76 AMERICAN DIPLOMATIC QUESTIONS 



an impossibility. The association was neither chartered nor 

 incorporated ; it had no connection with the government ; 

 it was simply a private syndicate. Between two and three 

 million dollars were quickly subscribed, and Mr. Menocal 

 was seni to Nicaragua to secure the necessary concessions. 

 With an ample bonus paid in advance to the Nicaraguan 

 authorities, he met with no difficulty in obtaining for his 

 clients (April. 24, 1887) an exclusive right to build and 

 afterward to operate a carrai ior^nmetylnine years. ~T he 

 state bound itself u not to make any subsequent concession 

 for the opening of a canal between the two oceans during the 

 term of the present concession/' and the association pledged 

 itself to expend a certain amount within a specified time and 

 to complete the work in ten years. 



Upon Mr. Menocal's return to the United States the syn-v 

 dicate caused a " Nicaraguan Canal ConatFUCfi* 



to be incorporated under the laws of Colorado with a nominal 

 capital of $12,000,000. As an adjunct to the " Association " 

 a'nd in conformity with the terms of their concession, the 

 Construction Company at once set about making necessary 

 linal surveys and eliminating the technical uncertainties that 

 still stood in the way of the commencement of actual construc- 

 tion. Mr. Menocal led this engineering expedition. The 

 survey covered a period of nearly three years, and was 

 a most exhaustive scientific investigation of the route. 

 Throughout the country considerable interest began to attach 

 to the progress of Mr. Menocal's investigations, and the C.inal 

 Association had the heartiest good will of all for its future 

 feuccess ; in fact, a general belief began to manifest itself 

 that the company should have the protection, as well as the 

 ^dignity, of a national charter. Under stress of sudden pop- 

 ular enthusiasm, both Houses of Congress assented to the 

 proposition to charter the association, and very soon after the 

 introduction of the measure into the Senate the company 

 rereived its articles of inrorporat ion and was christened the 

 ""Maritime CanaiCoinpSny of Nicaragua" (February 20, 

 1889). 



The company was at once organized with $10,000,000 of 



