CHAPTER XXVI. THE INTER-OCEANIC CANAL-CHARTER FOR THE TRANSIT ROUTE-SYNOPSIS OF PRESIDENT MONROE-BRITISH INTERFERENCE-NICARAGUA PROTESTS-THE AMENDED-LEONEZE THE Transit, or in other words, the route per the Rio San Juan, from Greytown on the Atlantic side to Lake Nicaragua, thence across to Virgin Bay, and thence overland twelve miles, to San Juan del Sur on the Pacific, is a highway in which, save as a speculation, Nicaragua itself has but little interest, inasmuch as it develops no internal resources, no agricultural or mineral wealth, conciliates neither the Serviles or the opponents, but is solely a source whence the State receives a profit, an annual subsidy. That the route should be under a pro THE GRANT FOR THE TRANSIT ROUTE. 273 tectorate, joint if desired, there cannot be a doubt, since Nicaragua convulsed by revolutions is unable at present to maintain either its tranquillity, or neutrality. On the 27th of August, 1849, a Grant was obtained, and ratified with an American Company on the 23d of September, from which a Charter was consummated under the assurance that if of a proper character, the American Government was willing to extend to it its guarantees. A synopsis of the provisions therein contained, may prove at present, interesting. It is as follows: 1st. That the American Atlantic and Pacific Ship Canal Company may construct a Ship Canal, at its own expense, from the Port of San Juan, or any more feasible point on the Atlantic, to the Port of Realejo, or any other point within the territories of the Republic, on the Pacific, and make use of all lands, waters, or natural materials of the country for the enterprise. 2d. The dimensions of the Canal shall be sufficiently great to admit vessels of all sizes. 3d. The Grant is for the period of eighty-five years from the completion of the work; the preliminary surveys to be commenced within twelve months; the work to be completed within twelve years, unless unforeseen events, such as earthquakes or wars, shall intervene to prevent it; if not completed within that time, the charter to be forfeit, and whatever work may have been done, to revert to the State; at the end of eighty-five years the work to revert to the State free from all indemnity for the capital invested; the Company, nevertheless, to receive fifteen per cent. annually of the net profits, for ten years thereafter, if the entire cost shall not exceed twenty million dollars; but if it does exceed that sum, then it shall receive the same per centage for twenty years thereafter. 4th. The Company to pay to the State ten thousand dollars upon the ratification of the contract, and ten thousand dollars annually until the completion of the work; also to give to the State two hundred thousand dollars' worth of stock in the Canal, upon the issue of stock; the State to have the privilege of taking five hundred thousand dollars of stock in the enterprise; to receive for the first twenty years, twenty per cent. annually out of the net profits of the Canal, after deducting the interest on the capital actually invested, at the rate of seven per cent.; and also to receive twenty-five per cent. thereafter, until the expiration of the Grant. 5th. The Company to have the exclusive right of navigating the interior waters of the State by steam, and the privilege, within the twelve years allowed for constructing the Canal, of opening any land or other route, or means of transit or conveyance across the State; in consideration of which, the Company shall pay, irrespective of interest, ten per cent. of the net profits of such transit to the State, and transport, both on such route, and on the Canal, when finished, the officers of the SYNOPSIS OF ITS PROVISIONS. 275 Government and its employees, when required to do so, free of charge. 6th. The Canal to be open to the vessels of all nations, subject only to certain fixed and uniform rates of toll, to be established by the Company, with the sanction of the State, graduated to induce the largest and most extended business by this route; these rates not to be altered without six months previous notice, both in Nicaragua and the United States. 7th. The Contract, and the rights and privileges conceded by it, to be held inalienably by the individuals composing the Company 8th. All disputes to be settled by referees or commissioners to be appointed in a specified manner 9th. All machinery and other articles introduced into the State for the use of the Company, to enter free of duty; and all persons in its employ to enjoy all the privileges of citizens, without being subjected to taxation or military service. 10th. The State concedes to the Company, for purposes of colonization, eight sections of land on the line of the Canal in the valley of the River San Juan, each six miles square, and at least three miles apart; with the right of alienating the same, under certain reservations; all settlers on these lands to be subject to the laws of the country, being, however, exempt for ten years from all taxes, and also from all public service, as soon as each colony shall contain fifty settlers. 11th. It is expressly stipulated, that the citizens, vessels, products, and manufactures of all nations shall be permitted to pass upon the proposed Canal through the territories of Nicaragua subject to no other, nor higher duties, charges, or taxes than shall be imposed upon those of the United States; provided always that such nations shall first enter into the same treaty-stipulations and guarantees, respecting said Canal, as may be entered into between the State of Nicaragua and the United States. Such are the provisions of the Charter, and as we now tread upon the threshold of new and thickening events, let us cautiously survey them, ere the fogs of bigotry and clouds of dissension have arisen to dim the horizon. The acquisition of California in 1848 by the United States, the disclosure of its vast mineral wealth, its consequent political organization, and social development, precipitated upon the world the solution of a communication across the Isthmus, and such a passage, however desirable to other nations, became doubly so to the United States, for the purposes of commerce and defense. With our sympathies, we had extended the Spanish American States favorable commercial treaties. In 1823, was announced the postulate of President Monroe. "The American Continents, by the free and independent condition which they have assumed and maintained, are henceforth not to be considered subjects for further colonization by |