Mr. Burton to Mr. Seward

No. 249.]

Sir: In number 646 of the Diario Oficial, which I have the honor to enclose, will be found a contract lately entered into in London between General Mosquera, then Colombian minister to Great Britain and now President of this republic, and Mr. Ambrose W. Thompson, of New York city, by which an association called “The Chiriqui Improvement Company” acquires the right to undertake certain enterprises in Colombia, and among them the construction of some sort of way across the isthmus by what is known as the Chiriqui route. The contract has been approved by the Colombian congress, as will be seen from Diario Oficial No. 676, herewith enclosed.

This or a similar project was brought before the thirty-sixth Congress of the United States at its second session.

I have the honor to be, sir, your obedient servant,

ALLAN A. BURTON.

Hon. William H. Seward, Secretary of State, Washington, D. C.

B.

[Translation.]

Contract between the United States of Colombia and the Chiriqui Improvement Company.

T. C. de Mosquera, great general of the Union, general-in-chief of the Colombian guard, senator, envoy extraordinary and minister plenipotentiary near her Britannic Majesty, in the name of the government of the United States of Colombia, of the one part, and Ambrose W. Thompson, in the name of the Chiriqui Improvement Company, of the other part, have entered into the following contract:

Article I. When the Chiriqui Improvement Company shall have completed the railroad across the district of Bocas del Jore and Costa Rica, from the Atlantic to the Pacific ocean, the company shall establish, if the government of the United States of Colombia require it, a line of steamers between the terminus of the railroad on the Atlantic and Santa Martha, touching at Colon (Aspinwall) and Carthagena and such other ports as the government may designate. The company shall also establish under the same conditions another line of steamers between the terminus of the road on the Pacific and the port of Buenaventura, touching at such other ports as the government may require. Each boat must make at least two round trips every month, with intervals of not less than ten days between trips; and when other vessels of the company shall make weekly voyages between the Atlantic terminus of the road and the United States of America, the trips of the boats of said line running. between said terminus and Santa Martha, the arrival and departure of the latter vessels shall be so regulated as to connect with the former.

Art. II. The company shall receive for the service named in the foregoing article the whole of the postage on the mail matter which it may carry on said line. The rates of postage and manner of collecting it shall be fixed by the government of the United States of Colombia, and to this end may keep its agents on board the vessels, if it shall see proper to do so. If the company shall so elect it may perform this mail service before the completion of the railroad.

Art. III. The steamers of said line must be capable of carrying at least four cannons of heavy calibre, or a single breech-loading rifled one in place of the four. The vessels thus armed may be put into the government service of the United States of Colombia in case of war, and whenever said government may require their services. In such case the government will pay to the company either the values of the vessels or an equivalent for their use. If the government and the company cannot agree upon the sum to be paid, each will name an arbitrator, and these two a third, in case they do not agree, and their decision shall be final.

Art. IV. In consideration of the establishment of the aforementioned line of steamers, the government of the United States of Colombia grants to the Chiriqui Improvement Company the unappropriated lands which it may need for colonization in the districts of Bocas del Jore and Alauje; and consequently it shall have the right to make such use of said lands as it may deem proper, for making improvements on them, constructing roads and edifices for the colonies that it may establish.

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Art. V. If the company should construct a railroad or Mac Adam wheel road over the lands mentioned in the preceding article, before the establishment of colonies, and preparatory to their establishment, it shall be entitled to a belt of land along the sides of such road, amounting to 60,000 hectares. The lands shall be laid off into lots of 400 square hectares parallel to the road, the company and government being entitled to alternate lots. The expense of surveying the lands and of making it appear that they are unappropriated shall be borne by the company.

Art. VI. Not less than one thirty-fifth part of the lot of each colony shall be reserved and administered by commissioners appointed by the government, and the whole of the income or products of the same shall be applied to the establishment and maintenance of public schools for the education of the children of the colony.

Art. VII. If at any time the capital of the republic of the United States of Colombia shall be removed to the State of Panama, the Chiriqui Improvement Company binds itself, the railroad being completed from the Atlantic to the Pacific through the district of Bocas del Jore and part of the territory of the republic of Costa Rica, to pay the sum of $250,000 towards the construction of the necessary edifices for the general government of the Union.

Art. VIII. The company also binds itself to carry gratuitously over its road and on its boats all persons in the service of the United States of Colombia, the members of congress, and also all the elements of war which it may be necessary to transport by them to preserve security from abroad or internal order.

Art. IX. With the approbation of this contract by congress, the said company is recognized as an association complete and national for the purpose of establishing lines of steamers with the right to carry the flag and entitled to the rights and privileges proper to such associations, and as a society or company for the improvement and colonization of unappropriated lands, whose colonists shall enjoy all the privileges, exemptions and guarantees granted by the laws to new immigrants. So, also, will the company be recognized as a corporation or artificial body to act by its attorneys, agents, and directors, under the name and style of the Chiriqui Improvement Company, with which title said company was formed in Philadelphia and recognized by the acts of the legislature (of Pennsylvania perhaps) of April 27 and May 6, 1854, and May 3, 1855.

Art. X. Said company, or civil industrial corporation, shall have power to make by-laws for the good order and management of its affairs and colonization in all matters not affecting the authority of the nation or of the States; but when said by-laws shall relate to general interests they must be approved by the national government, and when to special interests of internal order and police, by the government of the State of Panama, in which State the road is to be constructed until it enters the territory of the Republic of Costa Rica.

Art. XI. Said company shall have power to issue bonds or certificates representing its capital, as may be determined by law.

Art. XII. Said company, at its first or subsequent sessions, shall appoint from among its members nine directors, five of whom shall constitute a quorum, to transact business, and the acts of the majority of which shall be binding. Their term of office shall be fixed by the by-laws of the company.

Art. XIII. If doubts or differences shall arise between the national government, or that of the State of Panama, and the Chiriqui Improvement Company, as to the fulfilment of this contract, such questions shall be decided by a convention, (arbitration;) and if this cannot take place by the national or State judiciary, in accordance, with the rules prescribed by the constitution of Colombia and in no case shall rights or exemptions or protection from a foreign government be claimed, because citizens or subjects of another nation may be interested in the company, and the infringement of this provision shall ipso facto annul this contract.

Art. XIV. If this contract shall not be carried into effect during the year 1867, the fact of such failure in itself will render it void. That is to say, if within the year 1867 the company shall not be fully organized and the construction of a railroad from Chiriqui to Costa Rica, and the navigation by steamers between Colombia and the United States of America, or between the ports of the Atlantic and Pacific as before specified, this contract shall be ipso facto void.


T. C. DE MOSQUERA.

A. W. THOMPSON.