The record-union., 1894-06-25
Terms of the Bill Providing for
Its Completion.
THE GOVERNMENT GIVEN COMPLETE
CONTROL
Little Doubt Entertained That the
Present Week Will See the End OF
Tariff Debate in the Senate-Sen-
ators Find Reason for Dispatching
Business as Soon as Possible on Ac-
count of the Hot Weather.
Special to the REcoaD-UNroN.


WASHINGTON, June 24.-Every section
of the new Nicaragua Canal bill has been
completed. The old stockholders have
had strong lobby here for some time
and have worked hard to get larger
bonus for the original company, but
Geary stood firm and carried his point
The completed bill in substance is as fol-
lows; The capital stock Of the Maritime
Canal Company of Nicaragua shall con-
sist of $4,000 shares of the par value of
$lOO each, which shall be worcestershire,
and no more than this number shall ever
be issued except by consent of Congress.
The words Nicaragua Canal" wherever
used in this Act, shall be held to include
all the real and personal property and
franchises, railroads, piers, channels,
dams, locks, embankments and other
works necessary or incidental to the con-
struction, equipment, maintenance and
operation Of the canal.
If the Maritime Canal Company shall
within nine months from the passage OF
this Act show To the satisfaction OF the Sec
retary of the Treasury that all the stock
of the Maritime Company heretofore is
sued, except that issued to Nicaragua and
celed, and that all bonds and obligations
to deliver bonds have been redeemed and
cancelled, and all liabilities OF the COM
pany satisfied, the Secretary of the Treas
ury shall, ON behalf of the United States,
subscribe for 700, 900 shares of the capital
stock of said company, and the company
shall thereupon issue to the Secretary OF
the Treasury 100000 shares OF the capital
stock of the company, to be deposited
with the Treasurer of the United States,
and in addition thereto 10000 shares of
n-assessable capital stock of the said
company is to be delivered to such person
as may be designated by the stockholders
OF the Maritime Canal Company whose
stock has been surrendered and cancelled.
This bonus given to the company, the
Offices of directors of the old company
shall then be declared vacant, except
such as represent Nicaragua and Costa
Rica. The new board will consist of
eleven directors-one each named by
Nicaragua and Costa Rica, one by the
stockholders of the Maritime Canal Com
pany and eight by the President of the
United States. Not more than four of
them named by the President shall be of
the same political party. Their COM
pensation shall be $1,000 year. Every
director appointed by the President of
the United States shall make a personal
inspection of the canal at least once
year.
On the reorganization of this board the
Secretary of the Treasury shall have an
accounting with the old stock and
deliver to them capital stock equal to the
amount they have already expended in
the construction of the canal. This sum
shall not exceed 100000 The United
States reserves the right to purchase this
stock at par at any time, except that
issued by Nicaragua and Costa Rica.
dividends upon the stock must be
made from the net earnings, and shall
never exceed per cent. of the par value
OF the stock.
The bonds issued to meet the expenses
of construction of the canal shall be in
denominations of not less than $50 nor
more than 81 200, and the total amount is
sued shall not exceed $40, 100000, redeem
able in 1924 or at any time after 1904. at
the option of the United States. These
bonds will be secured by first mortgage
on the property Of the company. This
mortgage shall contain a provision for
the payment of the bonds at maturity.
Upon the failure of the company TO pay
interest on these bonds as it becomes 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
Vi AhAOAOobs VI III oil IOcpCOls LlIO
right of foreclosure shall at once attach in
favor OF the United States without neces-
sity of judicial proceedings.
Provision is made for the creation of a
sinking fund for the liquidation of the
principal and interest of the mortgage
out of the earnings OF the company. All
dividends upon the stock owned by the
United States shall be paid into this fund,
to be applied to the extinguishment of
the debt.
The construction of the canal is to be
under the supervision of United States
engineers. The Act will be void if the
company fails to comply with its require
ments within nine months after its pas
sage.
Representative Mallory of Florida
made a strong effort to have the amount
of capital stock increased from SIS, ,O00. 900
to Sl00,000,000 in order to leave a large
margin for possible contingencies, but the
other members Of the subcommittee did
not favor the plan.