NO- ^^ V o ^..^^ ^^--^ 4 -(i^?^^^^^' 1.0 '7", V <^^ V ^^l^vj*^ '^ Diaiti-zed'by'the Internet AFcniyel^^ °'^;^e!^^''' "^'s'^ "^ 2010 with funding from ,^^iife *' ^s*' "^vo.The Library of Congress \^5^^.' ,-' ■^°. .' ..--; ^^ .0^ .""•■» PANAMA THE ISTHMUS AND THE CANAL FORBES- LINDSAY " .a.rJu^VWvCxr AUTHOR OF "India, Past and Present," "The Philippines, Under Spanish and American Rules," "America's Insular Possessions," etc. REVISED EDITION WITH NEW ILLUSTRATIONS PHILADELPHIA THE JOHN C. WINSTON CO. 1912 Copyright, 1912, by The John C. Winston Co. All rights reserved. Copyright, 1906, 1911, by The John C. Winston Co, All rights reserved. /5'^^3<^> €Ci.A332359 Zo tbe MEN ON THE ISTHMUS, WHO AMIDST DIFFICULTIES AND DISCOMFOBTS AEE DEVOTING THE BEST THAT'S IN THEM TO THEIR COUNTEY's WORK. Affected dispatch is one of the most dangerous things to business that can be: it is like that which the physicians call predigestion, or hasty digestion, which ijS sure to fill the body full of crudities, and secret seeds of disease: therefore measure not dispatch by the time of sitting, but by the advancement of the business; and, as in races, it is not the long stride, or high lift, that makes the speed; so in business, the keeping close to the matter, and not taking of it too much at once, procureth dispatch. It is the care of some only to com,e off speedily for the time, or to con- trive some false periods of business, because they may seem men of dispatch; but it is one thing to abbrevi- ate by contracting, another by cutting off. . - . The ripeness or unripeness of the occasion must be well weighed; and generally it is good to commit the beginnings of all great actions to Argus with his hun- dred eyes, and the ends to Briai'eus with his hundred hands; first to watch and then to speed. — Bacon. PKEFACE T@ THE KEVISED EDITION. Since the first edition of this volume left the press, the writer has made two visits to the scene of the Canal operations. The lengthy chapter which is now added, brings the account of the work down to the close of the year 1912, and includes a prospective view of its comple- tion. This is rendered possible by the fact that all the essential features of the Canal are now fixed beyond possibility of change. Anything further that may be written about the operation can deal only with pro- gress and the perfection of details. It was expected from the first, and it may be pre- dicated of the future, that such accidents as are in- separable from a task of this character will occur from time to time, until the locks are thrown open to the first vessel which may pass through the water- way. It is unlikely, however, that such natural inci- dents as the settling of fills and the sliding of cuts will again afford sufficient foundation for public agitation. The construction of the Canal is assured. The date of its opening is approximately calculable. It will be a work as nearly perfect as the intelligence and resources of the present age can command. FoEBES Lindsay. December i, IQ12. PEErACE. In the following pages I have endeavored to relate the story of the Canal from the earliest explorations to the present time, with as much avoidance as possi- ble of technics and in a manner that shall be compre- hensible to the general reader. A certain degree oi familiarity with the scene of the operation on the Isthmus and a somewhat close study of the subject may have enabled me to achieve my purpose. At the time of going to press with the book the ulti- mate form of the Canal has not been decided upon, but, since it is reasonably certain that the multi-lock plan recommended by the minority of the Consulting Engineers will be adopted, that plan has been most extensively treated, and selected for map-illustration, although the sea-level project of the Board is also de- scribed. For my information I am largely indebted to offi- cial sources, supplemented and corroborated by relia- ble observations of men who have recently been in tbe Canal Zone. All the available data at the command of the Commission has been at my disposal and I take this opportunity to acknowledge my appreciation of the prompt and courteous response with which my many enquiries and requests have been met. Philadei^phia, April, 1906. CONTENTS. I PAGE The Ameeican Isthmus Ujvdek Spain 11 II Canal Exploration 31 ni The Panama Railroad 55 IV The Isthmian Country 79 V Colon and Panama 103 VI The Panama Canal Company 125 VII The New Panama Canal Company 153 VIII The American Enterprise 181 IX The Plan of the Canal 201 X Various Aspects of the Canal 240 XI Preparatory Work on the Isthmus 266 XII The Last Stage 294 APPENDIX Great Canals of the World 317 (vii) ILLUSTRATIONS. PAGE CtTLEBBA Cut in 1910, Looking North Frontispiece "^ Pedro Miguel Lock, Looking South v «"' Gatun Spillway, Looking North 12 ^ Gatun Lock Site, Looking North from East Wall .... 16 '^'^ Residence Street in Cristobal 40 '^ View of La Boca, Panama Bay 56 l^ The Chagres River and Labor Camp 72 '^ Ruins of St. Augustine, Old Panama 104 '' Ferdinand de Lesseps 136 Portion of the Old French Cut 181 V Hotel foe Employees 248 '^^ Buildings of the Ancon Hospital 266 ^ Fumigating Brigade in Panama 280 ' Bird's-Eye View of Pedro Miguel Locks 294 ^ Gates of the Upper Looks at Gatun 300 / Completed Lock Chamber at Mikaflores 306 ^ (is) PANAMA. THE AMERICAN ISTHMUS UNDER SPAIN. Early Settlements on the Spanish Main — Preparations for Ex- ploring the Pacific Coast — The Search for a Strait Through the Isthmus — The Establishment of Overland Communica- tion — The First Survey of the Isthmus of Panama — The ni-fated Darien Expedition — Cortes Establishes a Trans- continental Route — Investigation of the Nicaragua Route — Disintegration of Spain's American Colonies. On the early morning of the twenty-fifth of Sep- tember, in 1513, a small party of men made their laborious way up the densely covered face of a steep ridge. One, keen of eye and with determined coun- tenance, pressed forward eagerly ahead of his com- panions. When, at length, he reached the summit, a vast expanse of water stretched before him on either hand. Balboa had discovered the Pacific Ocean. Vasco Nunez de Balboa was a man of ex- traordinary intellect, and it is not improbable that something of the true significance of this new knowl- edge dawned upon his mind even in these first mo- ments of discovery. Perhaps he, first of all contem- porary explorers, realized that the Tierra Firma of Columbus was not the Ultima Thule of sixteenth 11 12 PANAMA. century endeavoTj and that tlie land of mystic legend lay away toward tlie setting sun, beyond the spark- ling sea whose placid waters washed the shores of the bay below the height upon which he stood. It was an age of splendid achievements in geographical science. Bold and ardent adventurers were fast dis- persing the haze that had obscured more than half the earth, and disclosing new lands almost as rapidly as geographers could map them. In the last year of the fifteenth century, Vasco de Gama, returning home from his eventful voyage to India, re-rounded the cape which Bartholomew Diaz had discovered and which King John had named Good Hope. A waterway to the East was thus opened uj?. and this circuitous route remained the main means of direct ocean communication between Europe and Asia until the opening of the Suez Canal, nearly four hundred years later. Columbus, with the vaguest ideas of the extent of the globe, and with none but the most faulty charts for guide, thought to find Cipango, where he ran across Cuba and died without knowing that he had added an enormous continent to the map. First in the West Indies and later on the mainland of America he hoped to reach the capital of the Grand Khan, to whom he bore letters from Ferdi- nand of Spain.^.4Jyhen^_uppn his last disastrous voy- age, -Cblumbus beat down the coast from Honduras to Darien seeking a strait through the massive ^iSiy^^ It^ier that stayed his farther progress to the west, he EAULY SETTLEMENTS. 13 little dreamed that at a point which he passed in his dish6ai't6fiTfl^"'S?5'SBP"6h "ar~catidal eut would one da-y"" separate "Ewb gf ear''coutlueut^'''''£Sf^"''urLite two vasHT^ oceans." T"*" "^ — -^"^ — ..^^.^^...^^^.■^-^^^^..■.^^i. EAEI.Y SETTLEMENTS OF THE SPANISH MAIN. Amongst the horde of adventurers who followed in the wake of the Great Discoverer was Kodrigo Bas- tides. He was in command of an expedition that, in 1500, coasted the Spanish Main from some point on the Venezuelan littoral to almost as far south as Porto Bello. Balboa, a lad of twenty-five, received his first taste of adventure upon this occasion. On the return voyage the weather-worn and worm-eaten ships of Bastides were barely able to make Hispanola before they sank. Balboa, who possessed little or no means, turned his attention to agriculture on the island. He had, however, neither genius nor in- clination for the tame pursuit of husbandry and was soon in difficulties. The spirit of the rover was strong in him and, in order to indulge his desire as well as to escape his creditors, he concealed himself in a cask and caused it to be carried on board a ship bound for Tierra Firma. At this time Spain had two sparsely settled provinces on the Isthmus of Darien and an important stronghold at Cartagena. Having landed in safety, Balboa wrote to a wealthy friend in Hispanola, one Bachelor Encisco, 14 PANAMA. advising iiim to fit out an expedition and recom- mending the Indian village of Darien, on the Gulf of TJraba, as a favorable site for a settlement on ac- count of the reported presence of gold in the vicinity. Encisco adopted the advice of Balboa. The expedi- tion arrived in due course and a town was established on the Isthmus and named S^anta Maria de la An- tigua del Darien. It had the distinction of being the first episcopal see upon the mainland and of con- taining the oldest church in the American continent. Balboa soon rose to a position of importance among the colonists of Tierra Firm a./ "Re learnfed from the Indians that a great sea lay beyond the range of mountains that traversed the Isthmus, and Igst no time in investigating the statement.*V^ith a small force of Spahiards and Indian guidds Balboa succeeded, not without great difficulty, for the whole way was through dense jungle and over swamps, in reaching the ocean, of which he formally took pos- session in the name of the King of Spain. During this journey across the isthmus the Spaniards heard of a rich land to the south abounding in precious metals. Balboa planned the conquest of this coun- try, and it is more than probable that Pizarro, who was his companion on this occasion, shared his de- signs. Had the former lived to pursue his energetic and ambitious career Pizarro might never have found the heroic place which he occupies in his- ^0^* .. . . ' THE AMERICAN ISTHMUSES. 15 16 PANAMA. In 1515, Balboa received the reward of his enter- prise in the form of the appointment of Adelantado of the Southern Sea, as the Pacific had been named. PEEPABATIONS FOR EXPLORING THE PACIFIC COAST. In the following year he prepared to organize an expedition to the south hy way of the newly discov- ered ocean. The problem involved in the under- taking was one to daunt a less bold spirit. Trees suitable to the construction of ships were to be found only upon the Atlantic side of the divide, which ne- cessitated the tremendous task of transporting tim- bers over a rout© that presented great difficulties to the passage of an unencumbered man. The terribly onerous labor of collecting the material and carrying it on their backs to its destination was imposed upon the Indians, of whom thousands were gathered to- gether for the purpose and impelled to the unaccus- tomed work by the merciless severity of their task- masters. Many months were consumed in this grim struggle for a passage of the Isthmus, which, in many respects, foreshadowed the endeavors of the modern successors of these hardy pioneers. Hun- dreds of the wretched aborigines. Las Oasas says their number fell little short of two thousand, lost their lives in the undertaking, but it succeeded, and four brigantines were carried piecemeal from sea to sea and put together on the Pacific coast The work K B|H|K. 1 fu w^iS^I^HHffffli^ vI|||h iflB ^ ^ ' ^ ..'jj' M ■^H^mli^^tirS jMI^.^^I^^SHm'''' -"•^'^B '' wk I^BBBilK yM^K' W SIPS^'' ^^^»^i I B^V-N 1 IKm^ A SEARCH FOR THE STRAIT. H of fitting out the ships proceeded rapidly and Balboa was upon the eve of departure when his arrest was effected by order of the Governor. Pedrarias had entertained a jealous hatred of Balboa for years and could not endure the thought of his achieving the further successes that promised to follow his expedition to the south. The Governor pretended to have received information that Balboa purposed the creation of an independent kingdom in the countries that he might discover. Balboa was tried, condemned on evidence of an ex parte charac- ter, and executed. Thus fell, in the prime of life, the first of that trio of Spanish explorers whose brave deeds excite our admiration whilst we deplore the cruelties with which they were accompanied. THE SEARCH FOR A STRAIT THROUGH THE ISTHMUS. Three years after the death of Balboa, Magellan passed through the Straits of Tierra del Fuego and opened up a western waterway to the Orient. The at- tempts to find a strait through the continent were not abandoned, however. Charles the Fifth took a keen interest in the prosecution of these efforts. He in- structed the governors of all his American provinces to have the coast lines of their respective territories thoroughly examined and every river and inlet ex- plored. The orders addressed to Cortes were espe- cially explicit and urgent, for at this time the hope 2 18 PANAMA. began to prevail that a solution to the problem would be found in the territory of Mexico. It was in ac- cordance witb this idea that Gil Gonzales was de- spatched from Spain to the New World. Gonzales had authority to use the vessels which had been built by Balboa, but Pedrarias refused to deliver them to him. Gonzales was not to be balked by this denial, however. He immediately took to pieces the two caravels with which he had arrived and transported them to the Pacific coast by the route which Balboa had hewn out. The reconstructed ships were soon lost and the party built others, in which they pro- ceeded north in January, 1522, to Fonseca Bay. At this point the leader, with one hundred men, con- tinued the exploration by land. Lake ^Nicaragua was discovered and a settlement was shortly after- wards made upon its shore, the Indians having been subjected. The new discovery awakened fresh ideas and projects relating to the much desired interocean route. It was at first reported that an opening ex- isted from the lake to the South Sea, but an immedi- ate examination failed to reveal any water connec- tion. ; In 1529, Diee:o Machuca, in command of a considerable force, carefully explored. Lake Nic- aragua and its eastern outlet., /He found the naviga- :j^^*.Q^*;,,^^,,:,^^^«gp|^>«4'?^ ^j^^^ ^-j^g called the Desagiiadero, extremely difficult, but eventu- ally emerged from its moutb with his ships and continued down the coast to Nombre de Dios. At a OVERLAND COMMUNICATION. 19 later period an important commerce was conducted over this route bj vessels making ports in Spain, the West Indies and South America. Thomas Gage, the English priest who visited IsTicaragua in 1637, men- tions this traffic as in existence at that time. THE ESTABLISHMENT OF OVEKLAND COMMUNICATION". Pending the discovery of a maritime channel be- tween the two oceans, the Spanish authorities had decided to establish permanent land communication across the Isthmus of Darien/sC^nder Charles the Fifth a line of posts was maintained from coast to coast. iN^oml)re cle Dios was made the Atiantic port and the Pacific terminus was located at old Panama, vwhich was created a city in 1521.^'\|^A road was at once constructed between these two points, vwhich, crpssed.jfee Cb agres at La s Cruces.sJ^reat difficulties were surmounted in building this ^highway. Much of the route lay over swamps that had to be filled in. Several streams were spanned by bridges and vast masses of rock were removed to facilitate the passage over the mountains. The way was paved and, ac- cording to Peter Martyr, was wide enough to accom- modate two carts abreast. About ten years after the establishment of this route a modification of it came into use. Light draft vessels began to sail from ISTombre de Dios along the coast and up the Chagres as far as Oruses, where the '■■.'vW 20 PANAMA. road met tiie stream, and thence tlie journey was completed by land. In the closing years of the six- /' teenth century/ Nombre de Diogj^^jwhi^^ had been '^* '^repeatedly condemned in memorials to the Crown, as " the sepulcher of Spaniards," ^Mi^bandone d in favor of Porto Bello, with a location and other nat- ural advantages decidedly superior to those of the former terminuste^^C, EAELY TEADE OF PANAMA. This interoceanic communication was of the ut- most value to the Spanish Crown after the conquest of Peru, and the isthmian territory grew in impor- tance year by year. The vast treasure that was ex- tracted from the mines of the south came to Panama in the first stage of transit to the Royal Treasury. From the Pacific port it was carried to Porto Bello on pack-horses, and thence was shipped to Spain. Upon the arrival of vessels from the mother country, fairs were held at Cartagena and Porto Bello. Thither came merchants from far and near and cara- vans from Panama. An extensive trade was con- ducted at these periodical marts and the goods brought from Spain found their way through Pan- ama to South and Central America and even to the mainland and islands of Asia. Thus was demon- strated at an early date the logical trend of trade and the great advantages of a trans-isthmian route. FIRST SURVEY OF ISTHMUS. 21 The idea of an artificial passage had already been mooted.vJit is said that Charles the Fifth, in 152Q,^ ordered 'the Isthmus of Darien, or Panama, to be '"surveyed with a view to ascertaining the practica billty of a cana% -There is no record of this survey nor any evidence that it was ever made. Fourteen years later the matter was revived. The local au- thorities were instructed to employ able men to closely examine the country lying between the ChagTes River and the Pacific with a view to deter- mining the most feasible method of effecting a junc- tion and creating a through waterway for ocean- going ships. The instructions were carried out but the report of Governor Andagoya was so extremely discouraging that the Emperor abandoned the proj- ect A CHECK TO CANAL PROJECTS. The policy of Philip the Second with regard to the American possessions was very different from that of his father. The former was averse to the expan- sion of his empire in the IN'ew World and distinctly antagonistic to the plans for an isthmian canal. He reasoned with astuteness that the existence of a water route through the continent of America would give easy access to his new possessions on the part of other nations and in time of war might be of greater advantage to his enemies than to himself. The pol- •i£aV 22 PANAMA. icy of Philip was maintained for two centuries after his death by succeeding rulers, but maritime com- munication continued to be the subject of much thought and speculation. During this period of quiescent policy on the part of Spain the most notable event in the history of the Isthmus was furnished by the disastrous attempt of William Paterson to establish a colony in the prov- ince of D'arien. In 1695 the Scotch Parliament, with the approval of William the Third, authorized the formation of a company to plant colonies in Asia, Africa and America and to carry on trade between those continents and Scotland. THE ILL-FATED DAEIEN EXPEBITIOI?". Paterson cherished a scheme of stupendous colo- nial commerce, the Darien Expedition being but the initial step in the enterprise. Toward the close of the year 1698, five vessels having on board twelve hundred Scottish settlers anchored in a bight which they called Caledonia Bay, a name it retains at this day. The colonists were received in friendliness by the Indians and purchased from them the land upon which the settlement of 'New Edinburgh was made. It was Paterson's design, based upon sound enough reasoning and knowledge previously acquired from the buccaneers of the West Indies, to extend his posts to the Pacific Ocean and open up a trade with ILL-FATED BARIEN EXPEDITION. 23 the countries of the South Sea and Asia, in the man- ner which had been so profitable to Spain. He had not, however, anticipated the effect of the climate upon his northern-bred emigrants. Before any steps could be taken towards the contemplated extension of the operations, the colony was decimated by disease. The misery of the settlers was increased by the loss of the supply-ship on which they had depended for fresh provisions, and eight months after the landing a pitiful remnant of the original expedi- tion abandoned the settlement and returned to Scot- land. But before this disaster had become known at home other vessels with additional emigrants were despatched to the new colony. These made an effort to revive and maintain the settlement, but with no better results than those which had befallen their predecessors. The numbers of the later comers had become sadly reduced when they were attacked by the Spaniards. After a feeble resistance they capit- ulated. So weak were the survivors that they could not reach their ships without the aid of their ene- mies. Thus ended the D'arien Expedition with the loss of more than two thousand lives and the expenditure of vast sums of money. In this section of the country the Spaniards com- pletely failed to secure the friendship of the Indians or to effect their subjection. Their amicable recep- tion of the Scotch immigrants and their invariable 24 PANAMA. readiness to assist the buccaneers in their incursions against the Spanish settlements indicated the per- sistent hatred with which they regarded the first in- vaders of their land. The D'arien region was wild in the extreme and abounded in secret passes and safe retreats. From their fastnesses the Indians made frequent raids upon the Spanish posts and retired by trails which were known only to them- In the latter half of the eighteenth century, during the governorship of Andres de Ariza, a determined effort was made to establish permanent communica- tion between the coasts at this part of the Isthmus. Plans were laid for a line of military posts to be connected by a road which should run from a point on Caledonia Bay to a terminus on the Pacific Ocean. The project was put into operation, but met with such formidable resistance on the part of the inhabitants that the Spanish authorities became con- vinced of the futility of their endeavors. In 1790 they entered into a treaty with the Indians, agreeing to disband the garrisons and withdraw from the country. COETES ESTABLISHES A TEANSCONTINENTAL ROUTE. It will be remembered that in the first quarter of the sixteenth centuiy Cortes received implicit in- structions from the Crown to use every resource at TRANSCONTINENTAL ROUTE. 25 his command in a search for the longed-for strait. In pursuit of this object the coast of Mexico was carefully examined and the Coatzacoalcos River ex- plored. Montezuma afforded valuable assistance in this investigation by furnishing descriptions and maps of certain portions of the country. Whilst these efforts failed of their principal object, they had important results. Cortes established a transconti- nental route along the course of the Coatzacoalcos, over the divide, and down the Pacific slope to Te- huantepec. This line of communication soon gave birth to an extensive trade between Spain and her provinces on both coasts of America as well as some parts of Asia. The Ead's ship-railway of modern days was planned to follow practically the same line as this early route of Cortes. Towards the end of the eighteenth century there were discovered at Vera Cruz some cannon of ancient date which bore the mark of the old Manila foundry. This discoveiy aroused speculation as to how the pieces of artillery had been brought to the Atlantic coast of Mexico. It seemed improbable that they had been transported around the continent, especially when it was remembered that the only commercial intercourse with the Philippines had been through the Pacific port of Tehuantepec and over the route established by Cortes, This trade-way had long since been abandoned, but interest in it was at once revived by the incident which has been recited, and 26 PANAMA. a remembrance of its former importance prompted the viceroy of Mexico to institute an investigation. Bj this time it had become an accepted idea that maritime communication between the oceans could only be secured by the creation of artificial water- ways. Two engineers were directed to explore the country from the mouth of the Cbatzacoalcos to Te- huantepec with a view to ascertaining the practica- bility of a waterway from ocean to ocean. This was the first canal project entertained for this re- gion. HfVESTIGATION OF THE NICAEAGUA ROUTE. The report on this exploration, which included a cursory survey, was not such as to encourage the in- stitution of operations. It had the eifect., however, of stimulating the interest in the subject and in 1779 the feasibility of connecting the J^icaragua lakes with the sea was investigated by royal command. Manuel Galisteo, to whom the task had been in- trusted, passed an opinion unfavorable to the proj- ect. ^Nevertheless, a company was formed in Spain, with the patronage of the Crown, to carry out the undertaking, but nothing effective ever came of it. Galisteo's expedition had been accompanied by the British agents at Belize in a private capacity. Upon their return they made highly favorable representa- tions to their Government, stating that the project INVESTIGATION OF THE NICARAGUA ROUTE. 27 was entirely feasible and not accompanied by any difSciilties that the engineering capabilities of the day need fear to encounter. This report made a deep impression in England and when, in the follow- ing year, war broke out between that country and Spain an effort was made to gain possession of the Nicaragua country. In 1780, an invading force was organized at Jamaica. Captain Horatio Nelson was in command of the naval contingent, and in his despatches stated the general purpose of the expedi- tion as follows : " In order to give facility to the great object of the government I intend to possess the Lake of Nicaragua, which for the present may be looked upon as the inland Gibraltar of Spanish America. As it commands the only water pass be- tween the oceans, its situation must ever render it a principal post to insure passage to the Southern Ocean, and by our possession of it Spanish America is divided in two." The English were successful in their encounters with the Spaniards, but in the cli- mate they found an irresistible enemy that forced them to abandon the enterprise. Of the crew of Nel- son's ship, the Hinchinhrooh, numbering two hun- dred, more than eighty fell sick in one night, and only ten survived the return of the expedition to Jamaica. The hero of Trafalgar barely escaped with his life after a long illness. At the beginning of the nineteenth century Spain retained possession of the entire territory embraced 28 PANAMA. in the question of inter ocean communication, but she had made no practical progress towards its set- tlement. JSTeither had she added materially to the available knowledge of the world on the subject, for the results of Spanish exploration and survey in this direction have never been made public. With the exception of the re-opened communication by way of Tehuantepec the old Spanish overland routes had all fallen into disuse, and traffic between the mother country and the possessions on the w^est coast of America and in the Pacific Ocean was maintained by vessels sailing round Cape Horn and the Cape of Good Hope. Humboldt visited Mexico at about this time and recorded the ignorance that prevailed amongst the local authorities regarding the interior of the country. He stated that there was not a single mountain, plain, or city from Granada to Mexico of which the elevation above the sea was known. DISINTEGRATION" OF SPAIn's AMEEICAN COLONIES. Ere this the entire civilized world had become keenly interested in the question of an interoceanic canal, and the investigations of Humboldt com- manded wide attention. Amongst other effects, they . aroused the Spanish Government to action in the matter. \^In_ 1814.,, t;he,,.Cortes passed an act author- ; ;zing the construction of a canal tliroiii^b Uic l^lhyiiis. SPAIN'S LOST OPPORTUNITY. 29 and pro viding for the organization of a company to carry ouiTIKe enterprise. \, Before anything of im- portance Had been accomplished under this legisla-^" ' tion the revolutions occurred which wrested frorfi^:;;^"-^ Spain her provinces in South and Central America, j^ With the loss of territory went the opportunity fdf profit and glory by cohnecting the oceans. . :^^^\^<0.Mi^t-^^ In 1819, the states of ISTew Granada, Ecuador, and Venezuela united in forming the Republic of Co- lumbia, under Simon Bolivar; in 1831 they sepa- rated into three independent republics. In 1823 the Federal Republic of the United Provinces of Cen- tral America was formed by the union of Guatemala, San Salvador, Honduras, Nicaragua, and Costa Rica. These political changes, in what may be termed the canal region, opened up new possibilities in connection with the much-mooted question of a waterway and claimed the attention of capitalists and statesmen of all the commercial nations. From this time the matter is taken up with definiteness of purpose and never allowed to rest. Plans and nego- tiations of various kinds involving all the possible routes follow fast upon each other until we arrive at the inception of the work by the United States Gov- ernment and the assurance of its accomplishment. 30 PANAMA %S-.r-^^ ^^.!»v<^ '^♦^5>* '-->,..Xl^^^^- k Mn c SHORTER COURSES OF TRANSPORTATION. Some of the immense advantages to be conferred on the world by the Panama Canal can be seen by a glance at the map. II. PANAMA. CANAL EXPLORATION. Concession to an American from Nicaragua — Baily's Explora- tion of the Nicaragua Region — The First Survey of the Panama Line — Development of the United States as a Factor in the Canal Question — The Vanderbilt Company in Nicaragua — An Able Survey of the Nicaragua Route — The Construction of the Panama Railroad — An Important Senate Investigation — Establishment of the Interoceanic Canal Commission — Report of the Interoceanic Canal Commission — Various Ship Railway Projects. Early in 1825/ the Republic of Central America, tlirough its representative at Washington, conveyed to Henry Clay, then Secretary of State, a desire for " the co-operation of the American people in the construction of a canal of communication through Nicaragua, so that they might share, not only in the merit of the enterprise, but also in the great advan- tages which it would produce." Clay was fully alive to the importance of the project, the execution of which, he said, " will form a great epoch in the commercial affairs of the whole world." He re- turned a favorable answer to the proposition and promised an investigation on the part of the United ?A 32 PANAMA. States of the claims advanced in favor of the Nic- aragua route. CONCESSION' TO AN AMEEICAN FEOM NICARAGUA. In 1826, the Republic of Central America, having grown , impatient of the delaj on the part of the United States, entered into a contract with Aaron H. Palmer of New York for the construction of a canal capable of accommodating the largest vessels afloat. The work was to be started within a year from the date of the agreement. The contract was to remain in force as long as might be necessary for the reimbursement of the capitalists engaged, in the amount of the money invested, together with ten per cent per annum, and for seven years after such re- imbursement the company was to receive one-half of the net proceeds of the canal. At the expiration of the seven years in question the property was to be transferred to the Republic. It was expressly stipu- lated in this contract that the passage should at all times be open to the ships of friendly and neutral nations without favor or distinction. Having secured his concession. Palmer endeavored to organize a construction company with a capital of five million dollars. The utter inadequacy of this amount is illustrative of the lack of explicit informa- tion which characterised all similar enterprises until quite recent times. Palmer failed both in America BAILY'S EXPLORATION. H3 and in England to enlist the necessary financial aid and the contract was never acted upon.* After an abortive attempt to complete arrange- ments with a Dutch company, the Central American Republic again addressed the Government of the United States with an offer to grant to it the right to construct a canal. In response to a recommendation of the Senate growing out of these overtures, Presi- dent Jackson commissioned Charles Biddle to visit Nicaragua and Panama, with instructions to examine the different routes that had been contemplated and to gather all the information and documents pro- curable bearing upon the matters in in^ ,x'est. No satisfactory results followed this mission. A mes- sage was sent to the Senate to the effect that it was not expedient at that time to enter into negotiations with foreign goveniments with reference to a tram isthmian connection. The truth is that the Govern- ment and its agents were not sufficiently assured as to the stability of the new republics and feared to create relations that might lead to political embroil- ment. BAILy's EXPLOEATION of the NICARAGUA EEOION. Meanwhile the active interest in the canal question was not confined to the United States. In 1826 an * House Report No. 145, 30th Cong., 2nd session. 3 34 PANAMA. English corporation sent Jolin Baily to Nicaragua for the purpose of securing a concession. In this object Baily was forestalled by the American, Palmer, but he remained in the country, and about ten years later was employed by President Morazin to determine the most favorable location for a cut- ting. Baily threw valuable light upon the Nicaragua route and made a very able report. He recommended a route from Greytown to Lake JSTicaragua, across the lake to the Lajas, and thence to San Juan del Sur on the Pacific coast. With the termini he expressed himself as well satisfied. He proposed to utilize the entire length of the San Juan, which would necessi- tate blasting the rocks at the rapids, diverting the Colorado into the S'an Juan and deepening the latter river. Pie found the four principal rapids within, a stretch of twelve miles, formed by transverse rocks, with a passage on either side affording a depth of from three to six fathoms. The river was navigated at the time by piraguas., large flat-bottomed boats of as much as eight tons burden, which passed the rap- ids without serious hazard. Baily's line from the mouth of the Lajas, which he proposed to use for three miles of its leng'th, was seventeen miles. This he thought might be reduced to about fifteen and a half miles. His summit level was 48Y feet above the lake and the canal was to accommodate ships of twelve hundred tons with a FIRST SURVEYS OF PANAMA ROUTE. 35 depth of eighteen feet. He offered an alternativo plan which would reduce the summit level to 122 feet above the lake but would necessitate the connection of two of his stations bj a tunnel over two miles in length. The report frankly estimated the difficulties involved in the undertaking, and closed with, the statement that although he could not speak confi- dently as to the feasibility of the route, which had never been surveyed, he believed that a continuation through the Tipitapa into Lake Managua and thence to the port of Realejo was worthy of serious consid- eration. Whilst these investigations were proceed- ing in the north, examination of other probable routes was being made. In 1827 President Bolivar com- missioned J. A. Lloyd to survey the Isthmus of Pan- ama vsdth special regard to the possibilities of rail and water communication. Despite the fact that this was the first transcontinental route, the scientific laiowledge of the territory was most insignificant. The geography of the strip was imperfectly known and the relative heights of the oceans or the altitude of the mountains separating them had never been ascertained. THE FIRST SURVEYS OF THE PANAMA LINE. Lloyd made a careful survey from Panama to a point within a few miles of the mouth of the Chagres. He seems to have considered plans for a 36 PANA1MA. canal premature, but said that should tlie time ar- rive when such a mode of communication might b© favorably entertained the route of the Trinidad River would probably prove the most desirable. He recommended for immediate purposes a combination rail and water route to take the place of the roads then in use from Chagres and Porto Bello to Pana- ma. His plan contemplated a short canal from a point on the Bay of Limon to the Chagres, the use of that river along its tributary, the Trinidad, to a favorable spot for a junction, and thence a railroad to the coast. As to the terminus he was divided in opinion on the relative advantages of Cherrera and Panama. The former had the merit of shortening the distance, whilst the latter was the capital and an already well-established port. The Eepublic of Colombia was disrupted in the year 1831 and the Panama region became a part of JSTew Granada. In 1838, that Eepublic granted a concession to a French company authorizing the con- struction of highways, railroads, or canals from Pan- ama to any desired point on the Atlantic coast. This company spent several years in making surveys and forming plans. The results were submitted to the French Government with a view to enlisting its aid in carrying out the undertaking. The project was presented in an extremely optimistic light and as one comparatively easy of accomplishment. The conces- sionnaires claimed to have discovered a depression FIRST SURVEYS OF PANAMA ROUTE. 37 in the mountain range wliicli would permit of a pas- sage at no gi'eater height above the average level of the Pacific than thirtj-seven feet. The company's statements excited extraordinary interest, and in 1843 Guizot, then Minister of Foreign Affairs, in- structed N^apolean Garella to proceed to Panama, to investigate the company's statements, and to make an independent examination of the entire situation. Garella's report,* which was an able treatment of the subject, heavily discounted the claims of the Sal- omon company and led to its failure. An inter- oceanic canal was recommended as the only means of communication that could adequately meet the future demands of commerce. Garella agreed with Lloyd that the Atlantic terminus should be in the Bay of Limon rather than at the mouth of the Chagres. That river would be met by his canal near its junc- tion with the Gatun. The reported low depression which had raised hopes of the practicability of a sea-level canal at a reasonable cost, could not be found. Garella suggested the passage of the di- vide by means of a tunnel more than three miles in length. The floor of this tunnel was to be 325 feet below the summit, 134 feet above the ocean, and the water level 158 feet above extreme high tide at Pan- ama. The canal was to have a guard lock at each entrance and the summit level was to be reached * Reprinted in House Report No. 322, 25th Cong. 3d session. 38 PANAMA. by eighteen locks on the Atlantic slope and sixteen on the Pacific. The water supply was to be de- rived from the Chagres through two feed-canals. The Pacific terminus was placed at Vaca de Monte, about twelve miles south of Panama. Garella esti- mated the cost of a canal on these lines at about twenty-five million dollars. At the cost of an addi- tional thi'ee millions he calculated that a cut might be made in place of the tunnel. DEVELOPMENT OF THE UNITED STATES AS A FACTOK IN THE CANAL QUESTION. " About the middle of the centuiy a succession of great, events vastly increased the importance of a maritime connection between the two oceans to the United States. The dispute with Great Britain as to the boundary line west of the Rocky Mountains was settled by the Buchanan-Packenham Treaty in 1846, and in August, 1848, an act of Congress was passed under which Oregon became an organized territory. The war with Mexico was commenced early in 1846, and by the terms of the Guadalupe- Hidalgo Treaty, which closed it in 1848, California was ceded to the United States. Before the treaty had been ratified gold was discovered there, and in a few months many thousands from the eastern part of the country were seeking a way to the mining regions. To avoid the hardships and delays of the UNITED STATES AND CANAL QUESTION. .'!9 journey across the plains or tlie voyage around the continent, lines of steamers and packets were estab- lished from New York to Chagi*es and San Juan del I^orte and from Panama to San Francisco, some of the latter touching at the Pacific ports in Nicaragua. For a while those travelling by these routes had to make arrangements for crossing the isthmus after their arrival there, and were often subjected to seri- ous personal inconveniences and suffering as well as to exorbitant charges. THE UNITED STATES INSTITUTES NEGOTIATIONS FOR A RIGHT OF WAT. " The requirements of travel and commerce de- manded better methods of transportation between the Eastern States and the Pacific coast, but there were other reasons of a more public character for bringing these sections into closer communication. The establishment and maintenance of army posts and naval stations in the newly acquired and settled regions in the Far West, the extension of mail facil- ities to the inhabitants, and the discharge of other governmental functions, all required a connection in the shortest time and at the least distance that was possible and practicable. The importance of this connection was so manifest that the Government was aroused to action before all the enumerated causes had come into operation, and negotiations 40 PANAMA. were entered into with the Republic of ISTew Gra- nada to secure a right of transit across the Isthmus of Panama." * This object was effected by a treaty that was ratified in June, 1848, In the following year, Elijah Hise, the representa- tive of the United States in Nicaragua, negotiated a treaty with that republic. By its terms ISTicaragua undertook to confer upon the Government of the United St •po o > SUGGESTED TRAFFIC REFORM. 73 the railroad company, the salaries paid by it, and the character of its corporate organization, and the expenses of the office in New York, certainly for the purposes and under the control of the United States, radical changes must be made." SUGGESTED EATLBQAD AND STEAMSHIP TRAFFIC REFOKMS. A contract existed between the railroad company and the Pacific Mail Steamship Company, which secured to the latter concern the exclusive privilege of issuing through bills of lading on freight from San Francisco to New York. Mr. Taft expressed the opinion that this contract was " invalid under the laws of Colombia and the laws of Panama." The Panama Railroad Company ran three cargo steamers on the Atlantic side, between New York and Colon, and would recognize no through bills of lading except those issued from its office in New York. Goods shipped across the Isthmus by any other line were charged the heavy local freight rates in force between Panama and Colon. This arrange- ment, together with its control of the docking facil- ities at Colon, most effectually enabled the company to shut out any competition in the Atlantic carrying trade. Early in 1905, Joseph W. Bristow was commis- sioned to investigate the situation under considera- tion. After an examination extending over several 74 PANAMA. montiLS he substantiated the foregoing facts and made the following recommendations: That the road should be continued as a commercial line, that it should be double-tracked, equipped with modern rolling stock, and supplied with additional wharves and other improvements ; that the rates for through freight should be made as low as the cost of the service and provision for a fair dividend will per- mit; that the steamship line maintained by the road between Colon and New York should be continued by the Government; that the exclusive contracts with the Pacific Mail Steamship Company and the two South American west coast lines should be can- celled " and the ports of Colon and Panama be opened to the use of all steamship lines on equal terms ; " that in case a new steamship line be not established within reasonable time by private capital between Colon and the Gulf ports, the Railroad Com- pany should establish and maintain such a line (It is cheaper and more convenient to move the products of the Mississippi Valley by way of these ports than through ISTew York) ; that in the event of the Pacific Mail Steamship Company discontinuing its service between San Francisco and Panama some other pri- vate corporation should be encouraged to take its place, but failing this, the Panama Railroad Com- pany should iim a line of steamers over the route. It will be seen that the report contemplates a con- siderable extension of the Government's commercial PURCHASE OF SUPPLIES. 