, 1888-04-07
THE PANAMA CANAL.
PARIS, FEB. 90.

PARIS, FEB. 90.
The report to be read by NJ. de Lesseps
at tO,mOrrOw's meeting of the shareholders
of the Panama Canal Company dwellS on
the national character of the undertaking,
994, 900 Of the ! 100000 shares having been
originally subscribed for in France. 1t
explains that the estimated cost of
1900, 0O0, 00Of. has been exceeded, chiefly
on account of the payment of interest to
share and debenture holders, the attacks
on the canal having caused higher terms on
borrowing, and the loss Of a years work in
the isthmus. Certain contractors, it is adj
ded, have bpenintimidated by theimplacable
war wagtd against the canal. The Gov.
ernment was asked in 1885 to sanction an
issue of lottery bonds, in order to tighten
the burden of interest. This application
has been rep eated, and it lies with Parlia-
ment to give the Company the means of
completing the work on normal conditions.
The report explains that the insufficient
result of last years operations was due to
the want Of n~avvieS, as at SupZ in 1865
but that this difficulty has been met by
substituting machinery for manual labour.
It expresses a hope that Parliament will
sanction an issue of lottery bonds, and the
conversion into such bonds of the existing
loans, so as materially to reduce The total
cost of the work. Such sanction was given
to the Suez Canal Company in 1868, and
might reasonably be expected on behalf
of the Panama enterprise. The hesitation
of the French Government in 1876 had
allowed half the property in the Suez Canal
10 pass to the British Government. "Will
our present adverSaries." asks the report,
"succeed in getting the entire Panama
Canal for nothing I"
The report states that the canal will be
opened in 1890, by means Of locks, the
highest being not more 30 metres above
the level of the sea, and that the c0ntrac.
tors are bound in the most %peTemptOry
way to execute the work by that date.
Statistics are given Of the revenue and out
goings of the canal when in working order,
the result being a balance of u ,000, 0O0f.
available for dividends. Certain Deputies
having expressed a desire that the repay
ment of the debentures and the payment
of lottery prizes should be secured indrpen-
IDENTIFY of the profits of the canal, the loans
will be increased by the amount necessary
for buying and depoSitipg French Re"tes,
so as to guarantee the repayment of all
debentures, together with premiums or
lottery prizes.
InaSmuch as Parliament Will require q
certain time for considering the question,
and as the slightest suspension of the
works would delay the opening and be
made a handle of by adverSaries, a third
series of bonds will be Immediately issued,
guaranteed by a purchase OF French Rentes,
as above described. This partial issue will
enable the works to be vigorously carried
on, aud will give Parliament time to
examine the application for an authorize
ton of lottery bonds.
The action Of the American Senate in
passing, on the eve of the Panama Canal
meeting, the Bill Incorporating the Mica
raguan Canal Company, is very significant,
rs no act of incorporation can be grant
ed by Congress for companies formed in
other States, except where the object is
deemed useful to the whole country.-Times.