South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-11-26

Excess of S2.387,599 Over
Expenses Cited by
Governor.

WASHINGTON. Nov. 25.-The
Panama canal has closed the best
year financially IN its six years OF
operation with an excess of SZ,3S7,-
59s in revenue over the expense OF
operation and maintenance
Brig Gen Harding. governor OF
the canal. predicted in his annual
report 10 me secretary OF war that
within a reasonable period Of norm
ai world conditions. the canal will
earn an actual profit ON its cost.
which has been $3.50. $50. 600 exclus-
i've OF expenditures for its military
and naval defense. In the mean
time. the general added. the canal
- performing an important COM
mercial service by stimulating
American trade with the west coast
OF South America and the orient.
More than Is per cent Of the car
go handled through the canal since
its opening was in transit between
the United States and South Amer
ica. and 14L2 per cent was between
the Atlantic coast OF the United
states and and the orient.
Within the six years of operation.
Cen Hardings report said. there
has been a marked increase IN trif-
fic through the canal notwithstand-
terfered with the normal develop
ment Of Ocean-going commerce. Al
ter the entry OF the United States
into the war n decrease on CONNER
cial traffic due 20 the diversion or
certain lines of ships 10 trans
Atlantic service but this was more
than offset by the increase IN traffic
growing out OF the war. chiefly on
account OF the development OF the
nitrate trade with the Pacific coast
Of South America.
Discussing the amount of money
expended By the United States on
the canal. Gov. Harding said.
Depends ON Toll Charges
THE Investment, from one point
OF view, may be regarded as having
been made and justified in the Crea-
tiOn OF an invalua BILE element of ma
tiOnal defense. If this be true. the
canal has an additional value in
rendering useful service in time Of
peace, and in returning 10 the fed
cral treasury revenue more than
sufficient to defray the EXPENSE OF
its operation and maintenance. II
is capable of doing more than this:
and II Is not an idle prediction to
state that with proper management
directed along the lines of a large
business enterprise. 10 Will within a
reasonable neriod Of normal world
conditions earn an actual profit on
the cost From an ANALYSIS made
under reasonable assumptions as "a
am Ortisation, depreciation. obscies-
CeaCe. and interest il is estimated
that within an annual revenue Of
three times thar Of 1920 the canal
will make a financial return on the
investment The time required to
promise this result will be affected
by any changes I'm legislation affect
ing charges for tolls"
In the year 2,745 vessels passed
through the canal. of which 2,47S
were commercial transits. Tolls
and other revenues amounted 70 S.
S3o.S11. while current expenses of
operation and maintenance totalled
10 $6,546,27Z. The excess of revenue
this year reduced 10 $2,231.091 the
excess of expense and maintenance
over revenues for the six years the
canal has been in operation.
At the rate Of revenues this year
fl is expected that by June 80, 1921
the collections for tolls and Other
canal revenues will exceed Ey 81.
0OO.00 or more than the total cur
rent expenses of operation anC
maintenance from the opening tC
that date. after which. the cana
authorities argue. there should b,
an excess OF S5.0OO.OOO or NOR,
each year.
Utilize Auxiliary Services.
The auxiliary services of the cana
have been largely utilized and ar,
of great value I'm carrying out tn,
policy OF making il attractive in al
of the incidental services that ar,
considered by shipping interests A
routing their vessels, Gen Hardinl
said adding that il has not been tn,
purpose to make large profits OF
these activities. but rather TO regu
late the charges so as safely Z,
cover the cost From these misceI
laneous services the receipts for Tn,
year year. Coal, S6.O32.572; water
$55,412. oil. groceries, and miscel
laneOus supplies, S1,274,556. anO
mechanical repairs $3.S63.933
With the growing traffic, AZ vii
Dp necessary 70 pNnand fbaeo ans