Two floating cranes will be provided in the permanent equipment at a cost of a quarter of a million dollars each. These cranes, with a lifting power of 250 tons, will be suitable for any wrecking operations in the canal and, also, for lifting the gates in case of repairs being required.
The canal will probably be the death blow to the sailing ship of international commerce. Not being able to negotiate the canal under their own power, and because of the dead calms which prevail in the Gulf of Panama, sailing ships will be stopped from using the Isthmian waterway. When they attempt to journey around Cape Horn and the Cape of Good Hope in competition with steam vessels which pass through the Panama Canal, the operation will afford such little profit that in the course of a few years they will have to surrender what little share of international commerce they have succeeded in keeping.
The Panamans are inclined to think the United States drove a hard bargain when the provision was inserted in the treaty that all supplies for the building and operation of the canal, and for the demands of shipping using it, when imported by the United States, should be free of duty. This practically gives the United States a monopoly of the business of catering to the needs of ships passing Panama. The present duty on imports is 15 per cent, and the local merchant who would sell supplies to the passing ships would be under the necessity of adding 15 per cent to his buying price before he could compete with the United States Government on equal terms. This advantage is made all the more marked by the reasons of the fact that the United States often can make much money out of the operation by selling at actual cost, the profit arising from the extra shipping which is thereby attracted to the canal.
The United States will reimburse the owners of any vessels passing through the locks of the canal, under the control of its operatives, for any injury which may result to vessel, cargo, or passengers. Provision is made under the permanent canal law that regulations shall be promulgated by the President which will provide for the prompt adjustment, by agreement, and immediate payment of claims. In case of disagreement, suit may be brought in the district court of the Canal Zone against the governor of the Panama Canal. The law says: "The hearing and disposition of such cases shall be expedited and the judgment shall be immediately paid out of any moneys appropriated or allotted for canal operation."
The character of misrepresentations made concerning the canal was illustrated in a story published in the midsummer of 1913. This story originated in London and declared that all of the big shipping interests were afraid of the Panama Canal, and that Lloyds would insure vessels and cargo only at much advanced rates. The article went on to state that the representative of one of the biggest European lines had visited the Isthmus and had returned with the announcement that his company could not afford to trust its vessels in the canal.
As a matter of fact, with the United States Government standing responsible for any damage sustained in the canal, no shipping interest could sensibly regard it as extra hazardous to pass through it; rather, it would be less hazardous than to negotiate the tortuous Strait of Magellan, where thousands of wrecks tell of unseen dangers, or to round Cape Horn with its fierce storms and its grave perils.
Much has been said about the probability of injury to the canal by persons of evil intent, and the Panama Canal law imposes heavy penalties on anyone attempting to inflict such an injury. The law provides that the governor of the Canal Zone shall make rules and regulations, subject to the approval of the President, touching the right of any person to remain upon or pass over any part of the Canal Zone. "Any person violating these rules or regulations shall be guilty of a misdemeanor and, upon conviction in the district court of the Canal Zone, shall be fined not exceeding $500 or imprisoned not exceeding a year, or both penalties in the discretion of the court. Any person who, by any means or any way, injures or obstructs or attempts to injure or obstruct any part of the Panama Canal, or the locks thereof, or the approaches thereof, shall be deemed guilty of a felony and on conviction shall be punished by a fine not to exceed $10,000 or by imprisonment not to exceed 20 years, or by the infliction of both of these penalties. If the act shall cause the death of any person within a year and a day thereafter, the person so convicted shall be guilty of murder and shall be punished accordingly." As a further precaution, individuals will not be allowed to approach the locks with any sort of packages unless they are properly vouched for.
The possibility of serious injury to the locks will be carefully guarded against. They will be lighted at night by electric lamps of large candlepower and the whole lock structure will be kept as light as day throughout the night. Men will be always on sentry duty, and an adequate system of intercommunication will enable the sentries to call out a guard large enough to repulse any attack of any small surprising party.