Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1881-01-18

drawn picture which tor recklessness and
hight of coloring rather recalls the vision
airy era of the great South Sea Babble than
the comparatively sober and prosaic enter
prises OF the present day. To begin with,
a table of probable market prices is given
for the Panama Canal shares in 1856, 1891
and 1895, and in this table &c the investor
sis promised that his investment, beside
drawing per cent. while the canal is
"under construction, increases in value
shy 1886, when the canal traffic
sis to begin, to more than five times the
"amount put in; that in the interval be-
"tween 1856 and 1895 the yearly dividends
"shall increase in amount, beginning with
"I05 francs for 1856, and run up to 800
"francs in 1895, or to A per cent. on his
Investment while if he then desires to
"sell, each share, costing originally 500
=" francs, will be worth $500 francs, or
eleven times what he paid" To forsify
this brilliant statement comparison is
made with the shares of the Suez canal,
the inference drawn being that as the lat
ter have advanced greatly in ten years, the
| Panama shares would do the same. But
Captain Phelps shows that in reality the
Suez shares have not made the advance
claimed, and that in fact the earnings of
that canal were less in 1879 than in 1876.
He shows also that a systematic effort has
been made to bull the Suez shares, for the
purpose of floating the new project, and
that to this end the figures have been
manipulated with very little regard to the
actual facts. When the cost of the Panama
canal comes in question Captain Phelps
shows that the estimates of Lesseps are
altogether inadequate. For example, he
puts the entire cost of the canal at 600,-
600, 900 francs, in which are included five
per cent. interest to shareholders during
the construction, and 100000 francs
for the purchase of the concession.
Now Captain Phelps shows that accord
ing to the statements of Lesseps
and his engineers, made in New York,
the cost for excavation alone will be $780,
600, 600 francs, though the price fixed by
them is only So cents per cubic yard. The
cut for several miles will have to be from
200 to 500 feet deep, and all the material
taken from it must be hauled away. Then
there is the cost of the dam regulating the
Chagres river, the tide-locks and break
waters, all of which have been estimated
at 1877, 600 600 francs. Thus the engineer
ing work alone would cost 767, 1000, 600
francs. Captain Phelps allows so per cent
for contingencies, which, taking into ac-
count the deadliness of the climate, the
danger of floods, ETC., is moderate enough
This would demand 3S3, 500, 600 francs
more, and brings the total estimate for en-
gineers' work to /, $50. 500, 600 francs, or
say $3.50, 100, 600. To this must be added,
for interest on installments, SCI, 4S0, 600;
for commission and expenses of placing
capital, and for contingent items outside of
engineering expenses, SIC. $4,000; for
purchase of concession, g, 600, 900; for
private lands taken, $40, 900, 600; for pay
ment to Panama Railroad Company, $780,.
600, 600; total cost in round numbers,
1896, 600, 600.
Captain Phelps claims that though &C.
cording to the figures of Lesseps and his
engineers the work will cost three times
what the company declare in their pros
pectus, yet that he has not placed the cost
nearly high enough. But while these
estimates have a particular interest for
investors, the inquiry into the propositions
of the company for making the canal pay
heavy dividends concerns quite another
class, namely the producers. In effect a
modest toll of IS per ton is all that NJ.
Lesseps expects to ask from the farmers
of California and the shippers OF the rest
of the world. The gorgeous promises
which he holds out to European investors
are all based upon the theory that the
owners of the canal will hold the COM
merce of the world by the throat, and
will be able to extract from it what they
please. Eight dollars a ton on every
pound Of California wheat is the pleasant
prospect held out by this philosophical
protector. Nothing less will enable him
to make good his own carefully cooked es.
Inmates. Much more would be required
to make the canal a paying investment
if the estimates of Captain Phelps are
even approximately correct Thesetolls are
moreover demanded in order to make good
the hopes held out to the fortunate possess
ors of what are called founders shares
peculiar class of certificates which are in
vented for the purpose of enriching, with
out any risk, the fortunate band of broth.
ers who devised this marvellous enterprise.
II. however, nothing less than IS per ton
will satisfy Lesseps, what will he do when
the Southern Pacific Railroad is open to
tide.water on the Gulf of Mexico? II is
evident that canal which requires such
| tolls to reimburse its cost can never COM
pete with the new transportation route
now entering upon its final stages, Les
seps Gays it will take eight years to build
his canal. Long before its completion,
therefore, he will find that the tolls he now
talks of are impossible, and if the Mica
ragua route should also be built, and the
ship canal of Captain Eads, the enormous
sums sunk in the Chagres valley will in all
probability be thrown away. With such
prospects, with such evidences of reckless
and unreliable estimates, and with such
fatuous dependence upon impossible condi-
lions, the Panama Canal Company promises
to go down in history a worthy parallel to
George Laws stupendous work of the i'm
agination.
mr. G1MoRE's CHINESE BILL.
Assemblyman Gilmore has introduced
bill which provides that the Chinese in
California shall he accorded only snch