THE GHETTOWN and NICARAGUA TRANSIT COMPANY CONTROVERSY. bt S. S. aW O O D, Commission e.k , d W. P. KIRKLAND, Solicitor. WASHINGTON, T>. O., JANUARY, 1859. NEW-YORK: JOHN A. GRAY, PRINTER & STEREOTYPER, 16 & 18 JACOB ST., HE221 ,W?5" tire-pboop buildings. THE GREYTOWN and NICARAGUA TRANSIT COMPANY CONTEO VERS Y. In a pamphlet published by us, containing a narrative of circum¬ stances which transpired at Greytown, or San Juan del Norte, between the years of 1852 and 1854, and charges made against the local gov¬ ernment and inhabitants, resulting in the total destruction of the town, we insinuated that the wrongs committed were attributable to the Accessory Transit Company, and stated that we were in pos¬ session of evidence of the existence of a secret interest which deceived the government at Washington. In charging the Accessory Transit Company as the cause of the de¬ struction of Greytown, we do not extend blame to every individual member thereof. On the contrary, we are aware that several high- mined and honorable gentlemen who were connected with that enter¬ prise, never counseled the evil course pursued by the Company, nor indorsed the position assumed, and false charges made by some of its officials and agents, and who never have justified the destruction of Greytown by Commander Hollins. The advice of such gentlemen as Mr. Charles Morgan and Commodore Vanderbilt did not, however, always prevail against the intriguing Joseph L.White and the unscrupu¬ lous Joseph N. Scott. Upon these two last-named individuals of the Transit Company we charge the entire fraud and malicious scheming, and condemn the acts of Joseph W. Fabens, United States Commercial 4 the greytown controversy. Agent, in countenancing their false pretensions and prostituting his office, by certifying under his official seal to their false charges and mis¬ statements made by them against the local government and inhabit¬ ants of Greytown; without which the United States Government would not upon the mere representation of Joseph L. White and his man Scott, have branded the entire community as pirates, and de¬ stroyed the interests of several hundred unoffending persons. We will proceed to substantiate the charge against the said Transit Company, by narrating the history of their transactions in the premises, and introduce the evidence proving the existence of the secret interest and its object. In the month of March, 1851, a brig laden with coal for the At¬ lantic and Pacific Ship Canal Company, arrived at the port of Grey- town. The Company not being possessed of any ground for storage, applied to the Mosquito authorities for leave to land the coal on the opposite bank of the harbor, then under the Mosquito protectorate, but claimed also by the governments of Costa Rica and Nicaragua. This request was granted, and the_coal landed accordingly. In the month of June immediately following, two other vessels arrived with coal, and two small river steamers, belonging to said Company, and having on board their agent, Captain Abraham Banker, when application was made through T. J. Martin, Esq., to H. B. M. Acting Consul-General to the Mosquito government for a lease of cer¬ tain ground to be occupied as a coal-dépôt. To which the following reply was made : British Consulate, Greytown, 12 June, 1851. Sir : In the absence of H. B. M. Acting Agent and Consul- General, I have to acknowledge the receipt of your letter of this day's date, desiring the use of a certain piece of ground on the opposite side of the harbor, for the purpose of a coal-yard, for the ' C. A. A. and Pacific Ship Canal Company. I have therefore to in¬ form you, that until the land in question may he required for the pur¬ poses of the Mosquito government, I can see no objection to your request ; and the Pacific Canal Company may therefore make use of the lot you have marked out as necessary—200feet from east to west, and 400 feet from north to south—for the said Company, paying rent therefor at the rate of sixpence sterling per month, on the above- named terms. I have further to add, that it is the wish of this govern¬ ment at all times to forward the interests of the said Company. I have the honor to be, etc., Hy. Grant Foote, for H. B. M. Acting Agent and Consul-General. T. J. Martin, Esq., Greytown. THE GREYTOWN CONTROVERSY, 5 Here is then an acknowledgment by the said Company of the au¬ thority of the Mosquito Government. During the fall of the same year, the Company's pioneer steamer Prometheus arrived, and previous to her departure, the Captain of the Port applied on board for payment of the usual port dues, an amount less than fifteen dollars. Payment was refused on the ground that the Company's steamers were exempt from port charges in any of the ports on the line of transit ill the State of Nicaraugua, by vir¬ tue of a charter granted to them by that Government. To this claim of exemption the officer replied, that the port was not under Nicara- guan jurisdiction ; therefore that government could'not grant, nor the Company enjoy, any such exclusive privilege. The commander of the steamer then attempted to proceed to sea, but was arrested in his progress by a blank shot from the British brig Express, com¬ manded by Captain Fade, when, upon payment being made, the steamer was allowed to proceed. This denial of the authority of the Mosquito Government by the, Company when it suited their purpose, was, to say the least, incon¬ sistent with tlieir former recognition of it, when deriving benefits therefrom, but they no doubt thought that they could play this game of fast and loose with impunity, whenever they thought proper. The Company pursued this unwise policy, and enjoyed the small advantages accruing therefrom, whenever they found the port without a war-vessel to enforce the port regulations. But whenever a United States man-of war was in the harbor, the commander, as was the case with Captains Piatt, Gerry, and others, always undertook the collection of the port charges from the Company's steamers, and paid them over to the local authorities. In March, 1852, the Mosquito authorities surrendered to the inhab¬ itants the local government of the Port, reserving jurisdiction over all that part of the Mosquito territory not included within the city limits. This trust the inhabitants accepted, and immediately pro¬ ceeded to discharge by forming a republican constitution, which em¬ braced within its limits the entire north bank of the river San Juan as far as the Machuca Rapids, a distance of about forty-five miles, and the south bank of the said river to its confluence with the Colorado River, a distance of twenty miles, including the harbor and both banks thereof. The limits of the city were certainly very large for so small a pop¬ ulation, but as neither Mosquito nor Costa Rica had any judicial organization or police on the south bank of the river, below the Col¬ orado, or for many miles distant ; nor Nicaragua any such on the 6 THE GREYTOWN CONTROVERSY. north bank of the river below Castillo, á distance of seventy-five miles, it was deemed advisable for the better protection of the citizens, to include within the local jurisdiction all the territory not occupied by the various claimants of sovereignty, which would otherwise have become the resort of desperate characters and a place of refuge for " evil-doers." Aside also from its being a measure of safety to the inhabitants, it would protect the interest of travellers with specie and other valuables to and from California. The local government went into operation on the first day of May, simply as a municipal body, without being committed to the Mosquito flag or any of the various claimants of sovereignty. During the summer months of that year the British mail steamer arrived in port from St. Thomas, with several cases of yellow fever on board, and was quarantined at the lower part of the harbor. This, together with several cases of $mall-pox among the passengers on board the Company's steamers, determined the local government, for the preservation of health, to erect a quarantine hospital on the opposite side of the harbor, and also for other wise and proper rea¬ sons, a light-house and powder-magazine. The government, therefore, informed Thomas Baldwin, Esq., Agent of the Company, of their de¬ termination, and requested him to vacate the premises occupied as a coal-depot in terms of the lease, and that in consideration thereof they would give to the Company in fee simple lands on the other bank of the harbor, to an extent necessary for all the Company's purposes. To this intimation Mr. Baldwin paid no attention, but continued in possession. Pending this matter, Captain McCerren, keeper of a boarding-house, erected a building outside of the first-mentioned lands, leased for a coal-depot, without the consent or authority of the local government, or either of the territorial claimants, and refused to pay the usual lieense as paid by all other hotels and bar-rooms in the town. Mr. Baldwin was cited to appear in court and show cause why the Company should not vacate said premises, and upon the Marshal endeavoring to serve a personal notice upon him, attempted an assault upon the officer, for which he was arrested and bound over to keep the peace. On the day of trial, Mr. Baldwin, with his attorney, appeared in court, and presented no right or claim to the lands in question, but plead that he was instructed by letter from Mr. Ogden, an officer of the Company, to continue in possession, and in no way to respect or acknowledge the local authorities. The Court, therefore, decided that unless the hotel building was removed within ten days, and the sheds, the greytown controversy. 