File No. 819.77/92.
The American Minister to the Secretary of State.
Panama, November 29, 1911.
Sir: I have the honor to inform you that Mr. Augusto Dziuk called upon me recently saying that he desired to make my acquaintance. Mr. Dziuk is a German who speaks very little English but who has apparently spent a number of years in Central America and Mexico.
In the course of our conversation he stated that his company, The Balboa and Pacific Estates Co. Ld., and The Balboa and Darien Estates and Railway Co., was Anglo-German, the larger part being of the latter nationality. Among the German members were Count Oppersdorf, a prominent member of the German Reichstag, and Herr von Bethmann-Holweg, a nephew of the German Imperial Chancellor. He expatiated upon the mining and agricultural wealth of the part of Darien to be traversed by his railway, pointing out on a map which I happened to have (“Mapa de la República de Panama arreglado por Ramón M. Valdés, 1910”) the route of this railway, which, starting at Puerto Piñas, followed not far from the coast in a northwesterly direction to the end of a chain of mountains called “Serranía del Sapo.” Here the line was to turn and run on the other side of this chain in a southeasterly direction apparently to somewhere near the headwaters of the Sambú River. At this point the line struck north to El Real de Santa María. Mr. Dziuk stated that it was not worth while to go beyond this point unless the extension to Panama City was secured.
In reply to my enquiry as to why the line adopted described such an extremely circuitous route, he replied that as the concessions gave the railway extensive grants of land along its line and as the hind in this region was especially valuable, the railway made this detour so as to acquire as much as possible. He further stated that he had bought from the Panaman Government large tracts of so-called “tierras baldías,” untilled lands, surrounding Puerto Piñas, about 27,000 hectares. The port of Puerto Piñas was an excellent one, with water enough for ships of deep draft to come close inshore.
As yet no work had been done, except for some plantations started around Puerto Piñas, where about 300 Colombian laborers had gradually been attracted by the prospect of work. He intended to begin work during the coming dry season, about in March, and expected to purchase material from the Isthmian Canal Commission, although I ascertained that as yet he had made no arrangements for this.
In reply to my enquiry as to the gauge of the railway, he said that this depended upon the gauge of the David railway: he would adopt the same gauge, as, with the extension which he had requested to Panama City, this would make a long link in the Pan American Railway.
He referred to his request for the extension to Panama City as “pending.”
Mr. Dziuk then stated that an American syndicate was now forming in New York for the purpose of bidding for the construction of the Panama-David Railway. He was to be the representative of [Page 1194] this syndicate and if it was successful in its bid, which he hoped before long to be able to present to the Panaman Government, it would employ American materials as the cheapest and best. He added that he wished to begin building both railways (the Darien and Panama-David) at the same time but if his American syndicate did not secure the construction of the latter, he would nevertheless begin the other. Mr. Dziuk did not seem inclined to give any further details as to his American syndicate but evidently wished to lay stress upon his intention of purchasing his materials in the United States.
This information as to Mr. Dziuk’s American syndicate may be compared with Dr. C. C. Arosemena’s information upon the same subject as reported in my despatch No. 14 of the 28th instant. It would also seem that the real American character of this syndicate, should it materialize, would be a proper subject for investigation.
Regarding Mr. Dziuk’s Darien concession and his statement that his request for an extension to Panama City is still pending, “Resolución Número 29” of May 27, 1911, of which a copy and translation are enclosed,1 clipped from the Gaceta Oficial No. 1452 of June 16th last, shows that this extension was then refused as a “branch “of his main railway while the extension to the headwaters of the Chucunaque was granted. I have lately been informed most emphatically by both President Arosemena and Dr. C. C. Arosemena, Minister of Public Works, that of course the extension to Panama City or any extension in this direction was absolutely and definitely refused.
I also learn that Mr. Dziuk has made the deposit of 10,000 balboas required by paragraph 4 of Article 10 of his contract but has not yet deposited the “maps, profiles and plans” as required by paragraph 2 of Article 10, having secured an extension of the period for doing so as may be seen from “Resoiución Número 31,” of which I enclose a copy1 and translation, the former clipped from the Gaceta Oficial, above mentioned.
President Arosemena and others have expressed considerable doubt as to whether under these circumstances Mr. Dziuk will ever begin the construction of his Darien railway.
I have [etc.]