• TABLE OF CONTENTS
HIDE
 Front Cover
 Front Matter
 Title Page
 Table of Contents
 Introduction
 Section I: Canal operation and...
 Section II: Business operation...
 Section III: Government
 Section IV: Administration
 Section V: Financial and statistical...
 Back Cover














Title: Annual report of the Governor of the Panama Canal for the fiscal year ended ..
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Permanent Link: http://ufdc.ufl.edu/UF00097365/00013
 Material Information
Title: Annual report of the Governor of the Panama Canal for the fiscal year ended ..
Alternate Title: Report of Governor of the Panama Canal
Physical Description: 36 v. : ill. ; 23 cm.
Language: English
Creator: Canal Zone -- Office of the Governor
Publisher: U.S. G.P.O.
Place of Publication: Washington
Washington
Publication Date: 1928
Frequency: annual
regular
 Subjects
Subject: Politics and government -- Periodicals -- Canal Zone   ( lcsh )
Genre: federal government publication   ( marcgt )
Spatial Coverage: Panama
 Notes
Dates or Sequential Designation: June 30, 1915-June 30, 1951.
Numbering Peculiarities: Report year ends June 30.
General Note: Some vols. issued in the congressional series as House document.
General Note: Reports for 1914/15-1915/16 each accompanied by portfolio of maps and diagrams.
 Record Information
Bibliographic ID: UF00097365
Volume ID: VID00013
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 02454300
lccn - 15026761
oclc - 2454300
 Related Items
Preceded by: Annual report of the Isthmian Canal Commission for the year ending ...
Succeeded by: Annual reports of the Panama Canal Company and the Canal Zone Government for the fiscal year ended ...

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Table of Contents
    Front Cover
        Front Cover 1
        Front Cover 2
    Front Matter
        Front Matter 1
        Front Matter 2
    Title Page
        Page i
        Page ii
    Table of Contents
        Page iii
        Page iv
        Page v
        Page vi
        Page vii
        Page viii
    Introduction
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
    Section I: Canal operation and trade via Panama
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
        Page 31
    Section II: Business operations
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
        Page 39
        Page 40
        Page 41
        Page 42
        Page 43
        Page 44
        Page 45
        Page 46
        Page 47
        Page 48
        Page 49
    Section III: Government
        Page 50
        Page 51
        Page 52
        Page 53
        Page 54
        Page 55
        Page 56
        Page 57
        Page 58
        Page 59
        Page 60
        Page 61
        Page 62
        Page 63
        Page 64
    Section IV: Administration
        Page 65
        Page 66
        Page 67
        Page 68
        Page 69
        Page 70
        Page 71
        Page 72
        Page 72a
        Page 72b
        Page 72c
        Page 72d
        Page 72e
        Page 72f
        Page 72g
        Page 72h
    Section V: Financial and statistical statements
        Page 73
        Page 74
        Page 75
        Page 76
        Page 77
        Page 78
        Page 79
        Page 80
        Page 81
        Page 82
        Page 83
        Page 84
        Page 85
        Page 86
        Page 87
        Page 88
        Page 89
        Page 90
        Page 91
        Page 92
        Page 93
        Page 94
        Page 95
        Page 96
        Page 97
        Page 98
        Page 99
        Page 100
        Page 101
        Page 102
        Page 103
        Page 104
        Page 105
        Page 106
        Page 107
        Page 108
        Page 109
        Page 110
        Page 111
        Page 112
        Page 113
        Page 114
        Page 115
        Page 116
        Page 117
        Page 118
        Page 119
        Page 120
        Page 121
        Page 122
        Page 123
        Page 124
        Page 125
        Page 126
        Page 127
        Page 128
        Page 129
        Page 130
        Page 131
        Page 132
        Page 133
        Page 134
        Page 135
        Page 136
    Back Cover
        Page 137
        Page 138
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ANNUAL REPORT

OF THE


GOVERNOR OF


THE PANAMA CANAL
FOR THE

FISCAL YEAR
ENDED JUNE 30


1928


UNITED STATES
GOVERNMENT PRINTING OFICLL
WASHINGTON
1928




































































ADDITIONAL COPIES

OF THIS PUBLICATION MAY BE PROCURED FROM

THE SUPERINTENDENT OF DOCUMENTS

U. S. GOVERNMENT PRINTING OFFICE

WASHINGTON, D. C.

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TABLE OF CONTENTS


Page
Initroduict ion_______---------------------------------------------------- 1
Operation and maintenance of the canal------------------------ 3
Business operations-___---_-------------------------------------- 3
Administration-Government ------------------------------- 4
Net revenue of the canal and its auxiliaries ---------------------- -.4
Services rendered by the canal to shipping- ---------------------- 6

SECTION I.-CANAL OPERATION AND TRADE VIA PANAMA

Traffic in 1928--------------------------------------------------- 7
Proportion of tanker traffic ------------------------------------- 9
Tanker cargoes -------------------------------------- 11
Nationality of vessels ------------------------------------------ 11
Commercial traffic through the canal during the fiscal year 1928 by
nationality of vessels --------------------------------------- 13
Vessels entitled to free transit and launches of less than 20 tons net
measurement----------------------------------------------- 13
Trade routes and cargo ------------------------ --------------- 14
Comparative cargo statistics for past four fiscal years by principal
trade routes through canal--------------- -------------------- 15
Principal commodities- ---------------------------------------- 16
Commodity movement-
Atlaintic to Pacific ----------------------------------------- 16
Pacific to Atlantic---------------------------------------- 17
Classification of vessels---------------------------------------- 17
Details of the trade------------------------------------------- 18
Dual measurement system- ---------------------------------------- 18
Hours of operation ------------------------------------------------ 19
Lockages and lock maintenance ------------------------------------ 21
Lockages. ------------------------------------------ 21
Hours of operation-------------------------------------------- 21
Overhaul --------------------------------------------------- 22
Equipment. -----------_-------------------------------------- 22
Power for canal operation ------------------------------------------ 22
Water supply----------------------------------------------------- 23
Drry season --------------------------------------------------- 25
Additional storage at Alhajuela ------------------------------------- 25
Seismology ------------------------------------------------------- 26
Maintenance of channel and improvement projects -------------------- 26
Improvement project No. 1------------------------------------ 26
Improvement project No. 2_ ------------------------------------ 27
Improvement project No. 9 ------------------------------------- 27
Equlipnmenl --------------------------------------- ----------- 28
Ferry service------------------ ------------------------- -------28
Slides----------------------------------------------------------- 28
Aids to navigation-----------------------------.------------------- 29
Accidents-------------------------------------------------------- 29
Salvage opcrations.----------------------------------------------- 30
Rules and regulations--------------------------------------------- 31
III

67/7/






IV TABLE OF CONTENTS

SECTION II.-BUSINESS OPERATIONS
Page
Mechanical and marine work---------- ----------------------------- 32
Marine work----------------------------------------------- 33
Other work-------------------------------------------------- 33
Dry docks--------------------------------------------------- 34
Plant------------------------------------------------------- 34
Financial---------------------------------------------------- 35
Coal------------------------------------------------ ------------- 35
Fuel oil, Diesel oil, gasoline, kerosene-------------------------------- 36
Ship chandlery and other supplies-storehouse operations- ------_------_ 7
Native lumber operations------------------------------------------ 37
Harbor terminals-------------------------------------------------- 38
Commissaries ----------------------------------------------------- 38
Sales-------------------------------------------------------- 39
Purchases ---------------------------------------------------- 40
Manufacturing plants ------------------------------------------ 40
Hotels and restaurants -------------------------------------------- 41
Building construction ---------------------------------------------- 42
Animal and motor transportation----------------------------------- 42
Panama Canal Press ---------------------------------------------- 42
Panama Railroad ---------------------------------------------- 43
Telephones and telegraphs------------------------------------------ 43
Land and buildings--------------------------------------------- 44
Panama Railroad Co. lands and leases --------------------------- 44
Agricultural lands in Canal Zone -------------------------------- 44
Alhajuela Basin --___------------------------------------------- 45
Plant introduction gardens and experimental station ------------------- 45
Quarters for employees ---------------------------------------- 46
Clubhouses --------______---------------------------------------------- 47
Farm industries ---_---------------------------------------------- 47
Operation with Panama Railroad Co.'s funds-_--------------------- --- 48
Panama Railroad Steamship Line ----------------------------------- 48
Canal Zone for orders---------------------------------------------- -S

SECTION III.-GOVERNMENT
Population ------------------------------------------------------ 50
Public health_---------------------------------------------------- 50
Malaria -------------------------------------------------- 50
Canal Zone--------------------------------------------------- 51
Panama City-___---------------------------------------------- 51
Colon------------------------------------------------ ----- 52
Canal hospitals ----------------------------------------------- 52
Quarantine and immigration services------------------------------ 53
Municipal engineering --------------------------------------------- 54
Water supply------------------------------------------------- 54
Sewers ----------------------------------------------------- 54
Roads, streets, and sidewalks, Canal Zone --------------------- 54
Cities of Panama and Colon--------------------------------- --- 54
Army and Navy--_------------------------------------------ 55
Repairs to Dock 15 -------------- ---------------------------- 55
Water purification plants and testing laboratory_------------------ 55
Bridge across NMiraflores Spillwav ------------------------------- 55





TABLE OF CONTENTS V

Pnge
Public order_------------ --------------------------------------- 56
officee of the district attorney --------------------------------------- 5
Di-triet court ---__.------------------------ --------------------- 57
Marshal. --------------------------------------- 57
M1aagi-trates' courts_------- --------------------------------------- 58
Bal.4a.... ------------------------------------------------------- 5
Cristobal----------------------------------------------------- 58
Firc protection--------- ---------------------------------------- 58
Public school system----------- ----------------------------------- 59
NWh1ite schools --------- ------------------------------------- 59
Colored schoolss ----_------------------ ------------------ r0
Po-itil --ten.. -------------------------------------------- 40
`U-t oi --------------------------------------- ------------------- 62
Shipping commissioner-seamen ---------------------- -------------- <'3
Prohibited a liens --------------------------------------- .----- 3
Administration of estates ------------------------------------------ 63
Licenses and taxes ------------------------------------------------ 64
IiijmnihLration visas ------------------------------------------------- 64
Relations with Panama --------------------------------------------- 64

