Evening star. [volume] (Washington, D.C.) 1854-1972, 1890-01-17
THE CANAL RECEIVERSHIP.
A Triumvirate of Receivers Desired BY
the Old Bondholders.

The application Of the Baltimore and Ohio
railroad company in the court at Hagerstown
for the appointment Of a receiver of the Chesa-
peake and Ohio canal did not occasion mitch
comment in the State house at Annapolis yes
terday, says the Baltimore Sun 1t was an
nounced in advance that such was the purpose
of the railroad company, who hold majority
OF the half million OF repair bonds OF 1878,
which are mortgage on the canal corpus.
But this action is bringing to light some of the
inside of the case. The railroad people, 80 the
story goes, do not want the canal put up for
sale or lease, because they are not in financial
condition to bid against competition to secure
the property in that way. They persist in say
ing that the West Virginia Central railway COM
pany wants the bed Of the canal and that the
proposals which are to be made to the legisla-
ture, as indicated in the governors message,
are in that interest. no matter what language
or shape they may assume. or course the
Pennsylvania railroad is alleged to be some-
where behind the West Virginia Central
schemes. For months, as stated, the Balti-
Of Maryland to join in a receiver
ship application, with President Gambrill to
be the receiver on the part of the state and
the railroad to name co-receiver. The rail-
road party proposed, as they do now, to expend
a considerable sum Of money to repair the
canal, and then for the receivers to operate it
as waterway. With the large traffic of the
railroad there would be coal transportation
enough for the canal to employ its full capac-
ity, and it would earn money sufficient to pay
expenses and have a surplus to be applied to
betterments and to meet some old debts. The
state people have not conceded with the rail-
road company, and the governors message
uses plain talk about the objections to having
the canal absorbed by the railroad, which it
parallels. Now that the 1874 canal bondholders
have applied for a receiver they also want to
go into the co-receivership business. The
latest story is that the 1874 people are anxious
for receivership trio, the state to name one
receiver. the railroad another and the 1874
bondholders o third receiver. These PROPOSE
tions do not meet with favor from the state. The
resolution now going through the legislature
for the board OF public works to Immediately
advertise for proposals to lease the canal
has not met with an objection thus
far, and it has passed the senate and
reached second reading in the house. The
application to the courts by the bondholders at
a time when the general assembly, the law
making body OF the state, is in session, indi-
Gates at least q purpose to be in advance OF any
action at Annapolis, and that the railroad COM
pany does not expect the legislature to comply
with its wishes. 1t looks as if there is a spirit
OF decided antagonism in this matter between
the railroad company and the state authorities.
Another resolution will be introduced asking
the attorney general to look after the welfare
OF the state in cases where its interests are in
volved but it is not proposed for the state to
become party to the suits. One of the state
party says their side could secure overtures
from the other side that would save them a
deal OF political strife IN the future. but that
the present state administration and its leaders
are not in the hnmor for placating the great
Maryland corporation at the expense of allie
glance to their duty and at the sacrifice of
promises made to the people. The members
OF the legislature hope that this session will
reach a settlement Of the vexed canal question
that will be to the best interests of the state
and of the important section which it traverses.