multiplying together the three dimensions of the hull' in metres and

dividing the product by 3.80; for steamships, the result thus obtained is further reduced by 40 per cent. But, at Panama, the outside length and greatest width, at water line, and the draft (in metres) will be multiplied together and the result will be the number of tons on which the tolls will be collected. If, therefore, these rules were to be adhered to, the duty at Panama would be nearly trebled and would amount to about $9 per ton.

Replying to Mr. Hannaford, who asked where the money was coming from to complete the works, the speaker said that he had no doubt the people of France would furnish the required capital. The company's liabilities were to-day, according to Mr. de Lesseps himself, three hundred millions of dollars; but this enormous sum does not represent the money actually spent on the works. The discount on the loans had been as high as 40 per cent, as for instance, in the loan of 1883, for 300,000,000 francs, which produced 171 millions without any deduction for brokerage, etc. Up to 1884 (he had not the figures for a later date), the company had assumed liabilities for 918 millions of francs, while it had only received 734 millions.

The company had then for years been paying interest on money they had never received, and that could not be kept up long without something like a crash occurring. However, the work already done and the plant on the Isthmus could not be estimated at less than 100 million dollars. If the works were suspended all this would be lost, but with another 100 millions of dollars applied to the works the canal could be opened to traffic and all then could be saved.

Replying to Professor Bovey as to the probability of the Canal being taken in hand by Great Britain, France and the United States, as an international work

Mr. E. Deniel said that would be contrary to the charter of the company which forbade the alienation or mortgage of any of its privileges to a foreign nation or government; any transgression of this would nullify the charter. The company had 12 years in which to do the work, so that it has now about five years to complete the canal, and it does not seem that a momentary suspension of the operations would affect its rights. There is also a clause in the charter providing for a further extension of six years, if at the end of the first twelve years the works are so far advanced that their completion within the extended period may appear probable.

The charter does not make any mention of the canal being either a

sea level or lock canal. By the modification made in the former scheme, from a sea-level to a lock canal, the proportion of work already done has increased from one quarter to one-half of the total amount, so that the completion of the canal which was doubtful even during the eighteen years, is now possible and even probable within the twelve

years.

The money already advanced has come principally from France; very little having been contributed by the United States or other countries.

He also thought the people of France would advance the additional amount required. It is well to know that it is very difficult to ascertain the exact state of things concerning the canal and the financial condition of the company. Mr. de Lesseps had very powerful enemies, even in France, ready to take hold of the enterprise if they had the opportunity. When the speaker was in Panama last winter, he wondered of what use the large contracting firms with their expensive staff of engineers, accountants, clerks and other employees, could be, since the work was actually performed by the sub-contractors, but he was told that nobody there expected to see the canal company carry out the works to the end; but if it could push it far enough, then, when the money would become scarce, the contractors could and would bring their respective contracts to completion and be recouped out of the first proceeds of the canal. All the firms above mentioned are backed by large French banking establishments which could come forward in an emergency.

On 1st Jan., 1888, Messrs. Slaven & Co., were far from having finished their work, having then done about three-fifths of it. It was all dredging through mud, sand and clay, with the exception of four ledges of rock aggregating about two miles in length. The plant used by Messrs. Slaven & Co. (American Dredging and Contracting Co.) has been described above, and consists of elevator dredges. The materials excavated are deposited on each side of the canal, through the "long couloir." The result of the operations has been the drainage of the marshes and the consolidation of the ground through the region traversed by the canal in the neighborhood of Colon. The works had been opened simultaneously at different places, the dredges having been sent up by the Rio Chagres, and, when in position, dredging in the line of the canal on both sides of the river.

The plans (plate I) exhibited show all the work done in the canal and deflections up to January 1st, 1888, the work remaining to be done

to complete the lock canal, and the work subsequently to be done to complete the sea level canal.

Mr. Deniel could not give any information as to the high charges on ocean freights, or whether such charges would prove prohibitive. He had not studied all the different aspects of the question of the Panama Canal, but simply the engineering features of the enterprise.

The following statement as giving more detailed information concerning the financial position of the Panama Canal Company, may be of interest to the members :

On January 1st, 1888, the liabilities of the company amounted to $329,505,100, as follows:

Interest paid on original capital............. $13,500,000

Interest and amortization on loan, 1882...

8,500,000

to defray all expenses such as salaries, buildings, plant, excavation, etc., etc., including $25,000,000 for the construction of the locks.

$130,765,135

Thursday, 17th January, 1889.

ANNUAL GENERAL MEETING.

SAMUEL KEEFER, President, in the Chair.

MORNING SESSION.

The notice convening the meeting having been read, it was moved by Mr. H. F. Perley, seconded by Mr. R. Forsyth and resolved,

"That Messrs. A. Brittain, G. A. Mountain and F. Chadwick be requested to act as scrutineers for the election of the President, VicePresidents, Treasurer, Librarian, Secretary, and other Members of Council for the year 1889."

It was moved by Mr. W. J. Sproule, seconded by Prof. McLeod,

"That the scrutineers be instructed to make a return of all the names receiving votes, together with the number of votes cast in each case, and that such return be published in the minutes of the annual meeting."

It was moved in amendment by Mr. P. A. Peterson, seconded by Mr. H. A. F. MacLeod,

"That the returns shew only the names of the officers elected." The amendment, on being put to the meeting, was carried.

It was moved by Mr. St. G. Boswell, seconded by Mr. G. H. Garden and resolved,

"That Messrs. W. McL. Walbank, T. W. Lesage and P. L. Naismith be requested to act as scrutineers of the ballot for the proposed Amendments to the By-Laws."

The minutes of the last annual meeting having been read, it was moved by Mr. W. J. Sproule, seconded by Prof. McLeod,

"That the minutes be amended in accordance with the resolution requiring the scrutineers to make a return of all the names receiving votes, together with the number of votes cast in each case."

It was moved in amendment by Mr. J. Kennedy, seconded by Mr. H. Wallis,

"That the minutes as read be adopted."

The amendment was carried.

The Secretary next read the Annual Report of the Council, which was as follows:—