New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-01-13
PUTCANAL COST HIGHER
EXPENSE NOW FIXED At
ABOUT $500, 900 900.
Bill to Increase Panama Bond Issue
to $500, 900, O,OOO-No Change
an Plans.
an Plans.


Washington. Jan. 1.-THE administration has
arrived at the conclusion that the total cost of
the Panama Canal will approximate $500 oO0-
600. and in order to provide the funds for it's
construction. TO enable the Secretary of the
Treasury to dispose of the necessary bonds to
the greatest advantage and to compel future
generations. which will enjoy the benefits of the
canal. TO share in the burden of expense SEN
ntor Hopkins to-day introduced a bill so amend
ing the SpOOner act as to increase the author
lied bond issue from s135O00, 900 to $500. 600 600
The prospective increased cost is due to the ex-
pense of civil and sanitary administration the
increased width Of the locks and probably to
higher cost of labor than expected, although
there were comparatively slight data on, which to
base estimates when the Spooner act was
adopted.
There is no immediate necessity for this Iegs-
latton, as the total issue Of Panama bonds thus
far amounts TO only S54 .631 $50 out of an au-
thorization OF S135 100000. The expenditures
for the canal have, however considerably ex
ceeded this sum. having been paid out of the
general funds in the Treasury. With a large
deficit this year and the income of the govern
ment in proportion to its expenses diminishing
1t is deemed proper at least to authorize large
bond issue, so that If it becomes desirable either
through depleted treasury balance or because
Of unusually favorable conditions for the sale of
bonds. the Secretary of the Treasury place
the Panama bonds on the market in such guam
titles as he may deem best.
Senator Hopkins said definitely day that
the increased authorization had no reference to
the gossip regarding change from lock 20
a sea level canal; that Colonel Goethals was
positive there was no for such change.
and that no one connected with the administra
tion expected that the engineers who will aC-
company President-elect Taft 10 the isthmus
would find grounds for recommending any mate
rial deviation from the present plans.
The bill Is 10 meet future not present
needs" said Mr Hopkins to-day Unexpected
difficulties in the way Of excavation, the neccs-
sty OF making the Canal Zone absolutely sani-
tary and the enlarging Of the locks have in
creased the cost of the canal over the prelimi-
nary estimates. The work now being done is
under the authorize tion of the Spooner act You
will remember that act was adopted before H
route had been decided on, and provided for the
construction Of the canal by either the Mica
ragua or the Panama route.
''In accordance with the terms OF the Spoone'
enactment. the Panama route chosen and
the work begun. of course. We now know a
great deal more about the requirements, both
engineering and financial. than could have been
known then / have no idea that the canal will
cost over S3Oo00O,0oo but members of the APP
propria tions and the TnteroCeanic Canal com
mittees have urged me 10 put the maximum linn
itation $.OoI0.QO0. to meet all likely
emergencies. OF course, 1t will be necessary To
issue bonds to that amount if less is needed.
The issuance Of bonds to defray the expense of
the canal is generally approved Of. for the be
lief is entertained that posteTity. which will
JOY The advantages Of the great enterprise.
snould share the burden with the present gen
Grafton OF taxpayers"