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CHAPTER I
THE WORLD'S TURNSTILE AT SUEZ

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When historical novels and "purpose" books dealing with great industries and commodities cease to sell, the vagrant atoms and shadings of history ending with the opening of the two world-important canals might be employed by writers seeking incidents as entrancing as romances and which are capable of being woven into narrative sufficiently interesting to compel a host of readers. The person fortunate enough to blaze the trail in this literary departure will have a superabundance of material at command, if he know where and how to seek it.

The paramount fact-story of all utilitarian works of importance is unquestionably that surrounding the great portal connecting Europe with Asia. As romances are plants of slow growth in lands of the Eastern hemisphere, compared with the New World, the fascinating tale of Suez required two or three thousand years for its development, while that of Panama had its beginning less than four hundred years ago. In both cases the possession of a canal site demanded by commerce brought loss of territory and prestige to the government actually owning it. The Egyptians were shorn of the privilege of governing Egypt through the reckless pledging of credit to raise funds for the completion of the waterway connecting Port Saïd and Suez, and the South American republic of Colombia saw a goodly slice of territory pass forever from her rule, with the Panama site, when the republic on the isthmus came suddenly into being.

Vexatious and humiliating as the incidents must have been to the Egyptians and the Colombians, the world at large, broadly considering the situations, pretends to see no misfortune in the conversion of trifling areas to the control of abler administrators, comparing each action to the condemning of a piece of private property to the use of the universe. When the canal connecting the Atlantic with the Pacific shall be completed, no more waterways uniting oceans will be necessary or possible. But, did a weak people possess a site that might be utilized by the ebbing and flowing of the globe's shipping, when a canal had been made, they would obviously hesitate a long time before voluntarily parading its advantages.

The uniting of the Mediterranean and Red seas was considered long before the birth of Christ, and many wise men and potentates toyed with the project in the hoary ages. The Persian king, Necho, was dissuaded sixteen hundred years before the dawn of Christianity from embarking in the enterprise, through the warning of his favorite oracle, who insisted that the completion of the work would bring a foreign invasion, resulting in the loss of canal and country as well. The great Rameses was not the only ruler of the country of the Nile who coquetted with the project. In 1800 the engineers of Napoleon studied the scheme, but their error in estimating the Red Sea to be thirty feet below the Mediterranean kept the Corsican from undertaking the cutting of a canal. Mehemet Ali, whose energies for improving the welfare of his Egyptian people were almost boundless, never yielded to the blandishment of engineers scheming to pierce the isthmus; he may have known of the prognostication of Necho's oracle.

Greater than any royal actor in the Suez enterprise, however, was Ferdinand de Lesseps, the Frenchman whom history persists in calling an engineer. By training and occupation he was a diplomatist, probably knowing no more of engineering than of astronomy or therapeutics. Possessing limitless ambition, he longed to be conspicuously in the public gaze, to be great. He excelled as a negotiator, and knew this; and it came easy to him to organize and direct. In his day the designation "Captain of Industry" had not been devised. In the project of canalizing the Suez isthmus—perennial theme of Cairo bazaar and coffee-house—he recognized his opportunity, and severed his connection with the French Consulate-General in Egypt to promote the alluring scheme, under a concession readily procured from Viceroy Saïd. This was in 1856.

Egypt had no debt whatever when Saïd Pasha signed the document. But when the work was completed, in 1869, the government of the ancient land of the Pharaohs was fairly tottering under its avalanche of obligations to European creditors, for every wile of the plausible De Lesseps had been employed to get money from simple Saïd, and later from Ismail Pasha, who succeeded him in the khedivate. For fully a decade the raising of money for the project was the momentous work of the rulers of Egypt; but more than half the cash borrowed at usurious rates stuck to the hands of the money brokers in Europe, let it be known, while the obligation of Saïd or Ismail was in every instance for the full amount.

Incidentally, a condition of the concession was that Egypt need subscribe nothing, and as a consideration for the concession it was solemnly stipulated that for ninety-nine years—the period for which the concession was given—fifteen per cent, of the gross takings of the enterprise would be paid to the Egyptian treasury.


