Daily News from London, Greater London, England • 2

1863. THE DAfireWS, WED! SP8PAY, m9E SUEZ CANAL COMPANY. A The following is the REPOKT road at the GENERAL MEETING of ShMelwldere of the Universal Isthmus ol Sues Canal Company, in tlie sitting of the 15th July, 1883, by M. SJSRDINAND DE LKSSKPd FIRST PAP.T. Financial Situation.

-The general balance the accounts up to the 30th June last, a detailed table ot which will be printed at the end ot the report, in order to be placed at the disposal ot the shareholdttra, snows the following results The totfcl outlay to the date ot 30th June last amount to the sum of The receipts 3acted to the sinie date, to the credit of different accounts, especially to that of the product of the tempo-rary investment ot disposable funds, and to the account of the domaiue, tor the receipts on the letting ol the Ouady property, amount to the sum of Xnose receipts, which are, you will remark, gentlemen, a very notable increase in your resources, naturally diminish your onA onnatltlttn nmiMtlV An elfOCtiVe ill- made no observation thereon. On the 20th July following his Highness, wishing to assure the execution of the works of the maritime canal of Susz" (the very terms of the decree) signed a contract by which the Egyptian government engaged to supply all labourers that might be necessary for its execution. In 1858 all the preparatory surveys were terminated, andpuhUo opinion on the Continent and in meetings held In Great Britain had pronounced. However, the Viceroy determined, before making an appeal to capitalists, to send us once more to Constan tlnaple to keep the Porte duly Informed of the progress of tha undertaking. Tbe Grand Vlxler Reschld Pacha gave us a moat favourable reception.

Having become reconciled with the French Embassy, he appeared desirous of shaking off the yoke of the Ssrsonage whose preponderating influence seemed to fie decllniog, at conferences were advancing towards a public solution, when Reschld Pacha died suddenly, and was succeeded in the Grand Virierehip by Aali Pacha, the some who signed the note of tha 6th April last. new Grand Vizier appeared to be no less favourably disposed towards us than bis predecessor; but he seemed mora Intimidated and more engrossed by the opposition of England. He wanted to proceedgently his language was as satisfactory as could be desired. The French Ambassador addressed to us the fo lowing note on the SOth March, 1858 I have seen Aali Pacha and Fuad Pacha; I found them in the same mind, that is to say, still favourable to the canal, and very desirous to let It be publicly known that the Porte, for its part, does not oppose any obstacle to the realisation of your great undertaking." The same assurances were given to the ambassadors of tho other Powers which supported our negotiations, especially those of Spain and Austria, In order to spare Turkey any un-'' 29, Jtbftt cai ipftSi would prove lis. establishes with, tha Arab popula- omQnerstlve I relations eeta! tiens them wlth.tai)n(eaoiiKh to make them lie iaae huh soosMea xe us in uie wetert, ana nave made tM starting point of ther-iuetlye colonisation of the Wetava adopts tissprindnlleoj contributing to the wealth comfort of the termers oi tne company, as best calculated to secure an ultimate profit, and with this view the company has determined to abandonthe system of cultivation by government contractors that was formerly In use.

This system presented the luconvenienoe of carrying off workmen in batches to execute jobs fir a remuneration omaller than would be obtained by free labour. The fellah could not sow the ground for himself, for he was always threatened by a claim on his time on the part of the proprietor tie therefore deserted, and the property became more and more depopulated. By only asking the cultivator to participate in labours which are useful tonlitnsell and to pay bis dues by twelfths, we have mode a change in his lot. At the moment of our taking possession in December, 1861, the property contained, according to the official census Arab feUahs, inhabitants Arab Bedouins, 400 being a total of 5,860. Thn nfflnlal census of 1863 dives the following figures Arab fellahs, 6,89 Arab Bedouins, total, being an augmentation of 4,770 inhabitants, or nearly cent, per cent.

With such an on xpected co-operation of hands tlio cultivation of the lands was necessarily ameliorated. The number of fed- i woaia liU .1 ar.A nf laAnamhAr lUnl In Anrll UtVIUl UUI TT EJ.VJ llaivs con vaau va avwuvwuv-, au uu hn Uni.9 in cultivation were 14.600 being anaturmentation of 2,136 feddana tbe feddan corresponding to 12 acres. Nor is the increased extent ol land cultivated the only consequence of the increased population. It has been found possible to replace in part the cultivation of corn-grain by that of cotton on a vast actio. The price of cotton being very high, the cultivators enriched themselves in a single season.

Usurious loans, formerly made In 1'Ouady at more than 10 per cent, per month, have disappeared, wuuoub aents nava uetm eatiaguuuieu, working capital increased, and the prosperity of our valley, nmmlv acknowledired. has become a cowerful magnet of attrac tion to other colonists. The fellahs are the most numerous aoiongst the Inhabitants of 1'Ouady, and unquestionably the best cultivators. They performed prodigies of work last summer, to profit by the abundance ot water In the canal and the deorness of cotton. They sowed 6,000 feddans.

The preparation of the ground necessary for cotton, tbe permanent Irrigations, and the three gatherings from October to January, employ many hands. Nevertheless, nothing in the way of attention has been neglected, for tne crop has been exceptional, and has brought in not less than three millions ot francs for the colonists of lOuady. If we add to the cotton produce that of rice, clover, maze, sei wheat, barley, sesamums, beans, flax, in a land which gives three crops in 11 months, we may make some estimate ot the fortune that awaits our cultivators, and of the prospects In store for the Company's domains. The Bedouins of 1'Oiiads are new hands at cultivation: before the installation of the Company they were still wandering in the Desert, la tho midst ot "a population of and of heterogeneous elements, the Egyptian authorities have never had any disorder to repress or punish. The regular payment of dues is also a proof of the good spirit of our colonists no one Is In arreur for the dues of last year, and those of the present have been paid a twelfth in advance.

The inhabitants of 1'Ouady appreciate the security and comfort that they enjoy, and In our relations with them we on our part never cease to attribute these blessings to the government of the Viceroy. A native physician oi tne company, residing at Tell-el-Kebir, completes the organisation of the agricultural service: our do. tar gives his cervices and mediciues to the population gratuitously. He is at the same time tbe agent of the fgyptlan government (or tne tables or oirtns, deaths, vaccination, and the census. His presence proves to all that the company neglects nothing in its solicitude for the comfort and Interests of those who come to join it.

There are three schools at Tell-el-Kebir, and others in the principal villages these institutions are due to the initiative of the population, which pays all charges, and they show that an increase of material comfort brings with it a desire to emerge from ignorance. The Viceroy has caused to be rebuilt, In accordance with our request, a large and beautiful mosque at Tell-el-Kebir, where he nas also placed a cam, to tne great sausiactton uie lcna-bitonts. An attempt at rearing silk worms, made In concert with a Syrian cultivator, has succeeded so well that we have been encou- rogea to prosecute tne experiment, xne company win soon De in possession of magnaneries of great Importance. The climate of 1'Ouady is suitable to the silk worm there has been no Bickness, and the general health is calculated to attract the attention of societies of silk cultivation. At the present day the number ot mulberry trees planted arouna i eu.ei-ti.eDir is 40,000, The plantations will continue every winter, not only at 1'Ouady, but iu the tosstns farther off.

and near the fresh water canal. We have planted some in the sandy soil of the Desert, aud the young trees show a foliage of great promise. To propagate verdure and trees in the midst of our establishments in the Deeit, nurseries have been established iu the gardens of Tell-el-Keblr, the sants or acacias nilollcas, maritime pines. Aleppo pines, fllaos of Isle Bouibon, leubacs, the olive, palm, apricot, and pomegranate plants are springing up by thousands. More than acacias, the most serviceable wood in ngypt, eiist in a single nursery, as constructions have become necessary at Tell-el-Kebii'.

an hotel for travellers, a dwelling house for the physician, and another for the employes, have been erected with simplicity aud economy. Such is the series ot works effected in the domain of Ouadv since last year. Lands Conceded. The lands conceded to the Company begin at liaa el-wiady (beau 01 tne vaiieyj and run along tne fresh water canaL A year ago they were completely deserted. At the present time contracts have been made with the Bedouin- Arabs with some for three years In the parts that may be more aslly irrigated with others for four years in the Desert properly so called.

Thus we have 2,377 feddans in cultivation. In each basiu there exists the germ of a population destined to develop itself. Twenty-one water conduits have been established on the fresh water canal by the new residents. The cheiks of Ouady, their associates, have lent their aid by furnishing cattle aud grain to the families that came from a distance. At iiamses and Maxomoh, the cultivators are chiefly the Toumilate and Anadls, who used to encamp in the neighbourhood of the valley.

At Makf or, the Arabs of Salaieh are already constructing a village. At Bir-Abou-Souer, the principal resident is a chelk named Maazls, of the tribe of pper Egypt, arrived with his relatives and friends. He has bad some trouble In training Ills men to hand labour. There was an irrigation trench of 2 kilometres to be dug it was executed by sabre blades, and even by bare hands in default of other Instruments. At this day 160 feddans of magnificent wheat recompense this labour, and the 2.000 feddans which the basin contains in the direction of the Desert, ore awaiting other bonds from the same tribe.

