When this obstacle was removed the next step was to secure a canal
zone, and the United States entered into negotiations with the
Government of Colombia with that end in view. The result of the
negotiations was that an agreement was reached by which the Republic of
Colombia agreed to convey to the United States a strip of land thirty
miles wide and extending a marine league into the waters on either side
of the isthmus. The terms of the treaty were that the United States, in
consideration of the zone proposed to be transferred, should pay to the
Republic of Colombia ten million dollars in cash on the ratification
of the treaty by the separate governments, and commencing nine years
from the date of ratification, the sum of one hundred thousand
dollars a year for all time. This tentative treaty found great favor
in Washington, D. C., and was immediately ratified by the American
Senate, and then sent back to Bogota for ratification by the Colombian
authorities. But much to the astonishment and chagrin of the people of
the United States, and to the extreme disappointment of the people and
the authorities of Panama, this so-called Hay-Herran treaty was refused
ratification by the Colombian Senate.
The refusal of this ratification ultimately led to the secession
of Panama from its allegiance to the Republic of Colombia and the
acquirement of independence.
While on the Canal Zone in 1907 on an official visit I came into close
contact with the officials of Panama, particularly President Amador,
the first President of the Panama Republic, and General Arrias, who
held the combined offices of Secretary of State and War for the new
republic.
At a dinner given by the American Minister, being placed beside
General Arrias, I took occasion to inquire of him the reasons why the
Hay-Herran treaty was refused ratification by the Senate of Colombia,
after it had been tentatively agreed to by the Colombian authorities.
General Arrias’ explanation was to the effect that there were four
reasons why the Hay-Herran treaty was refused ratification on its
return to the Colombian Senate. The first was that the German influence
was strong in Colombia, and the German merchants and diplomats were
very much opposed to the extension of American influence down the west
coast of South America, particularly in the Colombian Republic. The
German merchants, seeing the collapse of the French Canal Company near
at hand, hoped that a German company might purchase the wreck of the
French enterprise and carry the canal to completion, realizing that
this course would mean much in the way of German aggrandizement.
The second influence, according to General Arrias, was that of the old
transcontinental railroad management of the United States. Popular
demand for an isthmian canal having swept away all obstruction at
Washington, D. C., the scene of operations was shifted to Bogota, and
railroad influence and railroad money were probably used to induce some
of the Senators to refuse to vote for the ratification of the treaty.
The third influence was that of patriotism. Some of the Colombian
Senators were opposed to a transfer of any portion of Colombian soil
to a foreign power, more especially as the Colombian constitution
contained a clause making it treason for any Colombian subject to
become a party to the alienation of any part of Colombian territory to
another country.
The fourth and the most potent influence was the fact that the French
Panama Canal Company had failed in every respect to keep the terms of
their contract with the Colombian Government. Not only had they failed
to complete the canal at the time specified in their franchise, but
having obtained an extension of that time, had failed to observe the
terms by which the extension had been secured.
Therefore the Colombian Government might very properly proceed to a
forfeiture, which could be obtained through due process of law in
something less than ten months’ time.
Many of the Colombian Senators took the position that it would be
lawful and more expedient to declare a forfeiture upon the French
company, and take over the canal under the terms of such forfeiture
as provided by the franchise. The Republic of Colombia would then
be in a position to sell the same to the American Government for
forty million dollars, and since then they would secure ten million
dollars for a zone and a perpetual rental of a large sum annually, the
financial condition of the country would be very much improved. As the
finances of the Republic of Colombia were at that time in a desperately
depleted condition, this prospect of their rehabilitation must have had
powerful effect with many of the Senators.
[Illustration: GATUN MIDDLE LOCK, LOOKING SOUTH FROM EAST BANK.]
These four reasons operating, no doubt caused the Colombian Senate to
refuse ratification to the Hay-Herran treaty.
But in Panama the people and the authorities were determined not to
submit to the action of the Colombian Senate. The Panamanians were
aware of the fact that the President of the United States had been
authorized by Congress to make a choice between either the French
Panama or the Nicaraguan route, and that under that authority he would
at once proceed to close a contract with the Maritime Canal Company of
Nicaragua if he could not secure a canal zone. They also realized that
if once the American Government began the work of excavating a canal
through Nicaraguan and Costa Rican territory, in all human probability,
the French Panama Company’s project would be abandoned.
Thus the cities of Colon and Panama, and the territory surrounding,
would be relegated to obscurity so far as world’s trade was concerned,
for many years. This the Panamanians were determined to prevent
if possible, so they took every step necessary to inaugurate and
successfully carry out a revolution in case of the refusal of the
Colombian Government to ratify the Hay-Herran treaty. They sent Dr.
Varilla as their representative to New York and instructed him to
remain in close touch with the cable, and should he receive a cablegram
that Panama had thrown off her allegiance to Colombia and had resumed
her old-time independence, he should proceed at once to Washington,
D. C., notify President Roosevelt of the fact, demand recognition of
the new Republic of Panama as an independent power, and enter at once
into negotiations with the United States for the recognition of that
independence and the transfer of a canal zone.