PORT SAID ENTRANCE TO SUEZ CANAL, SHOWING DE LESSEP'S STATUE

Learning the borrowing habit from his relations with plausible De Lesseps, the magnificent Ismail borrowed in such a wholesale manner, for the Egyptian people and himself, that in time both were hopelessly in default to stony-hearted European creditors. Egyptian bonds were then quoted in London at about half their face value, and Britons held a major part of them.

England had originally fought the canal project, opposing it in every way open to her power and influence at Continental capitals. The belief in time dawning upon the judgment of Britain that the canal would be finished and would succeed, her statesmen turned their energies to checkmating and minimizing the influence of De Lesseps and his dupe Ismail. The screws were consequently put on the Sultan of Turkey—whose vassal Ismail was—resulting in that Merry Monarch of the Nile being deposed and sent into exile, and the national cash-box at Cairo was at the same time turned over to a commission of European administrators—and is yet in their keeping.

But the miserable people of Egypt, the burdened fellaheen, resented the interference of Christian money-lenders, demanding more than their pound of flesh. The Arabi rebellion resulted, when British regiments and warships were sent to quell the uprising and restore the authority of the Khedive. That was nearly a quarter of a century ago; but since the revolution the soldiers and civil servants of England have remained in Egypt, and to all intents and purposes the country has become a colony of England. The defaulted debts of the canal-building period were responsible for these happenings, be it said.

Verily, the fulfilment of Necho's oracle came with terrible force, and generations of Nile husbandmen must toil early and late to pay the interest on the public debt incurred through Ismail's prodigality. This degraded man in his exile persistently maintained that he believed he was doing right when borrowing for the canal, for it was to elevate Egypt to a position of honor and prominence in the list of nations. And it is the irony of fate, surely, that Ismail's personal holding in the canal company was sacrificed to the British government for half its actual value, on the eve of his dethronement, and that every tittle of interest in the enterprise held by the Egyptian government—including the right to fifteen per cent, of the receipts—was lost or abrogated. Owning not a share of stock in the undertaking, and having no merchant shipping to be benefited, Egypt derives no more advantage from the great Suez Canal than an imaginary kingdom existing in an Anthony Hope novel.

The canal has prospered beyond the dreams of its author; but this means no more to the country through which it runs than the success of the canals of Mars. De Lesseps died in a madhouse and practically a pauper, while Ismail spent his last years a prisoner in a gilded palace on the Bosporus, and was permitted to return to his beloved country only after death. These are but some of the tragic side-lights of the great story of the Suez Canal.

A few years since there was a movement in France to perpetuate De Lesseps's name by officially calling the waterway the Canal de Lesseps. But England withheld its approval, while other interests having a right to be heard believed that the stigma of culpability over the Panama swindles was fastened upon De Lesseps too positively to merit the tribute desired by his relatives and friends. As a modified measure, however, the canal administration was willing to appropriate a modest sum to provide a statue of the once honored man to be placed at the Mediterranean entrance of the canal.

There stands to-day on the jetty at Port Saïd, consequently, a bronze effigy of the man for a few years known as "Le grand Français," visage directed toward Constantinople (where once he had been potent in intrigue), the left hand holding a map of the canal, while the right is raised in graceful invitation to the maritime world to enter. This piece of sculpture is the only material evidence that such a person as Ferdinand de Lesseps ever lived. The legacy to his family was that of a man outliving his importance and fair name.

The name Port Saïd commemorates the viceroy granting the concession, while Ismail the Splendid has his name affixed to the midway station on the canal, Ismailia, where tourists scramble aboard the train bound for Cairo and the Nile. The actual terminus at the Suez end is called Port Tewfik, after Ismail's son and successor in the khedivate. This convenient mode of perpetuating the names of mighty actors in the Suez drama suggests a certain sentimentality, but the present generation cares as little for the subject as for a moldy play-bill hanging in a dark corner of a club-house.

