Evening star., 1902-01-20
The Railroad.

The Railroad.
Panama railroad-Of the existing I000i
shares of the Panama railroad the
canal company will transfer to the
United States all but about 1Oo
shares These latter are he'd by few In
dviGuals residing in various parts OF the
United States and in Europe. AS II Will
not be the policy of the United States TO 50
manage the railroad as to secure a large
revenue it is probable that the holders or
these shares will in time find 1t to their IN
DIreSt to dispose of them at the price flxed
D the commission for the other shares:
viz, their par value At par the Value OF
the is StSi shares to be transferred TO the
United States by the canal company is So
Ss6:;C0
Against this property are mortgage
bonds TO the amount of S3.439O0O OF this
amount the company owns SSI1OOo whtch
IL has pledged as collateral for its debt TO
the Panama Canal Company described be-
low. and il also holds in its treasury ST.
O6+ Wn subject to sale or cancellation, lcav-
ing outstanding in the hands of the pub
lie. s1.J0I00 The bonds bear Az per cent
interest
There are outstanding also 1896, ,0C0 per
cent sinking fund subsidy bonds, but this
ability is an amortization of the annual
payment of $4,000 due the Colombian gov
eFnmeHt under it's concession for the per-
iod ending November l. 1910.
The railroad company owes 1886 to the
Panama Canal Company, mainly on ac-
count of the construction of the pier at
La Boca.
Its total liabilities therefore are 81 400. :
91s not counting the sinking fund subsidy
bonds. for which the Colombian govern
ment has received the benefit and for which
il should make allowance to the United
States in the negotiations for treaty rights.
Its cash assets January 1o 1902. were
S+:SS $50 -.
1t owns three passenger and freight
steamers of American registry the Alliance
Advance and Finance, of approximately
2Hn tons net each. which. together with a
chartered steamer. the Orizaba, run be-
tween New York and Colon on a weekly
schedule For the past year it has operat ed
line of chartered steamers of American
registry between San Francisco and Pan
anna. These steamers owned chartered
on the Atlantic and Pacific constitute the
Panama railroad steamship line.
The railroad company owns undivided
half interest in the Islands OF Naos. Guile
bra. Perice and Flamenco. in the bay Of
Panama. the Pacific Mail Steamship Com
pany being the joint owner
Besides its right of way. terminals
wharyes and considerable acres of land, 1t
owns nearly the whole of the town of Colon
the houses there being constructed under
leases.
The railroad company has no operating
contracts which cannot be terminated in
ninety days.
The work of constructing the canal will
largely increase the business of the rail-
road. and will enable it to pay off it's liza
biities in a very few years. After the
completion of the canal its commercial
profits will probably cease, but it will have
value incidental to operating the canal.
Maps. drawings and records-The
value Of the maps drawings and rec
ords in Paris, on the isthmus elsewhere
all of which are to be transferred to the
United States. as stated in the cablegram
OF January IL, is placed at S2,0O0.000.
Summing up the foregoing items, the to-
tai value of the property Is found to be:
excavation done --..---...... S27 .474 0I3
Panama railroad stock at par. 6 1856. 800
Maps. drawings and records. 100000
1886. .a6e, 1873 s33s
To which add 10 per cent to
cover omissions. ns..-.............. $685.. .66I
$4,000, 900
~ the last item being intended to cover any
buildings. machinery. railroad shares, ad-
and other assets which may be of value to
the United States and have not been in
clHde1 in the other items.
The Former Report.
In reciting its conclusions In the report
dated November 16. 1901. this commission
stated that the selection OF the most feas-
fbie and practicable route must be made
-~ betweeTr-the Nicaragua and Panama loca-
tions. adopting plan of canal with locks
in each case 1t concluded that the water
supply features were satisfactory on both
IuSs. -DOtn udmS Dy WllCh the sum-
NIT levels would be sustained were prac-
tics Bile the advantage being In favor of
the Conchuda dam at Nicaragua: that the
plan of regulating the summit level was
practicable in each case, though less simple
on the Nicaragua route than on the Pan
anna: that the present means of transporta-
ton were Inadequate the Nicaragua
route. while well-equipped railroad was
IN operation along the entire length of the
Panama route: that there are now no nat
ural harbors at Nicaragua, while service
able ones exist at both ends OF the Panama
route, and although with the completion of
the harbors as planned one route would
have little advantage over the other, the
balance was probably In favor of Panama:
that owing 10 the absence of harbors and
railroad the period of preparation at Mic
aragua would be twice that at Panama
IL was also the sense of the commission
that the total time required for the con-
struction OF the canal by the Panama route
would be ten years and eight years by the
Nicaragua route, with a greater probability
Of exigencies causing delays on the latter
than on the former.
Question of Cost.
The estimated cost OF constructing the
Nicaragua canal Is s45 $50, 7O4 more than
the cost of completing the Panama canal.
The estimated annual cost of maintenance
and operating Is 81. 800. 900 greater at Mica
ragua than at Panama.
The Panama route would be 134s miles
shorter than the Nicaragua route from sea
to sea. with fewer locks and less curvature
both in degrees and miles. The estimated
time for a deep-draft vessel to pass through
the Nicaragua canal was placed at thirty.
three hours, as against twelve hours fol-
Panama. these estimates being the time OF
actual navigation and not including DELAYS
for winds. currents or darkness
III the passage were made without inter.
ruption about day could be saved by the
Nicaragua over the Panama route by or.
dinary steamers handling commerce be.
tween our Pacific ports and all Atlantic
ports and about two days by steamers OF
the same class trading between our gull
ports and north Pacific ports. The time
advantage of the Nicaragua route would be
less In the case of fast hiRh-powered
steamers. the use OF which Is increa sing
Between Atlantic ports and the west Goa 3,
OF South America the Panama route has
the advantage OF about two days and he.
tween gulf ports and the west coast n,
South America the Panama route has
the advantage Of about one day The trads
Of the western coast of South America Is :
very important one. which has hitherto
been I'm European hands
The Panama route is an old highway n,
commerce along which no considerable in.
a owe oar,t Io -