BANCROFT 
 LIBRARY 
 
University of California Berkeley 
 
THE NICARAGUA CANAL. 
 
THE NICARAGUA CANAL. 
 
 AN OPEN LETTER 
 
 TO 
 
 The PRESIDENT of the UNITED STATES 
 OF AMERICA, 
 
 PROTESTING 
 
 AGAINST THE PROPOSED HILL TO INCORPORATE 
 THE MARITIME CANAL COMPANY OP NICARAGUA 
 
 (Senate, 1305 ; House, 5615, 60th Congress, 188S), 
 
 AND AGAINST JOINT RESOLUTION (s. n., 40) ; 
 
 FHUM T1IK 
 
 AMERICAN ATLANTIC & PACIFIC 
 SHIP CANAL COMPANY. 
 
Mb 
 
 To His EXCELLENCY GROVER CLEVELAND, 
 
 PRESIDENT OF THE UNITED STATES, 
 
 WASHINGTON, D.C. 
 
 SIR: 
 
 THE AMERICAN ATLANTIC AND PACIFIC SHIP CANAL 
 COMPANY on January 12th, 1888, addressed the following 
 
 PROTE ST 
 
 " To THE HONOURABLE THE SPEAKER 
 
 " AND MEMBERS OF THE HOUSE OF REPRESENTATIVES 
 
 "OF THE UNITED STATES. 
 " SIRS : 
 
 " The attention of this Company has been called to the matter 
 of the introduction in the Congress of the United States of a ' Bill to 
 Incorporate the Maritime Canal Company of Nicaragua.' 
 
 " Against the consideration and passage by Congress of said above Bill 
 to incorporate the Maritime Canal Company by Nicaragua, THE AMERICAN 
 ATLANTIC AND PACIFIC SHIP CANAL COMPANY respectfully urges its 
 earnest and most emphatic protest. The grounds for this action are 
 as follows, to wit : 
 
 " I. THE AMERICAN ATLANTIC AND PACIFIC SHIP CANAL COMPANY 
 most respectfully beg to state that the said AMERICAN ATLANTIC AND 
 PACIFIC SHIP CANAL COMPANY is a legally organised Corporation having a 
 Charter of Perpetual Succession granted, enacted and decreed by the 
 Government of the Republic of Nicaragua. 
 
 " II. The State of Nicaragua granted, under contract, decree and 
 charter to said AMERICAN ATLANTIC AND PACIFIC SHIP CANAL COMPANY 
 the exclusive right and privilege to construct, own and manage a Ship Canal 
 across the territory of said State from the Atlantic to the Pacific Ocean. 
 
 " III. Eminent counsel have given opinion ' That the right conferred 
 upon THE AMERICAN ATLANTIC AND PACIFIC SHIP' CANAL COMPANY by 
 the Republic of Nicaragua, in the contract between that Republic and the 
 Company, to build a Ship Canal across the territory of the Republic survives 
 unimpaired in favour of that Company.' 
 
 " IV. The location of the line of the Canal, as adopted and fixed by 
 this Company, is as follows, to wit : Beginning at a point at or near the 
 Port of Greytown, on the Atlantic Ocean, in the Republic of Nicaragua, 
 and running thence in a general westerly direction to the river San Juan ; 
 thence up and with the course of said river, passing into the Lake Nicaragua, 
 through the said Lake, and thence by a Canal cut into the Rio Grande, 
 
6 
 
 thence by the valley of the said Rio Grande to a point at or near the Port 
 of Brito on the Pacific Ocean, in said State of Nicaragua, 
 
 "V. This Company has heretofore expended large sums of money 
 upon this work, in the improvement of the San Juan River, the construc- 
 tion of houses, the building of highways from the Lake to the Pacific Ocean 
 at San Juan del Sur, &c., and this Company is now daily expending sums 
 of money in the necessary preparations for the commencement and early 
 completion of its Ship Canal across the territory of Nicaragua. 
 
 "VI. This Company has recently made contracts with entirely 
 responsible contractors for the construction of all of the locks, gates, 
 valves, and machinery for operating the same, for all the warehouses, 
 stations, piers, docks, wharves, bridges, iron work and Railway to be 
 constructed in connection with the Canal ; and has also made a contract fo r 
 the construction of the western division of its Ship Canal, extending from 
 the Lake to the Pacific Ocean. Contract? for nearly all of the work of con- 
 structing the Canal have been let to entirely responsible contractors. 
 
 " VII. This Company expects to complete its inter-oceanic Ship 
 Canal across the territory of Nicaragua within three years' time, if not 
 prevented by the prejudicial action of the Government. 
 
 " VIII. In order to provide sufficient funds for the construction of its 
 Ship Canal, the Company has found it necessary to borrow money upon the 
 first mortgage Bonds of this Company, and for that purpose the Company 
 has authorised and issued one hundred million dollars of first mortgage 
 Bonds of this Company ; these bonds have in part been delivered to the 
 subscribers and owners thereof; and to fully provide for the repayment of 
 eaid bonds at maturity, this Company has legally executed and delivered to 
 the Trustee, who has received the same, and undertaken to execute the 
 trust thereby reposed in him, a deed of mortgage for $100,000,000, which is 
 made a first lien and mortgage upon the Ship Canal, franchise, rights, and 
 all the property of this Company, situated and being in said State of 
 Nicaragua. 
 
 " IX. This Company begs further to state that the so-called Maritime 
 Canal Company of Nicaragua, and the parties named as corporators, are 
 simply interlopers who are trying to deprive THE AMERICAN ATLANTIC 
 AND PACIFIC SHIP CANAL COMPANY of its right of way, and its exclusive 
 right to construct and manage its Ship Canal across the territory of Nicaragua 
 and its vested rights of property, which has cost this Company large sums 
 of money, laboriously and honestly expended in this work and for these 
 purposes. 
 
 " X. This Company further states, upon information believed to be 
 true, that certain parties representing and claiming to be the Maritime 
 Canal Company of Nicaragua, have confederated and combined, and are 
 now engaged in an attempt to seize upon the right of way, water channels, 
 rivers and other vested rights and properties of THE AMERICAN ATLANTIC 
 AND PACIFIC SHIP CANAL COMPANY, in the State of Nicaragua. 
 
" In order to accomplish their designs against this Company, the said 
 parties have recently sent their emissaries and agents to Nicaragua, and 
 these ageiit?, by specious representations, and by offering and promising 
 to give to the Government of Nicaragua large amounts in the shares, bonds, 
 certificates or title deeds of the said proposed Company, amounting to not 
 less than 40,COO shares or bonds of a face value of not less than 
 $4,000,000, and by a further loan of an insignificant sum of money, 
 which, under certain conditions, was agreed to be deposited to the credit of 
 the Government. 
 
 " These parties, by holding out such inducements, by making promises 
 and agreements, influenced, and obtained from the Government of Nicaragua 
 a conditional contract, or so-called concession. This Company is advised 
 by counsel that this so-called concession, and contract made by the Govern- 
 ment ivith said Maritime Canal Company, is unconstitutional and lee/ally void 
 and would so be held and decided by any international tribunal or court of 
 justice. 
 
 " By reason oi' the conditions and provisions of the grants, statutes, 
 decrees and contracts made by the Government of Nicaragua to and with 
 THE AMERICAN ATLANTIC AND PACIFIC SHIP CANAL COMPANY, the 
 Government could not legally make a new concession or contract with any 
 other party or company that would violate existing contracts, and seize 
 upon and take away the vested rights and property, lawfully acquired, 
 owned and held by this Company. 
 
 " XI. This Company also deems it proper to call your attention to the 
 unwise character of some of the provisions of said so-called concession and 
 contract, as made by the Government of Nicaragua to the Maritime Canal 
 Company, especially Article 44, which provides that the products, com- 
 merce and ships sailing under the flags of certain favoured Governments 
 and States can pass through the Canal at a reduction of 50 par cent. 
 of the tariff or tonnage dues charged upon vessels sailing under the United 
 States flag. 
 
 " This unreasonable and unjust discrimination against American com- 
 merce, and vessels sailing under the American flag, is the more remarkable, 
 when it is known that the Agent of the so-called Maritime Canal Company, 
 who made this contract, has been for a number of years a servant in the 
 employ and pay of the Government of the United States, and that some of 
 the parties claiming to be interested in said Company are stated to be officers 
 under pay in the United States Navy, and others claim American 
 citizenship. 
 
 " Y"et notwithstanding the unwise, unpatriotic and unjust discrimina- 
 tions of said contract, or so-called concession, against American commerce 
 and all vessels sailing under the flag of the United States, these same servants; 
 patriotic officers and public-spirited citizens, have with unblushing assurance 
 introduced a Bill into the Congress of the United States, and ask for the 
 enactment of a law to incorporate this foreign Company, that notoriously 
 
8 
 
 proposes to discriminate in the most unjust manner against everything 
 American but themselves. 
 
 " This Bill to incorporate the Maritime Canal Company of Nicaragua, 
 which these parties ask the Congress of the United States to enact into a 
 law of the laud, is nothing more or less in effect than a ' Letter-of-Marque ' 
 against the rights, commerce and property of American citizens, and is 
 intended as an c act of spoliation ' against THE AMERICAN ATLANTIC AND 
 PACIFIC SHIP CANAL COMPANY. 
 
 "XII. The so-called Maritime Canal Company of Nicaragua, knowing 
 full well the inadequacy of their title, and the unconstitutionality of their so- 
 called contract or concession, as made with the Government of Nicaragua, 
 are seeking to commit the United States Government to the special pro- 
 tection of this interloping company by securing an Act of Congress 
 incorporating said company, and it is expected by them that if such Act is 
 secured, it will give the so-called Maritime Canal Company of Nicaragua a 
 quasi standing before the public, which in the face of the priority and 
 exclusive rights of THE AMERICAN ATLANTIC AND PACIFIC SHIP CANAL 
 COMPANY they otherwise would not have. 
 
 "XIII. As simple act of justice, the Bill to incorporate the so-called 
 Maritime Canal Company should be withdrawn or defeated. These parties 
 should not be allowed to interfere with a legitimate company who are 
 making progress in this great work, and who have exclusive and inalienable 
 rights to said property of said Ship Canal across the territory of Nicaragua. 
 
 " XIV. THE AMERICAN ATLANTIC AND PACIFIC SHIP CANAL COMPANY 
 have an abiding faith in the integrity of the Congress of the United States, 
 and this Company does not believe that Congress will pass an Act which 
 has for its objects and purposes robbery and spoliation of American citizens, 
 and which would disregard the Treaty obligations of the United States 
 with a great and friendly nation. 
 
 " XV. This Company finally begs to state that the United States and 
 Great Britain are joint treaty guarantors to the protection of this Company 
 during the time it is engaged in the construction of its Ship Canal, as and 
 in the terms of the Clayton-Bulwer Treaty made between those two 
 Governments on the 19th day of April, 1850." 
 
 " The Company has the honour to be, 
 
 " Your most obedient servant, 
 "THE AMERICAN ATLANTIC AND PACIFIC SHIP CANAL COMPANY. 
 
 "By A. L. BLACKMAN, President" 
 [SEAL.] 
 
 This Company is advised by counsel, and begs further to 
 state that it is ready and prepared to put a large force of men 
 to work in the construction of their Ship Canal in Nicaragua, 
 and so notified the Government of that Republic, as did also 
 the contractors of this Company. 
 
USING THE NAVY AS A CAT'S PAW. 
 
 But the settlement of past differences, and the good under- 
 standing as between this State and the Company, has been 
 very much prejudiced, hindered, obstructed and delayed by 
 the action of certain designing persons and officers connected 
 with the United States Navy ; and these persons have actively 
 co-operated for a number of years past to obstruct, hinder, 
 delay, and if possible prevent the American Atlantic and 
 Pacific Ship Canal Company from building its canal across the 
 territory of Nicaragua. 
 
 These same officers and persons, while in the employ- 
 ment and pay of the United States Government, have systema- 
 tically used their positions as such officers, and the prestige of 
 being connected with the United States Government, to 
 influence and prejudice the said Government of Nicaragua 
 against the American Atlantic and Pacific Ship Canal 
 Company, in order that they might secure a concession, and 
 take control of this canal route for their personal gain. 
 
 As proving the illegal course pursued, and the relations 
 which exist between certain officers of the navy and certain 
 officials in Nicaragua, and the character of the combination in 
 which said officers are engaged against the property and rights 
 of American citizens, the Company begs to refer to an adver- 
 tisement or notice which appeared in August, 1886, in the 
 Nno York Herald and the National Republican newspapers, 
 which reads as follows : 
 
 " TO WHOM IT MAY CONCERN. From competent authority, by 
 request, I inform the public that a so-called Atlantic and Pacific Canal 
 Company, having a supposed office at No. 1, Broadway, New York, is not 
 known to or recognised by the Government of Nicaragua. Should agents 
 or contractors of this alleged Company present themselves in Nicaragua, 
 they will be repressed. For further information, address Daniel Arnnien, 
 Washington, D.C. DANIEL AMMEN." 
 
 This was signed by Daniel Ammen, whose rank is Bear- 
 Admiral, United States Navy. 
 
 To an impartial or judicial mind we believe the above will 
 be proof conclusive that a Rear- Admiral of the U S. Navy is 
 one of the agents of a foreign Government seeking to restrain 
 citizens of the United States of their legal rights, and actively 
 
10 
 
 abetting and aiding said foreign Government in the sequestra- 
 tion of property of great value, lawfully acquired at enormous 
 expense, and legally owned by American citizens. 
 
 In order that you, Sir, may more fully understand the 
 character of the opposition which has employed the active 
 energies of certain evil-disposed persons and officers of the 
 U. S. Navy against the American Atlantic and Pacific Ship 
 Canal Company, wo beg to refer as briefly as possible, and to 
 merely outline the record of the official actions, various schemes, 
 and many adroit devices practised by these parties, now calling 
 their Association the Maritime Canal Company of Nicaragua. 
 
