The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-08-02
THE PANAMA CANAL.

An Amazing Record of Extravagance-As-
tonishing Facts and Figures.
New York Es ening Post.
On the 3lst of January, 1881. the Inter
oceanic Canal company was organized in Paris
to construct a canal across the Istnmus of
Panama. M. de Lesseps jauntily assured the
promoters of the enterprise that the job could
easily be completed within eight year, and
promised that the great ditch should be dug
from ocean to ocean by the end of 1888, at a
cost Of $l20, 600, 900. Considerably more than
half of the stipulated period has already
passed. and it is interesting to learn the condi-
ton OF affairs.
The meager data furnished by the managers
of the scheme render it difficult to get at the
exact state of affairs. TIE London Financial
News, however. has made a careful study OF the
matter. and III its issue of July L it presents a
clear summary of the results. The last official
statement Of the company brought the balance
sheet up to June, 1883. There had then been
raised by the sales of shares aud debentures
$5l,315,O 600, to which must be added 81, coo, 600
as the value of 10000 paid up shares to conces-
sionaires, and So, l25, 600 as the rebate on de
b%entures, making the total liabilities incurred
$50, 800, 900. The amount of cash on hand ard
moneys due from correspondents was $l4, Co.,
900. In other words, up to June, 1883, the com
pany had paid out considerably more than one
third of the estimated cost of the entire work.
How had the money Comet preliminary
expenses including propaganda of d.. de
LessepS and his friends, had consumed
81. 620, coo 'Colnite AmerIcain," which, the
Financial News says. was really a corruption
fund, and the details Of which it would be
extremely interesting to know, was responsible
for the disappearance Of S., 4CC, 600. Paid up
shares and cash to commissionaires, rebate on
the debentures, financial service on shares and
debentures, interest and other expenses of
financing, aggregate $ll 225. 900, exclusive of
81 SOC, 900 for Offices, including furniture, in
Paris and Panama. and 81, 220, 900 for expenses
of administration III the two countries. The
acquisition of the Panama railway took SIS. 49,
600 more. Here is a grand total Of 500, $50, 600
before we come to the expenditure of a single
penny on the work Of the canal proper. The
outgOes on this account had been S.. 200, 900 for
machinery. tools and buildings, and $3.50, 900 for
other expenses Including salaries). making the
entire expenditure up to June, 1882, $43, 620, 900.
What was there to show for this vast outlay?
Only an excavation of ] JOB, FOB feet out of a total
which cannot fall below 125, 900, 900 feet, and is
more likely to reach $50, 600, 900 feet. That is to
say, more than one-third of the whole amount
allotted for the enterprise had been eZperded,
and less than l per cent. of the work had been
ACCOMPLISHED.
This was the state of things, by the cornpany's
own showing, In June two years ago. The
probable position of the COMPANY at present, and
its prospects for the future, so far AS they can be
Judged from accessible data. are thus presented
10y the Financial News: In September, 1883, NJ.
de Lesseps issued $50, 900. 900 in obligations,
which brought him In $34. 200, 900, and in Sep
tVthcCAp oCf iC SSSuiCu P-o, OUU,CUU Nv tuOtHtT
loan. This made a total OF Sill, 375, 600 cash
raised up to last September, although the total
sum for which the company was liable then
reached 1888. 238, 700. At that time NJ. de Les
seps reported that he had in cash SIT. 100, 900,
more than half of which must have stree been
spent. The conclusion of the Financial News is
that up to June l there had been actually ex-
pended $l04, O33, 900. The excavation up to that
date did not exceed -, 600, 900 cubic metres, the
total on May | being exactly IL. 1916, 500 metres.
Assuming that no lnuSual difficulties ara en-
countered. and that there remain ouiy ll2, 000,-
600 cubic meters to dispose of, the work will
require, at the rate OF progress maintained du-
ring the first part of 1885, no less than fourteen
years longer. Allowing that the present rate of
speed is doubled, seven years more will be con-
sumed. The cost of future excavation, at the
low figure of 81 % a cubic meter. will reach
$40. 600. 900. The improvement in the Chaeres
at Panama and Aspinwall, as estimated by the
canal officers, will require $40. 000. 900; the inter
est charge on sums already raised for seven
years Will be SAG, 852, 500; the expenses of admin
~istration in Paris and Panama can not fall below
$ll POO 600. There must, therefore. still be rails
ed 1920, $50, 600, ON which the interest charge for
the next seven years will amount to $50. 000, 900.
But this is only the net sum, aud 6ebentures
must be issued for a much larger amount.
Heretofore NJ. de Lesseps has had to pay 374 per
cent. as the average discount, and,
allowing the same percentage in future.
the company must incur a liability of 1893, OPS
900 i'll addition to the present $53, 238. 700. which
will make the total nominal cost no less than
$332, $50, 900. Even this makes no allowance for
banking or contingent expenses. which is safe to
say will amount to $50, 900. 600 or $50, 600. 900.
This will make the total liability of the company
nearly 5000 900. 900, and the total cost in hard
cash $3.50, 900, 900 in round numbers.
Having thus figured the cost as nearly four
times, and the period required as nearly three
times, the original estimate of the sanguine pro-
jector. the Financial News proceeds to show
that the estimates of the revenues ERE almost
Al 9 fAn an r t1n uar = na;t 1&
exaggerations OF the promoters as to the mum
Der Of vessels which would patronize the canal.
and adopts 1000. 900 tons as d liberal estimate
of the yearly business, which, at the high price
OF IS per ton, would bring in $50, 600, 900. On
the other hand, the annual interest charge will
reach ga, 15O, 900, and the running expenses
1900, 600, leaving an annual deficit of 81 $50.
900. That seems to us" concludes the Finan-
cial News, Ito be the best possible showing for
Nj. de Lesseps. and that is, we once more repeat,
assuming that the difficulties Of holding the
Chagres at the height, during great freshets, of
100 feet above the canal. do not prove to be, as
claimed 10y impartial experts, truly insurmount-
able; for We really think that the annual def
cheney of 81, 750, 900 is not so important as the
Chagres, which may in twenty four hours de-
stroy nearly all the work of the canal, or, at the
very best. may REQUIRE a tremendous annual
outlay In dredging the canal from the detritus
brought by it with the force of a tropical cur
rent"
The truth about the Panama canal enterprise
seems TO be that it is the greatest tribute ever
paid to an enthusiast by the business world. 1t
represents the confidence inspired by NJ. de Les
seps, and the successful floating of the scheme is
due to his wonderful hold upon the French
nation When he ies-and even an octogenar-
engineer must sometime die-the whole thing
is likely to collapse before the cold figures which
his sprightly fancy eau no longer warm into life.
Grant Disliked Napoleon.