BUREAU CF B^LV/AY r— V* r't*~ - •' WHAT A "FULL AND COMPLETE CONSIDERATION" OF THE NICARAGUA CANAL PROJECT INVOLVES. The Honorable Joseph G. Cannon, Chairman of the Committee of Appropriations ired in the House Nicaragua Canal project cannot be entertained during the present session of Congress for the reason that there is not sufficient time for " full and complete consideration, wise and thorough discussion and full information." In this utterance of a distinguished American statesman I recognize a sign of promise that the Nicaragua Canal project may at last be considered upon its merits. Mr. Cannon mentioned among the questions involved in the canal scheme, first, the question as to when the United States can get title to the territory required for canal purposes, and second, as to when and how the means for its construction are to be secured. The question of acquiring title to the land required involves several important considerations, as follows : {a) Securing title to lands belonging to Costa Rica, (b) securing title to lands belonging to Nicaragua, (c) securing rights held by the Maritime Canal Company of Nicaragua, and (d) securing rights held by the re¬ cently formed Grace-Craig Company, which company will soon acquire possession of the lands and franchises now held by the Maritime Canal Company of Nicaragua. But weightier considerations than these naturally precede the appropriation of money for the construction of the Nicaragua Canal by the Governjnenf of the of Representatives, on the instant, that the 2 United States. The Clayton-Bulwer Treaty grants to Great Britain equal commercial and military privileges with the United States in any Nicaragua Canal which may be constructed, and besides provides for the neu- * tralization of such canal for military purposes in the interest of all foreign nations which have a navy. This clashes with the desires of the people of this country in regard to such canal. The American people demand that if any American isthmian canal is built it shall be, from the military - point of view, absolutely an American canal. A mlll'Jbn soldiers and their munitions of war can now be transported across the continent by rail within six weeks, but a neutralized Nicaragua Canal would place foreign nations on a parity of privi¬ lege with the United States with respect to the trans¬ portation of men and material of war. Besides, accord¬ ing to the published reports of certain of our own military men the defense of the canal would be exceed¬ ingly expensive and its construction of doubtful expe¬ diency from the military point of view. The idea that the " Oregon " would have passed through the Nica¬ ragua Canal if completed is chimerical, and the fact is clearly proved by the recent report of the Chief of the Bureau of Navigation of the Navy Department, and the history of the war with Spain. All this cannot be determined by legislative debate. It requires thorough investigation by a competent commission of military men of the highest professional qualifications in order that Congress may proceed in the debate upon " full information " as demanded by Mr. Cannon. That the Clayton-Bulwer Treaty is still in force has been conceded by every administration from Taylor to McKinley. The fact that the present administration has entered upon negotiations with Great Britain for the abrogation of the Clayton-Bulwer Treaty affords ample 3 proof of the fact that the treaty is still an obstacle to the construction of an American isthmian canal. This is manifestly a matter for diplomatic determination in advance of legislative consideration, if the debate in Congress is to proceed upon "full information." But bj7 far the most important matter to be considered in advance of legislative debate on the appropriation of money for the construction of the Nicaragua Canal or any other American interoceanic canal is the question as to the commercial value of any such canal. No such inquiry has ever yet been instituted by order of Con¬ gress. It cannot possibly become the subject of legis¬ lative discussion. Importunate proponents of the Nicaragua Canal scheme in the conduct of a conscienceless propaganda have been successful in deluding political conventions into the belief that no such investigation is needed, and Congress has naturally been influenced by the utter¬ ances of such conventions. A denial of the fact that a thorough and impartial commercial investigation should have preceded all other action in the direction of embarking in the construction of the Nicaragua Canal is manifestly an affront to the common sense and common prudence of mankind. A few incontro¬ vertible facts may perhaps serve to place this matter in its true light. 1. The distance from New York to Manila via the Suez Canal is, according to the Superintendent of the United States Coast and Geodetic Survey, 181 nautical miles less than the distance from New York to Manila via the Nicaragua Canal. See Appendix "A." Taking into account the fact that the Suez Canal is a sea level canal while the Nicaragua Canal involves 220 feet of lockage, and the fact that the Suez route is greatly superior in point of coaling facilities, the equated dif¬ ference in distance is fully 2,000 miles in favor of the 4 Suez route. The statement, Appendix " A," also shows that the distance from London to Manila is 5,080 miles less by the way of Suez, than by the way of Nicaragua or Panama. These official statements obviously carry with them the undeniable fact that the commerce of the eastern seacoast of the United States and of all Europe with Asia and Australasia will for all time move by the Suez Canal route and never by the Nicaragua route. 