7 .etc., at the coal-depot within thirty days after the date of the verdict, they should be removed by the proper officers. The hotel not being removed accordingly, it was done by the City Marshal in a quiet and orderly manner, and every parcel deposited in the very spot indicated by the Agent. But the day before the other buildings, if such they could be called, were to be removed, the Cyane, sloop-of-war, under command of Commander G. N. Iiollins, entered the harbor, and he, without inquiring into the matter, but merely upon Mr. Baldwin's representations, interposed his forces, and prevented the authorities from carrying out the mandates of the court and the erection of the contemplated buildings. The local authorities then resigned, and Commander Iiollins assumed full control, and for several days found himself very much embarrassed and perplexed by the numerous petty offenses which occurred, and was heartily glad of having an opportunity of resigning his newly-acquired honors into the hands of the former authorities. On the first day of April, 1853, the resuming government informed the civil and naval representatives of the respective governments of Great Britain and the United States of the reorganization of the local government, to which the following replies were made : British Consulate, Greytown, 1st April, 1853. Gentlemen : I have to acknowledge the receipt of a notification of this day's date, signed by the Mayor of this city, by which I am given to understand that a provisional Government has been formed by the citizens for the maintenance of law and order ; also a list of the officers elected to carry it into effect. I have been authorized by the com¬ mander of II. B. M.'s Ship Geyser, to mention his.acknowledgment of the jurisdiction and limits of the aforesaid provisional government, to the same extent and in the same manner as that previously in force. On my own part, and on behalf of the British Government, I also hereby recognize the authority of the provisional government as be¬ fore stated. I have the honor to be, etc., James Green, H. B. M. C. The "Worshipful Mayor and City Council of Greytown. A Letter from, the Mayor to Commander Hollins. Greytown, or San Juan del Norte, April 1st, 1853. To George N. Iiollins, Lsg., Commander of U. S. Ship of War Cyane. Sir : Having understood from Mr. H. L. Stevenson, U. S. Com¬ mercial Agent, that you are ready to receive communications direct, I have the honor to inclose you a copy of resolutions passed by the 8 the gkeyt0wn controversy. citizens of Greytown, or San Jan del Norte, last evening, March 31 r 1853, also a list of the several officers of the provisional government to be organized, and I am desirous of knowing whether the same meets with your approval. I have already communicated the same to H. B. M. Consul General, James Green, Esq., and H. B. M. Commander of the Geyser. I have the honor to be Your obedient servant, T. J. Martin, Mayor-elect. United States Ship Cyane, Off Point Arenas, April 1st, 1853. Sir : I have the honor to acknowledge the receipt of your letter of this date, inclosing the resolutions passed by the citizens of San Juan, on the evening of the 31st March, 1853. I will acknowledge your authority, and the officers named in your letter, as elected by the citizens of San Juan, so far as my instructions will allow me. That there may be no misunderstanding between us, I send you the words of the late Daniel Webster, by which I am guided. 11 Meanwhile a temporary recognition of the existing author¬ ities of the place, sufficient to countenance any well-intended act on its party to preserve the public peace and punish wrong-doers, would not be inconsistent with the policy and honor of the United States." I am pleased to hear you have again formed a government. The persons selected to fill the various offices are their own choice of course. I make no objection to them. I am, sir, very respectfully, etc., (Signed) , Geo. N. Hollins, Commanding U. S. Ship Cyane. To T. J. Martin, Esq., Mayor-elect, San Juan del Norte. Commercial Agency of the United States of America, Port of San Juan del Norte, April 1st, 1853. To the Honorable Mayor and Council of San Juan del Norte : Gentlemen : I have the honor to acknowledge receipt of your communication of this day's date, advising me of the organization of a provisional government for this port and city. It gives me much pleasure to congratulate the citizens upon the reëstablishment of law and order, and at the same time to assure you of my appreciation of the good order and security to persons and property which has been a characteristic of this town during the past twelve months. I have the honor to be, respectfully yours, (Signed) H. L. Stevenson, U. S. Commercial Agent. the greytown controversy. 9 Apart from the previous recognition of the local government, by the governments of Great Britain and the United States in their various dispatches, and accrediting consuls and commercial agents to the local authorities, there are the above recognitions of the entire representatives of said governments at the port of Grey town, and these were fre¬ quently repeated by their calling upon the local authorities to assist them in arresting deserters from merchant vessels, and in granting certificates of health to the Company's Ocean Steamers, to enable them to enter into foreign ports, without being subjected to quaran¬ tine detentions. Matters between the Company and the local government and towns¬ people passed on quietly and without any complaints, until Captain Graffin of the Company's Steamer " Daniel Webster," through disre¬ spect to Mr. W. F. Boone, the U. S. Commercial Agent, in kidnap¬ ping a boy who had been ill-treated by him on his voyage out, and who (the boy) had applied to Mr. Boone for redress, as well as having been guilty of a violation of the United States commercial laws, brought about the following correspondence. This correspondence took place, however, previous to the occurrences connected with the removal of buildings. Regular meeting, August 9th, 1852. V San Juan del Norte, August 7th, 1852. W. F. Boone, Fsq., V. & Commercial Agent: Sir : At a meeting of the City Council last evening, your commu¬ nication in regard to the arrest of one of the crew of the steamer Daniel Webster, and his surrender on board to the captain, was re¬ ceived, and in reply thereto, I have the honor, by the direction of the Council, to inform you— In regard to enforcing our harbor and other regulations of the city, whenever the Atlantic and Pacific Canal Company are interested, we have invariably used every delicacy towards them, even though they have on more than one occasion violated our port regulations, by re¬ fusing to pay the port charges, which, as you well know, are small, and promptly paid by all other vessels of the United States and other countries, and yet when assistance is required, as in this case, applying to the city, in a matter which was entirely within your jurisdiction, and had already been adjudicated upon by you, they have also threatened violence to the Captain of the Port and Health Officer should he ven¬ ture on board their steamer in his official capacity. We have been elected as the Government of this city by the people, while there are different claimants to the sovereignty of the territory, and while the merits of the different claims are undergoing examina¬ tion by the United States and England. Among the claimants of privileges, as well as territory, we find the Atlantio and Pacific Canal Company, who have caused the Council 10 the greytown controversy. much embarrassment by denying the jurisdiction of the city over the harbor whenever their steamers or interests are concerned, and in our present position as a new Government, awaiting a final decision of the different treaties affecting the port, we have always in all matters re¬ lating to said steamers pursued a more conciliatory and friendly course than we would have done to any other parties, as we were de¬ sirous not to commit any act that the United States and England, the guardians of the Canal Company, could complain of, during the pending negotiations. In regard to the matter of complaint which you make, the Council regrets extremely that you should have any cause of complaint against any of the officers of the Government, and assure you that the conduct of the Mayor, in the case alluded to by you, does not meet their ap¬ proval, but on the contrary their decided disapprobation, and will be by them investigated. All matters relating to the vessels and commerce of the United States in the harbor, we are aware, are under your jurisdiction, and we hope you may not again have reason to complain during your residence amongst us, and beg to assure you of the warmest desire we feel to render you all the assistance that lies in our power. I am, etc., Samuel S. Wood, President of City Council. Extra Session, October 27, 1852. Mr. Kirkland offered the following resolution, which it was moved and seconded should be adopted : " That a committee of three be appointed by the President of the Council for the purpose of proposing to the Accessory Transit Compa¬ ny, that if the said, Company desire to place their river steamers in, and make the lagoon in the rear of the city their depot, and continue to do so for a period of years, that the city will donate to said Com¬ pany one hundred feet square, fronting on the harbor, for the purpose of erecting an office and work-shop, and with the privilege of erecting a dock or docks ; and three hundred feet fronting on the lagoon, in the rear of the town, for similar purposes ; and will convey the coal necessary for the use of their river steamers during their continuance to land on said lagoon, free of cbarge."