Balboa to Goethals: history of the Panama Canal

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Part of The American Chamber of Commerce Journal

Title: Balboa to Goethals: history of the Panama Canal
Language: English
Year: 1928
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Fulltext: 18 THE AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1928 Balboa to Goethals: History of the Panama Canal From the inception of the realization that America was America, rather the Americas, a great new continent instead of a new-found shore of Asia, the notion of effecting interoceanic communication across some narrower portion of the new lands took hold of men’s minds and commanded the attention of monarchs and their councils thereafter during hundreds of years. The Spanish conceived project after project, during the 16th, 17th and 18th centu ries. On the other hand, William Paterson, the man principally identified with the founding of the Bank of England, secured parliamentary action and all but established an overland route across Darien, at the close of the 17th century. This was, of course, an act of the Scottish parlia ment, chartering the “Company of Scotland, Trading to Africa and the Indies,” which was popularly known as the Darien Company. This information and all that follows is from The Pacific Ocean in History, a volume of the papers read at the meeting of the American Historical Society in San Francisco in 1915, at the Panama-Pacific exposition celebrating the opening of the Panama canal, and the data are chiefly from the excellent historical review contributed to that occasion by Dr. Rudolph J. Taussig, of Harvard. Paterson was a man of such initiative and vision, atuned to practical enterprises, as would be expected to be met with in a founder of the Bank of England. He planned a British colony on the Atlantic side, another on the Pacific, with the overland route for goods and passengers maintained between them. In other words, he visioned in 1698 what America put into execution in the 1850’s, under the exigency of the traffic to California. He assured the British commercial world that the time and expense of navigation to and from the Far East would be cut in two by his project, and trade doubled: “Trade will increase trade, and money will beget money, and the trading world shall need no more to want work for their hands, but will rather want hands for their work. Thus this door of the seas, and the key to the universe, with anything of a sort of reasonable management, will of course enable its proprietors to give laws to both oceans and to become the arbitrators of the commercial world, without being liable to the fatigues, expenses and dangers, or contracting the guilt and blood, of Alexander and Caesar.” Preoccupation with wars was, no doubt, the reason why Britain never carried Paterson’s project at Panama into effect. She intrigued, but nothing more. Alexander von Humboldt listed nine several projects for uniting the oceans at Panama or along routes north and south of the isthmus, in his Political Essay on the Kingdom of New Spain. This caught the imagination of the German poet Goethe, who, predicting that with the development of the United States "new trading centers will spring up in the safe and roomy harbors on the Pacific coast (this in 1827), for developing commercial relations with China and the East Indies,” said it would not only be desirable then, but also necessary, “that both merchant vessels and men of war should have a quicker connection between the Atlantic and the Pacific than is possible by a voyage around Cape Horn. I therefore repeat that it is absolutely necessary for the United States to build the interoceanic canal and I am sure that she will do so. ... It would be worth while to bear life for fifty years longer for this purpose,” that of seeing the canal undertaken and accomplished by the United States. Either this demonstrates that there is some practical sense in some poets, or that in men of practical affairs there is some poesy. When the Latin colonies in America created themselves into republics, in the first quarter of the ,19th century, “they turned their attention to the construction of an interoceanic canal.” Bolivar gathered a congress at Panama in 1826, where America sent commissioners, bearing this instruction from Henry Clay, secretary of state: “The benefits (of a canal) ought not to be exclusively appropriated to any one nation, but should be extended to all parts of the globe upon the payment of a just compensation or reasonable tolls.” The commissioners reached Panama after the congress, which never reassembled, had ad journed. A senate resolution of 1835 authorized nego tiations on the basis of Clay’s principle, and a similar house resolution of 1839 is the first offi cial suggestion that the canal be built by the United States. WHEN TRAVELING CARRY NATIONAL CITY BANK OF NEW YORK LETTERS of CREDIT — •>,r'- — TRAVELERS CHECKS SAFE - - CONVENIENT - - SELF-IDENTIFYING INTERNATIONAL BANKING CORPORATION I PACIFIC BUILDING MANILA, P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1928 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 19 La Flor de la India We carry complete lines of Beautiful Haori Coats, Spanish Shawls of the Latest Designs, and everything