75 operations, but only as alternative measures to be resorted to in case the desired objects can not be attained through private enterprise. Mr. Bristow recommends favoring American ships in traffic re- lations as far as may be consistent with treaty obli- gations, but, upon the theory that the railroad is performing the functions of a canal, he does not deem it practicable to discriminate to the advantage of American bottoms at the ports of Panama and Colon. The report met with the approval of the Govern- ment, and its recommendations in general will be carried out. As a first step in that direction the exclusive contract with the Pacific Mail Company was cancelled, June the 12th, 1905. A NEW APPMCATIOlSr OF OUE PROTECTIVE POLICY. At the outset of the Government's operations in connection with the railroad and canal a serious question arose which will demand the attention of the next Congress and may have an important bear- ing upon general tariff legislation. When the Com- mission was called upon to purchase supplies, the engineers in charge of the works drew its attention to the fact a great deal of the necessary material could be bought in foreign markets at a substantially lower figure than the lowest quotations of American bid- ders. The significant point was that these varia- V6 PANAMA. tions obtained where American-manufactured goods only were under consideration. For instance, steel rails were needed for the railroad. The fixed price of these rails in the United States was $28 per ton at the rolling mill. Freight charges to the Isthmus would increase the figures to $33. At the same time the Steel Trust was selling identically similar goods in foreign countries all over the world at $20 and $22 and paying the freight, amounting to as much as $8 per ton in some cases. In other words, a Mexican railroad might secure for $16 rails that the Panama Railroad, simply because it was an American cor- poration, was required to pay $33 for. It was found that from 30 to 40 per cent excess over foreign prices must be paid for the steel cars used in excavating. Two ships were required, and inquiry established the fact that one-half of the outlay involved, ($750,000), could be saved by purchasing from British owners. Many other requisitions could only be filled at the price of an exorbitant profit to different trusts. President Roosevelt, who has been invested by Congress with full authority for the construction of the canal, and upon whom full responsibility must necessarily fall, feels bound to conduct the operation with all reasonable economy, particularly at a time when the Government's expenditures are so largely in excess of its revenues as to suggest the imposition of additional taxes upon the people. The President prefers that the material used in the construction of THE FUTURE RAILROAD. 77 the canal should be purchased from American man- ufacturers, but he insists that the United States Government should not be required to pay higher prices than those at which the same manufacturers are glad to sell the same goods to foreign buyers. Mr. Roosevelt's decision that the Panama Canal Commission shall buy material and supplies where they can be obtained at the lowest price is likely to have far-reaching effect. It will lead to a discus- sion of the tariff by Congress, which, unless their supporters in the Senate prove strong enough to withstand it, will probably result in legislation ad- verse to the trusts. It is hardly necessary to state that as an adjunct to the canal operation the railroad is of the highest importance — indeed, it is a sine qua non. With the completion of the waterway, the road will lapse into the condition of a mere local line between Colon and Panama. It should, nevertheless, continue to be a valuable property in the hands of either the Government or a private corporation. As a means of transporting men and material employed in the operation of the completed canal it will always be of service. It is probable that a considerable amount of freight will be reshipped even after the canal is opened. Many voyagers will leave vessels at the point of entering the canal in order to avoid what will generally be an unpleasant passage and secure the op- portunity of spending a few hours in Panama by 78 PANAMA. making the transit by rail. Both the terminal ports, but especially Panama, must grow rapidly under the influences of future traffic and the local business o£ the railroad will be proportionately increased. IV. PANAMA. THE ISTHMIAN COUNTRY. Political Changes in Panama and Columbia — The Recent Rev- olution in Panama — A Comic Opera Coup d' €tat — The American Part in the Affair — United States Marines Are Landed — Nerve a More Potent Factor than Numbers — The President's Denial of Official Complicity — Columbia's Tardy Appreciation of Her Interests — The Ancient Graves of Chiriqui — Curious Ornaments of a By-gone Race — The Mystic Frog of the Early Indians — The Mineral Resources of Panama — The Famous Pearl Islands of Panama Bay — Climatic Conditions on the Isthmus. During recent years the ribbon of land that joins the continents of JS'orth and South America has loomed large in the public eye. Since the days of Greece's glory no such small strip of soil as the Isthmus of Panama has gained equal distinction. It has been the scene of stirring adventure and the site of the wealthiest city in the world. It has been the subject of epoch-making dip- lomacy and a sphere for political disturbances. It is the seat of the greatest engineering enterprise in his- tory; an enterprise which is destined to largely revo- lutionize the commerce of the earth and, more than 79 80 PANAMA. any other modern factor, to influence the fortunes of nations. In tlie second decade of the sixteenth century Angel Saavedra mooted the idea of a canal through this narrow neck of inter-ocean terxitority. Since that time the thought could not be banished from the minds of men though a King of Spain decreed death to any who should voice it. IFor two hun- dred years and more plans and projects for the great waterway have been advanced. The first at- tempt to construct it ended in a cataclysmal failure. In these early years of the twentieth century the opening of a passage is at length assured and it will be available to the traffic of the world almost, perhaps exactly, four hundred years from the dis- covery of the Pacific. THE ISTHMUS OF PANAMA. The neck of land separating the two great oceans of the globe, which is called the Isthmus of Panama, forms the southern termination of the great Ameri- can isthmus extending north to Mexicorj^'^his strip of land curving about four hundred and seventv mile& . from west to east has commonly been styled |,,,J]a««-"'&tlmius of Darien, but that name is more properly applied to the section of country between t|ia-flulfs.,of. Uraba and San Miguelrjf"^he Isthmus of Panama is traversed along its entire length by the ;-Tf<> i THE ISTHMUS OF PANAMA. 81 Cordillera de Baudo, separated from the Andes by the Valley of the Atrato which marks the northern limit of South America. Erroneous impressions are apt to be created by the usual practice of studying geography with the aid of the ordinary flat maps, which have the effect of exaggerating the size of countries in high latitudes and diminishing the equa- torial areas. One thousand miles in latitude 60 de- grees occupies upon the ordinary map twice as much space as does one thousand miles along the equator. Jt is a revelation, to many a well-informed person to learn that South America is very nearly as large ^as"17o^Er America. jFor the study of th^e Panama Canal in its relations to the rest of the world the use of a globe, or a map on the poly conic projection is recommended. Another point worth noticing in this connection is that the most pronounced diversion from the general north and south trend of the Ameri- cas is found in the Isthmus of Panama, which takes a lateral direction east and west and throws the south- ern continent, so to speak, to the east of the northern, so that a line dropt due south from New York would pass through the Pacific Ocean off the coast of Chile. In looking at a map of the western hemisphere we are accustomed to finding the Atlantic Ocean to the east or on the right hand. For this reason a sectional map of the Canal region is likely to be a little confusing at first glance. It will show the Pacific on the right and the Atlantic on the opposite h 82 PANAMA. side of the page. This is due to the fact that the Isthmus makes a northerly loop in the portion con- taining the Canal Zone, and I^anajna is actually east ,Qf_Qalim» from which^ort the Canal wjlLii^kfe,^ south-eastferly direction to its Pacific terminus:is^. A line from Buffalo continued south would bisect the Canal and leave Panama on the right and Colon on the left. The writer finds an excuse for these explanations in the knowledge that many intelligent persons have been puzzled by the unfamiliar geographical condi- tions involved in an examination of the Canal project and related subjects. POLITICAL CHANGES IN PANAMA AND COLUMBIA. Having secured their independence from Spain, the provinces of Venezuela, Ecuador, Colombia, and Panama formed a republican federation. Subse- quently, the two first-named seceded, and Panama with Colombia established the United Sovereign States of ITew Granada. Although each of the states combined in this political union exercised sovereign powers, the paramount authority in the territory be- came gradually centralized at Bogota. In 1861, against the wishes of the leading citizens of Panama, the United States of Colombia were organized with a new constitution conferring greater powers on the government at Bogota. Twenty-five years later, after RECENT REVOLUTION IN PANAMA. 83 a civil war in wkich many lives were lost, Colombia succeeded in establishing the republic which took her name. By this measure Panama lapsed to the con- dition of a mere department with a governor ap- pointed by the Colombian president and vested with little independent authority. The Panamans, whilst forced to submit to this degradation, have always protested against it and have consistently declared their right to the position of a constitutional state. The government of Panama by the corrupt Colom- bian politicians had always been bad, and the people of the Isthmus had entertained the design of inde- pendence for years before America opened negotia- tions for the Canal and, indeed, had enjoyed it for three years following 1857. THE KKCENT BEVOLTJTION IN" PAITAMA. Panama threw off the yoke of Colombia at an extremely opportune time as regards the plans of the United States for the construction of the Isthmian Canal. The coincidence of the event was the only basis for the utter nonsense written in this country upon the subject at the time. Even recently certain papers have published a silly story by a syndicate writer which purports to give the " inside " history of the rebellion. There is absolutely no ground for the accusation that the American authorities insti- gated the coup which gave independence to the Isth- 84 PANAMA. ' mus, but, on the contrary, sufficient evidence that, although they may have had some inkling of the at- tempt before its occurrence, they were entirely free from participation in it. The suspected representa- tives of our Government have denied that any Amer- ican official instigated or assisted in the revolt. In this they are borne out by the statements of the lead- ing Panaman revolutionists and by Doctor Herran, the Colombian Minister to Washington at the time. The Hay-Herran Treaty was negotiated at Wash- ington in 1903 between the representatives of the Governments of the United States and the Eepublic of Colombia. Its purpose was to secure to the form- er state the privilege of making a canal through the Isthmus of Panama, and amongst its provisions was one guaranteeing to Colombia the payment of ten millions of dollars upon the completion of the con- vention. The national legislature of the latter coun- try, moved it is believed by the hope of inducing us to pay a higher price, failed to ratify the treaty. A COMIC 0PE3JA COUP D^ETAT. The Panamans are much more astute tlian is gen- erally supposed. They had realized fully the enor- mous advantages that would accrue to their country from tlie operation of the Canal by America, and when the opportunity seemed to be in danger of de- struction by the action of the Colombian politicians COMIC OPERA COUP D'fiTAT. 85 the leading men in Panama who, as has been said, have harbored thoughts of independence for years, determined to take matters into their own hands. 'No doubt they calculated, as they reasonably might, upon the United States acknowledging them as soon as they had knocked off the shackles. The revolution was bloodless and savoured of opera bouffe in the absurdity of its details. The Government of Bogota learned of the plot before it was put into execution and despatched several hundreds of the ragamuffins that composed its " army " to Panama under Gen- erals Tobal and Amaya, with orders to arrest the conspirators and carry them to the capital. When the detachment arrived at Colon the generals hur- ried forward over the railroad with their warrants and were promptly placed in confinement by the rev- olutionary leaders. Meanwhile, Colonel Shaler, the Superintendent of the Panama Railroad, unquestionably placed imped- iments in the way of the further progress of the troops. It must be remembered, however, that Col- onel Shaler, although an American, was not an offi- cial and acted as the representative of the corporation which was interested in the sale of the canal property to the United States, for the Panama Canal Company owned the railway. The sympathy of the American Government and people was unquestionably with the Panamans, but they received no official aid from this country. 86 PANAMA. Marines were landed from an American gunboat and two days later the Colombian troops took ship for Cartagena. Panama immediately declared itself an independent republic and was recognized by tbe United States without delay. THE AMEKICAN PAST IN THE AFFAIR. There is reason to believe that the Colombian sol- diers were bribed — at the rate of about five dollars apiece — by friends of Panama, but the statement that the money was distributed or handled by an officer of the American Navy is a gross and stupid libel. The presence of the marines was without doubt a decisive factor in the accomplishment of the revolution, but that it was not premeditated and had no other purpose than the protection of American lives is proved by the following official report of the officer commanding the Nashville: " U. S. S. Nashville, Third Eate. " Colon, U. S. Colombia, November 5, 1903. " Sir : Pending a complete report of the occur^ rences of the last three days in Colon, Colombia, I most respectfully invite the Department's attention to those of the date of Wednesday, November 4, which amounted to practically the making of war against the United States by the officer in command of the Colombian troops in Colon. At 1 o'clock p. m. UNITED STATES MARINES LANDED. 87 on that date I was summoned on shore by a precon- certed signal, and on landing met the United States consul, vice-consul, and Colonel Shaler, the general superintendent of the Panama Railroad. " The consul informed me that he had received notice from the officer commanding the Colom- bian troops. Colonel Torres, through the prefect of Colon, to the effect that if the Colombian officers, Generals Tobal and Amaya, who had been seized in Panama on the evening of l^ovember 3, by the inde- pendents, and held as prisoners, were not released by 2 o'clock p. m,, he, Torres, would open fire on the town of Colon and kill every United States citizen in the place, and my advice and action were re- quested. I advised that all the United States citi- zens should take refuge in the shed of the Panama Railroad Company, a stone building susceptible of being put into good state for defense, and that I would immediately land such body of men, with ex- tra arms for arming the citizens, as the complement of the ship would permit. UNITED STATES MARINES ABE LANDED. " This was agreed to, and I immediately returned on board, arriving at 1 :15 p. m. The order for land- ing was immediately given, and at 1 :30 p. m, the boats left the ship with a party of forty-two men under the command of Lieutenant-Commander H. 88 PANAMA. M. Witzel, with Midshipman J. P. Jackson as sec- ond in command. Time being pressing, I gave ver- bal orders to Mr. Witzel to take the building referred to above, to put it into the best state of defense pos- sible, and protect the lives of the citizens assembled there — not firing unless fired upon. The women and children took refuge on the German steamer Marcomania and the Panama Railroad steamer City of Washington, both ready to haul out from dock if necessary. " The Nashville got under way and patrolled along the water-front close in and ready to use either small arm or shrapnel fire. The Colombians sur- rounded the building of the railroad company al- most immediately after we had taken possession, and for about one and a half hours their attitude was most threatening, it being seemingly their purpose to provoke an attack. Happily our men were cool and steady, and while the tension was very great no shot was fired. " At about 3 :15 p. m. Colonel Torres came into the building for an interview and expressed himself as most friendly to the Americans, claiming that the whole affair was a misapprehension, and that he would like to send the alcalde of Colon to Panama to see General Tobal and have him direct the dis- continuance of the show of force. A special train was furnished and safe conduct guaranteed. At about 5 ;30 p. m. Colonel Torres made the proposi- NERVE MORE POTENT THAN NUMBERS. 89 tion of witlidrawing his troops to Monkey Hill if I would withdraw the Nashville's force and leave the town in possession of the police until the return of the alcalde on the morning of the 5 th. THE NERVE OF AMERICAN MARINES PREVENTS A CON- FLICT WITH COLOMBIA. " After an interview with the United States con- sul and Colonel Shaler as to the probability of good faith in the matter, I decided to accept the proposi- tion and brought my men on board, the disparity in numbers between my force and that of the Colom- bians — ■ nearly ten to one — making me desirous of avoiding a conflict so long as the object in view — the protection of American citizens — was not im- periled. " I am positive that the determined attitude of our men, their coolness and evident intention of standing their ground, had a most salutary and de- cisive effect on the immediate situation, and was the initial step in the ultimate abandoning of Colon by these troops and their return to Cartagena the fol- lowing day. Lieutenant-Commander Witzel is enti- tled to much praise for his admirable work in com- mand on the spot. " I feel that I can not sufficiently represent to the Department the grossness of this outrage and the 90 PANAMA. insult to our dignity, even apart from the savagery of the threat. " Very respectfully, " JOHW HUBBAED, " Commander, United States ISTavy, Commanding. " The Secretary of the Navy, Navy Department, Washington, D. C." In his more detailed report Commander Hubbard stated : " I beg to assure the Department that I had no part whatever in the negotiations that were car- ried on between Colonel Torres and the representa- tives of the provisional government; that I landed an armed force only when the lives of American citizens were threatened, and withdrew this force as soon as there seemed to be no grounds for further apprehension of injury to American lives or prop- erty ; tliat I relanded an armed force because of the failure of Colonel Torres to carry out his agreement to withdraw and announced intention of returning; and that my attitude throughout was strictly neutral as between the two parties, my only purpose being to protect the lives and property of American citi- zens and tiO presei've the free and uninterrupted transit of the isthmus." THE PRBSIDEJNI't's DENIAL OF OFFICIAL COMPLICITY. President R-oosevelt, referring to the foregoing re- ports, says : " This plain official account of the oc- DENIAL OF OFFICIAL COMPLICITY. 01 currences of J^Toveniber 4 shows that instead of there having been too much prevision by the American. Government for the maintenance of order and the protection of life and propertj on the isthmus, the orders for the movement of the American warships had been too long delayed: so long, in fact, that there were but forty-two marines and sailors avail- able to land and protect the lives of American men and women. ... At Panama, when the revo- lution broke out, there was no American man-of-war and no American troops or sailors. At Colon Com- mander Hubbard acted witb entire impartiality toward both sides, preventing any movement, whether by the Colombians or the Panamanians, which would tend to produce bloodshed. On ISTovember 9 he pre^- vented a body of the revolutionists from landing at Colon." In his message to Congress the President made the following reference to the treaty and the complica- tions which grew out of it: " During all the years of negotiation and discussion that preceded the con- clusion of the Hay-Herran treaty, Colombia never intimated that the requirement by the United States of control over the canal strip would render unat- tainable tbe construction of a canal by way of the Istlimus of Panama ; nor were we advised, during the months when legislation of 1902 was pending before the Congress, that the terms which it em- bodied would render negotiations with Colombia im- 92 PANAMA. practicable. It is plain tliat no nation could con- struct and guarantee the neutrality of tiie c^nal with a less degree of control than was stipulated for in the Haj-Herran treaty. A refusal to grant such degree of control was necessarily a refusal to make any practicable treaty at all. Such refusal there- fore squarely raised the question whether Colombia was entitled to bar the transit of the world's traffic across the isthmus. . . . Colombia, after having rejected the treaty in spite of our protests and warn- ings when it was in her power to accept it, has since shown the utmost eagerness to accept the same treaty if only the status quo could be restored. One of the men standing highest in the official circles of Colom- bia on E^ovember 6 addressed the American minister at Bogota, saying that if the Government of the United States would land troops to preserve Colom- bian sovereignty and the transit, the Colombian GoV' emment would ' declare martial law, and, by virtue of vested constitutional authority, when public order is disturbed, (would) approve by decree the ratifi- cation of the canal treaty as signed ; or, if the Gov- ernment of the United States prefers, (would) call an extra session of the Congress — witb new and friendly members — ' next May to approve the treaty.' " Having these facts in view, there is no shadow of a question that the Government of the United States proposed a treaty that was not only just, but COLOMBIA'S TARDY APPRECIATION. 03 generous to Colombia, which our people regarded as erring, if at all, on the side of overgenerosity, which was hailed with delight by the people of the imme- diate locality tlirough which the canal was to pass, who were most concerned as to the new order of thing's, and which the Colombian authorities now recognize as being so good that they are willing to promise its unconditional ratification if only we will desert those who have shown themselves our friends and restore to those who have shown themselves un- friendly the power to undo what they did. I pass by the question as to what assurance we have that they would now keep their pledge and not again re- fuse to ratify the treaty if they had the power ; for, of course, I will not for one moment discuss the pos- sibility of the United States committing an act of such baseness as to abandon the new Republic of Panama." DESCRIPTION OF THE ISTHMUS OF PANAMA. The recognition of the independence of Panama by the United States was followed by a treaty l^e- tween the two countries which will be referred t9 in a succeeding chapter. The physical features of the Isthmus of Panama are very diversified. The center of the cpuntiy is occupied by mountains and hills. In some parts these elevations extend to the coast, but usually they 94 PANAMA. are flanked by alluvial plains or gently rolling coun- try. This again is fringed by a strip of costal swamp covered with mangroves. Heavy forest and dense jungle clothe the mountain districts. The growth is so strong and rapid that the railroad com- pany has to maintain a constant fight against its inroads. If not checked it would in six months bury the line. The Chagres is the principal river in every respect, but there are a number of smaller streams. The territory of the Republic of Panama is di- vided into provinces and these into municipal dis- tricts. The canal route traverses two of these prov- inces — those of Colon and Panama. Their prosperity is assured by the American enterprise now in process of development. THE IlSrHOSPITABLH SAN BLAS COUNTRY. The province of Darien is not a promising region. It is largely made up of mountainous wilderness and impassable swamps. Rumor has persistently cred- ited the San Bias district with rich gold deposits, but verification is rendered difiicult by the unfriendly attitude of the Indians there, who have always dis- played an unconquerable objection to the presence of white men. The San Bias Indians occasionally visit Panama on trading or marketing excursions, but they are reticent about their country and their affairs and decidedly averse to any but the most tem- THE ANCIENT GRAVE6 OF CHIRIQUI. 07) porary relations with foreigners. The provinces of Chiriqui and Veragua support industries of consider- able importance and appear to be capable of much greater development under favorable conditions. David, the capital of Chiriqui, occupies an extremely picturesque site upon a well-wooded coast. Behind the town stretches a fertile savanna backed by a range of mountains from two to three thousand feet in height. It is one of those quaint old settlements with which the traveler in Spanish-America becomes fa- miliar, but he never tires of the air of restful sim- plicity that pervades them. The houses, generally one story in height, are square whitewashed struc- tures with roofs of red tile and front verandahs. The inhabitants are hospitable, contented and in- clined to take life easily. Several of them are well- to-do and not a few highly cultured. THE ANCIENT GRAVES OF CHIRIQUI. Chiriqui became suddenly famous several years ago on account of the interesting relics that were unearthed there from the guanas, or graves, of the ancient inhabitants. A great number of these treas- ures were found in the district of David. " History is silent about the people who are buried in thou- sands there. The discovery of these old cemeteries came about in this wise : Many, many years ago in cutting a trench through a peaceful forest to drain 96 PANAMA. off water, the Indian diggers came across an image of gold. Great was their surprise and the execrable sedd'ore, or ' the cursed thirst of gold,' settled upon that primitive people like a nightmare. They kept on digging, and unearthed quantities of golden orna- ments and images of various kinds. Soon hundreds were digging in the forest, and it has been estimated that gold ornaments were uncovered to a value ex- ceeding $400,000 in a space of five or six years. They were sold for their weight, or value in coin, and went into the melting pot. Later, some archaeol- ogists took an interest in the matter, and some sys- tematic work was done, they directing and the natives doing the digging. It would seem that in the majority of cases the graves first were dug, their sides lined with pieces of stone, and then cross pieces were laid over these. Inside, the pottery was placed, together with ornaments of gold, cooking utensils, etc. The graves of the poorer class contained nothing but cooking utensils and no gold ornaments were found in them. A native locates a grave by tapping the earth as he walks along. As soon as he gets a hollow sound familiar to his expert ear he commences digging and digs down. The contents are stone implements, pot- tery implements, ornaments and pure gold, and orna- ments of gold gilt, a species of pinchbeck, called by the natives here tumhago. There are also ornaments in copper, and a few bone instruments. ORNAMENTS OF BY-GONE RACE. 97 '' There are a uumber of small idols in stone, vary- ing from nine to eighteen inches high. There is also a species of grinding stone, on which they evidently ground their corn, or its equivalent. The better class of these grinding stones were from eighteen to twen- ty-four inches in length, and from twelve to fifteen inches in width. I am now speaking of some of the largest. They were concave on top, and in the graves were found stone rollers fitting the upper surface. Generally they were made to represent some animal. GtTKIOUS IMPLBMEINTS OF A BY-GONE RACE. There were some v^th tiger-shaped heads and four legs. The tail generally folded around and rested on tlie left hind leg. A commoner type of grinding stone resembled a low stool of stone without any ornamentation. In the graves were found an endless variety of stone chisels and stone hatchets. Some of these chisels and hatchets were beautifully propor- tioned, presenting various planes and surfaces for examination, and tiieir edges in many instances were sharp even after having been exposed for long cen- turies to the effects of that humid soil. These were the implements with which the people did all their carving. " In the pottery implements the variety was al- most endless, not oidy suggesting considerable in- genuity, but also some knowledge of the anatomy of 7 98 PANAMA. the human body. Between many of these pieces of pottery and the male angels on the doors of La Mer- ced, at Panama, there was a striking analogy. . . . Roughly classifying the potteiy utensils, they were of two kinds, glazed and unglazed, and many of the markings on them had been made bi black and red pigments. Many of the borders, while crude, were very suggestive. There was a series of gods, little squat figures with triangular faces ; nearly all of which had been glazed and were ornamental. Their pectoral development was remarkable. It is sup- posed that they were a kind of idol. . . . Then there were rattles of ingenious construction, with which they soothed the gentle baby in early days. There was a series of whistles (it is supposed that they were bird calls) producing all sorts of notes, from a full rich sound to a gentle twitter. . . . THE MYSTIC FEOG OF THE EARLY H^TDIAIfS. " Among the gold ornaments found in the guacas at Chiriqui were many frogs. The frog seems to have been a favorite type of ornament with those early races. The largest frog of pure gold uncovered there weighed eighteen ounces. . . . Another thing that seemed very strange to me was a kind of bell. It was of gold, and an exact counterpart of the old- time sleigh-bells, or those with a slot. It had a han- dle and within were little pieces of metal, and these MINERAli RESOURCES OF PANAMA. 99 little bellsj when shaken, emitted quite a musical sound, o . . Among tJie tuinhago ornaments the majority represented birds or frogs. From a care- ful examination of a number of them the body seemed to be made of copper covered with a film of gold. How it was put on I am unable to say, but certainly gold it was. ... I saw another speci- men which caused me a deal of speculation. It evi- dently was intended for the figure of a king. It was in bronze, and that surprised me greatly, because the art of casting in bronze is deemed an art to this day." * THE MI^STEEAL RESOURCES OF PANAMA. It is very probable that with the exploitation that is likely to follow the opening of the Canal, the Isth- mus will prove to have rich and extensive mineral resources. Gold, copper, manganese, and coal are known to exist in different parts, but the greater portion of the country is yet to be subjected to geo- logical surveys. When the waterway comes into use a great market for coal will be established at Panama and the demand will doubtless lead to the operation of local mines. The island of Muerto, near David, is said to be almost a solid mass of coal covered with a stratum of clay. As early as 1851 the geologists. Whiting and Schuman, made a report on this deposit Wolfred Nelson. 100 PANAMA. which was published in London. Here would seem to be a favorable opportunity for American capital and enterprise. There are large areas of good grazing ground in the western provinces, and the industry has been pur- sued to some extent. When the Canal is in use there will be a ready and profitable market for meat at Panama and cattle raising should become one of the chief industries of this section. The country about the Chiriqui Bay already has a large and flourishing fruit trade. The entire region in the neighborhood of the Costa Rica border is ex- ceeding rich — as rich as any in the tropics, perhaps. It might be developed with comparative ease. It has a pleasant and salubrious climate. The people are genial and hospitable; well-disposed towards Americans and eager for improvement. THE FAMOUS PEARL, ISLANDS OF PANAMA BAY. The famous Pearl Islands lie in the Gulf about forty miles oft" the city of Panama. By the Span- iards they were called the King's Archipelago. The pearl fisheries are of very ancient origin. Balboa secured a number of the gems from the Indians and was told by them that the pearl oyster had been sought in these waters during uncountable ages. At one time these fisheries were probably as rich as any in the world, but reckless methods injured them, and PEARIj islands of PANAMA BAY. 101 whilst tliej are still worked in a desultory fashion, it may be said that the old beds are practically ex- hausted. The pearls of Panama have always been noted for their size. It is said that specimens as large as fil- berts have been found. They are very lustrous and have a silvery sheen, differing from the creamy shade of the pearl of Ceylon. The native Panamans are a more attractive people than one would be led to suppose from the accounts of travelers who have only come in contact with the lower classes in the city of Panama who are a mixed and far from representative lot. It has long been a practice with the well-to-do Creole families to send their children of both sexes to the best colleges of Europe and America. Conse- quently the upper class is distinguished by refine- ment and culture as well as many natural qualities of an admirable character. They entertain tlie strongest feelings of admiration and respect for the American people, and, if we may judge from recent experiences, our relations to the Panamans will con- tinue without diflSculty or friction. The disbandment of the army by President Amador was effected with little trouble because of the kindly intervention of the American minister, whose advice was accepted by both sides in a friendly spirit. It is doubtful if any other South American Republic could attempt the retirement of the entire military 102 PANAMA. force, no matter how weak, without precipitating a revolution. The rancheros of the country districts are peace- fully inclined and contented with their simple pas- toral life. They live in huts of the simplest con- struction and till a few acres of ground. Their wants are very few and easily supplied. The con- dition of the peon will be improved with the general prosperity that is in store for the Isthmus. CLIMATIC CONDITIONS OUT THE ISTHMUS. Except upon the coasts the climate of the Isthmus is not worse than that of the average tropical region and in some parts of the territory it is quite health- ful and pleasant. Hundreds of Americans have been employed by the railroad and many of them have enjoyed excellent health during residences extending from ten to twenty years. The average temperature is about eighty degrees and there is generally a re- freshing breeze from the north. The humidity in the rainy season is great and its effect very enervating to natives of higher latitudes. There are two seasons. The wet season commences about the middle of April and lasts for eight months. The dry season from the middle of December is generally considered healthy even in the canal region. During this period the sky is a cloudless blue by day and at night the m^oon and stars are sublime. V. PANAMA. COLON AND PANAMA. Porto Bello — Colon an Unattractive City — The Departed Glory of Panama Viejo — Panama's Wealth Attracts the Buccaneers — Morgan's Expedition to Isthmus of Darien — The Pirates Attack the City of Panama — The City Is Sacked and Put to the Torch — New Panama Built With Regard to Defense — The Houses and Churches Convertible Into Forts — The Interesting Church of Modern Panama — The Famous Flat Arch of St. Dominic — The Dead Are Temporary Tenants of Their Graves — In Spanish-America Graft Extends to the Grave — American Authority in The Panaman Republic — Panama Enjoys the Boon of Good Water. n the days wlien Spain maintained a great trade mite across the Isthmus, tb^ Atlantic terminus was Por to Bello , about t'.venty miles onsr of the mouth of^ the Canal. A cluster of lr,(li;ni slmcks upon a low beachnow maffes the placo Avhero tlio Spanish cral- Icons were wont to land tlioir caro-oos -^, ^he construction of \he railway gave "birth to tbe 103 104 PANAMA. modem port. The Americans called it Aspinwall, after one of the chief promoters. By the French it was named Colon. The city is built upon the Island of Manzanillo, a sand-covered coraline formation, three-quarters of a mile in length and not more than six hundred yards broad. It stands a very few feet above the ocean at high tide and is connected with the mainland by the railway embankment. The original town was anything but a pleasant or healthy place of residence. The railroad buildings, dwell- ings, laborers' quarters, and shops, mostly of wood, were scattered about without any particular system or order. The center of the island was occupied by an almost stagnant lagoon, creating a most undesir- able condition. During the disturbances incident to the revolution of 1885, Colon was completely destroyed by fire. It was reconstructed with somewhat more regard for convenience and sanitation, but still leaving much to be desired in both respects. C?OLON" AN UNATTRACTIVE CITY. The Colon of today is a straggling, unattractive city xvith some redeeming features, however, and a promise of more in the near future. The railroad company occupies the greater part of the water-front with its various buildings, including wharves and docks. Parallel with these is the main street, com- COLON AN UNSANITARY TOWN. 105 posed almost entirely of frame buildings. There are some good shops and a number of conscienceless deal- ers in spurious curios who, together with the enter' prising money changers, reap a royal harvest from unsophisticated travelers. From the moment of landing the stranger is beset by a howling crowd of nondescripts who contend with one another for the privilege of fleecing him. His baggage is dis- tributed amongst as many different individuals as possible, and upon his arrival at the hotel he is called upon to pay each one an exorbitant fee for his serv- ice, although it may have consisted in carrying a newspaper only. Before the American advent there was no escape from this imposition. If a victim refused to be mulcted he was haled before a magis- trate who invariably supported the extortioners. In those days a man dared not ask a native the name of a street unless he was prepared to pay for the information. This system of bleeding the helpless foreigner is now confined within the bounds of semi- decency and an American, at least^ is treated with a show of honesty. COLON ALWAYS AN UNSANITARY TOWN. Along the beach to the east of the town is the foreign quarter, containing some comfortable resi- dences, an Episcopal church built of stone, and a tolerable hotel. On the west side, fronting; the 106 PANAMA. ocean, stand the handsome houses of the old French officials. Thej are grouped in a park beautifully laid out and convey the impression that our predeces- sors of the Canal did not neglect their personal com- fort. The residence of de Lesseps is a particularly attractive structure of two stories surrounded by a double pier of verandahs. Back of the city upon the mainland is Mount Hope, or Monkey Hill, whose cemetery has a population greatly in excess of that of Colon. A small portion of the city has enjoyed the comparative advantage of a water supply de- rived through a small iron pipe from a reservoir near Mount Hope. The water is of indifferent quality' and the quantity is often insufficient even for the needs of officials and employees of the Panama Rail- road. Aside from these favored few, the inhabit- ants of Colon depended for their drinking water upon rain that was stored in iron tanks. At times in the dry season this was very far from fresh and the stag- nant water in the cisterns afforded the most perfect breeding places for disease-dealing mosquitoes. The Panama Canal Commission is eradicating this con- dition with as little delay as need be, but it has encountered serious difficulties in the matter. There is not anywhere in the vicinity of Colon a suitable and sufficient surface water supply available, but it is hoped that a subsurface supply may be secured from the deep strata of sands and gravels transversed by the canal line to the south of the city. COLON AN UNSANITARY TOWN. l**";* In the matter of sewerage Colon has been even more deficient, and the low site npon which the city is built renders the problem of establishing a system a difficult one. The Commission has decided that the lowest portions of the town must be elevated and the material excavated from the inner harbor will be used as filling for this purpose. In other places it is designed to cut channels, through which the tidal water may ebb and flow. The work upon these much-needed improvements is in active prog- ress and will be completed before long. Wlien these sanitary measures are in effect Colon should be a not unhealthy place. The splendid work that has been done by the medical corps under Colonel Gorgas, the redeemer of Havana, will be described in another place. A COMPAEATIVELY HEALTHY TOWN. Despite its known disadvantages and extremely forbidding aspect Colon has a record in the matters of health and mortality that compares favorably with that of Panama and belies the apparent conditions. Yellow fever has rarely appeared at Colon and ma- laria is seldom contracted there. Perhaps the city owes its comparative healthfulness to its situation on an island and the fact that a considerable portion of its surface is washed by sea water in which, it is said, mosquitos will not breed. 108 PAl^AMA. / F**'Tiine was when the^ word Panama suggested un- tQld*^ealth and v9lj^)tuoiis luxury. That was in the halycon days when the old city, designated the Key to the Pacific and the Gate of the Universe,, was the receiving point for the gold of Darien, the gearjSIof- the Gul£ i^laaids,^ .and the silver from the mines of South America. Fabulous treasure was qf^.._jtored in " Panama, the Golden," awaiting a favorable opportunity for carriage by the king's.