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.
History of the Panama Canal
No decision had been made about whether the canal should be a lock or a sea-level one; the ongoing excavation would be useful in either case. In late 1905, President Roosevelt sent a team of engineers to Panama to investigate the relative merits of both types in cost and time. Although the engineers voted eight to five in favor of a sea-level canal, Stevens and the ICC opposed the plan; Stevens' report to Roosevelt was instrumental in convincing the president of the merits of a lock canal and Congress concurred. In November 1906 Roosevelt visited Panama to inspect the canal's progress, the first trip outside the United States by a sitting president.