New-York tribune., 1900-08-02
SEXES CANAL PROPERTY
EMPHATIC ACTION BY THE GOVERN
MENT OF NICARAGUA
TAKES POSSESSION OF THE MARITIME CANAL
CoMPANY's BELONGINGS ON THE GROUND
THAT THE CONCESSION HAS NOT
BEEN CARRIED OUT.
BEEN CARRIED OUT.

Managua. Nicaragua, Aug. 1.-The Govern
ment of Nicaragua has taken possession of the
property of the Maritime Canal Company. and
has removed the company's cars, rails and prop
erty to the interior from Greytown. under Ar
ticle LIV Of the concession.
Washington. Aug 1.-The seizure Of the prop
erty of the Maritime Canal Company has long
been expected although the United States Gov
ernment has done all that it properly could do
to conserve the rights Of the concessionaires.
Under the terms of the concession the Nicara-
qua Canal Company was allowed a period of
ten years after the completion Of the prelini-
nary surveys in which to complete the construc-
ton Of the canal. That period expired nearly
two years ago. The company, which had done
great deal Of work, was expecting to effect an
arrangement 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 Con-
gress and more or less advanced to enactment
within recent years.
The Nicaraguan Government, however. fore
seeing the failure of the company to comply
with the letter of its contract, entered into
other arrangement with what was known as the
Cragin Eyre Syndicate to take up the original
concession promptly upon its expiration. The
Nicaragua Canal Company, rather its sue
cessor the Maritime Canal Company, received
word that the Nicaraguan Government had va
Gated its concession and intended to seize upon
its properties, according to the terms of Article
LIV of the concession. This article provides
that in the event OF the forfeiture OF the conces
sion through failure 70 complete it within the
time set or from other specified causes "the
republic shall enter upon possession in perpetu-
ity of the canal, Of works Of art, lighthouses
stations, deposits. stores and all the establish
ments used in this administration of the canal,
without being obliged 10 pay an indemnity TO
the company"
The same article provides for the exemption
from seizure Of the companys vessels, coal,
workshops and capital
Ihe canal company protested against the
proposed seizure, and appealed 10 the Govern
ment OF the United States. Article XLVIII Of the
concession provides that should events of main
force arise, duly justified ard sufficient to i'm
pede the regular progress Of the work during
period Of the ten years. an extension shall be
granted etc. The company asserted that ex-
actly this contingency had arisen, and asked for
the extension referred to. The last article of
the convention provides that in the event of
misunderstanding between the Government Of
Nicaragua and the company. the dispute should
De submitted to four arbitrators, two 10 he
seiecled oy each party The company, upon the
refusal OF its claim by the NicaTaguan Govern
ment, demanded this arbitration. The Nicara-
guam Government admitted the justice OF the
demand, but required that all four Of the arbi-
traitors should be native NCaraguans. 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 II appears now how
ever that the arbitration having failed, as the
NlcaragUan Government asserts by the expira-
ton OF the period allowed for its work, the
Government. has proceeded to make the seizure
or the eanalceompany's property. contemplated
in Article I1IV.5
The State Department here has not yet re-
ceiYed official notice Of this action, and when
II comes to hand it probably will proceed to
take some sstep TO ascertain the motives that
influence the Nicaraguan Government whether
1t is simply clearing the way for direct negotia-
lions with the United States for the construc-
ton or a canal, or W neither II is working in the
interests Of some other would-be concession
aires
August / was the date set for the assembling OF