The herald., 1894-06-25
THE NICARAGUA SHIP CANAL,
Congressman Geary's Bill Now
Complete.
A Plan That Is Thought to Meet the
Requirements.
The ola Company to BE Allowed Only
s4,5OO.0OO Stock for Their Prop
orty-The Provisions
in Detail.
By the Associated Preaa.

BY the Associated Press.
SAN FRANCISCO. June 24.-The Exam
iner'H special from Washington says to-
day:
Every section OF the new Nicaragua
canal bill hss been completed. The bill
has been mainly drafted by Representa-
tive Geary, and embodies his ideas
throughout. The old stockholders have
had strong lobby here for come time.
and have worked hard to get larger
bonus for the original company, bat
Geary stood firm and carried his point.
The completed bill In substance 10 "a
follows:
The capital stock OF the Maritime
Canal company OF Nicaragua shall COR
sist OF S30. 900 shares. OF the par value OF
800 each, which shall be non-assessable,
and no more than this number shall
ever be issued, except by consent OF corr
gress.
The words Nicaragua canal" where
ever used in this act shall be held to in
clude all the real and personal property
aud franchises, railroads, piers, chan
nels, dams, locks, entertainments and
other works necessary or incidental to
the construction, equipment, mainten
ance and operation Of the canal.
II the Maritime Canal company shall
within niEe months from the passage OF
this act show to the satisfaction OF the
secretary Of the treasury that all the
stock OF the Maritime company hereto
fore issued, except that issued to Mica
ragua and Costa Rics, haze been called
in and cancelled aud that ell the bonds
nj oh 20 Aal; de ho.
been redeemed and cancelled, and all
liabilities OF the company satisfied, the
secretary OF the treasury shall, in be-
half of the United States, SUBJ
scribe for 100000 shares OF the capital
stock OF said company, and the company
shall thereupon issue to the secretary OF
the treasury 700, 900 shares OF the capi-
tai stock Of the company, to be deposited
with the treasurer of the United Statee,
and in addition thereto 5000 shares of
non -asseesable capital stock OF the said
company ia to be delivered to such per-
son as may be designated by the stock
holders OF the Maritime Canal company,
whose stock has been surrendered and
cancelled.
This bonus given to the company,
the officers OF the directors OF the old
company ehall then be declared va
cant. except such as represent Ncar.
aqua and Costa Rica. The new board
will consist of IL directors--one ench
named by Nicaragua and Costa RIGA,
one by tine stockholders OF the Mari
time Canal company and eight
by the president of the United
States. Not more than forr
of them named by the president shall
be of the came political party. Their
compensation shall be $4,000 q year.
Every director appointed by the presi-
dent of the United States shall make q
personal inspection OF the canal at least
once year. tse
On the organization Of this board. the
secretary OF the treasury shall have an
accounting with the old stockholders
and deliver to them capital stock equal
to the amount they have already ex-
pended in the construction of the canal.
This sum shall not exceed $4,000 900.
The United States reserves the right to
purchase this stock at par at any time,
except that issued to Nicaragua and
Costa RIGA.
Dividends upon the stock must be
made from the net earnings and shall
never exceed per cont OF the par value
of the stock.
The boade issued to meet the expenses
OF constr uction OF the canal shall be in
denominations of not less than $50 nor
more than $1,000, and the total amount
issued shall not exceed s70,000.000 re-
deemsbe in 1924, or at any time after
1904, at the option of the United States.
These bonds will be secured by first
mortgages on the property OF the COM
paBy. This mortgage shall contain
provision TOR the payment OF the bonds
OF maturity.
Upon the failure oil the company to
pay interest on theHe bonds as 1t be-
come due, the treasurer Of the United
States shall pay it and charge the
amount against the company. In case
default shall be made by the company
at any time before the completion OF the
canal in the payment OF interest, or in
any other respect, the right to fore.
closure shall at once attach in favor oil
the United States without the necessity
OF judicial proceedings.
Provision is made for the creation of q
sinking fund for the liquidation of the
principal and interest of the mortgage
ont of the earnings of the company. All.
dividends on the stock owned by the
United States shall be paid into this
fund to be applied to the extinguish.
ment of the debt.
The construction Of the canal is to ba
under the supervision of United States
engineers. The act will be void if the
company fail to comply with the require.
ments within nine months after its pasa.
age.
Representative Mallory of Florids
made strong effort to have the amount
of capital stock increased from $83, 000,.
GOO to 00,000,000 in order to leave q
large margin for possible contingenciess
but the other members OF the sub come
mittee did not favor the plan. TIN
San jose Road Race.
GIN Insr lima % -Tha aixth animal