1894—The company is reorganized as the New Panama Canal Company. In five years it expends $8,000,000, in work on about two-fifths of the canal.
1899—By authority of Congress President McKinley appoints an Isthmian Canal Commission to investigate the property of the French company and see by what methods it can be purchased. The commission in its report recommends a route up through Nicaragua. Estimates are made that $102,000,000 and ten years' work will be required.
1901—The question of a Panama canal or a Nicaragua canal is debated in Congress. Expert opinion from engineers and shipping interests favors the Panama route.
1902—By authorizing the purchase of the French company's property and franchises for $40,000,000 the United States declares its purpose to build a Panama canal itself. The Secretary of War is instructed to make plans upon an expense basis not to exceed $130,000,000.
1903-1904—The United States formally takes over the French rights and concludes a canal treaty with Panama, the canal to be completed in fourteen years.
1904—The Canal Commission appointed by the President and under supervision of the Secretary of War, William H. Taft, arrives on the Isthmus to pursue the building of the canal. John F. Wallace is engineer-in-chief. The commission decides on a lock canal, instead of a sea-level canal as originally planned.
1905—John F. Stevens succeeds Mr. Wallace as chief engineer.
1906—The foreign members of an International Board of Consulting Engineers which visits the canal at the invitation of the United States report in favor of a sea-level canal; American members, in the minority, report in favor of the lock canal.
1906—In his message to Congress President Roosevelt supports the minority report favoring the lock canal. Congress adopts the minority report.
1907—Engineer Stevens resigns. The canal work is placed under the direction of the War Department. Lieutenant-Colonel George W. Goethals, Corps of Engineers, U. S. A., is made engineer-in-chief. He estimates the cost of a lock canal at $375,000,000; of a sea-level canal, $563,000,000.