The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1901-05-22
The Canal--.A Serious View of the
Enterprise.

strucJlon OF the Nicaragua waterway
by the United States. The secretary,
it has been said, prefaced his present
negotiations by sounding certain Sena-
tors in order to construct a treaty that,
when it should come before the Senate,
would be sure to receive the favorable
action of that body. Neutrality seems
to be the keynote Of the secretary's
proposed treaty. 1t is difficult to un-
derstand how new treaty, with neu-
trality as it's scheme, can be made any
more acceptable to many Senators than
was the old one. Neutrality of the
Pacific railway lines, neutrality of the
Canadian Pacific, built by the British
government, is hardly more irrational
than the neutrality of the Nicaragua
canal built by the government of the
United States.
Rut the obstacles in the way of the
construction of the canal are not all
diplomatic or physical. In an article
published in the April Forum, Col. Al
dace f. Walker showed that to these,
whatever they might be, were added
serious questions OF commercial exped-
iency. Col. Walker reviewed the re-
port of the isthmian canal commission,
agreeing with the conclusion that,
whatever advantages the Panama route
might have over the Nicsragusn, the
membranes with which the former
its rights, privileges and franchise
were burdened placed its purchase be-
You'd the pale of serious consideration
and tied the commission up to the Mic
aragua route.
Col. Walker devoted his article large
ly to the consideration of the value of
the canal, and to an examination of the
report on this subject by Prof. John
son, a member of the commission, and
holding the position of assistant pro-
lessor of transportation and commerce
in the University of Pennsylvania.
Col. Walkers discussion Of this sub
ject forcibly illustrated the wide differ
ence between what college professor
guesses at and the views of an astute
man, stepped in practical experience,
having worldwide familiarity with the
subject he examines. The professor
draws upon the history of the Suez
canal for analogies. That waterway is
ninety-two miles long, without locks,cost
about 102,000,000, and is the direct
route of the principal commerce of the
world, subject to no possible railway
competition, the only possible alterna-
tive route being around the Cape of
Good Hope; and tolls have been fixed
at rate that will render the passage of
the canal cheaper than the much longer
sail by the broad ocean. Every cir
cumstance favors the Suez canal. The
ship toll is equivalent to nearly S2
ton. The total tonnage for 1899 was
9,S95,630 tons, the gross revenue, S17,-
624 ,553. Prof. johnson claims that
about 100000 tons will be available
for the Nicaraguan canal in 1914 and
that conservative estimate for 1924 is
II, 260,000 tons. Col. Walkers iudg-
ment is that "a statement that the
isthmian canal will carry one-fourth as
much tonnage as the Suez canal would
have been accepted as fully ample by
many conversant with the respective
commercial opportunities of the two
canals"
Col. Walker is inclined to hold Prof.
johnson responsible for the statement
OF Senator Morgan that the new canal
will earn a highly remunerative profit
on cost of even $2OO,5OO, 200. Col.
Walker says "a highly remunerative
profit" should be at least four per cent
on the investment, or SS,O20O0O, after
paying all expenses of maintenance
and operation. He shows that these
expenses would be about $2,000,0O0
year, 30 that the gross earnings must
be SIC, 100000 year in order to pay
four per cent interest on the cost OF the
structure.
The rate proposed for the Nicaragua
canal is 81 per ton of ships tonnage.
Thus 100000 tons would be required
to produce the gross earnings neces-
sary for ga highly remunerative profit
On the investment" which is 100000
greater tonnage than Prof johnson es-
Inmates would accrue to the canal in
1914, without reference to tolls. That
is, canal that would be twice as long,
cost double to build and would be more
than twice as expensive to maintain,
it is proposed to work on a basis of
one-half the Suez toll rate.
Col. Walker takes into account all
The elements OF the problem-the COM
petition of the Pacific railways, which
may have TO reduce their.rates but will
not lose their business; the rivalry of
I'LL