The Isthmus of Suez Question

by Ferdinand de Lesseps

New occupations will arise, such as whale and cachalot fishing in the South Seas; pearl fishing in the Persian Gulf and Indian Sea, as well as the pursuit of mother-of-pearl, tortoise-shell and coral. A great part of the Mediterranean fishermen will transport themselves to the Indian Sea, to pursue their occupation, and increase the activity of the navigation in the Maritime Canal.

We may therefore be sure that the cutting through of the Isthmus will increase ten-fold the operations of commerce and navigation; that, as with every undertaking based upon a true principle, the consequences cannot be calculated, and that the idea most exaggerated in appearance, will always be surpassed by the reality.

As, however, we are addressing ourselves to the commercial world, and have to convince all minds, even the most timid, it is necessary that we should fix upon a figure, and that this figure should not startle any one. We have adopted that of 4 milliards (4,000,000,000) of francs, answering to 6,000,000 tons, which, according to what we have been showing, is without doubt, already exceeded at present, or certainly will be, before the close of the undertaking.

We have likewise assumed that of the 6,000,000 tons, 3,000,000 only will take the route of the Canal.

If we had followed the method of estimating adopted in the railway schemes, it would be necessary to make a statement of all the merchandize exchanged between Europe and America on the one part, and Indo-China on the other; then to multiply the figure thus obtained by a coefficient, never less than 3, and which sometimes reaches to 10. The result of this operation would give an enormous product, nevertheless probable. But to remain within the circle of ordinary ideas, instead of tripling the actual figures, we have diminished them by half.

The commercial activity obtained according tothese bases, will produce an annual revenue frompassage dues, at 10 fr. per ton, of	fr. 30,000,000
For anchorage dues at Port Timsah,from half the total number of ships,which we suppose will stop there;1,500,000 tons, at 1 fr. per ton	1,500,000
The canal of communication withthe Nile, supposing it only transportsa fourth of the merchandize whichtraverses the Mahmoudieh, will showan activity of 15,600 tons of merchandize,which may easily pay 10 fr.per ton, since at present it costs 27 fr.;50 fr. from Cairo to Suez, by Canal,and the journey takes three days. Thetransport by barge may be done at therate of 12 fr., 50; there will remainan advantage of 5 fr. by way of theCanal, and the journey will be twodays less. This item will thereforebring in a revenue of	1,560,000
The cultivation of the lands produceson an average 100 fr. per feddan,or 250 fr. per hectare, as results fromthe labours of seven years, which oneof us employed upon a tract reclaimedfrom the marshy desert of Lake Etko. Supposing the Company bringsinto cultivation only 60,000 feddans(24,000 hectares), it would receive areturn of	6,000,000
The downs which cover the southernpart of the Wady and the north-easternpart of the Isthmus, as wellas those of Lake Timsah, are to befixed. Let us assume that the Companywill perform the operation extensively,and carry the figure to60,000 feddans (24,000 hectares). Wehave said that the hectare gives atthe end of 20 years, a minimum returnof 100 fr. By making the allowances to ascertainthe actual revenue, it is reducedto 41 fr. 50, per hectare, whichfor 24,000 hectares, is	996,000
Grand total of annual returns fromthe Canal	40,056,000
From this amount must first bededucted two and a half per cent. forthe charges of maintenance and administration,and one per cent. forredemption, in all three and a halfper cent.	1,201,680
Balance	fr. 38,854,320
The Government’s share fixed at fifteen per cent. 5,828,148 The founding members’ share fixed at ten per cent. 3,885,432
	9,713,580
Balance in favour of the shareholders	fr. 29,140,740

Representing a dividend of about ten per cent., over and above the interest of five per cent., taking the capital at 200,000,000 fr.

We pass over in silence a multitude of sources of revenue, which will not fail to be pretty considerable; such as the supply of water to the population of Suez and Port Timsah, the rent of stations for watering ships, the rent of all the magazines and buildings, which have been employed in the execution of the Canal, the towing of vessels by the steamers purchased by the Company for the service of the dredges and the transport of materials.