CHAPTER XI

THE ORGANIZATION

When the United States finally decided to build the Panama Canal, the

next question of gravity which pressed for consideration was the

creation of the organization by which it was to be built. Many

problems were encountered, and after repeated changes in personnel and

rearrangements of duties, the situation finally resolved into an

organization headed by one man, clothed with the necessary powers, and

held responsible for the consequent results.

The completion of the preliminaries for the acquisition of title to

the Canal Zone and to the property and rights of the New Panama Canal

Company took place when Congress, on April 28, 1904, made an

appropriation of $10,000,000, which was to be paid to the Republic of

Panama. Six days later the United States formally took possession of

the Canal Zone and of the property of the Panama Canal Company, when

at 7:30 o'clock in the morning, Lieut. Mark Brooke, of the United

States Army, took over the keys and raised the American flag. The

following day President Roosevelt announced the appointment of John

Findley Wallace, of Massachusetts, as chief engineer of the canal at a

salary of $25,000 a year, the appointment to be effective on the 1st

day of June.

The first ship to arrive at Panama carried Maj. Gen. George W. Davis,

who was to govern the Canal Zone; Col. William C. Gorgas, who was to

make it sanitary; and George R. Shanton, who was to drive out the

criminal element. Governor Davis was a member of the Isthmian Canal

Commission, Colonel Gorgas had proved his worth in the sanitation of

Cuba, and Shanton had been a "rough rider" with Colonel Roosevelt in

the Cuban campaign.

When Chief Engineer Wallace arrived on the scene he found there an all

but abandoned project. There were hundreds of French houses, but

nearly all of them were in the jungle and practically unfit for human

habitation. He found millions of dollars' worth of French machinery,

but almost none of it in condition to be put into service immediately.

He knew in a general way the line of the canal, but surveys were

lacking to determine its exact location at every point. With this

situation in front of him, he found it necessary to concentrate his

efforts upon the problem of getting ready for the work. While he was

doing this the people at home began to demand that the dirt fly.

Colonel Gorgas also found conditions which challenged his best

efforts. Colon was a paradise of disease, Panama was no better. It was

only by making both of these cities over again, from a sanitary

standpoint, that any hope could be held out for reasonably healthy

conditions.

During his stay on the Isthmus Mr. Wallace found himself handicapped

at every turn by red tape, a new thing in his experience as a

construction engineer. He could buy nothing without asking for bids;

every idea he sought to put into execution had to be submitted to

Washington, and he found himself so harassed and handicapped that he

wanted a new plan of organization.

Acting in accordance with his recommendations, President Roosevelt

decided to accept the resignation of the existing Canal Commission,

and to appoint a new one, in which, instead of having independent

departments, with the governor independent of the chief engineer, and

the chief sanitary officer independent of both the governor and the

chief engineer, there should be a more united relation, in which all

questions were to be decided by the commission as a whole, the final

authority being vested in an executive committee composed of the

chairman, the governor of the Canal Zone, and the chief engineer.

Under this plan, the second Isthmian Canal Commission was organized.

It consisted of Theodore P. Shonts, chairman; Charles E. Magoon,

Governor of the Canal Zone; John F. Wallace, chief engineer; Mordecai

T. Endicott; Peter C. Hains; Oswald H. Ernst; and Benjamin A. Harrod.

Following the suggestion of Chief Engineer Wallace, the control of the

Panama Railroad was also vested in the new commission.

