Oceans Linked by Steel Ribbons, 1855

The possibilities incident to the construction of a railroad across the Isthmus early attracted the attention of capitalists and others. The first move in this direction was made in 1835 when, pursuant to a resolution offered in the United States Senate by Henry Clay, President Andrew Jackson appointed Charles Biddle a commissioner to visit the different routes on the continent of America best adapted for interoceanic communication, and to report thereon with reference to their value to the commercial interests of the United States. Mr. Biddle came to the isthmus and accompanied by Don José‚ Obaldía at that time a member of the Colombian Congress, later visited Bogota where, after repeated delays, he secured from the government a decree giving him the right to build a railroad across the Isthmus. He returned to the United States in 1837, but died before he was able to make a report.

In 1847, a French syndicate headed by Mateo Kline obtained an option on the proposed undertaking from the Government of New Granada which, however, was permitted to lapse the following year. The rush of the goldseekers to California in '49 and the lack of a safe and rapid means of transit across the Isthmus, about which much complaint was made at the time, induced a group of American capitalists to interest themselves in the project. In this year a company was formed by William H. Aspinwall, John L. Stephens and Henry Chauncy of New York City under the name of the Panama Railroad Company. This company secured a concession from the Republic of New Granada giving it the exclusive privilege of constructing a railroad on the isthmus in which was incorporated a provision that no negotiations looking to the building and operation of a ship canal could be concluded without the consent of the railroad. The concession was made for a period of forty-nine years dating from the completion of the road. The time given for completion was six years from the date of signing the contract. In 1867 when the name of the Republic of New Granada was changed to that of Colombia the concession was extended for a period of ninety-nine years, thus making the entire term of the grant 118 years from the date of completion. At the expiration of this time, the concession provided that the railroad and appurtenances should be turned over to the Colombian Government in fee simple, with no rights for ceding or selling to any foreign government.

When the French canal company sought from the Colombian Government a concession to construct a canal across the Isthmus, it found that the consent of the Panama Railroad was necessary, and after some negotiations concluded to buy the railroad, and in that way to secure the advantage of its concession, rather than to undertake to purchase its consent, which would have to be approved by the Colombian authorities. After repeated efforts they finally, in August 1881, secured possession of sixty-eight seventieths of the stock, paying $250 per share, and in addition permitted the American stockholders to strip the company of all the cash and accumulated surplus, 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 sixty-eight 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 percent 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 at home and abroad. One of these was the construction 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 [Former name of Colon. Named after W.H. Aspinwall, one of the founders of the P.R.R.] made the northern terminus of the line.

Steel Ribbons (Part 2)

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 of that station in which language frequently and painfully free was used. The subordinate was well skilled in the art of self-defense 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 employees newly arrived. His quick eye picked out a man of a 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 arrival found himself at Frijoles, 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 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."

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 pint 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 had 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.

Ribbons of Steel (Part 3)

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 as follows:

"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 link of the Atlantic and Pacific is completed, the Panama Railroad is finished, and the first train has made its appearance amongst us, opening up a new era of prosperity for the people of the Isthmus of Panama".

"On Sunday afternoon about half past three o'clock thousands of people gathered along the line to witness for the first time the appearance of the iron horse as it rattled over the tracks to the station, and many were the expressions of surprise and wonder at its appearance, and the facility with which the wild creature was managed. Mules and pack saddles are now forever supplanted by the steam engine, and the mud of the Cruces trail is exchanged for a comfortable seat in a railroad coach. The twenty-five cents per pound charged for transporting freight across the Isthmus is now reduced to a mere nominal cost, and the long tedious journey over the Isthmus has been transformed into a pleasure trip of a couple of hours".

"What will follow the opening of the railroad it is hard to foretell, but we can see great things looming up in the distance for Panama. Doubtless there are those that will suffer a temporary loss in their business by the opening of the railroad, but this must be expected as a natural consequence and will be of short duration. Far away to the confines of the Pacific the opening of the Panama Railroad will be hailed with delight. From north to south; from east to west of this mighty ocean will its beneficent influences be felt. From Cape Horn to Oregon, from Kamschatka to Japan, the Panama Railroad will tend toward commercial development. Australia and all the isles of the sea are bought by it into immediate contact with the old world, and the colonies will now look upon Panama as a bridge over which the traffic with their mother country must pass".