 In following this brief outline of official action of certain 
 officers of the United States Navy, which is so closely inter- 
 woven with the history of the so-called Maritime Canal Company 
 of Nicaragua, under the several aliases which they have 
 seen fit to call their Association, it is necessary to trace 
 the line of official action of these officers and persons in 
 the employ of the United States, and to enquire whether their 
 several actions were solely for the good of the public service 
 and in the line of their duties, or whether or not it has been an 
 adroitly managed conspiracy from the year 1872 up to the 
 present time ? 
 
 Have their several acts as such officers been for the 
 purpose and design of acquiring large personal advantages 
 and gains at the expense of the United States, and at the cost 
 and spoliation of American citizens ? Has not a conspiracy 
 existed and been actively engaged in by the said officers 
 of the Navy and other persons, their confederates ? 
 
 Were not the several United States surveying expe- 
 ditions sent to Nicaragua at the sole expense of the United 
 States, and which cost, such large sums of money, insti- 
 gated by them, as well as directed and managed by them, 
 their agents or friends, who co-operated with these said parties ? 
 And if it be found that they were chiefly instrumental, through 
 their machinations, combinations and influence in the several 
 executive departments of the United States in the dispatch of 
 ships of the United States, and expensive surveying expeditions 
 to Nicaragua it is pertinent to enquire if the ultimate object of 
 
11 
 
 these parties was to influence the Government of Nicaragua to 
 treat with them and grant them a concession to build the canal 
 and to get control of the route so expensively surveyed hy the 
 Government of the United States ? Furthermore, were not such 
 surveys, which were ostensibly made by the United States Navy 
 Department for the Government, really and in fact intended by 
 these persons privately to serve their personal ends, and to be 
 freely used by them without proper compensation to the United 
 States Government ; and have not these parties so used 
 these surveys, plans, profiles and details in their various 
 negotiations ? 
 
 It may also be pertinent to enquire whether or not 
 officers of the United States Navy, under pay, have the 
 right to use the property and public money of the United 
 States Government to promote private schemes and companies 
 for personal gains ? 
 
 It is also proper to enquire if the officers of the United 
 States Navy and others receiving pay from the United States 
 Government have a right to use their official positions to oppress 
 and despoil citizens of the United States of their vested rights 
 of property in a foreign country ? 
 
 It may also be reasonably enquired if the officers of the 
 United States Navy, and persons in the pay of the United 
 States Government, are permitted to act as the agents and tools 
 of a foreign Government, or to combine, abet and actively aid 
 such foreign Government or its officials in their efforts to 
 despoil American citizens of their vested rights, sequestrate 
 the properties of an American Company and be the princi- 
 pal receivers of such properties ? And whether or not such 
 officers and persons shall be permitted, by any stratagem or 
 artfully devised act, to seize upon, occupy and use the property 
 legally acquired and owned by citizens of the United States, 
 though said property may have been attempted to be confis- 
 cated and sequestrated by a foreign Government. 
 
 It may also be pertinent to ask if the officers of the Navy 
 and engineers and other persons, as well as the ships of the 
 United States, shall be detailed to promote and to further 
 the private schemes of such officers ? 
 
12 
 
 Is it improper to enquire why long leave of absence, 
 under pay, is granted to officers and engineers in the Navy 
 Department, where such persons and officers are engaged in a 
 private enterprise, and in the employ and pay of a private 
 Company ? 
 
 It is pertinent to this enquiry to ascertain if the 
 following persons, supposed to be connected and interested in 
 said Maritime Canal Company, are now drawing pay from the 
 United States Treasury : 
 
 A. G. Menocal, Chief Engineer (United States Navy). 
 
 H. C. Taylor, General Manager (United States Navy). 
 
 J. W. Miller, Secretary. 
 
 E. E. Peary, Second Chief Engineer (United States Navy). 
 
 Daniel Ammen, United States Navy. 
 
 A. S. Crowninshield (United States Navy). 
 And others. 
 
 Also how many of the following list of engineers in the 
 employ of said Maritime Canal Company of Nicaragua are upon 
 leave of absence, drawing pay from the United States Treasury ? 
 
 A. Gr. Menocal 
 
 E. E. Peary 
 
 J. Francis Le Barren 
 
 F. P. Davis 
 Domingo G. Castaya 
 I. W. Eithards 
 
 G. Savage 
 P. H. Bevier 
 Eicardo Molina 
 Calixto Guiteras 
 
 W. J. Maxwell 
 J. F. Perez 
 W. Y. Alford 
 J. G. Holcomb 
 F. T. Bernhard 
 H. C. Miller 
 McD. Craven 
 H. C. Litchfield 
 E. N. Hunt 
 J. T. Ford. 
 
 The queries suggested above are serious, and more than 
 compromising, if true. The documents in support of such 
 suggestions are official publications. It is to them we turn 
 in order to trace the official action and motives of these 
 parties. First we will refer to the year 1872. See Senate ex. 
 Doc. No. 57, 43rd Congress, 1st sess., 1874, " Reports of 
 " Explorations and Surveys for location of a Ship Canal between 
 " the Atlantic and Pacific Ocean through Nicaragua," page 33, 
 where we find the following order : 
 
13 
 
 " Navy Department, Bureau of Navigation, and Office of Detail, 
 
 " Washington, October 17, 1872. 
 
 " Sir, You are hereby detached from special duty in the Bureau of 
 Yards and Docks, and on the 22nd instant you will relieve Commander 
 Chester Hatfield in command of the Nicaraguan Surveying Expedition, who 
 has been directed to turn over to you all orders, books, maps, instruments 
 and information of every kind pertaining thereto in his possession. He will 
 furnish you with memoranda relating to everything connected with the 
 expedition and its equipment. The results of the expedition, as far as 
 obtained before the setting in of the rainy season, are now being brought 
 up at the Washington Navy Yard. 
 
 " You will complete this with all convenient dispatch, and make such 
 preparations in the organisation, and obtaining necessary outfits of all kinds 
 as will enable you to leave Hampton Roads by the 1st of December next, 
 either on board of the " Kansas " or some other national vessel that will be 
 detailed for the purpose. 
 
 " By direction of the Secretary, 
 
 " Respectfully, 
 (Signed) "DANIEL AMMEN, 
 
 " Chief of Bureau. 
 
 " Commander Edward P. Lull, U.S.N., 
 "Washington, D.C. 
 
 (Endorsed.] 
 
 " Relieved Commander Hatfield and assumed command October 22, 1872. 
 
 " EDWARD P. LULL, 
 
 " Commander. 
 "S. ex. 57-5." 
 
 Attached to the expedition thus ordered was Lieutenant 
 Jacob W. Miller ; and Civil Officer, A. GK Menocal, Chief Civil 
 Engineer. Let us see if the names of these two gentlemen, or 
 those of Daniel Ammen and Edward P. Lull, again appear as 
 connected with any canal scheme or concession thereafter ? 
 
 This United States exploration and surveying expedition 
 proceeded to Nicaragua, and ran a line of levels from ocean to 
 ocean, following the line previously located by the able engineers 
 of the American Atlantic and Pacific Ship Canal Company, 
 and having completed the line of levels and certain 
 other hydrographic work, returned to Washington and pre- 
 pared elaborate reports in great detail. The next step was to 
 have these reports printed at Government expense, and a 
 resolution was put though the Senate, the nature of which is 
 explained by the following : 
 
14 
 
 " Navy Department, Washington, June 16, 1874. 
 
 " Sir, I have the honour to acknowledga the receipt of an attested 
 copy of a resolution adopted by the Senate on the 13th inst., directing the 
 secretary of the Navy ( to furnish the Senate with the report and maps of the 
 survey to ascertain a practicable route for an interoceanic ship canal, via the 
 Lake Nicaragua,' and in compliance therewith to herewith transmit the 
 report and maps called for. 
 
 " Very respectfully, &c., 
 
 (Signed) "GEO. M. ROBESON, 
 
 "Secretary of the Navy. 
 11 Hon. M. H. Carpenter, * 
 
 " President (pro tempore) United States Senate." 
 
 The reports and details having been printed at United 
 States Government expense, the next thing done by the gentle- 
 men was to try and get a concession from the Government of 
 Nicaragua ; and for whom and in whose name was this con- 
 cession asked ? For no others but these identical naval officers 
 and their associates ! This was brought about in this wise : 
 The same Mr. A. G. Menocal, Civil Engineer, United States 
 Navy, a member of, and commissioned by, the Provisional Inter- 
 oceanic Canal Society, having obtained leave of absence, appeared 
 in Nicaragua and commenced active negotiations to obtain from 
 the Government of Nicaragua for the said Society a concession 
 to build a canal across the territory of Nicaragua. After 
 long negotiation and much difficulty, the said agent, by offer- 
 ing and agreeing to give a large block of the capital stock of 
 the proposed Canal Company, amounting to five per cent, of 
 the whole capital to be issued, and not to be less than 
 $3,000,000 in amount, finally succeeded in getting a conditional 
 contract or so-called concession from the Government. This 
 concession and grant was signed upon the part of the 
 Government of Nicaragua by A. D. Cardenas and Znvala, and 
 on the part of the Society by A. G. Menocal (all again here- 
 after to appear), in this record. 
 
 As soon as the concession was signed, the agent hastened to 
 Washington, and immediately upon arrival repaired to the 
 
 State Department, and there had a translation of the 
 concession revised by the official translator of 
 the State Department! 
 
15 
 WORKING THE U.S. CONGRESS. 
 
 Immediately thereafter, in 1880, application was made by 
 these parties to the Congress of the United States for a charter 
 for the Maritime Canal Company of Nicaragua. The next suc- 
 ceeding steps are well detailed by those who took them. We 
 quote from a report made by Provisional Interoceanic Canal 
 
 Society, as follows : 
 
 " New York, March 16, 1883. 
 
 " To the Members of tlie Provisional Intercoeauic Canal Society. 
 
 *' Gentlemen : The Executive Committee deem it advisable to present 
 for your consideration such facts relating to the Nicaragua Canal project, 
 and the present condition of that interest, as will enable you to form 
 intelligent opinions as to the value of the Society's franchise, and to ask 
 that your early attention be given to the subject, in order that a course of 
 action may be determined. 
 
 " PROCEEDINGS IN CONGRESS. 
 
 " In 1880 application was made to Congress for a charter for the 
 Maritime Canal Company of Nicaragua. The Tehuantepec Ship Railway 
 fccheme so far interfered as to delay the report of the Committee in favour 
 of our measure until too late for further action by Congress during that 
 session. 
 
 *' In 1881 a bill to incorporate the Company was introduced with the 
 added feature of a guarantee by the United States of 3 per cent, yearly net 
 earnings for 20 years from and after the completion of the Canal. 
 
 " Committees of both Houses of Congress reported favourably upon this 
 measure, the guarantee to attach only to the actual cost of the Canal not 
 exceeding 75,000,000 dols. The combination of opposing interests, including 
 the Ship Railway scheme, which these reports developed, was very strong. 
 
 " The Bill came up as unfinished business the past winter. A vote in 
 the House of Representatives to consider it resulted in 127 ayes to 76 noes 
 not quite the requisite two-thirds' vote. The guarantee feature was 
 dropped, it being apparent that otherwise no time could be given to the Bill 
 by that Congress. 
 
 " As the matter remains, two Committees adopted the feature of a 
 Government guarantee. A large majority of the House practically voted 
 for the incorporation, with authority to issue 100,000,000 dold. of stock and 
 50,000,000 dols. of bonds. 
 
 " A Senate caucus more than once selected the measure as one of the 
 many then pending to be taken up and acted upon. This purpose was 
 defeated by the Tariff Bill. 
 
 " The Executive branch of the Government is very earnestly favourable 
 to our enterprise. 
 
 "INCORPORATION BY THE UNITED STATES. 
 "The importance of an incorporation by the United States .is, in fact, 
 limited to its effect in securing subscriptions abroad. The United States, 
 
16 
 
 by treaty with Nicaragua, entered into June 21, 1867, are pledged to the 
 security of any undertaking for an interoceanic communication across that 
 country. By this treaty the United States extend their protection over 
 and guarantee the neutrality, security, and innocent use of all such com- 
 munications. In the event of imminent danger to the lives and property 
 of their citizens, forces may be landed, without the formality of consent by 
 Nicaraguan authorities, for the protection of the menaced lives and 
 interests. (See the Treaty.) 
 
 "EXTENSION OF TIME FIXED IN THE CONCESSION. 
 
 " It became necessary to petition the Government of Nicaragua for an 
 extension of the time fixed in the concession for the organisation of the 
 Canal Company. Captain E. P. LULL, U.S. Navy, who had con- 
 ducted the canal surveys in that country, went out as the representative 
 of the Society, and secured an extension to September 30, 1884. 
 
 PRESENT STATUS OF THE PROJECT. 
 
 "The political events of the past year and the change in party control in 
 the next Congress make it doubtful that any legislation, beyond an act of 
 
 incorporation, can be secured from that body. 
 
 ******** 
 
 " The interests of the Society are large, and every member, whatever the 
 demands upon his time, may well exert himself to secure attention of 
 financial men to the merits of the enterprise. 
 
 " Attention is invited to a copy of the appended Report of the Com- 
 mittee on Foreign Affairs of the House of Representatives,* and to the 
 appended article of Dr. Bransford, United States Navy. 
 " (Signed) 
 
 "SETH L. PHELPS, 
 
 FREDRIC BILLINGS, 
 "GEORGE B. LORING, 
 " ALEXANDER TAYLOR, 
 "DANIEL AMMEN, 
 
 <l Executive Committee." 
 
 It will be seen from the signatures of the Executive Com- 
 mittee, that DANIEL AMMEN, Rear-Admiral, U.S.N., 
 SETH L. PHELPS, United States Minister to Peru, and 
 GEORGE B. LOSING-, were all in the Government employ. 
 Alexander Taylor and Frederick Billings were not. 
 
 It is further to be noted that Commander E. P. Lull, U.S.N., 
 is the Agent engaged to negotiate for the Company, in order 
 that his prestige and authority in Nicaragua as an officer of 
 the United States Navy might be turned to the account of the 
 Interoceanic Canal Society. Was he not selected by Admiral 
 Ammen in order to do this very thing ? Does not this fact clearly 
 
 * 47 Congress, 1st Sess,, Report No. 1698, July 21, 1882, Nicaragua Canal. 
 
