The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1891-06-23
is THE PANAMA SCHEME DEAD7

Little information is possessed by the
public regarding the present status of the
Panama Canal scheme, and the latest news
on the subject is of interest. Every one re-
members that on March g. 1885, NJ. de Les
seps and his associates closed contract
with the Colombian Government, by which
they agreed, in consideration of certain
valuable concessions, to build the canal aud
open it for traffic not later than March 3.
1892. In the event of their failure to fulfill
their covenant the unfinished works were
to revert to the Government OF Colombia.
The company went to work according to
agreement. and actually spent S2S0,0O0.O00
of hard cash in excavation and construction,
but the expense proved so far in excess OF
the estimates that, when this money was
exhausted and engineers reported that only
one-ffth of the work had been done, the
stock holders refused to contribute any more
money. The company went into liquidation.
An agent of the liquidators, Lieutenant
Wyse, was dispatched to BOgota to feel the
pulse Of President Nunez in regard to the
probable course Of his Government. He
was told that, on March 3, 1892, Colombia
would enforce the contract of 1880, would
occupy the unfinished works, and advertise
for proposals to complete the canal. To
this the agent Of the French liQuidatOrs re-
piled that if Colombia pursued this harsh
course his principals would fight, and dis
pute the right of the Government to take
possession of the cOmpany's property. Such
a litigation would obviously occupy several
years. Lieutenant WySe offered. as an al
tentative, proposal that President Nunez'
Government should extend the time for the
completion OF the work till March 3, 1902.
After long negotiation the alternative was
accepted, with the condition that a new
company, based on the ruins of the De Les
Seps company, with sufficient capital to re-
sumo work in a serious and regular manner,
should be organized not later than February
%, 1898, and that in the meantime the
lquidat0rs should take care of the works
and buildings and faithfully pay the wages
of the men employed as careLakers. If
these two conditions were not complied with
the liauidators bound their principals to sur
render the works as they stand to the Gov
eminent of Colombia, without litigation on
behalf Of the De Lesseps company and
without interference by the Government Of
France. The parties who have subscribed
and lost $3.50, OOO, 900 in the enterprise have
thus an opportunity Of trying to save some
thing out of the wreck If they will put up
more money.
They would perhaps be more ready to do
so than they now seem to be if they could
form reliable conjecture as to the prob
able sum which will be required to finish
the canal Unfortunately, De Lesseps' esti-
mates have proved 50 erroneous that no
faith can be placed in any future guesses
which he and his friends may put forth.
American engineers have figured that only
one-hfth Of the work has been done. That
fifth has cost $3.50, 900, 600. At this rate it
would take S1,120,0 600 more to finish the
JOB. This figure is undoubtedly eXtravagant
The chances are that the liquidators Will
be unable to live up to their bargain, and
that some time between now and February,
1898, the Government of Colombia will enter
into undisputed possession of the work.
The President will then advertise for pro-
pOSalS to complete the canal, and it is posi-
bic that a company may be formed in En-
gland for the purpose Such. an event
would revive the controversy of 1880. Can
this country afford to permit the Istbmus
of Panama to pass into the hands of a Euro
pean power? And if it cannot. how can
the transfer be prevented? Colombia is an
Independent nation, and enjoys a perfect
right to contract with any foreigner for the
construction of a canal through the isthmus.
If the United States protested she would
reply: If you object to Europe building the
canal, on the ground that that would be
violation of the Monroe doctrine, why don't
you build it yourselves?