Evening Star Newspaper, September 27, 1929, Page 7

" EDGE CITES MSKS IN DELAYED CANAL Nicaraguan Project Must Be Speeded, Says Senator in Radio Forum. ‘To delay in building the proposed Nicaraguan Canel, for which a survey has been authorized by Congress, would ‘“invite the risk of hampering our tuture industrial, commercial and agricultural interests.”” Senator Walter E. Edge of New Jersey, declared last evening in a radio address in the National Radio Forum arranged by The Star and spon- sored by the Columbia Broadcasting System. Speaking from Station WMAL over a Nation-wide network of Columbia Broadeasting System stations, Senator Edge. whom President Hoover recently nomineted to be Ambassador to France, expressed the cpinion, “based on a thor- ough survey oZ our trade conditions,” that “we shall require two interoceanic arteries most urgently in the not far distant future if we are to cope ade- quately with the increasing imports of our manufactured products alone.” Tmports Increasing. Increasing imports of American goods by the South and Central Americas, the new China and the Far East mage it necessary, Senator Edge said, that an- other interoceanic waterway be devel- oped. Under a joint resolution passed at the last session of Congress, sponsored by Senator Edge, $150,000 was appropriated for bringing & survey of 1901 to date and ascertaining the essential facts re- garding construction of a canal across Nicaragua. Army engineers are to re- port ‘their findings and recommenda- tions to the President and Congress within two vears. “These three considerations, economic, military and diplomatic. attach a pro- found significance to the Nicaraguan Canal project,” Mr. Edge asserted. Shortening of Time. “By shortening the time and distance between certain Atlantic and Gulf ports and those of Central America, our own ‘West Coast and Alaska, as well as by opening A new sea route to important South American and Far Eastern har- bors, the canal would prove a new stim- ulus to trade. By bringing to Nica- ragua the progress and benefits now ap- parent at Panama it would do much to solve the difficulties with that republic which have, in time past, harassed our State Department. “By establishing two water routes, instead of one, from ocean to ocean it would prove a great military asset.” Pointing out that, the United States Government, already has invested $3,- 000,000 in Nicaraguan canal rights un- der the Bryan-Chamorro tr Sen- ator Edge said there should be no dif- ficulty in obtaining other rights neces- sary. Apart from the military benefiis of the canal, he said, “the project looms increasingly important when considered in relation to our foreign and terri- torial commerce; particularly if the possibilities of congestion at Panama are concerned.” “There is no reason to doubt” he said “that a Nicaraguan Canal Zone would be transformed into an American zone like that of Panama, with a mil- itary reservation, and be administered by the War Department. Text of Speech Given. The text of Senator Edge's address follows, in full: After a lapse of 30 vears, the United States Government is again moving in a material way to ascertain the feasi- * bility and practicability of constructing a canal across Nicaragua uniting the Atlantic and Pacific Oceans. The last 1901, following which the Panama Canal was authorized, notwithstanding the commisison recommended the construc- tion of a Nicaraguan canal. At the last session of Congress, & joint resolution, which I had the privi- iege of sponsoring, was passed and be- came a law appropriating $150,000 for the purpose of bringing the old survey down to date and to ascertain other essential facts and to report within two years to the President and Congress. Engineers on Journey. Only a few days ago the first con- tingent of engineers, in command of Maj. Dan I. Sulton, United States Army, safled for Nicaragua to carry out the terms of the resolution. In view of the circumstances, it will probably be interesting to brieflv review . the economic results following the open- ing of the Panama Canal and the rea- sons leading up to the proposal to pos- sibly construct a second interoceanic waterway. Engineers have reported that the waterway at Panama faces the prospect of some day becoming overcrowded and thus confronting cargo carriers with the alternative of costly delays or again rounding the Horn. Military strategists have pictured the serious problem fac- ing the Navy should the present canal be crippled in time of war. Statesmen 1ave pointed out the contribution toward international understanding and Cen- tral American developments which a new trade artery might assure. Profeund Significance. ‘These three considerations-—economic, { military and diplomatic—attach a pro- found significance to the Nicaragua canal project. By shortening the time and distance between certain Atlantic or Gulf ports and those of Central America, our own West Coast and Alaska, as well as by opening a new | sea