The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-12-08
Nicaragua Canal Committee Sub
mits a Report.
A BITTER ARRANGEMENT
The New Company Hauled Over the
Goals and the Republic of Nicaraeus
Warned to Live Up to It's
Agreement

on the nicaragua canal to-day, SendtOr
Morgan gave notice of an amendment
to the Nicaragua canal bill authorizing
the immediate issuance with a guaran-
tee by this government, of $5.0oo,ooo
worth OF bonds for redemption Of all
outstanding stock except that held by
the governments 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-
sively with the fact that the govern
ment of Nicaragua granted a conces-
sion to construct canal to another
company than the Maritime Canal
company. He denounced this transact
tion in severe terms, upholding the
rights Of the Maritime company for
the present and for an extension of
its concessions for 10 years more. The
report arraigns the conduct OF the re-
public OF Nicaragua as well as that OF
the American citizens securing conces-
sions In more severe terms. attributing
the course of Nicaragua to Jealousy OF
Costa Rica and that OF the conces-
sionaires to 'obstruct a great national
policy in selling out to a transcontinen-
tai railroad company for the defeat of
a supposed competitor"
1T would be well for the reputation
of those concerned they say. ''in thus
dishonoring governments for their per-
sonal advantage and using their power
to create jealousies betweeen states. IL
IL should appear that their conduct Is
not also corrupt"
The committee adduces as a justifica-
tion of the new report the seriousness
OF the situation, saying on this point:
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 TO the crea-
ton OF a maritime canal through the
san Juan river and Lake Nicaragua.
requires the committee to present the
| grounds ON which IL insists that this
proceeding is without any support in
| law, justice and equity and that IL 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
the owner of one bank OF the stream.
Attention Is called to the fact that in
making the concession OF right of way
granted to Nicaragua. no mention was
made OF Nicaragua's claim. rendering IL
incumbent upon Nicaragua to put the
canal company In possession of the
channel OF the river.
Here" the committee says. was a
breach of the agreement for which the
canal company had paid sl50.00o. and
that entitled the company to a return
OF the money and the other damages.
IL also imposed upon the United States
the duty OF compelling the redress due
them IL redress had been sought"
IL is asserted that in view of the fact
that Nicaragua had made the conces-
sion IL was his duty to obtain a con-
cession from the Costa Rica govern
ment when the claims of that coun-
try are established, but instead of that
IL is pointed out that Nicaragua made
formal threat to renounce it's con-
cession IL any concession was obtained
from Costa Rica.
Thus" the committee concludes, by
conduct equivalent to main force, Mica
ragua prevented progress I'm the work
on the canal and put a cloud upon the
credit of the company that could not
be otherwise than disastrous
The committee contends that the cir
cumstances 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 committee
bilities of Nicaragua are very high IL
they do 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"
IL is then set forth that Costa Rica's
interests in the canal are as great as
those OF Nicaragua. and II follows that
the action of both republics is essen
tial to the assertion OF the right OF
either to claim a forfeiture on the con-
cession. IL Nicaragua claims that the
concession IL has granted is forfeited
Costa Rica has the equal right to as
sert that II Is not forfeited.
IL is then set forth that the United
States Is a party to the measure OF
building the canal at the instance of
both countries, and IL is claimed that
the consent OF this country Is also nee
essary TO any proceeding on the part Of
Costa Rica looking to the forfeiture of
the concession.
Nicaragua" the committee asserts
cannot repeal an act OF congress which
dedicates the canal and its concession
airy incidents to a corporation chartered
for such great purpose"
Attention Is then called to the fact
that the concession provides for the
submission OF any dispute to arbitra-
tion. and IL Is claimed that this pro-
vision operates to prevent any arbi-
trary action on the part Of Mica
ragua.
Dwelling upon Nicaragua's course in
the matter the committee 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 ques-
tion that carries with IL the danger Of
serious embodiment in the near flu
ture. II Nicaragua Is not held 10 the
performance OF her agreement years
will elapse and many dangers will be
encountered before even a start can
be made toward the construction OF a
canal"