^ horses over that splendid engineering achievement,.^ the paved way that crossed the Isthmus to Port^ Bellcv/" --..,»...- THH DEPAKTEI> GLORY OF PANAMA VIEJO. Panama Viejo was a beautiful city. On either side stretched a picturesque tree-lined coast. In the background the mountains reared their rugged heads and between them and the city rolled a noble savanna laid out in fertile fields and lovely drives. The city contained twelve thousand or more buildings. Many of the grand mansions were built of stone and others of aromatic cedar. There were palatial public build- ings; a handsome stable for the king's horses, and a castellated depository for the king's treasure. The churches were gorgeous and their plate and fittings world-famous. There were no fewer than eight monasteries and a magnificent hospital. The viceroy maintained a regal splendor; his suite and the many WEALTH ATTRACTS BUCCANEBRS. l^H other wealthy inhabitants lived in the greatest lux- ury. The natives were their slaves. Money poured into their coffers without any exertion on their part. They merely took their ease and collected toll of the minerals going to the east and of the merchandise passing through Panama on its way to Asia and the Pacific islands. pai^ama's wealth attracts the buccaneees. There was no wall around Old Panama; no need appeared to exist for any. Spain was supreme upon Tierra Firma, and no enemy was to be looked for from the Pacific side. The situation seemed secure and the Spaniards are to be excused for not antici- pating the audacious enterprise of the buccaneers. The wealth and prosperity of Panama was at once the wonder and the envy of the world. It excited the cupidity of the adventurous privateers whose base was the West Indies, and the boldest among them, Henry Morgan, planned an expedition against the golden city. A writer says of this extraordinary ruffian, that he was " brave and daring " (his sole redeeming qual- ities), "of a sordid and brutal character, selfish and cunning, and without any spark of the reckless gen- erosity which sometimes graced the freebooter and contrasted with his crimes. He was a native of Wales, and the son of a respectable yeoman. Early .110 PANAMA. inclination led him to the sea; and embarking for Barbadoes, by a fate common to all unprotected ad- venturers, he was sold for a term of years. After effecting his escape, or emancipation, Morgan joined the buccaneers, and in a short time saved a little money, with which, in concert with a few comrades, he equipped a bark, of which he was chosen com- mander." morgan's expedition to the isthmus. Having assembled nine ships and boats, with four hundred and sixty men of all nations, Morgan set out to take Porto Bello as a preliminary step to the greater enterprise. Porto Bello was a fortified strong- hold, but it was captured after a fierce fight. A number of nuns and friars were seized before they could find refuge within the walls and they were compelled by the buccaneers to advance before them and place the scaling ladders. For fifteen days the freebooters gave themselves up to the demoniac li- cense that always marked their success on such oc- casions. At the end of that time, having thoroughly pillaged and sacked the city, Morgan withdrew in his ships, after sending a message to the Governor of Panama, assuring him that he might expect a visit from the buccaneer chieftain at no distant date. Toward the close of 1670, Henry Morgan had com- pleted his preparations for another expedition to the MORGAN'S EXPEDITION, 111 Spanish Main, with Panama as the ultimate ob- jective. The force under the command of the pirate on this occasion consisted of thirty-seven vessels, well armed and provisioned, and two thousand desperate cutthroats eager for plunder and ready to dare any danger. They set out witli a grim determination that no power on earth should stay tlieir advance on Panama. Port Bello was recaptured and the castle of Chagres at the mouth of that river was reduced with much slaughter, less than ten per cent of the garrison of more than three hundred being left alive. In starting across the Isthmus, Morgan made the great mistake of failing to take more than one day's provisions. He expected to be able to forage upon the country, but in this he was deceived, and the party was reduced to the utmost straits in the weary nine days' journey. " Throughout the whole track to Panama the Spaniards had taken care not to leave the smallest quantity of provisions, and any other soldiers than the buccaneers must have perished long- before even the distant view of the city was obtained, but their powers of endurance, from their hardy modes of life, were become almost superhuman. At nightfall, when they reached their halting place, happy was he who had reserved since morn any small piece of leather whereof to make his supper, drink- ing after it a good draught of water for his gi-eatest comfort," 112 PANAMA. At length they stood upon the summit of the Pa- cific slope and shouted with joy at the sight that met their eyes. In the distance was the South Sea, and on its placid waters ships sailing in and out of the port of Panama, whose city was still hidden hy in- tervening elevations. In a valley below the emi- nence upon which they stood, herds of cattle peace- fully grazed. The pirates rushed among the animals and, slaughtering them, devoured their flesh raw. After this savage feast they pushed on and soon the plain of Panama lay before them with the city on the farther side. THE PIRATES ATTACK THE CITY OF PAJSTAMA. The strange battle commenced in the early morn- ing of the following day. The Governor of Panama, who commanded in person, had drawn up, on the savanna, a force composed of two hundred cavalry, four regiments of infantry and a number of Indian auxiliaries. The buccaneers were posted in a well- selected position on an eminence protected in front by a swamp, into which the cavalry floundered at the outset of the engagement. In the force of the freebooters were two hundred picked marksmen who did excellent service. At the end of two hours the horsemen broke and fled, followed by the infantry, who threw away their muskets in the panic. The city was yet to be taken, and, after a brief rest, the THE SACK OF PANAMA. 113 buccaneers advanced to the assault in the face of big guns, that were posted at the main approaches. The fighting was desperate on both sides, and the slaughter terrible. Six hundred Spaniards are said to have fallen during the day, and the loss of the buccaneers could not have been less. After a savage struggle of three hours, maintained in the streets, the pirates gained completed control of the city. THE CITY IS SACKED AND PUT TO THE TOK.OH. The horrors of the sack may be left to the imagina- tion of the reader. The beautiful city was put to tlie torch and most of its finest buildings were gutted by the flames, whilst those of wood were entirely de- stroyed. The plunder secured by the pirates was much less than they had anticipated. Many of the inhabitants had concealed their valuables and the priests had deposited the church plate and jewels in places of safety. Several vessels had put to sea laden with property and a galleon had escaped with the king's treasure. Today one must look for the ruins of Panama Viejo amidst a rank growth of tropical vegetation, above which rears the sturdy tower of St. Augustin, ^'VPt'whose altar Pizarro made votive supplication be- fore setting: out upon his iiiomentous voyage to the QjyLthT^j^he sudden and tragic fall of the old city, in the pride of its beauty and strength, had a de- 8 ::^»m. 114 PANAMA. pressing effect upon the Spaniards and left them with no heart to resurrect it. Thej transferred the capital to a site about six miles to the west, but the glory of " Panama the Golden " was never revived in its adumbrant successor. NEW PANAMA BUILT WITH EEGARD TO DEFENSE. In building the new Pacific port the Spaniards were not unmindful of the lesson taught by the buc- caneer raid. The city was laid out upon a rocky penin- sula, the whole of which is occupied by it. A wall, thirty to forty feet in height and of solid masonry, in places sixty feet broad, skirted the entire shore. Along the bay-front the outer wall was reinforced by another, and the intervening space formed a moat. This wall and its accessories cost more than eleven millions of dollars, despite the fact that the natives were forced to render almost gratuitous service in ita construction. Much of the wall still remains in a good condition of preservation. It is used as a promenade by the citizens and as a playground by their children. The moat has long been dry and some of the poorer dwellings have been raised within it. There is a story of a king of Spain who was noticed one day to be looking out toward the west from a high window of his palace. A minister, who remarked the strained expression of the monarch's eyes, ventured to enquire what might be the object BUILDINGS CONVERTIBLE INTO FORTS. Ijr, of his anxiety. " I am looking," said the king, " for those costly walls of Panama. They ought to be discernible even at this distance." THE HOUSES AND CHURCHES CONVERTIBLE INTO FORTS. All the old buildings of Panama were designed for use as forts in case of need. The houses have walls of stone, three feet thick, with heavy doors, often iron-clad, and windows only in the second story. Similar precautions were observed in the construc- tion of the churches. Their sides were made to re- sist the heaviest artillery of the day, and their win- dows stand sixteen or twenty feet above the ground. These defensive measures were justified by after events, for, although Panama the later never fell into the hands of an enemy during the Spanish do- minion, its strength alone saved it from attack on more than one occasion. Shortly after its founda- tion an unsuccessful attempt to take it was made by a force of buccaneers. That extraordinary man, Captain Dampier, took part in this enterprise. The substantial houses of Panama are much like those of the old Spanish colonies in other parts of the world — solid, heavy, forbidding structures, the upper story of which alone is occupied by the ovioi- ers. In Panama, as in San Juan and Manila, the best families are to be found living over a herd of 116 PANAMA. natives, or negroes, unless tlie ground floor is given up to a store, or workshop. The lower portions of the houses seldom have any windows in front, and if any exist, they are strongly barred. A verandah, overhanging the sidewalk, is the evening resort of the occupants of the upper half of the dwelling. The streets, paved with cobble-stones, are tortuous and often very narrow. There is too much conges- tion for health, or convenience, and the proposed im- provements in this direction will be a boon to the in- habitants. It is gratifying that, unlike the people of other Spanish-American cities which have been treated to a clean-up by us, the Panamans are im- mediately appreciative of our efforts in their behalf. THE INTERESTING OHURCHES OF MODECBN PANAMA. The churches and ecclesiastical ruins of Panama present a rich field for the research of the antiquarian and the architect, and a capable writer might find material for a highly interesting volume in them. " The oldest church is that of San Felipe Neri, in the long past the parish church of the city within the walls. Its side is on a narrow street, and over the sole entrance one reads, ' San Felipe Neri, 1688,' cut in a shield." The early Spaniards were famous for making cements, both colored and uncolored. So hard were they that they have stood the effects of the heat and moisture of that destructive climate CHURCHES OF MODERN PANAMA. ii>j without damage. This old-time cement today is as hard as stone. Over the entrance to public build- ings and churches they made their inscriptions in these cements, in many instances filling in odd spaces with ornamental work made of the large pearl shells from the famous Islas de Perlus, or Pearl Islands, in the Gulf of Panama. Such designs when new must have been chaste and beautiful, as the smooth, mother- of-pearl surfaces of the large shells on a background of reddish cement must have made a beautiful con- trast, the shells reflecting the sun rays in a thousand directions. " This quaint and most substantial old edifice faces on a small street. At one time it made the comer of the Plaza San Francisco. The large door is reached by a few stone steps on either side of which are plain columns, while there are a few lancet shaped windows above. Its front is very- plain. The whole is surmounted by a quaint old tower of the true Moorish type. It is built wholly of stone with a rounded cupola of the same material. Lashed to cross-pieces are the old-time bells. The door is a huge affair of most substantial make, studded with huge brazen heads or knobs. When closed from within, persons in the church could stand a siege very successfully. The side windows of the church are fully twenty-five feet above the street, and they were purposely so made in ease of attack. The walls of San Felipe l^eri are nearly five feet thick, and the windows are so deeply recessed as to lig PANAMA. remind one of an ancient fortress or prison." A larger, and not less interesting chnrch is that of San Francisco, facing upon the square of the same name. It was built early in the eighteenth century. The interior is very imposing with its gracefully arched roof and fine supporting columns, dividing the en- tire length of the edifice. The altar is an exceed- ingly large and beautiful structure of carved hard- wood. THE FAMOUS FLAT ARCH OF ST. DOMIlSriC. A strange story attaches to the ruins of St. Domi- nic. When intact, it must have been an extremely handsome edifice, but its noble towers and grand facade are things of the past, and the massive re- mains of the old church are now overrun by vege- tation. The most striking portion of the building has survived the attacks of fire and the shocks of earthquake. It is one of the most peculiar arches in the world. It stands complete near what was the main entrance. It is a single span of about sixty feet, its chord so flattened as to be almost hori- zontal. Architects are puzzled to account for this arch standing without further support than the ter- minal columns. Legend has it that this curious structure was erected three times and each time fell. A fourth time it was set up and the monk who de- signed it stood beneath the arch and declared that CATHEDR.iL OF PANAMA. 119 if it should not fall upon his head the work was good and would endure. The churches of La Merced, San Juan de Dios, St. Ana, and the Cathedral, deserve description if space pennitted. l^elson makes an interesting state- ment with regard to the origin of the last-named building : " The cathedral of Panama was built at the sole expense of one of the bishops of Panama, and was completed about 128 years ago. The bishop's father was a Panamanian by birth — a col- ored man. He made charcoal near La Boca de la Rio Grande, or the mouth of the Grand River, a stream entering the Bay of Panama some two miles from the Panama City of today. This colored man made his charcoal and brought it on his back from house to house to sell — a custom that obtains to this day. He gave his son, the future bishop, as good an education as was possible. In due time he be- came a deacon, priest, and finally bishop of Panama — a bishop of proud Panama, for in those days it was a wealthy city. He was the first colored bishop of Panama. This son of a charcoal burner devel- oped into a grand man, and in time crowned a life of usefulness by building the cathedral from his private means." Much of the stone used in its con- struction is from the highlands of the interior, and was brought many leagues on the backs of men. Af- ter long years the building was completed in 1760. The churches of Panama are both numerous and 120 PANAMA. noisy, facts that are impressed upon the stranger by the almost incessant clanging of their bells. Panama has been the scene of three or four great fires, in which several ecclesiastical buildings were damaged or destroyed. THE DEAD ARE TEMPOEARY TENANTS OF THEIR GRAVES. Tihe city has several cemeteries, but the system of temporary tenancy forbids any calculation of the number of past occupants. When a graveyard becomes crowded the coffins are taken up, the bones shaken out in a heap, and the empty recep- tacles offered for sale, or hire. The same system of leasing space is in force in the boveda enclosures. A hoveda is a niche just large enough to accom- modate the coffin of an adult. The cemetery is formed of a quadrangle surrounded by three tiers of hovedas. These are rented for a term of eighteen months, and after a coffin is deposited in one, the opening is closed with a slab, or bricked up. Where the space has been permanently secured, a memorial tablet often seals the aperture. When the rent of one of these sepulchers is overdue its contents are thrown out in just as business-like a manner as that in which a harsh landlord might evict a delinquent tenant. Perhaps the foregoing statements ought to haTB been made in the past tense, for the Ganal Com- GRAFT IN SPANISH AMERICA. 121 mission, in tlie exercise of its right of control in san- itary matters, will doubtless strictly prohibit all such practices. There has been an abatement of the evil in recent years as a result of the protests of for- eigners. This disgraceful custom of disturbing the dead was confined to the natives. In the Chinese cemetery and in that of the Jews, corpses have been permitted to rest in peace, and it goes without say- ing that such has been the case in the burial grounds controlled by the railroad and canal companies. IN SPANISH-AMERICA GRAFT EXTENDS TO THE GRAVE. One would naturally infer from the conditions, that the Panamans entertained no respect for the memory, or bones, of their deceased relatives, but such is not the case. The truth is that the system of renting graves is an exhibition of the " graft " that has for ages pervaded every rood of territory under Spanish rule. The right to conduct a cemetery, like the privilege of running a gambling establishment, was farmed out to the highest bidder, and the con- cesionero might regulate his business in almost any manner he pleased. The price of a permanent grave was placed so high that the poorer classes conld af- ford no more than a temporary lease, and when that had expired often found themselves unable to re- new it. The fact that they did not dispense with consecrated ground, as they might have been excused 122 ; PANAMA. for doing under the circumstances, is sufficient evi- dence of their regard for the welfare of their dead. The stranger in Panama is struck by the large number of saloons and low groggeries. They are on every hand and remind one of Port Said in the seventies. These places are well patronized by the mixed lower class of the city who account for fully two-thirds of its population of eighteen thousand. There are dissipated Indians, vicious negroes, half- castes of various combinations, an occasional China- man, and even a few European loafers. Alcohol is poison in this climate and the alcohol they drink would be poison anywhere. The liquor traffic was encouraged by the Colombian Government, which had a monopoly of the wholesale business. Gambling also enjoyed the friendly countenance of the clique of politicians at Bogota, who received tribute from it. There is every reason to believe that Panama, under American guidance, will redeem its reputation in this and other undesirable respects. The Com- mission has instituted a high license within the Zone with markedly good effects. AMBKICAN ATJTHOEITY IN THE PANAMAN REPUBLIC. The recently effected treaty with the Republic of Panama gave to the United States jurisdiction in the matter of sanitation and order, beyond the limits of the Canal Zone, into the cities of Colon and Pan- PANAMA ENJOYS GOOD WATER. ll>;] ama and over the adjacent waters. The Commis- sion has in mind to make Panama a clean and, at least, moderately healthy city, and there is no doubt whatever about the ultimate accomplishment of its purjDose. The task is a stupendous one, and the diffi- culties involved by it are fully appreciated, but it has already been attacked and plans are laid for a thorough transformation of the capital, Panama has existed without a water supply, or u sewerage system, for more than three centuries, and a magazine writer recently remarked that it would not ceem to matter greatly if it were left in the same conditiun for anoth- er decade or so. That, however, is not the way in which the Commission views the matter. These de- fects will be immediately remedied and, indeed, a great deal toward their removal has already been accomplished, PANAMA ENJOYS THE BOON OF GOOD WATEKw By the enlargement of a dam, which the Panama Canal Company had constructed at the headwaters ol the Rio Grande, an extensive reservoir has been formed. The water will be piped from this to another reservoir, on the summit of a small hill at Ancon, hav- ing a capacity of one million gallons. Thence it will flow by gravity to the city. The system is designed to furnish sixty gallons a day per head to a population of thirty thousand. At points on the streets, or other 124 PANAMA. public places, where portions of the population may not have sufficient means to make house connections, hydrants have been placed, so that an unlimited sup- ply of good water may be obtained without cost or difficulty. Before deciding upon the source of the supply, the Commission submitted samples of the water from the upper, or Rio Grande, reservoir to expert bacteriologists and chemical analyzers. After thorough tests the water was pronounced satisfactory before even the banks and bed of the reservoir had been cleaned of vegetation. The city has a few surface drains, but as they have been laid for the most part without regard to grade they are in many instances worse than none. The water in these conduits is frequently stagnant, or almost so, and impregnated with decaying vegetable and animal matter, A system of sewerage is in course of installation which will care for sixty gallons per head of the population per day and, in addition, one inch of rainfall per hour. This does not provide for the disposal of the maximum precipitation in the rainy season, but any excess over the capacity of the sew- ers will be carried through surface channels. The sewerage system, with a total length of nearly eight- een miles, will serve eveiy portion of the city, and may be readily extended to the proposed addition, or to outlying districts. VI. PANAMA. THE PANAMA CANAL CKDMPANY. Columbia's Concession to the French Promoters — Conclusion of the International Conference — Ferdinand de Leeaepa Diplomatist and Promoter — Fronde's Characterization of the French Management — Ruinous Financing From the Outset — The Promoters Feathered Their Nests Comfortably — The Organization of the Panama Canal Company — Peck- less Estimates of the Cost of Construction — The Stock Is Oversubscribed by the Public — The Company Commences the Work of Construction — A Simple Undertaking Accord- ing to de Lesseps — The Company Seeks Authority to Issue Lottery Bonds — De Lesseps Weakens Under the Pressure of Difficulties — An American Officer Inspects the Operation — Signs of Collapse Begin to Be Evident — The French Public Refvises to Subscribe Further Funds — A Receiver Takes Over the Panama Canal Company. Whilst the American Interoceanic Canal Commis- sion "was investigating the comparative merits of the various isthmian routes, a project for a waterway through the Isthmus of Panama was set on foot in France. In 18Y5 the subject was discussed at length by the Congres des Sciences Geographiques at Paris, which strongly recommended the immediate prose- 125 126 PANAMA. cution of surveys with a view to decisive action. Following the session of the Congress a provisional company was formed by General Tiirr and other in- dividuals for the purpose of securing a concession from the Republic of Colombia. This syndicate was composed of speculators whose sole motives were of a commercial nature. They despatched to the Isth- mus Lieutenant L, N. B. Wyse, an officer of the French Navy and a brother-in-law of General Tiirr, with instructions to select a route and negotiate with the Colombian Government for a concession. In making his selection the Lieutenant was to be guided by a consideration for the prime object of the syndi- cate, which was to make as large a profit as possible from the sale of whatever interests it might acquire. Wyse and his employers were not actuated by any utilitarian sentiments, but merely by a desire to make money out of the scheme regardless of ultimate con- sequences. The spirit that moved them in the pro- motion was exhibited by their successors in the con- duct of the enterprise, the management of which was " characterized by a degree of extravagancq and corruption that have had few if any equals in the history of the world." Colombia's concession to the fkench pkomotees. Lieutenant Wyse made a perfunctory survey, com- mencing at Panama and extending only about two- COLOMBIA'S CONCESSION. 127 thirds of the way to the Atlantic coast. Neverthe- less, he calculated the cost in detail and claimed that his estimate might be depended upon to come within ten per cent of the actual figures. The Colombian Government entered into a contract with the Lieu- tenant which in its final form was signed two years later. It gave to the promoters the exclusive privi- lege of constructing and operating a canal through the territory of the Republic without any restrictive conditions, excepting that if the route adopted trav- ersed any portion of the land embraced in the con- cession to the Panama Railroad the promoters should arrive at an amicable arrangement with that cor- poration before proceeding with their operations. On the part of the concessionaires it was agreed that the course of the canal should be determined by an international congress of engineers. The concession was transferred to La Compagnie Universelle du Canal Interoceanique de Panama, generally known as the " Panama Canal Company," and on the fifteenth day of May, 1879, the Interna- tional Conference met to determine the route. It was composed of one hundred and sixty-four members, of whom more than half were French and the re- mainder of various nationalities. Porty-two of the members only were engineers. The proceedings were pre-arransred and those who knew most about the snbiect in hand found that their opinions were lea'^t in demand. The following conclusion was put 12S PANAMA. to the vote and carried by a small margin, the en- gineers who voted affirmatively being in a minority: CONCLUSION OF THE INTEKJSTATIONAX, CONFERENCE. " The conference deems that the construction of an interoceanic canal, so desirable in the interests of commerce and navigation, is possible and, in order to have the indispensable facilities and ease of access and of use which a work of this kind should offer above all others, it should be built from the Gulf of Limon (Colon) to the Bay of Panama ; and it particu- larly recommends the construction of a ship canal on a level in that direction." ,It was at this meeting that Ferdinand de Lesseps made his first public appearance in connection ynth the enterprise. He took the chair and dominated the sessions of the Conference, and there is no doubt that his will was the most potent influence in bring- ing about its decision. Several members, who were radically opposed to the conclusions, rather than de- clare their difference from the opinions of a man of the great distinction and high .reputation that de Lesseps enjoyed at the time, absented themselves when the final vote was taken. FERDINAND DE LESSEPS, DIPLOMATIST AND PROMOTER. Ferdinand de Lesseps was born in France in 1805. At an early age he entered the consular service of FERDINAND DE LESSEP&. 129 his coiintrj and on more tlian one occasion distin- guished himself in critical emergencies. In 1854, he visited Egypt and conceived the idea of the Suez Canal. For several years the opposition of the Brit- ish Government obstructed his efforts to carry out the great undertaking which was eventually brought to a successful conclusion by him. He also promot- ed the construction of the Corinth Canal. De Lesseps was at the height of his reputation, when he assumed the direction of the ill-fated Pan- ama venture. His great intellect may have been on the wane, but it is certain that his self-confidence and boundless belief in his own abilities were never greater than when he made the declaration, that " the Panama Canal will be more easily begun, finished and maintained than the Suez Canal." The dis- graceful failure that resulted must be attributed largely to de Lesseps himself. He publicly assumed the responsibility for the enterprise and its manage- ment from the outset. Although he was not an en- gineer and had but a very limited knowledge of the science of engineering, he considered himself better informed than men who had the advantage of tech- nical training and experience. He laid out the work, acting upon data which a professional engineer would have deemed insufficient or unreliable. With fatuous disregard for the opinions of experts, he al- tered plans and estimates to conform with his own unsupported ideas and, in, short, exercised an ar- 9 130 PANAMA. bitrary and unwise control over every feature of tlie undertaking. Almost to the last he cherished the belief that he enjoyed the unbounded confidence of the French people and that their purses would never be closed to his demands. Although his plans were fatally faulty and largely impracticable, there is no reason to doubt de Lesseps's good faith in the earlier stages of the enterprise. As it advanced and the errors of his basic calculations were forced upon him, he resorted to deception and, with the constantly in- creasing diflficulties of the situation, his words and actions took an ever increasing divergence from the direction of truth and honesty. !N^otwithstanding that the project was essentially a French one, and the money absorbed in it was sub- scribed in France, the interest in it was universal, and the collapse of the Company caused widespread excitement. !Not the least serious of the results was the discredit cast upon the whole question of inter- oceanic communication and especially upon the Pan- aman phase of it. Exaggerated pessimism succeeded to the optimistic hopes which attended the launching of the venture and even after this lapse of time doubts of its practicability are extensively enter- tained. Such doubts, however, can not find a logical basis in the fiasco produced by the Panama Canal Company. Its entire enterprise was built upon an un- stable foundation. The plans were conceived in er- ror and in ignorance of some of the most potent FRENCH MISMANAGEMENT. 131 factors in the problem to be solved. Important cir- cumstances were overlooked or inadequately pro vided for. Available knowledge was neglected and past experience disregarded. One man's precon- ceived ideas were applied to the situation in substi- tution of a scientific study of the conditions. The original miscalculations were followed by a series of avoidable mistakes, the inevitable consequence of which was the final disaster. The mismanagement of the undertaking amply sufficed to insure its failure, but the catastrophe that ensued was rendered greater by the insane extrava- gance and the unbounded corruption which charao- terized the conduct of the Company. Froude, in his book on the West Indies, says: froude's chaeacteeization of the feench mis- management. " In all the world there is not, perhaps, now con- centrated in any single spot so much swindling and villainy, so much foul disease, such a hideous dung heap of moral and physical abomination, as in the scene of this far-famed undertaking of nineteenth century engineering. By the scheme, as it was first propounded,* six and twenty millions of English • The noted author meant to say, th« equivalent of " bIx and twenty millions, etc." Very little English money was inyetted in the scheme. 132 PANMIA. money were to unite the Atlantic and Pacific oceans, to form a highway for the commerce of the globe and enrich, with untold wealth, the happy own- ers of original shares. The thrifty Erench peasantry were tempted by the golden bait and poured their savings into M. de Lesseps's money box." Commenting upon the causes that contributed to the failure, a writer in the Forum, stated that " fol- lowing his acknowledged principles of being sole ar- biter of the companies which he founded, M- de Lesseps has directed every step without counsel, con- trol or, it may be added, knowledge of what was re- quired. His eyes has been bent steadily upon the Bourse. He has never put forward a single esti- mate that has not been falsified by the event. For the work of a responsible engineer he has substituted the action of what he called consultative commit- tees, superior councils, and the like, which have been, for the most part, little more than picnic parties at public cost, and with the recommendations of which he has dealt as he thought fit." RTJINOFS FINANCING FROM THE OUTSET. The first and a continuous drain upon the finan- cial resources of the Company was in the form of " founders' profits." At the initial meeting of the shareholders, when they all fondly imagined that the venture was a bonanza, they were informed that RUINOUS FINANCING. 13.T thej had to pay the following claims, and accepted the statement without a murmur : ESTABUSHMEINT EKPENSES OF THE PANAMA CANAL COMPAITT. Tor the Concession $2,000,000 Preliminary Expenses. 2,160,000 Profit on Preliminary Expenses 2,360,000 American Financial Group....... 2,400,000 Total , $8,920,000 The greater part of this sum was taken by the founders out of the first $20,000,000 paid in. It is doubtful if any of the outside shareholders knew precisely, or even approximately, what these figures represented. They were too absorbed in visions of vast prospective profits to concern themselves over- much with present expenditures. In addition to the immediate cash benefits the founders were to receive fifteen per cent of the net profits of the Company. These prospective pay- ments were capitalized under the name of 'pwrts de fonduieur in " parts " of 5,000 francs each. There were originally five hundred and later nine hundred of these " parts," which attained a price of 80,000 francs each. De Lesseps is authority for the state- ment that in l!Tovember, 1880, they sold at 380,000 francs each. 134 PANAMA. In 1883 the promoters netted $716,900 and the directors and staff, $186,900, out of the " profits " of the undertaking. The directors were allowed a further three per cent of the profits, which contingent benefit they commuted into a present payment of $48,000. RECKLESS E(XTKA.VAGANCB OK THE ISTHMUS. Dr. Nelson, who was upon the ground whilst the Panama Company's operations were In progress, makes the following statement : " The famous Bureau System is what has obtained in the Isthmus up to the present time, with changes and amplifica- tions without number. There is enough bureau- cratic work, and there are enough officers on the Isthmus to furnish at least one dozen first-class re- publics with officials for all their departments. The expenditure has been something simply colossal. One Director General lived in a mansion that cost over $100,000 ; his pay was $50,000 a year ; and every time he went out on the line he had his de- placement, which gave him the liberal sum of fifty dollars a day additional. He travelled in a hand- some Pullman car, especially constructed, which was reported to have cost some $42,000. Later, wishing a summer residence, a most expensive build- ing was put up near La Boca. The preparation of the grounds, the building, and the roads thereto, cost PANAMA CANAL COMPANY FORMED. 135 upwards of $150,000. . . . Another man had built a large bath-house on the most approved prin- ciples. This cost $40,000. Thousands and tens oi thousands have been frittered awaj in ornamental grounds, for all had to be beau, utility being a sec- ondary consideration." THE OBGANIZATION OF THE PANAMA CANAL COMPANY. We will nov7 resume the history of the Panama Canal Company. It was capitalized at 400,000,000 francs in shares of 500 francs each, which were opened to public subscription in Europe and Amer- ica in August, 1879. Less than one-tenth of the amount was taken up and the organization of the corporation was indefinitely postponed. In the criminal trial that followed the failure of the Com- pany, Charles de Lesseps stated that after the abor- tive effort to float the Company his father placed the financial arrangements connected with the dis- posal of the shares in the hands of an influential group of financiers and journalists, who undertook to mould public opinion to a favorable form. Here we find the explanation of three of the enormous items of preliminary expense which are given above. Early in 1880 M. de Lesseps arrived at Colon, ac- companied by an international technical commis" sion which was charged with the work of making the final surveys and marking the precise line to be 136 PANAMA, followed by the Canal. This highly important task, like all the other preliminary steps of the undertak- ing, was performed in haste and the party left the Isthmus before the close of February, EECKLBSS ESTIMATES OF THE COST OF COOSrSTKUCTION, The Paris Congress had estimated the cost of con- structing the Canal at 1,070,000,000 francs and the time necessary for its completion at twelve years. The technical commission expressed the opinion that the entire operation might be finished in eight years at a cost of 843,000,000 francs. In view of the fact that several of the engineer-members of the con- gress considered the former estimate too low, it is difficult to understand how the commission arrived at its figures. The reduction was not, however, suf- ficiently great to satisfy the purpose of de Lesseps, which was to present to the public a proposition so attractive as to be irresistible. In order to promote this object, he took upon himself to alter the sum fixed by the commission to 658,000,000 francs, which he declared would be sufficient to provide for the en- tire expenses of the operation. The first year's traffic was estimated at 6,000,000 tons assuring a revenue of 90,000,000 francs and this was claimed to be a very conservative assumption, whereas, it was in * An approximate equivalent of this sum in dollars may be arrived at by calculating five francs to the dollar. FERDINAND DE LESSEES Promoter of the French Enterprise. STOCK OVERSUBSCRIBED. 137 reality almost beyond tJie possibility of realization. The limit of fanciful prediction had not, however, been reached. In May, 1880, Mr. A. Couvreux, Jr., a member of a large contracting firm, publicly stated that his house was prepared to undertake the entire work at a cost of only 512,000,000! In the light of our present knowledge the absurdity of these state- ments is patent, but we must remember that at the time the whole proposition rested upon a basis of theory. The fact should have been an incentive to conservatism and, although there may not be suffi- cient ground at this stage of the enterprise to impugn the honesty of the promoters, the recklessness with which M. de Lesseps submitted his inexpert calcula- tions to the public was little short of criminal. THE STOCK IS OVUESUBSCEIBED BY THE PUBLIO. Having prepared his new financial prospectus on the alluring lines indicated M. de Lesseps made a tour of the United States, England, Belgium, Hol- land, and France, delivering speeches in which the enormous profits to accrue to the fortunate investors in the Panama Canal project were depicted in the seductive rhetoric that was always at his command. Following this campaign of words, 300,000,000 francs in shares of 500 francs denomination were offered to the public and doubly subscribed for. It was agreed that the first two years should be 138 PANAMA. a period of organization to be devoted largely to sur- veying and ascertaining from actual experience some- thing of the cost of excavation and other features of the operation. In other words, the public having invested its money upon the strength of certain wild guesses advanced with all the assurance of conviction it was now proposed to investigate the facts. Later devel- opments proved that even the surveys of the line were unreliable. Three years after the engineering force had been at work upon the ground it was discovered that what they supposed to be an almost fathomless swamp was composed of solid rock a few feet below the surface and this was only one of a number of similar misapprehensions which from time to time necessitated changes in the plans. The second period, of six years, was to be occupied with the actual work of construction under contract THE COMPANY COMMENCES THB WOKK OF CONSTBUC- TION. In February, 1883, the latter stage was entered upon with Mr. Dingier as engineer in chief. His plan for a sea level canal made the following pro- visions: The canal, which had its origin at Colon, in Limon Bay, was to follow the bottom of the Chagres Valley for a distance of about 45 kilometers, to Obispo; it was then to cross the Cordilleras, the passage accounting for about 11 further kilometers of FRENCH SEA-LEVEL PLAN. 139 its length; continuing thence, the line traversed the Valley of the Rio Grande and terminated in deep water near the Island of Naos, in the Bay of Pan- ama, The full length of the proposed cut was 74 kilometers. The depth of the canal was to be 9 meters and its width at bottom 22 meters. For the regulation of the waters of the Chagres, which vary from 20 cubic meters at low water to 2,000 cubic meters in flood, it was proposed to con- struct a large storage reservoir at Gamboa by damming the river and deflecting its affluents to the sea on either side of the Isthmus. The cube of the excavations provided for by this plan, was a minimum of 120,000,000 meters, being 45,000,000 more than had been estimated by the commission and 75,000,000 more than the congress had indicated. This plan was accepted and, despite the enormous increase of work entailed by it, de Lesseps adhered for a year longer to his original estimate of cost and time of construction. It was not until a meet- ing of the shareholders in 1885, that he increased the former to $120,000,000, and extended the latter to July, 1889. A SIMPLE UNDEKTAKIN^O ACCOBDINa TO DB LESSBPS. At the inception of the enterprise M. de Les30«i. established a Bulletin which became the medium for l4U PANAMA. the dessemination among the shareholders and the general public of the most exaggerated reports and the most reckless misstatements. In March, 1881, de Lfisseps stated in this publication : " But two things need be done: to remove a mass of earth and stones, and to control the river Chagres. . . . The canal is, therefore, an exact mathematical op- eration." This statement alone betrays the promot- er's ignorance of the great engineering problems in- separably connected with the undertaking; for the control of the Chagres involves the most intricate and difficult calculations and engineering works imag- inable. By the middle of 1885, hardly one-tenth of the estimated minimum excavation had been done, and it became evident, even to the non-professional observer that the program could not be carried out in accord- ance with the assurances repeatedly given by de Lesseps. The enterprise began to be severely criti- cised and passionately discussed in the press of France. The credit of the Company was seriously affected by these assaults and it became necessary to adopt drastic measures for the restoration of public confidence in order to secure the additional funds that were already needed. At this critical jmicture, the promoter, for M. de Lesseps had long since taken the whole affair into his own hands, sought the aid of the Government, which had been extended to him during the Suez Canal operation. He applied for SUEZ AND PANAMA CANALS. IH permission to issue lottery bonds, but the desired au- thority was not granted at that time. By this time it was widely recognized that, de Lesseps's declaration to tlie contrary notwithstand- ing, the Panama project involved immeasurably greater difficulties than those encountered in the Suez undertaking. In fact, the two operations were so dissimilar in every essential respect that the latter afforded no criteria by which to judge the former. At Siuez, the entire line lay along low ground and most of the way traversed lakes, marshes, and swamps. One of the chief difficulties rose from the softness and instability of the material to be dealt with. In Panama the main problems are the passage of a chain of mountains and the disposition of a number of streams. At Suez, the tides are the same at each end of the Canal ; at Panama there is a dif- ference of twenty feet between the Atlantic and Pa- cific extreme oscillations. In the earlier enterprise neither climate nor labor entailed unfavorable con- ditions, whereas in all the operations upon the Amer- ican Isthmus they have been among the most vexatious factors entering into the situation. The con- structors of the Suez Canal had the support of the French Government and of the Khedive of Egypt, and the encouragement of the whole world. In his later venture de Lesseps start.ed with well-founded opposition against his plans and which steadily in- creased as the attempted execution of them betrayed 142 PANAMA. their futility. The comparison admits of extension were that necessary. In his letter of August the first, 1885, to the Min- ister of the Interior, praying for authority to raise a loan of 600,000,000 francs on lottery bonds, Ferdi- nand de Lesseps stated: " The organization of the working camps, the installation along the whole line of twenty-seven con- tractors piercing the isthmus at their own risk and peril, an immense stock on working footing, is such as to allow the canal to be completed and inaugu- rated in 1888." THE SEA-IaBVEL PEOJECT INVESTIGATED BY THEiEE PEOMINENT BNGINEEOKS. The Chamber of Deputies recommended that the desired permission should be granted to the Com- pany without delay, but the Government decided be- fore complying to send a competent engineer to the Isthmus with instructions to investigate and report upon the situation. At the time that this official was conducting his examination, two other engineers were similarly engaged. Each proceeded independ- ently of the others, but all arrived at one conclu- sion, which is the more remarkable since two of them were in the employ of the Company. In the fore- part of 1886 the reports were submitted to the re- spective principals. SEA LEVEL PROJECT CONDEMNED. 