The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-08-02

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 81
Of the concession.
TERMS OF CONCESSION.
Washington, August 1.-The seizure of
the property of the Maritime Canal Com
pany has long been expected although
the United States Government has done
all that it properly could do to conserve
the rights of the concessionaires. Under
the terms of the concession 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 pc
riod expired nearly two years ago. The
company which had done a great deal of
work was expecting to effect an arrange
ment for the transfer of it's properties
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.
The Nicaraguan Government, however
foreseeing the failure of the company to
comply with the letter of it's contract, en-
tered into another arrangement with what
was known as the Cragin- Eyre Syndicate
to take up the original concession
promptly upon it's expiration. The Mica
raguan Canal Company, or rather it's sue
cessor, the Maritime Canal Company was
notified that the Nicaraguan Government
had vacated it's concession, and intended
to secure it's properties, according to the
terms of article "a of the terms. This
article provides that in the event of the
forfeiture of the concession through fail
ure to complete it within the time set,
or from other specified causes, 1.-The re-
public shall enter upon possession in per-
petuity Of the canal, of works of art, light
houses, stations, deposits, stores, and all
the establishments used in this admins
tration of the canal without being obliged
to pay any indemnity to the company
The same article provides for the exemp-
tion from seizure of the companys YES
sells, coal, workshops and capital. u
The Canal Company protested against
the proposed seizure and appealed to the
Government of the United States. Article
4S of the concession provides that "should
events of main force arise, duly justified,
and sufficient to impede the regular pro-
gress of the work during period Of ten
years, an extension shall be granted"
etc
The company claimed that exactly this
contingency has arisen, and asked for the
extension referred to- The last article
of the convention provides that in the
event of a misunderstanding between the
Government of Nicaragua and the COM
pany, the dispute should be submitted to
four arbitrators, two to be selected by
each party. The company upon the re-
fusal of it's claim by the Nicaragua Gov
eminent, demanded this 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 in
terests to the care of such agents, and
United States Minister Merry, at the in
stance of the State Department, inter-
vened in its favor. 1t appears now how
ever, that the arbitration having failed,
as the Nicaraguan Government claims by
the expiration of the period allowed for
its work the Government has proceeded
to make the seizure of the Canal Com
pany's property, contemplated in
article 81.
The State Department has not yet been
notified of this seizure and when it is
probably will proceed to take some stem
to ascertain the motives that influenced
the Nicaragpan Government; whether it
is simply clearing the way for direct ne
gotiations with the United States for the
construction of a canal; or whether it is
working in the interests of some other
would be concessionaires.