THE PANAMA CANAL. PAINFUL SCENES AT THE COMPANY'S OFFICES. London, December 14. M. LESSEPS WEEPS. THE CRASH COMES.

Te Aroha News, Volume VI, Issue 340, 6 February 1889, Page 4

THE PANAMA CANAL. PAINFUL SCENES AT THE COMPANY'S OFFICES. London, December 14.

M. LESSEPS WEEPS.

THE CRASH COMES.

The Paris corrsspondent of the " Daily News" thus describes the extraordinaryscenes (of which you will have heard by cable) at the offices of the Panama Company lasb Tuesday and Wednesday :—: — "Iwenb this afternoon to the offices of the Panama Company in order to try and judge how the new loan was being taken up. The public hall was crowded with the subscribers, among whom were many ladies flushed and excited, but willing to stake their last penny on fche hope of lefcrieving their fortunes. They wore like desperate gamblers whose hopes rise highest when their losses have been greatest. One lady neaily fainted on hearing from a man just from the Stock Exchange that 500 franc shareshad fallen to 140. She said she had invested 12,000 francs, or nearly all her savings, in these shares. Soon the crowd became so great that many had to scramble oa the tops of tables. The greatest animation prevailed, I wae not long in perceiving thai the persons present belonged probably without exception IoM. deLesseps's veteran public. In fact, they themselves did nob seem to indulge in the hope of new recruits joining their ranks. They were themoie determined, therefore, to take in hand their own rescue. Strangers met and mutually strengthened their faith with words of comfort. The story was told of an English engineer who was at Panama a couple of months ago on his way home from vSan Francisco, who was impx-essed beyond description by what he saw of the workings. Then the bear speculators were denounced as the cause of all the evil. They were Prussians in the pay of English and American capitalists who were planning to wrest the canal from France, but their game was really too transparent. Besides which the Bourse quotations were merely nominal, as was shown by the case of a man who, having bought a couple of shares, found the utmost trouble in getting them delivered to him. However, this loan was sure to succeed, and then stock would go up 50 or 60, and where would the gang of bear speculators be then ? This conclusion, delivered in a tone of unbounded confidence, was received by the listeners with a peal of laughter. " A man w ho ventured toexprcesdoubls as to the possibility of the Canal found the place too hot for him. After he had left, the lady declared that he was the first adversary of the canal she had ever seen, One man said that be had called yesterday on a high official of the Panama Company, who said to him, ' How do you know but that the Credit Foncier may take up the loan with a mortgage on the canal V It must not be thought thai all of M. de Lesseps's supporters are in as hopeful a mood as those I saw at tho office. Quite a crowd of the disappointed were assembled on the Boulevard Montmartre. One of them expressed their feelings when he said that he had lost half his savings, and that he Avould not be bled any longer. A pamphlet on the Panama Canal was sold today on the Boulevards in large numbers. It shows up M. de Losseps's inconsistencies ever since 1879."

Yesterday there was even a greater crush than on Tuesday at the offices of the ; Panama Company, the public consisting exclusively of M. de Lesseps's veterans. The scenes aheady described took place over again. About four o'clock the noise was suddenly checked by the appearance in the hall of M. de Lesseps. Tie climbed on a table and said: "My friends, the subscription is safe; our adversaries are confounded. We have no need for the help of financiers. You have saved yourselves by your own exertions. The canal is made." M. de Lesseps was then so overcome that he wept. The 200 or 300 persons present received this communication with transports of joy, and for a t.me there was nothing but cheering, weeping, and mutual congratulation. Everyone was allowed to shako hands with M. de Lesseps and address him with words of sympathy, confidence, love and admiration. After the excitement had somewhat abated, the news went round thai 410,000 bonds had been subscribed In Paris, and about aa many in the provinces. Marseilles alone figures for 86,000. M. do Lssseps having then retired, an oftical announced that the lists which were to have been closed yesterday at six would be kept open until Saturday at noon. The distracted lady whom I mcD yesteiday (we are quoting the "Daily News" correspondent) recognising me, came running op to mo and gave vent to her feelings in ner\ous contortions of the face, and as soon as she was able to speak said to me, "I must run home and bring back some more money." Many other persons renewed their subscriptions in spite of the difficulty of getting clerks to attend to them. If, as JM. de Lesseps announced, the greater part of the loan has been taken up, it would still be rash to shout "victory." The loan, even if entirely covered, would bring in only £15,800,000, from which various expenses should be deducted. The charges to bo met are : Two years' interest on the bonds pending the completion of canal, £7,200,000; 23,000,000 cubic metres of earth to be removed at 8a a metre, £10,000,000 ; 10 locks, contracted for by M. Eiffel at £5,000,000 ; a bar at Gamboa to turn off the Chagres River, estimated at £6,000,000 sterling ; the most powerful waterworks in the world for pumping up water to the Culebra Pass, £2,000,000 ; or total expenses £24,200,000. This sum does not include the expenses of management and salaries, nor the cost of constructing the harbours at Colon and Panama.

