The Panama CanalHaskin, Frederic J. (Frederic Jennings)
History
The Panama Canal
Haskin, Frederic J. (Frederic Jennings)
Panama Canal (Panama)
The road was completed in January, 1855. Before the last rail was laid
more than $2,000,000 had been taken in for hauling passengers as far
as the road extended. The way in which the original 50-cent per mile
rate across the Isthmus was established is interesting. The chief
engineer encountered much trouble from people who wanted to use the
road as far inland as it went from Colon, so he suggested that a
50-cent rate be established, thinking to make it prohibitory. But the
people who wanted to cross the Isthmus were willing to pay even 50
cents a mile. Hence for years after the completion of the road the
passenger rate continued at $25 for the one-way trip across the
Isthmus.
The railroad proved to be such an unexpectedly good investment that
the Republic of Colombia began to establish its claim to acquire
ownership of the road at the expiration of the 2-year term, which
would take place in 1875. It was necessary therefore, that the
railroad company should take steps to save the railroad from a forced
sale with $5,000,000 as the consideration. Representatives were
dispatched to Bogota with instructions to get an extension of the
concession under the most favorable terms possible. As it was realized
that the Republic of Colombia held the whip hand in the negotiations,
the railroad company understood that if it wished to escape selling
its great revenue producing road for $5,000,000 it would have to meet
any terms Colombia might dictate. The result of this mission was an
agreement by the railroad that in consideration of an extension of the
concession for a term of 99 years it would pay to the Colombian
Government $1,000,000 spot cash and $250,000 a year during the life of
the concession. That annual payment was continued as long as the
Isthmus remained a part of the Republic of Colombia. Under the terms
of the treaty between the United States and the Republic of Panama it
was resumed again in 1913, to be paid by the United States to the
Republic of Panama throughout all the years that the United States
maintains and operates the Panama Canal.
CHAPTER IX
SANITATION
Public-domain text, read in full here on John Shaqi.
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