The evening times., 1898-11-28
CHESAPEAKE AND ;.
OHIO CANAL SALE
Marylanders May Demand a
Legislative Investigation.
RAILROAD NOW CONTROLS
How the Baltimore and 0ii0 Won
Possession of the Waterway.
Feared Its Compctition-At the Pro-
posed Sale Ii Could lie the Only
Bidder for State Bonds.

Maryland's legislature will, it is re-
ported, be asked 10 make an investigat on
of the action of the Maryland board of
public works in advertising for bids for
the sale of the Chesapeake and Ohio Ca
nal.
Reports are currentas-here,, apparently.
coming from trustworthy sources, that
prominent Marylanders may enter
strong protest against thes action of the
board and urge the legislature, when 1t
assemblies, to begin a rigid investigation
of the whole affair. II is alleged that the
action of the board was influenced by the
Baltimore and Ohio Railroad, which con-
trolls a majority of the stock Of the canal
and which, under a decree OF the court,
will manage the canal untih 1901.
AS the canal, it is said, gets deeper and
deeper in debt each year and as the rail-
road corporation has II in IFS power 10
largely increase that debt, should any
other corporation or syndicate purchasa
the waterway, it is declared by the
friends of the canal that there can b. no
competition in its sale because there will
be only one bidder. the Baltimore and
Ohio Railroad, and the board should nos
have advertised the sale until 1871. when
the authority of the road over the canal
ceases.
Charges of corruption, therefore, are
likely to be made against the board aid
the canal and railroad questions viii
probably be matters of great poiiti al i'm
in, in ha INN Cd "a r.
future.
a prominent Marylander who was in
this city today made this explanatory
statement concerning the whole affair.
THE State of Maryland in 1926 '2S en-
tered upon the work of constructing pub
lie improvements. It's first charter was
10 the Chesapeake and Ohio Canal. which
was completed to Cumberland, Nd in
1852
This canal was also aided largely by
Virginia and the United States Govern
ments, but Maryland was It's chief owner,
having invested $S,000,0o0 or 100000,
which now amounts, with interest, TO s24.-
600 600 .----------
After the charter of the canal, the Bal
Iimore and Ohio Railroad was chartered
and was constructed 10 the Ohio River,
largely by the aid of Maryland money.
The canal was not success as car
rier and was in serious trouble until
1867 81 when, under the management Of
Gen. James c. Clark. it not only paid
expenses, but had net receipts of more
than si.0OD.00O in two years. Following
Mr.. Clark, Senator \. p. German became
president and under his management the
trade OF the Baltimore and Ohio was still
further encroached upon.
This condition challenged the attention
of the railroad company, and Robert Car
rett, then president. began attempts 10
get possession OF the canal through the
politics of the State.
About that time the canal met with
great disaster by floods, which destroyed
the works to such an extent that a new
bonded indebtedness of 500. 600 was -neces-
sary. These bonds were made the first
lien on the works by The waiver of the
States lien. The Baltimore and Ohip in
terests secretly purchased these bonds
when they Were sold and finally secured
all of them. They also systematically. it
Is charged by the officials of the canal
diverted trade from the canal and made
Il impossible for it To pay current eX-
penses.
THE political fight became fiercer and
more open upon the part of the railroad
company until 1895, when they made an
alliance with the Republican party and
elected Lloyd Lowndes, Republican, gov
ernor, and with him secured majority
OF the board of public works. In addition
the railroad company, as appears from
the report of MIR. Little. who examined
their accounts, bought a majority OF the
preferred bonds of the canal company
They then succeeded in placing the canal
company In the hands of receivers, who
were practically agents of the Baltimore
and Ohio Company. They alleged that if
they We're permitted to manage the canal
they could make it q paying concern.
The four years expired with no results,
except that the canal was deeper in debt
the indebtedness being held by the Balti-
more and Ohio Railroad and a court was
induced to extend the time in which the
company should manage the canal until
1900 or 1861. They now have II under their