Construction of the Panama Raih'oad. 43 1 



Tlie construction of the Panama Railroad was commenced 

 in 1850, the first sod being cut on the Atlantic side. On 27th 

 January, 1855, the locomotive first performed the journey 

 from ocean to ocean. The cost of construction amounted to 

 about £1,100,000.* This capital was speedily subscribed by 

 the eager speculative Yankees, and, as the result proved, 

 insured from the very first to the shareholders a handsome 

 constantly-increasing dividend. 



The concession enjoyed by the Company from the Govern- 

 ment of New Granada only lasts for twenty years, from the 

 day on which the entire line is opened ; on the expiry of that 

 period the New Granada Government must either pay down 

 5,000,000 dollars (the entire cost of construction), or extend 

 the concession for ten years more. At the expiration of this 

 second term, the Government may purchase for 4,000,000 

 dollars, or grant a third term of equal length, after which 

 they are to be at liberty to purchase it for 2,000,000 dollars. 



The trafiic managers of the line, Messrs. Lewine and 

 Dorsay, showed me the most polite attention. The resident 

 director, Mr,> Center, whose ofiice is in Aspinwall, and to 

 whom I had letters of introduction, invited me by telegraph 

 to make free use of the line, as nothing would give him 

 greater pleasure than to become of some service to a scientific 

 traveller. I took with me fourteen goodly packages, chiefly 



* The cost of keeping in repair is not less than £100,000 per annum, owing to 

 the destroying energies of the atmosphere and of insects, as also of the rapid growth 

 of vegetation, to keep which under employs not less than 3000 labourers. 



