The times. [volume] (Richmond, Va.) 1890-1903, 1892-12-22
NICARAGUA CANAL BILL
PROFESSIONS or THE MEASURE RE-
PORTED TO THE SENATE
Wherein IL Differs From the Bill Reported
From the Committee OF Congress.
The Issue of Stock.

WASHINGTON, d. g., Dec. H.-The
Nicaragua Canal bill. reported to the Sen
ate by Mr. Sherman. IS drawn substan-
TALLY on the same lines as the bill re-
ported from the committee Of Congress,
including a proposition to guarantee
bords Of the company TO the extent Of
one hundred millions to aid I'm the con-
struction Of the canal The now bill,
however. contains some additions. which
materially increase the obligations Of the
company. as we'll as the security Of tie
Government. For instance. in the sec
ond section the real and personal prop
erty and franchises of he company are
included in the liabilities In the third
section it is provided that all OF the
stock heretofore subscribed for or issued
shall be called in and cancelled: that
all bonds issued shall be re-
deemed and Cancelled, and that
all outstanding obligations shall be sat
isned before the act takes effect. The
dates are changed so as TO make the
bonds issue January /, 1893. and to make
them mature in 1855. instead Of 1911. as is
proposed in the original; and they are
also made redeemable at the pleasure Of
the United States after 1913. The section
requiring the company 10 execute mort
gage to the United States as security for
the guarantee is amended by the addition
Of a clause requiring the mortgage TO
contain provision for sinking fund,
for the payment Of the bonds at matu-
rity.
In addition to section six Of the old bill
It provides that If the company default
I'm the payment of interest or in other
respect before the canal is put into ope-
ration. the right Of foreclosure shall at
once attach in favor Of the United States.
The section authorizing the Secretary OF
the Treasury TO deliver 10 the company
bonds equal TO the expenditure prior TO
January /, 1888 is amended by requiring
the company TO first satisfy all liabilities
and to accept the provisions OF the act
by a resolution Of the stockholders. The
section is further amended so as 10 make
the bonds bear interest from the date
Of delivery, and to exclude from eNpen-
ditures that may be taken into account
the consideration paid or agreed TO be
paid to the Nicaraguan Construction
Company or other parties for eXpen-
ditures by them and for the concessions
to Nicaragua and Costa Rico and the
total amount. principal and interest, Of
the bonds that may be issued for this
first payment, is fixed at six instead OF
four millions, as in the original Dill lheIe
is also included in the same section
new provision for the payment TO the
company Of one million interest-bearing
bonds. the proceeds Of which are to be
used in working capital and applied eX-
clusively to the construction of the canal,
to be accounted for I'm settlement and
deducted from the total issue of bonds
Perhaps the most important changes in
the bill are those made In the ninetieth
section relative to the issue Of stock
in the bill this is limited to 100000
900. twelve millions to be retained by
the company. the amount stipulated to
be delivered to the Governments Of Mica
ragua and Costa Rica. according to the
concessions. and the remainder to be is
sued TO the United States. full paid, and
not subject to assessments, to be voted
by the President of the United States or
his proxy al a stockholders meeting, and
but three directors are TO be selected
from holders Of the stock other than that
owned by the United States. In the last
section an amendment is made so that
six Of the fifteen directors shall be APP
pointed by the President Of the United
States not more than five Of whom shall
be appointed from one political party.