Panama Canal Railway
The Panama Railway also operated a significant shipping line, connecting its service with New York and San Francisco. It ran a Central American line of steamships linking Nicaragua, Costa Rica, San Salvador, and Guatemala to Panama City. The shipping service was greatly expanded when canal construction began. Ships included the SS "Salvador", SS "Guatemala", SS "Cristobel", and , which became the first of the ships to cross the completed canal in 1914.
In 1904 the United States took over the license to build and operate the canal. The choice to use locks and an artificial lake (Gatun) meant that the old railway route from 1855 had to be changed because it followed the Chagres River valley, which would be flooded by the lake. Also, the railway would be extended and altered continuously for the building process. The stock of the Panama Railway Company, vital in canal construction, was entirely controlled by the United States Secretary of War.
Michael Blumenfeld
Mr. Blumenfeld was appointed Deputy Undersecretary of the Army in April, 1977, and shortly thereafter as Acting Assistant Secretary (Civil Works). President Carter nominated him as Assistant Secretary (ASA/CW) in January, 1979 and he received Senate confirmation later that year. As ASA(CW), he provided leadership to the Army Corps of Engineers, the Panama Canal Company, and the administration of the Arlington National Cemetery. In late 1979 he also became the first Chairman of the bi-national Panama Canal Commission, which was established by the Panama Canal Treaties of 1977, to administer the Canal until the turnover to Panama December 31, 1999.