Schlessinger was court-martialed on his return, found guilty of cowardice, and sentenced to death, but he escaped punishment by breaking his parole during the trial and fleeing to Costa Rica. More than twenty years afterwards he reappears in the courts of that country, claiming reward for the service rendered the state on the occasion just narrated.
The heterogeneous character of the filibusters, even at this early date, may be seen from a list of the prisoners butchered after the battle of Santa Rosa, of whom six were natives of the United States, three of Ireland, three of Germany, one of Italy, one of Corfu, one of Samos, one of France, two of Prussia, and one of Panama.
So unexpected was the rout that the victors, fearing a ruse, did not pursue their advantage. The demoralized fugitives returned in straggling parties, some without arms, some in rags, and all crest-fallen and disgraced. To cover their shame they exaggerated the numbers and prowess of the enemy, who, indeed, had behaved with great skill and courage, proving a formidable foe when well led.
For some days a panic prevailed in the Democratic headquarters. Matters were in a critical condition. The Legitimists in the State, always secretly disaffected, hastened to spread the news of the defeat among their friends in the North. Honduras and the neighbouring republics grew firmer in their refusal to recognize the Rivas Government, and Guardiola began to mass his savage troops on the border of Leon. The demoralization spread among the Americans themselves. Faint-hearted officers, erstwhile thirsting for glory, suddenly began to long for a return home, and to send in applications for furlough. Walker lay tossing on a bed of fever, the while his enemies conspired against him and fair-weather friends deserted him. But he had many a stout heart among his trusty veterans, men who welcomed danger as a gambler courts his risks, and who bade good-bye to their shrinking comrades with a fine scorn worthy of Pizarro's old lieutenant, Carvajal, who sang:
"The wind blows the hairs off my head, mother—
Two by two it blows them away."
Another misfortune at this moment overtook the adventurers. The steamers of the Transit Company were suddenly withdrawn, and all communication with California was suspended. Though it stopped desertion, this isolation also cut off the coming of recruits. This action of the company was the result of a misunderstanding of long date. By the terms of its charter it was bound to pay to the Government of Nicaragua ten thousand dollars annually, and ten per cent. of its net profits. The company claimed, and the Government denied, that the ten thousand dollars had been paid with some regularity; but by a process of book-keeping, well known to financiers, the accounts never showed a balance of net profit upon which to levy the additional tithe. Against this deception the weak and ephemeral administrations of Nicaragua had at times feebly protested. The agents of the company bullied, deceived, or bribed them into silence, and went on reaping a golden harvest, until the installation of the Rivas administration. Cornelius Vanderbilt was then managing the company's affairs in New York, while its Western business was conducted by Morgan and Garrison at San Francisco. Vanderbilt, a man of boundless ambition and no weak scruples, soon made himself master of the company's resources. Nicaragua had never challenged the Wall Street autocrat until Walker took the country's affairs in hand. One of his first steps was the appointment of a commission to examine the Transit Company's books. The commission reported that the Government had been defrauded flagrantly and systematically for years, and that a balance, amounting to over $250,000 was lawfully due to it. Vanderbilt peremptorily declined either to acknowledge or liquidate the debt, repeating the vague threats with which he had been used to awe the little officials of former days.
Thereupon the ex-lawyer of California simply directed the authorities to seize the company's property as security, revoking at the same time the old charter and granting a new one to Messrs. Randolph and Crittenden. This occurred on the 18th of February. The last act of the old company had been the transportation of two hundred and fifty recruits from San Francisco, the draft for whose passage money was paid by Vanderbilt, some days afterwards, while he was yet ignorant of the sequestration of his property. The Wall Street dictator was very angry, but bided his time and quietly despatched a draft for a much larger sum, payable to the order of Juan Rafael Mora, President of Costa Rica. He then made a formal protest and appeal to Secretary Marcy, invoking the help of the United States. Marcy, however, was too old a politician to identify himself openly with the unsavoury interests of the Transit Company, a corporation whose history is summed up by Minister Squier, as "an infamous career of deception and fraud." He quieted his friend Vanderbilt with promises which were only too well kept. The vengeance of the money king was not contented with abetting Walker's enemies. Nothing short of the filibuster's ruin would suffice to soothe the wounded pride of Vanderbilt. The man of millions was no mean power in affairs commercial and political at home. When he undertook to use his resources against an almost penniless adventurer abroad, the might of money proved to be all but omnipotent.
In December Kewen was sent to California to dispose of a million dollars' worth of the bonds of the State of Nicaragua. He was instructed to sell no bonds below a minimum of ninety per cent. of the face value, and it does not appear that he did dispose of any below that price—few, indeed, at or above it.
Another feature of a stable government appeared about this time. In the early Spanish invasions the outward adjuncts of religion always followed in the wake of the army. It was in keeping with the changed condition of affairs that the printing-press should accompany the filibuster. Two newspapers were already in full play in Nicaragua, El Nicaraguense, of Granada, and the Herald, of Masaya. The editors and printers of Nicaragua were not strictly men of peace, but were wont, when occasion served, to exchange the pen for the sword. On this account their war despatches ought to have been most authentic, being commonly written and published on the field. John Tabor, the editor and proprietor of El Nicaraguense, was twice wounded in the pursuit of his novel duties, but lived to accompany Walker on his second invasion, in 1857, when, alas! his ready press was not called upon to chronicle any glorious victories.