Los Angeles herald., 1910-01-08

sions were parcelled out. There were
features connected with them from the
start that nobody was anxious to make
public. But briefly stated, the system
was something like this: If zelaya or
some of his henchmen saw anybody
making money in any line of business
one of the latter applied to the govern
ment for the grant of a monopoly in
that line. The franchise would then be
sold, either to the hapless merchant
whose success was responsible for the
scheme, or to somebody else who would
set aside considerable share, say %
per cent of the profits, for Zelaya.
Not all thu concessions were out-and-
out monopolies, but practically all had
monopollstic features. Eventually
there came to be franchises for the
exclusive use of certain kinds of ves-
sells on Lake Nicaragua, on the San
Juan river and on the Escondido riv-
er. When Zelaya came into power the
concession on the San Juan was held
by a FranChman who had married the
daughter of President Zelaya. AS it
then stood the concession was not a
monopoly. Zelaya took it away from
the FrUnchman, made it a monopoly,
and granted it to a new concessionaire
with the usual stipulations for the
benefit of the presidential pocketbook.
There were mCnopolistic concession on
nails kerosene, cattle, dynamite, to-
bacco, whisky, groceries and shoes,
Sometimes, the concession would apply
only to certain district, beyond the
limits on which similar concessions
would be made to other persons. This
was done with regard to shoes, the
sale of which was conducted exclusive
ly by one firm on the Atlantic coast
and was equally the exclusive func-
tion of another company on the Pa
cific coast.
One of the most important of the
concessions granted by Zelaya was
made about five years ago to an Ameri-
can named Deitrick. Mr.. Deitrick is
said to represent a group of Pittsburg
capitalists. He enjoyed the exclusive
right to exploit every kind of mineral
deposit, whether new mines or aban-
doneG ones, in a region comprising
some 10000 square miles, excepting,
of course, mines then actually being
operated by other persons. Along with
this right went others almost equally
valuable. In return Deitrick under
took to pay the Nicaraguan govern
ment fixed sum per annum, improve
the navigation of the Wan3s river, and
create a town at Cape Gracias. This
franchise, in spite of the temporary
setback sustained by the company as
a result of the adjustment of the boun-
dairy between Nicaragua and Hondur-
as, by which it's operations were re-
stricted to the south bank of the Wanks
river, it is still "going concern" 1t
is worth noting that the whisky con-
cession in the Bluefields district was
originally granted to Juan Estrada,
the leader of the rebel forces.
An incident which explains Zelayas
methods may be appropriately relat-
ed here. 1t is the col4-.c-opera story
OF the wharf concession at Bluefields.
A wharf was unquestionably needed,
but not the kind of two-by-four affair
that was erected. For his trouble
the promoter was to receive large
sum anu to get it by collecting a
small fee on every package landed at
the wharf. OF course this arrangement
was by no means satisfactory to the
Bluefields merchants and they pro-
tested so vigorously that Zelaya was
at length compelled to cancel the con-
session. But as the promoter had
done the work, and was legally enti-
tied to his pay something had to be
found for Him. So Zelaya issued a de-
cree raising the already heavy GUS
toms duties at Bluefields, and as
signed a part of the proceeds to the
builder of the wharf. The result was
to put the price of living in Nicaragua
up to an altitudinous level, especially
in Blueflelds. Before Estrada took
up arms against Zelaya, butter sold
in Bluefields for $140 a pound, and
tobacco for $3 Estrada abolished the
concessions on 10th articles. The price
of butter has dropped to 40 cents per
pound, and tobacco has cheapened pro-
po; tionately.
The concessions weighed heavily VI.
on all the people of Nicaragua-upol Il
Leon as upon Granada-but Zelaya Wa
not content Herewith. Arbitrary al
rests of his enemies still further tent IN
ed to unite the mass of people agail1
him. For the first time in Nicaragu |
history the two rival cities foUsR
themselves driven into alliance agairth
the common enemy. At last even u
laya's cleVerness was unavailing \
keep Liberal and Conservative apa
Here is the fact which insured I T.
success of Estrada's campaign. Es T.
that neither city has permaner
buried the hatchet is a safe assertE.
What they will do in the future, oy
the present emergency has passda
is difficult to foretell.
TOmOrrOw-Turbulent Central Ame
IV-POlitics in Nicaragua.