The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-02-23
SHERMAN GIVES WARNING
The Ohio Senator Says Uncle Sam
Must Control the Mica
ragua Canal.
He Pronounces the Scheme Practi-
cable and Less Difficult
Than the Suez.
Under Other Control the Canal Might be
Moro Formidable Than Gibraltar
The Finances.

NEW YORK, Feb. 18.-The important qucs-
ton as to what action the United States
government should take in regard IT, the
proposed construction Of the Nicaragua
canal will be tho subject Of a careful article
by Senator John Sherman in the March
number Of the Forum.
Senator Sherman begins by reviewing
the history of the canal project from the
treaty of December /, 1884, by which the
republic Of Nicaragua agreed that the work
should be undertaken by the United States.
In his message to the senate, December 10.
1884, President Arthur strongly recon-
mended the ratification of the treaty, but
no formal action followed. President
Cleveland withdrew the treaty from the
consideration Of the senate soon after his
Inauguration, and in his first annual mes
sage gave his reasons for so doing which
were briefly, that he did not favor "a poll
cy Of acquisition Of new and distant terri
tory or the incorporation Of remote inter-
ests with our own"
The incorporation in February, 1889, OF
the Maritime Canal company Of Nicaragua,
an association OF citizens of the United
States, is then considered. The republic OF
Nicaragua had granted to this association
the right to construct the canal; to sell iti
stock and bonds for the funds required,
and to seek he aid Of foreign powers,
especially the United States.
Estimates made by engineers employed
by this company have been revised by a
board OF consulting engineers; and. before
any aid il rendered By the United States,
are to be still further revised by officers OF
the army and navy of the United States.
The cost of the work is placed at 1913, 176,-
genciss the sum of $14. $3.50, 2G2, and an al
iowance for interest on invested money dur
ing the progress of the work. making the
limit Of aggregate cost about 800, 0OO,0O0.
Senator Sherman considers the engineer
ting difficulties, Of which the greatest will be
teYmini; and il is his opinion that they are
not 80 great as those which wore overcome
in the making of the SueZ canal. The total
distance from ocean to ocean is 1894 miles,
of which only 1913 miles will be by exca-
waited canal. Work is in progress and the
results are satisfactory.
The importance of the work to the United
States is strongly presented. Senator Sber-
man declares that 'the canal will, for the
first time, make possible NJ enforcement of
the Monroe Doctrine, hitherto a mere dog
ma in American policy" He then proceeds
VIZ AhUi1h VI WIG 4hNDb1cI INV
shall the financial difficulties be met! He
presents his views as follows:
1T is proper for me to emphasize the
fact that the Maritime Canal company and
the Construction company organized by it
have made no application to ongress for
aid. The Maritime Canal company can,
no doubt. by making great sacrifices OF its
stock and BOMBS, secure the completion of
the canal; but all experience shows that
this will involve an output of stock and
bonds that will be a permanent charge and
burden upon the commerce that passes
through the canal. The senate committee
on foreign relations has examined the Off
GERS of the Maritime ompany as to their
plans for raising money, which appear to
be substantially the same as those adopted
for other works of improvement con.
structed by private corporations.
"As NO income or profit can be derived
from the work until its completion. and
until the actual passage of vessels through
the entire length Of the canal, the company
must rely upon it's credit or upon its own
circumstances it is shown that the burden
OF liabilities upon the completed work
would, without aid from the government,
be not less b $250,0O0 900, and might ex-
tend to 500, 100000. most of il borrowed at
a high rate Of interest accompanied by
bonds would have to be disposed of in the
open market and would be sold largely in
European countries, 80 that, though the
work il instituted and conducted by Ameri-
can citizens, the control and management
Of the corporation would necessarily drift
into the hands of holders who would have
no regard to the important American inter
ests involved in the work.
ON the other hand. IT was apparent that
if the United States should aid the work by
their credit, the Maritime company would
be able to complete it at the estimated cost
without dlGCnunf mr. 1nco and in rnuai1nya-
tion Tor this aid, the United States could
prescribe such terms and conditions az
would carry out the object of the conces-
sions and the fixed EOlicy of this govern
ment. that. while the work would be for the
benefit OF all nations. it should not pass
from American ~ccntrcl. Vessels of the
United States will, in all human probable
ity, carry the chief through the
canal, and it is for the interest of our peo-
pie that the charges on these vessels shonld
be SO low as to induce the largest number
possible to avail themselves of the benefits
of the canal.
"Ihe question, then, was: In what way
should this aid be rendered without involy-
ing a departure from our established policy
rs stated by Mr. Cleveland, and without
p~ecuniary loss or e%ntangliDg alliance? The
only meshod that was suggested was the
one adopted by other nations under like
circumstances and especially by Great
Britain In respect to the sueZ canal, name
Iy. that the United States should, in consid-
Grafton of its guarantee, secure such a CON-
troll OF the majority of the stock as to ena-
bic II to protect the interests of its people,
and such control Of the expenditures on the
work as certainly to limit the obligations of
the company to the actual cost Of the canal
in money.
These primary objects have been, it 10
thought, secured in the bill now pending,
by an unconditiOna guarantee az payment
of the principal and interest of the bonds
OF the company bearing r low rate of inte-
rest; by the application of the proceeds of
these bonds. under the direction of United
States engineers, to the work sctnally done:
and by the transfer of S7O.O00,OO ont of
x100,OOO,GO in stock to the United States,
with the power to vote the stock and with q
proper representation on the board of di-
rectors. These, and other provisions of the
bill reported, will, it il confidently believed.
not only secure the completion of the work,
at cost. but will place it in the power of the
United States to protect its citizens in tho
full rights conceded by Nicaragua and
Costa Rics. and will prevent the manage
ment of the work from falling into the
hands of men who are indifferent or hostile
to American interests in that portion of tho
world"
The senator argues that the bill deals
justly with the American citizen who tool
mp the work after the United States had do
clined it. and at tho same time does not
pledge the credit Of the government to tho
furfherance OF personal interests. 1t pro-
yidss that the promoters of the Nicaragua
canal should be reimbursed only for the
actual cost to them of the work already
,A-sz Dvv thai sI,u A-.a L-- 4