This led to the appointment of the first Isthmian Canal Commission, who proceeded to ascertain upon what terms the property and rights of the New Panama Canal Company might be acquired by the United States. The company could hardly submit a definite figure to a body which had no authority either to accept or reject its offer, but submitted a tentative proposal to sell and transfer its canal property to the United States for $109,141,500. The Commission promptly assessed the value at $40,000,000 and submitted a report favouring the Nicaragua route. On this becoming known in Paris the directors of the company at once resigned, and at a general meeting of stockholders it was resolved to accept the Commission’s estimate. This surrender was practically forced upon the company by the American Government, as the threat to construct a canal at Nicaragua meant death to any hopes of raising sufficient extra capital for the completion of the Panama Canal. A telegram was sent, offering to sell out all assets, rights, and interests to the only possible purchaser at that purchaser’s own figure of $40,000,000. At once the Commission issued a supplementary report, that under the altered conditions the most feasible and practical route for an isthmian canal under the control, management and ownership of the United States was the Panama route. The scheme for beating down the New Panama Canal Company in its price having proved successful, Congress passed what is commonly known as the Spooner Act, which authorised the President to acquire the property of the Canal Company for a sum not exceeding forty millions of dollars, to acquire the necessary territory from the Republic of Colombia, and to proceed with the excavation, construction, and completion of the canal. The same Act, however, authorised the President to proceed with the Nicaraguan scheme should he fail in acquiring the Panama property. At the same time the Hay-Herran Treaty was negotiated with the Republic of Colombia, its object being to secure to the United States the privilege of constructing a canal through the Isthmus of Panama. The Colombian Government failed to ratify this treaty, and, at the instigation of some person or persons unknown, a bloodless revolution was accomplished whereby Panama became an independent republic. This having occurred, the United States immediately concluded with the new State the Hay-Varilla Treaty, by which the United States guaranteed to maintain the independence of the new Republic of Panama, receiving in return the concessions necessary for the construction, maintenance, operation, sanitation and protection of the canal, also a zone of territory ten miles in width, extending five miles on either side of the centre line of the canal, and a group of small islands in the Bay of Panama. The price of the concession was $10,000,000 gold to be paid down, and an annual payment of $250,000 gold beginning nine years after the date of the ratification of the treaty.