Panama Canal
France began work on the canal in 1881, but stopped due to engineering problems and a high worker mortality rate. The United States took over the project in 1904 and opened the canal on August 15, 1914. One of the largest and most difficult engineering projects ever undertaken, the Panama Canal shortcut greatly reduced the time for ships to travel between the Atlantic and Pacific Oceans, enabling them to avoid the lengthy, hazardous Cape Horn route around the southernmost tip of South America via the Drake Passage or Strait of Magellan.
Panama Canal Zone
By order of President Theodore Roosevelt under the Panama Canal Acts of 1902 and 1904 the Secretary of War was made supervisor of canal construction and the second Isthmian Canal Commission made the governing body for the Canal Zone. Under the Panama Canal Act of May 24, 1912 President Woodrow Wilson issued Executive Order 1885, January 27, 1914, effective April 1, 1914 abolishing the previous governance placing it under the direction of the Secretary of War with the entity designated as The Panama Canal. The Governor of the Panama Canal was charged with "completion, maintenance, operation, government and sanitation of the Panama Canal and its adjuncts and the government of the Canal Zone" in the Executive Order. A number of departments were specified in the order with others to be established as needed by the Governor of the Panama Canal with approval of the President and under the supervision of the Secretary of War. Defense of the canal was the responsibility of the Secretary of War who retained control of troops with provisions for Presidential appointment of an Army officer in wartime who would have "exclusive authority over the operation of the Panama Canal and the Government of the Canal Zone." The Executive Order noted in closing "that the supervision of the operations of the Panama Canal under the permanent organization should be under the Secretary of War" thus establishing the essentially military arrangement and atmosphere for the canal and Canal Zone.