The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1871-08-19
The Condition of the sue1 Canal.

The progress OF the Suez Canal has been
watched with natural interest by the cotton
growers of the Southern States, who may
now. witt. the first annual report before
them, Judge for themselves how far the
great work is likely to affect them.. This
report, though quite as satisfactory as could
have been expected, does not realize in any
respect the expectations Of enormous traffic
upon which the estimates Of the projectors
OF the enterprise were based.
From the opening OF the canal'to the end
Iof May last-a period OF sixteen months
the total number. of ships which passed
through was sl3, with an aggregate tonnage
OF 745, ,s37 tons, and carrying passengers to
the number of 40 374- This is very far
below the original estimates, which placed
the tonnage received for the first year at
1000, 900 tons, and although the traffic has
shown steady increase since the opening,
the arrivals for the present year do not war
rant the belief that the total amount will
equal 1000, 600 tons. The failure OF the ex.
pectations OF the promoters in the matter OF
traffic accounts for the fact that the compa-
nv was last year unable to pay the interest
on its mortgages, which amount to about
81, 900, 600 per annum, besides the sinking
fund, which must be provided for from sur
plus earnings. But il oil these expectations
had been realized, the company would not
be much better of, since traffic Of
], 600, 00O tons would not have yielded rev.
enue sufficient to pay the heavy current ex-
penses OF maintenance and operation, and
pay the interest on its bonded debt when due.
The managers OF the company have, Of
course, plenty OF excuses to render for their
inability to meet their financial obligations,
the principal one being the disturbing effect
of the war upon commerce; but the only
good reason which they have 10 present is
that they over-estimated the tonnage move
ment by the Suez route, and, consequently,
over-estimated the earnings OF the canal.
The shareholders and bondholders will,
therefore, have to pocket their losses for the
time, and wait for profits until the increased
tonnage OF the canal shall insurea revenue;
great enough to enable the company to meet
| its liabilities and pay dividends.
AS far Us the canal is concerned, the reve-
nues now earned are sufficient to cover the
cost Of maintenance and repairs. An an.
nual tonnage Of 100000 tons would cover
this, 30 that there is already small margin
OF surplus for the debenture holders. To
free itself from its present financial difficult.
ties, the managers are. discussing the
practicability Of borrowing money for pres
ent necessities. The plan proposed by the
directors is to borrow about $4,000, 900 to
clear off encumbrances and pay their way
to the end OF the year, after which they hope
the increase OF traffic will be sufficient to
meet all demands upon the treasury Of the
company. The calculation is based upon q
traffic that will yield revenue OF 1900, 900,
implying about 100000 tons OF shipping.
All such calculations are, Of necessity, mere
ly speculative, and II there is any deficiency
the successive borrowings to cover success
sive deficits would add new complications to
the present financial embarrassments OF the
company. The London Economist, discus
sing this important question, suggests that
as the viceroy Of Egypt is the principal
shareholder, perhaps the wisest plan would
be for him to put an end to the form Of q
company, assume all debts and manage the
enterprise as government affair.
AS to what has been accomplished during
the past year, NJ. de Lesseps says: 1.-The
"canal has, been dug out along its whole
s.length OF about 100 miles, in its normal
ssbreadth at the water.line OF from 65 to lO7
"yards, to more than 26 feet in depth
'ttroughout; that is to say that, in order to
"be sure Of having depth OF rs feet every
"where, and in order to diminish the eXpen-
''ses of the early years OF the canal, the
neutrality-suspicious. in the greater part OF
''the distance only left off working when
sthey had reached depth of about nine
"yards. The curves have been made less
"sharp, and stations, which are placed at
"intervals Of l72 yards, allow larger ships to
"pass each other. No less than fourteen
"arge ships passed certain point in one
"day without inconvenience.
This paragraph disposes OF some OF the
objections urged against the canal, chiefly in
the columns OF the English press. 1t re-
mains only to keep bondholders and miscel-
laneous creditors at bay until traffic in
creases. The public, in any case, may feel
confidence in the perpetual maintenance OF
the work, as it would be to the advantage OF
the Great Powers to keep the canal open
even at some cost to themselves. Thanks to
the Protectionists, there are no American
merchantmen worth speaking Of, and it is
not probable that the United States will be