Semi-weekly herald., 1913-10-13

Henry Clay introduced in the senats
u resolution which resulted in Presi-
dent jackson commissioning Charles
Biddle to visit the isthmus and re-
port on the availability of the vari-
GUS routes proposed. Biddle had just
obtained franchise to build rail-
road as q substitute for . canal
! when the panic of 1887 in this coun-
try caused the whole project to fall
through. 1t was not until the close
of the Mexican war which brought US
California and the problem of estsb-
fishing communication through the
dangerous territory intervening be-
tween the east and the west, that
the project of trans-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 Amer
lean capital from New York to the
isthmus and from the isthmus to Cal
ifornis and Oregon, its promoters
having constructed 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 rail-
roads territory was concerned. From
1853 to 1875 the road paid dividends
in stock and cash of 37,800,000, or
over 600 per cent.
In the meantime nineteen different
routes had been talked of, principal
among which were Nicaragua and
Panama. The railroad not being al
together satisfactory in service and
charging enormous rates, President
Grant, in 1869, appointed canal
commission which in 1870 arranged
a treaty with Columbia by which
this country agreed to build canal
If satisfactory route could be OBJ
| tanned. 1t was while officials of this
country were debating routes that
France stopped in and, for 2S years,
or until 1904, succeeded in control
ling operations. The failure of sew
eral French companies is well known.
Congress on March 8, 1899 passed an
act authorizing the president to ap-
point commission to make a COM
plete investigation with view to
constructing canal. This commits
sion considered principally the PAN
anna and Nicaragua routes.
In 1901 it reported in favor Of the
Nicaragua route, considering the de-
mands of the New Panama Canal
company for its franchise and prop
erty more than balanced the other ad-
vantages of the Panama route. In
1902 the commission made a supple
mental report in favor of the Pan
anna route, and recommended lock
canal. Congress then passed the
"Spooner act" authorizing the presi-
dent to proceed with the work on the
Panama canal route. 1t was not,
ho"SNSiy uhti Lne pToNHice OI ran
anna had seceeded from Columbia and
established herself as an independ-
ent state that satisfactory treaty
could be made, involving the pay
ments to Panama under certain terms
of $10,000,000 as lump sum and an
nual payments of $250,0O0 beginning
nine years after the signing of the
treaty
Under this treaty the United States
Guaranteed the independence of PAN
anna and obtained absolute control
over the Canal zone, strip ten miles
wide with the canal in the center
running forty-five miles from sea to
sea with an area of 44S square miles.
The United States also has jurisdict-
ion over the adjacent water for three
miles off shore at either end of the
canal. The formal transfer of the
property took place May 4, 1904, and,
following preliminary organization
and other advance work, actual con-
struction was started January, 1907.
I