Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-11-28
SALE Of CANAL STOCK
Maryland to Dispose of In
terest in the G. & O.
DISTRICT INTERESTED
LATTER HOLDS CONSIDERABLY
STOCK IN THE COMPANY.
Question of New Railroad Into This
City is Said to Be
Involved.
DISTRICT INTERESTED

Involved.
A rumor is abroad to the effect that the
Chesapeake and Ohio canal is to be sold
and Its place taken by a new railroad
into the capital city. This rumor is
strengthened by the offer of the board of
public works of the state of Maryland to
sell the states interest In the waterway,
the bids to be opened at noon. December
1-next Thursday-at Annapolis. In this
connection 1t is asserted that more pressure
will be brought to bear on Congress at
the coming session to secure the passage
of the bill introduced at the last session.
authorizing the District of Columbia to sell
at the highest possible price. the canal
bonds which it holds.
1t is an open secret that the Western
Maryland Railroad Company, controlled BY
the Wabash system. requested the state Of
Maryland TO put its stock up for sale and
will be bidder for the same. The avowed
purpose of the request is said to be that
the railroad may be placed in better po-
sition in the courts in pressing for permis.
sion to construct the Cumberland exter-
sion along and over the canal property and
right of way
But in this behalf the legislature OF
Maryland last winter granted all the power
ii could by authorizing the railroad COM
tain properties of the latter. Be this as It
may, the railroad apparently desires possess
sion of the entire waterway, and, it IL
claimed, is ready to pay a big price for
the states interest and mortgage The
real reason, it is declared, is that the Wa
bash system wants to enter Washington
over the canals right of way.
Would Not Give Control
The mere purchase of Maryland's stock.
although it is a large majority of all that
was ever issued, could not, it is claimed,
give the railroad possession of the body of
the canal. If the mortgage were acquired
the purchasers might be in position to
pay off all prior liens and take the property.
These liens are said to be very large. though
their exact amount has never been ascer-
tanned There are said to be 500 600 of six
per cent repair bonds issued in 1878, with
accrued Interest, secured by a first mort
gage. It cost $435.O00 to repair the canal
after the flood of 1889, and the expense of
the previous receivership. it is said was
$4,000
The purchaser of Maryland's interest in
the canal will OF course be In the position
the state is now In. Since 1889 the state
has been contending in the courts for a
sale of the canal for the satisfaction of it's
claims, but every time the decision has
been adverse. The extension of the time In
which the present trustees possess the canal
expires, ii is understood, January j, 1906,
or about year hence. 1t is. of course.
anticipated by all interested in the affair
that an application for renewal will bs
made at that time, as has been done three
times heretofore. But right here will come
the rub, those interested say, IL the Western
Maryland holds the state of Maryland's In
terests: for there will doubtless be fight
for possession of the body of the canal be-
tween the Western Maryland railroad and
the Baltimore and Ohio railroad which. it
is understood, is closely identified with the
Chesapeake and Ohio Canal Company and
desires to keep every other road from ex-
tending its tracks to Washington over the
canal route.
Good Approach to Washington.
The course of the canal along the river
from Cumberland. Nd, to this city has long
been regarded as a good approach to Wash
ington, especially since almost every bit of
| necessary grading and bridging is already
accomplished. The scenery along this route
Is much more beautiful than can be had
on either the Pennsylvania or Baltimore
and Ohio between here and Philadelphia
Ihe canal ends at the mouth of Rock creek
in the heart of the business section of
Georgetown, and would it is claimed give
splendid facilities for handling freight.
The building of a new railroad from Har-
pers Ferry to the capital would of course
anect the business of this section of the
Baltimore and Ohio, which runs over prac-
ueaiiy the same course, and it is on this ac-
count that the purchase of the canal prop
erty by the Wabash system will be opposed
according TO statements made on all sides
The canal is 1S41s miles long OF its length
nve miles are in the District of Columbia
tmrty-six and one-haf miles in Montgom.
cry county, Nd; sixteen in Frederick coun-
", seventy-seven in Washington county
ana MY IN Aieghany county. The level
at Cumberland is 600 feet above that at
Georgetown, and this elevation is obtained
| by means of seventy-four locks. II is fed
from the Potomac from seven fine dams
across the river, and its estimated capacity
| is 3,264.O00 tons a year. 1t has never car
rled In one year, however; quite a million
| tons.
The authorized capital stock is IS $50. 400.
| OF which $133,2o9.61 was never issued. The
subscribers to the stock are: The state OF
Maryland. 5.000.o00; the United States.
H.O0o.0o0: the state of Virginia. $3.50. 600:
| city of Washington, $1.000000; Georgetown,
| $2jO.000; Alexandria, $250000; Shepherds
| town, 5000; individuals $607. 400. In 1884
! the state of Maryland loaned the company
! 5000, 600, taking as its security a first
| mortgage on the property under the act OF
| that year, chapter 241 At the tine of the
| flood of 1889, or, rather, at the close of the
| fiscal year of 1885, the canal company owed
| the state in principal and accrued interest
| $19, III, ,4G0.77.
| Value of District Bonds.
| The nominal value at present of the bonds
held by the District is $4,000, though their
| real value is said to be much less. The
| bonds were received by the former corpora
/ tions of Georgetown and Washington in ex-
change for a like amount of stock issued
| by those corporations under ordinances ap-
proved in 1S41, to assist the company in the
Construction of the canal. This stock, il is
| said, was duly presented and redeemed by
the municipalities, that the bonds prac-
| tically represent cash loan made by the
! cities to the canal company. The District.
! ii is understood. is entitled to any proceeds
| that may be derived from the disposal OF
! these obligations, 1t superseded the cor
| porations of Washington and Georgetown.
! Commissioner Macfarland stated today
1 that he will suggest to the Commissioners
| that they call to the attention of the next
| Congress the desirability of passing the bill
| introduced at the last session giving the
| Commissioners authority to dispose of the
bonds of the Chesapeake and Ohio Canal
/ Company held by the District of Columbia.
The interest on the bonds due the District
| amounts to S9.oo0.
Offer Made the District.
| During last year the Commissioners re-
ceived an offer of 27 cents for these bonds
| from Mr.. David Rittenhouse, a teller In tho
Riggs National Bank of this city. The COM
/ missioners. it is understood. considered the
! price mentioned As an advantageous offer