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by the treaty of April 15, 1858, as were also the points
relative to the canal, the two governments jointly granted a
concession on May 1 of that same year to Mr. Felix Belly, a
distinguished French writer, to whom the Emperor Napoleon gave
his support to carry forward the undertaking. This failing of
accomplishment, the two governments, in perfect accord,
concluded the contract known as the Ayon-Chevalier, signed by
Nicaragua on October 16, 1868, and by Costa Rica on June 18,
1869, which, it is unnecessary to say, also failed to produce
any results whatever. Some years after the expiration of this
last contract Nicaragua promoted a discussion as to the
validity of the treaty and the meaning of some of its
stipulations, which Costa Rica upheld in its original form,
and the question was submitted to the decision of the
President of the United States, Mr. Cleveland, who in his
award of March 22, 1888, accepted by both parties, declared
the treaty valid and binding upon each Republic and
interpreted the points which in the opinion of Nicaragua were
doubtful. According to the provisions of both of these
documents, the treaty and award, even in the remote event that
the natural rights of Costa Rica should not be injured, Nicaragua
is bound not to make any grants for canal purposes across her
territory without first asking the opinion of the Republic of
Costa Rica. Three years prior, and while this question was
still pending, Nicaragua concluded the treaty known as the
Zavala-Frelinghuysen, signed in Washington on December 1,
1884, whereby the title to the canal was conveyed to the
United States, and Costa Rica adhered to this treaty under
date of February 23, 1885; but the negotiations remained
without effect, because, ratification having been denied in
the Senate, although a reconsideration of the subject had been
agreed to, President Cleveland, on inaugurating his first
administration, withdrew the document from the Senate. Things
then returned to the status they formerly maintained, and
Nicaragua in April, 1887, and Costa Rica in July, 1888,
respectively granted the concessions pursuant to which the
construction of the American waterway has been pending of late
years. The Congress of the United States has been giving
special attention to this important matter since the year
1892, and commissions have been created charged with the
survey and location of the route, as well as the study of the
influence of the canal in its different aspects. Recently the
investigation is not limited to the route by Nicaragua and
Costa Rica alone, but extends to Panama."
{66}
C. M. Stadden,
Latest Aspects of the Nicaragua Canal Project
(North American Review, December, 1898).
Congress now (June 4, 1897) passed an Act which created a
commission to examine all practicable routes for a canal
through Nicaragua, and report its judgment as to the best,
with an estimate of the cost of the work on such route. The
commissioners appointed were Admiral Walker, Professor Haupt,
and Colonel Hains. Their report, submitted to the President in
May, 1899, unanimously recommended the route described as
follows: "This line, leaving Brito, follows the left bank of
the Rio Grande to near Bueno Retiro, and crosses the western
divide to the valley of the Lajas, which it follows to Lake
Nicaragua. Crossing the lake to the head of the San Juan
river, it follows the upper river to near Boca San Carlos;
thence, in excavation, by the left bank of the river to the
San Juanillo and across the low country to Greytown, passing
to the northward of Lake Silico." But while the commissioners
agreed in finding this route preferable to any others in the
Nicaragua region, they disagreed seriously in their estimates
of cost, Colonel Hains, putting it at nearly $135,000,000,
while Admiral Walker and Professor Haupt placed the cost at
little more than $118,000,000. Before the report of this
Nicaragua Canal Commission was made, however, Congress (March
3, 1899) had directed the appointment of another commission to
examine and report upon all possible routes for an
interoceanic canal, in the Panama region and elsewhere, as
well as through Nicaragua and to determine the cost of
constructing such a canal and "placing it under the control,
management and ownership of the United States." This later
commission, known as the Isthmian Canal Commission, was made
up as follows:
Rear-Admiral John G. Walker, U. S. N.;
Samuel Pasco, of Florida;
Alfred Noble, C. E. of Illinois;
George S. Morrison, C. E., of New York;
Colonel Peter C. Hains, U. S. A.;
Professor William H. Burr, of Connecticut;
Lieutenant-Colonel Oswald H. Ernst, U. S. A.;
Professor Lewis M. Haupt, C. E., of Pennsylvania;
Professor Emory R. Johnston, of Pennsylvania.
The transfer of the Panama Canal from the later French company
to an American company, chartered in New Jersey, was
accomplished in December, 1899. The new company received all
the property, rights, and powers of its French predecessor,
the consideration to be paid to the latter being mainly in the
form of shares in the American company.
Map of Central America showing the Isthmian Canal Routes
{67}
"(a) Between New York and San Francisco, the Nicaragua Canal
route would be 377 nautical miles shorter than the Panama
route. Between New Orleans and San Francisco 579 miles would
be saved, and, in general, the distances between the Atlantic
and Pacific ports of the United States are less by way of
Nicaragua. Between our east coast and Yokohama and Shanghai
the Nicaragua route is somewhat shorter, but for the trade of
our eastern ports with the west coast of South America the
Panama route is not so long as the Nicaragua.
{69}
See, in volume 4,
NICARAGUA: A. D. 1850.
"ARTICLE I.
It is agreed that the canal may be constructed under the
auspices of the Government of the United States, either
directly at its own cost, or by gift or loan of money to
individuals or corporations or through subscription to or
purchase of stock or shares, and that, subject to the
provisions of the present Convention, the said Government
shall have and enjoy all the rights incident to such
construction, as well as the exclusive right of providing for
the regulation and management of the canal.
"ARTICLE II.
The High Contracting Parties, desiring to preserve and
maintain the 'general principle' of neutralization established
in Article VIII of the Clayton-Bulwer Convention, [Added by
the Senate] which convention is hereby superseded, adopt, as
the basis of such neutralization, the following rules,
substantially as embodied in the convention between Great
Britain and certain other Powers, signed at Constantinople,
October 29, 1888, for the Free Navigation of the Suez Maritime
Canal, that is to say:
"ARTICLE III.
The High Contracting Parties will, immediately upon the
exchange of the ratifications of this Convention, bring it to
the notice of the other Powers [and invite them to adhere to
it].
[Stricken out by the Senate.]
"ARTICLE: IV.
The present Convention shall be ratified by the President of
the United States, by and with the advice and consent of the
Senate thereof, and by Her Britannic Majesty; and the
ratifications shall be exchanged at Washington or at London
within six months from the date hereof, or earlier if
possible."