Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-28
WATERWAYS PLAN
is HELD UNSOUND
st. Lawrence Development
Is Premature, Bookings
Institution Says.

The st. Lawrence waterway project
was attacked as economically unsound
~ book of nearly TOO pages by the
Institute of Economics of the Brooklngs
Institution here, made public yesterday,
as result of an exhaustive examination
of the, subject Chief interest In the
report entitled The st. Lawrence Navl-
CATION and Power Project" lay in the
fact that President Hoover has been an
outstanding proponent OF the develop
ment of this program.
The institution contends that the
project is faulty on two main grounds
that the returns from shipping would
not come up to the expectations its pro-
ponentS set for it, and that the pur-
chase of the proposed hydroelectric
power to be developed at that point
would not be as rosy as its advocates
paint it, The author of the volume is
Harold G. Moulton, president OF the
Brookings Institution, assisted by
Charles S. Morgan and Adah l.. Lee.
Hoover's Part is Recalled.
Development of the St. Lawrence
shipway program, it was recalled yes
terday. was strongly advocated by MIR.
Hoover when, as Secretary of Com
merce, he served as chairman Of the
Presidents Commission Upon the St.
Lawrence Waterway.
In an address delivered before the
New Haven Chamber of Commerce in
March, 1927. Mr.. Hoover asserted: Il
have had the honor to serve during the
past three years as chairman of the
Presidents Commission Upon the St.
Lawrence Waterway. In cooperation
with the Canadian authorities we have
undertaken an exhaustive investigation
of the economic and engineering prob
lens. In accord with the compelling in
depreciation of the facts, our American
commission has recommended that its
construction be undertaken. It would
remove a great barrier to world trans
portatlon. It is urgent to the prosperity
OF the vast Midwest. It will contribute
to relief of many of tSpoSt-war diff
cultieS. It will contribute a wealth Of
hydroelectric power. 1t is task worthy
of the strength and purpose of the two
sister nations who have in two centuries
already overcome countless obstacles IN
implanting the most hope full civiliza-
ton of history"
Project Is Held Undesirable.
Taking issue with this picture painted
BY Mr.. Hoover, the Brookings 1nStitu-
ton, incorporated in 1915 for economic
research in Government and supported
Brookings and gifts from the Carnegie
and Rockefeller Foundations. reaches
the general conclusion that, viewed
from all angles and from the stand
point of the shipper, the shipowner,
the taxpayer and the public, the project
'is not economically desirable or
feasible"
The cost of the project was esti-
mated by the institute at $1,000,000,-
900, with annual overhead charges as
Signable to navigation estimated at
$50, 100000. The report foresaw that
the route would be used, If at all, only
by tramp and coaStwise vessels and
possibly by vessels engaged in second
class liner service to Europe.
Assuming the waterway were COM
pleted by 1910, the report held that a
traffic analysis revealed that 1O,500 900
short tons, so per cent representing
grains, two-thirds of Canadian origin,
might use the waterway. The cost per
ton of traffic in overhead charges was
represented in the report as exceeding
the likely saving in transportation
charges.
It would be impossible to market st.
Lawrence power in large. distant COM
munities in the United States in COM
petition with power from other sources,
the report asserted, holding that the
revenue realized would not be Sumclent
to compensate for generating and dis
tribution costs.
Project Called Premature.
while the development of St. Law
renee hydro electric energy will doubt
less in the course Of time be econom-
1cally profitable" said the report, "its
exploitation at present would be pre-
Snature."
A number of statistical tables to bear
out its assertions, as well as numerous
charts and maps, accompany the report.
Much has been said about the value
bf the waterway as a potential reserve
Of transportation capacity and as
regulator of railroad rates" the report
said. I'm neither the United States
nor Canada is there found to be need
for constructing the waterway for such
purposes"