The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1881-02-22
CANAL CREDIT Mo31L1ER,
A Society Which Expects to Stand
In with the Nicaragua Conn
pany in the Matter OF
Ero6ts.
Washington Letter.

Washington Letter.
The hearing before the house COMMITTEES
on foreign affairs in regard to the Nieara-
qua canal has developed some curious
facts. The United States has surveyed
the entire line without expense to any
private parties. 1t now appears that
before Mr.. Menscal left to superiRtend en-
tbs last survey for the United States
society was formed. which was called the
Provisional InteroceGnic Canal society"
By himself aud others, for the purpose of
Obtaining concession from Nicaragua for
the exclusive privilege Of constructing
canal. and during his abse nee he succeeded
in obtaining such a concession.
L was obtained therefore By this PRO
visional Interoceanic Canal society" will
out any cost to it's mem bers, they not hav-
log up to that tims invested any money in
the enterprise. 1t was not a corporation
and had none of the attributes Of one, 1t
had no sanction of law, but was a mere
private association of a few individuals
formed for speculation alone. 1t had no
capital and did no. require any. What ii
did, therefore, il the way OF acquiring
concession, was accomplished at the ex-
pense of the United States. What money
1t is expected to make was regarded IS ali
perquisites. Tbs amount of this profit
seems to have bsea carefully and studious-
~ provided for; not lett to depend upon
any contingency, but made about certain.
The concession does not limit the CAPT.
tai of the company that shall bafHo the
canal. and does not provide that this pro-
visionaI society shall do it. 1t requires
that construction company shall be
formed. to be known as the Maritime
Canal company of Nicaragua, which shall
take the concession from the provisional
society by assignment, and build and
maintain the canal; and it moreover pro-
vides that when this construction company
Is formed the provisional society shall be
merged in it without any subscription OF
capital stock and without investing dol
lar toward constructing the canal. For
the protection and security OF its mem
bers, however, it shall retain at least ore
halt of the board Of directors
To carry out this arrangement. this
Maritime Canal company of Nicaragua is
asking q charter of congress. and has fixed
its capital at not less than $4,000, 600 aud
not to exceed $1,000 600 By article Al
of the concession, the provisional society
was to be only to set the expenses of the
surveys, or. in plain English. at no ex
n;pon th nj oJ hnG
the work. Next comes that part of the
concession which provides for the profit
to be egfssed by the members of this pro-
visonal sesfety, which partakes somewhat
of the nature of bonanza, Article so
is as follows:
In order to idemnify the Provisional So
ciety for its outlays'in survey, plans and
explorations. of which mention has been
made, and for other expenditures which
If will be compelled to make CD to
the time of the organiZati of the con-
structlon company. it shall. be entitled
from the moment said company shall be
organized to 6 per cent of the capital stock
in shares issued in excess of the capital
which must beEsubscribed.
These shares shall be identicaily equal
to the subscription shares, and drawn and
registered in the same manner. conse-
q1eu'lg hey sh d. participate i'll all bcu1
fits, interests, portions, dividends, sinking
funds. rights, and privileges, and Of every
advantage gi ven to paid up shares without
distinction; one-ffth of this percentage
shall belong to the government of Mica
ragua."
= aeEe sis 4 Qyoyision for watering the