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.
Panama, Oklahoma
This town began as a coal mining community named Red Town because all of the miners' shacks were painted red. The origin of the town name is uncertain. Some historians claim that the name was inspired by the building of the Panama Canal, but the town was already called Panama by 1898. The French attempted construction of the canal in 1881 and ceased in 1889, so this claim could be valid. In 1896 the Kansas City, Pittsburg and Gulf Railroad (acquired by the Kansas City Southern Railway in 1900) built a north-south line through the region. The Midland Valley Railroad built an east-west line through the region in 1903-1904. The town of Panama moved to the crossing of the two railroads. The Panama post office first opened January 14, 1898, but the order was rescinded for some unknown reason on February 23, 1898. The post office reopened February 21, 1899.