Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-01-17
TERMS OF THE DISPATCH.
PITTsBURG. SATURDAY, JAN. IL, 1891.
A COMPARISON OF THE CANALS.

Those gentlemen in Congress who can see
their way to guaranteeing 500 100000 Of
bonds for the Nicaragua Canal can hardly
refuse adequat encouragement to the much
more important work of connecting the
great lakes with the Ohio and Mississippi.
The importance of a ship canal from Lake
Erie TO the Ohio in connection with i'm
provement of the Hudson river and the
Erie Canal in New York State far tran
scends the more ostentatious scheme
which has been tayorably recommended to
Congress on behalf of the Nicaragua
waterway.
A great deal has been said about the
necessity of the United States having con-
troll the shortcut for International CON-
merce; and the particular Importance of
this in time OF war has been specially dwelt
upol. But financial control is one thing,
and the power to maintain actual possession
and use for the waterway under war con-
ditions is another. AT present there is no
pretense that our navy can begin to COM
pare with that of several of the great powers
of Europe. To build and keep up a navy
able to hold the canal against all comers
would cost infinitely more than the canal
itself. In citing this point we do not wish
to detract from the value of the Nicaragua
Canal for purposes of commerce. But there
should be no false pretenses In the matter;
and so far as considerations OF future war
are involved an interior canal which will
make possible a safe inland route from
New York harbor to the Gulf of Mexico is
of vastly more importance than the one for
which we are invited to guarantee $780,
100000 in q foreign territory.
There is another feature of the case which
must be seriously weighed. A guarantee of
bonds by the United States for such enter
prises has heretofore meant that the Treas
ury practically assumes the cost of con-
struction. Our experience with the Pacific
railroads is full OF instruction. While the
proceeds of the bonds go to perform these
works, the profits of the future rest with the
stockholders OF the private corporation
which invests little, if anything, more than
Its talents as a company promoter. 1t is
true, the present proposition contemplates
an absolute ownership by tine United States
of large part of the stock. But it has
been the experience of city, State and
National Government that they usually
come out at the small end of the horn in
such partnerships. So If Uncle Sam has to
put up the cash he might better be single in
the undertaking. The system of construc-
tion companies inside of large corporations
is we'll understood bv the public. Where
the means are obtained from bonds guaranteed
or paid for by outsiders, the insiders very
often get their profits in the contracts for
the work, while the stock ownership is q
gamble upon the future possibilities of the
undertaking.
So far from going the length of main
tanning that Government guarantee under
any circumstances is ill-advised, we believe
there are occasions where foresight and a
just regard to the promotion of trade amply
warrant it. But one of the first essentials
should be thorough scrutiny of the plans.
In every instance it should be seen that the
private promoters put up q proportionate
amount of their own cash, and that the
work should not be left wholly in their
hands, but that strict Government control
and supervision should insure an honest
expenditure of every dollar.
First of all, however. when contemplat-
ing project involving the enormous help
of S1o0, 100000, Congress should ask itself
how is the result to compare with the i'm
mense advantages to the business of the
country and to its safety in time of war that
would follow from ship canals cannecting
the lakes with the Ohio and Mississippi.
Two of these are noS projected. One from
Erie to Beaver. The other from Chicago to
the Mississippi. AT the highest estimates
the joint cost of both would be less than
half what is demanded for the Eicaraura
Canal. Not only that, but if the Govern
ment were to divide guarantee of even
SIS, OOO. 900 between these two projects pri-
vate capital would doubtless be quickly
found to furnish the remainder.
HONOR IN ARMY LIFE.