the Colombian government would not ratify the agreement.

On November 3, the trouble in Colombia reached its culminating point. On
that day the State of Panama declared itself free and independent. The
people of that State wanted the canal built by the United States, and
were very angry when the rest of the Colombian States would not agree to
the treaty which had been made.

At once there were strong rumors of war, and a few slight attacks were
really made. The United States forbade the transportation of soldiers on
the Panama railroad, and a few days later recognized Panama as an
independent republic. The new republic was likewise recognized by
France, and, later still, by England. On November 9, Panama appointed a
commission to negotiate a canal treaty with our country, and this treaty
was signed and sealed at Washington by Secretary of State Hay, acting
for the United States, and M. Bunau-Varilla, acting for Panama.

The President's next message to Congress went at great length into the
question of the Panama Canal, and in defence of the recognition of the
new republic. It also told of what the new Department of Commerce and
Labor had accomplished, especially the branch devoted to corporations.

[Illustration: PRESIDENT ROOSEVELT SPEAKING AT THE UNVEILING OF THE
STATUE OF GENERAL SHERMAN.

(_Photograph by Clinedinst, Washington, D.C._)]

"We need not be over-sensitive about the welfare of corporations
which shrink from the light," wrote Mr. Roosevelt. And in this statement
every one who had the best interests of our nation at heart agreed. To
accomplish great works great corporations are often necessary, but they
must conduct business in such a fashion that they are not ashamed to
show their methods to the public at large.

At the opening of the year 1904 there were strong rumors of a war
between Japan and Russia, over the occupation of Korea, and this war
started early in February by a battle on the sea, wherein the Russian
fleet lost several war-ships. This contest was followed by others of
more or less importance, and it looked as if, sooner or later, other
nations might become involved in the struggle.

"We must keep our hands off," said President Roosevelt, and at once
issued a proclamation, calling on all good citizens to remain strictly
neutral, and warning those who might take part that they could hope for
no aid from the United States should they get into trouble personally or
have any property confi