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whereas a lock canal would be a permanent restriction to the volume of traffic and size of ships that use it. The additional cost of a sea-level canal over that of a canal with locks with a summit level of 60 feet above mean tide was $52,462,000, or $79,742,000 more than the estimated cost of a lock canal with a summit level 85 feet above mean tide, proposed by the former Isthmian Canal Commission.

Referring to the proposed dam at Gatun, the committee reported that, "The surveys and examinations which have been made in regard to a possible dam site across the Chagres River at Gatun show that such a structure is not feasible. The width of the floor of the valley at that point is about 5,000 feet, and two borings made at what appears to be the most favorable section penetrated to a depth of 172.7 feet and 139.2 feet below sea-level, respectively, without finding bed rock. Other examinations and borings have also been made at other sections of the Chagres valley where a dam site seemed possible, between Gatun and Bohio, but with equally unfavorable results. It is clear, therefore, that it is not feasible to construct a dam across the Chagres River at any point lower down in its course than at Bohio."

"The borings along the sites proposed for the dam across the Chagres near Bohio have shown that bed rock is deeper than has been supposed at all the sites contemplated. The greatest depth to rock, both at the French. site and on that tentatively proposed by the former Isthmian Canal Commission, is about 158 feet below sea level. These results indicate greatly increased difficulties in the construction of any dam in the vicinity of Bohio."


The Panama market is now abundantly supplied with fruit, vegetables, eggs, fish, string beef, almejas, old women, naked children, John Chinamen, bad odors and hungry dogs. The Colombian Eagle rejoices outside. —Panama Star & Herald in 1875.

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Importer, and Wholesale and Retail Dealer in Groceries. Commission Merchant. Exporter of Native Products.

Agent for the Cuban and Pan-American Express Company.

P. O. Box. No 71.

Opposite Market, Colon, R. P.

Ancon Hill the Best Site.

While on the Isthmus, the committee also considered. the matter of quarters for Employes and adopted a resolution authorizing the Chief Engineer to proceed with the work at once. A resolution was also passed declaring that Ancon Hill and adjacent territory afforded the best site for erecting permanent quarters for the Commission, Zone officers, and certain classes of employes, together with offices and hospitals, and that the Commission be recommended to despatch a landscape architect to the Isthmus to devise a plan for artistically developing this site.

This resolution was the first step toward building the Ancon of today. At that time there had not been a building put up at this point, outside of the Ancon Hospital grounds, and corral yard. The Hotel Tivoli had not been dreamed of. the new Zone administrative building had not been planned, and the site now dotted with cottages and apartment houses was then only a pasture. Goats browsed contentedly on Gobbler's Knob and "El Tivoli."

Old Commission Disbanded.

"It became apparent," says Secretary Taft in his annual report for 1905, "during the six months succeeding the appointment of the first Commission that the body of seven men as organized was not an effective force for doing

the work required in the construction of the canal. The members of the Commission themselves agreed that as constituted, good results could not be expected from it. You (President Roosevelt) had submitted to Congress during the winter of 1904-5 a recommendation for an amendment to the law by which you should be given a free hand in the number of agents to be selected by you for the work which the act of Congress made it mandatory upon you to perform, and informed Congress that the method of construction by a commission of seven was clumsy and ineffective. The House of Representatives gave the requested power in a bill which it sent to the Senate. There the bill met determined opposition, and in the short session it was entirely possible for its enemies to defeat it. It became very apparent that radical action was necessary if better work was to be secured. By your direction, in March, 1905, I requested the resignation of the then canal commissioners, which were at once tendered."

Under Executive order of April 1, 1905, the organization of a new commission became effective, the members being Theodore P. Shonts, Chairman; Charles E. Magoon, also to be Governor of the Canal Zone; John F. Wallace, to be member as well as Chief Engineer; RearAdmiral Mordecai T. Endicott, U. S. Navy; Brig. Gen. Peter C. Hains, U. S. Army (retired); Col. Oswald H. Ernst, Corps of Engineers, U. S. Army, and Benjamin M. Harrod. The salaries were fixed at $7,500 for each member per annum, the Chairman in addition to receive the of $23,500 annually; the Chief Engineer, $17,500 annually, and the Governor of the Canal Zone, $10,000 annually.


The first meeting of this Commission was held April 3, 1905, and an executive committee appointed consisting of Messrs. Shonts, Wallace and Magoon. It was then arranged that Mr. Shonts should assume charge of the Washington office, the making of contracts, the purchase of material, and general executive control of the whole business of the Commission. Mr. Wallace was to take complete

charge of the engineering and construction work on the Isthmus, while Governor Magoon who succeeded Gen. Davis, assumed control of the Zone administrative functions, and the sanitation work, with Col. Gorgas in direct charge of the latter. Mr. Shonts drafted into service to assist him

in the reorganization of the Washington office, Col. Edwards, formerly Chief of the Bureau of Insular Affairs; David W. Ross, General Purchasing Agent at a salary of $10,000 per annum, and E. S. Benson, as Auditor, at the salary.

Wallace Quits the Canal.


The resignation of Chief Engineer Wallace came like a clap of thunder out of a clear sky. It was remotest from the thoughts of anyone in any way connected with the undertaking from the President down. While it was generally known that he was dissatisfied with the working methods of the first Commission, the reorganization by which he was delegated almost plenary powers in the field of construction and engineering, tended to the belief that he would put his shoulder to the wheel with renewed vigor. He had been summoned to the States shortly before this to discuss plans for the future, and had been back on the Isthmus but six days, when on June 28, 1905, he forwarded a cablegram to Secretary Taft announcing his desire to leave the service.

"I was greatly taken aback," reports the Secretary of War, "for I heard indirectly from reliable sources that he had received an offer of a much higher salary, and that he was determined to accept the offer and give up this job. Mr. Wallace came north and at an appointed interview stated to me that he had received an offer of $65,000 and had accepted it, that he was anxious to assist me and the members of the Commission, as far as possible, with his advice, and would be glad to continue as a member of the Commission, but that he could not and

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