Evening journal., 1914-03-23
C.& D. CANAL PROBE
NOW IN PROGRESS
Senator Salisbury Starts In
vestigation Into the Pro-
perty Ownership
ROUGH PASSAGE
FOR APPROPRIATION


tion involving the purchase by the gov
eminent Of the Chesapeake and Della
ware Canal came up in both the House
and Senate on Saturday when senator
Salisbury began his investigation into
the stock and bond ownership OF the
property. on the one side and the House
reached the item in the Rivers and Har-
bors bill, on the other
Representative Brockson of Delaware
led the debate on the measure in the
House and at the conclusion OF his
speech, Minority Leader Mann called for
quorum. He failed TO get this and as
result the House was forced TO ad-
journ. In the Senate. the Committee on
Coast and Insular Survey began its
probe into the ownership and operation
of the canal.
c. w. Maupin. law clerk in the Office
Of the Solicitor of the Treasury, was the
only witness before the Senate commit
tee Saturday. He testified TO the facts
developed in a suit of the government
against the Canal Company for unpaid
dividends on the stock of the canal held
/ by the government. The government, it
seems, owns 3S l-2 per cent. of the total
outstanding stock and script amounting
to 1903 23s. 1t is claimed by Treasury
officials that the company owes the gov
ernment S5llS7.5 in dividends accruing
since 1873 and interest on these divi-
dends of $4,000.
Government Loses Dividends.
The witness declared that the govern
ment had never received any money
from its stock, but that two officers OF
the company by preparing a fictitious
receipt had received the money. He
then detailed the process whereby the
government had been made to lose the
dividends. The details indicated that
criminal proceedings might have been
instituted. in answer to a question from
Senator Sterling, however, Mr.. Maupin
said that only civil action had been
brought by the Treasury officials. lie
added that the State OF Delaware had
proceeded in the criminal courts against
the guilty officials.
Speaking of the approaching trial fol
the recovery OF these back dividends, Mr.
lAlaupin declared that the statute ol
limitations had been invoked by the
lcanal company, but that the Treasury
Department mad demurrcd and that it'
demurrer had been sustained. He saiC
he expected that the date for the tria
would be fixed for the coming week. III
said the government believed it had q
good chance to recover its money.
The subcommittee Of Senators
Salisbury. Works, Sterling and Lee
of Maryland, will meet again Tuesday
afternoon to hear the officials of th'
Canal Company.
That a hard fight confronts thu
chesapeake and Delaware item in tn
Rivers and Harbors bill in the Hous
. came to light when the S1,300,000 ap
lpropriation was reached. Representa-
, tive Brockson made a ive-minut
/, speech in behalf Of the appropriation
setting forth that the government
should take hold of the water wa
! and improve it for the development o
commerce between the Chesapeake
e Bay and the populous centres Of thu
! north.
= When Mr.. Brockson had concluded
Minority Leader Mann, of Illinois
blocked further consideration of tn
appropriation today. He said that tn
government purchase OF TINS canal wa
an important step and when the Hous
passes on it there should be quorum
in the House, and the point of orde
of no quorum forced an adjournment
The Chesapeake and Delaware iten
will be reached the first thing Tuesda,
morning, when consideration of tn
Rivers and Harbors bill is resumed.
Mann In Opposition.
Not only Minority Leader Mann, bu
Representtive Cal.away of Texas, in
tends to wage a fight on the Chesa
peake and Delaware appropriation d
the bill. Mr.. Galloway has for year
been a foe Of the proposed Atlantic in
land canal system. He tried to defea
the purchase of the Albemarle an
Chesapeake Canal, between Norfol
and North Carolina, last year, but wa
defeated by the intercostal canal ad
vocates. Representative J. Hampto
Moore and Representative J. Harr
Covington. in charge Of the Chesa
peake and Delaware Canal appropria
ton item, are confident that it will &c
through the House.