ORIGIN OF THE SUEZ CANAL.

Nelson Evening Mail, Volume XI, Issue 59, 2 March 1876, Page 4

ORIGIN OF THE SUEZ CANAL.

The following account of the origin and progress of the Suez Caual sinoe its opening, taken from the Times, will at present be found specially interesting :— It is little more than six years since the Suez Canal was opened to commerce, and, notwithstanding many difficulties and disappointments, the tonnage passing through it, and the consequent revenues derived frora tolls, has continued to increase every year. The French Company, who originally undertook the work with a capital of £8,000,000, in 400,000 shares, of whioh the Egyptian Government held 177,000, found this sum insufficient, and were compelled to raise £8,500,000 more by the issue of preference shares. The original shareholders were to have had in the first.place a dividend of 5 per cent., for which coupons were attached to the share certificates. Io order to aid the Company, the Khedive consented before the opening of the Canal, to surrender his coupons for tbe next 25 years. Thus the shares recently purchased by this country will not be entitled to a dividend out of the profits of the Company for 19 yeara to come. On the otber hand, the Khedive had, as a soverigD of the territory, a revarsion on all the original shares at the end of 99 years. This reversion has been surendered as to the eharee purchased by England, and there can be little doubt that the value of these shares will increase every year. The tonnage passing through the Canal bes been increasing at an average of half a million a year on the six-years already elapsed, and promises at no distant date a fair return on the investment. The report of M. .Ferdinand de Lesseps last July, showed a balance of 8,800,000f. after payment of expenses. Tbe value of the Canal to the commerce of the world, and consequently to ourselves, has been long since established, and by this investment we secure a direct voice in its management, without any interference with the private or political rights of other people. The controversies which raged during 1873 and in the early part of 1874 will show tbe advantage of our new position better tban any speculations as to tbe future dividends to be secured on the four millions we have invested. The expenses of the Canal were considerable from the commencement, and iu 1872 tbe chances of dividend were still remote. The company adopted a new scale of tolls, increasing the rate 55 per ceni. French customers of the company were the first to dispute the new system, and our Government subsequently interfered in tbe general interests of commerce. Inuumerable Courts were appealed to, aud finally, when the decision went against him, M. de Lesseps insisted on being the ultimate arbiter himself, and ooly yielded before the armaments of the Khedive. The complaint of M. de Lesseps, then, in April, 1874, was that England, who had had do share in the undertaking, was interfering with private property lor political objects. The glory of having opened this great channel of communication, of haviog overcome the various obstacles which delay the realisation of great and original ideas, belongs to M. de Lesseps and the first shareholders; but at a time when the largest of the shareholders was compelled by a sudden emergency to thow his property on the markets of Europe, whon the very fact of the impending collapse in Egypt had gravely imperilled the interests of the company, our Government stepped in and prevented any further depreciation of the Bhares. We put four millions into the enterprise to maintain its credit, and we become tbe colleagues of M. de Lesseps in promoting the great objects of the scheme and the interests of the oompauy. Having a most substantial stuke in this great work, wueo circumstauces have called away one of its most earnest supporters, we step into his place, and offer our cordial co-operation to carry on tbe undertaking for which we, in common with all Europe, are indebted to the genius and energy of M. de Lesseps.