Evening star., 1898-11-03
Complicated Condition Surrounding
Question Of Construction.
THIS GOVERNMENT EMBARRASSED
It Had Indorsed the Plans of the
Maritime Canal Company.
REVIEW OF THE ITUATION

The dispatches from Managua. Ncara
qua. announcing that after four days pub
lie discussion the Nicaraguan congress has
unanimously approved the agreement pro-
vis:onaIly made between President Zelaya
and the American firm of contractors. f.
F. Cragin and Edward Eyre, authorizing
the construction of the much-talked-of
NicaraGuan canal. have caused much COM
ment in official circles of Washington to-
day. 1t is understood that the new syndi-
cate will take charge of the canal work as
soon as the agreement between the Nicara-
guam government and the Maritime Canal
Company iapses, which will be October 9,
1S9. unless the latter company could COM
plete the work within that time, which is.
of course. impossibity.
1t is said that the administration is great
" embarrassed by the action of the Mica
raEuan congress, and unless some COM
promise is reached with Messrs. Cragn and
Eyre the canal situation on the sthmus
will be complicated indeed. The admins
tration has indorsed the plans of the Mari
time Canal Company. whose concession ex-
pires so soon and bills now pending in
Congress providing government aid in the
construction of the canal, one of which, it
is expected, will pass during the coming
session. No details of the new agreement
entered into by Nicaragua with the Ameri-
can contractors have been received from
Minister Merry. but it is understood that
Cragin and Eyre have not actually obtained
the concession for building the waterway.
but an option giving them the right to so
on with the work when the Maritime COM
pany.S contract expires 1t is certain thai
the contractors have obtained a valuable
franchise or privilege from Nicaragua ana
will henceforward ne important factors in
the history of the canal project.
Shrevd Course Pursued.
Messrs. Cragin and Eyre selected a ripe
time for presenting their scheme and plans
10 the Ntcaraguan congress, and the haste
with which the agreement between the
Americans and President Zelaya was ratf-
fled is readily understood, for today Mica
rasua ceased to exist as republic and be-
came part of the United States of Central
america. comprising what will hereafter be
Known as the states of Honduras Salvador
and Nicaragua Future action respecting
concessions and privileges will therefore
have TO he taken by the new republic
There Is belief expressed by some officials
thdt the new company has come into the
SITUATION merely TO complicate matters, and
Ihat It's privilege may be bought out by the
Cnlted States when the time comes TO vote
assistance 10 the Maritime Canal Company
IN completing this connecting link between
the Atlantic and Pacific d work deemed
OF so much Importance to this country with
the acquisition Of its new territory II is
also important that America or rather the
Chittd states, should control the water
way. Realizing this fact Messrs Cragfn
ana Eyre have placed themselves in a de-
cidedly strong position, and will be able to
dictate terms if they should decide to sell
out TO this country.
Claims of the New Syndicate
W iihaTa r. Grace of New York is the real
head of the new syndicate, which was
formed quietly in the metropolis during the
pest summer. The Numbers of this cor
peiaiion investigated the canal matter
thoroughly and discovered, they declare.
that the Maritime company was in no coD-
ditloh to carry the canal work and
mat tn probability of an early appropria-
lph y the government was very small
ihe Nicaraguan government understood
toipuShly the embaTrassments of a finan-
cal nature, and in some measure of . no
htlrai ore, which the Maritime company
1the warner Miller interests) met with
put mar hhoWIedge, while it might explain
the failure to build the canal ONLY in
creased the apprehension that the con-
StTultlon would be loHg delayed. Therefore
Nhen men representing the responsible in
ter -sts making up the new syndicate went
10 Nicaragua and outlined their plans for
an early completion Of the canal they met
with willing listeners of course any
proposition must involve the Martini
company ; concession during the life OF the
contract
Clauses of the New Contract
From private advices il is understood that
the important clauses of the new contract
are as follows:
FIRST OF all, the government of Nicaragua
recognizes the validity of the Maritime
&C mpany's contract 10 the 9Th of October.
1889
N+NJ, the representatives of the Am erican
syndicate are authorized To arrange with
me Maritime company if they can upon
basis that will be mutually satisfactory:
otherwise. the concession to the American
syndicate takes effect on and from the 10Th
of October, 1899.
The concession to build the canal on fhe
me ot the project approved by the execu-
i've committee OF the syndicate is cone aded
with the following essential conditions.
Firsl-Perpetuity OF ownership of the
canal
Second-The Nicaraguan government de-
clares that 10 concession herr tofore grant
ed opposes, conflicts with or prejudices the
pi icSeHt concession
Third-The company is to be organized
WIN Il capital of not less than 500 O;EO $50
OF stock Of which the Eovernmen mt is to re-
ceive per cent, the company to have the
right 10 issue any further amount of stock
ana any amount Of bonds thai il elects.
FouFth-G ntrammeled control of the
canal is conceded by tha governm mt to the
company. this meaning among other things
That the company shall have the exclusive
right 10 police the canal and is guaranteed
against interference in any way by the gov
eTnment.
Perpetual Exemption From Taxes.
Fifth-Exemption from taxation is for
ever cOuceded; import duties are waived
during The construction of the canal and
afterward for every article requisite for the
maintenance, extension, repair and opera
tiOn of the canal
SiNth-A free land grant Of 900 zoo acres
IL made by the government of Nicaragua
tc the company, and an option of 900 600
rectares further at 81 per hectare.
SeNeHth-An arbitration clause is con-
Seued TWO arbitrators to be appointed, one
10y the government and one by the COM
pany. who appoint their umpire. In case of
HOn-aSreement to appoint umpire, the
president of the Swiss republic shall be re-
ouested to appoint such umpire his deci-
sion tu be final.
EiGhth-The time for the construction of
the canal Is 10 be ten years after the or
IanizatiOn Of the company. and other per
iods Tor construction of different sections
IN "A satisfactory condition Fines for de-
lays are TO be moderate and all subject to
force maieur.
Ninth-The right to transfer this con-