CHAPTER I

THE LAND DIVIDED--THE WORLD UNITED

The Panama Canal is a waterway connecting the Atlantic and Pacific Oceans, cut through the narrow neck of land connecting the continents of North and South America. It is the solution of the problem of international commerce that became acute in 1452 when the Eastern Roman Empire fell before the assaults of the Turks, and the land routes to India were closed to Western and Christian Europe.

Forty years after the Crescent supplanted the Cross on the dome of St. Sophia in Constantinople, Columbus set sail to seek a western route to the Indies. He did not find it, but it was his fortune to set foot on the Isthmus of Panama, where, more than four centuries later, the goal of his ambition was to be achieved; not by discovery, but by virtue of the strength and wealth of a new nation of which he did not dream, although its existence is due to his own intrepid courage.

Columbus died not knowing that he had multiplied the world by two, and many voyagers after him also vainly sought the longed-for western passage. Magellan sought it thousands of leagues to the southward in the cold and stormy seas that encircle the Antarctic Continent. Scores of mariners sought it to the northward, but only one, Amundsen, in the twentieth century, was able to take a ship through the frozen passages of the American north seas.

Down the western coast of the new continent from the eternal ice of Alaska through the Tropics to the southern snows of Tierra del Fuego, the mighty Cordilleras stretch a mountain barrier thousands and thousands and thousands of miles.

Where that mountain chain is narrowest, and where its peaks are lowest, ships may now go through the Panama Canal. The canal is cut through the narrowest part of the Isthmus but one, and through the Culebra Mountain, the lowest pass but one, in all that longest, mightiest range of mountains. There is a lower place in Nicaragua, and a narrower place on the Isthmus east of the canal, but the engineers agreed that the route from Colon on the Atlantic to Panama on the Pacific through Culebra Mountain was the most practicable.

The canal is 50 miles long. Fifteen miles of it is level with the oceans, the rest is higher. Ships are lifted up in giant locks, three steps, to sail for more than 30 miles across the continental divide, 85 feet above the surface of the ocean, then let down by three other locks to sea level again. The channel is 300 feet wide at its narrowest place, and the locks which form the two gigantic water stairways are capable of lifting and lowering the largest ships now afloat. A great part of the higher level of the canal is the largest artificial lake in the world, made by impounding the waters of the Chagres River, thus filling with water the lower levels of the section. Another part of the higher level is Culebra Cut, the channel cut through the backbone of the continent.

Almost before Columbus died plans were made for cutting such a channel. With the beginning of the nineteenth century and the introduction of steam navigation, the demand for the canal began to be insistent.

Many plans were made, but it remained for the French, on New Year's Day of 1880, actually to begin the work. They failed, but not before they had accomplished much toward the reduction of Culebra Cut. They expended between 1880 and 1904 no less than $300,000,000 in their ill-fated efforts.

In 1904 the United States of America undertook the task. In a decade it was completed and the Americans had spent, all told, $375,000,000 in the project.

Because the Atlantic lies east and the Pacific west of the United States, one is likely to imagine the canal as a huge ditch cut straight across a neck of land from east to west. But it must be remembered that South America lies eastward from North America, and that the Isthmus connecting the two has its axis east and west. The canal, therefore, is cut from the Atlantic south-eastward to the Pacific. It lies directly south of Pittsburgh, Pa., and it brings Peru and Chile closer to New York than California and Oregon. The first 7 miles of the canal, beginning at the Atlantic end, run directly south and from thence to the Pacific it pursues a serpentine course in a southeasterly direction.

At the northern, or Atlantic, terminus are the twin cities of Colon and Cristobal, Colon dating from the middle of the nineteenth century when the railroad was built across the Isthmus, and Cristobal having its beginnings with the French attempt in 1880. At the southern, or Pacific, terminus are the twin cities of Panama and Balboa. Panama was founded in 1673 after the destruction by Morgan, the buccaneer, of an elder city established in 1519. The ruins of the old city stand 5 miles east of the new, and, since their story is one, it may be said that Panama is the oldest city of the Western World. Balboa is yet in its swaddling clothes, for it is the new American town destined to be the capital of the American territory encompassing the canal.

The waterway is cut through a strip of territory called the Canal Zone, which to all intents and purposes is a territory of the United States. This zone is 10 miles wide and follows the irregular line of the canal, extending 5 miles on either side from the axis of the channel. This Canal Zone traverses and separates the territory of the Republic of Panama, which includes the whole of the Isthmus, and has an area about equal to that of Indiana and a population of 350,000 or about that of Washington City. The two chief Panaman cities, Panama and Colon, lie within the limits of the Canal Zone, but, by the treaty, they are excepted from its government and are an integral part of the Republic of Panama, of which the city of Panama is the capital. Cristobal and Balboa, although immediately contiguous to Colon and Panama, are American towns under the American flag.

