The United States to the Rescue
The United States, not unmindful of the advantages of an Isthmian Canal, had from time to time, made surveys of the various routes. With a view to government ownership and control, Congress directed an investigation, with the result that the Commission reported, on November 16, 1901, in favor of Panama and recommended the lock type of canal, appraising the value of the rights, franchises, concessions, lands, unfinished work, plans and other property, including the railroad of the new Panama Canal Company, at $40,000,000. An act of Congress, approved June 28, 1902, authorized the President of the United States to acquire this property at this figure, and also to secure from the Republic of Colombia perpetual control of a strip of land not less than six miles wide across the Isthmus and the right to excavate, construct and operate and protect thereon a canal of such depth and capacity as would afford convenient passage to the largest ships now in use or which might be reasonably anticipated.
Later on a treaty was made with the Republic of Panama whereby the United States was granted control of a ten-mile strip constituting the Canal Zone. This was ratified by the Republic of Panama on December 2, 1903, and by the United States on February 23, 1904. On May 4, 1904, work was begun under United States control.