The leader-enterprise. [volume] (Fitzgerald, Ga.) 1912-1915, 1913-11-14

AS secretary of war William Howard
Tart had the immediate direction of
Panama canal affairs. Every time he
touched the project he manifested the
high order of ability that made him so
admirably equipped for the presidency
later On.
Almost coincidental with the begin
nlng OF American operations Panama
began to feel how absolutely sovereign
1t had made the Americans right in the
heart of the republic. The canal zone
was being managed with complete in
dependence from the republic. as much
SO as the republic of Costa RIGA to the
north.
Governor Davis had correspondent at
length with the officials of Panama
over the question of sovereignty, the
jurisdiction of the courts. the issues
of the tariff, postage, customs and cur
rency. until it was deemed advisable
for Secretary Taft in person to visit
the isthmus to arrange a working
agreement on these differences.
Secretary Taft arrived on Nov. 81.
1904, and remained until Dec. Z. On
the question of sovereignty. which
seemed to be especially delicate to the
republic. the treaty was peculiar in
that it did not cede the canal zone final
~ to the United States. but gave the
Americans all the powers they would
exercise ''if they were sovereign"
Panama contended that final SOW
ereignty was vested in it, and Secre-
tary Taft, being after the substance
rather than the form, did. not bubble
over this distinction without a differ
ence, but later expressed the opinion
that Panama sovereignty over the ca
nal zone was barren ideality." Ger
tainly it has proved so to be. The is
sue passed off in talk.
An agreement was reached on the
currency question whereby the United
States would accept the money of Pan
anna at one-half the value of American
currency-that is, the peso, worth in
trinsically only 40 cents. would be ex-
changed with United States money at
so cents, although it was in size and
face value the same as our dollar. The
same system was in vogue in the Phil
ippines. To meet the needs of the ca
nal paymaster the circulation of pesos
was increased from 100000 to 4,O0O,-
600. Out of this grew the custom In
the canal zone of referring to United
States currency as "gold" and to Pan
anna currency as SILVER" and in the
stores articles are priced in both cur
rencies.
Stamps were selling in the canal zone
for slightly less than in the postofices
of the republic. with the result that
the republic was losing revenue. Sec
rotary Taft settled this just complaint
by arranging for the canal zone to buy
its stamps from the republic for 60 per
centum of their value, the 40 per cent
um remaining to the profit of the canal
zone Offices.
On June "a, 1904, President Roose-
veit had made the Dingley tariff ap-
plicable to the canal zone. This work.
ed badly, and Secretary Taft agreed tc
have the order revoked, so that the ca
nal zone ever since has enjoyed the
freest of free trade All/other issues
were cleared up without the United
States yielding any freedom Of action
as to importing materials, executing
justice, operating ship terminals and
supplying canal employees with the
necessaries of life through commits
saries and hotels.
While Secretary Taft and Chief En-
g1neer Wallace were working in their
spheres, Governor Davis was institut
ing the various departments Of civil
government which today are noted
with admiration by the tourist Chief
of Police Stanton was engaged in rid
ding the canal zone of its bad mer
and bringing a population long without
restraint under the control Of regula-
lions that the Americans considered
essential to orderly existence.
From the first Mr.. Wallace had kept
close tab on the cost of excavating dir
in the Culebra cut. The type to be
chosen being still an unknown factor,
he was in some measure working In
the dark, except that the material re-
moved would be useful for any type,
provided the dumps were selected so
as later not to get in the way of any
route chosen. In 1912 the Americans
had to remove a French dump near
Culebra to prevent its slipping down
into the cut. He finally announced a
unit cost Of so cents a cubic yard for
either sea level or lock type canal.
Messrs. Parsons and Burr, the engi-
neering committee Of the commission,
after personal inspection Of the canal
zone and taking Mr. Wallace's esti-
mate, recommended sea level type OF
canal. 1t was to cost, exclusive of i'm
provements in Colon and Panama and
civil government in the canal zone,
$3.50, 100000. Mr.. Wallace had caused
surveys to be made for lock type of
canal, and he estimated the cost of
such canal, with a summit level of
sixty feet elevation, to be $178.013, 406.
All estimates missed the real cost of
the respective types widely. Mr.. Wal
lace's estimate of 80 cents a yard for
excavation was far too low. AS mat
L.. mono.1 Ai.o o1nG ..,ooI.s7 on