East Oregonian : E.O. (Pendleton, OR) 1888-current, 1913-10-10

year IIldL henry Clay introduced IN
the senate a resolution which result
ed In President Jackson commission
ing Charles Biddle to visit the 18TH
mus and report on the availability of
the various routes proposed. Biddle
mad just obtained Il franchise To build
a railroad as a substitute for a canal
when the panic of 1887 in this couG.
t~lv "oused the whole project to fall
through. It was not until the close
q Mv-Aot,., wt.r Mnlcn Drought
US California and the problem of es-
taoi!snlng communication through
the dangerous territory intervening
between the east and the west, that
the project of ns-isthmus COM
munication was revived. otherwise
the intercourse must be overland or
by way of cape Horn. 1t was this
problem that gave birth to the line of
steamships established by American
capital from New York to the 18TH
mus and from the isthmus to Califor-
MIA and oregon, its promoters hav-
ing constructed a railroad across
Panama as connecting line Enor-
nous dividends rolled in from the
start. Owners of the road success
fully STAYED off for fourteen years all
talk of canal as far as the railroads
territory was concerned. From 1853
to 1875 the road paid dividends in
stock and cash of SS7,SOO,OOO, or
over 500 per cent.
In the meantime nineteen differ
ent routes had been talked of, prin-
cipal among which were Nicaragua
and Panama. The railroad not be-
ing altogether satisfactory in service
and charging enormous rates, Presi-
oent Grant, in 1869. appointed ca
nal commission which in 1870 arrang-
ed treaty with Columbia by which
this country were cebating routes
that France stopped in and, for 2S
years, or until 1904, succeeded il
controlling operations The failure
of several French companies is well
known. Congress on March 8, 1899
passed an act authorizing the presi-
dent to appoint a commission tC
make complete investigation with {
view to constructing a canal. Thi.
commission considered principally tn,
Panama and Nicaragua routes.
Satisfactory Treaty Is Made.
In 1901 it reported in favor of th'
Nicaragua route, considering the de
; mands of the New Panama Cana
> company for its franchise and prop
erty more than balanced the other ad
vantages of the Panama route. II
1902 the commission made a supple
mental report in favor of the Pana
ma route, and recommended a locl
canal. Congress then passed ;n
"Spooner Act" authorizing the presi
! dent to proceed with the work on tn
: Panama canal route. 1t was ao
however, until the province of Pana
ma had been ceded from Columbi
and established herself as an inde
pendent state that a satisfactory trea
= ty could be made. involving the pay
, ments to Panama under certain term
n of 1000, 100000 as a lump sum an
annual payments of $25O,0O0 begir
ming nine years after the signing
- the treaty.
., Under this treaty the Unite
= States guaranteed the independent
of Panama and obtained absolu
control over the canal zone. str
- ten miles wide with the canal in Il
", center running fortyfive miles fro
" sea to sea with an area or AS squa
io miles. The United States also n
, jurisdiction over the adjacent wat
- for three miles off shore at eth
:" end of the canal. The formal tran
:. fer took place May 4, 1904, and, fC
- lowing preliminary organization al
" other advance work, actual constru
ton was started January, 1907