The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-12-12
AN IMPORTANT MEASURE.

One of the first bills to come before
congress this session will be the Nor
gan bill for the construction of the
Nicaragua canal. The majority of
both parties will favor it unless there
has been change of sentiment since
the last session, and it is understood
that the administration would like to
have this measure given the right of
way
1t provides for the construction of the
canal by the government under the di-
rection of army engineers within the
next six years. The cost is not to ex-
coed $115,O00,O0O, the necessary money
to be taken from the Union and Cen
trail Pacific railroad funds.
To avoid any controversy as to the
right of the government to do this work
under the present concession the exist
ing Maritime company is used as a
dummy, but the bill stipulates that all
of the officers and directors shall resign
forthwith and be succeeded by board
of eleven members, nine of whom shall
be appointed by the president of the
United States and one each by the
presidents of Nicaragua and Costa
Rica.
The capital stock, according to the
bill, is to be fixed at $10O, 0OO, OOO Of this
stock $7O,OOO,OOO is to be conveyed to
the government of the United States
to insure controlling interest, while
the balance, $3O,0OOOOO with $4,5OO,OO0 8
per cent bonds, is to be issued to the
stockholders and creditors of the pres
ent company and to the governments
of Nicaragua and Costa RIGA upon the
understanding that they surrender and
redeem all stock and bonds now out
standing and clean up all liabilities, so
that there shall be no claims whatever
against the government or the re-
| organized company.
At meeting of the senate committee
this week Senator Morgan gave notice
of an amendment to the original canal
bill, authorizing the immediate issu-
ance, with a guarantee by this govern
ment of $5,OOO,O0O worth of bonds for
the redemption of all outstanding stock
except that held by the government of
Nicaragua and Costa Rica, and the
cancellation of all obligations.
There is another provision that the
net earnings shall be used first to pay
the interest on the bonds at the rate of
8 per cent, and second a dividend not
to exceed per cent upon the stock.
The balance, if any is to be used as a
sinking fund for the redemption of the
bonds which are to be Cancelled as
rapidly as possible.
There was an express agreement be-
tween the Maritime canal company,
whose rights have been assigned to
this government and the republic of
Nicaragua, upon which agreement the
Morgan bill was framed. Nicaragua,
in true Spanish style, is now trying to
play double, and, it is said, win grant /
another concession for canal construc-
ton. But the government of the
United States is not to be trifed with,
Cured in making the survey and ar
ranging the preliminaries to the great
undertaking.
The understanding was that the
United States should own 70 per cent
of the new canal, Costa Rica and
Nicaragua % per cent, and the present
stockholders per cent. There was
nothing uncertain about it. The re-
public of Costa RIGA understood the
matter; and so did Nicaragua, until
some syndicate or other got after the
eccentric and vacillating people of the
last named republic and offered them
what seemed to be a better bargain.
1t is in the interest of maritime COM
merce, that this project is urged to its
completion. 1t is for convenience in
war. 1t is a matter of naval necessity. |
This makes the conduct of the syndi- |
cate now interfering with the govern
ment plans treacherous as well as
mischievous: for the syndicate is com
posed of American citizens.
War may result from an attempt to
force Nicaragua into a compliance with
her part Of the contract. The RESPONSE
bility would rest on the members of
this syndicate. War should be made
first on them.