The herald., 1898-11-04
ADMINISTRATION ACTS
IN BEHALF OF THE MARITIME
CANAL COMPANY
STATUS QUO TOBE MAINTAINED
The President Desires to Avoid New
Complications When the United
States Takes Hold
Associated Press Special Wire

Associated Press Special Wire
NEW YORK, Nov. "a dispatch to the
Herald from Washington says:
Action has been taken by the adminlstra-
tion looking to the maintenance OF the sta
tus quo with respect to the concession OF the
Maritime Canal Company for the construc-
tion OF the Nicaragua Canal.
Secretary Hay has cabed instructions to
Minister Merry under which, through Con
sui Donaldson at Managua, remonstrances
will be lodged with President Zelaya against
the concession his government has awarded
to Messrs. Eyre and Cragn, representing an
American syndicate for the construction OF
the canal upon the expiration oil the con-
tract held by the Maritime Company,
Information in the possession OF the au-
thorities is of very meager character, que
to the fact that all information received
from Minister Merry has been py caple,
and he has been unable to send the text
of the agreement entered into with Messrs.
Eyre and Cragin. Although it has been re-
ported that the Nicaraguan Congress mas
ratified the provisional agreement sub
mtted to it by the President, the authorl-
ties are hopeful of preventing final approval
being given. -
Results of the call Consul Donaldson will
make upon President Zelaya cannot be fore
casted by the officials, but in some circles
it is not believed it will have any important
effect. The President and members OF his
Cabinet are of the opinion that the new syn
dcate has not entered into the agreement
with the Nicaraguan government to build
the canal, but to make deal with the
Maritime Company under winch The syndi'
cate will receive certain sum Tor rights.
So far as the administration is concerned,
its objection to transfer of the conces-
sion lies in the bad effect it will have upon
Congress, which would hesitate to vote the
government aid so necessary to the construc-
tion of the canal. ,,
private enterprise will never build that
great waterway" said an official last night.
q government will have to build 1t and
that government will be the United States.
So far as the administration is concerned,
it is not a question of what company mas
contract. but the President is pledged to the
construction of the canal He believes it 20
be a necessity, and he therefore desires that
the status quo be maintained, IN order that
when the subject is discussed by congress
no unnecessary complications may exist
which could be used to the disadvantage OF
the proposition Tor the goVerniiiene "
build the canal" =,
The authorities are gratified at President
Zelaya's announcement that the CONCESSION
of the Maritime Canal Company. VIII not
expire until October ID, 1879, and IL Is IN,
tended that every effort shall be directed
to secure the passage by Congress OF one OF
the measures providing for government AID
in the construction of the waterway,
When last year the department learned
that the Nicaraguan government was cuii-
sidering the advisability of declaring the
Maritime Company concessions forfeited, an
instruction was sent to Mr.. Baker, then
United States Minister at Managua, direct
ing him to ''interpose discreet remonstrances
for protection of the rights OF this American
corporation" =,
President Zelaya assured Mr.. Baker that
no such intention existed, and that ne pro,
posed to act in absolute good faith toward
the Maritime Company and the United
States Minister Baker thus closes mem
orandum which he prepared for President
Zelaya the day following the interview he
had with him:
"In conclusion, l will express my gratifi-
cation at the whole tone of friendlness to-
ward the prosecution of the canal enterprise
under American auspices, which character
lied your conversation with me yesterday,
and especially for the personal assurance
YOU were pleased to give me that the fran
chise of the Maritime Canal Company would
not be interfered with by the Nicaraguan
government until it lapses by its own limita-
ton in October, 1899, unless, to use your
own words, the government OF the United
States may desire to make contract direct
with this government to build the canal IT.
self
The canal complication is increased with
the entrance of the Greater Republic of
Central America upon the second stage of its
existence, which occurred yesterday. The
republic has now been in existence for two
years, having had its foreign affairs man.
aged by what is termed "diet," which the
United States tacitly recognized by receiv-
ing a minister whom it accredited here.
The department will now be called upon
to determine whether the Greater Republic
shall be given full recognition, but as it
opposed the dispatch of Minister Merry to
Central America, and has further, it has
been charged, exerted its influence to pro-
cure the construction of the canal by Great
Britain rather than by the United States,
it is doubtful if Minister Merry will be ac.
credited to it, for the present at least Be-
fore such action could be taken Congress
would have to specially make an appropria-
tion for crediting minister to the Greater
Republic of Central America Senator Nor
gan has violently opposed such action and
the authorities have no reason to believe he
will change his attitude.
WASHINGTON, Nov. st is said at
the state department that our government
has not protested against the reported ac-
tion of the Nicaraguan government in
granting a concession for the construction
of the Nicaraguan canal to Eyre & Cragin,
after the expiration of the Maritime com
pany's concession next October. What the
department has done is not of recent date
and consists solely of the making of repre-
sentations to the Nicaraguan authorities to
the effect that the United States deemed it
only fair and proper that the status quo
should be maintained in matters relating
to the Nicarapuan canal until the board,
headed by Admiral Walker, has had a
chance to report and congress an opportun-
ity to consider that report. This is, diplo-
matically something very different from a
protest
The reason that this action is taken is
that the making of new concession by
the Nicaraguan government, even though
1t would take effect only upon the expira-
ton OF the present concession to the Mari
time Canal company, might operate to pre-
vent the latter from obtaining an extension
OF it's concession, to which it might be Justly
entitled
In the event that congress should leg;s-
late. upon the basis of a construction of the
work under the auspices of the Maritime
company this, of course, would seriously
!eopardize the interests of the United
States.