PART I.-ISTHMIAN PROJECTS.*

CHAPTER XX

HISTORY OF ISTHMIAN TRANSPORTATION PROJECTS WITH ESPECIAL REGARD TO RAILWAYS

INTRODUCTORY ACCOUNT OF TRANSPORTATION PROJECTS UNDER SPAIN

The political and commercial importance of the narrow land bridge between the continents of North and South America were early recognized by Spain. Here, by a few miles overland travel, one could enter the great Pacific whose waters washed the far Spice Isles and the golden shores of the Orient. Just a little to the south lay Peru, and Pizzaro noted the significance of the isthmus of Darien. Balboa in 1513 was the first European to cross the isthmus, at which time he trod his classic steps into the calm waters of the new ocean, claiming them for his master, the king of Spain. To more practical effect, he actually transported materials across the mountains for constructing a small fleet with which to make the conquest of the "South Sea.''1 King Ferdinand established a line of posts from sea to sea, and by his order the city of Panama was begun during the month of August, 1517, a road being constructed to this point from Nombre de Dios. In 1522 Gonzales discovered Lake Nicaragua and sailed down the San Juan river to the

The term isthmus will be used to cover the whole extent of narrow land between Tehuantepec and Darien, thus embracing the Tehuantepec, Nicaragua, Panama and Darien routes.

1 See Rep. of Isth. Canal Com., 1899-1901, Wash., D. C. 1901 (H. R. 15) This contains a valuable introductory chapter on early Isthmian projects.

Gulf. Charles V. took an active interest in establishing communication across the isthmus, and, though the hoped-for strait was not to be discovered, commerce increased and Panama became an important port. The gold and silver of Peru and the wealth of Asiatic trade were here transhipped, and caried in packs across the isthmus to be placed aboard homeward bound galleons. But little later-between 1520 and 1527Cortez in Mexico explored both coasts to the north. He found the most feasible route to lie up the Coatzacoalcos river and thence across the isthmus to Tehuantepec, and a profitable commerce soon followed that line. Finally Charles V. had an examination made with the idea of connecting the head of navi gation on the Chagres with the Pacific by means of a canal, but this was reported to be impracticable. Thus in the early days of exploration Spain was active in seeking to develop a practicable line of transportation across the isthmus, and the Panama and Tehuantepec routes were followed by lucrative trade.

When Phillip II. came to the throne experimentation ceased. Spain for a time attempted to conceal from the world the significance of the isthmian region, and not till toward the close of the eighteenth century did new projects become of importance. "At the close of the eighteenth century

the Cordilleras still kept the two oceans apart; the old transits had fallen into disuse * *; the chief exception being at Tehuantepec, where a communication across the isthmus had once more been opened."

QUASI-PRIVATE PROJECTS OF FOREIGN INTERESTS:

1827-1850

Von Humboldt's visit and the account concerning isthmian conditions and topography which he published aroused new interest in connecting the two oceans, but the glory of this feat was forever denied to Spain, for the revolt of Mexico in 1822 and of her other American colonies at about this time gave the

2 Ibid., p. 29.

$ See Niles' Register, LXV, 302-3, for a sketch of the history of isthmian communications.

Rep. of Isth. Can. Com., above cited.

"Niles' Register, LXV, 302-3.

isthmus itself into other hands and the work was taken up by the various states of America. A period ensues which for the most part is characterized by an attempt to exploit the isthmian transportation possibilities by various private individuals or corporations. Several European 'governments were concerned, as were, of course, those states of Central America through which the different routes passed; but the ends were not predominatingly nor largely political. This was the period, too, when the railway began to play a part in the various projects. Remembering that as early as 1825 the enterprise of the United States began to figure in this matter, it will be well to first proceed with the thread of foreign events.

6

Between 1819 and 1821 Bolivar-as President of Columbia, a political unit embracing New Granada, Venezuela, and Ecuador-was stimulated by Humboldt's work to conceive plans for joining the seas, and in 1827 one, J. A. Lloyd, made surveys to that end. He advised the use of a canal, the river Chagres, and a railroad from thence to Panama; but the only result from the investigation seems to have been to prove that a good road of some description was entirely practicable."

About the same time (1830) the Holland-or Netherlands— Company, in which the government of that name was interested, was projecting a canal over the Nicaragua route, but the project was soon abandoned.

