The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1891-06-14
THE CANAL AS AN INVESTMENT.

Railroads are often run through sections
of country in advance of possibility of
making operating expenses. The idea is
not so much the public good as the expscta-
ton of profit through a rise in land in the
district the railroad passes through. 1t is a
mere question of relative cost and profit.
If the land interest be large enough and the
road not too costly, enterprises of this ma
ture are pretty sure to be profitable. The
Nicaragua Canal presents something such a
problem to the people Of the Pacific Coast.
We have in California a State two-thirds as
large as France with less than One-half the
population of the city or Paris. The value
Of cur property now is in round numbers
81, O00, OOO, 900. It will cost one-tenth of this
sum to complete the canal. It's completion,
if controlled by Pacific Coast capital, would
add several cents a GENITAL to the market
value of every Genital of wheat exported.
This effect can easily be demonstrated. The
market price of wheat in Liverpool would
be the same whether the freight on Calif0r-
MIA wheat was 10 cents more or less on a
hundred pounds. The reduction Of freight
on the wheat shipments from one State wonld
not perceptbly affect Liverpool prices. But
wheatgrowers can easily reckon the amount
they would save were freight charges re-
duced 10 cents per hundredwe ght. This is
but one point Of profit. So long as we ex-
port food products cheapness of trauspOrta-
ton will be all important consideration.
Now, if the people who own tile 81. O00-
100000 of property in California were to
subscribe for the 500, 900 of caual stock
they would get their money back through
the appreciation of the value OF their prop
-tfHN H.. IN no 0fn -
viii soon become dividend paying. If, ON
the other hand. there should be a general
refusal to buy stock or take bonds, and if
the enterprise should be delayed in couse-
quenee golden opportunity would be lost.
1t would be we'll for California and the rest
OF the Pacific Coast TO hold majority of
canal stock. Matters of vital interest con-
stantly come up, which holders of major
ity Of the stock settle, for or against given
community. If the stock Of the canal should
De owned principally abroad the chief pur-
pose of the stockholders would be to get as
high dividends as possible. But if major
ity should be owned on the Pacific Coast
dividends would be matter Of importance
second to rates of freight. San Francisco
may head the subscription list. but other
Pacific Coast cities and towns are equally
interested. The market value of every acre
of land will be increased by the completion
of the canal by Pacific Coast capital The
increase will not wait upon the completion
of the canal, but will be perceptible from
the day its completion Is made certain. If
Mr.. Miller is compelled to go abroad for
money the canal will have far less value
for this Coast. Freight charges may even
be fixed SO as to infiict upon US injury in
stead Of benefit. But so much money has
already been invested in the enterprise that
it will probably be completed either with or
without us. Now is the time to say which
| il shall be-