People's Pilot, Volume 4, Number 1, Rensselaer, Jasper County, 22 June 1894 — MILLIONS IN STOCK. [ARTICLE]

MILLIONS IN STOCK.

The United States Will Control the Nicaragua Canal. Washington, June 20.— The Nicaragua canal bill is practically completed. Following is a synopsis of its main features: It provides that the old company shall call In and cancel all its stock, pay all outstanding obligations and contracts, and when it shows to the satisfaction of the secretary of the treasury that it is free from all obligations he shall subscribe for $70,000,000 worth of stock. The directors shall issue that stock to the United States, 'and also $1,000,000 worth to such person as may be selected by old stockholders as a bonus. The company shall then issue no more stock. The terms of the present directors, except the two representing Nicaragua and Costa Kica, will terminate, and the old stockholders shall name one director and the president of the United States shall name twelve to serve for six years. This number maj T be cut down to eight before the bill leaves the committee. Not more than one-half of this board shall be members of the same political party. An accounting will bo had with the old stockholders as to the amount they have expended. and when this claim is proved to the satisfaction of the secretary of the treasury stock equal to this amount shall be issued to them. This stock shall be non-as-sessable and the government reserves an option to buy it at any time by paying not to exceed its par value. No dividend shall be declared on this stock except on net earnings, and then it shall not exceed 4 per cent. The salary of the directors is fixed at $4,000 per year. An officer of the United States engineer corps shall be chief engineer in charge of the construction of canal. It is the intention to have the work to begin oh both ends of the canal at once. The bill will provide for the issuance of $70,000,000 of bonds, to be disposed of as the work progresses. The total capital stock of the company will be $83,000,030, of which $7,500,000 will be held by Nicaragua and Costa Kica, $70,000,000 by the United states and the balance by the old stockholders.