While these changes were being made Chief Engineer Wallace was in

Washington. There was dissatisfaction on the Isthmus with an

accompanying spirit of unrest, and, to make matters worse, a

yellow-fever epidemic broke out. Only a few days after Mr. Wallace

reached the Isthmus, he cabled the Secretary of War that he wished to

return to Washington, hinting that he might resign. Secretary Taft

cabled to Governor Magoon for an opinion as to the motives which were

behind this step on the part of Mr. Wallace, and was advised that it

was brought about by the offer of a better salary and the fear of the

yellow-fever epidemic. When Mr. Wallace reached New York he had a

stormy interview with Secretary Taft, who roundly denounced him for

quitting at such a critical time. Mr. Wallace declared his lack of

confidence in the ability of Colonel Gorgas to control the

yellow-fever epidemic, and asserted that the continual interference of

red tape was so distracting to him as to make new employment

attractive. President Roosevelt upheld his Secretary of War in his

denunciation of Mr. Wallace, and promptly appointed John F. Stevens

chief engineer at a salary of $30,000.

John F. Stevens arrived on the Isthmus on July 27, 1905. He found the

Panama Railroad almost in a state of collapse. He declared that the

only claim heard for it was that there had been no collisions for some

time. "A collision has its good points as well as its bad ones," he

observed, "for it indicates that there is something moving on the

railroad."

Mr. Stevens immediately set to work to build up the road, and to

provide the means for housing and feeding the canal army. But like his

predecessor he found Government red tape hampering, and in his first

annual report begged for "a thorough business administration

unhampered by any tendency to technicalities, into which our public

work sometimes drifts." He protested against civil-service

requirements on the Isthmus, and against the eight-hour working day;

and President Roosevelt met his protests by exempting all employees

except clerks from the operations of civil-service rules, and by

abrogating the eight-hour day.

It was under the régime of Mr. Stevens that the question arose as to

whether the canal should be built as a sea-level channel through the

Isthmus, or as a lock canal with the water in the middle section 85

feet above the level of the sea. President Roosevelt thereupon

appointed a board of consulting engineers, made up of 14 members, to

visit the Isthmus and determine what type of canal should be built.

Five members of this board of consulting engineers were foreigners

appointed by their respective Governments at the request of President

Roosevelt. They included the inspector general of Public Works of

France, the consulting engineer of the Suez Canal, the chief engineer

of the Manchester Canal, the chief engineer of the Kiel Canal, and the

chief engineer of the Dutch dike system. Three of the American

engineers and all five of the foreign engineers voted in favor of a

sea-level canal. Chief Engineer Stevens and all but one member of the

Isthmian Canal Commission concurred in the vote of the minority, made

up wholly of American engineers in favor of the lock canal. President

Roosevelt sustained the minority report, and Congress sustained him in

the law of June 29, 1906.

In the fall of 1906 Chairman Shonts came out in advocacy of a plan to

build the canal by contract. Here arose a difference between Mr.

Shonts and Mr. Stevens, and Chairman Shonts shortly thereafter

resigned. A few months later Chief Engineer Stevens also resigned. It

is said that his resignation was mainly due to his objection to the

appointment of Army engineers as members of the Canal Commission, and

to a letter he wrote the President in which he scored the limitations

of red tape and Government methods generally. When Mr. Stevens quitted

the Isthmus he left behind him the nucleus of the general organization

for building of the canal. He saw housing conditions brought up to the

required standard, established the necessary commissary where canal

employees could supply their needs at reasonable prices, and aided

Colonel Gorgas in his fight to make the Isthmus healthful.

At this juncture the organization destined to build the canal was put

into effect, with Colonel George W. Goethals at its head. Colonel

Gorgas, the chief sanitary officer, was the only important official of

the old régime held over. The other members of the commission were

Maj. D. D. Gaillard and Maj. William L. Sibert, of the United States

Engineer Corps; Civil Engineer H. H. Rousseau, of the United States

Navy; and Messrs. J. C. S. Blackburn and Jackson Smith.

