244 THE MARITIME CANAL OF SUEZ. 



This unexpected Despatch caused an excitement, which showed 

 itself by a heavy fall in the value of the shares of the Canal. The 

 Viceroy of Egypt, Ismail Pasha, at this juncture, appointed Nubar 

 Pasha, as Envoy Extraordinary, to proceed to Paris, and on his arrival 

 he published an opinion of three eminent French lawyers upon the 

 rights of the Company, to which the latter replied by a judicial action 

 against Nubar Pasha. The attention of the French Government 

 was at once invoked to interests so grave as those which were 

 threatened, as it had been successfully invoked four years previously ; 

 and their high intervention was again solicited in order to deliver 

 the Company from so great a danger. On the ist March, 1864, 

 the subscribers met in extraordinary Assembly, and unanimously 

 approved of the action taken by the Viceroy of Egypt, to submit 

 the difficulty to the Arbitration of the Emperor of the French, in 

 the hope of securing the amicable adjustment of all the questions 

 in dispute. 



THE ARBITRATION OF NAPOLEON III. 



The Emperor Napoleon III. promptly accepted the rdle of Arbi- 

 trator, and no time was lost in proceeding to the Arbitration, for 

 two days subsequently the Commission was duly constituted, 

 under the presidency of M. Thouvenel, with whom were, MM. 

 Mallet, Suin, Gonin, and Duvergier, and forthwith they entered on 

 their searching inquiry. Their investigations continued four 

 months, and on the 6th July, 1864, an Arbitral decision was given, 

 signed by the Emperor, to the following effect : — 



That the concessions made by the late Khddive, Mohammed Said 

 Pasha, in November, 1854, and January, 1856, were to be binding 

 on both parties ; that, in consequence of the withdrawal of the com- 

 pulsory labour, the cost of the works would be increased, and there- 

 fore, the Viceroy should pay an indemnity of ;^i, 520,000, payable 

 in fifteen annual instalments ; that, the company should cede to the 

 Viceroy the Fresh-water Canals, reserving only the right of passage 

 through them ; that, the Viceroy should pay ;i^4oo,ooo for the cost 

 of the construction of the said Canals, and _;^24o,ooo as compensa- 

 tion for the tolls which the Company thereby relinquished ; that the 

 Company should retain only such lands along the line of the Mari- 

 time Canal, as might be necessary for the care and maintenance of 

 the said Canal ; that the Company should cede to the Viceroy their 



