The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1909-01-20
BOND ISSUE IN SPRING.
TO PROVIDE FOR DfNIENSE Dr
CREASE IN COST OF THE
CANAL,
over $4,000 900 Already Spent in
i'"hahia--Loc< Canal May Cost
100000, First Est;
mates

LOT the proposed immense bond issua
Is tnat the Administration has at last
ipme to the realization that the Pana-
ma Canal Will cost not less than saO0
| 100000, and possibly half a billion dol
iars' and financiers say that it is well
10 prepare to issue bonds in the
spring that time being considered on
portune because of the expected re-
Vival OF commerce and trade coincident
with the incoming Of the new Admin
| istration.
| The Sl35,OO0,000 bond authorization
has already been exhausted by the
canal expenditures, and hence the
early action extending the limit of
cost of the canal and the provision for
an early bond issue.
| Senator Hopkins, of Illinois. who
offered the bill authorizing the issu-
ance of 100000, 900 Of bonds, is an
Administration Senator and a men,
Der Of the Finance Committee as well
as of the Senate Comittee on interoce-
| anic Canals.
| while Senator Hopkins declares en-
phatically that he does not think the
| canal will cost more than $500, 100000.
the fact that he has introduce a bill
asking for an incrase of the bond is
sue to s500,O0O,000 would indicate
| 0f
nearer the latter figure than the for
| mer.
Senator Hopkins says there is moth
| ing serious in the financial situation
for the canal, and that the Treasury
Department has not yet quite exhaust
ed the entire amount authorized under
the Spooner act. The excess Of ex-
penditures on account of the canal
over the amount of bonds issued has
| been paid out of the general funds of
the Government. But it is not deemed
wise to authorize the Secretary Of the
Treasury to issue bonds.
THE measure is to meet a future
and not present need" said Senator
Hopkins Unexpected difficulties in
the way Of excavation and making
perfect the sanitary conditions in the
Canal Zone have greatly increased the
cost of the canal. The work now be-
ing done is under the authorization of
| the Spooner act. That act did not pro-
vide for the building of the Panama
Canal specifically, but offered an ell
ternative proposition between the
Nicaragua an Panama routes. The
Panama route was chosen under the
conditions named in the Spooner act.
That act limited the cost of the canal
to $135, 900. Now we know a great
deal more about the needs OF the canal
and are able to tell after having dis
posed of goodly part of the work az
a maximum Of the possibilities what
the expenditures will be. l have no
idea that the canal is going to cost
anything like $500, 900, 600, but men,
bers Of the Appropriations Committee
and other with whom 1 consulted sug-
gested that we make the limit high
enough to meet any possible develop
| ments. My impression is that the cost
will not exceed $3OO,OOO,OOO. The is
suance of bonds for the purpose of the
canal has general approval. This
grows out of the generally shared
belief that posterity, which will en-
joy the fruits of the canal, should
share in the burdens Of it's cost of
construction"
In spite of the optimism of Senator
Hopkins it is believed that the cost
of the canal will be very close to
$400, 100000 for an S5-foot level wa
terway, and if a sea-level canal is at
tempted that the cost will be over
$500 100000. The recent report Of
Liuet.-Col. George w. Goethals chair
man and chief engineer of the Canal
Commission, showed that up to May
81. 1908, the total appropriations for
canal construction have been $120,-
96i.46S.5S, and the total expenditures
up to July l, 1908, sS4,572 1856,
leaving a balance of $36,391,47O.O3 un-
der the appropriations for 1908 and
1909 available for the current year. |
None of these figures included the |
$40,000,000 payment to France and |
the s10,000,000 paid to Panama so !
that the total amount authorized up !
TO June l last was over $17O, 900. |
The engineering committee not longer |
than four years ago--February IA, |
19O5-estimated that the cost Of a |
6O-foot level canal would be s17S.-
O13, 4O6, and that a Sea-leVel canal |