[Illustration: MAJ. GEN. GEORGE W. DAVIS REAR ADMIRAL J. G. WALKER

THEODORE P. SHONTS JOHN F. WALLACE

JOHN F. STEVENS CHARLES E. MAGOON]

[Illustration: RICHARD LEE METCALFE EMORY R. JOHNSON

MAURICE H. THATCHER JOSEPH BUCKLIN BISHOP

H. A. GUDGER JOSEPH C. S. BLACKBURN]

Under former commissions the Governor of the Canal Zone had ranked

above the chief engineer, and the chairman, the chief engineer, and

the governor had had rival powers, which resulted in a great deal of

friction. Under the new order the offices of chairman and chief

engineer were consolidated, and the governor was reduced to the title

of "head of the Department of Civil Administration," reporting to the

chairman, as did the chief sanitary officer and all of the division

engineers.

This commission, in personnel, remained intact during the long period

of construction, except for the resignation in 1908 of Jackson Smith,

who was succeeded by Lieut. Col. Harry F. Hodges; and for the

resignation in 1910 of Mr. Blackburn, who was succeeded by Morris H.

Thatcher. Mr. Thatcher, in turn, was succeeded in 1913 by Richard L.

Metcalfe as head of the Department of Civil Administration.

During the construction period there were several rearrangements of

the duties of the Army engineers associated with Colonel Goethals.

From June, 1908, Major Gaillard, afterwards promoted to a

lieutenant-colonelcy, was in charge of the ditch-digging work between

Gatun and Pedro Miguel, which included the entire Gatun Lake and

Culebra Cut sections. It is everywhere admitted that so far as

difficulties were concerned, he had the hardest job on the Isthmus,

next to the chief engineer. Colonel Gaillard entered the United States

Military Academy in 1884 and was graduated with honors entitling him

to appointment in the Corps of Engineers. Before being selected as a

member of the Canal Commission, he had had much experience in

important work. For two years he was in charge of all river and harbor

improvement in the Lake Superior region. When he first went to the

Isthmus he was assigned as the supervising engineer in charge of

harbors, the building of breakwaters, etc.

Lieut. Col. William L. Sibert, another of the Army engineers who was

made a member of the Canal Commission, was graduated from West Point

in 1884 and was made a lieutenant of engineers. From 1892 to 1894 he

was assistant engineer in charge of the construction of the ship

channel connecting the Great Lakes. The four years following he was in

charge of the river and harbor work in Arkansas, and following that,

spent one year teaching civil engineering in the Engineering School of

Application. He then went to the Philippines as chief engineer of the

Eighth Army Corps and became chief engineer and general manager of the

Manila & Dagupan Railroad. From 1900 to 1907 he was in charge of the

Ohio River improvements between Pittsburgh and Louisville. As division

engineer of the Atlantic division of the Panama Canal he was in charge

of the construction of the Gatun locks, Gatun Dam, and the breakwaters

at the Atlantic entrance to the canal.

Civil Engineer Harry H. Rousseau, of the United States Navy, was

appointed a member of the Isthmian Canal Commission at the same time

that Chief Engineer Goethals was selected to head the organization. He

had had much experience in engineering work prior to the appointment

and was a personal appointee of President Roosevelt, with whom he had

come in contact when he was serving in the Bureau of Yards and Docks

of the Navy Department when Mr. Roosevelt was assistant secretary of

that Department. He entered the employ of the United States through

the civil service, having been appointed a civil engineer in the Navy

with the rank of lieutenant, after a competitive examination in 1898.

For four years he was an engineer of the bureau of which he

afterwards became chief, and for four years following, from 1903 to

1907, he was engineer of the improvements of Mare Island Navy Yard,

California. The duties of Commissioner Rousseau were changed from time

to time, and he was finally given charge of the work of constructing

the terminals at the ends of the canal. At the same time he was made

assistant to the chief engineer, having charge of all mechanical

questions arising on the canal.

