St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-01-30
AGAINST PUBLIC POLICY,
In the Eyes Of the st. Paul
Commercial Club, which
Protests
AND WIRES SENATOR DAVIS,
Strongly Disappearing tbs
Bill as Passed by the
Senate.

mercial club was held yesterday at the
club rooms to discuss the Nicaragua
canal bill recently passed by the United
States senate, and now pending before
the house of representatives. For some
time past the Commercial club has
been closely watching the course Of
legislation upon this subject, and at the
meeting Yesterday the report on the bill
was made to the board. The Maritime
Canal Company of Nicaragua is the
name Of the corporation which the Sc n-
ate bill pledges the nation to a guarantee
of interest upon S7O.O0O,0Oo OF bonds
which the canal company claims is suf-
ficient to construct the canal, but which
Maj. Dutton, of the government en-
gineers, claims is entirely insufficient
for that purpose.
The Maritime Canal company has or
ganized construction company COM
posed largely of its own members. with
which it has made contract to con-
struct the canal for 5000, 200, 900 in bonds
and 100000 in stock, which the OPP
posing members of the senate claim will
still be in force if the bill passes both
houses of congress. In the bill the
canal company receives total OF sll,-
100000 for work already done in sur
veys and construction in the canal,
which leaves them nes dizzy OF 1885,
600 as nest egg to begin with. The
Concession From Nicaragua
cost the original company 100000. This
the company sold to its construction
company, composed largely of its own
members. for Sl2,000,000, paid for in
stock. and listed in the senate bill for
that amount. The opponents of the
bill claim that the mortgage to the gov
eminent does not cover anything, as
article of the concession granted by
Nicaraguato the canal company sDeci-
ties that the concession is trans terable
in no case to governments of foreign
powers, and Nicaragua being party to
the contract has not abrOgated this
article. The opponents to the bill in
the senate also claim that while
ostensibly the government would
have ten out of the fifteen di.
rectors, that, in reality it would be
entitled to only seven. Or one less than
majority, as the canal company's or
ganiZatlon provides that one half of the
directors must be taken from the pro.
jectors, who retain their character as
such. AS the governments of Nicara-
qua and Costa Rica are entitled to one
director each. this will make total Of
eight as against the governments seven
directors. After full discussion Of
the matter President Footner offered
the following resolutions which was
DaSSpd by The board: Isl
Resolved, That it is the sense of the
Commercial Club of st. Paul that it is
against public policy for the governs
ment of the United States to lend its
credit to persons or corporations in pro-
noting national enterprises, but that
when undertaken they should be en>
tirely under the control and be con-
structed by
The National Government,
and
Resolved, That the Commercial Club
of St. Paul very strongly disapproves
the bill recently passed by the senate
guaranteeing the interest Oh S70, 100000
OF bonds to be issued by the Maritime
Canal company, at Nicaragua, and pro-
tests against the passage of the same by
congress; that in its opinion the prose-
cution Of said work. as proposed in said
bill, Will lead to great dangers to the
country.
Yesterday President Footner wired
Senator Davis for information and his
opinion OH the canal Jill, as passed by
the senate. Senator Davis replied:
Maritime Canal company is TO construct
canal the United States owning large ma
jority of the stock. Said company receives
IS. c00, 00J stock. also Sis 1900 of bonds guar
anteed by the United states, being total of
81, 100000. The government, as majority
slockholder, and under its power to legislate,
proposes to control the corporation which
owns and controls the canal. l favor can
al whenever our great government can
build it with both ownership and dominion
of the enterprise l oppose present scheme
10 increase our bonded debt S7J,0GO,000 in
these times. merely to make the gov eminent
a stakeholder with Nicaragua, Co sta Rlca
and private citizens. c. X. DAVIS.
President Footner, of the club. yes
terday afternoon. Immediately after adj
jourGment of the board, wired the res
outions passed by it to Senator Davis
and other members of MinneSota'S del
egation to congress.