Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-07-04
(By Governor j. j Morrow
"American Industfies.")

III
"American IndustRies.")
On August Is, 1914,when the at
tention Of the world was concen
trated on the opening phases o
the war in Europe, the Panama
canal was opened to commerce. Il
the turmoil of those days this fina
consummation OF an enterpris,
which had obsessed the imagina
ton Of men for four centuries anC
had been actively prosecuted fo
more than three decades, since d.
Lesseps in 1881 turned the frs
spade full Of earth at the American
isthmus, passed almost unnoticed
IF it had occurred a few week.
earlier, the event would have at
tracted an international gathering
and would have been saluted b.
the navies of the world. But 1t wa'
obscured by happenings ever
more momentous. The navies were
about their predestined business Of
war and humanity, watching the
unchecked advance of the German
armies on Paris, scarcely Needed
the opening of great highway OF
commerce.
Effect of the War on Canal Traf-
fic.
The war not only eclipsed the
opening of the canal as an inter.
national spectacle, but it had far
reaching effects on canal traffic
German shipping, after that OF
Great Britain the most important
factor In maritime trade, disap-
peared from the seas British ship
ping was Communicated for the
transportation of troops and sup
plies and for auxiliary naval serv-
ice, and neutral shipping was grad
tally diverted by advancing freight
rates into war trades in the North
Atlantic and the Mediterranean.
The old trade routes were disor-
ganized and many countries which
might have contributed substan-
tial tonnage to the canal, notably
these on the west coast of Central
and South America, were so par
alyzed by the loss Of their Euro
pean markets, that their foreign
commerce shrank for the time be-
ing to negligible dimensions AS
the war progressed this was offset
to certain extent by the devel-
opment of special war trades, for
instance the resumption of nitrate
shipments from Chile for the man.
ufacture of munitions In Great
Britain and France. But 1t Is GER
tain that the war and postwar
conditions have greatly retarded
the normal expansion of the canal
traffic.
Prof. Emory r. Johnson esti-
mated after careful study that by
1915 there would be available for
the use of the Panama canal TO-
5000 tons of shipping per an
mum, and that this tonnage might
be expected to increase by 60 per
cent each decade. Unfortunately,
the canal was closed by slides from
September, 1915, to April, 1sl6,
80 that 1t is impossible to say what
the tonnage for those years
might have been under conditions
of uninterrupted traffic. During
1917, the first full calendar year
of operation, the tonnage was only
6,382 3S7, and the 100000 ton
mark was not reached until 1920,
The commercial tonnage in that
year was 10,37S,265. According to
Professor Johnson's estimates,
which assumed conditions of peace
ard normal commercial develop
ment, the tonnage for 1920 should
have been 13,344,000. The differ
ence between this and the actual
figures may be regarded as an in
dex of the retarding effect of the
war.
The Canal q Profitable Investment.
In spite of this retardation, of
losses resulting from the Interrupt
ton of traffic by slides for a
period of seven months In 1915 and
1916, and Of increased operating
costs due to war prices and war
wages, the tolls and other revenue
to date MAY, 1920. have exceeded
by a slight margin the cost Of OPP
Grafton and maintenance. The
earnings have not yet been suffi-
Client to provide for interest pay
ments on the capital invested or
for its amortization; but from now
on. unless canal revenues are re-
duced by legislation affecting tolls,
there will be an annually increas-
ing balance which may be so APP
piled.
In his annual report for 1920
Col. Chester Harding. then COVER
nor Of the Panama canal, stated:
.tThe canal in Its present state
represents a capital expenditure by
the United States of s366,650,000,
exclusive of expenditures for its
military and naval defense. The
investment, from one point of view,
may be regarded as having been
made and Justified in the creation
of an invaluable 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 to the fed
eral treasury revenue more than
sufficient to defray the expense of
its operation and maintenance. 1t
Is capable of doing more than this;
and 1t is not an idle prediction to
state that with proper manage
ment directed along the lines of
large business enterprise, 1t Will
within a reasonable period of nor