The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-01-19
THE NEW CANAL SYNDICATE.
Representatives OF the Grace Com
pany Given Hearing.


pany Given n Hearing.
WASHINGTON. Jan. 1s.-What is known
as the Grace-Cragin-Eyre syndicate, organ
ized to construct the Nicaragua canal had
a hearing to-day before the House commit
tee on commerce. The syndicate was repre-
scented by Mr.. Edward F. Cragln, of Chi
cago, ILL.,, who has been one of the most
active figures in the organization; David
Mcclure. Of New York. attorney for the
syndicate and Frank S. Washburn. consult
ing engineer Colonel Mcclure made the
opening statement, showing the standing of
the syndicate by reading a list of the finan-
ciers constituting it. The list includes
Messrs. John J. Aston, Levi p. Morton,
Robert Goelet w. r. Grace John d. Grim
minis, John A. Mccall, E. r. Ladue. Warner
Miller. w. B. Sloan and many others prom
inent in banking and financial circles. These
gentlemen, Colonel Mcclure stated, had not
embarked on any sentimental project; they
had examied into the entire question from Il
strictly business standpoint. They were sat
lsfied with the practicability of an isthman
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 Oct. next. They determined. therefore,
TO take up the matter where it was likely to
be left when the old concession ended. With
this end in view the syndicate had gone to
Nicaragua and secured contract for con-
cessiOn which to come into existence in
october when the old concession terminated.
Chairman Hepburn asked If this conces-
sion came into existence next October, under
the terms OF the contract, without further
action.
Colonel Mcclure answered that no further
action was necessary in creating the con-
haaF fhn dot fIc :
The contract created q present interest, to
begin like certain leases, in the future.
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
Colonel Mcclure declared that this could
not be done and he pointed out from Article
Al o. the contract with the Nicaraguan gov
eminent that the new syndicate was to have
exclusive rights Mr.. Stewart asked if this
was not violation of the terms of the old
concession, which provided for q renewal.
Colonel Mcclure did not consider ii a Vio-
aaton, as he said the spirit ct the old con-
cession was that work should progress
steadily. But the officers of the old COM
pany conceded, he said. that no work had
been done since 1873, and, in fact, no work
had been done since 1SS9-90. so that he con-
tended, the work had not proceeded with or
binary diligence, and it was but natural to
expect that Nicaragua would hold that the
spirit Of the old concession was not OBJ
served. He said he had no controversy
with the old company. but his statement was
in response to questions on the oldScon-
cession. The legal rights of Nicaragua to
terminate the old concession was discussed
pro and con between Colonel Mcclure and
members of the committee, the questions of
the members indicating a belief that there
was doubt as to the right to end the con-
cession, while Colonel Mcclure maintained
that Nicaragua had the right, and had, in
fact, acted m his right.
In answer ms a question he said that
while it was physically possible that Mica
ragua might continue the old concession and
combat the new one, yet ii was not to be
supposed that a government would play thus
fast and loose.
Colonel Mcclure said the syndicate would
meet the government just as the government
wishes, he said, without combating any
other company. When asked how soon the
funds would be forthcoming and work be-
gun, Colonel Mcclure 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 500.
100000 will be spent at once. We will have
results i'm three years. instead of ten years
of time to ask for renewals
In reply to questions, Colonel Mcclure
stated that the syndicate had paid S109.0c0
to Nicaragua and had agreed to pay $500, 900
more in six months. He regarded the new
concession much more advantageous than
the old one. as 1t was in perpetuity, and also
because ii gave rights of control and police
for five miles on either side of the route.