Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1882-12-21
The Nicaragua Canal.
BELM0NT's REPORT.
Wash. Tel. to Chicago Tribune,

| was referred 10 the mouse committee
/ Through Hon. John a. Kasson, chair
man) reported back substitute pro
viding for the Incorporation @ofthe COM
pany. To-day, Perry Belmont, the
/ plucky young democratic congressman
from New York, who lhad the tile with
Blaine last spring on the Peru. Chill
affair, submitted minority report.
Until the presentation of this minority
I, report from the committee on foreign
affairs, neither the public nor the house
itself could have been duly informed of
the nature and gravity of the proposed
scheme. So elaborate is this report
that it may be said to comprise not
alone the strongest and quite new OBJ
| lection to the proposed sanction and
guarantees of our government, but
| likewise q most valuable summary of
the diplomatic history of similar pro-
jects since 1916; and in thus fully in
forming congress and the people of the
country of the nature and probable
consequences of the plan now before
congress for such a canal, Mr.. belmont
has performed by far the most import
ant service he mas rendered thus far in
congress, not excepting his exposure of
the misuse of our State Department in
connection with the Chili-Peruvian war.
The report OF the majority OF the COM
mittee, prepared by Mr.. Kasson, of
Iowa, recommending the passage of
house bill 6799. fails to give the infor-
nation, as it apparently fails to APP
preciate the force of the facts concern
ing the bill, and its consequences,
should it become a law, Messrs. Blount
and Duester concur in minority re-
| port, taking issue with the bill mainly
on the grounds of the minority. Mr..
Belmonts report exhibits great and
careful preparation AID places before
the country stal ting array of facts
that will doubtless cause congress to
consider the entire project in a new
light The bill proposes to incorporate
a company by an act of congress under
n concession to certain individuals
kRown as the provisional company
from the Nicarguan Government for
the purpose of constructing ship can
al across the territory of Nicaragua
from ocean to ocean, the stock of the
company to be not less than $50 OO0,OO0
and not more than $l00,000,000. The
cost of the canal is not to exceed over
$50, 100000; and upon this amount the
United States by this bill will bind itself
to guarantee to stockholders per cent
per annum for twenty years. The I'm
tied States is likewise to guarantee the
neutrality of the canal. The provision
al company is to receive at once for
their services $4,000, 900 of the stock
and the Nicaraguan government S29,
100000 Of the stock, There are to be
eleven directors, of whom the United
States government and Nicaragua each
have one. The canal is TO revert TO
Nicaragua in ninety-nine year., but
may remain a second term of ninety
| nine years in the hands of the company
on the payment of % per cent. of its
profit over a ten per cent. divided on. its
stock. AT the end OF The second term
of nine:y-nine years the canal absolute
ly belongs to Nicaragua, and is liable
to revert to that state or be claimed by
it any time on failure to comply with
the conditions Of the Nicaragua grant.
For these things the United States gets
one of the eleven directors, and IN an
economic aspect the venture is clearly
of no advantage to us by way of return
for our guarantees. But it may be seen
by the report that Mr.. Belmont evil
IDENTIFY thinks the objections on this
ground, although sound, might perhaps
be waived, were it not for the more
complicated aud dangerous errors of
policy to which this scheme commits
us.
Holding aloof from all claim or desire
to interfere with the treaty making
power and not desiring to have the
house embarrassed by the executive, MIR
Belmont calls attention to the treaties
and diplomatic correspondence relating
to communication between the great
oceans over the Central American and
IsthmGs states. By the Panama treaty
of 1876 the United States Is given ex-
elusive control over any canal across
the Isthmus and guarantees by itself to
positively and ethcaclously guarantee
to New Granada (now the United States
of Columbia) the sovereignty Of the re-
public and the neutrality of the pro-
posed canal. This treaty is still in effect
Notwithstanding De Lesseps. BY the
Clayton.Bulwer treaty of 1880 the re-
port shows that in view of the conces-
sion made by Nicaragua Aug. 81. 1849,
to Cornelius Vanderbilt, White and
their associates, for the American At
lantic &, Pacific Canal Company, and Of
the lack of American capital to build
the canal at that time, joint protec-
torate was provided to include England
with the Unithe States in guarding the
financial and political interests of the
canal. The project having utterly fail
ed. The meaning of the Clayton-Bul-
yer treaty has ever since been the sub
ject of controversy and diplomatic note
the United States urging the inopera-
tive character ofthe treaty except as to
its last article, and for thirty years viz
tually seeking to get rid OF the treaty 90
( far as it waived the potential and pri-
mary influences and rights Of this gov
eminent over matters connected with
American affairs. But the present bill
! in congress is shown by Mr.. Belmonts
report to be Of q character calculated to
! imbed ia our laws, beyond the power OF
/ treaty-making to undo, the very prin-