The Washington herald., 1915-04-25
Il. 5. IS LOSING
| MONEY ON Canal
Panama Ditch Run at Net
Loss of 10 Per Cent During
First Eight Months.
DEFICIT WILL DWHlDLE
Receipts Expected to Outgrow Ex-
penditures as Shipping
Develops.

The Panama Canal has been operated
at a net loss of about 10 per cent for tn,
first eight months of its use, according
to oficial figures received here yester
day. There are indications. however
that in a few months this loss will bt
reduced to less than per cent, and 1t il
hoped that the loss will disappear alto,
gether before the end Of the calendar
year.
These figures do not, however, repre-.
sent the real amount of the excess OF
canal expenses over receipts, since the
interes. on the investment is not in
cluded. The inclusion of interest on
Panama Canal bonds and other charges
on the investment made by the United
States in building the canal would make
the operating deficit considerably
greater.
Expert Makes No Estimate.
Prof. Emery r. Johnson. the expert
statistician and ocean traffic authority.
who made exhaustive studies OF the ex-
Itent to which the canal might be ex-
pected to be used, did not attempt to
make any estimates covering the first
year of the canal, when the interocea mic
traffic by the new route would be in q
state of development
Inc canal TeCelplS lTOIH july !, lol9,
when tolls first began to be collected. to
March /, 1885, fell short of the expenses
charged to operation and maintenance
of the canal by s26l ,09S. The total re-
ceipts were So 334 SIS while the total ex-
penses were s2.595,S13. This deficit II
Iapproxi1nately 10 per cent OF the expen-
|diture.
The figures compiled are not wholly
| fsir TO the canals earning powers. in
XA Ill tod Il ING
July, 1914, and the first half of August
of the same year, the canal was not
Regularly open to all classes of traffic
during that period. Tolls to the amount
|of only l,6l0 were collected during that
thine, and represented the passage OF
|scows and barges under tow. 1t was not
|until the canal was regularly opened on
August 15 1915. that the run of freight
carrying vessels were permitted TO use
the canal. On the other hand. during
this month and a half. the full amounts
of the expenses of the maintenance and
operation of the canal were charged to
its account as against the trifing re-
ceipts.
Better Showing for March.
Furthermore. it the figures for March.
1915, are included, the canals earning
powers make a better showing. The re-
ceipts from tolls during March showed
decided increase in earnings.
Were the same relation of receipts
/ to expenses TO be applied during the
whole period from July l, 1914. to
April /, 1915. the deficit would be
about s125. 1000. or only per cent on
1.-THE total expenses.
The compilation of the expenses of
the canal properly chargeable to op-
GRAFTON and maintenance is largely a
matter of bookkeeping. construction
work is still going on to an extent
which makes il somewhat difficult ac-
curately TO separate the two kinds of
charges II is stated that all the eX
penses which may be Considerd as
necessary to keep the canal open are
being charged TO operati and main
tenance These include a part of the
expenses of the civil government, a
part of the sanitary administration
and part of the general administration
expenses.