The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-19
SUEZ CANAL FINANCES.
British Governm ent's Good Income From
Its Investment.

George W. Ddp,s IN a letter to Senator Morgan.
The original capital of the Suez Canal
company. issued before 1870, was 40o, 600
shares at 500 francs each, but these securi-
ties do not answer to our definition either Of
stocks or bonds, as they partake of the char
acter of both, Under the terms of issue
there was a condition that the shares could
be redeemed in certain proportions at stated
periods, and that when redeemed they should
no longer be an interest bearing security.
but should continue to constitute an asset
to the original owner Of the shares to the
extent that he should participate in all sur
plus benefits earned by the COMPANY; but
the interest provided by the statute per
cent.-stopped when the pond should be
called for redemption.
On December 81, 1904, there were 3s5 ,4sO
Of these shares still outstanding, and they
continued TO enjoy participation in the sur
plus benefits or profits of the company But
the interest on the residue of these bonds
had ceased: that Is to say. on Il 600 shares.
The other outstanding securities of the Sur2
Canal company are bond issues. as follows:
First, an issue Of 400. 900 shares, at 81 francs.
put out in order to take up unpaid coupons
on the original issue, this being really TO make
good a deficit arising In the earlier years Of
the operation of the company, when its reye-
nues were small. These bonds were entitled
still unredeemed and outstanding is 32, alQ, $40
francs. or the loan of lS87-6S. which was in
on the date above specified 50, ieO,e 800 francs,
In 1871 a further issue of 100 franc shares was
made. OF which are yet unpaid ,61s 900 francs
Of which 24,575. no francs remained unpaid
at the end OF 1904.
In 1887 there was a still further loan .]neFotiE,
still remaining unredeemed is Of 49,. 450frauCs
The aegregate Of all these issues, stocks
$50, 500 900. This is all Of the capital stock
OF the Suez Canal company, except thai there
remains an obligation resting on the co,'"-
profits TO the original founders, constituting
al those who formed the original co,mpfny
ehsf M iate dc hss sre d fx9iSj'f into T ,%o. "m 6on ma
each now receives about one-half as. much
s%aasISn as the owners of each original share
The only reserve of which I can get any
trace maintained by the Suez Canal COM;
pany is one Of 5000 900. which is required
by the statute to be maintained SO as to equal
lze profits and losses and 70 provide for emer,,
gencies, There is another fund Of small
ment fund disbursed i for the benefit ut Of en-.
ployees OF. long standing and Of recognized
merit But the aggregate Of this fund Is
The last quotation for suez Canal stock
that have seen Is for May, 1900, when I was
p pS9 sdls at t Of tb ho. .TSrs as l. az 5ad f franSs' v3 As t the
readily see that these securities are Of 900
per cent. premium.
shares was a net Of l4i francs per share. This
Included the % francs e per cent. interest
referred to above as having ceased on certain
OF the shares OF the original stock shat had
been called in and redeemed. The ner cont.
Of dividend was therefore about ?s. Tn"
tonnage passing the Suez Canal last wear
was, IL, 0oo, 900 net tons, and the toll rate was
~ francs per ton.
Under. the terms OF the concession, which
extended for ninety-nine wears from the date
Of completion of the canal-ise9-all tho
securities will have been retired and can.
celed on maturity, and amortization pro-
visions are arranged to that end.
The government, OF England paid almost
Beaconsfeld from the Khedive. The dIvl-
dend on these shares last year for the benefit
OF the British Government was fo33. 900.