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The True Northerner
Paw Paw, Van Buren County, Michigan
What is this article about?
The U.S. Senate Foreign Relations Committee, led by Senator Sherman, has completed and favorably reported the Nicaragua canal bill, guaranteeing $100 million in company bonds for construction while adding provisions to increase company obligations and U.S. government security, including stock cancellation, extended bond maturity to 1953, a sinking fund, and more presidential appointees to the board.
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Greater Security Given the United States than in the Original Bill.
The Nicaragua canal bill, which has held the attention of the Foreign Relations Committee since the beginning of the session, has at last been completed, and was favorably reported by its author, Senator Sherman. The new bill, according to a Washington correspondent, is drawn on substantially the same lines as the bill reported from the committee to the last Congress, including, as it does, a proposition to guarantee bonds of the company to the extent of $100,000,000 to aid in the construction of the canal. The new bill, however, contains some additions which increase the obligations of the company as well as the security of the Government. For instance, in the second section the real and personal property and franchises of the company are included in the liabilities. In the third section it is provided that all of the stock heretofore subscribed for or issued shall be called in and canceled; that all bonds issued shall be redeemed and canceled and that all outstanding obligations shall be satisfied before the act takes effect. The dates are changed so as to make the bonds issued Jan. 1, 1893, and to make them mature in 1953 instead of 1911, as is proposed in the original bill; and they are also made redeemable at the pleasure of the United States after 1913.
The section requiring the company to execute a mortgage to the United States as security for the guaranty is amended by the addition of a clause requiring the mortgage to contain a provision for a sinking fund for the payment of the bonds at maturity. In addition section 6 of the old bill provides that if the company default in the payment of interest or in other respects before the canal is put into operation the right of foreclosure shall at once attach in favor of the United States. In the last section an amendment is made so that ten instead of six of the fifteen directors shall be appointed by the President of the United States, not more than five of whom shall be appointed from one political party.
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Washington
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bill completed and favorably reported by the foreign relations committee; includes u.s. guarantee of $100,000,000 in bonds with enhanced security provisions such as stock and bond cancellation, extended maturity to 1953, sinking fund, foreclosure rights on default, and increased presidential appointments to the board (10 out of 15 directors).
Event Details
The Nicaragua canal bill, under consideration since the session's start, guarantees company bonds up to $100,000,000 for construction. Amendments add company obligations including inclusion of property and franchises in liabilities, cancellation of existing stock and bonds, satisfaction of obligations before enactment, bond issuance on Jan. 1, 1893, maturity in 1953, redeemable after 1913, mortgage with sinking fund, immediate foreclosure on default before operation, and appointment of 10 directors by the President.