route to important South American and Far Eastern harbors, the canal would prove a new stimulus to trade. By bringing to Nicaragua the progress and benefits now apparent at Panama, it would do much to solve the difficul- ties with that republic which have. in times past, harassed our State De- partment. By establishing two water routes, instead of one, from ocean to ocean, it would prove a great military asset. Under present conditions. the blocking of the Panama Canal by bombs dropped from aircraft could effectually separate the Atlantic and Pacific fleets and place the United States in wartime in a position similar to that of 1898, when the battleship Oregon made her historic voyage down | the west coast of South America, through the Strait of Magellan and up the east coast to the Caribbean. Outlining Situation. Before discussing in detail the mili- tary ard commercial advantages offered by the proposed Nicaragua cut, it seems wise to outline the present situation at Panama. Official reports show that the commercial business of the canal has doubled approximately every five years from the first year of operation, gmd indicate that if the present ratio Jgincrease continues the waterway may reach the point of maximum ecapacity in less than 10 years. This, however, seems to be only a possibility. A greatly increased tonnage in the near future would be necessary before.the commer- eial business of the canal could con- tinue to double every five years. In my own judgment, formed after a careful survey of the situation, the present eapacity of the canal will, however, be reached befween 1940 and 1960, which means that unless immediate steps are taken to prepare for the future the capacity limit may be reached in not more than 12 years. Improvements Can Help. It seems to me apparent that im- vements to the Panama Canal can mp. but not entirely remedy, the situ- survey was completed 1in | ' | i SENATOR EDGE. A third flight of locks, g:nllzlln‘ the present two flights, has been suggested also as a method of increasing the pres- ent canal capacity. Proponents of this plan assert it would increase facilities 70 per cent, thus fixing the maximum capacity of a high-level canal for all| time at approximately 100,000,000 tons | annually. ~ According to en, timates. these changes would cost from | $125,000,000 to $150,000,000. | Other Plan Faulty. The cost of transforming the canal into a sea-level waterway would be far | greater. I have, in fact, heard no esti- | mate for this under a billion dollars. | But even if the changes were completed | the great difference between the rise | and the fall of the tide in the Atlantic and Pacific Oceans would still necessi- tate tidal locks. Thus it seems apparent that no matter how the Parfama Canal problem may be met ihere will still exist a situation demanding early and prac- tical consideration of the construction of another waterway between the At-| lantic and Pacific Oceans, As is generally known, the Nicaragua Canal project was seriously contem- | plated among the earliest plans to open | a gateway between the two oceans. | When the Isthmian Canal Commission | in 1901 estimated the total cost of a | canal by the Panama route at approxi- mately $250.000.000, which included re- | imbursing the French, it also computed the total cost of the Nicaragua project at about $190,000,000, or some $60,000,- 000 less. More recently the cost of a Nicaragua canal has been estimated at a figure as high as a billion dollars, but that is, of course, purely speculative. Survey Needed First. It is impossible to fix an accurate cost of the project until the survey for which the legislation provides has been | completed. 1In proportion to the length of the canal, comparatively little dredg- ing would be required. By actual com- parison the Nicaragua Canal as con- templated would be approximately 183 miles in length as against the 41-mile length of the Panama waterway, but actual digging would be necessary only through the 12 miles separating Lake Nicaragua from Brito, on the Pacific Coast. The San Juan River, connecting Lake Nicaragua with the Atlantic Ocean. would require dredging and excavation, a feat presenting no extraordinary en gineering difficulties. Suggestions t! earthquakes might destroy the work ap- pear to be answered by the fact that the City of Granada, founded in the sixteenth cent: still stands intact in what has been described as the earth- quake country. Modern reinforced locks could doubtless resist whatever tremors occurred, as the City of Gran- ada has resisted them for four cen- turies. Difficulties Fewer. Construction of the canal involves difficulties no greater—if as great—than those encountered in the building of the Panama “inal, and probably none so serious as the famous Culebra Cut. The Nicaraguan route would pass through the lowest gap in the Cordil- leras. Its elevation would be 155 feet above sea level, as compared with more than 300 feet at Panama. Of the total length of 183 