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Doc. No. 75. 



lations for their government as may be judged reconcilable with the 

 interests of the company, without preventing freedom of contract betvA ee.i 

 the workmen, artisans, and other laborers, and tlie company. 



Art. 6. The government concedes to the steaniships of the com- 

 pany the right of entering and lying in the ports of Nicaragua^ free from 

 all duties o? anchorage and tonnage or other port duties. 



Art. 7» The company engages to introduce, within six months after 

 the ratification of this compact by both parties, the engineers required for 

 making the preliminary examinations, and within a year after the same 

 date it will begin the works of the enterprise j on failure to do which; the 

 compact becomes null and of no value. 



Art. 8. Upon the expiration of the forty years during which the privi- 

 lege is to last, the company cedes to the kState, without any indemnifica- 

 tion, all the canals and railroads which it may have constructed, and all 

 the buildings, steamers, cars, and machines, and others means of trans- 

 portation in its possession. 



Art* 9. The government allows the Steam Company, during the 

 first ten years, to conduct the transportation through such routes as it 

 may find practicable, by roads and hues of stage coaches, until the con» 

 elusion of the canals and railroads; but if, on the expiration of these first 

 ten years, the said canals and railroads should not have been completed^ 

 the privilege for forty years shall end, leaving for the benefit of the State 

 all the works, edifices, steamers and cars, previously employed in trans- 

 portation, without any right on the part of the company to indemnification. 



Art. 10. The company cedes to the State ten per cent, of the 

 advantages which it may derive from the enterprise; and is bound to 

 deliver to the government of the State in each year that amount, clearly 

 proved by the current account of receipts and payments. 



Art. 11. In case of disagreement in the settlement of accounts, the ques- 

 tion shall be determined by arbitration of three persons — one appointed 

 by the government of Nicaragua, one by the company, and the third by 

 these two, both parties being bound to abide by the sentence of this 

 tribunal. 



Art. 12. The State establishes a custon>house for deposite at the 

 port of San Juan de Nicaragua, another on the river of Pasquiel, another 

 at Moabita, and another at the port of Realejo, or another point which may 

 be selected as the place of embarcation or disembarcation on the coast of 

 the Pacific ocean. The buildings required for the purpose shall be erected 

 by the company at its expense, for the State. 



Art. 13. Every cargo which may be landed in either of the two 

 ports forming the termini of the chief communication, shall be, without 

 exception, entered at the custom-house of deposite, where, without break- 

 ing any package, or examining it, it shall be sealed with the seal declared 

 by the government for marking, w^ithout distinction, all cargoes for transit, 

 and those for introduction into the country. 



Art. 14. One real shall be paid to the custom-house of deposite 

 on each package not exceeding in width one barrel or five cubic feet; and 

 one real more on every package exceeding such dimensions, for every five 

 cubic feet. 



Art. 15. Every cargo taken from the custom-house of deposite for 

 transit must be accompanied by the usual permit, clearly stating the 



