The age-herald., 1900-08-02
CANAL COMPANY5Sl
 PROPERTY SEIZED
Nicaragua Takes Charge Mari
 time Companys Effects.
HAD LONG BEEN EXPECTED
Arbitration Having Failed Nicaragua = Proceeded to Take Legal Steps
 State Department Has Not
 Been Officially Notified

Managua, Nicaragua, August 1.-The Gov ernment of Nicaragua has taken possession of the property of the Maritime Canal Company and removed the company's cars, rails and property to the interior from Graytown under article 54 of the concession.
 August l was the day set for the assem- b--ng of the Nlcaraguan Congress in reg ular 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 headquarters are in New York, in which to construct an inter-ocearnc ship canal across Nicaragua had expired and that the concession of the company is null and void.
 It is probable that the seizure of the com pany's property has been made in con formity with the decision and declaration above mentioned, possibly reinforced by Congressional action
 The Nicaraguan 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 fifteen miles~wide across Nicaragua embracing the approved route on which to construct an inter-oceanic ca nal. rms congress may also lntlInate us 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
 Has Long Been Expected
 Washington, August 1.-The seizure of the property of the Maritime Canal Company has long been expected, although the United States government has done all that 1t properly could do to conserve the rights of the concessionaries. Under the terms of the concession the Nicaragua Canal Com pany was allowed ten years after. the com pletion of the preliminary surveys in which to complete the construction of the canal. That period expired nearly two years ago.
 The Nicaraguan government foreseeing the failure of the company to comply with the letter of its contract, entered into an other arrangement with which was known as the Cragin-Eyre syndicate to take up the original concession promptly upon it's expiration. The Nicaraguan Canal Com- pany, or rather its successor, the Maritime Canal Company. was notified that the Nicaraguan government had vacated it's concession and intended to seize upon, it's properties according to the terms of the concession. N
 The Canal Company protested and apl peaied to the government of the United olAteS on the strength Of an article of the concession providing that should events of main force arise, duly justified and suffi- cient to impede the regular progress of the work during period of the ten years an extension shall be granted" etc.
 Had Already Arisen
 The company claimed that this contin- gency has already arisen and asks for the extension referred to. The last article of the concession provides that in the event Of misunderstanding between the gov ernment of Nicaragua and the company the dispute should be submitted to four ar bitrators, two to beselected by each party The company. upon therefusal of its claim by the Nicaraguan government, demanded this arbitration. The Nicaraguan govern ment admitted the justice of the demand but required that all four of the arbitrators should be native Nicaraguans. The com pany refused to commit it's interests to the care of such agents, and United States Minister Merry, at the instance of the State Department. intervened in its favor It appears now that the arbitration having failed, as the Nicaraguan government claims by the expiration of the period al- lowed for its work, the government has proceeded to make the seizure of the canal company's property.
 The State Department has not yet been notified of this action. and when it Is. it probably will proceed to take some step to ascertain the motives that influenced the Nicaraguan government.