THE TEHUANTEPEC SHIP-RAIL WA F. 605 



ENGINEERING. 



THE TEHUANTEPEC SHIP-RAILWAY. 



Captain Eads' new bill will be presented to Congress very soon with a few 

 important changes likely to render it more acceptable than before. As explained 

 by Capt. Eads himself, these changes are as follows : 



" In the first place, in consideration of the guarantee which we ask from the 

 Government, the Ship-Railway Company agrees to transport vessels belonging to 

 citizens of the United States or Mexico at one half the established rates both for 

 passengers and freight. Secondly, the Ship-Railway Company agrees that if at 

 the end of ten years, it should be found that the earnings of the road will pay 

 more than eight per cent dividends on its capital stock of $75,000,000, the Com- 

 pany will, at the request of the United States Government, reduce its rate of 

 tolls so as to keep its dividends down to eight per cent. Thirdly, the Ship-Rail- 

 way Company agrees that at any time during the existence of the guarantee 

 (which expires in fifteen years) if the Government elects to guarantee six per 

 cent dividends on the entire stock of the Company, it will carry the ships of the 

 citizens of the United States across the Isthmus without any charge whatever." 



He further said in regard to the discrimination proposed between the vessels 

 of the United States and other countries ; 



"Careful estimates have been made by able experts in England, which es- 

 tablishes the fact beyond question that the cargoes of fully loaded ships can be 

 transported by railways across the Isthmus at seventy-five cents per ton. During 

 the past season from $19 to $21 per ton have been paid as the ruling rates on the 

 grain from California to Liverpool by way of Cape Horn. Some of the owners 

 of the ships engaged in this trade have assured me that they would cheerfully pay 

 $6 or $7 per ton for crossing the Isthmus. The road could make handsome 

 dividends by charging all vessels, except those of the United States, $3 per ton, 

 and half that price on our own ships. The commerce of the world, at that price, 

 would be immensely benefited, while the discrimination in favor of American 

 commerce would act as an immense stimulus in restoring our ocean marine to its 

 former magnitude. I have no doubt that if American commerce were carried 

 absolutely free, $3 per ton on all foreign commerce requiring the use o fthe Ship- 

 Railway, would be amply sufficient within five years after the completion of the 

 road to pay six per cent dividend on its capital. 



"If the United States assumes to exert a controUing influence over the 

 American Isthmus, one of the strongest measures it can possibly adopt to sustain 

 such a position will be the prompt encouragement of the construction of an 

 American ship-transit by American enterprise, and in American interest. She 

 cannot maintain the respect of the world at such a period as this if she places any 



