The year of the first gold rush saw the organization of the Panama Railroad Company. In 1846 three American business men organized under the present name and secured a concession from New Granada for forty-nine years with such conditions that no ship canal could be constructed across the Isthmus without the consent of the railroad company. When the name of New Granada was changed to that of Colombia, the time was extended to ninety-nine years. This concession in time came to be very valuable, and the French Canal Company found it necessary to buy out the Panama Railroad in order to secure control of the exclusive right of way across the Isthmus. Later, when the United States acquired the control of the French possessions in Panama, the Panama Railroad became one of the most valuable assets on the list. By conditions of the concession, this road was bound to pay to Colombia the sum of two hundred and fifty thousand dollars per year. After various transfers and deals this still holds in the form of the obligation of the Panama Canal to pay this sum annually to the Republic of Panama. The story of the early construction days of the Panama Railroad are as exciting as those of the Morgan Pirates, with a far better outcome. Labor troubles were many and bitter, and it became necessary to hold men in jail until they were willing to work. The attractions of the California gold fields were too much for the cupidity of men who saw daily pack trains loaded with gold from the Eldorado of the Northwest passing their wretched hovels and taunting them with visions of easy riches. But the work proceeded, and after interminable troubles with the black swamp between Aspinwall (Colon) and Gatun, the road was finished as far as Gatun in the year 1850. In 1855 the line was finished to Panama and the romantic career of the most prosperous short railroad in the world was well under way. Charges for freight and passenger travel were enormous in the early days of the road. The fare was fifty cents per mile, with all baggage extra. Freight was carried across the Isthmus for twenty-five cents per pound, but so terrible were the old pack-train conditions that the travelers of that day were more than willing to pay such prices for the luxury of crossing the Isthmus by the railroad. At last the Colombian government took up the matter and the passenger rate was reduced. Ten cents per pound continued to be the freight charge for years. The road made vast profits, and by a combination of rates with the steamship companies maintained a monopoly of travel. A few years after the completion of the railroad the pack-train men and outlaws, deprived of their plunder by the road, became very active as brigands, and on one occasion perpetrated a riot that cost sixteen Americans their lives and brought the United States and Colombia to the verge of open rupture.