"But what British money and French ingenuity could not accomplish in upwards of a quarter of a century, Yankee enterprise has undertaken and carried through in five years, and has given to the world an enduring monument of what a few determined spirits of the United States can do".

"The names of William H. Aspinwall and his associates who headed this great scheme of Col. Totten, and those who with him carried out the work, are worthy to be immortalized, and it is to be hoped that such men may long be spared to witness the benefits which they have conferred on the world by their indefatigable zest and unflinching determination in building the Panama Railroad".

In November, 1866 the Legislative Assembly of Panama adopted a resolution honoring the builders of the railroad, and authorized the placing of a portrait of each in the reception room of the government place in Panama, the expense thereof to be paid out of the public treasury. With the opening of the road, a heavy traffic soon developed, which with the extremely high rates charged for passenger and freight hauls, made large profits for the stockholders. After a time these excessive charges became the subject of complaints which came to the notice of the Colombian government. A head tax on each passenger carried over the road was thereupon ordered, and in addition a large number of government employees, politicians and influential citizens were instructed to be placed on the free list. This resulted in an exchange of notes between the American Minister, resident at Bogota, and Colombian Government, and a compromise was finally effected by which the head was to be removed upon the railroad company inaugurating a lower passenger tariff. The steamship combinations constituting in effect a monopoly were not changed until after the purchase of the road by the United States Government.

Panama Not What It Used To Be.

That the railroad would benefit the Isthmus was not immediately apparent. Six months after the opening of traffic, the Star & Herald prints the following article signed "Traveler":

"Panama is not what it used to be; it is not the Panama of 1849-54. Then the California travel afforded a large business to the storekeepers, muleteers, transportation agents, hotels, bankers, baggage smashers, gamblers and thieves. The completion of the Panama Railroad enables passengers and freight to pass through from California without delay. Now all is changed. The grass grows in the streets and on the Plaza, where once busy crowds thronged. A large number of business houses have broken up or changed to a more prosperous location. It looks to me more like a deserted graveyard than the Panama of old. It is quite clear that the railroad has not benefited the Isthmus, but rather the reverse".

Steel Ribbons (Part 4)

Investigating Traffic Complaints.

The traffic arrangement formerly in vogue between the Panama Railroad Steamship Company, and the Pacific Mail Steamship Company whereby the latter had the exclusive privilege of issuing through bills of lading on freight from San Francisco to New York became the subject of official action in 1905, and on June 12th of that year the contract with P.M.S.S. Co. was abolished. Previous to this it was the practice of the Panama Railroad Company to recognize no through bills of lading except those issued from its own office in New York. Thus goods brought to the Isthmus by competing steamship lines were subjected to the current local freight rates in shipping across. Complaints regarding this situation became so numerous that in 1905 Joseph W. Bristow was commissioned to investigate the entire matter, which he did by visiting the Isthmus and going over the route to San Francisco. His report which followed contained many important recommendations among them being:-

Cancellation of the existing exclusive contracts with the Pacific Mail S.S. Co., and the Pacific Steam Navigation company.

Continued maintenance of the Panama Railroad Steamship line by the United States Government.

Establishment by the government of a line between ports on the gulf and Colon in case private capital refused to take it up.

Establishment by the Government of a line between Panama and San Francisco, in case the Pacific Mail Steamship Co. decided to discontinue its service, and no other company entered the field.

Double-tracking of the Panama Railroad. ** The contracts with the other steamship companies were cancelled June 12, 1905.

The Panama Railroad Steamship Company is still being maintained by the Government as a part of the operations of the Panama Railroad Company. It possesses five steamers, viz., the Panama, Colon, Advance, Finance and Allianca. The last named was in dry dock during the last half of 1907, and has been enlarged to a boat of the Panama class.