As an engineering feat the construction of the canal was nothing remarkable. Any youth knowing the principles of running lines and following the course of least resistance might have planned it. In Cairo and Alexandria it is flippantly said that De Lesseps traced with his gold-headed walking-stick the course of the canal in the sand, while hundreds of thousands of unpaid natives scooped the soil out with their hands. The work was completed with dredges and labor-saving machinery, as a fact. The enterprise cost practically $100,000,000—a million dollars a mile; and half this was employed in greasing the wheels at Constantinople and Paris, Probably the work could to-day be duplicated, by using machinery similar to that employed on the Chicago Drainage Canal, for $25,000,000. The task would be a digging proposition, pure and simple.

A cardinal article of faith of the legal status of the canal is its absolute internationality. By its constitution no government can employ it in war time to the exclusion or disadvantage of another nation. By a convention becoming operative in 1888 the canal is exempt from blockade, and vessels of all nations, whether armed or not, are forever to be allowed to pass through it in peace or time of war.


ITALIAN WARSHIP STEAMING THROUGH CANAL

Critics of Britain's paramount interest in India and her aspirations in the Far East, nevertheless, pretend to see a decided advantage accruing from England's control of things Egyptian. They claim that Britain's position is immensely strengthened by the presence in Cairo and Alexandria, within a few hours' journey of the canal, of a half-dozen regiments of redcoats ready for any emergency. Another proof of England's interest in the great universal artery of travel is the maintaining of guard-ships at either terminus, which incidentally keep watchful eyes on the coal-bins of Suez and Port Saïd, A vessel unofficially sunk in an awkward position in the canal might delay for weeks the arrival of an unfriendly fleet in Asiatic waters.

The British government and British trade have fattened tremendously from the canal. Being the short-cut to England's treasure-house in the East, it is more or less equitable that Britain's flag flies over sixty per cent, of the canal traffic; and, fully as important, is the tremendous increase in value of the shares in the company held by the British government. It was in 1875 that Disraeli secured to his countrymen the permanent control of the canal through the purchase from embarrassed Ismail of that potentate's personal holding in the undertaking. This midnight negotiation, conducted over the cable, was Disraeli's most material triumph as a statesman. For $20,000,000 he purchased shares having now a market value of $135,000,000. A few hours after the consummation of this negotiation a group of French bankers, then in Cairo, seeking to acquire the shares, were amazed to learn that they had been outwitted. A well-posted newspaper correspondent at the French capital had informed Britain's ambassador of the purpose of the bankers' visit to Egypt—and astute Disraeli did the rest.

This transferred from France to her rival across the channel the right to direct the policy of De Lesseps's creation. But French susceptibilities have always been considered in matters connected with the conduct of the enterprise—it is still "La Compagnie Universelle du Canal Maritime de Suez," the tariff is based on French currency, the principal office is in Paris, and the official language of the company is French.

The world knows the Suez marine highway only in its utilitarian aspect, and America's interest therein is that attaching to it as an enterprise forerunning Uncle Sam's route at Panama. Before many years have passed the two canals will to some extent be rivals. The Suez cutting is practically ninety-nine miles in length, and at present 121 feet wide, with a depth accommodating craft drawing twenty-six feet and three inches. To handle modern battleships and the increasing size of cargo steamers, both depth and width are to be increased. Having no sharp curvatures, and excavated at a level from sea to sea, ships proceed by night assisted by electric lights with the same facility as by day. The time consumed in transit is from fourteen to eighteen hours. Not for a decade has a sailing vessel used the canal, and the widest craft ever traversing the canal was the dry-dock Dewey, sent under tow by the government from the United States to the Philippines. The tariff is now reduced to $1.70 per ton register, and $2 for every passenger. A ship's crew pay nothing. The toll for a steamer of average size, like a Peninsular and Orient liner, is about $10,000. I first passed the canal in a yacht of the New York Yacht Club, for which the tax was $400, and the last time I made the transit was in a German-Lloyd mail steamer which paid $7,000 for tonnage and passengers.

