Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1904-12-09
Ell.
THE CANAL SALE.


The Board Of Public Works, composed
Of Governor WarfeId, Treasurer Vandiver
and Comptroller Atkinson, met at Annsp.
oils on Thursday Of last week and received
proposals for the purchase Of the States in.
terests In the Chesapeake and Ohio canal.
There were but two bids submitted-one
by Mr.. ]. 81. Wheelwright, vice president
of the Consolidation Coal Company, and
the other by Mr.. F. s. Landstreet, the vice.
president Of the Western Maryland Rail
road Company.
Mr.. Wheelwrights bid for the States in.
terest was $151 900; Mr.. Landstreet's bid
was $155,000. The board after opening the
two bids, on motion Of Comptroller Akin.
son, decided TO postpone action on the bids
until December a.
Governor Warfeld, speaking on the sub
Ject OF the two bids, in his well-known
frank and business-like manner, said:
"The first thing to take into consideration
Ia digesting these bids is the consideration
oil the accumulated interests on the claims
which are properly chargeable as prior liens
on the corpus Of the canal. This Is the sub
ject which the Board Of Public Works must
consider and deal with accordingly. have
no idea what the result will be, bat 1t Is per.
fectly plain 70 me that ifa man has an equity
in farm worth $4,000 FIVE years ago and
had paid no interest since, certainly bis
equity in the farm would be worth much
less now.
1.-THE value OF the States interest In the
canal has been variously estimated By pre-
vious biddings under advertisements OF the
Board OF Public Works. At the first bid
ding, eight or nine years ago, Mr.. G. K.
Lord, on behalf OF the Baltimore and Ohio,
bid $4,000 cash. At that time the liens
of the bondholders Of 1873, with interest,
amounted to about 100000. This was
ahead Of the States mortgages. The amount
OF the repairs (s450I OOO) put upon the canal
by the trustees now in possession were at |
that time and are still claimed 10 be lien |
ahead Of the State. Since then the prior
liens have, OF course, greatly increased. |
The interest Of the 100000 bonds of 1878 !
has been accumulsting at the rate of $780,
600 year, as has the interest on the repairs |
II they are finally allowed as q lien. Then,
again, the State further reduces the value |
Of lie liens by the act OF 1895, whereby it |
waived It's mortgages in favor of the labor |
claims amounting to about $4,000 10 |
100000. These claims, with accumulated |
interest, are now ahead OF the State, 90 that |
the States claims can only come In behind |
prior liens, amounting 10 between 81 800, 900 |
and 100000.
"But the most serious handicap upon the |
value Of the States interest is the possession
Of the canal by the trustees under the bonds
Of 1874. These bonds, with interest, now
amount to over 100000. BY virtue Of this
lien on the tolls and revenues Of the canal
the trustees have been put in possession OF
all the properties Of the canal company.
This was done by the court 10 1890, and by
several subsequent orders this holding has
been extended, the last extension being IN.
I'll April, 1905. These orders have all been
affirmed BY the Court Of Appeals-at one
time, 1t is true, by divided court-but the
lAst extension was affirmed by q unanimous
decision. 1t is therefore now thoroughly
established that the trustees can keep pos
session Of the canal IS long as they see it,
As the States only chance 10 realize
anything on its liens will arise when sale
is finally made, and 1t being in the power Of
the trustees. Measrs. Hugh L. Bond and
Joseph Bryan, 10 practically prevent sale
as long as they desire, the value Of the
States interest is thus reduced TO almost
nothing.
These facts explained the small amounts
Of the two bids made for the States interest
10 the canal TO the Board Of Public Works"