98 AMERICAN DIPLOMATIC QUESTIONS 



should undertake and maintain the work upon a national 

 basis promised an uncertain future to this Syndicate as it 

 augured ill for the moribund Maritime Company. 1 



Despite the excellent showing made by the representatives 

 of the Panama Company in the Congressional investigation 

 of January, 1899, and the resulting appointment of a scien- 

 tific commission to examine that route, the star of that ill- 

 fated project lost lustre as the new year (1900) approached. 

 Every one remembered too well the brilliant promises of the 

 old company, which had never been fulfilled; indeed, the 

 whole distressing story of failure and fraud was too fresh in 

 mind to permit even the chance of its repetition. 



Suspicion began to attach to the sudden revival of this 

 Panama scheme, and the impression gained ground, and 

 finally prevailed, that its sudden advertisement was, after 

 all, but a clever move, on the part of the transcontinental 

 railroad lobby, to divert public attention from the only feasi- 

 . ble canal route. Despite the prejudice it encountered in the 

 United States, the Panama Company continued its strenuous 

 efforts to impress the country favorably with its prospects. 

 The latest move of its promoters has been in the direction of 

 " Americanizing " the French company. As an initial step, it 

 organized in New Jersey, at about the beginning of the year 

 1900, the " Panama Canal Company of America," to which 

 the rights of the French company should eventually be trans- 

 ferred. In this manner the Panama promoters hoped to 

 place their project upon an equal footing with the other two 

 American companies in the race for governmental recognition. 



Although the scientific commission was still in the field 

 at the opening of the 56th Congress (December, 1899), the 

 canal committees in both branches decided not to wait for 

 Admiral Walker's report, which was not due for many months. 

 A more propitious moment for carrying through a canal meas- 

 ure had never before existed. The private companies having 

 suffered themselves to become involved in difficulties from 



1 The Grace Syndicate failed to meet its obligation to pay the balance of 

 $400,000 upon the stipulated date ; the Nicaraguan authorities accordingly 

 declared its franchise cancelled. 



