THE PANAMA CANAL.

Gisborne Times, Volume XLVIII, Issue 4459, 29 January 1917, Page 3

THE PANAMA CANAL.

MANY VICISSITUDES

HOPES FOR FUTURE SUCCESS

tip to date the Panama Canal is a net loss to its owner, the United States, from the standpoint of earning money, says a w.tdter in the Brooklyn Eagle. Yet it would not be fair to make the statement that the canal is a failure. The canal will only he a failure if slides of earth and rack continue to block its channel so frequently and for such long periods as to make its operating expenses exceed its revenues. During the first year of its operation the canal demonstrated the fact that it can be operated at a small profit at least. During the second year the balance went to the wrong side of the ledger because the canal was in operation only five months of the twelve. For seven months it was blocked to all travel by slides. The canal looked like a much bigger success during its first year than its second, and this despite the fact that it was opened to traffic, although not formally, just after the European war began. The war disturbed channels of trade, and had its chief effect in driving German commerce from the seas. Prior to the war and the opening of the canal it was the expectation of the canal officials that a very important part of the tonnage handled by the inter-ocean waterway would bo owned by the Hamburg-American line 0 f Germany. That line made greater preparations for the use of the canal than any other steamship, company. Yet not a ton of Hamburg-American freight has passed through ' the canal. The war cut it all off. GOOD FIRST YEAR. Notwithstanding the fact that the canal opened almost simultaneously with a commerce disturbing and destroying war, it did surprisingly well during its first fiscal Year, which raided June 30, .1915. During that first year* the canal showed a net earning of £44,051. This represented the excess of tolls collected over the cost of operation and maintenance, plus overhead charge. During the next year which ended June 30' 1916, the crash came. The canal had only been running two months and a-half of the second year when the Gaillard cut at Culebra became totally blocked bv a big slide north of Gold Hill. The slide came on Sptemher 18. Not a vessel made the transit of the isthmus until April 15, 1916, a period of seven months. During this time, of course, the canal revenues ceased entirely. But the expenses went up tremendously, because of the necessity of re-opening the waterway. When the year Avas up. the canal handling ships for only fi\m months of the period, there was a net loss of £919,984. TROUBLES RENEWED. The engineers, hoAvever, Avere not at the end of their troubles Avhen they opened Gaillard cut after seven months of hard labor. They had another slide to deal Avith very recently. This AA’as a renewal of old troubles at Cucaraeha. The channel Avas blocked from August 30 to September 7 of this year. ' . \ . r .. _ For the first two years of operating the ~'inal the accoimt‘‘stands thus —; Expenses ... £2.224,575 Revenue ... 1,350,642 Loss ' ... £873.933 Tt must he borne in mind that the expenses pf operation, maintenance and'. o\ r erhead charge do not include interest on the canal bonds Avhicb were sold to pay part of the cost of construction.