143 Armand Rousseau, the Government commissioner, found that the completion of the Canal with the re- sources available and in prospect was practically im- possible unless the plan was changed to one involving the use of locks. M, Jacquet declared that after a thorough investi- gation of the work in all its details he was convinced of the necessity of abandoning the original design and he recommended the construction of a lock canal along the precise line adopted for the sea level proj- ect. Leon Boyer, who held the position of Director of Works upon the Isthmus, stated tliat the completion of a canal on a level was impossible with the money at command and in the time stipulated. He sug- gested a temporary waterway, to be operated by locks and to be replaced by a sea level canal as soon as possible. This weight of expert opinion, which it must be remembered was in corroboration of similar expres- sions voiced by eminent engineers on previous occa- sions, de Lesseps discarded in his usual high-handed manner. He would not listen to a word against the sea level project, but declared in the most emphatic terms his intention to pursue it to the end. He had " promised the world a canal at the level of the oceans," and he proposed to keep his word despite all opposition. At this stage of the proceedings the " Great Undertaker," as he began to be dubbed, as- sumed the role of the persecuted philanthropist. 144 PANAMA. The shareholders of the Company were frequently informed henceforth that all kinds of powerful in- terests were in league against their enterprise, but at the same time they were assured that he, de Lesseps, might be depended upon to cir- cumvent the machinations of these wicked plotters. Lest the reader should fall into misapprehension as to the true significance of the recommendations of the engineers which have been cited, it may be well to remind him that the undertaking of the Pan- ama Canal Company was a purely commercial en- terprise, and that the reports and suggestions of the experts in question were made with that fact con- stantly in mind. None of them expresses the opin- ion that a sea level canal is impracticable, nor is the question taken into consideration by either of them directly. The point of their de^jision was whether a sea level canal could be constructed at a cost and in such time as to make its after operation a profitable business for the shareholders. Time, of course, is a great factor in the cost of an operation involving hundreds of millions. Interest increases at an enor- mous rate during the later years. Therefore, con- siderations which would preclude the pursuit of a project solely contemplating commercial results might not be of sufiicient weight to deter a govern- ment from following the same lines. The United States, observing business principles to the utmost reasonable extent, might justifiably construct a sea INCREASING DIFFICULTIES. 145 level canal at an expense that would entail the ruin of a private corporation. Even though the opera- tion of the canal should fail to return any interest upon the money invested the Government might well consider itself fully compensated for the outlay by the political advantages secured, the great savings in the movements of warships, and other desiderata which will be noticed in detail in later chapters. FURTHEE EFFORTS TO RE&TOREi THE WANING CONFI- DENCE OF THE PUBLIC. Whilst the engineer reports to which reference has been made above were in course of preparation, de Lesseps visited the Isthmus with a large party of individuals, many of whom were influential in the commercial and financial circles of France. Few of them had any technical knowledge, but the majority seem to have been susceptible to the persuasive elo- quence of the great promoter, for upon their return the enterprise received the endorsements of various chambers of commerce and general boards. In July, 1886, the Government declared its intention of post- poning for several months the decision in the matter of the lottery bonds. De Lesseps took umbrage at this action and, relying upon the effect of the moral support of the powerful commercial bodies, with- drew his request. He received from the stockhold- ers permission to issue a new series of bonds, and 10 146 PANAMA. did so with success, but the enterprise had passed be- yond the stage of possible salvation. AN AMEKICAlir OFFICER INSPECTS THE OPEEATION. In March, 1887, Lieutenant C. C. Rogers, U. S. N., was ordered by the I^avy Department to inspect the canal work. He took three weeks to the task, and went thoroughly over the line. He found the hospitals and quarters for officers and laborers clean, well-ventilated frame buildings, admirably suited to the climate. The canteens were kept by Chinamen, who boarded laborers at reasonable rates. There were upwards of 10,000 workmen, employed by con- tractors, who, with the number of the Company's employees, made up a total of 11,566. The labor- ers were chiefly importations from the West Indies, with a few negroes from the Southern States of America. The standard wage was $1.50 in silver a day. The laborers were paid every Saturday. Sunday was spent in drinking; Monday in recupera- tion; and on Tuesday they returned to work; " hence," says the lieutenant, " the number of work- ing days in a month seldom exceed twenty or twenty- two." The Company endeavored to put 20,000 la- borers upon the ground and, as they could not be had from the West Indies, tried to get them from West- em Africa and Southern China, but without success. The hospital records of the Company showed a death SIGNS OF COLLAPSE. 147 rate of seven per cent of those employed on the work from its inception to July, 1887, but this did not include the great number who contracted disease on the Isthmus and died elsewhere. SIGNS OF COLLAPSE BEGIN" TO BE EVIDENT. By this time the work had become seriously dis- organized. There had been changes of contractors. Sbme had thrown up their contracts, others had brought suits against the Company. There had been frequent alterations in the working plans and there was a general feeling of uncertainty as to the character of the future operations. In the meanwhile de Lesseps had found his atti- tude on the sea level question untenable and, after a considerable amount of beating about the bush, he consented to what he called " a provisional lock canal." The new plans were hurriedly prepared and adopt- ed. The estimates of the expenditure of money and time that would be necessary to carry them out were made low enough to create some hope that the public would advance further financial assistance to the scheme. The new route was to follow the exist- ing line of the Company's work. The surface of the canal at its summit was to be forty-nine meters above the level of the oceans. For the sake of econ- omy the depth of the cut was so far reduced that 148 PANAMA. had tihe work been carried to a conclusion it must have prohibited the passage of a large proportion of ocean-going vessels. The summit was to be reached by the use of hydraulic elevating machinery. THE FRENCH PUBLIC EE.FUSBS TO SUBSCRIBE FURTHER FUNDS. The next step was to procure the necessary funds. Application was again made to the Government for authority to issue lottery bonds and the Company was granted permission to raise 800,000,000 francs in this manner. The bonds of 400 francs denomina- tion were offered at 360 francs each. They were to bear four per cent interest and to be redeemed by a civil amortization association and to share in semi- monthly drawings. The proposition, backed by bet- ter security, would have been an extremely attractive one but, to so low an ebb had the Company's credit fallen that only 800,000 bonds were subscribed for. A second attempt to float the bonds, with extra in- ducements to subscribers, only proved the futility of the effort. The Company had already issued shares and obli- gations approximating the immense sum of $350,- 000,000 for an undertaking which it had promised to complete at a cost of $120,000,000. It now asked for an additional amount of upwards of $13;],- 000,000 for the purpose of constructing a " tern- FRENCH PUBLIC REFUSES TO SUBSCRIBE. 149 poraiy " waterway with a very limited capacity. Of the vast sums which the Company had expended, $105,000,000 went for interest, administration ex- penses, bankers' commissions, etc., and less than half was made available for the actual work. The annual interest charge was running in excess of $16,- 000,000 and at this time the Company had in hand barely sufficient cash to cover one month's current expenses. Before the close of 1887 a general belief pre- vailed in England and America, and, perhaps, every- where but in France, that de Lesseps would never complete the Panama Canal. The failure to place the lottery bonds in the following year showed plainly that at length the French public had lost all confidence in the scheme and its chief promoter, whose statements and estimates had been so greatly, and so often, changed. Bankers could not be in- duced to handle the loan issues on any terms. The Government was not disposed to advance money to the Company and was itself so involved financially as to put the question of its finishing the canal be- yond consideration. It was universally doubted whether the Company could complete the waterway even though it received the money asked for and it was shown that, in the event that it did succeed, its fixed charges would be in the neighborhood of $30,- 000,000, a sum far in excess of the maximum traffic returns of a sea level canal according to de Lesseps's 150 PANAMA. largest estimate. So that upon his own showing the project under the most favorable circumstances would be a financial failure. A RBCEIVEB TAKES OVER THE PANAMA CANAL COMPANY. On the fourth day of February, 1889, the civil court of the Seine appointed Joseph Brunet judicial receiver of La Universelle CoTnpagnie du Canal In- tervceanique de Panama, We will give a brief statement of the receipts and expenditures of the Panama Canal Company from the date of its organization until the end of the year 1889.* RECEIPTS. Francs. Proceeds from tlie Capital Stock, various loans and bond issues. . . .11,271,682,637 Other receipts from sundry sources. . 39,666,589 Expenses incurred but not paid 18,343,851 Total amount collected and due by the Company 1,329,693,078 * A few comparatively small sums should strictly come with- in the account of 1890, but, for the present purpose, may with- out impropriety be included in the above statement. ■j- Fractions have been discarded throughout. FINANCIAL STATEMENT. 151 EXPENDITURES. {Outlay on the Isthmus.) Salaries and expenses of management. . 82,704,415 Rents and maintenance of leased prop- erty 16,505,352 Purchase of articles and material for consumption 29,239,602 Purchase and transportation of machin- ery, etc 119,374,679 Surveys and preparatory work 1,354,733 Central workshops and management. . . 29,947,885 Various constructions, buildings, and general installation 47,038,528 Work of excavation and works of con- struction 447,171,124 Purchase of lands 4,753,275 Sanitarv and religious service 9,183,841 Total expenditures on the Isthmus. .783,273,438 (Outlay at Paris.) Paid for the Concession 10,000,000 Paid to the Colombian Government. . . . 750,000 Various expenses incurred before organ- ization 23,061,221 Paid to American Financial Group. . . . 12,000,000 Interest on various obligations 215,621,361 Amortization transactions 22,528,085 152 PANAMA. Expenses of floating bonds, loans, etc., commission, advertising, printing, etc. 83,084,203 Paid to agents of the Colombian Gov- ernment 213,800 Boards of management and direction. . 6,212,291 Salaries of employees. 5,117,221 Sundries 3,713,393 Home Office and furniture 2,087,397 Compensation to contractors on cancella- tion of contracts. . 1,200,000 Total expenditures at Paris 390,701,648 SUMMABY. Receipts from all sources 1,329,693,000 Expenditures: — At Panama 783,273,438 At Paris 390,701,648 Paid for Railroad shares 93,268,186 In connection with Lottery bonds 32,264,680 Advance to the Co- lombian Gov't 2,455,075 Various debtor accts. 11,455,801 Cash and negotiable paper in hand. , . . 16,274,238 Total equal to receipts 1,329,693,000 VII. PANAMA. THE NEW PANAMA CANAL COMPANY, An Effort to Restore to Public Confidence — Steps Towards the Reorganization of the Company — Well-calculated Action by the New Company — Report of the Committee of Inter- national Engineers — The Plan of the New Panama Canal Company — General Abbot's Estimate of the Task at Culebra — French Estimates of Cost of Excavation — The Dam and Lock Constructions at Bohio — Alhajuela and Gamboa Dam Sites Compared — Crystalization of Amer- ican Interest — Appointment of the First Isthmian Canal Commission — The Report of the Commission Favors the Nicaragua Route — French Company Meets Our Bid ■ — The Senate Investigates the Question of Route — The Nicara- guan Route Compared With that of Panama — Nicaragua Route Presents Many Extraordinary Difficulties — Control of Lake Nicaragua a Serious Problem — The Conditions at Panama Are Thoroughly Understood. The task entrusted to the receiver of the Panama Canal Company was an extremely difficult one. If the affairs of the Company should be wound up it would be impossible to save the shareholders from total, or almost total, loss of their investments, for the property and work which was estimated as worth 450,000,000 francs depended for its value upon a continuation of the operation. 153 154 PANAMA. The gravity of the situation, in which two hundred thousand persons, the majority of them in moderate circumstances, were involved, was fully appreciated by the Government and special legislation was effect- ed for the purpose of affording the Company tempo- rary relief from the pressure of its liabilities. Several circumstances militated against the en- deavors of the receiver to reorganize the enterprise. The most serious of these was the public scepticism which had followed the failure of de Lesseps to make even a respectable approach towards the achievement of his undertaking. The shareholders had learned at last that systematic deception had been practised upon them for years, and they felt that they had no reliable knowledge as to the state of affairs at the Isthmus. AN" EFFORT TO RESTORE PUBLIC CONFIDENCBw The first step in the process of restoring public confidence was the investigation of the commission to which reference was made in the preceding chap- ter. In addition to tlie statement of the amount of work done and tlie value of the plant, the commis- sion gave an opinion that a lock canal might be com- pleted in eight years at a further cost of 500,000,- 000 francs. Any hope that might have been derived from thia report was, however, dependent upon the success STEPS TOWARDS REORGANIZATION. 155 of tJie receiver in negotiating new concessions with tJie Colombian Government, for tlie time limit, under the contract, for the completion of the canal, neared its termination. Lieutenant Wyse, who had secured the original grant, was sent to Bogota immediately following the submission of the commission's report. After pourparlers that extended over four months, a new agreement was signed December the tenth, 1890, providing for an extension of ten years. In the meanwhile Joseph Brunet had died and was succeeded by Achille Monchicourt. The new re- ceiver applied himself with remarkable energy and acumen to the organization of an active company. He had contrived to keep the work going upon the Isthmus, although the scale of operations was greatly reduced. During the years 1891-3, he settled, by a series of compromises, most of the lawsuits exist- ing with the old company and successfully resisted certain creditors and bondholders who would other- wise have ruined the interests of all concerned. STEPS TOWARDS THE RBORGANTZATTON OP THE COMPANY. In April, 1893, Colombia made a further conces- sion to the receiver, by granting an extension until October the thirty-first, 1894, for the organization of a new company and ten years from that date for the completion of a canal. A few months later *' a 106 PANAMA. special law for the liquidation of the Interoceanic Canal Company " was passed and kad the effect of suspending the most obstructive actions before the courts. Earlj in the following year, death relieved Achille Monchicourt and hi8 place was filled by M. Gautron, There remained but a few months in which to effect the organization of the new company and, with the co-operation of the attorney for the bondholders, the receiver bent his energies to the task. They secured the co-operation of the managers of the old company, the contractors, and certain other interested persons, in the new enterprise, in the form of abatements of their claims, and subscriptions to the capital of the reorganization. The amount necessary to complete the full sum was to be asked of the old bondholders and shareholders. The by-laws of the ISTew Panama Canal Company were filed towards the close of June, 1894. The capital of the company consisted of 650,000 shares of 100 francs each, 600,000 of which were to be subscribed for, whilst 50,000, absolutely unencum- bered, were to be given to the Colombian Govern- ment in consideration of the contracts granting ex- tensions. Thus, five years after the appointment of a receiver for the Interoceanic Canal Company, what was generally known as the " New Panama Canal Company " was definitely established. The new company, like its predecessor, was a com- mercial concern, pure and simple. Although tlie WELL-CALCULATED ACTION. 157 French Government, by the exercise of extraor- dinary legislation, had been largely instrumental in the creation of the company, neither govern- mental patronage nor responsibility were extended to it. The directors of the new company appointed a Comite Technique to thoroughly examine the whole problem of the canal. This was a wise determina- tion, for the surveys made under the direction of the old company had been of such a cursory character that little reliance could be placed upon them. WELL-CALCULATED ACTIOIST BY THE NEW COMPANY. The Comite Technique was composed of seven French engineers and an equal number of foreign experts, including several who had the special ad- vantage of experience in canal work. Whilst making careful surveys and maturing plans for the ulti- mate operations, the committee directed the continu- ance of excavations in places where they were certain to come within the specifications of any plan that might eventually be adopted. In addition to its original investigations the Comite Technique verified and rectified the surveys and measurements of the old company. In short the te ment transferred by that Company was in such a deteriorated and scattered state as to require months for its collection and repair. Whilst the task of PLAN OF WALKER COMMISSION. 191 straightening up was being carried out Engineer Wallace tested some American steam excavators and established important data as to units of cost and ex- penditure of time. Meanwhile the Commission pro- ceeded, bj means of new surveys and examinations, to gain such information as might afford a satisfac- tory basis for the ultimate plans. As has been stated, the French companies performed a great deal of accurate scientific work along the same lines, but much of the data secured from them needed to be modified in order to bring it into harmony with the more extensive scheme of the American project. The Commission was not restricted by the limitations which governed the plans of the purely commercial enterprises, and whilst its work was entirely of a tentative nature, a waterway much larger than any contemplated by the French companies was a fore- gone conclusion. THE TJjAir OF THE "WALKEB COMMISSIOIir. The Commission formulated a plan for a lock canal at an 85-foot level with a dam at Bohio and a lake 38.5 square miles extending from that point to Obispo. The Commission rejected the sea-level plan, prefacing its conclusion with the following statement : " If a sea-level canal be constructed, either the canal itself must be made of such dimen- ftionfl that maximum floods, modified to some extent 192 PANAMA. by a resei^voir in the Upper Cliagres, could pass down its channel without injury, or independent channels must be provided to carry off these floods. As the canal lies in the lowest part of the valley, the construction of such channels would be a matter of serious difficulty, and the simplest solution would be to make the canal prism large enough to take the full discharge. This would have the advantage, also, of furnishing a very large canal, in which navi- gation under ordinary circumstances would be ex- ceptionally easy. It would involve a cross section from Obispo to the Atlantic, having an area of at least 15,000 square feet below the water line, which would give a bottom width of at least 400 feet. The quantity of excavation required for such a canal has been roughly computed, and is found to be about 266,228,000 cubic yards. The cost of such a canal, including a dam at Alhajuela and a tide lock at Miraflores, near the Pacific end, is estimated at not less than $240,000,000. Its construction would probably take at least twenty years." The investigations of the Commission were neces- sarily directed chiefly to the various suggestions for the control of the Chagres. The question had to be considered from the point of view of a sea level canal as well as that of a waterway with locks. In the former case the flood waters of the river, if ad- mitted into the canal, would create dangerous cur- rents and carry in heavy deposits, necessitating ex- OBJECTIONS TO COMMISSION. 193 tensive dredging. The various dam projects were examined by tlie Commission as well as the plans of the French Companies for diverting the river through a tunnel to the Pacific Ocean. Before the Commission closed the first year of its existence the question of its efficiency and adaptabil- ity to the work in hand was widely raised. Secre- tary Taft, upon his return from the Isthmus in De- cember, 1904, had expressed to the President an opinion that the Commission, whilst it had " made as much progress in the necessary preparations for the building of the canal as could be expected in the short time since its appointment," was unwieldy and so constituted as to render difficult the apportion- ment of specific work and responsibility among its members. Chief Engineer Wallace complained that his plans were repeatedly changed and that he was hampered in the effort to carry them out. THE OBJECTIONS TO THE COMMISSION. In a message sent to Congress on the 13th of Jan- uary, 1905, President Roosevelt plainly expressed his objections to the existing arrangement. He asked for " greater discretion in the organization of the personnel " to be employed in the management of the enterprise. " Actual experience has convinced me," he said, " that it will be impossible to obtain the best and 13 194 PANAMA. most effective service under the limitations prescribed by law. The general plans for the work must be agreed upon with the aid of the best engineers of the country, who should act as an advisory or consulting body. The consulting engineers should not be put upon the Commission, which should be used only as an executive instrument for the executive and ad- ministrative work. The actual work of executing the general plans agreed upon by the Commission, after receiving the conclusions of the advising engineers, must be done by an engineer in charge ; and we now have an excellent engineer." The President went on to state that the Commission should consist at most of five members and preferably of three. In response to this message, the House passed a bill to abolish the Commission and place the govern- ment of the Zone and the construction of the canal entirely in the hands of the President, but the meas- ure was defeated in the Senate. Failing Congres- sional relief the President determined, in his charac- teristic way, to deal with the situation himself. He secured the resignation of the entire Isthmian Canal Commission and reformed that body, placing the control of affairs definitely in the hands of an Ex- ecutive Committee composed of three of the seven members required by law to constitute the whole. Each of the executive members had distinct duties assigned to him. Chairman Shouts was placed in charge of the entire enterprise, with powers resemb- WALLACE RESIGNS, STEVENS STEPS IN. 195 ling those of a railroad president. Engineer Wal- lace was made field manager, with full control of the construction. Judge Magoon was created Governor of the Canal Zone and United States Minister to Panama. WALLACE RESIGNS AND STEVENS STEPS IN. The new arrangement had been in force less than sixty days when the Chief Engineer, for some cause which has never been fully explained, resigned his position. The resignation, coming as it did without warning or adequate explanation, naturally aroused resentment on the part of Secretary Taft, and Mr. Wallace retired from the service under a cloud. The place thus made vacant was promptly and satisfac- torily filled by the selection of John F. Stevens, who had been engaged by the War Department to super- vise the construction of the new railroads in the Philippines. Mr. Stevens assumed charge of the canal operations in August, 1905. On the first day of the following month the In- ternational Board of Consulting Engineers met in Washington. This body had been formed with the co-operation of several foreign governments for the purpose mainly of examining the principal problems involved in the construction of the canal. The most important matters considered by the Board pertain to the foiTu of the waterway. The members of the 196 PANAMA. Board are: Henry Hunter, Chief Engineer of the Manchester Ship Canal (nominated by the British Government) ; Adolph Guerard (nominated by the Trench Government), Eugene Tincauser (nominated by the German Government), J. W. Welcker (nomi- nated by the Government of the ^Netherlands), M. L. Quellenec, Consulting Engineer of the Suez Canal; Gen. George W. Davis, U. S. A. (retired) ; Alfred ISToble, Chief Engineer of the Pennsylvania Rail- road ; William Barclay Parsons, formerly of the New York Rapid Transit Commission; William H. Burr, of Columbia University ; Frederick P. Steams, hy- draulic engineer of Boston ; Gen. Henry L, Abbott, U. S. A. (retired) ; Joseph Bipley, engineer of the Sault Ste. Marie Canal; Isham Randolph, engineer of the Chicago Drainage CanaL These men are eminently qualified to exercise the important advis- ory functions entrusted to them, not only by reason of technical knowledge, but also on account of spe- cial experience. General Abbott and Mr. Hunter had been members of the Comite Technique; Gen- eral Davis, Mr. Parsons and Professor Burr, of a former Isthmian Canal Commission. THE president's ADDRESS TO THE CONSULTING ENGINEERS. The President addressed the assembled Board at length, explaining that his remarks were to be taken THE PRESIDENT'S ADDRESS. 197 as suggestions rather than as instructions. " I hope," he said, " that ultimately it will prove possible to build a sea-level canal. Such a canal would un- doubtly be best in the end, if feasible, and I feel that one of the chief advantages of the Panama Route is that ultimately a sea-level canal will be a pos- sibility. But, while paying due heed to the ideal perfectibility of the scheme from an engineer's stand- point, remember the need of having a plan which shall provide for the immediate building of the canal on the safest terms and in the shortest possible time. " If to build a sea-level canal will but slightly increase the risk, then, of course, it is preferable. But if to adopt a plan of a sea-level canal means to incur hazard, and to insure indefinite delay, then it is not preferable. If the advantages and disad- vantages are closely balanced I expect you to say so. " I desire also to know whether, if you recom- mend a high-level multi-lock canal, it will be possi- ble after it is completed to turn it into, or substi- tute for it, in time, a sea-level canal, without inter- rupting the traffic upon it. Two of the prime con- siderations to be kept steadily in mind are: 1. The utmost practicable speed of construction. 2. Prac- tical certainty that the plan proposed will be feasible ; that it can be carried out with the minimum risk." After a thorough study of the maps and docu- ments in the possession of the Isthmian Canal Com- 198 PANAMA. mission, the Board of Consulting Engineers spent three weeks on the Isthmus. Upon the return of the Board to the United States early in December, it was given out that their report would not be signed and submitted until February, or March, of 1906. It was, however, allowed to be known that the final recommendation of the Board would favor a sea-level canal. The majority which reached this decision was made up of the five foreign members, together with General Davis, Professor Burr and Mr. Par- sons. Tbe remaining five members, all Americans, advocated a lock canal. This conclusion of the ad- visory engineers was received with disappointment throughout the country and especially in adminis- tration circles. A BISAPPOINTING CONCLUSION. The Walker Commission, after detailing tiie re- quirements of a sea-level canal, had stated : " Whilst such a plan would be physically practicable and might be adopted if no other solution were available, the difficulties of all kinds, and especially those of time and cost, would be so great that a canal Avith a summit level reached by locks is to be preferred." It was upon this testimony, arrived at by the ex- penditure of much time and a million dollars, that Congress made its appropriation for a lock canal. The people had formed an idea that it was an ac- A DISAPPOINTING CONCLUSION. 199 cepted matter, and they were not inclined to be easily reconciled to a contrary decision on the part of a majority of the engineers, no matter how eminent, who were foreigners and therefore might be supposed to have less concern than Americans regarding the cost and delay entailed by following their proposal. At the present time it is impossible to tell what may be the outcome of the report of the Advisory Board, The body acted in a purely consultative capacity and there is no obligation, implied or other- wise, to heed its recommendations. The President is kno"\vii to be strongly averse to changing the plans in any manner that M'^ould involve serious uncertainty as to money and time that will be required for the completion of the undertaking. The Secretary of War and a majority in Congress are in accord with his sentiments. The law gives him unquestionable authority to proceed with the canal in the way he thinks fit. He may, if he chooses, entirely disre- gard the advice of the Board as to the form of the waterway and continue the work on the present lines with a view to the completion of the canal with locks. If, on the other hand, the President should adopt the recommendation of the Board it would be neces- sary for him to secure the endorsement of Congress in the form of a further appropriation to meet the additional cost of sea-level construction. It is proba- ble that the President will formally submit the re- port of the Board to Congress, accompanied by a 200 PANAMA. message arguing the desirability of adhering to tlie Sock-level project, COI^SIDERATIOasr OF THE RIVAL PROJECTS. It is universally admitted that a sea-level canal is the ideal waterway. It would involve few engineer- ing problems of consequence tbat would be absent from the plans for a lock canal. The two important elements of construction are the same in either case — the control of the Chagres and the passage of tbe divide. In botb cases it would be necessary to pro- vide for one or more dams and spillways to accommo- date the flood waters of the river and tbe diversion of its lower course is also a feature of each project. The construction of a sea-level canal would require a much deeper cut at the Culebra pass and other points, but it might not entail any greater difficul- ties in excavation than may be expected in digging a lock level, though tlie task of transportation to the dumps, a very serious one under any circumstances, would be greatly enhanced by the greater excavation. As to the time that should be estimated for mak- ing a waterway at the level of the oceans, expert opin- ions differ. It is believed that the Board will place it at fifteen years, whilst many authorities are in- clined to the belief that twenty would be a more reasonable figure. IX. PANAMA. THE PLAN OF THE CANAL. Sea-level Plan Recommended by the Board — The Starting Point of the Canal — Accommodation for the Largest Ves- sels — The Question of Time — The Great Culebra Cut — The Board's Estimate of Time — Cost of Maintenance — Lock Canal Project of the Minority — The Config- uration of the Canal Line — Excavation in the Cut — The Lake and Dam at Gatun — Dimensions of the Dam — Enormous Weight of the Dam — The Advantages of the Gatun Dam — Important Matter of Water Supply — The Summit Level — Lake Sosa — Early Suggestions Adopted — The Gatun Locks — Differences of Opinion as to Type of Canal — The Board Depreciated the " Soo " Canal, The report of the International Board of Consult- ing Engineers was transmitted to Congress by the President, February 19, 1906. The report was accompanied by letters of comment and advice from the President, Secretary Taft, Chairman Shonts and Chief Engineer Stevens, all of whom substantially agree in their criticisms and suggestions. As had been anticipated, a majority of the Board, composed of the following members, recommended the construction of the canal on the so-called " sea- 201 202 PANAMA. level " : Messrs. Hunter, Tincauser, Guerard, Quel- lenec, Welcker, being all the foreigners, and the three Americans, Messrs. Davis, Parsons and Burr. The Board made a close study of the question in all its aspects, both at Washington and upon the Isthmus. The plan of a former Isthmian Canal Commission, that of the Comite Technique,, and several plans sub- mitted by individual engineers, were carefully exam- ined. SEA-LEVEL PLAN RECOMMENDED BY THE BOAED. The report is prefaced by a statement of the rea- sons why a sea-level canal is feasible only in the Panama region. The width of the Isthmus of Pan- ama is less than at any other point that may be con- sidered. It is but thirty-six miles from sea to sea as the crow flies. This is five miles greater than the distance at San Bias, but there an open cut, or, in- deed, any kind of canal is impracticable on several accounts. The original summit on the Panama route was no more than 333 feet above the sea, and this is lower than the summit of the divide at any other point on either continent, with the exception of ISTic- aragua, where a sea-level canal has never been within the bounds of consideration. The general direction of the Isthmus of Panama is nearly northeast and southwest and the general route for the canal nearly northwest and south- THE CANAL ROUTE. 203 east. The summit at Culebra lies about nine miles from Panama Bay, and the distance between the point on the northern approach to this summit, where the present elevation on the proposed canal axis is 100 feet above sea level, to the point on the southern approach, to Culebra at the same height, is nearly nine miles. Within this distance will be found nearly one-half the total excavation required to make an open channel at the sea level adequate in dimensions and capacity to pass not only the largest existing commercial and naval vessels, but the largest which may be expected to require transfer between the At- lantic and Pacific oceans for many years to come. For the ultimate construction of the proposed sea- level canal the Board approves in general the align- ment adopted by the two French companies, to which later plans have conformed more or less. Some slight changes of direction are, however, recom- mended for the purpose of reducing curvature and minimizing excavation. Colon and La Boca are retained as the terminals, but extensive improvements at each entrance are sug- gested. THE STARTING POINT OF THE CANAU The initial point of the axis of the canal is located' about one mile northwest of Manzanillo light. Thence the line runs direct to the mouth of the Kiver 204 PANAMA. Mindi, where it connects with the centre line of the canal as partially excavated bj the Panama Canal Company. From Mindi the proposed line is along the cutting in question nearly as far as Bohio, a dis- tance of 12 miles. The canal first meets the Chagres at Gatun and repeatedly cuts its course between that town and Bohio. After passing Bohio the ground gradually rises toward the divide. The bed of the Chagres is prac- tically at sea level at Bohio, whilst at Obispo, 14 miles distant, it is 50 feet above sea level. Between these two points the canal follows the general course of the river, coinciding with it or cutting it at many points. At Obispo, or Gamboa, which are less than a mile apart, the trend of the Chagres valley is to the northeast almost at right angles to its former course, but the canal maintains the southeasterly direction followed by it from Colon to Obispo. The project contemplates a dam at Gamboa to control the floods of the Chagres. The waters escaping from the reser- voir through regulating sluices vrould enter the canal prism about a mile below Obispo. Obispo may be considered the northern entrance to the great cut through the divide ; from this point the ground rises abruptly. Between Obispo and Pe- dro Miguel the greater part of the material to be ex- cavated in accordance with this plan would be rock. A sea-level canal would require a cut to a depth of 3Y3 feet from the original summit. The present CAPACITY OF CANAL. 205 excavation has, however, reached a depth of 160 feet, so that 213 feet would be the maximum of future ex- cavation required for a sea-level canal with a depth of 40 feet. The length of the cut between Obispo and Pedro Miguel is nearly nine miles. The line of the canal reaches low marshy ground about two miles below Pedro Miguel. Thence to deep water in Panama Bay the Board has adopted a different alignment from that of the French plan. The latter closely conformed to the course of the Rio Grande to its mouth at La Boca. This line avoids a considerable amount of rock excavation, but involves two curves, in order to exclude which the line of the Board takes a straight direction from Miraflores through the Rio Grande swamp. The canal con- tinues in a straight line to and through the saddle between Ancon and Sosa hills, where the tidal lock is to be placed, and thence to deep water off Isla Fla- menco. The plan provides for levees from Mira- flores to the lock so as to prevent the tidal flow from entering the canal. The French plan required a tidal lock at Miraflores, about five miles from the coast ACCOMMODATION FOR THE LARGEST VESSELS. The proposed dimensions of the sea-level canal are calculated to facilitate the passage of the largest ves- sels afloat and to allow for some increase of size and 206 PANAMA. draft in tihe future. It is believed by the Board that a canal constructed on the plan suggested might be traversed by a ship of 90 feet beam and 38 feet draft at a speed of four or five miles an hour. The largest existing vessels might make six miles an hour and the average craft eight. These speeds would permit of passages ranging from five to ten hours in time. Summarized, the sea-level canal as recommended by the Board is a channel commencing at the 41-foot contour in Limon Bay, about 5,000 feet northerly of a line between Toro and Manzanillo lights, protected by two converging jetties with a width of opening of 1,000 feet; thence with a straight channel 500 feet in width at the bottom and a depth of 40 feet, pro- tected by a parallel jetty on the west and by Man- zanillo Island on the east, to Mindi, whence the land canal commences. This canal is designed with a depth of 40 feet and a bottom width of 150 feet in earth, with side slopes adjusted to the nature of the ground so as to give a surface width of from 302 feet to 437 feet. In rock the section is to be altered so as to have a bottom width of 200 feet and a sur- face width of 208 feet. At the Pacific end, the canal is to be furnished with a tidal lock located between Ancon and Sosa hills. Beyond this lock a straight channel is to project into the Bay of Panama with a bottom width of 300 feet and extending for a distance of three and three-fourths miles to the 45- QUESTION OF TIME. 207 foot contour.* The width adopted for the canal will be sufficient to permit steamers to maintain a speed of six to eight knots per hour, and to allow two ordi- nary steamers to pass each other on the line of the canal without stopping. At Gamboa there is to be located a dam, either of masonry or of earth and masonry combined, for the control of the Chagres, and at Corozal, sluices by which, during half the tide period when the level in the Pacific is lower than that in the Atlantic, water can be discharged from the canal into Panama Bay. The entire length of the line between shores is a little over 40 miles, while the total distance, includ- ing harbor channels, is 49.35 miles. The total length of curves is 19.17 miles, leaving 30.18 miles of tan- gents, or straight stretches. THE QUESTION OF TIME. In proceeding to its estimate of the time necessary for the construction of a canal, which " is one of the main elements of the whole question," the Board confidently assumes that its plan is superior to the lock-level project On this assumption it concludes that " if the work required under the less desirable plan can be finished within ten or twelve years, while that under the more desirable plan would require but * Contours refer to mean sea level. 