The impulse has been so well given that along the new section of the canal, from Neflche towards Suez, the lands were already cagaged before the arrival of the water. The Agaldeks, a tribe of Syria, have signed a lease for 540 feddans, a Copht of Upper Egypt one for 600, and other Arabs for 200. The population of those new regions comprises already more than a thousand cultivators. The new lands are cleared by their hands; they have had to extirpate weeds, to level hillocks and for aonrentices without proper tools, hitherto more accus tomed to iueep on the sand, or perhaps even to plunder caravans than to plough and fecundate the soil, the results so laboriously obtained prove a resolute determination to persevere. Last vear we could only communicate to you our hopes this nor vou facts.

The visit of the Emir Abd-el-Kader, the words of encouragement that he addressed to the cheiks who thronged to solute mm, ana wno regard mm as a saint, nave produced a great impression. He has promised us to employ his influence to Induce tho nomad Bedouins to come and settle in the Isthmus. av. ,1, The fresh water is approaching Suez 111 a few months it will t.h nnnat of the Red Sea. The Prince Ismael.

the first cultivator in Egypt, has the interests and prosperity of his country too much at heart not to aid us in transforming the Desert. It will be through his aid that the sand will become a cultivated garden, on the day when ships of all nations shall navigate through me isiiuuud ui ouez. THIRD SITUATION. lost year in this very place we announced to you the visit to France of his Highness Mohammed Said, and we pronounced these We shall salute In this Prince the regenerator of his country and the oreator of an enterprise which makes the world thrill with emotion and hope. We should be lll-acqualnted with our own country if we could for a moment doust tne reception that it would give to the emancipator of the fellahs, the promoter and protector of the canal ef the two seas.

We should be ill-acquainted with yourselves if we could doubt the gratitude and affection with which you will welcome the real founder of our Company. Had Mohammed Said never lived or reigned In Egypt, the Suez Canal would perhaps have never been undertaken. The world has contracted a debt to this Prince for so great a service rendered to humanity we also have contracted uiin nvsri.nll mi efforts to liquidate it. The 'journey of Mohammed Said from Toulon to Paris was a series ol ovations on mo iimt ui of France. But that triumph, the triumph of the Suez Cana was ik.

i.i..naa nf the PriniiA himself. We soon had the affliction of losinu him. Younpreaident, his most devoted friend, has no occasion to invoke yoor gratitude to his memory. His worthy successor, Ismail, has made It a point of honour to fulfil religiously all the Intentions and engagements of Mohammed Said v. 1 nil tivatoiH nAfrftplnilia.

towards tne uoiiipaiiy. namiurrcu and persevering iutellect, a prudent and reBectlve opposition, an honest and upright heart not forgetful of ills purely French education, but above all an Egyptian Prince and able administrator, his reign, already remarkable at the outset, promlsfs much for the happiness of his people and for the successful nf nnr nntiBrnrliiH. whilst it baffles the expectations of the partisans, In the East and in the West, of a stationary or In our tost report we said to the friends and enemies of the canal Go to the Isthmus those who believe will have their faith confirmed those who disbelieve will be converted-" Our anneal has been heard and our hopes realised. During the year that has just expired the Iathmus has been daily traversed by visitors of all notions and conditions, and by a great number of our shareholders, many of whom are gathered together In this saloon. You have read the letters in which travellers communicated their impressions you have read accounts of the visits of AE.

theComte de Chambord, of 8.A.E. the Due de Brabant, of M. Bchic.of Sir Henry Bulwer (of whom more anon), of the English engineer Mr. Hawkahaw, successor to Itobert Stephenson as ffiident of tho London Society of Engineers, of the Erair Abd-el-Ksder, and finally, ot 8.A.I. Prince Napoleon.

(Ap-Dlause.) All have been unanimous In acknowledging the rapid progress and excellent organisation of the works. M. Behic. an Shtened and competent Judge, on retunilng to France, replied thus to his Every incredulous person who has Iwt seen the Isthmus Is affected with a cataract which can only rascally cred by a visit to the works." (Applause.) What ISd Prince Napoleon but the other day to our labourers at the Isthmus! "The Suez Canal Is no longer a work to be undertaken It is in full eeuise of execution, and can no longer be arrested. What has most particularly struck me is your union, 25r devotion to the work.

Here I again find France and her Loble ions. Let but a grand Idea arise, an idea of universal scone of humanitarian interest, and on the mstant France anZsm Her works bear the stamp of humanity, and the stamp borneby the Suez CanaL Every one of you here understands that he Is sacrificing himself for the good of all. We who only Suaded Uiit I will support your cause with all my efforts. This work must be accomplished. or.

ha, caused the report of Mr. Hawkshaw to be distributed SSjSTtoSSimB Said, when in England, had invited mI Hffiw to come to Egypt to study the questloiikif piercing the' EutT and draw up tifi opinion on the subject. Ugh-nets ffisSu ressed himself to a man quite unconnected wlthThe cmnaiv charged with Important commissions from Ms own designated oy the English uthe Robert Stephenson. Whatever might have been the Ktton of those who suggested the choice, we awted with nnntidMice the result of the appreciations of Mr. Hawkshaw.

It neS t'aw written technical report, destined to nrTbasM andatudled bytheflret engineers in Europe. Itwas uterial taskiand Mr. Hawkshaw has fulfllled It with science. hi)roblty, and we will even say with a courage that reflects imniuir both on himself and his country. After having reviewed the different special questions that relate to the construction and maintenance of the canal, he finds himself led to the following conclusions 1st There are no rrrxi thn nomr.1 that nreaent any extraordinary difficulties of nrMiution nor can I admit the probability of any circumstances Snlated'to produce dificultiea which a skilful engineer may Inmnnnt.

2nd. I am eoofilly of opinion that there will be found no obstacles to tne easy and effective maintenance of the euial when finished, nor any necessity for an exttrdlnary or TTZCLMnnai annnal exDenditure." Mr. Hawkshaw thinka that whea the works are' terminated, the whole expense will be -minim on the other hand our engineers think that It will arf 200 millions the eventalone can Justify the soundness of one or the other of these opinions. However it may turn out, this question Is almost indifferent in presence of the financial prospects reserved for the enterprise. jt policy is to well aware of tbe profits in store foryou, itdtaial IrwS time not linring the works, It has conceived the idea of -thnswoiir i trouble antk i ranks, with the INM oteffectinxj a redemption of our society.

anu me iwijracuBcp anouur, sormeaj 'it is natural, with English capital. Hero then we must exftmlne the history of the imm the 6th cf last April, that having been tae machine invented to obtain the coveted result. An attempt was made to innnenna the French Government in the first days ot May 1862 immediately after your last meeting. A series of complaints, similar to those afterwards specified in the Turkish note, were alleged against the company. The reply was so logical and peremptory that we were relieved from farther vexation in that quarter.

Vou may remember that before this, in 1866 an English note bad been unsuccessfully addressed to the Paris Caolnet by that of London, to engage the French Government not to allow the Company to ootue to an understanding with mw lucKuy, mil- vuo waivy wttu tue Diutau. it was asked that England and her ally should In tbe first instance treat the question diplomatically In other words, that England ohould have the means of burying it in oblivion. It is very curious to re-examine this document at the present lime, because we find In it whole passages unceremoniously copied in the Turkish note, dictated eight years later to the Minister Aali Pacha. Amongst other repetitions we find It said that "the effect ot the project would be to Interpose between Egypt and Syria a political barrier formed by lorelgners, who would come to occupy the tongue of laud extending from the Mediterranean to the Red Sea." It is added Questions of the moat embarrassing and dangerous nature might arise amongst the Governments of these lorelgners and the Porte, under the Influence of circumstances which it is easy to foresee The ed oris mode to sway tbe French Government had irretriev ably tailed. The menaces that were still addressed to Moham.

mod Said only produced this simple reply "Let me know In writing what you want, and why you want ft I wilt then communicate it to France, and I promise you you shall hear her reply." It became then necessary to play uoon a gentler and more accommodating string. But before provoking on explosion, it was thought right to be certain that the fight was not against a pnautoiB, auatnat mesuez enterprise was reaiiy serious, we have often admitted, even as late as last year, that there might ue stiu more ignorance tuan ana laitn amongst our opponents. It was the mission of Mr. Hawkshaw to throw light on the Ques tion in a scientific point of view. Sir Henry Bulwer, a shrewd diplomatist, undertook the task of collecting and transmitting to ma court me observations mat were to serve ior a oasis to tne policy to be adopted.

Neither of these individuals, however differiuK in views and Intentions, could leave the government any uouut as to tne lmauiuiuty oi me result prosecuted cy tne Company. Then was imagined the coup d'etat of the Turkish note, calculated, as it was thought, to sow confusion in the affairs of the Company, by indicating to the shareholders a prospect of reimbursement for their The whole business had been well studied, and it was well known that the purchase' of these titles, even at the cost ot twice or thrice their actual value, would still be a magnificent operation. For when we reflect that the railroads ot France, so much onnased by sane. riormindsSJyearsago.haveproduoedm 1862 a movement of 67 millions of ravellers and 1 millions of tons of merchandize, what may we not predict of the Isthmus of Suez when it shall be open to the traffic of the whole world But our adversaries, influenced by purely egotistical views, and excluded by their insular position from the march of continental ideas, never imagined that for the men at your head, and for all of you without exception, the grand motive of our enterprise Is the good to be done and that not one of you is disposed to shrink from the mission mat ne nas unaertaiceu to acconipiisb, No, no, aud applause. Let us now examine the Anglo-Turkish note.

