The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1896-11-24
Failure to Fulfill
Provisions OF Contract May Give the
Hooking Canal Back to the State.
VIII Not BE Deserted without a Dig
Legal Battle.

N'OoSNa w NNhNbNoJ bh6hU WV sssh'
expired upon a guarantee bond o
100000 delivered to the state tw,
years ago for the fulflllment Of AT
important contract and fight tina
created tremendous stir In thu
Legislature was reopened.
Immense interests are involved
in the struggle already portending
In the first place state property
valued at nearly million Of dol
lars is concerned, the parcel In
question being the celebrated Hook
ing Canal from Carol, In Fairfield
County, to Jacksonville, in Athens
County. The second great interest
involved Is that Of the Hooking
Valley and Lake Erie Railway
Company, capitalized at s3,jO0,OOO
which is the lessee of the proper.
ty in question.
The road was planned to parallel
the Columbus, Hooking Valley and
Toledo Railway, In which Senator
Calvin s. Brice and Judge Steven
son Burke, are heavy holders, 80 as
to divide the business OF the great
coal fields in Athens and Jackson
Counties, said to be the richest in
the world. The right of way was
secured through the passage of n
bill abandoning the Hooking Canal
bed for distance of AZ miles, sue
cess being attained only after one
of the most desperate parliament
tary battles that the General AS
sembly has ever witnessed was
fought.
Charges of bribery and corrup.
tion were hurled at members ac-
ross the floor of the House OF Re-
presentatives. Governor McKin-
ley took a powerful hand in the
matter TO avert the disgrace that
was afterward attached to his Ad-
minist ration, and the Courts were
busy for year with the various
suits that were fled in connection
with the affair. There were num-
ber of powerful interests reaching
after the valuable right of way, and
though public bidding was denied,
yet the struggle caused the price
to be paid the state to be "boosted"
in remarkable degree.
1t was natural that the Hooking
Valley and Toledo Railway Com
pany should fight the measure, as
that wealthy corporation enjoys a
practical monopoly of the coal
fields through which its lines run,
A third interested corporation was
the Chicago and Southeastern Com
pany, which was organized, it was
claimed, solely TO compete with
the'original company that began
the movement. The condition
upon which the grant was made
was that the work of building the
road should begin within six
months after the passage Of the act
and should be completed within
two years thereafter.
To guarantee this condition @
bond OF 100000 was deposited with
the state officials. A rental Of $10,,
900 per annum was exacted the
company being required to deposi,
$4,000 in cash with the State Treas
urer before beginning the work OI
construction. These conditions
were complied with, but the road
has not been built. In fact, IL was
only surveyed and some grading
begun. The 80 months limit ex.
pired, as stated yesterday, and, un'
der the law, the bond should have
been forfeited.
Another condition OF the law /.
that whenever the company leasing
the property shall cease to use 1,
for railway purposes that 1t shall
revert to the state. Both sides tC
the controversy have been watch.
ing affairs most acutely. Within q
few days II is likely that the at
tention OF Governor Bushnell and
Attorney-General Monnett will be
drawn to the lapse of the contract
and the litigation that is already
In prospect will ensue. The fact
that Governor Bushnell Is absent
from the city today probably pre-,
vents the notification from being
made before sundown.
What the intention OF the lessees
are Is not known. Developments
during the session OF the General
Assembly last winter indicated
that they propose to hold on to the
property under the claim that as
long as they pay the state $4,000
per AMMAN they may retain poss'
ession for 90 years, the term OF the
lease. This statement was made
by Speaker David l.. Sleeper, who
was tho attorney for the original
company.