The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-10-16
THE NICARAGUA CANAL
AMERICANS SEEKING ANOTHER con-
CEssTON FROM THE REPUBLIC.
r. f. Cragin and Others Anxious to
by an Artificial Waterway.


Correspondence Of the Associated Press.
MANAGUA, Nicaragua, Sept. 14.-Messrs.
Edwin +. Cragin. of Chicago; Edwin Eyer,
of the firm Of w. r. Grace & Co., and
Frank c. Washburn, of New York city,
have arrived at this capital. The object of
their mission is to obtain from President
Zelaya authority to attempt to organize a
company and obtain the necessary
capital, estimated at S10O,0OOO00 in gold, to
construct canal across Nicaragua Presi-
dent Zelaya has placed them in conference
with the acting minister of public works in
order 10 ascertain what they propose to ac-
complish and what guarantees they will
offer in regard to the proposed construction
Of an interoceanic canal across the PENN
sula of Nicaragua.
There are, however, several obstacles in
the way at present that appear insuperable
tot the organization of a new company with
concessions that would attract and satisfy
capitalists. One of these is the fact that
the Maritime Canal Company, of Nicara-
qua" is still alive and that it's charter is
unimpeachable and is to remain in force
until October, 1899, according to the COM
pany, but only until October, 1898, as claim
ed by the government of Nicaragua. How
ever, the company has a strong claim to
many years further existence of the life
of its charter, in the fact that owing to the
numerous revolutions and other disturb
ances in the country since the granting of
the charter of 1887, the people have been
seriously unsettled by the infiction Of heavy
fines, forced loans, Imprisonment and i'm
pressment by one political party or another
into the. army, this being especially so in
the case of the laboring class. and causing
thousands Of the natives to flee to other
states for refuge, so that no extensive work
ike the cutting out OF a canal channel was
possible under the circumstances. Under
the contract held by the company the gov
eminent of Nicaragua is obliged to keep at
the canal works a police force sufficiently
strong to protect the contractors, engineers
and laborers and guard the machinery,
edibles and supplies This force was main
tanned at the storehouses and workshops at
San Juan del Norte (Greytown) when work
on the canal was commenced, but subse-
tq,I!y owing to fears OF revolutionary
ment called off the police at the canal for
duty elsewhere and then Nicaraguas pro-
lection ended.
Even if the existing concession to the
Maritime Canal Company, of Nicaragua
chartered by the government of the United
States, was abrogated there comes to the
front the concession granted in 1897 to the
Caribbean and Pacific, Transit Company,
limited, :, of Lverpool, ENGLAND, really
for the exclusive right of steam navigation
on the Rio San Juan del NOrte for thirty
years. WIN Otner concessions OF ldnQS, TIM
Der, ETC. This company desires to control
not only interoceanic transportation across
Nicaragua, but claims the privilege, in its
charter to build and operate a system of
railroad and steamboat transportation suffi-
cient to also control the interior transporta-
ton OF the country. With such privileges
the English company is not likely to sell
out to a new concern. even If the latter sue
ceeds in having the existing charter of the
Maritime Canal Company annulled.
II is not probable either that the govern
mert of Nicaragua Will grant canal con-
structing charter or concession to any new
company until the government is secured by
large sum on deposit as a. guarantee and
an equal large sum in gold as bonus, to-
capital stock and the insertion of clauses in
the contract placing the entlre conrroI OF
and binding the company not to appeai to
it's national government for help in the
event of any dispute between the company
and the government of Nicaragua.