The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-12-22
NICARAGUA's CANAL.
Provisions of the Bill Reported to the
Senate.

WASHINGTON, Dec. 21.-The Nicaragua
canal bill, reported to the Senate to-daylby
Senator Sherman, is drawn on substantially
the same lines as the bill reported from the
committee to the last congress, including, as
1t does, a proposition to guarantee the
bonds of the company TO the extent of $780, :
OOO,OOO to aid iu the construction of the
canal. The new bill, however, contains
some additions, which materially increase
the obligations of the company, as we'll as
the security of the government For in
stance, in the second section the real aud
personal property and franchise of the
company are included in the liability.
STOCK TO BE CALLED IN
In the third section it is provided that all
of the stock heretofore subscribed for or is-
sued shall be called il and Cancelled, that
all bonds issued shall be redeemed and can
celed and that all outstanding obligations
shall be satisfied before the act takes effect
The dates are changed 50 as TO make the
bonds issue Jan. l. 1898, and to make them
mature in 1858 instead Of 1911. as is pro-
posed in the original; and they are also
made redeemsble at the pleasure of the
United States after 1918.
The section requiring the company to ex-
ecute mortgage to the United States as
security for the guarantee is amended by
the addition of a clause requiring the mort
gage 10 contain provision for sinking
fund for the payment Of the bonds at ma
turity.
RIGHT OF FORECLOSURE.
An addition to section of the old bill
provides that il the company default in tn Q
payment of interest, or in other respect be-
fore the canal is put into operation. the
right oPfOreclosure shall at once attach in
favor of the United States.
The section authorizing the Secretary of
the Treasury to deliver to the company
bonds equal to the expenditure prior TO
January, 1898, Is amended by requiring the
company to first satisfy all liabilities and to
accept the provisions OF the act by resolu-
tion of the stockholders
WHEN INTEREST BEGINS.
The section is further amended 80 as TO
make the bonds bear interest from the date
of delivery and to exclude from the ex-
penditures that may be taken into account
the consideration paid, or agreed TO be paid,
TO the Nicaragua stock company or other
parties for expenditures by them, aud
for the concessions to Nicaragua
aud Costa Rica and the total amount,
principal and interest. OF the bonds that
may be issued for this first payment is
fixed at S. 900 900, instead Of 81 100000 as
in the original bill.
a new provision for the payment TO the
company of 100000 interest bearing
bonds, the proceeds OF which are to be used
as working capital and applied exclusively
to the construction of the canal; to be ac-
counted for in the settlement and deducted
from the total issue Of bonds.
THE ISSUE OF STOCK.
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 80 100000, 600, Sl2,OOO,-
coo to be retained by the company; the
amount stipulated, TO be delivered to the
governments OF Nicaragua and Costa Rica
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 stockholders meetings, and bat
three directors are to be selected from hold
ers of stock other than that owned by the
United States. In the last section an amend
ment is made so that ten instead of six of
the fifteen directors shall be appointed by
the President Of the United Saates. not more
than five of whom shall be appointed from
one political party.