Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-08-05
years Senator A. P. German was its presi-

years senator A. r. German was Its preSt-
dent.
About 1890 the canal was in dire f,nan.
cial straits, and there was some talk OF ite
sale. One of the propositions for its pur-
chase came from the West Virginia Central
railroad, which proposed to fill up the old
ditch and use its course as the bed of q
railway to Washington, which, II con-
structed, would parallel the Baltimore and
Ohio railroad.
The holders of the mortgage bonds OF
1s4S. taking advantage of the act of 1874
waving the states lien upon the canal
filed petitions in the court Of appeals
against the sale and asking for the ap-
pointment of receivers to manage the canal
and stra!ghten out its affairs.
The b. and o. interests.
Judge Alvey granted the prayers Of the
petitioners, and appointed receivers for the
canal. These trustees-John X. Cowen,
Hugh L. Bond, jr., and Joseph Bryan OF
Richmcnd-were later appointed trustees
under a mortgage deed of $500, Goo executed
by the canal company. The principal
holder OF the mortgage bonds of 1874 is
understood to be Miss Mary Garrett, while
the main holder of the mortgage of 1878 is
the Baltimore and Ohio railroad, which,
according to Attorney General Poe, is real
ly the present director of the affairs of the
waterway.
In his decree appointing the receivers
or trustees Judge Alvey said that the fail
ure of the canal within four years from
May i, 1898, to earn enough money TO pay
any amount that may be determined to be
preferred lien on such tolls and reve-
nues for labor and supplies furnished TO
the canal company shall be regarded as
evidence conclusive. unless the time be eX-
tended by the court for good and sufficient
cause shown that the said canal cannot
be operated so as to produce revenue with
which to pay the bonded Indebtedness Of
the said canal company, and the sale
should be enforced.
Judge Stake. in the circuit court for
Washington county, recently extended the
time of the trusteeship six years.
The mortgage bonds of 1884 are regard
ed as a first lien on the canal, the mort
gage bonds of 1873 second lien and the
states interest a third Hen although At
torrey General Poe of Maryland gives it as
his opinion that the states should be the
fist lien upon the property.
The West Virginia Central Wants 1t.
While it is probable that Chief Justice
Bingham's decree had something to do with
the action of the Maryland state board Of
public works, there Is something more be-
hind it. The majority of the lie ard are de-
voted adheralts and friends of Senator
German. and it is said in some quarters
that their deeermna ton to advertise the
canal property for sale was largely inf1u-
enced by the political opposition of the
Baltimore ana Ohio company to Mr.. Cor
man. The West Virginia Central road, it
is said. stands ready to give almost any
Price within reason for the canal property
and 1t Is probable that some of its agents
will be present at the sale of the real
estate at the junction of Rock creek and
the river, so that. if necessary, it may be
bought In for terminal facilities in case
the West Virginia Central and the state of
Maryland come to terms for the entire
property between Cumberland and this
city. 1t is not expected that open bids will
be made In behalf of the railroad company
option from the purchaser in case a sale