The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-06-10


the advantage of the Nicaraguan route
is now nearly two days. The Nicaraguan
route would be the more favorable one
for sailing vessels. because Of the un-
certain winds in the bay of Panama. A
canal by the Panama route will be
simply a means Of connection between
the two coaches. While it has been
highway OF commerce for more than
800 years, and a railroad has been IL
operation there for nearly 30 years this
has erected industrial changes Of little
I consequence. The natural features q
/ the country are such that no consider
able development is likely to occur as
a result of the construction and opera
ton Of the canal.
The cost of completing the two
canals was given and a valuation was
made of the value in completing the
canal of the work done by the Panama
Canal company. After this report was
made public there seemed to be a panic
among the members Of the Panama Canal
company. and in great haste a PROPOSE
ton was made. finally offering the en-
! tire property at a valuation placed upon
1 it by the commission. Taking up this
/ offer of the Panama Canal company,
| the commission in January OF this year
/ prepared a supplementary report in
/ which some marked changes occur in
/ the conclusions given as compared with
the conclusions in the former. report A
close examination will show that many
/ items that were mentioned favorable to
] the Nicaraguan route are omitted, and
| that additional argun ents in favor Of
/ the Panama route are inserted, and ad-
I ditional emphasis given to certain adj
/ vantages proposed by that route.
REGARDING THE PANAMA RE
PORT
Now, Mr.. President, while have the
| highest regard, respect and esteem for
1 the members of this commission, there
are some extraordinary things, it seems
/ to me, in the figures used by which they
arrive at some of these conclusions. /
I desire briefly coU the attention
/ Of the senate to these matters. I cannot
/ help thinking that the open character
! of the country and the visibility of the
work actually done unduly impressed
/ our commission, and that the idea Of
/ saving some money and getting q bar
1 gain was allowed too much to influence
/ their judgment and Obscured other mat
i teTs of vital in pOrtance. In the pre-
( liminary report which was made in
] November, 1900, the valuation Of the
work of the Panama Canal company is
I as follows.
! Canal excavation, S21, O2O 1856; Gatun-
clio diversion, 81 125. 600; railroad diver
/ sion -four miles, $500, 900; total, S22.
/ AS, 1885, contingencies, 20 per cent, 44S9,
! or; total, S26. 934, 1853. Panama railroad
] stock at par, million dollars; aggre-
| gate, S33, 1874 463
! It was stated there that the value of
! the French work is greatly reduced by
/ the fact that the spoil banks on the
/ Atlantic maritime section frequently
come within the limits of the enlarged
canal now estimated for. 1t is the uni
versaI practice in determining the cost
1 of work to be done to add a certain
/ percentage for contingencies. because
/ for safety it is always deemed better
! to provide a margin for the unforeseen
/ difficulties which may have to be en-
! countered or overcome. In buying a
4 piece of work to be utilized in q new
or greater work, the doubtful element
Is of different sort. In that case the
purchaser, in order to be safe.ll ust nee
! essarily count on certain contingencies
4 that viii prevent the application of the
/ old work as fully and completely and
/ with as much value as may be implied
/ by the first estimate. Consequently it
would be the part of wisdom and pru-
dent business discretion to deducta per-
/ centage for contingencies, all of which
| would have a tendency to reduce the
value of the work to the purchaser. IN
/ stead of that our commission for some
reason, which has not been satisfac-
tOriIy explained, although the infOrma-
ton was sought in the hearings before
/ the commission, has added 20 per cent
to this estimate This estimate was
! materially changed in the final report,
/ and the figures there appear as follows
! Canal excavation, $4,000, 1856; Chrages
| diversion. s17s, 1856; Gatun diversion. ST.
396. 1856; railroad diversion -four miles).
$500 600; total, go, S95 02S. Contingencies,
20 per cent. S4.579. DOS; total, $27, 474. 033-
Further on in the report, taking the
excavation done with the 20 per cent
the amount is $27 .033; the Panana
railroad stock at par, Sc, $50, 800; maps
drawings and records, 2 million dollars
making q total of $36, $50, 1913.
Now, by an extraordinary hbera1ity
to say the least, 10 per cent more of this
total amount is added, being $3.50 66I
making a total OF 40 million dollars. OF
this last 10 per cent added to cover
portion added as a part of the previous
percentage of 20 per cent added to coYe5
contingencies.
Certainly, Mr.. President this seem.
8 very remarkable and unusual way K
/ estimate the value Of property which i
being purchased. It was clearly shown
and stated by members Of the commits
sion that the Panama authorities ex
hibited a complete schedule of proper
/ ties naming everything which coull
possible be of value: and why Their
should be So, $50 600 added to cover omis
sions is ineXplica bic. It seems ais
strange, Mr.. President, that million
dollars should be allowed for maps
drawings, and records. It is almost i'm
possible to see what value maps, draw
ings and records of abandoned and use
less plans of a smaller canal and of
different class of work altogether, coul
possibly have to US in the completio
on the new scale and plans contempla
ted by our commission The governor
of the United States has spent severa
millions of dollars in making explora
AAOAS Win JSy drawings ana record
Of various routes. It will undOubtedl
have to prepare new maps, new draw
ings and new records Of any work Whic
may be undertaken. We cannot depen
safely upon any of the old data. bu
r must begin absolutely from the groun
up with the new work
eIn the estimate of the Panama rail
? road we also encounter some remark
able Inconsistencies, as it seems to ms
E The Nicaragua commission, after
f60TOuRh examination of that rovfa &c
timated the cost of a double track rail-
: road, ample for all purposes as an aux
, Hilary in the canal construction, at $50
2 GOO mile. The isthmian canal commits
sion, apparently possessed with a super
{ abundance Of caution, estimated tn
same work precisely at $4,000 a mill
Certainly no railroad contractor In tn
country, and I know by actual CONVEX
4 satiOn with many Of them, would fail I
see that this was an ample allowance
, and s1ficiant TO nroHIde for a1-aru nos