Los Angeles herald., 1892-09-25

returned to the senate but messag,
was sent to that body stating that Mr.
Cleveland did not approve Of the treaty
fearing that it might cause foreign com
plications, and that he would encourage
the construction OF the canal by al
American company, which assertion h'
made good by afterwards signing th'
| incorporation act of the 'Maritimt
Canal company, ofNicaragua." The re
! lection of this treaty was modification
to the government OF Nicaragua, and Il
is not possible under existing conditions
| to renew it. Had it been ratified the
canal would today be open, to your great
advantage.
When this untoward result had beer
reached, about twenty American ctizent
organized the Nicaragua Canal associ
alton and applied to the governments ol
Nicaragua and Costa Rica for a conces-
sion to build the caoal, paying
Nicaragua 100000 gold as an evidence
OF good faith. The Maritime Canal
company, of Nicaragua, was then
formed, and applied to congress for a
charter, which was granted, with pro-
visions meeting the requirements OF
Mr.. Cleveland's and Mr.. Bayard's pol
icy-construction by an American COM
pany under government control, 60 far
as a charter could control. OF course,
funds for construction were to be Oh
tanned anywhere. Otherwise the char
ter is a conservative and restrictive doc
ument, as you will perceive.
You will note the energy and faith OF
the promoters of the enterprise when
recalling the fact that, at this time, the
Panama canal was on the food tide of
apparent success. But the best English
and American engineers foresaw the dis.
aster at Panama. and had pronounced a
sea.level canal an impossibility at any
price that commerce could afford to pay.
The Nicaragua government, also, fear
ing foreign complications, had inserted
provision in its concession to the COM
pany that "that the concession should
not be sold to any foreign government"
The charter obtained, active steps
were taken to commence work. The
Nicaragua Canal Construction company
was incorporated as a means of interest
ing men of wealth and influence, with
out sacrificing the interest of parties al.
ready connected with the enterprise. A
contract was awarded this company for
construction, payable in securities, and
under this contract over IS 100000 have
been economically and successfully ex-
pended, the work having thus far been
executed for less than the estimated
costa very encouraging fact. The con-
struction company has gone about it's
work unostentatiously and cautiously,
first expending over $500, 600 in location
surveys, during which over 1000 miles
of line were run with transit and theod-
oiite-all this in addition to the prior
five surveys that have been made OF the
route by the United States government
and by private capital.
The money raised thus far is mainly
American capital, although there are
some English subscribers, and among
them a member of parliament. The
on the part of our most able
statesmen that the canal should be
placed under government control, for
the political and commercial benefit of
our country, has led to proposals from
the senate committee on foreign rela-
tions, having the matter in charge, to
pass a bill securing this by
guarantee of per cent on 100000, 900
25-year bonds. The gentlemen COM
prsing this committee-Senators Nor
gan of Alabama, Sherman of Ohio, Eus-
tis OF Louisiana, Dolph of Oregon, Frye
of Maine, and six others equally promi-
nent-have drawn this bill very con-
and with the experience in
view of the abuses attending govern
ment aid to domestic corporations. The
bill deprives the company of the entire
control OF its capital stock, thus: Capt.
tai stock, 500 900, 900; to be placed ''in
escrow" with the secretary of the treas
ury, $70,000,000, with voting power
Nicaragua owns $6,000,000, Costa Rica
81 800, 900, and the remaining S22, 500, 900
the company is not permitted to sell
until the president authorizes it, in case
the guaranteed bonds are insufficient to
complete the canal. The president ap-
points five United States engineers, who
make stated examinations, and on their
report to him of the value of the work
completed, the guaranteed bonds are
issued. The directory is composed of
15-the president appoints six, Nicara-
qua one, and eight are elected. As the
70 per cent OF the stock Sin escrow" has
voting power, the government elects the
remaining eight directors.
The government has the right to pur-
chase, at par value, any or all OF the
hypothecated stock, at any time prior to
the maturity of the bonds, which it
would be likely to do, as. before the
bonds mature, the stock will be worth
large premium, as it is at Suez--now
selling at $40 in London, and earning
20 per cent dividends.
If the advocates of government con-
troll can suggest any amendments to this
bill more conservative, such action will
be in the line OF progress. but obstruc-
tion without suggestions can aiise from
only one motive, and that antagonistic
to the public welfare.
There is very limited number of
individuals who, at this late day, ques-
tion the advantage of the canal. These
gentlemen have not studied the ques-
tions closely. They fear diversion of
commerce from our Pacific coast ports.
What commerce? Are they afraid of
the diversion OF Hawaiian commerce.
when Cuba, producing the same prod
ucts, has SO great and controlling ad-
vantage in eastern and European mar
kets, which, in turn, cannot compete
with us in supplying Hawaiian markets?
These are facts and those are theories.
You will admit, gentlemen. that facts
should control. Now, permit me to
state carefully a great fact, to which l
call your attention, and which permits
no denial. 1t ia this: The commerce of
India, China and Japan, on its way to
the west end of the Nicaragua canal, on
its shortest route across the Pacific
ocean by steam, sweeps close by our
Pacific coast, passing within 1S0 miles of
San Francisco, and still nearer Los An