serve the public health thereon, and to establish such judicial tribunals thereon as may be necessary to enforce such rules and regulations. The President may acquire such additional territory and rights from Colombia as in his judgment will facilitate the general purposes hereof.

Sec. 3. That when the President shall have arranged to secure a satisfactory title to the property of the New Pan ama Canal Company, as provided in Section 1 hereof, and shall have obtained by treaty control of the necessary terri tory from the Republic of Colombia, as provided in Section 2 hereof, he is authorised to pay for the property of the New Panama Canal Company $40,000,000, and to the Republic of Colombia such sums as shall have been agreed upon and a sum sufficient for both said purposes is hereby appropriated out of any money in the Treasury not otherwise appropriated, to be paid on warrant or warrants drawn by the President.

The President shall then cause to be excavated, constructed and completed, utilising to that end as far as practicable the work heretofore done by the New Panama Canal Company, of France, and its predecessor company, a ship canal from the Caribbean Sea to the Pacific Ocean. Such canal shall be of sufficient capacity and depth as shall afford convenient passage for vessels of the largest tonnage and greatest draught now in use, and such as may be rea sonably anticipated and shall be supplied with all necessary locks and other appliances to meet the necessities of vessels passing through the same from ocean to ocean; and he shall also cause to be constructed such safe and commodious harbours at the terminals of said canal, and make such provisions for defence as may be necessary for the safety and protection of said canal and harbours. That the President is authorised for the purposes aforesaid to employ such persons as he may deem necessary, and to fix their compensation.

Sec. 4. That should the President be unable to obtain for the United States a satisfactory title to the property of the New Panama Canal Company, and the control of the necessary territory of the Republic of Colombia, and the rights mentioned in Sections 1 and 2 of this act, within a reasonable time and upon reasonable terms, then the President, having first obtained for the United States exclusive and perpetual control, by treaty, of the necessary territory from Costa Rica and Nicaragua, upon terms which he may con

sider reasonable, for the construction, perpetual maintenance, operation and protection of a canal connecting the Caribbean Sea with the Pacific Ocean by what is commonly known as the Nicaragua route, shall cause to be excavated and constructed a ship canal and waterway from a point on the shore of the Caribbean Sea near Greytown, by way of Lake Nicaragua, to a point near Brito, on the Pacific Ocean. Said canal shall be of sufficient capacity and depth to afford convenient passage for vessels of the largest tonnage and greatest draught now in use, and such as may be reasonably expected, and shall be supplied with all necessary locks and other appliances to meet the necessities of vessels passing through the same from ocean to ocean; and he shall also construct such safe and commodious harbours at the terminal of such canal as shall be necessary for the safe and convenient use thereof, and shall make such provisions for defence as may be necessary for the safety and protection of said harbours and canal; and such sum or sums of money as may be agreed upon by such treaty as compensation to be paid Nicaragua and Costa Rica for the concessions and rights hereunder provided to be acquired by the United States are hereby appropriated out of any money in the Treasury not otherwise appropriated, to be paid on warrant or warrants drawn by the President.

The President shall cause such surveys as may be necessary for said canal and harbours to be made, and in making such surveys, and in the construction of said canal, may employ such persons as he may deem necessary, and may fix their compensation.

In the excavation and construction of said canal the San Juan River and Lake Nicaragua, or such parts of each as may be made available, shall be used.

Sec. 5. That the sum of $10,000,000 is hereby appropriated out of any money in the Treasury not otherwise appropriated, toward the project herein contemplated, by either route so selected.

And the President is hereby authorised to cause to be entered into such contract or contracts as may be deemed necessary for the proper excavation, construction, completion and defence of said canal, harbours and defences, by the route finally determined upon under the provisions of this act. Appropriations therefor shall from time to time be hereafter made, not to exceed in the aggregate the additional sum of $135,000,000, should the Panama route be

adopted, or $180,000,000, should the Nicaragua route be adopted.

Sec. 6. That in any agreement with the Republic of Colombia or with the States of Nicaragua and Costa Rica, the President is authorised to guarantee to said republic or said States the use of said canal and harbours, upon such terms as may be agreed upon, for all vessels owned by said States or by citizens thereof.

Sec. 7. That to enable the President to construct the canal and works appurtenant thereto, as provided in this act, there is hereby created the Isthmian Canal Commission, the same to be composed of seven members, who shall be nominated and appointed by the President, by and with the advice and consent of the Senate, and who shall serve during the pleasure of the President, and one of whom shall be named as the chairman of said commission.