208 PANAMA. two years longer, the small delay in tlie passage of the first vessel through the waterway might easily be neglected in comparison with the advantages se- cured under the better plan." The plan involves three great tasks — the installation of the locks, the construction of the dam at Gamboa and the excava- tion at the summit. The last is considered the con- trolling factor in the expenditure of time, as it will consume greatly more than any other portion of the work. The final estimate then is based upon a calcu- lation of the length of time necessary to complete the great cut. THE GEEAT CULEBEA CUT. The Board is of the opinion, derived from a study of the work already accomplished upon the prism, that " from 80 to 100 steam shovels of the most effec^ tive type now in use on the Isthmus can be efficiently employed continually on this work after complete organization. It will require from two to two and a half years to install and put in operation this exca- vating plant. The independent studies by the Board of the arrangement of railroad tracks and of com- plete systems of attack at both ends of this summit cut completely confirm the conservatism of the evi- dence given before it. It is as clearly demonstrable as any estimate of rate of progress and time for the completion of any great engineering work can be TRANSPOKIATION PROBLEM. 209 that after the full installation of plant not less than 100 steam shovels may be continuously engaged be- tween Obispo and Pedro Miguel until the amount of work remaining to be done becomes too small to afford space for the operation of the whole plant. " The Board recognizes that the removal of the material in the summit cut is in reality a problem of transportation. It is a comparatively simple mat- ter to excavate the material within a much shorter time than that allowed for the work, even on the sup- position that all of it except the clay near the surface must be shattered by preliminary blasting. The whole difficulty attending this part of the construc- tion of the canal is attached to the removal of the material from the shovels or other excavators to the spoil banks. This problem of transportation is in reality the substance of the problem of building the transisthmian canal, and, in treating tliis part of the project, the Board realizes and has considered the large amount of railroad track and the extensive transportation organization required for the dispo- sition of the waste material. It is probable, as has been estimated, that not less than three miles of stand- ard track will be required for each shovel employed, making a total of 300 miles of trackage for 100 shovels. " If it be assumed that 100 shovels are available for continuous work, there being a sufficient surplus above that number undergoing repairs whenever nec- 14 210 PANAMA. essary to maintain the working complement, it can be demonstrated that as mucli as 20,000,000 cubic yards of material classed as rock may be annually removed from the summit cut. This estimate is based upon an average number of v^^orking days of not less than 20 per month throughout the year, which is an underestimate on the basis of the experi- ence of the French companies and of that which has accrued since American occupation began in May, 1904. In this estimate the capacity of one shovel is taken as materially less than would be justified by the actual operation of steam shovels in the Cule- bra Cut during the past year, both in wet and dry seasons. Furthermore, it has been supposed that the working day is to be but eight hours long and that one shift only of laborers would be employed per day, whereas it is perfectly feasible to work two shifts in twenty-four hours, during the greater part of the year and possibly during the whole year. Using these estimates for the period of what may be as- sumed to be the maximum annual output in the Cule- bra Cut, and allowing at least two and a half years to attain this maximum rate at the beginning of the work and a period of not less than three years for a decreasing output in the more contracted space in the lower portions of the cut during the closing period of the operations, it is found that the entire quantity of 110,000,000 cubic yards of material in the divide can be removed within ten years. ARGUMENT FOR SEA-LEVEL. 211 " Although the preceding estimate of time has been based upon ample allowances for the effect of the rainy seasons, for the low grade of labor availa- ble on the Isthmus, and for climatic conditions in general, the Board has added about 25 per cent to it for other contingent causes of delay, either similar to those already provided for or of any other charac- ter. It is therefore the judgment of the Board that a ship canal on the sea-level plan outlined in this re- port can be completed within a period of time not ex- ceeding twelve or thirteen years." ARGUMENT FOR SEA-LEVEL CANAL. The report goes on to a statement of the reasons for preferring a sea-level canal to one on the lock plan. Many of these reasons are vigorously disputed by the minority section of the Board who have the support of a number of engineers thoroughly conversant with the subject. The chief argument of the Board for the adoption of its plan is based on the assumption that any type of canal involving lift locks as an essential feature must entail a degi'ee of hazard in the matter of ob- structions and accidents that would be absent from a watei-way at sea level. A large proportion of the report is devoted to the advancement of this propo- sition which, as we shall see later, is open to question, to say the least of it. In the opinion of the Board 212 PANAMA. the " locks constitute a restriction or limit to the capacity for traffic of the waterway in which they are found, i. e., they are in a substantial measure ob- structions to navigation. There is a limit to the number of lockages per day which may be made, per- haps not to exceed ten per lock or twenty per pair in any of the lock plans hitherto considered. The maintenance and operation of locks is also expensive. COST OF MAINTENAJSrCE. " If of such great dimensions as those considered necessary by the Board under the Spooner Act, they require the installation, maintenance, and operation of an extensive power plant for the working of the gates. It is not easy to estimate what the annual cost of maintenance, including renewals and opera- tion, of these would be, but, using the estimates of the Isthmian Canal Commission of 1899-1901, it is probable that the annual cost of operation of the six locks contemplated in the project brought before the Board would be about $525,000. This annual charge capitalized at three per cent would make a sum of $17,500,000 to be added to the cost of the lock canal. The corresponding item in the sea-level plan would be the capitalized annual cost of operating the tidal locks near Panama, COST OF SEA-LEVEL. 213 " It has already been stated as the opinion of the Board that the time required for the construction of the Panama Canal with a suimnit level at 60 feet above mean sea level will at best be only two years less than required for the construction of the sea- level canal. But, as affecting this question of time, it should be observed that accidents during construc- tion leading to an extension of the time required to complete the canal would be more likely to occur in the more numerous structures involved in the build- ing of the lock canal than in the works of the sea- level canal. It has further been shown that the dif- ference in cost between the two plans will not exceed about $71,000,000 in favor of the former, which must be reduced by the capitalized cost of the main- tenance and operation of locks and by the cost of the overflowed lands." The report closes with an expression of the belief of the Board that " the essential and the indispensa- ble features of a convenient and safe ship canal at the American Isthmus are now known; that such a canal can be constructed in twelve or thirteen years' time ; that the cost will be less than $250,000,000 ; that it will endure for all time." The minority report was signed by Messrs. ISToble, Abbot, Steams, Ripley and Randolph. The project proposed by it is set forth more exhaustively and with greater precision than is the plan recommended by the majority. iU PANAMA. The minority " believe a lock canal the better one for the United States to construct, for the following reasons : 1. Greater capacity for traffic than af- forded by the narrow waterway proposed by the Board. 2. Greater safety for ships and less danger of interruption to traffic by reason of the wider and deeper channels which the lock canal makes possible at small cost. 3. Quicker passage across the Isth- mus for large ships or a large traffic. 4. Materially less time required for construction. 5. Materially less cost." It will be noted that the most important of these considerations are precisely the advantages which the Board claims for the sea-level over the lock type of waterway, but, it may be added, the minority has made out a strong enough case on ita side to gain the support of the Canal Commission and of the Administration. lock: canal pkoject of the minoeity. The project is a modification of that proposed by the Isthmian Canal Commission of 1899-1901, which was itself based upon a number of preceding plans. The summit level is practically the same in each case. The minority plan provides for gi'eater dimensions than did that of the Commission, and recommends a dam at Gatun in place of that proposed at Bohio and places the terminal lock at Sosa instead of at Mira- flores. THE CANAL ROUTE. 215 A brief description of the configuration of the land along the canal line will conduce to a clearer under- standing of the plan proposed by the minority, which may safely be assumed to be that on which the waterway will be ultimately built. THE CONFIGUEATION OF THE CANAL, LINE. The Island of Manzanillo, off the northwestern point of which the harbor entrance to the canal is located, lies to a considerable extent below the level of the ocean. Whilst the harbor entrance to the chan- nel is located off the northwestern point of the Island of Manzanillo, it is at the mouth of the River Mindi, four and a half miles beyond, that the land canal be- gins. Here the surface of the ground is slightly above the ocean level. Three miles farther on it attains a height of 85 feet in the vicinity of Gatun. It then dips abruptly and from Gatun to Obispo, a distance of 23 miles, lies at a general elevation of 40 feet above the mean level of the Atlantic. Obispo may be called the northern entrance to the divide and Pedro Miguel its southern exit. The Culebra Cut, which extends between these points, is at present at an elevation of 173 feet, being 160 feet lower than the original crest. The cut as defined extends ap- proximately from point 31 to point 39.* From Pe- See profile map of the Canal line. 216 PANAMA. dro Miguel to Sosa Hill, on the shore of Panama Bay, is a stretch of six miles, throughout which the land hardly anywhere exceeds an elevation of more than 10 feet above the mean level of the Pacific Ocean. From Sosa Hill to the 7-fathom contour in the Bay, near Isla Perico where the channel termi- nates at point 49.72, is a distance of about five miles. Thus we have the canal line divided into four dis- tinct sections: 1. The Atlantic Ocean Level, length 7.15 miles. 2. The Summit Level, length 31.64 miles. 3. The Pedro Migiiel-Sosa Level, length 5.47 miles. 4. The Pacific Ocean Level, length 4.23 miles. The sum of these sections gives us an aggregate of 48.49 miles, and if we add to this the total measurements of the locks, we shall have 49.72 miles, being the exact length of the axis of the canal. The project of the 85-foot lock-level waterway is as simple as it is practicable. It consists briefly in damming the Chagres on one side of the divide and the Rio Grande on the other, and so forming two large artificial lakes. One of these will extend the full length of Section 2 and the other of Section 3. The two outer sections will be tidal channels at sea level. A glance at the profile map will show that in order to secure a depth of 45 feet throughout the canal, under this plan very little dredging and excavation will be required as compared with the amount neces- sary to the construction of a waterway at sea level. EXCAVATION IN THE CUT. 217 The former has its bottom at elevation 40 above sea level; the latter at 40 below. It is, however, only where the ground stands at elevation 40 or over, that there will be a clear saving of 80 feet in this respect. In places, such as the terminal channels, the depth of excavation requisite will be the same in each case and the fact that the lock plan contemplates a much broader channel through much of the course tends to decrease the disparity in the respective excavations. EXCAVATION IN THE CUT. Between points 8 and 25 there is practically no elevation exceeding 40, and consequently the natural bottom is at or below the desired level. From San Pablo, point 25, to Obispo, point 31 plus, some small material must be removed, but the work involved will be insignificant. The Cut must be reduced by 133 feet to reach the standard level of the bottom of the lock canal. For the sea-level construction it would be necessary to go 80 feet deeper and the extra depth would be through hard rock requiring to be blasted. In Lake Sosa, which will have a water level at 55 feet, no work worth mentioning will be needed to secure the 45-foot depth, because, as has been stated, the ground lies, with insignificant exception, below elevation 10. In general the minority approves the Board's plans for the Colon entrance, but suggests that the break- 818 PANAMA. "water might be altogether dispensed with as expen- sive and unnecessary, and the channel widened to 1,000 or more feet, with advantage to navigation and with a reduction in cost. From the point where the land canal commences, near the mouth of the Mindi, a 500-foot channel ia to be continued 2.6 miles to the locks at Gatun. THE LAKE AHB I>AM AT GATITN". The controlling feature of the project, with sum- mit level at elevation 85, is the earth dam across the Chagres at Gatun. The object of this dam is to form a great reservoir, or inland lake, in which the floods of the Chagres may be received and from which the surplus water will be discharged through sluices and the height of water in the reservoir regu- lated. Lake Gatun will be about 110 square miles in area and will form the summit level of the canal. The lake will also serve to impound water for lock- age and other purposes during the dry season and to give free, open navigation in a broad waterway all the way from Gatun to Obispo. Every plan for a lock canal at Panama has in- cluded a dam across the Chagres. Various sites for the structure have been suggested, the most fa- vored being Gamboa, Bohio, and Gatun. The plan of the Commission, which has been referred to, con- templated a dam at Bohio, fonuing a lake 32 square GATUN DAM. 219 miles in extent. The minority report presents forci- ble reasons for substituting the Gatun dam. The project when put into effect will transform the canal prism into two lakes practically extending from coast to coast and joined by the channel through the divide. The conclusions of the minority in this matter are based upon a great number of borings and recent topographical surveys. From these it is apparent that Gatun affords not only an entirely suitable loca- tion for the dam but also an excellent site, on the neighboring high ground, for locks. Investigation along these lines seems to establish the fact, which is of the greatest importance, that there would be no appreciable seepage under the dam, owing to the practically impervious nature of the material on which it would rest. In places where material of a somewhat less favorable character is found, it is covered with a blanket of practically impervious material 200 feet in thickness. The plans for the dam contemplate a structure of earth which could not be destroyed by the forces of nature and " could only be destroyed by making excavations which would require a large force working for a long time." DiMEasrsioNs of the dam. The top of the dam is 100 feet wide and stands 50 feet above the normal level of the lake ; at water level the distance through the dam is 374 feet, aiul 220 PANAMA. GATUNDAM 1/ // A\ If ^\ m 1 m M ^ \ /I \ iti— ■ W irt GATUN DAM. The embankment, with its great sluice, extends across the map, with the Locks upon the extreme right. The Panama Railroad will be diverted to a line east of tlie Locks and will cross an arm of Lake Gatun over a causeway, via Tiger Hill, to dry gronnd near Ahorca Laffarto. DIMENSIONS OF DAM. 221 at sea level the corresponding distance is 2,625 feet, or one-half mile. For the upstream slope, rock ob- tained from canal excavations will be dumped as riprap, with a special thickness about tJie level at which the dam will be exposed to wave action. Above elevation 80 the dam will be built of imper- vious material to a few feet above the water level, and the higher portions will be made of whatever materials may be most convenient, it being expected that spoil from the Culebra Cut will be used to a great extent. EN^ORMOUS WEIGHT' OF THE DAM. A dam such as the one proposed is enormously heavy, the weight upon its foundation being about one ton per square foot for each 20 feet in height of embankment. Under the highest part of the em- bankment the pressure would be six and one-half ton3 per square foot. It is believed that this dam will be earthquake proof. It is designed to be very much stronger than the greatest existing earth dams in the world, those of San Leandro and Pilarcitos, con- nected respectively with the waterworks systems of Oakland and San Francisco. The total leng-th of the dam from the locks to the westerly end is 1,700 feet. About midway in its length is rising ground through which it is proposed to excavate a diversion channel to carry the Chagres 222 PANAMA. during the construction of the dam. The regulating works, which will be described hereafter, are to be located on each side of the diversion channel and partly within it. On either flank of the rising ground to which reference has been made, and ex- tending from it westerly to the high ground and easterly to the locks at the back of Gatun, there will be great earth embankments of the cross section al- ready described, which will together contain 21,200,- 000 cubic yards of material. The westerly embank- ment will cross a French diversion channel. The easterly embankment will cross the French canal and the Chagres. The regulating works are thus designed. The cen- tral 150 feet of their length, which will be built from the bottom of the diversion channel, is to be a solid mass of concrete, having its crest at elevation 69. On the top of the crest, piers eight feet in thick- ness, grooved for Stoney sluice gates, are to be built, 38 feet from centre to centre, having clear openings of 30 feet. The gates, as proposed, are almost exact counterparts of the gates provided for controlling the flow from the lower end of the Chicago Drainage Canal. For the whole length of the regulating works the design is the same as for the central portion, ex- cept that the concrete rests upon the surface of the rock or upon excavations made in the rock. The water passing through the central sluices will flow directly out through the diversion channel to the ADVANTAGES OF DAM. 223 Chagres. The regulating works are capable of dis- charging 140,000 cubic feet per second when the water of the lake is no more than one foot above the normal level. Despite the great quantity of material to be placed in the Gatun dam, the report shows that a large saving will be effected by the structure. The project of the Commission included a dam at Bohio, a spill- way, an outlet from tlie Pena Blanca swamp, diver- sion channels for the Chagres and Gatun rivers, and a stretch of canal between Gatun and Bohio. All these works, which were estimated to cost $23,640,- 221, are avoided by the scheme of the Gatun dam, and its construction, together with a necessary diversion of the Panama Railroad, will be effected with an ex- penditure of less than $12,000,000. The calcula- tion takes no account of locks, however. The Com- mission's plan provided for only two locks at Bohio, of comparatively small size. The requirement of the Spooner Act makes it necessary to provide locks of greater dimensions and the minority members of the Board deem it advisable to make the ascent to the 8 5 -foot summit level with three flights. These will cost more than the two proposed for the Bohio dam. THE AI>VAJSrT'AGES OF THE GATUN DAM. " The adoption of Gatun as a site for a dam not only provides for reduced cost and a better lock site, 224 PANAMA. but, as compared with Bohio, it affords several advan- tages. The first of these is a large addition to the^ drainage area tributarj to the summit level and to the amount of water available for canal uses, which is of special value during dry seasons ; the second is the great increase in the reservoir area. Lake Gatun having three times the area of a lake formed by a dam at Bohio ; this permits storing water for the dry season and the reception of floods with a maximum variation of lake level of ouly about one-half of that taken by the first Isthmian Canal Commission for Lake Bohio. A third advantage is the extension of lake navigation nine and one-half miles toward the Atlantic from Bohio; a fourth is that the Chagres and all its important tributaries will be received into the lake at points so distant from the canal route that no deposit of suspended matter will occur along it, and a fifth is that the water discharged from the lake will enter the Chagres at the point where it finally diverges from the canal so that no diversion chan- nels or heavy protecting embankments will be re- quired along the canal line." IMPORTANT MATTER OF "WATER SUPPLY. The highly important subject of water supply has been treated by General Henry L. Abbot in a paper which forms an appendix to the report. Re- corded measurements of flow covering a period of WATER SUPPLY. 225 fifteen years give 1,250 feet per second dnring the three driest months. In order to make their calcn- lation entirely safe the minority has accepted 80 per cent of this volume as a basis. The lake can, towards the end of the wet season, be safely raised one foot above the normal level and provision has been made in the plans for drawing the water three feet below this mark. Therefore the equivalent of four feet of depth in the lake, or 12,270,000,000 cubic feet, will be available for water supply purposes in the dry season. This quantity will furnish a steady flow of 1,577 cubic feet per second for ninety days, making the total quantity of water after adding the inflow, 2,577 cubic feet per second. After allowing for evaporation, infiltration, power for operating gates and for lighting, etc., there remains 1,350 cubic feet per second available for lockage. " To determine the number of lockages which this quantity of water will provide for, the following pro- visions and assumptions have been made : " Intermediate gates are to be provided for the locks at Pedro Miguel and Sosa, so as to give a chamber length of 600 feet,* and it is assumed that the intermediate gates will be used for eight-tenths of the lockages, ... It is further assumed that all ships passing in one direction will use one set of locks and all ships passing in the other another set. The full length of lockf? is 900 feet clear. 15 226 PANAMA. On this assumption the same quantity of water is used whether a ship passes through a single lock or through two or three in flight. The lift to the nor- mal level at Pedro Miguel is 30 feet and at Gatun 28.50 feet per lock. The quantity oi water required per lockage at Pedro Miguel, on the assumption that intermediate gates will be used eight-tenths of the time, is 22.13 cubic feet per second, and the quan- tity per lockage at Gatun 29.77 cubic feet per second, making a total of 51.90 cubic feet per second. The net available quantity of water is, as already stated, 1,350 cubic feet per second, and will therefore pro- vide for 26 lockages per day at each lock in the driest season." When the time comes that a greater number of daily lockages must be provided for there will be no difficulty about compassing the requirement. The Alhajuela dam and reservoir as proposed by the Comite Technique, will supply enough water for at least 27 additional lockages per day. In order to ascertain the amount of tonnage that may be accommodated by the canal as planned, with- out the contingent Alhajuela addition, the traffic of the Suez Canal has been taken as a basis. The size of the vessels passing through that waterway has fiteadily increased during the past decade: in 1894 they averaged 2,398, and ten years later 3,163. The system of measuring tonnage at the canal, however, gives figures about one-sixth in excess of Lloyd's THE SUMMIT-LEVEL. 227 net register. It seems propable that when the traffic at the Isthmus requires 26 lockages per day, in view of the growth in the size of ships and of the fact that two ships of ordinary size can pass through a lock at the same time, the amount of tonnage per lock will be as much as 5,000. On this assumption the canal, as planned by the minority, will accommodate up- wards of 47,000,000 tons without the Alhajuela reser- voir and twice as much with the aid of its water supply. THE SUMMIT LEVEL. Three flights of locks at Gatun will give access to the summit level. These locks will be in duplicate, thereby admitting of the temporary disuse of one flight on account of accident or repairs without seri- ous impediment to traffic. The dimensions of locks throughout the canal will be length clear, 900 feet; usable width, 95 feet; depth over the miter sill, 40 feet. Of the total length of the lake — 30 miles — 23 miles will be included in the line of the canal. At Gatun, and as far thence as Bohio, the depth will be 75 feet or thereabouts, gradually reducing until at Obispo it will be 45 feet. For a distance of nearly sixteen miles from the Gatun locks the deep portion of the lake will have a width generally exceeding half a mile and, with only a small amount of exca- 228 PANAMA. vation, a channel may be provided having a width nowhere less than 1,000 feet at the bottom and with a minimum depth of 45 feet. .Farther up the lake, as the amount of excavation needed to secure a sim- ilar depth increases, the channel will narrow, first to 800 feet for a distance of almost four miles, from San Pablo to Juan Grande, then for about the same distance to 500 feet until Obispo is reached. Foi one and a half miles, from Obispo to Las Cascadas, the width of the channel at bottom will be 300 feet and through the remaining distance of the Culebra Cut it will be 200 feet. Thus the 23-mile stretch from Gatun to the entrance of the great cut will be through a channel nowhere less than 500 feet wide. This broad waterway will actually furnish lake navi- gation very similar to that of the chain of small lakes that connects Lake Superior with Lake Huron, and which is styled St. Mary's River. This channel, from 300 to 600 feet in width, is traversed monthly by a tonnage approximating 3,500,000, at a speed Avhich is limited by regulation to nine miles an hour only on account of the density of the trafl&c. The projected canal is designed to follow straight lines in the main. Where changes of direction oc- cur, the outer channel lines of adjacent courses are to be carried to an intersection, which may be done with little additional excavation ; the point of the inner angle will be dredged ojff so that a curve of 8,000 feet or more radius can be laid down wholly LAKE SOSA. 229 witliin the channel limits. All the changes of direc- tion in the stretch above described will be in a chan- nel at least 600 feet broad above the turn and 300 feet below it. Following the 200-foot channel through the deep portion of the Culebra Cut will come a stretch of close on two miles, with a width of 300 feet, to the locks at Pedro Miguel, where the summit level ter- minates. The duplicate locks at this point will have one lift of 31 feet. LAKE SOSA. On the farther side of the Pedro Miguel locks will be formed an artificial lake by the construction of three dams. This lake will have an area of about eight square miles and will extend from Pedro Mi- guel to Sosa Hill where duplicate flights of two locks each will be placed. The channel through Lake Sosa will be 500 feet wide for a distance of more than a mile and a half from the Pedro Miguel locks ; it will then open out to 1,000 feet or more for the remainder of the^distance. The principal dam is the one at La Boca which extends from the locks at Sosa Hill across the mouth of the Rio Grande to San Juan Hill. The other dams extend from Sosa Hill to Ancon Hill and from Ancon Hill in the direction of Corozal to high land across the Panama Railroad. Tn order to provide 230 PANAMA. for the discliarge of the Rio Grande and other rivers entering the lake during the construction of the earth dams, a diversion channel about 50 feet wide is t6 be cut through the slope of Sosa Hill, near the end of the Ancon-Soea dam, and sluices or regulating works, similar to those designed for the Gatun dam, but of much less extent, are to be subsequently built in the channel. EARLY SITGGESTIONS ADOPTED. The idea of building dams at, or near, the ends of the canal and forming artificial lakes is not a new one; in fact it was amongst the very earliest sugges- tions made in connection with the canal enterprise. It was presented by Mr. Kliet>z to the International Congress of Engineers at Paris in 1879, but that body decided in favor of a sea-level waterway. The Gatun dam was suggested in a discussion of inter- oceanic canal projects by Mr. Ashbel Welch in 1880, before the American Society of Civil Engineers. Both the Gatun and Pacific dam projects were ad- vanced in a paper read before that society by Mr. C. D. Ward in 1904, and were included by Mr. Lin- don Bates in the plan submitted by him to the Con- sulting Board of Engineers. The advantages of the terminal lake on the Pacific side are a saving of about $8,000,000 in the cost of the canal and greatly improved navigation secured ESTIMATES OF LOCK CANAL 231 by the introduction of more than five miles of chan- nel not less than 500 feet wide and 45 feet deep. It also dispenses with the sea-level cut from La Boca, to Miraflores which involved several objectionable features. From the Sosa lock to the seven-fathom curve in Panama Bay the distance is four miles. The chan- nel along this stretch will be 300 feet wide and 45 feet deep below mean tide. These are the dimen- sions adopted by the Board for the sea-level project, and whilst accepting them, the minority take occasion to express their opinion, that they might be increased in both respects with advantage to navigation. As, however, frequent dredging will be necessary to the maintenance of this channel, it is more than probable that it will become gradually enlarged. Only about one-seventh of the entire channel, ac- cording to this project, having a length of 49.72 miles, is less than 300 feet in width, while more than two-thirds of it is 500 feet wide or over. The estimated cost of the canal to be built in accordance with this plan is " in round numbers," $140,000,000. The estimated time required for the completion of the minority project is calculated upon much the same bases as those employed by the Board in making its time estimate, but the minority expresses the opinion that the allowance of their confreres for the completion of the Culebra Cut to 40 feet below sea level is much too low and that it should be not less 232 PANAMA. than fifteen years. Upon the assumption that it will require fifteen years to excavate the 110,000,000 cubic yards involved in the sea-level project, it is de- cided that the " time required for the lock canal with summit level at elevation 85, which requires the excavation of 53,800,000 cubic yards from the cen- tral mass, would be about seven and one-half years, a conclusion which is verified by a study of conditions in the heaviest portion; but before accepting this period as the time required to build the canal, con- sideration must be given to the question of time re- quired to build the locks." THE GATUN LOCKS. Under the minority plan the greatest amount of lock construction will be needed at Gatun. The amount of excavation for this lock, embracing a dis- tance of 3,136 linear feet, measured along the canal axis, will be 3,600,000 cubic yards, and the average width of the excavation will not differ greatly from the average width of the Culebra Cut in the heaviest section. Applying the standard of measurement that has been accepted for the latter operation, the Gatun excavation should be completed in four years. This is a conservative estimate, for, whilst the material at Gatun is at least as easy to excavate as that of Cule- bra, the general conditions at the former point are much more favorable to expedition, GATUN LOCKS. 233 The enormous amount of concrete masoniy re- quired for the Gatun locks — 1,300,000 cubic yards — is unparalleled in the building operations of mod- ern times. If the plant and materials are deposited and arranged upon tbe ground whilst the preliminary work of excavation is in progress, rapidity of con- struction will be greatly facilitated. Judging from the experience in similar work on a much smaller scale and with fewer facilities, the report concludes that 8,000 cubic yards per day might be attained at Gatun. This calculation contemplates the simultane- ous employment of 20 mixing plants distributed along the 9,000 linear feet of the main walls of the locks. The final estimate of time required for this work is, however, based, for the sake of conservatism, on a daily output of only 2,500 cubic yards. At this rate the entire concrete would be placed in two and a quarter years. The materials consumed in this daily output would amount to 4,000 tons. This quantity, large as it is, does not exceed one-fifteenth of the weight of the material to be daily removed from the Culebra Cut, and its transportation should not create any great difficulty. The only remaining work of magnitude connected with the installation of the locks is the erection of the gates, of which fourteen pairs will be required for the duplicate flights. Making a very conservative estimate, based upon the experience at the Poe lock in the St. Mary's Canal, where the climatic conditions and the facili- 234 PANAMA. ties were inferior, the report allows one year for this portion of the task. The periods included in the preceding estimates aggregate about seven and one-half years, which is a shorter time than that calculated for the excavation of the Culebra Cut ; but this lock calculation is made on the assumption that each of the three stages of the operation under consideration would be entered upon at the termination of that preceding, whereas they would in fact overlap and to a considerable extent be carried on simultaneously, thus effecting a con- siderable reduction in the total expenditure of time. The locks at Pedro Miguel and those at Sosa are of less magnitude than the structures at Gatun and would occupy a shorter time in erection. There is no other single work which will entail anything like the time needed for the cut through the divide. Making ample allowance for possible delays, the minority members of the Board feel assured that the canal as projected by them may be completed in all its details within nine years from the time that opera- tions are commenced. DIFFEEENCES OP OPIIiflOlSr AS TO TYPE OF CAITAL. There has been much diversity of opinion amongst experts on the subject of the type of canal. The pre- ponderance of public sentiment is in favor of the so- called " sea-level " waterway, but it is generally based WEIGHT OF OPINION. 235 upon a misconception. The idea that the sea-level canal recommended by the Board would be a wide channel that could be freely navigated by ocean ves- sels at comparatively high speed is altogetlier errone- ous. There is unanimous agreement amongst engin- eers that the ideal waterway would be one of the dimensions of straits, which might receive the waters of the Chagres and be subjected to the full action of the Pacific tide without serious impediment to traf- fic. Such a waterway is, however, entirely infeasible. Its completion would occupy fifty or more years and its cost would not be less than $500,000,000. In the sea-level canal contemplated by the majority of the Board, one-half of the distance the bottom width of the channel is only 150 feet and for about the same distance it is 200 feet. These lateral dimensions with a depth of about 40 feet are considered the greatest economically permissible. The question at issue is the choice between such a canal and one at a high level with locks. The weight of expert opinion is decidedly in favor of a lock canal. The Panama Canal Company was forced to abandon its sea-level project and the con- clusions of the Comite Technique support the lock plan, but, since the French companies were influ- enced by restrictive conditions from which the American Government is free, we may leave their ex- perience out of consideration. The first Walker Com- mission favored a lock canal, although its chief en- 236 PANAMA. gineer, Mr. Wallace, entertained a belief that the sea-level construction would be preferable. With one exception, the present Commission supports the rec- ommendation of the five American members who made up the minority of the Consulting Board of Engineers. The President, Secretary Taft and Chief Engineer Stevens have lined themselves upon the same side and the weight of expert opinion, in this country at least, is, without doubt, similarly disposed. THE BOARD DEPRECIATED THE " SOO ''CANAL. In reaching their decision, the majority of the Board failed to give to the experience of the Sault Ste. Marie Canal the degree of consideration which, in the opinion of American authorities, it should have excited. Nevertheless, the St. Mary Canal is, measured by traffic, the most important ship canal in the world. Although navigation through it is sus- pended during the winter months, the annual tonnage it accommodates is in excess of the combined tonnage of the Suez, Manchester, Kiel and Amsterdam canals and the Poe lock alone has three times the traffic of the Suez Canal during the season of navigation. The difficulties and extent of construction would be much greater in the case of the sea-level canal than in that of the high level. Aside from the much greater excavation which would be for the most part in hard CAPACITIES OF CANALS. 237 rock, a large dam at Gamboa Is provided for and tunnels and diversion channels to accommodate the superfluous waters of various streams. The plan of the lock canal is based on well-understood and tested conditions, whilst it is quite possible that unforeseen problems and difficulties might arise in the construc- tion of a waterway at sea level. In other words, one form of canal involves less hazard than the other. In the matter of permanency the project of the minority has a decided advantage. The high-level waterway may be deepened* and enlarged and its locks replaced by others of larger dimensions, at com- paratively small cost and without serious obstruction to traffic, but increase in the size of the channel at sea level could only be effected at great cost, together with interruption to navigation. In the comparison of capacity the difference be- tween the forms of canal under consideration is par- ticularly marked. Vessels of the largest size could not pass each other in the narrower waterway and there are two ships at present on the stocks whose load draft would bring their keels to within two feet of its bottom. It is doubted whether the largest type of ships could safely traverse the sea-level canal un- der their own steam and it is certain that they could * Increased depth in Lakes Gatun and Sosa could be effected by the simple process of elevating the dams and spillways and admitting a larger volume of water, of which the supply is practically unlimited. 23S PANAMA. not exceed a speed of four miles an hour, whilst twice that rate would be quite practicable in the lakes form- ing the greater part of the lock canal. This advan- tage would more than compensate for the loss of time entailed in locking and would permit large vessels to make the transit by the high-level route in the shorter time. On the other hand, ships of smaller types would make the passage through the canal at sea level with about half an hour's saving in time. The majority of the Board seem to have entertained fears of the safety of the locks which the American authorities, whose experience in this respect is un- equalled, consider unwarranted. The latter express the utmost confidence in the locks and declare that the danger of blocking is much greater in the case of the narrow waterway than in that of the other. It is admitted by the advocates of the lock project that the mechanical structures in a canal of that type would be easily damaged or destroyed by an enemy, but they deem the commercial advantages paramount to military considerations. In regard to time and cost of construction, the high-level canal has altogether the better of the argu- ment, and especially so since the Commission seems to have demonstrated that the sea-level canal cannot be completed at a smaller outlay than $272,000,000 and in less time than eighteen or twenty years. In passing the Spooner Act, Congress had in mind a canal such as was planned by the Walker Commis- EARTHQUAKE SCARE. 239 sion: that recommended by the Administration and the present Commission conforms to the former in the essential features and departs from it only in the direction of improvements. 'No further Congres- sional action is necessary in order to proceed on these lines, but new legislation, including an increased appropriation, would be needed for the prosecution of the sea-level project. Note. — Almost at the moment of going to press, it is learned that the Senate Committee on Interoceanic Canals has, by a majority of one, decided to report in favor of the so-called " sea-level " canal. This decision is believed to be attributable to nervous apprehension, excited by the recent San Francisco disaster. Inadequate as is that reason, it appears to be the only one assignable to the surprising course of the Committee. That the weight of expert opinion is preponderatingly in favor of the lock, or high-level plan, is indisputable. Prudence, pub- lic policy, and the interests of the tax-payer point in the same direction. There are hazards involved in both projects, but by far the greater proportion attach to the sea-level undertaking. As to the earthquake risk, a shock that would seriously injure the lock canal as planned might be expected to work equal, or greater injury to the sea-level channel, and such a shock is not within the recorded experience of the Panama region. The sea-level plan includes dams, levees, and locks, connected with a waterway so restricted in dimensions, that any disturb- ance of its normal conditions could not fail to subject traffic to grave inconvenience and danger. In this connection it should be noted that the earth dams at San Francisco and Oakland, which are much less strong and massive than that proposed for Gatun, appear to have survived the recent con- vulsion on the Pacific Coast without damage. PANAMA. VARIOUS ASPECTS OF THE CANAL. The Healfn Problem — The Opinions of a Medical Expert — The Sanitary Campaign — Conservative Views of Colonel Gorgas — The Labor Question — Many Lands Will be Drawn Upon for Labor — Poor Quality of Labor is one oi the Chief Drawbacks — Expensive Character of Low-grade Labor — The Canal and the Commerce of America — Effect of the Canal on the Commerce of the South — Great Bene- fits to Our Pacific States — A Boon to the Northeastern Territory — Our Advantage Over Foreign Competitors — Political and Military Aspects — Difficulty of Guarding the Canal. No material work of man since tlie creation of the world lias had so deep and widespread influence upon the affairs of mankind in general as that which may calculablj be expected to ensue from the establish- ment of the Panama Canal. The results will be seen in commercial, political, social, and even religious, effects. It will make and mar the fortunes of na- tions. Cousin, the Trench philosopher, has said: " Tell me the geography of a country and I will tell you its destiny." By creating important modifica- tions in the geographical relations of certain com- munities the Canal will be the means of bringing 240 THE HEALTH PROBLEM. 