The next important development was the granting of the privilege to construct a canal at Panama to Count Charles de Thierry, an Englishman by birth. The grant was made by New Granada in 1835. De Thierry was unable to carry out his plans, however, and got French capitalists of Guadaloupe to take them over. These new interests secured valuable concessions, but, though the time limit was extended more than

1825-26, Aaron H. Palmer of N. Y. obtained a transportation contract and endeavored to interest capitalists in this country and England; but failed, and his contract expired.

The article in Niles' Register above cited says, "Unfortunately these two talented engineers (the surveyors). occupied solely with the idea of rendering the Chagres river navigable, and of connecting it with Panama by a railroad, directed their attention in the first place to Cruces, whence they descended to Chagres, leaving thus unexplored the wide valley extending along the left bank of the river."

8 See Niles' Register, LXV, 279 (1839); ibid., 303; and Rep. of Isth. Can. Com.

once, they were unable to utilize them. It is significant that the means considered were either a canal, railway, or macadamized road. But in 1843 an engineer named Napoleon Garella reported against the railway on the ground that such a means was of local interest only, and nothing less than a ship canal would attract the world's commerce."

Other developments came in 1842 when the Mexican government appears to have given to a certain Don Jose de Garay exclusive privileges at Tehuantepec;10 and in May, 1847, New Granada granted to the Panama Company, a French concern represented by Mateo Kline, exclusive right for ninety-nine years to construct a railway across the isthmus, which right was forfeited through failure to carry out the contract.11 About this time Great Britian was pursuing an aggressive policy in Central America looking toward acquiring control of the San Juan river, and this condition led up to the now famous Clayton-Bulwer treaty of 1850, with which treaty this brief record of foreign isthmian projects may be closed. Sufficient material has been presented to emphasize the nature of the period from 1827 to 1850 as one during which French, English, Dutch, Mexican, and American companies projected canals and railways over the isthmian region.

THE UNITED STATES TAKES A HAND

The private projects just recorded seem to have been made with little or no regard to the United States of America; but the successful revolt of the Spanish colonies and political developments in Europe and this country soon made such a condition impossible. In 1823 the Monroe Dectrine was formulated, and from that time on the construction of a canal or railroad over the isthmus by European interests 'with no reference to the interests of the United States nor surety against encroachment upon the sovereignty of the American republics became in

Rep. of Com., 1848-49, No. 145, p. 589. The whole volume is devoted to engineers' reports, travellers' accounts, etc. concerning transportation to the Pacific. 10 De Bow's Review, 1847, pp. 496-502. See below, p. 397. Sen. Docs., 1851-52, X, No. 97.

11 Rep of Isth. Canal Com., p. 50.

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creasingly improbable. The opposition to sending delegates to the Panama Congress (1824-26), however, seems to indicate that at this time sentiment against the interference of European powers was not as general as might be supposed. Very soon after the fall of Spanish power in America evidence appears that Congress was taking interest in isthmian communication developments. In 1825 the House resolved "That the Committee on Naval Affairs be instructed to inquire into the expediency of establishing a line of communication between the Atlantic and Pacific Oceans, though the Isthmus of Panama. No action was taken upon the resolution, but at the following session a similar resolution led to a report on the subject.13 It will be observed that it was just at this time that Aaron H. Palmer of New York was endeavoring to float his isthmian enterprise. This early show of interest by Congress is doubtless to be connected with the events surrounding the revolt of the Spanish American colonies, the Monroe Doctrine, and the Panama Congress. The first very active participation of the United States in isthmian transportation projects only came some ten years later.

THE MISSION OF COLONEL CHARLES BIDDLE

On March 3, 1835, the Senate passed a resolution to the effect that the President be requested to take steps for protecting isthmian projectors in their rights.14 Accordingly, in 1837, a message from President Jackson was submitted which stated that the above request had been complied with and that an agent had been despatched to examine the various routes and the "state of projects understood to be contemplated for opening such communication by a canal or a railroad. "15 The message concluded by announcing that the probablity of a speedy opening of communication was not so great. as to require a treaty. The agent referred to was one Col. Charles Biddle and this mission of his forms one of the most interest

12 H. J., 1825-26, p. 71.

13 H. J., 1826-27, pp. 101, 200.

14 8. J., 1834-35, p. 238.

15 Ibid., 1836-37, pp. 100-101.