made of silk. Persian Rugs: 50% Dis count from our regular prices. Try Us Before You Buy 30-32 Escolta Manila, P. I. In 1845-46, when still a political prisoner in France, Louis Napoleon Bonaparte got a con cession from Nicaragua for a canal by way of the San Juan river and the two lakes to Realejo, the canal to be named in his honor. And when he had escaped to London he published a pamph let furthering his project and picturing Leon as a rival of Constantinople, saying “Nicaragua can become, better than Constantinople, the necessary route of the great commerce of the world,” a contention equally applicable, of course, to Panama with a canal cut through it; and we are thus able to weigh the value of the property America now holds in the canal and the canal zone. Louis dropped his project when he became emperor of France, but his intrigues in England had led to the alarm and indignation in the United States that gave cause for the ClaytonBulwer treaty (Washington, April 19, 1850), which James G. Blaine, when secretary of state in 1881, described as “misundertandingly en tered into, imperfectly comprehended, contra Maj. Gen. George W. Goethals. 1858-1928 Builder, Panama Canal When Goethals took charge of the building of the canal appears elsewhere. He was bom in Brooklyn, June 29, 1858, and is a shining example of the city chap who suc ceeds. First attending the College of the City of New York, he was graduated from West Point in 1880. He was, as a volunteer officer, chief of engineers, SpanishAmerican War, 1898, and was made a major in the en gineering corps, U.S. A., 1900, rising by merit to his major generalship, 1915. He was instructor in civil and military engineering at West Point after graduation until 1888, and then took charge of the Muscle Shoals canal construc tion on the Tennessee river. This prepared him for the Panama job, but in manifold other duties he proved his exceptional ability and personal initiative. He received the thanks of Congress "for distinguished service in con structing the Panama canal,” and was made a I). S. M. man for "meritorious and conspicuous service” in re organizing the quartermaster department during the Great War. He died three weeks ago, one of the greatest dictorily interpreted, and mutually vexatious.” In such an instrument there was traced a joint and several jurisdiction and opportunity, of England and the United States, respecting canal projects; the United States had been impelled to such an agreement—infringing, as was pointed out by critics at the time, the Monroe doctrine— by England’s establishment of a protectorate over the territory at the mouth of the San Juan river. The treaty was a thorn in America’s midriff until abrogated, December 16, 1901, by the HayPauncefote treaty granting the United States the right to construct the canal and ‘‘the exclu sive right of providing for the regulation and management of the canal.” But as late as his message to congress of December 8, 1885, Cleve land had said ‘‘whatever highway may be con structed . . . must be for the world’s benefit, a trust for mankind, to be removed from chance of domination by any single power, nor become a point of invitation for hostilities or a prize for warlike ambition.” But how may Panama, any more than Constantinople, be free from the envy of the world, or the United States, as its custo dian—as, indeed, the actual owner and sovereign of the canal and canal zone itself—be free from the necessity of being at all times prepared for its defense? Though he seemed to reiterate the Clayton-Bulwer treaty, still in force, the objective sought by Cleveland, except the United States become a belligerent, is most nearly secured under the terms finally effected. The rush to California setting in in 1849 could not wait upon diplomats or hydraulic engineers. New York chartered a railroad company in 1850, which completed a line across Panama from ocean to ocean January 27, 1855, operating under a treaty between the United States and New Granada (of which state Colombia is the resid uary legatee). The road cost $8,000,000, and was profitable. Its trade, however, was only 1/15 with California, and 14/15 arose from commerce between England and the United States, and Central and South America. The treaty of Bogota, December 1846, was the diplo matic fabric, or at least a principal part of it, CANADIAN PACIFIC LARGEST—NEWEST—FASTEST—STEAMSHIPS ON THE PACIFIC to CANADA, UNITED STATES and EUROPE Proposed Sailings: Steamers Leave Leave “Emp. 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He and Hay utilized it to confound the efforts of Maroquin, in his own person the Colombian government in 1902-04, to squeeze the United States. With the Clayton-Bulwer treaty in view, the United States and England to extend their joint protection, in 1851 Dr. Edward Cullen recom mended to Great Britain the construction of the Isthmian Ship Canal, utilizing the Savana river and, a tidewater project, shunting ships into the Atlantic from the Pacific at flood tide, and vice versa at ebb. The usual joint stock ocmpany with limited liability was formed, capital L’15,000,000, the estimated cost of the canal being £7,000,000. Subsequent engineering investiga tions showed Cullen’s plans to be unfeasible, he had left a mountain range out of