Evening star., 1902-01-08
CapitaIizing Canal Differences.

On the face of the canal commission ST. re-
port, with the purchase price of the Pan
anna properties placed at $40,000,OOO, the
two projects of Panama and Nicaragua
practically stand financially side by side,
with a shade of difference favoring Pam
anna. This is apart from any consideration
of the cost of securing concessions from
the governments involved, a subject requir-
ing particular attention from many points
of view, and. in recognition Of the peculiar
status of the Panama Company's grant.
not to be regarded as presumably favora-
BILE in the end to Panama. An attempt is
being made, evidently in behalf of the
Panama interests, to raise the question Of
relative cost in favor of Panama, by capi-
talizing the annual difference of 81, 100000
between the cost of maintenance of the two
canals when completed. One calculation
of this sort adds $50. 100000 to the cost of
the Nicaragua canal, bringing its total to
SD, 1854 062 which is s3S, 13o. .704 above the
commissions estimate of the cost of buying
and completing the Panama works.
Both the greater cost of construction and
the larger charge for maintenance involved
in the Nicaragua route result from IT'S
greater length. The canal commission spe-
cifically considered this factor In it's sur
vey of the two lines, and pointed out with
unmistakable emphasis that despite the
longer route of the Nicaragua project it's
advantage to commerce is obvious in the
saving of time on the majority of ocean
voyages between Atlantic and Pacific ports.
Now on the capitalization basis, it is
eminently fair to the Nicaragua canal that
some account be taken of the reduction of
steamer costs effected by the saving of
from one to two days on each trip by way
of the canal If the Nicaragua route Is
chosen. In view of the enormous tonnage
certain to pass through the isthmian
canal. whatever the route, this item is of
the first Importance. The saving effected by
Topping off two days of the trip from New
Orleans to San Francisco would include
economy in the coal bill, the wages of
crew and the insurance, while increasing
the marketability of the freight, not to
mention the increase in the value of the
vessel by permitting a greater number of
aggregate trips during the term of her
serriceability. To capitalize these factors
requires the computations Of an expert in
navigation statistics. 1t is easy to believe,
however, in the absence of a definite esti-
mate, that the net saving effected by the
Nicaragua canal in the transisthmian traf-
fic would stand for far greater sum than
the comparatively paltry s1,3oO,o00 a year
which that canal will cost in maintenance
over the Panama canal.
The United States alone will profit by the
saving of $1.300,O0O in the maintenance BILL
if Panama be chosen, while all ship owners,
and especially those of the United States,
including the government, will profit by the
saving in trip-cost effected by the Mica
rasua route. If thescanal is to be built as
money-making enterprise by this gov
ernment the balance of this advantage may
possibly be figured out in favor of Panama
II, on the other hand, it is to be built as an
aid TO commerce and as military agency
OF the United States. the advantage is IN
mistakably on the side of the Nicaragua
route.
The capitalization theory of compari-
son will easily work both ways.