M. de Leascps's assertion on Wednesday, that the safety of the loan was assured, turns out to have been a sanguine, but unfounded, anticipation. The Company decided to go on if 400,000 out of the 1,100,000 bonds offered were taken up. It turns out that less than 200,000 have been subscribed, though country tenders may swell the amount. The Paris correspondent of the " Daily News " thus describes the ( scene at the offices of the Panama Company f on the 13th: —All day long the same intense struggle between hopeandanxiefcy animated j\L de Lesseps's followers. At 5 o'clock some people manifested a wish to see M. do Lesseps. As soon as this desire became apparent, people began to press towards the counter at the further end of the hall, where M. de Lesseps had stood yesterday, and I was carried by the crush bo the very foremost rank. After waiting for some 20 minutes a man gob up upon the counter whom I recognised to be M. i Charles de Lesseps. '' Do you wish to see IM. de Lesseps ?" he asked. " Yes," said an ! elderly lady next me ; "we want to Eec that good M. de Lesseps." " My father," he continued, " will always be happy to see you, i but I suppose you all wish for some infor- ; mation ?" " Yes, yes," resounded from all I sides. "We are sitting at an important I meeting of directors which I left for a moment to come hither. I do not know what decision maj be taken by this meeting, but I am willing to tell you whatever I

know. I will be perfecbly open with you, only do nob hold me responsible if you learn anything else ba-morrow. If you like to wait for another hour I will let you know the full resulb of "our deliberations, but would you rather know at once what I can tell you '(" Everybody assenting to this, M. Charles de Lesseps asked what sort of information they wanted, and being told in reply that bhey wished to know the result of the subscription, he went on in a deliberate tone : " The subscriptions reach a total of I-. 0,000 bonds. This being below the minimum fixed by M. de Lesseps, we will commence returning the deposits tomorrow. You see, lam tolling you exactly how things are." Here there were a few cries of, "Yes, that's the best thing ; we must subscribe again." Bub the mass of the people were too much dazed to express their feeling 3. Somebody exclaimed, "We left yesterday with our hearts tull of hope. This is nob what M. de Lesseps led us to expect." "My father," replied M. Charles de Lesseps, " is young in spirit, younger than I am. The remarks he made to you yesterday were on the strength of a hopeful report I had made to him on the progress of the subscription, and the result indeed is a tremendous one. To-day during an inverview with a Minister, one of the very greatest of financiers, he said that to be ablo to sell close upon 200,000 bonds at 325 francs, when they could be had for 95 francs less in the open market, \ was the most extraordinary achievement he had ever witnessed. Indeed, you are not to blame if the resulb has not been what we required. Your conduct has been simply heroic. The result is bankruptcy — (cries of No) — or the winding up of the Company. If bhe latter course prevails the caral will pass out of your hauds, and a new company will buy it up for whatever it pleases to give us. " (Renewed marks of dissent.) A voice: "The press have ruined us. They were all against us. None of this morning's papers had any account of the scene we witnessed yesterday." M. Charles de Lesseps, speaking again, said he felt bound to say that the Press had been their friends throughout, but their enemies, by whom they had been overcome, were some of the leading financiers. " It i 3 beingsought to ruin the Company," continued M. Charles de Lesseps. " Let us defend ourselves by petitioning the Government. The canal is about to be finished, and it is because our powerful enemies know how near completion it is, that they say to each other ; ' What it we turned out these good folk of shai eholders V The chief danger of the situation lies in the strength of our enemies, I am at your orders. Our whole life is at your service." By this time those present had become aware of the extent of the disaster, and appeals came from all sides to draw up the petition, and that they svould sign it on the spot. "You are our father, our saviour; we rely upon you. Do not forsake us," they cried. He thanked the persons present, saying that he thought it right to let them know the worst. After he retired the hall gradually emptied, nor did the people wail much over their own and the public calamity. The extent of it may be judged by the sum invested in the company, which amounts to £60,000,000.