The aegis & intelligencer. [volume] (Bel Air, Md.) 1864-1923, 1894-12-28

matured on January
!, 1894.
THE OBJECT of the bill in this case is to pro
l. cure decree for a sale of the Susquehan
ma and Tide Water Canal, its property ano
franchises and for distribution OF the pro-
ceeds of such sale amongst its creditors, accord.
ing to their several rights and priorities; and
also for the appointment in the meantime of q
Receiver to take charge of the affairs OF the
said Susquehanna Canal Company and the said
Tide Water Canal Company, respectively, of
and all their property of every description and
to hold, preserve, manage and operate tne
same, if the operation of said Canal shall be
deemed desirable under the order of this Court
The bill states that the Defendant Corpora,
tions, chartered respectively by the States OF
Pennsylvania and Maryland are the owners OF
u continuous canal extending from Havre dc
Grace, Maryland, to Wrightsville, Pennsylva-
mia that under the Maryland Act OF 1883
chapter 416, entitled AN Act to ensure the
completion of the Susquehanna Canal and OF
the Tide Water Canal, the Susquehanna Canal
Company and the Tide Water Canal Company
mortgaged their Canal and property to the
State of Maryland to secure the sum OF one
million dollars and interest, ms in said Act pro-
vided. and that under the Actor 1S43, Chapter
1888, they executed further mortgage to Den:
mis- Claude, Treasurer of the Western Shore OF
Maryland, to secure the Indebtedness therein
mentioned that under the provisions of said
Act of 1s43, Chapter 363 the Tide water s Canal ANA;
Priority Bonds for the purposes specified in
said Act, the amount issued being believed to
be about S97, 10000 ; and that the Susquehan-
ma Canal Company also issued similar Prefer
red Bonds amounting to 5000, 100000 or there
abouts; that saiG Preferred and Priority Bonds
respectively, matured on the lst of January,
and unpaid as prior lien upon the property
of said Canal Companies respectively that said
Preferred and Priority Bonds are believed to
be owned or controlled by the Philadelphia
and Reading Railroad Company, Pennsylva-
mia Corporation, and if not so owned and con-
trolled are claimed by parties unknown to the
The said Canal Companies on the second day
of January, 1872, made lease of their Canal
and all their works and property to the said
Philadelphia and Reading Railroad Company
for nine-hundred and ninety-nine years for the
rent and upon the terms set out and charged in
the lease and that said lease was surrendered
by the receivers of said Railroad Company on
the 9th of April. 1894. That for many years
said Canal Companies made default upon their
mortgages to the State OF Maryland, and that
on the 31st of January, 1889, under authority
conferred by the Maryland Act of 1888, Chap
ter 154, q settlement and compromise was eff
fected by L. Victor Baughman, Comptroller of
the Treasury, with the approval OF Elihu e.
Jackson, Governor, and Stevenson Archer,
Treasurer of Maryland, whereby in cOnsidera-
ton of the payment of 27,5OO.OO, being
twenty-five per cent. of the over due and I'M
paid interest upon said mortgages to the State
of Maryland, a release was executed to said
Canal Companies of the balance of said unpaid
interest the time for the payment of the prin-
ciple of one million dollars was extended for
fifty years maturing in 1888, and the rate of
interest on said mortgage debt was reduced
from SIX per cent W TWO per CeHl. per duhuiH
that said Canal Com panies paid said interest up
to and including the first day of January, 1898,
but have paid no interest since that time
That the Canal was operated by said Phlladel-
phia and Reading Railroad Company under the
lease of January 2, 1872, until the 9th of
April, 1894, when it was abandoned, and that the
Canal is now lying idle and daily deteriorating
in value. and that it has no business or reve-
nues sufficient to pay the operating expenses
and interest on the debts of said Canal Com
panies that said companies owe mortgage
due in 1918, bearing six per cent interest
amounting to 81, 336 600; also mortgage due
In 1902, bearing interest at the rate of seven
per cent amounting to S257 900 also unfund-
ed debt for equipment, etc., amounting to
S21 ,2S2 80; also untunded debt being unpaid
interest on their bonded debt, amounting to
S53S, 235. Is, in addition to the unpaid interest
due to the State of Maryland, and that said
companies are hopelessly insolvent
1t is thereupon, this 18th day of December,
1894, by the Circuit Court for Hartford county.
causing copy of this order to be inserted in
two newspapers, once u week, for four con-
secutive weeks before the 10Th day of January,
1895, give notice to the Philadelphia and Read
ing Railroad Company, nonresident corpora
ton, and to the unknown holders of the Susque-
hanna Canal Preferred Bonds which matured
on January l, 1894, and the unknown holders
matured on January !, 1894, non-residents as
well residents of this State, of the object and
substance of the said bill, and warning them to
be and appear in this court. in person or by So
licitor, on or before the 3Oth day of January,
1895, to answer said bill, and to show cause if
any they have, why decree should not pass as
WIN. S. FoRwoOD, JR.. Clerk
i4de e ''ps' WI WI, S. FoRwooD, JR., Clerk.