SECTION IV.-ADMINISTRATION

Chaniie- in organization and personnel ------------------------------- 65
Force enmployed--_-----_------------------------------------------- 65
Wage adjustments:
Gold employees ---------------------------------------------- 67
Alien employees on silver roll--------------------------------- 68
Cionplaints board------------------------------------------------- 69
Recruiting and turnover of force----------------------------------- 70
Gold employees --------------------------------------- -----70
Silver employees-------------------------------------------- 71
Public amusements and recreation-------------------------------- -- 71
Purchases and sales in the United States----------------------------- 72

SECTION V.-FINANCIAL AND STATISTICAL STATEMENTS

For list of tables see page ------------------------------------------- 73





TABLE OF CONTENTS


LIST OF ILLUSTRATIONS

Frontispiece. Chagres River at Alhajuela, near site of proposed dam to secure
additional storage of water. Center of picture is along axis of probable site.
Graph of operating uses of Gatun Lake water supply. (Page 24.)
Plate .1. Administration building at Cristobal.
2. Dredging division activities: View of dump area in swamp reclamation
near Corozal.
3. New buildings at Corozal Hospital for the insane.
4. The Chagres, one of two Diesel electric tugs built at Balboa shops,
Canal Zone.
5. Wholesale warehouse of commissary division, Mount Hope.
6. Railway and highway bridge at Miraflores Locks, over discharge
channel of Nliraflores Lake Spillway.
7. Improvement project No. 2-widening Gaillard Cut. View looking
west from Station I east bank, showing dredge working on south
shoulder.
8. Graph of principal commodities shipped through Panama Canal,
fiscal year 1928.
9. Graph of origin and destination of Pacific bound cargo, 1928.
10. Graph of origin and destination of Atlantic bound cargo, 1928.
11. Graph of tonnage of cargo passing through the Panama Canal, by
fiscal years.
12. Graph of percentage of cargo carried by ships of United States and
foreign registry.
13. Graph of number of commercial vessels transiting Panama Canal, by
fiscal years.
14. Graph of tolls collected, by fiscal years.



















APPENDIXES NOT PRINTED


REPORTS OF HEADS OF DEPARTMENTS AND DIVISIONS

Reports for the fiscal year 1928 have been made as follows and may be con-
sulted at the Washington office of the Panama Canal or at the office of the gov-
ernor, Balboa Heights, Canal Zone:
Engineer of maintenance-
Assistant engineer of maintenance, report of.
Pacific locks, report of superintendent.
Atlantic locks, report of superintendent.
Electrical division, report of electrical engineer.
Municipal engineering division, report of municipal engineer.
Dredging division, report of superintendent.
Office engineer, report of.
Meteorology and hydrography; surveys; report of chief of surveys.
Gatun Dam and backfills, report of general foreman.
Marine division, report of superintendent.
Mechanical division, report of superintendent.
Supply department, report of chief quartermaster.
Executive department-
Division of civil affairs, report of chief of division.
Police and fire division, report of chief of division.
Division of schools, report of superintendent of schools.
Bureau of clubs and playgrounds, report of general secretary.
District attorney, report of.
Accounting department, report of the auiiditor.
Land agent, the Panama Canal and Panama Railroad Co., report of.
Purchasing department. report of the general purchasing officer and chief
Sof Washington office.











ANNUAL REPORT


OF THE

GOVERNOR OF THE PANAMA CANAL


BALBOA HEIGHTS, CANAL ZONE,
August 27, 1928.
The SECRETARY OF WAR,
Washington, D. C.
SIR: Herewith is report of the Governor of the Panama Canal for
the fiscal year ended June 30, 1928.
In forwarding this my final report I wish to express my grateful
appreciation of the splendid support you have given me in the admin-
istration of the canal. It has been a pleasure and a privilege to serve
under you.
I also wish to bear witness to the intelligence, loyalty, and industry
of the personnel composing the canal and Panama Railroad forces.
It is an honor to have led such a body of men and women, and their
unselfish devotion to duty has made possible the successful operation
of these large governmental enterprises.
Very respectfully,
M. L. WALKER, Gorernor.

INTRODUCTION
The traffic through the Panama Canal in the fiscal year just closed
was greater than in any preceding fiscal or calendar year. This
statement, made last year, is repeated for this, Traffic in the fiscal
year 1928 was greater than that in the fiscal year 1927 by 18 per cent
in number of commercial transits, 12 per cent in net tonnage, 11 per
cent in tolls and 7 per cent in cargo carried.
This considerably greater canal business, which may be expressed
roughly by saying that the canal has handled seven ships where six
were handled the year before, has been conducted with an increase in
force of approximately 1 man to every 25 previously employed. The
growth in traffic led to an extension during the past year of the hours
of operation and to increases in divers elements of business connected
with the operation of the canal.
The growth of traffic has brought to the front considerations of the
possibility of its exceeding the capacity of the canal, with the corollary





REPORT OF GOVEnhI)r; OF THE PANAMA CANAL


of considering ways by which the capacity may be increased. Present
traffic is considered to be between 45 and 50 per cent of that which
the canal can handle, as constructed at present. The first. mov-e to
provide for future increases and to assure sufficient depth of water in
the cut and over the upper sills of the locks has been begun in the
development of a supplementary water supply. A resume of the
essentials of this project is presented in a section devoted to additional
storage at Alhajuela. It is believed that this, with the eventual
construction of a third flight of locks, paralleling the present, twin
flights will increase the present, capacity of the canal by about 70 per
cent.
The total net revenue from combined Panama Canal and Panama
Railroad operations in the fiscal year was $20,621,314.82, the best
showing for any year to date. The increasing revenues have been
made the occasion for proposals that the tolls be reduced, either on
all traffic or on special classes of vessels. Policy in this respect is for
determination by Congress. It is pertinent, however, for the adminis-
tration of the canal to point out that heavy expenditures are yet due
to be made for additions and replacements in the plant, for the ade-
quate quartering of employees, for suitable retirement of employees
grown old or disabled in this exacting service; that tolls at Panama
are lower (by approximately a third at present) than the tolls at
Suez; that reductions will benefit foreign vessels in foreign trade as
well as United States vessels in domestic trade; that the intercoastal
lines are competing severely with the railroads, and a lowering of tolls
may cripple the internal transportation system of the United States
while reducing the Government's revenue, with offsetting benefits
accruing only to limited special interests.
Through the past year the canal force has maintained its high
standards of expeditious service, not only in the actual transiting of
ships but in all of the supplementary services to shipping which are
conducted at the canal. The maintenance of adequate channel and
smoothly working locks go hand in hand as primary factors, and these
are linked with many only slightly lesser interests, the various busi-
ness activities and the governmental or municipal administration for
the canal and Canal Zone.
Under business activities are grouped such enterprises as the
storehouses and retail establishments for purveying foodstuffs and
supplies, oil and coaling plants, dry docks and shops for repair and
manufacturing, operation of the Panama Railroad and its shops on
the Isthmus, piers and wharves for the handling of cargo and pas-
sengers, operation of the Panama Railroad Steamship Line, opera-
tion of quarters for the canal force and their families and the con-
ducting of other enterprises which in the usual community are under
private minantagenment. Under government al administration some of





REPORT OF GOVERNOR OF THE PANAMA CANAL 3

the principal items are public scliools, sanitation anrid medical inidl
hblspital service, police and fire protection, customs -;ervice, quairain-
tine and imminigration, and sonic provision for recrea tion in a popt1ul-
tion which includes approxiiniat ely 8,000 civilian Americrians, 9,10)()
Americans in miilit.ary ande naval stations, and 20,000 aliens, mnIsIItly
West Indians.
Responsibility for the l idminist rit in of the Pananmia Canal is
centered in the governor, by the provisions of the Panitima Canal act.
In the existing organization the governor has distributed the work
amiiong nine major dep:irtments and divisions, the ieatds of which
are responsible to him.

OPERATION AND MAIN IENANCE OF THE CANAL

The maintenance of the passage for vessels between the oceans is
the fundamental business of the canal. The fiscal year 1928 was
another in which no delays of conselquenilce occurred to traffic. Ve--
sels were handled both in transit and at the terminals with a prompt-
lnes- which operators have lernetl to expect and demand. DtiringI
the year a total of 6,959 seagoing vessels passed through the canal, an
average of 19 per day. Of these vessels, 2,442, or a little over one-
third, made use of the terminal ports in discharging or loading
passengers or cargo.
One of the permanent problems of the canal is the avoidance of
accidents of the sort inherent in traffic through restricted channels;
such as groundings due to faulty operation of steering gear, often
at time of sheers which result from currents in close waters; striking
against the lock walls or piers and wharves, collisions with other ves-
sels, etc. During the fiscal year 1928 a total of 99 accidents occurred
as compared with 60 during the preceding year; those in which the
estimated damage was $1,000 or more numbered 14 as compared
with 15 during 1927.
The deepening of the Pacific sea-level section and Balboa inner
harbor, the removal of material brought into the canal by small
slides, and the general maintenance of channel and locks were carried
on through the year without interference with traffic.

BUSINESS OPERATIONS

Certain business enterprises necessary for the conduct of the work
and for the convenience of shipping were carried on by the canal
organization during the past year as before. The Panama Canal must
have its own controlled sea communnication with the United States.
The employees must be housed, provided with the necessities and com-
forts of life, and the Americans must have means for transportation
to and from the United States on leaves of absence to be spent in





REPORT OF GOVERNOR OF THE PANAMA CANAL


the Temperate Zone. Repair facilities, bunkering stations, chandlery,
and other essential supplies, are required by shipping. For purposes
of transshipment there are wharves and piers. These activities are
carried on by either the Panama Canal or the Panama Railroad Co.,
the latter being in all essentials a department of the canal organization.
The value of these services under centralized control has been
shown by experience. They assure to shipping adequate facilities
at reasonable prices under a management devoted primarily to the
efficient handling of vessels; and they make much easier the main-
tenance of an adequate and contented force which can be depended
on for the effective operation of the canal. With reference to national
defense, they place under the direct control of the Government
certain plants and stores of supplies essential to the use of the canal
terminals as naval bases and to the husbanding of resources in case
of siege. It is notable that in the face of the general opposition to
the Government's engaging in business activities, the wisdom of
this arrangement at the canal is recognized practically universally.