17 
 
 establish the complicity and design of these officers in organis- 
 ing and persistently conducting a conspiracy from the year 1872 ? 
 Accompanying and forming part of said report of this 
 Executive Committee was an elaborate report in great detail; 
 including estimates of cost of construction, an expensively pre- 
 pared plan and profile map of the proposed canal, under the 
 following title : 
 
 "PLAN AND PROFILE 
 
 OF THE 
 
 -NICARAGUA SHIP CANAL, 
 
 "FROM SURVEYS BY THE U.S. SURVEYING- EXPEDITION OF 1872-73 
 "AND ADDITIONAL SURVEYS IN 1876-77 AND 1880, 
 
 BY 
 
 "A. GK MENOCAL, CITIL ENGINEER, TJ.S.N. 
 1882. 
 
 -SCALE 
 
 The report further says : 
 
 "ESTIMATED COST. 
 
 " The estimates on which calculations of cost have hitherto been based 
 were made ten years ago by the United States surveyor, since which time 
 excavators, dredgers, appliances, and explosives have all been greatly 
 improved and the cost of the work thereby diminished ..... 
 
 " The actual cost of masonry and concrete on W. S. R. R. is much less 
 than Mr. Menocal's estimated cost, with no advantage as to materials. . . 
 
 " Having in view the above facts, we can feel great confidence in the 
 results of comparison with estimates of well-known engineers of the 
 
 army. . . ." 
 
 " ESTIMATES. 
 
 " General Gilmore and Major Craighill, of the Engineer Corps, prepared 
 estimates respectively for a ship canal across Florida and for one between 
 Chesapeake and Delaware Bays. They compare as follows with those for 
 the Nicaragua Canal prepared by Mr. Menocal. . . ." 
 
 This report fully establishes how and by whom, and 
 for whose benefit, these expensive Surveys, Plans, Maps, 
 Profiles, Details, Reports, and Estimates have been used. 
 The foregoing records are only a few of the many proofs 
 at hand to show that these Plans, Surveys, Estimates, 
 Details, Reports, and Maps, although ostensibly made by the 
 United States Navy Department for the Government, have in 
 reality been used and employed by these parties in the 
 furtherance of their scheme. 
 
18 
 
 It is not necessary to make further enquiry as to who insti- 
 gated, inspired, commanded and directed the three United 
 States Navy Surveying Expeditions for the canal route in 
 Nicaragua, or for whose use all this expense incurred by the 
 United States was designed. These statements of their Executive 
 Committee are quite sufficient ; no further explanations are 
 required from these naval officers. 
 
 These surveys, and the supposed ability of these adroit 
 gentlemen to work the United States Congress, reach the 
 official ear of the Departments, employ the Navy Depart- 
 ment with its ships, and use the United States Treasury 
 in the furtherance of their various schemes, together 
 with large blocks of the worthless stock of the proposed 
 Maritime Canal Company of Nicaragua (a few shares of which 
 have been placed where they will do the most good), and other 
 elements of usefulness, such as an easy conscience, and health 
 sufficient to draw their monthly pay from the United States 
 Treasury, are the assets that up to a few months ago constituted 
 about all the stock-in-trade of this so-called Maritime Canal 
 Company of Nicaragua. 
 
 In this record do we not find proof conclusive how every 
 Executive Department of the Government the State Depart- 
 ment, the Treasury Department, the Navy Department, its 
 officers, men and ships, Cabinet Ministers, Committees of both 
 Houses of Congress have been and are now being worked for 
 the benefit of these adroit, long-headed manipulators of depart- 
 mental secrets and governmental influence ? 
 
 It will also be remarked from the above report of the 
 Executive Committee of the Provisional Interoceanic Canal 
 Society that these parties had managed the Committees of both 
 Houses of Congress in a very able manner, and secured just 
 such a report as would suit their purpose, though the amount was 
 cut down from a guarantee on $150,000,000 to a guarantee upon 
 the actual capital required to build the Canal, not to exceed 
 $75,000,000. 
 
 This guarantee was 3 per cent, yearly for twenty years, 
 or a total liability of the United States of $45,000,000, for 
 which the credit of the United States was to be pledged for 
 the benefit of these fine workers in Congressional Committees. 
 
19 
 
 The guarantee, if the Bill had passed, would have un- 
 doubtedly enabled these parties to float their entire proposed 
 capital of $150,000,000, of which $75,000,000 would be clear 
 profit to the ring. But this fine " Credit Mobilier " scheme 
 became so unpopular that its promoters thought best to drop 
 the guarantee clause and defer that to some future Congress, 
 and fight only for the incorporation clause ; but an untimely 
 frost of an over- worked Congress again nipped their plan in 
 the bud. 
 
 But these parties again put in their annual appearance when 
 Congress met in the session of 1883-81, and we see once more the 
 Bill to incorporate the Maritime Canal Company of Nicaragua 
 on the rolls of both Houses of Congress. 
 
 In the meantime, the years 1880-81-82-83 had passed, and 
 nothing had been done in Nicaragua on the work] of their 
 contract, and the year 1884 was fast slipping away, and on the 
 30th day of September, 1881, their so-called concession would 
 expire by limitation if nothing was done. 
 
 Their Companies had no means ; their last resource was 
 the United States Congress, and they redoubled their energy 
 to get money through this source. 
 
 Their approach through Congress to the National Treasury 
 this time was not with that confident, bold and defiant 
 demand of former sessions, and their requirements from 
 Congress were not so onerous as in former Bills ; in fact, though 
 the sum demanded was only $250,000 cash in hand, and this small 
 sum by the side of the colossal guarantee of the previous year 
 seemed a mere pittance, yet $250,000 would save their so-called 
 concession, and have it they must out of the Treasury of the 
 United States if it were possible to be gotten. Now comes 
 perhaps the most remarkable record of legislative legerdemain 
 in the history of Congress. 
 
 These parties, knowing full well that their Company had 
 not the slightest claim upon the Treasury of the United States 
 or to public confidence, and knowing they could not get an 
 Act of Congress authorising the payment of such a sum to 
 
20 
 
 them under any known pretext, or in a plain Bill stating for 
 what purpose and for whom wanted ; they resorted to one 
 of the most shameful plots ever reported in legislative action. 
 The plan adopted by them and their confederates in the 
 United States Senate was as follows : An attempt was made 
 to conceal the purpose of the appropriation of $250,000, and to 
 smuggle that amount out of the Treasury under an item in the 
 Appropriation Bill under the following heading (vide Con- 
 gressional Eecord of Feb. 22, 1887, page 2167) :- 
 
 " To meet the necessary expenses attendant upon foreign intercourse 
 to be expended under the. direction of the President, pursuant to the 
 requirements of Section 291 of the Revised Statutes, 3250,000, 
 or so much thereof as may be necessary." 
 
 The Congressional Record, Feb. 22, 1887, partially explains 
 this extraordinary transaction of the Senate. We reprint from 
 pages 2167 and 2168 the discussion in the Senate on this 
 matter, which is as follows : 
 
 " Mr. VAN WYCK. Mr. President, the discussion between the Senator 
 from Vermont and the Senator from Missouri starts a memory and suggests 
 a question. Nearly three years ago we had under discussion a proposition 
 to appropriate $250,000 to be paid to somebody in Nicaragua for the 
 purpose of some canal. May I ask which one of these projects that 
 $250,000 was intended for ? Does the Senator from Vermont recollect 
 that circumstance ? 
 
 " Mr. EDMUNDS. Not either of them as far as I recollect. 
 
 Mr. VAN WYCK. That $250,000 was not intended for either of these 
 scheme3. Every time we discuss the project of a canal to connect the two 
 oceans, or a ship-railway to connect the two oceans, it is said we must do 
 it at once, because the opportunity is slipping away. I remember when 
 this $250,000 proposition was to be paid out of the Treasury for the benefit 
 of some canal in Nicaragua I do not know whether it would be in order 
 now to say what took place in executive session three years after it passed. 
 
 " Mr. EDMUNDS. I do not think it would be. 
 
 " Mr. VAN WYCK. Not in order. I supposed the Senator would say 
 that, and I presume the Chair concurs in the opinion of the Senator from 
 Vermont. 
 
 "Mr. MORGAN. You may speak of what occurred in legislative session. 
 
 " Mr. VAN WYCK. If it is not proper three years afterward to refer 
 to what occurred in executive session, then I will refer to the current 
 history of those times as it appeared in the newspapers. I suppose that is 
 in order. 
 
21 
 
 " That is the memory which is started by this discussion. I remembar 
 we were told then there was a concession, so the papers stated, for some 
 purpose in Nicaragua ] list slipping our grasp. I think it ran out in the 
 following October, we were told. 
 
 " There was a great Nicaragua concession. It was hugely important. 
 Patriotism bubbled all over ; generosity and humanity were invoked for the 
 benefit of mankind, as usual on such occasions ; and we must secure it at 
 once. Here was this great concession, and the Treasury must be put under 
 subjection again to pay out the amount of $250,000. For what ? The 
 public tried to find out. For what ? For this concession, and we were 
 immediately plunged into the dark and hidden recesses of a secret session 
 on this subject, which was not to be discussed before the American people ; 
 and yet it was a proposition which affected the people in their business 
 relations, a canal through Nicaragua, and only wanted $250,000 to be 
 taken out of the Treasury. The people should know, but no, that would 
 not do. 
 
 " Mr. President, it may be well to look back. That was only three 
 years ago. That concession was slipping away. The Senate voted it in its 
 liberality on that occasion the $250,000, but I think it was defeated in the 
 other House, if rny recollection serves me. Now I am anxious to know to 
 what that applied. There was a sensation. We were called upon to pay 
 $250,000. Now we have two projects here. The Senator from Vermont 
 says that the $250,000 applied to neither of these, neither to his Bill nor to 
 the incorporation which the Senator from Missouri refers to. Is there 
 another 1 Will some member of the Committee on Foreign Relations tell 
 us whether there was another Nicaragua scheme at that time, three years 
 ago 1 Does the recollection of the Senator from Vermont serve him as to 
 that point, whether there was another Nicaragua scheme at that time that 
 we were called upon to pay $250,000 for ? The Senator from Massachusetts, 
 I believe, does not remember any other Nicaraguan scheme. 
 
 " Mr. HOAR. My memory is so bad that I do not remember anything 
 about it. 
 
 " Mr. VAN W5TCK. The Senator is so very familiar with getting across 
 mountains and valleys and rivers between the Atlantic and the Pacific that 
 I supposed he would probably remember how many schemes there were 
 to dig through the mountains and get landed on the sweet Pacific. 
 
 " Well, I will read from the CONGRESSIONAL RECORD. It is instructive, 
 I know. Let us see whether we can get any information there. Who are 
 the projector?, friends, and advocates of these various schemes ? It seems 
 the one my friend from Missouri talks about is only half a century old, and 
 he remembers all about that ; but the scheme of three years ago, the 
 Foreign Relations Committee, and the friends of all these great projects, do 
 not remember. My friend from Missouri, in view of the national greatness of 
 the United States involved in his favourite scheme for a ship-railway at 
 Tehuantepec, was willing to let it go without protection to the stockholders 
 
22 
 
 or the bondholders. Now, it may refresh gentlemen's recollection probably 
 if we go back three years, because when we were called upon to make a 
 contribution of a quarter of a million dollars to help somebody or help 
 something it was so important that it must be done at once. And yet it 
 has drifted away from the memory of everybody in the Senate who had any 
 interest in it. 
 
 The CHIEF CLERK. After line 615 the Senate, as in Committee of the 
 "Whole, inserted the following clause : 
 
 " To meet the necessary expenses attendant upon foreign intercourse, to 
 be expended under the direction of the President, pursuant to the require- 
 ment of section 291 of the Revised Statutes, $250,000, or so much thereof as 
 may be necessary." 
 
 "It was pretty well hidden here under circumlocution and as to the law 
 under which it was to be applied. 
 
 Mr. VEST. An examination of the consular and diplomatic appropriation 
 Bills in the previous history of the Government will develop the fact that 
 antecedent to this time the largest appropriation ever made to meet the 
 expenses to be incurred under the direction of the President in the execution 
 of the Neutrality Act has been $20,000. This appropriation reaches the amount 
 of 250,000. It is an extraordinary appropriation. It is due to the country 
 and to the Senate that the Committee on Appropriations should state before 
 the American public why this enormous amount, in proportion, or relatively, 
 is now asked at the hands of the representatives of the people. 
 
 I undertake to say in my place in the Senate that for the execution of the 
 Neutrality Act this amount is not to be appropriated as it has been in former 
 Appropriation Acts. I undertake to say that upon the contrary it is for an 
 extraordinary purpose, and it is due to the Senate that the chairman of the 
 committee should state what that purpose really and honefetly is. I call upon 
 the chairman of the committee to make that statement. What is the real 
 purpose of this appropriation ? 
 
 The PRESIDING OFFICER. The question is, Will the Senate concur in the 
 amendment made as in Committee of the Whole ? 
 
 Mr. VAN WYCK. I desire to propose the following amendment, to come in 
 at the end of the committee amendment : 
 
 " But no portion of said 250,000 shall be paid directly or through the 
 Nicaraguan Government to the owners of a concession granted to the Maritime 
 Canal Company of Nicaragua." 
 
 " What is the Maritime Canal Company of Nicaragua ? That was the 
 amendment. Now, I may be excused for referring to these concessions. 
 Who would have believed that any legislative body on earth, when a pro- 
 position of that kind was made, would attempt to hedge by getting into 
 a secret session ? 
 
 Mr. ALLISON. Mr. President, I move to lay that amendment on the table. 
 My Amendment 
 
 Mr. VAN WYCK. Mr. President 
 
 Several SENATORS. It is not debatable. 
 The PRESIDING OFFICER. What was the motion ? 
 Mr. ALLISON. I moved to lay that amendment on the table. 
 Mr. VAN WYCK. Mr. President, I had the floor. 
 
 The PRESIDING OFFICER. The Senator from Iowa moves that the amend- 
 ment be laid on the table. 
 
 Mr. ALLISON. The Senator from Nebraska had taken his scat. 
 Mr. INGALLS. I saw him take his seat. 
 
 (Laughter.) 
 
