Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-06-15
COMING OF SANCHEZ
MAY NEGOTIATE TREATY FOR
ISTHMIAN CANAL.
Fewer Complications Than in Dealing
With Colombia-Attitude Of
the Maritime Company.

The report that Senor Sanchez. the Mica
raguan minister of foreign affairs, has left
that country for the United States to rep
resent his government in any negotiation
that Secretary Hay may wish to enter into
for the framing of a treaty between the
United States and Nicaragua looking to
the building of a canal through Nicaragua
and Costa Rica has suggested to men who
are following the canal problem that very
little time need be consumed in the framing
of such treaty.
The framing of a treaty with Nicaragua
for the construction of waterway through
that country will be begun on entirely diff
ferent lines from mat negotiated with Co
lombia. At Panama there were the diff
cuhies in relation to the rights of the new
Panama Canal Company and the value of
the canal property to Colombia, If it should
revert to that government by the expiration
of the concession, which placed Colombia
in a peculiar position in reference to the
question. Then, too, Colombia had an in
come of $2500O0 from the railroad across
the isthmus which entered into the case as
an important matter to call for compensa-
ton.
Nicaragua's Price for Concession.
In the case of Nicaragua the government
has practically nothing to part with except
the canal route, with the claim of the Mari
time Canal Company that it has complied
with the terms of its concession in a way
to assure it's continuance for several years
to come. The value that Nicaragua might
properly place on a concession for building
a canal across that country is best answer
ed by the value it placed on the concession
it disposed of to the Maritime Canal Com
pany in 1887.
That concession was secured for 800, 600
in gold, $6OO0,O0O of stock (par value) in the
Maritime and an equal amount in the Mic
aragua Canal Construction Company. and
an agreement that the company should
build an inexpensive Six-foot canal between
the lakes of Nicaragua and Managua. At
the rate the stock sold at that time 1t would
have been worth something less than $5,-
OOO,0OO. The government Of Nicaragua took
all the risk of having its stock rendered
valueless by some difficulty overcoming the
canal company in a financial way, which
was what did happen in the panic of 1898
when the work ceased to be carried on ex-
cept In a minor way, after an expenditure
that was claimed by the company to be
about IS, ,00O, 600.
Attitude Of the Canal Company.
The Maritime Canal Company has al
ready, through its officers, gone on record
as declaring that it had no obstacle to
place in the way of the government of the
Nicaragua, and no claim for compensation
has ever been filed by it in the event of
the government taking up the work It
was claimed in the Senate by Senator
Hanna that the Maritime Company would
come forward with a heavy claim for dam
ages as soon as this government started
in the work there. That statement how
ever. had no support in any action of the
Maritime Canal Company. The secretary
of the company, Mr.. Thomas Atkins. was
CLOSELY questioned that Of bo
matter when the canal question was be-
fore the Senate committee on interoceapic
canals, but the nearest he came to saying
that the company ever expected compensa-
ton for any rights it might have in Mic
aragua was to state that the company had
no suggestion to offer in that respect and
that it would abide by whatever Congress-
might do in the future.
Grants of Land.
In the case Of the Maritime Canal conces-
sion that company received the very valua-
BILE right of ownership of every other al
ternate square mile of land on both sides of
the canal route east of Lake Nicaragua
Much of that land was regarded as in the
future to become very valuable 1t is splen-
didly fittde for the raising of rubber, bana-
mas and oranges. as well as other valuable
tropical products and the land is lying
practically in waste. except for the preda-
tory efforts of rubber hunters, only because
make all of that land entirely accessible
and give 1t the advantage of cheap trans
portation instead of the very costly service
of that kind with which it is now supplied
by means of fat bottom steamers that ply
up and down the San Juan river with the
necessity of breaking bulk at rapids half
way up the river
The concession of Nicaragua to the canal
company included these valuable land
rights. which 1t is not likely the United
States will want except so far as the right
to police and regulate the business that
may be carried on within reasonable dis
tance from the line of the canal
Little Time Required.
Because of these conditions it is not be-
lieved any long time will be wasted in con-
cluding a treaty with Nicaragua II Secre-
tary Hay should deem it wise to do so. The
thing that Minister Corea of Nicaragua has
expressed fear of in this connection is that
the canal route of his country will be used
to whip Colombia into terms with the
United States in enforcing the congress of
that country to ratify the treaty already
ratified by the Congress of the United
States.
If Nicaragua can receive some assurance
that the State Department has grown tired
of waiting on the uncertainties existing in
Colombia and wishes to accept that pro-
vision of the Spooner amendment which al
lows the building of the canal at Nicara-
qua, upon failure to secure satisfactory
treaty with Colombia for a canal at Pana-
ma in reasonable time, then it is con-
fidently believed by well-informed men that
very little time will be required to come to
an agreement with Nicaragua