plus, so that the actual amount received by the American shareholders was about $291 per share for stock the commercial value of which at that time was only a little above par. When the United States bought the property of the French canal company, among its assets were the sixtyeight seventieths of the stock of the. Panama Railroad. Road Pays $250,000 Indemnity Yearly. The railroad has been bonded for various amounts since 1851. In 1897 however, all bonds were retired and a new issue of 4,000 first mortgage 4 1/2 per cent. twenty year gold bonds of $1,000 each was made. Of these bonds 3,374 were sold and 626 were retained in the treasury of the company. At the time the property was acquired by the United States Government 1,002 of the outstanding bonds had been redeemed. Under the terms of the concession the railroad was compelled to pay to the Colombian Government an annual indemnity of $250,000. The railroad therefore, has not only been required to pay from its earnings interest on its bonded indebtedness, and its operating expenses, but also the annual indemnity of more than $5,000 per mile. In 1880 the railroad company at the request of the Colombian Government converted this indemnity into bonds for a period of twenty-seven and one-half years. These bonds were afterwards sold by the Colombian Government to private capitalists, so that this indemnity is now being, and will continue to be until 1908, paid to the purchasers of these bonds. After that, or in 1913 as the treaty under which the canal is being constructed stipulates, that amount will be paid by the United States Government to the Republic of Panama. In preparing for the work, the company engaged the services of two eminent American engineers, George H. Totten and John C. Trautwine, both of whom had been previously employed on important engineering undertakings One of these was the con both at home and abroad. struction of a canal from Cartagena to the Magdalena River in Colombia by which they acquired some knowledge of the Spanish language, and an insight into the manner of working the native laborers. Active work on the road began in the fall of 1849. The first three months were devoted to establishing a depot at Gorgona for material and supplies, it having been the original intention to build the section of the road from Gorgona to Panama first. This plan necessitated the transfer of all material from ocean steamers to smaller crafts and the voyaging of the latter around Point Toro to the mouth of the Chagres and up this stream to Gorgona. So many difficulties at once developed to this method that it was shortly abandoned and Aspinwall (1) made the northern terminus of the line. One Way of Getting a Job. The laborers employed in the construction of the road came from every part of the world. There were natives, East Indians, West Indians, Chinese, Europeans and Americans, as motley a crowd as ever assembled under the sun. The trial given the Chinese proved a dismal failure. One of the leading spirits of the time was James L. Baldwin, a civil engineer to whom, by common consent, the early completion of the road was largely due. Baldwin was a good judge of men, and he knew as if by intuition just what he could do with the worse than Falstaffian mob with which he was surrounded. His tact was seconded by an off-hand manner of utter fearlessness and personal daring. One day he had a difficulty at Frijoles with an immense Irishman whom he had previously placed in charge Named after W. H. Aspinwall, (1). Former name of Colon. one of the founders of the P. R. R. PANAMA. EMPIRE. COLON. Bill Posting. Bulletins. S. T. JONES Distributing. Signs. Tacking. Commercial Sign Painting. NO, 61, FIFTH STREET, PANAMA. of that station in which language frequently and painfully free was used. The subordinate was well skilled in the art of self-defence and was always ready to come to the scratch. The irate chief though headstrong had reached the years of discretion, and the matter passed up for the time being. Baldwin went to Colon the morning following to inspect a detachment of employes newly arrived. His quick eye picked out a man of à thick-set stature, dark complexion and bull-dog look, and calling him before him this dialogue ensued:- Can you read and write? I can. Do you want a good easy job with good pay? I do. Have you ever been in a prize fight? One, or two. Were you whipped? Not much. Do you think there is any one in these parts that can do it? Let them try it. "Then," Baldwin said. "I want you to go to Frijoles Station, get in a row with the track master, give him a rough beating and kick him out. You can then have his job." The offer was at once accepted. On the following morning the new new arrival found himself at Frijcles, and met the by-no-means courteous and refined charge d'affaires. The latter was ready to pick a quarrel with the newcomer, and soon both got warm and agreed to fight it out in accordance with the rules of the ring. They staked off the ring, and dispensing with the seconds went at it. After several rounds in which both showed signs of heavy punishment, the stranger gained the victory and expelled his antagonist from the place. This occurrence is perfectly true and illustrates some of the rough and ready events of those times on the Panama Railroad As an afterword we might add that the hero of this affair was Tom Sharp who later fought his way to success in the railroad world. From start to finish the company was beset with labor troubles. The laborers that were brought to the Isthmus under contract would melt away in the stream of people bound for the California gold-fields. In February 1851, the work work was brought to a stop by a wholesale desertion of these men, but with the assistance of the Colombian authorities a large number were apprehended and kept in jail until they signified their readiness to return to work. Another factor in the labor question was the Isthmian fevers which at times made severe inroads on the men and gave rise to the report that "The Panama Railroad cost a man for every tie." WITHOUT “PA-NOR-MA.” Why are all that live outside the city like orphans? The Black Swamp. Probably the largest obstacle met with in the construction work of the road was the stretch through the swamps between Colon and Gatun, and particularly over the famous "Black Swamp". This swamp is located between Lion Hill and Ahorca Lagarto and has been giving trouble at intervals ever since the opening of the road. The constructors dumped thousands of tons of rock, wood and other material into the swamp before a foundation was secured firm enough to be used for the passage of trains. During the period of the French canal companies train service was frequently interrupted at this point and on each occasion tons of machinery and scrap were dumped into the place. The Isthmian Canal Commission has twice experienced trouble during the past year from the "bottom falling out" in this locality. The last occurrence was in September, 1907, when sixty feet of track sank out of sight soon after a passenger train had passed. The Commission has adopted the method of driving piles as a support to the track and where this has been done no further trouble has resulted. It is the intention however, to build a "gauntlet" track around the spot to avoid a recurrence of this nature. First Train Into Panama. The company had trains running from Aspinwall to Gatun in 1852, and to Barbacoas bridge in 1853. On January 28, 1855 the first train reached Panama and the Star & Herald two days later writes of the event lows: as fol "The whistle of the railroad engine has at length woke up the slumbering echoes of Panama, away through the hills and dales, over the quiet bay and amidst the ruins of the ancient city, the first wild shriek has gone forth proclaiming the advance of commerce and civilization on the Pacific coast of South America. The great connecting |