23 
 
 " It is amusing, because the American Senate have forgotten three years, 
 and see the sort of performance to get matters which should be openly 
 discussed and known to the nation, hidden away in a hole in the wall in 
 secret session. 
 
 Mr. VAN WYCK. I desire to know 
 
 Mr. INGALLS and others. Order ! 
 
 The PRESIDING OFFICER. The Chair will take care of !he question. The 
 Senator from Iowa was recognised, and the Senator from Iowa moved to lay 
 the amendment on the table. With what object does the Senator from 
 Nebraska rise ? 
 
 Mr. VAN WYCK. I had the floor and offered the amendment. I offered 
 the amendment 
 
 The PRESIDING OFFICER. The Chair had recognised the Senator from 
 Iowa (Mr. ALLISON). 
 
 Mr. VAN WYCK. Very well, sir. 
 
 The PRESIDING OFFICER. The Senator from Nebraska had yielded the floor. 
 
 Mr. VAN WYCK. Then I ask the gentleman to withdraw the motion for a 
 few moments. 
 
 " Of course that would not be done ; and then a vote was taken ; and I 
 see I voted "ay" with the gentlemen. Then this followed : 
 
 The PRESIDING OFFICER. DOGS the Senator from Iowa withdraw his 
 motion ? 
 
 Mr. ALLISON. I do not, Mr. President. 
 
 The PRESIDING OFFICER. The Senator from Iowa declines to withdraw 
 the motion to lay on the table. The question is, Will the Senate agree to the 
 motion ? 
 
 The motion was agreed to. 
 
 Mr. VAN WYCK. Mr. President, I voted "ay" on this motion, and I desire 
 now to make a motion for a re-consideration of the vote just taken. 
 
 Mr. ALLISON rose. 
 
 Mr. VAN WYCK. I do not yield the floor just at this moment, I say to 
 my friend from Iowa; 
 
 The PRESIDING OFFICER. The Chair entertains the Senator's motion. 
 
 Mr. VAN WYCK. My motion is to re-consider the vote just taken. 
 
 The PRESIDING OFFICER. So the Chair understands. 
 
 Mr. MORRILL. It is subject to the same rule, however. 
 
 Mr. VAN WYCK. I have the floor, I believe. 
 
 The PRESIDING OFFICER. The Senator from Nebraska has the floor. 
 
 Mr. ALLISON. I rise to a privileged question, a question of order. 
 
 The PRESIDING OFFICER. The Senator from Iowa will state his question 
 of order. 
 
 Mr. ALLISON. I move that the Senate proceed to the consideration of this 
 question under Eule XXXV. 
 
 Mr. MILLER, of California. I second the motion. 
 
 " And thereupon the doors were closed under Eule XXXV. and the 
 matter was considered in secret session. 
 
 " How now? It seems my amendment was to prevent this $250,000 
 from being appropriated to the Nicaraguan Government and to the owners 
 of a concession granted to the Maritime Canal Company of Nicaragua. That 
 was where we stood three years ago. Which is the project that applied to 1 
 If that name is not in some of these Bills it is remarkable. We were then 
 told that the only thing to save that concession was to vote $250,000 out of 
 the Treasury. Fortunately the House prevented its being voted, and 
 therefore we saved the $250,000, and it seerns the concession has not gone 
 
24 
 
 yet. Is that the nama of either of the two companies who appear here 
 to-day? That establishes that point. 
 
 " Then another very remarkable fact. The Senate went into secret session 
 on that amendment, and when we came out into open session the question 
 then was, ' shall this Bill pass 1 ?' It had got to its final passage almost, 
 except the vote, in this executive or secret session. When the doors were 
 opened the Chair stated : 
 
 The question now before the Senate is, the Bill having been read three 
 times, shall it pass ? 
 
 " I remember then making some suggestions in regard to that matter. 
 We had acted on that amendment, not before the people, and came into open 
 session on the passage of the Bill. It is not proper for me to state what 
 occurred in executive session, but I can state what appears from the public 
 papers. 
 
 "It is time to emphasize the fact that it was necessary to go into an 
 executive session to hide the purpose of this appropriation of $250,000. 
 That was done without telling it to the public and to the world. But 
 evidently the object of the appropriation that was proposed was to pay 
 this money out to the parties having this concession under the pretence 
 that it might lapse in October ; and yet the money was not paid and 
 evidently the concession is not gone, because, I suppose, if you run over 
 the list of corporations here you will find this Maritime Canal Company. 
 I do not know what is the title of the Bill now under consideration. 
 I have not looked at it. A friend of mine hands it to me. Here it is : 
 ' To incorporate the Maritime Canal Company of Nicaragua.' It seems 
 to be the same thing. ' It is the Monsieur Tonson come again.' It did not 
 disappear in October, 1884, as we were told it would if we failed to 
 appropriate the quarter of a million. 
 
 " Thus it seems that there is no danger of losing the chance of connecting 
 the waters of the Atlantic and the Pacific, or making a canal between 
 
 the two." 
 
 # * # * # 
 
 WORKING THE STATE DEPARTMENT. 
 
 The House of Representatives struck out this Senate item, 
 and the snug little sura of $250,000 was not handed over to the 
 Maritime Canal Company and their so-called concession 
 lapsed. But had it not expired, the American Atlantic and 
 Pacific Ship Canal Company would have taken action in the 
 proper tribunal against said Company to have their conces- 
 sion declared unconstitutional and legally void. And the 
 American Atlantic and Pacific Ship Canal Company was then 
 making every preparation to commence the work upon its 
 canal in Nicaragua, and so notified the Government of 
 
23 
 
 Nicaragua, through its Minister, General Zavala, as 
 also the Secretary of State of the United States in a 
 communication made by the Company to the Secretary, of 
 date September 29th, 1884, and would have commenced work 
 but for the action of the Secretary of State, Mr. 
 Frelinghuysen, who was then negotiating a treaty with 
 the Minister of Nicaragua, and before the Company 
 could despatch, its engineers and labourers to Nicaragua the 
 Secretary of State had signed a treaty with the Minister of 
 Nicaragua. And the Company bas been informed that by the 
 terms of that most marvellous treaty the United States under- 
 took to build the Canal at the sole expense of the Government 
 of the United States, for the joint ownership of the United 
 States and Nicaragua ; and also agreed to advance as a loan 
 to Nicaragua the sum of $1,000,000. If this was the proposition 
 of the Secretary of State, it was certainly beyond the wildest 
 dream of Nicaragua in its advantages for that State. This treaty 
 is most remarkable, because the Secretary of State, in his desire 
 and determination to construct this Canal by the United States 
 Government, recklessly, autocratically, and unceremoniously 
 proposed to despoil this Company of its vested rights and 
 property of great value, and to annul the Clay ton-Bui wer 
 treaty and public Acts, which for 35 years had been regarded 
 as binding by the Governments and parties at interest. This 
 treaty was a most formidable obstruction thrown in front of 
 the American Atlantic and Pacific Ship Canal Company, too 
 powerful, in fact, to be ignored or lightly considered, and 
 therefore this Company at once took steps to prevent if possible 
 the confirmation of that treaty by the Senate, and immediately 
 (Dec. 3, 1884) pretested against the ratification of the same 
 by the Senate. The treaty was rejected by the Senate and 
 was eventually withdrawn by your Excellency from further 
 consideration of the Senate. 
 
 The American Atlantic and Pacific Ship Canal Company, 
 on the 13th day of November, 1885, legally executed and 
 delivered to the trustee, who has received the same and under- 
 taken to execute the trust thereby reposed in him, a deed of 
 mortgage for $100,000,000, which deed is made a first lien 
 and mortgage upon this Company's ship canal, right of way, 
 
26 
 
 water channels, streams, lands, houses, tenements, and heredita- 
 ments, and all other property, rights, and franchises of this 
 Company, in said State of Nicaragua, more fully set forth in 
 said deed of mortgage. 
 
 Prior to the expiration of the concession given to the Provi- 
 sional Interoceanic Canal Society, these parties, Ammen 
 et al, had organised themselves as a corporation under the statute 
 laws of the State of Colorado, under the style and name of 
 The Maritime Canal Company of Nicaragua. But their 
 concession having expired on the 30th of Sept., 1884, as before 
 stated, it was thought we would hear nothing more of 
 them. But the debate in the United States Senate (see 
 Congressional Record, Feb. 22, 1887, page 2166) developed 
 that certain parties opposed the negotiation of the treaty with 
 Nicaragua. Senator Edmunds says : 
 
 " * * * * I do not remember their names. Undertook to tell the 
 Secretary of State that if he would withhold the $750,000, or whatever 
 it was that they were to have, then they would consent that the treaty 
 might be negotiated. But it stood upon that State Charter, and I presume 
 it is this very one." 
 
 Whether these parties representing the Maritime Canal 
 Company, having failed to get the $250,000 to save their 
 concession, then opposed the negotiations of the treaty and 
 approached the Secretary of State and offered to sell out their 
 opposition for the sum of $750,000, the officers of the American 
 Atlantic and Pacific Ship Canal Company have no means of 
 knowing. But the Maritime Canal Company of Nicaragua is 
 the only Company having a Charter under the statute laws of 
 one of the States of the United States for the purpose of 
 building a canal in Nicaragua, so far as we are informed. 
 
 The American Atlantic and Pacific Ship Canal Company 
 was incorporated by special Act of Congress of the State of 
 Nicaragua, and has no chartered rights or corporate powers 
 from any State of the Union; and the officers of this Company 
 beg to state, in the most unequivocal manner, that no authorised 
 agent or person representing this Company ever approached 
 the Secretary of State with any such proposal or demand for 
 any sum of money whatever ; and the American Atlantic and 
 Pacific Ship Canal Company has never made any demand upon 
 
27 
 
 the United States Government for money or assistance of any 
 kind in the building of their canal, and they do not now ask 
 any assistance of any nature whatsoever. This Company is 
 prepared to construct its canal without Government aid. 
 
 But this Company has been compelled, against its wish, to 
 appear more than once before the Congress of the United 
 States in order to protect its vested rights of property in a 
 foreign State, and this Company has been forced to protest 
 against the passage of Bills introduced in both Houses of 
 Congress to incorporate the Maritime Canal Company of 
 Nicaragua. 
 
 By the terms of the Frelinghuysen Treaty two years was 
 agreed upon as the limit of time allowed for its ratification by 
 the Senate, and the American Atlantic and Pacific Ship Canal 
 Company deemed it prudent and proper to wait until the treaty 
 expired, which brought the date down to December, 1886. 
 
 In the meantime the "Navy Ring" again put in their 
 annual appearance with the Session of Congress, and although 
 they had no concession or contract of any kind with the Govern- 
 ment of Nicaragua, yet we find them again before Congress 
 with a Bill to incorporate the Maritime Canal Company of 
 Nicaragua. This Bill was introduced by Senator Edmunds, 
 June 10th, 1886, but did not become a law ; and during the 
 winter session of 1886-7 these naval lobbyists again haunted 
 the corridors of the Capitol. They this time secured the active 
 services and co-operation of the Senator from Vermont, who 
 rushed forward with patriotic fervour to aid in putting into 
 Nicaragua a company or " ring " that had no contract or conces- 
 sion from the Government of that State, and who had never spent 
 one dollar of their own money on the Canal route. 
 
 And by this measure he proposed to turn out of Nicaragua 
 the American Atlantic and Pacific Ship Canal Company, 
 having a charter of perpetual succession and an existing con- 
 tract with that republic, and the shareholders of which Company 
 had inalienable rights of property to the Canal route across that 
 State, and had spent millions of dollars on this transit route 
 and in its operation. 
 
 The American Atlantic and Pacific Ship Canal Company 
 protested against the passage of the Bill, but Senator Edmunds, 
 
28 
 
 had made his combination strong enough, was deaf to protest, and 
 drove his measure through the Senatei-The cohesion of plunder 
 prevailed ! 
 
 The Bill passed the Senate by a bare majority and under 
 very damaging disclosures. The Senate Bill was hurriedly 
 engrossed and rushed into the House of Representatives, and 
 on being reported to the House, was referred to the Committee 
 on Commerce, and there the managers of this iniquitous Bill had 
 to face the old American Atlantic and Pacific Ship Canal 
 Company, who appeared by counsel to oppose the report by that 
 committee, of the Senate Bill. 
 
 After one meeting of the Committee, and the damaging 
 exposure of the measure by the counsel of the American 
 Atlantic and Pacific Ship Canal Company, the Committee there- 
 after made no report on the Bill. 
 
 But the wily veteran from Vermont was not to be defeated 
 for the want of so small a matter as a favourable report by the 
 Committee having it in charge, for he knew too well all the 
 back ways to a congressional combination, and at once put the 
 thumbscrews to bear upon the " Eads Tehuantepec Ship-Railway 
 Bill," which had been reported favourably by the Committee 
 of Commerce. 
 
 The New York end of the ring hurried back to that city, 
 where they might best employ their energies in telegraphing 
 members of the House, and thereby bring a supposed popular 
 pressure on the members, and especially on the friends of the 
 Eads Ship-Railway Bill. 
 
 By this antiquated ruse but effective manoeuvre, Senator 
 Edmunds so frightened the friends of this Bill that he forced 
 them to an agreement to combine in their measures, to call the 
 Maritime Canal Company Bill out of the hands of the Committee 
 and put it upon its passage in the House without any report from 
 the Committee ; but here ap*ain he miscalculated his distance. 
 
 The combination proveci fatal to both Bills. The Ship- 
 Railway Bill doubtless would have passed, but when coupled 
 with the odious Nicaragua Canal scheme it developed such 
 opposition that both Bills failed to get recognised, and the 
 session expired without action on either of them. 
 
 In the meantime the " Navy Ring " again secured leave of 
 
29 
 
 absence for A. G. Menocal, Civil Engineer, United States 
 Navy, and he slipped away to Nicaragua to make, if possible, 
 another deal for a fresh concession with the Government 
 of .Nicaragua. 
 
 THE GOOD FAITH OF THE REAL COMPANY. 
 
