The morning call., 1892-03-31
PANAMA CANAL STOCK.
What Captain Merry Has to Say Of the
Alleged Fraudulent Deal.

what Captain Merry Has to Say Of the
Alleged Fraudulent Deal.
A New York dispatch in yesterdays CALL
announced that the veteran Count Ferdi-
nanu de Lesseps, the renowned French
engineer, builder Of the Suez canal and the
chief promoter of the Panama canal, had
been charged by the French courts with
swlndling and breach Of trust. The main
allegation of the complaint is that De
Lesseps and his New York allies watered
the stock to nearly three times its par
value, which, in the eyes of the French au-
tnoritles, constitutes crime hardly second
to murder 1t is stated that De Lesseps and
his allies, through this peculiarly American
deal, profted to the extent of at least
63.OO0.000 francs, or about S12 600 900.
when asked his opinion Yesterday as to
the charge against DE Lesseps. Captain w.
L. Merry, vice. pr esident of the Nicaragua
Canal Company, said:
Before l answer that question let
me give You some figures First OF all,
the Panama Railroad cost $780, 900.
and 1t was stocked at the New York Ex-
change for Sc, 100000, on which it paid from
- TO 10 per cent per cent per annum.
Irenor w. Park, president of the railroad
sold 1t 10 the French Canal Company Ode
1850 10 az thc hCiu| lol &-S,hpO.Obu, gu
which, with increased earnings owing to
the canal construction, il continued 10 pay
even larger percentage. or about per
cent per annum on about S25. 100000
Now as to the deal. L think 1t one of the
finest ever made and IL must have taken
clear heads and shrewd management to con-
summaIe 1T with such immense profits. The
railroad is the very best property in the
possession of the canal company, and is the
only one that pays dollar. As 10 the divi-
a II d f1l, u
value, / know nothing. Park probably
made 100000 or S5,010,000 in the deal,
but how much the others scooped in L
couldn't say.
About this charge of swindling against
De Lessers and others. will say that am
unfamiliar with the French law, but the
Panama Canal Company is an American
corporation, doing business in New York.
and the French authorities will find it a
decidedly difficult undertaking to bring De
Lesseps and the other accused parties to
book outside OF French territory. 1t is a
hard thing for any foreign nations repre-
sentatlves to come into cur courts and
attempt to punish offenders for alleged
crimes committed on cur soil, and il France
thinks she can do so. she will very soon be
convinced OF her mistake. American stock
holders IN this or any other company enjoy
and will be protected in the right to sell for
whatever they can get. and II the buyer
pays three times the value Of his purchase
that Is his own lookout. 1t IS just like a
man selling hOrse-he isn't Obliged to
elaborate upon every imperfection; the
buyer. if he be judge OF horsefesh. is sup
posed TO discover for himself the weak
points of the animal.
Il don't think De Lesseps was inien-
tionaly dishonest lie is an extremely
ambitious and saDguine man. AT the time
he took hold of his pet project, the Panama
canal, he WAS deceived by his engineers
He had no intention of stealing from any
one. De Lesseps was brought up as
diplomat. European diplomacy. you know,
is based en- telling lie TO the best alvan-
tage. The Frenchmen never forget Tailey-
rand's maxim, Language was made to
conceal thought as well as to express it.
DE Lesseps, when pushing his scheme,
did not invariably restrict himself to the
truth but at the same time he was not will
fully dishonest There nothing con-
servative about his statements, but when
urging his project he always employed the
most fowery language in order to present
the matter in as favorable a light as
DossiblP' -