The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-05-12
" u: s.sssery Of tse Eafop'sa
~--OAlIfcrGtw
Opening Of the Nscsrssus HSsns
Dsmsl Contract A ~ orded.

Opening Of the Nicaragua asss,s
DsasI Contract a ~ erdesi.
BY our telegrapLic intelligence from Washing
ton 1t was announced in yesterday HERALD that
tue coouaot for carrying the mails seu.l monthly
between New York and San Francisco, for u
period OF nine months, commencing lst OF Octo-
Der next, was awarded to David ii. john
son. Of this city. But it will be seen from
letter in another column, signed by tue
President Of "rhe American Atlantic aud Pacific
Ship Canal Company" that that company have
nothing to do with Mr.. johnson, and that the
award has not been made to it. AT the same
time it is not denied-as, indeed 1t cannot be-
that Mr.. johnson has obtained the contract II
is only denied that "he represents the Nicara-
guam route interest" 1t is stated that Mr.. Van
derbilt equally repudiates the connection. Mr.
johnson, therefore, who is stock broker ia Wall
street, and is not supposed to be capitalist, has
some other moneyed men at his back, and two
or three distinguished 6ranciers are spoken Of
as being the parties concerned.
Blu; it is contendsd that Sl62,O 900 would never
pay, and that the contract, therefore, is not
iona Jfde The object, however, is not so much
to make money directly by the contract with
the government as to make the passenger
business pay, in virtue Of the government Gu
dossement Of the line. Tue contract is ooly for
nine months and after the line is established a
more profitable contract may take its place. Euor
nous profits have been made by those lines which
ore now carrying passengers TO the Pacific and
this has stimulated rivalry aud competition to
such degree that we have no doubt responsible
parties could be found who would carry the
mails gratutously in order to get the ohief share
OF the passenger trade.
The American Atlantic and Pacific Ship Caual
Company have contract with the Nicaraguau
government, entered into in 1857, for monopoly
Of the route the consideration being 81 so per
passenger; and it will be asked how can that
government recognise any other line? But it
has already repudiated the contract, or charter,
and prohibited the vessels OF the company from
entering the Nicaraguau territory. 1t has also
made smother contracta later one-kuown as
the Vandyke contract, with Philadelphia parties,
and it is probable that il is on the basis of this
the gentlemen who have now obtained the con-
tract from our government for carrying the mail
will organize the new company. If the old COM
pany have lost the benefits Of the exclusive pri-
vileges conferred on them by their charter, they
may thank themselves for quarreling with each
other. 1t is true they may demand damages
from Nicaragua for breach of contract; and
judging from the letters of General Cass, those da-
IMAGES will be enforced by cur government should
Nicaragua prove reluctant to pay the indemnity.
In letter of the Secretary of State addressed to
General Lamar, in July last, the right of Mica
ragua arbitrarily to annnl such contracts was
peremptorily denied, and the duty of the Amer-
can government to watch over and protect their
citizens distinctly laid down. This letter was
referred to in o recent letter of Mr.. Cass, al
dressed to Mr.. Yelverton, the President of the
American Atlantic and Pacific Ship Canal
Company, in which the policy Of the govern
ment is reiterated, and General Cass adds In
consequence of communication from General
Jerez, the Ncaraguan Minister, have just ad-
dressed him note avowing the determination
of the President to adhere to the principles laid
down in the letter to General Lamar"
In surveying alone, we believe, the expense of
the company amounts to upwards of s25O,OOO
So that for this they have legitimate claim,
provided they have not forfeited their rights. 1t
is provided in the contract between the Ncara-
guam government and the American Atlantic
ard Pacific Ship Canal Company, that for any
wilful breach or non-performance of any of the
stipulations the government of Nicaragua may
annul the said contract after having submitted the
question to the decision of arbitrators, and after
the arbitrator have decided against the company
One arbitrator to be chosen by each side; and if
these two should not agree, then the Oldest
foreign Minister at Washington to appoint
third. This process has not yet been gone
through, and what it may bring forth it is hard
to say. Meantime, the company look forward to
vast damages from the Nicaraguan government
This renders the affairs of the route somewhat
complicated, and how the ugly knot is to be
locsed time only can tell. Two things are evil
dent. One liz, that the public have not confidence
In tbs route, and Gil endorsement of our govern
ment IN the shape Of mail contract to some
line is necessary 10 restore the lost confidence.
The other fact is, that our government is deter
mined to have the route opened to all the world,
notwithstanding the Vaccinations of Sir Gore
Ouseley, Monsieur Belly and the Commodores.
The British and the American governments, I'M
derstand each other. Their views are the same.
They both want the line free and open to ALL
Sir Gore Ouseley's tortuous policy does not suit,
and the British government is compelled to fall
back on the basis of the Cass and Yrisarri treaty
for an open transit, and new treaty is in pro-
gress of negotiation to that effect
The Nicaragua line will, therefore, soon be
open. The Panama and Tehuantepec lines are
open. The overland route is not only open, but
it proposes to carry the mails daily for double
the amount Of the contract which it now receives
for semimonthly services proposition which
is likely to be accepted; and the Honduras