The Canal and Rail-road controversy settled.

The Canal and Rail-road controversy settled.– We have before us a copy of the law which has just passed both houses of the Maryland Legislature, for effecting a compromise between the Chesapeake and Ohio Canal, and the Baltimore and Ohio rail-road companies.

It authorizes the Baltimore and Ohio rail-road company to subscribe for twenty-five hundred shares of the stock of the Chesapeake and Ohio canal company, and to pay, whenever the Baltimore and Ohio rail-road shall be completed to Harper’s Ferry, such proportions of said stock as shall be proportionally equal to the amount, which shall at that time have been paid on the stock held by the state in the said canal company, the balance of the stock so subscribed by the said rail-road company to be paid as the capital stock generally of the said canal company shall be called in and paid.

It authorizes the canal company to sell the surplus water, but provides against any portion of it being used for the manufacture of any species of grain.

It provides that the rail-road company shall be permitted by the canal company, as soon as the canal shall be completed, that is, by the 10th day of May next– between the Point of Rocks and Harper’s Ferry– to extend their rail-road with a breadth of twenty feet through the difficult passes of the Potomac from the Point of Rocks to Harper’s Ferry, and that the canal company, in the interim, shall so conduct their work at each of these passes as not to augment the difficulty of constructing the rail-road with the breadth aforesaid along the upper side of the canal through those passes.

The difficult passes here meant, are the four passes called the Lower Point of Rocks, the Upper Point of Rocks, Miller’s Narrow’s, and Harpers-Ferry Narrows, as far up the same as the present bridge over the Potomac.

It provides that the canal company shall graduate the rail-road along these passes, and that the rail-road company shall pay to the canal company $100,000 therefor.

These are the most important provisions of this bill, which will in all probability receive the assent of both the companies– and thus this vexed question will be happily settled. — Winchester Rep.