THE REPUBLIC OF PANAMA. 821 



constructed should be a sea-level canal. A compan}^ entitled "Com- 

 pag-nie Universelle du Canal Interoceanique," and commonly known as 

 the Old Panama Canal Compan}^ was immediately organized to con- 

 struct the work. After various efforts it linanced the enterprise and 

 began work, which was prosecuted until May 15, 1889, when the com- 

 pany went into bankruptcy, and its effects were put into the hands of 

 ii liquidator — an officer of the French court corresponding closely to 

 the American receiver. 



Prior to the bankruptcy of the old compan}^ the project for a sea- 

 level canal was temporarily abandoned in the hope that the funds, 

 available might be sufficient for the construction of a lock canal. 

 After various vicissitudes the new Panama Canal Company was organ- 

 ized on the 20th of October, 1891. Work was resumed on the canal 

 immediately thereafter, and has been continued until the present time, 

 the force employed, however, being small. The old company raised 

 by the sale of stocks and bonds not far from $216,000,000, and it has 

 been stated that the number of persons holding the securities was over 

 200,000. 



When the concession for building the Panama Railroad was secured 

 from the Colombian Government, control of all available transporta- 

 tion routes across the Isthnuis in the territory of the present Republic 

 of Panama was covered by it. The construction of the ship canal by 

 the old Panama Canal Company was, therefore, subject to the rights 

 conveyed in the Panama Railroad concession. In order to control this 

 feature of the situation, therefore, the old Panama Company purchased 

 nearly the entire stock of the railroad company, which thus became a 

 part of the assets of the new Panama Canal Compan3\ 



KECOMMEXDATIOXS OF THE ISTHMIAN COMMISSION. . . 



When the Isthmian Canal Commission made its first visit of investi- 

 gation of the canal routes four years ago, it found a large amount of 

 excavation and other work done along the line of the canal,' as well as 

 a large amount of land, buildings, structures, and many plans and 

 papers, all constituting a part of the property of the new Panama 

 Canal Company. All this property was situated on the Isthmus, 

 except a mass of plans and papers in the office of the canal company 

 at Paris. The Commission, in its report under date of November 16, 

 1901, recommended, in case of selection of the Panama route, payment 

 of $40,000,000 to the new Panama Canal Company for all its property, 

 rights, and concessions connected with the unfinished canal. That 

 offer, as made by the United States Government, has since been 

 accepted b}' the French company. 



The Isthmian Canal Connnission adopted the French line for its 

 estimates, but made some material changes in the plans for the work. 

 The canal as plamied by the Connnission is a lock canal, its typical or 



