The sun., 1919-07-21
NICARAGUA NEEDS
HONEST INVESTORS
Trade Expert Discusses Dan
gers of Fake Company Pro-
motions in Latin America.
BY ADoLFo WAS.

Formerly Consul enerdl Of Nicaragua
IN San Francisco and Merioo City
Especially uritten for the Latin Amer
icdn Section OF THE sun
We have established in our former
articles that the three vital needs OF
Nicaragua for the development OF It's
resources are: immigration transporta-
ton facilities and the engagement OF
big foreign companies for al kinds OF
commerce and trade.
When the Government succeeds In the
enactment of good immigration laws
ana its due enforcement; when IL has
rut all its efforts and possibilities in the
construction OF railways and roads,
which are now lacking. the frst impor-
tant step will be the making OF contracts
with foreign corporations that may go
to that country for the promotion Of
agriculture and industry
But another question arises when we
think OF considering this matter in the
proper and sensible way: with what
corporations or companies shall the
Ncaraguan Government deal?
1t has been our disgrace and mis-
fortune that many foreigners who hap
pcHed TO have gone to Nicaragua. repre-
senting themselves as connected with
big companies in the pursuance OF bust
ress, have deceived the Government and
| the people. and brought troubles and en-
tanglements through contracts made
| without proper care.
The so-called companies have been
more or less fakes and their representa-
tlves INSCRIPTIONS parties who do not
Hesitate In offering things that they
know they are unable to fulfl
Duty of Executive.
| Who ia TO blame for the difficulties
| which arise after those contracts are
made? Who is really responsible II they
| are not kept? The Government in the
| first place. The head executive makes
| the preliminary arrangements and then
through the Ministry Of Public Works
pushes them through Congress- bringing
to bear all its influence on Representa-
uves and Senators to secure their APP
prevail The guarantee for the contracts
IL generally reduced to deposit OF some
| thousands OF dollars, which the mar
who represents the company puts at the
order of the National Treasury. Wher
this man has done his Job he comes back
to America to see to whom he can sell
the contract, which is really a conces-
sion for the promotion OF monopoly
Once the concession is sold the trouble
begins and the claims and the whole
mess. which ends in long controversies
in the engagement OF lawyers for both
parties-the Government and the gran.
tees-and in the payment OF good
amount of money to the grantees for
the settlement OF the whole thing.
Thorough Investigation Needed.
To prevent all these complications and
calamities the Government OF Nicaragua
has but one way left, and that is TO find
out beforehand with what sort of COM
panies It is going to deal; where they
are really Incorporated. what are their
properties their liabilities and their
reputation in the financial markets. In a
word, to see II they are reliable and
worth TO be trusted in every line, Once
this is done there should not be the
slightest possibility OF complications and
failures,
But this has not been attended to, for
those contracts have not been made in
the interest Of the people and OF the ma
ton they have been made for the sake
OF greed and grating, without paying
attention to it's consequences.
It is TO be hoped that In the future
the Nicaraguan Government will crush