THE PANAMA CANAL.

Otago Witness, Issue 3524, 27 September 1921, Page 37

THE PANAMA CANAL.

Governor Joy J. Morrow, of the Panama Canal Zone, points out that the canal is already a profitable investment, in an article in the current issue of American Industries. In this article Governor Morrow says:— “The war not only eclipsed the opening of the canal as an international spectacle, but it had far-reaching effects on canal traffic. German shipping, after that of Great Britain, the most important factor in maritime trade, disappeared from the seas, British shipping was commandeered for tile transportation of troops and supplies and for auxiliary naval service, and neutral shipping was gradually diverted by advancing freight rates into war trades in the North Atlantic and Mediterranean. The old trade' routes were disorganised, and many countries which might have contributed a substantial tonnage to the canal, notably those on the west coast of Central, and South America, were so paralysed by the loss of their European markets that their foreign commerce shrank for the time being to negligible dimensions. As the war progressed this was offset to a certain extent by the development of special trade routes—for instance, the resumption of nitrate shipments for Chili for the manufacture of munitions in Great Britain and I ranee. But it is certain that the war and post-war conditions have greatly retarded the normal expansion of canal traffic. “Professor Emory R. Johnson estimated, after careful study, that by 1915 there would be available for the use of the Panama Canal 10,500,000 net tons of shipping per annum, and that this tonnage might be expected to increase by 60 per cent, each decade. Unfortunately, the canal was closed by slides from September, 1914, to April, 1916, so that it is impossible to say what the tonnage for those years might have been under conditions of uninterrupted traffic. During 1917, the first full calendar year of operations, the tonnage was only 6,362,387, and the 10,000,000ton mark was not reached until 1920. The commercial tonnage in that year was 10,378,265. According to Professor Johnson’s estimates, which assumed conditions of peace and normal commercial development, the tonnage for 1920 should have been 15,344.000. The difference, approximately, 3.000,000 tons, between this and the actual figures may be regarded as an index of the retarding effect of the war. “In spite of this retardation, of losses resulting from the interruption of traffic by slides for a period of seven months in 1915 and 1916, and of increased operating costs due to war prices and war wages, the tolls and other revenue to date (May, 1921) have exceeded by a slight margin the cost of operation and maintenance. Tho earnings have not vet been sufficient to provide for interest payments on the capital invested or for its amortisation; - but from now on, unless canal revenues are reduced by legislation affecting tolls, there will be an annually increasing balance which may be so applied.”