In reply, I most respectfully submit, that at this late period
of the session, it would beimpracticable to commence such
investigation in the hope of reporting the result at an early
day. I can, therefore, give to the Senate only such informa-
tion concerning "the circumstances under which" the pay-
ment was made, as I possess. This I proceed to do in the
following statement:

In December, 1867, "the Commonwealth of Virginia," by
her Attorneys, filed abill in the Circuit Court of Baltimore
city, against the Chesapeake and Ohio Canal Company and
certain trustees and bondholders, the chief object of which,
(as stated in the brief of its counsel, at the argument on the
22nd of June, 1868,) was to obtain a decree of a Court of
competent jurisdiction, with all the necessary and proper
parties before it, determining the legal priorities of the va-
rious creditors of the Chesapeake and Ohio Canal Company,
so that it may, with safety, pay its surplus tolls and reve-
nues to the persons legally entitled to receive them.

The claim set up by Virginia in the bill was, that as
guarantor of $300,000 of "the preferred bonds," of $200,000 of
the repair bonds, issued by the Company, as it was alleged,
in virtue of the Maryland Act of 1844, chapter 281, (where-
by it was charged that Maryland waived her priority as
mortgagee under previous mortgages of the tolls and reve-
nues of said Company, in favor of the said bonded debt and
interest,) Virginia had paid and taken up certain coupons of
interest on the repair bonds, in default of the Company's being
able to pay the same. That the Company being also unable
to pay the interest on the preferred bonds, made an arrange-
ment with Seldon, Withers & Co., bankers, under which
they took up certain coupons of interest to the amount of
$143,000, for $140,000, of which, the Company afterward
issued to them certificates of debt bearing interest payable
semi-annually, whereby they claimed to be subrogated to the
rights of the original owners of the coupons. That Virginia,
as assignee, for value, holds the said certificates, which she
claimed to be a lien upon the tolls and revenues of the Com-
pany by virtue of the Maryland Act of 1844, chapter 281,
and the Company's mortgage to certain trustees. That Vir-
ginia had also paid interest coupons on preferred bonds as
guarantor, which it had surrendered and for which it re-
ceived a certificate of indebtedness of the Company for
$35,000. bearing interest from 1st October 1852, payable half-
yearly. That inaddition, Virginia, as such guarantor, had
paid other coupons of interest to the amount of $269,625.
Upon ail these claims, the bill averred that Virginia was
entitled to interest from the time of the said several pay-
ments, to the payment of which, the net tolls and revenues