Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-12-22
THE NICARAGUA CANAL BILL.
Provisions Of the New Measure Favorably
Reported bv sherman.

Reported by Sherman.
WASHINGTON, Dec. 21.-The Nicaragua
Canal bill, which has held the attention Of
the Foreign Relations Committee since the
beginning OF the session, has at last been
completed, and was to-day favorably re-
ported by its author, Senator Sherman, who
gave notice in the Senate that he would call
it up at an early date and endeavor to Sc
cure prompt action upon it.
The new bill is drawn on substantially the
same lines as the bill reported from the
committee to the last Congress, including,
as it Goes, proposition to guarantee bonds
OF the company to the extent OF 500 ,OOO,O 600
to aid in the construction OF the canal. The
new bill, however, contains some additions,
which increase the obligations of the CON-
pany as we'll as the security of the Govern
ment For instance, in the second section
the real and personal property and fran
chtses of the company are included In the
liabilities. In the, third section 1t Is pro-
vided that all of the stock heretofore sub
scribed Tor or issued shall be called in and
Cancelled; that all bonds issued shall be re-
deemed and cancelled, and that all out
standing obligations shall be satisfied before
the act takes effect. The dates are changed
so as 60 make the bonds issue January l,
1895, and to make them mature In 1858 in
stead OF 1911, as is proposed in the original
Dill; and tuey are also made redeemaOle at
the pleasure of the United States alter 1913.
The section requiring the company to exc
cute mortgage on the United States as Sc
cur1ty for the guarantee Is amended by the
addition OF q clause requiring the mortgage
to contain provision Tor sinking fund for
the payment of the bonds at maturity.
An addition TO section 6.of the old bill, it is
provided that If the company de- ault in the
payment OF interest or in other respects, be-
lore the canal il put into operation, the right
OF foreclosure shall at once attach in favor
OF the United States. In authorizing the
Sec eeary OF the Treasury to deliver to the
company bonds equal to the expenditure
prior to January, 1898, it is amended by re-
curing the company to first satisfy ali liza
biltties and to accept the provisions of the
act by resolution or stockholders. The
section is Iurther amended SO as to make
the bonds bear interest from the date OF de-
livery and TO exclude from expenditures
that may be taken INTO account the con-
sideration paid or agreed to be paid to the
Nicaragua Construction Company or other
parties for expenditures by them, and for
the concessions to Nicaragua and Costa
l:ica, and the total amount, principal and
interest of the b0nos that may be issued for
this payment, is fixed at $6, 600 600 instead OF
81 600 900 as in the original bill. There is also
included in the same section q new pro-
vision for the payment to the company OF
s., l,OO1OOO 1nterest-bearing bonds, the pro-
ceed5 or which are to be used as working
capital and applied exclusively to the con-
strucCion of the canal; to be accounted for
in the settlement and deducted from the
total issue OF bonds.
Perhaps the E1osT important changes in
the bill are those made in tine ninth sectlon,
relative TO tine issue OF stock. In the new
bill this is limited 20 $lO00OO,O00. sl2,-
100000 to be retained by the company;
the amount stipulated to be de-
livered to the Governments of Nicar-
agua and Costa Rica, according to the
concessions, and the remainder to be issued
to the United States, full paid and not sub
ject to assessment; to be voted by the PrestO
dent OF the United States or his proxy at
stockholders meetings and but three d.
rectGrs are to be selected from holders OF
the stock, other than that owned by the
United States In the last section an amend
nent is made so that ten instead of six of
the l5 directors shall be appointed by the
President OF the United states, not more
than five of whom shall be appointed from
one political party.