The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-12-14
LETTERS READ BY MORGAN.
Minister Merry's Protest and W. IL.
Grace's Pr0specfus.


| WASHINGTON. Dec Bat the opening
of the debate on the Nicaragua canal bill
| in the Senate to-day Senator Morgan had
read a letter from the secretary of state
| transmitting Minister Merry's statement OF
| his representations to President Zelaya, of
/ Nicaragua, concerning the canal conces-
sions and also a statement made by Hon.
W. r. Grace on behalf of the syndicate
which has recently obtained a concession
| from Nicaragua in antagonism to the Mari
time Company. The letter of Minister Merry
to Secretary Hay says:
1t is my duty to further inform you that
my telegram To Consul Donaldson request
ing him to personally present your remon-
STRANGE to the President (of Nicaragua
reached him after the option to the canal
SPECTATORS had been signed, but fully one
day before the Nicaraguan Congress- that
was specially called to confirm it. passed
upon II favorably. am informed that il is
an option for one year only, but hope soon
to send you more precise information in ref
erence thereto
In letter dated San Jose Costa Rica,
get. y, ISIS, TO General j. Santos Zelaya,
President of Nicaragua, Minister Merry
said: j have the honor to advise that
have this day received the following cable
from the government of the United States:
You will represent the great expectancy OF
continuing the present status tof the Mica
ragua canal question: until Congress shall
nave had opportunity to act and remon-
strate against any arrangements which may
constitute new conditions for those now ex-
listing. Under these Instructions | have to-
day telegraphed the United States consul
at Managua requesting him to present the
remonstrance of the United States govern
ment against any change of the conditions
go. a. a. 81
tion trust that your Excellency will de-
eide it in the interest of the country which
intrusts it's destinies TO your able and
patriotic guidance, to accede to the policy
| herein suggested so important to the future
development and prosperity of Nicaragua
and as due TO the friendly relations between
prr1V11D ont md nj ~
the United States, which it has been my
special endeavor to promote. / may be per-
mitted to add my personal assurance of
sincere desire TO use every honorable infius
ence to assure your Excellency the proud
record of important and patriotic aid in
opening the ocean highway for the world
commerce through beautiful Nicaragua"
The letter of William r. Grace is dated
Dec. 2 1898 and after asserting that the
Cardenas-M enocal concession had been for
feited, and that the concession granted Frye
and Cragin would be effective in October,
says: The syndicate Is satisfied that 1t
will be able to secure money to complete
the canal. 1t holds that the canal IS an
enterprise from which private capital should
ion of those who fear having such high
way in private hands, the syndicate as will
ing to arrange basis on which the United
States government would control the tariffs
and participate in the management of the
canal, and Mr.. Grace submits the following
terms: The Interoceanic Canal Company
to be organized under state charter. capital
to be 500, 900 COO with the right to issue
mortgage D0ndS TO the amount or SlJOOUu,OUJ
at per cent. and a sinking fund of one
half of ! per cent. after twenty years the
United States government 70 guarantee in
terest at per cent. on $500O0.0O0 of the
mortgage indebtedness of the company, TAX
ing a second mortgage as security, the guar
antee not to be given until the company has
invested 81 100000 in the enterprise. The gov
eminent can appoint five directors of board
of fifteen. The syndicate will consent to
the disbursement of the money raised
the government guarantee, to be subject TO
audit by the government.
In conclusion Mr.. Grace says the syndicate
is DESTROYS Of meeting the wishes of the
President in every possible way and to al
lay the fears of people who think the great
work should not be left to uncontrolled pri-
vase management.