Envoy to the United States and Kozukenosuke Tadamasa Oguri
Understanding the Structure of a Corporation with Panama Railroad

▲Panama Railroad     From "Oguri Karuta (Japanese cards)" illustrated by Naomi Kimura

■ Rest in San Pablo and then to Aspinwall

"Ffive or six houses, food and drink available, ice blocks also available. The climate is scorching hot, so the ice is ultimate quality. Consuls from the UK and elsewhere came to visit us," written by a translator Gohachiro Namura in his diary of "Ako Nikki (Diary of A Trip to the U.S.)"

On the way, they took a rest in San Pablo. They were surprised to see that the orange juice served had ice in it. The taste of the cold juice in the scorching heat of Panama was so good that it became a talking point for years to come.

After about three hours from Panama, they arrived at Aspinwall (now Colon) on the Atlantic side. They immediately boarded the welcoming ship, the Roanoke. The Roanoke, which was ordered to pick them up, had been waiting for about ten months (there are various theories, such as twelve months, twenty months, etc.).

　*In Japan, the era name was changed to "Man'en Gannen" on March 18, but the envoys did not know this until they returned home.
　*The date was the corrected date after crossing the date line.

▲ "Jokisha (Steam Locomotive)" from “Tokai Nikki (Diary of Crossing the Pacific Ocean)” by Toshichi Sato, Kozukenosuke Oguri’s servant
Several people have drawn steam locomotives, but this drawing by Toshichi Sato is the most appropriately depicted

▲ "Karinsha (Steam Locomotive)" from "Kobeiki (Report on voyaging to America)" ​​by Tetsuta Kimura, Kozukenosuke Oguri’s servant

▲ "Jokisha-no-Zu (Drawing of a Steam Locomotive)" from "Futayo-gatari" by Somoh Kato, cook 

　　　Railroad experience

"The engine has the same mechanism as a steamship, with eight wheels at the front car, hoisting the Japanese flag and the American flag, and a roof over the fire above the engine. There is one fire stoker. The second car has four wheels and is loaded with firewood. Six passenger cars are joined together, connected with iron hinges. Each car is about seven ken (12.74 m) long and one and a half ken (2.73 m) wide. Twenty-four chairs are lined up on each side, and there is an aisle in the middle. The road (railroad track) is made of lumber laid horizontally and two iron rods, and the wheels run on the rails. The beauty of the cars is beyond words..."

Although John Manjiro, a Japanese man who was rescued from a shipwreck and drifted and traveled to the United States, had already ridden a train, the Japanese envoys to the United States were the first Japanese to ride a train on an official journey. The locomotive was pulling seven passenger cars connected behind a freight car loaded with firewood for fuel

"As soon as the lead steam car started moving, the six cars behind it also started moving, and the noise of the cars moving was so loud that it was impossible to talk to the people sitting next to each other..." ("Diary of the Voyage" written by Tadazane Nonomura, idiomatic translation).
　　　　

　First class seats are in the back

In those days, trains were smoky and smelly near the locomotive, and the sound of the locomotive and the creaking of the wheels were loud, so the front cars were standard seats and the first class cars were at the back. I've never ridden it, but the Tsubame express train between Tokyo and Osaka also had first class cars at the back until it was electrified after the WWII.

Therefore, first class seats are also in the back of the Panama Railroad. The second car after the freight car loaded with firewood was reserved for the luggage of the envoys, and the envoys boarded from the third car. In addition, ambassadors, ministers, and consuls from various countries who had boarded with their wives to enjoy a rare trip with Japanese people accompanied them to San Pablo, so it was quite crowded.

　When the train started moving, the comments of the Japanese people who were riding it for the first time were, "It's fast, the grass and trees on the roadside are striped and flowing so you can't tell them apart," "It's noisy, you can't talk to the person next to you," and "The breeze coming in through the window is cool and makes us feel good."

　　Why do several diaries contain common stories?

