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the former being more “ feasible," all things' considered. The publication of the report, which practically shelyed their hopes, electrified the French stockholders into immediate action, and before the year 1901 had reached the close, word was received from Paris that an offer of $40,000,000 for the company's plant would be entertained. Upon receipt of this inforination, the commission appended a rider to its previous report, setting forth that in view of the changed conditions that now exist," the Panama route would be the most practicable and feasible for an isthmian canal under the control, management and ownership of the United States.

It was

Congress Moves in the Matter.

While the negotiations between the canal commission and the French stockholders were under way, the Hepburn bill favoring the Nicaragua route was passed by the House of Representatives. In the Senate the bill met with determined opposition, and was warmly debated. shown that the preponderance of opinion, not only from an engineering standpoint, but from those engaged in ocean commerce, favored the Panama route. At this juncture what is known as the Spooner bill (fathered by Hon. John C. Spooner, the little statesman from Wisconsin), came to the rescue, and was finally passed by both houses. This measure, under which operations are now going forward, provides "for the construction of a canal connecting the waters of the Atlantic and Pacific Oceans," and contains among its authorizations the following:

1. To acquire the property, rights and privileges of the New Panama Canal Company, including the Panama Railroad, at a cost not to exceed $40,000,000.

2. To acquire from Colombia perpetual control of a strip of land not less than six miles wide extending from the Caribbean Sea to the Pacific Ocean, and the right to

govern it.

1

3. To proceed with the excavation of a ship canal upon payment to the French company of the famouit agreed upon.

4. In case negotiations with the French company,or the Republic of Colombia should prove : unsuccessful, to acquire control over the necessary territory in Nicaragua or Costa Rica for the construction of a canal.

5. Appropriating $10,000,000 for preliminary expenses, and providing for appropriations from time to time of amounts which shall not exceed in the aggregate the additional sum of $135,000,000, in case of the adoption of the Panama route.

6. Guaranteeing the republic whose territory is crossed, the use of canals and harbors coming within the six-mile jurisdiction aforesaid.

7. Creating an isthmian canal commission of seven members, four of whom shall be persons learned and skilled in the science of engineering, one of the four to be an officer of the United States Army, and one to be an ficer of the United States Navy.

8. Providing for the issuance of bonds for canal expenditures.

This bill was approved by the President on June 28, 1902.

The Treaty With Panama.

The history of the secession movement and the failure of the United States in negotiating a canal treaty with the Republic of Colombia is fully covered in another article. No time was lost in carrying through a treaty with the new Republic of Panama, as the following record shows:

Separation of Panama from Colombia, November 3, 1903.
New republic recognized by the United States, November 6, 1903.
Canal treaty signed at Washington, November 18, 1903.
Ratified by Panama, December 2, 1903.
Ratification advised by the U.S. Senate, February 23, 1904.

9. Chenalloy Co.,

Corner 9th Street and Bottle Alley, Colon, R. P.

Wholesale, Retail and Commission Merchants. DEALERS IN CHINESE AND JAPANESE SILKS. AGENTS FOR

P. A. Benjamin Mfg. Co's Medicinal and Toilet Preparations.
Auguste Pellerin's "Omnibus”, “Ledensk”, and Colonial Brands of Oleomargarine,
The Anglo-Saxon Condensed Milk Co's Shepherd Brand of Condensed Milk.
Pope Manufacturing Co's RAMBLER BICYCLES.
The Standard Brand Red Cross Tea.
Sir Edward Lee's Whisky.
Hand Brand Kola Wine.
Job Bros. & Co., St. John's N. F., Fish Packers.

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CABLE ADDRESS:

Address all Correspondence and Inquiries "SAMLOY, COLON. S. CHENALLOY & Co. A. B. C. 4th Edition & Lieber's Codes. P. O. Box: 194, Colon.

Ratified, by the President of the United States, February 25, 1904,
Ratifications exchanged at Washington, February 26, 1904.
Proclaimed, February 26, 1904.
The full text of the treaty follows:-

The United States of America and the Republic of Panama being desirous to insure the construction of a ship canal across the Isthmus of Panama to connect the Atlantic and Pacific Oceans, and the Congress of the United States of America having passed an act approved June 28, 1902, in furtherance of that object, by which the President of the United States is authorized to quire within a reasonable time the control of the necessary territory of the Republic of Colombia, and the sovereignty of such territory being actually vested in the Republic of Panama, the high contracting parties have resolved for that purpose to conclude a convention, and have accordingly appointed as their plenipotentiaries: The President of the United States of America, John Hay, Secretary of State, and the Government of the Republic of Panama, Philippe Bunau

Varilla, Envoy Extraordinary and Minister Plenipotentiary of the Republic of Panama, thereunto specially empowered by said government, who after communicating with each other their respective full powers, found to be in good and due form, have agreed upon and concluded the following articles:

INDEPENDENCE OF PANAMA. ART. 1.

The United States guarantees and will maintain the independence of the Republic of Panama.

CANAL ZONE. The Republic of Panama grants to the United States in ART. 2. perpetuity the use,ocenpation and control of a zone of land,

and land under water for the construction, maintenance, operation, sanitation and protection of said Canal of the width of teú miles extending to the distance of five miles on each side of the center line of the route of the Canal to be constructed; the said zone beginning in the Caribbean Sea three marine miles from mean low water mark and extending to and across the Isthmus of Panama into the Pacific Ocean to a distance of three marine miles from mean low water mark with the proviso that the cities of Panama and Colon and the harbors adjacent to said cities, which are included within the boundaries of the zone above described, shall not be included within this grant. The Republic of Panama further grants to the United States in perpetuity the use, occupation and control of any other lands and waters outside of the zone above described which may be necessary and convenient for the construction, maintenance, operation, sanitation, and protection of the said Canal, or of any auxiliary canals, or other works necessary and convenient for the construction, maintenance, operation. sanitation and protection of the said enterprise.

The Republic of Panama further grants in like manner to the United States in perpetuity all islands within the limits of the zone above described,and in addition thereto the group of small islands in the Bay of Panama, named Perico, Naos, Culebra and Flamenco.

AUTHORITY IN CANAL ZONE.

The Republic of Panama grants to the United States all the ART. 3. rights, power and authority within the zone mentioned and

described in Article 2 of this agreement and within the limits of all auxiliary lands and waters mentioned and described in said Article ? which the United States would possess and exercise if it were the sovereign of the territory within which said lands and waters are located, to the entire exclusion of the exercise by the Republic of Panama of any such sovereign rights, power or authority.

SUBSIDIARY RIGHTS. As rights subsidiary to the above grants the Republic of ART. 4. Panama grants in perpetuity to the United States the right

to use the rivers, streams, lakes and other bodies of water within its limits for navigation, the supply of water or water-power or

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