St. Paul daily globe., 1894-04-14
THE NICARAGUA CANAL.
SENATsR M0RcAK'S REPORT READY
F0R THE SENATE.
AS HE DEPICTS THE SITUATION
The United States Must Promote
the Projecr, or Some Foreign
Power Will-Popular Desire Is
far the Speedy Construction
of the Cana;-Good Investment
for the Government.


Morgan has completed and will present
his report Oh the Nicaragua canal. The
report, after referring to the suspension
OF work on the canal owing to the
monetary stringency OF the last year.
has the following to say of the canal
plant:
"In consequence of the suspension
there has been some loss, but not of
serious character, in the depreciation Of
the plant connected with the construe-
tion of the canal; but all the dredges
and machinery requisite. for dredging,
and the houses, structures and wllaryes
necessary for the work on the eastern
division have been supplied. and. with
slight repairs, are in condition for the
immediate resumption of work ON the
canal.
Carefully revised estimates of the
cost of the canal and work connected
with it make the total sS7.00o.570 at
the outside"
Senator Morgan then says that the
action takeu by the senate up to the
present time in encouragement of the
work created the belief and excited the
desire of the country that the canal
would be speedily constructed under
the Immediate auspices of the govern
meut of the United States. and with the
use of its credit.
This sentiment of conviction" he
says, ''has increased from that time to
the present, and it has been encouraged
by the fact that great leading political
parties have declared in favor OF its
construction by the United States, as
far as that may be done under the con-
cessions of Nicaragua and Costa Rica.
In the annual messages of our presi-
dents. this subject has uniformly re-
ceiyed strong Endorsement"
He continues: IF action by congress
is delayed unreasonably the company
will be compelled to either abandon the
concessions and lose the money they
have already invested in the canal or
accept the offers made TO them 10y for
eign capitalists. If either of these re-
suits should follow the inaction of con-
gresS, The people could not censure the
canal company for yielding to fate
that they coulG have avoided if congress
had not taken up the subject of con-
structing the canal through the aid of
the United States. The work done on
the canal is permanent as far as it has
progressed, is important as a demon
stration Of the final success of the loca-
tion and plan of the canal. and it will
not be abandoned bv the commercial
world. The canal will be built
for "a. .,,v-o
canal is completed the land grant alone
will be worth s10,000.0OO. OF the value
of the canal from another view he says:
40 the United States in political and
strategic view and as sea route to our
Pacific coast, shortened by more than
half the length of the present ocean
route. this waterway is of greater i'm
poltance than the Suez canal Is to Eu-
rope and Great Britain, or than the
freedom Of the BoSphorus would he to
Russia.
''lf it shall result, from our fndiffer-
encc or dread of expansion in the di-
rection Of national duty and of self
preservation, that Great Britain or any
other great European power shall get
the control of the concessions that we
have SO far refused, the result is even
now plainly manifest that the Central
American states will repeat the expert
ments of Egypt. Then we shall have
our country broken in its coast line of
trade and defenSeS by a European
power. not in violation of the Monroe
doctrine, but this will be done in the
natne Of these republics Oh and near the
line of the canal"
Senator Morgan advances the opinion
that it is Improbable that the treasury
of the United States will ever be re-
CURED to advance any money. either for
the construction of the canal or for paw
ment or Interest on the bonds, even
when the canal is in process of con-
Struction.
The interest OH its bonds. even after
S70. 200. 900 has been expended, is 81, 1OO.-
000 per annum, Ii it requires seven
years to complete the canal, the issue
of bonds required will be about $40, ,0Oo,-
900 year; that Is, 100000 the tlrst
year, S6OO,0O0 the second year and $780,
000 the third year, and SO on until the
seventh year, when the sum needed to
meet the interest would be So 100, 900.
At that time the canal will be opened
and in full operation, and its income,
even for the first year, will reach S5,OOO,-
COO at the rate of tolls now received by
the SueZ canal.
In conclusion, the Morgan report
says:
The plaingand certain effects of this
bill, if it becomes law. will be to put
into active business employment SlOO,-
0d0, 900 of money borrowed from our own
people, without risk to the government.
Such movement at this time would
stir all Industries into activity and re-
lease other hundreds of millions of
dollars that are now being boarded or
employed in gambling in stocks. 1t
would furnish good and wholesome EN-.
ployment to 100000 Americans that are
marching Oh the highways begging for
work and often for food. 1t would
yield TO the United States at the rate of
81 per ton for canal charges not less
than S4,00O,000 per anuum of the diyi-
Idends on its S70,000,000 OF STOCK in the
caual.'