Daily Kennebec journal., 1898-06-24
The New Canal Bill.

by that committee to the act of 1889 IN
cooperating the heNMaritime Canal co. OF
Nicaragua. This provides that all the
outstanding stock is to be called in ana
cancelled, except that held by the gov
ernnlents of Nicaragua and Costa Rica'
also that 100000 new shares be Is
sued. the par value of which shall be
$1O0 OF these shares zoe, 900 are to so
to the United States government, IN
return for which the latter is to issue
and guarantee the principal and inter-
est on bonds to an amount not exceed
ing $1O0, 200, 900 at three per cent. inter
est.
The government is also given first
lien on all the property and concession,
and 10000 shares of the new stock ana
81, 900 of the guaranteed bonds are
to be used to liquidate the existing
cash liabilities, CONTRACT obligations,
for the cancellation of stock and bonds
outstanding. and for the reimburse.
ment of the company for expenditures
already incurred.
The canal is ITO be constructed under
the supervision of United States army
engineers, and the Bonds are to be is
sued by the treasury department and
disposed of at not less than par, IN
payment of the work only as it pro-
crosses The cost is limited to $1i5,00o-
900, and the canal is to be completed
within six years.
Provision IS made for the appoint
ment of directors by the president Of
the United States and for the creation
of sinking fund to eventually cancel
the liability of the government.
The neutrality of the canal is guar
anteed to all nations, with the exccp-
ton that the right is reserved TO pro-
tect it against all Interruptions and At
all times as a necessary connection be
tween the eastern and western coasts
Of the United States.
According to the sworn statement Of
President Hitchcock the expenditures
of the canal company since undertake
ing the enterprise up TO June We're:
For preliminary expenditures inc
dent to procurement of concessions.
$2So,000: for surveys. plant. construc-
ti1n, navigation rights and lands, 81
2S7,13G; for administration and care of
property, $2GS, ,692: cash obligations es-
timatcd, 100000. Total. $5.l36,+2S.
The bond and stock obligations were:
Bend obligations for work done. $G.S5J,-
600, less bonds taken in liquidation
$51S. 800, net bond obligations $6.336, ,501:
stock sold $1,0l4, 800; stock paid for con
cessiona, ST. 2.000, ,ooo; stock issued 10
Nicaragua, $1,000 900: stock to be issued
to Costa Rica. 81, 500, 900; stock paid for
work, s295- 900 Total stock obliga-
ton, $23,471, 800.
This; bill will hardly meet the appro-
val Of the Arkansas Democrats who in
'pilN L4'A4 pip - SCh a oF "a q ~
ton favoring the building and controi- :
ing of the canal by the national gov
eminent. The bill as it now stands
would ensure the construction of the
canal by means of government sup
port and would also guarantee Il man
agemcnt consonant with American in
terests, but it contains provisions for
a sinking fund to cancel the govern
ment's indebtedness incurred 10y rea-
son of construction of the waterway
and in consequence the eventual sep
aration of the government from its
management Respecting this feature
a wide difference of opinion is certain.
There will he those who Will want tn"
government to build and own the canal
just as they want the government to
own and control the railroad. telephone
and telegraph. on the other hand there
will be opposition from thoseWho donot
believe it best for the government to
be concerned in such enterprises, that
they are better left To private
capital and management. Then there
will be many whose view of the matter
Will not depend on preconceived pre-
judice either for or against the social
stc feature of government ownership.
but who will favor or oppose on differ
ent grounds
1t now looks as if the question
would be put TO an early test and some
step he soon taken that will ensure the
construction of this much needed wa
terWay. Moreover it does not seem
probable that the government will
wholly overlook the claims of q COM
pany that has made a beginning under
great difficulties and expended much
money in work that must have been
done by any company or government
undertaking a canal along this route,
which is now generally recognized as
the most feasible. Besides the COM
nany has in its possession the conces-
sions made by the governments Of
Costa Rica and Nicaragua, concessions