The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1852-11-18
IMPORTANT DISCLOSURE.
TIE NICARAGUA TRANSIT COMPANY ROUTE
Fcseilurc Of the Grant 10 the Government,
Sc, So, So.

II 10 very well known that there is a company
styled "The Nicaragua Accessory Transit Com.
psny," deriving its privileges and powers from the
Republic Of Nicaragua, which has an office in this
city and is represented here by Board of Directors,
&c. This company originated in what is known rs
the Nicaragua Canal Grant, (from which, however,
1t is distinctly and holds the exclusive privilege
Of navigating the waters Of Nicaragua by steam,
which gives It the practical monopoly Of the transit
by the Isthmus. But this company is not, as has
generally been supposed, the owner Of tho lines Of
steamers running in connection with it, and form
ing what is called the Nicaragua route to Califor-
mia. These steamers belong chiefly TO Mr.. c. Van
derbilt. who was once largely but now slightly, if
Mt all. Interested in the Transit Company. The ex-
psuditures of this company have consisted in placing
few small stern-wheeed steamers on the river San
Juan and Lake Nicaragua, and in opening kind Of
road, Of little value, from Lake Nicaragua to the
Pacific. The returns of the company have been
the fares of passengers from one to the other,
and sale of about 49, 900 shares Of STOCK at pro-
badly average rate of 25 per cent on par. This
stock is founded, not upon actual and bona file in
vestments or expenditures bat solely upon the pri
vileges derived by charter from Nicaragua.
The principal condition under which the company
ing, which ferns part of Article VI -
And the State shall also receive ten per cent of the
net profits, without any deduction of interest OF
route which the company establish between the two
ocean, whether IL be by railroad or carriage road aud
by any other Of communication during The twelve
years herein granted &c.
BY other articles Of the primitive contract, made
applicable under the second, the company binds it
pef to present annual statement of it's affairs to
the State, and the State reserves the privilege to
appoint commissioners to examine the books and
accounts Of the company. The contract also pro-
vide that in of difficulty di pute between the
State and company, the matters in issue shall be
ferred to arbitraors two to be named by the State
two by the company, and fifth to be chosen by the
Arbitrators themselves, whose decision should be
anal.
Accordingly, in August last, the company, having
been in exercise Of It's powers for upwards Of year
and having paid profits to the State, rendered
any account Of ITS affairs, although it had, mean
time declared pretended dividend Of two per cent
the government of Nicaragua named two commits
sioners TO proceed to New York. To inquire into the
Of tbis drelection, and investigate the affairs
of the company. These commissioners were Don
Jose de Marcoleta. Minister of Nicaragua in the
United States, and an English gentleman, Mr..
Thomas Manning, for many years q resident in
Nicaragua Mr.. Marcoleta introduced Mr. Manning
to the officers of the company, and the commission
ers procee ded to discharge Of their dutes
Their first step to ask for inspection of the
books and accounts Of the company, which were ox-
hibited 10 them. In these books was entered the
dividend Of two dollars per share; and dividends
implied profits Nicaragua, on the face Of the trans
action, was entitled to upwards Of eight thousand
dollars There being reason to suspect that this
declaration Of a dividend Sas designed 70 enhance
the value of stock in the market, and advised by
mon OF business knows dye and kno wn integrity, in
order to determine whether there had been any pro.
ut or loss, the commissioners demanded balancs
Sheet or statement of accounts in order to report to
their government, in conformity with their instruc
lions
For long time this strictly just legal, and pro-
per demand, was evaded by irrelevant discussions
on the part Of the c0mpsny, whether the commits
sioners expected compliance With their demands
rs right, or only a courtesy. The commission
crs responded by repeating their demand, on the
grounds both OF right and Courtesy and after long
delay, document, purporting 20 be a statement or
accounts, was handed TO them. Perhaps che annals
of finance furnish parallel TO this most extraordi-
nary document, which, if true, showed Only that
the company was not only dee ply involved, but had
been, Notwithstanding its exorbitant charges
losing concern
But large part of the charges, as regarded Nj
esragua, were both ina3missable and absurd. For
instance, the expenses OF Messrs. White and Van
derbilts unfortunate expedition to England, for the
purpose OF inducing English capitalists 20 embark in
m entirely distinct enterprise, (hat Of the csnal)
was charged at the modest sum Of 5000 Thiswas
one only ola series OF charges, having nJre rSa
tion to the Transit Company, or ite expenditure,
than to the Erie Railroad and its accounts. OF
course these charges, and many otAers were mad
missibe on their lace. and the commissioners, now
convinced Of the bad faith Of the company sud alx
70 proceee wltA every possible degree of CAUTION
IN ii premises, determined 70 be guided by the
advice OF the best COUNSEL wlien tlil metropolis
could afford They therefore entrusted rheir legal
rights TO q gentlemln whose will directly ap
pear, and whose authority aud judgment ia matters
of law will not be called in question
Amongst the charges aluGed 10, and which the
hurr he ~
of the transit charges tor boats, cost Of the
30 called road the (preterded) surveys FOR canal,
the expenses Of SCENTS in procuring the various
charters from Nicaragua, &c &c all entered NJ
fabulously extrayagant ratios TIE balance sheet
was communicated 90 counsel, snd 10 leading mer-
chants OF this city, who Oh concurfed in the view Of
the commissioners as TO the inlpropristy Of the
charges generally. Before the presentation OF this
sheet, and suspGCing charges Of this kind, the
Minister Of Nicaragua advised with eminent mer-
chant On the subject, whose written reply is sub
Joined -
LETTER OF Nh EDWARDS
NEw YoRE, sept a. 1852
sirIhe sixth article IN tho charter Of the ca as Com
p.ny very clear mat the profits to 30 divided
one tenth TO the state and rnstenths = the company
The capt Of the company obtaining the charter pays
for steamboats, surveys makes the wharFes AMI
iplnity Of articles for putting everything in working
order.
E1penses are repairs fuel salaries wages and the cost
OF keeping in order Inc boats etc. reasonable
might he put down Tor and deterioration Of boats
After deduoing the expenses rom gains tse balance
profits Ten per cent belong 70 the State or Nicaragua
and the balance 20 stockholders Of the pGny They
Il in sdng the capital but the State cannot be
one-tenth interested sookh0der except BY actual
subscription The pany have right to divert the
profits nings any Thing but Building
road or steamboat is tie capital Of the Re-
specifically YOUR, AMoRY EDWARDS.
Meantime, various evasive and impertirently psr-
sona letters having been received by the representa-
tives Of Nicaragua from the company, in reply to
equitable claims en- the part Of his government,
Mr. Marcolota laid the whole correspondence before
his counsel, Mr. Lord, vhoee reply is subjsined.
These letters Of the company were fu Of diegrace-
full imputations and ISLANDERS, and, amongst other
things refused, upon utterly false and unsupported
petenees, since publicly denounced, to aokno 1ledge
the commission Of Mr. Marcoleta-sn evasion which
could have no other origin or pnrp1se than 20 con.