The times. [volume] (Richmond, Va.) 1890-1903, 1896-03-04
MERGING OF CANALS.
PROPOSED CONSOLIDdTTON OF NC
LRAGUA AND PANAMA COMPANIES,
1t Caused Great surprisc-A Full Inves-
tigation Likely Before Any Action is
Taken on Canal Measures.


ton by the special cabegram published
In the Herald this morning regarding
tho proposed fusion OF the Nicaraguan
Canal Company and the Panama Canal
Company.
The general belief is that consolidation
would not tend in any way to encour-
age Congress 20 act OF the measures
which are now pending In the commit
tees Of the Senate and Rouse OF Repre-
sentatives Ia have the canal constructed
under government supervision and guar
antee. The consolidation Of tho two
companies would complicate matters 20
a. TO make it necessary for Congress to
go very slowly. and see Just what obi
cations It was assuming before under
taking TO guarantee the obligations OF
the new project IN any way.
II has been suggested that II the new
combination could start free from debt.
and If the practicability Of tho canal
could be demonstrated beyond question,
there would be little difficulty In procur-
ing private capital 10 construct the
canal without government guarantee.
In view. however, Of the unfayorable re-
port made upon the project by the En-
gineer Commission, it is believed that IT
would be very difficult TO convince cap
i'alists that the bonds of any company
proposing to construct the Nicaraguan
canal would form safe investments, I'M
less they should be backed up by such
guarantee.
WANT UNITED STATES TO CON-
troll TT.
Upon ono point there IS practical una
nimity among the advocates OK the Nlca-
raguau canal IN Congress, and that Is II
any consolidation Of the two companies
takes place. IL must bo py the dpsorp-
ton Of the Panama canal 10y the Nlcaia-
guam company. and that the latter must
remain an American corporation. " the
securities OF any company are giafdn-
tced II will be- by an act which will IN
sure the absolute control of the company
bv the government. by having ma
iority OF the directors appointed by the
President.
There is no disposition on the part OF
the friends OF tho NiCaTaguan canal IN
Congress 10 delay the preparation ana
report OF a bill ON account Of negotiations
for the fusion Of the two companies. The
probably report its bill In the near iu-
ture without any reference TO the pos
sibllitv Of "A combination Of the COM
panies. The negotiations for a comhina-
ton will doubtless tend 10 increase Inc
opposition 10 the measure I'm the House
until It can be known just what the
prospects are for the construction or the
canal without a government guarantee
before making the United States respon-
sible for the bonds OF the company.
LEGISLATORS NOT ENTHCSED.
Representative Hepburn. OF Iowa, the
chairman OF the Committee on Inter
state and Foreign Commerce, which mas
charge OF the Nicaraguan canal project,
read the cablegram in the Herald with
much interest to-day. lie said TO me:
Il believe such combination would be
impracticable, for half a dozen reasons.
| do not see what would be accomplished
by II, as the difficulties and expense IN
the way OF constructing "A canal on the
Panama route would be so great that
that project cannot I'm any way be con-
sidered "a rival Of the Nicaraguan project
"The fusion Of the companies would
not put them on any better hnanclal
standing "a the combination OF two
bankrupt corporations would not remove
bankruptcy / cannot say anything as
10 how such consolidation would ar
feet the prospects of legislation, FOR the
reason that / do not know, but l do not
believe this rumDr Of combination
would have much effect upon anybody.
Representative Sherman. OF New York,
IS the chairman Of the subcommittee OF
the Committee on Interstate and For
eign Commerce to which has been IN
trusted the drafting Of bill to be re-
ported to Congress. lie said, aiter read
ing the cablegram:
Il would like 10 think about the matter
before expressing any positive opinion as
10 what the effect Of such fusion or
the two companies wouls have upon the
prospects Of legislation. l am inclined
to think. however, that it would tend to
retard rather than TO accelerate action
by Congress.
Il would be opposed 10 the construc-
ton Of the canal by any other than an
American company
In army. navy. and engineering circles
the Herald's publication this morning
created a profound sensation. The I'M
preston here Is that failure must folo"
such a combination. II is pointed out
that if the Nicaragpan Canal Company
were 10 assume such heavy responsible
tiles, the expense attendant upon the
construction Of the waterway would De
thrice as heavy as would be the actual
cost.
PANAMA COMPANY'S PLANS.
/ talked to-day with a gentleman who
Is in touch with the officials OF hoth the
Nicaraguan and Panama companies. lie
told me that the Panama company had
been seriously contemplating the adop-
ton OF new plan for its canal across
the isthmus.
This proposed waterway with SIX
locks. and with summit level of ninety
feet. The Panama officials believe such
a plan to be entirely feasible and claim
that the construction Of a canal on such
lines will obviate the danger OF Hoods, a
danger which is ever-present in the sea-
level scheme, which has been followed IN
the past
lie thought that IL was quite possible
for the NicaragIan company anu the
Panama company To combine. lie SAID
that the Panama company was gettnS
w rs plans for the new kind of canal
and had intended 20 place them before
the world within the next year. and ask
for new loan of Sie9,oe3eo, with "hlch
to carry out the project This sum would
he quite sufficient for the purpose.
The Nicaraguan Canal Company was
well aware OF this intention OF the Par
anna canal officials, and knew quite well,
he said, that II Paut.u.t succeeded d.
floating a loan, its chances OF negotiat-
ing another loan would be injured, and
The project might not be again pushed
for another quarter OF century lie
thought the Panama loan would be sue
cessful as the idea was 10 make #
first mortgage interest 10 the extent OF
five or six per cent. to be paid upon il
before the old stockholders received any
dividends.