Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1902-07-18
MOULD BUILD TIE CANAL
Proposition Is Made to President
Roosevelt by New Yorker for
Financing the Enterprise.
CAPITAL STOCK TO B. s5oo,ooo,ooo.
Majority Of Capital stock to no
of the United States Governments
President Mny Examine Propo-
sltf0n Mt His Leisure.

Oyster Bay. July fA-President
Roosevelt Saturday received an Off
iM communication from James Mad
ison Lively. OF New York. proposing
plan to finance the proposed 18TH
Ipian canal Mr.. Lively suggests that
his proposition "will bear inspection
and test to the last ANALYSIS" MIR.
Lively details the steps necessary to
be taken prior TO the actual beginning
OF the isthmian canal project and then
proposes:
ITO place In a designated depository Of
the United States government a majority
Of the capital stock of the Canal Construc-
ton company, together with q deed of
trust for 100 years. approved by the attor-
ney general az the United States. This
deed and the majority. carrying control OF
the company's stock, would be the basis Of
the bond issue. Provided tho companys
stock should be ssON0OO,0 900, its directors
would resolve to make son 10000 OF It
preferred stock and guarantee to pay an
nually dividend or interest OF ~ per
cent. payable semi-ennually on the pre-
ferred stock. for 100 yeare, into the treae-
ure or depository.
The company could then issue bonds for
SlOD,VpJtVVv, unuSF tHe form Oh NR6S 10
termed by fnanciers the colonial System,
benring three per cent. interest. payable
semi=annually at tho United States treas
ury. The fuHds would provide a sinking
fund OF one per cant OF the Issue, to be
deducted annually for the redemption OF
the bonds at stated periods at the option OF
tho holders to tho amount only OF money
FOG such redemption in tho treasury. TO
secure the bonds. the company would de-
liver to the United States treasury the
5000 eco OF preferred stoc1s.
I'm the distribution OF the money re-
ceived In the isthmian canal flna ncial prob
lem, It will be observed that In tho process
soGO,00O,oD OF preferred stock bearing ~
per cent. dividend payable seni-dnnually Is
paid into the depository designated by the
United States government. The bond Is
sue Is to be S150. OOO,0 coo, which bears an On
nual interest OF three per cent, payable
substantially ard one per cent. as the
annual sinking fund. based on the face OF
the bond issue for 100 years. There Is still
one per cent. based ON the bond issue, that
is retained by the national treasury to be
disbursed by the United States commits
sion appointed by the president This fund
can be expended by the commissioners In
paying the salaries OF the commissioners.
maintaining and keeping the government
forts, that may be required to protect Its
trusteeship, and also to pay the tonnage OF
the government vessels through the 18TH
milan canal. The entire tonnage that will
seek passage through this canal from all
the nations OF the world. as well as the
ships of citizens Of the United States, Will
thus be required to pay fixed rate per
tonnage for shipping of all kinds. ard
thereby rule Uniform to all nations be
adopted"
At his leisure the president may ex-
anime Mr.. LWely's proposition, but it
is not at all certain that he will fol-
low the suggestions embodied in it.