Doc No. 75. 



Ill 



proper for the purpose of storing away therein all the tools, machines^ 

 materials^ and property of every description which may be required for 

 Use in the construction , repairing, preservation^ and management of said 

 works; and should any portion of the lands or materials, or of the rivers^ 

 bays, ports, or their coasts or lakes and their shores, which may be neces- 

 sary and proper to be applied for t\\e location and construction of the said 

 works and their appurtenances, belong to individuals, the State of Nicara- 

 gua agrees and undertakes to extinguish the titles thereto, and to procure 

 the same upon a jnst principle of vahiation for the aforesaid pubhc works. 

 The aforesaid cession and grant shall inclnde a space of not less than 

 three hundred feet on each side of the lines of said works, and extending 

 all along the Y%diole length thereof, so that ample space be secured on the 

 margins of said works for the convenient use thereof. The just value of 

 such of said lands and materials as may be private property at the date of 

 this treaty will be paid for by said company. 



Art. 3. It is agreed that if the government of the United States shall 

 decide not to undertake and construct the said works, then either the 

 President or Congress thereof shall have the power and authority to 

 frame, enact, and issue a charter or act of incorporation, containing such 

 liberal provisions and such grants of rights and privileges (not inconsist- 

 ent with the rights of the contracting parties herein secured) as may be 

 necessary, convenient, or proper to effect the great objects in view; winch 

 charter and act of incorporation shall provide as follows: 



1. That the company which may be formed and organized under and 

 by virtue of its provisions shall be composed exclusively of the citizens 

 of one or both of the contracting parties who may subscribe for and be- 

 come the owners of the lo/wle of the capital stock required for the said 

 works. If, however, such citizens (thus having the preference) shall fail 

 in due time to subscribe for and become the owners of the whole amount 

 of the said capital stock, the residue thereof not taken by them may be 

 taken, paid in, and oviuied by the governments of both or either of the 

 contracting parties, or by the government or citizens of any other nation; 

 kingdom, or country. 



2. That said company shall have the sole and exclusive right and 

 privilege of constructing and owning such works as are herein named 

 within the State of Nicaragua, provided the same are commenced and 

 prosecuted within the time limited in tfiis convention. 



3. It shall authorize the said company to build and construct said canal 

 or canals in such directions, and of such width and depth, as they shall 

 in their discretion determine; and if the plan of roads is in part or in 

 whole adopted, the route, width, kind, and number thereof shall be de- 

 termined upon by the said company as they may think proper. 



4. It shall provide that said compan}^ may make contracts, sue and be 

 sued, as a corporation, with a given name and style, have a corporate 

 seal, and engage in all such trade and business as may be proper and 

 convenient in promoting all the operations required for the attainment of 

 the ends in view. 



5. It shall contain provisions adequate for the organization of said 

 company; it shall provide for the appointment of the officers, agents, en- 

 gineers, surveyors, superintendents, and other employes of said company; 

 and that snid company may make and adopt all its own by-laws and reg- 



it 



