At this juncture Governor Blackburn called the Panaman authorities together and notified them that the United States did not care a continental which side won the election, but that it was very deeply interested in maintaining conditions of peace and amity on the Isthmus—conditions which could not prevail except there be a fair election. He reminded them of the right of the United States to maintain order in their two principal cities, and of the blood and treasure the United States had invested in Panama, all of which would be placed in jeopardy by any civil conflict. He therefore declared it the intention of the United States to see that there was a fair election.
Election commissioners were consequently appointed, and they saw to it that the voters were fairly registered, allowed to vote, and to have their votes counted. The result was that for the first time in Central American history there was a fair election and for the first time a real change of administration without a resort to arms. So successful was this plan that in the election of 1912 both sides agreed again to call in the United States to umpire their battle of the ballots, and once again the "outs" won over the "ins."
The French Canal Company has some very unpleasant experiences with the Republic of Colombia when it, as a private corporation, undertook to build the canal. It was at the mercy of the Government and the Government seldom showed mercy. For instance, a Colombian owned 30 acres of swamp land which was needed for the construction of the canal. It was worth $10 an acre; he demanded $10,000. The canal company took the matter to the courts of the Republic and instituted condemnation proceedings. Here the owner admitted that the land was not intrinsically worth more than $10 an acre, but claimed that he had as much right to demand $300,000 for the tract as if it were located in the very heart of Paris; that in every case it was what the land could be used for that determined its value. The court shared his view and nothing was left for the canal company to do but to pay the $300,000.
Shortly after the Americans took charge, the Central and South American Telegraph Company wanted to land the new "all American" cable on the Canal Zone. They applied to the United States for permission which was granted. The Panamans fought against it under every possible pretext, their desire being to have their consent regarded as essential, so that they could get a good fee for the concession, but the United States notified the Republic of Panama that it had no interest whatever in requiring compensation, and so the cable was laid.
While there has been substantial agreement between the two countries, it has been difficult to prevent some conditions which are contrary to American ideas of morality. For instance, while the Canal Commission was strongly opposed to having a lottery on the Canal Zone, one is maintained just across the line in the city of Panama. The Panama lottery and the Bishop of Panama share the same house. One has to pass the lottery to see the bishop and, mayhap, a half dozen old women ticket sellers will try to intercept him before he reaches the church dignitary.
This lottery is a veritable gold mine to those who own it. Each ordinary drawing brings in $10,000—$1 for each ticket issued. The grand prize takes $3,000 of this, the next 9 prizes calling for a total of $900, the next 90 for a total of $450 and the remaining prizes for $2,070. Thus, $6,420 in prizes is paid out of the total of $10,000 received. Out of the remainder, 5 per cent goes to the ticket sellers and 5 per cent to the Panaman Government. Once a month the drawing is made for a grand prize of $7,500. Most of the money which the lottery people make is contributed by workers on the canal. Only 64 per cent of the money received from the sale of tickets is won back by the ticket buyer at each drawing. The net profits approximate a hundred thousand dollars a year.
On the whole, however, the relations entered into between the two Republics in 1904 have been such as to leave no serious ground for complaint. They have permitted the satisfactory construction of the canal, and they will permit its satisfactory operation. With the United States as the ultimate judge of every question vital to American interests, little is left to be desired. The fact is that the canal has been built with less friction and fewer difficulties with the Republic of Panama than could reasonably have been hoped for at the outset. This has been due principally to the fact that the Americans responsible for the success of the work have approached the Panaman situation with tact where tact was needed and with firmness where firmness was essential.