miles, 70 would be lake navigation and about 40 on lake level extended above a dam, as in the upper end of Gatun. Nor is the route un- healthy. It has been reported as un- usually free from malaria and other endemic diseases. Unquestionably there are still other advantages for con- structors, or the distinguished engineers of the 1901 commission would not have recommended such a canal. These fea- tures must, of course, be studied in the survey which will precede construction, and cannot be adequately discussed at this time. Advantages Apparent. ‘What can be presented, however, are the economic. military and diplomatic advantages offered by the project. It is axiomatic to say that an inter- oceanic canal makes trafic and in- creases commerce. This has been proved by both the Suez and the Pan- ma Canals. Construction of the Nica- | raguan Canal. I am convinced, prove of incalculable value to both our industrial and agricultural industry. as well as to a great portion of Latin America, the West Coast of the United States, txht:"olrlent ln;i various Ameri- can territorial possessions. Consider, for example, the advantage it would afford vessels traveling our Atlantic and our Gulf ports to the West Coast or Alaska. Because of its more northern location the mo- posed canal would open to those ships a route 434 statute miles shorter than the one now available through the Panama Canal—a saving in time alone of from two 1 three days. Greater Time Limit. This estimate allows for the fact that because of greater length the ‘)uuge through the proposed canal would con- sume approximately 22 hours instead of the 8 hours required to traverse Panama. The advantage would not apply, of course, to vessels between our Atlantic: Coast and the west coast of. South America, for which established sea lanes make the Panama route shorter. Recent reports show, however. that only 21 per cent of the present canal traffic is in this category. The remaining 79 per cent of the vessels are bound elsewhére. For the majority of vessels included in this 79 per cent ineering es- | I m"ee pr:pued nm:n could eflm'flll mendous saving money as as in_time. The United States Ship- ping Board estimatés that the average operal expcnnb p:; sea day of n: cargo sl 3 5 P course, wl?huthe size and other char- acteristics of the vessel. It may be estimated that if 79 per cent of the ships now using the canal could save two sea days an annual saving in op- erating expense alone amounting to $3,400,000, or about 3% per cent on $1 000, would be effected. Estimates Conservative. Tt is, of course, logical to assume that traffic through the new canal wil! ation thus threatened. A supplementary | far exceed such estimates. Our trade water supply has already been author-| with Latin America and other coun- ized, but this can do little more than | tries and territories is expandini ximum use of existing facill- | unprecedented rate. There is, er, A greatnee ter | e o indication American shi] ties. A great’need for additional 1= now feié during the dr;umn estimates indicate that about $12, 000 i1 money and five years in time will Dbe required to provide a storage system. at an p- lndlp!nx will increase to meet the new ,000.- ' demands. The visions of the Jones- White act, offering substantial compen- sation to American steamship owners and operators engaged in foreign trade, through mail contracts over important trade routes, promise a new stimulus to both shipbuilding and ship operation in this country and a revival of Amer- ica’s former status as a leading mari- time Nation. These facts answer any suggestion t a Nicaragua Canal might divert business from the Panama :Canal to |such an extent as to impair the latter's | usefulness.” Consideration of the in- | creasing commerce between the east and west coasts of the United States and the east and west coasts of the South and Central Americas will show hat before many years there will be ample business for both waterways. Based on Thorough Survey. My judgment, based upon a thorough survey of our trade conditions, is that we shall require two interoceanic teries most urgently in the not far dis. tant future if we are to cope adequately with the increasing imports of our man- ufactured products alone by the South and Central Americas, as well as by our Territories, the new China and the rest of the Far East. To delay too long in building the Nicaragua Canal would invite the risk of hampering our fu- ture industrial, commercial and agri- cultural interests. The interest aroused by President Hoover's Latin American travels, an recent developments in highway way nd airway projects makes it apparent that our trade with both Central and South America is destined for still great- er expansion than even the past decade has witnessed. Mr. Hoover's visit to Nicaragua and Costa Rica has. in fact, done much to create sentiment for the canal project, not only in the countries |involved, but in the United States as well. U. S. Possessions