Doc. No. 75. 



205 



Art. 11th. If invincible impediments^, discovered in the course of the 

 work, prevent its execution^ the repubhc shall not be liable to make any 

 j remuneration whatever. 



I Art. 12. In case only a boat canal can be opened, the indemnifica- 

 tion shall be proportioned to the smaller benefit which will then result to 

 the republic." 



This decree was published jointly with another fixing six months for 

 receiving proposals; hut the term proposed was too short for any measures 

 to be taken on the part of conipanies or individuals, and the Congress 

 only received a repetition of a part of the proposals before made. 



i The principal of these were made by Mr. Bailey and Mr. Charles Be- 

 niski, the first as agent for the Eiiglish house of Messrs. Barclay, Her- 



1 ring, Richardson, & Co., and the second for Mr. Aaron H. Palmer, of 

 New York. Mr. Bailey's offer was conditional, while Mr. Beniski's was 

 positive, and was therefore accepted by the republic. The contractors, 

 under the name and style of the Central American and United States 

 Atlantic a?id Pacific Canal Co7npany^^^ were bound to open through Ni- 

 caragua a canal navigable for vessels of all sizes, and to deposite in the 

 chy of Grenada the sum of §200,000 for the preliminary expenses, within 

 six months, to erect fortresses for the protection of the canal, and to have 

 the works in progress within a period of twelve months. In compensa- 

 tion, they were to have two-thirds of the profits of the tolls upon the canal 

 until all the capital expended in the work was repaid, with interest at t}ie 

 rate of iO per cent., besides afterwards receiving one-half of the proceeds 

 of the canal for seven years, with certain privileges for introducing steam 

 vessels. I'he government was to put at their disposal all the documents 

 relating to the subject existing in its archives, to permit the cutting of 

 wood, and to furnish laborers at certain rates of wages. In case of non- 

 completion, the works were to revert unconditionaUy to the repubhc. 

 This contract bore date of June 14, 1826, and the contractors at once en- 

 deavored to secure the co-operation of the government of tlie United States. 

 A memorial was presented to Congress and referred to a committee, which* 

 reported in due time, but here the matter stopped, althougli it appears to 

 have received the sanction of De Witt Clinton and other distinguished 

 men. 



Previous to this transaction, however, in 1825, the envoy extraordi- 

 nary from the republic of Central America, in the United States, called the 

 attention of the government to the subject in an official letter, re- 

 questing the co-operation of the United States in preference to any 

 other nation, and proposing, by means of a treaty, effectually to secure 

 its advantages to the two nations." The charge d'affaires of the United 

 States in Central America, Colonel John Williams, was accorditjgiy spe- 

 cially instructed to assure the government of Central America of the deep 

 interest taken by the United States in an undertaking ^^so highly calcula- 

 ted to diffuse a favorable influence on the affairs of mankind," and to in- 

 vestigate witii the greatest care the facilities olfered by tlie route, and to 

 remit the information to the United States. But it appears no nrforma- 

 tion of the character required ever reached the American government. 



The project seems to have been aUowed to slumber Irom tfiis period 

 until October, 1828, when the work was proposed to be undertaken by 

 an association of the Netherlands, under the special patronage of the King 

 of Holland. The idea seems to have originated with General Verreer, 



