The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-01-13
PANAMA RAILROAD IS 4
MONEY MAKER md ALSO
BENEFIT TO THE PEOPLE

CONCLUDED FROM FIRST PAGE)
concession granted the Panama Canal Com
pany required that institution, should its
interests clash with those of the rail-
road, to make terms with the latter. The
interests of the two concerns did clash, and
M. Ferdinand de Lesseps settled with the
railroad company by executing the pur-
chase of a majority of its stock. The prop
erty will, therefore, go 10 the United
States along with the other properties we
are to get in return for s4o,0oo,OVo TO be PAID
TO the New Panama Canal Company. AS
there is certain to be no CESSATION but in
stead an immense Improvement in trans
isthmian traffic during the time the canal is
being constructed, IL will be seen that we
shall acquire revenue producer. The rail-
road pays annually $4,000 as rental for
its concession. Since active work on the
canal was stopped its revenues-being the
only income enjoyed by the New Panama
Canal Company-have been devoted to de-
fraying the cost of the work on the Culebra
cut, work which had TO be done TO keep the
canal concession alive.
REVENUE-PRODUCE
Under the ownership of the United States
the only tax upon the railroads income over
operation and maintenance expenses will
be the payment of $25O,OOO in gold annually
to the holders of those securities issued
by the road when Colombia, years ago, went
to the usurers and discounted the conces-
sion rental. This payment will continue
until 1872 by which time 1T is expected the
canal will be in operation, when, for both
the railroad and canal concessions, an an
nual fee of $4,000 will be paid to the re-
public of Panama.
Bearing in mind the fact that in this road
the United States will own the only medium
for the transportation of canal supplies,
contractors machinery, employees, ETC., and
that traffic will increase enormously when
active work begins, il will be seen from
the following statement that by acquiring
this road the government will come into
possession of a productive asset.
The number of passengers carried by the
Panama Railroad in 1902 was S0,S0S, COM
pared with So 161 in 1901. OF the former
1852 were first class and 1886 second class;
In the latter year 4,5S were first class and
A,574 second class. Passenger earnings in
1902 amounted to S63, S4737; in 1901, SIS 654 6S.
The tonnage movement in 1902 amounted
to $50, of which 1S0,267 tons were west
bound and 1922 eastbound. The tonnage
movement in 1901 3S5,5S4, showing a
decrease for 1902 of 1909 per cent. 1924 per
cent. being eastbound traffic and 7.9l per
The freight transported has increased
from 26S. l56 tons in 1898 to 346. $50 in 1902.
OF the total westbound freight in 1902 ESQ.,
POI tons), 62,S55 was local from Colon to
freight from Europe and 63,O93 through
freight from New York OF the eastbound
traffic Q66, 422 tons), 11,2S9 was local from
Panama to way stations, 72,436 through
from all points to Europe, and 1857 through
from all points TO New York.
The total earnings of the Panama Rail-
road in 1902 was 81, 239. 1851 compared with
81 ,365, 1908 in the preceding year OF the
former amount $1,OS2. 060 was from freight
and 63S47 from passenger traffic, $54 800
from mails and Sl595S from baggage. Prac-
tlcally all these sources of income showed
a decrease from 1901.
The opportunity for increase i'm this bust
ness is almost boundless. In the old days
of French activity the road ran numerous
passenger trains each way each day. Now
there are only two one in the morning and
one in the evening, starting from either
terminus and requiring three hours TO cross
the isthmus The beginning or canal work
and the resultant influx of foreigners will
call for more trains, and with the fare at
81 (gold) for a single trip (S5 gold If the pas
senger carries baggage the passenger re-
ceipts are certain TO swell tremendously.
mentioned in freight receipts from the
transportation OF canal supplies and ma
chinery- In the figures above given there ap-
pear the revenues from the Panama Rail-
road steamship line, which includes four
vessels averaging about 5000 tons. operating
on a weekly schedule between New York
and Colon The number of these vessels
will doubtless. have 10 be increased: but
the railroad men have contended that this
service can be extended 20 include more
ships. and there will still remain from the
profits during the next nine years a sum
sufficient to defray the cost OF construct