The Washington times., 1904-06-12
Faulty Management. Careless or Reckless
Financiering, Could Have No Other
Result Than Utter Failure.

I reduce the depth Of the trench as far
as possible. for the double purpose OF
/ gaining time and reducing expenses.
/ II had thus become necessary 10 admit
/ that the summit level would have 10 be
/ fed BY elevating machinery. For the
| sake Of economy also. provision had
/ been made for locks with a single cham
/ Der. The construction of these locks
was intrusted to Mr. Einel. new con-
tractor.
But it was necessary, furthermore. 10
create the necessary financial resources.
The situation was even worse than il
had been in 1885. In order to restore
the damaged credit Of the company re-
course was had 10 the same means as at
that time. which means were identical
with those which at Il critical period
had rendered the completion Of the
Suez Canal possible.
On the 18th Of November, 1887. NJ. de
Lesseps again requested the government
to authorize him TO -ssue lottery bonds.
At the same time petitions signed BY
the bondholdcrs of the company were
sent from all parts OF France TO the
members of the senate and chamber OF
deputies soliciting the same favor.
On the 1st of March 1SSs, II +. de
Lesseps called an extra general meet
ing Of the stockholders and made known
TO them in detail the new program for
the completion of the canal. On the
! same day IA bill due to parliamentary
initiative provided that the Panama
Company should be authorized to issue
lottery bonds. This bill was taken into
| consideration March &c, 1883, and on the
next day a special commission OF eleven
members was appointed TO examine t.
The report of this commission was
laid before the chamber In it's session OF
April q. 1SSS. The debates lasted three
, days and ended on the 18th of April by
the passage of the bill by a majority Of
156 votes C2S4 ayes and rs noes). The
bill was transmitted TO the senate on
the Goth Of April.
The committees Of the senate ap-
pointed, on the 18th OF May. the mem
bers OF the commission charged with the
examination Of the bill passed By the
chamber. 1t was discussed IN the ses-
sions of June 4 and 8, and was likewise
passed by the senate.
Millions of Lottery Bonds.
1t now only remained to utilize this
law On the 9th Of June NJ. T. de Les
seps made known the tegns of the lot
terry bond loan, which bonds were pub
Icly issued on the 18th Of June follow
ing.
Two billion lottery bonds were issued,
the price Of each being $50 francs,
bearing interest at the rate OF 4 per
cent per annun, all of them being pay
able at 400 francs each by a civil
amortization association and sharing In
semi-monthly drawings. But only s00,-
600 bonds were subscribed for.
This was undeniable proof Of the d.
minution of the credit OF the company
and Of the influence OF NJ. de Lesseps.
This partial failure rendered a new
issue necessary. In order 10 make
preparations therefor Messrs Ferdi-
nand and Charles de Lesseps, IN the
months of October and November. 1858,
made visits and held conferences IN dI6-
ferent parts Of France.
The new issue took place On the 2Sth
Of November. 1t was conditional The
balance Of the bonds, or about 10000
bonds. were offered to the r1blic but
the subscription was not 10 become
irrevocable until 10000 OF the bonds
should have been placed.
Now. less than 10000 bonds were sub
scribed for.
This was for the company then exist
ing, a demonstration OF its inability,
from a financial point OF view, 10 con-
tinue the enterprise which it had begun.
Consequently, NJ. de Lesseps and his
co-workers resolved to withdraw. and
to yield the direction Of the affair TO
others.