The maintenance of weekly sailing by the United Fruit Company from New Orleans to Colon furnishes a better service than formerly, and covers in part the third recommendation mentioned above. The boats cover the distance of 1400 miles in five days, but the passenger accommodations are limited.

The Pacific Mail Steamship company at the present time is again the subject of official investigation. Charges are reported to have been made by the Panama Railroad Company and the Isthmian Canal Commission that the Pacific Mail S.S. Co. has been rendering inadequate and unsatisfactory service between Panama and San Francisco, thus proving an injury to business. Mr. Bristow has once more been selected to investigate the situation and make a report, which will be ready early in 1908.

The double-tracking of the Panama Railroad is practically an accomplished fact. At the Panama end the double track begins at the La Boca "Y", about one-half mile from the city passenger station and continues to Pedro Miguel. From here to Culebra but one track is used. From Culebra to Gatun there is an uninterrupted stretch of double-track. From Gatun to Mount Hope but one track will be used, and from Mount Hope to Cristobal there is a network of tracks, comprising the Cristobal yards.

The New Main Line.

Work on the new main line of the Panama Railroad, as it will be when the canal is completed was begun in June, 1907. The new line was made necessary on account of the low level of the old track, a great part of which will be submerged when the Gatun lake is filled. By the end of October, 1907, over three and one-half miles of this new track had been laid. One of the largest railroad embankments in the world, and probably the largest in point of average height to length, will be located at Gatun on the new line. It crosses the valley of the Gatuncillo river at an average height of about eighty-two feet, is one and a quarter miles long, and will contain over 2,600,000 cubic yards of material. Owing to the great height and length of this fill it will be necessary to build it in three sections. A trestle, thirty feet high and running the entire length of the fill, will first be built, from which material will be dumped by the construction trains. When the dirt reaches the top of the trestle another 30-foot trestle will be built on the dump thus formed, and the operation will be built on the dump thus formed, and the operation will be repeated until the final grade of the railroad is reached. The fill crosses an arm of the lake that will be formed by the Gatun dam and an opening will be left at the bottom of the fill in case it ever becomes necessary to drain the lake. In order to allow passage for boats a drawbridge of the Bascule type, about 100 feet long, is being considered.

The new bridge over the Chagres river near Gamboa, will be 1,320 feet long, consisting of fourteen 80-foot through-girder spans and one 200-foot through-truss span. The contract for the steel work has been let to the Penn Bridge Company and will cost $60,000. The fifteen spans will rest on fourteen piers and two abutments all of which will be built of concrete on pile foundations. It is estimated that the masonry work will be finished about July, 1908.

There will be a tunnel at Miraflores, the first on the isthmus, about 600 feet long. It will be a single track tunnel and will be lined its entire length with concrete.

It is estimated that before the new line is completed 10,000,000 cubic yards of fill must be made. All these fills are being made with excavated material from the canal cuttings.

Plans have been prepared for a modern terminal yard at Panama of nine tracks. The terminal at Colon has already been brought up to date. A new $50,000 modern passenger station is all that Panama now lacks in the matter of railroad facilities.

Steel Ribbons (End)

Some Comparisons as to Rates.

It is interesting to note the difference between the first passenger and freight tariff of the Panama Railroad which went into effect February 15th, 1855, and that of the present day. The following table will give some idea of the changes that have taken place:-

{Lesley -- the following is a table -- first line is the rate in 1855, second line is the rate in 1903, and the third line is the rate in 1907. Tables don't translate into regular emails!]

Fare Panama to Colon, lst class $25.00 $5.00 $2.40

Fare Panama to Colon, 2nd class Not quoted $2.25 $1.45

Charge for baggage .10 per lb. .02 per lb. .02 per lb.

Freight Rate, 1st class $3.00 per cwt. .40 per cu. ft. .50 per cwt.

Freight Rate 2nd class $2.00 per cwt. $1.20 per cwt. .44 per cwt.

Freight Rate 3rd class $1.00 per cwt. .80 per cwt. .32 per cwt.

