The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1871-11-15
The Panama Railroad.

From the CaIao and Lima Gazette Aug. 2s.
! Anew weeks ago we addressed ourselves TO the
subject of the decline in the prospects of the Panama
Railroad Company, and stated that the Company
had been neccssitated to address the Government
of Columbia, urging the mpossibility Of continuing
to pay the enormous subsidy of S25oO0O per year,
or nearly 500, gold, day. and requesting that in
''lieu thereof percentage the profits, as by the
old contract, should be instituted" The Govern
ment at Bogota has since replied to the communi-
cation, and the whole of the important correspond
ence was published by in edition of the 22nd
instant.
The reply of the government must be regarded as
most unsatisfactory to the Company, and to the
large number of persons on this coast deeply in
terested in the maintenance OF the line across the
Isthmus True, there is not in the letter from b.
gotta direct refusal to accede to the terms proposed
by the Company, but the tone which peryades the
entire communication indicates very clearly that
there is very little inclination to do so. The Gov
eminent, we are told, "can not formally take into
consideration any proposition of the Panama Rail
road Company, tending to lower the subsidy receiv
ed by the Government, without having previously
obtained thorough knowledge Of The true Situation
of the Company that is TO say, the traffic in mer-
chandise and passengers via Panama; the annual
products and expenses for the last nineteen years.
counting from January i 1852; the tariff of freight
and passage; the product of each tariff; the traffic
movements Of rival adeakiagsr with their different
tariffs aud the prospects which, from all these facts
may be drawn in favor of the future of Panama
The Executive expects this last data from the Rail
road Company This must be admitted to be
business like; and that there will be no difficulty in
the Government obtaining the information required
as far as it can be furnished, may be gathered from
the concluding portion OF Mr.. Hoadley's second
letter, in which he says:
ain conclusion, can assure your Excelleucy that
If other proofs are required, from the books and
accounts of the Company, 10 verify the facts which
have induced the Directors to take this step, the
books and accounts viii be exhibited 10 whatever
representative the Government may authorize for
examining them
That there is no Misrepresentation whatever in
the documents Of the Company is quite certain the
simple fact that at the end of 1868 shares were sold
at 500, and now they below 50. proves this be-
yond question That the state of things represented
by Mr.. Hoadey, the President, proves conclusively
the Company can not continue the subsidy is GER
tain as it would be better TO abandon the enterprise
than to continue it as tax upon the Shareholder
The result would be ineEitable-the road would be
forfeited to the Government and then the questions
would arise: What good would il be to III in what
way could the Government work It that would Sc
cure to it an amount of profit equal 10 the the
Company is still willing to secure, even In lts