The Birmingham age-herald., 1911-01-22
STATE OFFICIALS EYE PANAMA RAILWAY May Be Able To Float Large
 Loans
FOREIGN AID IS ASKED
New Road Opens Up Rich Territory and An Interest in It Might Prove Very Beneficial To United States

Washington, January H.-(Specialo-- State Department officials have turned their financial eyes toward Panama, ca pitalists floating a loan of several mill | lion dollars for the construction of the Panama David railway line by the Pan anna government The survey for the road has now been completed and the cost of construction and equipment is l estimated at $l5,000,000.
 The financing of the road was discuss ed at length during the recent sessions of the National Assembly of Panama, with the result that $1o,oo0,oo0 was au- thorized, this to be appropriated in divi- sions for a period of two or three years. Since the national treasury funds have dwindled down to the bottom, President Arosemena announced that he would not favor a higher appropriation How ever, since it would require three or four years longer to build the road with such funds as can be raised by the gov ernment, it was decided that foreign governments should be asked to submit propositions.
 While the proposition has not yet been made formally, financiers of the United States, Germany, France, England and other European countries have learned of the opportunity, and are understood to be prepared to submit proposals. It is expected however, that the American government will not permit this loan to go to Europe, and it is believed that for political reasons, Panama is mutually anxious to float the loan in this country, where the original heavier loans have been floated
 It is recognized by the American au- thorities that the completion of the Pan- ama-David line by the time of the con- pletion of the Panama canal would likely prove of inestimable value. par ticuarly in case increased railroad fa- cilities might be needed on the isthmus for military purposes. The new line ex- tends from Panama City to David, on the border of Costa Rica, opening up rich section of the country. On the other hand, 1t is regarded in some cir eles as equally important that no for eign government have opportunity to float the loan, since in case of need of the road by the United States 1t might be denied, or privileges might be extended by the financers to some country un- friendly to the United States.
 It is not presumed that the Panama government would place such a loan with any country with unrestricted privileges, although special concessions might be demanded along with the surety. Ac- cording to the discussion brought out at the debate in the Assembly, 1t appears that Panama would be willing to give the United States half share of the road with full privileges, so long as they would not in any way interfere with the political affairs of Panama. It is esti- mated that Panama can manage to pro vide s7 100000 within two years. by which time the road can be completed, If the remaining amount should be voted by the American government or. by finan- ciers from this country. Some members of the Assembly favored joint owner ship between the two governments, as being more likely to afford protection to the line and the republic as well.
 Much of the preliminary work on the road already has been done in con1unc- ton with the American government. un- der an appropriation of sl00,000 made last year by the Assembly, American civil engineers on the Canal zone were enga- ged to superintend the surveys. Consider able material including rails and equip ment of the Panama Railway company, the line of the American government crossing the Canal zone, has been sold to Panama for the new road