The Canal Zone historically and commercially has a record of interest and importance longer and more continuous than any other part of the New World. Columbus himself founded a settlement here at Nombre de Dios; Balboa here discovered the Pacific Ocean; across this narrow neck was transported the spoil of the devastated Empire of the Incas; here were the ports of call for the Spanish gold-carrying galleons; and here centered the activities of the pirates and buccaneers that were wont to prey on the commerce of the Spanish Main.

Over this route, on the shoulders of slaves and the back of mules, were transported the wares in trade of Spain with its colonies not only on the west coasts of the Americas, but with the Philippines.

Not far from Colon was the site of the colony of New Caledonia, the disastrous undertaking of the Scotchman, Patterson, who founded the Bank of England, to duplicate in America the enormous financial success of the East India Company in Asia.

Here in the ancient city of Panama in the early part of the nineteenth century assembled the first Pan American conference that gave life to the Monroe doctrine and ended the era of European colonization in America.

Here was built with infinite labor and terrific toll of life the first railroad connecting the Atlantic and the Pacific Oceans--a railroad less than 50 miles in length, but with perhaps the most interesting story in the annals of railroading.

Across this barrier in '49 clambered the American argonauts, seeking the newly discovered golden fleeces of California.

This was the theater of the failure of Count de Lesseps, the most stupendous financial fiasco in the history of the world.

And this, now, is the site of the most expensive and most successful engineering project ever undertaken by human beings.

It cost the French $300,000,000 to fail at Panama where the Americans, at the expenditure of $375,000,000, succeeded. And, of the excavation done by the French, only $30,000,000 worth was available for the purpose of the Americans. That the Americans succeeded where the French had failed is not to be assigned to the superiority of the American over the French nation. The reasons are to be sought, rather, in the underlying purposes of the two undertakings, and in the scientific and engineering progress made in the double decade intervening between the time when the French failure became apparent and the Americans began their work.

In the first place, the French undertook to build the canal as a money-making proposition. People in every grade of social and industrial life in France contributed from their surpluses and from their hard-earned savings money to buy shares in the canal company in the hope that it would yield a fabulously rich return. Estimates of the costs of the undertaking, made by the engineers, were arbitrarily cut down by financiers, with the result that repeated calls were made for more money and the shareholders soon found to their dismay that they must contribute more and yet more before they could hope for any return whatever. From the beginning to the end, the French Canal Company was concerned more with problems of promotion and finance than with engineering and excavation. As a natural result of this spirit at the head of the undertaking the whole course of the project was marred by an orgy of graft and corruption such as never had been known. Every bit of work was let out by contract, and the contractors uniformly paid corrupt tribute to high officers in the company. No watch was set on expenditures; everything bought for the canal was bought at prices too high; everything it had to sell was practically given away.

In the next place, the French were pitiably at the mercy of the diseases of the Tropics. The science of preventive medicine had not been sufficiently developed to enable the French to know that mosquitoes and filth were enemies that must be conquered and controlled before it would be possible successfully to attack the land barrier. Yellow fever and malaria killed engineers and common laborers alike. The very hospitals, which the French provided for the care of the sick, were turned into centers of infection for yellow fever, because the beds were set in pans of water which served as ideal breeding places for the death-bearing stegomyia.

In this atmosphere of lavish extravagance caused by the financial corruption, and in the continual fear of quick and awful death, the morals of the French force were broken; there was no determined spirit of conquest; interest centered in champagne and women; the canal was neglected.

Yet, in spite of this waste, this corruption of money and morals, much of the work done by the French was of permanent value to the Americans; and without the lessons learned from their bitter experience it would have been impossible for the Americans or any other people to have completed the canal so quickly and so cheaply.

The Americans brought to the task another spirit. The canal was to be constructed not in the hope of making money, but, rather, as a great national and popular undertaking, designed to bring the two coasts of the great Republic in closer communication for purposes of commerce and defense.

The early estimates made by the American engineers were far too low, but the French experience had taught the United States to expect such an outcome. Indeed, it is doubtful if anybody believed that the first estimates would not be doubled or quadrupled before the canal was finished.

