The Montgomery advertiser., 1909-03-23
ZELAYA SENDS
 HIS ANSWER State / Department Is Silent. D0Y NOT SUIT UNCLE SAM {, hole Matter May Be Passed Up
 to Congress. Nicaragua Seems Willing To Arbitrnte Emery Claim But Not Accord
 ing To Views Of This
 Country.

Washington, March 22.-President zelaya has, through MT. Espinosa. the minister of that country to the United States, sent his reply to the demand made by Secretary Knox for the ar bitration of the Emery claim, arising out of the annullment by Nicaragua of a concession granted by that coun- try for cutting mahogany, because Of an alleged violation of It's provision.
 No statement was obtainable at the State Department today as to the na- ture of Zelayas reply, but enough Is known to warrant the statement that 1t is does not meet every demand Of this government. It is understood. however, that Nicaragua has suggest ed a method of adjustment of the whole issue which in it's judgment pro- vides for settlement on an equitable basis for all parties interested.
 The Emery claim has been hang ing fire between the State Department and Nicaragua for years. the depart ment being unable to secure the cno- sent of the Central American country to arbitrate 1t along lines satisfactory to this government-that Is, by com mission sitting outside of Nicaragua, which, while passing on the question or the right of Nicaragua to annul the claim. also should fix the amount or damages to which the Emery company might be entitled. if any. as a result or the action of the Nicaraguan courts.
 Nicaragua has expressed its willing ness to have such commission pass on the correctness of the decision Of it's courts in annulling the concession, but has uniformly insisted that the question of damages should be fixed by a local arbitration commission made up of a representative of the company, representative of the government and a third to be chosen by these two, as contemplated in the concession, In the event that issues arise between the company and the government.
 Today's note from MT. Espinosa re- affirms Nicaragua's willingness to arbi- trate the questions at issue. but as In former communications differs with this government as to the form in which this is to be brought about.
 State Deuartment officials are not yet prepared to make any statement of the attitude of this government on the unter-propositions advanced. If the differences between the two countries continue radical the whole matter will be passed up to Congress for such ae- tion as 1t may take to obtain satisfac- ton. If not radical, then 1t Is general ly expected an agreement may be reached for the settlement of the con- troversy. The discussion of the merits of the case has passed into history. and now the State department Is determin- ed to have a prompt settlement reach ed.
 A demand to this effect made It's ap- pearance almost simultaneously with the recent threatening spect of affairs in Central America, caused by the mil itary activity in Nicaragua, although 1t is said authoritatiyely that there was no significance in this coincident.
 Meanwhile. Central American official advices report a dlsavowal of President Zelaya of a military aggressiveness against Salvador and Costa Rica and was suggested as a result of the con- centration of Nicaraguan troops on the borders of those countries.