The Savannah morning news., 1904-01-15
THE PANAMA RAILROAD
An interesting Account of the Building of It
BY MERRILL \. TEAGUE.
Special Correspondent OF the Morning News.

terms with the latter The interests
OF the two concerns did clash and NJ
ferdinand de Lesseps settled with the
railroad company by executing the pur-
chase or a majority of its stock. The
property Will. therefore, 90 to the
United States along with the other
properties We are to get in return for
$4O,OGO,OOO to be paid to the New Fana-
ma Canal Company. AS there is GER
tain to be no cessation, but instead an
immense improvement, in transistb-
nlan traffic during the time the canal
is being constructed, it will be seen
that we shall acquire a revenue-pro-
uucer; The railroad pays annually
S25O,COO as a rental for its concession
Since active work on the canal was
stopped its revenues-being the onlv
income enjoyed by the New Panama
canal Company-haVe been devoted to
deIraylng the cost of the work on the
Culebra cut, work which had to
be done to keep the canal concession
alive.
VIII BE Revenue Producer.
Under the ownership of the United
states the only tax upon the railroads
income over operation and maintenance
expenses viii be the payment of $3.50
200 in gold annually to the holders of
those securities issued by the road
When Colombia, years ago, went to
the usurers and discounted the CON
cession rental. This payment viii con-
tinue until 1912, by which time if is
expected the canal will be in opera-
tlon, When, for both the railroad and
canal concessions, an annual fee of
$2oO,O0O will be paid to the Republic
of Panama
Bearing in mind the fact that in
TINS road the United States will own
the only medium for the transporta-
ton OF canal supplies, contractors
/ machinery, employees, etc, and that
traffic will increase enormously when
active work begins, it will he seen
from the following statement that bv
, acquiring this road the government
VIII come into possession of a. produc-
tive asset.
Inc number of passengers carried
by the Panama Railroad in 1902 was
SO,SO8, compared with SO, ISL in 1901. OF
the former, 1852 We're first class and
1926 second class; in the latter wear
4,5SI We're first class and S4,574 second
class. Passenger earnings in 1902
amounted to 63,S47.37; in 1901, S75. 654. 68.
me tonnage movement in 1902 amounted
10 o46,6S9, of which $780, 267 tons were
westbound and 1885, 400 eastbound. The
tonnage movement in 1901 was 1856. 5S4,
showing a decrease for 1902 of 1909 per
cent, 1884 per cent. being in eastbound
traffic and 7.91 per cent in westbound.
Inc freight transported has increas-
ed from 268, 1856 tons in 1898 to SAG, $50
in 1902. OF the total westbound freight
IN 1902 QSO,267 tons), 62,855 was local
from Colon to Panama and way sta
tions, 54,319 through freight from Eu-
rope and 63,093 through freight from
New York. OF the eastbound traffic
. Q66,422 tons), 1929 was local from
Panama to way stations 72436 through
from all points to Europe, and 80, 697
through from all points to New York.
Increase Will Be Enormous.
The total earnings of the Panama
Railroad in 1902 was $1,239,345 81, COM
pared with 1885, 40 SO in the preced-
ing year. OF the former amount ST.
0S2,000 was from freight and $63,S47
from passenger traffic. $54320 from
mails and $15,95S from baggage. Prac-
tically all these sources of income
showed a decrease over 1901.
The opportunity for increase in this
business 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 of canal work
and the resultant influx of foreigners
will call for more trains. and with the
fare at $4 (gold) for a single trip ($5
gold if the passenger carries baggage
the passenger receipts are certain to
swell tremendously. There will, too. be
the increases already mentioned in
freight receipts from the transportation
of canal supplies and machinery. In
the figures above given there appear
the revenues from the Panama Rail
road Steamship Line. which includes
four vessels averaging about 5000 tons,
operating on weekly schedule between
New York and Colon. The number of
these vessels will. doubtless, have to
be increased; but the railroad men
have contended that this service can
be extended to include more ships, and
there will still remain from the profits