The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1852-11-20
The Rejoinder OF the Nicaras uan Minister.
LEGATION OF NICARAGUA, !
New YORK. Nov. 10. 1852

TO THE EDITOR OF THE NEW YORK HERALD.
6ir:-A communication, purporting to come from
the directors Of the Nicaragua Accessory Transit
Company, and signed by the Vice President Of that
company, has appeared in the newspapers, with the
purpose Of endeavoripg to break the force of the
documents already published, respecting its acts
ard affairs, and to mislead and confuse the public
mind as to the true points Of controversy between
the company and the State of Nicaragua, and my
self as its representative. The statement that 10
far as the company is concerned, it is unaware OF
any "dificulties Of serious nature" with Niaara-
qua, is put forward with gravity which is hardly
less ludcrous than the statement is mendacious.
The diss greeable duty has been imposed on me to
make numerous remonstrances, and to take many
and energetic measures against the assumptions Of
this company, its illegal acts, and general and ia
grant disregard Of its obligations; and in doing
tnis it has been the fortune both of myself and my
government to be met, from the outset, with eva
sions, bad faith, falsehood, and abuse.
The principal object of the communication Of the
directors is to explain why they violated their char
ter in refusing to arbitrators for the settle
ment of certain disputed charges in the accounts
between the company and State, as if this was the
sole point in issue; whereas, this is one only Of
series Of acts equally vitiating and offensive.
By the terms of its charter this Transit Company
is bound to pay oNetenth Of its net profits, without
0e0uCtlOn OF interest on investment, 10
qua But it has never paid one cent to Nicaragua,
although it pretended, months ago, to declare q
dividend of two dollars share on its stock Why,
if the directors of this company were acting honest
tions Of the net pro6ts-for there can be no divi-
dend without profits! But it is useless to waste
words upon this point, for the public is doubtless
aware that this declaration Of dividend was .
fraud, to delude people into the purchase of the
stock of the company.
Il cannot be doubted that, in first settlement
between companies and States some differences
a. pro oss Nor cam i be doubted that the
"commendable caution" which insults common
sense with false and preposterous charges, in
such settlement, .verges hard on swindling.
Of its capital, that is the money it has spent in
boats, roads, &c., shall be charged against the
ings Of the company. and that the State shall re-
oeive nothing until this is reimbursed. The total
expendituresof the company for these objects, it is
true, have been small, amounting, for steamers,
&c.. to $2lO 947 81, and for road, to $2S 955 33,
or to q total of $239,93 IA. This is the entire
amount of the positive investment of the company,
according to its showing. the whole Of its CAPT
tai and all Of its assets at original costs; that is to
say, less than six per cent on the amount Of its
stock; yet it has sold this stock at probably ave-
rage rate Of twenty-five per cent, and still requires
Nicaragua to admit the original investment against
the earnings of the company. Of course, Nicaragua
can do no such thing. The demand of the company
is utterly inadmissabe, and not entitled to be seri-
The total positive or permanent investment Of the
company in Nicaragua, is the called transit road,
for its steamers may at any time be withdrawn. This
sSs s. Ths paSe aSs
can be called establishing transit route in the in
tent Of the charter.
The company, in its communication, speaks of
Mr.. Manning sole commissioner Of Nicaragua,
whereas the special powers under which he acted
were equally conferred upon me. Mr. Manning was,
in fact. only empowered to act in conjunction with
myself, or, in the exact language Of the powers,
Plenip0tentiary," So If, therefore, Mr.. Manning
refused to proceed further than he did, it pre-
cisey because he could not do So and for the
set forth by HIMSELF in his letter to the company,
of October 9th, in which he said :-"My powers are
jointly connected with Mr.. Marcoleta, as you are
aware" The powers of the commissioner IS
such, were only for the liquidation of the ten per
The power to appoint arbitrators is entirely distinct,
and 10 derived from article 33 Of the charter, and
il the cole function of the government, through its
representative, invested with plenary powers. All
Of the propositions and professions of the company,
therefore, to Mr. Manning. upon this point, were
idle, and he could not do otherwise than decline any
astisn, and refer the company to the government.
cred specially and in the largest man
ner commissioned to take charge Of the interests of
the State, connected with the company My powers
it viii be seen from the following extract were ample
for every possible contingency, even to the amending
or altering of the charter Of the company, and TO
arrange whatever "incidente,' circumstance or diff
Guilty which might arise-
therzed to arrange with tho Transit and Canal Compa
niles whatever circumstances which may occur and to
.npy or modify said contracts in accordance with the
iastructions communicated to him.
Not only so, but the Minister OF Foreign Affairs,
Of Nicaragua, in communicating these powers to the
president Of the company expressly informs him that
am empowered TO arrange the various matters
in which Nicaragua is so deeply interested" This
attempt to deny my authority in the premises, is
last, desperate shift to evade just obligation (not
properly been characterized by Mr., Lord and the
coed sense Of the community, as the attempt of
men under obligation which they are unwilling or
unable to meet, to avoid its performance Bat what
ever may be its pretensons now, for the purpose
of evadng its obligations. this company has already
fully admitted and implicitly recognized my author
ity to arbitrstors for the settlement of differ
enees, in communication addressed to me-, under
date Of July Is, 1852, and which may be made pab-
lilo in duo time.
The company say that the differences alluded to
are Of so grave nature that they prefer to submit
them to the government direct. This after the re-
suit Of former submissions of similar kind, it would
seem common prudence not to attempt. During
my relations with the company, and when vigorously
discharging my duties towards it, have mere than
oEse had it intimated to me that "my interests
would be found to coincide with theirs, in . man.
ner which indicated clearly enough the purpose. To
there insidious advances have never had but one
answer, and what that was the company is no
likely to forget. Failing in their purpose to unduly
influence my conduct, their next effort waste under
mine my position with my government, and procure
representative in my place who should be more
favorable to their selfish views. The Director Of
Nicaragua was besieged to that end, and with an
impudence entirely unparalleled, he was told that
unless this done the restitution of the port Of
San Juan could not be efected-as if this company
held the disposition of that port in its own feeble
hands! The reply to these advances may be gath
cred from the subjoined extracts from the letters Of
the Supreme Director addressed to myself
have been invited to send new Minister to Wash
ington which refused to do, because has given
to Nicaragua many proofs Of loyalty Is you was
told that unless this done the return Of the port Of
6aa Juan could not be gusranteed to which answered.
ali which be BY policy and justice will be OBJ
tanned by the noble efforts Of Mr. Marcoleta. will not
dkparsge his merit Djure his diplomatic repuation
he faithful citizen of Nicaragua will render to his
country the boon Of peace.
Again, the Director Of Nicaragua, as late as