The journey of the U. S. S. _Oregon_ around the Horn from Pacific waters to the theater of the War with Spain in the Caribbean, in 1898, impressed upon the American public the necessity of building the canal as a measure of national defense. Commercial interests long had been convinced of its necessity as a factor in both national and international trade, and, when it was realized that the _Oregon_ would have saved 8,000 miles if there had been a canal at Panama, the American mind was made up. It determined that the canal should be built, whatever the cost.

From the very first there was never any question that the necessary money would be forthcoming. It is a fact unprecedented in all parliamentary history that all of the appropriations necessary for the construction and completion of the Isthmian waterway were made by Congress without a word of serious protest.

During the same War with Spain that convinced the United States that the canal must be built, a long forward step was taken in the science of medicine as concerned with the prevention and control of tropical diseases. The theory that yellow fever was transmitted by mosquitoes had been proved by a Cuban physician, Dr. Carlos Finley, a score of years earlier. An Englishman, Sir Patrick Manson, had first shown that disease might be transmitted by the bites of insects, and another Englishman, Maj. Roland Ross, had shown that malaria was conveyed by mosquitoes. It remained, however, for American army surgeons to demonstrate, as they did in Cuba, that yellow fever was transmissible only by mosquitoes of the stegomyia variety and by no other means whatsoever.

With this knowledge in their possession the Americans were able to do what the French were not--to control the chief enemy of mankind in torrid climes. In the first years of the work the public, and Congress, reflecting its views, were not sufficiently convinced of the efficacy of the new scientific discoveries to afford the means for putting them into effect. The Isthmian Canal Commission refused to honor requisitions for wire screens, believing that they were demanded to add to the comfort and luxury of quarters on the Zone, rather than for protection against disease. But the outbreak of yellow fever in 1905 was the occasion for furnishing the Sanitary Department, under Col. W. C. Gorgas, with the necessary funds, and thus provided, he speedily and completely stamped out the epidemic. From that time on, no one questioned the part that sanitation played in the success of the project. The cities of Panama and Colon were cleaned up as never were tropical cities cleaned before. All the time, every day, men fought mosquitoes that the workers in the ditch might not be struck down at their labors.

The Americans, too, made mistakes. In the beginning they attempted to build the canal under the direction of a commission with headquarters in Washington. This commission, at long distance and by methods hopelessly involved in red tape, sought to direct the activities of the engineer in charge on the Isthmus. The public also was impatient with the long time required for preparation and insistently demanded that "the dirt begin to fly."

The work was begun in 1904. It proceeded so slowly that two years later the chairman of the Isthmian Canal Commission asserted that it must be let out to a private contractor, this being, in his opinion, the only way possible to escape the toils of governmental red tape. The then chief engineer, the second man who had held that position while fretting under these methods, was opposed to the contract system. Bids were asked for, however, but all of them were rejected.

Fortunately, Congress from the beginning had left the President a practically free hand in directing the course of the project. Mr. Roosevelt reorganized the commission, made Col. George W. Goethals, an Army engineer, chairman of the commission and chief engineer of the canal. The constitution of the commission was so changed as to leave all the power in the hands of the chairman and to lay all of the responsibility upon his shoulders.

It was a master stroke of policy, and the event proved the choice of the man to be admirable in every way. From the day the Army engineers took charge there was never any more delay, never any halt in progress, and the only difficulties encountered were those of resistant Nature (such as the slides in Culebra Cut) and those of misinformed public opinion (such as the absurd criticism of the Gatun Dam).

The Americans, too, in the early stages of the work were hampered by reason of the fact that the final decision as to whether to build a sea-level canal or a lock canal was so long delayed by the conflicting views of the partisans of each type in Congress, in the executive branches of the Government, and among the engineers. This problem, too, was solved by Mr. Roosevelt. He boldly set aside the opinion of the majority of the engineers who had been called in consultation on the problem, and directed the construction of a lock canal. The wisdom of this decision has been so overwhelmingly demonstrated that the controversy that once raged so furiously now seems to have been but a tiny tempest in an insignificant teapot.

One other feature of the course of events under the American régime at Panama must be considered. Graft and corruption had ruined the French; the Americans were determined that whether they succeeded or not, there should be no scandal. This, indeed, in part explains why there was so much apparently useless circumlocution in the early stages of the project. Congress, the President, the engineers, all who were in responsible position, were determined that there should be no graft. There was none.

Not only were the Americans determined that the money voted for the canal should be honestly and economically expended, but they were determined, also, that the workers on the canal should be well paid and well cared for. To this end they paid not only higher wages than were current at home for the same work, but they effectively shielded the workers from the exactions and extortions of Latin and Oriental merchants by establishing a commissary through which the employees were furnished wholesome food at reasonable prices--prices lower, indeed, than those prevailing at home.

