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.
History of the Panama Canal
In the US, a congressional Isthmian Canal Commission was established in 1899 to examine possibilities for a Central American canal and recommend a route. In November 1901, the commission reported that a US canal should be built through Nicaragua unless the French were willing to sell their holdings for $40 million. The recommendation became law on June 28, 1902, and the New Panama Canal Company was compelled to sell at that price.