Wastefulness of the French Company
This appalling exhibition of criminal wastefulness and unlawful business methods caused the utter collapse of confidence in the success of the enterprise, not only of the investing public of France, but of the world as well, and hastened the time when such methods must reach their logical conclusion in bankruptcy. The old timers on the Isthmus will tell the inquirer that of the enormous sum of money raised by the French Canal Company, one-third was wasted, one-third grafted and one-third probably used in actual work.
It seemed as if anyone who had any sort of influence might sell that influence to the Panama company for some kind of a consideration. On the Isthmus today they will show you a storehouse containing about half a ship’s cargo of snow shovels which a manufacturing company in France succeeded in selling to the French Panama Company, no doubt in return for the influence they might be able to give in assisting in the sale of the French Panama Company’s stocks. Of course, one can easily see the ridiculous side of the purchase of half a cargo of snow shovels to be used in the tropics.
Practical bankruptcy came in the year 1889, and from that time on the French Canal Company simply held its franchise and concessions from the Republic of Colombia for speculative purposes only. Then the officers of the French company, seeing that the United States Congress was beginning to take a lively interest in canal construction, and was showing signs of a disposition to pass legislation that would commit the United States as a Nation to the building of a canal, began to look toward the United States as a prospective customer for their uncompleted canal project at Panama. In the meantime the Nicaraguan company had gone upon the rocks of bankruptcy, and they, too, were offering their concessions and franchises to the American Government. And so with these two propositions before Congress, time drifted on to the opening of the war between our country and Spain.
When the Spanish war was declared, it was reported in the United States that a Spanish fleet was cruising in Asiatic waters. Of course, it was not known how strong that fleet might be. There was no way of knowing whether or not it would be able to cross the Pacific and take San Francisco or some of the other cities or ports of the western coast of the United States. So the Secretary of the Navy ordered the crack battleship of the navy, the “Oregon,” to maintain her station in San Francisco Bay with steam up, prepared to go into action at any moment.