is too important to be left at the mercy of rival companies claiming to hold conflicting contracts with Nicaragua.  The commerce of other nations is not to stand still and await the adjustment of such petty controversies.  The Government of the United States expect no more than this, and they will not be satisfied with less.  They would not, if they could, derive any advantage from the Nicaragua transit not common to the rest of the World.  Its neutrality and protection for the common use of all nations is their only object.  They have no objection that Nicaragua shall demand and receive a fair compensation from the companies and individuals who may traverse the route, but they insist that it shall never hereafter be closed by an arbitrary decree of that Government.  If disputes arise between it and those with whom they may have entered into contracts, these must be adjusted by some fair tribunal provided for the purpose, and the route must not be closed pending the controversy.  This is our whole policy, and it can not fail to be acceptable to other nations.

All these difficulties might be avoided if, consistently with the good faith of Nicaragua, the use of this transit could be thrown open to general competition, providing at the same time for the payment of a reasonable rate to the Nicaraguan Government on passengers and freight.  In August, 1852, the Accessory Transit Company made its first interoceanic trip over the Nicaraguan route, and continued in successful operation, with great advantage to the public, until the 18th February, 1856, when it was closed and the grant to this company as well as its charter were summarily and arbitrarily revoked by the Government of President Rivas.  Previous to this date, however, in 1854, serious disputes concerning the settlement of their accounts had arisen between the company and the Government, threatening the interruption of the route at any moment.  These the United States in vain endeavored to compose.  It would be useless to narrate the various proceedings which took place between the parties up till the time when the transit was discontinued.  Suffice it to say that since February, 1856, it has remained closed, greatly to the prejudice of citizens of the United States.  Since that time the competition has ceased between the rival routes of Panama and Nicaragua, and in consequence thereof an unjust and unreasonable amount has been exacted from our citizens for their passage to and from California.

A treaty was signed on the 16th day of November, 1857, by the Secretary of State and minister of Nicaragua, under the stipulations of which the use and protection of the transit route would have been secured, not only to the United States, but equally to all other nations.  How and on what pretext this treaty has failed to receive the ratification of the Nicaraguan Government will appear by the papers herewith communicated from the State Department.  The principal objection seems to have been to the provision authorizing the