Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-01-18
Plans of the Grace-Cragin-Eyr
Syndicate.
BUILDING THE NICARAGUA CANAL
Contract Made With the Southern
Republic.
HEARING BEFORE COMMITTEE

w
| syndicate, organized to construct the Mic
aragua canal had a hearing today before
| the House committee commerce. The
| syndicate was represented by Mr.. Edward
| F. Cragin of Chicago, who has been one Of
| the most active figures in the organiza-
| ton; Col. David Mcclure of New York, at
| torney for the syndicate, and Frank S.
Washburn. consulting engineer
Col. Mcclure made the opening state
| ment, showing the standing of the syndi-
| cate by reading a list of the financiers con-
stituting it. The list included Messrs. John
J. Astor, Levi P Morton, Robert Goelet,
| W. r. Grace, John d. Crimmins, John A.
| Mccall E. r. Ladue, Warner Miller, w. B.
Sloan and many others prominent in bank
| ing and financial circles. These gentlemen,
| Col. Mcclure stated, had not embarked on
any sentimental project; they had exam
| ined into the entire question from a strictly
| business standpoint. They were satisfied
| with the practicabilty of an isthmian
| waterway and believed that the concession
| of Nicaragua to the old Nicaragua Canal
| Company was about to expire. going out of
| existence under the terms of the concession
| on October next. They determined, there
| fore, to take up the matter where 1t was
! likely to be left when the old concession
| ended
w ltn inns en0 IN view the syndicate mad
| gone to Nicaragua and secured a contract
| for a concession which was to come into
| existence in October when the old con-
ceSSion terminated.
Chairman Hepburn asked if this conces-
| sion came into existence next October, I'M
der the terms of the contract, without fur
| Their action.
Col. Mcclure answered that no further
action was necessary In creating the con-
cession beyond the details of the contract.
The contract created a present interest, to
begin like certain leases, in the future.
Old Congestion Not Renewable.
Mr.. Hepburn asked if the government of
Nicaragua could not, prior to the termina-
ton of the old concession, renew it for a
further term.
Col Mcclure declared that this could not
be done, and he pointed out from article
Al Of the contract with the Nicaragua gov
eminent that the new syndicate was to
have exclusive rights.
Mr.. Stewart asked if this was not viola
ton of the terms of the old concession
which provided for a renewal
Colonel Mcclure did not consider Ii
violation, he said the spirit of the old
concession was that work should progress
steadily. But the officers of the old COM
pany conceded. he said, that no work had
been done since 1893, and. in fact no work
had been done since $3.50. So that, he
contended. the work had not proceeded with
to expect that Nicaragua would hold that
the spirit of the old concession was not
observed. He said he had no controversy
with the old company, but his statement
was in response to questions on the old
concession.
Colonel Mcclure said the contract pre-
vents transfer to any government but
1t was desired to have the United States
stand behind the enterprise. and. if it de-
sired, exercise such authority as it desired.
The syndicate would meet the government
just as the government wishes, he said
without combating any other company. If
the government wished to prescribe the
tariffs, tolls, character of locks. etc, let
this be done. and the syndicate would well
come such action
Not controlling government author
ity?" queried one of the members
No The old organization did not give
majority control to the government"
In Three Years.
When asked how soon the funds would
be Forthcoming and work begun, Col Nc
Clure said: I'm three years We will have
communication from ocean to ocean In a
letter to the President the president Of the
company states that $40, 600 600 will be
spent at once We will have results in
three years instead of ten years of time to
ask for renewals"
In reply TO questions Col Mcclure stated
that the syndicate had paid 100000 to
Nicaragua and had agreed 10 pay $500 900
more in six months. He regarded the new
concession much more advantageous than
the old one, as il was in perpetuity and
also because it gave rights of control and
police for five miles on either side of the
route.
Mr.. Cragin closed the hearing with