The herald., 1898-12-14
MESSAGE FROM MERRY
CONCERNING CONCESSIONS FOR
A CANAL
GRACE'S LETTER IS GIVEN
In Which He Endeavored to Make
New Deal With President
Zelaya
Associated Press Special Wire

Associated Press Special Wire
WASHINGTON, Dec. l3.-At the open
ing of the debate on the Nicaragua canal bill
in the senate today, Senator Morgan had
read a letter from the secretary OF state
transmitting Minister Merry's statement of
his representations to President Lelaya OF
Nicaragua, concerning the canal concession,
and also a communication made by Hon. w
r. Grace in behalf of the syndicate which
has recently obtained concession from
Nicaragua in antagonism to the Maritime
company.
The letter Of Minister Merry to Secretary
Hay says:
my telegram to Consul Donaldson, request
ing him to personally present your remon-
strance to the president (of. Nicaragua
reached him after the option to the canal
SPECTATORS had been signed, but fully one
day before the Nicaraguau congress, that
was specially called to confirm it, passed
upon it favorably. | am informed that it
is an option of one year only, but nope soon
to send you more precise information in
reference thereto"
In a letter dated San JOSE. Costa Rica,
dent of Nicaragua, Minister Merry said:
Il have the honor to advise that | have
this day received the following cable from
the government of the United States: You
will recognize the great expediency of con-
tinung the present status of the Nicaraguan
canal question until congress shall have had
opportunity to act and demonstrate against
any arrangements which may substitute
new conditions 80 those now existing
Under these Instructions, | have today
telegraphed to the United States consul
at Managua requesting him to present the
remonstrance of the United States govern
ment against any change OF the conditions
rop oct aI with tha canal
cession. l trust that your excelhency will
decide it to the interests oil the country
which entrusts its destinies to your able
and patriotic guidance to accede to the pol
icy herein suggested, so important to the
future development and prosperity of Mic
aragua, and as due to the friendly relations
between your excellency's government and
that of the United States, which, it has
been my special endeavor to promote.
may be permitted to add my personal as
surances OF a sincere desire to use every
honorable influence to secure to your ex-
cellency the proud record of important aid
in opening the ocean highway for the
worlds commerce through beautiful Me
aragua."
The letter of William R. Grace is dated
December 2, 1893, and after asserting that
the Cardenas Menocal concession had been
forfeited and that the concession granted
Eyre and Cragin would be effective in Oc-
tober says:
The syndicate is satisfied that it will be
able to secure money to complete the canal.
1t holds that the canal is an enterprise from
which private capital should not be elm
mated, but respecting the opinion Of those
who fear having such highway in private
hands, the syndicate is willing to arrange a
basis on which the United States govern
ment would control the tariffs and partici-
pate in the management Of the canal, and
Mr. Grace submits the followingterlhs:
The Interoceanic Canal company to be
organized under a state charter, capital to
be $l00, 0,0C0,000, with the right to issue mort
gage bonds to the amount of $3.50 200, 900 at
per cent and a sinking fund of one-half of
per cent after twenty years; the United
States government to guarantee interest at
3 per cent on $50, 1000, 600 of the mortgage in
! Idebtedness, taking a second mortgage as Sc
curity, the guarantees not to be given until
the company has invested 81 100000 in the
enterprise; the government can appoint five
directors of board of fifteen; the syndi-
cate will consent to the disbursement of the
money raised upon the government guar
antee, to be subject to audit by the govern
ment.
In conclusion, Mr.. Grace says the syndi-
cate is desirous of meeting the wishes of
the president in every possible way, and to
allay the fears of the people who think the
great work should not be left to uncon-
trOlled private MANAGEMENT