But most important of all doubtless from the syndicate’s standpoint, he succeeded in obtaining, from the Government of what had by this time become the United States of Colombia, a concession granting the exclusive privilege of constructing a canal between the two oceans through the territory of that republic; reserving always the neutrality of such canal and its terminal ports, and respecting the rights of the Panama Railroad Company.
Thus did the “giving of facilities,” urged by the resolution of the Congress of 1875, degenerate into the “granting of an exclusive monopoly” to a speculative syndicate three years later. In the following year the International Congress again met in Paris to consider proposals for an interoceanic canal.
M. de Lesseps presided at this Congress, and five different schemes were discussed; these being the proposals for canals at Tehuantepec, Nicaragua, Panama, San Blas and Atrato, already described.
The three last-named all fell within the scope of the “exclusive rights” granted to the Turr Syndicate, and from the first the Congress favoured the scheme of Lieutenant Wyse, which, at their request, he modified so as to substitute a cutting for the proposed tunnel at the divide. The Panama scheme was now the only one before the Congress which provided for a canal without a tunnel and without locks, and by a majority of seventy-eight votes against eight (twelve delegates abstaining from voting) it was affirmed that:
“The cutting of an interoceanic canal of uniform level, a work so desirable in the interest of commerce and navigation, is practicable, and the maritime canal, in order to meet the indispensable facilities of access and utilisation which ought to be offered by a passage of this kind, should be made from the Gulf of Limon to the Bay of Panama.”
As was most natural, De Lesseps was urged to undertake the direction of the work, and, although at his advanced age he might fairly have rested on his laurels won at Suez, this veteran agreed to conduct another enterprise, fraught with international advantage and blessings to posterity.
That he underestimated the difficulties attending the task has been abundantly demonstrated, but nothing should lessen our admiration for the courage and enthusiasm with which he assumed the responsibility, and the untiring energy he displayed. To whomsoever may ultimately belong the honour of completing the canal, to Ferdinand de Lesseps will always be due the credit of having initiated the work.
Following upon the report of the Congress, there was issued on 23 July, 1879, the prospectus of a company called “La Compagnie Universelle du Canal Interoceanique de Panama,” but more generally and conveniently known as the Panama Canal Company.
The suggested capital was 400,000,000 francs, or £16,000,000, to consist of 800,000 shares of 500 francs or £20 each. Of these 790,000 were to be issued to the public, whilst 10,000 were reserved for the original concessionaires. It was proposed to call up only 125 francs (£5) per share at first, and interest at the rate of 5 per cent per annum was to be paid during construction on the actual money received.
Even an estimated revenue of 90,000,000 francs annually from the canal when completed was not sufficient inducement to the public, and the issue failed; only about one-tenth of the capital offered being subscribed for.