In the note of April 6th we remark a capital fact, which, perhaps, has not been sufficiently insisted on. At the beginning of this notethe Porte considers the Suez Canal as a work ot general utility," and declares that it lias no thought of desiring to prevent Its realisation. The end of the note is like the beginning, and the Porte even goes fartherin the expression of the same Idea. Admitting lh. nnai i.l,k.i 1 uo mum, ui uc lunijjtaii; louumiciug tne prosecution oi me work, the Porte, in concert with the Viceroy (i.e., wlthEngland) would adopt the measures most suitable to realise the execution ui tne same.

It is only between these two protestations of sympathy and approbation of the work that the Porte, yielding to pressure from without, resigns itself to intercalate the propositions that you know of, as if it had beforehand a sentiment of the reprobation which such propositions would excite. We maintain that a declaration of this nature is a complete moral sanction that it Is a renewal ol the approval already obtained from theTurkish Government. This declaration, in fact, radically destroys the objections started by the English opposition, the only one with mo canal una iuiu to contena. 1 ne Kngiisn opposition says: "Our resistance is only inspfred by the Interests of the Ottoman Empire. The Porte replies The canal ought to be made and it is so UBeful that, if the Company refuses to undertake it I will undertake it myself." The English opposition has said This project is only an Intrigue, a soap-bubble, a lure to put money in the pockets of speculators, and atthesame time to make Egypt a French conquest and the proof of all this is that the canal, supposing it possible to belinlshed, will never bB remunerative to the credulous capitalists who are engaged in the concern." The Porte annihilates all these objections by the simple proposal of taking charge of the enterprise.

Tho Porte might have added that, In contradiction to the public declarations of the English Cabinet, the affair had appeared to Sir II. Bulwer, after his visit to the Isthmus, sufficiently remunerative to make him assure the Divan that it would Dud In the London market all the capital necessary to redeem the concession, whilst substituting a Company exclusively English for the Universal Company. Nevertheless the Porte, after having proclaimed a desire to see the work complete, with an inconsistency which sufficiently reveals tbe constraint exercised, takes refuge behind a prohibition of the means. It protests that it wishes for the execution that is the Turkish policy and it then imposes conditions which render the execution impossible that is the English policy. Let ub enumerate these artificial Impossibilities to which the prosecution ot the work is to be subjected 1st.

England must come to a preliminary understanding with France in questions relative to the neutrality of the passage. In other terms, it would be in the power of England to Interrupt or delay the' negotiations at her pleasure and as sheiB opposed to tho canal, she thus obtains a very simple means of suspending the operations indefinitely. 2. The Company ought to renounce the employment of compulsory retributed labour. In other words, the Company ought to be deprived the principal means of executing its work, although England has always hitherto enjoyed the advantage of compul sory unpaid labour.

3. xne company is caueu on to renounce the perpetual enjoyment the lands along tbe canal a concession made to It in conform ty with the laws of Islamlsm as a remuneration for its outlay in rendering productive a barren district by bringing to if the fertilising waters of the Nile that la to say, it is wished to discourage the shareh ilders by depriving them of one of the sources of their profits, and by multiplying the dltticnlti of the undertaking by leaving the neighbourhood of the canal a desert. The note of theOth Aprilfarther pretends that the Company has not regularised its position with regard to the Porte. The obligation of itself obtaining the satisfaction of the Porte was never Imposed on the Company. That ratification, as clearly appears from the official correspondence, related not to questions of the internal administration of Egypt, in which the independence of the Viceroy has been consecrated by the Powers, but to International questions relating to the neutrality of a universal passage.

The rescript annexed to the definitive act of concession, dated 5th January, 1866, authorising the immediate formation of the Financial Company, terminates with these words: "As to the works connected with cutting through the Isthmus, the Company may execute them itself as soon as the authorisation of the Forte shall have been granted." The task ef soliciting that authorisation belong to the Viceroy alone the Company hod only to wait until that Prince deemed himself sufficiently authorised. When the Viceroy had personally come to an uniierstandlng with his suzerain, and we affirm that such was the case, he permitted us to commence the execution ot the works. This permission cannot beithe object ot the slightest doubt, not only because Mohammed Said never Interrupted the works, but also because he never ceased to favour their progress and lastly, because the government, In conformity with the engagements of an obligatory deed which formed part of the acts constituting the Company, supplied the nnmber of labourers required fur the execution of the contract, which evidently could not be accomplished but with the consent and direct participation of the government. The Company has never treated with Constantinople. The Porte has, moreover, felt that the Company, bound solely by the terms of its contract, could not be engaged by external circumstances with which it had nothing to do.

The Porte felt that the respon-Bibillty of the Company was covered on the day it received the authorisation to execute the works from the Viceroy, alone Invested, so far as regarded the Company, with tne right of granting that authorisation, unless the latter should have consented to intervene jin the negotiation which the Viceroy had reserved to himself alone. The note has, comequentiy, attempted to introduce into the question an altogether Imaginary Interposition of this kind. It pretends that, at an epoch which, according to its author, was not long previous to the death ol Mohammed Said, we engaged to obtain the ratification ot the Porte within eighteen months an engagement, It adds, which has never been fulfilled. We will not go so far as to hint that the minister Aali Pacha Invented the fact advanced by him for the necessity of the cause, but we will say that he has been the victim of some error or mystification. We never took, either directly or indirectly, any such engagement towards the late Viceroy.

That engagement would have been contrary to what we have always maintained on all occasions, and to what we now maintain namely, that the Viceroy was the sole judge of the approbation he had demanded from his suzerain, and that the Company 'had in no way to concern itself about the nature, explicit or Implicit, tacit or formal, of this approbation. wn am onxlmi to antlcloate all oblectlons. for our position seems, in oar opinion, to give the Company an Inexpugnable standing place. It will, perhaps, be answered that we went In our Demon to negotiate at Constantinople, and such Is the fact 1. hmoh.a thnat aa tha a nan nf tha but we nave never guue wiciw uwih ih wwu Viceroy, Invested with his powers, and In that quality we can bear witness to the approbation given by the Sultan and his Ministers to tho canalisation of the Isthmus of Suez.

We can even produce written proofs of it. As to the Company, we repeat that it has never had any relations with the Turkish government, Thus, possessing the right to continue its works by the authorisation of the vassal Prince, which. In virtue of his contract, mimt invnlTs and did involve, that of his suzerain, the Company may consider Itself perfectly secure. If the Sublimo Porte finds, after reflecting for five or six years, that the authorisation was given with precipitation or Irregularity, the Company need not trouble Itself about those scruples. But, is It true that the Egyptian government has acted irregularly or precipitately Is it true that in all Its conduct it has not, on the contrary, yielded a l.l..,, -hnla tha tn-4a 1, to tne neeesaiwea iiwiwvu n.

i. and for whioh we ought rather to pity than to blame It? Is it true that the Viceroy might not fairly consider himself as authorised, and that this authorisation was not given to him in the only form possible In presence of the opposition and menaces of the English agents, who overawed the Bivan and prevented It, In this matter, from following Its own inclinations and inte rests This Is a point of the question of sufficient Interest to justify us in dwelling on it for a moment. Two mvansDie ana permanent new can our attention at tne very commencement of this Inquiry one is the constant adhe sion of the Sultan to the project of the canal the other is tho no less constant opposition of the English policy. Here the succession of facte has a great importance. The first act of the conces sion, preparatory In some sort, was signed by the Viceroy of Egypt on the SOth November, 1851.

This document was communicated officially by the Prince to the representatives of all the foreign Powers accredited to him, that they might inform him of the opinions of their government. It was at the same time forwarded to Constantinople, with the vouchers appertaining to it. Neither tha Porte nor the Powers made any objection but t.hn Viaornv in for nvMt nf fchntn nrnil? tvmirratlustea. TWO months later, in February, 1856, that Is to say, Tour years before the formation of the Company, we were honoured, as the friend of the Viceroy, with the mission of going to Continople to assure ourselves, In his name, of the reaHdisposltions of the Sultan. We were received with much favour and symrathy by ie Grand Vizier Rescind Pacha and his colleagues.

Viceroysprect was approved at At this moment appeared the i tot syrn ptoms ioiu ue lxeacjuie. me mi" r. 71 riiAYriA vnntiiro tn dn give a public adhesion, did aU that it we returned tO Aieianona 7 i-l Virirr In mnw i.tia, to the Viceroy by the Grana vizier, in wWch the first irrfXof thesmiKid had "aZnnet" Supported by this been treated in the SuShid us to form an Interna- luuwuuv.v--.--- ttmt "tne execution oi the question, unaousiy or Th(, viceroy. iy auu In saUsfleolth principle by tbe VUiers by the me creation of the universal Company. Seffly communicated to the forte, which .11 mi ill II i i Bid- MtiAAiilman wonhlo.

