Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1909-12-28

It Is announced that the Suez Canal
Company has contaminated an agree
ment with the Egyptian Government
whereby its franchise has been extended
for an additional period of forty years,
with the result that 1t will not expire
until tho year zoos. By the original
compact the concession ran for forty
nine years, or until 1868, on which date
the canal and all Its appurtenances, with
out any payment or consideration ut any
kind, were to have become the Govern
ment's property, but that surrender con-
stituted the only payment made by the
coucessionaires for what has proved to
be the most valuable franchise In the
world. This was because at the time
when the canal was first projected BY
the sanguine and irrepressible De Les
seps, serious doubts were generally en-
tertained as to the commercial success
OF the undertaking. Few fnanciers
thought that the canal could be operated
at profit, and 1t should be remembered
to the credit of E1-Empress Eugene
that it was her support which furnished
De Lesseps with an opportunity to test
the value of his plans.
English capitalists steadfastly refused
to take any stock in the scheme. They
held aloof, confidently anticipating Its
failure, and it was left for the French in
vestors, usually cautious and conserva-
tive to fault, to supply the necessary
funds. These are the circumstances
which rendered it difficult or impossible
for the Khedive Ismail, with the best
will in the world, for his unbounded "x-
travagance left him in constant need OF
money, to get any better terms than
those stated, in addition to the large
block of founders stock received by him
as a present, and the embodiment In the
charter of clause whereby the company
was forbidden to distribute dividends in
excess of rs per cent, was the occasion
for much irreverent merriment. Yet the
canal made money from the start, and it
has been necessary several times to re-
duce the tolls in order to keep the net
earnings within the limit prescribed by
the charter. It will not have been for
gotten what a sensation was produced
by the news that Lord Beaconsfield had
purchased the khedive's holdings for
about $40, 100000. What was called bis
audacity was severely condemned and 1t
was said that he was not justified in tax
ing such risk with public funds.
That was in 1875. To-day the shares
he bought are worth about five times the
price be paid for them and are yielding
an annual income of $500, 600. 1t will
be understood that under these circum-
stances the company could afford to
pay handsomely to get the franchise ex-
tended, and it has done so. By the new
compact the Egyptian Government Is to
receive cash bonus of 20,000,0 900 in
four annual installments and in 1921 it
will share in the profits on rising
scale, beginning at 4 per cent and attain
ing to ~ per cent by 1868. After that
and until the end of the concession, the
Government is to get half the profits
| with the sole restriction that the COM
pany's share shall not be less than
SIC, 100000. Thus If the funds available
| for distribution should in any year be
less than S20,OOO.0O0, the company will
appropriate $40, 600, 900 and the Govern.
ment will get the rest, which Is a liberal,
but not an excessive, return for forty ad-
ditional years of golden opportunity.
These facts lead one to wonder
| whether the Panama Canal will ever
make similar record. There seems to
be small chance of it at present, but that
is what was thought of the Suez enter
prise, and TO declare 1t impossible would
| be rash. -Philadelphia Inquirer.