Evening star., 1900-08-01
SEIZED BY NICARAGUA
PROPERTY OF MARITIME CANAL
COMPANY REMOVED TO INTERIOR.
Important Questions to BE Considered
by the Congress That
Meets Today.


government of Nicaragua has taken pos
session Of the property of the Maritime
Canal Company and removed the COM
pany's cars, rails and property to the in
terror from Greytown, under article fifty
four Of the concession.
NEW YORK, August 1.-August 1 was
the date set for tho assembling Of the
Nicaraguan congress in regular session.
One subject to come up was the confirming
of the decision of the courts and the official
declaration Of the minister of public works
that the time granted to the Maritime
Canal Company of Nicaragua. whose head
quarters are in New York. in which to con-
struct an interoceanic ship canal across
Nicaragua. had expired, and that the con-
ceSsion to that company Is null and void.
1t Is probable that the seizure of the
company's property has been made in con-
fer1nity with the decision and declaration
above mentioned. possibly reinforced by
congressional action.
Acquisition by the United States.
The Nicararuan congress at the session
begun today Is expected to take action
with reference to the acquisition by the
government OF the United States of belt
of territory ten or fifteen miles wide across
Nicaragua, embracing the approved route
on which to construct an interoceanic ship
canal. This congress may also intimate its
desire to have the canal fortified or not. in
the event that the government Of the
United States approaches the government
of Nicaragua on the construction by the
United States of the canal.
Long Expected.
The seizure above referred to has been
long expected, although the United States
government has done all that 1t could prop
erly do to conserve the rights of the con-
-nla fnry o% .ta
cession the Nicaragua Canal Company was
allowed a period of ten years after the
completion of the preliminary surveys In
which to complete the construction Of the
canal. That period expired nearly two
years ago. The company had done a great
deal of work, and was expecting to effect
an arrangement for the transfer of its prop
critics and privileges to the government Of
the United States through some of the
various Nicaraguan canal bills that have
been introduced in Congress and more or
less advanced to enactment within recent
years.
Arrangement With Cragin-Eyre Syn
dicate.
The Nicaraguan government, however,
foreseeing the failure of the company to
comply with the letter of its contract. en-
tered into another arrangement with what
was known as Cragin-Eyre syndicate to
take up the original concession promptly
upon its expiration. The Nicaragua Canal
Company. or, rather. its successor the Mar
itime Canal Company. was notified that the
Nicaraguan government had vacated its
concession, and intended to seize upon its
properties, according to the terms Of article
81 of the concession. This article provides
that in the event of the forfeiture of the
concession through failure to complete 1t
within the time set, or from other specified
causes, the republic shall enter upon pos
session in perpetuity of the canal, OF works
of art light houses. stations, deposits.
stores and all the establishments used in
this administration Of the canal, without
being obliged to pay any indemnity to the
company. The same article provides for
the exemption from seizure of the COM
pany's vessels coal. workshops and capital.
Protest of the Company.
The canal company protested against the
proposed seizure and appealed to the gov
eminent Of the United States. Article As
Of the concession provides that should
events of main force arise, duly justified
and sufficient to impede the regular prog
reSs of the work during period Of the ten
years, an extension shall be granted" etc
The company claim that exactly this con-
tingency has arisen, and asked for the ex-
tension referred to.
Now, the last article of the convention
provides that in the event of a misunder-
standing between the government of Mica
ragua and the company the dispute should
be submitted to four arbitrators, two to be
selected by each party. The company, upon
the refusal of its claim by the Nicaraguan
government, demanded this arbitration
The Nicaraguan government admitted the
justice of the demand, but required that all
four of the arbitrators should be native
Nicaraguans. The company refused to
commit Its interests to the care of such
agents. and United States Minister Merry,
at the instance of the State Department,
intervened in Its favor.
Seizure of the Property.
1t appears now. however. that the arbi-
tration having failed, as the Nicaraguan
government claims by the expiration of the
period Of four months allowed for its work
the government has proceeded to make
the seizure Of the canal company's prop
erty, contemplated In article "a. The State
Department has not yet been notified of
this action, and when 1t Is 1t will probably
proceed to take some action to ascertain
the motives that influence the Nicaraguan
government, whether 1t Is simply clearing
the way for direct negotiations with the
United States for the construction of a
canal, or whether it Is working in the in
terests of some other would-be conces-
sionaires.
Carrying of Gasoline Automobiles
Mr. Dumont, supervising inspector gen.
eral of the steamboat inspection service