Evening journal., 1914-04-30
c. AND D. Canal
MAY Be condemned
Senator Salisbury Offers
Amendment Authoriz NO
Such Proceedings
S2,5OO,0)O IS
APPROPRIATED

Chesapeake and Delaware Canal will
be taken by condemnation proceed
ings II Congress adopts the amend
meut to the rivers and harbors bill
offered yesterday by senator Sauls-
bury. of Delaware The amendment
authorizes the acquisition OF the
canal By condemnation proceedings
nnd approprlates S2,5o0.O00, stpulat-
ing that as much Of this amount shall
le used as is necessary. Legislators
say this amount viii easily obtain
the canal. and they ridlcule the idea
advanced by the oiflcialH OF the canal
that the purchase price should be
S4.5061SS.
u was declared here yesterday
that the company would also be
forced TO repay the Government and
the several states their respective
shares OF the amount of the defaica-
tion in bonds which occurred some
years ago
The impression is gaining here
thar the bondholdcrs do not wish 10
dispose OF the canal at any roason-
chlc figure. The reason assigned by
those making such assertion IS that
the purchase of the canal by The
Government would bring about keen
competition with the Pennsylvania
END baltimore and Ohio railroads be-
tween Baltimore and Philadelphia.
n had been hoped that the COM
panv would manifest a willingness 20
resort 10 condemnation proceedings.
inasmuch as the officials of the COM
pary have announced that they
would not consider that amount
condemnation proceedings VIII be
employed.
an experts who have passed on
the value OF the canal have never
nlacod "A value on u beyond S2.5oO,0Oo.
No Railroad Ownership.
A report of an investigation COM
Quoted by the Senate Committee on
Coast and Insular Survey submitted
hy senator Salisbury, chairman, says
In part:
There was brought to the atten-
ton OF your committee evidence
taken al a hearing by the committee
of the House OF Representatives on
the pending river and harhor bill.
which indicated that the Chesapeake
and Delaware canal was owned or
controlled by the railroads operating
IN the states of Delaware and Mary
land. but of this your committee can
ind no evidence whatever. and the
only benefit The railroads seem 10 re-
colvc is because the canal iH allowed
to remain practically as II was 90
years ago without improvement or
deepening, and the manner OF opera
ton of the canal does not permit II 20
furnish real competition In ranspor-
tation between Philadelphia and Bal
timore or points north and south OF
the Delaware Peninsula"
Valued at Sa.ioo,ooo.
The report concludes;
"Aiter fun consideration by your
committee of an Official reports on this
canal. the testimony taken by IL and
information which IL has obtained re-
garding the possible value of the canal
10 the owners and holders of iis stock,
bonds and obligations. your committee
has reached the conclusion that while
the stocl, aud obligations OF the COM
pany by the expenditure of some mil
lions of dollars might be made much
more valuable. the present value Of the
canal. as shown by It's earning capacity,
docs not exceed 81. .lOOO00, and that its
bonds are not worth. considering the
value of the property by which they are
secured and the present and prospective
earnings of the property mortgagcd TO
secure them. more than so per cent. OF
their face value. which would be ap-
proximately 81 100000.
"In purchasing the canal your com.
mittce also thinks that the claim Of
the government against the company
and It's property for unpaid dividends
and interest should be taken into con
.ideration and that the canal under
such circumstances should be pur-
chased by the government for a sum
not exceeiing sl,l0O.0O
"lour committee has secured the
opinion of many of the holders Of the
bonds of the company o. 10 the value
of the bonds, and practically an of
them claim that the par value of the
bonds should be given FOR the canal In
this opinion your committee can not
concur for the reasons given. but be-
icve that the acquisition of the canal
by the government without resort by it
10 condemnation proceedings is practi.
caily impossible. because In addition 90
holding the securities with the hop,
that the government viii az least pay
the par value of the bonds. the owners
and holders of the stocNs and bonds
are SO widely scattered as to render Il
impracticabe TO deal with them indi-
,idually and thus acquire their hold
ings
"We therefore conclude that the alp.
preparation carried in the present river
and harbor bin win prove insufficient Il
acquire the canal that condemnation
proceedings must be resorted 20 ulti
matcly and should be provided for ~
any appropriation made with the cx
pcciation of acquiring the canal. and
that amount necessary 10 pay ~ ausr,
In condemnation procecnnrs viii not b
less than ~ OOooO and me- reacl
81 500 OO0r