Name/Title
Letter regarding conflict between Cahoons and the Chesapeake and Ohio Canal Company.Entry/Object ID
2000.FIC.02.085Scope and Content
Letter from William Schley, concerning the Cahoons and their battle with the canal company. Dispute appears to be about increase in cost not covered in original contract.
Baltimore, May 3rd, 1838
Mr. Lyles & Cahoon have consulted with me, in relation to their claims upon the Chesapeake & Ohio Canal Company, on account of their section No 205 & No 206
I have been twice to Washington City on their business, and, on both occasions, have seen and convened with the President & Director. They have had several meetings, specially on this business; and, on the last occasion, they were in session the better part of two days.
Although the President & Director have refused all the proposition, heretofore made, I am satisfied that they are disposed to go as far as, in their opinion, they can go consistently with their views of duty to the Stockholders. Although I may differ with them, I respect their motives.
At the same time, I am disposed to think that they will advance a further sum, if it
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will be received as satisfactory. Messrs. Lyle & Cahoon seem to ask only for the payment of what they owe; and are willing to lose all that they had in the work, & all their time & services. At the old prices the whole amount and up to the 1st of April, (including the amount retained which is only $5000) was, and still is, $9,100.00
Sometime since, the company agreed to add an advance of prices until the 1st of December last; provided it would be received in satisfaction of all demands, & provides also, that Mr. Lyles & Cahoon & the other parties would go on & complete the work at the advanced prices. If this had been done, it would add about 4,000
Amt. due on work done, up to the 1st of April at the proposed advance prices _ 13,100
Since the 1st of April, some work has been done, which at the advanced prices, may amount to 2,000
$15,000.00
But the debts due on these sections, including the change since the 1st of April, amount to sum of $45,500.00; which would enable us to pay about 30%, including all advances &
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the retained money; but no more.
I am dispared to think that the Company can be induced to add to the amount some $7,000; provided it will be satisfactory to all parties, & provided they are released from all starts?: but they will add no more. This they will add for distribution amongst the workmen, tomt?, the Superintendents, the boarding masters, & the laborers. This would add for each of them about 35 per cent; & Mr. Lyles could add enough for goods & to make about 10 per cent more, so as to make to the workmen in all about 75 per cent; or three quarters for a dollar.
Now unless something can be made for the completion of the job, the other creditor would only get about 30 per cent .... It is very clear that the proposed arrangement is the very best that can, under all circumstances, be made for the laborers. They would get, at least, 70 cents on the dollar; & perhaps 75 cents... But the question for the Md creditor is whether it is the best for the other creditors, or whether they could do better, by a suit. Of course,
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if a suit be brought, the $7,000 will not be paid by the company which is offered by way of compromise, only. I am not prepared to say whether, by a suit, we could recover as much as we could get by a compromise, or more or less. It is my Duty, however, to say, that I cannot recommend a suit as likely to profit the creditor or the contractor. Of this, however, I cannot speak with any confidence, because I do not know enough of the facts... If, however, we compromise, then the work could become? & completed at the advanced prices and if anything was made, it would increase the fund for the other creditors, by some small amount.
W. SchleyCollection
Early Family Papers: CahoonRelationships
Related Person or Organization
Person or Organization
Schley, WilliamRelated Entries
Notes
2000.FIC.02.084, 2000.FIC.02.086, 2000.FIC.02.087, 2000.FIC.02.088, 2000.FIC.02.089, 2000.FIC.02.090, 2000.FIC.02.091
