Evening star., 1960-12-26
Canal Profit
Is0neofFeW
ByU.S.P Project

Is NANA).-The Panama Ca
nal is one Of the few important
Government operations which
give the United States q profit.
The Pana ma Canal Co.,
whose only stockholder Is the
United States Government, had
revenues totaling $93, 3,430, ,4lS in
the 1860 fiscal year, compared
with $87.250.S71 in 1859, ac-
cording to- its annual report,
issued here recently. The vast
majority Of income is from
canal tolls, which are approx
mately $4,000 for the average
freighter transit Of the 4o-mile
canal.
After paying out operating
expenses, sums for canal i'm
provement projects and inter-
est payments to the United
States Government (almost 50 |
million in 1859 and in l96O on
the direct investment by the
Government, the 1860 report
shows q net revenue Of $5,9O7,-
800, compared with net reve-
nue. of $2,9s3,532 in 1859.
According to the report. the
net direct interest = bearing
Government investment In the
Panama Canal in 1860 was
$33S.5l9,248. In addition, the
Government has non-tnterest-
bearing investments totaling
almost $12S million in the Ca
nal Zone.
Bridge Being Built
The latter involve, for ex-
ample, funds advanced by Con-
greSS for the construction Of
the Panama Canal Bridge, now
in progress, which win link
northern and southern Panama
with a highway over the canal.
This expenditure. however,
was negotiated between the Re-
public Of Panama and the State
Department and has no direct
connection with the operation
Of the canal.
According to the canal ad-
miniStration, the canal can
look forward to constantly in
creased use by ocean-goinE
freighters. tankers and cruise
ships"
For the month Of October, for
example. the number of vessels
transiting the canal in either
direction increased from S64 in
1859 to 929 in 1860. Revenues
in that month from tolls in
creased from $3,SS6,53 in 1859
to $4.582,2S9 this year.
Widening Under Way
Gov. w. A. Carter, admins
traitor of the canal, announces
a comprehensive program to
increase the capacity Of the
canal and replace worn out and
obSolescent capital plants" His
report adds: ITO date, this pro-
gram has been successfully A.
nanced from funds generated |
by operations Of the Panama |
Canal Co."
Work is currently under wayf
to widen portions Of the canal |
to increase ship capacity--at |
q total cost Of at least SAT mill
lion. Similar projects. either
completed or to be completed
by 1862. involve expenditures
of $45.9 million.
According to the latest sta.
tistics, the Panama Canal Co.
employs q total Of 1l,45l per-
sons, most Of them United
States citizens. Most employees
live in the Panama Canal Zone
and have their families with
them in bungalows built by the
company and rented at nominal
rates.
In addition, important mill
tary and air bases are located
in the Canal Zone for its pro-
lection. Their strength is classi-
ned information, although it
has unofhcially been estimated
at lover 10000 men"
Americans Concerned
Canal Zone officials report
that recent clashes between
Panamanian left-wing and ma
. tionalist elements and United
States Canal Zone police and
soldiers have caused concern
among many Americans living
in the zone. In some cases, en-
ployes have sent their families
back to the United States.
Since the takeover and opera
ton Of the Suez Canal by the
NaSSer government In the
United Arab Republic, however,
agitators have begun to insist
that Panama should have some
measure Of control over the
Canal.
canal.
broadcasts are being beamed to
Panama from Cairo, urging the
population to seize control Of
the canal and pointing to
Egypt's success" in operating
the Suez Canal. Similar broad.
casts are heard here regularly
from Red China and Moscow.