St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1892-12-22
By 1t the Security Of the Gov
eminent Is Consider
ably Increased.
Uncle Sans Claim to Be q
Prior Lien on the
Canal.
No Apparent Diminution Of
the Evils Of the Sweat
ing System.


ragua canal bill, which has held the at
.tention of the foreign relations com
mlttee since the beginning of the sea-
son, has at last been completed, and was
today favorably reported by its author,
Senator Sherman, who gave notice in
the senate that he would call II up at an
early date and endeayOr to secure
prompt action upon it. The new bill is
drawn on substantially the same lines
to the last congress, including. as it
does, proposition to guarantee bonds
of the company to the extent of $780,
000.0 900 to aid in the construction of the
canal.
The new bill, however. contains some
additions which increase the obligations
of the company as we'll as the Sc
curity OF the government. For in
stance, in the second section the real
and personal property and franchises Of
the company are included i'll the liabili-
ties. In the third section it is provided
that all of the stock heretofore sub
scriDed for or issued shall be called in
and cancelled; that all bonds issued
shall be redeemed and cancelled, and
that all
Outstanding Obligations
shall be satisfied before the act takes
effect. The dates are changed so as to
make the bonds issue Jan. l, 1893. and
to make them mature in 1858 instead of
1911, as is proposed in the original bill,
and they are also made redeemable at
ba nj rf Sfafo
1913. The section requiring the COM
pany to execute mortgage to the
United States as security for the guar
anteed is amended by the addition of
clause requiring the mortgage to con-
tain prOViSo for sinking fund for the
payment of the bonds at maturity. An
addition to section 6 of the old bill pro-
vides that If the company default in the
payment of interest OF in other respects
before the canal is put into operation
the right of foreclosure shall at once at
tach in favor Of the United States.
The section authorizing the secretary
of the treasury to deliver to the com-
pany bonds equal TO the expenditure
prior to January, 1898, is amended by
requiring the company to first satisfy
all liabilities and to accept the provs-
ions of the act by resolution of stock
holders. The section is further amended
so as to make the bonds bear interest
from the date of delivery and to exclude
from expenditures that may be taken
into account the consideration paid OF
agreed to be paid to the Nicaragua Con-
StrActiOn company, or other parties, for
expenditures by them, and for the con-
ceSSiOnS to Nicaragua and Costa Rica;
and the total amount, principal and in
terest of bonds that may be issued for
the first payment, is fixed at S6,000,000
instead Of $4.000.000, as in the original
bill. There is also included III the
same section
A New Provision
for the payment to the company of
81 100000 interest-bearlng bonds, the
proceeds of which are to be used as
working capital and applied exclusively
to the construction of the canal; to be
accounted for in the settlement and de-
| Quoted from the tota! issue OF bonds.
Perhaps the most important changes
| in the bill are those made in the ninth
section relative to the issue of stock.
In the new bill this Is limited to $780,
100000, 81, 900. 600 to be retained by the
company. The amounts stipulated to
| be delivered to the governments of
| Nicaragua and Costa Rica according to
| the concessions. and the remainder to
be issued to the United States, full
paid and not subject to assessment,
| to be voted by the president of the
! United States or his proxy at St0ckhold-
ers' meetings, and but three directors
are to be selected from holders of the
stock other than that owned by the
United States. Yin this last section an
amendment is made so that ten instead
of six of the fifteen directors shall be
appointed by the president of the
United States. not more than five of
whom shall be appointed from one
political party.
Mr.. Morgan Dem.). of Alabama, pre-
sented to the senate today the joint
memorial of the senate and house Of
Alabama, urging such measures adopted
by congress as to secure the speedy con-
struction of the Nicaragua canal, and its
control by the United States. He also
presented the memorial of George l..
| Converse. of Ohio, and others, forming
committee appointed by the conven-
ton recently held in New Orleans.