ADMINISTRATION-GOVER N I ENT

Such functions of government as public health; quarantine; immi-
gration service; customs; post offices; schools; police and fire pro-
tection; construction and maintenance of roads, streets, water sup-
ply, and sewers; hydrographic and meteorological observations;
steamboat inspection; aids to navigation, etc., are all embraced in
the single organization of the Panama Canal under the direct control
of the governor. Here again the concentration under one control
has simplified the operations of the canal by coordinating any and
all of these activities to the main function of prompt and reliable
handling of vessels. The arrangement results also in economies of
ntldminist ration, since under this control it is possible to place under
one organization or even under one individual, duties which in a less
centralized administration would be the function of two or more
adminnistrative units. This centralization has probably had more
t) do than any other factor with the continued efficiency of canal
opera t ions.

NET REVENUE OF THE CANAL AND ITS AUXILIARIES

The net income from tolls and other miscellaneous receipts known
as "transit revenues" was $18,224,844.86 for the fiscal year 1928, as
compared with $15,611,093.80 in 1927, $15,151,668.06 in 1926,
$13,465,924.72 in 1925, and $16,307,948.50 in 1924.
The net profits on auxiliary business operations conducted directly
by the Panama Canal, of which the most important are the mechanical
shops, material storehouses, and fuel-oil plants, totaled $736,719.43, as





REPORT OF GOVERNOR OF THE PANAMA CANAL


compared with $876,536.80 in 1927, $841,310.29 in 1926, $765,916.85
in 1925, and $901,624.12 in 1924. The net profits of operations
conducted by the Panama Railroad Co., exclusive of the Panama
Railroad Steamship Line hut. including commissaries, docks, contlin
plants, and cattle indulltry, were $1,659,750.53, as colmpaIried with
$1,644,1S9.37 in 1927, $1,347,S7.33 in 1926, $1,525,910.13 in 1925,
and $1,044,887.04 in 1924. The total net revenue of the year fnrm
all sources, exclusive of the Panama Railroad Steamship Line, was
$20,621,314.82, as compared. with $18,131,819.97 in 1927, $17,340,-
865.68 in 1926, $15,757,751.70 for 1925, and $18,254,459.06 in 1924.
The above is condensed in tabular form for the past three years
as follows:

1926 1927 1928

Net transit revenue......... ....................... $15,151,668.06 $15,611,093.80 $1S. 224,844.86
Net revenue on Panqma Canal business operations... 841,310.29 876,536.80 7:.i;,719. 43
Total net revenue, Panama Canal.-------------- I 992. 978. 35 16, 47,. P30. 60 l4.'jI. ..ti4 'I.
Net revenue on Panama Railroad business operations. 1, 347,887. 33 1, 644, 1S9. 37 i 61,, 7... 0
Combined net revenue- .......................- 17,340,865.68 18,131,819.97 1 20,621,314. 82

The canal, opened to traffic on August 15, 1914, was blocked by
slides at various times during the first few years, and with the rela-
tively light traffic of the first nine years did not return a net revenue
commensurate with its cost. Beginning with the fiscal year 1923
there was a distinct advance; the combined net revenue of the canal
an(d Panama Railroad for that year was $12,063,880.74, as compared
with $3,079,531.91 during the preceding year. The following year
1924, showed a further increase of something over 86,000,000
to be followed in 1925 with a decrease of approximately two and one-
half millions as compared with 1924 figures. Since 1925 the net
revenue for each year has been higher than for the year preceding,
and the figure of $20,621,314.82 for the fiscal year 1928 represents
the maximum yearly net revenue to date.
Investment in the canal is partly commercial, partly for national
defense. Arbitrarily the figure of $275,000,000 has been adopted as
representing the investment, in a commercial sense (exclusive of the
Panama Railroad Co.) and approximately $115,000,000, including
the $40,000,000 paid to the French, has been charged off as expendi-
ture for national defense. The annual interest on $275,000,000 at
3 per cent, the rate on most of the Panama Canal bonds, would be
$8,250,000; at 4 per cent it would be $11,000,000 at 5 per cent, $13,-
750,000. However, no interest charge is taken into account, although
there is a fixed annual charge of $350'000 for amortization of canal
fixed property having a lifeof 100 years and $640,000 covering deprecia-
tion at 2 per cent per annum on property having a life of less than





PE:PORT OF GOVERNOR OF THE PANAMA CANAL


100 years, which together with interest at 3 per cent per year will
provide for amortization of the investment, or replacement of all
items at the end of 100 years. In addition, the expenses jiclude a
further charge of approximately $750,000 per year for depreciationn
of canal equipment and plants. To June 30, 1928, the operating
expenses for the canal proper amounted to approximately $104,000,000
and the revenues to over $196,000,000, of which $193,018,936.71
was for tolls alone. In addition, the operating expenses of certain
auxiliary business units amounted to over $159,500,000 more, against
business revenues of $166,000,000. The excess of total earnings
over total expenses at the beginning of the fiscal year 1929 stood at
$98,915,439.82.
In the above, as stated previously, there is no consideration of inter-
est charge on the investment. At 3 per cent on $275,000,000 it
would have amounted to $115,500,000 for the 14-year period of
canal operation at simple interest and if compounded would be
considerably more. Against this the operating earnings, aggregated
to date, leave a deficit.

SERVICES RENDERED BY THE CANAL TO SHIPPING

The main items in the business of the canal and its adjuncts in the
past year, covering principal services to shipping, are expressed
numiiierically in the following table, with comparison with the two
years immediately preceding:


1926 1927 1928

Transits of the canal by ships paying tolls ------------.. 5, 197 5, 475 6, 456
Free transits ----------------------------- .-_-_-_ 552 597 503
Calls at canal ports by ships not transiting canal--------- 963 1,061 1, 123
Car-., handled at ports (tons). ---------------------- -. 1,089,244 1,150,807 1,300,119
'.0i, sales and issues (tons). ----------------------_ _--- 347, 619 372, 461 .40., 774
Coal-number of ships served other than vessels operated
by the Panama Canal --------.---------------------.. 902 907 964
Fuel oil pumped (barrels) ----------------------_..- _- 12, 562, 146 16,350, 399 15, 977, t48
Fuel oil-number of ships served other than vessels oper-
ated by the Panama Canal -------------------------. 2,064 2,874 2,678
Ships repaired, other than Panama Canal equipment---- 836 911 1,093
Ships dry-docked, other than Panama Canal equipment. 109 120 131
Provisions sold to ships (commissary sales)-------- $1, 174, 478. 46 $1,308,520.02 $1, 429, 6 47. 35
Chandlery sold to ships (storehouse sales) --------------- $109, 590.58 $134, 106.36 $149, 055.47












SECTION I


CANAL OPERATION AND TRADE VIA PANAMA
TRAFFIC IN 1928

Exceeding the previous record of traffic made in the fiscal year
1927, the traffic through the Panama Canal in the fiscal year ended
June 30, 1928, was greater than that in any preceding fiscal or calendar
year.
Six thousand four hundred and fifty-six commercial vessels made
the transit during 1928 as compared with 5,475 during the preceding
fiscal year. The average number of commercial transits per day was
17.63 during 1928 as compared with 15 for 1927. Transits of naval
and other public vessels of the United States, public vessels of the
Republics of Panaima and Colombia, and vessels transiting solely
for repairs, none of which paid tolls, numbered 503 Iduring 1928
as compared with 597 during 1927. Combining the two, there were
6,959 transits of seagoing vessels (Ilrinsg 192s as compared with
6,072 in 1927. The daily averages were 19 and 16.6, respectively.
The increase in total transit in 1928 with respect to the year before
was over 14 per cent.
The net tonnage of the 6,456 commercial transits in 1928 was
29,458,634 tons, Panama Canal measurement. Tolls levied amounted
to $26,944,499.77, and cargo carried through the canal aggregated
29,630,709 tons.
The majority of the leading trade routes through the canal showed
increases of traffic during the year. There was a slight decrease,
however, in the United States intercoastal trade. This was caused
principally by light shipments of mineral oils during the last six
months of the year. Slight decreases occurred also in the trade
between the United States and the Australasian area, and in that
between the west coast of Canada and the Atlantic coast of the
United States.
Nfineral oil continued to be the largest item of cargo through the
canal, although there was a decrease of over a million and one-half
tons as compared with the previous year. Other important items of
cargo such as wheat, lumber, and nitrates showed heavy increases
over the previous year.