-+Adopted. The following gentlemen were unanimously appointed as the Com¬ mittee : Jos. Y. Perez, W. B. G erring, W. P. Kirkland. Session, Eebruary 7, 1853. Be it enacted by the Common Council in session : Sec. 1. That should the Accessory Transit Company remove their office, work-shops, etc., to this side of the harbor, that they be exempt from all and every description of city tax on the property they have the greytown controversy. 11 or may have in the city and in the river for the use of the said Company, and that the ocean steamers of the said Company, arriving in the harbor, be exempt from port dues, upon the payment of the ordinary pilotage. Sec. 2. Should the said Company establish any hotel, mercantile, or any other business aside from their transit business, that they shall pay the same tax and license that other citizens pay for pursuing simi¬ lar business. That the Secretary of the Council do furnish the Agent of the said Company with a copy of the foregoing sections.— Carried. Special Meeting, February 19th, 1853. The following papers were read respecting the Accessory Transit Company, bearing the under-mentioned dates : November 3d, 1852. To Thomas Baldwin, Bsq., Agent of the Accessory Transit Company : Sir : The undersigned respectfully inform you that at a meeting of the City Council, held on the twenty-seventh ult., they were constituted a committee by that honorable body, for the purpose of making known to you that the city government, viewing the present exposed and dangerous location of the Company's depot on the opposite side of the harbor, and being informed of their desire to remove the same to this side of the harbor, in order to assist you in so doing, have authorized the undersigned to state that the city will donate to said Company a lot of land, one hundred feet square, fronting on the harbor, between St. George and.Palmerston Squares, for the purpose of erecting an office and warehouses for the use of the Company, with the privilège of constructing and extending into the harbor a wharÇ a distance sufficient to enable their ocean steamers to land and occupy the same : also a lot of land three hundred feet square, fronting on the lagoon, in the rear of the city, for the purpose of erecting an office, a warehouse, and work-shop, boat-yard and coal-depot, for their river steamers, from which depot the steamers will depart with freight and passengers on the arrival of the ocean steamers from the United States, and will disembark and discharge their freight and passengers on their arrival from the interior, all of which property shall be exempt from taxation. The city will convey between the depots on the harbor and lagoon all the coals and supplies necessary for the use of the river steamers, free of charge. The city will also agree to forward between the said depots all the merchandise, baggage, and other freight which the Company may have from time to time in transit, at a rate hereafter to be agreed upon. Hoping to receive your earliest attention and reply, we subscribe ourselves Your obedient servants, W. P. Kirkland, (Signed) Wja. B. Gerring, Jos. V. Perez. 12 the greytown controversy. The above propositions do not represent the people and local Gov¬ ernment of Grey town as being very hostile to the Company's in¬ terests. Council Chamber, Gbeytown, or San Juan del Norte, February 19th, 1853. To the Honorable the Secretary of State of the United States ; The Legislative Council of the city of Grey town, or San Juan del Norte, respectfully beg leave to represent to you, and through you to the President of the United States, the following statement in relation to the condition of affairs as they now exist in this city. In March last the Mosquito authorities, then governing at this place, called on the people by a proclamation, issued by James Green, H. B. M. Acting Agent and Consul-General to Mosquito, to form a constitution, elect officers, and enact such laws as they might deem necessary for the future welfare of the city and its inhabitants. In accordance with this proclamation, the people met in convention on the twenty-ninth of March, 1852, and appointed a committee to draft a constitution. The result was, the present constitution, which was unanimously adopted at a general meeting of the citizens held in the said city of Greytqwn, or San Juan del Norte, on the fifth day of April, 1852. A copy of the constitution, together with a copy of the proclamation of James Green, Esq., H. B. M. Agent, etc., was trans¬ mitted to the office of the Secretary of State of the United States by Commander Green, of the United States vessel of war Decatur, then lying in this harbor. . In compliance with the constitution, an election was held on the fifteenth day of April last, and resulted in the election of a Mayor, five members to form a Legislative Council, three Supreme Judges and subordinate officers. The new government came into power on the first day of May, A.D. 1852, and on that day the Mosquito authorities surrendered their power and authority to the officers elected under their new con¬ stitution, and retired from office. Since that period the government thus chosen by the people have been in power, have enacted such laws as they deemed necessary for the welfare of the city, and exercised all the rights and privileges usually exercised by a free and independent State, and have thus far been successful in preserving order, and affording protection to person and property. They beg leave further to state that they consider the government fully able to maintain its present position, all that is necessary being the approval of the respective governments of the United States and Great Britain. Every facility and encouragement in the power of this government is offered to the commerce of all nations, Grey town, or San Juan del Norte, being declared a free port forever, subject only to light harbor dues and pilotage. The present inhabitants residing here found the place a small col¬ lection of huts ; by enterprise and industry they have transformed it into a flourishing city. the greytown controversy. 13 The authorities have been formally acknowledged by the govern¬ ment of Great Britain, and the letter of Vice-Admiral Sir George Seymour (a copy of which is herewith transmitted) will show that his government deems it no longer necessary to maintain ships of war on this station, thereby virtually confirming in the hands of, and acknowledging the ability of this government to maintain its laws, and all the powers heretofore possessed by the Mosquito authorities in full sovereignty. The people of this city look with confidence for a similar recogni¬ tion on the part of the United States, and would view with deep con¬ cern any treaty in relation to the territory which they now occupy, to which they are not made a party or their interests fully considered. A copy of the answer of the Council to the letter of Admiral Sey¬ mour is also herewith transmitted. Respectfully submitted by order of the Council. Samuel S. Wood, Robert D. Lees, President of the Council. Secretary of Council. Moved by Mr. W. B. Gerring, and seconded by Mr. Mooney, that the above documents be forwarded to the Secretary of the United States at Washington, and that his honor the Mayor transmit them to the United States Commercial Agent, to forward to his Government. Carried. ' . I do hereby certify that the foregoing are as they purport to be, true and exact extracts made by me from the original minute-book in my possession, by virtue of my office. [seal.] Frs. Salter, City Clerk. Grey town, or San Juan del Norte, 13 November, 1853. The reappointment of Captain Abraham Banker as the Company's Agent at the port of Greytown restored peace and quiet, which was not again broken until he was superseded by the tyrannical and re¬ fractory Joseph N. Scott, who, by attempting to block up several channels of the river, disturbed the harmony. Nothing transpired of a very serious nature until March, 1854, when Mr. Joseph L. White, dressed in coarse garb and slouched hat, and loaded with unconcealed weapons, arrived in town, and submitted the following propositions to the consideration of the townspeople : Whereas differences have existed and still exist between those claiming and exercising authority in San Juan del Norte, or Grey- town, and the Accessory Transit Company ; now, therefore, with the 14 the greyt0wn controversy. view to settle such differences, and as indemnity for the past injuries which the said Company claim, to have suffered from those heretofore- , exercising authority, and as security against all future differences, the following propositions are submitted as the basis of an agreement or convention to be entered into between the said parties : 1. The title of the Company to the ground occupied by them on Puenta Arenas, opposite the town of San Juan del Norte, or Grey- town, to be fully recognized and confirmed in them. . 2. The Company to have, by proper deeds of conveyance in fee simple all the ground fronting on the bay and on the lagoon in the rear of the town, which they may require for storehouses, wharves, workshops, and all other purposes necessarily connected with their business. 