The Topeka state journal., 1898-10-17
A MIXED UP AFFAIR.
Many Obstacles in the Way of Build
ing the Nicaragua Canal

n 4Managua Nan e ~ Ni;caragGga Oct. 17-Negsrs
of the firm of w. R. Grace & Co. and
Frank s. Washburn of New York have
aTTiyed arrived at this Gapital. The object of their
authority to attempt to organize COM
tfmated at s1O0. COZ, 600 gold, to construct a
canal across Nicaragua President Ze-
the acting minister of public works in or
der to ascertain what they propose to ac-
cOmplish and what guarantees they will
offer in regard to the proposed eonstruc-
ton of an interocean canal across the pc
ninsula of Nicarag qua. There are how
ever, several obstacles in the way at pres
ent that appear inSuperable to the organ
ization of a new company with concessions
that would attract and satisfy capitalists.
One of these is the fact that the Mari
time Canal company of Nicaragua is still
alive and that its charter is unimpeach-
able and is to remain in force until OctO-
Der 1899, according to the company but
only until October, 1888 as claimed BY the
government of Nicaragua However, the
Company has a strong claim to many
charter in the fact that, owing to the nu-
in the country since the granting of the
charter in 1887, the people have been un-
settled by the inf1iction of heavy fines.
forced loans. imprisonment and impress
ment, by one political party or another,
the case Of the iaboring Class and causing
thousands of the natives to flee to other
work like the cutting out of a canal chan
mel was possible under the circumstances.
Under the contract held by the company
the government of Nicaragua is obligate
to keep at the canal works a police force
sufficiently strong to protect the contract
ors engineers and labOrers and guard the
machinery, edibles and supplies. This
force was maintained at the storehouses
and workshops at GreytOwn, when work
on the canal was commenced but sub
sequently, owing to the fears of revOlu-
tiOnary troubles in western Nicaragua
the government called off the police at
the canal for duty elsewhere and then Nj
caragua'S S protection ended.
Even if the existing concessions to the
Maritime Canal company of Nicaragua,
chartered by the government of the Unit
ed States, were abrogated there comes to
to to the Caribbean and Pacific Transit
company, limited, of Liverpool, England,
for the exclusive right of steam naviga-
ton on the Rio San Juan del NOrte for 30
timber. cts. This company desires to con-
troll not only interocean transportation
across Nicaragua, but claims the privi-
lege, in its charter, to build and operate a
system of railroad and steamboat trans
pOrtatiOn sufficient to also control the in
terror transportation of the country. With
such privileges the English company is
not likely to sell out to a new concern,
even if the latter succeeded in having the
existing charter of the Maritime Canal
either, that the government of Nicara qua
will grant a canal constructing charter or
concession to any new company until the
government is secured by large sum
deposit as guarantee and equally large
sum in gold, as a bonus, together with a
the insertion of clauses in the contract
placing the entire control of the company
under the laws of Nicaragua and binding
the company not to appeal to its national
pute between the company and the gov
0rnment of Nicaragua.