But the United States Government, willingly or unwillingly, was led by the remonstrances of Marcoleta, the representative of Nicaragua at Washington, to take steps against the Kinney movement. Then, too, the Accessory Transit Company pronounced against the colonial projector, and Kinney, breathing fire against the traitors, as he called them, escaped to San Juan del Norte with an inconsiderable body of followers. Hence the pretext for the mercenaries who finally fell into the ranks of the Legitimists. In the month of June, Estrada had appointed D. Gabriel Lacayo and D. Rafael Tejada commissioners, to proceed to New-York, and to treat with the company concerning its liabilities to the State, and Castellon soon afterward notified the corporation that he would consider null and void any settlement made with these commissioners. In July, Castellon appointed Colonel Walker commissioner to negotiate and arrange with the company, and that officer showed his credentials to the agent, Mr. Cushing, a few hours after the action at Virgin Bay on the 3d of September. Mr. Cushing, as he said, notified the company of Walker’s powers, but nothing was ever attempted to be arranged under this authority. During September and October, while the democratic forces occupied the Transit, their relations with the agents and servants of the company were of the most friendly character. When Colonel Gilman arrived at San Juan del Sur he gave Walker to understand that there was a struggle in the company itself, between rivals parties aiming to get the control of it. The impression made on Walker was that the agents in New-York and San Francisco were acting together to depress the market price of the stock, so as to buy in and get the majority of the shares. The advance by Macdonald, however, indicated another plan on the part of Garrison and Morgan. With the conviction that Garrison might be brought to co-operate largely in the policy of introducing the American element into Nicaragua, Walker wrote to an intimate friend, A. P. Crittenden, of San Francisco, saying that any arrangements he might make to get five hundred men into the country would be fully approved. This letter was written immediately after the signature of the treaty of peace; the necessity for more Americans in Nicaragua was urgent, and Walker had entire faith in Crittenden’s honor and discretion.