Daily Yellowstone journal., 1888-06-24
THE PANAMA CANAL.
win 1t Ever he Finished?-The Outlook
Very Discouraging.

Very Discouraging.
Will il ever be finished? This is the
one single, absorbing question now being
asked in the financial circles of Paris, and
no satisfactory answer is being made to
it, not even by De Lesseps himself. The
failure Of the last loan was a much more
serious affair than was at first reported.
De Lesseps called for Si5, 600, 900. but
the amount realized was only SIS. 900, 900,
although he had promised TO repay $780,
000, 900 and allow 10 per cent. interest
on what already had been advanced.
The amount actually realized, however,
was just sufficient to pay the interest and
other debt services on previous loans,
leaving nothing whatever for work on
the canal itself. When, therefore, il is
just barely possible to raise money enough
to pay interest on what has already been
borrowed. the outlook is black Tor any
further advance, and the fate of the
whole canal business is as good as settled.
But this is not all. So many reports
have been circulated one way and an
other in regard TO the enterprise-so
many that were false, misleading or i'm
possible-that the French government
itself sent an eminent financier, Leroy
Beaulieu. to examine into everything
connected with the work and report
accordingly. This report, just made
public, has startled De Lesseps' stock
holders almost beyond the power Of
speech. and made not a few of them
wrathful and accusing.
IF the work goes on no faster says
Beaulieu. ethan it hasin 1887, it will take
twenty years to remove La Culebra, a
hill that is almost a mountain. II it goes
on three times as fast it will take six and
a half years to finish the canal under the
best possible circumstances"
Upon the subject Of finances, upon
which he is better able to speak than
upon that of engineering, his figures have
amazed every one. The total obligations
of the company on Aug. IS, 1887, were
1884, 900. 600. for which 5000, 500, 900 Of
actual money had been obtained, the diff
ference of $l34, 500, 900 representing the
amount lost by discount, brokers COM
missions and other such like expenses.
The annual expense Of administration
and debt service-that is, the expenses
outside of any work done on the canal
were 500, 900, 900. Therefore. should the
work last six or eight years, and NJ.
Beaulieu is unable to see how 1t can be
done in any shorter time, it will pile the
debt up 10 the enormous figure Of $780,
GOO, 900 or more, the average interest on
which would be S54, 900, 900. all of which
the canal would have TO earn before the
stockholders could handle a single dollar
in the way Of dividends. to say nothing
of the outlay that might have TO he made
annually to keep the canal in good navi-
gable order.
When DE Lesseps undertook this 81
| gantic work, he estimated its entire cost
at SEQ, 000, 900. Its obligations today
are 1894. 900, 900, and it is vet from some
six to eight years of completion. There
seems TO have been no head to the whole
business front beginning to end. Waste.
ignorance and extravaganza have been
frightful. The route of the canal itself
appears neve to have been properly gone
over in an engineering sense or s~cientifi'
cally surveyed. Typographical skill ap
pears never to have been evoked in a sin.
gle instance to take advantage Of the
natural configurations of the ground. II
has been like a great hole into which
money has been collected and dumped by
the millions. There is no more money
and not likely to be any 'lore If the
French Government does M take hold Of
the enterprise and finish it, then most
surely will it never be finished. -KanSa.
City Times.