COMPTROLLER OF THE TREASURY. XIX

I had hoped to see these bonds, before this, placed
among the State's paying investments. I certainly had
good reason to expect it when I expressed this hope in.
my report to the Legislature a year ago.

But owing to the financial condition of the Philadel-
phia and Reading Railroad Company the lessee of the
Susquehanna and Tide-Water Canals, that Company has
been prevented from paying any portion of the interest
upon the indebtedness of these canal companies to the
State.

The mortgages given to the State to secure payment
of the bonds with interest are due. It will be for the
General Assembly to take such proceedings in the
premises as it may determine to be necessary and
proper.

Without going through the whole list of investments
which do not yield revenue I will dismiss it by saying
that the total of these unremunerative assets amounts
to the sum of $28,126,034.06; of this sum the State has
a claim of $25,371,966.53 on account of

THE CHESAPEAKE AND OHIO CANAL.

Of the State's claim against this work f 7,000,000.00 of
it is principal and the residue is for interest,

The Treasury has derived no revenue from the Canal
Company, yet it is an extremely useful channel of Com-
merce.

What is to be the future of the Canal ? is now the
question before the people of this State.

It is conceded that the affairs of the Canal have been
well and economically administered by President Baugh-
man, and yet its revenues were insufficient to meet its
running expenses for the year just closed by $30,000.00.
Nearly all the Repair Bonds have been issued and the
revenues arising therefrom used in keeping the work in
repair.

It is evident that the time has come when something
heroic must be done.

Let a freshet come now, such as has frequently oc-
curred in the past, and its fate is sealed.