REPORT OF GOVERNOR OF THE PANAMA CANAL


Traffic figures for each fiscal year since the canal was opened to
navigation are shown in the table below:


Fiscal year ending June 30-
1915 1---------------------
1916 2--...................................---
1917_- -- -- ------------------- -
1918 -------------------------------------
1919 -------- ----------------
1920 ----------------------------------
1921.--- -------------------------------
1922 ------ --------------
1923 __----------------------
1924.-.-----------------------------------
1925-- ._--------------------------------
1926----------------------------------------
1927-----------------------------------------
1928------- --------------------------------
Total-- ----------------


Num-
ber of
transits


1,075
758
1, 803
2,069
2, 024
2,478
2,892
2,736
3, 967
5, 230
4, 673
5,197
5,475
6,456


46, 833


Panama
Canal net
tonnage


3,792, 572
2,396, 162
5,798,557
6, 574,073
6, 124, 990
8, 546,044
11,415, 876
11,417,459
18,605, 786
26,148,878
22,855,151
24, 774, 591
26,227,815
29,458, 634


204, 136, 588


' Tolls


$4,367,550.19
2,408,089. 62
5,627,463,05
6,438,853.15
6,172,828.59
8,513,933. 15
11,276,889.91
11, 197,832.41
17, -50h. 414.85
24, 290, 963. 54
21, 400, 523. 51
22,931, 055.98
24, 228, 830. 11
26, 944,499. 77


193,307, 727. 83


1 Canal opened to traffic Aug. 15, 1914.
2 Canal closed to traffic approximately 7 months of fiscal year by slides.


The commercial traffic, while showing an increase of 981 vessels

over the fiscal year 1927, was fairly uniform throughout the year.
By months, the number of transits ranged between 481 in June and

589 in December, a difference of 108 vessels and of 2.97 in daily aver-
age transits. The monthly average of transits for the year was 538

and compared with 456 for the previous year, an increase of 82, or

18 per cent. Monthly transits and tolls, with daily averages, for
commercial vessels only, were as follows:


Month


Total for month


Transits Tolls


1927
July --------------------------------------------- 509
August-.--- --------------------------------- -------- 543
September _-.------- ---------- __--------------------__ 40
October------------------------------------------------ 567
November -----------------------------------
December ------.------------.. -- ------------- Y-
1928
January------------------------------------------ 540
February----------------------------------------- 547
March ---_. -------------------------------------- ---. 542
April...------------------------------------------- 531
May.--------------.------------------------------- 508
June----.-----.----.-----------.------------------- 481
Total ------------------------------------- 6, 456


$2,215,515. 99
2, 274,040. 55
2, 294. 432. 34
2, 30, 115. 97
2, 369,267. 99
2,398,459. 75

2,212,752. 50
2, 253, 755.37
2, 223, 370. 57
2, 187, 607. 82
2, 118,969.83
2,016,211.09
26, 944,499. 77


Daily averages


Transits Tolls


16.42
17. 52
18.00
18.29
18. 63
19.00

17.42
18.86
17.48
17.70
16. 38
16.03
17. 63


$71,358. 56
73,356.15
76,481. 0&
76, 777.95
78,975. 60
77,369.67

71, 379. 20
77, 715. 70
71,271. 6&
72, 914. 55
68,353.86
67,206.43
73, 618. 85


Tons of
cargo


4,888,454
3,094, 114
7, 058, 56&
7,532,031
6,916,621
9, 374, 499
11, 599,214
10, 5M-1. 910
19, 5;r7, 875
26, 494, 710
23, 958, 836.
26,037,448.
27, 748, 215
29, 630, 709


215,286, 199


I






fHEPOHT OF GOVERNOR OF THE PANAMA CANAL


Comparison by months with traffic in the preceding fiscal year is
shown as follows:


Nuniliber of
veseels
Month v -7_1S
1926-7 1927-8

Jully ............ 15. .
Mu* s ( ...... ... .. V-4 ..FU
SNvember. .... 4 ; .4 ii
(OioIlO r .. .. . H "' .
Novten r. . .... 42 '


l'.ii:inio I ';nirtIl nir
l un 19ag27-

1926t-7 1927-8


2.1.''t 2 W
2. 121. 19'
2. 124. '.19
2.3 nj4><


2. 1flt.. "-,
2. 1. 1. 4
2. :'32. 1142
2, 7 :.71,2
2,..17 1" ,


T1 1,I -


1926-7

2. .-I'. '27

2.,71.711
2 2. 21. 1 V


1927-8

2. .1*:.. 1 wk
2,.397. 7. 1
2'. 717. e41.
2. v'. *-2


1926-7

i. '. 2.719. 67
2. f .1W,, 041. 91 1
2^.A19.626.42
1, '*.i. 213.93
1. 1.4. 001. 11


1927-8


2,215., 515. 99
2.271.040.55
2'. -'4. 432. 34
2. .01'1. 115. 97
2 .-it.! 267. gg)


Deccmber .. 458 589 2, TO, 002 2, il 728 2. 1111. 270 2, -.7b3. 28 1 996.036. 72 2,M .(. 459.75
Iinuarv.. ..---- 443 540 2,121,631 2,42-1, 770 2. 41. 765 2,.'. 7,001 1, I,. 760.71 2. 12 752.50
FeIb'ruiiry ----- 449 547 2.201.328 2, 41', 111 2,230,107 2, 0. 425 1, 9ir4, 8C0. 82 2. .. (.755. 37
Murch .......... 496 542 2. 4 1.1. r9:I 2,441.077 1 2,533,525 2, 12-. 662 2,217,913.20 2,223,370.57
A prilr............ 4ti64 .'.l 2,224. .500 2. .14. 4 1 :.. 42y. .07 2, 47.. 884 2,14 .. 206.92 2, i 7. 107. 82
Ma'V............ 471 50x 2.2-Ky.S' 2. 274. 612 '. 79, 711 2,47. 588 2,066.070.73 2, 11 969. 83
June .............. 4 45 2. 17.2, 92r 2. 22;. '. 2. 22'.4, V'i7 2, 1;'3.. 565 1, .170, 377.97 2,016, 211. 09
Total. . ... .-, 4 7 26', 22 7, 1415. 29. 4.98, 6.34 27, 74r, 2 [5 2ti. e30. 70,.1 21. 22S.. S, II Y". *44, 4'i 7
io o I i I


PROPORTION OF TANKER TRAFFIC

On account of increased output, from oil fields which have their
access to the sea on the Atlantic coast of the Americas, tanker traffic
through the canal declined considerably during the fiscal year 1928.
It shows a decrease of about 15 per cent when compared with that
of 1927. Tanker transits totaled 1,121 as compared with 1,324 dur-
ing 1927, a decrease of 203. Tank ships comprised 17.3 per cent of
the total commercial transits during the year, made up 21.2 per cent
of the Panama Canal net tonnage, paid 20.1 per cent of the total
tolls collected, and carried 19.7 per cent of the cargo which pase(l
through the canal.
During' previous fiscal years increases or decreases in traffic have
been due largely to fluctuations in tanker traffic. The heavy increase
in 1928, however, over the preceding year is due entirely to gcrnerild
traffic. Transits of tank ships during 1928 decreased 203 as compared
with 1927 while transits of vessels engaged in general traffic incre:Ised
1,184, making a net increase of 981 in commercial transits. In
Panama Canal net tonnage the tank ships decreased 1,380,143 tons
while general cargo vessels increased 4,610,962, tons, a net increase
for all of 3,230,819 tons. Tolls collected from tank ships decri.ased
$1,222,369.74 while tolls collected from general cargo carriers in-
creased $3,938,039.40, making the net increase $2,715,669.66.
Omitting transits of public vessels of the United States and other
vessels exempt from the payment. of tolls, the number of ocean-
going vessels transiting the canal daily averaged 17.6 throughout.
the year. Of this number tank ships averaged three transit daily,
the balance of 14.6 being made up of general cargo carriers, passenj'Tlgr
ships, warships of foreign nations, etc.
1352.s-H Doe. 347. 70-2-2


Towls -f l g]l







1U REIDPOT OF GOVERNOR OF THE PANA.MA CANAL


In the tables below\ the commercial traffic has been segregated to

show the proportion of tanker transits, tonnage, and tolls as compared

with corresponding figures embracing all other classes of traffic.

The figures are for the fiscal years 1923 to 1928, inclusive, covering

the era of the growth and decline of tanker traffic:


Proportion of tank ships to total tru.fiir


Year


1923.-------------------------- ----
1924 ------- -----------
1925 --------- .------ --
1926-------------------------------------
1926 .
1927. ---- --------- -
1928:
July --- ----------
I.- il hr. ...... ------------------
October ------- --------------
November ---------------------------
December -----------
January ------------ ------------
I ri r ------------------------
March -- ----------

May -----------------------------
June ---------------------------------

Total, 1928-- ---------------------


Total commercial transits


Tankers General


913
1,704
1,079
1,090
1.324

116
116
131
105
96
100
87
68
66
73
73
90

1, 121


3,054
3,526
3,594
4,107
4,151

393
427
409
462
463
489
453
479
476
458
435
391

5,335


Total


3,967
5,230
4.673
5,197
5,475
509
543
540
567
559
589
540
R47
542
531
508
481

6,456


Average lhiily transits


Tankers


2.5
4.6
2.9
3.0
3.6

3.7
3.7
4.4
3.4
3.2
3.3
2.8
2.;
2.1
2.4
2.4
.O0

3.0


General


8.3
9.6
9.8
11.2
11.4

12.7
13.8
13.6
15.0
15.4
15.8
14.6
17.1
15.3
15.3
14.0
13.0

14.6


Proportion of tanker tonnage to total tonnage


Panama Canal net tonnage


Tankers


5,374, 384
10,212,047
6,424,622
6,324,240
7,624, 112
6,243,969


General Total


13, 231,402
15,936,831
16,4 1;i, -
18,4 I1, ".'-
18,603,703
23,214,665


18,605,786
26, 148, 878
22,855,151
24,774,591
26, 227, 815
29', .'., 634


I'er.ii-n .11.' of total net tonnage


TI nki r- General


28.9 71.1
39.1 60.9
28.1 71.9
25.5 74.5
29.1 70.9
21.2 78.8


Proportion of tolls from tank ships to total tolls from all vessels


Fi.- iI year


1923 ---------------
1924-_.--------------
1925 --------
1926--------------
1927----.........---...-..
1928. -----------------.