Of the seven members of said commission, at least four shall be persons learned and skilled in the practice of engineering, and of the four at least one shall be an officer of the United States Army, and at least one other shall be an officer of the United States Navy, the said officers respectively being either upon the active or the retired list of the army or of the navy. Said commissioners shall each receive such compensation as the President shall prescribe until the same shall have been otherwise fixed by Congress. In addition to the members of said Isthmian Canal Commission, the President is hereby authorised, through said commission, to employ in said service any of the engineers of the United States Army at his discretion, and likewise to employ any engineers in civil life, at his discretion, and any other persons necessary for the proper and expeditious prosecution of said work. The compensation of all such engineers and other persons employed under this act shall be fixed by said commission, subject to the approval of the President. The official salary of any officer appointed or employed under this act shall be deducted from the amount of salary or compensation provided by or which shall be fixed under the terms of this act.

Said commission shall in all matters be subject to the direction and control of the President, and shall make to the President annually and at such other periods as may be required either by law or by the order of the President full and complete reports of all their actings and doings and of all moneys received and expended in the construction of said

work, and in the performance of their duties in connection therewith, which said reports shall be by the President transmitted to Congress.

And the said commission shall furthermore give to Congress, or either House of Congress, such information as may at any time be required either by act of Congress or by the order of either House of Congress. The President shall cause to be provided and assigned for the use of the commission such offices as may, with the suitable equipment of the same, be necessary and proper, in his discretion, for the proper discharge of the duties thereof.

Sec. 8. That the Secretary of the Treasury is hereby authorised to borrow on the credit of the United States from time to time, as the proceeds may be required to defray expenditures authorised by this act (such proceeds when received to be used only for the purpose of meeting such expenditures) the sum of $130,000,000, or so much thereof as may be necessary, and to prepare and issue therefor coupon or registered bonds of the United States in such form as he may prescribe, and in denominations of $20 or some multiple of that sum, redeemable in gold coin at the pleasure of the United States after ten years from the date of their issue, and payable twenty years from such date, and bearing interest payable quarterly in gold coin at the rate of 2 per cent. per annum; and the bonds herein authorised shall be exempt from all taxes or duties of the United States, as well as from taxation in any form by or under State, municipal or local authority.

Provided, That said bonds may be disposed of by the Secretary of the Treasury at not less than par, under such regulations as he may prescribe, giving to all citizens of the United States an equal opportunity to subscribe therefor, but no commissions shall be allowed or paid thereon; and a sum not exceeding one-tenth of 1 per cent. of the amount of the bonds herein authorised is hereby appropriated, out of any money in the Treasury not otherwise appropriated, to pay the expense of preparing, advertising and issuing the same.

And provided further, that none of the said bonds shall be sold to pay the sums appropriated in Sections 1 and 2 of this act, or to pay the sum of $10,000,000 appropriated in Section 5 of this act.

APPENDIX V

THE PANAMAN DECLARATION OF INDEPENDENCE

Signed and Promulgated on November 4, 1903

THE transcendental act that by a spontaneous movement the inhabitants of the Isthmus of Panama have just executed is the inevitable consequence of a situation which has become graver daily.

Long is the recital of the grievances that the inhabitants of the Isthmus have suffered from their Colombian brothers; but those grievances would have been withstood with resig nation for the sake of harmony and national union had its separation been possible and if we could have entertained well-founded hopes of improvement and of effective progress under the system to which we were submitted by that Republic. We have to solemnly declare that we have the sincere and profound conviction that all the hopes were futile and useless, all the sacrifices on our part.

The Isthmus of Panama has been governed by the Republic of Colombia with the narrow-mindedness that in past times was applied to their colonies by the European nations-the Isthmian people and territory were a source of fiscal resources and nothing more. The contracts and negotiations regarding the railroad and the Panama Canal and the national taxes collected in the Isthmus have netted to Colombia tremendous sums which we will not detail, not wishing to appear in this exposition which will go down to posterity as being moved by a mercenary spirit, which has never been nor is our purpose; and of these large sums the Isthmus has not received the benefit of a bridge for any of its numerous rivers, nor the construction of a single road between its towns, nor of any public building nor of a single college, and has neither seen any interest displayed in advancing her industries, nor has a most infinite part of those sums been applied toward her prosperity.