Autsj,19 THE PAAACNLAuut1,13


The Hotel Tivoli is located in A ncon on the southern slope of A ncon Hill overlooking the Bay of Panama. It is a wooden structure
 and was completed in 1906. President Theodore Roosevelt was its first guest on his visit to the Isthmus thia year. The building
 is one of the landmarks of the Pacific side.


business, which had by this time disposed of all
its interests in shipping companies, until the
French Canal Company began operations on the
Isthmus in 1880. It was apparent from the
outset that high rates charged by the company
for the use of its equipment would prove an
insurmountable barrier for the French in their
effort to build a Canal. After lengthy negotia-
tions the French Canal Company obtained a
controlling interest in the railroad company.
An abnormally high price was paid for the stock
and when the deal was finally consummated the
cost to the French Canal Company was approx-
imately $25,000,000, of which more than one
million dollars was paid to the directors as a
bonus.
 '1 he French Canal Company assumed control
of the railroad company in 1883, and under that
regime the railroad was operated as a subsidiary
of the Canal organization. Most of the time the
financial operations of the two units were so
entangled that it was almost impossible to differ-
entiate between them, although the railroad
maintained its separate identity throughout this
period. During the first years of the French
regime, many improvements were made and the


railway itself was brought up to a high standard.
However, after the failure of the French Canal
Company, the property deteriorated rapidly
while the Canal Company was in the hands of a
receiver.
 It was during this period that the Panama
Railroad Company reentered the steamship
business. The present steamship line between
New York and Cristobal was established in
February 1893 upon the expiration of contracts
between the Panama Railroad and the old
Pacific Mail Steamship Company for the opera-
tion of lines between New York and the Isthmus,
and from Panama to Central America, Mexico
and California.
 The first steamers were chartered, but the
company later purchased some of them outright.
The vessels included the San Marcos, Alama,
City of Para, Colombia, Newport, Allianca,
Advance, Finance, Saturn, Seguranca, City of
Washington, Orizaba, City of Everett, and Wash-
ington. Some of these old steamers were still in
service when the construction of the Canal was
begun by the United States Government. The
Finance was sunk in New York Harbor in No-
vember 1908 after a collision with the old White


Page forty-four


August 15, 1914


THE PANAMA CANAL


August 15, 1939