241 about great and lasting changes which are beyond the range of accurate forethought. The subject is a vastly interesting one that would afford ready mate- rial for a volume of speculative studies, but our present purpose will only permit a limited considera- tion of a few of the most obvious conditions con- nected with the construction and future operation of the prodigious waterway. THE HEALTH PROBLEM. The question of sanitation, closely allied as it is to that of labor, has always been an important factor in operations conducted upon the Isthmus of Pan- ama, but fortunately, with the advance of time, the difficulties presented by it have become ever more susceptible to scientific treatment. The Panama Eailroad was built at an appalling sacrifice of life. At that time a blind contest was waged with disease, but no serious effort was made to mitigate the con- ditions that produced it. The French companies adopted some preventive measures and their pro- vision for the care of tlie sick was admirable, but it remained for American administration to attack the problem in the determined and radical manner that promises to minimize effects by reducing causes. The observation and expeHence of medical scien- tists in recent years has led to the conclusion that the dangers to health and the difficulties of sanita- 16 242 PANAMA. tion in Panama have been very much exaggerated. It is believed that the climate is not nearly so harm- ful, even to white men, as has generally been sup- posed. Due allowance has not been made hitherto for the indulgent habits of most of the French em- ployees of the canal company, nor for the poor phy- sique of a large majority of the laborers engaged by it. Furthermore the physical conditions of the scene of operations have undergone great changes since the inception of the work and we are now past the stage of surface disturbance, when deadly emanations were constantly released by the excavations. Several ac- tive factors of a favorable character enter into the present calculations of the sanitary department. The cities of Panama and Colon are being rapidly placed in possession of good and adequate water and sewer- age systems and strict quarantine regulations are en- forced. Certain unsanitary practices of the inhabit- ants of the Canal Zone and the cities in question have been abated and will be abolished. Add to all this the war on the infectious mosquito and we have conditions that ensure a vast improvement in the general health of the Isthmus. Still it is not ex- pected that the utmost results hoped for will enable white men in general to perform manual labor at Panama any more than they may in other tropical regions. The object sought, and which will surely be attained, is to eliminate all unnecessary inimical conditions and limit the difficulty of residence on the A MEDICAL OPINION. 243 Isthmus to mere resistance to a tropical climate of not extraordinary severity. THE OPINIONS OF A MEMCAL EXPERT. In tliis connection we can not do better than quote Doctor Lacroisade, who resided on the Isthmus in an official medical capacity from 1887 until recently: " Among the diseases attributed to the climate the most numerous are simple marsh fevers, which have not occasioned a single death. Two diseases only belonging ,to the epidemic type have appeared — the beriberi, of which there is no longer any question,* and yellow fever. The latter, after having been ab- sent from the Isthmus for at least six years, was im- ported in 189Y, and continued about six months, from March to August, when it again disappeared after very slight ravages (only six deaths). Thus it can not be considered that this pest is really epidemic on the Isthmus. From the other infectious epi- demics, such as variola, typhoid fever, diphtheria, etc., the Isthmus appears to be almost entirely ex- empt. From the foregoing we may conclude that life on the Isthmus scarcely incurs more dangers than * The disease, which had probably never before been known in the region, was introduced with an experimental importation of negroes from Africa, and disappeared when they were re- turned to their homes, but it has recurred. There were no fewer than thirty-two cases in the Aneon Hospital during October, 1905. 244 PANAMA. elsewhere, even for Europeans, who, after the blacks of the British Antilles, appear to resist the climate best. Residence here would, then, offer nothing alarming, were it not for a constant feeling of fatigue and uneasiness due to a temperature always high, and an atmosphere saturated with moisture." In thus advancing arguments against the exaggerated notions prevalent regarding the climate and sanita- tion of the Isthmus there is no thought of detracting from the splendid work which the medical officers are performing imder the Commission. The object is to show that with their aid the canal operations may be, and doubtless will be, completed without an at- tendant heavy mortality. The Walker Commission was .accompanied on its first visit to the Isthmus in March, 1904, by three eminent physicians, who had achieved wide distinction by their sanitary work in Cuba. They were Colonel Gorgas and Major La Garde of the United States Army and Captain Eoss of the IsTavy. The sanitary work of the Isthmus was entrusted to these officers, but they occupied dis- tinctly subordinate positions and had no voice in the Commission nor, it is believed, the degree of inde- pendent authority in their particular sphere of labor with which they should have been invested. Amongst the charges of inefficiency that were brought against the former Commission was that of failure to give sufficient consideration to the immediate demands of sanitation. It was generally understood that the •AN EARLY MISTAKE. 245 medical staff felt dissatisfied with conditions on the Isthmus in so far as thej related to the departments of health, but it is much to the credit of those officers that thej made no public complaint and pursued their efforts with unimpaired zeal whilst conscious that the arrangements were far from the best possible. Perhaps the Walker Commission may be excused for devoting its immediate and closest attention to excavation when we remember the unreasonable im- patience of the press and the people to see " the dirt fly." One of the members of the former Commis- sion has declared that it was fully appreciative of the wisdom of the policy since adopted and at pres- ent in force, and the presumption is that in following a different course Admiral Walker and his associates were impelled by a desire to have " something to show " as soon as possible. One of the first important decisions of the Execu- tive Committee of the Shonts Commission was to stop the work of excavation and to direct the labors of the entire force upon sanitary improvements. This policy is based upon a conviction that after the region has been cleansed and subjected to pre- ventive measures and when proper provision has been made for lodging and feeding the laborers and em- ployees the construction will progress with gTeater speed and fewer casualties than if it were to be pushed ahead without such preliminary work. Aside from the permanent improvements at the 246 PANAMA. terminal ports the most important element in the task of sanitation is that of destroying or rendering in- nocuous the mosquitoes, through whose agency ma- laria and yellow fever are propagated. A similar problem was presented to Colonel Gorgas and his associates in Havana. The methods followed there, with necessary modifications, will be adopted in Pan- ama. THE. SANITAHY CAMPAIGIf. The plan is simple but entails a vast amount of labor. It is thoroughly established that the anopheles becomes infected by biting a sufferer from malaria. The first step, then, is to bring under im- mediate supervision, as nearly as possible, all the malarial subjects within the Zone, and to carefully isolate them within screens until tlie malarial para- site has been eliminated from their blood. Mean- while a vigorous campaign is in progress against tbe insect carrier. Long grass and rank vegetation is cut down all along the line, pools are swept out and sprinkled with oil, dwellings are cleansed, and, in short, every effort is made to destroy the pest. Ee- ferring to the result experienced from similar action in Havana, Colonel Gorgas says : " At the end of about eight months of this work it was found that the number of yellow-fever mosquitoes had been greatly decreased, and those that were left could find no human being infected with yellow fever, whereby VIEWS OF COLONEL GORGAS. 247 thej, the yellow-fever mosquitoes, might become in- fected, and thus convey it to other human beings. For the past three years Havana has been free from yellow fever. An unacclimated man can go to Ha- vana now, and though he may probably be bitten a good many times by yellow-fever mosquitoes these mosquitoes have had no opportunity in the past three years of biting a human being infected with yellow fever, and therefore are themselves entirely harm- less. This condition we hope to bring about in the villages along the canal route by means similar to those adopted in Havana." CONSEKVATIVE VIEWS OF COLONEiL GOEGAS. We will close this discussion of the health prob- lem with a further quotation from Colonel Gorgas, in which it will be seen that his ideas conform very closely to those expressed by Doctor Lacroisade: " The Panama strip is now about as healthy as the ordinary tropical country. The death rate is a great deal higher than that in ISTew York, but this would be the cast almost anywhere in the tropics. About twenty people per thousand in New York die every year and about fifty per thousand at Panama. The general idea about Panama seems to be that we shall suffer as the French did and as all former European venturers into Panama did, and that instead of dy- ing as we do in 'New York at the rate of twenty per 248 PANAMA. thousand per year, we shall die, as sometimes oc- curred to the French and others at Panama, at the rate of five or six hundred per thousand a year. Other men of experience in the tropics and who have been at Panama for some time, maintain that the matter of sanitation is exceedingly simple and easy, and that the health of the Panama strip ought to be as good as that of most parts of the United States. Both opinions, it seems to me, are extreme, and the truth will fall somewhere between the two. Any health ofiicer with experience in dealing with a prac- tical question of this kind will know how exceed- ingly difficult it will be in a population of about fif- teen thousand t people infected with malaria to de- vise and apply any system by which the cases can be individually recorded and treated. Personally I ap- proach the problem with hope and the expectation of having approximately the same success that rewarded similar efforts applied by our military authorities in Cuba. But it is no simple matter. We shall no doubt meet with many disappointments and discour- agements, and shall succeed in the end only after many modifications of our plans and after many local failures." * f This refers to the population of the villages along the line of the canal. * It may be added that this was written about twelve months ago and that at the present time a great degree of success 18 within sight. THE LABOR QUESTION. 24» Eacli of the enterprises that preceded the Ameri- can occupation of the canal territory found the diffi- culty in securing satisfactory labor one of the great- est deterrents to success. THE LABOR QUESTION". The experiences of the railroad and French com- panies embraced the enployment of almost every available form of labor and seemed to point to the conclusion that^ all things considered, the West In- dian negro is the best adapted to the work. The French did the greater and most satisfactory portion of their work with Jamaican field hands and the ma- jority of laborers at present upon the pay-rolls of the Commission are of the same class, but it is question- able whether the enlarged demand which will present- ly exist can be satisfied from the same source. Secre- tary Taft has already expressed his misgivings on this score. In the early part of the year 1905 he reported to the President the result of a visit to Jamaica undertaken for the purpose of sounding the local authorities on the subject. " The governor of Jamaica," the Secretary states, " was unwilling to consent to our taking 10,000 laborers from the is- lands unless we deposited five pounds sterling per la- borer with the island government to meet the bur- den which his leaving the island would probably throw upon his parish under the poor law of the 250 PANAMA. island for the support of those dependent upon him. He also insisted that we should agree to pay the expenses of the return of each laborer whether he was satisfactory or not and whether he abandoned the work in violation of his contract or not." Such terms are of course completely beyond the question of acceptance, but there is a strong probability that a large number of laborers will go to the Isthmus from Jamaica of their own initiative. There are two regular lines between Kingston and Colon which carry passengers from one port to the other for five dollars a head. Of course there is a great induce- ment in the fact that the wages offered on the Isth- mus are twice as much as those paid in Jamaica. MANY LANDS WILL BE DRAWN UPON FOE LABOR. The Jamaican negroes like the service and the extremely good treatment they receive. A very large proportion of those who enter the employ of the Commission remain in it. There is, however, a ten- dency among them to take a holiday whenever their accumulated savings will permit, and so there is a constant flow of laborers to and fro between Jamaica and the Isthmus. The Commission has hope that natives of the north of Spain will prove more satis- factory than any laborers heretofore employed and it is believed that they can be secured in large numbers. The governor of Porto Rico has expressed his opinion THE CHINESE LABORER. 251 that the agricultural laborers of the island may be satisfactorily employed on the canal works, and it is the intention of the Commission to try a selected number. At the same time a test will be made of one thousand Chinamen and the same number of Japanese contract laborers. Not a great deal should be expected from the Porto Ricans probably, but if exemption of the Canal Zone from the operation of the Chinese exclusion law is effected a large propor- tion of the permanent working force will in all like- lihood be drawn from China. There is no good ground for hope that Japan will furnish, any con- siderable number of the laborers required. The Japanese are not capable of great exertion in a trop- ical temperature. The climate of Formosa, which is not nearly so trying as that of Panama, overtaxes their powers of endurance. Furthermore, several years must elapse before Japan can spare any consid- erable number of laborers from her own neglected fields. Aside from the mere matter of digging, Chinese are likely to be very desirable employees in the future. The construction of a multi-lock canal will involve a great deal of cement and other work closely approaching to expert labor, and requiring for its proper accomplishment a degree of intelligence on the part of the workman, which, in the absence of white labor, may only be looked for in the Chinaman. The real difficulty of the labor situation pertains less to quantity than it does to quality. Probably the 252 PANAMA. Commission will eventually be able to secure as many men as it desires from one source and anotlier, but unless the standard of efficiency which has hitherto obtained in the " silver " force of the operation is en- hanced the labor problem will continue to be a serious one. THE POOE QUALITY OF LABOR IS ONE OF THE CHIEF DEAWBACKS. It is the general agreement of those who are in position to judge from experience, that the efiiciency of the common laborer on the canal is not in excess of 33 per cent measured by the American standard. In this connection Mr. Stevens says : " On the basis of the present rates of pay for West Indian colored labor, which is the lowest grade of labor, we are pay- ing 20 cents silver per hour, and on the 8-hour basis, to which we are confined by law,* it is $1.60 silver per day, or 80 cents gold. The relative efficiency of this labor as compared to ours at home is about three to one. In other words, we are paying to-day for this labor $2.40 in gold, or $4.80 in silver. Close inspection of the different gangs, which extended over at least five months, demonstrates very clearly that the average superintendent or foreman, either white from the N^orthem States, or colored from Jamaica ■" This hampering restriction was recently removed by act ol Congress. LOW GRADE LABOR COSTLY 253 and the other West Indian islands, has never been able to work continuously more than 50 per cent nu- merically of the different gangs. . . . Instead of obtaining a fairly continuous amount of labor, as we do from gangs here at home, one-half of the eflBciency of this colored labor is lost, owing to their deliberate, unceasing, and continuous effort to do as little work as possible. In other words, instead of our colored labor costing us $2.40 per day, the real situation is that we are paying twice $2.40 gold per day, or al- most $5 for eight hours labor." EXPElSrSIVE CHARACTER OF LOW-GRADE LABOR. N^or is the item of wages by any means a full meas- ure of the excessive expense entailed upon us by the necessity of employing low-grade labor. ISTot only are we paying for this 300 per cent of its true value judged by our standard, but the employment of it entails upon us in incidental expenses, connected with housing, feeding, hospital treatment, supervision, etc., probably three times as much as would be expended upon one-third the number of men. To put the statement in another form : White la- bor, if it were practicable, would do the work upon the canal at a wage of $2.50, gold, per day. We pay for colored labor of 30 per cent efficiency, 80 cents per day, which would make the rate practically the same but for the fact that the colored laborer 254 PANAMA. works on an average only half the time for which he draws pay. Hence our colored labor costs in wages twice as much as would white labor. But since it is necessary t.o employ three times as many of the former as of the latter to perform a certain amount of work, our incidental expenses, which may be reck- oned on a per capita basis, are probably three times as great in one case as they would be in the other. The West Indian laborer entertains the idea, not without good reason, that he is indispensable to the progress of the operation and the only prospect of getting good work from him depends upon creating competition by the introduction of Chinamen or some equally efficient laborers. THE OANAL AND THE COMMERCE OP AMEiEICA. The establishment of a waterway between the two great oceans of the globe will more widely affect the commerce of the v/orld than any single work or event . in its history. y President Hayes, in 1879, declared I that " an interoceanic canal across the American Isth- I mus will essentially change tlie geographic relations \ between the Atlantic and Pacific coasts of the United I States and between the United States and the rest lof J^ie^ world.''^j^^ Panama route will effect much greater economies of time and distance than those that are at present secured by the use of the Suez Canal. Colquhoun, in his " Key to the Pacific," says : CANAL'S EFFECT ON COZ^OHERCE. 255 " It will bind together the remote sections of that immense country, assimilate its diverse interests, go far towards solving many difficult problems, and make the United States still more united. . . . ISTo greater impulse to commerce can be given than this complement to the Suez Cana l.> It w ill bene fit A mer- ica in an infinitely greater degTee than Europe. . \,Ji-t Will give an immense impetus to United T States/manufactures, ; especially cotton and iron, and wi'Tl greatly stimulate the shipbuilding industry \ and tlic naval power of the United States." ./ AVhilst the opening of the Panama Canal must prove an universal boon it will doubtless work to the detriment of some countries and certain industries, at least until after adjustment of the new trade rela- tions. America will always be the greatest benefici- ary of the advantages accruing from the use of the waterway and we will briefly consider a few of the conditions that may most surely be calculated upon to follow the completion of the enterprise to which so large an amount of American energy, intellect and capital is devoted. EFFECT OF THE CANAI. ON THE COMMEE.CE OF THE SOUTH. o region in the United StafPfi Tni^Y,.hfi,.fiy;Taect-p'^ ^" '^^JSa.S; feeLjJifiuinimcdiate bonefit of the new route to the same extent as the Southern States and the vast HCli^-K^. lS*!«S 256 PANAMA. lej of the ]VIississipgi.,|^Xi^_.latter territory, the rich- est in all the world, one and a quarter million square i niiles in extenC"Tntersected by five thousand miles \ of navigable waterway, with prolific soil and ener ffetic people, will find new markets and a new outlet |,JorJJg^Xar.ied,4)rpducts no longer dependent ujppn ex- I pensive railway transportation. Chicago is nearly the same distance from New Orlealns as from New York, but St. Paul, Omaha, Dubuque, Evansville and Denver are nearer to the former point than to the latter. It is quite probable that the present gen- eration will see ocean steamships coming down from Duluth, through the Great Lakes, an inland canal, and the Mississippi River, to the Gulf of Mexico, and passing on to Pacific and Asian ports. I \/The opening of the new gateway to the Pacific will give - a tremendous inipetus to the industries of the South,' Its raw cotton, which for a decade has been, ^. •■ making small gains, under difficult competition witl^ the British East Indies and China, in the Japanese .... ..... . ■-'ffiS^ ' market, will he relieved of an onerous handicap, Th||^g product of its mills, a coarse fabric, such as is es^ ^pecially adapted to the requirements of South Ame^ lean and Oriental consumers, must enjoy an enlarge^ demand under stimulating conditions. At present almost all the cotton s-oods exported from this coun- -.-ta^ifi^ Asia. ..gp,,ja3itj3a„^ New York eastward by way of the Suez CanaLV/ , Alabama coal will find a constant and extensive EFFECT ON PACIFIC STATES. 257 demand at Panama, which will become the greatest coaling port, in the world. Birmingham, where iron can be produced more cheaply than at any other place on the eaji;h, will find new markets in South America and Asian countries for its output "v'^e^ steel, machinery, and various hardware of Tennessee and other Southern States, which have been reaching. Australia and China during the past few years under the most disadvantageous conditions of shipment, will *1te" sent through the Canal to these and other destina- — tirafg"at a cost which may defy competition:"^^<^he "~l3Tge"lumber and wood manufacturing industries of the South will "Be" obviously benefited to a great ex- tent by the creation of a short route to the western coasts of Central and South America. GREAT BENEFITS TO OUR PACIFIC STATES. y^. The immense saving in the journey from our east- em "ports to the Pacific Coast will revolutionize tlie trade of the latter region. Von Schierbrand says: * '-^^S^'TfTTas been computed that on a single voyage of a 1,500-ton sailing vessel between Port Townsend, Se- attle or San Francisco and Boston, l^ew York or Philadelphia, the saving effected in wages, repairs, in- surance, provisions, and freight charges, by reason of the Panama Canal will aggregate between $8,000 and * America, Asia and the Pacific. Wolf von Schierbrand. New York, 1904. 17 258 PANAMA. $9,500." Many raw products of our Pacific Coast, which at present can not bear the cost of long rail- road hauls, will be made available to eastern markets at prices profitable to the producer and the manufac- turer. This applies particularly to building lumber and furnishes a partial solution to the problem with which the rapidly disappearing forests of our middle and eastern states are confronting us. J^l|ie^jconomies thM^isill be effected in the t^'aasportation^of the cereal and fruit products of California and other western regions may easily be imagined. Millions of pounds J' of fish are sent annually in ice across the continent aside from the enormous quantities that go to Europe in English sailing vessels round Cape Horn. Alfe this would pass through the Canal if it w^exe openjjs^ and the present shipments of salmon alone wonild re- quire twenty vessels of 2,000 tons each. > ^^. ,^he Canal will be the means of enabling the -pjefifc;^,^™ e of the Pacific Coast to buy more cheaply and >^k , secure better prices for their products, ^^y breaking the monopolistic power of the railroads it will lead to the agricultural development of the unoccupie^"^ sections of this territory, to a vast increase in its*'^ population and to the creation of world-wide maj^ kets for its products. A BOON" TO THE NORTHEASTEEJiT TEBKITOBY. The industries of the northeastern section of the CX)AL AND THE CANAL. 259 United States, that is to say the territory lying to the east of Pittsburg and to the north of the James River, consist mainly of the manufactures of iron and steel, machinery, tools, etc., and textiles, coal mining, and shipbuilding. The exports of manufactured cotton from this and other parts of the United States go principally to ports in Asia and Oceania, where their chief competitor is the product of the British mills. It is not necessary to expatiate upon the advantage which the short route will give to us in this trade. -JjihQ countries of South America expend about $80,- 000,000 annually in the purchase of cotton goods. At "pre sent, nowever, little more than five per cent of this large sum is paid for^ American cloth, but the facilities for shipping economically that will be cre- ated by the Canal must have, among other result%, that of giving to the njanufacturers of our North-,, J eastern and Southern States a veix large share of I ^ Siis desirable businesSi. ^ "^Tt Is hoped that by the use of a new type of steel river barge of large capacity and small draft the coal of Pennsylvania and the Southern mines may be shipped direct to Panama at a cost of one dollar per short ton. This would allow of its being sold at three dollars, a figure sufficiently low to preclude success- ful competition. The ability to supply cheap fuel would not only accrue to the benefit of our coal mining interests, but would, where other consid- erations balanced, decide shipmasters in favor of 260 PANAMA. the Panama route, for the contract price of steam coal at Port Said is about six dollars and the current price about ten dollars per ton. OUK ADVAJ^TAGE OVER FOREIGN COMPETITOKS. The principal exporting competitors of the United States in the markets for the manufactures of iron and steel are Great Britain, Germany and Belgium. European producers can reach the west coast of South America, and the oriental countries in general, more readily than can our manufacturers, but the opening of the Canal will entirely subvert the condition in the favor of the latter. ^/T'ew of our industries are likely to receive such an expansive impulse from thaL.,, event as those dependent upon iron and steel for their material and the section which will benefit most in^ pthat respect is the coal and ore region of the Sout;^^ I One of tEe most certain consequences of the in- creased American trade that will follow the estab- lishment of a waterway between the Atlantic and Pacific Oceans will be the great extension of the mer- chant marine and the expansion of the shipbuilding industry of the country. The Canal will have the ef- fect of largely increasing the coasting trade of the United States and all tlie vessels engaged in it must be built in American yards. Aside from this the in- creased foreign trade under conditions that will make the shipping business once more profitable, must lead OPINION OF A SHIPBUILDER. 201 to the construction of a large additional number of American vessels. A large shipbuilder responded to an inquiry by tlie Isthmian Canal Commission with the following state- ment : " In my judgment the opening of the isth- mian canal and the development of its traffic would stimulate American shipbuilding to the extent of an increased demand for vessels to be used in trade af- fected by said canal. As a rule increased demand de- velops increased sources of supply and the cost of product is invariably reduced in proportion of in- creased business to fixed expenses of any manufactur- ing establishment, and therefore the canal would in this case tend to enable shipbuilders to construct ships more economically and more surely to compete with foreign builders." The foregoing are only a few illustrative examples of the benefits to certain portions of the United States that may be counted upon from the construction of the Panama Canal. Anything approaching a compre- hensive statement of the matter would fill a large volume.* POLITICAl. AND MILITARY ASPECTS. Although the prime purpose of the canal is essen- * The subject has been extensively treated by Professor Em- ory R. Johnson in the report of the Isthmian Canal Commis- sion of 1899-1901. 262 PANAMA. tially of a commercial character, its construction can not fail to entail important political results. These will be felt chiefly by the countries of the American continents and the adjacent islands. The Spanish- American republics, by being brought into closer and more frequent relations with the older civilizations will learn the lessons of modem government and the advantages of ordered and industrious social condi- tions. Whilst affording greater facilities for military movements, the Canal will ultimately prove to be a potent factor in the abolition of war. Without ven- turing too far into the realm of fancy, it may be per- missible to suggest one, by no means improbable, means to this end. Perhaps no agency within the bounds of present possibility could so effectively maintain the peace of nations as an alliance for that purpose and for mutual defence between the great naval powers, Britain, America and Japan. The bonds of friendship and commercial interest are more closely drawn in the case of these three peoples than between any other nations in the world and they will be the chief beneficiaries of the commercial and mili- tary facilities derivable from the Canal. THE CANAL PART OF OUR COAST LIITE;. To the United States the isthmian passage between the oceans has become a military necessity. The need for a short route from one coast to the other of li PROTECTION OF THE CANAL. 263 our country was forcibly felt when the Pacific terri- tories were acquired and again when at the outbreak of the war with Spain, the battleship Oregon was obliged to make the long journey round Cape Horn in order to join the Atlantic fleet. 54;!^, Canal will be- come, as President TTayes tersely put it, "a part of lEe^coaS^Ere oitlie Ignited States, v^ It will be essen- tial to the safety of this country that the Canal is pre- served from the possibility of falling into the hands of an enemy in time of war. It will be a simple task to fortify the entrances, but to guard the whole extent of a structure so susceptible to damage would be an altogether different matter and it would not perhaps be feasible and certainly not desirable to employ guns and forts for that purpose. DIFFICULTY OF GUARDING THE CANAL. A canal of any type must necessarily be extremely vulnerable. A few sticks of dynamite in the hands of determined men would put it out of use for a greater or less period. 'Not could any practicable system of precautions insure immunity from such a hazard. Fortifications would be futile, for a covert attack by a small body would be more likely to suc- ceed than an assault in force. Aside from guarding locks, dams and other important works it is difficult to conceive of anything like effective defensive meas- ures. In this connection the Isthmian Canal Com- 264 PANAMA. mission of 1899-1901 said : " It is the opinion of tlie Commission that a neutral canal, operated and controlled by American citizens, would materially add to the military strength of the United States; that a canal, whether neutral or not, controlled by foreigners, would be a source of weakness to the United States, rather than of strength; and that a canal not neutral, to be defended by the United States, whether by fortifications on land, or by the navy at sea, would be a source of weakness." The question is amongst the many problems con- nected with the Canal which are receiving the care- ful consideration of the Government, and it is quite probable that it will decide that we must depend upon the ISTavy to prevent any hostile force from landing upon the American Isthmus. jrOur possession of the Canal has emphasized the | lesirability of the United States owning the West Indies, or at least the four islands constituting the Greater Antilles, which most eifectually control the approach to the Caribbean Sea, and are characterized by Captain Mahan as " the very domain of sea power, if ever region could be called so.^' SHORTENED DISTANCES. 265 .-' ' I ) I q K J, BIA ' a uaiioq[af^ oj. 1 'niq^i BIA 'XaupAg ox S 2 S 00 CO CO 00 CO 1-1 o § 8 --I w CD W W 33 CI i-< CD 00^ crs_ i-H_ »ra cO_ OS OS Oi CO CO CO s s rf ^ lO O50505a5OSOSWC0©*C« » '8111 -Bq03JO^ puB o DspuEJjj utx; BIA 'eijUBi^ oj. -« CO -K CO 00 OS — I r-H O V 'EOIBq -03fO;^ pUB ODSID - u B J 4 "^S ^!'^ ' I E q ^ueqs ox V 'ODSp -nBjj^ UBg BIA 'BiuEqo:!{0^\ ox •lanojoo ox •OSIEJBdlB^ OX ■anbinbx oX S g? CO r)> CO CO OSOSOiOOSCiWCOWW ?? fe O OO -H to Oi t- r^ 05 CD CO CO eo CO CO CO 5C ■o^II^D ox M CO CO oo (N (N 5^ IN CD -i- CO IN CO ■(inbEXBtiQ ox IN ©< e< « c< ej la u: >a •03SID -UEJjJ UBS OX s s CO CO O) ■* ■* 00 CO 00 •ODSpUBJJ^ UBg BIA 'pua -SUAVCXJJOJOX -11 IN CO CO CO IN CO CO -)^ lo^ cq^ » r-i 'f >* o ii H O Z ;z; u ixi Z O >-! B .- JJ p fci IN .« >>j: X! ta o H Mh U O pa S 2 « E.5 3 E tn g o c E in O u I' u K com (JOr:: .2 o o >> >■ C5 Ij T9 XL PANAMA. PREPARATORY WORK ON THE ISTHMUS. Difficulty of Gauging Work Done — The Work of the French Companies — Deteriorated Property — We Have Greater Opportunities Than Had the French — The Death Roll Under French Management — Former Condition of Panama and Colon — Sanitary Detective Work — Extensive Work of the Sanitary Department — the Question of Food Supply — Extraordinary Treatment of the Laborers — Improvements in the City of Panama — Conditions in the City of Colon — The Opinions of an Expert — Mr. Hunter is Favorably Impressed with Conditions — The Panamans Are Satisfied with the Situation — Heavy Expenditures for Material and Supplies — A Clean and Well-directed Management. Considered in all its aspects, the Panama Canal is undoubtedly tlie greatest material enterprise of modem times. ISTevertheless, no question in recent years has been generally discussed with so little discrimination and so much ignorance of the facts. The average citizen depends upon his newspaper for information in such cases as this, and the American press, with few exceptions, has treated this great national undertaking in a manner which must be characterized either as inefficient or unfair. There 263 YELLOW JOURNALISM. 267 has been displayed, almost from its inception, a pessimistic attitude towards the project and a hyper- critical attitude towards its management that are not consistent with an understanding of the task and a knowledge of the conditions attaching to it. There has been an incomprehensible readiness to print any silly canard in connection with the undertaking, and no story, apparently, has been too extravagant to meet with wide credence. One or two of the most flagrant instances of misrepresentation have, it is true, been characterized by a degree of mendacity sufficiently transparent to defeat its purpose, but on the whole, unjustifiable criticism by publications of large circulation has seriously hampered the work of the Commission and perhaps, somewhat impaired the effi.eiency of the personnel under its direction. The bilious effusions of yellow journalism and the mendacious maunderings of sensation-mongers never furthered a good cause and can neither be expected to help us build the canal nor to aid us in arriving at a better understanding of the unfamiliar matters relating to it. The Panama Canal is the greatest engineering undertaking in the history of the world, and its accomplishment involves deeper problems and more difficult tasks than those with which any similar enterprise in the past has been beset. The best talent and the most active brains of all civilized countries have contributed to the perfection of the plans, and 268 PANAMA, we have every reason to believe that the consumma- tion of them has been placed in the hands of the best men available in America. It is safe to say that no great engineering work ever entered npon the constructive stage under more favorable con- ditions and with better prospects for success. Ex- cellent work has been done during the period of preparation. We have an assurance of this fact in the unequivocal statements of officials who are in the best position to judge. They include our Presi- dent and are all men whose word is unimpeachable. But, if that were not sufficient, the testimony might be adduced of every disinterested individual whose professional training, and experience on the Isthmus hav6 been such as to render his judgment weighty. DIFFIOtTLTT OF GAUGING WORK DONE. It is difficult to conceive of an undertaking in which so much effective work might be done with so little to " show for it " as in this. Much, indeed, of the most important labor has no visible result at present. The extensive surveys, the borings, the fluvial investigations and a hundred similar re- searches are in evidence only in the office files. Even the splendid sanitary achievements are to be realized only by an examination of the records, which bear eloquent testimony to the scientific attainment and determined energy of Americans. N'or is it possible FAULTY OBSERVERS. 269 for one to appreciate the vast amount of wort that has been done in the matters of organization and equipment unless he has some technical knowledge of such affairs and an opportunity for comparison with the pre-existing conditions. The progress that has been made on the Isthmus can not be discerned by casual inspection. The observer who permits super- ficial phenomena to fill his eye to the exclusion of sub-surface indications can not avoid erroneous con- clusions and unwarranted judgments. Photograph- ing discarded French machinery and nosing about in gutters and backyards are not conducive to a broad view or a just appreciation of what has been accomplished by our people on the Isthmus. The bruised and bandaged victim of a railroad collision affords little scope, except to the practised surgeon, for accurate judgment as to his condition when ad- mitted to the emergency ward, or as to the treatment which he has received. What would we say of the visitor to a hospital who should allow the per- vading presence of sickness and disease to excite his condemnation of the faculty, in ignorance or disregard of the fact that they are not responsible for its existence and have accomplished much towards its alleviation and cure. And, as the conduct of the most efficient hospital will not be free from fail- ures and mistakes, so these will be experienced, and should be expected, in the course of so extensive an operation as the constiiiction of the Panama Canal, 27 Vessels. Tonnage,. 1870 486 654,915 1875 , 1,494 2,940,708 1880 2,026 4,344,519 1890 3,389 9,749,129 1895 3,434 11,833,637 1900 3,441 13,699,237 1903 3,761 16,615,309 THE CEONSTADT AND ST. PETEESBUEG CANAL. The canal connecting the Bay of Cronstadt with St Petersburg is described as a work of great strate- gic and commercial importance to Russia. The ca- nal and sailing course in the Bay of Cronstadt are about 16 miles long, the canal proper being about 6 THE CORINTH CANAL. 323 miles and the bay channel about 10 miles, and they together extend from Cronstadt, on the Gulf of Fin- land, to St. Petersburg. The canal was opened in 1890 with a navigable depth of 201^! feet, the orig- inal depth having been about 9 feet ; the width ranges from 220 to 350 feet. The total cost is estimated at about $10,000,000. THE, CORINTH CANAIi. The next of the great ship canals connecting bod- ies of salt water in the order of date of construction is the Corinth Canal, which connects the Gulf of Corinth with the Gulf of ^gina. The canal reduces the distance from Adriatic ports about 1Y5 miles and from Mediterranean ports about 100 miles. Its length is about 4 miles, a part of which was cut through granite soft rock and the remainder through soil. There are no locks, as is also the case in both the Suez and Cronstadt canals, already described. The width of the canal is Y2 feet at bottom and the depth 261/4 feet. The work was begim in 1884 and completed in 1893 at a cost of about $5,000,000. The average tolls are 18 cents per ton and 20 cents per passenger. THE MANCHESTER SHIP CANAIi. The Manchester Ship Canal, which connects Man- 324 PANAMA. Chester, England, with the Mersey River, Liverpool, and the Atlantic Ocean, was opened for traffic Janu- ary 1, 1894. The length of the canal is 351/2 miles, the total rise from the water level to Manchester being 60 feet, which is divided between four sets of locks, giving an average to each of 15 feet. The minimum width is 120 feet at the bottom and average 175 feet at the water level, though in places the width is ex- tended to 230 feet; the minimum depth 26 feet, and the time required for navigating the canal from five to eight hours. The total amount of excavation in the canal' and docks was about 45,000,000 cubic yards, of which about one-fourth was sandstone rock. The lock gates are operated by hydraulic power ; rail- ways and bridges crossing the route of the canal have been raised to give a height of 75 feet to vessels trav- ersing the canal, and an ordinary canal whose route it crosses is carried over it by a springing aqueduct composed of an iron caisson resting upon a pivot pier. The total cost of the canal is given at $75,000,000. The revenue in 1902, according to the Statesman's Yearbook, was £358,491, and the working expenses, £217,537. THE KAISEE. WILHELM CANAL. Two canals connect the Baltic and I^orth seas through Germany, the first, known as the Kaiser ^ilhelra Caual, having been completed in 1895 and ELBE AND TRAVE CANAL. 