have
reached, based upon conditions as they now
exist
WAY.
ain considering the question of the FEAST
bility Of operating the canal, we have not
failed to remember that the State OF Mary
land owns majority of the $3,85l 593.67
capital stock Of the company; that 1t was
the holder OF two mortgages Tor "a ,3I5,OOO
and $2,000,000 respectively, with accrued
interest; that the State was thus substan-
TALLY the owner OF the canal and that by
AN act of the General Assembly Of the State,
passed in 1874, all the liens of the State were
waived in favor Of 81 100000 of bonds to be
secured by the pledge OF the net tolls and
revenues ol the canal company that it was
essential to raise that sum of money in order
To complete the canal to Cumberland, and
that s. 800 was borrowed by the canal
for that purpose, under and by virtue OF
said net OF 1874, and the mortgage and
pledge oi tolls and revenues thereby author
Izei. We consi Ter that the iatn OF the
State was pledged to the holders OF the so
called bonds Of 1874 that the canal should
continue to he operated AZ IL waterway, and
revenue earned so long as the same could
successfully be done. We have also borne
in mind that there are in the canal about
100 canal boats, the value Of which will be
entirely destroyed II the canal is not re-
stored, and that large sums OF money have
been expended in building them upon an
implied obligation that the canal would be
maintained rs II waterway.
"The design Of the State in fostering this
work Was not, we apprelend, 50 much for
the purpose OF earning interest or dividends
upon the great sums oil money embarked IN
il, as to develop the resources Of the State,
To promote the prosperity and well being oi
the people, and 10 furnish transportation to
market from the coal mines o Allegany
county and to regulate the price Tor trans
portatlon by competition with the railroad
lines. rhe canal in the past has not only
doue this and so added greatly to the wealth
of the State an | its taxable property, but IT
has been II pubic highway open To ali. 1t
has given occupation To great numbers OF
people, and has itself been an excellent
market for :he products of the farming
country through which it passes, most OF
| which Is remote from any other market.
"The objection which has been made to
| the restoration OF the work upon the alb
sence of any adequate number of boats to
coniuct the traffic, we have not considered.
/ There are already 100 boats which could be
| put in repair in IL short time, and we have
i ASSURANCES that as many more as would be
! necessary to transport as much as 6OO,OOO
/ tons Of coal from Cumberland to Georgetown
would be built within short time.
/ The consideration OF all these facts has
operated powerfully with US in desiring the
! restoration of the canal and in inducing us
| dnf 10 tL1, in,