As I was reading the "Historical Records of the Japanese Delegation to the U.S. in 1860 (the First Year of the Man'en Era), I noticed that in the diaries of the senior officers who were presumably in the back cars, there were entries written in common by several people. The entry goes like this:
＊＊＊The system of the Panama Railroad Company heard in the train <Original text>＊＊＊＊＊＊＊＊＊＊＊＊

The original texts of the diaries of several people are shown below.
◇ Hakugen Murayama wrote in his “Diary of the Service,": "The Railroad was completed five years ago, costing 7 million dollars, and 27 people can ride in one car, with six cars running in a line."
◇ Keizaburo Hidaka, kachimetsuke (watchdog in Edo Shogunate system), wrote in his "Diary of Visiting America": "The Railroad from Panama to Aspinwall is 47 and a half miles long, and it has cost 7 million dollars to cut through mountains and build bridges to complete. This was not the work of the American government, but a union of American merchants, and one of the organizers pays back each person's contributions every year and also gives interest. Also, America pays $60,000 a year as rent to Spain.
The fares collected from those who board the steam cars are　
$25 per person
1 cent per kin (weight unit in Japan, about 600g) of luggage An additional 10.2% is charged. This is the interest to be paid to the railroad company.
◇ Okataro Kiyoyuki Morita wrote in his "Ako Nikki (Diary of A Trip to the U.S.)": The total cost of constructing the steam train and the Railroad facilities was 7 million dollars. The American promoters borrowed money from wealthy people to build them, and once it was completed, they paid off the debt every year. Captain Garnai explained to me.

＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊

 Since diaries are written by individuals, it is normal for the contents not to be the same, so what is the reason for these common descriptions?

I guess someone in the last car asked about the operation of the Railroad. There were two questions.
Questioner: "I’ve heard this Railroad was built five years ago, and it's very beautiful and amazing. I'd like to ask you a few things."
(1) "How much did it cost to build the Railroad?" and
(2) "How did you get the money?"

In response to the questions, Captain Garnai of the river steamer who took the delegation from the Powhatan to the wharf in Panama Port, gave an explanation. After escorting the group to the wharf, Garnai followed them, curious about the rare group of Japanese envoys, and took care of them in various ways. Garnai must have been excited by the exchange with this group of Japanese people, full of intellectual curiosity. I wonder if his diary remains in Panama.
In any case, I assume that several Japanese people in the same rear car who were listening to the explanation took notes, and then shared the same description and recorded it in their diaries.

So who asked the questions that made points? Although there is no record of the group, it is believed to have been Kozukenosuke Tadamasa Oguri, judging from his actions after returning to Japan, when he established Hyogo Shosha Co., Ltd., the first joint-stock company in Japan, and proposed the construction of a Railroad between Edo and Yokohama, as well as the establishment of gas lamps, a post office (post office/telegraph system), and a Railroad.
*It is unclear whether any records of the mission to America that Oguri may have written still exist.

　　　The Panama Railroad was built and operated as a joint-stock company.

River steamboat Captain Garnai answers the questions from the Japanese.
1️⃣…The construction cost about 7 million dollars.
2️⃣…The funds were not provided by the US government. Wealthy merchants pooled their money to form a railroad association under the company (trading company association/joint stock company) system, and raised funds to build it. Once completed, it is operated with user fees, and when profits exceed operating expenses, they are distributed to investors in proportion to the amount of their investment.
I assume that some of the Japanese took notes of these explanations, and that they remained as common entries in their diaries.

　　Companies (trading companies) also built and maintained social capital (infrastructure).

The Japanese were aware that foreigners in Japan were engaged in commercial activities under the name “company” at that time. They understood from what they saw and heard at the Panama Railroad that companies are not only for buying and selling goods, but also for building and maintaining social capital (infrastructure) such as this railroad.

Tadamasa Oguri was convinced that "The Shogunate always says it doesn't have money, but if we can gather this kind of private capital, we can develop common capital for society." Some of the big merchants in Japan at the time had enough capital to even lend large sums to daimyos, a practice known as "daimyo-gashi (daimyo lending)." This was the moment when Tadamasa Oguri was convinced that Japan could develop this type of social infrastructure by effectively using private capital, which would lead to the benefit of the nation.

*If you look up "shosha" in the Kojien dictionary today, it begins with the explanation that "this is a word translated by Kozukenosuke Tadamasa Oguri from "company."”

　　How much was 7 million dollars?

By the way, how much was the construction cost of 7 million dollars worth at the time? Six years later, the United States bought something. It cost them 7.2 million dollars, so it was almost the same amount. What did they buy?

Hints:
The owner sold it because "We can't get any more furs, and it's better than having it taken by the British." This was a purchase that would have a major impact on the future state of the world for the United States. The US Secretary of State at the time was called "the man who bought a giant refrigerator." However, gold was later discovered, and a large oil field was discovered in an area called the North Slope. A long pipeline transported the crude oil south, where it was transferred to ships and transported to the US mainland. "Oh no, this was a losing lottery."