Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-10-16
MONEY FOR THE CANAL
Proposed to Put All in the
Expense in Bonds.
PLACE COST ON FUTURE
SECRETARY SHAW'S DESIRE IN
THE MATTER.
PLACE COST ON FUTURE
Believes That the Generations That
Burden of Construction.

While it is too early to gauge congress
sional sentiment in what will doubtless be
the administrators recommendations re-
garding Panama canal bond issues, it is
by no means sure that the Lawmakers will
care to reverse their decision to pay $780,
OOO,COO out of current funds and authorize
bond issue of $135 100000, by providing
a new bond issue to recoup the government
for the $6O,O0O,OO0 already expended Sec
rotary Shaw's desire to do this arises from
the feeling that Panama expenditures would
be simpler before the world, If met en-
tirely by bond issues, and also that the
future generations, these that will the
canal. should pay for it rather than the
generation that authorized it. The con-
gressionaI objection to this plan Is based
upon the feeling that, as revenues are now
running, 1t would be an invitation to ex-
travagance to add s6O, 600 900 to the general
balance. and would be undesirable to divert
so much from the channels of trade. Con-
gress, from most indications, would prefer
to leave the arrangement as 1t is.
Increased Bond Issue.
The situation is further complicated by
the apparent necessity of an increased bond
issue for general construction. How large
the increase Will be cannot be known def
initely until the board of advisory en-
gineers. now returning from the isthmus.
makes it's recommendations. If a sea-level
canal should finally be adopted, the bond
issue would have to be nearly double. Con-
gress contemplated in the act the con-
struction of canal at sl35, 100000 in adj
dition to the cost of the French property
and the right of way. This sum will be
inadequate. Even If the sea-level plan be
not adopted, 1t is almost certain that the
summit level recommended by the Walker
commission will be considerably reduced,
with corresponding increase of expense.
If the locks should be made for forty
foot draft instead of thfrty-five, this would
contribute in the same direction.
The administration will try to get this
style of the canal Is decided upon. The
present law Is somewhat vague as to the
Presidents authority, and 1t is possible
that 1t may be desirable to make contracts
for the whole work in the fiscal year which
opens July 1. The Spooner act authorizes
ton. construction, defense, etc, of the ca
nal which would apparently leave him a
free hand. did not the next sentence recite
that "appropria tions therefor shall from
time to time be hereafter made, not to ex-
coed in the aggregate the sum of $135, 000,-
600 if the Panama route be adopted 1t
seems a reasonable constructions that the
| tract is thus limited. At all events the adj
ministration will so contrue the law, since
contractors would not bid on the most fa-
vorable terms were there any liability of
defect in their claim. If the engineers de-
cision as to the style of the canal should
| that would be further objection to adding
the sixty million dollars to 1t, furnishing
material for a democratic charge of ex-
| travagance, even though all parties Joined