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 have them withdrawn in a few months by a succeeding govern- 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 ofifer 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 hav- 

 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 



