The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-12-26

| IMAM nau Deen ~ nrst Thought. nc suu
that the people OF the United States had
no intention OF interfering with the work,
and that investors could reasonably ex-
poet better return on Panama securities
than they had been able to realize
on their Suez securities, which just then
were selling Mt an enormous premium.
De Lesseps allowed the public to con-
slider the statements set forth in this adj
dress for some months before he again at
tempted to secure popular loan. Mean
while the French newspapers industriously
doomed the project, and the shares OF the
Suez Canal were increasing in value. July
T. 1880, in circular issued by De Lesseps,
on the same subject, he announced the
appointment OF an American committee
ito represent the interests OF the company
in everything that concerns the observance
OF neutrality of the canal, as we find by
Article V. Of the Law Of the Concession OF
Columbia"
November Is Of the same year he issued
a circular repeating the hopeful and san
guine statements previously uttered over
his signature, asserting that his provision
had been fulfilled and that criticisms OF
the project had been overthrown. He
assured the public that contractors who
had already completed several great works
were DESTROYS oil building the canal and
would undertake its construction for 500,-
100000 francs. He again assured the pub
lie that he had the full cooperation OF
great and powerful banking-houses in
America, thus proving, he claimed, rs a
result OF his trip to the United States that
the canal project was regarded here rs with
out political bearing. This circular was
sent all over France TO the willing press,
who bestowed upon II wholesale puilery.
DE Lesseps asked for subscriptions for
60O,0 900 shares Of the canal stock at the par
value of 500 francs, total par value OF
500, 600, 900 francs. Enthusiasm had been
80 well worked up that the loan was sub
scribed for twice over, the amount Tor
which the public applied being nearly
COG, 900. 600 francs, or $1,000, 900. As De
l.essops was certain that half that amount
would build the canal he was Obliged to
decline many OF the offers. The total num-
Der OF subscribers was lO2, go, of whom
80, s37 subscribed for five shares or less,
and OF whom only fourteen subscribed for
as many as 900 shares.
At the iirst general meeting OF the COM
pany, on January 81, 1881, De Lesseps
announced that all the engineering prob
lens had been solved, that opposition on
the part of the United States had been
iOrestaled and overcome, and that work
upon the construction Of the canal would
Immediately begin, aud would be pushed
to as speedy conclusion as possible.
At the second general meeting Of the
company, on March 8, 1881, De Lcsscp9
= said: "There il still an agreement made
= with the American financial group which
7 has charged itself with representing the
q company's Interests in the United States
which brings us liability Of six annual
payments, as follows 3, 100, 600 francs soon
, after the organization OF the company,
q 100000 francs one year thereafter. and
; 100000 francs at the end OF each year
for the next succeeding i've years" The
American group was composed OF Richard
w. Thompson, Secretary OF the Navy
= under Hayes; Nathan Appleton, the bank.
ing-housc Of the Selgmans, and kindred
I connections. The amount OF the liabili.
! ties OF the company TO this group until
1886 was -, 400, 600 and no doubt that
amount was faithfully paid. As the Ollie,
Of the Panama Company, under the same
: management, has since continued in til;
5 city, II Is naturally 10 be presumed that
. new contracts on terms quito rs favorabl,
e were made by DeLcsseps with the Amcri
I cans at the expiration OF that year.
All the money which he Losseps raised
, for operations at Panama or In connection
with the eompany's business elsewhcr,
was raised by popular loans. lie cxpcctet
In 1879 20 be able 20 construct the cana
: for about sll, 600, coo which grew to so,
100000 when the company had liirly
started. WORK having been begun. II VIZ
found by 1852 that sl00,O0O,OJ0 had beer
spent, and that the only thing 10 show fo
= il was q waterway twenty feet deep ans
seycnty.two feet wide ut the bottom. In
stead OF the IA feet which the concession
! stipulated. Tho expense Of operation n
Panama did not, probably, exceed half o
I, this sum, although Il was necessarily large
y The American Dredging Company ani
sub contractors nc Panama teaped nearl,
u all the benefit Of expenditure ut tho poin
Of operation.
n But there were jobbcrs Of contracts II
!. Paris who made great deal OF money an
= the company was put to many other OK
|, penses which would hardly be- CONSIDERS
4 legitimate In this country in private en
= tcrprisc. Il would probably DO impossibl
: 90 ascertain Just how much money u
. lasseps wis obliged 10 pass over TO tn
:, syndicate OF traders aud bankers who hay
i manipulated the company's stock In III
Paris market II may afford him som
I, satisfaction, however with a crash In th
z company's affairs impending. 10 feel tina
I, traders and bankers who helped then
= selves 80 freely 10 the money which IN
u people poured into his treasury are not
~ sadaed with 10000 unstable loitcr
!. bonds which will no doubt materially r,
10 ducc their profits.
10 lac canal company has incurred sine
a IT, organization liabilities Of SilS,u1O,OOl
Almost from the beginning the compan
m was obliged 10 put ont is securities at
" discount. Tho amounts Of cash whic
Ia went 20 the credit account of the compan
al ON It's books from 1882 10 the present tim
a. larc NJ follows IN pounds stCrling lSS.
IA. cl.a15. OO0, being a discount OF l2b y,
Il. cent; 1888, 90, $4,000, being q discount {
NJ a. per cent 1915, eG,O,S 40, being
rs discount Of 3li per cent; 1886, GN,Olp,i H
being a discount II - per cent; 1887, q
m $50 100, being n discount Of Oh per cent
q. 1854. sl3,3i5,OO1. being discount Of
al Der cent. The total amount OF cash th,
ho realized by the company In rcturn for III
Al issue OF evidences 81 indebtedness OF sils
Ial pj0. 900 u clS,25l, 3iS, or s2lG.
bo thus cost ihc canal company 500, 5000,
M Ina commissions, discounts. and like chang
~ 10 acquire a working capital 81 s2l0,OOC
ID. OO0.-
10. 1fo only important available asset
lg. the company u the Panama Railroad, u
~ shares Of which. worth nj par, si0,O10,V
vi and selling ut only little above par b
nc cause the company sought them, were u
" loaded by American shareholders on u
4 = 4 ~ ~