The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-02-07
PANAMA TOLLS To
PAY FOR BUILDING
Of NEW WATERWAY
Heavy Traffic Through Pres
emf ISthmus Highway to
Make New Transporta-
ton System Necessary

WASHINGTON, Feb. 6.-Presi-
dent Harding's administration IA
vors the application of the profits
accruing from the Panama canal to
the construction of a new inter-
oceanic waterway, it was said to-
night by a White House spokes-
man. The question was up for
discussion before the cabinet and
although no definite project has
been outlined the cabinet talk was
described as extremely interest
ing" Impetus was given to the
discussion by Secretary Weeks ex-
PLANTATION of the striking increase
in the traffic through the canal last
month when the records show a SO
per cent greater movement than a
year ago. Canal tolls collections
have mounted, the cabinet was told,
until there is steadily increasing
monthly balance above cost of ope-
ration. Presumably it was this fact
which brought out the administra-
TONS desire that canal profits 60
toward construction of a new
canal.
Coastwise Traffic Grows
The outstanding feature as to the
increasing canal traffic, it was
stated, was the growth of inter
coastal business. Administration
officials have seen concrete evidence
recently of probable further growth
of this business. Within the last
few days Secretary Weeks has been
approached by interests seeking to
buy two army transports for CONVEX
sion into refrigerator ships to carry
Pacific coast fruits to eastern mar
kets. He was told that it had not
been possible to obtain q Sufficient
number of suitable vessels from the
shipping board.
such comment as was available in
cabinet circles favored the Nicara-
guam canal route if a new canal pro-
ject was to be put forward. The
least costly method of increasing the
traffic capacity from ocean to ocean,
1T was pointed out at the war de-
partment, would be to double the
lock facilities of the Panama Canal
but it was added that both from
military point of view as to de-
feasibility, and because 1t would
shorten the trip from coast to coast
by some five days. the Nicaraguan
route app cared most desirable.
Nothing Definite Heard
In Nicaraguan circles here it was
nothing definite as to a new canal
added, however, that canal rights
already granted to the United States
were valid and that the conflicting
interests of Costa Rca as to San
Juan river, along the route. and
Fonseca Bay already had been
worked out in negotiations between
Ncaraguan and Costa Rica.
1t appeared possible that the CEN
trail American conference which will
hold its final session here tomorrow
when the treaties and agreements
arrived at are expected to be made
public, had given some attention to
the central American canal route
question. Pending publication of the
treaties and their formal ratification
at tomorrow's plenary session, how
ever, administration officials re-
fused to make any comment in this
connection.
Members of the cabinet were told
in tolay's talk that the increase of
canal facilities was not immediately
necessary as the traffic in January
the peak load carried so far, was
only from So to 40 per cent of the
total local capacity of the big water
way. Since that business represented
SO per cent increase within year,
however. and since the transcon-
tinental railroads are viewed as al
ready carrying all the business they
can handle or viii be able to handle
for some time to come, 1t has oc-
Cured to some cabinet members that
the problem of keeping the canal
capacity ahead of the possible traf-
fic soon must be faced
AS a single item of Pacific coast
products seeking an eastern market +
at reasonable cost, At was said that
CALIFORNIA; grape production con-
trary to all expectations had In
creased instead of diminished since
prohibition became. effective.
1t is understood the Nicaraguan
government is contemplating a in
vitation to Secretary DENLY to 20
over the canal routes when he at
tends the naval maneuveurs next
month in Panama waters. 1t is be-
lieved the naval aecreary may ex-
tend his trip for that purpose.