The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1902-07-13

announced that a canal a niveau, or
tide level canal, could be completed for
that sum- So confident was he of the
accuracy of his calculations that he in
vited men of prominence to attend the
opening Of the canal, which was set for
1888.
First Survey at Panama.
On Feb. q, 1881, the first detachment
of canal employees arrived at Colon. Sur
yeys were made, and the building of
camps, hospitals and other necessary
buildings followed. In 1882 the Panama
Canal company purchased the Panama
Railway interests charge accumulated
between 1882 and 1888, while nothing like
the progress on the canal which had been
anticipated had been made. In the au-
tumn of 1888 further borrowing became
impossible. and then a crash which shook
the financial world. On Jan. 1, 1889, the
company was forced into liquidation.
This event created a ferment throughout
France. no less than 100000 French share
holders having been induced tn invest in
the stock of the company, largely through
the appeals which had been made to their
patriotism A receiver was appointed by
the court Of Seine with unlimited powers.
In 1890 the receiver sent a commission
Of French and other engineers to Pana-
ma to report on the actual condition of
the work. The report was discouraging.
Not more than a fifth of the proposed
work had been done; valuable plant es-
timated at S30000,000 was rusting away
and useless; the tide level at Colon was
filing in, and the harbor was Swallowing,
owing to the cut.
In 1891 the government Of Colombia
granted to the Panama Canal company
an extension of ten years from 1898 in
which to finish the contract, provided
operations be resumed before February,
1893 In November, 1892, a member of the
haye, GREETED a profound sensation in
Paris by declaring on the floor of the
chamber that the Panama Canal COM
pany had obtained exceptional privileges,
which it had used for the purpose of de-
frauding investors, by the bribery of no
fewer than 100 deputies.
The demand for an investigation of the
charges was of such force and insistence
as to be irresistible, and the ministry de-
cided to submit the whole question to a
committee. Following this decision. Bar
on Reinach, q banker accused of being
the instrument or agent of much of the
corruption of the company, died sudden
ly, and it was alleged that he had pois-
oned himself.
Amid a popular clamor, such as Paris
had not known for many years, the in
vestigation was carried on, and the dis
closures before the investigating commit
tee indicated that the operations of the
canal company nad Deen Sllmed with
fraud. 1t was shown that the Panama
company had bribed deputies and jour-
nalists on an extensive scale in order to
cover up Its shortcomings and leave the
way open for further imposition on its
trusting shareholders and creditors.
In February, 1893. M. de Lesseps. his
son Charles, and some of their colleagues
were sentenced to various terms of I'M
prisonment for fraud and bribery At
the time the blow fell M. de Lesseps had
passed his eightieth year. A few years
before he had married a young woman,
and all France had extended congratula-
tions RI him 11non the birth of a child to