ÄliP®»* Í > " :, -oMK™. "'■ ' COMMITTEE OF THE ÉiWIil il III Iii lllîil, 1 TOOETKER WITH THE imimmv report of sôrveî, estimates, etc. MAIiE TO THE 1 Stockholders of the Chesapeake & Ohio Canal Company, ; 1 RKCOMMEKDINÖ j ! AÎIWïMûNAl. PEEOERS TO THE CANAL AT CUMBERLAND, 1 3"a,xi,-u.a,zy Stiz, ISVT". ANNAPOLIS: HE J.I. F. Colton & Co., Steam Px'inters. O'lb 1877. Ch 1811 01^^ A C O M All T T E E OV THE TOGETilEIl AV1TÍ1 THE ENGINEERS' REPORT OF SÜRVEÍ, ESTiiATES; ETC, :t]ADE TO THE Stockholders of the Cliesapeake & Ohio Cana! Company, líECOJIMEÍJKJNG ADDITIONAL FEEDEKS TO THE ( ANAL AT CUMBERLAND, Ta.rL-u.a.rj'- 9tlx, ISTT. ii Al'OLIS; Jj. F. Cotton Co., Steam Printei^s. isn. REPORT. Annapolis, January 9, 1877. To the President and Directors of the Chesapeahe and Ohio Canal Coynpony ; Gentlemen—Your Committee, to whom was referred the report of J. B. G. Eoberts upon the preliminary surveys made by him for the proposed railroad from the basin of the Chesapeake and Ohio Canal at Cumberland, to the coal region about George's Creek, Savage Kiver and Laurel Eun, with instructions to incpuire irito and report upon the practi¬ cability and necessity of additional lines of transportation from the coal fields west of Cumberland to the Canal, beg leave to submit the following statement : The subject, as your Committee fully recognize, is one of vast importance to the future prosperity of this Company, for it would be safe to say that the present trade of the Canal, as well as its success hereafter, depends to a great extent upon the solution of this question. To a proper understand¬ ing of the matter, it will.be necessary to recite, as briefly as it can be done, the various Acts of the Legislature of this State, and the contracts between this and other corporations, providing for the transportation of coal from the mines to the Canal, and to show how fir those obligations have been complied with or avoided. As is well known to the Board, the Canal terminates at Cumberland, from which the coal mines that have been and are now being worked, are distant from twelve to thirty miles. The only mode of transporting the coal from the 4 mines fo the Canal, is over the railroads chartered by the State of Maryland. At the time these charters were granted it was as well un¬ derstood as it is to-day, that unless roads were restricted by law to make their charges uniform to all parties for the same distance, discriminations would be made against the Canal which would seriously impair its revenues ; and provisions were inserted, then supposed to be ample, to secure a proper scale of charges, but which experience has demonstrated to be inadequate, as will hereafter appear. The first railroad chartered, which would connect the coal fields with the Canal, was the Baltimore and Ohio, This road passes through the City of Cumberland, and thence westwardly up the north branch of the Potomac, to Pied¬ mont, where it strikes the southern end of the Cumberland coal region, from which large quantities of coal have been shipped to tide-water. The maximum rates for transporta¬ tion and toll, as fixed by its charter, were supposed to mean that rates per ton per mile should be uniform, and that no discrimination could be made against coal shipped from Pied¬ mont and more western points to the Canal at Cumberland. There was no provision in the original charter requiring the Kailroad Company to connect its tracks with the wharves and basins of the Canal, but in 1847, when it made ap¬ plication to the State of Virginia for permission to extend its line through that State to Wheeling, a clause was in¬ serted in the Act which required the Pvailroad Company to construct a branch track or tracks, connection or connections, to the Canal Basin at Cumberland. Fortunately, too, the Canal bad secured by a prior location, the right of way for its extension through and west of Cumberland on the most practicable if not the only practicable rout for the construc¬ tion of either Railroad or Canal. To avoid very heavy expen¬ ditures, the Railroad Company sought to contract with the Canal Company for the occupation of a portion of its line, and on the 14th February 1851, an agreement was made, bj' one of the provisions of which, the Railroad Company was required to construct one of its branch tracks to the Basin ö between Hoyes' aud Shrivers' Mills, it' desired by the Canal Company, They further agreed to permit locomotives and cars of any party or parties who should desire to deliver coal or other commodities upon the Canal or Basin, to pass to and fro between them and the Mount Savage, or any other rail¬ road which might join the Baltimore and Ohio Railroad at the Mount Savage Road, or to the cast side of Wills' Creek ; and that the Baltimore and Ohio Railroad should designate and keep in good order a track to accommodate all parties offering commodities for shipment by Canal. For the use of its track, locomotives and cars, the Railroad Company were permitted to charge n()t nrore than one cent for each ton of freight, or for each passenger so transported. The provisions of this contract so far as relates to the trans¬ fer of all locomotives, cars and products that pass over roads connecting with the Baltimore and Ohio Railroad, on either side of Wills' Creek, have been lound adeq^uate to protect this Company's interest. But the adjustment of charges for toll and transportation adopted hy the Baltimore and Ohio Rail¬ road Company soon ai''ter its completion, and to which policy they have adhered np to the [iresent lime, made so great a discrimination against the Canal, that very little, if any, coal has ever been shipped by the Baltimore and Ohio Rail¬ road to Cumberland, and tlience by Canal to Georgetown. In other words, the Baltimore and Ohio Railroad charges on a ton of coal from Piedmont to Cumberland, a distance of 28 miles, were nearly as much as from Piedmont to Balti¬ more. The number of tons of coal delivered to the Baltimore and Ohio Railroad, at or near Piedmont from 1853 to 1875, in¬ clusive, was : From the George's Creek Railroad 10,380,7ö7 tons. From West Virginia mines, from 1870 to 1875 393,307 " From the Hampshire Railroad from 1855 to 1875 From other mines near Piedmont 1,467,415 " 34,731 " Making a total of. 12,276,240 " G Of whieli amount only 35,149 tons were shipped to the Chesapeake and Ohio Canal, and none of it since 1857. If the Baltimore and Ohio Railroad Company has the right under its charter to charge one and one-eighth cents per ton per mile on coal from Piedmont to Baltimore, and to charge its maximum charter rates of eight cents per ton per mile from Piedmont to Cumberland, and there be no power in the Legislature to amend its charter and prevent in the future such a discrimination, it will he useless to exfiect any trade to reach the Canal by that road. The second road which we shall consider, that now known as the Cumberland and Piedmont Railroad Company, which is a consolidation of the various roads chartered by the State, commences at Cumberland and running thence to all the mines, terminates at Piedmont, where it connects with the Baltimore and Ohio Railroad. Over this road passes all the coal that is mined in Maryland, either to the Chesapeake and Ohio Canal, the Balto. & Ohio Railroad or the Pennsylvania Railroad. When the State of Maryland granted the charters