IBitai Vsflea aiSiitora or Charity. 4r YOB ttuiauftann oi vonunny in tne Desert at this stoment Imvim little to be desired. The town of IsmslUs, iMfedefan the banks of lake Tiiaaiih, where there was not a hoots tits time of our brat general meeting, has since three mondts been In Tuniulffiiof COiistrQCtiona Numerous enomrhtn adtitikrt an installatlen therein of the bureaux of the Dlstor-Oauel his staff and aronives, ana oi tne cniei engineer wits the personnel of his division. Large streets with foot pavements, houses sheltered from the sun's rays by yerandnhs on each of their facades the Place Champollian covered with verdure, the canal of fresh water with its boats coming from the already jtM to this nucleus of population a satisfactory aspect. The ateliers of Port Said are now completely installed, and in their general and particular disposition nay compete with the better nietalluritlc establishments of Europe.

The creation of these Metiers la justified by the imperative necessity imposed on the Company of having at tbeoutset, and on the spot, powerful means of providing for the repairs of its worklngmachlnury. The labours in theateliersot Port Sold, during the course of last year, havebeen chiefly directed To the keeping in good order the dredges previously at work 2nd. To tho construction of new dredges, In which the experience of the past is made to benefit the future 3rd. To the construction of a transput stock 1th. To works of building in general The expenses, from March 15, 1862, to April 1st, 1863, have been of willed nave been affected to tho employes and workmen, to material stock, and to supplies of different sorts.

Other workshops less Important than those of Port Said have been ortraniBed in the course of last year at Baz.el-Eche. El- Oulsr, and Ismailla. They have had to provide works of scanoiaiug, tneensemDieoi wmcn represents a value oi more than JiKA nnflfp LL" 1 ha thn roaiilta Anlnlwail h. nmnL button of the workshops, we must, however, admit that if their creation was an maispensaoie condition at the outset, tne moment is come, in consideration of the prioe of European labour in Egypt, and of the consequent results, to 'restrict rather than to develop our own manufactures, so as t) Invite as much as possible the competition of special industries, coming to hiatal themselves at the points where their stock is wanted. We can enter upon this course now that we have more experience of the nature of the instruments that suit us, now that the stock originally provided is lUmdst completely set up, and now that thaenterprise otthe Suez Canal, better known and appreciated, is the object of serious propositions op the part of great European establishments, all desirous of partici pating in our labours, it is in mis spirit mas we nava maus contracts with the Boci6t6 des Foreesat Chantiers of theMeditemnean with the house of Gouin and of Paris, for a supply of 20 powerful dredges and 20 steam cranes, destined to complete the work of the dredges by throwing the matter drawn from the bed of the canal up to toe iiigh grouud 'it Is finally in wrae'Spirtt that we are preparing drafts of coatracts to supply ardelecb in our machinery in general.

The fleet destined for the maritime transports made, directly by the company Is composed of 18 sailing ships and 2 steamers, of 2,700 tons in all, and whlcn have performed 119 voyages. By the aid of these vessels, and by the freighting of 2U merchant ships ot a capacity of 31,000 tons, there have been transforted to Alexandria and Fort Said 81,000 tons of material, stores, blocks of stone, and coal. On this figure 11,000 tons have been trans ported by the company's vessels anu is.vw oy inBrcnouwiieu. It was of Importance to place the Board of Works established at Ismailla In rapid communication with the whole, line of works, with Alexandria, the social seat of the company, and with Cairo, where the general Intendance is located; An Immediate knowledge ot requirements, and an immediate execution of ordeia, are essential to ensure the steady progress of the undertaking. With this object a telegraphic line has been established between Ismailla and Zagazig at the extremity of the government telegraphic lines communicating with Cairo and Alexandria, wo owier lines leave jdiuuiuu, uuo nj.vcuu.ug Port Said by the maritime canal, the other to Suez along the fresh-water canal.

ProvUlon has neen made for the service of supplies and inland transports by a general intendance, at the head of which M. Angot, formerly a military inteudont of the French army, has been placed. The system of adjudications in Egypt, applied to natural aud artificial produce, is not without its Inconveniences. All trades being organised in corporations, each of which has a chief, who directs and disposes of its interests, all competition is impossible on the other hand, if recourse is had to European merchants for the produce of the country, it can only be obtained at second or intra nana, ana consequently at a nigner puce. The principal articles-such as biscuits, straw, and bijrley are obiects of traffic but butter, oil.

lentils, onions. are nur- chased on the spot at the moment of their arrival from Upper Kgypt. Storehouses The general service of the storehouses Is composed of the following establishments Mex, Cairo, Damiettn. Port Said. Kaz-el-Eclie.

Kautara, El Outer. Ismailia. l'oussoum, the fresh-water canal Zagazlg, Samanoud: or 13 storehouses, five of which are very considerable. They employ 66 agents. Their normal stock Is about their annual movement represents an incoming of and an out-coini of about the same amount.

Transports. In proportion as the fresh-water canal approaches Suez, so the land transports or water ior tne aumentation oijtne contingents is sensibly reduced. In the course of last year these special transports required us many as l.OOOcamels dally, which, with those wanted for other transports, carried the number of camels employed to a figure of 1,600, whether belonging to the Company or hired for the purpose. At the present day, by reason oi tiieaavancea state oi me iresn-wateranu maritime canais, me service of land transports Is confined to short distances, either to supply the wants of the contingents, or to provide the labourers with all necessary material. Water Transports by the Fresh-water fanaLThese transports have been subjected, like all novelties, to many trials.

In the first instance, the Keis of the Nile (owners of boats) would not risk themselves In a canal made in the midst ol the Desert, in countries infested by the Bedouins, fearing that they would not be able to return to their own river. It became necessary to apply to the Egyptian government to obtain boats of requisition, and by these means the service was insured up to August, 1862. At that period, a great boat Chelk offered to contract for nil the transports from Zagazlg to Timsah for an of 16 per cent, on the price of the day, engaging himself to hold at the disposal of the Company 100 boats, of a mean bulk of 10,000 kilogrammes, or 10 tons. On the renewal of the contract In December, the terms were farther reduced by 10 per cent. The transports ejected by the fresh-water canal in alimentary stuffs, forage, and other objects, reached every month an average ot 1,200,000 kilogrammes, and, by the contingents, an average of 300,000.

The demand for boats on the part of traders, travellers, has been supplied. This part otthe service has been very lately regulated" by anew as favourable to the interests of passebgers as to those of the Company. A project for a regular messagerie service by post-boats is at this moment under examination. Transports by Lake Menzaleh. Transports of all kinds in Lake Menzalen are Insured by a contract made with a native proprietor of 110 boats, of an aggregate of 600 tons.

The service confided to this individual has the following objects 1st. The transport of despatches between Damietta, Port-Said, and Kaz el-Eche 2nd. The transport of travellers between the same localities, besides those of Matarieh and Menzaleh 3rd. The transport ot all the material between Damietta, Port Sold, and Baz-el-Eche 1th. The transport of a part of the contingents of the nrnviniu, nf Mansnurah.

to be taken ud bvour boats of Menzaleh. The regulation of the passage over the lake for the service of passengers was maue nc me same time as tnat relative to tue fresh-water canal. The vegetable dealers are very favourably treated in the interest of the alimentation of the agents and labourers ot the Company. Transport by the Maritime Canal of Port Said to Lake Timsah. An experiment made to insure the service of transports on the mnrltimR ivinat of Port Said to Lake Timsah.

by means of European task-workers, has not succeeded the lntendont will return so tne system oi contract oy uwn-woia wucu uv bhim find men of character, and offering guarantees. Transports in the Nile. The transports in the Nile are effected partly in nirea boats oetween uairo ana zagazlg, ana partly iu twnnnmll steamers taelomrlnir to the Comnauy between Samanoud and Damietta. Our merchandise transported by the Nile may be estimated at 000 tons per month. The general service of the inland transport, distributed among 11 different points, is insured by 11 agents, and represents an annual movement of more than tons onaercnanuize.

Contract with the General Enterorlse. We have to comma nlcate to you a modification in the service of the executive of th wnvlra Tho atnff nf thn rrpnoml pnta-rnrinn found itself in presence of a second administration, that of oiir Inspecting engi neers, inis last siau, wmcn uaturauy gameuuiurc uupuruwee and experience every year, appeared to us to be adequate, in con-iunctiou with a part of the staff of: tho general enterprise, for ensuring the steady progress of the works. We were desirous of avoiding the grave inconveniences of antagonism which seemed likely to arise In the direction, and we wished also to carry on operations with more economy as to the persons employed. We made a proposal to M. Hardon to transform the bases of his contract.

M. Hardon replied. Before all. It is to the work of the canal that I Bhall always be devoted; I do not wish to cause you anyembaitassmentln my person." After having studied many combinations without result, we ended by an application of the 24th article oi tne treaty oi reo. as, um.

xne liquidation is maae for the clas-ing and liquidation of the expenses, the verifications of which have been submitted to the general direction of works. M. Alfred Felnleux, who was one of our best collaborators In the first difficulties of the enterprise. Is at the head of this liquidation, to which the chiefs of encampments or of ateliers devote their time exclusively. Before the termination of this business no one can pronounce an opinion as to the regularity of the accounts.

