CHAPTER XXVII.

RIVAS REVOKES THE TRANSIT COMPANY'S CHARTER-WHAT NICARAGUA CLAIMS IN THE MATTER-THE REPLY THERETO-WHAT THE UNITED STATES AND NICARAGUA AGREED TO DO-WHAT RIVAS DID AND THE REMEDIES THEREFOR THE CASS AND YRISARRI TREATY-WHAT PRESIDENT BUCHANAN SAYS -WANTS AN ARMED FORCE TO PROTECT THE TRANSIT-WHAT THE POSTMASTER-GENERAL SAYS-IMPORTANCE TO FOREIGN RESIDENTS OF KEEPING THE ROUTE OPEN-MONSIEUR BELLY NEGOTIATES FOR A ROUTE-REMARKS OF THE FRENCH PRESS THEREON-CHRISTOPHER COLUMBUS, BARON HUMBOLDT, AND LOUIS NAPOLEON ON INTER-OCEANIC COMMUNICATIONS-OVERLAND ROUTE -GEN. CASS ON THE INTERVENTION OF FOREIGN POWERS-THE POLICY OF THE AMERICAN CONTINENT.

IN August, 1852, the Accessory Transit Company made its first inter-oceanic trip over the Nicaraguan route, and continued in successful operation until February 18th, 1856; then it was suddenly closed, and the Grant and Charter of the Company were arbitrarily revoked by the Government of Rivas. It will be remembered that at this period General (289)

19

Walker was Chief of the forces of the State. Prior to this, in 1854, serious disputes had arisen between Nicaragua and the Company concerning the settlement of accounts, and even at that date the interruption of the Transit was threatened. The United States, desirous of harmonizing all the existing diffi culties, interposed in vain.

From the date of the discontinuance of the Transit, the route has been closed, greatly to the prejudice of the United States. Nicaragua contends that the Charter is void, inasmuch as the Company did not complete the necessary surveys in the time specified in the Grant. This is one of the chief allegations. In reply, by referring to Section 3d of said Charter, we find: "The Grant is for the period of eightyfive years from the completion of the work; the preliminary surveys to be commenced within twelve months." Surveys were duly made by the Company. The time for the completion of the work, according to the section already referred to, was "within twelve years, unless unforeseen events, such as earthquakes or wars, shall intervene to prevent it." Hence, upon this allegation, Nicaragua fails to sustain her action.

In the Treaty of Commerce and Friendship, negotiated on the 23d of September, 1849, we shall perceive that Nicaragua and the United States "do severally and jointly agree to protect and defend the Company in the full and perfect enjoyment of said work from its inception to its completion, from

THE CASS AND YRISARRI TREATY.

291

any acts of invasion, forfeiture, or violence, from whatever quarter the same may proceed."

If the Rivas Government was an unlawful one, since the Company's Charter was forfeited by it, and the route summarily closed, why has not the subsequent Government reinstated the Company? If damages have been sustained by the latter, by reference to the eighth section of the original Charter, we find: "All disputes to be settled by referees or commissioners, to be appointed in a specified manner." Until Nicaragua shall have adhered to her stipulations, the Company have complaints to urge and justice to demand; and should that State refuse to acknowledge the validity of its claims, the United States, being a party to the Treaty of Commerce and Friendship, should receive the petition of the claimants.

On the 16th day of November, 1857, a treaty was signed by Secretary Cass and Señor Yrisarri, Minister of Nicaragua under the stipulations of which the use and protection of the Transit Route would have been secured, not only to the United States, but equally to all other nations. But by reference to all the Treaties and Charters herewith connected, the neutrality of the route was stipulated for on terms of equality to all other countries. This latter treaty contained a provision authorizing the United States to employ force to keep the route open, in case Nicaragua should fail to perform her duty in this respect. This was the principal objection, and

this clause being insisted upon by the United States, the Treaty has, as yet, failed to receive the ratification of the Nicaraguan Government. President Buchanan, in his Message of December 8th, 1858, in relation to Central America, says:

"The political condition of the narrow Isthmus of Central America, through which transit routes pass between the Atlantic and Pacific Oceans, presents a subject of deep interest to all commercial nations. It is over these Transits that a large proportion of the trade and travel between the European and Asiatic continents is destined to pass. To the United States these routes are of incalculable importance, as a means of communication between their Atlantic and Pacific possessions. The latter now extends throughout seventeen degrees of latitude on the Pacific coast, embracing the important State of California, and the flourishing Territories of Oregon and Washington.

"All commercial nations, therefore, have a deep and direct interest that these communications shall be rendered secure from interruption. If an arm of the sea, connecting the two oceans, penetrated through Nicaragua and Costa Rica, it could not be pretended that these States would have the right to arrest or retard its navigation to the injury of other nations. The Transit by land over this narrow Isthmus occupies nearly the same position. It is a highway in which they themselves

WHAT PRESIDENT BUCHANAN SAYS.

293

have little interest when compared with the vast interests of the rest of the world.

"Whilst their rights of sovereignty ought to be respected, it is the duty of other nations to require that this important passage shall not be interrupted by the civil wars and revolutionary outbreaks which have so frequently occurred in that region. The stake is too important to be left to the mercies. of rival Companies, claiming to hold conflicting contracts with Nicaragua. The commerce of other nations is not to stand still and await the adjustment of such petty controversies. The Government of the United States expects no more than this, and it will not be satisfied with less. It would not, if it could, derive any advantage from the Nicaragua transit not common to the rest of the world.

use of

"Its neutrality and protection for the common all nations is her only object. She has no objection for Nicaragua to demand and receive a fair compensation from the companies and individuals who may traverse the route; but she insists that it shall never hereafter be closed by an arbitrary decree of that Government. If disputes arise between it and those with whom they may have entered into contracts, these must be adjusted by some fair tribunal provided for the purpose, and the route must not be closed pending the controversy. This is our whole policy, and it cannot fail to be acceptable to other nations.