The times. [volume] (Washington [D.C.]) 1897-1901, 1900-08-02

| No official information about the seizure
Of the Maritime Canal Company's property
at Greytown has been Received here, but
the Government understands the situation
we'll enough to appreciate the reasons
which brought about this radical action by
Nicaragua. Some time ago, after the Gov
ernment of Nicaragua had declared the
! concession to the Maritime Company for
feited and had granted new concession
to the Cragin-Eyre syndicate, the Maritime
; Company became aware Of the purpose OF
Nicaragua to seize its property and ap-
pealed to the United States to see it
through Under one Of the articles of the
concession the company and the Govern
ment of Nicaragua may have recourse to
arbitration In the event of just such differ
sence5, and an agreement was reached that
arbitrators should be appointed 1t was the
failure Of this attempt at arbitration In
its preliminary stage that brought about
the seizure.
In order to fully understand the situa-
ton now existing. a brief review of the
controversy is essential. The concession
to the Maritime Canal Company was made
by Nicaragua in 1881, ard the company was
given period Of ten years after the COM
pletion CT Its surveys within which to
complete the canal. Two years ago the
ten years period expired, and last year
Nicaragua served notice on the company
that its concession had been forfeited and
that its property would be seized. Under
article iS OF the concession, which pro-
vides for an extension of the period within
which the canal should be completed. IL
the delay has not been due to the fault
Of the company. an extension was applied
for, but Nicaragua declined to grant it.
Then the company demanded arbitration
as provided by article SIS OF the concession
as follows:
Any misunderstanding that may arise betxeen
the State OF Nicaragua and the company in re-
gard 10 the Interpretation OF the stipuiations Of
this agreement shall be submitted to a court of
arbitratoTs to be composed Of four members, two
Of whom shall be appointed by the State and
two by the company.
1t is further provided that IL the arbitra-
tors fail to agree they shall select a fifth
member or umpire who shall decide
The Nicsraguan Government imposed on
the condition OF the arbitration that the
company should appoint as its arbitrators
citizens Of Nicaragua. The concession
made no such condition, the Nicaraguan
Government basing its claim in that par
ticular on the law Of Nicaragua relative to
the procedure of courts which requires citi-
zenship in Nicaragua as a qualification of
an arbitrator. The law. however, was not
enacted until July s. 1894. more than seven
years after the concession had been
granted
The United States Government sustained
the objection OF the company to the re-
quirement that the company's arbitrators
Should be Nicaraguans and endeavored to
induce the Nicaraguaa Government to con-
sent to change. Nicaragua refused and
20 progress in the matter has been made.
The time within which the arbitration was
to take place expired recently and the
Government of Nicaragua, by seizing the
cotnpanys property, serves notice on the
United States and on the company that
their contentious have been denied.
The seizure was made under article "a
OF the concesGion which provides that II
the company forfeit its concession thro= =gh
failure to complete the canal between the
time fixed or for other reasons, the Gov
ernment of Nicaragua shall enter upon
possession in perpetuity OF the canal, of
works Of art. lighthouses, stations, de-
posits, stores, and all the establishments
used in the administration OF the canal,
without being obliged to pay any indemnity
to the company"
All that this Government will do remains
to be decided, but il VIII surely protest
against Nicaragua's arbitrary action. con-
tending that the insistence of the Repub
lie on the appointment IL an all-NiCara-
guam arbitration commission was contrary
TO the spirit and the letter Of the conces-
sion. A State Department official said
yesterday in regard to the action OF the
United States:
This Government will protect the
rights OF its citizens. We so far have only
considered one right-that OF arbitration
We have insisted that the company be
allowed to name its own arbitrators, and
we continue to stand on that ground"