The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-12-22
Critics Of
the Sanal
From the Engineering News.


To explain fully the present situa-
ton we shall have to review briefly
the recent history Of the Nicaragua
enterprise. When the Maritime Canal
company obtained its concession from
Nicaragua in 1852. 1t expected 10 raise
capital In the financial markets 80 the
world sufficient to complete the canal
as a private enterprise. In fact. the
concession from Nicaragua distinctly
forbade the transfer OF the concession
or OF the control of the company TO
any nation or government. Any such
transfer was to work the forfeiture OF
the concession.
After securing its franchise and
making Its surveys, the canal COM
panys promoters set about the task
or securing funds: but in this IL was
unsuccessful. The investing public of
the world refused TO be convinced hat
the success OF Suez could be repeated
in Nicaragua, and while the company
did raise the considerable amounts
that were necessary to pay for its sur
veys and such preparatory work as IL
undertook. IL did this by disposing of
its securities at a great sacrifice. 1t
became evident that the canal was too
risky a scheme to attract private cap
ital: IL built at all. IL must be as a
tCN'i hi' WIN. anu tHt DhdhtSFto
OF the canal company. as the only hope
OF securing a return for the money
they had put in, began their endeavors
TO dispose OF their concession to the
government. At nearly or quite every
session of congress for the past seven
years bills for this purpose have been
before congress.
The general scheme in the various
bills before congress has invariably
been to have the government guaran-
tee the bonds of the cana company
to the amount of about 100000, 900. and
receive in return S10.000.000 of the
company's stock. As il became more
and more evident that Uncle Sam
could not be induced to pull c~hestnuts
out of the fire to any such extent. the
Maritime Canal company has reduced
its demands. In the bill as reported
by Senator Morgan on Dec. Z IL IL pro-
posed to give the company the sum
OF 5000. 900 In bonds for all IL has ard
owns. and to wipe out all obligations
of every kind. The old company is,
in fact. to disappear. and the new COM
pany under the same name is to lie
practically a department OF the Unit
ed States government, all its directors
being appointed by the president.
There are two question which ought
to he definitely settled before congress
passes the bill for which Senator Nor
gan has so ~zealously abored. The first
is what the United States is to receive
for s.. 900. 900 which IL is asked to pay,
and second. whether IL Is desirable that
the government shall masquerade as a
private corporation in carrying out the
work of building this canal.
The actual visible assets of the Mar
thine Canal company. and its Construc-
ton company offshoot, are admitted TO
be trifiing I'm amount. There Is about
IL miles OF railway embankment sun-
ming west from Greytown, across the
swamp section, on which, according TO
all accounts, the ties have disappeared
and the rails are fast approaching
the traditional two streaks of rust.
The Greytown harbor works have been
wiped out by the sea worms and the
silt carried by the tidal currents. There
are a few buildings at Greytown and a
small amount of machinery. dredges,
etc, all of which has experienced the
deterioration due TO half a dozen years
of tropical exposure. Finally. there is.
or was, a couple of miles or so of
ditch dredged through the swamp.
In addition the Maritime company
has its surveys, maps and plans. IL
is also true that a considerable
amount OF the topography taken md
borings made by the company would
be of use. We cannot pretend. Of
course. to name anything more than
approximate limits to the estimate of
such work. but 1t seems to us that the
sum OF $500. 900 should be ample to COW
er IL, or a total Of $500. 900 for the en-
tire works, surveys and records be-
longing to the company.
The remaining asset of the company
is its franchise from the states Of Mic
aragua n Costa Rica. and IL is his
which Senator Morgan n the canal
promoters have chiefly urged as worth
the price which they nave asked the
government to pay. Recent events.
however, have not been calculated 10
improve the position of those who val
ue this franchise so highly. As our
readers already know, Nicaragua has
taken formal action declaring that tie
franchise will be forfeited next Octo-
Der, and has granted a new franchise
to a new set of hnanciers which will
90 into effect when the Maritime Ca
nal ~company's franchise expires.
The ground on which the franchise
Is declared forfeited is the following
clause in the Maritime company's
charter:
Article a.. A term of 10 years is
also granted TO the association for the
construction, completion n opening
OF traffic and the canal for maritime
navigation. However. should events
OF main force arise, duly justified and
sufficient TO impede the regular prog
ress of the works during the period Of
the said 10 years. an extension shall lie
granted equal in duration to the time
that may have been lost by such de-
lays. If at the expiration OF the 10
years aforesaid the works should not
be completed so az TO ave the mari
time connection between the two
oceans opened. in consideration of the
great capital the company may have
invested in the enterprise and the
good will and ability 1t may AVE
shown and the difficulties encountered.
the republic binds itself to grant a new
extension"
The phase events OF main force" IS
indefinite. II is true, but the idea ep-
parantlN IA 70 give tho rnnnanv the