The times. [volume] (Richmond, Va.) 1890-1903, 1891-01-13
NICARAGUA CANAL BILL,
REPORT OF THE COMMITTEE NOT
YET COMPLETE.

Work-The stock OF the Company tixs'
at 600. .OOO, 900 Substance Of the Re
port Provisions of the BilI.
WASHINGTON, Jan. 11.-lS?ecial = Th
Nicaragua Canal bill was introduced las
saturday. II is entitled ~ bill to amend al
act 10 Incorporate the Maritime ca al Com
pauy Of Nicaragua" The report has not ye
been printed and being in the hands OF TN
Government printer is not as yet accessible
rIIE OBJECT or THE BILL
The bill was adopted and reported unanim
ously ftom the Committee on Foreign Rela
ions Of the senate, there being 10 question
ofpDlitics involve. It's trainers and those
who report 10 assert that the objects OF the
bili are.
Fret TO insure the carrying out Of the uni
form policy Of the United states, That the
canal should be under the control oi the Gov
eminent.
Secund. To save American shipping from
paying the high rates OF toll which would
necessarily have to he imposed in order tc
pay the interest uIOn bonds issue bN the
company without the endorsement Of the
United ~tat, $, and sold on open market
EsTIHs sTED COS Z OF THE CANAL
It's estimated that the actual cost OF the
canal will be about SlOOOOOOOO. which j.
Onc-third more than the cost of the Welland
anal in Canada. This amount can be raised
by the sale Of SlOo, 100000 in bonds. enoOrsed
o. the United states, al par or perhaps al q
premium. which would make an annual
charge upon the canal for Interest Of $1,000
900. II IS estimated tnat the Canal tom
pany can raise the amount needed
by the sale Of per cent. bonds. which
would probably command in the mar
llet now about sixty cents on the
dollar They would have TO sell from $780,
100000 TO s2UOOOJ,OOD in bonds. which
would involve an annual Interest charge
upon lhe canal Of from slO.SOO,OOO To Sl2.-
900. .OCO. The difference between one or the
other of these amounts and s3OOO,OpO is The
amount that The shipping Of the world. and
Principally tlat Of the United states, would
be saved by the passage Of the senate Dlll.
STOCK OF THE coNPANY.
Furthermore the bil provides that the
stock Of the company. which, under the char
ter, is not less than slOU,OOO,OOO, nor more
inan 5000 OOO OHi, shall not exceed SlW,-
OOc. 900. Of which $50 100000 shall de-
posted i'm the Treasury OF the United states
nd be held as security until all The
bonds endorse q by the | United states and all
interest auvanced'by the United states, pend
ing the construction OF The canal shall have
been repaid Tie possession Of lhls stock
Will enable the United states 10 retain con-
troll Of the canal. and 10 prevent any foreign
government from obtaining controlling
interest by the purchase OF stock
fn the same manner In which England Sc
cured control of the -uez canal. As a further
means TO this end the charter of the Nica-
ragua Company IL amended so that six OF the
fifteen directors must be appointed hN the
PRESIDENT of the 'nitcd states by ana with
the consent OF the senate, two of whom
shall hold Office for two years, two Tor four,
wears and two for six years, as shali be desle
mated I'm their appointments, but their sue
-ess0rs shall hold Office for siN years The
government directors shall not be stock
4. Ill IN "a a "A
,tates. twill be seen that the bill Is really
% measure TO protect the interests OF Inc
Iults a states.
There is no qucs iOa as TO the ability Of the
company 10 raise all the money needed bY Is
SUNG bonds for sale i'm the markets OF the
world. This is what the United states pro-
poses 10 prevent.
SUBSTANCE OF THE RTPoRT
The report rccitos the importance Of the
anal project. treats in detail OF the history
Ofplst negotiations on the sul iect ana main
Q .,ins that ,hc pTocerdingOf Great Britain at
Belle. ON the Mosquito cOlst, discharged the
United States rom IFS engag, menl win
tircat Britain iu 1870 u rciiaip nom eXer-
ci.lng control of any part Cf ential Amerlca.
fine report 5 tys that the work Of the private
roru0iatlOn on the canal has advanced with
,reat mpidly; that the total cost OF Tie pro-
ieci VIII be but one -thlri more than 'hc Wei
land canal and that 10 Will bee complet d
Witrln SIX Ncais.
GtAIltNMINl iftAEANliIs
The committee feels that - secure this
a cunt OF money the company VIII be-
.,hlip,d 10 sell bonds at large discount. Con-
.oqueutlv 10 Will be necessary 10 impose
navy tolls %. shipping, and as the canal
would really consuinte part oi the coast
inc Of the United states. this burIen would
boo lar CIV BONE bN the American peOpl
Therefore the committee believes that IL
would ne thc vt Of economy. aside nom
ihe cOnsldcrau OF national policy, Tor the
. nifed states 10 uarantcc The bonds OF the
cotnn4.v To the smOunt OF slOO,OOO,OOO, 50
that 'th,y may be sold at par. with the result
Id reducing first. the actual expenditures o.
he comfanv. ana second. the tolls. which
would otherwise amount 10 sl2,5OO.OOO an
nuallv.
Inctlous raised hy President tleyeland 10 the
.fcatv negotiated in 1854, as II does not COM
mit tnr uit,d states 10 the defense OF the
territorial integrity of the Central American
states.
THE Bill.
THE provisions Of the bill in substance arc
us follows.
the cap.tal stock Of the company is 10 BE-
limited to lUO. 900 900 The existing stock
md contracts Of the company are 10 b. made
% CONFORM To the requirements OF the blli'
iO secure the means u construct ana com
plete the canal The company is authorized TO
ISSUE bonds ln denominations Of not less
than 100 nor more Than 4 600 10 an amount
NOT cxcecd!ro slOnOOOOOO. 10 be dated
January !, lsO1 and 10 be pay able January.
1881 with interest AT the tate Of three per
cent. payabls quarterly.
TneuOnds are 10 be cured by first mort
elgc On the property and rights of pr 'peIty
of ine canal company, including all conc b
SONS at franchises, and the mOr'2age Is 10
be so framed ms 10 be a first lien under the
laws Of Nicaragua aud Costa kica Inc bonds
are to bee printed and deposited i'm the lniteu
states Treasury ana aib 10 be issued by the
secretary OF the Treasury To the company
only as the work OF the canal progresses.
he d. nds are TO bear The guarantee OF the
United states for principal and Interest as u
tccrues. and the company is 10 issue no other
bonds.
Toe secretary is authorized to pay the in
tcrcst on the bonds as II becomes due II not
paid by the company, ai d an indefinite ap
rroprialiOn for the purpose Is embodied III
the bill. II the comp ny fails pay the IL.
ferest as II falls dua, and upon the payment
hcreoi by the United stat +. the comrany i'
required 10 pay to the United states the
mounts paid by the United States on the
guarantee, with interest annually at pen
cent until paid. For sums paid by the United
states under the guarantee the United States
is 10 be subrOgated 10 the rights under lht
mortgage which the bOndhOlder- would have
.b44if the same bad remained unpaid by the
company and had not been paid by the United