Evening star., 1893-12-12
1t is Frightened by the Prospect Of
the Trolley.
LOCKING FORWARD TO PROSPERITY
Running the Waterway on Purely
Bus ness Basis.
AN ENCOURAGING OUTLOOK


CUMBERLAND, Nd, Dec. 10. 1873.
The Chesapeake and Ohio canal. which
was opened to this city on October 10, 1850,
and which was nearly wrecked by the flood
of June l, 1889, is about to have a new
lease of life, there is no doubt that the
experiment of using electricity as a mode
of propulsion for boats will be tried during
the coming year. The total output from the
mines in the Cumberland coal region for
the eleven months of the year was over
S.5OO.OOO tons. Nearly 100000 tons of this
coal was hauled over the Baltimore and
Ohio railroad 100000 over the Chesapeake
and Ohio canal and 1.30U,OO0 over the Penn
sylvania railroad. A few years ago, before
the Georges Creek and Cumberland rail-
road was built. which is owned by the
American and Maryland Coal companies,
and runs from Cumberland to Lonaconing.
but small proportion of the coal from
this region went over the latter road. but
its trade has grown rapidly, and with its
growth the coal shipments by water from
Philadelphia has also increased. During
the past summer low ocean rates prevailed
in Baltimore being as low as 60 cents to
down eastern ports. This forced vessel
owners to combine and adopt n freight
schedule. The first schedule made its appear
ance about September. This was, 1t is said,
from ~ to 70 cents higher from Baltimore
to the big eastern ports than was charged
from Philadelphia, Norfolk and Newport
News. On November / another schedule
made its appearance, which fixed the rates
for all vessels east of Cape Cod at 81 10 per
ton, and this side of Cape Cod at 81 per
ton. The coal shippers here thought the
rates excessive. and the coal shipments
fell Off still more and went to other ports.
The Baltimore and Ohio Railroad Company.
which had been allowing a tonnage rebate
of cents per ton on lightered vessels,
claimed schedule doing
to the trade here, and on October l discon-
tinued 1t. The actual result of this discon-
tinuance was to give the cents per ton to
the purchaser instead of to the vessel
owner, for the price of coal was at once cut
cents per ton.
Increased Shipments by the Canal.
The outcome Of the matter is that coal
shipments on the Chesapeake and Ohio
canal and the Pennsylvania railroad have
increased about 25O0OO tons. while the Bal
timore and Ohio railroad has hauled about
7OO,0OO tons less than during the same period
of last year.
The companies doing business i'm the Cum
berland coal region are as follows: Consoli-
dation, American, Maryland, Georges Creek
Coal and Iron Company, Borden Mining
Company Potomac Coal Company. Atlantic
and Georges Creek Coal Company, Swan
ton Mining Company, Franklin Consolda ted
Coal Company. Piedmont Cumberland Coal
Company, Barton and Georges Creek Val
ley Coal Company, Big Vein Coal Company,
Anthony Mining Company Davis Coal and
Coke Company, West Virginia Central and
Pittsburg (Elk Garden mines), Thomas
mine Davis Elkns mine, Cumberland
Coal Company douglas mine), Elk Garden
Big Vein Mining Company. Hampshire mine
and New Central Coal Company, in all
twenty-three companies.
During the year up to December H. 1872,
these companies shipped 2lS2,315.0S tons of
coal. The Baltimore and Ohio railroad ship
I nd
canal, 263, TONS and the Pennsylvania
railroad, 2ll,O6i.10 tons The increase of
shipments this year will amount to about
350,OOo tons. Had electricity been used on
the canal the shipments would have been
larger.
The History of the Canal.
The past history of the Chesapeake and
Ohio canal is Interesting, especially at this
time, when its future seems filled with
bright prospects. 1t was the first great
work Of its kind in this country. Washing
ton had spent several months in Cumber-
land. where he first learned the art of war
young colonial colonel. He knew that
there were immense coal fields IN Allegany
county which needed development. He pro-
jected the canal. which was to unite the
waters of the Potomac with the Ohio river
but he did rot live long enough to see its
corner stone laid even, although he was
president of a company which was formed
in lii4 for the opening of the Potomac
river to navigation. The enterprise, how
ever. Jagged, and distractions of war and
poverty postponed ii. 1t was not until $50
that the work was pushed with vigor. By
lS26 board of engineers examined it and
computed the cost at So2,0OO.OOO. About this
time Maryland was much interested in
building railroads, and was very liberal in
her endowments. The old Frenchtown and
New Castle railroad was completed in 1881,
and was the oldest railroad in the state
The present Philadelphia, Wilmington and
Baltimore railroad was built in sections,
and were consolidated in 1S;,S. four years
before the Baltimore and Ohio railroad was
completed to Cumberland. The railroad and
canal ran race for about fifteen years. the
former arriving in Cumberland eight years
ahead of the latter. although the latter was
commenced first. the corner stone of the
canal was laid in 1876 and that of the Bal
timore and Ohio railro2d in 1S2S. The two
great works were intended as allies in help
ing to develop: the great mineral wealth of
Allegany county, to last forever.
The First Bond Issue. !
In 1874. two years after the Baltimore
and Ohio railrCad had been shipping coal
from Cumberland to Washington, the Ches- !
apeake and Ohio Canal Company. being
una BILE to complete its work to the Cumber- |
land coal fields, by consent of the state of |
Maryland. issued preferred bonds bearing |
d per cent interest until paid. The amount !
issued was l,I0000D. most of which was |
taken by those interested in our coal pro- |
duct. The CARROTS of Baltimore were large |
buyers OF these bonds, and they We're also /
owners of the bonds OF 1Sii AS bond !
holders of 1914 they are now controlling the |
management of the canal The interest on !
these bonds was to be paid before any reve- |
nue. or interest should come into the state |
treasury. AS no one questioned the ability |
of the canal company to pay this I'm terest |
when the canal was put into operation, |
there was no difficulty in securing funds |
to complete the work. Payments on these |
bonds were made up to 1874. Almost from !
the date of their issue these bonds began |
to decline on the market, until only 81 cents |
on the dollar was offered, which included |
twenty years interest, alone amounting to |
s., ,OOoU0 Adding the principal and inter- |
est together the Indebtedness to the pre-
ferred bondholderS was about So, IW,O0 /
The whole thing in a nutshell is as follows: |
The canal was nearly completed in 1874 (
and certain interested parties Raised money !
to finish IL. by getting the state to sur |
render it's claim to the revenue from the !
traffic until these preferred claimants were !
satisfied. 1t was an investment of capital |
lists on what seemed solid basis with big |
interest; because their investment took |
precedence Of another of $S,WO.009 and at |