3. The Company to be forever exempt from all taxes, or duties, or charges of any name, kind, or nature, so far as those claiming or to claim authority in the corporation of San Juan del Norte, or Grey- town, are or may be connected. 4. All the rights of the Company, as accrued. to them by their charter and amendment and act of incorporation, to be fully recog¬ nized, and confirmed and binding on the existing authorities of aforesaid town and their successors. 5. These claiming authority in said town and their successors shall build and preserve a pier, running from the water's edge in said town a sufficient distance into the bay for the ocean steamers of the Company to land at, and they shall give to the said Company, by a proper instrument in writing, the free and uninterrupted use thereof. 6. In consideration of the above, the Company shall construct on the ground so as aforesaid to be given to them, all their necessary buildings for the conducting of their business, and shall land at said wharf or pier all passengers conveyed by their steamers between the Atlantic and Pacific ports, but said passengers shall be subjected to no taxes or other charges by said town, 7. The Company, not wishing to forfeit the protection of their own Government, are not to be considered, in assenting to either or all of these propositions, as in any wise recognizing or admitting the author¬ ity or sovereignty claimed by or for the Mosquito Kingdom, or in any wise denying the authority or sovereignty of the State of Nica¬ ragua over the territory of San Juan del Norte, or Grey town. 8. The Company to have the right to use the ground now occupied by them at Puenta Arenas, for all purposes of business connected with their enterprise, which can not be so well done in the town. If the above in substance shall be submitted to me, it will be favor¬ ably considered. The Company have, of course, no proposition to make, since to protect what they conceived to be their rights, they have been driven to seek the interposition of their own Government, which was promptly and efficiently made, and upon that protection they are well assured they can at all times rely. Very respectfully, J, L. White, Agent for A. T. Company, the gkeytown controversy. 15 I certify the above to be a true copy of the original, in my posses¬ sion, as Secretary of the Council. [seal.] (Signed) Frs. Salter, Clerk. Reply of the Local Government A communication signed, by Joseph L. White, Esq., Agent of the Accessory Transit Company, proposing the basis of an arrangement between the city of Greytown, or San Juan del Norte, and the Ac¬ cessory Transit Company, was this day presented to the members of the City Council : The people of this city are anxious to cultivate the most friendly relations with the Accessory Transit Company of Nicaragua, and be¬ lieving the interests of both to be identical at this point, are willing to concede and grant any and all favors within their power, constitu¬ tionally, and to renew the propositions heretofore made to the Agents of the Company. 1. In answer to the first proposition of said Company, the city will agree to grant to the Company the lands now occupied by them on the opposite or north side of the harbor, for the purposes of a coal- depot. 2. The city will farther agree to convey to the Company a portion of ground (the quantity to be hereafter agreed on) fronting on the harbor, and also a portion of ground fronting on a lagoon in the rear of the city, for the purpose of erecting thereon dwellings, work¬ shops, and for embarking and disembarking passengers. 3. The Company to be exempt from taxes on steamers, buildings, and all necessaries connected with their legitimate operations. The sea-steamers to be subject only to pilot and boarding officers' fees. 4. The free navigation of the river San Juan within the limits of the city to be fully guaranteed without reference to any charter agreement or any act of incorporation which the Company may hold from or have with the State of Nicaragua, with which this city does not consider itself in any manner identified. 5. Owing to the limited resources of the city, the proposition for building a wharf can not be at present entertained. It is, however, the wish of the Council, as soon as circumstances will permit, to ren¬ der any facility and aid in their power for the construction of said wharf. 6. In consideration of the foregoing privileges, the Company is to erect their dwellings, offices, and work-shops on the lands granted by the city on the harbor and lagoon, and will land thereat their pas¬ sengers between the Atlantic and Pacific ports, said passengers pass¬ ing through the town, and to be free from all taxes. 7. Article 7th relates to a question of sovereignty. The Council can not consistently at this time enter into any question affecting the sovereignty or territory. By order of the Council. F. Salter, Secretary. 16 the greytown controversy. I certify the above to be a true copy of the document sent to Mr. White in answer to the propositions in his communication to the Council. [seal.] (Signed) F. Salter, Secretary. Mr. White's Reply to the Authorities. Steamship Northern Light, 14 March, 1854. Gentlemen : I have received your letter of this date, stating that you are ready to enter into a convention with me on the basis agreed upon by the propositions which were submitted to me yesterday. Nothing remains, then, but the official signature of the Govern¬ ment, that of myself as the Counsel and General Agent of the Com¬ pany. When the proposition agreed to yesterday shall be properly signed by you, I shall be ready to sign on behalf of my Company. Yours, respectfully, J. L. White. To F. Mancho and others, Council. Reply of the Authorities to Mr. White. Greytown, or San Juan del Norte, 14th March, 1854. Joseph L. White, Esq., Agent of the Accessory Transit Comp'y : Sir : In reply to your letter of this date, we herewith inclose for your perusal, the draft of the Convention to be entered into by the Corporation of this city and the Accessory Transit Company. You will perceive that it is based upon the principles which were submit¬ ted to you yesterday. You will please instruct the Commissioners respecting the quantity and location of the land required for the Company's use, so that the proper measures may be taken to furnish the titles requisite for the same. The Commissioners are desirous of knowing whether the matter can be adjusted with you personally, and when and where. Very respectfully, Felix Mancho, Chairman of Commissioners. Mr. White''s Verbal Reply. Greytown, or San Juan del Norte, 14th March, 1854. To the Honorable the City Council of the City above mentioned : The undersigned Commissioners appointed by your Honorable Body by your Resolution of the thirteenth inst., in order to enter into the necessary arrangements with the Agent or Agents of the Acces¬ sory Transit Company respecting their removal to this side of the harbor, have the honor to report that, pursuant to the same, your Commissioners informed J. L. White, who represents himself to be the Agent of the aforesaid Company, of their appointment, signifying to him their readiness to make the necessary arrangements. With the greytown controversy. 17 that object the draft of the Convention hereunto annexed, marked A, was furnished to said White, with letter marked B. The reply to the same was of the ' most insulting nature ; and among some of the expressions used by the said White, were to the effect : "Tell them to go to hell, the whole of them? The Commissioners have taken the liberty to remark that the re¬ ply to their first communication notifying the said White of their appointment, is confirmed in document N C. All of which is re¬ spectfully submitted to your Honorable Body. (Signed) J. W. Carle, J. Mesnier, Felix Mancho, J. B. Lyons. Can any one see any material alteration in the propositions of Mr. White and those submitted by the local government, or any reason he had to make use of the expression : " Tell them all to go to hell, the whole of them /" Before Mr. White left the port, he gave written instructions to his agent and captains, not to permit any citizen of the town to travel upon any of the Company's ocean, river, or lake steamers, or to con¬ vey freight, letters, or any other article for them, and expressed his determination to make them "bite the dust," and starve them out. The merchants of New-York and New-Orleans are thus indebted to Mr. White for cutting off their trade, and preventing the merchants of Greytown from remitting funds in payment of their accounts in the various commercial cities of this country ; and families were also prevented from receiving visits and hearing from friends residing at Greytown for commercial purposes. Orders, destined for New-Fork and New-Orleans, were transferred to merchants at St. Thomas and Jamaica, thus substituting these two foreign ports for the usual Ame-s rican commercial marts. Very commendable indeed in Mr. White ! ! His indefatigable exertions extended American commerce and influence with a vengeance. Mr. White's vindictive and unwise course of procedure, can be accounted for by his failure to make the government of Nicaragua receive from his Company the sum of thirty thousand dollars in place of eighty thousand dollars, alleged to be due them by the Company ; and the refusal of the local government to seal and deliver