Before leaving San Francisco Walker had tried to ascertain the wishes of the Transit Company concerning the introduction of Americans into Nicaragua. It was generally said that the company was indebted to the Republic in a large amount, and Walker hoped to secure its co-operation by proposing an advantageous mode of settling this debt. But the agent of the company in California stated that his principals had instructed him to have nothing to do with such enterprises as he supposed Walker to contemplate. The company, however, did not practise that neutrality between the contending parties in Nicaragua, its instructions to the California agent seemed to inculcate. In July, 1855, they sent from New-York to Castillo a company of armed men, organized militarily for the purpose, as was alleged, of protecting their property on the Isthmus. These men were mostly Europeans—Poles, French, Germans, and Italians. A brother of Walker happened to be aboard of the steamer which carried these men from New-York to San Juan del Norte, and saw them, a few days after leaving the former display, the uniform provided for their use in Nicaragua. After remaining several weeks at Castillo, most of these men were engaged by D. Patricio Rivas at San Carlos for the service of the Legitimist government, and were a part of the force under Corral during the months of September and October. These men, gathered from all nations and professing to be nothing but pure mercenaries, using their arms for no higher purpose than the pay they got, were intended for the special object of protecting the property of the company from one H. L. Kinney, who, it was said, aimed at punishing the corporation for the wrongs he fancied he had received at its hands. Kinney had been engaged in trade on the frontier between Texas and Mexico, and had been suspected by many Texans, during the days of independence, of giving information to their enemies for the privilege of trading beyond the Rio Grande. He had acquired that sort of knowledge and experience of human nature derived from the exercise of the mule-trade, and having succeeded in making money, by bargaining for horses and cattle, he fancied himself capable of establishing an American colony on the Musquito shore. Alleging that he had an interest in the Shepard and Haley grant from the Musquito chief, he went to Washington for the purpose of interesting influential persons in his colonization schemes. Through the instrumentality of one Phillips, a Washington correspondent for newspapers, he made the acquaintance of Sidney Webster, the private secretary of the President; and Webster becoming interested in Kinney’s projects, it was surmised that Mr. Pierce and the government would be favorable to them. It was also reported—but with how much truth it is almost impossible from the character of the witnesses to determine—that the Accessory Transit Company engaged to co-operate with Kinney.