Tolls paid by shipping using canal


Tankers


$4, 769. 321.63
9, (07 1,:.. 65
5,728,302.26
5,1 .2Y. 167.93
6, 658, 806. 90
5,436,437.16 1


General


$12,738,874.94
15,219,127.89
15,672,221.25
17,304,888.05
17, 570,023.21
21. A 1.062.61


Total


$17, 508, 199.57
24, 290,963.54
21,4C0. 923.51
22.93:1, i5s. 98
21. 229. 830. 11
26,944,499.77


Percentage of total tolls


Tankers


27.2
37.3
26.8
24.4
27.5
20. 1


General


Tear I1


10.8
14.2
12.8
14.2
15.0

16.4
17.5
18.0
18.4
18.6
19.1
17.4
19.4
17.4
17.7
16.4
16.0

17.6


Fiscal year


1923 ---- --- --------------- -------

19254-----------
1925-------------------------------
1926 ---------------------
1927- ----------------------
1928 ----------.-------------


Total


100
100
100
100
100
100


Total


100
100
100
100
100
100





HI-EP(iT (OF GOVERNOR OF THE PANA.\. CANAL


TANKER CARGOES

Cargo carried through the cmanad in tank ships decreased from
7,250,579 tons in 1927 to 5,829,722 tons in 1928, or 1,420,857 tons.
Of the 5,829,722 tons, 5,611,644 tons were shipped from Pilific to
Atlantic ports and 218,078 ton-. from Atlantic to Pacific. Ship-
ments of both Californian and Peruvian oil were considerably less
during the fiscal year 1928 than during 1927. Of the aggregate ship-
ments of mineral oils through the canal during the year 4,27:3,726
tons originated at the port of Los Angeles.
The foregoing figures for tanker cargoes do not comprise all min-
eral oil shipments passing through the canal, as considerable quanti-
ties of refined oil in cases are carried through in general cargo carriers.
NATIONALITY OF VE.sSELS

Twenty-three flags were represented in the commercial traffic p ing through the canal during the fiscal year 1928. In number of
transit vessels carrying the flag of the United States increased
slightly (68), but with respect to tonnage, tolls paid, and cargo
carried the United States vessels showed slight decrea--es. This is
attributed to the (decrea-s in transit of tankers, which are usually
larger than the general cargo carriers.
Transits of British vessels showed a marked increase, from 1,351
in the fiscal year 1927 to 1,842 in 1928, a gain of 491 transit, or over
36 per cent. They comprised 281/2 per cent of the transits, as com-
pared with 24Y2 per cent in 1927. This was largely due to the
large number of vessels of this nationality being routed through the
canal for the carriage of heavy hipmients of wheat from western
North America to Europe.
German traffic through the canal made the greatest relative gain
during the past year, increasing from 212 transits in 1927 to 316 in
1928, a gain of 104, or almost 50 per cent. German vessels took
third place in number of transits in 1928, exchanging places in this
respect with the Norwegian vessels, which were third in 1927 and
fourth in 1928. Two of the large German companies have aug-
miented their tonnage on lines passing through the canal, and there
are prospects of handling an increasingly large number of German
vessels. Norwegian vessels continue in third place with respect to
net tonnage, tolls, and cargo.
As in former years, vessels of the United States and Great Britain
made up the greater part of the traffic; in 1928 about 75 per cent of
the total. The nationalities next in order in transits were Ceiman
and Norwegian, each with slightly less that 5 per cent.
With respect to caigo carried through the canal, vessels of United
States registry- carried approximately 48 per cent of the total; British





12 REPORT OF GOVERNOR OF THE PANAMA CANAL

vessels, 27% per cent; Norwegian vessels, 4%4 per cent; German
vessels, 4 per cent; Swedish vessels, 2Y2 per cent; Dutch vessels,
214 per cent; and French vessels, 2 per cent. Combined, the ves-
sels of these seven countries carried over 90 per cent of all cargo that
prz;,ed through the canal during the past fiscal year.
As compared with the fiscal year 1927 cargo carried under the
United States flag was less by nearly 1,000,000 tons, or 6Y2 per cent,
while that carried under the British flag, the nearest competitor,
increased by approximately 1,600,000 tons, or 25 per cent. The
decrease in cargo tonnage under the United States flag is due pri-
marily to decreased shipments of mineral oils through the canal, a
gre at proportion of which has been in United States vessels. Ship-
ments from the port of Los Angeles alone declined over one and a
quarter million tons.
The following tabulation shows the cargo tonnage carried under
the flags of the leading maritime nations contributing to canal traffic
during the past five years:
Tons of cargo carried

1924 1925 1926 1927 1928

United States ------------------------- 16,654,435 13,080,200 13,7111.956 15,242,156 14, 248, 735
British ------------------------------ 6, 051, 842 5,917,058 6, ;50, 843 6, 436, 785 8, 1n.-. 022
Norwegian-------.----------------------539, 101 842,708 1,051,276 1,052,453 1,268, 124
German------------------------------- 737, 103 830,512 885,007 973,741 1,185,421
Japanese------------------------------- ..,425 946,916 667, 982 1, 036,785 1,041,166
Swedish ------------------------------- 2211. 517 282,447 636,266 1 652,173 205, 154
Dutch -- ----------- 573,929 619,017 552,741 571,700 637,178
French ------------------------------- 407,249 481, 526 398,393 530,026 600,421
Remaining combined----. -------------- 875, 109 958, 452 1,380,984 1, 252, 396 1,869,488
Total---------------------------- 26,994,710 23,958,836 26,037,448 27,748,215 29,630,709

A greater volume of cargo passed through the canal during the
fiscal year 1928 than during any other calendar or fiscal year in its
history. Cargo carried under each flag, with the exception of that
of United States, also showed substantial increases. With respect
to cargo carried in United States bottoms, if mineral oils be elimi-
nated from the comparison, other cargo would show increases equal-
ing that under other flags. The volume of general cargo carried in
United States vessels, particularly in United States intercoastal
traffic, has been increasing from year to year.







REPORT OF GOVERNOR OF THE PANAMA CANAL


Complete statistics for all flags contributing to the 1928 traffic

through the canal appear in the following table:

Commercial traffic through the Panama .Canal, fiscal year 1928, by nationality of
vessels


Nationality



Belgian............
British ..........
C hilean.............
Colombian.........
Costa Rican ......
Danish---......---.
Danzig.............
Dutch..-----------..........
Ecuadorian -------.
Finnish.--......---..
French............
German..........
Greek..............
Honduran..........
Italian ------........
Japanese-........---
Norwegian.........
Panaman...........
Peruvian...........1
Spanish............
Swedish.........
United States------I
Yugoslav..---......
Total:
1928..----------
1927_----------
1926............


Trans-
its


13
1,842
32
99
2
69
29
137
1
3
127
316
12
1
118
188
313
138
53
46
111
2,753
53

F, 456f
5, 47T
.5, 197


U. S.
equiva-
lent net
tonnage


52,124
6, 853, 922
93,730
34,349
138
222, 169
153,077
456,701
302
8,163
459,996
725,308
35,212
1,042
487,651
801,093
897,107
54,682
87,373
130, 253
350,265
10,786,487
172, 652

22, 3, S3.89i
20, p.65, 596
1'. 4.72, 824


Panama
Canal
net
tonnage

61,293
8,976,960
124.959
39,162
138
285,396
190,947
644,390
307
8,128
580,769
995,629
46,040
991
580,721
909, 232
1,181,189
82,650
140,323
157,465
480,006
13, 7.52. 957
21S. 982

2, 4'7,1. 634
26, 227, '1I5
'2 4. 77 4. F.,,41


Regis- Regis-
tered tered
gross net
tonnage tonnage

82,146 49,168
11,087,242 6,.)53.80)
194,625 10,5. :43
56,246 35, 10'.
246 144
339.196 217,474
251,758 142,955
754,684 453,650
405 308
8. 566 6, 212
72's,437 449,915
1, I5.Sl I 712,360
53,609 32,947
1.636 940
766, 55' 469,077
1,1.58,651 778,657
1,439,718 883,519
106,998 66i. 34F
205, 166 111,912
212,655 132,810
918,263 423,677
17, 377580 10,749,252
272,599 171,872


.37, 202. i74
33, 35i. sI 7
31.672, t18 S


22 4". 67.i9
2'), 6lIM. 253
1i. 54k.'",


VESSELS ENTITLED TO FREE TRANSIT AND LAUNCHES OF LESS THAN
20 TONS NET MEASUREMENT


Naval and other vessels owned and operated in the Government

service of the United States, Panama, and Colombia, and vessels
transiting the canal solely for repair at the Balboa shops, are exempt

from the payment of tolls, and such vessels are not included in the
transit statistics in the preceding sections. They accounted for the

following additional transits in the fiscal year 1928: Public vessels of
the United States, 450; public vessels of Panama, 10; public vessels

of Colombia, 6; vessels transiting for repairs, 37; or a total of 503.
These vessels carried a total of 232,672 tons of cargo.


Tolls



$57, 407. 25
8,73a, 815. 68
118.,862.95
41,194.42
103. 50
271,851. 95
163,504.90
561,044.93
368.40
8,922. 60
576,627.46
892,511.39
40,233.42
1,189. 20
567,807.85
949,424. 69
1,052,127. 36
64,370.53
107,576. 65
151,375.32
396,908. 28
12,645,880. 20
201,390.84

2., 94, 499. 77
24. 2.N, 8310. 11
22.9.1,) 4l9l "


Cargo
(long tons)


67,411
8,075,022
81,678
33,909

380, 240
154, 597
637,178
500
9,544
600,421
1,185,421
66,554
552
498,807
1,041,166
1, 268, 124
65, 559
96,175
104,606
705,154
14, 248,735
3011. 3;,1;

29, 6.30, 7I.J
27. 748. 210
26. (137.44S


I





I:II'ORT OF GOVERNOR OF THE PANAMA.I. CANAL


If charges at commercial rates had been made against the 450
public ve-ssel of the United States that transited the canal without
payment of tolls, the revenue from tolls would have been increased
by approximately $889,350.54 during the year. Tolls on the 1V
Panaman and 6 Colombian Governminent vessels would have amounted
to approximately $46,149.43.
Launches of less than 20 tons net rmeasuirtiement are also excluded
from the statistics of connmerchiil traffic, although they are not exempt
from the payment of tolls. The nliumber of these transiting the canal
during the year was 155, and tolls aggregating $1,109.34 were col-
lected for their passage.

TRADE ROUTES AND CARGO

As in former years, either the east or west coast of North America
is the origin or destination of the larger portion of cargo passing
through the canal. The proportion of traffic in which North America
was either origin or destination, or both, was less in 1928, how-ever,
than in 1927.
In the Atlantic-to-Pacific traffic approximately 66 per cent of the
total cargo through the canal during the year originated on the east
coast of North America and about 43.5 per cent was destined to the
west coast of North America. In the Pacific-to-Atlantic traffic the
percentages are a little greater, as about 66 per cent of the total
cargo originated on the west coast of North America and approxi-
mately 56 per cent was destined to the east coast.
Notwithstanding a decrease of some one and one-half million tons
of mineral oils from the southern California fields, the volume of
cargo movement between the principal trade areas served by the canal
was as great or greater than during the preceding fiscal year. Two
outstanding featu res of the cargo movement during the year are a
decrease in United States intercoastal cargo of some 500,000 tons, due
to the decline in mineral oil shipments and the heavy increase in nitrate
shipments from the west coast of South America, which were more
than double those during the preceding year. Shipments to and from
the west coast of South America increased over the preceding year by
nearly one and one-half million tons.
In the following table the volume of cargo tonnage moving over
10 of the principal trade routes is shown for the past four years.
Approximately 84 per cent of the total cargo routed through the canal
during the past year passed over these routes.







