460 JOURNAL OF PROCEEDINGS [Mar. 10,

bursed by the Board of Public Works in the uses of the
canal, on the terms and under the safeguard, above described,
for the disbursement of the bonds.

Fifth. Let an association be formed, and if expedient, let
it be incorporated as a Construction Company, the purpose of
which shall be to construct the Chesapeake and Ohio Canal,
from Cumberland to the Patapsco, on" the scale herein pre-
scribed, and to build and stock the railroads to the coal
fields, and also having the further purpose of paying off and
cancelling all debts of the canal, which at present hold pri-
ority of lien on its revenues, to its indebtedness to the State
of Maryland Let this Construction Company become con-
tractors with the State, and with the Canal Company, to per-
fect the canal as herein set forth, and to pay said present
preferred debt. Let the State and the Canal Company, on
their part, contract to pass the new canal bonds to this Con-
struction Company, under the safeguards above prescribed;
and when their contract shall have been completed, and the
work shall have been examined and accepted by the Board of
Public Works, and by the Canal Company, let all the re-
maining bonds be delivered to the Construction Company,
unconditionally, as of their absolute property.

The indebtedness of the canal to the State, thui liquidated
and placed in disposable form, will probably be—say,
$18,000,000, In brief, it is the design of these arrange-
ments that the Construction Company shall contract to
make a perfect navigation from Cumbetland to the deep
waters of the Patapsco—in consideration whereof the 8tate
shall pay them the whole of the debt due the State from the
canal. The Board of Public Woiks is to officiate ah a fidu-
ciary, to protect the public interests in the progress of the
work; and alter the work has been received as faithfully exe-
cuted, then the Board will turn over all remaining bonds to
the contiactors in absolute possession and ownership

It may be safely assumed that the ovvneis of the $2,000,-
000 of preferred bonds would exchange their present securities,
for the new bonds of the Canal Company, (bearing interest,)
at a moderate discount. There would then be $8,500,000
to be raised tor completion of the enterprize ; and the Con-
struction Company would have in band, $16,000,000 of Ca-
nal bonds.

With such collaterals in possession, can it be doubted that
they could effect a loan of $3,500,000 for the purpose of
achieving such vast public benefaction.

The canal as it stands can be made to yield six per cent,
on $5,000,000. When improved as proposed, and terminal-