 At this time the American Atlantic and Pacific Ship Canal 
 Company had made arrangements with its contractors to go at 
 once to work on its Canal in Nicaragua, and on the 10th day of 
 March, 1837, the Phoenix Bridge Company, of Phcenixville, 
 Pennsylvania, contractors for the construction of over half the 
 works of the Canal, cabled the Government of Nicaragua that 
 that Company was ready to put 2,000 men to work on the Canal, 
 and to immediately begin the most important part of the work, 
 the construction of the locks, bridges, <&c., &c. To 
 demonstrate further the good faith and sincere purpose which 
 had marked every step ol the American Atlantic and Pacific 
 Ship Canal Company's negotiations with the Government of 
 Nicaragua, this Company got the Consul- General of Nicaragua 
 in New York to cable his Government as to the responsibility 
 and standing of the Company, which had just offered to put 
 2,000 men to work. The Phoenix Bridge Company wrote to 
 the Representative of Nicaragua as follows : 
 
 " HON. ALEXANDER I. COTHEAL, " March 14, 1887. 
 
 " Consul-General for Nicaragua, 
 
 " New York. 
 
 " Dear Sir. The Phoenix Bridge Company has entered into contract 
 with the American Atlantic and Pacific Ship Canal Company, to construct 
 over one-half of the work necessary to complete the said Company's Inter- 
 oceanic Ship Canal across the territory of Nicaragua. We are fully 
 prepared to carry out and execute our contract with said Company. On the 
 lOih instant we telegraphed the President of Nicaragua as follows : 
 
 " ' PRESIDENT NICARAGUA, 
 
 " ' Managua." 
 
 " ' We have contracted to construct over one-half Canal, are ready to put 
 two thousand men to work, agent sent next steamer to arrange canal 
 business with guarantee. 
 
 (Signed) "'THE PHCEN1X BRIDGE CO.' 
 
 " Will you do us the favour, as Consul-General of Nicaragua, to tele- 
 graph that Government about the responsibility of our Company, and the 
 bona-Jide of our undertaking and our purpose to construct the canal in the 
 
30 
 
 shortest possible time ; and that we earnestly desire a most cordial and 
 immediate understanding with the Government of Nicaragua that we may 
 at once and uninterruptedly proceed with the work of constructing the 
 canal. 
 
 " Very respectfully, your obedient Servants, 
 
 (Signed) THE PHCENIX BRIDGE CO., 
 
 " By A. BONZANO, Chief Engineer. 
 
 Responding to this suggestion Mr. Cotheal cabled his 
 
 Government as follows: 
 
 "March 15, 1887. 
 "To MINISTER FOREIGN AFFAIRS, 
 
 " Managua. 
 
 " Phoenix Bridge Company, a responsible company, represent they have 
 contracted for over half of canal. Desire commence work immediately. 
 Say will send agent confer with Government, Nicaragua. 
 
 " Company request answer. 
 
 " COTHEAL, 
 
 ("Answer paid.") "Consul- General." 
 
 It is not necessary to analyse very deeply to ascertain whose 
 was the voice that spoke in the reply to these cablegrams. 
 Mr. A. G. Menocal was in Managua, at the side of the President, 
 and urging his wishes on the Government, offering large induce- 
 ments in enormous sums of his Company's stock. It was not 
 therefore much of a surprise when the American Atlantic and 
 Pacific Canal Company received the following : 
 
 "62, West 36 Street, 
 
 " New York, March 18, 1837. 
 "THE PHCENIX BRIDGE Co., 
 
 " Koom 58, 49 William Street, 
 
 " New York. 
 
 " The following cablegram has just been received from Nicaragua : 
 
 " ' Managua, March 17, 1887. 
 "' All canal concessions forfeited. Make it public. Consequently we 
 
 can't understand your cablegram. 
 
 " ' ELIZANDO.' 
 " I am, Sir, 
 
 " Yours repectfully, 
 (Signed) "ALEXANDER I. COTHEAL, 
 
 " Consul- General of Nicaragua.' 
 
 In the meantime, the agent of the Nicaraguan Canal Asso- 
 ciation, A. G. Menocal, civil engineer, U.S.N., was actively 
 engaged in his negotiations with certain officials of the 
 Nicaraguan Government, and again adopted his old methods of 
 
31 
 
 reaching the official ear of that Government by offering and 
 agreeing to give large blocks of the capital of said Company, 
 amounting to 6 per cent, of all the shares, bonds, certificates 
 or title deeds issued by said proposed Maritime Canal Company 
 of Nicaragua'; and by further agreeing to make an insignificant 
 deposit as a guarantee or advance to said Government, ho 
 succeeded in influencing the Government of Nicaragua to again 
 make with his Company a new contract or concession ; this 
 contract was signed on the part of Nicaragua by Ad. 
 Cardenas, and for the Society by A. G. Menocal, as was also 
 their former contract ; and the said agent thereafter returned to 
 "Washington; and again (1888) this Maritime Canal Company 
 asks of Congress an Act incorporating said Company. 
 
 It will be seen from the foregoing record that this Maritime 
 Canal Company of Nicaragua has now been before Congress 
 with its Bills since the year 1880. 
 
 And what with the three expensive United States Survey- 
 ing Expeditions to Nicaragua, the great value in time and money 
 consumed by Congress in the consideration before the Com- 
 mittees, and in both Houses of Congress, on the various 
 Bills of Incorporation, their Bill for a guarantee of three (3) 
 per cent, on their capital stock, involving a proposed liability 
 of $45,000,000 on the part of the United States, in their 
 Senatorial item of $250,000 appropriation ; in the drawing of 
 monthly salaries of these officers and engineers of the United 
 States Navy, United States Commissioners, United States 
 Ministers, &c., in the consumption of materials and time paid 
 for by the United States Government, while the separties have 
 been all these years engaged in this private scheme to enrich 
 themselves. The amount of money which the United States 
 Government has already been forced to pay on account of the 
 above recited measures for the benefit of the parties known as 
 the Maritime Canal Company of Nicaragua will never be known, 
 but must certainly amount up to over a million dollars. 
 
 The many disreputable attempts to seize upon the rights of 
 way, water channels and canal route of the American Atlantic 
 and Pacific Ship Canal Company by these naval officers and 
 their confederates, and the various adroit and deeply laid 
 schemes to force the United States Government to furnish the 
 
32 
 
 means of enabling them to float their colossal Credit Mobilier 
 scheme, has made the name of the Maritime Canal Company 
 of Nicaragua odious. As showing how unpopular this 
 scheme has become in the public mind, we reprint the following 
 from the San Francisco News Letter, which says : 
 
 " The Nicaragua Canal scheme is one of the most barefaced 
 jobs ever attempted, and it is steered by the most unscrupulous 
 crowd of wire pullers that ever trod the United States. It 
 comes before Congress ostensibly for a franchise, an endowment 
 of corporate existence. This is a transparent pretence, because, 
 so far as getting a corporate existence is concerned, it can do 
 that under the general laws of any State. The object 
 which the promoters of this scheme have in bringing this 
 matter before Congress is to bind the Government in such a 
 way that it will practically have to build the canal for the 
 manipulators. When the matter was first brought before 
 Congress, eight or nine years ago, this purpose was boldly 
 avowed. Since then the manipulators of this raid on the 
 Treasury have been more careful. They now leave out the 
 clauses which bind the Government, with the intention of 
 slipping them in when the Bill goes upon its final passage. 
 This is an old and dishonest trick as old and as dishonest as 
 the canal scheme itself. Congress should throw this Bill out 
 as soon as it is introduced. It has been before the National 
 Legislature too often already. And the rogue who introduces 
 it should be expelled/' 
 
 On the 10th of January, 1888, Senator Edmunds again 
 introduced a Bill to incorporate the Maritime Canal Company 
 of Nicaragua (Senate Bill, No. 1305). On the 23rd day of 
 January, 1888, the Bill was also introduced, by Mr. Norwood, 
 in the House of Representatives. On the same day that the 
 Bill was introduced in the House, and following closely upon 
 the heels of Senator Edmunds' Bill in the Senate, comes his 
 astute lieutenant, the Senator from Massachusetts, with his 
 Joint Resolution (S. R. 40). 
 
 THE ATTEMPT TO USE THE EXECUTIVE. 
 
 This Joint Resolution (S.R.40)was introduced in the Senate, 
 January 23, 1888, by the Senator from Massachusetts, Mr. 
 Hoar; and from the public prints we learn its probable 
 scope. This Joint Resolution is directed to " obtaining the 
 freedom of certain canals and ship-railways therein named 
 for the American Mercantile Marine," and with a view 
 
33 
 
 to forward this object " the President is requested to open 
 negotiations with the Government of Great Britain and 
 the Dominion of Canada, for the purpose of having the 
 Welland Canal made free for the merchant ships of the United 
 States, and also for the construction and opening of a free ship 
 canal from the Bay of Fundy to the Gulf of St. Lawrence at 
 the joint expense of both nations." " The President is also 
 requested, in view of the probable competition of the proposed 
 oanal and ship-railway to unite the Atlantic and Pacific Oceans, 
 to enter upon negotiations with the proper authorities to secure 
 the freedom of the canal in perpetuity for the American 
 merchant marine, and to take similar steps to obtain the 
 freedom of the Suez Canal for the American mercantile service." 
 
 The Senator from Massachusetts (Hoar) knew full well that 
 that part of the Joint Resolution referring to the Welland Canal, 
 and the proposed wild-cat Canal across the Isthmus, from the 
 Bay of Fundy to the Gulf of St. Lawrence, was humbug ; as 
 he also knew the obtaining the freedom of the Suez Canal for 
 the mercantile marine of the United States was a wholly 
 chimerical dream ; and such negotiations, if attempted by the 
 President of the United States, would end in nothing but 
 ridiculous failure. 
 
 To any diplomatic mind, or to those who understand inter- 
 national law and the comity of nations, this Joint Resolution 
 (S. R. 40) is simply senatorial fustian, as such a proposition can 
 never receive a moment's serious consideration by the 
 representatives of other powers. No single nation could be 
 allowed such marked advantages as against the balance of 
 the world's commercial marine. Does the Senator from 
 Massachusetts, with his years of experience, even dream 
 of obtaining such concessions from Canada as his reso- 
 lution implies can be obtained? Does he imagine that the 
 United States possesses such abounding influence that it has but 
 to ask and receive from Europe the freedom of the Suez Canal ; 
 or, in other words, such concessions as will give the rapidly 
 growing American commercial marine a great lead in the world's 
 race ? The suggestion is preposterous ? 
 
 But what care the framers of this resolution if it places the 
 President of the United States in a ridiculous position before 
 
34 
 
 the world, if they can thereby attain their ends ? But their 
 objects are too transparent to succeed too obvious to pass 
 unchallenged. The American Atlantic and Pacific Ship Canal 
 Company does not believe that the said resolution was intro- 
 duced honestly and with the sole purpose of promoting the 
 interests of the mercantile marine of the United States. 
 
 This Company believes that the resolution is wholly dishonest 
 in its objects, and is an integral part of an adroit and deep-laid 
 scheme to commit the United States, by contract, to the so-called 
 Maritime Canal Company of Nicaragua, which Company is now 
 asking of Congress a charter of incorporation, the said parties 
 claiming to have a concession to build a canal across the State of 
 Nicaragua; but which so-called concession or contract made with 
 the Government of Nicaragua, and Act of the Legislature con- 
 firming said contract, is wholly unconstitutional and legally void. 
 
 It is believed by this Company that the reference in said 
 Joint Eesolution (S. E. 40) to the Suez Canal, the Welland 
 Canal, and the proposed Bay of Fundy Canal, and the effort to 
 get up a patriotic bubble for the Mercantile Marine, is so 
 much surplusage, and introduced as a blind to cover up the 
 " job " concealed behind this verbiage. The real object is that 
 the President should enter into negotiations with the anxiously 
 waiting shareholders and managers of the Maritime Canal 
 Company of Nicaragua, who have spread their legislative net 
 with the adroit skill of old congressional tacticians, and 
 they, by this Joint Eesolution, try to drive the President into 
 their toils. Under the command of this Joint Eesolution (which 
 doubtless they will work through Congress) they demand that 
 the President shall make a contract with this Maritime Canal 
 Company of Nicaragua a company which has agreed, and is 
 bound by the terms of its so-called concession, to let all the 
 vessels and commerce of certain favoured Governments pass 
 through their canal for one-half of the tariff or tonnage dues 
 and tolls charged upon vessels and the mercantile marine 
 sailing under the United States flag. 
 
 Yet against this disastrous and uncalled for embargo 
 laid upon American commerce by this so-called concession, 
 and which the Senator from Vermont is endeavouring to for- 
 
35 
 
 ever fix upon the mercantile marine of the United States by 
 his Bill to incorporate this Maritime Canal Company yet 
 against the passage of this Act we hear no word of protest, 
 no sign of denunciation from the Senator from Massa- 
 chusetts ! The mercantile marine, about which he is so anxious 
 in Canada and Egypt, he is willing altogether to abandon in 
 Nicaragua ! Is this his patriotism ? 
 
 "What is the real motive of this Joint Resolution ? It is this : 
 Should the Maritime Canal Company get an Act of Incorporation 
 from the United States Congress, such Act cannot and will not 
 vest in that Company any legal titles to real estates, or give it 
 any rights of eminent domain in the State of Nicaragua. Nor 
 can such Incorporation in any way authorise the Maritime 
 Canal Company to seize upon, occupy and use the rights of 
 way, water channels, and canal route of the American Atlantic 
 and Pacific Ship Canal Company. Therefore, if the Act asked 
 for is passed by Congress, the Company would be but little 
 advanced, and in legal effect their status would not be at all 
 improved, so far as Nicaragua is concerned. 
 
 Knowing the inadequacy of their title, and appalled 
 by the absolute weakness of their position, they determine 
 to overcome it, if possible, by making a contract with 
 the United States Government an official agreement 
 that would, by its own inherent force, strengthen their 
 shadowy title ; and this is to be accomplished under the 
 innocent guise of the Joint Resolution, S. R. 40 : " As 
 " to obtaining the freedom of certain canals and ship-railways 
 " therein named for the American Mercantile Marine, in order 
 " to encourage ocean shipbuilding and promote commerce with 
 " foreign nations." 
 