account. In 1866 the senate called for a navy report on all the canal projects, and Rear Admiral Davis furnished it. The United States also set to work to abrogate the Clayton-Bulwer treaty, Seward saying, as secretary of state, that the prospect of undertaking the building of a canal was imminent when the treaty was made, but that “at present there does not appear to be a likelihood of its being undertaken.” President Grant enunciated the doctrine of “an American canal under American control,” and caused thorough surveys to be made of the various projects. The conference on the subject of an inter oceanic canal in Paris in 1879 resulted in the organization of a French construction company under the presidency of the famous builder of the Suez canal, Ferdinand de Lesseps. Again the United States was aroused, everyone con cluding, with de Lesseps’ name coupled with the business, that it would be speedily terminated, and President Hayes made occasion to say that “the policy of this country is a canal under American control.” Garfield, succeeding Hayes, added his word: “It is the right and duty of the United States to assert and maintain such super vision and authority over any interoceanic canal across the isthmus as will protect our national CHRONOLOGY Canal treaty with Colombia signed Jan. 22, 1903; ratified by senate March 17, 1903; rejected by Colombia Aug. 12, 1903. Revolution in Panama Nov. 3, 1903. Canal treaty with Panama negotiated Nov. 18, 1903; ratified by republic of Panama Dec. 2, 1903: ratified by the United States senate Feb. 23, 1904. Canal commissioners appointed Feb. 29, 1904. Papers transferring canal to the United States signed in Paris April 22, 1904. Bill for government of Canal Zone passed by the senate April 15, 1904; passed by house April 21; approved April 26. Canal property at Panama formally turned over to the United States commissioners Work begun by Americans May 4, 1904. President outlines rules for the government of the Canal Zone and war department takes charge of the work on May 9, 1904. Gen. George W. Davis appointed first governor of Canal Zone May 9, 1904. John F. Wallace appointed chief engineer May 10, 1904; resigned June 29, 1905. Republic of Panama paid $10,000,000 May 21, 1904. First payment on $40,000,000 to French com pany made May 24, 1904. Lorin C. Collins appointed Supreme court judge for Canal Zone June 17, 1905. New commission with Theodore P. Shonts as chairman named April 3, 1905; Shonts resigned Mor 4, 1907. John F. Stevens appointed chief engineer June 29, 1905: resigned Feb. 26. 1907. Lieut.-Col. George W. Goethals appointed chief engineer Feb. 26, 1907. Gatun dam finished June 14, 1913. Dry excavation completed Sept. 10, 1913. First vessel lifted, through Gatun locks Sept. 26, 1913. Gamboa dike blown up Oct. 10, 1913. First vessel pass through Miraflores locks Oct. 14, 1913. Permanent organization cf canal administra tion in effect April 1, 1914; Col. George W. Goethals first governor; existence of isthmian canal commission ended. First freight barges go through canal from ocean to ocean May 14, 1914. First steamship (the Cristobal) passes through canal Aug. 13, 1914. Canal opened for general traffic Aug. 15. 1914. Canal blocked by slides September, 1915, to April, 1916. interests.” Blaine, his secretary of state, in structed America’s European representatives to explain that this policy was in strict accordance with "principles long since enunciated by the highest authority of the government.” He referred to the Monroe doctrine. Now it was that James B. Eads, builder of the wonder-working jetties at the mouth of the Mississippi, came forward with a project for railroading full-laden ships across the isthmus of Tehuantepec; and, while nothing came of this, Mexico did grant the concession. (It should be mentioned that with Louis Napoleon’s project, went 200,000 acres of land; a hint of the present canal zone). The Universal Inter-Oceanic Canal Company, headed by de Lesseps, was organized February 1, 1881, and commenced its work. The Panama route had been decided upon, and the cost of the canal estimated at $132,000,000. It is amusing to read, in Willis Fletcher Johnson’s Four Centuries of the Panama Canal (the author is a former editor of the North American Review), of the enormous schemes by which investors in the company—with which, so un fortunately, de Lesseps’ name was connected,— were bilked out of their money. In 1888, after seven years, the company was bankrupt. It had spent $400,000,000 and not half the work was com pleted. Reorganized in 1893, with $180,000,000 more, the French company expected to complete the canal. Its work proceeded, always under the jealous eye of the United States. And it soon had a rival in the Maritime Canal Company, taking up the Nicaraguan project and beginning work at Greytown—old San Juan, renamed when England, under Palmerston’s aggressive policy, practically resolved upon war, if necessary, to have the canal, and established her protectorate over “the king of the mosquito coast”—and spending all its capital, $6,000,000, before the panic of 1893 made it impossible for the time being to raise any more money. The project might probably have been taken over by the American government, as was proposed, had the Spanish-American war not