With respect to the chief clerks and M. Hardon. we have been fortunate in enllstlno- thnrh. as fur as possible, in our own ranks, with the consent of their patron nrst, on account oi tne services tnat tney may render ub hereafter and, secondly, to show to all that in the modifications required by higher Interests, the Company never loses sight of past services. Sanitary Service.

The annual report of our chief nhvaiclan has been recently published. The transportation of 12 millions oi ouDic metres oi sou, cornea on sometimes on dry ground, sometimes on marshy and moist, has neither riven rlnn tn inter. mittent fevers, nor to any other maladies. Thus the works of embankment have had no Injurious effect on the Qealth of the labourers, as is seen in unrope ana America. The amelioration in provisions and drinks, caused by greater facility of communication, has produced a corresponding amelioration in the public utnubu.

iuo oaaiuuiitj' ui hub iDbuiuuB is, iw tne present day, an acquired fact, both with regard to Europeans and natives. The sanitary, medical, and pharmaceutical service Is Installed over an extent of 165 kilometres. Seventeen physicians and UrUggttUI 1IUYO suTOlUlbDllU IUO UCMlUl Ul aW.VVt! mtUViaUalBI: 1.320 invalids havebeen nursed in the course of thn iat. tmi. without counting numerous consultations.

The expense for each invalid has not exceeded 60fr. in the hospitals of Paris it amounts to 79fr. 95c. The population of workmen (employes, labourers, and cultt- vawroj in tiius uirmcu uuiuptKiuM, seaeutary natives, Fellahs of the contingents, native cultivators. Ann no nnn 11.VW.

JLUUU, The mortality among the Euroneans has bean i in Amnnir the sedentary Arabs. 1.12 amonir tha fellah. thn contingents, 0.1H. In France, the mortality in the army, a youthful and selected population, is 1.94 per cent. If the mortality amongst the fellahs is almost null, it is certainly a proof 1 1 taaalul Tha Hmn at.

tnat tuej ana wwi umou. aa ivpiivvi mo ciuoi pnysicuui IS dated the 15tb of last April The three months that have Just terminated had last year produced the largest number of sick this year the general heslth has been preserved during this period a. a tn I. anlaatna. onJ I I i.

n. as weu ws ui ww B1MW4, a4a mi" bcvum mj uemoiutrate mat Europeans have become acclimatised. A decision taken by the Viceroy Ismail Is deserving of notice. The Company Is authorised to employ tho physiciana and druggists who may be detached from the service of his Highness without prejudice to.their claims for promotion or retiring pension. This benevolent measure facilitates our medical service, and allows us, without much expense, to extend or restrict It according to our The presence of the Sisters of the Bon Pasteur at Port Said, independent otthe good that It does In the way of an example of charity and unremitting self-devotion, has produced excellent results women only have the art of tending and alleviating sufferings.

The European hospital of Alexandria In a manner completes our medical service. It is tharathatwesendonrstekwhoreaulrecliaiiirnnf sir Thio Ana and well-managed establishment offers us precious resources. Administrators, doctors, sisters ot charity, have ever shown the best disposition towards the Company. Kellgtous Service. We have at Port Said, H-Guta-, and Ismailln, chapels and mosques dedicated to the Christian and Mussulman worship, and served by Latin.

Greek, and Arab priests. The Imaus fulfil the office of juges de paix for the natives they draw np deeds, and contracts of marriage or divorce, and are subject to the authority of tha Grand Muphtlof Cairo. Lands in Cultivation. Twenty months have elapsed since the acquisition of the domain ot 1'Ouady. After the first year the advantages which the company expected to reap from this acquisition have not been limited to tbe having a head line of 32 kilometres for oar tteth-wttet etas), but the revenue has hw Mia ohvkslan and tssr materials and provlsiont from Pot fWtowiirdii the ifmm effecteo.

Wltn tne douoie view oi iouk i of the dredging machines, and or. vosa renaenim frmoie channel completely tree from a iecondeanal was dug along me Aincan uaos, jo mv wtuui water line, and from one to two metre deep. At tee present time, throughout me wnoie extent oi sms nrsi wuguioi metres, the maritime canal appears of its definitive width, perfectly defined by banks formed of the earth taken from tae cutting. There only remains a few portions of the banks to raise higher ana consonance, ana ine uiggiug ux: wum in the points where the natural soil is more or less elevated above tlie level of the sea, In order that this first part of the canal may present a navigable channel 68 metres in width, at once practicable in every sense for the dredging machines and the transport boats, completely and safely Isolated in passing ,1 ,1... T.atroa And Rnllfth.

In the commencement of last year the works for cutting through the Threshold ol El uuisr, ior a iengm oi 10 iuiuujsuw, urith th -Id nf the contlnsents. These works have been continued ever since without iuterruptlen by an average number of 18.000 labourers. In the first dys of the wcir nf the MedlterraneaB ran into Lake Timsah through a caual 15 metres wide, and from 11 to 2 metres in depth. Ten mouths had, therefore, sufficed to get over this pretended insurmountable obstacle, and to demonstrate how purely chimerical were the fears expressed on the subject of this undertaking. The cubical measurement of the soil to be removed from this first cutting was 4,350,000 metres, which represents rather more than the half of the total quantity of dry earth to be excavated for opening the canal through its whole length across the Threshold of ElUUlSr.

it COSl UUOUt Ol wmBU rtAA, required lor the wogespam lnoiviauany we leuaiu, n.iai.,na nn aruity ft, Oft) floofr. for tha earth. 1U1 IHIflUIUUBi wv.vuv... iu. am baskets, for the repairs of tools and materiel, and for the general expenses of the staff attached to the division of me Threshold.

This was the most difficult part of all the work, for It was necessary to carry the earth to a height of 21 metres. Nevertheless, each cubic metre only cost in all 68 centimes, so that it remained within the limits of the original estimate. Since the completion of the service canal above mentioned, the labourers have been divided between the canal for conveying fresh water towards Suez and the continuation of the maritime canal beyond Lake Timsah. This repartition of labour was necessitated by the conditions ot thesupply ot fresh water, wnlon rendered it lmpracticaoie, especially uuriug mo Ami nhnin nf t.hn wnrka for the derivation, to send thither the whole of the contingents, as might have been desirable if the only object in view had been to get to Suez in the shortest possible time. In the new section of the marine canal, commenced between Timsah and the table land of Toussouui, the maritime canal has been dug at once to the full nf mavwua ami in a Hanfh nf t.Wn mfttFAft hftlnW thfi level of the Mediterranean.

The quantity of earth already removed on this point amounts to xne wsier supplied by the maritime trench from Port Said and by the waste weirs of the freshwater canal have filled Lake Timsan to a certain depth. But as there is a very sorious interest to secure the possibility of dry digging the greater portion of the earthwork for opening the maritime canal across the Threshold of the Serapeum, only so much water Is now allowed to enter the lake as to compensate for the evaporation. In order at once to oonnect the fresh water canal which ends at Ismailla with the maritime trench coming from Port Said, a service canal has been made oinn.r t.hn hunks fnr lnncth nf 2.500 metres. This canal, the trifling cost of which will be soon covered by the saving enacted tn tne expense oi carnage, uy tmaouua things seiit from Port Said to Ismailla to reach their destination without change of conveyance, was likewise indispensable with a view to the early working of the quarries of Dgebel-Geneife for the construction of the jetties of Port Said. It is moreover destined to obviate the solution of continuity in the first navi-guble channel which will soon be opened between Port Said and Suez.

Fresh-water Canal. The portion of the fresh water canal from the Ouady to limsan, a uisiance oi aiiomeiren, wimvum. to navigation, it will be remembered, at the end of January lost year. In December following, immediately after the completion of the cutting through the threshold of El Gulsr, we began the canal of derivation from Suez, which Is now open for width of nt. hntt.mt.

And lftA maties at the water line, with a draught of water of lm. 05c, so as to constitute a wide navigable passage for boats and barges. The reasons which haveprevented tliegreaterof thecontiugeuts from being employed on these works have already been explained. They consisted in the necessity of holding a just balance between the desire of arriving at Suez as rapidly as possible, and the difficulties that would have arisen, with reirard to thesuonlv of fresh water and to the transport of provisions ol au Kluus, irom tne organising oi woraing cuin-nanles which should huve extended to great distances beyond the nortions of the canal already executed. The necessity of limiting tne worKing sections oi me iresii water cauai hub iwcuiub more iniperiousduring these last few months, corresponding with the season of low water In the Nile, and during which the difficulties above noticed would be insurmountable.

At present the Suez branch js open, and U60d for navigation for a length of 381 kilomttres from Neflehe. This first part of the work has required the excavation of 1,409,000 cubio metres. The contingents of this month have undorcakeu, and will terminate another section of eight kilometres. We shall then have reached half the whole distance, and shall linve arrived at the right of the quarries of Dgebel-Oenetfe. In the much more favourable condltione in whicli we shall be placed in every respect by the return of the high water season, it certainly will not require more than three or four mouths to execute the second half of the derivation, that is, to arrive at Suez.