 This resolution strongly reminds us of the artfully disguised 
 item in the Senate appropriation of $250,000 in 1884, when the 
 Maritime Canal Company of Nicaragua was trying to smuggle 
 that amount out of the United States Treasury under the Senate 
 item : " To meet the necessary expenses attendant upon foreign 
 " intercourse, to be expended under the direction of the President 
 " pursuant to the requirements of section 291 of the Revised 
 " Statutes, $250,000, or so much thereof as may be necessary." 
 
It will be seen that the Senate proposed to force the Presi- 
 dent of the United States to lend his aid to perpetrate that 
 fraud upon the people of the United States ; and the President 
 is now called upon by this Joint Resolution, S. R. 40, " to enter 
 " into a contract with" some one, which they will be pleased to 
 name ! It is this same Maritime Canal Company come 
 again ! 
 
 The managers of the so-called Maritime Canal Company of 
 Nicaragua having failed to get the United States Guarantee 
 of 3 per cent, upon $75,000,000 of their capital, or in com- 
 mitting the Government to a liability of $45,000,000 in a 
 former session, and having failed to smuggle the $250,000 from 
 the Treasury under a Senate item, as hereinbefore shown, are 
 evidently trying another dodge to get at the money in the Trea- 
 sury, and doubtless think if they can now secure a contract with 
 the Government of the United States, and a large sum of money 
 paid down, or to be paid, by the Government, that such a 
 contract would enable them to float their great Credit Mobilier 
 scheme, with its proposed inflated capital of $200,000,000, upon 
 a canal which they claim will only cost them $64,000,000. 
 
 But should it become necessary to increase this estimate of cost, 
 by reason of any contract to be made by them with the United 
 States Government, why, nothing is easier, they can raise the 
 price to suit the purpose required, and no questions will be asked. 
 
 The American Atlantic and Pacific Ship Canal Company, 
 while modestly claiming for themselves as much patriotism and 
 love of country as the honourable Senator from Massachusetts, 
 possess also as great a desire to see the United States the first 
 maritime power on the globe, and in their efforts to provide a 
 highway for that commerce the shareholders of this Company 
 have spent millions of dollars, yet our enthusiasm has never led 
 us to approach the Congress of the United States begging alms 
 of the Government, nor has this Company tried to abstract 
 money by stealth and cunningly devised headings in any item 
 in an appropriation bill, nor have they tried to force a contract 
 from the Government under the guise of an artfully drawn 
 Joint (S. R. 40) Resolution. This Company has never had need, 
 nor does it now require, to borrow, beg or steal one cent from 
 
37 
 
 the United States Government, nor has any of its officers ever 
 drawn one dollar of salary as a Navy Yard Commander or as 
 Engineer, in the United States Navy. 
 
 This Company is not seeking the crutches of a contract 
 from the United States Government in order to hobble out 
 before the world; and therefore we make no unwise proposals of 
 a contract to the Government of the United States. 
 
 Our interoceanic ship canal, when built across the State of 
 Nicaragua, will be an international canal for the use of all 
 nations upon equal terms. There will be no unjust discrimina- 
 tions against the United States, and no foreign nations shall pass 
 their commerce through at 50 per cent, reduction on the tariff 
 charged upon vessels sailing under the United States flag. 
 
 THE LEGAL QUESTION. 
 
 The American Atlantic and Pacific Ship Canal Company 
 further declares and sheweth to your Excellency, that the con- 
 tract made by the State of Nicaragua to and with the said A. G. 
 Menocal and the Nicaragua Canal Association on the 23rd day 
 of March, 1887, and the Act of the Congress of Nicaragua, con- 
 firming said contract, relating to the construction of a canal 
 across that State, between the Atlantic and Pacific Ocean, is 
 wholly unconstitutional and legally void, because of the prior 
 and existing contract and statutes, made by the lawful authority 
 of Nicaragua, to and with the American Atlantic and Pacific 
 Ship Canal Company. 
 
 For all of the foregoing and other good and sufficient reasons, 
 the American Atlantic and Pacific Ship Canal Company hereby 
 respectfully urges its protest against the United States Govern- 
 ment, or you, Sir, as President of the United States, entering into 
 any negotiation or contract of any kind or nature whatsoever 
 with the said Maritime Canal Company, as requested by said 
 Joint Resolution (S. H. 40), or any other resolution, act, or 
 demand of Congress, or to do or perform any act of any kind or 
 nature whatsoever that will detrimentally affect and prejudice 
 the rights, legal and equitable, of the shareholders of the 
 American Atlantic and Pacific Ship Canal Company in and to 
 its interoceanic canal route, its exclusive rights of way, and its 
 
38 
 
 vested rights of property in and to the water channels, rivers 
 lakes, streams and lands, and its other inalienable rights of 
 property situated in the State of Nicaragua. 
 
 And this Company further urges its solemn protest against 
 the United States Government, or any of the Executive Depart- 
 ments of the United States Government, giving aid, pecuniary 
 assistance, countenance, encouragement or moral support of any 
 kind or nature whatsoever to said Maritime Canal Company of 
 Nicaragua, or any other company, persons or parties engaged 
 in any attempt to obstruct, hinder, delay and prevent the said 
 American Atlantic and Pacific Ship Canal Company from 
 building its interoceanic ship canal across the territory of 
 Nicaragua, or to any party, Company, or persons engaged in any 
 attempt to seize upon, occupy, use and confiscate the property, 
 the canal route, water channels and other property of this 
 Company situated in said State of Nicaragua. 
 
 This Company begs to state that the Government of 
 Nicaragua has, in each and every instance, illegally and arbi- 
 trarily violated the contracts made by that Government with 
 the American Atlantic and Pacific Ship Canal Company. 
 
 This Company declares that each and every attachment, 
 seizure and confiscation of the property of the shareholders of 
 this Company, its Accessory Transit Company's plant, steamers, 
 wagons, carriages, outfits, houses, warehouses, stations, piers, 
 shops, &c., and the seizure of the canal route and other property 
 of the American Atlantic and Pacific Ship Canal Company has 
 been done in an arbitrary, illegal manner, and without valid 
 action at law, and not in accordance with the provisions of the 
 said several contracts. 
 
 The American Atlantic and Pacific Ship Canal Company 
 was organised under a grant from the Republic of Nicaragua, 
 of date August 27, 1849 ; the Company was chartered in 1850. 
 On the 19th of April, 1850, it was the subject of a treaty of 
 protection between the United States and Great Britain known 
 as the Clayton-Bulwer Treaty. 
 
 The Republic, at the request of the Company, in 1851 
 authorised the Company to separate and divide its powers, and 
 to form a new company for transit purposes, and the accessory 
 
39 
 
 Transit Company was created by the American Atlantic and 
 Pacific Ship Canal Company, and in four years became a powerful 
 company, with a capital stock of $7,500,000. It was incorpo- 
 rated by Nicaragua, and was owned by the same parties. In 
 1856 all of its property was seized and confiscated, and the 
 Government of Nicaragua issued a decree annulling the grant 
 and contract to and with the American Atlantic and Pacific 
 Ship Canal Company. This seizure and decree was wholly 
 illegal and an arbitrary act by the Government of Nicaragua. 
 
 In 1857 the Government instructed its Minister at "Wash- 
 ington to negotiate with the American Atlantic and Pacific 
 Ship Canal Company to re-establish the transit across Nica- 
 ragua. The Convention of 1857, June 19, was the result. This 
 was followed by explanatory articles of the same year. Differ- 
 ences arose between the State and the Company concerning the 
 interpretations of the Convention of 1857, for the settlement 
 of which the mode is laid down in the Contract, Article 8 of the 
 Explanatory Articles, by arbitration , but no arbi- 
 tration was held thereon. 
 
 The Convention of 1857 does not touch the canal rights, 
 which remain as before in the American Atlantic and Pacific 
 Ship Canal Company ; and that it was so acknowledged by the 
 Government of Nicaragua is shown by an official letter of the 
 Nicaraguan Minister in the United States, addressed to Mr. 
 I. C. Lea, secretary of the American Atlantic and Pacific Ship 
 Canal Company, transmitting an official letter of the Secretary 
 of Foreign Relations of Nicaragua, making proposals upon the 
 part of Nicaragua, by order of the President of that Republic. 
 The letter of the Minister Yrisarri is dated Brooklyn, 30th 
 May, that of the Minister of Foreign Relations is 30th April, 
 1858. In this communication the Government of Nicaragua 
 requests the consent of the Company to make another distinct 
 contract, the basis and terms of which were unsatisfactory to 
 the Company. 
 
 To this request the Company on the 5th June, 1858, sent 
 the following reply to Senor Don A. I. Yrisarri : " The Com- 
 pany therefore declines enter ing into new negotiations for a new con- 
 tract or for innovations of the existing one, relying upon their rights 
 and the protections to be accorded by Hie United States" 
 
40 
 
 On March 28th, 1859, the Government of Nicaragua again 
 issued a decree declaring the contracts made by the State and 
 the Company void and of no effect. 
 
 In 1860 a " contract of transit " was made between the 
 American Atlantic and Pacific Ship Canal Company and the 
 Government of Nicaragua, the Company paying to the 
 Government a large sum of money for the release and return of 
 its steamers, houses, furniture, wagons, carriages and plant, &c., 
 &c., and the American Atlantic and Pacific Ship Canal Com- 
 pany created the " Central American Transit Company," which 
 was owned by the same persons. The canal rig/its were 
 specially reserved to the American Atlantic and Pacific Ship 
 Canal Company in this contract. And the American Atlantic 
 and Pacific Ship Canal Company organised these Transit Com- 
 panies for the purpose of aiding and enabling it to construct its 
 Canal, as is clearly shown by the records. We now print from 
 clauses of these contracts. In the 
 
 CHARTER GRANTED BY THE STATE OF NICARAGUA TO THE 
 ACCESSORY TRANSIT COMPANY, 
 
 <( The supreme Government of the Republic of Nicaragua, fully autho- 
 rised by legislative decree of the 13th inst., have agreed, by means of their 
 commissioners, Don Fruto Chamorro and Don Mateo Mayorga, with the sole 
 object of facilitating the construction of the Maritime Canal, and in 
 accordance with the desires expressed by the Company of the said Canal, 
 represented by Joseph L. White, Esq., to divide and separate from the con- 
 tract of the 22nd of September, 1849, relating to the construction of the 
 said canal through the Isthmus of Nicaragua, the part therein relating to the 
 navigation by si^am of the waters of Nicaragua, and to that effect they have 
 agreed to the following convention : 
 
 ARTICLE 'I. 
 
 " The Republic of Nicaragua authorises the American Atlantic and 
 Pacific Ship Canal Company to. divide and separate from the powers^ 
 privileges, and rights granted by the treaty, signed by said Government on 
 the 22ud September, 1849, and amended the llth of April, 1850, all the 
 powers, privileges, rights, and duties designated in the Articles 6, 14, 21, 22, 
 23, 30, 32, 33, 34, and all other articles relating to the navigation of the 
 waters of Nicaragua, not essential to the construction or use of the said ship 
 canal." 
 
41 
 
 ARTICLE II. 
 
 " Said company is equally authorised to form another company, distinct 
 and separate, comprised of the same members as the former. This new 
 company shall enjoy the powers and be subject to the duties inserted in the 
 articles aforesaid, provided they are not in contradiction to the rights 
 granted, and to the duties imposed upon the Ship Canal Company." 
 
 ARTICLE IX. 
 
 " It is understood and agreed by and between the contracting parties that 
 no expression used in this convention can be or shall be construed as relieving 
 either party from the performance of all the obligations imposed upon them 
 respectively by the charter of the 22nd of September, 1849, and amendments 
 thereto of the llth of April, 1850." 
 
 By a later contract of 1861, the Central American Transit Company is 
 authorised by the Government of Nicaragua to be organised by persons 
 composing the American Atlantic and Pacific Ship Canal Company 
 and certain rights and privileges which have come to be known as " Transit ' 
 rights, as distinguishable from " Canal " rights, are conferred upon the 
 associates in their new capacity. No reference is made to the outstanding 
 Canal rights, except that a saving clause is put in to guard the grant against 
 a collision of the Canal rights of the old Company or other parties with the 
 Transit rights then being given to the new Company. 
 
 The clause referred to appears in two contracts subsequent to 1857, and 
 is as follows : 
 
 " If the Government of the Eepublic should be a party to any contract 
 or convention which now exists for the construction of a Maritime Canal 
 across its territory, and the duration of the rights and privileges stipulated 
 for in the present contract shall be incompatible with the terms and con- 
 ditions of said contract or convention ; in such case the rights and 
 privileges stipulated for in the present contract shall only last until the 
 complete execution of the work of the Maritime Canal according to the 
 terms and conditions of said contract or convention." 
 
 This language shows very clearly that it was understood by the lawyers 
 advising the Nicaragua Government that the Canal rights of the Company 
 had survived the mutations which had overtaken their contract in other 
 respects. 
 
 The letter of the Nicaraguan minister, Mr. Yrisarri's, gives similar 
 evidence. It is therefore clear that the right to build the canal granted 
 by the contract of 1849 was not abrogated. 
 
 The Transit Company undoubtedly fulfilled the obligations 
 under the contract of 1861, but was illegally attached by the 
 Government on the 29th of November, 1862, and the contract 
 was declared invalid by a decree of President Martinez. 
 
42 
 
 And on the 2nd day of March, 1863, President (nd 
 interim) Castello ordered the seizure of the route, steamers, 
 carriages, wagons and all other materials used and destined 
 for the service of the Interoceanic Canal route, which were 
 declared to be the property of the Republic. 
 
 In November of the same year, 1863, a contract was signed 
 between the Company and the Government of Nicaragua the 
 Company paying the Government this time $100,000 for the 
 release and return of its steamers and other property. The 
 reservation of the canal rights was continued by this contract 
 and remained, as before, the property of the American Atlantic 
 and Pacific Ship Canal Company, which was owned by the 
 same parties. 
 
