At once there were strong rumors of war, and a few slight attacks were really made. The United States forbade the transportation of soldiers on the Panama railroad, and a few days later recognized Panama as an independent republic. The new republic was likewise recognized by France, and, later still, by England. On November 9, Panama appointed a commission to negotiate a canal treaty with our country, and this treaty was signed and sealed at Washington by Secretary of State Hay, acting for the United States, and M. Bunau-Varilla, acting for Panama. The President's next message to Congress went at great length into the question of the Panama Canal, and in defence of the recognition of the new republic. It also told of what the new Department of Commerce and Labor had accomplished, especially the branch devoted to corporations. [Illustration: PRESIDENT ROOSEVELT SPEAKING AT THE UNVEILING OF THE STATUE OF GENERAL SHERMAN. (_Photograph by Clinedinst, Washington, D.C._)] "We need not be over-sensitive about the welfare of corporations which shrink from the light," wrote Mr. Roosevelt. And in this statement every one who had the best interests of our nation at heart agreed. To accomplish great works great corporations are often necessary, but they must conduct business in such a fashion that they are not ashamed to show their methods to the public at large. At the opening of the year 1904 there were strong rumors of a war between Japan and Russia, over the occupation of Korea, and this war started early in February by a battle on the sea, wherein the Russian fleet lost several war-ships. This contest was followed by others of more or less importance, and it looked as if, sooner or later, other nations might become involved in the struggle. "We must keep our hands off," said President Roosevelt, and at once issued a proclamation, calling on all good citizens to remain strictly neutral, and warning those who might take part that they could hope for no aid from the United States should they get into trouble personally or have any property confiscated. This proclamation was followed by some excellent work of our State Department, whereby it was agreed among the leading nations that the zone of fighting should be a limited one,--that is, that neither Japan nor Russia should be allowed to carry it beyond a certain defined territory. For many weeks Congress had debated the Panama Canal treaty and the action of President Roosevelt regarding the new republic of Panama. On February 23, 1904, a vote was taken in the Senate, and the Panama Canal treaty was ratified in all particulars. Without delay some United States troops were despatched to Panama, to guard the strip of land ten miles wide through which the canal is to run, and preparations were made to push the work on the waterway without further delay.