over to him a title to as much land as his Company required, without any mention of quantity, or fixing definite limits to the same. Besides, the inhabitants had committed another heinous sin in his eyes—two of their number having obtained a charter from thes government of Costa Rica for the establishment of a rival Transit Company to navi* 2 18 THE GREYTOWN CONTROVERSY. gate the San Juan river and Lake Nicaragua, thence across her terri¬ tory to the Bay of Salinas, on the Pacific. Both the Company, and Mr. J. W. Fabens, United States Com¬ mercial Agent, continued to deny the authority of the local govern- ment—notwithstanding the Hon. Daniel Webster7» dispatches and instructions ; the written recognition of Commander Hollins of the United States Navy, and Mr. H. L. Stevenson, United States Commercial Agent, as well as Mr. Fahens7 own credentials to the local authorities, besides the formal acknowledgments by the naval and civil representatives of Great Britain, and a similar acknowledg¬ ment on the part of the Hanseatic Towns, to the contrary. The reader will naturally inquire why the United States Com¬ mercial Agent, Mr. Fabens, adhered to the wicked policy of the Com¬ pany. The following statement, made by him to Mr. W. B. Gerring, lately a resident of the city of New-York, in a proposal to unite with him in commercial pursuits at Greytown, will explain his reasons for so doing. Mr. Fabens stated : " I met Mr. Ogden, Vice-President of the Transit Company, who solicited me to accept the appointment of United States Commercial Agent at Greytown, which I declined, on the ground, that the compensation was too small. To which Mr. Ogden replied, that the pay should be no obstacle—that the Company desired the removal of Mr. PI. L, Stevenson from the agencyj and had determined to do so, as soon as they could select a proper person for the office. • He then, said, if I (Fabens) would accept, that the Company would purchase their supplies from me, and contract to transport on board of their steamers all goods or other freight I may, from, time to time, have, to the exclusion of all other shippers, and in case the fees of the office of Commercial Agent fell below two thou¬ sand dollars per annum, the Company would pay the deficiency, and upon these terms I aecepted the appointment." The above conversation in substance was told to W. P. Kirkland by Mr, Gerring, who was advising with him as to the propriety of forming a business connection with Mr. Fabens. Mr. Gerring's ve¬ racity is above impeachment, and will be vouched for by all who know him.. The tyrannical conduct of Mr. Scott, in attempting to turn the river out of its proper channel, to the detriment of the town and harbor, and his threats and resistance of the Marshal, when attempt¬ ing to arrest Sloman for an assault on Heid, and a similar attempt on McGrath, was not calculated, to produce good feeling between the Company and townspeople, while his own arrest, for a breach of the peace, furnished a pretext to make the following protest : the grevtown controversy. 19 Commercial Agency, United States America, San Juan del Norte, Nicaragua. By this public instrument of protest, be it known unto all men, that on the twelfth day of May, 1854, personally appeared Joseph N. Scott, Agent of the Accessory Transit Company of Nicaragua, who being duly sworn, did solemnly depose and say : That on the evening of Friday, fifth inst., at or about the hour of 11 P.M., William Creighton, mate of the steamer II. L. Bulwer, being at that time at the said Company's Station, at Point Arenas, did observe four men in the act of loading a yawl-boat, belonging to the said Company, with merchandise ; and suspecting something wrong, in consequence of the lateness of the hour, did thereupon notify the deponent of the fact. The said Creighton recognized the aforesaid men as Robert Reid, J. Magraw, and two others, names unknown, but at the time, or pre¬ viously, employes of the Company. The deponent immediately proceeded to the spot, but the boat was at some distance from the beach at the time of his arrival. He hailed the boat, calling upon the man Reid by name, to come back. The parties in the boat made no reply, although they were within easy hailing distance ; and their voices were heard from the shore apparently exhorting one another to push on. He, the deponent, finding that no attention was paid by the men in the boat to his command, at once dispatched a second boat, manned by William Creighton, Robert Bullis, and William Sloman, all employés of said Transit Company, in pursuit. The boat that first left the said Point Arenas, shaped her course for the city of San Juan del Norte; and arriving there before the second boat, a portion of the men succeeded in leaving her before the pursuer's reached the spot. One man, the aforesaid Reid, was found in the boat, and while resisting the attempts of the aforesaid Sloman to secure him, he was struck upon the head by said Sloman. The said Sloman, after knock¬ ing the man Reid into the water, attempted to shove the boat off shore, and while in the act of so doing, the soldiers from the Station-House threatened to fire on him. Thus compelled, the said Sloman returned to the shore with the boat. In the mean time the men who had es¬ caped from the first boat, took refuge in the Station-House. He, the deponent, doth farther solemnly depose and say, that the said yawl- boat above described, together with the merchandise therein, consist¬ ing of flour, corn-meal, etc., was the property of the aforesaid Transit Company, and was stolen from the said Company as above described, and that it was in the attempt to recover said property, and secure the persons of the offenders, that the above-specified difficulty occurred. Soon after the occurrence last described above, Mr. Hutchinson, Clerk of the aforesaid Transit Company, acting under the orders of the de¬ ponent, accompanied by three men, arrived on the spot, and finding the stolen boat on the beach, jumped into her, with his (the said Hutchinson's) men. The said Hutchinson then attempted to shove off the boat, and was ordered by a policeman, with a musket, to stop ; 20 THE GREYTOWN CONTROVERSY, but no attention being paid to this order, the man dropped his musket, and called on the crowd to assist him in taking possession of the boat, which, being the strongest party, they succeeded in doing. The said Hutchinson then seeing F. Deizmann, Captain of the Port of San Juan del Norte, called upon him, the said Deizmann, to deliver over to him, the said Hutchinson, the aforesaid boat, agreeing at the same time to leave in his, the said Deizmann's charge, the merchandise therein, until the following morning, that it might then be identified, with the express understanding that the property was not to be in any other way disposed of, until said examination was made. The said Plutchinson, together with the aforesaid Sloman, Bullis, and Creighton, having the three boats in charge, then left the Port of San Juan del Norte, aforesaid, on their return to Point Arenas. On the following morning, fifth inst., the said Hutchinson returned to San Juan with the said Creighton, to identify the aforesaid property, in accordance with the agreement made with the said Deizmann, as above described. lie, the said Deizmann, had not the property in charge, but said he handed it over to the charge of the Marshal. The said Hutchinson then accompanied the said Marshal to a house, in the open yard of which were some articles which he, the said Marshal, asserted were the goods in question. The said Hutchinson finding the agree¬ ment made between himself and the said Deizmann, above described, had been violated, and seeing that the flour and other articles taken by the aforesaid Reid, Magraw, and associates, were missing, and that the wife of the said Magraw was apparently in charge of the goods, declined making any examination of the same, and left, on his return to the Point aforesaid. On the same morning, sixth inst., A. Sigaud, Mayor of San Juan del Norte, issued a warrant for the arrest of the aforesaid Wm. Sloman, charged with assault and battery upon the person of the aforesaid Robert Reid, which was received by the said Sloman from the hands of the Marshal. The said Sloman being in the employ of the aforesaid Transit Company, requested to communicate with the deponent, Agent as aforesaid, under whose orders he had acted. The said Marshal then accompanied the said Sloman to the office of the deponent, and the deponent replied to the demand of the said Mar¬ shal, that according to the views of the Company which he represent¬ ed, the authorities of San Juan del Norte, had no authority or juris¬ diction over the territory known as Point Arenas, and that he should not permit the arrest of the said Sloman by them, except it was effected by force, and under protest ; upon which the said Marshal departed. On the afternoon of the same day the said Marshal re¬ turned, accompanied by an armed force, when the deponent permitted the taking of the said Sloman, protesting verbally against the act at the time, and notifying the said Marshal of his determination to send in likewise his written protest to the authorities of San Juan del Norte, at his earliest convenience. Now, therefore, the deponent, for and on behalf of the aforesaid Transit Company of Nicaragua, doth hereby publicly and solemnly protest against the authorities of San Juan del Norte and their proceedings as above described, in the as¬ sistance rendered by them in harboring the aforesaid Reid, Magraw, the greytown controversy. 