325 constructed largely for military and naval purposes, but proving also of great value to general mercantile traffic. Work upon the Kaiser Wilhelm Canal was begun in 1887, and completed, as above indicated, in 1895. The length of the canal is 61 miles, the terminus in the Baltic Sea being at the harbor of Kiel. The depth is 291/2 feet, the width at the bot- tom 72 feet, and the minimum width at the surface 190 feet. The route lies chiefly through marshes and shallow lakes and along river valleys. The total ex- cavation amounted to about 100,000,000 cubic yards, and the cost to about $40,000,000. The number of vessels passing through the canal in 1903-4 was 32,038, with a tonnage of 4,990,287, and the dues collected amounted to 2,414,499 marks. THE ELBE AND TEAVE CANAL. A smaller canal, with a length of about 41 miles and a depth of about 10 feet, was opened in 1900, known as the Elbe and Trave Canal, and is described by the International Yearbook, 1900, as follows : " The Elbe and Trave Canal, in Germany, was opened by the Emperor of Germany on June 16, 1900. It has been under construction for five years, and has cost about $5,831,000, of which Prussia con- tributed $1,785,000 and the old Hanse to^vn of Lu- beck $4,046,000. The length of the new canal is about 41 miles, and is the second to join the !N"orth 326 PANAMA. Sea and the Baltic, following the Kaiser Wilhelm Canal (or Kiel Canal), built about five years ago at a cost of $37,128,000. The breadtli of the new canal is 72 feet; breadth of the locks, 46 feet; length of locks, 261 feet; depth of locks, 8 feet 2 inches. It is crossed by 29 bridges, erected at a cost of $1,000,000. There are seven locks, five being between Lubeck and the Mollner See (the summit point of the canal) and two between Mollner See and Fauenberg^on-the-Elbe. At this point it may be noted that the Germans began experiments during 1900 with electric towing on the Know Canal between Berlin and Stettin. A track of 1-meter gauge was laid along the bank of the canal, having one 9-pound and one 18-pound rail laid partly on cross-ties and partly on concrete blocks. The larger rail serves for the return current, and has bolted to it a rack which gears with a spur wheel on the locomotive. The locomotive is 6 feet 10 inches by 4 feet 10 inches, mounted on four wheels, with a wheel base of 3 feet 6 inches, and weighing 2 tons. It is fitted vnth a 12-horsepower motor, current for which is furnished by a 9-kilowatt dynamo, driven by a 15-horsepower engine. The current is 500 volts, and is transmitted by a wire carried on wooden poles 23 feet high and about 120 feet apart. The boats are about 132 feet long and 15 feet 6 inches beam, and carry from 150 to 175 tons on a draft of 4 feet 9 inches. During 1900 the Stettin-Swinemund Canal, ■with a length of 35 miles, has been dredged through- PROJECTED PRUSSIAN CANALS. '^'2.7 out, and is now open to steamers drawing 22 feet of water. Swinemund is on the Baltic Sea. " Among the various projects for European canals may be mentioned one connecting the Danube a little below Vienna, Austria, with the Adriatic Sea at Tri- este, a distance of about 319 miles. The construc- tion will cost some $120,000,000. Late in 1900 a canal from Liege to Antwerp, in Belgium, was being seriously discussed, in order to connect the prosper- ous city of Liege with the sea, and make it, like the city of Manchester, England, a seaport. The pro- moters propose a canal 84 miles long, 200 feet wide, and 23 feet deep from Antwerp to Liege, with locks at Liege, Hasselt, Herenthals, and Antwerp. The difference in level to be overcome by locks would be 175 feet, and it is thought that thirteen single locks and one double lock would be sufficient. The total estimated cost of the work is $25,200,000." CAISTALS PROJECTED IIST PRUSSIA. According to a recent report of United States Con- 6ul-General Guenther, of Frankfort, Germany, the committee on canals of the Prussian Diet has re- ported, with a favorable recommendation, a bill pro- viding for the following construction : 1. A navigable canal between the rivers Rhine and Weser, with a connection to Hanover, and the canalization of the Eiver Lippe : 328 PANAMA. (a) A navigable canal from the Ehine in the vi- cinity of Ruhrort, or from a more northern point, to the D'ortmund-Ems Canal or the vicinity of Heme (Rhine-Herne Canal) inclusive of a branch canal from Datteln to Hamm; estimated cost, 74,500,000 marks ($17,731,000). (6) Several additional works on the Dortmund- Ems Canal between Dortmund and Bevergern; esti- mated cost, 6,150,000 marks ($1,463,700). (c) A navigable canal from the Dortmund-Ems Canal in the vicinity of Bevergern to the River Weser, connecting with Hanover; branch canals to Osnabriick, Minden, and Linden, construction of reservoirs in the upper parts of the River Weser and some regulation works of the Weser below Hameln; estimated cost, 120,500,000 marks ($28,679,000). (d) Canalization of the River Lippe or construc- tion of branch canals of the Lippe from Weser to the Dortmund-Ems Canal, near Datteln, and from Hamm to Lippstadt; estimated cost, 44,600,000 marks ($10,614,800). (e) Improvement of the cultivation of the soil in connection with the works under items a to d, and the completed Dortmund-Ems Canal ; estimated cost, 5,000,000 marks ($1,190,000). The total estimated cost of the work, items a to e, is placed at 250,750,000 marks ($59,678,500). 2. The construction of a deep waterway between NORTH AMERiCx\N CANALS. 32'.) Berlin and Stettin ; estimated cost, 43,000,000 marks ($10,234,000). 3. Improvement of the waterway between the rivers Oder and Weichsel, also of the river Warthe from the mouth of the river N^etze to the city of Posen; estimated cost 21,175,000 marks ($5,039,- 650). 4. The canalization of the river Oder from the mouth of the river Glatzer Neisse to the city of Breslau, experimental works on the line between Breslau and Fiirstenberg and the Oder, construction of one or of several reservoirs; estimated cost, 19,- 650,000 marks ($4,676,700). The entire cost of the projects named is placed at 334,575,000 marks ($79,628,850). SHIP CAlSTAiS CONNECTING THE GREAT IA.KES OF NORTH AMERICA. Three ship canals intended to give continuous pas- sage to vessels from the head of Lake Superior to Lake Ontario and the St. Lawrence River are the Welland Canal, originally constructed in 1833 and enlarged in 1871 and 1900; the St. Marys Falls Canal at Sault Ste. Marie, Mich., opened in 1855 and enlarged in 1881 and 1896, and the Canadian Canal at St. Marys River, opened in 1895, In point of importance, measured at least by their present use, the canals at the St. Marys River by far surpass that 330 PANAMA. of the Welland Canal, the number of vessels passing through the canals at the St. Marys Eiver being eight times as great as the number passing through the Welland, and the tonnage of the former nearly forty times as great as that of the latter. One of the important products of the Lake Superior region, iron ore, is chiefly used in the section contiguous to Lake Erie, and a large proportion of the grain com- ing from Lake Superior passes from Buffalo to the Atlantic coast by way of the Erie Canal and railroads centering at Buffalo. The most important article in the westward shipments through the Sault Ste. Marie canals, coal, originates in the territory contiguous to Lake Erie. These conditions largely account for the fact that the number and tonnage of vessels passing the St. Marys River canals so greatly exceed those of the Welland Canal. THE WELLAND CAJSTAL. The Welland Canal connects Lake Ontario and Lake Erie on the Canadian side of the river. It was constructed in 1833 and enlarged in 1871 and again in 1900. The length of the canal is 27 miles, the number of locks 25, the total rise of lockage 327 feet, and the total cost about $25,000,000. The an- nual collection of tolls on freight, passeng-ers, and ves- sels averages about $225,000 and the canal is open on an average about 240 days in a year. By order SAULT STE. MARIE CANALS. 331 in council dated April 27, 1903, the levy of tolls for passage through Dominion canals has been abolished for a period of two seasons of navigation. THE SAULT STE. MAKIE CANALS. The canals at Sault Ste. Marie, Mich., and On- tario are located adjacent to the falls of the St. Marys River, which connects Lake Superior with Lake Huron, and lower or raise vessels from one level to the other, a height of 17 to 20 feet. The canal be- longing to the United States was begun in 1853 by the State of Michigan and opened in 1855, the length of the canal being 5,674 feet, and provided with two tandem locks, each being 350 feet in length and 70 feet wide, and allowing passage of vessels drawing 12 feet, the original cost being $il,000,000. The United States Government, by consent of the State, began in 1870 to enlarge the canal, and by 1881 had increased its length to 1.6 miles, its width to an average of 160 feet, and its depth to 16 feet; also had built a single lock 515 feet long and 80 feet wide, with a depth of 17 feet on the sills, which was located 100 feet south of the State locks. The State relinquished all control of the canal in March, 1882. In 1887 the State locks were torn down and replaced by a single lock 800 feet long, 100 feet wide, with a depth of 22 feet of water on the sills. This lock was put in commis- sion in 1896. The canal was also deepened to 25 332 MANAMA. feet The Canadian canal, 1% miles long, 150 feet wide, and 22 feet deep, with lock 900 feet long, 60 feet wide, with 22 feet on the miter sills, was built on the north side of the river during the years 1888 to 1895. In 1900 the number of vessels passing through the United States canal was 16,144, and through the Canadian canal, 3,003, showing an in- crease of 1,350 in the number of vessels passing through the Canadian canal, and a decrease of 1,901 in the number through the United States canal, the increase in the number passing through the Canadian canal having been due to the de- velopment of the Michipocoten district. The ton- nage passing through the United States canal in 1903 was: Registered tonnage, 22,998,864 tons, against 19,901,463 in the year 1900; the freight tonnage in 1903 was 29,172,252 tons, against 23,251,539 tons in 1900. The Canadian canal shows: Registered tonnage in 1903, 4,737,580 tons, against 2,160,490 in 1900; and freight tonnage in 1903, 5,502,185 tons, against 2,018,999 in 1900. A marked contrast be- tween the business of the St. Marys Falls and Wel- land canals is found in a comparison of their figures for a term of years. The number of vessels passing through the Welland Canal in 1873 was 6,425, and in 1902, 1,568, a reduction of over 75 per cent in the number of vessels. The number of vessels pass- ing through the St. Marys Falls Canal in 1873 was POE AND WEITZEL LOCKS. 3:?3 2,517, and in 1903, through the American and Ca- nadian canals, 18,596. The following, supplied by the office of the Chief of Engineers, War Department, shows the details of the Sault Ste. Marie and Welland canals : The total cost of the St. Marys Falls Canal, Mich- igan, and of the locks now in service is $6,033,533, made up as follows : Dollars. Canal , 2,250,786 Weitzel lock 983,355 Poe lock 2,799,392 The length of the canal is 1.6 miles, depth 25 feet, and width varying from 110 to 1,000 feet. The size of the locks is as follows: Weitzel loch: Feet. Depth of water at mean stage 17 Length between gates . 515 Width of chamber. 80 Width at gates 60 Poe loch: Length between gates 800 Depth of water at mean stage 22 Width 100 The lift of both locks varies from 16 to 20 feet. The Canadian lock at Sault Ste. Marie, Ontario, Canada, has a length between gates of 000 feet and 334 PANAMA. a width of 60 feet ; the depth of water over miter sill of lock and in canal is 22 feet at mean stage (20 feet 3 inches at lowest known water level). The total amount expended on construction to June 30, 1900, was $3,770,621. The Welland Canal is 26.75 miles long and 100 feet wide; it has 25 lift locks and one guard lock; the locks are 270 feet long, 45 feet wide, and have a depth of water of 14 feet; the total lift is 326.75 feet. The total amount expended on construction to June 30, 1900, was $24,293,587. According to the International Yearbook, 1900, the most notable occurrence of the year 1899 in canal construction was the opening of the Soulanges Canal by which the Canadian Government completes the last link in its long-projected 14-foot waterway from the head of Lake Superior to the mouth of the St. Liawrence Eiver. I^KE BOEGNE CANAIi. The Lake Blorgne, Louisiana, Canal was formally opened in August of 1901. It opens continuous water communication with lakes Maurepas, Pont- chartrain, and Borgne, the Mississippi Sound, Mo- bile, and the Alabama and Warrior rivers, and the entire Mississippi River system, and has an impor- tant bearing as a regulator of freight rates between these sections. The effects of the canals may be LAKE BORGNE CANAL. 335 briefly summed up as: Shortening the distance be- tween ISTew Orleans and the Gulf points east of the Mississippi ; bringing shipments from the Gulf coast direct to the levees at New Orleans ; saving the trans- shipment of through freights, with a consequent re- duction in freight rates ; enabling sea-going vessels, drawing 10 to 12 feet of water, to come within 20 miles of 'New Orleans, saving all such craft the cost of tonnage and shortening, by 60 miles, direct water communication between ISTew Orleans and the deep water of the Gulf. In addition to these effects may be enumerated the cheapening of coal for consump- tion at New Orleans. Coal has hitherto been floated down the rivers from Pittsburg, a distance of 2,100 miles. The canal opens up the coal fields in the in- terior of Alabama for I^ew Orleans consumption and reduces coal prices considerably, giving an additional advantage to domestic industries and to steamers purchasing bunker coal. The canal is 7 miles long and from 150 to 200 feet in width. Bayou Dupre forms a portion of the canal. The lock chamber is 200 feet long, 50 feet wide, and 25 feet deep, and connects the canal with the Mississippi River. THE CHICAGO SANITARY Al^D SHIP CANAL. The Chicago Sanitary and Ship Canal connects Lake Michigan at Chicago with the Illinois River at Lockport, a distance of 34 miles. The canal was 336 PANAMA. cut for the purpose of giving to the city of Chicago proper drainage facilities by reversing the movement of w^ater, which formerly flowed into Lake Michi- gan through the Chicago River and turning a current from Lake Michigan through the Chicago Eiver to the Illinois River at Lockport and thence down the Illinois River to the Mississippi. The minimum depth of the canal is 22 feet, its width at bottom 160 feet, and the width at the top from 162 to 290 feet, according to the class of material through which it is cut. The work was begun September 3, 1892, and completed and the water turned into the channel January 2, 1900. The flow of water from Lake Michigan toward the Gulf is now at the rate of 360,- 000 cubic feet per minute, and the channel is esti- mated to be capable of carrying nearly twice that amount. The total excavation in its construction in- cluded 28,500,000 cubic yards of glacial drift and 12,910,000 cubic yards of solid rock, an aggregate of 41,410,000 cubic yards. In addition to this the construction of a new channel for the Desplaines River became necessary in order to permit the canal to follow the bed of that river, and the material ex- cavated in that work amounted to 2,068,659 cubic yards, making a grand total displacement in the work of 43,478,659 cubic yards of material which, accord- ing to a statement issued by the trustees of the sani- tary district of Chicago, would, if deposited in Lake Michigan in 40 feet of water, form an island 1 mile LAKE-GULF WATERWAY. 337 square with its surface 12 feet above the water line. All bridges along the canal are movable structures. The total cost of construction, including interest ac- count, aggregated $34,000,000, of which $21,379,675 was for excavation and about $3,000,000 for rights of way and $4,000,000 for building railroad and highway bridges over the canal. The city and State authorities by whom the canal was constructed are now proposing to Congress to make this canal a com- mercial highway in case Congress will increase the depth of the Illinois and Mississippi rivers to 14 feet, with locks for fleets of barges from Lock- port, the terminus of the drainage canal, to St. Louis. This, it is argued, would give through-water trans- portation from Lake Michigan to the Gulf by way of the drainage canal, the Illinois River, and the Mis- sissippi River, and would enable the United States in case of war to quickly transport light-draft war ves- sels from the Gulf to the lakes. This work of deep- ening the Illinois River would also give through- water connection from Rock Island, on the Upper Mississippi River, to Lake Michigan via the Illinois and Mississippi Canal, elsewhere described, which extends from Rock Island, on the Mississippi River, to Hennepin, on the Illinois River. The estimate of the Chicago sanitary district trustees of the cost of deepening the Illinois and Mississippi rivers from the terminus of the ship canal to St. Louii? to n doptli 22 S38 1>AKAMA. of 14 feet is $25,000,000, including five locks and dams. OTHER CANAIS. In addition to the above ship canals, there is a number of other important waterways worthy of men- tion. The great ISTorth Holland Canal, cut in 1845 from Amsterdam to Helder, a distance of 51 miles, to avoid the shoals of the Zuyder Zee, has a depth of 20 feet, a width of 125 feet at the surface, and car- ries vessels of 1,300 tons burden, and is described as " the chief cause of thei great prosperity of Ams- terdam." The Caledonian Canal, which connects the Atlan- tic Ocean and l^orth Sea through the north of Scot- land, is IT feet in depth, 50 feet in width at the bottom, and 120 feet at the surface, with a surface elevation at the highest point of 94 feet above sea level. The canal proper is 250 miles long, and the distance between the terminals over 300 miles. The cost has been stated at $7,000,000, including repairs. The Canal du Midi, cut through France from Toulouse, on the Garonne River, to Cette, on the Mediterranean, a distance of 150 miles, is 60 feet wide, 61/2 fest deep, has 114 locks, and is, at its high- est point, 600 feet above the level of the sea. Its cost was $3,500,000, and it is navigable for vessels of 100 tons. CANiUDA'S CANALS. 339 A ship canal to supply passage of seagoing vessels from Antwerp to Brussels, Belgium, a distance of about 30 miles, is under contemplation. The Illinois and Mississippi Canal, which is to furnish a navigable waterway from the Mississippi River, at the mouth of the Rock River in Illinois, to the Illinois River, at Hennepin, 111., and thence by river and canal to Lake Michigan, was begun in 1892, and the section between Rock Island and Hennepin is now nearing completion. The canal is about 80 feet wide, 7 feet deep, and is supplied \vith locks 150 feet long and 35 feet wide, capablie of passing barges carrying 600 tons of freight. The canal systems of European countries and of Canada differ from those of the United States in that they are operated in conjunction with, and made complemental to, the railway systems of those coun- tries. Canada's six great systems of government canals afford, with the St. Lawrence River connec- tions, important inland communications. The total length of the canals in operation is 262 miles, but the aggregate length of continuous inland navigation ren- dered available by them is nearly 3,000 miles. The receipts in 1903 were $230,213, and the working ex- penses, including repairs, $581,976. The amount expended in the construction and maintenance of these canals, including the Sault Ste. Marie Canal, to June 30, 1903, is $85,300,000. In India the 340 PANAMA canals constructed primarily for irrigation purposes, at a cost of about $15,000,000, are utilized to a con- siderable extent for inland navigation. In Germany the canals, aside from the Kaiser Wilbelm, are 1,511 miles in length, and the canalized rivers 1,452 miles. In France the length of the canals in operation is 3,021 miles. CANAI^ OF THE UNITED KINGDOM. In the United Kingdom the length of canals be- longing to railways is 1,139 miles, and that of canals not belonging to railways 2,768 miles. The traffic of canals belonging to the railways amounted in 1898 to 6,009,820 tons; of those not belonging to railways 33,348,573 tons. The total revenue of both classes of canals was, in the same year, £2,408,534, and the expenditure £1,764,037. The tonnage figures do not include the 1,142,477 tons carried on the Manchester Ship Canal. The London Daily Mail Yearbook for 1902 says of the canal system of England: '' There are 3,520 miles of inland navigation in England and Wales, of which 1,234 miles are under the control of the railways, the London and Northwestern and Great Western railways owning nearly 700 miles be- tween them. The paid-up capital (from all sources) of the independent canals (excluding the Manches- ter Ship Canal) falls little short of £20,000,000, ac- CANALS OF THE UNITED STATES. ^^41 cording to the board of trade returns. Including railway-owned canals, this amount will probably ex- ceed £30,000,000. The annual traffic nins about 37,000,000 tons, comparing unfavorably with a prob- able 320,000,000 tons carried by the railways. The improvement and development of these internal waterways is regarded by the chamber of commerce as a matter of urgent necessity, and they are formu- lating proposals with regard to the subject to put be- fore the Government." CAWALS OF THE ITNITED STATES. The canals of the United States still used for com- mercial purposes are stated by the JSTew York World Almanac for 1905 as being 37 in number, with an aggregate length of 2,443 miles, the total cost of their construction being about $180,000,000. The most important of these, aside from that connecting the Great Lakes, of course, is the Erie Canal, 387 miles in length, with 72 locks and a depth of 7 feet. Next in length is the Ohio Canal from Cleveland, Ohio, to Portsmouth, Ohio, 317 miles in length, with 150 locks and a depth of 4 feet Next in length is the Miami and Erie Canal, from Cincinnati to Toledo, 274 miles in length, with 93 locks and a depth of 6Y2 feet. The Pennsylvania Canal, from Colum- bia to Huntingdon, Pa., is 193 miles in length, with 71 locks and a depth of 6 feet. The Chesapeake and 342 PANAMA. Ohio Canal, from Cumberland, Md., to Washington, jy. C, is 184 miles in length, with 73 locks and a depth of 6 feet The Lehigh Coal and Navigation Company's Canal, from Coalport to Easton, Pa., is 108 miles in length, with 57 locks and a depth of 6 feet. The Morris Canal, from Easton, Pa., to Jer- sey City, ]Sr. J., is 103 miles in length, with 33 locks and a depth of 5 feet The Illinois and Michigan Canal, from Chicago, 111., to La Salle, is 102 miles in length, with 15 locks and a depth of 6 feet, and the Champlain Canal, from Whitehall, N. Y., to West Troy, is 81 miles in length, with 32 locks and a depth of 6 feet. COST OF MAINTEINAJSrCB AND OPERATION OF CANALS. In order to form an estimate of the cost of main- taining and operating the Isthmian Canal, the Isth- mian Canal Commission obtained data bearing on this point from the Suez, Manchester, Kiel, and St. Marys Falls canals, as follows : There are no locks on the Suez Canal, but the channel is through drifting sand for a great part of its length. The entrance to the harbor of Port Said on the Mediterranean intercepts the drift of sand dis- charged from the ^i\e and cari'ied along the coast by the easterly current. The maintenance of the Suez Canal therefore requires a large amount of dredging and consists mainly of this class of work. The oper- COSTS OF MAINTENANCE. 343 ating expenses are also large, the great traffic iiivolv- ing heavy costs for pilotage. The general expenses for administration have necessarily been greater for the Suez Canal than for the Kiel or Manchester canals, on account of the distance of the work from the point of central control, a disadvantage vs'hich would also attend the operation of the Isthmian Canal. The annual cost of .maintenance and oper- ation of the Suez Canal is about $1,300,000, or about $13,000 per mile. The annual cost of maintenance and operation of the Kiel Canal is $8,600 per mile. The cost of maintenance only of the Manchester Canal is $9,500 per mile. These canals have locks and other me- chanical structures, and therefore might be expected to have a higher cost of maintenance than the Suez Canal, which has none, but this appears to be more than offset by reduced cost of maintaining the prism and more economical central control. The traffic be- ing light on these canals, the cost of pilotage and port service is small. The mechanical structures are now nearly new, and will soon require larger annual out- lays for maintenance, while, with the increase of traffic, operating expenses will become larger. The St. Marys Falls Canal, when compared with those just mentioned, is remarkable by reason of its short leng-th, large proportion of mechanical struc- tures, and immense traffic. Its length is about II/2 miles. Its annual traffic, limited by the severity of 344 PANAMA. the winter to a period of about eiglit months, is nearly three times that of the Suez Canal, eight times that of the Kiel Canal, and ten times that of the Manches- ter Canal. Both maintenance and operating expen- ses are therefore very large, amounting to from $70,- 000 to $90,000 per year, or $46,000 to $60,000 per mile. The annual cost per mile of maintenance and operation, however, for comparison with other canals, should be determined by considering the 18^-^ miles of dredged channel ways in St. Marys River as part of the canal. Then for the 20 miles of canal and canalized river the expenses per mile would be from $3,000 to $5,000 annually. Tolls were collected by the State from 1855-1881. Since its ownership by the Government no tolls have been charged. THE OANAL SYSTEM OF INDIA. In a few of the colonies of the world, notably India and Ceylon, irrigation works of great value have been constructed by the colonial governments. While these have been costly, the expense has been entirely borne from colonial funds or from loans which are borne by the colonial government, and the cost has been many times repaid by the increased production of the irrigated areas. It has been estimated that the value of a single year's crop produced in the irrigated sec- tions of India in excess of that which would have been CANAL SYSTEM OF INDIA. 345 produced without irrigation more than equals the en- tire cost of the irrigation system. Sir John Strachey, in his " India," put the cost of the Indian irrigation works up to that time at 320,- 000,000 rupees (present exchange value of rupee about 33 cents), and adds that the estimated value of the produce of the lands irrigated by works con- tructed by the government was in 1892 more than 550,000,000 rupees. These works after their con- struction are not only self-supporting through the charges made for the water distributed, but produce in addition to the annual expenditures a net return of about 5 1/2 per cent on their costu In Ceylon the co- lonial government has recently taken up the w^ork of reconstruction of ancient irrigation tanks and the construction of new irrigation works, and by this pro- cess it is expected that large additions will be made to the productive area of the island. The irrigating system of India is described by Sir John Strachey as follows : THE IMPORTANCE OF OANALS. IN INDIA. " In India the very existence of the people depends upon the regular occurrence of the periodical rains, and when they fail through a wide tract of country, and, still worse, when they fail in successive years^ the consequences are terrible. The greater part, of India is liable periodically to this danger, but the 346 PANAMA. country is so vast that it never happens that all parts of it suffer at the same time. Improvements in the economic condition of the people, and especially more diversity of occupation, can alone bring complete safeguards and render general famine, in its extrem- est form, through a great tract of country impossible. But this must be a long and gradual process. Mean- while it has been found by experience that although the entire prevention of famines, the most destructive of all calamities, is beyond the power of any govern- ment, we can do much to mitigate them by removing obstacles which hinder commercial intercourse and which diminish the productiveness of the land. The instruments by which we can do this are roads, rail- ways, and canals. ... IRRIGATION CONSTANTLY ItEQUIEED IN PAETS OF INDIA. " In northern India, even in good seasons, artificial irrigation is a necessity for the successful cultivation of many of the more valuable crops, and when there is a general failure of the periodical rains there is no other means by which drought and scarcity can be prevented. A large portion of northern India is now protected by canals of greater magnitude than exist in any other country of the world, . . . " Little of the old irrigation works of our predeces- sors is retained in the existing canals. Practically all of these have been made by ourselves, and the INDIAN IRRIGATION SYSTEM. •^47 often-repeated statement, prompted, I believe, by that strange inclination to depreciate their oavii achieve- ments which often besets Englishmen, that the old canals have been more profitable than those con- structed by ourselves has not the least foundation of truth. lEBIGATION SYSTEM UNBER ENGLISH RULEw " The most important of these works in the north- western provinces are those which distribute the waters of the Ganges and Jumna. In the winter and spring, before the Ganges has been swollen by the melting of snow in the Himalayas and when water is urgently required for agricultural operations, nearly the whole visible stream of the great river at Hard- war, where it leaves the mountains, is thrown into an artificial channel. The works on the first 20 miles of its course are in a high degree remarkable, for the canal intercepts the drainage of the Lower Himalayas and has to be carried across rivers which often become furious torrents, bringing down enormous floods. These obstacles have been overcome by various meth- ods with a skill of which our Indian engineers may well be proud. One torrent flows harmlessly in a broad artificial bed over the canal which runs below ; over another, still more formidable, with a bed more than 2 miles wide, the canal, which is virtually the whole Ganges, is carried by an aqueduct. Some 200 348 PANAMA. miles farther down, the Ganges has again become a large river, and nearly all its water is again diverted into a second canal. The two canals together are capable of discharging nearly 10,000 cubic feet of water per second ; the ordinary supply of each is more than double the volume of the Thames at Teddington in average weather, and this great body of water is distributed over the country by a number of smaller channels for the irrigation of the land. The length of the main channels exceeds 1,000 miles, and there are more than 5,000 miles of distributaries. " Three canals of smaller dimensions, but which in any other country would be looked upon as works of great magnitude, distribute in a similar way nearly the whole of the water brought by the Jumna from the Himalayas. In Bahar, the border province of the Bengal lieutenant-governorship, which in its physical character closely resembles the adjoining provinces of the northwest, another great canal is taken from the river Son. " There are other important irrigation canals in Orissa and in Bengal ; but in the latter province irri- gation is not ordinarily so essential as in countries farther north, where the climate is drier and the sea- sons are more precarious. GREAT ECONOMICS IN CANAL OPERATION. " The following facts, which I take from the report PROFITS IN IRRIGATION. 340 of the Indian famine commissioners, will give some idea of the value of the irrigation works of the north- western provinces : " ' Up to the end of 1877-78 the capital outlay on completed canals had been £4,346,000. The area ir- rigated in that year was 1,461,000 acres, the value of the crops raised on which was estimated at £6,020,- 000. Half the irrigated area was occupied by au- tumn crops, which but for irrigation must have been wholly lost, and it may be said that the wealth of these provinces was consequently increased by £3,- 000,000 ; so that three-fourths of the entire first cost of the works was thus repaid to the country in that single year. " ' In 1891-92 the area irrigated by canals in the northwestern provinces exceeded 2,000,000 acres.' " In tlie Punjab works of equal importance have been constructed to utilize the waters of the Sutlej, the Ravi, and other rivers, and their value has been as great as in the northwestern provinces. " ' During the droughts of 1877-78,' Sir Henry Cunningham tells us, ' their benefits were extended to 1,333,000 acres, the greater portion of which but for canal irrigation would have been absolutely barren. During this period the land irrigated by the two prin- cipal canals produced food grain to the amount of 300,000 tons, worth £2,000,000, and enough to keep 1,800,000 people for a year ; while the non-food crops — sugar, dyes, spices, etc. — were reckoned to be 350 PANAMA. worth another £1,000,000. In other words, the value of the crops saved by the two canals in a single season was more than equal to the entire cost (£2,260,000) of the completed system.' " The benefits described by Sir Henry Cunning- ham have become far greater since this passage was written. The Sirhind Canal, which distributes the water of the Sutlej throughout not only our own ter- ritories but through the native State of Patiala, !N^abha, and Jhind, is a work of greater magnitude than either of the canals from the Ganges. It is ca- pable of discharging more than 6,000 cubic feet of water per second; the length of its main channel is 540 miles, and that of its distributaries 4,700 miles, and it can irrigate 1,200,000 acres. Its cost has ex- ceeded 40,530,000 rupees, and the direct returns to the State in 1890-91 amounted to about 4.6 per cent on the capital invested. " Different systems of irrigation prevail in other parts of India. In central and southern India large tracts of country are dependent for their supply of water on lakes and reservoirs, known by the not very appropriate name of tanks. These are in some cases natural lakes, but oftener they have been formed by the construction of dams of masonry or earth across the outlets of valleys in the hills, and they are fed sometimes by rivers and sometimes by the rainfall of a more or less extensive area. They vary in size from ponds irrigating a few acres to lakes of several GREAT TANKS OF INDIA. 351 miles in circumference. Some of them are works constructed in the times of which we have no histor- ical record. GKEAT TAJ!TKS OF SOUTHERN INDIA. " These are not the only means of irrigation in southern India. Work hardly inferior in importance to those of the northwestern provinces and Punjab, but on a different system, have been carried out by the British Government in the Madras Presidency for utilizing the waters of the Godaveri and Kistna riv- ers. At the head of each of the deltas which they form before they reach the sea a great weir, or, as it is locally called, an ' anicut,' is thrown across the river, which is diverted into irrigation canals and distrib- uting channels, some of which are also used for nav- igation. A large area, with a population of nearly 2,000,000, thus obtains complete protection against failure of rain, and these works have not only been in the highest degree beneficial to the people, but very profitable to the State. In the famine of 1 876-- 77 these irrigated tracts produced rice to the value of 50,000,000 rupees, a large part of which was avail- able for the relief of the suffering districts. Without canal in-igation there would have been no crops at all, and the value of the produce in a single year was four times as great as the whole capital expended on the canal works by the Government. Farther south, in 352 PANAMA. Tanjore, works of a similar kind provide the means of utilizing through a large tract of country, in the delta of the Kaveri, almost the entire water supply of that river. In northern India the ordinary rental of land is doubled by irrigation, and it is often more than quadrupled in Madras. " In the province of Sind another system prevails. Little rain falls there, and without irrigation there would be no cultivation. In the same way that ag- riculture in Egypt depends upon the inundation of the Nile, it depends in Sind on the floods brought down by the Indus in the season of the periodical rains. There is great room for further improvement, but the existing irrigation renders the province fairly prosperous, and gives the means of subsistence to sorde 2,400,000 people. EXTENT, VALUE, AND COST OF lESIGATINO SYSTEM. " Altogether there are in India, under the man- agement or supervision of the British Government, some 36,000 miles of canals and other works, irrigat- ing nearly 14,000,000 acres, or more than 21,000 square miles. Although some of the canals have been financially unsuccessful and others were incom- plete, the irrigation works of India, taken as a whole, yielded in 1891-2 a net return of 5^2 per cent on their cost, which amounted to about 320,300,000 rupees. It is a remarkable illustration of their great CHINA'S CANAL SYSTEM. ••5-'>-'' utility that this sum falls far short of the annual value of the crops tliej protect. In the single year of 1891-92 the estimated value of the produce of the land irrigated by works constructed by the Govern- ment was more than 550,000,000 rupees. " No similar works in other countries approach them in magnitude, and it is certain that no public works of nobler utility have ever been undertaken in the world." CAJS^ALS IlSr CHINA.* There are several features of the canal system of China, especially of the Imperial or Grand Canal, which can be studied -with profit by the people of the United States. One of these is the use of the canal for the production of food in addition to its uses as a means of transportation. Allied to this is the use of the muck which gathers at the bottom of the water- way for fertilization. Another is the use of every particle of plant life growing in and around the canal for various purposes. The Chinese secure a vast quantity of food of one sort or another from their canals. To appreciate the exact situation with respect to the waterways, it must be realized that the canals of China cover the plain country with a network of water. Leading from the * Report of United States Consul Anderson, Hangchau, China. 23 S54 PANAMA. Orand Canal in each direction are smaller canals, and from these lead still smaller canals, until there is hardly a single tract of 40 acres which is not reached by some sort of ditch, generally capable of carrying good-sized boats. The first reason for this great net- work is the needs of rice cultivation. During prac- tically all of the growing season for rice the fields are flooded. Wherever a natural waterway can be made to irrigate the rice fields it is used, but, of course, from these to the canals or larger rivers there must be waterways. Where natural streams can not thus be adapted the Chinese lead water in canals or ditches to the edge of their fields and raise it to the fields of rice by the foot-power carriers which have been de- scribed so often by tourist writers. However the water is supplied to the rice, it is evident that there must be a waterway leading to the field and back to a principal stream, which is generally a branch canal. These waterways naturally take up a considerable portion of the land, and the Chinese make as profit- able use of them as of the land itself. The first use of the waterways is for fishing. The quantity of fish taken from the canals of China an- nually is immense. The Chinese have no artificial fish hatcheries, but the supply of fish is maintained at a high point by the fact that the flooded rice fields act as hatcheries and as hiding places for the young fish until they are large enough to look out for themselves. In the United States this fish-propagation annex to VARIOUS UTILITIES OF CANALS. 355 the canals is probably neither possible nor needful in view of the work done by the State and National bureaus, but in China it is nothing less than provi- dential. CHINESE CANAXS SUPTPLY FEUTILIZER. Along the canals in China at any time may be found boatmen gathering muck from the bottom of the canal. This muck is taken in much the same manner that oysters are taken by hand on the Atlantic coast. In place of tongs are large bag-like devices on crossed bamboo poles which take in a large quantity of the ooze at once. This is emptied into the boat, and the process is repeated until the boatman has a load, when he will proceed to some neighboring farm and empty the muck, either directly on the fields — especially around the mulberry trees, which are raised for the silkworms — or in a pool, where it is taken later to the fields. From this muck the Chinese farmer will generally secure enough shellfish to pay him for his work, and the fertilizer is clear gain. The fertilizer thus secured is valuable. It is rich in nitrogen and potash and has abundant humus ele- ments. This dredging of the canals for fertilizers is the only way by which the Chinese have kept their canals in reasonably good condition for centuries. The fertilizer has paid for itself both ways. Re- cently there were complaints filed at Peking that the 356 PANAMA. ashes from the steam launclies plying on the canal were injuring the muck for fertilizing purposes, and the problem has been considered a serious one by the Chinese Government. In addition to securing fertilizers from the canals, and thus keeping the canals in condition, the farmers' help keep them purified by gathering all floating weeds, grass, and other vegetable debris that they can find upon them. Boatmen will secure great loads of water plants and grasses by skimming along the surface of the canal. The reeds growing along the canals are used for weaving baskets of several grades, and for fuel. In short, no plant life about the canal goes to waste. UTiiiizATioasr of swamp land. Where there are so many canals there is more or less swamp ground. In China this is utilized for the raising of lotus roots, from which commercial arrow- root is largely obtained. There is no reason why much of the waste swamp land in the southern portion of the United States should not be used for a similar purpose, and the commercial returns from a venture of this sort in that part of the country ought to be sat- isfactory. Where the canals of China widen, by reason of natural waterways or for other reasons, the expanse of water not needed for actual navigation is made use of in the raising of water nuts of several DUCK FAKMS IN CHINA. 357 varieties, especially what are known as water chest- nuts. These nuts are raised in immense quantities. They are, strictly speaking, bulbs rather than nuts. They are rich in arrow-root and are prolific, an acre of shallow water producing far more than an acre of well-cultivated soil planted in ordinary grain or sim- ilar crops. These nuts, also, could be produced to ad- vantage in the United States where there is land in- undated for the growing season to a depth which will give ordinary water plants a chance to thrive and which is not capable of being drained for the time be- ing. The nuts or bulbs are toothsome when roasted, and are wholesome, but probably would be more val- uable in the United States for the manufactured pro- ducts which can be secured from them. There are duck farms all along the canals in China. These are profitable. Chinese canals, as a rule, con- sidering the population upon them and their varied uses, are cleaner than canals in the United States. There are few if any factories to contaminate thera. The Chinese use of certain sewage for fertilization also prevents contamination to a great extent. The canal water is used for laundry, bath, and culinary purposes indiscriminately. A canal in the United States could never be what it is in China, but the Chinese have a number of clever devices and ideas in connection with canals which can be adopted in the United States with profit. 358 PANAMA. THBi A-NCIEiNT GKA^B CAJiJ^AI. OF CHINA. The Gfrand Canal system in China has existed in almost its present shape since about the time Colum- bus discovered America. The Grand Canal itself, ex- tending from Hangchau to Peking, is about a thou- sand miles long. Much of it is banked witli stone, and all of it is in such condition that with the ex- penditure of a little money the system could he put upon a modem and effective basis. As it is, the canal handles practically all the internal trade of Cbina, and this trade is far greater than its foreign trade. The coming of railroads will affect the canals somewhat, but not so much as may be imagined, for the railroads will very largely build up a trade of their own, A little money will make China's canal system in the future what it has been in the past, the greatest on earth.