The times. [volume] (Richmond, Va.) 1890-1903, 1894-12-28
TINT NICARAGUA CANAL.
Some Points in the Senste's Discussion oil
the Bill to Aid LIS Construction.


WASHINGTON, D. C., Dec. &.-Al-
though the present is not very favor
able time for mourning the obligations
when the Government is asked to as
sumo in the Nicaragua canal enterprise
vet its friends have good hopes OF push
ing a bill foI that purpose through the
Senate.
Certainly the project has been thorough
ly explained, and the leading points con
neeted with II have been set forth IN
the able arguments Of its advocates. As
ia the primary question, That OF the con
stitutiOnality Of the lending bill, MI
Morgan quoted the opinion of Chief JUS
tice Charles +. DAILY, whom ne referred
to as one of the ableSt juTistS OF the
A.ited States. 1T does not make II
any the less an act TO iaclltate CONNER
cial intercourse said chief Justice
DAILY. that what is mainly TO be done by
an American corpora ton is to be done
In the territory of foreign country
Decisions are also cited 10 now that the
power of Congress 10 create corpora
ton for constructing this canal extends
to assisting the work and controlling Il
when il becomes If vast national consc-
quenCe. The point was brought out thdt
more than a generation ago Demo
cratic National Convention advocated in
its platform the building of a ship canal
across the Isthmus of Darien. RepubiI-
can conventions have also advocated the
same measure, and, indeed, the discus
II
partisan matter.
4 citation OF evidences Of public opinion
in favor of national aid for the canal
includes memorials from the legislatures
of various states ana from boards Of
trade. chambers of commerce. and other
organizations of New York. Chicago.
Philadelphia. Boston San Francisco, and
in brief, great part of the chief cities
OF the country.
OF course, the question of the form 40
he given TO the hin is one upon which
differences Of opinion exist ana perhaps
the difficulties in settling these detais
may prove the chief ones which the meas
ure VIII encounter. The money for bUiid-
ING the canal, as has been explained uy
Mr. Morgan, IS mainly to be raised on
a popular loan, based upon the guarantee
by the Government that the bonds WIZ
pay per cent. interest The Maritime
Canal Company is prohibited from the
handling OF the money for any other
purpose than 10 pay debts that have
been audited ana approved in the Treas
ury Department" Various other safe
guards are provided for the purpose
of preventing anotL-r Credit MOIf,icr
andal or Panama deIaulcation. The com
pany cannot dispose Of stock without
the consent of the Government which
holds the majority Of il. The present
stockholders and others TO whom the
company may Toe indebted are to re-
CeiYe not more than S7OOO.OOJ worth of
stock ana SiInOp worth Of bonds in
the new organization. The canal is 30
be built mainly upon the credit of the
United States from the proceeds Of about
Sl6Wn,0Oo of stock TO be sold for cash
al not less than par and of SI0.WO.U1J
Of = per cent. bonds guaranteed by tn"
Government: also TO be sold ar not less
than par The Government reserves for
itself S10.GDNn Of the Company'S stock
which is limited to 500. .Oop will have
a first mortgage lien upon the prOpert,
of the canal company. and will APPOINT tie
of the fifteen directors. The eXist.u'
features of the bill may be supplemented
or altered during its discussion. and, IN
deed various amendments have already
been proposed while othcrs that may d..
thought to provide additional safeguards
are invited By the managers OF the bill
As to the value Of the Nicaragua Canal
there seems 10 be little difference Of
opinion: and, indeed. many Of its advo-
Gates believe that the stocks held by the
United States Will prove directly prodt-
able in the way Of dividends. But, Of
course Congress would not 90 into the
enterprise with that as the main motive
The view taken is that the canal is If
vast strategic and commercial impole
ance 10 the United States. and that ex-
nerience has shown that IL must have
Government guarantee in order to be
able 10 raise the great amount Of money
involved in its construction. Senator Per
kins. of California. whose experience for
twenty years or more I'm seab0ard trans
portaton makes his views OF spec al value
on the latter point, notes that in 1855
there entered and cleared at San Fran
cisco M vessels, averaging 1873 tons
They had cargoes for and from Atlantic
ports in Europe and the United states,
which required trip around the Horn
At $50 per ton for construction. these YES
sells were valued az $}6.542,55O If their
voyages could have been through the
Nicaragua Canal they would have saved
two-t thirds of the distance and oae-half
the time which is equivalent TO saving
that the investment required il vessels
for performing the same service might
have been only one-half, or slSWoOJ, .n-
stead OF 5000 0J0. As TO the saving in
cost Of the wages and food OF the crew
that, OF course. Is obvious.
one interesting point brought out IN the
recent debate relates 10 the value Of the
Nicaragua route by reason Of It's furnish
ing fresh water lake for the destruction
OF the barnacles that form on hulls of
ships during their voyage IN salt water
MIR Perkins said that the advantage given
to ships from this source might be equal
to nearly nifty cents a ton. since the fail
ing off OF the barnacles would save the
expense and delay OF a docking: and he
further pointed out that this was clear