The times., 1898-11-24
FATE OF THE Gao. Canal
Likely to Be Controlled by
Baltimore and Ohio.
IT NAY BE ABANDONED
Many Business Interests to Be AZ
fected by the Outcome of Negotia-
tiOns-Belief That the Old Water
way Could BE Made to Pay Hand
somely If Properly Managed.

The many business men in Washington
who are affected by the fortunes of the
Chesapeake and Ohio Canal have been
particularly interested in the proposition
recently broached to dispose of Mary
lands interest in the canal 1t is the be-
lief of people conversant with the affairs
of the canal that it will soon become the
| property of the Baltimore and Ohio Rail-
road. Many believe that the railroad will
discontinue the waterway; others that it
junct to its railway system and there Is
still another theory that branch line
may be run along the bed of the water
way to do the business heretofore done
by the canal boats.
The reasons for believing that the Balti-
more and Ohio is to own the canal are
evident. The first lien on the canal is
the mortgage of 1878. amounting, in prin-
| clpal and interest to over $1,000 600, and
held by interests friendly to the Balti-
more and Ohio Railroad. The trustees
| claim that the expense of repair after
the food of 1889. amounting TO nearly
$500. 600, and paid by the trustees, is also
lien. This is diputed by the State. of
| Maryland Then come the labor claims
and Judgments amounting to about
| SIZE, 900 One of the judgments is under
stood to be held by Gov. Lowndes as
| executor and the labor claims were
| bought up at about % cents on the dollar
| by persons who are friendly to the Balti-
more and Ohio.
| The mortgage held by Maryland amounts
| to s. 000.0 600, with sixty-five years interest,
which is on the corpus. The bonds OF
| 1874. amounting to about sl,To0,0Oo, are
| lien on the revenues of the canal and
not upon the corpus. These bonds and
| the 1873 repair bonds are practically in
| the same hands, an interest friendly to
| the Baltimore and Ohio.
What the railroads policy will be with
regard to the waterway is, of course,
| known only to its high officials, but as
| there has been good deal Of talk about
| the canal as a threat TO the Baltimore
and Ohio. 1t is assumed In some quarters
that the object of acquiring the property
is to eXtlnguish 1t and so remove that
threat The general belief, however is
that some better fate is In store for the
canal
Friends of the waterway believe that II
is worth at least SO, 600 600. The p'endid
tunnel under a mountain near Cumber-
land alone cost 81 10000 Whether II is
to be continued as a waterway or ured
as the roadbed for a railroad the prop
erty is regarded as too valuable to b. al
lowed to be gobbled up at mere song.
When the trustees. who were operating
the canal under an order of Judge Alvey.
petitioned Judge Stake January 30 1894.
for the ratification of an agreement with
the Chesapeake and Ohio Transportation
Company 1t was set forth that the COM
pany agreed TO maintain and operate the
waterway unless il should be destroyed
or damaged by flood, to guarantee a net
revenue of not less than si0009 year
and to make no change in toll charges.
The petition continued: "The~ expense
of maintaining and operating the canal
does not increase with the increased tom
mage and traffic. For 1893 the canal was
more than self-suppGrting from traffic
alone. The revenue tllt will be derived
from further increase of traffic will lie
net revenue. The canal is now In bet er
condition as a waterway than ever before
in It's history. In 1891 there were but 80
beats on the canal: in 1S92 the number
had increased to 1S2. The uncertainty as
to the maintenance of the canal q |
waterway prevents the location of manu- |
featuring enterprises along its route. |
Nevertheless. the business has grown in
the face of extraordinary obstacles. In |
1891 there were ,533 tons carried; in 1892, |
265, 799 tons and in 1893 1856 295 tons. There |
has been a great increase in the coast |
wise trade supplied
The trustees stated that they had bor- |
rowed for repairs si35. 1891. Receipts |
from net tolls, rents and other sources |
to December !, 1893, had been s27J970.13. |
Expenditures for repairs, under order of |
court, were $3.50 75i.i3, and for other &C
counts, $3.50, ,321.17.
In granting the extension of time for
their management of the canal asked by |
the trustees Judge Stake said: The Cd
nal is In excellent condition and its e.
fulness as an instrument of transpor-
tation is Increasing" The petition was
signed by Msssrs John X. Cowen. Hugh |
L. Bond and Joseph Bryan, trustees
The recent years of the canals history
during the business depression have not |
been rosy. but the belief is expressed
that with a renewal of business II could |
be made most valuable again.