Postcard of Colon, Panama, Before the American Occupation. ca. 1913, A typical street scene in Colon, Panama, before the American Occupation of the Zone for the building of the canal. Before the occupation, the town of Colon was a 'pest hole,' the dwellings being nothing more than shanties, with sewerage ditches in the streets. Today all is changed, the streets and side walks are paved, clean and well kept. The sanitary laws are very strict, and under American Control.