Idaho County free press. [volume] (Grangeville, Idaho Territory) 1886-current, 1897-01-29
CANAL SCHEME IS DEAD
NICARAGUA CLAIMS CONCESSIONS
SHOULD BE CANCELLED.
Central America Also Demands
About Six Million Dollars for
Right of Way.

Washington, Jan. 22.-The document
which formed the basis of Senator Nor
gan's remarks in the senate on the Mic
araguan canal today was a communica-
ton from Senior j. d. Rodriguez. minister
of the Greater Republic of Central Amer
lea. 1t was a typewriter paper of sew
eral pages. dated at the Greater Repub-
lies legation headquarters in this city
January Is, 1897 1t was presented to the
senate by Senator Sherman as chairman
of the committee on foreign relations,
having been forwarded to him by Secre-
tary Olney.
Senior Rodriguez opens his communica-
ton by saying that as several bills rela-
tive to the construction of an interoceanic
canal through Nicaragua have been for
some time pending before both houses Of
congress, his government recently in
structed him to examine them and to
make, under certain conditions, suitable
representations to the secretary of state.
He says he has accordingly examined
the various bills, and finds that they are
at variance in matters of detail with the
stipulations of the contract of 1887, be-
tween Nicaragua and the canal company.
He asserts that the bills before congress
effect a transfer to the government of the
United States, making this government
the absolute owner.
He also points out other facts which
are, he says, at variance with the con.
tract, and proceeds to say: among the
benefits which Nicaragua reserves to her
self is per cent Of the shares, bonds.
certificates or such other obligations as
the company may issue with view to
raising capital.
IF the company were to issue 800, 0O0,-
900 or $3.50 900, 900 worth Of bonds In order
to meet the cost of the work. which bonds
would have to be considered as capital
or left out of the contract. Nicaragua will
be entitled to per cent by virtue of the
stipulation, but the bills leave no door
open to such a possibility. nor do they
allow her any participation in the issue
which Is to be made In order to pay for
the work already DONE"
Term of Contract Expires.
Senior Rodriguez then calls attention to
| the fact that the contract obligated the
completion of the canal within three
years; that term expired long ago. The
bills establish nothing on this other point,
and Nicaragua's rights In this matter
| might thus be annulled in consequence of
| their silence. By the plan involved In the
new form which the bills devise for the
enterprise, the present company Is cxtin-
guished, and nothing remains of it In its
| relations with the enterprise save the
shadow of a personality represented by a
vote In the board Of directors of II mem
bers, while In It's relations with Nicaragua
it may always claim full personality as
| the holder of the concession, although
having none Of the means necessary tC
enable 1t to meet its obligation.
| Wants 1t RenOunced.
| The document closes in the following
words: at seems evident that the com
pany Is unable to raise money to fulfill Its
contract unless the United States OF
America furnishes 1t therefor; and since
that contract excludes the possibility Of
| attaining that result, the undersigned
having been duly authorized to do so, pro
poses to his excellency the secretary o
state that the two governments, relying
upon the favorable disposition of the gov
erment, shall come to a strict understand
ing on the subject on the basis Of the Sa
vallah- Frelinghuysen treaty with sucl
notifications as may be agreed upon, ant
endeavor to reach a just arrangement
with the Maritime Canal Company of Mic
laragua, SO 1t may renounce a concession
whose conditions it Is unable to fulfill"