2. The assumption that the Nicaragua Canal will ever become an effective competitor for the transconti¬ nental railroad traffic of the United States is absolutely negatived by a recently published report showing the decrease in continental rail rates, published by the Department of Agriculture. Similar data is published by the Interstate Commerce Commission. The assump¬ tion is also negatived by a statement of distances fur¬ nished to me by the United States Coast and Geodetic Survey. See Appendix »{B." Fully two-thirds of the traffic of the Pacific Coast with the States east of the Sierra Nevada and Cascade ranges is with States and Territories west and north of the Appalachian Range. Chicago and St. Louis are the principal centers of that trade. The actual distance from San Francisco to Chicago is 3,447 miles less by the direct rail line than by the route via Nicaragua and New York. Taking into account the two transshipments involved in the traffic via Nicaragua, namely, at San Francisco and at New York, the equated difference in distance in favor of the direct rail lines is fully four thousand miles. All this is clearly indicated by the letter of the Superin¬ tendent of the United States Coast and Geodetic Survey, as shown in Appendix " B." The competition of one such competing railroad would financially ruin the Suez Canal, for the railroad would at once secure the car¬ riage of all passengers, the mails, bullion, express 5 goods, perishable goods and " fast freights," leaving only the residuum of freights of the lowest classes to be contested for by the canal route. On the American continent there are thirteen competing transcontinental railroads completed or in progress between Santiago, Chili, and Vancouver, British America. 3. Sailing vessels will never pass through the Nica¬ ragua Canal or the Panama Canal for the same reason that no sailing vessel ever passes through the Suez Canal, namely, lack of wind. 4, The commerce of the American continent south of the United States will not for many years, if ever, justify the construction of an Isthmian Canal, for the reason that the dividing ridge of the continent is near its west¬ ern coast and that the commerce of that coast is of such a nature that it will mainly seek one or the more of the thirteen transcontinental railroads between Chili and the Dominion of Canada, also for the reason that sailing ves¬ sels will continue to pursue the route around Cape Horn. In the year 1880, as Chief of the Bureau of Statistics, and at the instance of the American Society of Civil Engineers I computed the amount of tonnage which would then be likely to pass through any American Interoceanic Canal. It was found to be 1,625,000 tons as against seven to nine million tons as claimed by Count De Lesseps. The investigation was laborious and was based upon a Jarge amount of economic and statistical data. Nine years afterward, namely, in the year 1889, the Maritime Canal of Nicaragua was char¬ tered. Proponents of that enterprise declared at the outset of their prolonged and intense political prop¬ aganda that my computation of 1880 had been found to be incorrect and that it had been corrected. Until this day they have persistently refused to state where¬ in my conclusion was incorrect, or by whom or in what manner it had been corrected. I have since chal- 6 lenged them to debate, but they have refused the issue. I have repeatedly invited and even challenged them to join me in an appeal to Congress to refer the matter to a thorough and impartial investigation. This also they have persistently refused. I hesitate not to say, therefore, that they have shirked the issue from fear of the exposure of the falsity of their pretensions. In the exercise of my right as an American citizen, I have appealed and now appeal through the printed page, and in the open, for a thorough and impartial in¬ vestigation of the commercial value of the proposed Nicaragua Canal, confident that the result of such in¬ vestigation will confirm the correctness of my conclu¬ sions. In this whole matter I have acted on the defensive. Evidently such investigation as that here proposed, involving a large amount of statistical and economic data, cannot be prosecuted by Congress in the ordinary course of legislative debate. The facts must first be determined by a commission especially selected for that purpose. Upon such commission there should be placed no proponent or opponent of the canal. In no other way can the demand of Honorable Joseph G. Cannon for "full information" be met. In the light of changed conditions I have revised my official report of 1880, and have reached the conclusion that the Nicaragua Canal, if now completed, would not secure over 300,000 tons annually, as against 6,000,000 tons, estimated by the Nicaragua Canal proponents. This whole subject is one which in an intense degree and for reasons already stated, concerns me personally and in my professional character. Besides I am ani¬ mated to this protest and appeal for official inquiry by what I deem to be a sense of patriotic duty. JOSEPH NIMMO, Jr., Statistician, and Economist. Washington, D. C., February 12, 1899. Appendix A. TREASURY DEPARTMENT, Office of the Coast and Geodetic Survey, Washington, D. C.} June 10, 1898. Joseph Nimmo, Jr., 1881 F St., Washington, D. C. Sir : In reply to your letter of June 8, I beg leave to say that the distances asked for by you have been meas¬ ured on reliable charts, and are as follows : From Manila to New York : Nautical Miles. Via Suez Canal 11,565 Via Nicaragua Canal 11,746 From Manila to London: Nautical Miles. Via Suez Canal 9,600 Via Nicaragua Canal 14,680 Respectfully yours, HENRY S. PRITCHETT, Superintendent. Appendix B. TREASURY DEPARTMENT, Office of the Coast and Geodetic Survey, Washington, D. C., December 16, 1898. Mr. Joseph Nimmo, Jr., 1831 F St., Washington, D. C. Sir : In accordance with the request in your letter of December 13, the following is furnished: 1. San Francisco to New York, via Nicaragua Canal 4,890 2. Portland " " " " " 5,540 3. Seattle " " " " " 5,700 8. San Francisco to New Orleans via Nicaragua Canal 4,070 9. Portland " " " " " 4,720 10. Seattle " " " " " 4,880 4. San Francisco to Chicago, shortest rail line 2,356 5. Portland, Oregon, to " " " " 2,310 6. Seattle " " " " " 2,231 7. New York " " " " " 913 11. New Orleans " " " " " 912 MEASURES IN NAUTICAL MILES ALONG STEAM ROUTES BETWEEN THE FOLLOWING POINTS : San Francisco and Portland, Oregon 650 San Francisco and Seattle. Washington 810 San Francisco and Brito (Nicaragua Canal) 2,690 Brito and Grey town 150 Greytown and New Orleans' 1,230 Grey town and New York (comput. Watling Id. to New York 1,000).2,050 Respectfully yours, O. H. PITTMANN, Acting Superintendent. Nov g .