Doc. No. 75. 



175 



AnT. 8. It is hereby stipulated that the State of Nicaragua shall have 

 the privilege of taking stock in the said canal to the amount of five hun- 

 dred thousand dollars within one year from the ratification of this con- 

 tract, which it may distribute, as it may deem proper, among any of its 

 native citizens, or the citizens of the adjoining States, upon giving notice 

 to the company of such intention through the United States consul in the 

 city of Leon. 



Art. 9. It is further stipulated that a majority of the stock of said canal 

 shall always be owned by citizens of the United States; in evidence of 

 which, the stock books of said company shall always be open to inspec- 

 tion at the principal office of the company, wherever the same may be 

 located. 



Art. 10. The company binds itself to commence the preliminary sur- 

 veys for said works within the period of twelve months from the date of 

 the ratification of this contract, and also to complete the said canal within 

 twelve years from the same date. Bat if any fortuitous or unforeseen 

 events beyond the control of the company, as, for example, earthquakes,, 

 epidemics, wars, or any other events of this nature, should appear during 

 the progress of the work to suspend its execution, the time thus lost shall 

 not be reckoned as a part of the stipulated time above given for its com- 

 pletion. In case such event should occur, the company shall give im- 

 mediate notice to the government of the same, for the purpose of deciding^ 

 in connexion with the company, upon the nature of such event. 



Art. 11. If none of the events which are expressed in the preceding- 

 article should occur, and the work shall not be completed within the 

 said period of twelve years, then whatever may have been done by the 

 company to that time in the prosecution of the work shall be forfeited to_;, 

 and become the property of the State^ without any indemnity. 



Art. 12. The State gives to the said company the right to take, free 

 of any charge or indemnity, from any of the public lands or forests within 

 the State, all the wood, stone, lime, timber, or any other materials which 

 it may require for the construction and use of said canal and its depend- 

 encies. And the said State hereby farther gives to the company the 

 right to take and make use of such portions of the public lands as it may 

 require for the establishment or erection of houses, stores, docks, wharves^, 

 stations^ and all other useful objects connected with the works of said 

 canal. 



Art. 13. In case the company shall require any materials, such as 

 wood, lime, stone, &c., which may be found in or upon the lands of 

 particular individuals, it shall be obligated to pay for the same at such price 

 as may be agreed upon between the company and such individuals. 

 But all the lands which may be required for the passage of the canal in 

 its entire route shall be at the expense of the State, and the company 

 shall not be liable to pay any indemnity for the same. 



Art. 14. All the articles that the company may require both for the 

 surveys and explorations and for the construction and use of the works 

 of the canal, such as machines, instruments, tools, &c., and all other 

 necessary materials, shall be admitted into the State free of duties of all 

 kinds, and may be discharged in any of its harbors, or at any other point 

 within its territory that the company may select — in this last case, how- 

 ever, giving notice of such intention to the proper government officer. 

 But the company shall have no right to introd.uce within the territory of 



