readful blow to Mr. Spreckels.

The carrying trade with Hawaii is hardly large enough for several
companies to make money at it, and as the new line will endeavor by
reduced rates and increased accommodations to get the trade away from
Mr. Spreckels, the chances are that he will lose a good deal of money
through it.

It is in consequence of this that he is reported to have promised not to
oppose the annexation of Hawaii if his interests are not interfered
with.

It is said that President Dole is so anxious that nothing shall
interfere with the annexation treaty that he is willing to promise Mr.
Spreckels anything he asks in return for his assistance.

* * * * *

Central America is in a very disturbed condition once more.

Revolutions are in progress, or have just been suppressed in Guatemala,
Costa Rica, and Nicaragua; and Honduras is again in an unsettled state.

In addition to this, there is bad feeling between Costa Rica and
Nicaragua, which may break out into war at any moment.

As this last quarrel concerns the Nicaraguan Canal, in which our country
is so much interested, it is perhaps better to tell you about it before
we speak of the more serious troubles in Guatemala.

The cause of the unpleasantness between Nicaragua and Costa Rica is the
boundary line which divides them.

This boundary question involves the mouth of the Nicaragua Canal.

In 1858 it was agreed between the two countries that the channel of the
Rio San Juan del Norte at its exit into the ocean should be the dividing
line between them.

Owing to changes of current and other causes, the course of this river
has changed, until it is now several miles farther south than it was in
1858.

Costa Rica claimed that the boundary should be the spot where the old
channel was; Nicaragua, that the treaty called for the channel of the
river where it emptied itself into the sea, and that therefore the new
mouth of the river is the boundary.

It is a serious matter for Nicaragua, for the opening to the Nicaragua
Canal on the Atlantic Ocean side is through the Rio San Juan del Norte.
If Costa Rica were to own the mouth of the canal while Nicaragua owns
its body, there would be no end to the complications and troubles which
would arise.

The matter was therefore submitted to arbitration, President Cleveland
appointing the arbitrator.

The decision has just been rendered, and is against Costa Rica. The
arbitrator d