Active. Another significant example of trade expansion Interesting to those con- cerned with the development of oceanic canais is furnished by & number of our | own possessions outside the territorial limits of the United States. Alaska, Ha- wail, the Philippine Islands, Porto Rico, the Virgin Islands, Guam, American Samoa and the Panama ‘Canal Zone have all shown great increases in im- ports and exports from and to the United States during the past 10 years. ‘These exports , were exceeded in 1927 only by our exports to the United King- dom, Canada and Germany. During that year the Territories and possessions purchased American merchandise to- taling $273,181,000 and supplied the United States with raw materials, trop- ical foodstuffs, textile products, can- ned fish and other imports worth $371,639,000. Apart from (- 2dvaniages the Nic- | aragua canal would offer our Atlantie d | hand, the United States will be in & and Pacific ports, the project looms creasingly important when considered in relation to our foreign and territorial commerce; particularly if the possibili- ties of congestion at Panama are con- sidered. As is_generally known, the United States Government has already in- vested $3,000,000 in Nicaragus canal rights. under the Bryan-Chamorro treaty and need anticipate no difficulties in obtaining whatever other rights are necessary. ‘The example of Colombia and Panama, whose difficulties with the United States were solved, whose com- merce expanded and whose material well-being greatly improved as a result of construction of flt:e Panama Canal, emphasizes this point. Nicaragua and Costa Rica would un- doubtedly welcome a similar invasion of American capital. Both the President and President-elect of Nicaragua, in discussing the plan after a visit to Mr. Hoover aboard the battleship Maryland, last November, strongly advocated the canal, describing it as a “bulwark of "r'tedom and a demonstration of lib- erty.” There is no reason to doubt that & Nicaraguan canal zone would be trans- formed into an American zone like that of Panama. with a military reservation, and be administered by the War De- partment. Benefits Held Obvious. ‘The benefits which would follow for both Nicaragua and the United States are obvious. As an element in our national defense its value would be great. At the last session of Congress there was much discussion of the old problem of “freedom of the seas.” Dur- ing Aebate on the construction of 15 sdditional cruisers for the United States Ni the emphasis was on methods of ur growing maritime com- 1t is apparent that if we are to maintain a mobile force of swift, well- armed cruisers for the protection of our trade, it would be to our advantage to place at their disposal not only one but two canals, to facilitate their movement between the Atlantic and the Pacific. A glance at the map will show naval bases of other nations now in the near vicin- ity of the Nicaragua area. In view of the great expansion of air forces, an additional aviation base in Central America would also prove of tremendous strategical value. Financial Aspeets Good. Like the engineering and military possibilities, the financial aspects of the Nicaraguan project seem, at this time, encouraging. A glance at the | records of the Panama Canal will llus- | trate this point. When finally com- | pleted, the waterway cost $390,000.000. | of ‘wnich $275,000,000 represents the | investment in a commercial sense, and $115,000,000—including the $40,000,000 paid to the French as reimbu for the work they had done—! | charged to the national defense. 11928 the net annual revenue from the | canal amounted to approximately $20.- |000,000—an income representing about 715 per cent on the $275,000,000 com- | mercial investment. There seems to be | no reason why parallel waterway | should not, in time, become to & com- | parable degree self-supporting. |~ ‘The legislation approved by Con neither authorizes nor appropriates for |8 new canal. It provides, instead. for a thorough survey which wili enable | the Government to act intelligently on the project. With this information at position to determine whether or not Ill should approve a plan which, in the light of present knowledge, seems highly | important to her future commerce, her | diplomatic relationships and her na- | tional securit ACCUSED GUNMAN DIES | One of Six Persons Named as| Blayer of Dry Agent Victim | of Injuries. By the Associated Press, SAN ANTONIO, Tex., September 27. —Pedro Guajardo, member of the gang that shot and fatally wounded Charles Stevens, Federal prohibition -officer, in & gun battle on a highway near here last Monday, died last night of wounds received in the fight. Guajardo was one of six persons charged with the murder of Stevens. ‘The others are his wite, Mrs. Louisa Guajardo, Joe Hoebrecht, xlleged leader of a bootleg ring in San An- | tonio; Alice Smith, Lee Cottle, alias | Louis Copeland. and Linn Stephens. 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