The Spanish-American war brought forcibly to the attention of the public the need of an interoceanic canal.
In 1900 a treaty negotiated by John Hay and Sir Julian Pauncefote embodying some modifications of the Clayton-Bulwer treaty had been so amended in the Senate that Great Britain would not accept it. A new treaty made in view of the Senate amendments and the British objections was submitted a few months after Roosevelt became President. It abrogated parts of the Clayton-Bulwer Treaty and gave to the United States full ownership and control of the proposed canal. Colonel Roosevelt had strongly advocated this while governor of New York before his accession to the presidency.[59]
Two commissions in the past had reported favorably on the Nicaraguan route. A third commission with Admiral John G. Walker as chairman was appointed and authorized in 1899 to expend a million dollars, if necessary, to make a thorough investigation of the several routes. In 1901 the committee reported that the “Commission is of the opinion that the most practicable and feasible route for an Isthmian Canal, to be under the control, management, and ownership of the United States is that known as the Nicaraguan route.”[60] The Commission placed the estimated cost of the Nicaraguan Canal at $189,864,062; of completing the Panama Canal at $144,233,358; and that to this latter sum should be added the cost of acquiring the rights of the French company. The company asked $109,141,500, but the Commission estimated its worth at $40,000,000. The company considered this unfair but finally offered to negotiate with the United States and sell on the best terms possible. The Commission made a supplementary report recommending the Panama route and purchase of the French company’s work and rights at $40,000,000. An act was signed by the president, June 28, 1902, which had passed Congress, not without opposition, authorizing the president to acquire control of the rights and property of the Panama Canal Company, to acquire perpetual control of a strip of land not less than 6 miles in width, across the Isthmus, to proceed as soon as these rights were acquired to construct a canal through “The Isthmian Canal Commission” created by the act; but should he be unable to get satisfactory title to the property of the French company and the control of territory from Colombia, then the president was authorized to negotiate with Nicaragua and build a canal along the Nicaraguan route.
Attorney General Knox reported that the French company could give a clear title; a convention was entered into by which the United States upon the payment of $10,000,000 in cash and an annual rental of $250,000 per year was to receive the necessary control and strip of land. The Senate ratified this March 17, 1903. When it went to the Colombian congress, however, it was rejected by unanimous vote. President Roosevelt declared Colombia wanted to wait until they could forfeit the title of the French company then sell to the United States for $40,000,000.[61] This view may and possibly was erroneous. There was again a demand that the Nicaraguan route be chosen. But on November 3, 1903, the Panamanians, instigated by the French company, whose entire concession and undertaking would revert to Colombia in less than a year,[62] seeing their interests being sacrificed by the cupidity of Colombia, consummated a revolution. Many were of the opinion that the president of the United States was particeps criminis. In a letter to a friend[63] dated October 10, 1903, he says, “I cast aside the proposition at this time to foment the secession of Panama. Whatever other governments can do, the United States can not go into the securing, by such underhand means, the cession. Privately, I freely say to you that I should be delighted if Panama were an independent state, or if it made itself so at this moment; but for me to say so publicly would amount to an instigation of a revolt, and therefore I cannot say it.”
Many years later when chaffingly accused of being a wicked conspirator, Mr. Roosevelt is quoted as having said: “What was the use? The other fellows in Paris and New York had taken all the risk and were doing all the work. Instead of trying to run a parallel conspiracy, I had only to sit still and profit by their plot—if it succeeded.”[64]
The revolution was bloodless except for the accidental killing of a Chinaman and a dog. Colombia, however, as soon as possible sent troops to Colon. The following day the U. S. Ship Nashville landed fifty marines. The next day the Colombian troops left, said by some to have been bribed. A Panamanian government was formed; on November 6th, the American consul was ordered from Washington to recognize it; a week later their minister was formally received by President Roosevelt. On January 4, 1904, the president presented for ratification a treaty. The Senate ratified it February 23, 1904. Thus rapidly did things move. By this agreement the United States secured from the Republic of Panama a zone of land 10 miles wide for the canal with full power over it. In return the United States guaranteed the independence of the Panama republic, and agreed to pay $10,000,000 upon exchange of ratifications and the sum, beginning nine years thereafter, of $250,000 per annum.
The Colombians protested and sent their former president General Reyes to Washington to persuade the Government to abrogate its compact with Panama. The counsel for Colombia is quoted as saying that “Reyes was authorized to accept $8,000,000 for all the desired concessions and he would have taken $5,000,000, but Hay and Roosevelt were so foolish they wouldn’t accept.”[65] Be that as it may, the effort was several times made to get for Colombia a gratuity much greater than Reyes would have accepted, and in 1921 Congress appropriated for that purpose $25,000,000, thus, in a way, acknowledging that Colombia was wronged and that the United States had been profited thereby.
A commission was formed to undertake the construction of the canal. This was changed two or three times during the construction. The immensity of the work necessary to make a tidewater canal, and the fact that its completion would be materially delayed, caused the abandonment of that plan. Three sets of locks were provided—at Gatun, Pedro Miguel, and Miraflores. A great dam was built across the lower end of the Chagres, entirely blocking the flow of that river and creating a large artificial lake 165 square miles in area whose maximum height is 85 feet above sea water. This lake serves for storage water necessary to manipulate the canal and locks; any surplus flows through a spillway into the Pacific Ocean. Great breakwaters were constructed to make smooth harbors at Colon and Panama and prevent silting. The canal is at sea level to Gatun, 8 miles, then three steps lead it to Gatun Lake; it continues on that level for 32 miles; then down one step at Pedro Miguel to Miraflores Lake, 55 feet above sea level; thence through the Miraflores locks to sea level again and then out to deep water in the Pacific, 11 miles. The locks are 1000 feet long and large enough in every way to accommodate the largest ships afloat. These great locks with their mammoth gates, tunnels for filling, and mechanical means of operation are one of the seven wonders of the modern world. The cost was about $400,000,000 to date of opening. Since that time considerable sums have been spent in fortifications, improvements, and maintenance—several large slides having occurred in the Culebra Cut. The “total amount expended or advanced to disbursing officers for purchase, construction, fortification, etc., to June 30, 1919, $452,075,376.”[66] The tolls amount to about $7,000,000 annually.
The principal arguments in favor of the United States building the inter-oceanic canal were its utility as a measure of preparedness for and strategy in case of war. By furnishing quick passage between the east and west coasts the navy necessary for the protection of these coasts could be reduced one half. With the canal entirely in the control of the Government no foreign nation could take advantage of it to our detriment. Notwithstanding the need of the canal for war purposes, the benefits to be derived by the commerce of peace will doubtless be manifold more valuable. It furnishes cheap transportation between the west and east coasts, and shortens materially the distance from the Atlantic seaboard to western South America as well as to the islands of the Pacific Ocean. During the year 1920, “2814 ships representing 11,236,119 tons of cargo, passed through the waterway” being a considerable increase over any preceding year.[67] Of these 45.5 per cent were registered United States vessels, more than any other one nation. Fuel-oil, nitrates, steel and iron hold leading places in the line of commodities carried.