The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-12-14
THE CANAL FIGHT IS ON
The Two Syndicates Are Ready
for the War.
A WARNING TO NICARAGUA
Minister Merry's Representations TO
President zelaya Concerning Canal
Concessions-Mr. Grace Makes
q Proposition.

Washington. Dec. 12-At the opening
OF the debate on the Nicaragua canal
bin in the senate to-day Senator Nor
gan had read a letter from the secretary
of state. transmitting Minister Mer-
rvs statement Of his Representations to
President Zelaya of Nicaragua concern
ing the canal concessions n also a
communication made by Hon. W. r.
Grace in behalf Of the syndicate which
has recently obtained a concession firm
Nicaragua in antagonism to the Mar
thine company. The letter Of Minister
Merry to Secretary Hay says:
1T is my duty further TO inform ."u
that my telegram to Consul Donald-1n
requesting him to personally present.
your remonstrance to the president OF
Nicaragua) reached him after the 'nn-
ton to the canal spectators had b n
signed. but fully one day before nc
Nicaraguan congress. that was sp-c.al-
" called to confirm IL. passed upon Z
favorably. ] am informed h u Is n
option for one rear only. but hope - n
20 send you more precise N
reference thereto"
In a letter dated San Jose. Co a
RIGA. oct. IS. 1898. 10 General Zelay a,
president of Nicaragua, Minister M,r-
ry said
II have the honor to advise that /
have this day received the followi Z
cable from the government OF the
United States:
You will recognize the great *
pediency Of continuing the present stat
us OF the Nicaragua canal question un-
I'll congress shall have an opportunity
20 act. and demonstrate against y
arrangements which may substitute
new conditions for those now existing
Under these instructions. I have to-
day t~elegraphed the United States con-
sui at Managua. requesting him to pro
sent the remonstrance OF the United
States government against any change
Of conditions connected with the MIC
aragua canal concession.
Il trust that your excellency viii de-
eide Il in the interests OF the country
which entrusts it's destinies to your able
and patriotic guidance, To accede to the
policy herein suggested: so important
20 the future development and prosper
fly Of Nicaragua and as due to the
friendly relations between your excel
lency's government and that OF the
United states. which Il has been my
especial endeavor to promote. J may
.be permitted Ia q my personal assur-
kance of a sincere desire to use every
honorable influence 10 assure your eN'
cellency Of the proud record Of import
ant and patriotic aid in opening IN
ocean highway for the worlds "om
merce through beautiful Nicaragua"
The letter OF william u. Grace !
dated Dec. .. 1898. and after asse-tini
THAT the Cardenas-Menocal concession
had been forfeited and a concession
granted Eyre and Cragin would be ef'
fective I'm October. says:
The syndicate is satisfied that II Ill
he able to secure money 10 complete tn
canal. IL holds the canal is an en.er
prise from which private capital sh0ul'
no be eliminated. but respecting IN.
opinion OF those who fear having suc'
a highway In private hands. the ryndi
cate Is willing u arrange a basis ol
which the United States government
would control the tariffs and partlcipat
in the management of the canal. au'
Mr.. Grace submits the following terms
"Th Interoceanic Canal company, Z
be ~rganize under a state charter, cap
tai TO be slO0. 900. 600. with the right {
issue mortgage bonds TO the am)uut q
$50. 0O0. 900 at 4 per cent. n a .1nkin
fund of one-half 81 I per cent after
years: the United States govern nent
guarantee interest at 3 per cent. on $50,
coo. 900 OF the mortgage indebteinas
taking a second mortgage as securit,
the guarantee not To be given until Oh
has invested Sl.Ooo.oOo IN th
enterprise; the government can az
point five directors Of "A board OF II
the syndicate Will consent TO the II
bursement Of the money raised upo
the government guarantee TO be 8u'
5ect 20 audit by the government
In conclusion. Mr.. Grace says u
syndicate is DESTROYS Of meeting tf
wishes OF the president In every ooSs
BILE way and 90 allay the fears OF a
people who think the great work shoul
not be left TO uncontrolled private ma
agement.