As a result of these things the spirit of the Americans on the Canal Zone, from the chairman and chief engineer down to the actual diggers, was that of a determination to lay the barrier low, and to complete the job well within the limit of time and at the lowest possible cost. In this spirit all Americans should rejoice, for it is the highest expression of the nearest approach we have made to the ideals upon which the Fathers founded our Republic.

It is impossible to leave out of the reckoning, in telling the story of the canal, the checkered history of the diplomatic engagements on the part of the United States, that have served both to help and to hinder the undertaking. What is now the Republic of Panama has been, for the greater part of the time since continental Latin America threw off the yoke of Spain, a part of that Republic having its capital at Bogota, now under the name of Colombia, sometimes under the name of New Granada, sometimes a part of a federation including Venezuela and Ecuador. The United States, by virtue of the Monroe doctrine, always asserted a vague and undefined interest in the local affairs of the Isthmus. This was translated into a concrete interest when, in 1846, a treaty was made, covering the construction of the railroad across the Isthmus, the United States engaging always to keep the transit free and open. Great Britain, by virtue of small territorial holdings in Central America and of larger claims there, also had a concrete interest, which was acknowledged by the United States, in the Clayton-Bulwer treaty of 1850, under which a projected canal should be neutral under the guarantee of the Governments of the United States and Great Britain.

For years the United States was inclined to favor a canal cut through Nicaragua, rather than one at Panama, and, after 1898, when the American nation had made up its mind to build a canal somewhere, the partisans of the Panama and Nicaragua routes waged a bitter controversy.

Congress finally decided the issue by giving the President authority to construct a canal at Panama, with the proviso that should he be unable to negotiate a satisfactory treaty with Colombia, which then owned the Isthmus, he should proceed to construct the canal through Nicaragua. Under this threat of having the scepter of commercial power depart forever from Panama, Colombia negotiated a treaty, known as the Hay-Herran treaty, giving the United States the right to construct the canal. This treaty, however, failed of ratification by the Colombian Congress, with the connivance of the very Colombian President who had negotiated it.

But President Roosevelt was most unwilling to accept the alternative given him by Congress--that of undertaking the canal at Nicaragua--and this unwillingness, to say the least, encouraged a revolution in Panama. This revolution separated the Isthmus from the Republic of Colombia, and set up the new Republic of Panama. As a matter of fact, Panama had had but the slenderest relations with the Bogota Government, had been for years in the past an independent State, had never ceased to assert its own sovereignty, and had been, indeed, the theater of innumerable revolutions.

The part the United States played in encouraging this revolution, the fact that the United States authorities prevented the transit of Colombian troops over the Panama Railway, and that American marines were landed at the time, has led to no end of hostile criticism, not to speak of the still pending and unsettled claims made by Colombia against the United States. Mr. Roosevelt himself, years after the event and in a moment of frankness, declared: "I took Panama, and left Congress to debate it later."

Whatever may be the final outcome of our controversy with Colombia, it may be confidently predicted that history will justify the coup d'état on the theory that Panama was the best possible site for the interoceanic canal, and that the rupture of relations between the territory of the Isthmus and the Colombian Republic was the best possible solution of a confused and tangled problem.

These diplomatic entanglements, however, as the canal is completed, leave two international disputes unsettled--the one with Colombia about the genesis of the canal undertaking, and the other with Great Britain about the terms of its operation.

Congress, in its wisdom, saw fit to exempt American vessels engaged exclusively in coastwise trade--that is to say, in trade solely between ports of the United States--from payment of tolls in transit through the canal. This exemption was protested by Great Britain on the ground that the Hay-Pauncefote treaty, which took the place of the Clayton-Bulwer treaty, provided that the canal should be open to all nations on exact and equal terms. The future holds the termination of both these disputes.

Congress, that never begrudged an appropriation, indulged in many disputes concerning the building and operation of the canal. First, there was the controversy as to site, between Nicaragua and Panama. Next, came the question as to whether the canal should be at sea level or of a lock type. Then there was the question of tolls, and the exemption of American coastwise traffic. But, perhaps the most acrimonious debates were on the question as to whether or not the canal should be fortified. Those who favored fortification won their victory, and the canal was made, from a military standpoint, a very Gibraltar for the American defense of, and control over, the Caribbean. That this was inevitable was assured by two facts: One that the trip of the _Oregon_ in 1898 crystallized public sentiment in favor of constructing the canal; and the other that the canal itself was wrought by Army engineers under the direction of Colonel Goethals. Colonel Goethals never for a moment considered the possibility that Congress would vote against fortifications, and the whole undertaking was carried forward on that basis.