I:EPORT OF GOV'EHlNOI; OF THE PANAMA CANAL 15


Cargo shipments through the Panama Canal during the past four fiscal iri ri,
rcgreinliatidl by principal trade routes


Tons of cargo
Trade routes --- --
1925 1921; 1927 1928


United States, intercoastal:
Atlantic to Pacific-..-.------------------------- 2,213, 603 2, 435,748 2, t. 786 7 2, 401, 872
Pacific to Atlantic -------....- -------------- 7,282, 656 7, 633, 856 7,.11. 719 7, f>15,,?20
Total----------------. --------------------- 9,496,259 10,069,604 10,560,50o.5 l.067,392
Eiurnpyi in west coast Canada:
SI.in i to Pacific ------------------------------ 361. 792 377,446 559,138 .74.969
Pacific to Atlantic-..-.--.----------------------1, 11i, 277 1,.1.663 1,901,702 3, 093, 937
Total--.--..--..----------------------------- 1,771,069 2, 1Y'.109 2,460,840 3,668,906
East 'coast United States to west coast South
America:
Atlantic to Pacific ------------------------- 377, 864 423,730 412, 835) 377, 968
Pacific to Atlantic----------------------------- 2, .;1.756 2,--i 346 2,518, 11 2, "i. 510
Total_ ------------.----------------------- .. i..',1 2111.1171i. 2 -31. 44'. 3. 21. '.l
Fiinope In west coast South America:
\Ilan ici to Pacific -------------------------- 776,388 783,007 623,030 787,214
Pacific to Atlantic------------------------------- 1,708,626 1,612, 733 1,326,573 2, 1 251
Total .----.-----.- .- ------------------ 2, 4 '.. i1 4 ." '.. 11'1 2.. ' ..4*.".
Euirni|pe i" west coast United States:
I:,nlic to Parih ... 334,761 3124.540 ]'.,105 3.404
Pacific to Atlantic ----- ---.--------------------- 1, 157, 556 1,3:31,662 , 2,'i7.682
T .................. .... . ... . . . ... 1,492,317 1,656,202 2,020,360 2,344,086

East coast United States to Far East:
Atlantic to Pacific. ---- ------ -- ----- 1. 234. 6 1. 421. 214 1, .71;. .1I 1, .":.2. 112
Pacific to Atlantic --.--- ----------- 6,A .3., :i1 40, 3.1. 704, 16.3
Total ----------------------------------- 1, .. 77 1,755,048 1,983,464 2,066,275
Europe to Australasia:
Slan tic to Pacific---------------------------- 518,406 543,825 53Q. 792 595, 985
Pacific to Atlantic--------------------------- 420,356 :. 871 44-.1, 425 554, 678
Total ---------------------------------.--.------.- ..1001'. 1.013.217 1. 51), 6 .1
East. coast United States to west coast Canada:
Atlantic to Pacific- ---.---------------.----- 178,110 199, 175 2.7. '' 216,943
Pacific to Atlantic---------------------------- 501,623 651,969 6S. 959 514, 233
Total-----......... -----.........------------- 679.733 .l -1 926. 731. 176
United States to Australasia:
Atlantic to Piaufic . . A.3, .19 727, 406 795, 161 5..s. S.1
Pacific to Atlantic-- -------------------------- 28, 195 33,087 33,758 57.,927
Total_ .-----.------------------------------ 1. 4 7f.0, 4913 '2.4. 9 1. I.MO
Cristobal to west coast United States:
Atlantic to Pacific----.. ------------------------- 33,877 26,251 40.484 34,836
Pacific to Atlantic----------------------------- ,. 372 200,129 411i. 811 314.217
Total--- ----.--..---------------------------- 93,249 226,380 497,295 341.053
Miscellaneous routes and sailings:
Atlantic to lPaific............................... 705,369 774,755 930,150 '20,948
I'acific to Atlantic..--...-----.------------------ 1,064,753 1, 14. 201 1,624,762 1, 457
Total.............. ................... ... 1,770,122 1,922,956 2, ."..712 2,490,405

Total traffic, all routes:
Atlantic to Pacific................ ......... 7,398,397 8,037,097 R. ;1. 327 31i0, 134
Pacific to Atlantic----...--------------.--.-------- 16,560,439 18,000,351 1.. It]. 888 21.1320,575
Total. ............... ......................... 23,958,836 26,037,448 27 ,748,215 2'1.630,709






16 REPORT OF GOVERNOR OF THE PANAMA CANAL

PRINCIPAL COMMODITIES

Complete manifests of cargo carried by vessels transiting are not
required at the canal, but the masters are required to submit briefly
itemized statements showing the principal items of cargo and their
points of origin and destination. These statements, known as cargo
declarations, are the basis of the commodity statistics. Except for
commodities commonly carried in bulk, actual shipments are likely
to be in excess of the aggregate tonnage reported, as smaller items
which can not be segregated readily are bulked under the head of
"General cargo" that should be segregated. In some cases no other
report than "General cargo" is made for entire cargoes carried by
vessels. Subject to errors arising from this source, the tonnage of the
principal commodities shipped through the canal during the past
four fiscal years has been as follows:

Commodity movement
ATLANTIC TO PACIFIC

Fiscal year ended June 30-
Commodity
1928 1927 1926 1925

Manufactures of iron and steel -------------------- 1,855, 532 1,971,964 1,525, 280 1,416,135
Mineral oils----------------------------------- 717,080 649,379 721,817 948,451
Cement--------------------------------------- 280,032 222,817 283,328 359,831
Cotton------------ ---------------------------- 259, 225 361, 241 226,092 145, 604
Machinery..------------------------------------- 215,334 172,150 134,411 133,024
Sulphur....................--------------------------------------- 207,257 211,625 188,889 165,925
Phosphates ------------------------------------ 198,826 183,521 162,254 67,206
Railroad materials------------------------------- 188, 561 189,858 150,993 138, 740
Paper---------------..-------------------------- 183,263 150,722 101,493 101,827
Coal----------------------------------------- 161,610 96,772 222,288 159,231
Tin plate-------------------------------------- 143,610 194,111 202,773 145,188
Textiles--- ----------------------------------- 124, 658 91,967 78, 770 94, 132
Automobiles (exclusive of accessories)------------_-- 124, 553 127, 882 125,820 124, 972
Ammonia------------------------------------- 91,776 134,977 108,104 88,199
Coke ---- ------------------------------------ 91,130 89,750 93,344 96,114
Slag ------------------------------------------- 84,797 30,064 55,458 27,053
Asphalt -- ---- --------------------------------- 82,350 60, 586 43,458 34,978
Tobacco------------ -- -------------------------- 78,943 81,457 65,174 68,472
Coffee---------------------------------------- 69, 135 54,018 39,356 32,345
Glass and glassware--------------------- ---------- 61,434 53, 119 44,363 24,826
Agricultural implements --------------------------- 60,895 52,438 38,976 40, 223
Creosote.-------- -------------------------------- 55,682 38,911 38,018 43,940
Chemicals----------------- -----.---------------- 52,493 48,479 41,015 22,317
Automobile accessories---------------------------- 49,052 53,064 46,132 39,642
Sugar--. .. ..---------------------------------------- 44,951 282,912 158,997 91,461
Iron (metal) ------ ---------------------- --------- 40,109 60,216 47,490 51,867
All other.--- -------------------------------- 2,787,846 2,919,327 3,093, 004 2,736,694
Total..--------....----------..----------------- 8,310,134 8,583,327 8,037,097 7,398,397






REPORT OF GOVERNOR OF THE PANAMA CANAL


Commodity movement-Continued

PACIFIC TO ATLANTIC


Fiscal year ended June 30-


1928


M ineral oils........................................
Lumber.. o. -----. ---..----------------------
W heat ..................... .........................
Nitrate...........................................
Iron ore-------------------------------------------.
Sugar.---------------.------------------
Copper (metal) .............................
Copper (metal)-------------------------------------
C anned fruit ................................... ....
Food products in cold storage I'................ ...
D ried fruit..........---................................
Barley ... .................................
Canned fish..... .................... ............. .
W ool...............................................
C offee........... .... .... ......... .................
Beans...................................... ........
Flour..... .......... ....... ............ .... ........ ....
Cotton----------------------- ---------------
Fresh Fruit-.----.------------- ------
Borax---.----.---- --------------------------
Lead (metal) --- - --------------
Copra.................. ................ .. .......
Skins and bides... ...........................
Oats -----.------.......................
Canned vegetables-. ---------------- ------
Tin (ore) -.---------------
Copper (ore).................. ....... ..................
R ice...............................................
A ll oilier............................................


5, r.l'. 076
3, G73. 832
3, 035. 94M
2, 5r5. 572
1, 400, -190
577, 781
443,381
434,424
288,952
272,644
237,262
178,245
167,931
132.862
127,168
112,191
95, 724
93,457
86,933
85,953
83,143
73, 587
64, 388
63,099
.7, 371
5,,593
47,756
1.244_.47I.


1927 1 1926


7,143.165
3,139, 113
1,477,376
1, 174,3)1
1,103,737
427, 035
357,456
403,270
245,520
200,433
344,341
209,491
129,906
113,313
.71,569
90,988
107,311
97,969
56,091
84.077
-1.685
58.976
73, 515
60,982
57,092
62,436
71,870
1,419,787


5,930,716
3,200,311
1,187,384
1,87, 050
1,334.408
31), 032
:119,045
356,609
221,068
150, 2-29
313, 535
10;, 701
14',.0!42
104,7.W ,
54,565
64,391
65, 850
63,495
51,951
79, 734
7,, 223
4,S 479
41,084
28,908
51,325
79,104
20,664
1,645,659


Total---------------------------------- 21, --0 575 19, 14,s88 18, 000, 351


I Does not include fresh fruit.


