The times., 1898-12-08
CENSURE FOR NICARAGUA.
Declared to Have Violated Ameri-
can Condolences.

can Condolences.
Senator Morgan. Chairman of the Com
mittee on. the Nicaragua Canal, yesterday
that committee at the last session of
Congress. and which is now on the calen-
dar of the Senate.
The report states that since the last
adjournment the committee has made
further Inquiry into the facts involved
and finds that the Nicaragua government,
anticipating the alleged expiration of the
time for the construction of canal
under concession, of that government to
the Nicaragua Canal Association. and de-
Gliding in advance that a forfeiture of
that concession will occur in October.
1893, has assumed to grant another con-
cession to other persons for a canal to
connect the two oceans. The latter con-
cession covers the same ground and uses
the same orders that are conferred by
the concession to the Maritime Canal
Company.
The serious consequences likely to re-
suit to the United States from this unpre-
.cedented and ,unwarranted action of the
late government of Nicaragua. and the
evident purpose to force the United States
| into the payment of a large sum as COM
pensation for future consent to construct
canal, requires the committee to present
the grounds on which 1t insists that this
proceeding on the part of Nicaragua is
! without support in law. justice or equity.
and that 1t violates the hitherto cordial
relations between the United States and
| Nicaragua.
AT the very moment the report
! states. when the people of the United
States had reached the determination TO
\ construct the Nicaragua Canal. and
when 1t was seen that the concession of
| citizens and to corporation accredited
| by act of Congress and under its control
/ and which furnished the only ground on
which we could move with certainty and
/ security to accomplish this great nation
| al work, the resolution was reached by
| Nicaragua to cut the ground from cnder
our feet by declaring this concession for
feited and granting a different concession
| to other persons combined in a syndi-
| cate"
| The report then gives the history of the
| concessions, from which 1t deduces the
declaration that Nicaragua cannot de-
| clare a forfeiture of its concession with
| out the consent of the United States and
of Costa Rica-
| The report condemns the action of the
| cragin-Eyre Syndicate in very strong
terms saying that its obvious object was
TO obstruct the national policy in order TO
obtain bonus from the United States or
from the Maritime Canal Company for
yielding their concession.
| The expiring government of Nicaragua
| is also condemned for attempting to COIN
pei an apparent breach of the Maritime
| Canal Company's agreement in order to
| obtain money for the sale of other con-
| cessions.
! The report points out that everything
which has been done by the United States
engineers in surveying the line has beer
| done under the Cardenas-Menocai con
| cession. held by the Maritime Canal Com
pany, and that nearly one milliol dollars
has been spent by the Government ir
| these surveys.
The hostile action of the NicaraguaI
government to all companies holding con
cessions for the construction of a cana
since 1857 is called to attention, and th'
conclusion is reached that-n new com
| pany can construct the canal withou
| the consent of the United States anC
Costa Rfca, and that the government o
| Nicaragua has no right to destroy th
property rights of the concessioners.
1t appears by the report to be th
opinion of the committee that the conces
sion granted by President Zelaya to tn
Cragin-Eyre syndicate was for the pur
pose of preventing the control of tn
teanal by the United States. and to plac
it directly under the control of the Mica
lraguan government A similar objection i
urged against the Panama Canal. whicl
would be controlled by French stock
holders.
The natural advantages as between tn
Panama and Nicaraguan routes for tn
canal are held by the committee to be de
cidedly in favor of the latter route.
| NdluIt piONiNtt III
what the skill and labor of man will fa
to initiate in Panama." concludes the re
port.
Senator Morgan also presented a substi
tute for section of the bill for the con
struction of the canal, which follows:
'In consideration of the provisions o
the act and as soon after its acceptanc
as practicable. the Maritime Canal Com
pany of Nicaragua, shall call in all o
the capital stock of the corporation here
tofore issued. except that issued to tn
| Republics of Nicaragua and Costa Rica
in their respective concessions, and shall
| also redeem all bonds heretofore issue,
by said company. and shall satisfy an,
poration, and that in lieu thereof ther
shall be issued to such persons as ma
be designated by the stockholders of sai
company. other than the Republics o
designated by a majority thereof, guaran
teed bonds of the Maritime Canal Com
pany of Nicaragua, provided for by tn
| present bill. to an amount not exceedi.
the sum of s5,0oO.Ooo; said amount to b
determined by the commissioners on p in
ciples of justice and equity so as 10 p. c
vide a fair compensation for the propert
rights privileges, and franchises no,
owned by the said company. and for til
reimbursement for all expenditures hert
tnfora ynoda hy the said cOmnany in fb