The canal's value to the commerce of the world is sufficiently proved by the saving of distance effected by it, as compared with the route around the Cape of Good Hope. By the latter the distance between England and Bombay is 10,860 miles, by the canal 4,620 miles, and from New York to the leading ports of India the Cape route is about 11,500 miles, while by the canal the journey is shortened to 7,900 miles. How rapidly the traffic attracted by the economy in distance thus effected has developed, is best illustrated by the following statement, taken quinquennially from the company's returns:

Year Steamers Net Tonnage Receipts in Francs
1871 765 761,467 7,595,385
1876 1,457 2,069,771 27,631,455
1881 2,727 4,136,779 47,193,880
1886 3,100 5,767,655 54,771,075
1891 4,206 8,699,020 83,421,500
1896 3,407 8,594,307 79,652,175
1901 3,699 10,823,840 100,386,397
1906 3,780 11,750,000 103,700,000

The Suez company pays enormously, and more than half the current earnings go to the possessors of the several grades of bonds and shares. Great Britain is the preponderating user of the canal, with Germany a poor second. Holland, due to proprietorship of Dutch India, is third in the list, and the nation of De Lesseps is fourth. The United States stands near the foot of the roll of patrons, being only represented by an occasional warship, transport going to or coming from the Philippines, or a touring yacht. It is a pathetic fact that our country, paramount producer of the world, has not been represented for nearly a decade by the Stars and Stripes over a commercial craft in the Suez canal. Cargoes go or come between American ports and those of the Orient, of course, but they are borne in British bottoms or those having register in other foreign nations. Fifteen or sixteen years ago England was represented in Suez statistics by seventy-five per cent. of the total traffic; but her proportion has decreased until it is now under sixty per cent. Kaiser William making a systematic fight for new markets in China and throughout Australasia, the statistics of Germany in canal traffic are slowly advancing.

At present, with the Suez enterprise in operation thirty-eight years, the average number of ships using the waterway is approximately ten each day. This is one vessel every two hours and thirty-five minutes during the twenty-four hours—meaning an eastbound craft every five hours and ten minutes, and a westbound every five hours and ten minutes.

The idea of wedding the Atlantic and the Pacific must have been original with the first observant and intelligent person viewing the two oceans from the hills of the Central-American isthmus. Presumably he was a Spanish adventurer, and the time practically four hundred years ago. A century before the landing on American soil of the Pilgrim Fathers, explorers were informing Charles V of Spain of the opportunity supplied by nature to connect the waters of the two oceans. In 1550, one Galvao, a Portuguese navigator, wrote a book to prove the feasibility of an artificial connection between the Atlantic and the Pacific; and in 1780 a scientific commission from Spain studied the three Central-American routes—Panama, San Blas, and Nicaragua. These are simple facts to be pondered over by busy people who may possibly be in doubt as to whether the "father" of the isthmian enterprise was De Lesseps, Theodore Roosevelt, or Admiral Walker.

But it required a knowledge of practical geography to learn that from Colon to Panama by sea is eight thousand miles, instead of forty-seven across country—and it took a dauntless American President to demand that his government construct a national water route across the isthmus at Panama, and to point the way to that end; and this was done against potent opposition to any canal, and expressed preference of powerful statesmen for the unfeasible Nicaraguan project.

It may be profitable for enthusiasts jumping at the conclusion that the American canal will pay from its opening, to study the returns of the Suez enterprise, the first full year of whose operation (1870) showed gross takings of only $1,031,365 from tolls levied upon 486 vessels. Speaking generally, a shipper sends his cargo by way of Suez only when 3,000 miles at least of ocean steaming may be saved—this is the approximate economy effected by the great turnstile between West and East, counting time, fuel, wages and other expenses. It may be accepted as a concrete fact that the employment of any canal by commerce must ever depend upon economic considerations.

Already acknowledging our commercial predominance, Europeans are not blind to the real purpose of the Panama Canal. But it should be borne in mind that whenever it is an open choice between the canal toll and the equivalent of time at sea, the Briton will be slow to decide in favor of contributing to the resources of a nation rising in brief time to commercial premiership; and Frenchmen, economists by nature, will take a similar view, as will Germans, and shippers of other nations. Expressed in the fewest words, the employment of the Panama route will be governed exclusively by self-interest, computed from the standpoint of material economy; sentimentality will bring not one ship to Uncle Sam as a patron—unless it be an American ship.

