Treaty was
concluded. The practicable routes had been reduced in number to two, at
Panama, and through Nicaragua. The former was under the control of the
French company, which placed so high a price upon its concession that
the commission recommended the Nicaragua route as, on the whole, more
available. In Congress there was a strong predisposition in favor of
this same route, but during 1902 this was weakened. Senator Hanna
preferred the Panama route and worked effectively for it. The French
Panama Company, frightened by the popularity of the Nicaragua route,
reduced its price. The earthquake and volcanic eruption on the Island of
Martinique reminded the world that Nicaragua was nearer the zone of
active volcanic life, and hence more exposed to danger, than Panama. In
June Congress empowered the President to select the route and build a
canal at once.

Negotiations with Colombia for the right to build at Panama dragged on
through 1902 and 1903. Weakened by continuous revolution, that Republic
realized that the isthmian right of way was its most valuable asset.
Only after prolonged discussion did its Government authorize its
Minister at Washington to sign a treaty reserving Colombian sovereignty
over the strip, but giving to the United States the canal concession in
return for $10,000,000 in cash and an annuity of $250,000. This treaty
was signed in Washington in January, 1903, and was received as a triumph
for the diplomacy of Hay and Roosevelt. It was ratified in March by the
Senate, in spite of a last filibuster by the friends of Nicaragua, but
the Colombian Congress rejected the treaty and adjourned.

By the autumn of 1903 Roosevelt had determined upon the route at Panama,
the French company had become eager to sell, and the Colombians living
on the Isthmus were anxious to have the negotiations ended and the
digging begun. In October the President wrote to an intimate friend
hoping that there might be a revolt of the Isthmus against Colombia,
though disclaiming any intent to provoke one. The friend made the wish
public over his own name, but before it appeared in print the revolt had
taken place. It was known in advance to the State Department, which
telegraphed on November 3, 1903, asking when it was to be precipitated.
It took place later on this day, the independence of the Republic of
Panama was proclaimed, the United States prevented Colombia from
repressing it by force, recognized the new Republic by cable,