intervened. Because it’s pure and healthful—its popu larity is ever increas ing. The most refreshing drink in the Islands Made by SAN MIGUEL BREWERY IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL February, 1928 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 21 But it did, the Oregon made its spectacular voyage from San Francisco to the West Indies around South America under the command of Fighting Bob Evans, and the public demand for a canal was renewed with a persistency that would not down. McKinley appointed a com mission, in 1899, which recommended the Nica raguan route because, while the Panama route seemed to be cheaper, “the Colombian govern ment is not free to grant the necessary rights to the United States, except upon condition that an agreement be reached with the New Panama Canal Company.” The commission believed that no such agreement could be effected, the company holding out for $109,000,000 (on its outlay of more than $400,000,000), and the com mission’s ideas being $40,000,000. When the company came to the commission’s figures, the commission changed its recommendations from Nicaragua to Panama. The Spooner bill of 1902 then authorized the president, Roosevelt, to purchase the rights of the French company and to proceed with the work at Panama, under certain conditions to be granted by Colombia—in which government, succeeding New Granada, Panama was a poli tical entity with the right of secession. Such had been her stipulation with New Granada, and it resulted in the building of the canal by the United States. With the canal a fait accompli, speaking to the historical society at San Fran cisco, Roosevelt said “it is a mistake for any person privately, or for all persons publicly, to hire me to do anything unless they want it done.” We observe that talk of building the canal, by the United States, had been going on for 75 years; Roosevelt proposed to change discussion into accomplishment. Not Colombia, but Co lombia’s dictator, Maroquin, stood in his way, Panama being then still under Colombia, from her provisionary uniop with New Granada. Maroquin had begun as vice president, but achieved the presidency by jailing the elected incumbent; and when he had done this he pro rogued the congress. So situated, he was treat ed with: for $10,000,000 the United States was to acquire the canal rights, when, with not more than the $40,000,000 Congress authorized, the French‘company’s rights were purchased. The agreement effected with the French com pany, Maroquin developed scruples, and con vened the Colombian congress, which held null the extension of the company’s rights, for ten years, which otherwise would have expired in 1904, and null also Maroquin’s agreement to grant the United States canal rights for $10,000,000. Roosevelt says that the American minister, Baupre, learned that to assuage the new scruples of Colombia would require another $10,000,000. Roosevelt himself went on the war path, as was natural with him, and Hay went into the records once more. As to the United States, Hay found that its covenant with New Granada bound it only to protect the canal zone from any assault from without, which covenant he held to run with the land, not with succeeding governments as they might legally or arbitrarily be established; and that the covenant did not extend to suppres sion of revolutions. As to Panama, Hay reread the terms upon which it had originally united with New Granada, and its subsequent history, culminating in what Roosevelt describes as its seizure by Colombia “without regard to the articles in the treaty under which it had joined.” In Panama, too, Roosevelt discerned a dozen revolutions brewing. Roosevelt says anyone falsifies who intimates that he fomented a Pana ma revolution. From army officers sent to find out the facts, he learned that a revolution would occur in Panama if the Colombian con gress adjourned (in November, 1903) without ratifying the treaty Maroquin had made with the United States—for it was now clear that either Nicaragua or Panama was to get a canal and get one quick, and they were at keen rivalry for the boon. Instead of fomenting a Panama revolution, therefore, Roosevelt merely let one brew; and when Panama had thus asserted her privilege to secede, Roosevelt made terms with her and started the steam-shovels to working. He paid the French company $40,000,000—“We drove, as was our duty, a hard bargain with LABOR FORCE The actual working force on the canal aver ages about 12,000, of whom nearly three-fourths are colored or “silver” employes. The Panama canal completed twelve years of operation at the close of business on Aug. 14, 1920, having been opened to commerce on Aug. 15, 1914. During the twelve years of opera tion 35,560 commercial vessels transited the canal, on which tolls aggregating $145,043,734.55 were collected. Approximately 70 per cent of the total transits and 76 per cent of the total tolls collection have occurred during the last six years of operation. PANAMA CANAL TOLLS Merchant vessels carrying passengers or cargo, per n ton (each 100 cubic feet) of rning capacity.. Vessels in ballast, without passengers or cargo, per net vessel ton (each 100 cubit feet) of actual earning capacity.. . Naval vessels, other than transports, colliers, hospital ships and supply