Suez will always be favored by European shipmasters determining routes for cargoes in which Panama and Suez present advantages practically equal; probably the expense of a few hundred miles additional travel would not cause them to break from the old route, by which there is no risk of accident or delay from canal-locks. A considerable percentage of the oversea carrying trade controlled by British bottoms is geographically independent of canals, and will always be. For example, the bulk of traffic to and from the west coast of South America—the rich nitrate trade of Iquique and Valparaiso—will not ordinarily be altered by the Panama Canal. The economy of distance from the latter port to England and the Continent by the canal being only about 1,500 miles, this traffic, except under unusual circumstances, will continue as long as it goes in British vessels to round the extremity of South America.

Singapore will be the Asiatic port differentiating the attracting power of the Panama and Suez canals, speaking from the basis of Atlantic and Gulf ports as points of origin or destination. Cargoes for places west of the 105th degree of east longitude will logically be sent through the Mediterranean and the Suez Canal. But the area east of the Singapore degree of longitude is teeming with opportunity for Panama cargoes. The isthmian short cut to Oceanica and Asia, comprising the coastal section of China's vast empire, enterprising Japan, the East Indies, Australia, New Zealand, and our own Philippine archipelago, is the world's most potential area. The awakened Orient can use American products to practically limitless extent. One third of the trade of these lands would make America great as a world-provider, and could be secured if we embarked seriously in an effort to obtain it. Students of economics have never admitted the logic of America's sending cotton to England to be there converted into fabrics clothing half the people of the East.

Let the reader, content in belief that our manufactures have an extensive use in the outer world, because America heads the list of exporting nations, investigate the subject, and his reward will be to learn that we export only a trifle more than six per cent. of what we manufacture. Let him also study the statistics of our commerce with South America, natural products and manufactures of every sort—they are replete with astonishing facts. To discover that our exports to the southern continent do not equal $2 per capita of South America's population will surprise the investigator, doubtless; and that the volume of trade is overwhelmingly with England and Germany will likewise be disconcerting. South America has 40,000,000 people; but Mexico's 13,500,000 inhabitants buy nearly as much from Uncle Sam as the South Americans. We now sell Canadians products averaging $30 per capita annually.

The reason for the startling disparity in the statistics of trade intercourse with our adjoining neighbors, Canada and Mexico, and oversea South America, is obviously the lack of transportation facilities under the American flag; and the adage that "trade follows the flag" has earned more significance than attaches to a mere figure of speech. We pay South America yearly, let it be known, about $120,000,000 for coffee, wool, hides and other raw products; and the major share of this money is expended in Europe for the necessities and luxuries of life. This is inequitable, to say the least, and should be remedied. Uncle Sam must look to the Orient, as well, and seek to make China his best customer. Every nation in Europe whose foreign trade is worth considering exploits foreign countries in the thorough manner of a great commercial house—getting business by the most productive, not the easiest, methods. In frequent magazine articles I have insisted that the isthmian canal, "destined to make the United States the trade arbiter of the world," could never be expected to "pay" directly. The artificial waterway is to cost a vast deal of money; with the payments to the French company and to the republic of Panama, added to the sum necessary to the completion of the work. Uncle Sam's expenditure cannot be less than $225,000,000! It will probably be more. A private incorporation embarked in the enterprise would hold that the investment was entitled to five per cent. interest, say, and in time be funded. The money of the nation, embarked in a project distinctly commercial, merits a reasonable rate of income or benefit—four per cent. certainly. To operate the canal with the expensive up-keep essential to a region of torrential rains, cannot be less than $4,000,000 annually; if the Chagres River refuses to be confined in bounds, the cost will be greater. The items of yearly expense figured here total $13,000,000—a sum to be regarded as the very minimum of the cost of maintaining and operating the canal.

East of Suez

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