Arizona republican., 1904-08-10
VIII the Panama Canal Pay :?

1
 Will the Panama Canal Pay
 A staff correspondent of the Railway Age, writing from the Isthmus, takes Ia somewhat pessimistic view of the future of the Panama canal as finan- cial proposition. After going into the racial and industrial conditions in Central and South America, he reaches the conclusion that it is 'an interesting but discouraging fact that no great de- velopment of Central America or the west coast of South America Is likely to coneribute anything in the way of | traffic for the canal during the next generation, which does not exist now" In other words. the development of the southern country has reached it's max imum, he thinks.
 He pointe out that this local traffic includes very small amount of freight which rounds The Horn," passing be- tween points north of Valpairaiso and Europe or the United States. As to the traffic available, 1t includes the business between the Pacific coast and the eastern seaboard or Europe which now goes by way of the Horn, and the trade which may be developed between the Hav allan islands, the Philippines and the United States, and "the very trifing prospect of diverting that which now goes through the Straits of Magel- Ian, en route between Australia and Europe. to avoid the tolls of the Suez canal"
 Going into the question of cost. he finds that upon the present estimates of locked canal through the Isthmus of Panama. the cost to the United States will not fall below S21O,Oo 900, with accommodating interest on more than half the amount for 10 years, making the total cost of the canal on the day of it's opening approximately s25O,OOOoC0 This will require interest at per cent amounting to s7,5OO, 900 annually, and if to this be added the usual 10 per cent on actual cost ($15O,- OOO,000) for depreciation, maintenance and operation of the plant, the some- what startling total of s23, 900 an- nual charges, to be met by gross earn ings, is reached. The correctness or incorreCtness of this sum is of no real moment, he insists, since that is not the precise point aimed at; it is wished merely to show that the sum is a very large one which the Panama canal must earn to be regarded as business venture. The 300OOO tons of freight annually hauled at a considerable profit by the Panama railroad is evil dently humorously small; and even at A ton would scarcely bring a rev enue that would count in the require ments of operating the canal.
 The correspondent urges that when 1t must be understood that a large portion of the traffic now existing be- tween the west coasts of North and South America and Europe or the United States, circumnavlgates South America to avoid the charges of the Panama railroad, the possibility that q canal may count upon this traffic IS means of income practically disap- pears.
 It is, therefore. he decides because of the reasons given, that the people of the United States must prepare to as- sume another great annual charge. second only to the pension roll, for sen- timental and martial motives, without hope of profit for more than gener- alton. certainly. and perhaps never; but with a great sense of national satis- faction at an unparalled engineering feat, honestly carried out, in which another nation. nearly as great as and older than our own, failed lamentabIy.