THE INTEKOCEANIC CANAL PROBLEM 87 



of the nature of a treaty. There can be no doubt that the 

 company had need of eveiy resource at its command to extri- 

 cate itself from the awkward position into which it had 

 fallen, and it certainly played its strongest card in an appeal 

 to the Department of State (December 2, 1898). A corre- 

 spondence ensued, calling upon Nicaragua to show cause for 

 its summary action in cancelling the contract of the Mari- 

 time Company, and further asking for an opportunity on the 

 part of the company to make a defence. 



The year 1899 therefore opened with two rival canal com- 

 panies, each holding exclusive concessions from Nicaragua, 

 and each clamoring for public recognition. 



Now a third company, operating in Panama, suddenly 

 came forward with a flourish of concessions and a budget 

 of seductive arguments, further to confuse the already be- 

 wildered Senate and House committees who had in charge 

 all matters pertaining to Central American canals. When 

 the old Panama Company reached its disastrous end in 

 1889, its scattered wreckage was put through a process of 

 manipulation by the courts of justice in France. Singularly 

 enough, there remained some assets after the disaster, which, 

 by the careful management of the " liquidators," or receiv- 

 ers, were converted into a nest-egg for a new and more 

 healthy company; this was duly organized under the general 

 corporation laws of France on October 20, 1894. By decree 

 'of court, all the canal and canal works, the concessions, etc., 

 of the old company were transferred in full right to the new 

 one. An extension of time to 1904, and then to 1908, within 

 which to complete the Panama Canal, was obtained from the 

 Colombian Government, and the new company set to work 

 seriously and hopefully, though modestly in the matter of 

 expenditures, as compared with the reckless extravagance of 

 the previous management. 



The sudden intrusion of this new factor on the commercial 

 side of the canal problem led Congress into making an in- 

 vestigation into the merits and prospects of all three compa- 

 nies. From January 17th to the 25th, 1899, the Committee 

 on Interstate and Foreign Commerce of the House heard a 