21 and associates, to the great detriment of the Transit Company afore¬ said, and in sending an armed force to the territory known as Point Arenas, in Nicaragua, now occupied by the said Transit Company by virtue of their Charter from Nicaragua, as a gross and unjustifiable outrage upon the property, as well as the rights and privileges of the said Transit Company, and will hold them, the authorities aforesaid, responsible, for all losses, damages, and charges, and interests which are or may be occasioned by the same. (Signed) Joseph N. Scott, Agent. Sworn to and subscribed before me on the day and year first above written. (Signed) Joseph W. Fabens, U. S. Commercial Agent. What truth there is in the charge of McGrath's having stolen a boat from the Company, together with meal, flour, etc., etc., and the same being received by the local government, will appear upon perusal of the following certificate : Greytown, or San Juan del Norte, June 28th, 1854. We, the undersigned, declare that the things found in the boat be¬ longing to the Accessory Transit Company, on the night of the fifth of May last, when it was examined by Mr. Hutchinson, the Company's Clerk, consisted of nothing more than wearing apparel, and that there was no meal, flour, rice, or any other thing supposed to be belonging to the said Company. (Signed) Thomas S. Codd, John I. McClean, bis Robert M Reíd. mark. Should the foregoing certificate be insufficient to establish the falsity of the charge, the reader can form his own estimate of the losses sus¬ tained, by taking into consideration the probability of a yawl-boat carrying meal, flour, etc., etc. to an amount equal to sixteen thousand dollars ; that being the sum claimed by Mr. Scott from the local government, through Mr. Fabens, U. S. Commercial Agent, as will be seen from the following document : i To those noto or lately pretending to and exercising authority in and to the people of San Juan del Norte. Commercial Agency, United States of America. San Juan del Norte, Nicaragua, July 11th, 1854. Gentlemen : On the 24th ultimo, in accordance with instruc¬ tions of the Government of the United States of America, I notified 22 the greytown controversy. you that the said Government would require of you immediate repara¬ tion for the property belonging to the Accessory Transit Company, which was stolen from the said Company, and received by you, as specified in my letter of that date, as well as for all damages suffered by their agents and employes while endeavoring to re-possess them¬ selves of the same. I have now, acting in concert with Commander Ilollins, of the United States ship Cyane, at present in this harbor, to demand of you immediate payment of the sum of sixteen thousand dollars, which has been adjudged to be the proper sum for you to pay for the said property and the gross outrages perpetrated by you upon the persons of American citizens, as set forth in protests of Mr. Scott of the 12th of May last, copies of which have already been served upon you. There is likewise a claim of the Accessory Transit Company vs. the acting authorities of San Juan del Norte, for the sum of eight thousand dollars, as specified in my letter to you of the 24th ultimo. This you will be likewise expected to pay forthwith. For the indignity offered to the United States of America, in the conduct of the authorities and people of this town towards their Min¬ ister, Mr. Borland, while recently in this place, nothing short of an apology promptly made, and satisfactory assurances given to Com¬ mander Hollins of future good behavior on the part of the said authori¬ ties and people towards the United States and her public functionaries who may be in future here, will save the place from the infliction which its late acts justly merit. Your obedient servant, Joseph W. Tabens, United States Commercial Agent Mr. Fabens must have known the charge of theft to have been false. He knew that the yawl-boat was loaned McGrath as he stated, by one of Mr. Scott's overseers, without Scott's knowledge ; and he also knew the impossibility of taking any considerable quantity of meal, flour, etc. from the Company's warehouse. Where was Mr. Scott when this enormous theft was committed 1 He declares in his pro¬ test that the theft was at eleven o'clock at night, and that when he first saw the boat, it was only within hailing distance, yet, although he did not follow and see the contents landed, at a distance of one mile and three quarters from where he was, he proceeded next day to the office of the Commercial Agency, and there swore that they consisted of " flour, corn-meal, eta," belonging to the Company. How remark¬ ably clear-sighted he must have been at that hour of the night ! ! ! Mr. Fabens very well knew that no violence had been offered to any of the Company's agents and employés, and that the binding of the offenders to keep the peace were meritorious acts on the part of the local gov¬ ernment, and should be so regarded. The only fault on the part of the government is, that they did not punish Scott and Sloman as they the greytown controversy. i 23 deserved. Better men than either of them would break the peacé for a far less sum than sixteen thousand dollars, as claimed for the flour» etc., and damages for the arrest of the peace-breakers. The demand of eight thousand dollars, Mr. Tabens also knew to be unjust. He was aware that the Company's property had never suf¬ fered damage or mutilation at the hands of the local government, or any of the townspeople, and that the house removed by the author¬ ities, was not the property of the Company, but belonged to Captain McCerren, and which, when nèw, was valued by its previous owner at seven hundred dollars. Unfortunately for Mr. Scott, the records of the U. S. Commercial Agency contain the evidence of his false swearing, which he now de¬ sires to place upon the shoulders of Consul Fab ens, as the following document and certificate will prove. The document was drawn up for Mr. Scott's signature, as he had previously expressed such senti¬ ments, but on application being made to him to do so, he declined, on the ground that it might compromise him with the Transit Company. But we will again refer to Mr. Scott : San Juan del Norte, October, 1858. Dear Sir î Understanding, that a Commissioner or Commis¬ sioners will proceed to Washington next month for the purpose of laying before the Congress of the United States a memorial in regard to the destruction of Grey town in July, 1854, and as my name has been made use of by Mr. J. W. Fabens, the late Commercial Agent at San Juan del Norte, in a manner entirely beyond my wish or in¬ tentions, I hereby declare— That Mr. Fabens never consulted me in regard to the indemnity claimed of the people of Grey town. That I never told or said to Mr. Fabens that I could not take less than twenty-four thousand dol¬ lars. I, in fact, knew nothing about the amount claimed or demanded, except that J. L. ~White and Mr, Fabens arranged it. I also wish to declare, in the matter of the load of corn-meal, etc., taken by one McGraw, or any other person who was interested, to have taken the property from Punta Arenas, it was entirely mis¬ represented. The Company did not lose four dollars in the trans¬ action. I also declare that I knew nothing of the intention of Captain Ilollins to ruin and destroy the city by fire, and was as much sur¬ prised as any one when I saw it. And I farther declare, that I think the people of Greytown were most unjustly punished, when,, after being bombarded for hours, that Captain Hollins should have ordered the destruction of the entire city by fire, and that it was not niy wish or desire to have it done, or see it done. To Felix Mancho, Esq., President of the Greytown Commission. 24 the greytown controversy. I, the undersigned, hereby certify that I have read the above state¬ ment to Mr. Joseph N. Scott, in person, and in the hearing of other parties. That Mr. Scott said he would sign it, as it was correct, and that the statement therein contained were true, as regards himself. And I also know that Mr. Scott has repeatedly told other persons the same story, as Captain Chatard, of the United States Navy, Captain Erskine, of H. B. M. service, and others can testify. (Signed) T. J. Martin. Grey town, Nov. lltli, 1858. City and County of New-Yore, ss. Alexander M. C. "Wood, of said city, being duly sworn, says : ■That he was present on the beach at San J uan, or Grey town, upon the occasion referred to in the protest of " Joseph N. Scott," Agent of the Accessory Transit Company, dated May 12th, 1854. That he saw Sloman, Creighton, Bullis, and Hutchinson, and McGrath and Heid, referred to in same ; also saw the boat," alleged to have been stolen, but did not see any flour, sugar, or other stores, and does not believe that there was any thing of the kind, or any other article stolen from Punta Arenas on said occasion, by the said McGraith or Iieid. Further, that the undersigned has been repeatedly informed, by " Charles Mahoney," the then foreman of the said Company, hav¬ ing charge, etc., that he gave permission to the said " McGrath" to take the said boat—alleged to have been stolen—as the canoe in which he had first started had overset by some means unknown to deponent. Further, that the undersigned believes there never was, at any one time,-on Punta Arenas, the property of the Accessory Transit Com¬ pany, provisions and stores, to the value of five thousand dollars. And further, that "Joseph N. Scott," Agent, etc.,was not present upon the occasion referred to, but was across the harbor, at least one and three quarter miles, or thereabouts, distant from the place of occurrence. A. M. C. Wood. Sworn to before me, this eighth day of January, 1859. Geo. W. Morell, U. S. Commissioner, Southern District of New-York. City and County of New-York, ss. "Samuel S. Wood," a citizen of New-York, being sworn, says: That in the year 1S52 a local municipal government was established in the city of Greytown, or San J uan del Norte, for the protection of its inhabitants in trade and commerce, and to punish crime, and at that election the entire employés of the " Accessory Transit Com¬ pany," who were building river steamers at " Punta Arenas," came across the harbor to said town to vote at this first election, declaring they came over to vote for and to elect American citizens for the offices of said government, who would favor the Company aforesaid, the greytown controversy. 