616 



NICARAGUA. 



28 to 130 feet. There are 90 miles of lake- 

 navigation, very wide and deep. From the 

 point where the canal leaves the lake on the 

 west to Brito, 17 miles, three locks are pro- 

 posed. Over this portion of the route some 

 rock-cutting and dredging will be necessary, 

 though the difficulties are not formidable. The 

 canal itself is to be 80 feet wide at the bottom 

 in the deep cuts, and 120 feet wide in th-^ en- 

 larged sections. It is also proposed to enlarge 

 the canal between the last lock and the sea at 

 each terminus, so as to form extensions of the 

 harbors at Grey town and Brito. It is further 

 proposed to overcome the natural difficulties 

 presented in the two harbors by the fluctuations 

 and accumulations of sand by dredging and the 

 use of jetties. The estimated cost of tne canal, 

 according to civil engineer Menocal's figures, 

 is $64,000,000, which includes also electric 

 lighting and railroads for the transportation of 

 canal supplies ; and the time for its completion 

 is fixed at six years. The probabilities as to 

 business are estimated as follow by the project- 

 ors: "According to reports of the Bureau of 

 Statistics, United States Treasury Department, 

 prepared from official data, the vessels that 

 would have made use of the canal if there had 

 been one were, in 1879, of 2,771,886 tons, and 

 in 1885 of 4,252,434, showing an increase in 

 six years of 1,480,548 tons. From this it is 

 estimated that at least 5,000,000 tons of ship- 

 ping would be ready to seek transit through 

 the canal by 1892. With a toll of $2.50 a ton, 

 this would yield a gross income of $12,500,- 

 000. It is believed that $500,000 will cover 

 ordinary operating expenses, as those of the 

 Suez, with much longer actual canal, are only 

 about $1,000,000 per annum. This would leave 

 net receipts of $12,000,000, or 6 per cent, on 

 $200,000,000." The length of the lock-cham- 

 bers is 650 feet, and the width 70 feet dimen- 

 sions capable of admitting every ship afloat. 

 Lock No. 3, which may be divided into two 

 locks, will be cut out of solid rock, but the 

 others are to have timber and concrete foun- 

 dations, and the cavities as they may occur 

 will be filled with, concrete. The question to 

 solve in regard to these locks is the gates, which 

 are of exceptional size. Civil engineer Peary 

 has invented a rolling gate, combining strength 

 with lightness, as well as facility in opening 

 and shutting. The lower part of the gate con- 

 sists of a water-tight compartment, in which 

 shifting water-ballast aids both in raising and 

 lowering the gate, while the moving force em- 

 ployed is hydraulic. The gate moves on rails 

 above the fl >or of the lock. 



In May, 1887, the Government of Nicara- 

 gua granted important concessions, for which 

 the company paid $100,000 in American gold 

 to bind the bargain. The Government binds 

 itself, for a period of ninety-nine years, not to 

 make any subsequent concession for the open- 

 ing of a canal between the two oceans, and 

 also to abstain from granting a concession for 

 a railroad, such as might compete with the 



canal for the transportation of merchandise 

 during the same period. The can:il is declared 

 neutral during the term of the concession, and 

 the transit through the canal in case of war 

 between two powers, or between one or more 

 and Nicaragua, shall not be interrupted for 

 such cause. The transit of foreign troops and 

 vessels of war will be subjected to the pre- 

 scriptions established by treaties between Nica- 

 ragua and other powers or by international 

 law ; but entrance to the canal will be rigor- 

 ously prohibited to vessels of war of such 

 powers as may be at war with Nicaragua or 

 with any other of the Central American repub- 

 lics. The Government of Nicaragua places at 

 the disposal of the company all the lands that 

 may be required, as well as the materials found 

 thereon ; and, in case of the appropriation of 

 property, the company shall enjoy the same 

 privilegesastheState. Alternating plotsof land 

 will be deeded to the company as the work pro- 

 gresses. It is required that at least $2,000,000 

 must be expended during the first year of con- 

 struction. In consideration of the valuable 

 privileges, franchises, and concessions granted 

 to the company by this contract, it is provided 

 that the republic shall receive in shares, bonds, 

 certificates, or other securities which the com- 

 pany may issue, 6 per cent, of the total amount 

 of the issue. The Government's share shall in 

 no event be less than $4,000,000. The Gov- 

 ernment, in its capacity of shareholder, shall 

 have the right to appoint one director. From 

 the receipts of the enterprise the company shall 

 take, in the first place, the amount necessary 

 to cover all the expenses for maintenance, 

 operation, and administration ; all the sums 

 necessary to secure the interest, which shall 

 not exceed 6 per cent., and the amortization 

 of the obligations and of the shares ; and what 

 remains shall form the net profits, of which at 

 least 80 per cent, shall be divided among the 

 shareholders. It is agreed that, after the lapse 

 of ten years after the completion of the canal, 

 the company shall not divide among the share- 

 holders in payment of dividends, directly or 

 indirectly, by issue of shares or otherwise, 

 more than 15 per cent, annually, or, in this 

 proportion, from dues collected from the canal ; 

 and, when it shall appear that these dues yield 

 a greater profit, they shall be reduced to the 

 fixed limit of 15 per cent, per annum. On the 

 expiration of the ninety-nine years stipulated 

 in the concession, it is provided that the re- 

 public shall enter upon possession in perpetuity 

 of the canal and all establishments used in its 

 administration, with the exception of vessels, 

 stores of coal, and other materials and me- 

 chanical works belonging to the company, its 

 floating capital and reserve fund, as also the 

 lands ceded to it by the State. But the com- 

 pany shall have the right, at the expiration of 

 the ninety-nine years, to the full enjoyment of 

 the free use and control of the canal in the 

 capacity of lessee, with all the privileges and 

 advantages granted by the said concession, for 





