The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1898-12-08
Conduct
Arraigned.
THE CANAL BILL.
Senator Morgan Gives No
tice Of an Amendment.

Washington, Dec AS a result Of
the meeting of the Senate committee
on the Nicaragua canal today, Senator
Morgan gave notice in the Senate Of an
amendment to the Nicaragua canal bill,
authorizing immediate issuance with a
guarantee by this government of IS, 000,-
900 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 a report
dealing exclusively with the fact that
the government of Nicaragua has
granted concession to construct a
canal to another company other than
the Maritime Canal Company.
The report upholds the rights of the
Maritime company for the present and
for an extension Of its concessions for
ten years more. 1t alTaigns the conduct
of the republic of Nicaragua as well as
that of the American citizens securing
the new concession, in the most severe
terms, attributing the course of Near
aqua to jealousy of Costa Rica, and
that of the concessionaries to a pur-
pose to 'obstruct a great national
policy in selling out to a trans-cOnti-
mental railway company for the defeat
Of a supposed competitor"
1t would be we'll" the report says,
for the reputation of those concerned
In thus dishonoring governments for
their personal advantage and using the
powers to create jealousies between
states, if it could appear that their con-
duct is not also corrupt"
The committee adduces, as a iustf-
fication of the new report the serious
ness of the action, saying on this point:
The serious consequences likely to re-
suit to the United States from this I'M
preoedented and unwarranted action of
the late government of Nicaragua and
the evident purpose to force our gov
eminent into payment of a large sum
as compensation for the future consent
Of the republic Of the United States Of
Central Alnerica~.to- the creation of a
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 hither-
to cordial relations of the United States
with Nicaragua.
The report takes issue with the 81 J.
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 the owner of one bank of the
stream. The report states that, in
making the concession of right Of way
granted by Nicaragua, no mention was
made of Nicaragua's claim, rendering
1t incumbent upon Nicaragua to put
the canal company in possession of
the channel of the river.
Here the report says, was a
breach of the agreement for which the
canal company has paid S150,QO0 that
entitled the company to the return of
the money and other damages. 1t also
imposed on the United States the duty
Of compelling the redress due them If
redress had been sought
1t is asserted that, in view of the
fact that Nicaragua had made the con-
cession, 1t was her duty to obtain a
concession from Costa Rica, when the
claims of that country were estab-
lished, but instead of that. it is point
ed out Nicaragua made a formal threat
to renounce its concession if any con-
cession was obtained from Costa
Rica
Thus" the committee concludes,
by conduct equivalent to main force,
Nicaragua prevented progress in the
work Of the canal and put a cloud
upon the credit Of the company that
could not be otherwise than disas-
trous.'
The report contends that the eircum-
stances Of the concession point to the
fact that the concession provides for
a charter to be granted TO the United
States. I'm this attitude" the report
continues. the duties and responsible
flies of Nicaragua are very nigh, ii
they do not even rise to the dignity of
solemn pledges, and sovereign respon-
sibilities to the United States, where
intervention is sought in the charter
ing of the corporation"
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 es-
sential to the assertion of the right of
either to claim the forfeiture of the
concession. If Nicaragua claims that
the concession it has granted is for
feited, Costa RIGA has the equal right
to assert that it is not forfeited
1t is then set forth that the United
States is a party to a measure of build
ing 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.
Nicaragua" the report asserts, can
not repeal an act of Congress which
dedicates the canal and its concession
airy incidents 20 a corporation charter
ed for such great purposes
The report says that the concession
provides for the submission of any dis
pute to arbitration, and it is claimed
that this provision operates to prevent
any arbitrary action on the part of Mic
ara qua.
Dwelling upon Nicaragua's course in
the matter, the report says
How this 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 Ii the danger of SER
ious embodiment in the near future.
If Nicaragua is not held to the per
Torrance Of her agreement. years will
elapse and many dangers viii be en-
countered before even start can pc
made towards the construction of a
canal