The daily morning journal and courier., 1898-12-08
NICARAGUA CANAL PROJECT
IMPORTANT ACTION BY THE SEN
 ATE COMMITTEE.

Bill Given in Senate-Nicaragua Ar
 raigned for Granting a Concession to
 Americans Who Wish to "Obstruct a |
 Great National Policy,-Conduct of
 Americans Attacked = Ntcaragua's 1
 Right to Make the Concession Ques-
 tioned.
 Washington, Dec. 7.-As a result of the meeting of the senate committee on the Nicaragua canal to-day Senator Morgan gave notice in the senate of an amendment to the Nicaragua canal bill authorizing the issuance, with guar antee by this government, of five mill lion dollars in 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 also submitted report dealing exclusively with the fact that the government of Nicaragua has granted a concession to construct a canal to another company than the Maritime Canal company. The report upholds the rights of the Maritime Canal company for the present and for an extension of it's concession for ten years more. It arraigns the conduct of the republic of Nicaragua as we'll as that of the American citizens securing the new concession in the most severe terms, attributing the course of Mica ragua to jealousy of Costa Rica, ana that of the concessionaires for pur- pose to "obstruct great national pol icy in selling out to a transcontinental railway company for the defeat of supposed competitor"
 Tt would be well," the report says, ''for the reputation of those concerned in thus dishonoring governments for their personal advantage and using their powers to create jealousies be- tween states, if 1t could appear that their conduct is not also corrupt The committee adduces as a just justitlca- tion of the new report the seriousness of the situation, saying on this point: 'The serious consequences likely to re- suit to the United States from this un- precedented and unwarranted action Of the late government of Nicaragua ana the evident purpose to force our gov ernment into payment of large sum as compensation for the future consent of the republic of the United States ot Central America to the creation 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 violates the hitherto cordial relations of the United States with Nicaragua"
 The report takes issue with the con- tention that Nicaragua owns both banks of the San Juan river, declaring that Costa Rica has equal rights since the arbitration of President Cleveland as to the owner of one bank of the stream. The report states that in nak- ing 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 report says twas a breach of the agreement for which the canal company has paid $50 coo that entitled the company to the return to the money and other damag- es. It also imposed on the United States the duty of compelling redress if redress had been sought" It Is as- serted that in view of the fact that Nicaragua had made the concession 1t was her duty to obtain ccnc2ss;on from Costa Rica when the claims of that country were established, but in- stead of that it is pointed out, Nicara- qua made a formal threat to renounce it's concession if any concession was ob- tained from Costa Rica
 ."rhus" the committee concludes, 'by conduct equivalent to main force Nic- aragua prevented progress in the work of the canal and put a cloud upon the credit of the company that could not be otherwise than disastrous" The re- port contends that the circumstances of the concession point to the fact that the concession provides for charter to be granted to the Limited States. Tn this attitude the report continues, the duties and the responsibilities of Nic- aragua are very high, if they do not even rise to the dignity of solemn pledges and consequent sovereign re- sponsibiltes to the United States whose intervention is sought in the charter ing of the corporation" It is then set forth that Costa Ricas interests in the canal are as great as those of Nicara- qua. "and it follows that the action of those republics is essential to the con- cession. If Nicaragua 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 coun- try is also necessary to any proceeding on the part of Nicaragua looking to the forfeiture of the concession. 'Nicara- gua," the report asserts, cannot re- neal an act of congress which dictates the canal and it's concessionary incl dents to a corporation chartered for such great purposes" The report says that the concession provides for the submission of any dispute to arbitra- tion. and it is claimed that this provis- ion operates to prevent any arbitrary action on the part of Nicaragua" Dwelling upon Nicaragua's course in the matter, the report says: "Ho-this unexampled condition is to be dealt with otherwise than by an expressed and determined attitude on the part of