The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-12-21

Inc Canal DeDhpo IN the senate.
The Nicaragua canal question has been
| undergoing discussion and calculation for
several days in the Senate, and we shall try
to reduce to as few words as possible the
main facts Of the situation.
In President MoKNLEY's annual message
he warned Congress that II the advantages
Of the present status and the labors OF the
past are not to be lost, there must be
| definite action at the present session; and
| the President expressed what we believe to
be the almost unanimous opinion Of the
American people when he added that our
national polioynow more imperatively than
ever requires the control OF the canal by
the United States Government.
The time limit for the completion OF the
canal under the concessions from Nicaragua
and Costa Rica held by the Maritime Canal
Company expires on the 9th Of next 0c-
tober. Financially as far az that corpo-
ration is concerned, and physically q far
as the task itself is concerned, the
work cannot be completed during the
life OF the present concession. It Is
proper to say that Senator MORGAN main
tains that the Maritime Canal Company's
concession does not necessarily expire at
the time specified. His argument, how
ever, on that part Of the question is not
very clear.
Anew contract or concession. known as
the Eyre-Cragin concession, was obtained
from Nicaragua by another party Of promo
tiers, Of whom the Hon. WILLIAM r. GRACE
is the principal, on Oct. 81, 1898, one day
before the former Government Of Nicara-
qua dissolved or was merged into the prob
ably short-lived federation with Honduras
and Salvador known as the United States Of
Central America. The Eyre-Cragin or Grace
concession grants in perpetuity the exclu-
sive right to construct and operate al in
teroceanic canal through the territory Of
Nicaragua after the 10th Of next October,
or sooner than that II the holders Of this
concession shall meanwhile acquire the res
idue Of the rights Of the Maritime Canal
Company under the old concession. This
new association has nc contract with Costa
Rica, whose territory touches part Of the
route Of the proposed canal.
The Maritime Canal Company wants to
dispose Of the controlling interest Of its
stock to the United States, practically turn
ing over the canal to the Government under
the present concession and receiving com
pensation for past investments and services
to the amount Of about $11,ooo,ooo. Ac-
cording to the plan proposed by the ad-
vocates Of the Morgan bill, now before
the Senate, the United States Government
would proceed to build the canal as the
controlling power in the Maritime Canal
Company, and to exercise the rights of that
company hereafter during the ninety-nine
years and renewal period Of another ninety
nine years covered by the old concession;
provided. 1--WE suppose, hat the Government
succeeded in showing that the concession
does not expire next year, or in procuring
an extension beyond the time limit now
fixed at the 9th OF next October.
Mr.. GRACE and his friends want the Gov
eminent to guarantee $50, 0oo, 900 Of bonds
for the construction Of the canal, taking In
exchange a second mortgage on the prop
erty, o~ne-quarter Of the stock OF the com
pany they propose to organize. and the
right to appoint five out of fifteen directors,
the control remaining in private hands.
Brushing aside speculative schemes and
private attempts to profit by the intention
Of this nation to put a canal through the
isthmus Of Nicaragua, the alternative
course for the Government would be to let
the old Cardenas-Menocal contract, owned
by the Maritime Canal Company, lapse by
Its own limitation, to treat the so-called
Eyre-Cragin contract as nil, and to proceed
to direct negotiations with the Central
American Governments, based on the treaty
Of 1865 with Nicaragua, for the construc-
ton Of the canal without any Intervening
corporation.
That treaty Of 1868 Is yet valid. It is
the foundation Of the Cardenas-Menocal
concession, as OF the so-called EyreCragin
concession; and 1t does not lapse with the
time limit Of any concession whatsoever to
private parties. This treaty Of 1868, neRo-
tiated with Nicaragua by President JOHN
SON, and ratified by both Governmental,
grants to the United States the right Of
transit between the oceans by any route
which may hereafter be constructed; 1t de-
wolves upon the United States the duty OF
protecting the route Of communication and
guaranteeing its neutrality and 1t permits
the United States to protect the lives and
property of American citizens along the
canal by armed force, In case of unforeseen
or imminent danger, ever without the con-
sent Of Nicaragua.
This treaty right, as we have remarked,
depends upon no concession subsequently,
granted to anybody. And Immediately
after the Grace syndicate had procured the
so-called EyreCragin concession OF Oct.
81. 1893. our Department Of State, through
Minister MERRY. promptly protested
against any change In the status OF the
canal question.
The remaining feature OF the question
which 1t Is necessary to note is the Clayton
Bulwer treaty Of 1850 with Great Britain.
This provides. among other things, that
neither Great Britain nor the United States
shall over obtain or maintain exclusive
control over the Nicaragua Canal, or fortify
the same. The exact amount of vitality
left in this treaty by certain transgresslons
OF the other contracting party has been a
subject Of controversy for years, and diff
ferent Administrations have entertained