FRIDAY, FEBRUARY 20, 1903. THE PANAMA CANAL.

Taranaki Herald, Volume L, Issue 12195, 20 February 1903, Page 4

FRIDAY, FEBRUARY 20, 1903. THE PANAMA CANAL.

Another step has been taken in the direction of the completion of the Panama Canal by the United States of America, the Panama Company's property rights having been purchased for forty million dollars, subject to the ratification] of the Columbian/ treaty. There is practically no doubV about the treaty being ratified, so that the completion of the , canal may be considered within measurable distance. It was in 1581 that the first survey of the land across the isthmus J was carried out, and in 162Q a report was furnished to King Philip the Third, suggesting the construction of a ; canal. Nothing- further was, however, done until 1825, when the Congress of Central America enacted a ] decr.ee providing for the construction , of the canal. » The Government was unable to carry the undertaking into j effect. In 1858 a concession was granted to > a Frenchman, and again . in 1868 a contract was entered into, i but all without result. In 1879 •. Baron Ferdinand de Lessees formed ' the French Panama Company and four yelars later actually commenced active operations. In 1889 the Company be- j came bankrupt and went into liquidation. Five years later, in 1894, a new Panama Company was formed and resumed operations. The United States Government, however, in 1899, appointed an Isthmian Canal Commission to report upon the question. This , commission reported in favour of the Nicaragua route, on v the ground that the distances generally between tho Atlantic and Pacific ports of the United States were .less by this than by the Panama route. The cost of tho Nicaragua canal was estimated at fifty-eight million dollars more than j tnat of completing 'the Panama canal, leaving out the crist of acquiring 'tho latter property,, which it now appears is forty Bullion dollars. There was lifctle to choose, however, between the two routes, and one was played against' the other in the ensuing negotiations. The Commission war sqnt to Paris to negotiate with the Panama Company,, . whose plans were approved with little modification. TJio Company demanded 109 million dollars, but the fear of the Nicaea-

gua route being adopted has evidently caused them to take the smaller sum. Under! the! '■fre'aty ,"wjth ihe Cplo.mbian Government the United States pay to Colombia ten million dollars m gold, and a quarter of a million annually thereafter 'for" a" 100 years' lease, renewable at the option of the United, States. The right of protecting the canal by a military force is also secured, and 'the United States receives, the port dues. Thus everything appears to be in a fair way for the completion of this long talked-of work, which will benefit not only the nation undertaking it, but the whole commercial world 'as well. It will give these colonies a new and shorter route to the Old World, .and- cannot but have a beneficial effect- upon, our trade.