Evening star., 1923-02-04
CANAL ZONE BENEFITS ARE
DISAPPOINTING TOPANAMA
Little Republic Claims Profitable Busi-
ness Is Carried on by U. S. to Detri-
ment of Her Citizens.

essary commodities to the most lux
urious articles: and also by the con-
siderable amount of smuggling OF
, articles purchased in the commis-
saries and post exchanges with the
knowledge and complete disregard OF
the American authorities. who have
! refused on various occasions to make
use of the remedies suggested by the
Panamanian authorities"
Alleged Infringements.
The note complains of other alleg-
| cd infrinGements on Panama's rights.
| pointing out in one instance that the
canal administration maintains and
| operates in the zone moving pictures
and other classes OF public amusement
which were expected to be operated
, by residents of the cities of Panama
! and Colon. for whom such business
would have meant a great deal of
prosperity" The Panama railroad, II
is charged. has invaded the most
] varied fields of business" operating,
/ it is claimed, "commissaries. livery
i stables. garages, baggage transpor-
| tation within the cities of Panama
, and Colon, dairies, poultry farms.
butcheries. pack and refrigerating
plants, soap factories, laundries;
plants for roasting and packing cof-
fee, sausage and canned meat facto-
ries iron works. carpenter shops and
cooperages, besides its main and
| colossal business of collecting rents
from the lots which it possesses in
/ the cities of Panama and Colon"
| The note points out that the Canal
/ Zone has never been sold, ceded or
conveyed In fee simple by the repub-
! lie of Panama to the United States.
The sum of $25o,oO0 per year paid
! by the United States to Panama is
not meant as consideration for the
use of the zone, but compensates for
the cession made by Panama Of her
rights to collect that amount from
| the Panama railroad.
! Panama reminds the United States,
somewhat bitterly, that concessions
which mean practically nothing to
the United States are to the republic
of Panama, on account of her size
f, and the stage of her development,
questions of life and death. We
grudge. the fact that the United States
paid $4,000, 600 to Denmark for three
! small, barren islands in the Caribbean
sea, measuring only 13S square miles,
while the Canal Zone and auxiliary
waters have an area of 362 square
miles. We might recall, also, the
payment of $25,0o0.000 made by the
United States to Colombia, the nation
which SO decidedly opposed the con-
struction Of the canal, while Panama
received $1000o.00o for signing the
canal treaty, which secured its con-
stIuction, agreeing to grants and con-
Cessions that were real sacrifices for
her"
Profits to the L. 9.
Leaving aside the right or wrong
in the matter, the United States has
gone into business on a large and
varied scale in Panama and is max
ing 1t pay From the opening of
the canal to July, 1922, the total
revenues collected, including tolls
and miscellaneous business profits,
amounted to $58,7s5, ,22S.05, as against
an expense of operation and main
tenance of the canal during that Pc
riod of s53,so5. .os4.66. leaving a bal
ance on the right side of the ledger
of S4,S90.143.39. During the last four
fiscal years, however, revenues have
exceeded expenditures by approx
mately S10,000,00O, or an average of
s2,000,o00 a year. The Canal Zone is
paying the cost of operation, with
Ilox of int oh
the capital Of s275,17s.29s. which is
considered the commercial investment
in the canal. The greatest amount Of
tolls earned In any one month was in
October of last year-a total Of ST.
255.50S.
Panama takes particular exception
to the business operations of the
United States government in Panama