 The Company continued its work of improvement and 
 removal of obstructions from the San Juan Eiver, and other 
 works on the canal route, and the transportation of passengers 
 and freight across the Isthmus until 1868, when the plant 
 and property was again illegally seized and confiscated. 
 This Company is advised by counsel that the attachment 
 and seizure was an act of conspiracy, aided and abetted 
 by Nicaraguan officials and the judge who claimed and exercised 
 jurisdiction in the case, though entirely incompetent to try such 
 an issue; these persons, byname Avaristo Carazo, Ran Runnels, 
 and Satiago Morales, conspiring together, trumped up pretended 
 claims against the Company, which pretended claims were with- 
 out consideration by the Company, and wholly fraudulent 
 in fact and in law. Notwithstanding this fact, these parties, 
 aided and abetted by the commercial judge of Grenada, who 
 issued an illegal attachment against the property of the Com- 
 pany, and these parties further conspiring, and aided and abetted 
 by certain Nicaraguan officials, seized upon the Company's 
 steamers, houses, furniture, carriages, wagons, and entire plant 
 in Nicaragua, and had a pretended auction sale of this extensive 
 property ; but the illegality of these fraudulent proceedings was 
 so notorious that no bidders appeared at said pretended sale ; 
 and this large property of the Company was divided among the 
 conspirators. 
 
 But such illegal seizure and confiscation of its Transit Com- 
 
43 
 
 pany's plant and property could not and did not legally divest 
 the American Atlantic and Pacific Ship Canal Company of its 
 exclusive, inalienable and vested rights of property in and to its 
 canal route, water channels, rights of way, and other property 
 in said State of Nicaragua. This Company further sheweth 
 and declares that the action of said Nicaraguan court, and the 
 seizure of the Transit Company's plant, was wholly illegal, and 
 were forced measures which this Company had no power to 
 resist or control. And the American Atlantic and Pacific Ship 
 Canal Company further declares and sheweth that it has in no 
 instance committed any laches upon its part, but has been 
 prevented by the numerous seizures and confiscations of its 
 accessory company's plant and property from prosecution of its 
 work of constructing its canal across the State of Nicaragua in 
 a peaceful and lawful manner, as provided for in its contracts 
 with the Government of that State. 
 
 The Government of Nicaragua has not only seized and con- 
 fiscated the property of the Company a number of times, and 
 fulminated a number of annulling decrees against the Company, 
 but has also attempted to infringe this Company's exclusive 
 right to construct its ship canal across the territory of 
 Nicaragua, and has made or attempted to make four distinct 
 contracts or concessions to other parties and persons during 
 the existence of these contracts, and subsequent to the several 
 seizures of the Company's plant as aforesaid : one of which 
 was to M. Belly, one to M. Chevalier, and two to the " Navy 
 King," represented by Mr. A. G. Menocal, Civil Engineer, 
 United States Navy. The two last named concessions have no 
 better legal tenure or title than the two first named conces- 
 sions to the property, the canal route and water channels 
 of the American Atlantic and Pacific Ship Canal Company 
 situated in Nicaragua. 
 
 The illegality of any concession or contract of any person 
 or company claiming to have a contract or concession from the 
 Government of Nicaragua to construct a canal across that 
 State, other than the American Atlantic and Pacific Ship 
 Canal Company, is clearly shown in the following letter of the 
 Secretary of State of the United States, Mr. Cass to Mr. 
 Lamar. 
 
44 
 
 DOCUMENT No. 70. 
 56. Mr. Cass to Mr. Lamar. 
 
 [Extract,] 
 No. 9.] DEPARTMENT OF STATE, 
 
 Washington, July 25, 1858. 
 
 Sin : * * * These great avenues of intercommunication are vastly 
 interesting to all commercial powers, and all may well join in securing their 
 freedom and use against those dangers to which they are exposed from 
 aggressions or outrages originating within or without the territories through 
 which they pass. 
 
 But the establishment of a political protectorate by any of the powers of 
 Europe over any of the independent States of this continent, or, in other 
 word?, the introduction of a scheme or policy which would carry with it a 
 right to interfere in their concerns, is a measure to which the United States 
 have long since avowed their opposition, and which, should the attempt be 
 made, they will resist by all the means in their power. 
 
 The reasons for the attitude they have assumed have been fully pro- 
 mulgated, and are everywhere well known. There is no need upon this 
 occasion to recapitulate them. They are founded on the political circum- 
 stances of the American Continent, which has interests of its own, and 
 ought to have a policy of its own, disconnected from many of the questions 
 which are continually presenting themselves in Europe, concerning the 
 balance of power and other subjects of controversy arising out of the con- 
 dition of its States, and which often find their solution or their postpone- 
 ment in war. It is of paramount importance to the States of this 
 hemisphere that they should have no entangling union with the powers of 
 the Old World, a connection which would almost necessarily make them 
 parties to wars having no interest in them, and which would often involve 
 them in hostilities with the other American States, contiguous or remote. 
 The years which have passed by since this principle of separation was first 
 announced by the United States have served still more to satisfy the people 
 of this country of its wisdom, and to fortify their resolution to maintain it. 
 happen what may. 
 
 The progress of events has rendered the interoceanic routes across the 
 narrow portions of Central America vastly important to the commercial 
 world, and especially to the United States, whose possessions, extending 
 along the Atlantic and Pacific coasts, demand the speediest and easiest 
 modes of communication. While the just rights of sovereignty of the 
 States occupying this region should always be respected, we shall expect 
 that these rights will be exercised in a spirit befitting the occasion and the 
 wants and circumstances that have arisen. Sovereignty has its duties as 
 well as its rights, and none of these local governments, even if adminis- 
 tered with more regard to the just demands of other nations than they have 
 been, would be permitted, in a spirit of Eastern isolation, to close these 
 gates of intercourse on the great highways of the world, and jufetify the act 
 
45 
 
 by the pretension that these avenues of trade and travel belong to them 
 and that they choose to shut them, or, what is almost equivalent, to 
 encumber them with such unjust regulations as would prevent their general 
 use. The United States do not seek either the control or the exclusive use 
 of these routes. They desire that the advantages should be equally common 
 to all nations. Nor do they claim to interfere with the local governments 
 n the determination of the questions connected with the opening of the 
 routes, and with the persons with whom, contracts may be made for that 
 purpose. "What they do desire, and mean to accomplish, is that the great 
 interests involved in this subject should not be sacrificed to any unworthy 
 motive, but should be guarded from abuse, and that when fair contracts 
 are fairly entered into with American citizens they should not be wantonly 
 violated. 
 
 Other nations will no doubt pursue the same course in relation to 
 their citizens or subjects who may have similar interests. 
 
 But besides these general considerations applicable to this subject, there 
 are others which impose additional obligations upon these isthmian powers, 
 and which bear with equal force upon their relations with other nations. 
 Several of these power?, and Nicaragua especially, have in fact, by their 
 public proceedings, invited the co-op3ration of the capital, and industry, 
 and enterprise of the world in order to open these lines of communication. 
 The citizens of the United States have contributed their fall share towards 
 the accomplishment of the enterprise, and this Government intends to use the 
 means in its power to protect them in the enjoyment of their rights. The 
 good faith of Nicaragua has been committed, and large sums have been 
 expended looking to its faithful observance. 
 
 A paper has recently appeared in the public journals, to which I have 
 already referred, purporting to be a contract between the Governments the 
 Presidents rather of Costa Rica and of Nicaragua and M. Belly, a French 
 citizen, and his associates, constituting a new canal-route company, and 
 providing for its operations. Nothing is known here officially of the 
 authenticity of this paper, but it carries with it a strong probability that it 
 is genuine, and, presuming it to be so, it furnishes you with an occasion to lay 
 before these Governments the views of the United States respecting their 
 own interests and the interests of their citizens involved in the contracts 
 for opening transit routes. So far as regards the action of Costa Rica, the 
 President adheres to the views laid down in the instructions to our special 
 agent, Mr. Jones, a copy of which has been communicated to those Govern- 
 ments, and also furnished to yourself. And the United States, while they 
 interposed no objection to an amicable adjustment by those republics of the 
 question of their boundary line, will recognize no arrangement which inter- 
 feres with the existing transit interests as insisted on in those instructions. 
 
 The United States no more claim for their citizens an exclusive right to 
 form contracts for opening these transit routes than they claim for them 
 the exclusive use of the routes when the work is completed. Their con- 
 struction is a fair object of competition for the citizens and subjects of all 
 
other powers. The work is as open to M. Belly and his associates as to 
 any other enterprising person. There are but two points connected with 
 this matter which have any interest for the United States, or which would 
 justify their intervention. Thejirst is, that no contract with M. Belly, or 
 with any one, indeed, should interfere with engagements previously existing 
 with American citizens, but that all such engagements should be preserved 
 inviolate; and the second is, that the regulations and conditions of the 
 grant should be such as to render the routes free and safe to all nations 
 but controlled by no one, and upon moderate and reasonable terms. It 
 would be equally impolitic and unjust for these Governments, in a 
 desire to make those great undertakings profitable to themselves, without 
 furnishing any contribution towards their construction, to levy onerous 
 charges upon the persona and property destined to pass over them, and by 
 this means interpose serious obstacles to their general use. These local 
 governments should look to the vast benefits which these enterprises will 
 bring to the countries through which they pass, and not strive by excessive 
 impositions to make them sources of revenue, and defeat, by this ill-judged 
 measure, the very object sought to be obtained. 
 
 It is not necessary that I should enter into a detailed examination of 
 M. Belly's contract. There are physical and financial obstacles, as well as 
 political ones, in the way of its execution, some of which can hardly be 
 overcome. I shall, therefore, only advert to one of the provisions, rather 
 with a view to the future proceedings of these Governments than from any 
 practical bearing it will have in this case. 
 
 But previously to doing so I will bring to your notice one extraordinary 
 stipulation which it could scarcely have been expected would be acceptable 
 to the United States, and which must have been entered into in the antici- 
 pation of their objections to it. Those objections are insurmountable. 
 
 This obnoxious arrangement provides that the French Government 
 shall have the right to keep two ships of war stationed in the waters of Lake 
 Nicaragua for the entire duration of the works. 
 
 I am persuaded that this proposition will meet no favour from the 
 French Government, and that its name has been introduced here unwarrant- 
 ably and without its knowledge. The equality and security of these inter- 
 oceanic routes constitute a great portion of their value to the world, and all 
 commercial powers are interested in their maintenance. An exclusive right 
 in one of these powers to exercise a permanent armed intervention would 
 give serious cause of dissatisfaction to all the others, and the United States 
 freely avow their determination to oppose such a measure should the 
 Governments of Costa Rica and Nicaragua attempt to carry it into effect. 
 
 But there are additional conditions applicable to this contract with M. 
 Belly, and to other contracts for similar purposes entered into by the 
 Government of Nicaragua which commend themselves to the Government 
 of the United States, and will not be disregarded. There are several 
 American citizens who, with different interests, claim to have formed en- 
 
47 
 
 gagements with the proper authorities of Nicaragua, for opening and using 
 the transit routes, with various stipulations denning their privileges and 
 duties, and some of these contracts have already been in operation. This 
 Government has neither the authority nor the disposition to determine the 
 conflicting interests of these claimants ; but what it has the right to do, and 
 what it is disposed to do, is to require that the Government of Nicaragua 
 should act in good faith towards them, and should not arbitrarily and wrong- 
 fully divest them of rights justly acquired and solemnly guaranteed. The 
 United States believe it to be their duty, and they mean to execute it, io watch 
 over the per sons and property of their citizens visiting foreign countries, and 
 to intervene for their protection when such action is justified by existing cir- 
 cumstances and by the law of nations. Wherever their citizens may go 
 through the habitable globe, when they encounter injustice they may 
 appeal to the Government of their country, and the appeal will be ex- 
 amined into with a view to such action in their behalf as it may be proper 
 to take. It is impossible to define in advance and with precision those 
 cases in which the national power may be exerted for their relief, or to 
 what extent relief shall be afforded. Circumstances as they arise must 
 prescribe the rule of action. In countries where well-defined and estab- 
 lished laws are in operation, and where their administration is committed 
 to able and independent judges, cases will rarely occur where such inter- 
 vention will be necessary. But these elements of confidence and security 
 are not everywhere found, and where that is unfortunately the case the 
 United States are called upon to be more vigilant in watching over their 
 citizens, and to interpose efficiently for their protection when they are sub- 
 jected to tortious proceedings, by the direct action of the Government, or 
 by its indisposition or inability to discharge its duties. 
 
 But there is yet another consideration which calls for the attention of 
 this Government. These contracts ivith their citizens have a national im- 
 portance. They affect not ordinary interests merely, but questions of great 
 value, political, commercial and social, and the United States are fully 
 justified by the considerations already adverted to in taking care that they 
 are not wantonly violated, and the safe establishment of an interoceanic 
 communication put to hazard or indefinitely postponed. The course of the 
 Government of Nicaragua with relation to these engagements contains nothing 
 in it reassuring, for the future contracts, duly executed with all the forms of 
 law, carrying with them important vested rights, have been arbitrarily set 
 aside by executive decrees a mode of proceeding not recognised in the con- 
 tracts themselves and without resorting to the action of judicial tribunals. 
 The facts in dispute have been unjustly assumed, and the hand of violence 
 has been laid upon solemn engagements which ought to have found their 
 security in the good faith of the Government. lam not aware that in any 
 case has the forfeiture of a contract been declared in any other way than by 
 an arbitrary decree. This is a state of things to which no nation is bound to 
 
48 
 
 submit. It is vain to expect that the means of men and money required 
 from other nations for the execution of these works will be furnished in the 
 face of such manifestations of bad faith. Without confidence these great 
 enterprises must fail ; nor is it probable that one of them requiring a heavy 
 outlay would now be undertaken and completed without some surer 
 guarantee for their protection than would be furnished by the engagements 
 of these Central American States. The danger of violation is too well 
 known and appreciated to justify the expectation of the investment of 
 capital under such unpropitious circumstances. 
 
 So long as a pecuniary object is supposed to furnish a motive for rescind- 
 ing existing contracts and forming new ones, without any regard to vested 
 rights, no progress will be made in the construction of canals or of other 
 permanent and expensive works for transportation. 
 
