Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-04-13
A Practical Business Enterprise.

A Practical Business Enterprise.
1t is significant fact that the ques-
ton of expense in the construction of
the Panama canal, does not appear to
have occasioned much discussion or to
have called forth any criticism. And
yet this momentus project calls for an
expenditure that would have appalled,
the fathers of the Republic. Be
fore work begins at all under United
States auspices s50,000,000 will have to
be paid out-s40, 100000 for the rights,
equipment and title of the French
company now at work on the great
inter oceanic waterway, and $10,000,000
to the Columbian government, as a
consideration for the rights and priv
ileges which it cedes to this country
in the treaty which will be. submitted
to it's Congress for ratification the lat
ter part Of this month.
1t is estimated that the actual con-
struction of the canal from the point
where it will be left by the French
company, will call for a further out
lay of $150,000.000. These are GER
tainly large figures; but the amount
would not seriously phase this rich
and powerful country of ours-even
if it We're obliged to pay. it in
a comparatively few years. One rea-
son why the financial part of this great
work has aroused no apprehension
in the public mind is doubtless due to
in part to the general understand
ing that the money necessary to build
thirty year two per cent bonds-and
in part to universal conviction that this
water way-once opened to commerce
will be a money making enterprise
from the very start.
The original expenditure of $50,000,-
900 will, probably, be paid out of the
present treasury surplus-so that the
annual interest charge on the bonds
that will be issued on account of canal
construction will amount to only So
SOC, 00O-not a serious matter by any
means to the people of the present gen.
Grafton and one that-with the gigan-
tic strides of our country in popula-
ton and wealth--Will scarcely be no.
ticed at all by the generations to come.
| Now let us consider briefly what the
canal itself should be able to do in
meeting the financial obligations, grow
| ing out of it. OF course figures on this
subject are all based upon estimates
but it must be remembered that they
are the estimates of eminent engineers
| who have devoted years of personal
work to the careful and detailed inves-
| tigation of every problem to be solved,
and every difficulty to be overcome.
| These estimates are believed to be con-
servative-and they predict a bust
ness of 100000 tons in the very first
year of the canal's~-practical operation
with a constantly increasing tonnage
in all subsequent years. The ton rate
on the Suez canal is 50, which, if APP
| piled to the Panama canal would make
it's annual income s14,OOO,O0O. Assum-
ing however, that the rate should be
| fixed at the very moderate rate of 81
per ton-we should still have an an
nual income of s7,0OO,OOO per year. De-
duct from this the $3,500,0O0 a year
required for interest charges, and the
$1;s0UE00O year which is estimated as
an outside figure for operating ex-
penseS and we will still have $4,000, 900
to be carried annually to the sinking
fund and held against the maturity of
the bonds.
So much for first year estimates. 1t
| is confidently believed, however, by
| those best qualified to judge, that the
growth of business on the Panama ca
nal will easily reach 100000 tons
| d year, in less than decade after it is
opened to the worlds commerce. If
| this should be the case it will be seen
| that it would considerably more than
pay for itself before the maturity of the
bonds issued for it's construction, even
allowing nothing for the compromising
of interest on the sinking fund.
In view of this outlook it is not sur
prising that the American people are
entertaining no anXieties on account
of the big canal. They recognize in it
Il gigantic, but entirely practical BUSH
ness enterprise--one that will more
than pay it's way from the day that it
is put in actual operation.
Tho Attach an Tradifiop