Evening journal., 1914-04-28
{. { D. CANAL IS
WORTH S2,1OO,OOO
SenateCommittee FavorS Ad-
ding $SOO,0OO to Item
Authorizing Purchase
STOCK OF COMPANY
VALUELESS NOW

salisbury. chairman OF the Committee
pn Coast and Insular Survey, has sub
mittcd to the Senate the report on the
ownership Of the stock, bonds and other
obligations OF the Chesapeake and Della
Narc Canal Company. The stock OF the
raual has no present value; the bonds
and other obligations are yamously csti-
mated nj from 90 to so per cent of their
par value. Tho total value oi the stock
outstanding j. SlSS5.S50. being 37,7l1
shares lpar value $50 per sharcl, OF
which the United States owns Sl4625
shares and Maryland owns 1925 shares.
The total value OF the bonds is S2.602,
p50 but owing to n peculiar provision
OF the charter the holders OF the stock
ran only cast l.320 votes and the bond
holders can cast ls,O04 votes. The
bonds now pay per cent. but it is
said to be the intention of the company
30 increase the interest on the bonds
10 per cent. when the so-called con-
inQcnt fund now carried on the books
At sS4.77357 shall reach 100000. This
contingent fund may be entirely wiped
out as the result of a suit brought by
the United States against the canal
company for dividends due the United
States in 1873, 1875 and 1876, but stolen
bv two Of the then officials OF tht com
nonv.
Tho report of the committee then
axes up the matter of the present value
,f the canal and frankly admits that
most of ts information is based on the
.eport OF the commission, of which Gen.
Felix Agnus was chairman, and gener-
llly known rs the Agnus Commission
L says:
Agnus Commission Report.
MANY official reports concerning
the canal and its value have been
made from time to time by engineers
of the United States Army and others.
In 1896 a special commission was
appointed for the purpose of ascertin-
ing the most feasible route for ca
nal between the Delaware and Chesa-
peake Bays. Your committee had be-
fore them General Felix Angus, of
Baltimore, the chairman of that COM
mission Colonel G. A. r. Flagler, at
the time engineer in charge OF that
district. and General William n. Blk
BY. retired, late chief of engineers
of the United States Army. These
gentlemen have as close and inu-
mate knowledge with the Chesapeake
and Delaware Canal as 1t is possible
for the officials who have been
charged with the duty of asceruning
the value of the canal to obtain from
close study of the physical condi-
tion of the canal itself and investiga-
ton of all it's affairs and property,
as we'll as the value Of the canal TO
the government for military and
naval purposes and as an aid to COM
merce
"The Arnus Commission, when Col
onel Flaglcr. then major of engineers,
United States Army. had charge Of
the Wilmington CDel) district, made
q detailed valuation of the works and
property of the canal. The value
there given is S3,70S,1S6.
General Bixbey. in his testimony
before this committee, confirmed this
valuation and showed that no new
appraisement was necessary. as the
appraisement made in 1906 was con-
frmed by present cost prices of ma
terial
"Ever since the Agnus report I'm
1907. wherein the cost of reproduce
tion. estimates of properties and ap-
purtenances of the canal. and other
elements entering into It's value we're
carefully considered. the conclusion
reached by that commission that the
government could afford to pay and
should acquire the canal for the sum
of S2.514.2S9.70 has been cOncurred
I'm by all government officials. army
engineers and persons reporting on
the canal. as a fair price to be paid
This amount was reached by the
commission after careful considera.
ton given the matter.
Not Worth Over S2.lO0,0O0.
after full consideration by your
committee OF all official reports on
this canal the testimony taken by Il
and information which IL has obtain.
ed regarding the possible value o
the canal to the owners and holders
OF its stock bonds and obligations
your committee has reached the con
clusion that while the stock and OBJ
legations of the company by the ex
penditures of some millions of dollars
might be made much more valuable
the present value of the canal a.
shown by its earning capacity doe
not exceed S2.10O.000. and that il
bonds are not worth, considering tn
value OF the property by which the
are secured and the present an,
prospective earnings Of the propertl
mortgaged to secure them. more thar
so per cent. of their face value whicl
would be approximately S21O0.00O
"In purchasing the canal YOU
committee also thinks thaa the claim
Of the government against the com
pany and its property for unpais
dividends and interest should be tax
en- into consideration and that tn
canal under such circumstance
should be purchased by the govern
ment for sum not exceeding S2.1OO
000
Your committee has secured tn
opinion of many of the holders o
the bonds of the company as to tn
value Of the bonds. and practically al
of them claim that the par value o
the bonds should be given for tn
canal In this opinion your com
mittee cannot concur for the rea
sons given, but believe that the ac
Quisition Of the canal by the gov
ernment without resort by II to cor
demnation proceedings is PRACTICAL
impossible, because in addition 7
holding the securities with the hon
that the government will at least pa
the par value of the bonds. the owner
and holders Of the stock and bond
are so widely scattered as to rel
der it impracticable TO deal with thel
individually and thus acquire the
holdings.
Appropriation Inadequate.
We therefore conclude that n
appropriation carried in this presei
river our horhor lfII Mill ....---o 3,