The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-12-08
Senators Charge the Republic With
Bad Faith.
TROUBLE OVER CANAL
SERIOUS INTERNATToNAT, Rup-
TURE IS THREATENED.
Grant Of New Canal Concession and
the Threat to Cancel the Maritime
Grant Caused All the Trouble
Proposed Bond Issue to Cancel
Obligations.


Washington, Dec. T-As a result Of
the meeting of the senate committee
on the Nicaragua canal today, Senator
Morgan gave notice of ain amendment
to the Nicaragua canal bill, authorizing
the immediate issuance, with a guaran-
tee by this government, OF; 100000
worth of bonds for the redemption of
all outstanding stock except that held
by the government of Nicaragua and
Costa Rica, and the cancellation of all
obligations. He submitted at the same
time a report upon the situation with
reference to the canal, dealing eXclu-
siNely with the fact that the govern
ment Of Nicaragua granted a conces-
sion TO, construct a canal to another
company than the Maritime Canal COM
pany. He denounced this transaction
IA severe terms, upholding the rights
OF the Maritime company for the pres
ent and for an extension of it's conces-
sion Tor ten years more The report
arraigns the conduct of the republic Of
Nicaragua as well as that of the
American citizens securing the new
concession, in. most severe terms.
The committee adduces as a justif1-
cation Of the new report the serious
ness OF the situation, saying on this
point:
1.-THE serious consequences likely to
result to the United States from the
unprecedented and unwarranted action
of the late government of Nicaragua
and the evident purpose to force our
government into payment Of a large
sum as compensation for the future
consent Of the republic of the United
States Of Central America for the con-
struction 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 and equity, and that it vio-
lates the hitherto cordial relations of
the United States with Nicaragua
The report takes issue with the con-
tention Of Nicaragua that that coun-
try owns both banks Of the San Juan
river, calling attention to the fact that
Costa Rica has equal rights, since the
arbitration of President Cleveland as to
the owner of one bank of the ftream.
Attention is called to the fact that in
making the concession of right of way
granted by Nicarag qua, no mention was
made of Nicaragua's claim. rendering it
incumbent upon Nicaragua to put the
canal company in possession of the
channel of the river.
1t is asserted that in view Of the fact
that Nicaragua had made the conces-
sion, it was its duty to obtain a con-
cession from the Costa Rica govern
ment when the claims Of that country
are established, but instead of that, it
is pointed out that Nicaragua made a
formal threat to renounce its conces-
sion If any concession was obtained
from Costa Rica-
'sThus," the committee concludes, "by
conduct equivalent to main force Mic
aragua prevented progress in the work
on the canal and put a, cloud upon the
credit of the company of execution
that could rot be otherwise than dis
astrous."
The committee contends that the cir
cumstanceS Of the concession point &c
the fact that the concession provides
for q charter to be granted to the
United States.
In this attitude" the committee con-
tinues, "the duties and responsibilities
of Nicaragua are very high, if they dc
not even rise to the dignity Of solemn
pledges and consequent and sovereign
Responsibilities to the United States
whose intervention is sought in the
chartering Of the corporation
It is then set forth that Costa Rica'S
interests in the canal are as great AZ
those of Nicaragua land it follows thai
the action Of both republics is Essential
to the assertion of the right Of either
TO claim a forfeiture OF the concession
If Nicara qua claims that the conces-
sion it has granted is forfeited Costa
Rica has the equal right to assert thai
ii 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 o.
both countries. and it is claimed tina
the consent of this country is also nee
essary to any proceeding on the par
n. . -c-s4-
of the concession.
Nicaragua" the committee assert:
sententiously, cannot repeal an act o
congress which dedicates the canal anC
its concessicnary incidents to a corpo
ration chartered for such great pur
pose"
Attention IS then called to the fac
thaS the concession provides for thu
submission Of any dispute to arbitra
ton and it is claimed that this provi
sion operates to prevent any arbitrary
action on the part of Nicaragua.
Dwelling upon Nicaragua's course il
the matter, the committee says:
How this uneXampled condition is t,
be dealt with otherwise than by an ex
press and determined attitude on tn
part of the United States, is a ques
ton that carries with it the danger o
serious embodiment in the near future
IF Nicaragua is not held to the per
Torrance Of her agreement, years viii
elapse and many dangers will be en-
countered before even a start can b
made toward the construction Of :