Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-01-25
PITTsBURG, SUNDAY, JAN. q, 1891.
THE PARALLEL COMPLETE.

In commenting upon the bill to loan
500, ,000, 900 OF the Government credit to the
Nicaragua Canal scheme the other day,
THE DISPATCH remarked that if the bill
should become law "it will be a modern
miracle if the familiar feature OF inside con-
Etruction companies and profitable wheels
within wheels be not evolved out of this
scheme, throwing wholly into the shade the
enormous private fortunes which were SINH
larly coined at public expense out of the
famous Pacific Railroad subsidies"
1t now appears that we have to tender an
apology to the promoters of this project for
failure to properly appreciate their acquisi-
tive energy and the promptness with which
they adopt the modern method OF absorbing
all the profits of the enterprise which is to
be pushed with Government funds. An in
terview with Colonel Andrews, published
elsewhere, brings out very direct intima-
tion that the promoters of the canal project
have already made a contract with them
selves for Its construction; that this contract
was made without competition, aud at pri-
vate meeting. If tine Government funds or
credit is obtained for the enterprise, we need
not fear that the undertaking will be an
exceedingly prosperous one-for the con-
tractors vino obtained the contract by their
own capacity as directors.
This completes the parallel between the
new project and the famous Pacific railroad
jobbery. With tine legislative provisions so
nearly identical there can be little doubt
hof ho OF dc of
be the same. If Congress makes this re-
markable grant of S100, ,0O0, 600 Of Govern
ment credit TO be spent in building canals
in remote districts, in preference to furnishing
our own nation with interior water communi-
cations, it will be easy to write its history in
advance. The construction company will
take the bonds of the Government and the
stock Of the company at valuations yielding
hundred per cent profit on the work.
When it is completed-and even completion
is not necessary to the profit of the con-
tractors-the question whether the promoters
whose canal was built for them by the Gov
ernment credit shall continue to operate it
or not will be decided as in the case OF the
Pacific roads by the chances to make money
BY inside manipulations. The ultimate re-
suit, if the canal property is worth holding
on to, will be reproduction of the present
plea in the case of the Pacific roads that the
Government must in justice to its benef-
Charles give them an indefinite extension of
the debt for century or two at nominal
rate of interest.
Such a proposition, for the use of Govern
ment credit entirely outside the territory of
the United States, with such faithful re-
production of the Pacific Railroad legisla-
tion, could hardly be expected to receive any
liberation except upon one hypothesis 1t
might be interesting to inquire whether
another feature of the Pacific Railroad lob
berry is not reduplicated by the handing
around under the surface at the national
capital of blocks of stock in the construc-
tion company that is to absorb the profies of
the enterprise, and placing the shares of the
enterprise, after the classic policy of the
late Hon. Oakes Ames, where they will do
the most good