25 deponent says that he was elected, together with other American citizens, being a majority of said government, and by the votes of the employes of said Company. We had, all of us, a national pride, and good feeling towards the said Company, and done every thing in our power to pass laws for their benefit, exempting their property from taxation, and offering them lands to build their houses upon, and other benefits, as the land upon which their buildings were located on Punta Arenas, was fast washing away. That large sums of money were loaned by deponent, and other merchants, to their agents, to enable them to carry on said Company's work, when they were poor and in want of money. That their agents have sued, and been sued, before the courts of said government, which was established by their aid. Deponent further says, that he is informed, and believes to be true, that after said election, that Joseph L. "White, Solon Borland, and others, were endeavoring to negotiate the sale of stocks, predicated upon lands derived from the " Mosquito King," an extent of over two hundred miles of sea-coast. A few months after this, said Com- pany became bitterly hostile towards the said authorities, which they had assisted to establish. After this Company had become strong, and fairly established, they refused to transport merchandise and letters, and citizens of said town, to and from the " United States." Some of the directors, and their agents, grossly misrepresented the citizens of said city of Greytown, to the government of the " United States." And that "Joseph L. White," soon after the destruction of said city, informed the deponent, in the city of New-York, that he had warned the citizens of the said city of Greytown, in the month of March, (previous to the occurrences for which sixteen thousand dollars indemnity was demanded,) during his visit to Nicaragua, " that in ninety days he would have a man-of-war down there, and blow them all to hell." Deponent further says, he verily believes that the said Company wanted to drive the inhabitants from said city, calling them the most opprobrious names, and misrepresenting the entire commu¬ nity thereof to the government of the United States, through their agents, Joseph N. Scott, and Joseph L. White, also Solon Borland, the American Minister to Nicaragua, and Joseph W. Tabens, the United States Commercial Agent of Greytown, for the purpose of influencing the government of the " United States " to aid them in their designs ; and further this deponent saith not. Samuel S. Wood. Sworn before me, this eighth day of January, 1859. Geo W. Morell, U. S. Commissioner, Southern District of New-York. a The foregoing certificates, made upon oath, by highly respectable gentlemen, and the confession made by the said Joseph N. Scott, in presence of Captain Chatard and Dr. Kellogg, of the U. S. sloop-of-war Saratoga, and Captain Erskine, of the British Navy, prove beyond all doubt that the charges made by the said Joseph L. White and his man Scott and the ductile Joseph AV. Tabens against the local govern- 26 the greytown controversy. ment and inhabitants of Grey town, were maliciously false ; and upon the heads of the trio " Joseph" rest the sufferings and present distress of that unoffending community, and the mortification of almost every citizen of the United States, in having the government deceived into the commission of an act, so unjust and distressing in its results, which has entailed shame and reproach upon the entire body politic of the country. During the month of November following the destruction of the town by Commander Hollins, the following communication was re¬ ceived by the residents of Greytown from Mr. C. Cushing, Agent for the Transit Company at Virgin Bay, and which he afterwards desired to get possession of. The hand-writing can be established in this city and New-York, namely : To the People of San Juan del Norte, or Greytown : Respectfully : I am authorized to say that the Accessory Transit, Company of Nicaragua will remove its establishment from Punta Arenas to San Juan del Norte, or Greytown, and there carry on its business and operations, provided it can do so upon terms mutually satisfactory to the people of the town and to the Company. But it is desirable and important to know as soon as practicable, whether such terms can be agreed on. For that purpose I am ready to negotiate and treat with such suitable person or persons as may be designated and authorized by the people to negotiate with me. Very respectfully, etc., C. Cushing, Agent of the Accessory Transit Company. Punta Arenas, Nov. 28Ik, 1854. And the followiug are the term3 submitted by Mr. Cushing, Agent, etc. : " Memorandum of the terms and conditions on which the Accessory Transit Company of Nicaragua will remove their establishment and operations from Punta Arenas to the city of San Juan del Norte, or Greytown. The people of the city to grant, or cause to be granted, to the Company what lands it may require for the purpose of constructing docks, piers, houses, work-shops, etc., and for its business purposes generally. The quantity of lands to be specified in the agreement. Such land and all other property, rights, moneys, and effects of the Company to be exempt from taxation of every kind, and the Com¬ pany to enjoy without molestation or hindrance all the rights, privi¬ leges, and immunities which are guaranteed to it by its charter. The Government to be renewed by the election and installation of officers satisfactory to the Company as well as to the people. And all vacancies that taay occur within the term of one year, to be filled in liJce manner. THE GREYTOWN CONTROVERSY. 27 On compliance with the above terms, or satisfactory assurance that they will be complied with, The Company will without any unnecessary delay remove its es¬ tablishment to the city, and there carry on its business and operations, and recognize the sovereignty of the city and people, without recog¬ nizing the Mosquito King. The above terms to be reduced to form, and agreed to by the par¬ ties through the medium of Commissioners on the part of the city, and C. Cushing, Esq., Agent, on the part of the Company, subject to ratification." So it would appear from the above, that the Company desired an influence in the Government, in addition to the right of the elective franchise, which many of their employés exercised under the local government. We will now offer in evidence of the existence of a secret intereèt of several of the members of the Accessory Transit Company, and the conspiracy of Jos. L. White and others, to deceive the heads of the Government at Washington. The history of the secret interest which actuated the prime movers in this outrage, is as follows : ' During the year 1853, Mr. Joseph L. White, and several of the proprietors of the Accessory Transit Company, became interested in the famous " Mosquito King Land Grant" made to Messrs. Shepherd and Haley in 1838 ; for the purpose of colonizing the Mosquito Coast, and forming the same into a political organization. To enable the Association to dispose of their stook, an agent, Judge Brice, of Louisiana, was sent to Greytown to procure from the in¬ habitants a recognition of the said " Mosquito Grant," by their pur¬ chasing from the Company, lands which they already occupied by virtue of titles derived from other sources. The Company's Agent offered them these lands at their own price or valuation, for which they. were to give notes payable within twelve months, with interest at the rate of six per cent ; and in the event of the Company, upon the maturity of the notes, not being in a position to grant a perfect title to the lands thus sold, the payment of the principal and interest was to be deferred until the title could be perfected ; which they alleged could be accomplished by the introduction of emigrants from the United States, and the formation of a government over the entire country, whose courts would be the proper tribunal to determine the title of said grant; and which would most unquestionably confirm the same, as the government, court, and people would have an equal inrerest therein. As the colonization of the country was very much 23 the greytown controversy. desired by the community of Greytown, a few of its citizens gave their notes, and received the Company's title to the lands they occu¬ pied ; thus giving an importance to the grant in the eyes of strangers who would be influenced by seeing