THE PANAMA ROUTE.

Lyttelton Times, Volume VII, Issue 445, 7 February 1857, Page 4

THE PANAMA ROUTE.

(From the " New Zeulander.") This long promised and much desired route would appear to be almost on the eve of accomplishment The ' Sydney Herald 'of the Ist January writes thus :— " There is a strong' probability that we shall have^ before many months have passed, a steam mail communication via Panama with Great Britain. Private advices, in addition to statements we have already published, mention that the directors of the' West India Mail Company. encouraged, no doubt,by the parties who started what was called the Emu and Kangaroo Company have nearly determined to establish a line direct from Southampton to Sydney. The steamers would call at New Zealand and Tahiti. This with the Australian,arid European Company's boats would give a fortnightly mail from England. Probably further particulars will arrive by the next steamer." A line of communication between Panama and Australia was. "from the moment of the organization of the West Indian Mail Company, always contemplated by them. Even sixteen or seventeen years since, when the keels of their first vessels had yet to be converted—when Australia was unconscious of her golden stores —when the Atlantic port of Aspinwall was but a mere natural bay—and when the isthmus was rarely trodden except by the foot of the guacho; at that date, and under those little' encouraging circumstances, the present1 writer (who was in constant communication with) was fully aware of the anxious desire.felt by more than one of the leading and most pi-actical directors of the company to embrace ' Australia in the line of operations. It is true that they did not propose to commence with steamers, bat until they had thoroughly felt their way, the transit between Panama and Sydney and vice versa, it was thought, might be satisfactorily and expeditiously performed by a class of light, sharp, threemasted clipper schooners of about 300 tons each; and we, who recollect the performance of the Novelty— Tv)entjj-nine days from San Fran- | cisao —are well able' to testify to the singular ' accuracy of the calculations. The tenacity of purpose with which the West Indian Company have sought to add the Panama and Australian to their other lines of steam communication, are to us the strongest arguments that ere long they will carry it into operation. It was through their increasing industry that the Emu and Kangaroo Company was commenced and carried out; but we doubt whether they were in any way instrumental to the sale of the ships andthe anxiously expecting colonies at the moment of their completion. That the Panama route is the shortest, the most agreeable, and-will in all probability! be found.the least expensive arid inconvenient, is a generally received opinion. The wind is nearly always' fair and light and the water smooth-— whilst, on the other hand, it requires a ship of great power to thrash against the strong Westerly '' gales* which.blow found "Cape Lewin. There ,is another reason,why, in the present unsettled state of ■Eurbpe,.we consider'tbe opening of the Pan ama route 'would prove tp be a. m ost judicious step. Italy is confessedly5 in :the throes of impending "outburst. "And England, ¥ranee, Austria, Russia, Spain and Sardinia, are marshalling their squadrons in the Mediterranean. If a shot be fired in these narrow seas, who can venture to predict what, change of partners may take place P Or who would affirm that it would be the most secure or pleasant

route for passenger and treasure sliips to run the gauntlet p : By connecting the Australian and "West Indian colonies, relations of the most beneficial importance would inevitably arise, and we should be furnished with an infinitely superior description of British grown tropical produce, for which at present we have to rely almost entirely upon the Phillipine Islands and other ports of the Indian Ocean.

The following facts are derived from the City Correspondent of the ' Sydney Herald,' About the most important news to communicate by this mail is that the Royal Mail Steam Company have resolved upon establishing a line of mail steamers between- Panama and Australia, so as to connect, both England and the United States with Australia and New Zealand by way of Panama. This, is an impovtant resolve. -/The Company will raise '£400,C>00 for the purpose by the issue of new shares of £20 each., Five..new ships have been required for the service, ..and an estimate has been formed of the traffic, which gives a profit of 9 per cent. on the -proposed capital: The company- have issued their proposals, which have met with attention ; but it appears from the opinions of shareholders themselves at a meeting held yesterday,, that they deemed it imprudent, tqvembark in'any extraneous undertaking- and, therefore, were adverse to subscribing capital to the new scheme.; I,have reason^however, to think that the project will be carried out nevertheless, by an independent company to be formed to convey the. mails to and fro between Panama and, the Australian colonies. I should indeed regret to see the. project fall to the ground, because it is calculated to benefit both countries. Panama would, of course, materially pi-ogress with such an undertaking. The plan of the company is as follows:-—- ••-■'■.

Looking to the course which public opinion has taken of late with respect to the exLension of steam navigation generally; j and as regards its bearing upon the question of communication between Great Britain and Australia in ■particiilar, the directors feel that the position occupied by this company imposes upon them the obligation of pointing out to tlie" shareholders, without loss of time, the benefit they would confer upon themselves, while essentially serving thepublio, by establishing a line of mail steam packets which should serve at once as a'link to ooniieot both England and the United States with England and Australia by the way of Panama.

„;By the 'step thus . indicated., the company would : , be' likely, to carry with them the. good opinion of her Majesty's. Government and the public, :;and'by themselves of the ground they might reasonably .hope, to prevent their position being wrested from them by any rival enterprise. .

