The plan, at this time, was to have a lock-sill only 16 or 18 feet
deep. This would be sufficient to allow empty ships to enter or leave
the canal, but not loaded. The mere building of ships was thus the
principal thought, despite the rhetoric on commercial and industrial
possibilities. Perhaps the leaders who were beating the project into
shape were themselves afraid to think in the millions necessary to do
the work to which New Orleans finally dedicated itself; perhaps they
realized that the figure would stagger the minds of the people and
defeat the undertaking, if they were not gradually educated up to the
mark.
Meeting on February 15, 1918, the Dock Board resolved unanimously to
put the plan through, if it proved feasible. W. B. Thompson was
president of the board; the other members were Dr. E. S. Kelly, Thomas
J. Kelly, B. B. Hans and O. P. Geren. Later, E. E. Lafaye took Mr.
Kelly's place on the board.
The Public Belt Railroad board had in the meantime (February 13) voted
to pay the Dock Board $50,000 a year; and the Levee Board (February 14)
to give $125,000 a year. As the plans were increased, the Levee Board
later increased its bit to $925,000.
Mayor Behrman, Arthur McGuirk and R. S. Hecht laid the proposition
before both bodies. Action was unanimous. Colonel J. D. Hill, speaking
for the Belt Railroad Board, said: "I am glad that at last there has
been outlined a plan which seemingly makes it possible to construct the
canal. It will not only result in the eventual construction of a big
fleet of ships, but will prepare the way for a tremendous industrial
activity in other lines. The consensus has been that a navigation canal
is needed to induce large manufacturers, importers and exporters to
establish their factories and warehouses here. This project will be the
opening wedge."
Members of the Public Belt Board voting, besides Colonel Hill and Mayor
Behrman (ex-officio) were Ginder Abbott, Arthur Simpson, John H.
Murphy, W. B. Bloomfield, Adam Lorch, George P. Thompson, Thomas F.
Cunningham, Victor Lambou, Edgar B. Stern and Sam Segari.
Members of the Levee Board voting were: William McL. Fayssoux,
president, Thomas Killeen, Thomas Smith, John F. Muller, James P.
Williams, John P. Vezien.
W. B. Thompson, president, put the matter before the Dock Board. "The
idea" he said, according to the minutes of the meeting of February 15,
1918, "had always received his approval, and he thought that the mayor
would recall that in the preparation, he with the city attorney, had a
very considerable part in framing the same, and he had taken an active
interest in the matter; he had always been in favor of the Industrial
Canal, and he believed in the possibility of development of New Orleans
through this, as a terminus; and it was entirely logical that the Dock
Board should do all that may lie within its power to bring about the
successful consummation of this project; the only doubt in his mind
being as to the feasibility of the project from the financial
standpoint. It seems now, however, that a plan has been devised,
through efforts of the mayor and Mr. Hecht, which gives every promise
of success. The co-operation of the city on behalf of the Public Belt
Railroad, and of the Levee Board, apparently removed the difficulties
in respect to the financial end. The Dock Board welcomes the assistance
and co-operation of the city and of the Levee Board, but inasmuch as
these boards are merely contributing certain amounts per year, and
whereas the Dock Board is the obligor in respect of the principal of
the bond issue, it devolves upon the Dock Board to use great caution
before committing itself to any particular plan in a matter which so
vitally affects the credit of the Dock Board, the city of New Orleans
and the Levee Board. President Thompson further stated that he
unhesitatingly endorsed the project and that he was sure that every
member of the board agreed, and the board would be glad to give prompt
consideration to the particular plan in question and reach some
conclusion which will insure the realization of this great project."
To estimate the probable cost of the canal, Mayor Behrman appointed the
following committee of engineers: W. J. Hardee, city engineer; A. F.
Barclay, engineer of the Public Belt Railroad; George G. Earl,
superintendent of the Sewerage & Water Board; C. T. Rayner, Jr.,
engineer of the Levee Board and Hampton Reynolds, contractor.
On February 22, the committee reported that, not counting real estate,
a canal could be built for $2,626,876. This estimate called for a lock
600 feet long, 70 feet wide, and 18 feet deep, and a barge canal to the
lake. The cost of constructing the lock was put at $1,370,660, and of
digging the canal $1,256,216.
This report was first received by a special committee composed of Mayor
Behrman, W. B. Thompson, Col. J. B. Hill, R. S. Hecht and Major W. McL.
Fayssoux. This committee referred it to the Dock Board, which adopted
it February 22.
Financial arrangements were completed at this same meeting. In order to
have sufficient to pay for the land which would have to be expropriated
for the canal, and to give some leeway, it was decided to issue bonds
for $3,500,000, with an option of floating $1,000,000 more within 30
days. A financial syndicate, consisting of the Hibernia, Interstate and
Whitney-Central banks of New Orleans, the William R. Compton Investment
Company of St. Louis, and the Halsey, Stuart Company of Chicago, agreed
to take the entire issue. The bonds were to run 40 years and begin to
mature serially after 10 years. They were to bear 5 per cent interest,
and to be sold at 95. They would be secured by a mortgage on the real
estate of the canal site, and by the taxing powers of the state, for
they were a recognized state obligation, as Arthur McGuirk, special
counsel of the Dock Board, pointed out in his opinion of July 10, 1918.
He added: "I am likewise of opinion that said bonds are unaffected by
any limitations upon the state debt, or upon the rate of taxation for
public purposes; that the said bonds are entitled to be paid out of the
general funds, or by the exercise of the power of taxation insofar as
the revenues, funds or property preferentially pledged or mortgaged to
secure said issue may fail, or be insufficient, to pay the same."
The following sat with the Dock Board and its attorneys at the meeting
of February 22: Mayor Behrman, J. D. Hill of the Public Belt Railroad,
R. S. Hecht, president of the Hibernia Bank, J. D. O'Keefe,
vice-president of the Whitney-Central Bank, C. G. Reeves,
vice-president of the Interstate Bank, W. R. Compton of the Compton
Investment Company, H. L. Stuart of Halsey, Stuart and Company, W. J.
Hardee, city engineer, and Hampton Reynolds, contractor.
The selection of the site was left, by the state law, to the commission
council. There were a number of possible routes, and the selection was
made with the utmost secrecy to prevent real estate profiteering. At
first the area bounded by France and Reynes streets was chosen. This
was on February 28. On May 9, however, the site was changed to the area
bounded by France and Lizardi streets, north from the Mississippi River
to Florida Walk, thence to Lake Pontchartrain. This is a virtually
uninhabited region in the Third District, through the old Ursulines
tract. The site chosen for expropriation is five and a third miles long
by 2,200 feet wide, 897 acres.
For this land the Dock Board paid $1,493,532.24, which is at the rate
of $1,665 an acre. The valuation was reached by expropriation
proceedings.
In the meantime, Commodore Ernest Lee Jahncke had asked to be allotted
the first site on the Industrial Canal, and Doullut & Williams for the
second. Both were for shipyards. The Foundation Company, which was
operating a number of shipyards in various parts of the country, sent
an engineer here to see if it would be feasible for the concern to
build a shipyard here.
Even before the piledrivers and dredges were on the job, the millions
were being counted for investment in the city whose remarkable
enterprise had won the admiration of the country.