The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1898-12-08
Insures Vigorous Work on the
Nicaragua Canal Bill
SENATOR MORGAN MAKES A REPORT
Denouncng the Action Of the Central American Republic in
Attempting to Forfeit the Franchise OF the
Maritime Canal Company

payment of large sum as compensation for
the future consent OF the republic of the
United States OF Central America to the
creation of a maritime canal through the
San Juan river ana Lake Nicaragua requires
the committee to present the grounds on
which 1t insists that this proceeding is with
out any support in law, justice or equity,
and that it violates the hitherto cordial re-
ations of the United States Hlth Near
aqua"
1t is asserted that in view of the fact that
Nicaragua had made the concession, it was
her duty to obtain a concession from the
Costa Rica government when the claims OF
that country are established; but instead of
that, it is pointed out that Nicaragua made
formal threat to renounce its concession
If any concession was obtained from Costa
Rca.
"Thus," the committee concludes, "by
conduct equivalent to main force, Nicaragua
prevented progress in the work on the canal
and put cloud upon the credit of the COM
pany of execution that could not be other.
wise than DISASTROUS
Ihe committee contends that the circum.
stances Of the concession point to the fact
that the concession provides for charter
to be granted to the United States.
III tHlS attitude, the committee con-
tinues, "the duties and responsibilities OF
Nicaragua are very high, if they do not
even rise to the dignity of solemn pledges.
and consequent and solemn responsibilities
to the United States whose intervention is
sought in the chartering corporation.'
1t is then set forth that Costa Rica's in.
terests in the canal are as great as those OF
Nicaragua, "and it follows that the action
of both republics is essential to the assertion
of the right of either to claim forfeiture
of the concession. If Nicaragua claims that
the concession it has granted is forfeited,
Costa Rica has the equal right to assert
that it is not forfeited''
1t is then set forth that the United States
is party to the measure of building the
canal, at the instance of both Costa Rica
and Nicaragua, and it is claimed that the
consent OF this country is also necessary
to any proceeding on the part of Costa Rica
looking to the forfeiture of the concession.
Nicaragua" the committee asserts, "can.
not repeal an act OF congress which dedicates
the canal and its concessionary incidents to
a corporation chartered for such great pur-
poses."
Attention is then called to the fact that
the concession provides for the submission
of any dispute to arbitration, and it is
claimed that this provision operates to pre-.
vent any arbitrary action on the part Of
Nicaragua.
Dwelling upon Nicaragua's course in the
matter, the committee says: "How this un.
exampled condition is to be dealt with other
wise than by an express and determined at.
titude on the part of the United States, is
a question that carries with it the danger OF
serious embodiment in the near future. II
Nicaragua is not held to the performance
of her agreement years will elapse and many
dangers will be encountered before even a
start can be made toward the construction
of canal