The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1897-01-28
CAUSED ALL THE TROUBLE.
Minister Rodcriguez's Canal Communi-
cation to Secretary Olney.

Washington, Jan. 22.-The document
which formed the basis of Senator Nor
gan's remarks in the senate on the Mica |
raguan canal bill was communication |
from Senior Rodriguez. minister from
the Greater Republic of Central America |
1t was typewriter document of sew
cral pages, drawn up at the legations
legal offices in this city. 1t was pre-
| scented by Senator Sherman as chairman
of the committee on foreign relations,
having been forwarded by Secretary o.
| ney.
Senior Rodriguez opened his communi-
cation by saying:
| AS several bills relative to the construc-
ton of an intcr-oceanic canal through
| Nicaragua have been for some time pend
| ing before both houses of congress, his
government recently instructed him to OK
anime 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 April II,
1887, between Nicaragua and the canal
company. Then he calls attention to the
fact that the eighth article of that con-
tract provides that the concession shall
not be transferable to governments or to
foreign powers and that article SO pro-
vides that any contravention of the slip
ulation shall entail forfeiture of the
contract. He asserts that the bills be-
for" congress effect a transfer to the gov
eminent of the United States. making
this government the absolute owner. He
also points to other facts, which are, he
says. at variance with the contracts. and
proceeds to say:
among the benefits which Nicaragua
reserves to herself is 6 per cent Of the
shares. bonds. certificates or such other
obligations as the company may issue
with view to raising capital. Now
Notwithstanding the fact that the com
pany has made several issues, il has not
fulfilled its obligation and rs the bill says
nothing on this particular point tn Sc
curtics would either be made up in the
new form of organization or be liable tC
troublesome litigation. Nothing, how
ever. is established in the bill in regard
to the shares that will belong to Nicara
qua and it might happen, owing to this
that Nicaragua would get none at all. II
the company was to issue S1OO,WO.OOt
or Si5O,0OO 900 bonds in order to meet
the cost of work. which bonds would have
to be considered rs capital or left out OF
the capital. Nicaragua would he entitled
to per cent by virtue of the stipulation
hut the nil lpuNcS no uOOT open 10 SuSi
possibility nor does il allow her any
participation in the issue. which is to h
made in order TO pay for the work alread,
done"
Senior Rodriguez then calls attention
10 the fact that the contract obliged the
completion of the canal within three
years and says that the term expired Q
long time ago, but the company. notwith
standing the most earnest solicitation
has made no prctense of meeting that oh
legation or Of definitely adjusting the com
pensnton which II ought TO pay in ordel
to bc discharged therefrom. The bill
establishes nothing on this point and Mic
araguas right in this matter might thus
no annullcd in consequence Of their 81
lcncc.
"Ry the plan involved in the new form
which the bill deviSes. the present com
pany is oNtinguishcd and nothing remains
of il and its relation with the enterprises
save the personality represented by thu
vote in the board Of directors. while IL
its relations with Nicaragua il may al
ways claim full personality rs the holde
of the concession. although having nom
Of the motions necessary 10 enable it q
: meet its obligation. Finally il is TO b'
! observed that while the bill contravene
. and sets at naught stipulations FOX IN
: contract, il does not state whetherl I'M