the Government of Colombia subscribing for
50,000 i-baies. The property and assets of the
old Panama Company were now transferred to the
new Panama Company. ^Vn international tech-
nical commission composed ot ten eminent en-
gineers, representing the United States, Great
Britain, Germany, and France, was appointed to
investigate the subject, and in November, 1899,
reported unanimously in favor of the feasibility
and practicability of completing the canal. They
reported that the canal was already two-fifths
completed, that not more than $102,400,000
would be needed to finish the work, and that the
time need not exceed ten years. The work of
construction was then resumed on a small scale.
Up to June 30, 1899, the new company had ex-
pended about $8,000,000 and had excavated about
5,000,000 cubic yards of earth.
In 1899 President McKinlcy was authorized to appoint a commission of eminent engineers and other persons to investigate the whole question of canal possibilities on the Isthmus from Nic- aragua to Colombia. After an exhaustive investi- gation the commission reported in favor of the Nicaragua route, chietiv on financial grounds, but upon tiie offer of the Panama Canal Company to sell its propertv and franchises to the Inited States for $40,000,000, its value as estimated by the commission, the commission made a supple- mentary report advocating the acceptance of the offer and the completion of the unfinished canal by way of Panama. In Congress discussion of the re- spective advantages of the Panama and Nicaragua routes was long and earnest, finally ending in June, 1902. by the enactment of a law autliori/.ing the President of the United States to purcliase the property and franchises of the Panama Canal Company for .$40,000,000, provided a satisfacton" title could be secured, and further authorizing the Seeretarv of War in that event to construct the canal at a cost not to exceed $1.30.000.000. Negotiations were at once entered upon with the Republic of Colombia to secure the necessary con- cessions, and a thorough investigation was begun to ascertain the character of the legal title of the Panama Company to the property which it proposed to sell. Upon investigation it was found that the company had a valid title, and on February 16, 1903. the Government of the United States formally accepted the offer of the company to sell its rights and property for $40,000,000, subject to the ratification of the treaty with Colombia then pending before the Senate. This treaty had been concluded after a long negotia- tion between the two governments, lasting through a period of six months, the delay being caused by disagreement of the two governments as to the price to be paid for the concession. In .lanuary. 1903, the treaty was laid before the Senate for ratification, but on account of oppo- sition of a few Senators, under the leadership of Morgan, of Alabama, who favored the Nicaragua route, the Fifty-seventh Congress closed without action on it. An extra session of the Senate was called to meet on March .5th. and after two weeks of debate the treaty was ratified on March 18th by a vote of 73 to 5. The treaty provides that the United States shall pay to the Repiblio of Colombia the sum of $10,000,000 in gold in cash for the concessions, to be paid upon the exchange of ratifications, and an annuity of $2.50,000. beginning nine years after the date of ratification, the latter sum being a compromise between the $000,000 demanded by Colombia and the $100,000 offered by the United Slates. The concession authorizes the new Panama Company to transfer to the United States all its property and franchises, including the J'anama Railroad. The lease is for 100 years, with the privilege of perpetual renewal. The treaty further provides that the territory comprising the canal zone shall be neutral and under the guarantee of both gov- ernments. If it should become necessary at any time to employ armed forces to maintain the safety of the canal or insure its public use, the Republic of Colombia agrees to provide the neces- sary troops. Provision is made for a joint Amer- ican and Colombian commi.ssion to establish and enforce sanitary and police reg^ilations. Colom- bia agrees not to cede or lease any territorj' to any foreign power within certain limits for coal- ing stations, fortifications, etc., that might inter- fere with the construction, protection, safety, and free use of the canal, and the United States agrees to support Colombia in preventing the occupation of any such territoiy. Panama and Colon are to be free ports for vessels and goods intended to pass through the canal, which, it is agreed, shall be open for traffic within fourteen years, unless the United States should determine to make the canal a sea-level enterprise, in whidi event the time is to be extended ten years longer. In the summer of 1903 the treaty was before the Colombian Government for ratification. Already by the Hay-Pauncefote treaty (q.v. ) of Novem- ber, 1901, superseding the Clayton-Bulwer treaty ( q.v. ) , the sole right of the United States to construct, maintain, and police the canal was conceded by Great Britain, which power at the same time withdrew its claim to a joint guaranty of the neutrality of the canal upon the agreement of the United States to accept substantially the rules now governing the free navigation of the Suez Canal.
The principal advantages claimed for the Pan- ama route are: First, the existence of excellent natural harbors at both termini of the propo.sed canal and the existence of a line of railroad across the Isthmus, which will make it practica- ble to begin work without delay; second, the estimated annual cost of operating the Panama Canal will be $1,300,000 less than the corre- sponding charges for the Nicaragua Canal; third, the Panama route is 134.57 miles shorter in length than the Nicaragua route, ha.s less summit elevation, will have fewer locks. 26.44 miles less curvature, and will require but twelve hours time for a deep-draught vessel to pass through, whereas it would require 33 hours in the case of the Nicaragua Canal. The estimated time for constructing the Nicaragua Canal is about six years, the cut through the divide we.st of the lake consuming about four years. The time estimated for completing the Panama Canal is eight years, the excavation through the Culebra section (43.000,000 cubic yards of hard clay) being the greatest obstacle. The estimated cost of constructing the two canals, including the $40.- 000,000 to be paid the new Panama Company for its property and concessions, but excluding the cost of acquiring concessions from the govern- ments concerned, is $189,000,000 for the Nic- aragua Canal and $184,000,000 for the Panama Canal. Finally, the remoteness of active vol- canoes and the less likelihood of injury from earthquakes is an advantage commonly claimed
