ing the plant or extending the privilege for another equal period, on the expiration of which the plant becomes city property without compensation.

Railroads.-There are in operation two lines of railway, one between Corinto and Momotombo via Chinandega and Leon, and one between Managua and Granada via Masaya, measuring together 159 kilometres in length. Lake Navigation.-In July the Government made a contract for the establishment of a new line of steamboats to ply on the lake between Managua and Momotombo; the first steamer to begin its trips in eighteen months, and no steamer of the line to register less than 150 tons burden.

Commerce. During four biennial periods the total foreign trade of Nicaragua was as follows: $8,699,680 8,410,188 The imports and exports during the last two were distributed as follow:

1879-'80. 1881-'82..

Import Export...

$6.644,816 1888-'84 7,884,662 1885-'86.

MOVEMENT.

Total trade.

Education. In 1887 there were 233 common schools, attended by 9,033 pupils, who were taught by 256 teachers, and 10 colleges, attended by 998 students, taught by 64 professors. The painter, Don José Maria Ibarra, is about to open a school of arts at the capital; simultaneously a young ladies' educational institute is to be established. Dating from May 1, the academies at Leon and Granada were changed to national universities. The Government in 1888 spent $1,940 monthly in aid extended to colleges and universities, and $5,362 per month for common schools; adding thereto other subsidies for education, the monthly state aid aggregated during the year $14,046.

Nicaragua Canal.—The apparent collapse of the Panama Canal and the slight interest taken in the Tehauntepec Ship-Canal, bring into prominence the Nicaragua Canal. The Maritime Canal Company of Nicaragua, which had already received a charter from the State of Vermont, received also a charter from the Congress of the United States in February, 1889. After debates and investigations in both houses of Congress, of the most exhaust

ive nature, continued at intervals throughout a period of more than a year, this act of incorporation was signed by President Cleveland in the same month, after careful examination by himself and cabinet of the constitutionality of the measure, and of the claims and objections of previous concessions. This measure is in line with the joint resolution of the Senate Committee on Foreign Affairs that the ship-canal should not be under European control. It requires the president, vice-president, and a majority of the directors of the company to be citizens of the United States.

The first concession to build a ship-canal by the route now proposed was granted by Nicaragua in 1849 to the Atlantic and Pacific ShipCanal Company. The original company was succeeded by the Central American Transit Company. This organization is still in existence, and its members claim that it has rights prior to those of any other concern, which must be respected by any company that attempts to construct a canal on the route covered by the concessions. These claims have been frequently denied by the Government of Nicaragua, and the action of the United States Congress and President in granting national approval to the present company confirins this denial. A report was made giving the cost and description of the route of a ship-canal from the harbor of San Juan Del Norte, or Greytown, on the Atlantic, to the harbor of Brito on the Pacific, in Nicaragua. Two other lines were surveyed, but were deemed impracticable. The estimated cost of the entire work was $31,500,000. The undertaking was carried on for several years with considerable energy. It was purely an American enterprise; and it therefore encountered considerable opposition through representatives of foreign governments. Complications with political intriguers led to assurances by the Government at Wasbington, in 1858-59, that the interests of citizens of the United States would be protected. The Bulwer and Clayton treaty was negotiated partially in behalf of the company's interests. In 1862 the Government of Nicaragua confiscated the property of the company. Through the intervention of the United States minister, the property was returned. Owing to the civil war in this country the company was left to protect its own interests, and in 1863 the Government of Nicaragua took away the exclusive privileges held by the company, and ratified a contract with Capt. Pim, who represented an English company that proposed building a railroad across the Isthmus. After the exclusive right had been taken away and the charter of the company modified, it made a new contract with Nicaragua, and proceeded with its work. In 1868 the company's steamer on Lake Nicaragua was seized by the troops of the Government, the franchises of the company were declared forfeited, and all its property was seized for debt and sold. This last act drove the company's employés out of the coun

28 to 130 feet. There are 90 miles of lakenavigation, very wide and deep. From the point where the canal leaves the lake on the west to Brito, 17 miles, three locks are proposed. 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 the enlarged 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 Greytown 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 the 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 projectors: 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 shipping 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-chambers is 650 feet, and the width 70 feet-dimensions 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 foundations, 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 consists of a water-tight compartment, in which shifting water-ballast aids both in raising and lowering the gate, while the moving force employed is hydraulic. The gate moves on rails above the floor of the lock.

In May, 1887, the Government of Nicaragua 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 opening 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 canal 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 prescriptions established by treaties between Nicaragua and other powers or by international law; but entrance to the canal will be rigorously prohibited to vessels of war of such powers as may be at war with Nicaragua or with any other of the Central American republics. 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 privileges as the State. Alternating plots of land will be deeded to the company as the work progresses. It is required that at least $2,000,000 must be expended during the first year of construction. 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 company may issue, per cent. of the total amount of the issue. The Government's share shall in no event be less than $4,000,000. The Government, in its capacity of shareholder, shall have the right to appoint one director. From the receipts of the enterprise the company sball 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 shareholders 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 republic 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 mechanical works belonging to the company, its floating capital and reserve fund, as also the lands ceded to it by the State. But the company 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