The same period will witness the termination of the locks to be constructed at Ismailla for establishing a direct communication between the fresh-water canal and the service canal which connects it with the maritime trench. Therefore, in November next, at latest, there will be a uninterrupted navigable channel between the Mediterranean and the Bed Sea. (Applause.) Fresh Water Conduit. By means of the deviation of the fresh water caual towards 9uez, which follows a direction pa-rallelwiththe maritime canal, we shall be relieved from anxiety as to thesupply of fresh water for the contingents which will be employed in digging the maiitime canal between Lake Timsah ana Suez, in order to assure aiBO a supply oi rresn waierior the labourers and the population encamped on that portion of the line of works comprised between Lake Timsah and Port-Said, in a less precarious and less expensive manner than hitherto, the Company has contracted with a person who undertakes to estaousn a aistrimiuon oi wswt ooiaineu from Ismailla. at the extremitv of the fresh water canal, and following from the threshold the crest of the canal as far as Port-Said.

At the point of departure powerful water-works have been erected the iron pipes of the conduit will be 80 metres In length, and able to supply 350 cubic metres of water por day. When the works of the canal are finished the whole quantity of water will be devoted to the exclusive supply of Port-Said. The machines are in active work, and already furnish water from the Lake of Timsah as far as the threshold thelaying down of the conduit is activelyprosocuted all the pipes are provided. Everything loads us to hope that the water conduit will be effected as far as Port-Said in a delay of two or three months at furthest. This result, taken with regard to tne increasing population of Port-said, for whioh it is so difficult to find aliment during the low water of the Nile, will meet a want of the first matmitudo, and will relieve the Company from one of its most serious pro-occupations.

Port-Said. The dredglngs for the creation of the basins of Port-Said have been continued four dredges, provided with cranes, are devoted to these works the earth extracted serves for the causeways of the town. The construction of the jetty oi the west has been carried on with the aid ot stones taken irom the quarry of Mex 17,000 cubic metres ot blocks were submerged during the last working term. These blocks have been used, first to consolidate the stakes ot the islet with rock, and tnen to constitute the mass of the jetty working landwaru. a no islet, commenced in March, 1862, has been finished in a few months and secured from all damage.

It is provided with powerful cranes for unloading. Not only does it perfectly answer the purpose namely, to facilitate the apposition of the Mex-stones, but it also offers a powerful resource for the unloading of ships, when there are too many in the offing to admit of their cargoes being landed simultaneously. The work of constructing the jetties of Port-Said will take its full development when the completion of the locks of Ismailla, destined to establish a communication between the canal of fresh water and the trench of the sea, shall have enabled us to commence working the quarries of Dgebel-Qeneffe. This will take place in a few months. The methods of extraction and of transport have been studied so as to deliver at Port Said from 1,400 to 1,500 cubic metres of blocks per diem, and thus to finish the construction ot the jetties In two and a half or three years at lunoesc.

Port of Suez. The Suez division has been organised for some months. Definitive studies of the port are prosecuted with a view to a speedy installation of docks. It may perhaps be useful to remember that the recent studies have led to a modification of the track of the canal, which will very perceptibly diminish the importance of the works to be executed at the port, and produce a proportionate reduction in the expense. Buildings.

The progressive development of the docks in the whole line of the canal, together with the recent translation of all the bureaux ot general direction and central service from Da-mietta to Ismailia, have given rise to the construction of a considerable number of new buildings at different points. The detailed and comparative state of all the buildings erected in March, 1862, ana April, 1863, may be thus recapitulated Surface Covered. In March, 1862. In April, 1863. Metres.

Metres. Dwelling houses 21,460 38,762 Barracks and hangars 6,147 15,149 Workshops and 0,224 11,502 Arab villages 10,469 15,811 47,290 80,721 Whence It follows that, during the last working term, 33,431 square metres have been covered with constructions. Dredging. The dredges now at work or ready to be worked are 21 In number, and three more are to be provided. AU those which havebeen used to form navigable channels across the Lake Menzalch (not to speak ot those at work In the basin of Port Slid) have discharged their produce at the very edge of the diggings, thus forming natural mounds of protection.

This first phase of the work being nearly finished, 20 discharging cranes to serve the above mentioned dykes have been ordered from two of the great forges In France, and are expected to arrive In Egypt shortly. Measures are being actively taken for the creation of all the complementary material. Ind pendently of these 24 dredges, the average work of each of which may be set down at 400 metres dally, or at 10,000 cubio metres by the month, the Company has ordered In France, at the beginning of the present year, 20 new dredges, far more powerful than the first, each of whioh Is expected to extract 80,000 cubio metres per month. TheBe dredges are In course of arrival, and will all be at work before the end of the year. The material for executing the dredglngs will then be organised so as to ensure an annual extraction of from 9 to 10 millions of oubic metres.

Conclusion. The exposS which we have just made of the works executed during the last term, and of the actual situation of the enterprise, appears to us, notwithstanding Its brevity, to demonstrate clearly the importance of results already obtained, and to permit us to foresee a probable epoch for Its completion. Every day, so to speak. Is marked by some Improvement In our Installation and administrative routine, by some augmentation of our means of action, by a sensible progress in the advancement of the work. Our present oraaxdsation and th powerful agents that we can now command gives as a right to expect that the next working term will be extremely fruitful.

The clearing the ground by manual labour, the dredglngs, the construction of the ports, all will be prosecuted with an equal activity. We have a conviction that at the next general meeting we shall be in a position to announce great and very serious results. On this subject the past may serve as a guarantee for the future. Voisih, Director-General of the Works. To give you a complete idea of the actual state of our operations in the Isthmus, we will add to the report of M.

Volsin some observations that we have thought likely to Interest you. Our enterprise comprehends 1. Tne opening of a maritime canal between the ports ot Said and Suez. 2. The execution of the above ports.

3. The creation of a canal of freshwater between Cairo and Lake Timsah, bifurcating at this last point to reach Port Said on one side and Suez on the other. The realisation of this programme involved the preliminary natinn nf hntldinim and dwellinir-olaces for the numerous ner- sonnel of agents and labourers, and also for the supplies in material of every kind which It was the more indispensable to provide on a large scale, because the country to be traversed and fecundated by tbe canal was the Desert that is to ssy, the absolute negation of every kind of resource. It also demanded the employment of a considerable stock of machinery, and by consequence the creation of Important workshops for keeping It In good order and for repairs. It required.

In consideration of t.hn ImmniiA tinnan. nf nmrincoof every Bind tlraWn fTOm the coasts of Europe, Egypt, and 8yria, the acquisition of a fleet to protect the Company from the exaggerated pretensions of the freighters, and to enter into an equitable competition with them in the matter nf maritime trumvnrL Finally, it obUsed US to organise a service of intendaaee for the supplies to be sent inland, a postal service, telegraphic service, religious service crease of your social capital. The net produce of the agricultural property figures in the total of the receipts for the sum ol the importance of which, tor the urn year oi hu hAiu which wa Avnregaed ta vou last vear. In deducting the amount of the total expenditure up to the SOth June last, winch, as we have just said, attained the sum of the disbursements previous to the Slst March. date ot the balance of amounts which was submitted to you last year-that is, will be found that thV expenses for the period of fifteen months, ot which we have to gSTe an account, were 27.330,730lr.

1 he above amo nt is tliuT composed Estate (balaiice of purchase money) l.iaofr. 2nd. Furniture, Sid lateres to hare-holders 7 4th. General expenses ot administration in 5'. M7.2331r.

6th. General expenses of con- section material, transport, stores, and works), the outlay ring the last flnanclal period the estate account (so tar as the cost jo is cou-corned) is only given as a memorandum. The domaiue is, ui fS an acceLory undertaking, tor which accounts, the periods for the making up of which are subordl. noted to the epoch llxed for collecting the rents, and the agricultural periods adapted to iocu! customs and to 'he mode ot estivation in practice hi the country. Those dates, which tlons concerning the domaiue can only appeu: in the (J redit account of the general balance for the amount of the net nroduct but ail the elements ot this statement, of both expeu-Sture aid reeeipts, will be submitted In detail to the examina- The sum of which figure.

