New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-09-20
Messrs. yERMILYE & COMPANY {:

CENT NEN.-kepNln r" N'At ift''' 49,
ton regarding the s2.oOo.W0 First Mortgage - Per
co., sinking Fund Gold Bonds % this Company pui-
chased bv YOU I would state az follows.
rba panama Railroad Company exists under perpetual
and special charter grant-d by in" I|sis'a'Nre 9" wv
STAT u New York On April = 1919 and covers powers
o. ,orate steamship as well railroad lines under con
cesslons from Republic q Colombia grah'' III i'''
aad running 10 \. D. 1896
In 1861 this Company issued fi.oo0ooo sterling
a. ooD 900, Thirty Per Cent. Mortgage Bonds
which mature IN October 10. 1897. Although there WIS
~, s,kirr fund obligation which required II - % 60
the Conpanv from motives or prudence voluntarily Ss'
aside SURPLUS earnings from time 20 time Tor The purpose
% meeting those bonds maturity and has mus reduced
the balance for which provision is 10 be made 10 me
tf,ev email sum q t53G 900 S2GsS.oDo
From ~. proceeds u tie sale q the SI'o""'"" new
a. per cent First Mortgage Sinking Fund Cold h"huS'
AL with securities AMI cash nov IN hani from surplus
e4-nings th" Company Will have sufficient 70 re''re ''
Outstanding sterling Mortsase Bonds az Ma'N''Y' '-
leave a surplus of about s5~.o"N
TIE new mortgage Will constitute the only NOR X
indebtedness ~ The Company AMI Will be- secured ~
first lien On all ne railroad. steamships CONCESSIONS
rights fr5nchise- and real and personal properly OK "
c1mranv now owned or hereafter % be acquired
In accorance with the terms Of the mortgage securing
tho Comranv is % ST. asbd" IN +'"E" W
each yen si3O.OoO IN gold f4r ID" redemption o' 's
bonds n the best price which they can BE- obtained ny
the Trustees and II they be thus bought In the
open market below IO5 ami accrued interest ihe TITUS
tees are 20 thar amount by ot az ihat price, anu
uas lie same ~ tie next n'er"st date.
After five years The Company ia entitled 70 redeem on
n, any or an - the outs'and NJ bonds by
lot a, IO5 and accrued Interest
Under ID. q the concesio ns from the KepHoc
- Colombia TITS company paws % that government an
annual subsidy = x.25.OOO. and r. also paws 20 me
.1.ai charge q s.5O.OUO Per These pas "nis
ar IN leu - an and Other governmental charges
AZ the request - 'he Colombian government IN order
- capitalize fr Us benefit the subsidy due f1r twenty
4 q nt0 n
o., which there are now outstanding si.>t6o"O the re
naming sIi54.OOO having been paid and cancelled by
annual draVinE-
T.-. SUBSIDY bonds referred Do not represent any
increased nlebten--s and are not secured ny mort
1p. o, the subsidy due Government Zach year the
Interest on th-se ia,; nansi bonds paid and ne 70
used fr ne purpose 2 drawing and canc~ins
many bonds can BE- 70 'een1~d 'h"r'"i'h II ms
way tho l,sie VIII annually reduced AMI Will - retired
before maturity ne expiration q the tN"nty seven
years In 1905 payment 4 the annual subsidy direct
20 ne Government vii 30 resumed
The author r-d issue % the ~ Per Cent FIRST
-,rnr. Loan = stOoo.oOO. 2 which s2Vo.oc
A.. issued q, pr-sen, The remaining s2.OoD,V~ ara
hel In trust ?, b. issued only bett"-msnis improve
nen,. Or new property acquired and Ike purposes as
provided In 'he mortgage
IS this reu ton ~ principal and a's5 IN the raie
Of interest; Company reuces ~ annual fixed charge
Over sIoO.OOo.
=, met no requirements e., the DEVELOPING tra-c q
TIE Coas- with fh~ United states and Europe. and
., abo n system - gh'crlse service In IN" Raw or
Panama which has prevailed Or nearly hf'y wears ana
- Introduce the u., improved methods q loading IN
loading and handling trar the Company has contracted
,r construction % grea' pier. haroor. and other
Ike irnproy ,nens anil facilities IN the Bay Of Panama
permitting 'he loading and ua'oalnS u carToes directly
from vessels % These Improvements are no" 1nd@r
wav and VIII cost 40. M sio'p.ooo.
The large savings expenses q operation - direct
pment over th~ gherase dn'orlng double h'nilns)
e., argos SELF evident. whls h" Increase In bust
ness from The shortening = n least s@v"n
DAYS freedom dcay. interruptions. and accidents.
AMI general sacat1n % business give assurance that
me annual cash hose Improvements Will BE-
IA - 'he annual interest charge Incurred
thereby
Addi.ons % Company nset p steamers. The esao-
ishent o., sra, mi v,reh N the 18th
mus an Other equally important improvements. are alo
contemplated the early furIr" Those latter additions
anil Improvement. vii invov" m expenditure during ne
next few years 4 about 100000.
The net earnings ~ tho company for 'hs rast Ave
years have averaged S1It.ISt.Go per a1num. Tn.
years 800 and 1875 were the years - aggressive
competition bv This company and establish the
n-n position 9, attained 1895 The net earnings for
the year iSaG we're ~ .O35 :IO:,.G3
The net earnings the first six months ~ the current
wear are 53Gs.I5. increase OF net profit ~ lool
per cent over the corresponding period Of last wear
Deiucting 'he earnings % the past year h' sub
sfv o., $3.50. O,O hcre T. left s.s5.3O..63 aEains,
which the only charge ~ the Company Will 10 he
irt.res, on the bonds sold YOU. amounting 10 Soo.OOO
re- annum ,asid. from the sinking Fund Ins'almsnn.
IN other words during the year the Company earned
over eight time. the amount % his interest charge
The railroad and - equpmen'. as well as the steam
shin. tugs lighters property ~ the Company
have been brought higa state q efficiency and the
property i- now better condition than a. any time dur
ing ts corporate existence.
The capital stock - the Company amounts -
s7.WO.OtO
During the almost halfcen,ury Y The existence ~ the