When the Canal was about half finished it received the most tremendous
endorsement by every interest of New Orleans in its history. The
question was put squarely before the people: "Do you think it is a good
thing, and you are willing to be taxed to put it across, and, if so,
how much?" And the answer came without hesitation: "It is absolutely
necessary to the industrial progress of the city. We must have the
Canal at all costs, and are willing to be taxed any amount for it."
On September 24, 1919, George M. Wells, consulting engineer, made a
report to the Dock Board, showing that the last bond issue of
$6,000,000 had been exhausted, and about $5,000,000 more was needed to
finish the Canal.
This was in the last days of the Thompson Board, and it took no action.
The Hudson board entered upon its duties October 2. It comprised
William O. Hudson, president; William A. Kernaghan, Rene F. Clerc,
Albert Mackie, Thomas H. Roberts. Later, Mr. Roberts resigned and Hugh
McCloskey took his place. All are sound business men, with the
interests of the port at heart.
They found, in the bank, only $2,067,845.37 to the Industrial Canal
Account. After deducting the obligations already made there was left
only $112,064.43 to continue the work. Without a public expression from
New Orleans they were unwilling to incur the responsibility of issuing
$5,000,000 more bonds.
President Hudson called a series of meetings of the representative
interests of the city to decide what was to be done. As the people of
New Orleans had decided to begin the Canal in the first place, it was
only right that they should determine whether the undertaking, costing
five times as much as the original plan, should be carried through.
The governor, the mayor, presidents of banks, committees of commercial
exchanges, the president of the Public Belt Railroad, the president of
the Levee Board, newspaper publishers, labor leaders and prominent
business men were invited. Likewise, a general call was made to the
community at large to express an opinion as to finishing the Canal.
At the meeting of October 17 the city made its answer.
President Hudson outlined the attitude of the Dock Board as follows:
"The board has no feeling of prejudice against the completion of the
Canal. We are in favor of it. We are anxious to complete it. It was
fostered by the citizens of New Orleans.
"The floating of the bond issue is a simple matter, if you men think we
ought to do it; but where is the money for meeting the interest to come
from? The $600,000 interest on bonds now outstanding is being paid,
$550,000 by the Levee Board, and $50,000 by the Public Belt Railroad.
The Public Belt's share is paid from its earnings; but the Levee
Board's share is being paid by direct taxation on the citizens of New
Orleans. Must we increase that tax? I personally won't object to any
taxation as a citizen to pay my part towards financing the Canal."
"I want to see the canal completed," said Governor Pleasant. "But it is
up to the people of New Orleans to say whether they are willing to
assume the added obligation."
R. S. Hecht, president of the Hibernia Bank, and a recognized financial
leader in New Orleans, then arose.
"I feel," he said, "that all who have the future of New Orleans at
heart must agree that we are here to discuss not whether the Canal is
to be finished, but how.
"Finished it must be, or our commercial future will be doomed for many
years. If the Dock Board were to stop the work, it would forever kill
its credit for any other bond issue that might be proposed for wharf
development, new warehouses, or anything else.
"The cost of the canal is a surprise to everybody. I was present when
the cost was originally estimated at $3,500,000 with a leeway of
$1,000,000. I said then, and I repeat now, that the canal could be
financed if the people of New Orleans stood squarely behind it.
"The cotton warehouse and the grain elevator cost a great deal more
than the original estimates. So the Industrial Canal, though it is
costing more than anticipated, because of the increased cost of
material and labor and the increased size in the Canal, will, I feel
sure, be justified by the development of the future.
"Are we to be taxed for fifty years for our investment of $12,000,000
and get no return, or are we willing to pay a little bit more and get
something worth while?"
That expressed the sentiment of the meeting.
[Illustration: BUILDING THE LOCK]
"The people of New Orleans," said Hugh McCloskey, financier and dean of
all Dock Board presidents, "have never failed to meet a crisis. It is
the duty of the Dock Board to finish the Canal, no matter what the
doubting Thomases may say."
Similar expressions were made by Thomas Killeen, president of the Levee
Board; Thomas Cunningham, of the Public Belt Railroad; D. D. Moore,
editor of the Times-Picayune; James M. Thompson, publisher of the Item;
B. C. Casanas, president of the Association of Commerce; L. M. Pool,
president of the Marine Bank; J. E. Bouden, president of the
Whitney-Central Bank; Bernard McCloskey, attorney; Frank B. Hayne, of
the Cotton Exchange; Jefferson D. Hardin, of the Board of Trade;
William V. Seeber, representative of the Ninth Ward; Marshall Ballard,
editor of The Item. Others present, assenting by their silence,
included John F. Clark, president, and E. S. Butler, member of the
Cotton Exchange; W. Horace Williams, of Doullut & Williams Shipbuilding
Company; E. M. Stafford, state senator; C. G. Rives of the Interstate
Bank; S. T. DeMilt, president of the New Orleans Steamship Association;
R. W. Dietrich of the Bienville Warehouse Corporation; Edgar B. Stern,
Milton Boylan, W. H. Byrnes, J. C. Hamilton, and about thirty other
representative business and professional men. Mayor Behrman, John T.
Banville, president of the Brewery Workers' Union, and George W. Moore,
president of the Building Trades Council, at a subsequent meeting, gave
their endorsement.
With only one dissenting voice, these meetings were unanimous that the
Industrial Canal must be completed at all costs; that without it, the
growth of the city would be seriously interrupted. The one protest was
by the Southern Realty and Securities Company. It was made October 23
against the Levee Board's underwriting the interest on the new bond
issue.
On that date the Levee Board unanimously voted to guarantee these
interest charges, amounting to $375,000 a year. This brings the total
being paid by that body out of direct taxation to $925,000.00 a year.
The other $50,000 is paid by the Public Belt Railroad.
To provide a leeway against the engineer's estimates, the Dock Board
made provision for a bond issue of $7,500,000, but actually issued only
$5,000,000 worth. This was taken by the same syndicate of bankers that
had taken the previous issues, but this time they paid par. That was a
point on which President Hudson had insisted. The contract was accepted
December 10, 1919.
And the work went on, with every effort concentrated on economical
construction.