In the IM ii Interest to shareholders, explain itself. We will conflua ourselves, as In previous years, to presenting to you. In opposition to that item; Die products tae temporary. investments of dls-posable funds by which that sum Is reduced The P' receipts amounts, in the period corresponding to that which embracesthc same order of expenditure, to thesumaf from this it result that the Interest paid on shares for the three last half-yearly coupons imposes, as a charge on the social capital, the sum of only. The debits which figure under the title of general expenses of adminlBtr-ition In France aud in Egypt include the rent, taxes, and insurance of the central administration at Paris, and the agencies by which it is reuresenteunt uexiuiurm uuu w.

salary of the Commissioner to the Company ot iho tgyptian Uo-veruuient the cost of Btamps and transfer of shares the allowance to the Council salaries ol clerks In the Secretary office, in the central accountant's department, In the office for transfers, and in that for disputed altairs, in France aud Inligypt printing advertisements and publicity-in a word, all the expenditure appUcable to the labours and surveillance of the aoMnlstra-tlou properly speaking. The total of the outlay under that head for the fifteen past months reaches the sum of the amount of which is jusUtled by the importance and the multiplicity of the operations embraced by the aduiiuistrat on of the company. The documents relative to the details oi It heaeduv buraemeuts will be, as in preceding yean, laid before your audit committee for examination, in order thut they be presented for your definitive examination in the next assembly. The expenditure relative to the works properly so called, in. wmcn are ciassen.

uiiut mo sn, the cost' of the fpeciai serves ftmfmAm and I dwelling-lfouses, the value of which will be shown the fnven ton Lastly" he works on the credit aide of the company's estate have namrally followed the progression conformable with tee aXity and development given to the operations durtog the last campaign. Those expenses amount to 18,348. 6S6Ir. Forthe reasons which were developed last year in the report of your audit committee, we have to ask that the accounts of the twl preceding financial periods, that a tom.imd documents appertaining to the period included between the 1st May, 1800, and the SOth March, U62, the date of the general balance which was presented to you, may be referred at the same time to the examination of that committee, in order to be submitted to your approbation. The report which you have heard at the opening of this meeting has acquainted you, gentlemen, with the result of the conscientious examination effected by conditions of the goneral treaty of the euter-prise made on the principle of an allowance on the sums expended, which existed at that period, the labour of the com-inittcf, so far as the special disbursements for the works were concerned, consisted in a verification of the regularity and classification of the papers ot expenditure, with the reserve of a final settlement to intervene at the completion of the works between the Company and the goneral directing contractor.

But fresh circumstances, the origin and cousequences of which we shall explain farther on. essentially favourable as they are to the cheap execution of your operations, having brought about the annulment of the treaty with the Hardon Company, it became necessary to proceed immediately to the denrnto liquidation otall the expenses relitive to the works, and consequently to complete the verifications already produced by a measurement by both parties of the works executed, aud by a proof by inventory of the state of the material in use, and the situation of the storehouses. It was in fact necessary to make a general survey of all the previous operations of the works. A certain time was, for those reasons, necessarily granted to the general contractor fur the final production of hU accounts, and that limit was tlxed for the end otthe current financial period. Your committee has considered that it was advisable to adjourn until the same period the conclusion of its examinations in order to present to you a complete report, the result of whioh would be submitted to you in your next meeting.

Butyour committee at the same time admitted the complete regularity ot the accounts relative to the administrative expenses during the period submitted to its examination that is to say, from the 1st May, 1860, to the Slst March, 1862, and that body proposes the passing of those accounts by the general assembly. The resolution which we shall submit to your approbation at the present meeting responds to the wish of your committee. We ask you, by adopting it, to decide 1st. That the accounts of the expenses of the administration from the 1st May, 1360, to the Blst March, 1862, are adopted 2nd. That the account of expenditure of all kiuds from the 1st May.

1860, to the 26th January, 1863 and also the total ot the accounts of the linuldation, at the latter date of the former contract by covenanted administration, shall be referred to the audit committee nominated by the assembly for examination. This latter part of the resolution will bring us back, for the annual verification of the accounts, to a regular financial period to be closed on he 31at December, which we propose to you to adopt for the future. There remains for us, gentlemen, in closing this exposition of your financial position, to give you an account of your current assets, and the resources which they assure to you. This question leads us to apeak to you specially on the subject ot the financial conventions rnrentlv with the Viceroy of Egypt. You remember, gentlemen, the origin of the current account opened upon your books to the Egyptian Treasury at the time of the formation ot the Company.

By the special convention of the 6th August, 1860, of which an account has been rendered to you, the Egyptian Treasury was eon tltuted your subscriber for a total number ot 177,642 shares, and the payment of the first call of lOOfr. tier share, representing at that period the sum of was realised in Bonus ueanug i thn lot rammi-v and iiavnble monthly In 1863. 186, 1865, and 1866. Later, an agreement was made with his Highness that the supplementary payment of SOOfr. per share -unthinnv as noo iwifr should be realised by the company.

and on account of the Egyptian Treasury, by means of trentenary bonds, reserved as a privilege to shareholders. The bases of this project of a convention were submitted to you and received yourapproval in your meeting of lastycar; but the illness to wnion nts tugnneas monamniea oaiu so yroiuunuiuij Buw rnimhwl and from Whtah. iliirlnff his StaV Ul EUTOPe, he already suffered severe attacks, did not permit the realisation of the object of the negotiations, the prin-ninio nt whii-h HiA viaotov hail authorised us to propose to you to adopt. The death ot the Prince, who was the promoter of vour undertaking, only delayed by a few months the effects of tlie engagements wmenne iiau tuuiiwwu wuiww lnvnllv rftttumiiiad and confirmed by Prince Ismail, who now governs Egypt, aud who, from the first day, manifested the justest and most kindly dispositions towards your undertaking. The new Viceroy, after having ascertained the stateot his finances, and after having assured himself that the revenues of his treasury, if administered with order and economy, were sufficient to cover all his engagements, expressed to us the aesire to realise in a uuwv uiauutu, uj ments ranged over a period of two years, the instalments due upon his shares.

A convention to that effect was made between his Highness and the Company on the 20th March last, and the questions relative to that important negotiation were definitively settled on conditions the meet satisfactory to your Interests. By the terms of that convention, his Highness save to the Company all the facilities necessary for the negotiation of the first series of Treasiiry Bonds delivered to it by Hehammed Said, the capital of which amounted to The Egyptian Treasury, besides, engaged to pay off entirely the Kaluga nnnnnnt that is. the sum of by means of regular successive payments, at the rate of a month, to commence ou the 1st January next, and represented at need by negotiable titles. From these duTerent measures it results that your aieta are balanced in the following manner: 1st Cash in hand, outstanding or running accounts both in France or in Egypt, 2nd. nt the mvmenta of shareholders in orrear, 3rd.

Balance of the negotiation of the first series of txmus ot the Egyptian xreaBury, s.iwi.iosir. produce oi me payments to be received from the Egyptian Treasury at the rate of a month, from the 1st January, 1864 total of the current assets, 68.298,6 ISfr. The Important resources are more than sufficient to provide largely for all your requirements, and we have the gratification to announce to you that we do not anticipate any call for funds before your next year's meeting. Another convention, advantageous to your interests, and which we must also submit for your approbation, was at the same period concluded with the Viceroy for the establishment of the fresh water caual from the source at Boulac, near Cairo, and the completion of the section of the canal, 00 kilometres (56 miles) long, which Is to unite the source at Cairo to the sections already open to navigation. The execution of this seotion ot the freshwater canal through the cultivated parts of Egypt, invnivorl t.he Onmnanv in the exDenses and difficulties of expropriation, and exposed it to the danger ot disturbing, by unusual operations in a Mussulman country, the local customs and ordlnarv forms of the Egyptian administration.

The Vice roy was himself desirous to avoid the disputes which the direct L.n,n h.t mrtnt the canal by the Company would have iven rise to. An agreement was therefore come to, by mutual accord, tost me iwmpauj ouuui a h. mid that the Egyptian eovern- xsent should on the other hand undertake to establish, at iU own expense, the source of water at Cairo and Its junction vrith the Company's canals; stipulation being made that these works shoutobe terminated within a stated period according to plans drawn op by the Company's engineers, and with all the services anu ooiigauuus mui section of the canal If It had been constructed by 'the Company itself. The necessary outlay for this labour has been estimated at lCUWO.OOOfr. Your estimates are consequently reduced by an equal sum.

We have calculated that the above sum was an equitable representation of the value of the lands restored to the EeyntiaB government, the extent of whioh is limited on the west bv the boundary of the cidtivated land belonging to private individuals, and on the east by the high land of the desert which bevond the reach of the irrigations. Thus is decided to the attemptfeiw been nude to raise on the subject of that clause in sear concession. SBCOND PAET. STATE OF THE WORKS. Beoort of the Director-General of the Works -To give a mnwt idea otthe importance of the works executed since the last mineral assembly, it will suffice to establish a comparison rwSeS Sffl iMlti at present obtained and the state of the in nnr last year's reoort Maritime CanaL-On the 1st March, 1862, a single i canal existed fSTlatJc tank for the service of the works between Port SatdM-FarStnl for a length of 62 kilometre In this cans) ffte.

tiSgiW OJacJw worked, and the conveyance of pleasantness with England, It was agreed that we should not' persist in urging a public avowal ol authorisation by the Porte. Nor wonld tbe Divan, on its part, lay any obstacle'in the way of our executing the commission we had received from the Viceroy. We therefore sent minute instructions from Constantinople to our friends In France and foreign countries, prescribing to them the necessary measures for opening tho subscription and constituting the Company, in order afterwards to proceed to tha execution of the works. Before our departure we read these instructions to the Grand Vlster, who approved of their contents) and of their being sent. We left a copy of them in his hands, and transmitted another copy to the ambassador of France'.

