248 NATIONAL ACADEMY OF SCIENCES 
enterprise. Companies were organized which obtained valuable 
concessions from the existing Nicaraguan government, only to 
have them withdrawn in a few months by a succeeding govern- 
ment; undertakings commenced with great enthusiasm and a 
liberal outlay soon languished for lack of financial support, or 
terminated abruptly in consequence of the expiration of charters; 
adventurers appeared who misled the Nicaraguan legislatures 
by claiming the support of European powers, but were soon 
repudiated by their governments and forced to withdraw. Such 
kaleidoscopic changes went on continuously down to the time 
when the French Panama Canal Company decided to offer its 
holdings to the United States at a price which the latter was 
willing to consider, and attention turned suddenly from Nicara- 
gua to Panama. 
Among the American companies which undertook to build 
the Nicaraguan canal and obtained concessions from the 
government was one organized in 1849 and called the “ Com- 
pania de Transito de Nicaragua.” ‘This was soon merged in 
the larger “ Atlantic and Pacific Ship-Canal Company ” con- 
trolled by Cornelius Vanderbilt and other American capitalists. 
As the ship-canal was likely to be long in building, a subsidiary 
company was formed in 1851, which opened a passenger route 
from Greytown up the San Juan River and across Lake Nicara- 
gua by boat, and thence down to the Pacific coast by a stage road. 
This route had been in operation but a few years when the 
American adventurer Walker appeared in Nicaragua and hay- 
ing been successful in overturning the existing government pro- 
ceeded to have the charter of the canal company revoked and its 
property confiscated in retaliation for an action unfavorable to 
his ambitions which was taken by the United States. While 
the company was endeavoring to recover its rights, a French ad- 
venturer persuaded the Nicaraguan government to turn over 
the canal concession to him, claiming that he was supported in 
his enterprise by France. The French government, however, 
repudiated him, and the Nicaraguans being now in a friendly 
mood toward the United States granted the rights of the steam 