* THE ECONOMIC EFFECTS OF SHIP CANALS.I" Much has been written concerning the ship canals of the world as great works of engineering; much, too, on their political and military importance; but of the part they have played in the great economic *Mr. Anderson's closing statement is open to question when the canal system of India is considered. f J. A. Fairlie, in Annals of the American Academy of Political and Social Science, January, 1898. ECONOMIC EFFECTS OF CANALS. :55!) dianges, tJie result of the marvelous development of transport industries during this last half century, it is not so easy to find definite or satisfactory accounts. At the same time vague and indefinite statements fre- quently made indicate that their economic import- ance has been significant; and, in fact, it is only as they are influential in this way that they become com- mercially profitable undertakings. The attempt is made in this paper to trace with some degree of pre- cision these economic effects, showing how, in conse- quence of the canals, important changes have been made in business machinery, in business methods, in producing and marketing commodities, and in gen- eral economic development The ship canals do not form a connected part of the world's transportation system, and in consequence the economic results of each are, in the main, inde- pendent of all other canals. Furthermore, the eco- nomic importance of the different canals presents the widest variations. Each opens the way for the crea- tion of many and extensive carrying routes ; but, while the influence of some has been merely local, the con- sequences of others have been felt throughout the com- mercial and industrial world. These conditions sug- gest the natural method of treatment to be a consid- eration of each canal separately, tracing so far as possible the economic effects that have resulted from its existence. The Amsterdam and Manchester canals, each con- 360 PANAMA. stnicted to serve tlie needs of a single port, do not present the possibilities of any large and general economic results. The Welland, Corinth, and Kiel canals have a larger field of possibilities, but their actual consequences have as yet been small. The re- sults of these less important canals are therefore but briefly considered in this paper. The examination of the vastly more important and significant results of the Suez and St. Marys Falls canals will comprise the larger part of this study. CANALS OF HOLLAND. In a country as well supplied with smaller canals as Holland is, it was natural that the idea of a ship canal should present itself to Amsterdam, when the shallowness of the Zuyder Zee and other difficulties of approach were causing her to lose trade to her rival, Rotterdam. The idea soon took practical form, and in 1826 the Helder Canal, with an 18-foot chan- nel, offered an easier approach to the Dutch port. With the development of the shipping industry the dimensions of this canal became inadequate after a few decades, while its length (50 miles) and the diffi- cult entrance in the passes of the Texel proved ad- ditional disadvantages. To maintain the commercial position of Amsterdam the construction of a new and larger canal, built by the shortest line to the sea, was decided on, and in 18 76 the l^orth Sea Canal, MANCHESTER SHIP CANAL. 301 I5I/0 miles in length and 23 feet in depth, was opened for use. The effect of the new canal on the commerce of Amsterdam was instantaneous. For twenty years the tonnage statistics for shipping at that port had shown an almost complete stagTiation, while at Rot- terdam the shipping had trebled. In six years after the new canal was opened the tonnage entering and clearing at Amsterdam had more than doubled, ris- ing from 802,000 tons in 1876 to 1,734,000 tons in 1882. In the former year the Amsterdam shipping was but little over one-quarter that of Rotterdam ; in the latter year it was almost a half. Since 1882, however, the increase has been at a much slower rate, while the continued rapid upward movement of the Rotterdam figures shows that there is no falling off in the general trade. Evidently the larger and deep- er draft vessels now constructed find the 23-foot chan- nel too shallow, and an enlargement of the canal wall be necessary to enable Amsterdam to retain even her existing position. MANCHESTEK SHIP CANAI^ The Manchester Ship Canal resembles the Amster- dam Canal in connecting a large city with the open sea, and in being constructed with a view to its effects on the city at its inland terminus. There is the dif- ference, however, that the promoters of tlie English 362 PANAMA. canal aim. not simply at retaining and developing- an already existing trade, but at creating a new port. The expectation of the promoters and of the corpora- tion of Manchester, which has bonded itself heavily to secure the completion of the canal, is that the raw materials for Manchester manufactures will be brought via the canal, this route saving the heavy expenses connected with the transfer to the railroad at Liverpool. It is perhaps too early to say whether these expectations will be realized ; although the esti- mate of a traffic of 3,000,000 tons within two years of opening has not been fulfilled, a large trade has been developed. The canal was opened on January 1, 1894, and during the first year 1,280 seagoing ves- sels and 1,660 boats for coast traffic came up to Man- chester. For the nine months ending September, 1896, the traffic was 1,300,000 tons, an increase of 350,000 tons over the corresponding period of the year before.* This development within three years of a trade approaching that of Amsterdam in volume is not without significance, and with a continued in- crease Manchester in a few years will become an im- portant shipping port.t Like the Manchester Canal, the Corinth and Kiel * In 1900 it exceeded 3,000,000 tons and has steadily in- creased since. t From the investor's point of view, the results of the Man- chester Canal are more discouraging because of the heavy expense of construction, it being almost equal to the cost of the Suez Canal, THE QUESTION OF PROFIT. 303 canals have not produced immediate effects equal to the anticipations of their promoters. The Corintli Canal was opened in October, 1893, and the total traffic at the end of December, 1895 (twenty-six months), had been but 4,589 ships, with a tonnage of 596,000 tons. The first year's operation of the Kiel Canal between the Baltic and North seas showed a record of 7,500 steamers and 9,300 sailing vessels, but these were mostly small vessels, and the receipts from tolls were under 900,000 marks, against an es- timate of 5,000,000 marks. It is evident, however, that these canals have been in operation too short a time for a full development of their possibilities. The future may demonstrate that these routes offer a net advantage to shipping on account of the saving in distances and the greater safety from shipwreck; and a considerable traffic may develop with important economic results. The Welland Canal does not seem at first sight to offer this hopeful outlook. The present 14-foot channel has been in use since 1887, yet the traffic does not exceed 1,000,000 tons a year. But a deepening of the channel and the enlargement of the locks, so as to reduce the number, might result in a considerable increase in the traffic. There may be latent possibilities in the traffic of each of these canals we have been considering, but thus far the great bulk of the trade they were in- tended to get remains undiverted from old routes, 364 . PANAMA. little new trade has been developed, and no impor- tant economic results have appeared. This, how- ever, is not the case with the Suez and St. Marys canals. THE SUEZ CAN-AU In December, 1858, a company was found to un- dertake M. de Lesseps' audacious scheme of connect- ing the Mediterranean and Red seas; in the follow- ing spring work was commenced, and in 1869 the Suez Canal opened a new water route to the East. It takes but a glance at the statistics of traffic to notice the enormous difference between the trade that has developed through the Suez Canal and that of the canals already considered. Beginning in 1870, with 486 vessels, having a tonnage of 436,000 tons, there was a steady increase until 1875, when it had reached nearly 1,500 ships and over 2,000,000 tons. After a few years of quiescence came a second period of rapid increase, from 1880 to 1883, in the latter year the figures of 3,300 ships and 5,800,000 tons being reached. Since then there has been a slowly in- creasing tonnage, reaching the maximum figure of 8,700,000 tons in 1891, but falling off somewhat since that year. In 1896 the figures were 3,409 ships with a tonnage of 8,594,307.* * The tonnage for the year 190G will probably exceed 18,000,000. EFFECT OF SUEZ CANAL ON SHIPPING. 36f> The importance of these figures may be made clear- er by recalling the fact that the foreign tonnage en- tering at the port of ITew York has rarely exceeded 7,500,000 tons in any year, and that the foreign ton- nage for all the ports of the United States, both en- tering and clearing, is about 35,000,000 tons; that is, the traffic through the Suez Canal, measured by vol- ume, is almost a quarter of the total foreign trade of the United States. But if measured by value, the importance of the canal traffic is seen to be much greater. The imports and exports of India, via the Suez Canal, are equal in value to $360,000,000, vt'hich is nearly one-quarter of the value of the for- eign trade of the United States. As the Indian trade constitutes rather less than one-half the total traffic of the Suez Canal, the value of the whole of that traffic must be not far from a half of the foreign trade of the United States. EFFECT OF SUEZ CANAL ON SHIPPING, The development of a trade of such an extent and value by a new route within the space of twenty-five years could not but have an important and far-reach- ing influence on the economic interests of the world. Perhaps the most striking results of the opening of the canal route to the East were those on the machin- ery of trade — meaning by this term both the ma- terial appliances and the business organization of see PANAMA. ' trade. One effect might have been in part antici- pated. The new route saved nearly 3,000 marine leagues on the voyage from the ports of western Europe to the East, or almost half the distance to Bombay. The obvious result of the use of the new route would be that half of the vessels engaged in the Eastern trade would be out of employment. In fact, however, the change came more indirectly. Sailing vessels did not find it advantageous to use the canal, and continued on the old route around the Cape of Good Hope. But the canal, by making prac- ticable the use of steamships in the oriental trade, brought about an even greater revolution in the character of the shipping business to the East. By the Cape route coaling places were few, and the facilities for coaling expensive. The consequence was that the enormous, expense of coaling at these out- of-the-way places, with the loss of freight room for the extra space needed for coal, made tlie use of steamers unprofitable. But by the canal route a steamer could coal at Gibraltar, Malta, Port Said, and Aden, where coal could be furnished at moder- ate rates, while the space saved from coal could be used to carry a larger cargo. Accordingly, a large number of new iron screw steamers were soon con- structed for the trade with the East, and replaced a large percentage of the sailing vessels. It has been estimated that 2,000,000 tons of vessels were thus thrown out of employment, and the effect of this can ORIENTAL STEAMSHIP COMPANIES. 307 be seen in the immediate reduction in the tonnage of sailing vessels. In 1869 the sailing tonnage in the British foreign trade was 3,600,000 tons ; in 1876 it was but 3,230,000 tons. GREAT ORIENTAX. STEAMSHIP COMPANIES. In the construction of the new steamers for the canal trade two lines already in existence — the Pen- insular and Oriental Steamship Company and the Messageries Compagnie — took prominent parts. But new companies also were rapidly organized, which built steamers and established new lines to the East, among which may be noted the British India Steam IN^avigation Company, the Clan Line, the Aus- tro-Hungarian Lloyds Company, the Italian Steam iN'avigation Company, and the Eubbotino Company, of Genoa. It is not possible to get at the amount of shipbuilding made necessary by the change in the kind of ships used in the Eastern trade, but some idea of the importance of the change may be seen by noting the fact that the total steam tonnage in the British foreign trade increased from 650,000 tons in 1869 to 1,500,000 tons in 1876. It would, of course, be possible to learn the number and tonnage of ships now engaged in the trade between Europe and the East, but to account for all of this by the Suez Canal would be to exaggerate its effects". '^'^^- provements in marine engines and in the constructkn. 368 1PANAMA. of steamers make much longer steamer voyages pos- sible to-day than were possible in 1870, as is shown by the lines to Australia and across the Pacific Ocean. It is, therefore, certain that if no Suez Canal had been built, there would have been by this time steam- ers in the Eastern trade ; but the change would have come at a much later period, and sailing vessels would continue to carry a large, perhaps a dominant, share of the traffic. The effect of the Suez Canal was to make the transition from sail to steam sharp and decisive, and to bring it about in the decade 1870-1880. AlSr ANTICIPATED EFFECT NOT EEALIZED. One change in the shipping industry that was ex- pected from the construction of the Suez Canal has not been realized. It was predicted that the geo- graphical advantage given to the Mediterranean ports by the new route would soon enable them to regain the position they had held in the Middle Ages as the carriers of Eastern produce to the markets of Europe. In England it was felt that the canal would seriously threaten British maritime supremacy, but the results have been otherwise. It was only in England that the capital was at hand to build the large screw steamers which alone could profitably use the canal, and from the start three-fourths of the vessels using the canal have been British. Of late years there has CHANGE IN SHIPPING TRADE. 369 been a slight decline in the percentage of British ves- sels, but this has been due not to an increase in the ships of southern European nations, but to an in- crease in German, Dutch, and Belgian vessels. But while the carrying trade is still in British ves- sels a much larger and a growing share of the traffic is carried from the East directly to the Continent, and England has declined in relative importance as a warehousing and distributing point for Eastern goods. Under the old regime of sailing vessels around the Cape, when voyages from India took a good part of a year, and the time of arrival could not be calculated on within a month or two, it v^ras neces- sary that large stocks of goods should be kept on hand to enable dealers to meet the varying demand for their goods. Steamers by way of the Suez Canal make the voyage in thirty days and the time of their arrival can be regulated within a day. Shorter voy- ages and punctuality of arrivals make it possible for local dealers both in England and on the Continent to order directly from the East and the change in the method of this business rendered useless to a large extent the immense warehouses at London, Liver- pool, and other English ports. A few statistics will show the extent to which direct trade between the East and the Continent has taken the place of trade via England. In 1870 the value of exports from India to the United Kingdom was nearly $70,000,000, to the rest of Europe $13,000,000; in 1893-94 the 24 370 PANAMA. value of Indian exports to the United Kingdom was $93,000,000, to other European countries ^85,000,- 000. In other words, while the total export trade of India and the total exports to Europe have doubled in value within twenty-three years, and the exports to European countries other than Great Britain have multiplied sixfold, the exports from India to the United Kingdom have increased but 40 per cent. The proportion of Indian exports to Europe, that are landed first in the United Kingdom, declined from 83 to 53 per cent. DIRECT EKPOtRTS FROM INBIA TO EHUEOPB. This change in the direction of trade has not been simply the transfer of the distributing points from England to the Mediterranean ports of southern Europe. The towns of Italy, Greece, and southern France have been almost as greatly disappointed in their expectations of becoming trade centers as in their hopes of controlling the shipping trade to the East through the operation of the Suez Canal. To be sure there has been a heavy increase in Indian ex- ports to Italy, Austria, and Russia; and the Mediter- ranean ports, notably Genoa, have increased in im- portance. But the most striking feature of the change in the direction of Indian exports lies in the increased trafiic to France, Holland, Belgium, and, above all, to Germany. The statistics of Indian ex- WAREHOUSK DISTlJiJiLTION SYSTFll. '571 fKjrts to theee countriefl show that there ia no longer any one country pre-eminent as a distributing point for Eastern prrxluce, but that all Europe trades di- rectly with the East. Nevertheless, with this great change in the character of the Indian export trade the imports of European goods to India continue, as in the days before the canal, to come almost entirely from England. The termination of the warehouse distribution sj»- tew. of England was one of the forces which led t/j the disappearance of the class of merchant princes who had hitherto monopolized tiie Eastern trade. The system of bank discounts and commercial loans, by enabling men of ability to secure capital at low rates of interest, also played a large part in driving out of trade the old houses doing business on their own capital, from which they expe'^rtied large rates of interest. But as long as large stocks of goods had to be kept on hand for six months or more at a time, it was difficult for the nerw business man to get the credit that would enable him to supplant the old- established houses in the eastern trade. When, how- ever, the new route by the Suez Canal, by bringing steamers into use, enabled a cargo to be sold and de- livered wiliiin a month after the order had been sent the advantage? on the side of the man working with borrowed capital were decisive. As a result of the opening of tiic Suez Canal sail- ing vessels, warehouses, merchant princes, dealers in 372 PANAMA. six montlis' bills found their old occupations slipping away. The old modes and channels of business were altered and new adjustments had to be made. In the meantime the confusion and disturbances in the busi- ness world were so great that the London Economist has said that they constituted one great general cause for the universal commercial and industrial depres- sion and disturbance of 1873. The effect of the opening of the Suez Canal and the new route to the East on the production and mar- keting of Eastern produce is by no means so easy to trace as the effects on the machinery of trade. If all the necessary statistical material were at hand it would be an almost endless task to disentangle from the complex results of complicated causes the exact changes that have been due to the canal. It is pos- sible, however, to see the effects produced by the canal in the ease of a few leading commodities, and in other respects the general tendency of the new route can be recognized. EFFECT OliT CERTAIN COMMODITIES. A few commodities will serve to show that not every article in the Eastern trade has been affected by the new route and the new methods of business brought about by it. The exports of Indian cotton have remained at about the same figure since the opening of the canal, showing that for that article TEA AND RICE TRADES. 37n the sailing vessel and tlie Cape route provided aa cheap a road as the canal route. The exports of In- dian wool and of spices have increased to some ex- tent, but with nothing to indicate that the increase is greater than would have taken place in the ordinary development of trade. The exports of tea from India show an astonishing increase from 11,000,000 pounds in 18Y0 to 120,000,000 in 1893-94. But with an article of such high value the direct effects of the canal through cheaper freight rates can have had little influence here, though indirectly the increased Indian production may be due in part to the easier communication with the West that was made pos- sible by the canal. In the earlier arrival of the new season's teas the influence of the canal in shortening the time from India to England is clearly evident. Tea imports to England in July, 1870, were 711,000 pounds; in July, 1871, 4,000,000 pounds; in July, 1872, 23,000,000 pounds — the enormous increase being the direct result of the use of steamers via the canal in place of sailing vessels and the long Cape voyage. Rice is a commodity the trade in which has been subject to important changes as a direct result of the use of the canal route to the East. Rice is a staple Italian cereal and a leading article of Italian export. It had formerly been imported into European coun- tries by the Cape route, but by the canal route East- ern rice was enabled to reach markets in southern 374 PANAMA. Europe formerly inaccessible, and even to be sold in Italy itself, much to the displeasure of the Italian producers. In the six years following the opening of the Suez Canal the export of Indian rice doubled and has continued to increase since. It constitutes the largest single item in the export trade of India. INDIA AS A WHEAT-ESPOBTING COUNTKT. The creation of the wheat export trade of India is due directly to the opening of the Suez Canal route to Europe. Efforts had been made to carry wheat around the Cape, but the liability to heat during the long voyage and the loss from weevil in the cargo made all such attempts unsuccessful. The possibili- ty of carrying wheat by the new and shorter route was soon demonstrated, and a trade was established that has grown until India has become the second wheat-exporting country in the world. In 1870 the wheat exports of India were 130,000 bushels; in 1876, over 4,000,000 bushels; in 1883, 35,000,000 bushels; in 1891, 50,000,000 bushels. Since the last date there has been a considerable decline in the extent of the export owing to poor crops, but under ordinary conditions the Indian pro- duct is an important item in the wheat market of the world. It will be observed that the great increase in this Indian export trade did not begin until after th© year 1876. The extension at that time came INDIAN IMPORT TRADE. 375 about through the reduction in freight rates made possible bj improved steamers. It is nevertheless true that the establishment of the wheat export trade of India and the possibility of any such trade exist- ing at all is to be ascribed to the Suez Canal. Of the imports into India the direct influence of the Suez Canal seems to be striking in the case of but one commodity — petroleum from the Russian oil fields at Batoum. Before the discovery of these fields the imports of oil into India were insignificant. The value of such imports in 1869 was about $110,- 000 and in 18Y6 had risen only to $175,000. But when the Batoum oil fields were discovered an exten- sive trade to India, via the Suez Canal, immediately developed. In 1880 the imports of oil into India were 6,500,000 gallons, valued at $1,360,000; in 1885 this had risen to 26,300,000 gallons; in 1890, to 51,800,000 gallons, and in 1893, to 86,600,000 gallons. For a considerable period the Indian de- mand absorbed more than half the total product of the Russian oil wells, and to-day it takes more than a quarter of their output As the distance from Ba- toum to India around Africa is as great as that from the American oil fields, it does not seem possible that any of this Russian oil would have found its way to India by the Cape route. Some trade might have arisen by the overland route to India, which, when railroad connections from the Caspian Sea to India are complete, would have become important, but the 376 PANAMA. oil imports of India as ihej stand to-day are made possible only by the existence of the canal route. It may be well while dealing wi^ particular com- modities to note that nearly 1,000,000 tons of coal are annually brought to Port Said for the steamers passing through the canal. This coal makes a con- siderable item in the Mediterranean trade due to the Suez Canal. If the question be asked, What is the total signifi- cance of the Suez Canal on the production and mar- keting of commodities ? the answer can be given only in general terms. A superficial observer might base an estimate on the increase in Indian trade with Europe from $280,000,000 in 1870 to $700,000,- 000 in 1894. If, however, it is borne in mind that this increase has been at a less proportionate rate than that from 1850 to 1870 without the canal, and if the large extensions of the foreign trade of Aus- tralia, South Africa, Argentina, and the United States within the last twenty years are also remem- bered, it must be evident that other and more general causes than the opening of the canal have affected the development of India. On the other hand, to limit the effects of the canal to those results which can be directly traced, such as the development of the trade in rice, wheat, and petroleum, is to err by under- statement. The greater ease of communication by the canal route has brought much more Western life into personal contact with the East, and this has had INFLUENCE OF SUEZ CANAL. -T: muct to do with tlie development not only of the foreign trade of the Eastern countries, but also of their internal resources. One phase of this general development in which the canal has had an indirect share may be seen in the tonnage statistics of some of the Eastern countries. From 1870 to 1894 the total foreign tonnage of India rose from 4,000,000 tons to 7,660,000 ; of Ceylon from 1,420,000 tons to 6,360,- 000 tons; of the Straits Settlements from 1,650,000 tons to 10,000,000 tons ; of Hongkong from 2,640,- 000 tons to 10,460,000 tons. How much of this in- crease is to be ascribed to the canal and how much to other causes can not be calculated or even roughly estimated. We must remain content, in this part of our inquiry, witli recognizing that the canal is one of the factors in the great economic development of southern Asia. To recapitulate : The construction of the Suez Canal has led to the immediate and rapid develop- ment of the use of steamers in the Eastern trade, has brought about the disuse of most sailing vessels in that trade, has caused the decline of the warehouse distribution system of England, and the rise of a di- rect trade between the East and the consuming coun- tries of Europe. The shorter and more direct route has also made possible the wheat export trade of In- dia, and the trade in oil from Batoum to India, and has doubled the rice exports of the latter country. The canal has also been one of the many factors in 378 PANAMA. other important economic changes, among which may be mentioned the crisis of 1873 and the general de- velopment of trade and industry in the East. THE ST. MAKTS FALLS CANAI« There has been a canal around the falls in St. Marys River between Lake Superior and Lake Mich- igan, available for vessels drawing not more than 12 feet of water, from 1855 on, but fifteen years later the average annual increase of 21 per cent, of each year's freight traffic over that of the preceding year made it so evident the canal would soon be inade- quate for the increasing commerce that the United States Government began improvements, and by 1881 had completed a 17-foot channel between the lakes, and provided a 515-foot lock, with a single lift of 20 feet, for carrying vessels from the level of one lake to that of the other. The continued growth of the traf- fic led to an improved 20-foot channel, provided with an 800-foot lock in 1896. Following the example of the United States the Dominion Government built a canal around the Canadian side of the falls in 1895. TRAFFIC OF STJEZ AND BT. MABt's CANAXS COMPARED. The volume of traffic through this canal far ex- SUEZ AND ST. MARY'S COMrARED. 379 ceeds that through the Suez Canal. In 1881 the traffic of the old St. Marys Tails Canal was 1,560,- 000 tons, as against 4,130,000 tons through the Suez Canal; but with the enlargement of the American canal a rapid increase in traffic immediately de- veloped. By 1889 it equaled that of the Suez Canal (about 7,000,000 tons in each) ; in 1895 a tonnage of 15,000,000 tons went through the St. Marys Falls Canal, as compared with 8,500,000 tons through the Suez Canal; and in 1901 the figures for the St. Marys Falls Canal were 28,403,065 tons.* The present traffic through the American canal exceeds the total foreign trade of the port of New York and is equal to nearly half the total volume of the foreign trade of the United States. In value the traffic through St. Marys Falls Canal presents less impos- ing figures, though even in this respect it is by no means insignificant. The value of the freight pass- ing through the canal in 1896 is estimated at $195,- 000,000, and in 1901 at $290,000,000.t The Indian traffic alone through the Suez Canal in 1896 is valued 'at $360,000,000. ITevertheless, a trade increasing * In 1905 they were 36,617,699. f The discovery and utilization of the mineral wealth of the Great Lakes region, supplemented by timely appropriations by Congress for the improvement of navigation, have brought about a maritime growth in that portion of our country which is without parallel in maritime history. Our lake fleet alone is greater than the fleet of any foreign nation except Great Britain or Germany. 380 PANAMA. nearly $100,000,000 a year witlim a period of five years, may, prima facie, be expected to have had im- portant economic effects. As in the case of the Suez Canal the most striking results have been on the machinery of trade, the in- fluence of the St. Marys Canal on the shipping in- dustry of the Great Lakes being especially marked. It is not too much to say that the development of the carrying trade on the Great Lakes both in the num- ber and kind of vessels used is due almost wholly to the " Soo " Canal. From 1881 to 1895 the volume of commerce through the Detroit River increased from 17,500,000 tons to 29,000,000 tons. During the same period the volume of commerce through the St. Marys Falls Canal increased by 13,500,000 tons, and as the larger share of the canal traffic goes through the Detroit River to Lake Erie ports, the increase in the traffic through the Detroit River is seen to have been mainly in the traffic from Lake Superior made possible by the existence of the canal and locks at Sault Ste. Marie. This increase in traffic has meant a corresponding increase in the number of vessels in the lake-carrying trade, and probably half of the 3,230 vessels on the lakes are employed in business depending on the canal. Between 1883 and 1897 the total tonnage on the lakes increased from 720,000 to 1,410,000 tons, the increase being more than the total increase in the American merchant marine dur- ing this time. Further, while in 1883 the lake ton- CHANGES IN LAKE SHIPPING. 381 nage was but a sixth of the total American mercHaniB marine, in 1897 it was nearly two-sevenths of that total. CHANGES iW THE LAKES SHIPPING. l^ot only has there been this increase in traffic and shipping due to the canal, but within the last ten years there has been a rapid and striking change in the material and structure of the ships on the Great Lakes, which could hardly have taken place had it not been for the canal. There has not been any sudden displacement of the old vessels such as was occasioned by the Suez Canal, but the new ships built for the in- creased traffic and to replace those that were out are not sailing vessels of wood, but large steel and iron steamships with double bottoms, water-tight compartr ments, triple-expansion engines, and modern electri- cal appliances. In 1870 there were 1,699 sailing vessels and but 642 steamers on the lakes; in 1897 there were 993 sailing vessels and 1775 steamers. In 1870 the average tonnage of vessels on the lakes was 175 tons; in 1897 it was 440 tons. In 1880 a 1,000-ton vessel was a rarity. In 1895 there were five lines owning together 60 steamships of from 1,750 to 3,000 tons, and in 1901 over 100 steamers and sailing vessels from 5,000 to 8,000 tons, and 10 over 8,000 tons. The " Soo " Canal is connected in two ways with 382 PANAMA. these changes in the lake shipping. In the first place, the increase in lake traffic, which has necessitated large numbers of new ships and thus hastened the in- troduction of larger and modem ships, has been, as we have seen, mainly in the traffic from and to Lake Superior, made possible by the canal; in the second place, the iron ore from which the iron and steel ships are constructed comes from the iron mines of north- ern Michigan and Wisconsin, which have been made available by the canal route from the mines to the ports in the southern lakes. EFFECT OF " SOO " CANAL ON" lEON BUSINESS. The mention of these iron ores brings up the second phase of the economic effects of the " Soo " Canal — those on the production and marketing of commodi- ties. The case of iron and steel may well be given the first place as the largest item in the traffic through the canal. The most striking features in the iron and steel industries since 1880 have been the decline in the importance of the Pennyslvania mines, the de- velopment of the Lake Superior region, and the trans- fer of the manufacture of pig iron and steel from the east to the west of the Alleghenies. Several factors have served to bring about this remarkable shift. The Superior ores are of the quality available for making steel by the Bessemer process ; the large de- posits have made profitable the use of labor-saving TRADE OF THE ORE REGION. -^^^ machinery in mining and the construction of special terminals for loading and unloading the ore. But an equally important factor is the low rates of freight from the mines to the manufacturing points in Ohio, western Pennsylvania, and Illinois by the water route through the canal. In 1895 the rate from the mines to Erie ports was 80 cents per ton, equal to nine-tenths of a mill per ton-mile. The lowest rail- road rate per ton-mile would equal a charge of $2.59 a ton from Duluth to Cleveland; and as the price of red hematite ore of Bessemer quality at Cleveland in 1895 was $2.80 a ton, the dependence of Lake Superior ore on the water route may be easily seen. An interesting case of interacting causes is to be seen in the relation between the Lake Superior iron mines and the shipping on the Great Lakes. It was the developemnt of the iron mines which furnished the trade of the large steel steamships, and also the material for constructing them, while the use of the larger and better ships has lowered freight rates and still further developed the iron industry. The development of the Lake Superior iron mines has been an important factor in causing the great re- duction in the price of Bessemer steel during the last sixteen years, and it is this reduction that has made possible the largely increased use of steel in ship- building, in bridges ; in heavier rails, and in the tall buildings of our large cities. Indirectly, then, all these improvements have depended to a large degree 384 PANAMA. i on the existence of the St. Marys Falls Canal. The extent of this relation may be indicated in some de- gree by the statistics of the iron-ore movement through the canal. From 1860 to 1881 the amount of iron ore passing through the canal increased from 100,000 tons to 750,000 tons per year, but since the construction of the larger lock the increase has been at a much greater rate. In 1887, 2,500,000 tons went through the canal; and for each of the years 1895, 1896, 8,000,000 tons; and in 1901, 18,000,000 tons. Throughout the period since 1881 the traffic in iron ore has formed about one-half the total tonnage pass- ing through the canal. The figures for 1895 and 1896 are equal to four-fifths of the total production of the Lake Superior mines, which in turn constitutes two-thirds of the total iron-ore output of the United States. ENORMOUS WHEAT TEAFFTC OF THE LAKES. The most important part of the traffic through the " Soo " Canal, however, is not iron ore, but wheat and flour and other grains. The value of these items in the canal traffic is one and a half times that of the iron ore, and equal to $84,000,000, or nearly a third of the valuation of the total commerce through the canal. In volume the traffic has grown from 3,500,000 bushels of wheat and 600,000 bar- rels of flour in 1881 to 63,250,000 bushels of wheat EFFECT OF CANALS ON WHEAT TRADE. 385 and nearly 9,000,000 barrels of flour in 1896. Tte last figures account for a large fraction of the 467,- 000,000 bushels of wheat raised in the United States in 1896, being in fact almost equal to that portion of the crop exported. The movement of wheat through the canal just about equals the total receipts at Buffalo and Erie. It is not, however, possible to give the canal alone the credit for having developed this wheat trade. The production of the wheat was only made pos- sible by the construction of railroads through Min- nesota and the Dakotas, and these same railroads provide a means of getting the wheat to market via Chicago. But if all-rail rates had to be paid, Min- nesota and Dakota wheat and flour could not com- pete so well with that from the country near the eastern markets as it does by having water rates from Duluth to Buffalo. It should also be borne in mind that railroad building in Dakota and Minnesota be- gan on a large scale only after the enlargement of the canal, when it was seen that they could connect with a through direct water route to Buffalo. The canal has therefore been an important factor in de- veloping wheat production in the countiy west of Lake Superior. Besides wheat there has been a considerable traffic in other grain, but this first assumed large dimensions in the year 1896, when 27,000,000 bushels of gi-ain other than wheat went through the canal, as against 25 386 PAJ!^AMA. 8,000,000 bushels in the previous year. As yet this is a less important item than that of wheat, but the relations between the canal and the development of the traffic are the same in both cases. DEVELOPMENT OF LUMBER TEADE, The same relations can also be traced in the de- velopment of the lumber traffic. This grew from 82,000,000 feet in 1881 to 685,000,000 feet in 1896. As in the case of wheat, a considerable increase would have resulted from the construction of railroads, but the construction of railroads has been hastened and increased by the existence of the Avater route to the East through the canal, and it is only by cheap water rates that such a huge traffic has been developed. If, however, the cutting down of forests is the true explanation of the destructive spring floods in the Mississippi Valley, the encouragement given to the lumber traffic by the canal may not, after all, have been of economic advantage to the country as a whole. The other important item in the south-bound traffic through the canal does not seem to have been depend- ent on the canal. The amount of copper going by this route increased from 29,000 tons in 1881 to 116,000 tons in 1896 ; but the cheaper freights made possible by the canal can have had little effect in pro- moting the production of an article valued at $200 a ton. INCREASES OF POPULATION. 387 Of the nortli-bonnd traffic the only item of large dimensions is that of coal. In 1881, 295,000 tons of coal passed through the canal ; in 1896, over 3,- 000,000 tons. The whole of this traffic may be said to have been created by the canal. The lowest rail- road rates wonld be too high to allow any coal to be carried to the country around Lake Superior, but the lake steamers, going back empty for their cargoes of iron ore and wheat, can afford to carry coal at rates which seem incredible. In 1890 the average freight rate on coal from Buffalo to Duluth was 45 cents a ton. It is through such rates that the northward movement of coal and the consequent development of a large iron manufacturing industry near the ore mines are made possible. INCREASES OF POPtTLATIOlSr DUE TO THE CAITAL. The geographical changes in production that have resulted from the operation of the St. Marys Falls Canal have been accompanied by important move- ments of population. A definite connection can be shown between the canal and certain particular popu- lation movements, but with other changes the canal has been only one of several factors. The increase of population around the shores of Lake Superior may fairly be ascribed to the development which has been given to that country by the canal. Taking the coim- ties bordering on Lake Superior, we find that from 388 PANAMA. 1880 to 1890 the population of the Michigan coun- ties increased from 61,750 to 116,600; of the Wis- consin counties, from 8,000 to 41,000, and of the Minnesota counties, from 6,400 to 54,700. The total increase is not a startling figure in the United States, but compared with the percentage increase in these same States as a whole the result is striking. During the decade the population of Michigan and Wisconsin increased in each case about 27 per cent, and of Minnesota about 70 per cent; in the Lake Superior counties the percentage of increase was, in Michigan 90 per cent, in Wisconsin 400 per cent, and in Minnesota 800 per cent. The only explanation of the difference is that new lines of industry have been opened up by the larger "" Soo " Canal. One con- spicuous feature of this increase of population in the Lake Superior region is the development of cities. Of the total increase of 136,000, 72,000 occurs in the six cities of Duluth, Superior, Ishpeming, Ash- land, Marquette, and Iron Mountain. Duluth, from a town of 3,500 in 1880, had become a city of 33,000 in 1890, and six years later had a population of 60,- 000. Ishpeming increased during the ten years from 6,000 to 11,000; Superior, from 4,700 to 9,000, while the other three places were not in existence in 1880, but had populations between 8,500 and 12,- 000 in 1890. Among the movements of population where the ef- fects of the " Soo " Canal have been greater but are COMPARATIVE REVIEW. 389 not so exactly calculable, may be mentioned the settle- ment of the Red River Valley and the increase in the cities on and near the southern shores of Lake Erie. The first of these is connected directly with the de- velopment of wheat production in that region, in which, as has been seen, the canal had a most impor- tant influence. The second is due, in large part, to the development of the iron and steel manufacturing industries, brought about by the use of iron ore from the Lake Superior region. INFLUENCES OF ST. MARy's AND SUEZ CANALS. A comparison of the influence of the St. Marys Falls Canal with that of the Suez Canal, shows that both have led to a rapid change in the material and character of ships used, that brought about by the Suez Canal being the most important, both in the ex- tent of new shipping and in the consequent disloca- tion of old forms of industry. Both canals, too, have led to important changes in the sources of production of several commodities, and the effects of the Ameri- can canal on iron and wheat production are greater than any effects traceable to the Suez Canal. In the case of the more general changes in which the extent of the influence of the canals can not be measured, no accurate comparison between the two is possible, but considering the gTeater area and population in Asia p 390 MANAMA. affected by the Suez Canal, it is evident that its influ- ences on general development have been greater. Both canals have led to the production of wheat on a large scale in areas hitherto unused for that pur- pose, these districts constituting a large part of the total increase in the area devoted to wheat production. In consequence of this total increase of wheat-raising area during the last fifteen years, and the cheaper transportation to European markets, there has been a large reduction in the normal price of wheat. Cheaper food and less distress from famines and the fall in prices received by farmers in the old wheat- producing districts have been due in no small degree to the canals. 1 *Jf> lOS *0 -T" ►'ii^^^L^W* 40^ ^^•^^. «J^ S' ,0 4 c> o '<- -^0^ X 4 C) .^^' ^ -^ ''^. -^^0^ c° .>a:^^^ .^.'^ •^^ cO-*. --!^^y y^^ ■^^: -.0 . , H> , " (1 ^ *-*. DOBBS BROS. LIBRARY BINOINQ AlT/JbGUSTWe iv 6 » " « • '^