Evening star. [volume] (Washington, D.C.) 1854-1972, 1890-02-06
THE FUTURE OF THE CANAL.
Gov. jackson Recommends That It BE
Leased to a Railroad.

Leased to a Railroad.
ONLY ONE BID REcEIvED-THE NEWLY MOOR
PoRATED COMPANY THAT PROPOSES TO con-
STRICT A RAILROAD FROM THE COAL YIELDS
TO THIS CITY-TERMs OF THE PROPOSAL
The only bid received by the board Of public
works Of Maryland for the lease Of the Chesa.
peake and Ohio canal was that Of the newly
incorporated Washington and Cumberland rail-
road The total price to be paid under this
proposal is about . l. 400 900. and the purpose is
to construct a railroad on the bed of the canal
from the Cumberland coal fields to Washington.
Many of those interested in the new corporation
are interested likewise in the West Virginia
Central road, which would, it is stated, connect
with the new road The proposal was made
public yesterday through a message sent by
Gov. Jackson to the Maryland legislature, in
which the governor earnestly recommended
the acceptance Of the proposal
THE MESSAGE.
The message, after recounting the history of
the canal and giving a view Of its present
condition and the state of the litigation over
II, says: 1.-The question now is what shall be
done? Shall the canal be abandoned as a wa
terway and replaced a railway from Cum
bertrand to Washington under suitable and ade-
quate legislation, or shall it be sold under the
mortgage to secure the bonds issued under the
act OF 1873, chapter IS, or under the mort
cages held by this state for what it will
bring at public auction, or shall further at
tempt to operate 1t by receivers appointed by
the courts be acquiesced in, ivolving, as such
attempts necessarily will. the creation of a
large additional indebtedness to take priority
over the heavy existing claims of the state
without any prospect whatever of any better
results than those already accomplished? These
are the questions that the general assembly at
this session must meet and decide With a
view, no doubt, to guide you in your settle
ment OF this important matter Joint resolutions
were passed by your honorable bodies on the
- day of January. directing the board of
public works to advertise to lease the canal
Public advertisement was duly made and one
bid has been received, which have the honor
TO lay before the general assembly. This pro-
posal Is, IN brief, that the charter of the canal
company shall be so amended as to authorize it
to lease its canal and all its works. property and
water rights Of every description to a railroad
company, which is to build a railroad from
Cumberland 10 Washington within a definite
period named in the bid.
THE CONSIDERATION.
I'm consideration of the lease the railroad
company proposes to pay off in full the bonds
OF 1878, amounting, principal and interest, to
S6OO.OO0; also labor claims against the canal
to repair and restore it, claims of the most
merltOriOus character. amounting to about
STOOcO; also judgment for S30. 900. constitut-
ing a first lien on the wharf property in Cum
berland; also % per cent of the principal of the
preferred construction bonds of 1874, which
percentage will amount to about 1926, 900. and
also an annuity of $500 to the state. redeem
able upon the payment in cash of the sum of
S3OO,OOO. The total price proposed to be thus
PAID for the lease amounts to more than
Sl.4OO.OOO. Looking to the history, present
condition and future prospects of the COM
pany i do not hesitate to advise the accept
ance of this proposition. and consider the
subject OF such Importance to call for a
special message from me to your honorable
bodies All reasonable men must admit that,
In face OF the sharp competition of the Balti-
more and Ohio railroad and the Pennsylvania
system for the coal trade, the proportion of this
trade that will probably be received by the
canal company, should il be restored and again
opened Tor business, will be too small to per-
NIT the hope of profitable business The tolls
must be reduced to point low enough to secure
tonnage. The railroad charges have been cut
down to such low point that in the contest
the canal company cannot possibly earn
enough to pay Its expenses under existing
circumstances; but few of the coal COM
panies ship by it at all, and the tonnage from
these companies is not likely to be kept up
should the canal company be restored. much
less increased trade of 100000 tons per
annum with tolls at 80 cents you'd yield only
$4,000. If 1t were possible to suppose that
ordinary operating expenses would not ex-
coed TINS sum- without taking into account
serious damage from floods and freshets,
there would be no inducements for continu-
ing any longer the experiment, which
has proved so unfortunate to the COM
pany, Its bondholders and the state.
ADVANTAGES OF THE LEASE
1.-THE advantages of the proposed lease are:
he of he
will be paid in full, the bond holders of 1874
will receive for their bon1s a sum far beyond
what any management can realize for them
while the state will receive an annuity of
Sl5,OOO. To the people of the counties of Al
legany, Washington, Frederick and Montgom-
cry railroad will prove far more beneficial
than the canal. The facilities for transporta-
tion will be manifestiy superior, while the de-
lays and uncertainties incidental to canal trans
portatlol will be greatly lessened. At Williams
port easy connections can be made with the
western Maryland railroad company to the
great benetit OF the city of Baltimore. Further
down the line connections can be made with
Frederick and points beyond and the people of
Montgomery will be enabled to reach Washing
ton with their produce BY much greater adyan-
tages than they have ever been able to do
By means of the canal Ii will be observed
also that costly road from Cumberland to
Washington will bring. subject to the state and
county taxation, large source of additional
revenue In place of a work which is EXEMPT
from both state and county taxation. Indeed.
from every aspect IN which / am able to view
the subject, the proposed lease meets nv ap-
Proya, and 1 cordially recommend it to your
honorable bodies. The legislation necessary
10 enable II TO be carried into effect should be
carefully drawn so as to secure the due per-
formance lessee Of all the proposed s.ipua-
mons, and to require such facilities to be given
10 connecting railroads as may enable them to
OBTAIN fair share of the coal traffic which the
contemplated railroad will bring to the state
The construction and charter of the canal
from Cumberland to Georgetown has here
tofore been Of no benefit to the city
OF Baltimore, but as the Western Mary
land railroad runs to Williamsport and there
can connect with
THE PROPOSED RAILROAD
to be built on the line of the canal, and as
ample provision can be made in the legislature
to be adopted by you requiring the proposed
railroad 10 pro rate on fair terms with the
Western Maryland railroad, every guarantee
WILL be offered that the city of Baltimore will
have a new line to the coal fields of Western
Maryland and Western Virginia, and the i'm
mense addition of such a line to the interest OF
Baltimore city was shown in communication
made to the last general assembly by the presi-
dent OF the Western Maryland railroad COM
pany. have good reasons to believe that I'M
less advantage Is taken at this session of the
legislature OF the opportunity to utilize the
Canal as railroad, the lines of rail-
roads other than the Baltimore aud Ohio
system now connecting the coal fields with
Camoerland Will seek other outlets for their
traihc, the location of which has already been
made. and which, If constructed, will divert
the trade to points north OF baltimore beg
leave again To bring to your attention the fol