All the rates mentioned in the above table were payable in gold. While the fare from Colon to Panama was at the rate of over 50 cents gold per mile, in those days it was not considered excessive, in fact, travelers congratulated themselves upon getting over the Isthmus so easily and cheaply. Children under twelve years of age were charge half fare, or $12.50, while the rate to residents on the Isthmus was commuted to the flat amount of $50.00 per month. A large number of articles at that time did not come under the general classification, and carried special rates. One quarter of one percent of its value was charged for the transportation of gold across the isthmus. Silver was charged one-half of one percent; jewelry and precious stones one-quarter of one percent; indigo and cochineal, 2 cents per pound; coffee and cocoa 1 cent per pound; coal in bulk $9.00 per ton of 2,240 pounds; coal in bags $7.00 per ton of 2,240 pounds, iron in pigs $7.50 per ton; rolled iron $10.00 per ton; white pine lumber $18.00 per thousand feet; yellow pine lumber $20 per thousand feet, and oak at $22.00 per thousand feet. Horses, mules and cattle were transported at owners' risk. The rate on horses was $40.00 each, mules $20.00 and cattle $7.00. All bills for freight had to be paid in advance, but the management in its first schedule made the consoling announcement that as soon as the business of the road would warrant, some of the above rates might be materially reduced.

The baggage charge was a feature the traveling public did not like, especially inasmuch as the management rated overcoats, umbrellas and the like under this head. So much "kicking" resulted that about three months after the first rates were put into effect, the company permitted passengers fifty pounds of baggage free.

The first-class passenger rate between Colon and Panama at the time the United States took the railroad over was $5.00 gold. On the first of August, 1904, the rate was reduced to $4.00. Later it came down to $2.80, and again to $2.40 where it stands at the present time.

Passenger traffic over the railroad during the past year or so has shown an enormous increase. This is in part due to the constant accessions in the ranks of the...

[Lesley: Darn it!! four pages are missing -- not torn out -- just not here!!! Guess we can assume the increase in railroad passengers was due to the Canal workers. It next picks up on a report, so I'll give you that part and then continue.]

"...be operated in that way, thus greatly reducing the cost of operation. At that time too, we will have paid off the first mortgage out of earnings and our fixed charge will thus be reduced; the local business will be active, and Panama and Colon will be far more important than they are today. Nearly every passenger approaching the canal by steamer will disembark at one or the other termini, and taking the quiet railroad transit across the isthmus, will visit the cities and observe the interesting sights during the day, while the steamer is passing through the canal. The steamer will enter the canal at sunrise at Colon, say, and will make its exit at Panama at sunset, and the passenger in the meantime will have passed over the electric railroad and be amusing himself in either city while the steamer is moving through the canal. The local traffic will have grown to importance; the country will have developed, and business will have sprung up along the line of road, thereby furnishing local traffic."

Dock Facilities.

At Colon, the Panama Railroad Company has three wooden wharves, and one fine new dock completed in 1906 (Dock 11), at which all of its steamers now land. There are two other wharves at this point, one owned by the Royal Mail Steamship Co., and the other, now out of repair, by the Pacific Mail S.S. Co. The port and terminal at La Boca was completed and opened to commerce on January 1, 1901, at a cost of $2,148,303. This included the steel pier which cost the major portion of this sum. The pier is 960 feet long, and the depth of water alongside is 26 feet at low tide. In 1905 it was found necessary to make a considerable extension for the unloading of lumber and heavy materials destined for the Isthmian Canal Commission. The pier is equipped with electric cranes and other apparatus for rapid unloading, while the wooden lumber dock was so built that it enables the unloading of as much as 200,000 feet of lumber in a single day.

**End/Steel Ribbon**

From: "Lesley"
To: "Iguana"
Subject: Oceans Linked by Steel Ribbons, 1855 (Part 1)
Date: Sat, 26 Feb 2000 20:35:13 -0500
Sender: owner-iguana@mail.serve.com

Next: Seccession from Colombia