The San Francisco call., 1898-12-14

the canal spectators had been signed, but fully one day before the Nicaraguan Congress, that was specially called to confirm it, passed upon it favorably. 1 am informed that it is an option of one year only, but hope soon to send you more precise information in reference thereto.
 In a letter dated San Jose, Costa Rica, October 2S, 1898, to General Ze- lava, President of Nicaragua, Minister Merry said:
 I have the honor to advise that I have this day received the following cable from the Government of the United States: You will recognize the great ex- pediency of continuing the present status of the Nicaraguan canal question until Congress shall have had opportunity to act and remonstrate against any arrange ments which may substitute new condi- tions for those now existing. Under graphed the United States Consul at Managua, requesting him to present the remonstrance of the United States Gov ernment against any change of the con- ditions connected with the Nicaragua canal concession. trust that your ex. cellency will decide 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 to the future development and prosperity of Nicaragua and as due to the friendly relations between your excel lency's government and that Of the Uni ted States which it has been my special endeavor to promote I may be permitted to add my personal assurances Of sin fiuence to assure your eXcellency of the proud record of important and patriotic aid in opening the ocean highway for the worlds commerce through beautiful Mic aragua.
 The letter of William R. Grace is dated December 2, 1898, and after as- serting that the Cardenas- Menocal con- cession had been forfeited and that the concession granted Eyre and Cragin would be effective in October, says:
 The syndicate is satisfied that it will be able to secure money to complete the canal. It holds that the canal is an en- terprse from which private capital should not be eliminated but respecting the opinion of those who fear having such a highway in private hands, the syndicate is willing to arrange basis on which the United States Government would con- trol the tariffs and participate in the mana cement of the canal.
 Grace submits the following terms: The Inter-Oceanic Canal Company to be organized under a State charter, capital to be $100,000,000 with the right to issue mortgage bonds to the amount of $150. .000 900 at 4 per cent, and sink ing fund of one-half of 1 per cent after twenty years; the United States Gov ernment to guarantee interest at 3 per cent on S50,0OO, 900 of the mortgage in- debtedness, taking a second. mortgage as security, the guarantee not to be given until the company has invested $1, 900 GOO in the enterprise; the Govern ment can appoint five directors of a board of fifteen; the syndicate will con- sent to the disbursement of the money raised upon the Government guarantee, to be subject to audit by the Govern ment.
 In conclusion Grace says the syndi- cate is desirous of meeting the wishes of the President in every possible way and to allay the fears of people who think the great work should not be left to uncontrolled private management.