The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-02-22
CANAL OF NICARAGUA
John Sherman Says the United
States Must Control It.
EUROPE MUST BE KEPT OUT.
It Might Become Foreign Possession
More Formidable Than Gibraltar and
More Troublesome Than Canada.

More Formidable Than Gibraltar and
More Troublesoms Than Canada.
The important question as to what action
the United States government should take
in regard to the proposed construction OF
the Nicaragua canal will be the subject OF
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 l, 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
policy of acquisition of new and distant
territory or the incorporation of remote in
terests with our own"
The Incorporation in February, 1889, of
the Maritime Canal Company, of Nicara-
que, 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 its
stock and bonds for the funds required,
and to seek the aid Of foreign powers, es-
pecially the United States.
Estimates made by engineers employed
by this company have been revised by
board of consulting engineers; and, before
any aid is 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 $73. 1885,
308, to which is added for possible contin-
gencies the sum of SD, 633, 262, and an al
lowance for interest on invested money
during the progress of the work, making
the limit of aggregate cost about $780,
100000.
Senator Sherman considers the engineer
ing difficulties, of which the greatest will
be met in the construction of harbors at
the termini; and it is his opinion that they
are not so great as those which were over
come III the making of the Suez canal.
The total distance from ocean to ocean is
1894 miles, of which only 26.S miles will
be by excavated canal. Work is in pro-
gress and the results are satisfactory.
The importance of the work to the
United States is strongly presented. SEN
ator Sherman declares that "the canal
will, for the first time, make possible an
enforcement of the Monroe doctrine,
hitherto mere dogma in American
policy" He then proceeds to aconsidera-
ton of the question: How shall the
financial difficulties be met? He presents
his views as follows:
ut 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 congress
for aid. The Maritime Canal Company
can, no doubt, by making great sacrifices
of its stocks and bonds, secure the compile
ton of the canal; but all experience shows
that this will involve an output of stock
and bonds that will be 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 company 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.
las 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 its credit or upon its own
resources, and, under the most favorable
circumstances, it is shown that the burden
of liabilities upon the completed work
would, without aid from the government,
be not less than $25O, 900 900, and might ex-
tend to $4O0, O00, 600, most of it borrowed
at high rate of interest, accompanied by
large discounts. This stock and these
bonds would have to be disposed of in the
open market and would be sold largely in
European countries, so that, though the
work is instituted and conducted by Amer
lean 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 in
terests involved in the work.
son 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 esti-
mated cost without discount or loss, and,
in consideration for this aid, the United
States could prescribe such terms and con-
ditions as would carry out the
object of the concessions and the
fixed policy Of this government,
that, while the work would be for
tuC UCucub VI oil udttOlS, SuOulQ not
pass from American control Vessels of
the United States will, in all human prob
ability, carry the chief commerce through
the canal, and it is for the interest of our
people that the charges on these vessels
should be so low as to induce the largest
number possible to avail themselves ofthe
benefits of the canal.
"The question. then, was: In what
way should this aid be rendered without
involving departure from our established
policy as stated by Mr.. Cleveland, and
without pecuniary loss or entangling al
lance? The only method that was sug-
gested was the one adopted by other ma
tons under like circumstances, and es-
pecially by Great Britain in re-
spect to the Suez canal, namely
that the United States should, in consid-
Grafton of its guarantee, secure such q
control of the majority of the stock as to
enable it to protect the interests of its peo-
pie, and such control of the expenditures
on the work as certainly to limit the obi
cations of the company to the actual cost
of the canal in money.
''These primary objects nave been, it is
thought, secured in the bill now pending,
by an unconditional guarantee of payment
of the principal and interest of the bonds
of the company bearing low rate of inter-
est; by the application of the proceeds of
these bonds, underline direction of United
States engineers, to the work actually