New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-09-21

p,,, PARTICULARS N REGARD TO THE
ISSUE MAY DE FOUND II THE FoLLowiN.
LETTER OF MIR. j. EDWARD ein.O. -
PRESIDENT OF TIE PANAMA RAHhoAD
coUp,yY. TO WHICH REFERENCE Is NADER
NEW YORK. August q. 1891
Messrs. VERMlLYE & COMPANY:
observation-disclosures your request for in,orma-
.,o r.corlns the s2.OOO,OOO First Mortgage "a Ter
Cent Sinking Fund Gold Bonds OF this company '"'
chased by you, | would state as follo"s'
The Panama Railroad Company exists undsr pe'pe'u"
and specia charter granted by the LEGISLATURE "a '
STATE Of New York April :. 1879 and covers powers
10 operate steamship well as railroad lines uh1e'
.s,o,s from, the Republic Of Colombia. granted In lsoo
and running 70 A. n 1906
IN ,ss7 this Company issued n.OOOoOO sterling
5000. 900, Thrty-year Per Cent Mortgage bonds'
which mature on October 10. 1897 Although there "@s
~ slnk, fund obligation which required II 10 Do So
the COMPANY rom motives ot prudence. voluntarily set
asl. surplus earnings from time TO time for the puPe
O, meeting these maturity ard has mus reauceu
the balance for which provision Is to be Fnade 10 te
oo-,-,,v., email surn O., f:3. 600 SAY S26sS.Wb.
From the proceeds Of sale Of the s2ooo.ooo new
a, Per Cent Mortgage Sinking Fund Gold Doh1S'
and with securities and cash now IN hand from surplus
earnings the Company sufficient 10 retire the
outstanding Sterling Mortgage Ronds AZ Ma'ur'V' anu
leave a surplus - aboI, s50o.oOo
The new mortgage viii constitute the only mortgage
Indebtedness. Of the Company. ard vii. be secured o'
first all the railroad. steamships CONCESSIONS
rights ranchses and real and personal properly Of 'e
-. -. 80, - hs-e,,,.- - be acquired.
In accordance the q the mortgage secuF'hs
the issue Company is 70 set aside IN Angus %
zach .,- st,o 600 IN gold for the redemption OF these
,o,e, ~ ~. hest ,-ca a, which they can b. obtained By
-, r-,,,es. ana +, thew cannot be thus bought the
open market h,ow IO5 accrued interest the 4rus-
draw that amount by lot al that price, anu
pay the next inteTesi-date
After years Company is entitled II redeem on
ar, ,,.-c.,s,,e any or nil 0. the outstanding bonds by
lot a and accrued interest
Under the terms o, the concessions from the Republic
~ Colombia tb, COMPANY pay. 20 that government
annual subsidy = s2.5OOO, and q pays 20 the
r,e,a-,-,.,t - panama a subsidy O, s25,OOO. making
,o,al charge e, s.JA 900 per annum These payments
are f., To-. d, all ,ar.. and other governmental charges
A, the reoues, O, the Colombian government; order
n capaIiys Tor s ben.n, tie subsidy due twenty
seven YEAR. mi, company issued s3OOOooo In bond,
a, which Their. ne now outstanding 81 900. the
naming sII5I.OGO having been pad and cancelled By
annual a-,Nings
These subsidy bonds referred 70 DO not represent
increased Indebtedness and ar. no, by mort
gage
Out q TIE subsidy au. N. Government each year the
interest o, these las, named bond. b. rah ani
nnie- - used f7r the purpose o. drawing ani canceus
as many bond, a. can 10 re,-en.a herewith In as
pav N. ls.y. viii b. annually rs.u,e, and will retired
before maturity 4, the expiration o, the twenty sven
years IN zoos paymsn; ~ TIRE annual subsidy direct
to the Government Wi. - resumed.
The authorized issue ~ th@ a. Per Cen, Frsi
Mor,sax. Loan IL stOOO.OOO. ~ Which s2.ooo.ooo
ar. issued =; present The remaining g2OpO.Ooo sfe
held IN trust o. - issued only
-,en,, ny ,-v rrop.-ty acquired ara Ike rur.0s.s
provided In o., mortgage
Vv th. r,iu on IN the rrincp PAL and as IN the
o, Interest ~ Company reduces annual h-sf charge
over sI0nOoo
T. meet ne requirements n. tho developing '-arc O.;
IN. Pacific Coa,. With the Tinted sni Europ~. hni
Z, abolish the system ghi~rase service r. the Bay -
Panama which has prevailed f0r nsarly hfv snt
10 Introduce the n..t irrprovst methods r., loading IN
loading and handling ,rac. Company has contracted
Tor the o, pier. harhof. and other
Ike improvements and facilities In the hay - Panama
permitting The loading AL unloading q earEoe' directly
vessels to cars These improvements Ao NJ" uhaer
way and viii cost sb' vt si.ooO.W".
The savings In expenses q operation = direct
shipment over the gheTage Involving double handIng)
&, carro.s Is self-eviden while The Increase IN bust
ness frol shortening ~ hs NJ least seven
.. ,...a.. ,-o-, ,.,y, ,,,e--,,,fo-. A., ,--it.,,.
-, 80, ,ocn,.,,,, n, hu,,,..s civ. assurance th,,
81 $50. ,o.h ,..,,. ,-o, hes. in,,rov.n.n,s Will be