Evening star., 1902-01-07

Taking up the question of rights and
franchises the commission traces first the
history of the Nicaragua project, showing
that there is today no existing grant to
private corporation by either Nicaragua or
Costa Rica, all concessions having been
forfeited by failure to comply with the
conditions. The Maritime Canal Company,
the original holder of the concession, failed
finally in October, 1890. Nicaragua entering
into possession in perpetuity of all the
property Of the company within the terri
tory of that republic without paying any
indemnity. Before this time. however, an
ticipating the failure Of the Maritime Com
pany, Nicaragua entered into a promise of
contract, later made definite, with Edward
Eyre and Edward F. Cragin, who organ
lied the 1nteroceanic Canal Company, OBJ
ligated to commence excavation within two
years and to complete the work in ten
years. Two payments in gold by the COM
pany were provided for, respectively of
100000 and 100000. The second payment
fell due August 0. 1900, but the company
failed to meet its obligations and to obtain
an extension Of time, and the contract was
declared annulled.
Costa Rica's Position.
Costa Rica is necessarily a party to any
project or international agreement for the
construction of the canal along this route,
inasmuch as It's boundary line follows some
portion Of the natural water course, and
at one point Of the projected route the ca
nal falls exclusively within Costa Rican
territory. The history OF the negotiations
between the commercial companies and
Costa Rica is virtually the same as that
between Nicaragua and Costa Rtca.
The time for the completion Of the canal
under the last existing contract between
Costa Rica and commercial company ex-
pired in February, 1901. and has not been
extended and the contract of the canal
company with Nicaragua having been for
feited by that government, there are now
in force no obligations of either republic
with any government, corporation or in
dividual to prevent either of them from
entering into an agreement with the
United States that would authorize our gov
ernment to construct, control and manage
ercise all the privileges Of ownership over
1t, provided the negotiations and actions
proceed upon the lines indicated by the
treaty relations by which the different
governments are bound.
Sentiment as to Government Owner
ship.
1.-The contracts made by Nicaragua and
Costa Rica giving special privileges to in
dividuals associations or companies for the
use of their territory and navgabie waters
| for the construction Of a canal or for other
| purposes contain no authority to transfer
| these rights to foreign governments and
in most of them such transfer Is absolutely
prohibited. This indicates that each oi
| these governments at one time was un-
| willing to have its territory occupied by
another nationality even for the purpose OF
promoting the commercial and Industrial
| developSent of the state.
The Commission has reason. however tc
believe that this feeling does not now
exist. The sentiment in both countries Is
strongly in favor of opening navigable
connection between the two oceans, and the
failure Of every private effort to construed
| such work has brought thinking men tc
the conclusion that 1t can only be success
fully. accomplished with the larger re.
| CONTINUED on Sixth Page)