Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-03-19
THE NICARAGUA CANAL
A Bill Agreed Upon by the House Special
Subcommittee
Vital Principle is government Con-
ship-Bontls to BE Guaranteed.

Tomorrow the House committee on COM
merce will take up the Nicaragua canal
bill. The bill, which probably will be
pushed In the House, was agreed upon
Yesterday by the special subcommittee
which has for several weeks wrestled with
the many schemes introduced. But little
weight has been given by the committee
to the report of the special commission
which was sent to the isthmus last season
to look the ground, for members of
the subcommittee believe that the commits
sion greatly overest.mated the necessary
cost of the work.
Mr.. Mahon of Pennsylvania is the author
of the plan which meets the views of the
committee, for the bill adopted is one
introduced by him at the beginning OF the
session, and but two amendments were
made to it. Government control, with pos
sible ownership by the United States in the
future, is the vital principle of the bill.
Government ownership at present was
thought impossible, because the conces-
SONS obtained by the Maritime Canal Com
pany from the governments of Nicaragua
and Costa Rica were granted on condition
that they be not transferred, and particu-
lar prohibition was made against their ces-
sion to any other government 1t Is
thought by Mr.. Mahon and some members
of the committee that Nicaragua and Cos
ia Rica might consent to ownership by the
United States, but several years-Mr. Ma
hon says not less than six years-would be
required to secure the necessary legislation
from them. The bill provides for the re-
organization OF the Maritime Canal Com
pany; the payment of all it's debts, so that
a satisfactory statement shall be presented
to the Secretary of the Treasury; the Sc
lection of a board of fifteen directors, ten
Of them named by the United States, three
by the canal company and one each by
Nicaragua and Costa R:ca.
The issue bonds nav not exceed one
hundred million, with interest at 3 per
cent; the bonds to be guaranteed by the
United States and redeemed at the pleas
ure Of the government. In consideration
for Its guarantee CT bonds the United
States is to be given the stock of the COM
pany to an amount equal to the bonds is
sued. The amount of stock 20 DC given
the canal company in payment for the ex-
penditures and work 1t has put upon the
cana! is not to exceed SI,ND.0U. Four mil
lions OF stock is to be issued to the Mica
raglan government and one and half
be secured by a first mortgage for the
United States, drawn by the Attorney
General. They are Only to be issued as
they are needed for the work of building
the caEal-SlO,UD0D to- be advanced at
the heginning-ahd the stock is to be is
sued in corresponding amounts.
Out OF its net earnings the company is
to pay. first the interest on it's bonded
debt, then dividend on the stock, not to
exceed per cent, and the balance, if any,
TO go into sinking fund for the payment
OF principal and interest of the first mort
gage. The canal is 10 be built by three
engineers of the Erited States army.
The changes made in the original bill in
crease the amount of bonds permitted to
be issued from seventy to one hundred
millions. and the amount of the stock to be
given to the existing company from four
and half to seven millions.