Total cargo passing through the canal from the Atlantic to the
Pacific during the year shows a decrease of 273,193 tons as compared
with the fiscal year 1927. Of the 13 commodities shown in the fore-
going tabulation as having a total of 100,000 tons or more through the
canal during the year, manufactures of iron and steel, cotton, and
tin plate show decreases as compared with 1927. Totals for the other
10 were as great or greater than during the preceding fiscal year.
The Pacific-to-Atlantic cargo movement during 1928 was larger
than during the year preceding by 2,155,687 tons. Since shipments of
mineral oils in this direction through the canal declined as compared
with the year preceding approximately one and one-half million tons,
this means an increase in other commodities of over 3,600,000 tons.
Most, of the major commodities through the canal from the Pacific
to the Atlantic during the year show substantial increases, shipments
of nitrates and wheat being more than double those during the year
preceding.

CLASSIFICATION OF VESSELS

Of the 6,456 commercial vessels transiting the canal during the fiscal
year, 5,477 were steamers, 890 were motor ships, 70 were motor schoon-


1925

5,989,622
2, 255. 421
1,078,844
2,155,814
1, 045, 383
300,465
211,168
255,60S
202, 781
135,832
236,115
165,071
91,586
81,881
101,218
82,402
75,358
45,376
50, 428
76. 313
.9), 125
46, S75
37, s7.'.
27,391
27, y5.5
100,289
49,315
1,543,818
16, 560, 439


Coimmiod"ilt y





18 REPORT OF GOVERNOR OF THE PANAMA CANAL

ers, and the remaining 19 were sailing ships, barges, etc. For the past
four years the proportion of each class has been as follows:

1925 1926 1927 1928

Per cent Per cent Per cent Per cent
Steamers----------------------------------------------- 92.0 89.2 85.3 84.8
Motor ships--------------------------------------------- 6.0 8.5 11.9 13.8
Motor schooners--- ---------------------------------------- 1.1 1.2 1.5 1.1
Miscellaneous--------------------------------------------- .9 1.1 1.3 .3
Total------------------------------. ----------- 100.0 100.0 100.0 100.0

As will be noted in the above table, the number of motor ships
through the canal has been increasing from year to year. The actual
number of transits for the past four years has been as follows:
Fiscal year 1925, 282; 1926, 443; 1927, 654; 1928, 890.
Of the 5,477 steamers transiting the canal during the past fiscal
year 3,496 burned oil, 1,957 burned coal, and 24 were reported as
fitted for either fuel. For the past four fiscal years the proportion of
each class has been as follows:

1925 1926 1927 1928

Per cent Per cent Per cent Per cent
Oil burning.--------------------------------------------- 69.4 66.2 70.8 63.8
Coal-burning----------------- --------------------------- 30.1 33.2 28.3 35.7
Either oil or coal------------------------------------------ .5 .6 .9 .5
Total -------------------------------- ---------- 100.0 100.0 100.0 100.0

DETAILS OF THE TRADE

Further particulars of the traffic are presented in Section V of this
report in Tables Nos. 58, 59, and 60.

DUAL MEASUREMENT SYSTEM

Under the present law, tolls on commercial v(sels using the canal
are levied at $1.20 per net ton on laden ships and $0.72 on vessels in
ballast on the basis of tonnage determined by the Panama Canal rules
of measurement, with the proviso that the amount collectible shall
not exceed $1.25 per net ton or be less than $0.75 per net ton as deter-
mined under the rules for registry in the United States. This requires
that tonnage be d4terlined and tolls reckoned on two bases, and as
the United States rules of measurement are considered somewhat
arbitrary and are subject to changes, the dual system results in con-
fusion and annoyance. Occasionally on small vessels, such as tugs,
the United Statres rules indicate a negative net tonnage, and such ves-
sels make the transit without payment of tolls.
The canal adininistration has advocated consistently the adoption
of the Panama Canal rules only as the basis of tolls, and in recent years






REPORT OF GOVERNOR OF THE PANAMA CANAL


has suggested that if they be adopted the rates of tolls should be set
at $1 per net ton for laden ships and $0.60 for ships in ballast, which
would return approximately the same revenue as is collectible now.
This plan has met opposition from operators of United States general
cargo vessels for the reason that it would result in a slight increase
in the charges against this type of vessel. For the past fiscal year the
adoption of the canal plan would have increased the total tolls a little
over 1 percent; the additional collections would have been $300,973.23
as compared with the actual collection of $26,944,499.77. For all
United States vessels together it would have meant an increase of
$16,498.40. The following table shows the distribution of increases
or decreases among the vessels of the different nations using the canal
during the year:


Nationalit%


Belgian-----....--. --------------
British .........................-----------
C h ilea n ... ......... .... .. . ..
Colombian.-----__.. _-----------.--------
Costa Rican ----------.-----. ------------
Danish-.....___--_-__-----..---.__------
Danzig- --.--------------..------------.
Dutch -.. .-..-- .._..---.--.....-- ------
Ecuadorean-------------------------------
Finnish ----- --------. -----..--
Freneh------------------------------------
German . ---------------------
G reek...................... ..............
Honduiran ........... . ...... .......
Italian----....-.-..---.-----. --------.-----
Japanese-----------------------------------I
Norwegian ------------ -------..-------.--
Panaman- --------...-..-.----.------
P ern v iain ................ ... ... .. . ..
Spanish---..-..-- -...-....-.--...-...-.......
Sw edi-h ... ...................... ... ...
United States---.--------------------------
Yugoiaeian ............................. .
TYugoslavian..................... . .

Total dirTerence, increase of ------------ -


Tolls actually
collected under
present dual
system


Tolls that
would have
been collected
under proposed
rates of $1
laden and 60
cents ballast
on basis of
Panama Canal
net tonnage


Difference


Increase


Decrease


$57,407.25 1 $53, 173.00 .--...-------- $4,234.25
8, 071. 15. 68 8, 222,780.90 21 4 965. 22 ...
I., '2.95 126,748.50 7,885.55 -----------
41, 194.42 37, 990. 40 -------------- 3,204.02
103.50 82.80 .. 20.70
271,851.95 272,442.80 1m-) ....----
163,504.90 149,479.00 .----.------- 14,025.90
561,044.93 631,772.40 70, 727. 47 ----------
368. 40 307.00 .------------- 61.40
8,922.60 7, 394.00 .------------. 1,528.60
'76. 627. 46 :1.267. 10 4,639.64 ------------
92. 511. 39 Q'(j. 744. 60 87, 233.21 ----------
40,233.42 41,318.00 1.084.5 ........ .
1,189.20 991.00 ...... .. .. i%. 2
567, 807. 85 544,398. 20 23, 409.. 1i
949,424.69 877,846.50 --..-.--.------ 71,578.19
1,052,127.36 1,074,327.80 22, 200.44 ------
64, 370. 53 79. 292.00 13, 921.47 -------
111. 576.65 3:'., 663.80 32,087. 15
151,375.32 144,393.00 -----------------,2 2
396,908.28 '.808.40 21,900.12 -----------
12, 645, 880. 20 12, fr;. 378. 60 I 498.40
201,390.84 ', 873.20 -------------- I, '. i
2 91 \. '. 77 27. 24-1. Is.. 0' 427. 7:14. 11 i 1 ., 7o.uj N7


:310iii. 973. 23


HOURS OF OPERATION


The system of dispatching vessels through the canal on a schedule
was followed for several years without noteworthy change until
December 15, 1927, when a modificattion known as the "partial-transit
plan was adopted. Under this plan some vessels begin transit late
in the day of arrival and complete it the following day. Vessels for
partial transit may be started each day from each enu of the canal
after the vessels for through transit are all under way. Those from


'---~


--------------------------------





T:EPOI;T OF GOVERNOR OF THE PANAMA CANAL


the Atlantic anchor in Gatiun Lake for the night and those from the
Pacific tie up at the upper approach wall of Pedro Miguel Locks and
continue their transit the following morning. The plan has been suc-
cessful. It not only enables ships arriving late to pass part way
tlirough the canal that day and make an earlier clearance the next
day, but it also benefits ships arriving the following day because the
ships handled by partial transit would otherwise have had the first
places in the traffic of the second day.
In addition to the partial-transit system, hours of operation for
through transit, on day of arrival were extended somewhat. The
present arrangements may be summarized:
Beginning in the morning, for vessels at the Atlantic entrance
awaiting transit, the first two are dispatched so as to reach Gatun
Locks at about 7.05 and 7.15 a. m., respectively. Subsequent dis-
patches are made at an average of about two per hour until traffic is
disposed of, with the limit on late dlispa tches that a vessel for through
transit must be able to clear Pedro Miguel Locks by 9 p. m., which
means, for the average vessel, reaching Gatun Locks not later than
3.55 p. m. From the Pacific, the ship on No. 1 schedule is dispatched
so as to reach Miraflores Locks at 7 a. m. Subsequent dispatches
are made at approximately 30-minute intervals until traffic is dis-
posed of, except that no vessel is dispatched for through transit
unless she can reach Gatun Locks by 10 p. m., which means, for the
average vessel, reaching Miraflores Locks by 5 p. m. Later vessels
may be given partial transit.
The present schedules for dispatching vessels through the canal
require the daily operation of the locks as follows: Gatun, 7 a. m. to
11 p. m.; Pedro Miguel, 7 a. m. to 9 p. m.; Miraflores, 6.50 a. m. to
10.30 p. in.
In October, 1927, a letter was received from one of the principal
steamship lines using the canal requesting several changes in canal
operations, one of which was the extension of daylight operating
hours. Following the adoption of the partial-transit plan outlined
above no further communications on the subject were received. It
is thought that the present volume of traffic does not justify continu-
ous operation and that it is inadvisable to adopt 24-hour or exten-
sive night operation before such time as the volume of traffic may
practically compel it. Such operation would not only involve greater
expense and increase the difficulties of maintenance of locks and
channel, but it is objectionable from the shipmasters' point of view
on account of the hazards of navigation in restricted channels under
conditions of darkness, made worse by rains and fogs. Fogs. over
the cut and lake usually fall before midnight and are dissipated by
8 o'clock in the morning.





