MR. MATTHEWS, of Allegany.
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REPORT
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OF THE
MINORITY OF THE COMMITTEE
ON
INTERNAL IMPROVEMENT.
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ANNAPOLIS:
WILLIAM M'NEIR, PRINTER.
1840.
/
REPORT.
The Minority of the Committee on Internal Improvement, beg leave
respectfully to report, that a copy of the orders passed by the Senate on
the 6th ot January, was transmitted to each of the companies therein
named, with a request that the information sought by the orders should
be communicated. As the committee are not yet in possession of the
answers to our enquiries from the Chesapeake and Ohio Canal compa¬
ny, the minority of the committee desiied to delay the report, in order
to present together the statements of each company, which they expec¬
ted, from the letters of Mr. Thomas, marked Nos. 1 and 2, would be
furnished at an early day. The two letters referred to, from the Presi¬
dent of the Canal company, inform us that he is preparing a full
statement of the affairs of that company, which he will have comple¬
ted in a short time, and which will impart all the information desired
by the Senate. The majority of the committee not concurring in this
view, and having already submitted their report, imposed upon us the
duty of briefly stating the facts presented to us by the President of the
Baltimore and Ohio Rail Road company.
The committee have received from the Baltimore and Ohio Rail
Road company, several documents; the greater portion of which, how
ever, the minority of the committee cannot think pertinent to our en¬
quiries, but is rather a controversial reply to the Governor's message,
than an answer to the enquiries involved in the orders of the Senate.
From that portion of the communications and documents responsive to
our enquiries, we learn that this company have not sold any of the
State bonds since the last session of the Legislature. That whether
it has hypothecated any of the bonds, is a matter of controversy, and
depends upon the meaning which may be given to Terms. We further
learn from the letters which passed between Mr. McLane, President of
the Rail Road company, and the Messrs. Baring, that an agreement
was made' between that house and the company, by which the latter
was authorised to draw upon the former for j£10,000 sterling—equal to
about $50,000 monthly for four months after the 1st of April next, at
60 days sight, and that for payment of their drafts, if they were not
paid by the company, the Messrs. Baring were at liberty to sell the
State bonds in their possession without limitation of price. Until
these advances are made, the arrangement is inoperative, when the
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advances are made, the bonds would be pledged with power of sale
without limitation as to price, to cover advances made. After the ad¬
vances are covered, the power to renew the arrangement, charging the
account with interest not less than 5 per cent, is reserved to the com¬
pany. Whether this is an hypothecation, the character of the transac-
" tion and the sense in which that word is to be used, must determine.
In addition to this arrangement for advances, the Messrs. Baring were
appointed agents of the company, for the sale of the bonds at a fixed
price, whether any advances were made or not, as will appear by the
-letters referred to, marked Nos. 1, 6, 7, 8.
This company have issued notes, transfer orders, or certificates, in¬
tended to be used as notes, to the amount of $2,800, as will be seen
by the papers marked Nos. 4 and 5. These remain unredeemed and
secured by the stock of the city of Baltimore.
All of which is respectfully submitted,
WM. MATTHEWS.
N. MARTIN.
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