The San Francisco call., 1899-10-13
SAN FRANCISCO
DROPPED MONEY
IN THE CANAL
Right to Dig Ended on
Tuesday.
BONDS BECAME WORTHLESS
TWO HUNDRED THOUSAND THE
LOCAL LOSS.
Funds Were Subscribed During the
Period of Enthusiasm When
the Outlook Seemed Bright
for Nicaragua Ditch.

During the present week Nicaragua
canal securities to the amount of $500 900
or upward, held by San Francisco mer-
chants mainly, have become Valueless.
That amount approximately represents
the actual cash help San Francisco gave
to the Nicaragua canal, in addition to
years Of hard work to promote that pro-
ject. No one says anything about the loss,
for It has been foreseen for some time
that it was inevitable. The concession
under which Warner Miller and his asso-
ciates operated until the funds gave out
expired by limitation last Tuesday.
Under the concession given to the Eyre
Cragin syndicate, Nicaragua is estopped
from entering into any dicker for the re-
newal of any contract with the Warner
Miller or any other companies. The Eyre
Cragin contract is in actual force. The
stocks and bonds issued by the Nicaragua
Construction and Nicaragua Maritime Ca
nal companies were necessarily based on
the possibility of completing the canal. In
cash something like 50 900 has been ex-
pended on the ditch. Now the exclusive
privilege to build a canal in Nicaragua
has passed into other hands and the new
contract runs for 500 years.
1t will be recalled that Senator Miller
visited this city and opened headquarters
for the taking of subscriptions for Mica
ragua canal securities few years ago.
Local subscribers, in common with many
subscribers in the East, who took bonds
bonus a certain proportion of stock Of
the Maritime Canal Company. The Con-
struction Company and the Maritime Ca
nal Company were controlled by the same
men, and Warner Miller was the head of
the enterprise. There was much local en-
thusiasm upon the occasion of that visit
of Senator Miller. Committees of citizens
co-operated with the Chamber of Com
merce, which manifested lively interest
in the work. One large business house
took securities to the amount of $4,000
Others subscribed lesser amounts
1t is difficult to get at the exact total of
of California acted in a fduciary capa--
city, but subscriptions were taken Of
which the bank had no knowledge. The
prospect for building the canal then
ment was at the height of its local popu-
larity. Had other parts of the United
States responded as well propOrtionately
as did San Francisco the necessary funds
might have been raised. They did not do
so and Congress failed to support the en-
terprise and it has failed for the present.
The San Francisco bond subscriptions
were not total loss. The bonds carried
mum, and this interest has been regularly
paid. Most of the subscribers invested
because OF public spirit. At the same time
the investment looked to be a very fair
one. Warner Miller and his associates
worked under the Cardenas-Menocal con-
tract. The following extract from the
contract made between the Government
of Nicaragua and Eyre-Cragin tells Of
ficially the fate of the first named con-
tract:
It Is understood. for the purposes of this
contract that the Cardenas- -Menocal contract
shall cease on the 9Th day of October 1Sg9 and
take effect without necessity of further ac-
tion declaration or law, on the 10th day of Oc-
and Cragin, their heirs or assigns, obtain the
rescission of the Cardenas- -Menocal contract.