Evening star., 1927-04-03

| SIS, ,627 ,463.05. BY 1921 tranSitS reached
the 1882 mark, with tonnage at H.
| 4l5,S76 and tolls at $11, ,276,SS9. Be
ginning in 1928, however, the number
of transits jumped to more than 3,0oo'
| in 1924 they hit the record $3.50; in
| 1925 they were 4.673, and in 1926 they
rose to 5,196 with proportionately in
creaSing tonnage and tolls.
| But the American Government also
maintains in addition to the canal
! large number of business operations
in the Canal Zone from which 1t real
ICES a profit, including the Panama
Railroad Co., shop and marine work
of multifarious nature such as would
constitute a great International SER
vice station for ships. The total net
profit for these operations was $702,-
873 in 1926, as compared with $685.
9l6 in the preceding year.
Revenue Shows Gain.
The combined net revenue from op-
Grafton of the canal and it's auxiliaries
on the isthmus for the past fiscal
year was $i7,340,S65, as compared to
| S15.757,751 in 1925
The enormous project which this
Government undertook and is now
| carrying forward with such grow
ing success is said to be fully justi-
fed on at least three counts--as a
commercial enterprise, as an invest
ment in national defense and as an
investment in national prestige.
The amount of the investment, set
down in dollars and cents, has been
| calculated at $112,000000 chargeable
to national defense, and $275,000, 900
chargeable to commercial use.
But with all this American money
tied up in Central America. and with
personnel estimated at 2,S70 Amer
leans, and $3.50 alien employees EN-
ployed in running the project, the
status of the American Government is
held by Panama not to be that of a
complete sovereign in the Canal Zone
Under treaty between the two
powers, proclaimed in 1904, the
United States paid to Panama $10,-
100000 in gold and is still making
an annual payment of $250.000, which
is to be continued during the life
of the treaty. BY the terms of the
treaty and the payment of these sums
the United States received certain
rights. The payments are designated
in the treaty ''as the price or COM
pensation for the rights, powers and
privileges granted = by the Re.
public of Panama to the United
States"
New Treaty Pending.
A new treaty has been negotiated
by representatives of the two pow
ers, to supplement other conventions.
and to provide for the settlement
of certain points of difference which
have arisen out of the exercise by
the United States OF sovereign rights
in the Canal Zone, "but 1t has been
ratified by neither legislative body
The new treaty, however, does not
affect the $25o,0o0 annual payment.
The United States also paid under
terms of a treaty with the Republic
OF Columbia which formerly exer-
cised sovereignty over the Canal
Zone site before recognition of the
Republic OF Panama by the United
States the sum of $25 5000 900 to CO.
iombia. To the French canal COM
panies, which had already done some
excavating and left their machines
SAC, ,000, 900.
This Government is still paying off
the bonded Indebtedness incurred in
the first place for construction of the
properties in the Canal Zone To
meet the expenses bonds in the total
amount OF about $134,000. 900 We're
issued, of which about $124 4.000. 900 are
still outstanding. The longest term
issue of these securities is at per
~~tAb AASIACot utIU AlAAkuEE6 HI 1SO1s
More Locks May Suffice.
The United States thus has big
stake in the Isthmus. 1t has gone in
deep financially and has commercial
and defensive proposition which 1t lis
watching with jealous eyes to the
future. The action of President Cool
idge in causing a most careful survey
To be made of the possibilities there
will receive the hearty sanction of
the American taxpayer. who wants to
see his investment there not only well
watched for the present, but devel-
oped for the promotion of commerce
and for the future protection, security
and prestige Of the United States.
If installation OF additional locks in
the present canal will suffice for the
present as more advisable than carry
Ing forward the huge project of a new
canal in the Nicaraguan route. such
locks can be installed, according to
engineers. Former Gov. Jay J. Nor.
row is on record concerning expan.
sion Of the present capacity of the
canal-placed at $4,000 900 net tons
annually--with this prediction: There
are no insuperable engineering diff.
cultfes that would prevent the con-
structton of six more locks, which can
be undertaken and completed in time
to meet the demands Of commerce.
.. A new canal through Nicaragua.
Senator Edge said, the War Depart
ment estimated, would cost approx1.
| mately $500 900 0.o00-perhaps $1,000
| 600 ,000-~and would require Is years to
build. An additional lock in the pres.
ent canal, he said, would probably
| cost about $l25. 900, 900.
The American right to the Nicara.
guam route was established in 1916 bv
the Bryan-Chamorro treaty and the
payment of $4,000 900, which also con.
ceded rights to establish a naval sta.
ton at Fonseca Bay, on the Pacific
coast, These rights, it was frankly
explained by spokesmen for the adj
ministration, were largely responsible
! for the presence OF United States Ma,
rines and American warships in u,xa.
serving order in Nicaragua.