The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1899-10-28

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the works of the Company which their labor
and means constructed, and said recent labors
are equitably entitled to priority in payment
of their claims over all lien holders of all
kinds, &C.
BY Section the State valves all liens by
way of mortgage or otherwise upon all prop
erty and the tolls and revenues, &C., between
JAN l, 1877 and Jan. l, 1890, but nothing
prior to 1877, unless same have been reduced
TO judgments, which were valid and unpaid
prior to the date of the order of court placing
the property in the hands of trustees.
Section . provides that in the event of
sale. the waiver TO be valid, and the claims,
judgments, &C., from 1877 to 1890 shall have
priority over those prior to January, 1877.
Section 8 provides that claims and iudg-
ments shall be proven prior to September l,
1896.
Section provides that the assignee Of
claims aud judgments shall hare all the bene
fits Of this act as the original otcner.
Who owns the claims in favor of which the
State waived its claims by the act of 1896 ?
Is it true that the State will get only about
100000 out Of the proceeds of the sale of the
canal. and that 100000 will go to Baltimore
and Ohio interests and the other $1,000 to
persons who bought up the claims at heavy
discount? If these claims have been bought
up and are now held by assignees, was not the
recital in the preamble to the waiver of claims
act that "a large majority of said climants are
poor persons declaration intended to de-
eeive? In fact was it not deliberate false
hood?
rs il not a fact that the National Bank of
Cumberland, of which Gov. Lowndes is Pres-
dent, together with his friend B. A. Rich
mond and others, bought up these claims to
the extent of seventy or eighty thousand dol
lars as low rs twenty and twenty-five cents on
the dollar, and after the same had been pur-
chased legislation was obtained by which the
State would pay the whe!e amounts? Was
not the payment OF the claims thus made
matter of personal gain We would like to
have some denial of this statement, but think
we can prove our case in any court in the
State. The transaction was a fraud upon the
treasury, and even If the Governor did not
have a personal interest in it, he was aware it
was a mere speculation by money changers
of course IN the name of the workingmen."
There is another phase to this canal bust
ness, apart from the inadequacy of the bid,
the bargain between the Allegany Ring and
the Baltimore and Ohio, and the question OF
the waiver of claims. The proposed lease of
1890 provided for the building Of a railroad on
the line Of the canal, and the amended char
allel or nearly parallel railroad from acquiring
possession or control of it or acquiring any of
its stock, thus iusuring the maintenance OF
competing transportation line TO the rich and
populous counties of Western Maryland where
the canal runs. The building OF that road
would have enchanced property values along
the route, developed all contiguous property,
increased trade, and the property Of the rail
road would have added a million dollars to
the taxable basis for state purposes and
large amount to the taxable basis of every
county where il was built Further, by con-
nection of the Western MARYLAND railroad with
the Washington and Cumberland railroad at
Williamsport the trade Of Baltimore city would
have becu greatly benefited, and the Western
Maryland railroad principally owned by the
city Of Baltimore, would have become, most
likely, a self sustaining road instead of being
a charge on the city for interest on bonds
guaranteed by the city. As abeYe noted,
Enoch Pratt was one of the iHcorporators of
the Washington and Cumberland railroad. In
the issue of February 6, 1890, of the Baltimore
Sun, Mr.. Pratt is quoted as saying ''that he
was in the enterprise TO protect Baltimore's
interests, and that it the proposed connection
with the Western Maryland should be made at
Williamsport this end would be served.
By the proposed sale by the present Board
OF Public Works, the Baltimore and Ohio
would have continuation of the monopoly
otthe freight and passenger travel of q rich and
aud populous section of Maryland. with the
power TO fix such charges rs it pleases; pro-
gress and development would be retarded; the
taxable basis kept at a standstill or decrease,
and railroad company with tax exemptions
and unusual charter advantages be further
aided in its ruinous policy toward development
OF the state.
