Hornsby gets Possession of the Steamer La Virgen—Democrats embark for Granada—Landing above the Town—Surprise of Granada—Flight of the Legitimists—Fury of Native Democrats—Conduct of the Americans—Release of Prisoners—Fermin Ferrer and Carlos Thomas—Niña Yrena—Father Vigil—Negotiations with Corral—Mediation of Mr. Wheeler—Arrival of Fry—The Lake Steamer fired on—Shooting of Mayorga—Corral at Masaya—Comes to Granada as Commissioner—Treaty of 23d October—Macdonald’s Loan of Twenty Thousand Dollars—Entry of Legitimists to Granada—Rivas Inaugurated—Walker Commander-in-Chief—Formation of the Cabinet—Nature of the Treaty—Intercepted Letters of Corral—His Trial and Execution—Narciso Espinosa—Rivas’ Government recognized by Mr. Wheeler PAGE 109 CHAPTER V. THE ADMINISTRATION OF RIVAS. Policy of Rivas—His Appointments—Course of the Clergy—Colonization Decree—El Nicaraguense—Military Enlistments—The Accessory Transit Company—Its Mercenaries—Kinney and His Schemes—Negotiations with the Company—Garrison and Morgan—Course of the Company—Edmund Randolph and Parker Crittenden—Revocation of the Company’s Charter—Justice and Policy of the Act—The Randolph Grant—How Americans were carried to Nicaragua—Sickness at Granada—Circular of Rivas—General Trinidad Cabañas—His Influence over Jerez—Resignation of Jerez and Selva—Course of the Four States of Central America—Commission to Costa Rica—Policy of the United States—Policy of Great Britain—British Consul at Realejo—British Aid to Costa Rica—Declaration of War by Costa Rica—Its Effects on the Country PAGE 142 CHAPTER VI. THE COSTA RICAN INVASION. State of the American Force on March 1st, 1856—Arrival of Goicouria—Col. Padilla—Proclamation of General-in-Chief—Expedition to Guanacaste—Rout at Santa Rosa—Its Effects—Headquarters at Rivas—Government removed to Leon—Address to the Troops—C. J. Macdonald—Goicouria as Intendente-General—The Americans at Granada—Mora at Rivas—Walker marches to Rivas—Action of 11th April—The Americans retire—Effects of the Action—Action on the Serapaqui—Appointment of Father Vigil as Minister to Washington—Sickness at Granada—Arrival of Hornsby with Recruits—Cholera at Rivas—Depression of the Costa Ricans—Mora leaves Nicaragua—Letter of Cañas—Cholera in Costa Rica—Expedition through Chontales—Execution of Ugarte—Effects of Fever—Difficulties of the Americans—Affairs at Leon PAGE 177 CHAPTER VII THE DEFECTION OF RIVAS.