The republic. [volume] (Washington [D.C.]) 1849-1853, 1849-10-13
From The Ne.o York Euening Post.
TERMS OF CONTRACT
Between the state OF Nicaragua and the At
lxntio and Pacific Ship Canal Company.

V,
GATES being always citizens of the United States
desiring TO settle the terms of contract for facili
tating the transit the isthmus OF Nicaragua
from the Atlantic TO the Pacific oceans, by means
of a ship canal or railroad, have appointed
missoners the part of the Directors of the State
OF Nicaragua, Messrs. Hermenegilda Zepeda and
Gregono Juares, and ON the part of the said com
pany, Mr., -, with full powers TO arrange and
conclude contract for the above named purposes;
which commissioners, having exchanged their re,
spective powers, have agreed upon and concluded
the following articles
ARTICLE /.
The State Of Nicaragua grants 70 the said com
pany the exclusive right and privilege oi construct
ing ship canal across its territory Dy single
route, and at its expense, from the port oil ST
Johns, of Nicaragua, any more feasible point on
the Atlantic to the port of Realelo, Gulf of Anna
pala or Fonseca, Tamorinda, 81. Johns OF the
South, or any other point on the Pacific ocean that
the engineers of the company may decide upon
by means of the ST. Johns river, Lake Nicaragua,
river Tpitapa, Lake of Leon, or any other rivers,
lakes. waters and lands situated within its terrific
ry with the object of connecting the two oceans,
and to make Of for its construction and navi-
cation, said rivers, lakes, waters and lands, both
public and private. And the State also grants to
the company the exclusive right to the administra
ton, management and control of said canal, ac-
cording to the following articles
ARTICLE IL.
The dimensions of the canal shall be such may
be necessary Tor the passage OF vessels of all
and the point on which il shall terminate on the
Pacific in the event that the engineers of the com
pany shall decide upon two points equal
ly practicable, shall be that one most consistent
with the mutual interests both of the State and the
company
ARTICLE III.
The company binds itself TO construct, at its
expense in the harbors at the extremities of the
route of said canal, custom house buildings of the
necessary capacity, for the of the State and the
company.
ARTICLE Nv.
hare
ed to the said company by the said State, shall be
enjoyed by the same for the fixed term of ghty five
years, counted from the day in which the canal
shall be completed and put in use.
ARTICLE v.
The company hereby agrees to pay to the said
State, for the said grant, the following sums OF
money, viz:
lst Ten thousand dollars by draft on the said
company in the city of New York. as this
contract shall be ratified by the Legislature of the
State.
I'd. Ten thousand dollars at the expiration of one
year from this same date and ten thousand dollars
each year thereafter until the completion of the
said canal; the above TO be paid to the State
in the city of Leon, or in the city Of New York as
the State may elect. Also the said company makes
free donation to the said State of two hundred
thousand dollars Of stock In the enterprise, which
shall be delivered TO the State the certih-
Gates of stock shall be distributed by the company
ARTICLE VI.
Said State shall receive for its proportion of the
use, the following interests, for the first TWEEN
ty years, twenty per cent. annually out of the net
profits, after deducting therefrom the interest of
the capital employed in its construction, the rate
of seven per cent. per annuIn; and twenty five per
cent. each year thereafter out of the said net pro-
fits, after deducting the said seven per cent, until
the expiration of the full period of the herein
above granted. And the State shall also receive
per cent. of the net profits, without any deduc
ton of interest, of any route which the company
may establish between the two oceans, whether it
be by railroad carriage road, or by any other
means of communication, during the twelve years
herein granted Tor the construction of said canal
ARTICLE
The said company shall be bound to make and
present annual report and account TO the gov
eminent of Nicaragua, setting forth the receipts
and expenditures, well as statement of the
dition of the works of the canal which report shall
be certified by the proper officers Of the company
The State, however, shall have the right through
any commissioners which il may appoint for that
purpose, to inspect and examine at any time the
books of the company, to satisfy itself of the
rectness of said receipts and expenditures.
ARTICLE
1t IL hereby stipulated that the State Of Nicara-
qua shall have the privilege Of taking stock in the
said canal TO the amount of fiye hundred thousand
dollars within year from the date of the ratifi-
cation of this contract, which II may distribute il
may deem proper among any of It's native citizens,
or the citizens of the adjoining States upon giving
notice to the company of such intention through
ARTICLE TX.
Ii Is further stipulated, that a majority of the
stock Of said canal shall always be- owned by cti-
zen. Of the United States; in evidence Of which, the
stock books Of said company shall always be open
10 inspection the principal office Of the company,
wherever the same may be located.
ARTICLE
The company binds itself 10 commence the pre-
hmnaIy surveys for said works within the period
of twelve months from the date Of the ratification Of
this contract, and also 20 complete the said canal
within twelve years from the same date. But If any
fortuitous unforeseen events, beyond the control
OF the company, az Tor example, earthquakes cpl
denies, wars, any other event Of this nature
should appear during the progress OF the work, To
suspend its execution, the time thus lost shall not
be rec koned part Of the stipulated time above
given for It's completion. In such event shall
occur the company shall give immediate notice TO
the government Of the same, ior the purpose Of de-
Gliding, in connexion with the company, upon the
nature Of such event
ARTICLE XII.
II none OF the events which are EXPRESSED in the
preceding article should occur and the work shall
not be completed within the said period Of twelve
years; then whatever may have been done by the
company up TO that time in the prosecution Of the
work, shall b. forfeited 10, and become the proper
~ If the State without any indemnify.
ARTICLE XII.
The State gives ~ the said company the right u
take free Of any charge or indemnity, from any d
the public lands or forests within the State all the
which il may require for the construction and the
U.s. Of said canal, and it, dependencies. And ths
said State hereby further gives 20 the company tn,
right 10 take and make Of such portions Of tn,
public lands il may require for the establish
ipent or erection Of houses, stores, Docks wharyes
stations. and all other useful objects connecte,
with the works Of said canal
ARTICLE
In case the company shall require any materials
,uch AZ wood, lime, stone, &c, which may be- founc
ina or upon the lands Of particular individuals, il
shall b. obligated 10 pay for the same, such price
ar may be agreed upon between the company anc
such individuals but all the lands which may b,
required for the passage Of the canal, in is cntir
rute shall be at the expense Of the state, and th
company shall not be liable 10 pay any ndemnit,
for the same.
ARTICLE
All the articles that the company may require
both for the surveys and explorations, and 10
the construction and Of the works Of the ca
nal. such az machines, instruments, tools, &c, an
all other necessary materials, shall b. admitted int
the State free Of duties of all kinds, and may B
discharged in any Of it, harbors, at any othe
point within IL territory that the company may -