When Jackson Smith, one of the two civilian members of the Canal

Commission, resigned, he was succeeded by an Army officer, Col. Harry

F. Hodges, who would have been a member of the commission from the

first, upon the request of Colonel Goethals, had not the United States

Engineer Corps required his services. Colonel Hodges was graduated

from the United States Military Academy in 1881, and immediately

entered upon seven years of duty on river and harbor improvements in

the United States. This was followed by four years' service as

assistant professor of engineering at West Point, and that duty, in

turn, by six years of work on rivers and harbors and fortifications.

During the Spanish American War he served in Porto Rico, and then

returned to river and harbor duty for two years. In 1901-02 he was

chief engineer of the Department of Cuba, from which duty he was

transferred to the War Department, where he became assistant to the

chief of engineers. His experience in river and harbor work, coupled

with his success as the designer of the locks of the American Sault

Ste. Marie Canal, fitted him for the work at Panama. He became

assistant chief engineer and purchasing agent of the canal in 1907,

and the following year was chosen a member of the commission to

succeed Mr. Smith. The work of designing the locks and the lock

machinery fell upon his shoulders.

When President Roosevelt wanted a man to handle the delicate problems

arising out of the peculiar relations with the Republic of Panama and

the United States, he selected Joseph C. S. Blackburn, of Kentucky,

who had just finished a long term of service in the United States

Senate. Senator Blackburn was well equipped for such a position,

combining that suavity indicated by the velvet glove with that

determination of purpose which lies in the iron hand.

The service of Col. William C. Gorgas, the chief sanitary officer on

the Isthmus, began earlier than that of any of the higher officials.

He went to the Isthmus immediately after it was taken over by the

United States. He has been described as a man "with a gentle manner,

but with a hard policy toward the mosquito." He was born in Mobile,

Ala., in 1854, the son of Gen. Josiah Gorgas, of the Confederate Army.

He became a member of the Medical Corps of the United States Army in

1880, and since his work at the head of the Cuban health campaign his

name has been a household word in the United States.

In establishing the Isthmian Canal Commission, which was destined to

make the Panama Canal a reality, President Roosevelt selected Joseph

Bucklin Bishop as its secretary. Mr. Bishop was made the editor of the

Canal Record, a weekly paper which was the official organ of the

Canal Commission. He is a born investigator and when any matter arose

concerning the work on the canal, about which the chief engineer

desired an impartial report, he usually referred it to Mr. Bishop.

When the matter of organizing the work arose it was decided to arouse

a spirit of emulation and rivalry, and S. B. Williamson, a civilian

engineer, was put in charge of the Pacific end of the canal, with

duties similar to those of the Army engineer on the Atlantic side. Mr.

Williamson proved to be a master of the art of accomplishing a great

deal with a given amount of money, and the cost sheets of the Pacific

end will ever stand as a monument to his efficiency.

The list of engineers and other officials who contributed to the

success of the work at Panama is a long one, but among them may be

mentioned: Col. Chester Harding, who was the resident engineer at

Gatun; W. G. Comber, who headed the dredging work on the Pacific end

of the canal during the early days of the American undertaking, of the

entire canal during the final stages; W. G. Rourke, who was resident

engineer in Culebra Cut for a number of years; Caleb M. Saville, who

worked out the data for the construction of the Gatun Dam; H. O. Cole,

who succeeded S. B. Williamson on the Pacific end work; Lieut.

Frederick Mears, who relocated the Panama Railroad; John Burke, who

had charge of the commissary; Maj. Eugene T. Wilson, the chief

subsistence officer; Brig. Gen. C. A. Devol, who was in charge of the

quartermaster's department; E. J. Williams, Jr., the disbursing

officer; and Col. Tom F. Cook, the picturesque chief of the Division

of Posts and Customs.

To all these, and to scores of others who are not mentioned here

merely because of the limitations of space, the American people owe

the great success at Panama. The organization was imbued with a spirit

of loyalty to the great task, and having its accomplishment singly in

mind there was little room for jealous bickerings and none at all for

scandal and corruption.

Every man who had a part in it always will be proud of his share, and

that pride will be supported and justified by all Americans.

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