for the short lines of road to the mines, which have since that time been consolidated, ample provision was supposed to have been made for reasonable charges and to prevent discriminations against the Canal. Without attempting to give a full de¬ scription of all the restrictions and provisions of the various charters, we will call attention to one or two of the most prominent. That portion of the railroad from Piedmont up the George's Creek was by its charter restricted to an uniform rate of two cents per ton per mile, and as all the coal mined along its line, was necessarily conveyed to Piedmont where, it con¬ nected with the Balto. & Ohio Railroad, it was believed that with the obligations supposed to bind the latter road, the Canal Company's interest and trade were amply protected. But we have already shown how barren the result has been. The State also chartered another rgad, commencing at the basin of the Chesapeake and Ohio Canal, running thence 7 through the narrows of Wills' Creek, occupying on both sides of the creek all the space available for the construction of such works, thence to Mount Savage and the coal mines in its vicinity. The rates prescribed in tlie charter of this Company also, were low and made uniibrm, and supposed like others to be sniSciently guarded to prevent discrimation against the trade of the Canal. In addition to the restrictions and obligations imposed by its charter, it was known to «11 interested in the Canal, that this Eailrcad Company, for the purpose of securing the right of way through the narrows, wharf facilities on the basin of the Canal, and other valuable franchises, had entered into a contract with Lynn and others, the owners of the property over which their road was to pass, that they would aid in the construction of a wharf on the Potomac River for the trans¬ shipment of coal and other commodities, and that all coal mined in the lands drained by Jenning's and Braddock's Runs together with all other ores, metals and products, which should pass over the said road, should he by it delivered on the wharf for shipment hy the Chesapeake and Ohio Canal. With such a contract in addition to the charter, it was supposed hy some of the most eminent legal minds of the State that the Canal had absolutely secured all the tonnage that might pass through the narrows of Wills' Creek. This railroad property and franchises, finally passed from the Mount Savage Company to the Cumberland and Pennsyl¬ vania Company, and was by the latter extended across the mountain from Mount Savage through the coal measures to the George's Creek Railroad, thus making a continuous line from Cumberland to Piedmont. By various Acts of the Leg¬ islature of Maryland this Company was permitted to increase its scale of charges, so that since 18G8 its rates have been for all distances over ten miles three cents per ton per mile, and for shorter distances five cents per ton per mile. These rates having been charged without any unjust discriminations, did not seriously affect the trade of the Canal until 1875, when the great shrinkage in values, and the low price at which. 8 other coals were placed in the market, made it necessary to reduce the price of Cumberland coal at tide water. The Cum¬ berland and Pennsylvania Company refused to join the Canal and other interests, and forced the whole reduction upon the others. Upon an examination of the question it appeared that the Consolidation Coal Company, which owned and con¬ trolled four-sevenths of all the coal in that region, also owned a controlling interest in this work, and .being a mining as well as a transporting Company, found it to their interest to maintain the high rate.s so as to crush out and destroy all compétition, and thus monopolize and control the entire trade of this region. Prior to this and after they had succeeded to all the prop¬ erty, rights and franchises of the Mount Savage Company, they refused to recognize any obligation on their part as the ■successors of said Company, to be hound by the contract with Lynn and othei s, and after long litigation, the Court of Ap¬ peals ol this State decided that they were not bound by that contract. The Canal Company was thus deprived of mil¬ lions of tons of freight which were supposed to belong right¬ fully to it. Notwithstauding this adverse decision, the Canal con¬ tinued to receive from this source the greater part of her ton¬ nage, for the rea.^on that the Canal was the cheapest outlet to tide water ; and so long as the Cumberland and Piedmont Railroad remained an independent road, free from any control or contract with the Balto. & Ohio Railroad, the Canal would continue to receive a fair share of the trade. But, as is "well known, rival lines have obtained a large interest in the stock of the Consolidation Coal Company, which is believed to he exerted to influence the shipments in the railroad interests, and which in a short space of time will, in all probability, have absolute control. When that point is reached, they will not only command the one line of trans¬ portation, hut four-sevenths of all the large vein of coal.— When this contingency occurs, the trade of the Canal from the Cumberland coal fields will he virtually at an end. The only other railroad leading from Cumberland to the 9 coal fields, is the road known as the Pittsburg and Connells- ville. This road is required by its charter to begin at some point on the basin of the Chesapeake and Ohio Canal, pass¬ ing thence througli the narrows of Wills' Creek by the most available route, to some point on the Pennsylvania State Line, from which point to Pittsburg it was constructed under a cbarter granted by the State of Pennsylvania. When the State of Maryland granted the charter to this Company, a provision was inserted requiring it to begin or connect with the coal wharves of this Company at Cumber¬ land, and limited its charge for both toll and transportation to a maximum rate of cents per ton per mile, and to more fully protect the trade of the Canal, it required the Railroad Company to charge a uniform rate per ton per mile, without regard to tl.e distance transported. This provi¬ sion was supposed to be ample to porevent such discrimination as the Baltimore and Ohio Railroad had made betv,reen Pied¬ mont and Cumberland. But before the road was finished,, the controlling interest had been vested in the Baltimore and Ohio Railroad. That Company recognizing the obligation of the charter, have fixed an uniform rate per ton per mile for coal, from all points on the line of the road to Cumher- land, yet offer as an inducement to shippers, such a low rate from the mines to Baltimore, that it amounts to an entire prohibition of trade by Canal. Thus, taking a mine located on the Pittsburg and Connellsville Railroad one hundred miles from Cumberland, the charges to all shippers at the rate of two cents per ton per mile, would be for the whole distince two dollars per ton. Whereas they would agree with the owners of the same mine to transport a ton of coal to the City of Baltimore, two hundred and seventy-nine miles, for three dollars and seventy-nine cents. The effect of this is to prohibit any considerable quantity of coal from, reaching the Canal by way of that line, although the Rail¬ road Company have not violated the letter of the law. Had the Pittsburg and Connellsville remained an indepen¬ dent road, this difficulty would not have occurrpd, and the Canal would have been fully protected. 