The Panama Canal

by Frederic J. Haskin

From that day forward the great effort at Panama was to live within this limit, in spite of the extra work required. While Congress might have been willing to increase this limit, in view of the fact that an additional 97,000,000 cubic yards of material had to be removed, it was not asked to do so. The engineers desired above everything else to stay within their own estimates, and they did the extra work with money saved by increasing the efficiency of the force.

The first law providing for the government of the Canal Zone was enacted in 1904. It gave to the President and those appointed by him the right to govern the Zone and imposed the duty "of maintaining and protecting its inhabitants in the free enjoyment of their liberty, property, and religion."

In 1907 an effort was made to reduce wages on the canal. The sundry civil bill of that year carried a provision that wages on the Isthmus for skilled and unskilled labor should not exceed more than 25 per cent the average wage paid in the United States for similar labor. This proposition was urged by Representative James A. Tawney, of Minnesota, then chairman of the Appropriations Committee of the House. When it came to a vote the wages fixed under Chief Engineers Wallace and Stevens were upheld by a vote of 101 to 10. Congress took the ground that the canal could be built only by the most liberal treatment of the people who were building it.

At another time a provision was inserted in the appropriation law establishing the 8-hour day law for American workers on the canal. A fight was made by the American Federation of Labor and other organizations to make it apply to the common laborer as well as to the Americans, but this was unsuccessful. The 8-hour provision did not work well, since the foremen and superintendents were permitted to stop work after 8 hours, while the laborers under them had to work an hour longer. This was later rectified by providing that the 8-hour law should not affect foremen and superintendents in charge of alien labor; and thus was overcome the difficulty of having an army of common laborers at work an hour or so each day without superintendence or direction.

In 1906 it was provided by a joint resolution of the Senate and House that the purchase of material and equipment for use in the construction of the canal should be restricted to articles of American production and manufacture, except in cases where the President should deem prices extortionate or unreasonable. This provision undoubtedly increased by many millions of dollars the cost of the machinery with which the canal work was executed. While some dredges and other equipment were purchased in Europe, foreign purchases were the exception rather than the rule. When bids were submitted there were times when European prices of dredges were placed at less than $700,000, while American prices for the same dredges would amount to more than $1,000,000. When there were such marked difference in bids the awards were made to the European manufacturers.

Although the construction of the canal was authorized by the Spooner Act in 1902, it was not until 1906 that Congress expressed its views in legislation on the question of the type of canal that should be built. It was then that it declared the canal should be of the general lock type proposed by the minority of the board of consulting engineers, which was a complete approval of the plans urged by President Roosevelt. In order to make certain this decision as to the type of canal, a provision was incorporated in the appropriation bill of that year, setting forth that no part of the sums therein appropriated should be used for the construction of a sea-level canal.

Congress was always willing to aid the engineers in meeting unforeseen contingencies by giving them unusual liberties in the application of moneys appropriated. It was provided that as much as 10 per cent of any appropriation might be used for any of the other purposes for which money was appropriated, thus allowing the necessary leeway to insure a systematic progress of the work throughout all its features. This provision many times came to the rescue of the chief engineer, when he found that more money was needed at one point and less at another than had been estimated 16 or 18 months before.

While President Roosevelt was in the White House Congress gave him abundant authority over all phases of the task at Panama. He was empowered to do almost anything he thought expedient for hastening the work. For instance, in 1907 when he considered building the canal by contract, Congress provided that nothing in the Spooner Act should prevent him from entering into such contract or contracts as he might deem expedient for the construction of the canal. This practically gave him full authority over the limit of cost and the methods of building. He was thus the sole judge of the character of the contracts that he might make. No President in the history of the country ever was vested with fuller jurisdiction and control over a great matter than was President Roosevelt in this case. That he did not enter into such contract was due mainly to the reports made to him by Col. George W. Goethals, who had just been appointed chief engineer.

In 1908 the Secretary of War was authorized to purchase for the Panama Railroad Company two steamships of American registry of not less than 9,000 gross tons each, the cost of which should not exceed $1,550,000, for the transportation of supplies, equipment, and material, and of officers and employees of the Canal Commission. These ships, when no longer required for that service were to be transferred to the Secretary of the Navy for use as colliers or other auxiliary naval vessels. These ships carried the bulk of the cement used in building of the great locks, and more than paid for themselves in the saving of transportation charges which would have been levied by private carriers. In the appropriation act of 1909 Congress decided that the carrying of marine or fire insurance was bad policy for the Government, and provided that no such insurance should be carried by the Panama Railroad Company, but that it should be reimbursed for any loss it might sustain from the appropriations made by Congress for the building of the canal.