The sun. [volume] (New York [N.Y.]) 1833-1916, 1891-12-09
The Panama Canal.

The Panama Canal.
Is 1t possible that the Panama Canal may
yet be completed, and that the vast amount
OF money invested In the enterprise and de-
rived for the most part from the savings OF
French citizens OF moderate means. may be
rescued from total loss That is q ques-
ton which the stockholders and bond
holders are by no means content to soc an
swered In the negative. They have again
besieged with petitions the Chamber Of
Deputies during the present session. and
the Commission to which the prayer for
relief was referred has made unani-
nous report to the effect that the Govern
ment. while repudiating responsibility.
should influence some great moneyed cor
poraton. like the Credit Foncier. to organ
| lie q new company and resume the con-
struction OF the canal.
The actual condition Of the old company's
| affairs is summed up in tho report. The
company went into liquidation on Dec. Is,
1888. According to the official statement Of
the liquidators. the total receipts from the
sale Of stock and bonds has been, in round
numbers. $2e6. 100000. For this indebtedness
there would be now no security tBatever
from the Government OF the United States
Of Colombia an extension Of the original
concession. which was to expire twelve
years after May IS. 1878. unless by that time
the canal should be finished. It is impor-
tant to keep in view the conditions on which
the franchises granted TO N. DE LEssEps
have been prolonged for period OF
ten years from Dec. 2s. 1890. These condi-
tons are as follows: First. the liquidators
are to transfer all the assets Of the old COM
pany to new association. which on its part
shall undertake to complete the inter-
oceanic waterway. Secondly, tho new
association shall be definitely organized
with capital sufficient for the purpose. and
shall resume the work of excavation in good
faith before Feb. %. 1898 II either of these
conditions remains unfulfilled at the date
just mentioned. the supplemental conces-
sion from the Colombian Government be-
comes null and void.
Only little more than q year is left in
which to comply with tho terms imposed.
and as yet nothing has been dono toward
the procurement OF capital for n new COM
pany. except to ascertain with an approach
to accuracy the amount required. The
liquidators sent to tho Isthmus a COM
mlttee OF engineers. headed by NJ. GUILE
MIN. director OF the School of Points ct
Chaussees. for the purpose OF appraising
tho work already accomplished and COM
putting the cost OF that which remains to
do. Their report placed much lower
value on the assets Of the company than NJ.
DE LEssEPs had ascribed to them. and their
estimate OF tho additional sum needed
was much higher than his. 1t it, in
deed. fair deduction from tho data
set forth by them that TO put the canal In
working order would cost at least $500. OOO,- |
0Oo; and it is not improbable that this |
amount would have TO be increased 50 per
cent. There would. 1t is asserted, be no diff |
nculty in forming new corporation with a |
capital OF even $500 900 900. II its obligations
to the old company were limited TO taking |
over the assets OF the latter at fair |
cnsh valuation. This is perhaps what |
would happen II the official Hquidators
should proceed to sell the property |
OF the bankrupt corporation for the
benefit OF the creditors. But this
is just what the petitions to the Chamber
OF Deputies aim to avert. for from an auc-
tion sale Of the old company's assets the
bondholders would get but very little and
the stockholders nothing. The demand Is
that the new corporation shall assume the
Indictment OF tho old on terms acceptable
to the holders Of the bonds and stock al.
ready In existence. But the annual receipts
from the Panama Canal can be computed
with tolerable precision In view OF the in
come OF the Suex waterway. and 1t Is the
known inadequacy OF such receipts to tho
payment OF even two per cent. on, let us
say. $3.50, 100000. which disinclines French
capitalists to undertake the completion of
the canal, i4 the absence Of Government
guarantee.
II the French Government could. without
pledging Its credit for the payment Of
dividends on stock. or. at least. OF interest
on bonds. persuade any Of the large bank
Ing associations to carry through the enter.
prise begun by II. DE LEssEPs 1t would
have done 30 long ago. 1t Ia anxious to
the multitude OF investors In
In the completion OF the work. but
It shrinks from coming forward openly
In the roie OF an endorser. on account
Of the firm protest made by the
United States. Tho report. therefore,
Of the Commission of the Chamber
Of Deputies is merely perfunctory conccs-
sion to the feelings OF the unfortunate own
prs OF Panama stock and bonds. When the
trainers OF that report expressly forbid the
Government to assume any responsibility.
they strip 1t Of all power Of influencing
French hnanciers.
When the assets Of the Panama Company