10 It is possible that legislation (i)a_v yet be lud (rom the State of Maryland to prevent this discrimination, but your Committee fully recognize the many diiSculties to be encoun¬ tered and overcome, and the great loss of time and trade that must ensue in attempting to correct it by legislation or liti¬ gation. We do not therefore, hesitate to say, that the Canal Com¬ pany's interests absolutelj' demand that it shall have another line of transportation connecting with the coal fields, which shall for all time be controlled in tiie interests of the Canal. We think this conclusion cannot be questione.l, as since 1850 nine-tenths of all the tonnage and revenues of this Com¬ pany has been derived from the transportation of coal, and its principal revenue and tonnage must continue to be de¬ rived from the same source. If we arc deprived of it by com¬ peting lines, the independent road we suggest must be con¬ structed or there is an end to any profitable business by this Company. If the conclusions of the Committee are correct, ihe ques¬ tions then arise : 1st. Is it practicaba to construct a railroad from the Canal at Cumherland to the coal measures west of it ? 2nd. If practicable, at wlmt cost can such a road be con¬ structed and equipped? 3rd. When constructed, what trade can reasonably be ex¬ pected to reach the Canal by that route? The consideration of the first question as to to the practi¬ cability of the construction of this road, brings us directly to the preliminary report of Mr Roberts, heretofore referred to by your Committee. s Mr. Roberts is an eminent Civil Engineer, and has bad large experience in the construction of railroads of both standard and narrow gauge, in this country and in Brazil. From the report made by him, your Committee are satis¬ fied that it is not only practicable at a reasonable cost to con¬ struct either a standard or narrow gauge road, but that the grades are more favorable than those of any other line now 11 constructed. It also apiiears tliat the distance from the bastii of the Canal at Cumberland to We.sternport is by the proposed line 2Ö miles ; from Westernport to Tilden Station on the north branch of the Potomac, 4|- miles, making tb.e whole distance 30.iV,r miles. It also appears from this report that the grades are all de¬ scending with the trade, e.xcept a distance of about one and a-haif miles, where the grade against the trade will not ex¬ ceed 14 feet per mile. Tiie road would therefore be operated, and coal transported over it more cheaply than by any other road leading from the same ciral measures The charge? for transportation should not exceed I5 cents per ton per mile, as against 3 cents now cliargeJ. Your Committee are also .'satisfied that either a standard or narrow gauge road would receive and deliver to the Canal o O an annual tonnage of not less than 500,000 tons from mines, the product of which has heretofore been shipped almost ex¬ clusively by the Baltimore and Ohio Biilroad. In addition to which the mines along the George's Creek would take advantage of this cheaper and more desirable route, and it would furnish a favorable opporiunity of open¬ ing up the mines between VVesternport and Tihlen's Station, which are now practically without available raeaus of trans¬ portation. To secure this trade alone, it would be a profita¬ ble investment of the Canal Company, had it the power to construct the road at a cost three times as great as that esti¬ mated by Mr. Roberts. Indeed, if the Canal were owned and controlled by private enterprise, we have no doubt that it would long since have been constructed. In addition to the trade that the road would secure from the mines already in operation, it could he extended to other coal fields, yet undeveloped, which would furnish a tonnage for it and the Canal for all future time. But of this we shall speak more fully hereafter. As to the cost of constructing such a road, the estimate of Mr. Roberts for a standard gauge road from Tilden's Station to Cumberland, 30^- miles, is $717,634. For a narrow gauge road, $394,669.50. 12 The estimated cost of equipment for a road of standard gauge, capable of moving in one direction one million tons per annum, is four hundred and fifty-three thousand three hundred dollars, (|453,o00.) The estimated cost of rolling stock for a narrow gauge road to move the same tonnage (1,000,000 tons) in one direction, is ^317,275, making the whole cost of a road of standard gauge with equipment for 1,000,000 tons per annum $1,170,934 00 For narrow gauge road 711,944 50 Difference in cost $458,989 50 As to the question whether the road should he of standard or narrow gauge, it is not necessary for your Committee to express an opinion at this time, but they respectfully call attention to the very able report upon the subject by Mr. Thomas P. Eoberts, which is submitted herewith. As to the third question—what amount of tonnage could reasonably be expected to reach the Canal annually if this line were constructed, wo would say that the capacity of the railroad with single track would be greater than any tonnage that would offer for some years to eome ; and as it could be increased whenever necessity required, it only remains for us to show the number of tons that would probably be shipped from the mines, located immediately along its line. We will first consider the tonnage that could reasonably be expected from the mines now operated in the big vein. In making this estimate we will only include that portion of the Maryland Coal Basin in the George's Creek valley between Lonaconing and Westernport, whose natural outlet is by this route. The number of acres of the large vein still remaining within this area is about 3,500, yielding 12,000 tons per acre, making a total of 42,000,000 tons. The number of tons mined and shipped by six of the largest Companies during 1875 exceeded one million of tons, the greater portion, if not the whole of this tonnage would probably be transported over the proposed line, for the reason 13 that it could be placed oq vessels at tide-water cheaper than by any existing line. On the opposite or Virginia side of the Potomac river, where also lies a portion of the big vein ; none of which has ever reached the Canal. Not less than 100,000 tons per annum are now mined and shipped, a fair proportion of which would seek this outlet. At Piedmont and west of it, the road passes under the out¬ crop of all the lower coal measures which are now practically excluded from any outlet to market, and it will be safe to say that immediately upon the construction of this road, not less than 300,000 tons would annually be mined and shipped by it. , These small veins underlie the entire Maryland coal region, and Mr. Hodge estimates them in his report, to contain more coal than was originally in the big vein. We do not there¬ fore hesitate to say that the CLuantity of coal on the line of this road in Maryland and West Virginia, is sufficient to fur¬ nish an annual tonnage of two and a half millions for at least fifty years. Your Committee here desire to call attention to the fact that more than one-half of the tonnage we have estimated as being possible to be derived from this region, is now being mined and shipped under the most disadvantageous circum¬ stances. If we are correct in these statements—and we believe they cannot be questioned—then you have a trade already developed sufficient to produce a revenue to make a handsome return for the capital required to construct the road, and at the same time furnish a trade and revenue to the Canal, which would soon relieve it from its present financial embarrassments. The question naturally suggests itself, would this road secure so great a tonnage at paying prices, when it has on the one side the Baltimore and Ohio, and on the other the Cum¬ berland and Piedmont Eailroads, competing for the same trade. As we have already shown, the Canal does not and cannot receive any trade by the Baltimore and Ohio Railroad from this region. It will therefore be a question of the whole cost from Piedmont to tide-water between the two routes. 