In the Baltimore Sun, of November 2S,
1898, a special Washington dispatch contains
an interview with "a prominent MarylanderH
on the proposed sale of the canal by the AL
legany Ring to the Baltimore and Ohio Rail-
road. The interview sketches the history of
the canal FROM lS26-25 TO the presidency of
James Clark, and proceeds:
Following Mr.. Clarke, senator German became
president and under his management the trade OF
the Baltimore aud Ohio was still further encruached
upon. that the canal surplus of the first four
years OF his administration about a million
dollars The condition challenged the attention OF
the railroad company TO such an eX tent that II de-
tersncd TO control the politics OF the state so as to
control the management OF the canal
'Mr Robert Garrett, then president of the rail-
road, acting under the instruction Of John h.
Cowen, his counsel. began systematic attempts TO
get possession OF the canal through the politics of
the State. About that time the canal met with Il
great disaster by the floods OF 1878 and 1879 which
destroyed the works TO such an extent that new
bonded Indebtedness of half million Of dollars
necessary to repair the damage These bonds were
made the first lien upon the corpus OF the work by
the waiver Of the States lien.
Quietly and secretly the Baltimore and Ohio in
terestS purchased these bonds when they were sold
and finally secured all the bonds 50 issued. They
also systematically, as was charged by the officials
of the canal. diverted trade from the canal and
mace it impossible for it 10 make sufficient to pay
It's current expenses
The political ight became fiercer and more open
upon the part Of the railroad interests until 1895,
when they made an open alliance with the Repub-
lican party and elected Lloyd Lowndes, Repnbli-
can, Governor, and with him secured majority OF
the board OF public works. The railroad company,
in addition, as it now appears from the report of
Mr.. Little who examined its acts, bought up ma
iority of the preferred bonds of the canal company.
Il then sought and succeeded in placing the canal
company in the hands of receivers, and the receiv
were practically the agents OF the Baltimore and
more and ohiO-allegiug that II they were per-
mitted to manage the canal they could make il q
living going concern and paying concern.
Miss Mary Garrett became the bondsman of these
subagenis. The four years expired, with no re-
suits except that the canal was deeper and deeper
in debt the Indebtedness of which was held by the
b, and o. and q Maryland court was again induced
TO extend the time in which the company should
manage the canal until 1901. The railroad interests
now have it under their control, and there is no
means by which it can be taken out until the eX-
piratiOn of that period.
''The board of public works has elected a presi-
dent and directors of the canal company, who were
named By Mr.. Cowen the dominating spirit OF the
b. and o.. so that the possession of the work. its
management and its officers are to all intents and
purposes b. and o. agents and under the direction
lie works, as il has the power TO do has advertised
for bids for the stock and bonded interest of the
State Of Maryland which is the controlling interest
Of the work and will receive bids until the early
part of February. The inevitable effect of this must
be to exclude ali bidders except the Baltimore and
Ohio Railroad Company, for no outside party can
afford TO buy the States interest two and one-halt
years IN advance of the time when il would be pos
sibe for the purchaser to get possession of the
work.
During these two and a half years the B. and
o. could increase the xpenditures to any extent il
might proper and thus pile up the debt genuine
not, which would bankrupt any outside pur-
chaser.
In addition, all the legal questions growing out
of the preferred bonds of 1914 of the canal bought
by the B. and o. at the rate of 80 or 40 cents on the
dollar, namely, whether they lien on the cor
pus of the canal or only on the revenue would
have to be determined by decision of the court. In
other words, the conditions such to make the
b. and o. the only possible purchaser. and it will
give the State whatever its lberality or patriotic
emotions may dictate"
From this interview, the statements of
which have never been challenged, it appears
that there is close alliance between the Ale
gany Ring and the Baltimore aud Ohio Rail
road and the alliance means worse than
steal of the canal. the suppression of COM
peting transportation line in Western Mary
land, the retarding of development in that
section, a loss to boatmen and laborers on
the canal, and continuation of an oppressive
railroad monopoly. John X. Cowen controls
the Allegany Ring, and the Allegany Ring in
turn is ahSpiufa boSS Of ba Rapublioo,, ,,a,t,-