the early occupants of the land in question, thus respecting the Company's title. The facts of the existence of said grant and Mr. White's connection therewith, are familiar to the general reader ; as they were frequently commented upon by several of the most prominent journals in this country j and also formed the subject matter of official correspondence by Minister Molina of the Republic of Costa Rica, and Minister Marcoleta of the State of Nicaragua, to the Hon. W. L. Marcy, late Secretary of State, protesting against the Mosquito Grant, and the attempt of the Company to colonize the said lands claimed by their respective governments ; as well as by a correspondence on the same subject between the Nicaraguan minister and Mr. Lord, Vice-President of the Accessory Transit Company, in which correspondence Mr. Lord, in reply to Minister Marcoleta's letter, dated December 11th, 1854, makes the following mention of Mr. White's connection with the said " Mosquito Grant "Mr. Morgan, our President, was at one time a Director of said Land Company, but resigned and withdrew from it some time since. J. L. White, Esq., our counsel, was also a Director." The following letter addressed to Joseph W. Eabens, U. S. Com¬ mercial Agent, after the destruction of Greytown, came into the hands of Col. Kinney and published by him ; and it has since been offered by Mr. Eabens as evidence of Mr. White's conspiracy to destroy Greytown. The only reason which can be assigned for his so doing, being because, the people and government of Greytown would not acknowledge his pretensions, and surrender to him and his Company the government of the port. He therefore desired their removal, and planned and effected their destruction; but many of them, though destroyed, would not vacate, and were sufficiently strong in numbers to defeat his subsequent attempt, made through Mr. C. Cushing, to control the government of the place. ) N. Y. and California S. S. Line, via Nicaragua, No. 5 Bowling Green, New-York, June 16th, 1854. Dear Sir : Captain Hollins leaves here next Monday. You will see from his instructions that much discretion is given to you, and it is to be hoped that it will not be so exercised as to show any mercy to the town or people. If the scoundrels are soundly punished, we can take possession and build it up as a business place, put in our own the greytown controversy. 29 officers, and transfer the jurisdiction, and you know the rest. It is of the last importance that the people of the town should be taught to fear us. Punishment will teach them, after which you must agree with them as to the organization of a new government, and the offi¬ cers of it. Every thing now depends on you and Hollins. The latter is all right. He fully understands the outrage, and will not hesitate in enforcing reparation. I hope to hear from you that all is right. Yours, etc., J. L. White. James W. Fabens, Esq., San Juan del Norte. Extract from Mr. Fabens' Defense before tbe Hon. TJ. S. Commissioner, in the City of New-York, A.D. 1857. " Greytown being destroyed, (alas ! that in the ignorance of the mo¬ tives of the principals in the affair, I ever permitted myself to be con¬ vinced that it was a righteous act,) and the way opened, as Mr. White expresses it, for a new government, the Mosquito land specu¬ lators set about preparing for the occupation of a territory whose chief town they had made a heap of blackened ashes." Commercial Agency, IT. S. A., San Juan del Norte. I, the undersigned, Commercial Agent of the United States of America for the port of San Juan del Norte and the dependencies thereof, do hereby certify that Francis Salter, to me personally known, the City Clerk of this place, this day came before me and acknow¬ ledged the foregoing signature to be his own hand and act. In witness whereof I have hereunto set my hand and seal of office this twelfth day of November, A.D. 1858. (Signed) B. Squire Cottrel, [seal.] U. S. Commercial Agent. We will now recapitulate and dismiss the subject. 30 THE GREYTQWN CONTROVERSY» RECAPITULATION. *4 Qicestion. What act did the local government and inhabitants of Grey town commit against American citizens ? Answer. They removed by legal authority, in a quiet and orderly manner, a house occupied as a hotel or bar-room, built upon public lands, without the consent of the Government, and valued at $700, belonging to Capt. W. McCerren, of New-Orleans, who would neither pay rent for the ground, nor the customary license, paid by all others in a similar business, but also refused to vacate the said premises, when notified that the same was required for government purposes ; and were about to take similar steps against the Accessory Transit Company, who wrongfully held possession of public property, and openly defied a legally constituted authority ; but were prevented from doing so by the interference of Commander Hollins of the United States sloop-of-war Cyane. ' Question. What outrage did the local government commit upon the persons of citizens of the United States ? Answer. They arrested Captain Baldwin, Agent of the Accessory Transit Company, and one Sloman, an employe of said Company, for committing assaults, and attempted assault, upon the persons of Da¬ vid Samuda, Robert Reid, and James McGrath respectively, and to arrest Joseph N. Scott, another Agent of said Company, for oppos¬ ing and repulsing the City Marshal in the discharge of his official duty, and bound the offenders over to keep .the peace. They also attempted to arrest and bring to justice Captain Smith, another employé of said Company, for the willful murder of Antonio Paladino within their ju¬ dicial limits, but were prevented by the interference and threats of the Hon. Solon Borland, a retired Minister of the United States, who was returning home from his mission at the capital of Nicaragua. Question. What insult did the local government and inhabitants offer to an American official 1 Answer. A retired Minister of the United States to the Republic of Nicaragua, when on his way home, by threats and acts prevented Captain Smith from being brought before a court of justice, and made to answer for the murder of Paladino. His conduct on that occasion, as well as his harsh and threatening language, towards an excited mul¬ titude, caused a vicious person to throw a broken bottle, which struck, THE GREYTOWN CONTROVERSY. 31 and inflicted a slight wound upon his face. This act was unauthorized by any official of the local government, and condemned by every citizen of Greytown, and three several rewards offered, and the Ame¬ rican Consul at whose door it occurred, was called upon by the City At¬ torney for information of the culprit, but his identity was not known, nor has it been up to the present time, fully established, although sus¬ picion pointed to a man named Alexander Johnson, who had deserted either from the United States sloop-of-war Cyane or Columbia, on their former visits to the port, and who is now acting in the capacity of carpenter on board the United States ship Savannah, and for whose act Mayor Sigaud promptly apologized to Mr. Borland. Question. What evidence is there to establish the fact, that the authorities had any legal jurisdiction ] Answer. The authority of the Hon. Daniel Webster, as set forth in his various dispatches to the British Minister ; Captain Green of the United States corvette Decatur, and Captain Hollins of the United States sloop-of-war Cyane, which he commanded to be read to the American citizens there ; also similar documents from the British Government of the same tenor, and the public voice of the residents of Greytown, acquiesced in by all the claimants of territorial sove¬ reignty, and recognized by the Hanseatic Towns, and the government of Trance, as also by the governments of the United States and Great Britain, given in various written documents from Commander G. N. Hollins, H. L. Stevenson, and J. W. Tabens, representatives of the first- named Government at Greytown, and by James Green, Esq., and the commander of II. B. M.'s ship-of-war Geyser, and several other func¬ tionaries of and on the part of Great Britain. Question. Why did the United States Government destroy by bom¬ bardment and fire the unoffending community of Greytown ? Answer. Because Joseph L. White, who had an interest in a large grant of land, extending over three hundred miles in length, and upon part of which the community of Greytown was located, desired their removal, in order that he might fill their place with other men, who would recognize his Indian title, and form a government to support it, and enable him to dispose of his Central American Land and Mining Stock, falsely charged the local government and people of Greytown with having committed outrages upon the property and persons of citizens of the United States. Question. Why did the United States Government proceed upon false testimony 1 Answer. Because almost discretionary power was given Joseph W. Tabens, United States Commercial Agent, to act in the matter as he should deem proper, and either through ignorance of Mr White's real 32 thk greytown controversy. object, or his faithlessness, he prostituted his official position and seal to White's interest. Question. What will the United States Government do towards re¬ dressing the wrongs committed upon an innocent and unoffensive people 1 The reader, and the action of the United States Congress, will fur- nisn a reply to the last interrogatory. S. S. Wood, Commissioner. W. P. Kirkland, Solicitor.