The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-12-16
CRY OFFICIAL PAPER.


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Unless the Morgan bin for the finan-
cling Of the Nicaraguan Canal Company,
or an equivalent to the Morgan bill. ID
enacted. there Is no possibility OF the
United States securing control Of the
canal within the near future.
II the Morgan bill is enacted the Mari
time Company. which it is feared by
many persons, may profit abnormally
by the terms of the bill. will be severe
financial loser.
In no manner whatever can the enact
ment OF this bill produce such a state
OF affairs as that which grew out of the
government Endorsement of the bonds
of the Pacific railroads.
The reason the United States cannot
secure control OF the canal in the early
future Is that the concessions for the
canal are already in the hands Of lntsi-
vidual concerns. whose rights cannot be
violated by the United States without
infringement upon justice. also, because,
In. form at least. the Ciayton-Bulwer
treaty stands In the way OF the United
States securing direct concession.
On the other hand. If the United States
finances the Nicaragua Company 1t
virtually. although not technically. se-
cures control OF the canal. BY the pass
Ing Of the Morgan bin at once. the Mari
time Company win be enabled To live
up to Its contract with Nicaragua and
the concession will not lapse on Octo-
Der next.
Morgans proposition pays to the Mari
time Canal Company only $1,000. 900 for
the already extensive improvements It
has made on the canal and the obliga-
tons II has entered into. The sum is
Tar from what would go TO any business
Institution not a bankrupt
The Endorsement OF the bonds Of the
Nicaragua Company as proposed by the
] Morgan bill insures the government alb
solute protection. In return for In
dorsing 100000. 600 OF bonds of the COM
/ pany the government receives SO, 600
600 OF the bonds, or considerably more
than one-half OF the total issue. Nor
| can the company increase its issue. as
was done in the case Of the Pacific raft
roads. and place the government secur-
! ity In second position. The Morgan bill
1 stringently prohibits any bonded In
/ crease whatever.
Furthermore. out of n directorate al
1 eleven In the company the United States
1 secures nine. which Is so overwheln,ns
/. majority as 60 assure virtual govern
{ ment direction of the entire orgauixa-
ton. Costa Rica and Nicaragua hold
I the two other directors. The United
States directors are appointed by the
president.
OF the $780, eco II the company
bonds remaining after payment .o tbs
t,nited states. Nicaragua secures
Moce goo. In accordance with the term:
oY che original concession. and Costs
Mica secures 81. 500 .eoa Five minlen dol
Lars Is paid II the Maritime Company
and out OF this. eun the company Is Il
pay It's debts and reosaanise In orfer :,
a continue retention Of the canal cnnces
sion. This sum IA recognized as made
auate. bat Is accepted with patriots.
sacrifice by the able ard pahuc-xrAri,ee
men who have hitherto controlled ~.
company.
ny ihs Depreciation thus provided IN
The Maritime Company the concession 4
technically continued I'm the eontro, .
private corporation The Niearagus
Company. whose bonds are guarantee.
by the United States IL the es,nstr1sctso,
company which VIII huliG The cana, I
holds The contract which was mad, y,
'ne Maritime Company with the O.
fanci Nicaragua Canal Construc,le,
Company.