Doc. No. 75. 137 



Canal Route, 



I am at this time unable to present the results of any personal observa- 

 tions upon the practicability, etc., of a canal route across the continent, 

 from this port to the Pacific. I have, however, had the pleasure of meet- 

 ing here Dr. I). T. Brown, of New York, (a copy of whose letter to the 

 department, enclosing one from the foreign minister of Costa Rica, is 

 appended to my instructions,) who, as the agent of Howard and company, 

 of New York, has investigated the matter pretty thoroughly. At my re- 

 quest, he has drawn up the results of his observations, which are appended, 

 (B.) The facts which his letter contains are extremely interesting and 

 impl^rtant; and, as Mr. Brown contemplates returning very soon to the 

 United States, the department may be able to obtain from him a large 

 amount of valuable and reliable information upon this and collateral sub- 

 jects. The fact of the subsidence of Lake Leon, and the complete inter- 

 ruption of the river of Zipetapa, communicating with Lake Nicaragua, is, 

 I believe, entirely new. Mr. Brown's account of the depth of the waters 

 in the San Juan is confirmed by persons here who are accustomed to pass 

 up and down that river. 



On the behalf of his principals. Dr. Brown, on the 17th of March last, 

 concluded a contract with the Nicaraguan government, a copy of which 

 is appended, (C.) It is the Nicaragua proposition, and is very far from 

 being liberal. Dr. Brown is not of the opinion that it will be accepted by 

 his principals. 



I learn that Mr. White, on behalf of his principals, (Vanderbilt and 

 company,) has made a proposition to the Nicaraguan government, which, 

 if I am correctly informed of its details, is most extravagant. My inform- 

 ation is not, however, as well authenticated as 1 could wish; and I shall 

 not, therefore, trouble the department with what may prove to be 

 unfounded. 



In connexion with this matter, I may mention that Samuel Shepherd, 

 of this port, and one or two other individuals, hold grants from the 



Mosquito King," (dating as far back as 1839,) of the entire country on 

 both sides of the San Juan, from Bluefields river, on the north, to Boca 

 del Toro, (including Chinqui Lagoon,) on the south; and bounded by 

 Spanish American States on the west, and the ocean on Ihe east. A 

 copy of one of these grants is attached, (D.) The others are similar in 

 terms. Admitting British pretences in the quarter, it would seem that a 

 canal company might obtain all desirable rights of passage, etc., through 

 the disputed territories, from the proprietors of these grants.* 



I to-day had a conversation with the British consul general, in which 

 he informed me that the English government had asserted, and determined 

 to maintain, the claim of the Mosquito Kmg, as far up the San Juan as 

 the rapids of Machuca, which is about two-thirds of the entire distance. 

 He also stated that Mr. Chatfield, the British consul general in Guatemala, 

 had recently threatened a forcible intervention, to compel the payment, by 

 Nicaragua, of her quota of the loan contracted in England by the republic 

 of Central America, during its existence; as, also, the payment of Cf-rtain 

 debts due British subjects residing in her territories. This threat, backed 

 by the blockade of Ponsonate, was last year successful in procuring an 



* These grants were lately formally annulled by the " Mosquito Gouncil," in session assembled. 



