The record-union., 1898-12-08
Authorizing an Increase Of Bonds for the
Redemption Of Outstanding Stock.
A Report Also Submitted Arraign-
ing in Severe Terms the Con-
duct Of the Republic of Nicar-
aqua In Granting q Concession
to Construct a Canal to Another
Company Than the Maritime
Canal Company.


tor Morgan gave notice of an amend
ment to the Nicaragua Canal bill, au-
thorizing the immediate Issuance, with
guarantee by this Government, OF
S.: 100000 worth of bonds for the re-
demption of all outstanding stock ex-
cept that held by the Governments of
Nicaragua and Costa Rica, and the
cancellation Of all obligations.
He submitted at the same time a re-
port upon the situation with reference
to the canal, dealing exclusively with
the tact that the Government of Nicar-
aqua granted concession to construct
a canal to another company than the
Maritime Canal Company. He de-
nounced this transaction in severe
terms, upholding the rights Of the Mar
itime Company for the present, and for
an extension of it's concession for ten
years more.
The report arraigns the conduct of
the Republic of Nicaragua, as well as
that of the American citizens securing
the new concession, in most severe
terms, attributing the course of Near
aqua to jealousy of Costa Rica, and
that of the concessionaires to "obstruct
a great national policy in selling out to
a transcontinental railroad company
for the defeat of supposed compet-
itor''
The committee adduces as justifica-
ton of the new report the seriousness
of the situation, saying on this point:
1.-THE serious consequences likely to
result to the United States from the
unprecedented and unwarranted action
of the late Government of Nicaragua,
and the evident purpose to. force our
Government into payment of large
sum as compensation for the future
consent of the Republic of the United
States of Central America to the crea
ton of maritime canal through the
San Juan River and Lake Nicaragua,
requires the committee to present the
grounds on which it insists that this
proceeding is without any support in
law, Justice or equity, and that it vio-
lates the hitherto cordial relations of
the United States with Nicaragua
1t is asserted that in view of the fact
that Nicaragua had made the conces
sion, it was her duty to obtain a con-
cessjon from the Costa Rican Govern
ment. when the claims of that country
are established; but instead of that, It
is pointed out that Nicaragua made a
formal threat to renounce its conces-
sion, if any concession was obtained
from Costa Rica.
Thus the committee concludes, 'by
conduct equivalent to main force, Mic
aragua prevented progress in the work
on the canal, and put a cloud upon the
credit of the company of execution tl.at
could not be otherwise than disastrous"
The committee contends that the cir
of the concession point to
the fact that the concession provides
for a charter to be granted to the
United States. "In this attitude the
committee continues, "the duties and
responsibilities of Nicaragua are very
high, if they do not even rise to the
dignity of solemn pledges and conse-
quent and sovereign responsibilities to
the United States, whose intervention is
sought in the chartering of the corpora
tion.''
1t is then set forth that Costa Rica's
interests in the canal are as great as
those of Nicaragua, "and it follows that
the action of both republics is essential
to the assertion Of the right of either to
claim q forfeiture of the concession. If
claims that the concession
it has granted is forfeited, Costa Rica
has the equal right to assert that it is
not forfeited"
It is then set forth that the United
States is a party to the measure of
building the canal, at the instance of
both Costa Rica and Nicaragua, and it
is claimed that the consent of this
country is also necessary to any pro-
ceeding on the part of Costa Rica look
ing to the forfeiture of the concession
Nicaragua, the committee asserts.
cannot repeal an Act Of Congress
which dedicates the canal and it's con-
cessionary incidents to a corporation
chartered for such great purpose"
Attention is then called to the fact
that the concession provides for the
submission of any dispute to arbitra-
ton, and it is claimed that this provi-
sion operates to prevent any arbitrary
action on the part of Nicaragua.
Dwelling upon Nicaragua's course in
he matter, the committee says: How
his unexampled condition is to be dealt
With otherwise than by an express and
determined attitude on the part of the
United States is a question that carries
with it the danger of serious embroil-
rent in the near future. If Nicaragua
IS not held to the performance of her
igre ement, years will elapse and many
hangers will be encountered before even
! start can be made toward the con-
;truction of a CANAL
OF TROOPS.