The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-07-30
THE NICARAGUA CANAL.
Interesting Details About the Cost
and the Construction of the Great
NEW York Advertiser.]

Ditch.
New York Advertised
The government of Nicaragua has re-
moved all obstacles inthe way of carry
ing on and completing the canal. 1t is
estimated that 8 per cent. bonds to fine
amount of rs million dollars, guaranteed
by the government of the United States,
will be sufficient to complete the great
work. The Interstate Commerce COM
mittee, which has charge of the bill, is
unanimously in favor of guaranteeing
the bonds by the government and Tor
paying the interest till the canal is
able to do it. The subcommittee that
has given the most attention to the sub
ject, consists of Messrs. Mallory of
Florida, Wise of Virginia, Geary of Cal
and Price of Louisiana, Demo-
crats, and Storer of Ohio Mahon of
Pennsylvania, and Hepburn OF Iowa,
Republicans. They are all in favor OF
the guarantee. The bill provides that
the bonds shall not be sold at rate be-
low their par value.
The amount of stock issued will be SO
million dollars, of which the United
States treasury will hold 70 million dol
lars as a guarantee against the bond
tissue. The remainder of the stock will
be issued, IL million dollars to the
present owners of the canal, who are
required to surrender all other claims
if they accept the bill, and IL million
dollars to the Nfcaraguan government,
which required such an issue as COM
pensation for the franchise given the
company. This stock will not draw in
| tereSt or dividends until the canal af-
fords net earnings over and above the
interest on the bonds. The theory of
the committee has been that the own
ers Of the present franchise are in a
i, ~
the capital they have sunk In the work
without the assistance of the United
States, and that they should be content
to wait until the canal is completed and
lis paying profit before expecting any
Interest. The bill will provide that a
dividend of per cent. may be paid on
all the stock when the earnings of the
canal company justify it. The United
States will share in this stock divid-
end whenever it is made, and will be
protected by a further provision for a
share in the excess of earnings above
the interest on the bonds and the per
cent dividend on the stock. The bonds
will be redeemable after ten years at
the pleasure of the government, and
must be redeemed after thirty years.
The construction of the great canal
will be under the supervision of several
engineer officers of the United States,
and the chief engineer will be appoint
| ed by the war department. 1t will re-
lquire five years to complete the work.
Senator Morgans report, presented to
the Senate in April called attention tC
| the fact that the net revenues of the
Suez canal for series of years past
have been upward of II million dollars
annually; that the shares of the COM
jpany, originally quoted at 500 francs
each, are now quoted at 1892 francs
and that the shares held by the English
! government and purchased for million
pounds sterling, are worth today over
| 10 million pounds in the open market
A number Of estimates have been SUBJ
mitted to the committee of the proba.
| Bile business and profits of the cana
when completed, but they are naturally
speculative. A letter from the officers
lof the company, printed with Senator
Morgan's report, estimates that two
| thirds of the commerce within the zone
! of attraction, or IL million tons, will
seek the new route annually as early as
the second year of its operation, an6
that a charge of $3.50 per ton will yielc
a gross revenue of 16 IA million dollars
| or a net revenue of IA ga million dol
| lars, equal to per cent. on a capitalize.
/ ton of 295 million dollars This would
pay the interest on the bonds and leave
$12,650, 600 to be divided among the
stockholders, if no limitation were pu
upon the dividends, in the proportion Of
labout Is per cent.