178 



COLOMBIA. 



still a liberal dividend for the amount of obli- 

 gations originally contemplated, placed by the 

 writer mentioned at 800,000,000 francs. But 

 it is likely to be at least double the amount. 



A series of articles relating to the canal, 

 which originally appeared in the London 

 "Financial News," was published in the sum- 

 mer in a volume of 248 pages. The author is 

 Dr. J. 0. Rodrigues, who states that the amount 

 of earth removed has at no time even approxi- 

 mately reached 2,000,000 cubic metres per 

 month, but has, on the contrary, never exceed- 

 ed 800,000 cubic metres, and that in May, 1885, 

 it was not over 12,376,000 cubic metres alto- 

 gether. Meanwhile, the amount to be re- 

 moved had swelled in an astonishing manner. 

 In the beginning M. de Lesseps estimated it 

 at 46,000,000 cubic metres; later at 75,000,- 

 000; now the engineers estimate it to be 120,- 

 000,000. He adds that at the time of his re- 

 port only about one tenth of the work to be 

 done had been performed, and this the easiest, 

 in the alluvial plain, where the gigantic dredges 

 could find full play; whereas the cuts, and es- 

 pecially the controlling of the Ohagres river, 

 will present extraordinary difficulties to be 

 overcome. Mr. Rodrigues remarks that in the 

 beginning M. de Lesseps estimated the cost of 

 the canal at 658,000,000 francs, that he subse- 

 quently even lowered his estimate to 530,000,- 

 000 francs, while the International Committee 

 fixed it in 1880 at 843,000,000 francs; that so 

 far shareholders have been assessed 147,600,000 

 francs; that the loan of 1882 amounted to 

 125,000,000, that of 1883 to 300,000,000, and 

 that of 1884 to 193,700,000, together 766,200,- 

 000 francs; and that now a lottery loan of 

 600,000,000 francs is to be floated. 



The following statements concerning the 

 financial situation of the company and the 

 progress of the work are extracted from the 

 annual report of M. Ferdinand de Lesseps and 

 the board of managers submitted to the share- 

 holders of the company at their general meet- 

 ing at Paris on July 29, 1885. 



The general inventory on June 30, 1884, 

 showed the ensuing items: 



ASSETS. 



Expenditure for work proper on the canal ....... 183,845,427 



Real estate, material, and furniture .............. 75,639 41 3 



Panama Railroad shares ....................... 93,878,225 



Assessments that may be called in on shares ____ 147,500,000 



Cash and due the company ..................... 120,963,953 



Total .................................... 621,827^018 



LIABILITIES. 



Outstanding shares ........ .................... 800,000,000 



Outstanding bonds ............................. 280375000 



Various creditors ............................... 26809155 



Sundries ....................................... 14,642,868 



Total ................................. ..... 621,827,013 , 



It was furthermore stated that on June 30, 

 1 883, the available assets represented a sum of 

 187,946,434 francs; that during the ensuing 

 twelve months 60,000 3 per cent, bonds were 

 sold on Oct. 3, 1883, producing 171,000,000 

 francs; and that the resources from other 

 items reached 7,362,103 francs, constituting an 



aggregate amount of 366,308,536 francs. The 

 expenditure for administration and the work 

 done at Panama reached 73,098,679 francs, 

 while purchase of material cost 52,201,194 

 together, 125,299,873 francs. The available 

 balance on June 30, 1884, was consequently 

 241,008,664 francs, but this amount included 

 the 147,500,000 francs of assessments to which 

 shares are liable, but which had not been called 

 in. Deducting these, there were 93,508,664 

 francs of assets actually realized. Since the 

 company was formed, and up to June 30, 

 1884, the expenditure was altogether 354,009,- 

 199 francs for the following items: (1) 93,878,- 

 225 francs' worth of Panama Railway shares, 

 which produced during the fiscal year 5,708,- 

 882 francs; (2) 75,639,413 francs spent for 

 real estate in Paris and Panama; (3) 184,491,- 

 561 francs outlay for administration and work 

 on the Isthmus. 



M. de Lesseps maintains the figure of exca- 

 vation at 120,000,000 cubic metres. He has 

 made a contract for the removal of 62,691,595 

 cubic metres for the sum of 219,295,974 francs, 

 and contracts with two other parties who will 

 excavate the remainder for a payment of 480,- 

 000,000 francs. The report recommends that 

 a 600,000,000-francs loan be made through 

 the issue of lottery bonds, of which a certain 

 amount is to be drawn for every year, the 

 lucky numbers to obtain premiums. A por- 

 tion of the French financial press subjected 

 the report to severe criticism, urged the call- 

 ing in of the assessments on shares due, and 

 condemned the lottery form of the proposed 

 loan. Both shares and bonds suffered a seri- 

 ous decline on the Paris Stock Exchange. 



In September Senor de Harola, a Mexican 

 engineer, sent to the Isthmus to report to the 

 Government at Mexico, acknowledged the en- 

 ergy and science of the French engineers, and 

 expressed confidence in their success. 



When in the autumn unfavorable rumors 

 had been spread in financial circles in New 

 York with reference to the progress of work 

 on the canal, they were emphatically denied by 

 Mr. C. Coln6, secretary of the American com- 

 mission, who declared that work on the canal 

 had not been stopped, but was progressing as 

 rapidly as ever along the entire line of the 

 canal. Seven dredges were being operated by 

 a New York firm, and another American firm 

 had just made a contract for dredging 8,000,000 

 cubic yards on the Pacific side. Besides, an 

 Anglo-Dutch company had taken a contract 

 for 25,000,000 cubic yards at Culebra, the 

 highest cut of the canal. The chief engineer 

 of the canal had just gone to Paris to perfect 

 the plan of operations for next year, and to 

 superintend the shipment of a large quantity 

 of machinery. The ensuing statement was 

 made on Dec. 11 by officials of the company at 

 Panama: " Operations are under way on two 

 thirds of the entire length of the proposed 

 canal. The other third will be the easiest of 

 all to excavate, as it is composed of soft earth 



