The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-01-12
PANAMA CANAL
EARNING BIC
PROFITS
Great Enterprise Will Have
Paid for Itself in Forty
Years.
BY SEARS TAYLOR,
International News Service.

IntsFmatf0nal News Service.
IN forty years the Panama Canal
vim have completely paid for itself
ana viii return to the Government
. net profit Of approximately sio.-
OOO, 900 annually, according to fig'
ures just compiled At the War
Department.
This In addition TO the thousands
Of dollars annually saved by Amer
lean shipping firms through utiEi-
Ring the canal and its inestimable
value as . vital link In our system
Of national defense.
II IL doubtful whether the most
optimistic Of those who fostered the
project when. It was first conceived
ever expected It to actually pay q
profit.
The tremendous expense Of build.
ing the canal was justified in the
minds Of the engineers who dew
up the first plans because they
considered the project in the same
category e. Government work on
rivers and harbors in the United
States. Furthermore, they pointed
cut that q large portion Of the huge
sum could be charged OF to the
item Of national defense.
OF course, 1t was expected the
revenue in tolls would probably
pay for the upkeep of the canal.
and Il was also hoped that In time
the revenues would cut down to q
considerable extent the original
cost OF construction; but even the
most enthusiastic never thought
this could be- achieved in the short
period Of forty years.
Cost $S70, OOO, 900.
The original cost Of construction,
in round figures. was $S7s.000, 900.
In the fiscal year ending June 30.
1898, the total revenue from the
canal was $17.5OO.0O. OF this
amount $7.5Oo,OoO was expended in
general upkeep. leaving q net
profit Of $4,000, 900. and further
more the auxiliary business in the
zone owned by the Government re-
turned q profit Of another $1,000
600. This auxiliary business con-
1iDts OF supply stores selling food,
fuel. ship appurtenancee and the
like to vessels passing through.
Officials declare It was first ex.
Dected that considerably under 100
vessels would pass through the
locks every month. This was the
case when the canal was first
opened, but since that time the
activity there has Increased every
day. The record to date IL the
passage Of thirty-eIght vessels
through the canal in twenty-four
hours. The average Tor the wear
1923 WAS little over twelve YES.
sells eaCh day.
CapaCiay AppGUached.
Experts declare the maximum
number Of boats that can be taken
Through M twenty-four hours Il
nifty ana Tat in q few years Il
II expeCted that many viii consti-
tute tho daily average. The existing
plant can b utilized for another
thirty years before replacements are
necessary, and when the time comes
Tor a general renewing Of the
system 1t is planned to enlarge
the project so as to permit the
transportation Of a larger number
Of vessels.
The most important feature of
the improvement program consists
Of q plan to build q huge reservoir
IN the mountains east Of Lake
Gatun. At the present time the
capacity Of the lake is sufficient
Tor the number Of ships paasinn
through the canal, but IL the traf.
nc increases to a considerable Az.
Vent shortage Of water win re.
SUIT during the dry season in the
Canal Zone. "
Face Water Problem.
Every time ship passes through
the locks the volume of water in
tne AXE is lessened, and at the
end OF the three month neri0d
Wnen the mountain streams vhiAh
1eed the lake have been dried
UP, the water supply recedea to a
very low level. ~
All in all, officials contepd .h.4
the building of the Panama Canal
vas the best business pronositjo,,
the United States ever enterod
The importance Of the canal -
American shippers Is shown nv az
Lact That 40 per cent of the YES.
eeis which pass through are owneI
~ American firms. The actual 70
turn In dollars and cents IN 70
card to the value Of the canal %.
q part Of the defense svsten -
course cannot be estimated. "
In addition, the Treasure n.
pertmont Will receive $40. 900. 0on
annually land perhaps more sftsr
Few years. that otherwise wo,,id
be sought in the pocketbooE ~
Mr. Taxpayer. oI