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
Construction of the canal began on January 1, 1881, with digging at Culebra beginning on January 22. A large labor force was assembled, numbering about 40,000 in 1888 (nine-tenths of whom were afro-Caribbean workers from the West Indies). Although the project attracted good, well-paid French engineers, retaining them was difficult due to disease. The death toll from 1881 to 1889 was estimated at over 22,000, of whom as many as 5,000 were French citizens.