The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-12-08
He FavOrs Prompt Cancellation OF All
Securities, Except Those Held by
Nicaragua and Costa Rica.
REPORT ON THE SITUATION
GRACE SYNDICATE CONCESSION VIC
OROUSLY DENOUNCED.
Nicara guR's Contention COmbated
and the Holding of the Republic
to It's Contract Advocated.
Special to the indianapolis journal.

Special to the Indianapolis Journal.
WASHINGTON, Dec. THE Nicaraguan
canal will be pushed to the front in the
Senate without delay and vigorous attempt
made to pass bill for the construction of
the waterway. The House is overwhelming
ly in favor Of the canal, but will make no
forward steps until the Senate acts. The
House can take the matter up and dispose
of it in two three days if time should
crowd it. A majority in the Senate is for
the construction of the canal, but there is
strong opposition to it, which may, by re-
sorting to obstructive tactics, prevent the
passage of bill this short session.
The Morgan bill, an exact duplicate of
which has been introduced in the House
and is now before the committee on foreign
and interstate commerce, is the one which
will be urged. 1t provides for government
backing to the amount of 100000, 900, an
amount equal to the entire capital stock of
the Maritime Canal Company The govern
ment under the terms of the bill will be
practically subscriber for the entire issue
of stock at par. The canal question appears
to be one of the foremost before Congress
and the one which is most likely to excite
general interest.
After a meeting of the Senate committee
on the Nicaragua canal to-day Mr.. Morgan
gave notice of an amendment to the Mica
ragua canal bill authorizing the immediate
issuance with a guarantee by this govern
ment, of $5,OOO,OOo worth of bonds for the
redemption of all outstanding stock except
that held by the governments of Nicaragua
and Costa Rica, and the cancellation of all
obligations. He submitted at the same time
a report on the situation with reference to
the canal, dealing exclusively with the fact
that the government of Nicaragua granted
a concession to construct a canal to another
company than the Maritime Canal Com
pany. He deals with this transaction in
severe terms, upholding the rights of the
Maritime Company for the present and for
IN extension of its concession for ten years
more
GRACE AND CRAGIN ARRAIGNED.
The report arraigns the conduct Of the
Republic of Nicaragua as we'll as that of
the American citizens securing the new con-
cession in most severe terms attributing
the course of Nicaragua to jealousy OF
Costa Rica and that of the concessionaires
to "obstruct great national policy in SELL
ing out to q transcontinental railroad COM
pany for the defeat of supposed competi-
tor. 1t would be we'll for the reputation
of those concerned" the report says, Gin
thus dishonoring governments for their per-
sonal advantage and using their powers to
create jealouses between states if it could
appear that their conduct is not also COR
rupt"
The committee adduces as a justification
of the new report the seriousness of the
situation. saying on this point: "The serious
consequences likely to result to the United
States from the unprecedented and unwar-
ranted 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 Cen
tral America to the creation of a maritime
canal through the San Juan river and Lake
Nicaragua requires the committee to pre-
sent the grounds on which it insists that
this proceeding IS without any support in
law, justice or equity and that it violates
the hitherto cordial relations of the United
States with Nicaragua"
The report takes issue with the contention
of Nicaragua that that country owns both
banks of the San Juan river. calling atten-
ton to the fact that Costa Rica has equal
rights, since the arbitration of President
Cleveland as the owner of one bank Of the
in making the concession of right Of way
granted by Nicaragua no mention was made
of Nicaraguas claim rendering it incumbent
upon Nicaragua to put the canal company
in possession of the channel of the river
Here" the committee says, was a breach
OF the agreement for which the canal com
pany had paid $150,000 that entitled the COM
pany to the return of the money and to
other damages. 1t also imposed on the
United States the duty of compelling the
redress due them if redress had been
sought
NICARAGUA'S THREAT.
1t is asserted that, in view Of the fact
that Nicaragua had made the concession it
was her duty to obtain a concession from
Costa Rica when the claims of that coun-
try were established; but, instead of that.
it is pointed out that Nicaragua made a for
NAL threat to renounce it's concession if any
concession was obtained from Costa Rica,
Thus" the committee concludes, by con-
duct equivalent to main force, Nicaragua
prevented progress in the work on the canal
and put cloud upon the credit of the COM
pany of execution that could not be other
wise than disastrous"
The committee contends that the circurn-
stances 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 the responsibilities of Nicaragua
are very high, If they do not even rise to
the dignity of solemn pledges and consequent
sovereign responsibilities to the United
States, whose Intervention is sought in the
chartering OF the corporation" 1t is then
set forth that Costa Riea's interest in the
canal is as great as those of Nicaragua,
and 1t follows that the action of both re-
Dublics is essential TO the assertion Of the