From this very explicit document we extract the following passage, stating the situation ol affairs, such as the Grand Vizier had accepted it: "The Universal Suez Canal Company provided with the regular concestsionof his Highness the Viceroy of Egypt, to which tha government of his Majesty the Sultan offers no opposition, in so far as his rights of suzerainty and the interests of his empire are concerned, will nevertheless have the wisdom not to excite a conflict between the policy of progress and that of the past and In order to avoid affording bad faith a pretext for taking advantage of prejudices, or causing misunderstandings in an affaii which should preserve Its commercial and general character, it will not claim tbe assistance of any of the governments on whose support it can rely. But It will constitute its definitive organisation, it will resolutely piooeed onwards and complete the work, supported by the capital of its subscribers of all countries, ana by the public opinion ot the whole world." (Loud applause.) The subscription was opened tn November, 1858, at nople, as well as in all other cities. On the 5th of January, 1859. we gave an account to the Viceroy of the performance ot our commission In a report, a copy of which we sent on the 1st ol March following to tbe Grand Vizier Aali Pacha, in conformity to his hlghness's intentions, reminding him how faithfully we had fulfilled our promise not to give rise to a diplomatic conflict between Turkey and Eng. land, and communicating to him the plans off tlie works toba executed in the Isthmus.

The facts we have here stated prove that the only obstacle to the canal was not at Constantinople but in London. Those who opposed the work in England felt uneasy at its progress their efforts to discourage and disunite the shareholders by the false reports they spread were vain. Theylthen took advantage of the Company's moderation and of its circumspection to make the Turkish ministers believe that the Powers that had protected the undertaking had abandoned it to its fate, aud that Turkey would expose herself without any hope of assistance from other quarters to all tho anger of England. (Laughter.) The Viceroy was also menaced, but lie always contented himself with saying, Write down what you have told me, and I shall let the other Powers Judge and if it be found that I am wrong, shall submit." This answer would naturally for a time put an end to the persecutions to which tills nnnce was exnosed butt at Constantinople the Porte was Intimidated, reluctantly bowed its head, and entrusted Mouktar-Bey with tlie celebrated mission of causing the works to be suspended until the supposed political questions should be decided. A simple telegraphic despatch from the Government of the Emperor was sufficient to cause Mouktar-Bey to return to Con-stantlnople as he had come (loud and prolonged applause) and to restore to the Porte all its persoual goodwill.

The works were continued without any further obstacle. Nevertheless, after this incident, and still In the characiu." of a commissioner from the Viceroy, we again repaired to Constantinople in order to avoid any further complications. A new Grand Vizier, Menemet Ruchdl Pacha, convoked the Council of Ministers ac the request otthe French'Ambossador, and invited it to examine the utility otthe canal and its advantages for the interests of.tha empire. After a debute which lasted for 17 sittings (exclamations) the Council pronounced in favour of the undertaking: the Grand Vizier considered it an honour to himself to declare to us that, even were Turkey to find any advantage in it, it must) still give a favourable opinion in consideration of the benefits which this work promised to the whole world. Lastly, a note was addressed to the Governments of France and England, Inviting them to settle between themselves the political and international questions which the neutrality of the passage might; give rise to, but maintaining the completest silence as to the execution! works, which thereby received a new Implicit approbation.

It was a return to the recognition of tha instructions which bad been given us by the Viceroy at the time of our negotiations in 1858. "Two distinct objects," said these Instructions, "must not bs mixed up together. There are In reality two very separate questions in this affair: that of the execution, and that of neutrality. Let us begin by the first, wilhout which the second does not exist. It will afterwards be eay to come to an understanding as to the best means of securing the neutrality of the passage without detriment to its execution for many a long year would elapse if it became necesary to carry on long negotiations.

But proceeding otherwise, it would at once become evident that there was no intention of doing anything." From that moment, in fact, until the receipt of the note of the 6th of April, revealing the last English intrigue to the astonished eyes of Euro the works of the canal continued without any interruption. But when Sir Hemy Bulwer had stated to Lord Palmerston the impresdous he had received on his visit to the Isthmus, the progress of the works, and the rapid fulfilment of the fact, the British government judged it to be urgent to make a lost desperate effort. This led to the plot which preceded the note of the 6th of April, and the noise which it occasioned. A curious coincidence should hero be noticed. Mouktar Bey started on his mission in October, and the first general assembly had been convoked for the 16th of November following.

The recent Anglo-Turkish plot was to break out In Egypt in the beginning of April, and the General Assembly was convoked for the 15th of May. By the two attempts made before the adjournment of these assemblies wa3 known, was it not hoped that confusion and disunion might be caused among the annual assemblies of shareholders? British diplomacy has employed so many questionable means against us, that it may be suspected of having relied upon the efficacy of that. The Intrigue failed, not only through tlie promptness, the timeliness, and energy with which tbe government of the Emperor declared that It would not permit the rights of a company, in which French capital was honestly engaged, to be jeopardised (loud applause) but also by the attitude and wisdom ol the Sultan during his stay In Egypt. This sovereign, for whom the future perhaps reserves a great part in the inevitable transformation of his government, perfectly understood the trap which was laid for him In attempting to induce him to act administratively in Egypt that is, to violate the conventions of 1811. He resolved to be merely the guest of the Viceroy.

Nothing could shake his wise resolution of respecting the Interior Independence of the Egyptian government. He went to pay a pious homage to thetombofMehemet All, the founder of the Egyptian dynasty, to that of Mohammed Said, the creator of the Suez Canal (applause) aud by a last and very expressive act he raised the Viceroy's plenipotentiary, who had just signed the recent arrangements with the Suez Company arrangements which destroyed the last hope of British opposition to one of the highest dignities of the empire. We do not hesitate to affirm that Abdul Aziz's opinion Is favourable to the execution of the canal, and that the best understanding has never ceased to exist between his Highness and tbe Viceroy. We have just alluded to the conventions of 1812, by which the present condition of Egypt with respect to Turkey has been settled. It is expedient for our cause to define that condition.

The government of Egypt has been granted, under the political suzerainty of the Sultan, to Mehemet All and his descendants. This hereditary power has all the attributes as well as all tha realities of a government which is perfectly free In its action. On condition of paying an annual tribute, he has the free disposal of the revenues of Egypt, and the right of laying on taxes, distributing, and collecting them. He keeps In his pay a national army and navy, to which he appoints officers of all ranks. He appoints and pays all the civil and judicial functionaries of the country.

He, by his sole authority, undertakes the works ot public utility and fortification which be thinks necessary for the welfare and security of Egypt. He makes and enacts all laws and decrees relating to his Interior administration he creates, motn proprio, all the institutions he considers expedient. He has bis Ministers of Foreign Affairs, the Navy, War, and the Home Department, entirely dependent upon him alone. He has his Privy Council, his Grand Council, his provincial and communal councils Lastly, foreign powers accredit not only consular but also diplomatic agents to his court. Tbe envoys of France and England are especially invested with the diplomatic character, and even have the official title thereof, which was not the case before the settlement of 1841.

TheconventlonsoflSll have constituted the respective rights of Egypt and Turkey, and have been guaranteed by tbe five great Powers. They are, therefore, not only the law existing between Egypt and Turkey, but the European law between Turkey and Egypt on the one hand, and the five great powers on the other. Hence, neither the suzerain nor tho vassal government can modify the conditions of their reciprocal relations and rights without the previous consent of tho powers. These relatione form part of the general law and political balance la the East. The Sultan can no more renounce his right of suzerainty over Egypt than the Viceroy, who isonly a Mufruotuary of his power, could give up to Turkey a single one of the attributions pertaining to his home government, and to be transmitted unimpared to his successors.

These principles are incontestable, and England Is even now consenting tfem by a great example. She conse nta to glveJHw TomIslaiidB no to Greece, but she declares that her consent, tuatotGree SSm-L not sufficient for the cession to fie legator tfflSSSSiaa iVai required. fffrRrhPSKlnaccorTrttii the Porte to restrict the to introduce a jtrkMnZ theTsffmuvf Suez -territory situated 10 leSvthtathe frontier line i which separates Emit from Tnrkey-any project of that nature would faU to the ground before the veto of France and the other powers. In 184ft after he events of Syria and the return to the direct adminls-tliitlon of the Porte over that province the inhabitants if ihinh have not ceased to regret tho goremment ot Ibrahim Pacha England wished to complete the overthrow of Mehemet All, and place Egypt under the zway of the Porte. The English Ambsssador at Constantinople, Lord Fonsonby, since Lord Stratford de Redcliffe, wrote to the Grand Vizir Mehemet AU, and all his family, must be sent naked to the Desert." France energetically opposed those projects she claimed for Mehemet All and his descendants tne hereditary possession of the government of Egyyt, and made the rejection of her demand a casus belli.

England endeavoured to introduce some modifications into the French propositions she demanded that the Sultan should have the right of choosing the chiefs of the Egyptian government among all the members of the family of Mehemet All lndlstinctively, and that the princes once named should be Irrevocable, it win ne readily understood mat uj accede to that demand would have been Introducing a perpetual element of discord, rlvaUty, and anarchy among the members of the hereditary family, and, as a consequence, Into the administration of Egypt. It would have been making an administration, which the object of the mission was to render Independent, accessible to all Intrigues. English diplomacy then manlfeated all its Intentions. It didnot wish that tho Egypto Government should rest upon regular and stable bases, hoping tn the disorders of the regime defended by her would leave way open to those who should wish to overthrow it for thelrowu benefit. Tha Powers understood the situation, and.

standing their recent alliance with England in French policy In the Bast, Russia, Prussia, and AuWa Wf the togush amendment, aud adopted purely and WiZ. French propositions, which then alone became wwjf1 Such Is thehlstory, very worthy of our attention as it tu.