 The United States, acting in behalf of their citizens, object to this system 
 of confiscation, and they do not doubt but what they will have the concurrence 
 of all other powers who have similar interests in these vastly important mea- 
 sures. What the United States demand is, that in all cases where their 
 citizens have entered into contracts ivith the proper Nicaraguan authorities, 
 and questions have arisen, or shall arise, respecting the fidelity of their execu- 
 tion, no declaration of forfeiture, either past or to come, shall possess any 
 binding force unless pronounced in conformity with the provisions of the con- 
 tract, if there are any, or if there is no provision for that purpose, then, 
 unless there has been a fair and impartial investigation in such a manner 
 as to satisfy the United States that the proceeding has been just, and that 
 the decision ought to be submitted to. 
 
 Without some security of this kind, this Government will consider itself 
 warranted, whenever a proper case arises, in interposing such means as it 
 may think justifiable, in behalf of its citizens who may have been or who 
 
 may be injured by such unjust assumption of power. 
 
 * * # * * * 
 
 I am, &c., 
 
 LEWIS OASS. 
 
 This Company laboured honourably, faithfully, persistently, 
 and at enormous expense, to maintain itself against these unlawful 
 and forced measures, and only yielded to superior force, which 
 it could not control ; but such forced suspension of works in 
 Nicaragua by the Company for the time being cannot be construed 
 as an abandonment of its grants, property, and " inalienable 
 rights," and its exclusive right and privilege to construct its ship 
 canal across the territory of Nicaragua, and also its chartered 
 rights as a, body politic and corporate with perpetual succession. 
 
 The American Atlantic and Pacific Ship Canal Company 
 HAS NEVER ABANDONED Us exclusive right to construct its inter- 
 
49 
 
 oceanic ship canal across the territory of Nicaragua, cr its rights 
 to othfr prcpcrty under its contract with that State, nor does 
 this Company now abandon its purpose and right to build its 
 canal across the State of Nicaragua, which it is fully determined 
 to do, unless prevented by the interference of Government) and 
 force beyond its control ; nor has the Company surrendered 
 or abandoned its chartered rights as a " body politic and corporate 
 with perpetual succession," as granted by ihe Government of 
 Nicaragua to this Company. 
 
 With the fair promises of protection made by the Govern- 
 ment of Nicaragua, and the strongly-drawn contracts between 
 the State and the Company, and such powerful guarantors as 
 those two great nations, the United States and Great Britain, 
 the Company ought to have been maintained in the peaceful 
 possession of its property and its interoceanic canal route. If 
 such had been the case the Company fully believes and states 
 that its Interoceanic Ship Canal would have been constructed 
 and in use by the commerce of the world many years ago. 
 
 CLAUSES FROM THE CONTRACTS. 
 
 The American Atlantic and Pacific Ship Canal Company 
 deems it unnecessary to go into a detailed and circumstantial 
 history of its incorporation and contracts with the Government 
 of Nicaragua, as said contracts are matters of record. Nor is 
 it necessary to encumber this protest with a reprint of all these 
 contracts, as made with the Government of Nicaragua, or the 
 statutes and decrees made by that State to and with this Com- 
 pany, and under which this Company acts, but this Company 
 herewith reprints the following articles from these contracts and 
 statutes, as being all, in their opinion, that is necessary for the 
 purposes of this protest. 
 
 ARTICLE 1. 
 
 " The State of Nicaragua grants to the said Company the exclusive right 
 and privilege of constructing a ship canal across its territory by a single 
 route, and at its own expense, from the port of Sc. John's of Nicaragua, or 
 any more feasible point on the Atlantic, to the port of Realejo, Gulf of 
 Amapala or Fonseca, Tamorinda, St. John's of the South, or any other 
 point on the Pacific Ocean, which the engineers of the Company may 
 decide upon, by means of the St. John's River, Lake Nicaragua, River 
 Tipatapa, Lake of Leon, or any other lakes, rivers, waters and lands 
 
50 
 
 situated within its territory, with the object of connecting the two oceans, 
 and to make use of, for its construction and navigation, said rivers, lakes, 
 water, and lands, both public and private. And the State also grants to 
 the Company the exclusive right to the administration, management, and 
 control of said canal, according to the following Articles." 
 
 ARTICLE JV. 
 
 " The exclusive rights and privileges herein granted to the said Company 
 by the said State, shall be enjoyed by the same for the fixed term of eighty-Jive 
 years, counted from the day in whi"h the Canal shall be completed and put 
 
 in use." 
 
 ARTICLE XXXII. 
 
 " The State also binds itself to protect and defend the Company in the full 
 enjoyment of the rights and privileges granted in this Contract ; and also binds 
 itself not to contract with, or cede to, any Government, individual, or com- 
 panies whatsoever, the right of constructing a ship canal, railroad, or any 
 other communication across its territory between the two oceans ; or the right 
 of navigating, by means of steam vessels, any of its rivers or lakes which may 
 "be occupied by the Company while this Contract continues in force. . . ." 
 
 ARTICLE XXXIII. 
 
 " In case any dispute or controversy shall arise during the existence of 
 this contract, between the State and the Company, the same shall be 
 determined by reference to five commissioners, to be chosen in the follow- 
 ing manner : two to be named on the part of the State, and two to be 
 named by the Company, and the fifth to be selected by the four others 
 appointed, who shall hear and determine the matters in controversy, and 
 decide upon the same, which decision of the said commissioners shall be 
 final and without appeal, and binding upon both the State and Company." 
 
 Article Y. of the Convention and Agreement entered into 
 on the 26th of October, 1857, provides 
 
 "That in order to simplify and expedite the objects proposed in 
 Articles XXXIII. and XXXIV. of the contract of August 27th, 1849, 
 whenever it may be necessary to appoint arbitrators to decide such disputes 
 or controversies as may arise between the Government of Nicaragua and 
 the Company, one arbritrator only shall be appointed by each party, and 
 in case of their disagreement, if the arbitrators do not within three days 
 select a third arbitrator, application shall be made within ten days to the 
 three oldest ministers plenipotentiaries, or ministers resident in default of 
 plenipotentiaries, or charges d'affaires in default of ministers resident 
 according to dates of reception in Washington, to select such third 
 arbitrator, and the minister or diplomatic representative of Nicaragua 
 shall in no case be one of the three authorised to select. In case any one 
 of these ministers or charges d'affaires shall excuse himself, or from any 
 cause should not be able to act, his place should be successively supplied 
 by the next oldest minister or charge d'affaires, according to the order of 
 reception in Washington, until the object is obtained. Persons interested 
 
51 
 
 in the Company, or the officers, agents, or employees thereof, cannot be 
 appointed arbitrators, nor can the officers, agents, or employees of the 
 Government of Nicaragua be so appointed. 
 
 " The arbitration shall take place in the city of New York." 
 
 This Company has formally requested the Government of 
 Nicaragua to appoint its arbitrators, or commissioners, to meet 
 the commissioner or arbitrator appointed by this Company, to 
 adjust and settle all differences as between the State and the 
 Company ; but up to this date no commissioner or arbitrator 
 has been appointed by the Government of Nicaragua, and no 
 arbitration has ever been had or held. 
 
 This Company is advised by eminent counsel : " That there 
 i* no mode, under the Canal contract of 1849, and of the amend- 
 ments thereto, of settling differences except by arbitration , as 
 there provided, and the decisions and annulments made or 
 
 attempted to be made by the Republic, are void." 
 
 They further say : 
 
 " We are of the opinion that the right conferred upon the 
 American Atlantic and Pacific Ship Canal Company by the 
 Republic of Nicaragua, in the contract between that Republic 
 and the Company, to build a ship canal across the territory of the 
 Republic, survives unimpaired in favour of that Company" 
 
 The American Atlantic and Pacific Ship Canal Company 
 asks only this one thing of the Congress and the Executive 
 of the United States, i.e., that Congress will not act as 
 advocates, legislators and judges in the case of the 
 American Atlantic and Pacific Ship Canal Company versus the 
 Government of Nicaragua and the so-called Maritime Canal 
 Company of Nicaragua, for such a course would be extra- 
 judicial, and would be manifestly unfair and unjust to this 
 Company, and the citizens of the United States who are its 
 shareholders. 
 
 The Senate Chamber and the House of Representatives is 
 not the proper court to decide so important a case, involving as 
 it does such large vested rights of property, and which 
 have cost the shareholders of the American Atlantic and 
 
 Pacific Ship Canal Company millions of dollars, honestly 
 
 D 
 
52 
 
 expended in good faith under the contracts with the Grovern- 
 ment of Nicaragua. 
 
 Has the Congress of the United States the constitutional 
 right to pass an Act that has for its objects and purposes the 
 sequestration of the vested rights of property of American 
 citizens in a foreign country ? 
 
 Can Congress enact a statute which can be sustained, which 
 has for its object and purposes the violation of an existing 
 contract, statutes and decree, and which would impair existing 
 contracts between American citizens and a foreign State ? 
 
 Has Congress any authority under the Constitution to enact 
 a law, which would be in effect a Letter-of-Marque, against the 
 commerce and property of citizens of the United States ? 
 
 Where is the constitutional provision that authorises the 
 Congress of the United States to enact special laws for private 
 and personal corporations, whose property and business lie 
 wholly out of the statutory jurisdiction of the United States ? 
 
 Is there any constitutional provision authorising Congress to 
 enact laws for and to exploit a foreign Company in an inde- 
 pendent and foreign State, whose proposed works and property 
 and business to be acquired is wholly in such foreign State ? 
 
 If the Bill to incorporate the proposed Maritime Canal 
 Company of Nicaragua be passed by Congress, by what rule of 
 law can such Act vest legal title to property in said Company 
 in a foreign State ? 
 
 Can any Act of Congress regulate the tenure of title to real 
 estate, or give to such Company the power of eminent domain 
 in the State of Nicaragua ? 
 
 If Congress pass an Act incorporating the said proposed 
 Maritime Canal Company of Nicaragua, is it contended, and can 
 it be supposed that such Act could legally authorise or empower 
 that Corporation to enter into possession and seize upon the 
 property of the American Atlantic and Pacific Ship Canal 
 Company, situated in Nicaragua ? 
 
 This Company is advised by counsel that these naval officers 
 and their confederates, and the said Maritime Canal Company 
 can in no sense be considered innocent or ignorant trespassers 
 
53 
 
 upon the canal route, water channels, rights of way, and other 
 property of the American Atlantic and Pacific Ship Canal 
 Company, situated in said State of Nicaragua ; and the said 
 naval officers and their confederates, and the Maritime Canal 
 Company, have entered into their scheme of trespass and spolia- 
 tion with malicious, wicked, and deliberate intent, and with 
 knowledge of the claims of exclusive rights of the American 
 Atlantic and Pacific Ship Canal Company in and to said canal 
 route, rights of way, water channels, and other properties 
 situated in said State of Nicaragua, as and in accordance with 
 the grants, contracts, statutes, and decrees made by that State 
 to and with said American Atlantic and Pacific Ship Canal 
 Company. 
 
 If the so-called Maritime Canal Company of Nicaragua think 
 they have acquired any valid right to enter upon and take posses- 
 sion of the American Atlantic and Pacific Ship Canal Company's 
 rights of way, water channels, its canal route and other vested 
 and inalienable rights of property in the State of Nicaragua, then 
 the said so-called Maritime Canal Company of Nicaragua will 
 have an opportunity to establish the validity of their so-called 
 concession, or any supposed rights which said Company may 
 think they may have acquired by reason of their contract with 
 the said State, in the proper courts and before a competent 
 tribunal, who can legally hear and impartially decide these 
 questions. For it is the purpose of the American Atlantic and 
 Pacific Ship Canal Company to take such legal steps in the 
 proper tribunals as will establish the priority and the 
 exclusive and inalienable rights of property of this Com- 
 pany under the contracts, statutes and decrees made by the 
 lawful authorities of Nicaragua to and with this Company, and 
 to for ever establish the indubitable, exclusive and inalienable 
 right of this Company to the rights of way, water channels 
 and canal route across the State of Nicaragua, in a full and 
 perfect manner, as set forth in the contract and statute made 
 by the State to and with the American Atlantic and Pacific 
 Ship Canal Company. 
 
54 
 
 Finally, this Company represents and sheweth to Your 
 Excellency the unconstitutionality and illegality of any Act 
 which Congress may pass to incorporate the so-called Maritime 
 Canal Company of Nicaragua. 
 
 And should the Congress of the United States pass an Act 
 to incorporate said Maritime Canal Company of Nicaragua, and 
 which is intended and is in effect an act of spoliation, and 
 threatens the vested and inalienable rights of property of 
 the American Atlantic and Pacific Ship Canal Company 
 situated and being in a foreign state, the American 
 Atlantic and Pacific Ship Canal Company, on behalf 
 of its shareholders who are citizens of the United States, 
 and they as American citizens hereby most respect- 
 fully request your Excellency, as President of the United 
 States, to exercise your great authority on behalf of 
 justice, and for the protection of the vested and inalien- 
 able rights of property of the American Atlantic and 
 Pacific Ship Canal Company and its shareholders, citizens 
 of the United States, whose property is situated in said 
 State of Nicaragua, and all of which property is of great value, 
 consisting of its rights of way, water channels, rivers, streams, 
 lakes, lands, its interoceanic ship canal route, and other property, 
 as granted under contract made by said State of Nicaragua to 
 and with the American Atlantic and Pacific Ship Canal Com- 
 pany and its shareholders, citizens of the United States of 
 America, and as confirmed and secured to the said Company and 
 its said shareholders by statute and decree enacted and made 
 by the Congress and lawful authority of said State of Nicaragua. 
 
 And that Your Excellency, in such exercise of your great 
 authority in the cause of justice and for the protection of the 
 citizens of the United States in a foreign country, and for the 
 safeguarding of the vested rights and properties of American 
 citizens, where such property is situated in a foreign state, 
 this Company most respectfully and urgently requests you to 
 exercise your constitutional authority and to disapprove such 
 
55 
 
 Bill to incorporate the Maritime Canal Company of Nicaragua, 
 and that you will veto the Act if it be passed by the Congress 
 of the United Slates. 
 
 And for all other and further relief this Company will 
 ever pray. 
 
 The Company have the honour to be, 
 
 Sir: 
 Your Excellency's 
 
 Most obedient Servants, 
 
 THE AMERICAN ATLANTIC AND PACIFIC 
 SHIP CANAL COMPANY, 
 
 By A. L. BLACKMAN, 
 
 PRESIDENT. 
 
 NH.W YORK, February 27th, 1888.