Since the Spanish landed in the Isthmus of Panama for the first time in the year 1501 Panama has become a natural route of transit of merchandise and of people that try to cross from one ocean to another.
As early as 1520., the Spanish Royalty explored the possibility to construct a canal through the Isthmus, but the idea was dismissed. In the XIX century the United States also contemplated the idea of united two oceans , but the first idea that came up what to build a railroad and not a canal.
In 1832, the USA congress sent to Panama , Colonel Charles Biddle to negotiate the construction of a railroad. He also inspected the country to gather information on the best route. Biddle passed away, however the interest for the canal continued.
In 1848 , a latter was granted to the Pacific mail Steamship Company to deliver the mail within Panama and the United States
The mail to be delivered would be between New York, Panama, San Francisco, but he discovery of gold in California in January 1848 faded the mail delivery project.
The gold seekers decide to use the route of panama
John L. Stevens was sent to Colombia , which at the time controlled Panama, to negotiate the concession of the Panama railway . The concession was granted for 49 years . For this purpose they received a 250 acres of land plus additional land government owned that could be used freely
Colombia, was controlling Panama at the time , therefore negotiate the construction of the railroad.
The Panama Railroad was incorporated to New York in April 7 of 1849. In January of 1849the company hired Colonel George W. Hughes to carry on a location survey. This was no good grounds to build a railroad , since June till December there where rain , in addition to the fog covering the land scape and the lack of hard wood would make it difficult to build a railroad.
