The Savannah morning news., 1900-08-02
TOOK ITS PROPERTY
NICARAGUA SEXES CANAL CoMPA-
NY's APPLIANCES.
REMOVED 1T. TO INTERIOR.
AN ARTICLE IN THE CONCESSION
GAVE AUTHORITY.


Period of Ten Years to Complete
the Work but Failed to DO It-Ar-
bitration Could Not he Agreed Up-
on and Nicaragua Seized the Prop
crty-statc Department VIII Be
Asked to Act.
Managua Nicaragua, Aug. 1.-The gov
ernment of Nicaragua has taken posses
sion of the prope rty of the maritime cam
al company, and removed the company's
cars, rails and property to the interior
from Greytown, under article fifty-four OF
! the concession.
Washington, Aug. 1.-The seizure OF the
properly of the Maritime Canal Company
has loug been expected although the Unit
ed States government has done all that 1t
could properly do to conserve the rights
OF the conc essionaires. Under the terms
of the concession the Nicaragua Canal
Company was allowed a period Of ten
years after the completion of the prel'm-
mary surveys in which to complete the
cors ruction of the canal.
That period expired nearly two years
ago, The company, which had done
great deal of work, was ex.e,tng 10
effect an arrangement for the transfer OF
its properties and privileges 10 the gov
ernment of the United States through
some of the various Nicaraguan Canal
bills that have been introduced In Con-
gwss and more or less advanced to enact
ment within recent years.
Made Another Agreement.
The Nicaraguan government. however,
foreseeng the failure of the company to
comply with the letter of dts contract,
entered into another arrangement with
what was known as the era gin-Eyre syn
dicate 10 take up the original concession
promptly upon its expiration. The Mica
ragua Canal Company or rather it's sue
cessor, the Maritime Canal Company, was
notified that the Ncaraguan government
had vacated its concession and intended
to seize upon it's properties. according to
the terms of article 54 OF the concession.
This article provides that in the event
OF the forfeiture OF the concession through
failure to complete ii within the time set,
or from other specific causes. the ''repub-
lie shall enter upon possession in perpet-
uity of the canal of works OF art. light
houses. stations. deposits and all the es-
adjustments used in this administration
OF the canal, without being obliged to pay
any indemnity to the company"
The same article provides for the ex-
emption from seizure from the company's
vessels, coal, workshops and capital.
The canal company protested against
| nj ar tn fha
government OF the United States. Arti-
Gle 4S of the concession, provides that,
should events of main force arise duly
justified and sufficient to impede the reg
uar progress of the work during a pc
Rod OF ten years, an extension shall bs
granted" etc. The company claimed that
exactly this contingency has arisen, and
asked for the extension referred to.
Arbitra tion Was Asked.
The last article OF the convention pro-
vides that in the event OF a misunder-
standing between the government of Mica
ragua and the company. the dispute should
b. submitted to four arbitrators, two TO
be selected by each party. The company
upon the refusal of Its claim by the Me-
araguan government. demanded this ar
bitra,ion. The Nicaraguan government
admitted the justice of the demand, but
required that all four of the arbitrators
should be native Nicaraguans. The COM
pany refused to commit its interests 20
the care of such agents and United States
Minister Merry, at the instance of tho
state department, intervened In Its favor.
1t appears now, however, that the arbl-
trstion having failed as the Nicaraguan
government claims by the expiration of
the period allowed for its work, the gov
ernment has proceeded to take possession
OF the canal companys property as con-
temp!ated in article 81.
The state department has not yet been
notified of this action, and when 1t !s
It probably will proceed 10 take some
step to ascertain the motives that infiu-
enced the Nicaraguan government. wheth-
er 1t is simply clearing the way for di-
rect negotiations with the United States
for the construction OF canal, or wheth-
er it is working in the interests of some
other would-be concessionaires.