ships, per displacement ton................. Army and navy transports, colliers, hos pital ships and supply ships, the ves sel to be measured by the same rules as are employed in determining the net tonnage of merchant vessels, per Tolls may not exceed the equivalent of $1.25 per net registered ton, as determined by United Stated rules of measurement, nor be less than the equivalent of 75 cents per net registered $1.20 .72 .50 1.20 CANAL STATISTICS (OFFICIAL) Length from deep water to deep water—50.5 miles. Length on land—40.5 miles. Length at summit level—31.7 miles. Bottom width of channel—Maximum, 1,000 feet; minimum (in Gaillard cut), 300 feet. Depth—Minimum, 41 feet; maximum, 45 feet. Summit level—85 feet above mean tide. Locks in pairs—12. Locks, usable length—1,000 feet. Gatun lake channel, depth—85 to 45 feet. Gatun lake, area—164 square miles. Locks, usable width—110 feet. Concrete required—5,000,000 cubic yards. Time of transit through canal—10 to 12 hours. Time of passage through locks—3 hours. Length of relocated Panama railroad—46.2 Canal Zone area—About 448 square miles. Canal Zone area owned by United States— About 322 square miles. French buildings acquired—2,150. French buildings used—1,537. Value of utilized French equipment—$1,000,000. Cubic yards excavated by French—108,046,960. Cubic yards excavated by Americans—250,000,000. Canal force, average employed—About 39,000. Approximate cost of construction—$375,000,000. them,” he says—for work done, of the actual value of about $70,000,000, “and also a little machin ery.” He adds: “It was of vital importance to Panama that the canal should be built. It quadrupled,’ quintupled, multiplied many times over the value of the isthmus to the people as a whole, and to each individual thereof. . . . There is not one action of the American government, in connection with foreign affairs, from the day when the Constitution was adopted down to the present time, so important as the action taken by this government in connection with the acqui sition and the building of the Panama canal.” But Roosevelt’s interest in the canal did not date merely from his advent in the White House. While he was yet governor of New York he had de nounced the qriginal draft of the Hay-Pauncefote treaty. The virility of his eloquence before the historical society on this point is worth marking: “The first draft of the Hay-Pauncefote treaty did not vest full power in the United States over the canal. (It) provided in effect that the canal should be under the joint control, not only of the United States and Great Britain, but also of France and Germany. Imagine! Imagine the pleasure of administering a canal under such a combination during the past year (1914); and yet all the pacifists, all the peace-at-anyprice people, all of the ‘old women’ of both sexes, prattled and screamed in favor of our adopting such a policy, apparently on the ground that, as it was going to be bad for ourselves it might be good for somebody else. . .. The treaty that was adopted shortly after I became pres ident contained the two provisions for which I had asked. ... In the treaty itself it was made our duty to police the canal, and by an inter change of notes immediately afterwards the construction was explicitly put upon the treaty that we were at liberty to fortify it, and England and France and Germany were all eliminated from the control of the canal, and that is why the canal has been at peace.” Manila Cordage Co. P. O. Box 131 Manila, P. I. TOWLINE BRAND High Quality Pure Manila Rope CROWN BRAND Good Quality Pure Manila Rope PLOW BRAND Mixed Fiber Rope Low in Price DRAGON BRAND Made of Pure Philippine Maguey Ask for Prices PANAMA RAILROAD The Panama railroad and the steamships run in connection with it between New York and Colon are owned and operated by the United States government. The road virtually parallels the canal nearly the whole distance. It is fortysix and a half miles long and runs between the CANAL ZONE about 436 square tad a total populapoint three marine lark in each ocean ds for five miles on each side of the center line of the route of the canal. It in cludes the group of islands in the Bay of Panama, named Perico, Naos, Culebra and Flamenco. The cities of Panama and Colon are excluded from the zone, but the United States has the right to enforce sanitary ordinances and main tain public order there in case the republic of Panama should not be able to do so. CANAL TRAFFIC BY YEARS summary of the commercial traffic through the canal in 1925, as compared with other calendar years, is given in the following table: Year Ships 1914 * 350 1915+ 1,154 1916+ 1,217 1917 1,960 2 2 2 5 ♦Tonnage 1,284,293 3,902,592 3,817,704 6,217,054 6,409,886 6,943,087 10,378,265 11,435,811 12,992,573 24,737,437 24.411,760 22,958,158 Tolls $1,508,737.56 4,297,467.11 3,671,162.68 6,107,696.63 6,317,455.39 6,973,095.30 10,295,362.21 11,261,098.80 12,573,407.77 22,966,838.18 22,809,416.34 21,380,759.70 1,758,625 4,893.422 4,774,822 7,443,610 7,284,159 7,477,945 11,236,119 10,707,005 13,710.556 25,160,545 25,892,134 23,701,277 total.. 32,179 135,478,437 130,162,497.67 144,040,219 * Canal opened to ‘traffic Aug. 15, 1914. + Canal closed approximately three months by slides. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL