The sun., 1894-01-28
NICARAGUA CANAL AFFAIRS.
SToCKBOLDER HITCH WANTS TO LOOK
OYER 1HE BOOKg.

He Aneres that There ia. Bees Misuse or
the Fund- OF the Company srd Misrrpre-
| rsntntion OF eve Dispo-i,i oT It= capital.
Frederick H. Hatch. stakeholder in the
| Nicaragua Canal Company, through his coun-
| sell ex-GoV. lIoady and J. c. T. Gardner.
asked Justice Lacombe in tho United States
Circuit Court yesterday. to grant an order en-
abllng MIN to examine tho books OF the com
pany. G. Amory stevens and Wilbur + Her
bert. who renresent large number Of stock
holders. Join in the petition
Mr.. Hatch is Chairman Of the committee OF
stockholders who arc opposed to the Bartlett
reorganization plan. The company is In the
hands Of a receiver. Mr. I. b. Atkins lie OPP
posed che motion and was represented by
Joseph II. Choato and cx-JudGe Charles =.
DAILY. They said tho purpose Of the motion
was to defeat the Reorganization scheme.
They wanted the case adjourned. but were not
successful
In support Of the motion the petition sets
forth that there has been large m,sappro-
priution and misuse Of tho funds OF the COM
pany. Among other things charged Ivy Mr.
Hatch ls that one.half Of the Sl2. 600 900 capt
tai OF the construction company, which he
says practically controls the canal company
and which was organized to build the canal
for the Maritime Canal Company. was issued
to the persons comprising the Nicaragua Canal
Association in return for 100000 spent by
them for getting from Nicaragua the conces-
sion to build. OF the remaining $6.UOOOOO
capital stock the construction com pa n alleges
that 81, 0OO,OUO was sold to the public at so
cents on the dollar This. Mr.. Hatch says. is
not true. but that the company did not get
s2OOO.OOO for it. The construction company
agreed that the 81 2UOO.OOO stock 1t had should
not be sold for less than 500 n share and this
was 10 protect those who bought the 81. .00O.-
900 of stock. This was broken by giving pur-
chasers Of stock bonds as a bonus.
Mr.. Hatch says tho construction company
directors declare that they have spent on the
canal 81. 4Jl .joS in cash and S2.023. POO In So
curities This. lie says. is not true: only
S3.US5. 900 was spent in cash. and only So. 4OO.-
OOJ in securities wero wrongfully given
away. In addition 10 this, ho says, he believes
that the S3.GSJ.OOO in money was not spent in
building the canal. hut that much OF It was used
for the purpose OF securing the services Of oiIl-
cials and others. a larg, portion OF 1t being
devoted to eXtravagant salaries to its officers.
useless Office rent. and in gifts to persons con-
nected with the press and for the purpose OF
holding conventions in different parts OF the
country to create public opinion in aid Of the
enterprise. some Of the officials. he believes.
had lucrative and unjust contracts with the
company for the supplying OF materials and
labor for the canal The COMPANY. he says.
does n OF owe more than 500. 900. instead of
SlI2. i55. as the receiver alleges.
Much OF this Information is said to have
come from Mr.. Chubb. formerly private secre-
tary to Warner Miller when MIR. Miller was
President OF the company. Mr. Hoadley said
his clients had right to examine tho books.
Judge Daily said the original com mittce on
reorganization. who had heen legally chosen.
were ever ready ma willing to aid all tn.
stockholders, but when IL became evident that
there Was an effort afoot to annul all the en-
dcavors to place the Cana, COMPANY on bet
ter footing and TO pny Off its obligations on n
Just and equitable basis. then the Committee
on Reorganization determined to put u stop TO
the unlawful scheme.
What these three stockholders Of $40 shares
or those behind them want to do" he said. is
to Issue another address hllcd with the like or
other false statements of the character Of the
preceding ones. with tho weight they may
have. under the sanction OF an order Of this
court giving them authority to examine all tbs
hooks letters, and accounts Of the company
that they may by this means prevent the share
holders who have Rssented to the reorganiZa-
tion agreement from deposting their stock
and paying the 81, per cent. under T. which
is the only means left to them to protect the |
property they have In this great enterprise"
Mr.. Joseph II. Choate followed Judge DAILY.
The debts OF the company" he said. |
amount to about S550OOO. due to people |
who are entitled TO have them paid. No evil |
dencs Is before the Court to counteract tho |
receivers certified statemon and the Treas |
urer's sworn affidavit that these debts exist |
OF the debts some S2JO.UuO are owed by the |
Construction Company 10 the Canal COMPANY" |
The Court took the papers and reserved de- |
cision.