The evening times., 1899-03-23
THE c. & o. CANAL.
Report That the b. & o. Has Made N
Hid for the Waterway.

Baltimore, March 23.-It was currently
reported yesterday that the Baltimore and
Ohio Railroad had made an offer to the
board OF public works for the purchase of
the States interest in the Chesapeake and
Ohio Canal Receiver John K Cowen and
Counsel Hugh l.. Bond attended the meet
ing of the board of public works, which
was held at the Hotel Rennert on Wednes-
day. Both Messrs. Cowen and Bond refus-
ed TO give any information as to the ma
ture of their business with the board
gentleman who is closely identified
with the Baltimore and Ohio Railroad
when asked about the rumor said: There
is no doubt that the railroad company de-
s1res to obtain the canal property This
has been known for some time past, and
mas recently been more apparent since the
recent attempt of the State to sell the
property.
THE Baltimore and Ohio is particularly
anxious to retain absolute control of the
canal, as all the other railroad systems
are pooling and combining on coal traffic.
and no section of the country offers greater
advantages than the coal fields of Western
Maryland. With the control of the canal,
the Baltimore and Ohio Railroad could in
! crease the present output. The canal is
| practically under the control of the road
| now, but the equipment is both poor and
| limited. IL the canal is sold TO the Balti-
more and Ohio, the company will at once
make the water way complete in every
particular by expending large sum of
money both in improving the canal and in
furnishing boats to carry the coal
The terminus at Georgetown will be
greatly Improved, and il is said that these
improvements will be placed there by a
syndicate which will erect a plant by
which coal can be unloaded and reloaded
at about one-third of the present cost In
| addition TO the desire TO branch out in the
| development of the coal mines the BaIti-
more and Ohio, which is now in course OF
| reorganization desires 10 get the canal
! out OF litigation. Just what has been or
Will be bid by the Baltimore and Ohio Com
pany has not yet been determined but it
is an assured fact that they will offer more
than 100000. which was bid by Mr. C.. x.
| Lord when the property was recently ad-
| vertised for sale
| Just what the waterway is worth is a
| subject which has been discussed for some
| time. and opinions differ materially The
| bondholders of 1914 have a lien on the
| revenues of the canal. and the repair
| bonds OF 1878 constitute a first lien on the
1 corpus of the work. These bonds of 1874
| or majority of them, are held by the
| Baltimore and Ohio interests friendly
| W tndt coTpOTatlOn ana tne same interests
! hold the repair bonds of 1878 The Balti-
more and Ohio not only holds these secu-
! rites. but in addition, by decree of the
| court. the trustees for the bondholders OF
| 1874 were put in possession of the canal
until May 1901. These trustees, or a ma
| jority of them. are officials Of the Balti-
more and Ohio Company.
The canal is now being operated by
these trustees. Therefore the States in
| terests are hemmed in by this condition.
| The State has invested from time TO time
! over $7.000.000 in the waterway, now
| amounting. with accrued interest, 10 over
| s20, ,000 G0O.''
| The board of public works. il is under
stood. will take the matter of disposing
/ of the property under consideration. But
| it is doubtful whether they viii sell the
property unless some substantial bid shall
| be made, and ain addition to this it is
| probable that the board will require of
i the Baltimore and Ohio that the property
shall be maintained as a waterway.