The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-11-14
MORE AMERICAN STEAMSHIPS.
The Panama Railroad-A New
Richmond in the Field.

Att meeting or the directors ofthe Panama Railroad
held yesterday 10 take into consideration the ques
ton OF building line OF TO run between New
York and Aspinwal and Panama and san Francsco
the following report and resolutions adopted -
NEW YORK, Nov H. 1875
To THE BOARD OF Directors THE PANAMA RAILROAD
GKsrLsmES-The undersigned appointed on the 27th
of October last a committee TO report as early
practicable what arrangements can be made 70
tho necessary TO form line, IN connection
with the railroad Of this company between New York
and San Francisco and what In our opinion, would be
the expenses and receipts OF such steamers, ana 10
recommend the mode Of forming said line and how TO
provide the necessary funds, report as tonows-
Your committee of the opinion that the INTEREST,"
OF the company would be promoted by us owning
and operating necessary TO run tri-monthy
between New York and San Francisco and a line from
Panama TO Central America which would require
steamers follows Between New York and Aspln-
wall, three steamers between Panama aud San Fran
cisco, five steamers; Panama and Central America,
two. Total, ten. Cost of ine-Eight steamers Tor
through line at about s425 600 each, So 100000 two
steamers Panama and Central American route, at
$500 900 each-$400, 600 Total ten steamers az
81 100000 The company own wharves at Aspinwa and
Panama, a machine shop in AspinwaL steam tugs and
launches lighter freight and passengers and all that
is necessary for the line except the We have
Those for the line to San Francisco eighty capable OF
accommodating 200 cabin and 800 steerage passengers
and $500 tons offreght Those to Central America for
the accommodation OF thirty cabin passengers and 200
tons of freight On inquiry ascertain that
moro than two three steamers, all ready built and
tered Even those not just what would be desired
IL is easy find steamers suitable TO to Central
America as they not required to be of American
build and DO purchased when required
On the Sd inst your committee addressed letter to
the Pacific Mail Steamship Company OF which we annex
copy, and we believe we expressed the sentiments or
this Board in said letter No answer TO said
communication has been received from the Pacific
Mail Steamship Company We applied TO diff
ferent shipbuilders and asked for proposition
70 furnish this company with the eight steamers
required and received tho which are annexed
IN ria ia are 70 he
trip each month and after July next, two trips
in September and three in December OF next year The
company will be able TO procure the smaller steamers
as soon as desired.
ESTIMATED RECEIPTS AND EXPENDITURES
We have obtained all the information possible to en-.
able us to form correct Judgment as 70 the probable
expenditures and receipts, and have had to aid
knowledge of the receipts and expenses of the steamers
In the line OF the Pacific Mail Company We are salts
fed that estimates safe and we should look for
better results than estimates would indicate. We
estimate that the steamers in round trip be-
tween New York and san Francisco would each
receive at least 100000 Total expenses not
exceeding $50 0O0 net operations of each round
trip, $50 600 Three trips each month would give At
least estimated profit OF $l50O00 per month"; or per
provide to raise funds for the purchase of the
ships foows-Issue 81 600 600 of bonds, at seven
per cent guaranteed interest," making $500 600 payable
January l. $780, and 800, 900 each year thereafter,
making the last bonds due January l, 1889. Until
January 1879 three years set apart $780, 900 each
year OF the net earnings TO provide an insurance fund
TO replace ships that may be lost We believe this
amount would be more than ample for this purpose
BY deducting interest on the bonds, S2SO,OOO, ana
500 600 for the three years for insurance fund and after
three years $500 900 on the principal would require
$3.50 900 per annum, which would leave ST. 900 to
be divided among the stockholders in addition TO our
present earnings. We certain from the oilers we
have received that place all the bonds necessary
at par recommend that the bonds be subscribed
for before incur the liabilities in the purchase of the
ships. We satisfied the bonds all be subscribed
for without delay when the company has decided to
purchase the ships We further recommend that tho
usual dividend of twelve per cent shall be continued
from the earnings OF the railroad until the ships are
completed, and dividends increased from additional
earnings by the steamers. In making estimates OF the
Grafton tho earnings of the two small steam
ers from Panama to Central AEerica
which we have no doubt would be con-
siderable, and would furnish the railroad and
through steamers with large amount OF hgh-priced
freight Neither have we estimated the increase or
over it. In conclusion your committee would recon-
mend the adoption OF the following
RRsoLuToNs
Resolved, That a committee consisting Of Messrs. Garr
Panama Company, be appointed into contract
the purchase by this Of ships
make monthly line In connection with the railroad OF
this between New York aud san Francisco anu
line Panama and Central America but such
binding this company until the is rati
fed by the Board OF Directors after the drawn In
form
Resolved That the company will Issue It's bonds and secure
the by mortgage its property to the amount OF
1880 and S4o00 900 each first day Of January there
after until the whole are paid; said bonds to bear
annual the rate Of cent per
payable in United states legal tender currency a the
company the city Of New York provided this
shall not be enforced until after contract Is
the purchase Of the portion of them
C. X GARRISON.
CHARLES g. FRANCKLYN
II