The Panama Canal

by Frederic J. Haskin

In addition to the railroad, the Panama Railroad Company also operates a steamship line between New York and Colon. This line was acquired with other properties of the new French Canal Company as a part of the Panama Railroad's holdings. There were only a few years during the construction period when this steamship line did not show a loss. But the advantages of having a steamship line for carrying the supplies of the canal were so great, because of the special facilities that could be provided, that the loss was more than compensated by them. During the year 1912 the cost of operating this steamship line was $305,000 greater than the revenues derived from its operation. But, at the same time there was a return of net earnings by the Panama Railroad of over $2,000,000, at least a part of which was made possible by the operation of the steamship line. Even after deducting the losses sustained in the operation of the steamship company there was a net profit of more than $1,700,000, which for a railroad of less than 50 miles in length is no small item.

As a matter of fact, Government ownership of railways as applied at Panama is remarkably successful from the standpoint of the Government, and partially so to the patrons of the railroad. Probably no railroad in the United States could show net earnings per mile of line anywhere comparable with those of the Panama Railroad.

The rates for passengers and baggage across the Isthmus were rather high for first-class passengers, the fare for the 48-mile trip being $2.40, or 5 cents a mile. The second-class rate was only half as much. On the handling of freight the railroad had to divide the through rate with the steamship companies of the Atlantic and the Pacific, but, while the rates were high, judged by American standards, and the percentages of profits very large, the service maintained was so superior to that encountered on the privately owned railroads of the Tropics that no one ever seriously complained of the charges.

One of the most important services rendered by the Panama Railroad Company in the construction of the canal was in connection with the commissary. It had more to do with the maintenance of a reasonable standard of living cost on the Isthmus than anything else.

When the canal was nearing completion it became advisable to determine what rôle the Panama Railroad should play after the permanent organization went into effect. Should it be continued as a separate entity distinct from the canal but controlled by the canal authorities? Or should it be merged into the Canal Government and operated purely as an auxiliary of the canal with no separate existence? This matter was carefully weighed by the canal authorities and the Government at Washington, and it was finally decided that the best plan would be to operate them as separate entities, but to have all the work done by single organization. Another question that arose was whether the Panama Railroad Steamship Line should be operated as a Government line after the completion of the canal. Recalling the fact that the line never had been a profitable one, and that there was no further reason why it should be continued in operation with an annual deficit, the recommendation was made by the chairman and the chief engineer that the ships should be disposed of and the line discontinued.

As the tide of tourist travel set toward Panama, the serious problem of taking care of thousands of visitors confronted the canal authorities. There were times when every available facility for taking care of lodgers was called into requisition, and still hundreds of American tourists had to find quarters in cheap, vermin-infested native hotels at Colon. Believing that the situation demanded a modern hotel at the Atlantic side of the Isthmus, and having in mind the success of the Government in the construction and maintenance of the Tivoli Hotel at the Pacific side, it was decided by the Secretary of War that the Panama Railroad Company should build a new hotel at Colon, to be operated by that company for the Government. The result was the beautiful Washington Hotel, in whose architecture one finds the world's best example of northern standards of hotel construction adapted to tropical needs.

Built of concrete and cement block, it is constructed in a modified Spanish Mission style that makes it cool and comfortable at all times. Its public rooms, from the main lobby to the dining-rooms, from the ladies' parlor to the telephone and cable rooms, from the barber shop to the billiard room, are large, airy, and most attractively furnished. Its ball room, opening on three sides to the breezes borne in from the Caribbean is a delight to the disciples of Terpsichore, while its open-air swimming pool, said to be the largest hotel swimming pool in the world, affords ideal facilities for those who otherwise would sigh for the surf. Persons who have visited every leading hotel in the New World, from the Rio Grande southward to the Strait of Magellan, say that it is without a superior in all that region and, perhaps, without an equal except for one in Buenos Aires.

Here one may find accommodations to suit his taste and largely to meet the necessities of his pocketbook. The best rooms with bath cost $5 a day for one, or $6 for two. Table d'hote meals are served at $1 each, while those who prefer it may secure club breakfasts and a la carte service. Anyone who has visited the Hotel Washington, situated as it is on Colon Beach, where the breakers sweep in from the Caribbean Sea, feels that Uncle Sam is no less successful as a hotel keeper than as a builder of canals.

The Panama Railroad, under the American régime, has always looked well after the comfort of its patrons. The coaches are of the standard American type, and enough of them are run on every train to make it certain that no patron need stand for lack of a seat. The most popular trains carry from 8 to 12 cars. These trains are run on convenient schedules, permitting a person to go and come from any point on the road in any forenoon or afternoon. All coaches are supplied with hygienic drinking cups, and in every way the Panama Railroad shows that Uncle Sam is solicitous for the welfare of his patrons.

All the rolling stock on the Isthmus is built on a 5-foot gauge, this having been the gauge of the original Panama Railroad. As the rolling stock of the Canal Commission had to run over the lines of the Panama Railroad, it also was built on the gauge. When this rolling stock is disposed of it will be necessary to readjust the gauge to meet the ordinary American standard which is 2¹⁄₂ inches narrower. It has been estimated that the engine axles can be shortened for $750 per locomotive and those of cars at prices ranging from $27 to $31 per car.