New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-06-12

n disputatious mood and committed many tacucai
blunders: and when he went to Bogota ne was
dravcn INN several unnecessary CONTROVERSIES anu
b,x ,nixsion seemed 70 be destined TO failure Inc
intervention of the Bishop of Panama and TIVE
c,sr;cal party rescued him from defeat most
inauential deputation, headed by the Bishop, Wis
tied President Nunez and pleaded for the extern
s1on of the construction privileges. Inc coas.
district which had supplied cattle for the canal
laborers also lifted up its voice In support OF The
French company's appeal Dr. Nunez' "noSe
political instincts very keen, ascertalneu 'n"U
public opinion In Panama and the four adJaceh.
States was setting strongly In favor Of renewal
of the companys privileges That astute poh'i.
clan had begun bis remarkable career as raoicai
hostile to the pretensions of Clericalism, but he
had swung around the circle and rallied the &C.
clesiastcal authorities to his support. The Bishop
OF Panama convinced him that 1t would be haz-
ardous for him to reject the appeal Of the lsthmus
He decided to reverse his policy and TO revise the
contract with the French company. The deputies
of the National Congress, who had previously been
instructed 10 vote against the extension OF con-
struction privileges were Informed OF the fresl-
dents change Of base, and after little alplomauc
by-play the new canal agreement was negotiated
Liputeoant Wyse returned In triumph 70 Panama
and was the hero OF the town.
The agreement. while IL conceded an extension
Of time for the completion Of the canal, was
very shrewd bargain on the part Of Colombia,
The main point which DR.. Nunez was determined
to secure was the avoidance Of legal controversy
whenever the time should come for the establish
ment Of the Governments ownership OF the work
An extension Of ten years is granted subject to tho
condition that new company shall he organized
not later than February 90, 1893, with sufficient
n ~,
manner" II work be not begun within the term
agreed upon. the contract will be void and the
Republic will enter into full possession and owner
ship Of the work, plant and property without the
necessity of judicial proceedings and without the
payment Of any indemnity for the canal. The
contract will be invaldated ON the same terms
before February %, 1903, If the liquidator shall
cease to protect the works, materials and build
ings, or If the corps Of employees be withdrawn OF
the money required for monthly disbursements oe
withheld 1t is stipulated that the buildings
materials, works and improvements VIII not DC
transferable and must be delivered In good conui-
tim 70 the Government If work on the canal be
NOT resumed with adequate capital within two
yeors nv these specifications the ground Is
cleared for the transfer of the property TO Colon
bia without litigation and without indemnity, IL
the French company be unable To raise addluonal
capital and TO resume work on the canal oeIore
February %. 1898. All complications with the
French Government will be avoided and President
Nunez will be enabled to open negotiations with
an American or an English syndicate for the com
pletion of the canal on the basis Of the payment
of the Colombian national debt. The Government
mortgage on the property will he virtually based
upon a quit-claim deed signed by Lieutenant
WISE as the agent of the hquidator of the bank
rupt company. Instead Of taking possession OF
the work on March 3, 1892, with litigation In the
courts and revolution in the air, the President VIII
wait another year and acquire absolute ownership
of the canal property without legal controversy
and without political resistance
The Panama Canal will be IN the market ut
tho end of two years, open for competitive Dlds
from London, New-Yorlz and Berlin, IL the French
company cannot raise S100,000,oo0 for The prose
cution of the work. That is brief ana compre-
bensive statement Of the situation. II the French
company can DO reorganized, tho Colombian Gov
eminent by the new agreement obtains satisfactory
guarantees for the maintenance OF an adequate
garrison along the line Of the canal and for ample
pcuniary compensations for Its services In Cd
tanning the appropriation of land, buildings ana
ploutations required for the work. The Govern
rnent has made O. hard bargain with the bank
rupt company, and Its interests are protected
whether the final desperate effort to revive the
project under the existing management be sue
cessful or otherwise The question Of complet-
ing the canal now rests with French investors.
With $3.50 900, 900 In hard cash, representing
face value Of nearly $500, 100000 in bonds, sunk
in this famous ditch, will they have TIE heart
TO pledge themselves to raise 81 100000 more
Thot is question which cannot be answered IN
Southern latitude. I am Informed that the most
ardent friends Of the canal at Panama are either
unwilling or unprepared to discuss 1t. Those VINO
were most emphatic year ago In declaring their
faith in the ability OF French investors to fur
nsh the capital for the enterprise now either
avoid the subject or content themselves with
praising Dr. Nunez for his shrewd management of
the negotiations with Lieutenant Wyse.
Since have written SO much in favor of the
Nicaragua project In previous letters, it may not
be amiss to quote some structures upon the enter
prise uade by an intelligent critic whom have
met in the course Of my journey. He has been
over the Nicaragua route and has carefully studied
II. and also has personal knowledge Of all that
has been done on the Isthmus. lie believes that
the French company will resume operations next
December and will complete the canal. At the
same time he frankly expresses the hope that
the United States Government before assuming
financial obligations for the construction OF the
Nicaragua Canal Will send engineers to the Isthmus
to report upon the probability Of carrying out
the French project. He has been ovur every inch
of the ground at Nicaragua and considers IT i'm
possible to complete the canal there for less than
S150 ,o00, 900, whereas, In his judgment, the e1-
penditure of SfO0,ooo,Ooo will be sufficient at
the Isthurus. lie has taken pains to examine In
detail the estimates Of the Nicaragua work, and
rs convinced that the figure is required as
common multiple for every section of it. En-
cheering work, he contends, invariably costs three
times as much In the tropics as In temperate
chimes. The Nicaragua estimates are based, he
says, upon northern units of labor. The Ochoa
dam, the rock cut at the divide, the series Of
formidable dams In the San Francisco and Deseado
basins, the mud-dredging at San Carlos, and the
construction of the Toa basin will cost practically
II he is be believed three times as much as the
engineers have calculated. The expense of the
work In the western or Pacific section, he main
fainS has been grossly underpstimated. There is