Los Angeles herald., 1909-12-15
ASSOCIATED Press1

WASHINGTON. Dec. 14.-One Of the
projects for the solution of the Mica
raguan situation that has been strongly
urged on the state department is the
esta blishment of a protectorate, either
singly by the United States or Jointly
with Mexico.
This may be regarded as necessary in
the event that the insurgents fail to
displace Zeaya by their own efforts,
and it may follow an insurgent triumph
that would leave the country without
responsible leaders.
1t is said precedent for such action
would be found in the cases of Santo
Domingo and Cuba.
Precedents Are Found
In the first instance. large sums Of
money due American citizens could not
be collected from the Dominican gov
ernment (then in a state Of chaos) by
diplomatic means.
In the case Of Nicaragua, the gov
ernment has defaulted payments In
agreed allotments on the Emory claim.
In the state of Cuba, state of dtsor-
der that threatened lives and property
of Americans and other foreigners was
the warrant for intervention
Todays news from Managua, indi-
eating the imminence of riOting beyond
the ability of the local government
forces to suppress. might serve as
basis for landing the marines and their
dispatch to Managua is necessary TO
maintain order. Just as was done on the
isthmus of Panama few years ago.
1t is not part of the plan to maintain
force in Nicaragua permanently but
only long enough to permit of fair and
free general election and the establish
ment of a president pledged to observe
constitutional obligations.
The attitude of the government of
Mexico in the Nicaraguan situation is
set forth in a document that today was
placed in the hands of Secretary Knox
by Governor Creel Of Chihuahua.
Mexico's Views Presented
Governor Creel. who recently arrived
in Washington, had an interview with
Secretary Knox this afternoon. GOV
ernor Creel presented a statement from
President Diaz containing his views
At the state department this after
noon It was announced that no state
ment could be made with respect to the
Mexican note, for the present at least,
or until department officials had an
opportunity 10 give it their thorough
consideration. It is expected, however,
that the governments reply may be
ready for delivery to Governor Creel
within the next day or two.
A report fran Nicaragua that the
Nicararuan congress, probably an
tiefpafing the early retirement Of
President Zelaya, attempted to au-
thorize a number Of important
concessions to Zelaya, calls atten-
ton to the number OF vastly
remunerative monopolies already en-
loved bv Zelaya and his friends. The
facts as TO these monopolies are con-
tainel In official reports to the state
department and are said to be sus-
ceptible of absolute proof.
STRANGE Basis for Uncle Sam
This attempt at wholesale monopoliza-
ton of the resources Of the republic
and. IN fact. the recognition or tolera-
ton of monopolies in any form, is In
direct and deliberate violation OF the
Nicara guam constitution, which spe-
cifcally ordains that there shall be
no monopolies that pay very large
dividends"
one of those is called the aguar-
diente syndicate, which handles rum
made from sugar cane. This monopoly
paid in the year - per cent ana sun
another is the cattle syndicate, which
includes slaughter tax and cattle eX-
port duties, which pays per cent
month. Other mOnopolies include the
following:
The sole right for expectation Of
cocoanuts on the Atlantic coast; the
exnortatlon Of turtles, spouEes, pearls
and mother OF pearl on the Atlantic
coa st. the fisheries on the Pacific coast;
a company formed for the Introduction
of crude oil for refining in Corinto;
the monopoly Of nail manufacturing;
the soap trust.
1t Is said that President Zelaya con-
trolls ell the monopolies and conces-
sions herein mentioned and receives
the lions share of their abnormal
earnings. The existence of these and
many other unlawful monopolies has
created a great burden for the Mica
raguan people and has resulted in an
almost complete paralysis Of trade.