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317
To the Honorable, the Convention of Maryland :
The memorial of the United States of America, the State of
Virginia, the City of Washington, the City of Georgetown,
and the City of Alexandria, respectfully represents :
That your memoriolists are original subscribers to the stock
of the Chesapeake and Ohio Canal Company, to the amount
of two millions seven hundred and fifty thousand dollars.
That when the Legislature of Maryland, at its December
session, 1844, passed an act for the completion of the Chesa-
peake and Ohio Canal, whereby she postponed all the liens
and mortgages of the said State, in favor of such persons as
would lend the said Canal Company, upon its bonds, the
sum of seventeen hundred thousand dollars, to complete the
Canal to Cumberland, your memorialists, as stockholders in
the Canal Company, assented to, and accepted the act, and
the same became, by their acceptance of full effect and oper-
ation; and it was the intention oi the Canal Company by ac-
cepting said act, and by executing to the holders of the
bonds, a mortgage of all the tolls and revenues of the Canal,
to give to them a mortgage sufficient in point of value, and
available in point of law, for their security and indemnifica-
tion.
And your memorialists further beg leave to represent that
by the said act and mortgage, it was agreed and understood
that the Canal Company should retain the management of
the Canal and its works, and collect and receive the tolls and
revenues, so long as it should pay the interest upon said bonds
and provide a sinking fund for the redemption of the princi-
pal thereof, but that if the said Company should fail to com-
ply with these conditions, from any cause, except a deficien-
cy of revenue arising from a failure of business without fault
on the part of the Company, such default to be made to ap-
pear by the bondholders, then the bondholders might demand
and thereupon receive possession of, and appropriate the tolls
and revenues of the Company for the payment of the interest
and the raising of the sinking fund.
And your.memorialists beg leave to state that ever since the
execution of the said mortgage, there has been such a defi-
ciency of revenue, that no part of the interest upon the bonds
has been paid since the first of January, 1852, and the ar-
lears of interest unpaid, amount nearly to the principal of
the bonds.
Your memorialists are not called upon, and do not feel
competent, to decide how far the Company in which they are
stockholders, have committed such fault as to entitle the
bondholders to enter into possession of the Canal and appro-
priate its tolls and revenues; but your memorialists having
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