Calculations have been made which lead the directors to believe that a' class of auxiliary screw steam vessels might.be stationed between Panama and Australia by the "Royal Mail Steam Packet Company, which, working in'connection with their present line of steamships to Aspinwall, would be capable •■'- of performing the voyage between Southampton and the Australian colonies, ml a satisfactory manner as respects thespeed, regularity, and comfort of the passage, and at the same time earn sufficient to support the. new undertaking. If/ this could be done, it is evident that the Royal ■Mail' Steam Packet Company would benefit' by such' an^extension of its. present system, to the full amount of the revenue it/would derive from'goods, treasure, and'passengers, which the lineracrdss the Pacific would either .bring to its vessels at Aspinwall, or drawfrom Englarid; arid/the bontinent towards a route to which tlie existence of a railway across the Isthmus would' certainly attract so .much favour, and for which1: the >proverbially fine weather of the Pacific would command so decided a preference.; ' - " \-/ \_ _ Proposals have been made to1 her Majesty's Postmaster-General for an extended postal service between Panama, Australia,- and New Zealand : and there is reason to believe that very favourable arrangements may be made with the United State's Government for the conveyance of letters between New York.; and: Australia, by way of Panama, and between' Sari (Francisco and J Australia Try thesame route; -Indeed an agent i has been already sent:to make: preliminary inquiries, and to negotiate upon these points conditionally with the government at Washington; and he is instructed to proceed fronV thence by way of Panama and Valparaiso to Sydney- &c.,^ and. to ascertain what degree of support *V" V;

colonies may be willing to afford this important enterprise; and it is the opinion of. the'directors that when these points shall have; been favourably settled, the' receipts derivable from the several sources indicated, in addition to the postage which the company will be enabled to levy upon letters between Panama and Australia, will be found to yield a satisfactory revenue^ A contract has recently been entered into by Government for the conveyance of the mails to Australia by way of Suez, but even were it <rranted: that this line were the most suitable for communication with the west and south coast of Australia, it is clear that to the eastern coast and to New Zenland the adoption of the Suez line of communication must be a serious inconvenience. The present contract also is for a monthly communication only, which cannot be considered sufficient; there is consequently a reasonable ground for belief that the establishment of a monthly line of communication with Australia by the isthmus of Panania, departing between the times of the Suez line, and thus securino" a fortnightly communication with those colonies, would confer on them a great benefit, and would be productive of a large amount of traffic. _ : It cannot escape the observation of the shareholders that a system so organised, and in full operation at the conclusion of the present contract, would go far to secure the renewal of it upon favourable terms. For 'the reasons indicated, therefore, the directors having given this matter, so important to the future interests of the company, their most anxious consideration, and being fully sensible of the objections which would no doubt be felt amongst the proprietors generally against farther calls on the present shares, recommend that the necessary capital, amounting to £400,000, be raised, partly by the issue of new shares of £20 each, to be offered pro rata to the existing shareholders, and partly by loans on debenture.provided a supplemental charter can be obtained to authorise the creation of such shares, and limit the liability of the present shareholders to £60 each share, thereby making- the original shares paid up in full. Five ships will be required for the performance of this service; assuming that only 60 first and 120 secondclass passengers are conveyed each way, the passage money, after abating cost or victualling, would amount to per voyage, £6552, or annually to £157,248 Freight on tresure, cargo, &c., per voyage, £1300, or per annum...... 31,200 Payments in the shape of postage or subsidy for conveyance of mail, to and from Australia and England, America, West Indies, &c, per voyage, £2083, or per annum......... 50,000 Total receipts £200,448 The cost of carrying on the service, including depreciation, insurance, &c, is estimated at, per annum 262,490 Leaving a profit of. 37,958

Or equal to rather more than 9 per cent, on the amount of the proposed new capital. It is calculated that the through voyage between England and Australia by this route would be accomplished in fifty-five days. The directors.are of opinion that if power be taken to raise money on debenture, three calls of £5 each on the new shares, at intervals of four months, will be sufficient Cor the purpose proposed.—By order of the Court of Directors. The ' Morning Chronicle' observes. Ib may be interesting to the shareholders of the Royal' Mail Steamship Company, whose annual meeting takes place to-morrow* to know that the report of Mr. Consul Perry on the trade of Panama is decidedly favourable to the establishment of a line of steamers to Australia via the Isthmus. Hesays.it is the opinion of ail persons who have made the passage by this route, that it is the shortest and easiest of aocomplishment, on account of the regularity of we Koyal Mail Company's bi-monthly service between Southampton and Aspinwall, and the prevalence in the Pacific of trade winds and con, Uant tine weather, which render the passage between Panama and Sydney or Melbourne and agreeable.. In addition to the passeiw pi'trattic, the report shows that a large freight wanness may be relied upon. . A large portion ol the produce of the west; coast/the whole of wlllch wvraerly went round Capo Home, is now

sent over the Isthmus, and as a considerable trade is springing up between South America and Australia the rapid development of the rer sources of the west coast republics thence arising must tend to increase the business on both sides of the Isthmus. Australia has of late years consumed half the entire exports of wheat and flour from Chili, and this trade is increasing. All the gold and much of the wool and other produce of Australia would be sent by this route in preference to any other, owing to its shortness and the facilities which exist for easy and speedy transhipment. Mr. Perry's report shows that these advantages are telling most favourably on the goods business of the Railway. Nearly all the quina, cocoa, caoutchouc, hides, pear-shells, and guano for the United States now take this route, and all the coffee and indigo growers of Costa Rica and.Salvador have made: arrangements for availing of it in future; whilst, since the opening of the railway, almost the entire trade of the Guatemalan port of Isabelle, on the Atlantic, has been transferred to San Jose, the principal Pacific port of the same republic, there being a gain in time of thirtyfive days, and less liability to damage, which, in the case of cochineal, the staple of the country, is of great importance. All the coal required for the Pacific Mail Company's steamers now goes over the Isthmus, at the moderate charge of five dollars per ton. This would be highly advantageous to a line of steamers between Panama and Australia.