The morning call., 1892-04-08
now NOT TO BUILD THE CANAL.

The announcement that three or four
men whose combined wealth nearly or quite
equals the wealth of the chief owners of the
Southern Pacific Company have taken some
stock in the Nicaragua Canal Company pre-
sents the question Of the construction OF the
canal in new light. The people OF this
State have favored the canal in the belief
that it would form competing route against
the transcontinental railroad companies.
Unless this belief is realized the enterprise
has small public value. If the methods
which have enabled the owners of the
Southern Pacific system to make fortunes Of
S25, C00,C00 each in building and running
their roads are to be repeated in the con-
struction of the canal the public will look
upon the canal as another link in the chain
capital has forged for the people. AS
private enterprise Congress could have no
control over the rates of toll to be charged
vessels passing through the canal. The real
cost Of the work would never be known.
Construction companies composed of the
stockholders would take contracts at prices
which would swell the nominal cost into
the hundreds of millions. Congress would
be assured that rates Of toll which would
not pay interest ON all the stock, real and
watered, and all operating expenses. real
y
of capital. 1t would be as impossible 70 get
at the real cost of the canal as it now is to
get at the real cost Of the Central Pacific
Railroad. With tolls at figure which
would make it an even thing whether
vessel should pass through the canal or
follow a natural waterway some thousands
OF miles longer, the canal would have little
commercial value to the public. There is one
safe way TO build the canal, that is for the
Government TO do the work itself. keep open
books, and fix rates of toll as low as the
cost of construction would permit The
present company should be literally dealt
With, but its financial necessities should not
be allowed TO destroy public confidence In
the enterprise. When the Nicaragua Canal
Company talks of going to England for
money it indicates a lack Of appreciation of
the high national character of the undertake
ing. The canal should be under tie control
Of tie American Government There are
objections to an Endorsement of the Mica
ragua Company's bonds, but this is better
than having the canal built by private cap
ital drawn from any nation that might for
one purpose or another, be induced to invest
in the canal. Il should be business posi-
bllity to fix rates of toll in advance, or, at
least, to place a limit upon rates. 1t would
be better for the Government to guarantee
q company from loss in operating the canal
than 10 expose the people to the eXtortions
of transportation monopoly. The people
are toleraely firmly convinced that the only
monopoly that will not cineh the public is
one that cannot The millionaireS who
propose to put capital into the Nicaragua
canal are no more 10 be trusted than other
milIiOnaires who talk of a competing trans
continental railroad. Combination will fol-
low as soon as combination seems 10 be
profitable. 1t is quite possible that before
the Nicaragua canal will be completed the
Government will be driven to assume pro-
pTietorship Of the great railroad companies.
People will never know how cheaply COM
modtles can be moved until the expense
account is as open as the books which show
the cost Of building man-of-war.