If the military idea, the notion of its necessity as a feature of the national defense, was the determining factor in initiating the canal project, it remains a fact that its chief use will be commercial, and that its money return, whether small or large, nearly all will be derived from tolls assessed upon merchant vessels passing through it.

The question of the probable traffic the canal will be called upon to handle was studied as perhaps no other world-wide problem of transportation ever was. Prof. Emory R. Johnson was the student of this phase of the question from the beginning to the end. He estimates that the canal in the first few years of its operation will have a traffic of 10,000,000 tons of shipping each year, and that by 1975 this will have increased to 80,000,000 tons, the full capacity of the canal in its present form. Provision has been made against this contingency by the engineers who have so constructed the canal that a third set of locks at each end may be constructed at a cost of about $25,000,000, and these will be sufficient almost to double the present ultimate capacity, and to take care of a larger volume of traffic than now can be foreseen.

Americans are interested, first of all, in what the canal will do for their own domestic trade. It brings Seattle 7,800 miles nearer to New York; San Francisco, 8,800 miles nearer to New Orleans; Honolulu 6,600 miles nearer to New York than by the Strait of Magellan. Such saving in distance for water-borne freight works a great economy, and inevitably must have a tremendous effect upon transcontinental American commerce.

In foreign commerce, also, some of the distances saved are tremendous. For instance, Guayaquil, in Ecuador, is 7,400 miles nearer to New York by the canal than by the Strait of Magellan; Yokohama is nearly 4,000 miles nearer to New York by Panama than by Suez; and Melbourne is 1,300 miles closer to Liverpool by Panama than by either Suez or the Cape of Good Hope. Curiously enough, the distance from Manila to New York, by way of Suez and Panama, is almost the same, the difference in favor of Panama being only 41 miles out of a total of 11,548 miles. The difference in distance from Hongkong to New York by the two canals is even less, being only 18 miles, this slight advantage favoring Suez.

But it is not by measure of distances that the effect of the canal on international commerce may be measured. It spells the development of the all but untouched western coast of South America and Mexico. It means a tremendous up-building of foreign commerce in our own Mississippi Valley and Gulf States. It means an unprecedented commercial and industrial awakening in the States of our Pacific coast and the Provinces of Western Canada.

While it was not projected as a money-making proposition, it will pay for its maintenance and a slight return upon the money invested from the beginning, and in a score of years will be not only self-supporting, but will yield a sufficient income to provide for the amortization of its capital in a hundred years.

The story of how this titanic work was undertaken, of how it progressed, and of how it was crowned with success, is a story without a parallel in the annals of man. The canal itself, as Ambassador Bryce has said, is the greatest liberty man has ever taken with nature.

Its digging was a steady and progressive victory over sullen and resistant nature. The ditch through Culebra Mountain was eaten out by huge steam shovels of such mechanical perfection that they seemed almost to be alive, almost to know what they were doing. The rocks and earth they bit out of the mountain side were carried away by trains operating in a system of such skill that it is the admiration of all the transportation world, for the problem of disposing of the excavated material was even greater than that of taking it out.

The control of the torrential Chagres River by the Gatun Dam, changing the river from the chief menace of the canal to its essential and salient feature, was no less an undertaking. And, long after Gatun Dam and Culebra Cut cease to be marvels, long after the Panama Canal becomes as much a matter of course as the Suez Canal, men still will be thrilled and impressed by the wonderful machinery of the locks--those great water stairways, operated by machinery as ingenious as gigantic, and holding in check with their mighty gates such floods as never elsewhere have been impounded.

It is a wonderful story that this book is undertaking to tell. There will be much in it of engineering feats and accomplishments, because its subject is the greatest of all engineering accomplishments. There will be much in it of the things that were done at Panama during the period of construction, for never were such things done before. There will be much in it of the history of how and why the American Government came to undertake the work, for nothing is of greater importance. There will be something in it of the future, looking with conservatism and care as far ahead as may be, to outline what the completion of this canal will mean not only for the people of the United States, but for the people of all the world.

Much that might be written of the romantic history of the Isthmian territory--tales of discoverers and conquistadores, wild tales of pirates and buccaneers, serio-comic narratives of intrigue and revolution--is left out of this book, because, while it is interesting, it now belongs to that antiquity which boasts of many, many books; and this volume is to tell not of Panama, but of the Panama Canal--on the threshold of its story, fitted by a noble birth for a noble destiny.