14 The distance from Piedmont to Baltimore is 206 miles. Placing the charge at a lower rate than ever charged by the Eailroad Company, one cent a ton a mil3, it would he $2.06 to Baltimore; whereas the cost hy the projected road and Canal from Piedmont to Cumberland, a distance of 26 miles, at one cent a ton a mile, would be 26 cents; transfer from cars to boats at Cumberland, 5 cents; tolls to the Canal Company from Cumberland to Georgetown, 40 c.; to boatmen for trans¬ portation, $1.00. Total cost to tide-water, $1.71 cents; mak¬ ing a difference in favor of this line of 35 cents a ton. It will be observed tbat in this calculation we have placed the charges of the Baltimore and Ohio Kailroad at a much lower rate per ton of 2240 pounds per mile, than has ever been imposed by them, while the charges estimated by the Canal are the same at present paid, but which with an in¬ creased tonnage, and by the use of steam, can be reduced at least 20 cents per ton, making the whole cost of transporting a ton (2240 lbs.) of coal from Piedmont to tide-water at Georgetown, a distance of 212 miles, 151 cents, a rate which would defy all competition. The Cumberland and Piedmont Road, starting at Cumber¬ land and terminating at Piedmont, a distance of 33 miles, is constructed with grades varying from twenty to one hundred feet per mile, for the greater portion of its length. These heavy grades necessarily increase the cost of transportation, and it is claimed that the actual cost without profit is one and a-half cents per ton per mile. Without questioning this statement, it is safe to say that with their fine road-bed and equipment, they could not haul coal up the long grades from Piedmont and Lonaconing, and thence to Cumberland, as cheaply as it could be carried over a line which descends the entire way from the mines to Cum¬ berland, with the single exception of one and a-half miles, where the grade does not exceed 14 feet per mile against the trade. Practically there could be no competition between these two lines, for all coal south of Lonaconing. If the Cumberland and Piedmont Railroad, or more properly the Consolidation Coal Company, remains an independent organ- 15 ization, then the Canal will continue to receive by that road large quantities of coal from the mines north of Lonaconing, and we are inclined to believe that the construction of the proposed road is the only thing that will prevent a rival line irom acquiring a controlling influence in that Company. It is proper to say that the construction of the proposed line of road as a feeder to the Canal, furnishes the natural outlet from Tilden's Station, on both banks of the Potomac and the valley of George's Creek, but if it were extended 15. miles further up the valley of the North Branch, it would, pass through a deposit of coal equal in quality to the best George's Creek, and in quantity practically inexhaustible, besides opening an outlet to the finest timber region in the- Middle States. A branch could also be constructed up the Savage River to the great Salisbury Coal Basin, which Pro- fessor J. P. Leslie states in his report contains not less than- one hundred and twenty millions of tons of coal of superior quality. As your Committee were only called upon to report upon the line from Tilden Station to Cumberland, we do not deem it proper to do more than call attention in this report to these coal fields, but the stockholders should never be content until the trade from these regions is secured. So imperative is the necessity for rival ouilets from the- the coal mines, and so fully is it recognized by the Coal Com- nies themselves, that two of the most important Companies have obtained a charter for the construction of a railroad from Cumberland up the valley of Jenniug's Run to their properties, which they propose to construct at their own risk to relieve themselves from the grasp of the Consolidation Company, now closing upon them. This road, the surveys for which are now in progress, is in no way a rival to the one we recommend. It would serve the mines near and north of the Frostburg Summit, and deliver their coals in Cumberland, free to take advantage of the competitave rates to tide water by railroad and Canal. It is therefore a real feeder to the Canal, and its construction should be promoted by all means in the power of this Com¬ pany. 16 Having discussed all the questions suggested by the in¬ quiry as to the practicability and the necessity for the pro¬ posed road, it only remains for us at this time to make some suggestion as to how the means can he obtained to construct the road. We will premise by saying that experience has demon¬ strated that the interest of the Canal Company can only be assured by its obtaining and forever holding the controlling interest in the projected railroad. Tlie question then arises, how can the Canal Company with its financial embarrass¬ ments acquire such an interest ? We believe that when the facts herein stated are properly ■considered by the representatives of the people of this State, and the preferred creditors of the Canal Company, they will adopt some plan which will enable the Canal Company to furnish such aid as will assure the consti uction of the pro¬ posed feeder. Your Committee do not, however, underrate the difficulties and embarrassments that will be met in securing united action on the part of the preferred creditors of the Company, but we do not believe that any creditor will hesitate to make temporary sacrifices, when, by doing so, and by it alone, ■will his investment be secured. The facts and conclusions we have presented to you may here be recapitulated. The Canal is now dependent for its supply of coal freight upon the Baltimore and Oliio and the Cumberiaml and Pied¬ mont Railroads. The Baltimore and Ohio has been able so to discriminate against coal going to the Canal by its own line, and in part by the Cumberland and Pennsylvania Railroad, as to deprive the Canal to a great extent of freights that under a fair competition would have been carried by it. The Cumberland and Pennsylvania llailroad in the hands of the Consolidation Company imposes rates upon the other Companies which retard the development of tlie Cumberland coal trade and diminish its power to compete with others. 17 Efforts are being made by lire Baltimore and Ohio Com¬ pany to obtain the control of the Cumberland and Pennsyl¬ vania Bailroad, that it may entirely direct the coal trade to its own lines, leaving the Canal without any remunerative business. Consequently, the construction of a line of transportation from the coal fields to Cumberland, exclusively within its own control, is absolutely of vital necessity to the Canal. A road can be built on a proper location with good grades and at moderate cost, which will secure to the Canal a rea¬ sonable proportion of the freight. Such a road could be cheaply extended to the valuable coal mines of Grant county, West Virginia, and to reach the Salisbury coal fields on the line of the Pittsburg and Con- nellsville Railroad. By a slight temporary sacrifice by the holders of the preferred bonds, and such reasonable aid as may be expected from the Legislature, the road can be built so as to secu.e these advantages to the Canal. Without sucb a connection the Canal will not have the revenue to meet the interest and principal of its bonds. With it, such an increase of business may reasonably be anticipated as will largely increase the present revenues, and enable it in the end to make some return to the State for the large- amount advanced for its construction. It remains for us to recommend that the Board pass a reso¬ lution, directing the President to request the Board of Public Works of this State, to call a general meeting of the stock¬ holders of the Company, and to request the trustees of the preferred construction bonds, and such bondholders as will do so, to attend said meeting, at wliich time this report shall be submitted for their consideration and action. All of which is respectfully submitted. (Signed,) P. HAMILL, M. BANNON, II. D. FARNANDIS, Committee-. 2 APPENDIX No. 1. :o: The PcAomac Coal Basin of Grant Ooiinly, West Virginia. Extract from a Report hy Wm. R. Hulton, ConsvMing Engineer. Baltimore, October 1876. The coal examiaed lies ia the vailles of Stoney River and Difficult Run, and appears to be of good quality, although its value is impaired by the partings or veins of slate running^ through it, from which however some of the veins are free. It is said that where the openings have been pushed far into the hill these veins of slate are shown to be confined to the surface, leaving the interior portion of it solid coal. There are a number of veins varying from three to eight feet ia thickness, which underlie the whole of this land, except where cut away in the vailles of the streams. I would think it safe to say there are 20,000 acres at least, containing ia different veins about 30 ft. in thickness, or about 500,000,000 tons of coals. There is also another track of 15,000 acres oa the lower parts of Abraham's Creek, upon which I am in¬ formed there are several openings, but time pressing, and being unable to procure a guide, I did not examine them. Coal is known to exist in that locality. ***** Large quantities of timber oí immense size were encoun¬ tered, chiefly hemlock and maple, with some cherry,ash,birch, beech, &c.; and I am credibly informed that further to the 20 southwest the forests are composed almost exclusively of the more valuable last named and hard woods. One cherry tree was measured 12 feet 6 inches in circumference at two feet above the ground, and 10 ft. at four feet from the ground, and (estimated) GO feet high to the lowest limh. :i: îJi * * I have read a private letter from Mr. Guerard, of the Royal College of Mines, London, in which he estimates th tliichness of coal underlying this land at 35 feet. He adds that the indications being taken from outcrops and shallow workings, it is impossible to give an exact idea of the solid coal—the slate giving little iudicition of the coal after it has been worked in some distance. Mr. Tilomas W. Evans, Mining Engineer, calls this the southern outcrop of the George's Creek measures, embraciug the whole of the lower measures which thicken and improve as they approach the southern outcrop. He reports that there are "40 feet of coal on this property, embracing a v a- riety of coals, and each one excelling, in its own peculiari¬ ties, any other in the basin." Messrs. Booth & Garrett, Analytical Chemists, after analy¬ sis of these coals, say, "they have a general resemblance to the coals of the Frostburg Basin, being a little less bituminous than those of the Broad Top in Pennsylvania. The natural outlet of this coal is through the valley of the North Branch, lateral roads doscending each transverse valley to the main stem, which would extend 20 miles or more above Piedmont, 15 miles above Tilden Station, with lateral roads of 4 to 10 miles each to reach the coal, although good workings may be found much nearer. This would give a total of new road to construct to Cumberland—main road 48 miles, branches say 15 miles—at an estimated average cost of $23,000 per mile for a narrow gauge road, (3', 6''\) $1,450,000. Or from Tilden Station, 15 m. main road and 15 m. of branches, $090,000. -X- The equipment of such a road to do a business of 1,000,000' tons in a season of 200 clays, will cDst at least $400,000. ******* 21 The estimates here given are only approximations, but they have been carefully considered, and are believed to be ample to construct and equip a first-class narrow gauge road through the country proposed. I suggest a narrow gauge road as being cheaper in first construction under circumstances where first cost is an important consideration—that is in opening an un¬ developed country—and its natural tendency would be to forward its freights by Canal in preference to a transfer to other cars. WM. E. HÜTTOIÍ, Com, Engr. C. &, 0. O. APPENDIX No. 2. :o: Report of J. B. G. Roherls, of Survei/ from Cumberland to Tilden, Blouih of Laurel Run. CuMBEr.LA>îD, Md., December 9tJi, 1876. Hon. p. Hajiill, Oakland, Md., Sir I kerewitli respectfully submit my report upon the preliminary surveys made by myself, at your request, upon the proposed railroad connecting the Chesapeake and Ohio Canal and the coal regions about George's Creek, Savage River and Laurel Run. As you were present with us a great pjart of the time dur¬ ing the progress of the survey, you can readily understand that with the time and means allotted for the work, it is im¬ possible for me at this early day to present finished maps, showing the exact topography of the country traversed, and a located line. Still I believe that our maps and profiles are sufficiently accurate to approximate a location and cost. A thorough topographical survey will be required before all the details of the e.xcavations, grades and exact distances can be given. We began the work near the head of the reservoir pool, in the Potomac River, three miles above Cumberland, October 30th, and closed the field work on the 5th inst., having, dur¬ ing that time, surveyed 47 miles in all, as described below. From our initial point we carriedaline on the river bottom, as shown on the map—1,200 feet, where we crossed the B. & 0. R. R., thence taking the hillsides, kept along the foot-hills 24 of Wills' Mountaiu as shown, encountering a summ it cutat the second mile, involving a grade of G6 feet per mile towards Cumberland ; thence with a grade ascending Warrior Run a short distance to Cresaptown, and thence over a summit and with a descending gvtide o? 52.80 feet per mile against the trade, to the waters of other streams descending from the outliers of Dan's Mountain. A two-fold object was held in view in holding on the loot-hills which should be stated, viz : First, that as far as the Maryland side of the Potomac River is concerned in this distance, the B. & 0. R. R, has monopo¬ lized the best holding ground, viz : that immediately along the bank of the river ; and second, that it was hoped that a considerable saving of distance could be effected in thus cutting off the bends of the river. We made no survey parallel with the river and the B. & R. R. on this side, so that I am not prepared to state whether the back- line would be materially if any cheaper than a river line to Rawdings' Station, B. & 0. R. R- It is possible that the interference with the B. & 0. Road at the bluff points may make a line parallel throughout with them, not only more difHcult to locate, but also more costly to construct than the jine surveyed by us. But as any line on the Maryland side encounters back of Fort Hill very heavy work and severe grades against the proposed coal trade, it is needless to enter into full details of our Maryland line as run until the point is reached where that side became a necessity. Our profiles will show what the difficulties are rendering the Mary¬ land side in my opinion impracticable for a standard gauge railroad. As far asR awlings' Station 12 miles above Cumberland, a fair line can be had, though it presents a succession of mod¬ erately heavy cuts and fills with considerable sharp curva¬ ture. It is a line peculiarly adopted for a narrow gauge road as the curvature and grade allowable for them would mate¬ rially lighten the work of construction. But at Fort Hill the real obstacle was met with ; I may say that it was against my judgment, as you are aware, to attempt the line back of this hill, but as it had been much spoken of by gentlemen 20 interested in your project, it seemed oniy proper that what¬ ever inducements their proposed route could offer should he demonstrated by a survey. Fort Hill is a peculiar mountain peak standing between Dan's Mountain and the Potomac Piivcr. Its lower end ter¬ minates abruptly near Eawlings' Station, thence it extends for fíve miles up the Potomac, the river at frequent points cutting into its base. The B. & 0. Pi. R. hugs it closely all the way next the river, and as they liave very heavy work against its sides which are nearly verticle in places, they have left absolutely no foothold for another road parallel with them. This being the case, a Maryland route if desired, could be had only between the hill and Dan's Mountain which is the route of the wagon road from Cumberland to Piedmont. A very flat summit extends out from Dan's Mountain to near the middle of Fort Hill, and from this summit we ran a line down Mill Creek to Rawlings' Station, which demonstrated that the summit was over 400 feet higher than the river at the station. It is possible, however, with a cut at the summit I,GOO feet long, 30 deep, to find a grade of 100 ft. per mile to Rawlings Such a grade, as the cars would be returned empty over it, would be permissable in view of the 52.80 grade before mentioned against the trade at Cresaptown. This side also would not he costly in construction as the sides of the creek have gene¬ rally easy slopes. But on the Parker's Run side it was dis¬ covered that the stre,im fell, in a distance of miles, 350 feet. Assuming that the summit cut would reduce this fall 30 feet, and that an 80 fcot grade be imposed against the trade—it would be necessary at least to find three miles of distance in the spurs of Dan's Mountain, which would stiil leave us with a 60 to 80 feet (according to locality) bridge or trestle, cross¬ ing the larger forks of Parker's Run near their mouths. It is possible such a grade line can be found, but it would necessarily involve at least seven very heavy fills across deep ravines. These features taken in connection with the sharp curvature coming on the grades as assumed above, give suffi¬ cient warrant to condemn the route entirely. I have pur- 26 posely entered into a little detail on this point, as I believe it important that your friends should understand the diffi¬ culties which will necessarily beset any line to the coal fields entirely on the Maryland side. I think I am safe in saying that no engineer of reputation would ever advise the construc¬ tion of any line, either standard or narrow gauge between Fort Hill and Dan's Mountain, so long as it is possible to ob¬ tain the privilege of taking the Virginia side of the Potomac from above this point ; a river grade line for coal traffic par¬ ticularly, has too many advantages to be dsvelt upon here in detail. With these remarks I will now pass to a general descrip¬ tion of the line upon which my estimates are based, and begin at Tilden, mouth of Laurel Run, 32 miles above Cum¬ berland. Although our stakes or stations are numbered on the maps and profiles from the hill opposite Keyser, as an initial point, and thence running in both directions towards Tilden and Comberland, it may be better in this report to call the miles consecutively through from the upper end downwards. Descbiption of Lise. Tilden Slaiîon, Month of Laurel Eim. At this point there is on the bottom land ample room for the accommodation of all the side-tracks and buildings the Company may desire to construct. About 1500 feet below the mouth of the run the bottom contracts, and thence the line is carried for nearly a mile along steep hillsides ; and for about lOOO to 1200 feet of the way, Rocky Bluffs are en¬ countered—the river all along skirting the base of the embankment. Thence to the 2nd mile the line runs par¬ tially on the flat bottom land, and on an island. It would he advisable to close the small shutes of this island at their upper ends, which would necessitate but little work, as the water passing through them, even in flood stages, is but trifling in volume. On this section favorable connections, by means of inclined planes, could be made to the 6 foot coal seam on either side of the river, as the stream is narrow, and could for such purpose be chea[)ly bridged. A connection 27 with the Virginia Coal Company's Road' could also he made- about the middle of the section, by means of a bridge across the river, and an inclined plane. Section 3.—The work is generally light on this section. I would recommend for an improvement in alignment, that in¬ stead of running under the B. & 0. R. R. bridge over the Potomac, as we did, that the bank approaching the bridge be pierced by a siiort tunnel. The bank is over 30 feet high, with this tunnel several hundred feet of distance would be saved and a sharp curve avoided. At the lower end of this section, in the forks between the Potomac and Savage Rivers,, where there is a small flat, a depot might be erected for the accommodation of the village of Bloomington. Section 4.—Begins at the mouth of Savage River, where there is a hard curve to the right. On the lower side of the Savage there is a rock point, upon which a bridge abutment could rest, but little additional height being required. The stream can be crossed with one span of 80 feet it. should be raised at least 20 feet above low water mark. The low water elevation at this point, as given by the U.. S. Engineer's report, with which our own levels agree, is 953.29 feet above mean ocean level. The elevation of water surface at Tilden approximates 1005.00 feet above tide, which makes for the three miles to Savage River an average descente! 17.3 feet per mile. Three- Iburths of a mile below Savage River there is sharp curva¬ ture to the left, passing opposite Senator Davis' mill-dam in the Potomac. The section throughout is heavy sidehilb work, mostly in sand rock, a very hard and tough material. Section 5.—The first half mile of this section is light work across undulating bottom land, and thenee 1500 feet the line is run on the grade cut in the hillside by Senator Davis.— This distance, which was quite heavy work, with a little dressing, can be occnj)ied to great advantage by your line.— In short it must be occupied, as there is no other way to- pass up the river unless a tunnel be undertaken, or a line built in the river where it is already narrow enough. The 28 great flood of last spring demonstrated the ina lvisahility of furtlier narrowing the river in gorges. Immediately op{)osite tliis point are located the extensive shops of the B. &■ 0. R. R. Co., and the gorging of logs, etc., during the late flood, ne.arlv inundated them and the upper end of Piedmont. Several of the Company's build¬ ings were seriously eudaugered at this piiint by the under¬ mining of their foumlations. Below the Davis' grade there remains a'lont 1.5')d ieet of very high and abrupt hillside woilc, ending at a vertical rock point—immediately above the bridge crossing the Poto¬ mac, belonging to the Cumberland and Pennsylvania Rail¬ road Company. VVesternport is readied at the fifth mile post, which comes in four hundred feet below the mouth of George's Creek, We ran our line crossing George's Creek at its mouth, and along through Wesfernport in the street next the river bank. As there will be considerable damages here to property owners, and constant annoyance to the com¬ munity by adopting tire river bank line, it would probably be best to pass the litre to the islaud, whichstandsin the river between Westernpoi t and Piedmont. The island is favorably situated, having ample area for depot and shop purposes. At the foot of it, the lino should then pa s to the Maryland side again. Agaie, as ourline crosses the Cumberland and Penn¬ sylvania ro ;d at right angles, any curve or Y, connecting their track with ours, if made altogether on the main shore, would greatly increase the amount of damages, as many buildings would come in the way. A bridge to the island would accommodate both roads. The river here, to the head of the island, is much wider than is necessary to pass the water taking the Mai-yland chute of the island, and it would be quite safe to contract its section so that a bridge not over 100 feet long would be re¬ quired. This bridge would necessarily have to be built on a skew. Below Westcrnport the line to Pine Hill, opposite Keyser, at our 10th mile, runs alternately across bottoms and along hillsides more or less steep, with only one bad rock bluff, a 29 few hiindied feet ia length. In regard to this distance much depends upon whether a tunnel or summit cat be adopted in passing Pine Hill. This hill is ca long tongue or projection from Dan's Moun¬ tain, and cannot he avoided entirely without much work, and an increase in the length of the line of at least 3| miles. We ran two lines here, the summit route involving a cut 30 feet deep 900 feet long, and towards Piedmont, descending with a grade of forty icet per mile ; this grade would reach the river hank about two and a-half miles above, but would have several extensive fills or tressels, one over Big Dry Bun, being 70 feet deep. Towards Cumberland it is possible to descend for two and one-half miles with an 80 foot grade to- where the line crosses the B. & 0. R. R. track. I am quite positively of the opinion that allowing for the extra distance of this summit line, and the work required upon it, tliat it would be more expensive than the tunnel line I have pro¬ posed, besides, also, if the improvements in the grades be accounled, the tunnel line becomes still further preferable. The tunnel as proposed, cuts off 100 feet of the height of the- hill, and is 1000 feet long. Though we ran our line from this- tnnnel towards Piedmont nearly on a level, it would be advisa¬ ble to drop the grade the first mile about 15 feet; this change would make a considerable improvement on the profiles ac¬ companying this report. Towards Cumberland we found that it will be most expedient to establish a grade of GO feet per mile. [A location should shorten our line considerably, particu¬ larly after emerging from the northern a[)proach of the tun¬ nel where the sharp curve on the map will he entirely avoidea at some extra cost by an embankment.] Just beyond the 12th mile post, a choice is offered in cross¬ ing the B. & 0. R. R. at the foot of the tunnel grade. Our first line ran around the rocky point here, and thence to the river bank with sharp curvature and long embankments Ifi feet high, approaching and leaving the B. & 0. R. R., which to keep out of the waters, is built on a hank of that height. The shape of the place is such, that these long fills become a 30 necessity. But by passing through a notch in the hill, back ■of the point, our second line avoids the fills entirely, straigh¬ tens the line, and offers better chances in a final location to decrease the grade from the tunnel, which is a disideratura 'that should not be ignored. Besides, also, with this line we 'make a much better crossing with the B. & 0. E. E. There is, however, at Station 119—see profile—a heavy thorough cut on the line as shown, which cannot be materially im¬ proved. The point at Station 122 is sidehill work, and much of it can be avoided in a careful location. After crossing (at grade) the B. & 0. E. E., the line runs a short distance in the meadow to the proposed bride over 'the Potomac as shown on tho map, near tlie Old Log Church, at Mr. Dawson's house. The bridge here will be about 240 feet long, and should be 25 feet above low water surface. It can be arranged either witli a single span or in two spans, whichever may be deemed advisable. After reaching the Virginia side the line for 3| miles runs alternately across bottoms and along tlie shore were it is closely confined by the river to the mountain side of this dis¬ tance, rather more than a mile is light work, the remaining two miles and a-half being on the side hill. At many places along the river where the line runs in this waj* against the base of the mountain, (knobly,) the work required to make a road-bed sufficiently high above tlie water, and sufficient to •stand its abrasion, will not be as heavj' as might be surmised 'by many. Midway in the 16th section however, the river is abruptly arrested and defiecled to the left by a vertical rock wall, about 100 feet high, wliich bluff follows it around several thousand feet. No alternative is presented here but to continue the line straight through the rock. Very for¬ tunately the bluff dips so rapidly back from the river, that the line passes through it in a distance of about 1100 feet ; of this length only 300 feet can be considered heavy thorough cutting. Most of tlie material from the cut will be required in the river above. It may appear in a location and more careful estimate, 31 that a tunnel not quite 200 feet long will be cheapest and best at this point. I am satisfied that