In 1880 he appeared before a committee of the House, and in reply to De Lesseps, who was advocating the Panama Canal, he stated his plan for the ship-railway. A few months later he went to Mexico, where the government gave him, besides a very valuable concession for building the ship-railway, its cordial assistance in his surveys. It was at this time that Mexico requested his aid in improving its two harbors, and when he returned home, sent him in the Mexican man-of-war, the Independencia. The next year he proposed to Congress to build the ship-railway at his own risk, and to give the United States special privileges, which had been arranged for in his Mexican charter, provided the government would, as he proved the practicability of his plan by actual construction and operation, guarantee part of the ship-railway's dividends. Although this arrangement would have laid as little risk on the government as the jetty arrangement had, it was not accepted.
Strange and even unnatural as the idea itself appeared, it was adapted from perfectly simple ship-railways already in existence and in satisfactory use. Science, he said, could do anything, however tremendous, if it had enough money. In the magnified form contemplated, the plan provided for a single track of a dozen parallel rails, and a car with 1500 wheels. On this car was to be a huge cradle into which any ship might be floated and carefully propped. The car having then been hauled up a very slight incline out of the water, and monster, double-headed locomotives hitched to it, by gentle grades it and the ship were to be drawn across to the other ocean a hundred miles away, where the ship could be floated again. To obviate any chance of straining the ships, all curves were to be avoided by the use of turn-tables.
Nevertheless, many people believed that such a journey would strain a ship so much that it would never float afterwards. On the other hand, there is so imposing an array of names of distinguished engineers, shipbuilders, and seamen, who declared that the plan was feasible in every particular, that it is hard to think they could all have been mistaken in thus supporting the leading engineer of the day. It may easily be supposed that every other imaginable and unimaginable objection was raised, but to one and all Eads gave an answer that sounded conclusive.