The times. [volume] (Richmond, Va.) 1890-1903, 1893-02-11
THE NICARAGUA CANAL
A coMMERCIAL xECEssITY 10 rzB
PEOPLE OF TINE q. ..
Reasons why the Government Should Lend
Aid to its Construction-Any Such
Aid Not . Subsidy.

Orleans, which unanimously demanded the
prompt construction and Government con-
troll Of the Nicaragua canal:
1t Is conceded on all sides that the Mica
ragua canal Is a commercial necessity to
the people Of the United States, and thar
its construction and operation will do more
to enhance the commercial importance and
Increase the collective wealth Of the States
OF the Union than any measure now thought
Of The newspapers Of the United States,
to whose effort more than to that or any
other agency Is due the widespread dis
cussion Of and interest In. the project, are
agreed on these propositions. III the canal
is not constructed by public or private energy
I'm the United States 1t will be done with
the help Of private or public capital In other
financial markets Of the world. Ii does
not need an appeal to American PATRIOTISM
TO make manifest the desirability OF Its cen
struction by the people Of the United States.
Upon the question whether the United
States Government should have any direct
relation to it's construction, there is not
entire unanimity. When. however, all the
facts are known, objection TO such particl-
patton is, we think, unfounded. These facts
show that before the New Orleans conven-
ton the sentiment favorable to some scrt
of Government Intervention had taken but
imperfect form, and that this convention
composed Of representative men from the
various States. formulated the suggestion
which has since been expressed In the
amended bill recently reported to the Senate
by the Committee on Foreign Relations.
| The terms Of this new measure envelCp the
| Governments relations with such protec-
ton and safeguards that whatever objection
| existed to its participation In the project
| have now been fully met
| The new bill strips the present owners CT
| the canal CT all but less than one-eighth
| Of the ownership and gives over the con-
| troll TO the Federal Government. The men
| to whose efforts was due the inception or
| the undertaking are thus rendered power
| less and well-nigh yciceless. In return Tor
| n guarantee only OF $l00,000OC0 or less OF
bonds, the United States takes SS0,JOOWo
| or SOh per cent. OF the Canal Company
stock, fully paid. and the Government ap-
points ten Of the fifteen directors. THESE
| ten directors are to be non-partisan AS
| consequence this arrangement gives 30
! the Government four-ifths Of the Canal
Company's entire assets. Unlike the guaran-
| tee OF the Pacific railroad bonds, In which
| the Government neglected to provide for
| its own appointment OF a majority OF the
directors, II Mt all times controls the canal,
while IL Is not. for State reasons, the legal
owner. 10 Is in effect. If not technically,
therefore. the owner Of the canal since the
latter's destinies are within its entire Keep
| ing II the interest which 1t guarantees
| is not paid, It will be the fault Of its direc-
tors. and hence its own neglect. since, being
| the majority OF two-thirds OF the Canal
Company their duty is to vote the companys
money to meet the interest and Tor such
other purposes rs may be necessary. The
delicate matter CT violation Of the Clayton
Bulwer treaty the Nicaragua treaty ana
the terms Of the Nicaragua and Costa ldca
concessions. are by this virtual control with
out ownership in legal FORM avoided. The
Government cannot own the canal In
legal sense The treaties between this ccun-
try and Nicaragua and Costa Rica and the
concessions made by those republics, require
among other things, that the concessions
be the property OF n corporation. In THIS
corporation Nicaragua and Costa Rlca must
be represented on the directory by one direc-
| tor EACH Any foreign Government may
| hold majority Of the stock of the corpora
| ticn or be otherwise represented, but the
| concessions cannot pass from the corpora
| ton to foreign Government This seems to
| us to dispose CT several points which we
zee raised in our exchanges
1t Is not properly understood that the
citizens Of the United States. and especially
those Of the South and the West whose
proximity makes them specially Interested
and net the Canal Company, are pressing
the matter OF Government control. The lat
ter occupies. so fan as we are able to judge,
an independent position. II has at no time
dill ectly or indirectly asked Government aid.
II Is doubtful indeed. whether the terms
cf the amended bill are Of any advantage
10 it. since. II 1t were inclined TO do so,
II could doubtless find in the money markets
Of Europe capital ready and willing TO III
vest in an undertaking which Is surer OF
substantial returns than was the Sncz canal
at its inception. The people Ct the United
States, however, would regard as little less
than crime any movement looking To
denial TO this country Of the opportunity
to construct and take the tremendous nd
vantages Of an enterprise whose geographic
cal position seems to enttle the United
States to It's requirement as Of natural right.
We think the first prOmptings Of patriotism
should restrain recourse &c foreign money
| centres. until it is at least found impossible
to awake the people Of this country 10
realization Of the full Importance Of securing
&c itself n highway Of such commercial and
strategic moment.
The condition Of Government aid being the
virtual ownership OF the canal. il is there
| fore not subsidy 1t is not probable that
| one dollar will ever he spent On the project
| by the United States. The oh lnce of loss
| by the Government is reduced 10 n most
unlikely possibility. To cause the Govern
ment any financial loss the enterprise must
| fail. No one approaching the full signif-
canoe CT the unanimous and Imperative de-
mand throughout the world for the canal
can seriously believe il will fail to pay when
| completed. ANY accomplishment Of engineer
Ing science within a not excessive cost
which will bring New York and New Orleans
10000 miles closer &c San Francisco and the
South American Pacific Ports. would seem
to justify almost any reasonable Government
aid. The passage of the bill now before
Congress to secure Federal control Of the
canal would give the United States the adj
vantage over its European competitors, both
In time and distance. where 1t is now AT a
disadvantage (The United States, suffer-
ing as it does by palpabe disadvantages
OF time and distance over its European
competitors. no measure can be devised which
will bring to it the benefits of this canal)
The cOastwise trade Of the United States
passing through the canal IL estimated nj
not less than 100000 tons annually. Al
81 90 per ten. which is about half the toll
of the Suez canal the revenue OF the Mica
ragua canal would be $1,000 600 from this
source alone. The interest on the bonds
Is $1,000. 900, and the cost of the mainte-
nance and operation is estimated at $1,000
900 annually. This leaves 5000 600 annually
fer sinking fund with which 10 pay on
the bonds before they become due. 1t is
not likely that there will be necessity for
the issue of all of the 500. 100000 of bonds.
The progress In applied mechanics has so
cheapened the cost CT borings, dredging.
and excavations of late years. that while
engineers unsupported of bias have definitely
AxnI Tho. 81 thn al