The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-01-22
WHY PANAMA Is FAVORED
It is FoIty.Fise Millions Less in Es.
timated Cost.
1874 6 MILES SHORTER Ffoa SEA TO SEA
These Are Amorg The Advantages That Are
Pointed Out. Roosevelt Sends the Re-
porto Congress With Simple
Letter Of Transmittal.
(By the Associated Press.)

Letter Of transmttal.
(By the Associated Press.)
Washington. d. c., JAM 2O.-The Pres
tent toay sent to Congres. with a mes
sage simply transmittal, the supplement
tai report of the Isthmian Canal Com
mission, in which it is unani-
mously recommended that the offer of
the new Panama Canal Com
pany to sell all of it's rights, property
and unfinished work to the Unit
ed States for s4O,OOO,OOO be accepted.
They orderer the report printed in the
Congressional Record and also as a doc
ument.
The report gives in full the CORE
spondence Which has passed between the
commission and the Panama Canal Com
pany 81 Paris, which includes a cable
grap from the President of the board
dated January as follows:
THE new Panama Canal Company de-
clares that it is ready to accept for the
totality, without exception, of it's prop
erty and rights on the isthmus, the
amount of $4,000, O0O the above offer to
IcIIldiIl III lOTCc until March 4, 1910.
The report statesN that the "totality"
mentioned in this message includes fif-
ty-six parcels of land amounting to 3d.
900 acres, which cover nearly all the
ground required for the actual construc-
ton of the canal. 1t also includes 2,431
buildings used for officers quarters,
hospitals, storehouses, ETC., also an i'm
mense amount of machinery consisting
of floating plants, tugs, dredges, locomo-
tives, cars, etc. 1t also includes all ex
cavation work accomplished upon the
main canal lines amounting to about $780,
100000 cubic yards. The value of the
work already done is estimated at $22,-
S95,02S less contingencies estimated at s4,-
$40, 005, leaving an aggregate of $27,-
49t,033 The offer also embraces all of
the existing 10000 shares of the Panama
Railroad and Canal Company except ], 100
shares held by individuals in Europe and
the United States. Against this proper
ty are mortgage bonds amounting to 49,
4S9, 900. OF this amount the canal COM
pany owns sS71,0O0 1t also holds in it's
treasury 81 ,064,OOO, subject to the sale of
cancellation, leaving in the hands of the
public $1,504000. These bonds bear Az
per cent interest. There also are out
standing $996,0O0 six per cent. sinking
fund bonds. The transfer also will in
clude three passenger and freight steam
ers of 1000 tons each. The railroad
company owns an undivided half interest
in the islands of Macs, Cuebra, Perico
and Flamenco, in the Bay of Panama,
the Pacific Mail Steamship Company be-
ing the joint owner. Besides it's right of
ways terminal, wharves and considerable
areas of land, it owns nearly the whole
of the town of Colon, the houses there
being constructed under lease.
Summing up the commission finds the
total value Of the property to be as fol-
lows:
Excavation work done, 1927, 474 033.
Panama Railroad stock at par S.
$4,000.
Total, s36,36O, 1898
Add ten per cent to cover omissions,
S3,639,G67
Total, $40. 100000.
The estimated cost CT constructing the
Nicaragua Canal is $45, $50, 704 more than
the cost of completing the Panama Canal.
The stimated annual cost of maintenance
and operation is 900 greater at
Nicaragua than at Panama. The Panama
route would be 134.6 miles shorter than
the Nicaragua route from sea to sea,
with fewer locks and less curvature, both
in degrees and miles. The estimated
time for deep draft vessel to pass
through the Nicaraguan Canal was placed
at 80 hours as against II hours for Pan
anna, these estimates being the time of
actual navigation and not including de-
lays for winds, currents or darkness. If
the passage were made without Interrupt
tion, about a day could be saved by the
Nicaragua over the Panama route by or
binary steamers handling commerce be-
tween our Pacific ports and all Atlantic
ports and about two days by steamers or
the same class trading between our gulf
pcrts and north Pacific ports. The time
advantage of the Nicaragua route would
be less in the case of fast high powered
steamers, the use CT which is increas
ing.
Between Atlantic ports and the west
coast of South America the Panama
route has the advantage of about two
days and between gulf ports and the
west coast of South America. the Panama
route has the advantage of about one
day. The trade of the western coast of
South America is very important one
witch has hitherto been in European
hands. The offer received from the new
Panama Canal Company to convey all its
property. including all its interest in the
Panama Railroad to the United States
will make The estimated cost OF the two
canals as follows:
Nicaragua $3.50, $4,000 Panama, siSf,-
22S35S.
The transfer would give title to all the
land now held by both the Panama Canal
Company and the Panama Railroad Com
pany which covers nearly all lands re"
CURED for the construction of the canal.
The land held by private parties at Mica
ragua must be acquired and its acquisi-
ton may prove expensive.
The question whether the new Panama
Canal Company can make a purchaser a
valid title to the property formerly be-
longing to the old company. its predeces-
sor is considered at length. The canal
company is absolutely prohibited to cede
or mortgage its rights under any consid-