The Advocate and news., 1898-11-09
by The Saturday Evening Post, of Phil
adelphia, and will appear serially in that
weekly, beginning in an early issue.
The Nlcaragua canaI Question.

AASld dAu AiOuA w says
Action has been taken by the admin
istration looking to the maintenance Of
the status quo with respect to the con-
cessiOn Of the Maritime Canal Company
for the construction OF the Nicaraguan
canal
Secretary Hay has Cabled instructions
to Minister Merry under which, through
Consul Donaldson, at Managua, remOh-
strances will be lodged with President
Zelaya against the concession his gov
ernment has awarded to Messrs. Eyre
and Cragin, representing an American
syndicate, for the construction Of the
canal upon the expiration Of the contract
held by the Maritime Company.
Information in the possession Of the
authorities is Of very meager character,
due to the fact that all information re-
ceived from Minister Merry has been by
cable and that he has been unable to
send the text Of the agreement entered
into with Messrs Eyre and Cragln. Al
though II has been reported that the
Nicaraguan Congress has ratified the
provisional agreement" submitted to 1t
by the President, the authorities are
hopeful Of preventing final approval be-
ing given.
Results of the call Consul Donaldson
will make upon President Zelaya cannot
be foreshadowed by the officials, but in
some circles 1t Is not believed that II
will have any important effect. The Pres
ident and members Of the Cabinet are Of
the opinion that the new syndicate has
not entered into the agreement with the
NiCaraguan government to build the ca
nal, but to make q deal with the Mari
time Canal Company under which the
syndicate will receive a certain sum for
Its rights.
So far as the administration is con-
cerned, its objection to transfer of the
concession at this time lies in the bad
effect it will have upon Congress, which
would hesitate to vote the government
aid so necessary to the construction Of
the canal.
Private enterprise will never build
that great waterway" said an official,
last night. "A government will have to
build it, and that government will be the
United States. So far as the administTa-
tiOn is concerned, 1t is not question OF
what company has a contract, but the
President is pledged to the construction
of the canal He believes 1t to be ne
cessity, and he therefore desires that the
status quo be maintained, in order that
when the subject is discussed by Con-
gress no unnecessary complications may
exist which could be used to the disad-
vantage of the proposition for the gov
ernment to build the canal. Authorities
are gratifed at President Zelaya's an
nOuncement that the concession Of the
Maritime company will not expire until
October 8, 1899, and it is intended that
every effort shall be directed to secure
the passage by Congress Of one Of the
measures providing for government aid
in the construction Of the waterway.
When last year the department learned
that the Nicaraguan government was
considering the advlsability Of declar-
ing the Maritime company's concession
forfeited, an instruction was sent to Mr..
Baker, then United States Minister at
Managua, directing him to "interpose
discreet remonstrances for protection of
rights of this American corporation"
President ZeIaya assured Mr.! Baker
JDhJ uO buCu lHLcuLlOu CAlolCu1 duu IAdb
he proposed to act in absolute good faith
toward the Maritime company and the
United States. Minister Baker thus closes
memorandum which he prepared for
President Zelaya the day following the
interview he had with him:
"In conclusion, will express my graf
ification at the whole tone Of friendh-
ness toward the prosecution Of the canal
enterprise under American auspices
which characterized your conversation
with me yesterday, and especially for the
personal assurance you were pleased to
give me that the franchise Of the Mari
time Canal Company would not be in
terfered with by the Nicaraguan govern
ment till 1t lapses by it's own limitation
in October, 1899, unless, to use your own
words, the government Of the United
States may desire to make contract di-