the work around by the river would be much more costly than either a cut or tunnel at this point, and besides add more than a half mile to the length of the line. From this cut to the end of the regular survey, 9.25 miles, and 26.25 miles from Tilden—5.60 miles traverse the bottom land, and 3.65 miles pass along the base of the mountain, requiring more or less side hill cutting, mostly in rock, as the estimate shows. At the point where we terminated the survey to the initial point of the survey at Humbird's, head of the resorvoir pool, a distance of IJ miles, a choice of routes is offered. If the line should be carried all the way to Cumberland on the Vir¬ ginia side, it would involve about a mile of side hill work, some of it very heavy, just below our last stake, 875 x 68, where we terminated work. My impression is that the in¬ terests of the Canal would not suffer by making the bottom at or near Humbird's the head of navigation, in which case nearly three miles of rather costly railroad construotion would be saved. A little dredging in the river would pass boats into the pool above the wmter-tank of the B. & 0. E. R., which point is now the actual head of navigable water ; this with the raising of the dam at Cumberland a few inches, good wharf facilities could be assured, with plenty of room for shops and buildings. To reach the Maryland side a second crossing of the Potomac would be required ; I have estimated for this crossing and termination of the railroad as it appears to me the most desirable arrangement. Very respectfully, J. B, G. ROBERTS, Chief Engr. Cumberland, Dec. dlh, 1876. APPENDIX No. a ■ :o: Report of Thomas P. Roberts, on Standard and Narroiv Gauge Roads up the North Branch of the Potomac River. pitrsbußgh, Pbnna., December l^th, 1876. Hon. P. Hamill, Oakland, Md., Sir;—In accordance with your reque.st, I herewith present an estimate for a narrow gauge railro.ad, applicable to the general route recently surveyed by my brother and myself for the road proposed to connect the Chesapeake and Ohio Canal and the Cumberland coal field. At the close of the ■survey my brother was prevented, by want of time, from making a comparative statement of the costof :he two plans, and confined his calculations to a standard gauge road only. The want of data, which careful topographical notes of our line can only supply, will of course i.nterfere to prevent ex¬ actness in my calculations. Experience proves that before the full economical advantages of the narrow gauge can be shown, that it is even more important with them than with the standard gauge, that a careful contour map should be drawn, upon which a location can be established. The reason of this becomes obvious, when with economy as a prime motive, there is left such a wide discretion to the engi¬ neer in adapting his line, so that its sinuosities shall corres¬ pond nearest with those of the natural surface. The range of curvature and grade perraissable on the narrow gauge, is such, that in some localities a saving of much more than one- half can be effected with them, in cost of construction, over 33 the standard gauge. In fact there are places where narrow guage roads have heen constructed and are now in successful operation, where it would have been impracticable, if not impossible, to build any otiier. Of course it may occur that the saving is not always a half, nor even a third, less with the narrow gauge, hut it is safe to say that it is always less; unless, indeed, by bad engineei ing, or under peculiar circum¬ stances, the narrow gauge becomes doubl? or treble as long as the standard gauge route. In short, the question of com¬ parative first cost can only be determined for any given dis¬ tance by calculations applied to the same ground. Nor is first cost the sole element to be considered. There is no doubt that the Directors of the Chesapeake and Ohio Canal are all aware that narrow gauge railroads are more cheaply constructed than standard gauge lines, but still may not believe that their capacity is sufficient to warrant the construction of one to do the large coal business required to supply their Canal. Tiiis is of course the ruain and only question with you, and believing as I do, in tlie capacity of the narrow gauge to do the proposed business, I will with your permission take up this general question. The length, grades, cost of construction, and certain future business of your proposed road, present to ray mind the very conditions which the most strenous advocate of narrow gauges could reasonably ask for the purpose of illustration and com¬ parison; but even if I were able, it will be impossible for me to dwell upon all the points which could be named in favor of a narrow gauge for the proposed route of your road. It is not yet six years since the first narrow gauge railroad in the United States, viz : The Denver and Rio Grande Rail¬ road, was commenced, but while their history is short we are not left to imagine that their succese remains a problem. Up to Feb. 1st of this year the report of 88 companies show that 2,687 miles of narrow gauge were in successful opera¬ tion within the limits of the United States and Canada. As many of these companies are engaged extending their lines, it would bo quite safe to say that at this date there are over 3,000 miles of narrow gauge railroads in operation. The 3 34 total projected mileage of these 88 roads is 7,973 miles, aad in addition to these there were at the beginning of the pre¬ sent year 48 routes heing surveyed, or undergoing gradua¬ tion, having a total projected length of 5,750 miles. There can he no doubt that many miles of these have also been finished and equipped. It is within my own knowledge that a number of surveyed and proposed routes for narrow gauge roads begun this year, are not in the tabulated statement whence I derived these figures. Over 50 com¬ panies have published the details of their first cost and statistics of business and operating expenses during the last fiscal year. It must be admitted that allowing tor all the gloss and coloring with which the friends of narrow gauges invest their statements, that a study of them discloses the fact that the main principle is correct, and that in every case without exception so far, the narrow gauge has proved more economical in operation than the standard gauge would have done in their places. Some of these roads do a very heavy business, and they are built in all kinds of country, varying from the prairies of Kansas and Illinois, to the mountains of Nevada and Pennsylvania; in other words from being nearly level and designed for light produce and passenger business, to grades of over 300 feet per mile to the mines of coal and ores in our mountains. It would burden this paper to enter into a description of many of these railroads, but I would recommend to your friends, that before deciding upon a gauge, that they investi¬ gate all these matters for themselves. So far as ray own experience and knowledge of narrow gauges extends, I can say that none of those yet built are called upon to do the business which the one connecting the Chesapeake and Ohio Canal with the mines would be. How¬ ever it is claimed that none of them have yet reached the limit of their capacity, and it has been affirmed by responsi¬ ble authority that there is in the State of Ohio no standard