valuation submitted by the Company, and merely stated that "the total amount for which the Company offers to sell and transfer its canal property to the United States " is $109,141,500. The Commission's estimate of the value was $40,000,000!

The report terminated with the following recommendation: "After considering all the facts developed by the investigations made by the Commission and the actual situation as it stands now, and having in view the terms offered by the New Panama Canal Company, this 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 Nicaragua route."

When the decision became known in Paris consternation seized the directors of the Company. They inferred, however, that it was not conclusive and realized from the phrase, " and having in view the terms offered by the New Panama Canal Company," that the chief obstacle was the question of price, but they would not assume the responsibility of selling the property for such an inadequate sum as that suggested by the Commission and resigned.

A general meeting of the stockholders was immediately held at which it was determined to submit to the estimate of the Commission. There was practically nothing else to do. If the United States should proceed with its unlimited resources to construct a waterway at Nicaragua the Company could never hope to complete its undertaking, or to make it profitable if completed. The decision of the stockholders was promptly telegraphed to the Commission and led to a supplementary report stating that "the unreasonable sum asked for the property and rights of the New Panama Company when the Commission reached its former conclusion overbalanced that route, and now that the estimates of the two routes have been nearly equalized the Commission can form its judgment by weighing the advantages of each and determining which is the more practicable and feasible. After considering the changed conditions that now exist, 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 Panama route."

Congress passed the Spooner Bill, authoriz

ing the President to acquire the property and rights of the New Panama Canal Company for a sum not to exceed $40,000,000 and to negotiate with the Colombian Government for the perpetual control of the territory needful for operating the Canal; it also directed the President to place the work in the hands of a commission to consist of seven members of his own appointment.

In 1903, Secretary Hay and Doctor Herran negotiated a treaty designed to secure to the United States the right of constructing a canal through the Isthmus of Panama and of exercising perpetual jurisdiction over the strip of territory traversed by it. In return for these benefits a payment of $10,000,000 was to be made to Colombia. The politicians of that country, in their dealings with the Panama Railroad and the French canal companies, had become so accustomed to the milking process as applied to concessionaries that they looked upon the American overtures as a providential opportunity for playing the game anew. The national legislature declined to ratify the treaty, no doubt with the expectation that a better offer would be made. Indeed, the Colombians had every reason to believe that they

could extort almost any terms that they might choose to impose, for the French concession had only until October, 1904, to run.

The action of the politicians at Bogotá was far from pleasing to the people of Panama, who fully appreciated the great advantages which would accrue to them from the construction of a canal by the United States. They had long been dissatisfied with the central government and had more than once revolted against it. At this juncture their leading men determined to take matters into their own hands. They sent secret emissaries to the United States who reported that in the event of the Province of Panama throwing off the yoke of Colombia, there was no doubt about the United States recognizing its independence. The activities of these agents, the principal of whom was Dr. Amador, who became the first president of the new republic, soon came to the knowledge of the authorities at Bogotá and led them to take steps before the revolutionists had carried their preparations any farther than the stage of planning.

A detachment of the half-clad and poorly armed youths who composed the Colombian army were despatched to Colon for the purpose of seizing the conspirators and conveying them

valuation submitted by the Company, and merely stated that "the total amount for which the Company offers to sell and transfer its canal property to the United States" is $109,141,500. The Commission's estimate of the value was $40,000,000!

The report terminated with the following recommendation: "After considering all the facts developed by the investigations made by the Commission and the actual situation as it stands now, and having in view the terms offered by the New Panama Canal Company, this 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 Nicaragua route."

When the decision became known in Paris consternation seized the directors of the Company. They inferred, however, that it was not conclusive and realized from the phrase, "and having in view the terms offered by the New Panama Canal Company," that the chief obstacle was the question of price, but they would not assume the responsibility of selling the property for such an inadequate sum as that suggested by the Commission and resigned.