THE HUMMING BIRD. 



[January i, 1891 



In cash 14 millions 



740,000 Bonds, with prime, 

 unsold, in the hands of the 

 Liquidation at 85 frs. ... 62 „ 



Remainder of the Shares of 

 the Panama Railroad which 

 have not been mortgaged... 50 „ 



900,000 



126 „ 900,000 



126,900,000 

 Hotel in Paris valued in June, 1887 2,005,951 



Total 128,905,951 frs. 



To this sum of 128,905,951 frs. must be added the 



evaluation made by the last Society of Engineers, sent 



in 1890, of all the properties in Panama. They have 



been estimated at 450,000,000, which gives a total of 



57 8 >9°5>95 I francs. 



Now I will give a list of the Creditors. 

 250,000 Bonds of 500 frs. emitted 



at 437 frs., 50 109,375,000 



600,000 Bonds 3 per cent, emitted 



at 285 frs. 171,000,000 



477,387 Bonds 4 per cent, emitted 



at 333 frs 158,969,871 



438,802 Bonds 6 per eent. emitted 



at 450 frs. ... ... ... 206,469,000 



258,887 Bonds 6 per cent, emitted 



at 440. frs. ... 113,910,280 



Total 759,724,151 frs. 



Besides, there was another issue of Bonds, 6 per 

 cent., payment warranted by a deposit of French 

 Rents, and lastly, an issue of two millions of Bonds, 

 with prime, of which 740,000 remain actually in the 

 hands of the Liquidation. But these two Issues, 

 having a capital deposited which guarantee their 

 repayment, cannot figure as Creditors. 



We have then, not taking any account of the 

 450,000,000 of the Properties situated at Panama 

 (excepting the shares of the Railroad Co.), a capital 

 of 1 28,905,95 1 frs., easily realisable against Creditors for 

 the sum of 759,724,151 francs. 



Consequently, even if the Society was declared 

 bankrupt, each bond would receive about 1 7 per cent, 

 on their price of issue, and probably more, because a 

 good many Bonds of all Categories have been reim- 

 bursed, and consequently must be deducted from the 

 Creditors. Now, if we take in account the estimated 

 value of the 450,000,000 francs for the property and 

 works made in Panama, the result would be : 



Assets 578,905,951 francs 



Debts ... 759,724,151 „ 



which would permit to repay about 76 per cent, on 

 the price of issue of all Bonds, 5 per cent., 3 per 

 cent., 4per cent., and 6 per cent, first and second issues. 



Therefore the 5 per cent. Bond issued 



at 437 frs. 50 cent, is worth at least 74frs.37|cents. 

 the Bond 3 per cent, emitted at 285 



frs. is worth , 48 frs. 45 „ 



the Bond 4 per cent, emitted at 333 



frs. is worth 56frs.6i „ 



the Bond 6 per cent, emitted at 450 



frs. is worth 76frs-5o „ 



the Bond 6 per cent, emitted at 440 



frs, is worth 74frs.8o „ 



Although these sums would recuperate only a very 

 small part of the loss entailed by the original Sub- 

 scribers, they are very different to the prices pretended 

 to be the actual prices of the said Bonds, viz., to-day, 

 the 1 6th of December the 



Bonds 5 per cent, are quoted 26 frs. 

 „ 3 per cent. „ „ 19 frs. 

 „ 4 per cent. „ ,,19 frs, 75 cents. 

 „ 6 per cent, not quoted at all. 



One thing is certain, that if you sent a large order 

 for buying several thousands of these Bonds, I doubt 

 very much if you could get them, even after waiting 

 several weeks or even months for the delivery of same 

 by the broker. 



I remember that some months ago myself and 

 friends gave order to buy a few, and we were obliged 

 to wait many weeks before they were delivered to us. 



Knowing a great deal about the Panama Canal from 

 its beginning, when I met in Panama, in 1876, the 

 Comité d'Etudes under the direction of the active 

 M. Napoleon Wyse Bonaparte, up to the present 

 time, I would advise all the holders of Bonds to be 

 firm, to keep by them all what they have, and to 

 unite. Then I am sure they could get back a great 

 part of their money, if not all. 



Firstly, I suggest to ask from the Liquidator, the 

 repartition of all the bonds, with prime, now laying 

 in the hands of the company, to be divided a priori 

 among the Bondholders. 



Secondly, to have an assembly where should be 

 discussed the question of selling all the assets in 

 Paris and Panama, either for cash or by exchange of 

 shares at a price satisfactory to both parties, and in 

 case of not appearing such Company to realise as 

 soon as possible all the assets existing in Paris in 

 cash, properties, prizes gained by the 740,000 bonds 

 with prime in the hands of the Liquidator, as also to 

 realise the shares of the Panama Railroad and all 

 properties realisable, and divide the sum resulting 

 of these sales, a priori among the Bondholders. 



But it would be still better to have a good arrange- 

 ment with a new Company which can very well give 

 50 per cent, of the price of issue of the bonds and 

 make a splendid business of it. 



If a company should buy the Canal from the Bond- 

 holders at that price, which would amount to a little 

 less than 400 millions, it is very probable that they 

 could finish the work with 600 millions. The total 

 cost would be 1,000,000,000 francs (1 milliard). 



At that price I have not the least doubt that it 

 would be a very profitable business for the Investors. 



The Panama Canal a few years after its opening 

 will give extraordinary results, which wilLastound even 

 the Shareholders of the Suez Canal. 



I know a great many of the Bondholders who would 

 take at once some shares in the new Company, and 

 are quite willing to receive shares of a new Company 

 in payment of their Bonds. 



The nth of Februar)', 1889, a little time after the 

 declaration of the liquidation of the Company, I 

 wrote two similar letters, one to M. de Lesseps, the 

 other to Mr. Brunet, the liquidator. 



The former never replied (a rather strange pro- 

 ceeding) ; the second replied the 14th of February. 



