Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-12-26
PANAMA CANAL OPERATIONS
BY FREDERIC ]. HASKIN.

|. During the last fiscal year 5,197 yes.
sells that paid for the privilege used
| the Panama Canal, and in addition
| there were $50 free transits. These
| figures compare with 4,673 and 386 for
| the preceding year and indicate that
! the canal is a successful and grow
| Ing institution. The number of yes.
| sells using it is about one-third its
capacity, it being estimated that as
vessels could be transited every "a
| hours, or approximately 1900 in a
| year.
| The total earnings of the canal dur.
| ing the last fiscal year were $39. 019.-
| 61A54, of which tolls amounted to
w ,927,456.0S. Expenses of operation
est on commercial capitalization, were
$23. 096, 636.19, leaving net revenues of
| $15.992,97S.35 In 1925 the net rev
enues were S14.231, 841.57. Net rev.
enues from the operations of the
Panama Railroad showed a slight
| falling off last year, being 81 ,347 1913,
as compared with 81 ,525 Bob for the
preceding year.
! To know whether the canal is a
paying institution, considering it's cost,
| it must be understood that the in
vestment in the canal and it's ad-
| juncts IA partly for national defense
| and partly for commercial uses, and
for accounting purposes these items
| are separated. At the beginning of
the fiscal year 1926 the investment
charged to national defense was
$lI2,O00,000. while that chargeable to
commercial use was $275. 900 900.
| The latter amount may be regarded
as the Governments capital invest.
| ment in the canal, when it is com.
| puted whether or not the canal is
paying for itself. The interest at
per cent. the rate on practically all
the bonds that were issued to cover
cost of construction, would be $780,
| 900. The aggregate net revenues last
year were more than twice that sum.
A Big Deficit on the Whole.
The canal was begun in 1904 and
| was opened a little more than ten
| years later. the first ocean steamer
| passing through on August 3. 1914.
The official and formal opening of
| the canal was proclaimed by the
| President on July IL, 1920.
For the first four years of opera
| ton the revenues were less than ex-
| penses, as a result ~rinnaril'. of the
disastrous slides in Culebra Cut, now
known as Gaillard Cut. Recently the
revenues have exceeded the COS. of
operation and maintenance, and the
| canal may be said to he getting
| out of. the red
| TO June 80, 1926, the total operating
| expenses of the canal proper had
been $86 900, 900 ii in round figures,
while the revenues had amounted to
more than $144, 600, 600. In addition,
| the operating expenses of the aux
| Hilary business enterprises-fuel, re-
pair shops, cUmmissary supplies and
the like--had aggregated 1928 900. 600.
as against revenues OF over $685.
| 900, 900. The excess Of total earnings
over total expenses stood 1t $63, 1885,
244.93.
But, as has been stated, this does
not take into account the interest
charge which for the 12-year period
was almost $100.000,00O, and the
operating surplus fell considerably
short of covering 1t. On this basis
deficit is shown Of more than $685.
| 000, 900 since the completion of the
canal. With net revenues mounting
up, however, this deficit is being
wiped out at the rate of some $4,000
900 a year.
All told, the tolls-paying traffic
through the canal aggregated 34,so2
vessels OF SZ,bUl.ooo STOSS TcklstcI GU
tons up to June 80 last. For the last
| three years such traffic has averaged
5,O33 vessels. During this period the
ships of rs nationalities have passed
| through the canal, American vessels
| being slightly more than half OF the
total and British a little over rs per
cent. About 45 per cent OF the car
! goes carried was in United States
intercoastal trade.
In addition to the vessels that must
pay tolls there have been 3.l4S
transits Of ships operated by the
| United States Government, in addition
to craft in the service of the canal,
upon which no tolls were assessed.
Vessels that pass through the canal
for repairs at the Balboa shops also
| get free transit. but only IL have
claimed that exemption United
States Shipping Board craft pay tolls,
except when they are in the direct
service of a department of the Gov
| eminent Ships owned and operated
by the governments of Panama ana
| Colombia pay no transit fees.
| Tolls are LEVIED on the net tonnage
of ships. which is the interior space
that can be devoted - to the carriage
| of passengers or cargo, and the rate
| for laden vessels Is $1.20 per net ton.
| Panama Canal measurement For
| ships in ballast the rate Is ~ cents
per net ton. Each net ton Is 100 cubic
feet, or 2.s3 cubic meters.
On the basis that the cost OF operat.
trer = oi.ir, 10 an cantG Der ton Der dav