REPORT OF GOVEIRNOI OF THE PANAMA CANAL


LOCKAGES AND LOOK MAINTENANCE

LOCKAGES

The average number of lockages per day was 17.25 at Gatun Locks,
18.15 at Pedro Miguel, and 17.97 at Miraflores. The total number
of lockages at all locks was 19,533, as compared with 16,941 during
the fiscal year 1927 and 15,970 during the fiscal year 1926. The
increase in the past year wois 2,592, or 15.3 per cent.

HOURS OF OPERATION

At Gatun Locks during the earlier part of the year two shifts were
on duty from 7 a. m. to 3 p. m. and one shift from 3 to 11 p. m. For
12 days during the year two shifts were on duty from 3 to 11 p. m
on account of heavy traffic, and.effective November 14, 1927, pro.
vision was made for two crews from 7 a. m. to 11 p. m. m. regulaTly.
At Miraflores the hours of operation were from 6.50 a. m. to 10.30
p. nm. and at Pedro Miguel from 7.30 a. m. to 9 p. m., with overlapping
shifts to make possible double lockages between 9.20 a. m. and 5.20
p. m. at Miraflores and 9.30 a. m. to 5.30 p. m. at Pedro Miguel.
The December traffic of 592 commercial vessels (not including 10
small launches) and 563 lockages at Gatun Locks constituted a record
month.
The passage of the United States Navy airplane carriers Sarcitoga,
875 feet long by 107 feet in breadth, and Lx7intlon, S74 feet long by
107 feet in breadth, in February and March, respectively, constituted
new records for size of ships through the canal. As the lock chamber;
are 110 feet wide, there was a clearance of but 112 feet on each side
during the lockage of these two vessels. The passage of these vessels
through the locks, though of necessity slower than for smaller ships,
was accomplished without special incident other than the demolishing
of five lamp-posts at Gatun and one at Pedro Miguel by the bow
overhang of the Lexington and the wrecking of a handrail as she was
leaving Pedro Miguel Locks.
At Gatun Locks the total delay to 38 vessels due to minor troubles
of operation was 4 hours and 16 minutes, or an average of a little
less than 7 minutes per vessel.






REPOr(lT OF GON'VERNOR OF THE PANAMA CANAL


Loikages during the year are summarized in the following table:


Gatun Pedro Mi guel Miraflores Total

Lock- Ves- Lock- Ves- Lock- Ves- Lock- Vs-
ages sels ages sels ages sels ages sels

1927
July-------------............................... ---------------503 598 531 628 527 634 1,561 1, 860
August -------.-----..---._-- 530 624 560 666 549 660 1,639 1,950
September-------------------------- 536 623 558 631 551 628 1,645 1,882
October-----------..-----...---------- 53 636 572 667 573 676 1,698 1,979
November ------------------------ 547 643 562 666 563 668 1,672 1, 977
December------------------------ 563 652 597 677 592 678 1,752 2,007
1928
January---------------------------- 537 608 567 664 562 666 1,666 1,938
Fer.i------- --- ----- 531 620 560 650 556 654 1,647 1,924
March---------.. ---------------- 535 646 567 701 557 691 1,659 2,038
April ------------------------------ 508 613 540 647 532 647 1,580 1,907
May-------------------------------- 498 590 531 625 519 610 1,548 1,825
June-------------.----------.----- 473 553 497 589 496 592 1,466 1,734
Fiscal year:
1928------------.---------------- 6,314 7,406 6,642 7,811 6,577 7,804 19,533 23,021
1927 ----------._--------------_ 5,467 6,641 5, 783 6,968 5,691 6,941 16,941 20,550
1926----------------------------- 5,213 6,386 5,398 6,434 5,359 6,403 15,970 19,223
1925 ---------------------- 4,644 5,485 4,977 5,703 4,859 5,689 14,480 16,877
1924 --------------.----------- 5,260 6,205 5,572 6,297 5,520 6,277 16,352 18,779


OVERHAUL

There was no general overhaul of any of the locks during this year.
Gatun Locks were overhauled in 1927 and the Pacific Locks will be
overhauled during the fiscal year 1929, beginning probably in January,
1929. During the closing months of the year a large number of spare
parts for this work were in process of manufacture at the Balboa
shops.
EQUIPMENT

The signal arrows at north and south ends at Miraflores and the
south end at Pedro Miguel were replaced by new aluminum arrows
mounted on steel structures near the tops of the lamp-posts and work
was started at Pedro Miguel to make the change for the north arrow.
The maintenance work required to keep machinery and plant in
good condition was continued at all locks. One new towing loco-
motive, received from Balboa shops at the close of the fiscal year
1927, was completely equipped and placed in service in November,
1927, and one received on November 15, 1927, was placed in service
in March, 1928.

POWER FOR CANAL OPERATION

Electric power for the operation of the canal was derived almost
wholly from the hydroelectric plant at Gatun during the fiscal year
1928. The state of the water supply in Gatun Lake through the






REPORT OF GOVERNOR OF THE PANAMA CANAL


dry season was such that it was not necessary to save water by trans-
ferring load from the hydroelectric plant, to the new Diesel electric
plant at Miraflores. However, the load was handled by the Mira-
flores plant on account of peak-load conditions and other operating
requirements from time to time. At the Gatun plant there was one
interruption to service caused by failure of generating equipment.
No failures occurred at the Miraflores plant. All details of the Diesel
electric plant were completed and final acceptance of the engines was
made.
The combined generator output of the two plants averaged 4,861,-
333 kilowat.t.-hours per month, as compared with 5,066,242 kilowatt-
hours per month last year. An average of 4,484,061 kilowatt-hours
per month was distributed from substations, as compared with a
corresponding figure of 4,386,746 kilowatt-hours per month for the
preceding year. These figures indicate a loss in transmission of
7.76 per cent as compared with a similar loss of 13.41 during 1927.
The improvement is due to discontinuing the steam plant at Mira-
flores, at which steam was kept up for stand-by service by an elec-
trically heated boiler. This boiler was heated by current from the
hydroelectric plant and such current was charged to system losses.
There were four interruptions on the transmission line during the
year, none due to insulator failure.
A substation of 3,000 kilo-volt-ampere capacity, which had been
in use temporarily for the gravel-handling plant at Gamboa, was
transferred to a permanent location at Summit.. This equipment
will supply current at proper voltage for dredging operations in the
vicinity of Gaillard Cut and for lighting and power in offices, quarters,
etc., at Summit.
WATER SUPPLY

Comparative data showing the inflow of water in Gatun Lake frum
all sources, utilization, and losses for the fiscal years 1927 and 1928
are shown in the following table:

Per cent of total, Billion cubic feet,
fiscal year- fi Ascal year-

1927 1928 1 :7 1'j.

Run-off above .Alhajuela ................................... 35. 44.0 82.18 101. 15
Yield from land area below Alhajuela ............... ........ 44.3 38.4 101.57 88.25
Direct rainfall on lake surface.... ...... ..................... 19.8 17.6 45 47 40.31
Toal........... ...- ..........--. ..--- ........----......---.- .-- .-- 100 (0 0 .22 229 71
Evaporation from lake surface --. -..----. -. --- .--- ..-- 7 9. 20. 02 20 >1
Gatun Lake lockages--------.. ---.. ----... ----.-.-.-----. 17.0 I( 4 '04.96 44 60
Hydroelec tnepower.--....---------------..--------------- 19.9 19.6 45.64 44. 13
Spillway waste ..... .......................... .......... 50. 1 51.8 114 86 118.91
Leakage and municipal waler... .......................... .6 .6 1.39 1.38
Increase or decrease in storage ............... .............. -3.7 -.4 +.,s 35 -.S2
Total ................... .......................... 100 0 100 0 22*. 22 229- 71





REPORT OF GOVERNOR OF THE PANAMA CANAL


THE PANAMA CANAL Z EVPORAY/
DEPARTMENT OF OPERATION AND MAINTENANCE r7i
Section of Surveys JPILLWAY
Balboa Heights, Canal Zone i LAfAGF
SMUNICIPL
OPERATING USES OF GATUN LAKE WATER SUPPLY o HYnRO-(LECTRIC
YEAR 1927 DRY SEASON 1928 LOC
(To accompany Annual Report 1928)
\ STORAGE

II -------------------^= ----
0 ,7R.G



Ait

84


^-~ -- -- %--* ----- -- -- -- -- --i ---
-------_ _ W,------ --- -------- -- ------ -
Q:i
J^ S_,_EBB 70
'K ^ ^ 8 8

1 2-T i I i I I





REPORT OF GOVERNOR OF THE PANAMA CANAL


The graph on page 24 shows the operating uses of Gatun Lake
water supply for the calendar year 1927 and the first five months
of 1928, covering the dry season.

DRY SEASON
From a water-supply standpoint, the past dry season was slightly
below the average in both duration and yeild. Gatun Lake fell from
elevation 87.13 to 82.50 feet, a lowering of 4.63 feet. This involved a
loss in storage of 21.2 billion cubic feet. No effort was made to save
water at the Gatun hydroelectric station, and water saving at the
locks was not begun until March. No cross filling or other rigorous
methods were used.
ADDITIONAL STORAGE AT ALHAJUELA
Progress was made on the project for additional water storage at
Alhajuela, which is the most important constructive feature in the
present work of canal administration and development. Need of
more water for the dry season has been recognized for years past,
and the increases in traffic during the fiscal years 1923, 1924, and 1925
emphasized the need and forced the consideration of means of relief.
The sums of $50,000 for the preparation of plans and $500,000 for the
first year's work were included in the estimates for 1926, 1927, and
1928, but were eliminated by the Bureau of the Budget; however,
$250,000 was allowed for 1929. Preparations were made during the
latter part of the fiscal year 1928 for the commencement of work
with the beginning of the fiscal year 1929, the first work to be toward
construction of a highway to Alhajuela from the present highway near
Summit, construction of telephone and power transmission lines, com-
pletion of topographical survey of the reservoir area, and the examina-
tion by diamond-drill borings of the several dam sites.
During the year various elements in the Alhajuela development
were the subjects of investigation and report by a committee con-
sisting of the municipal engineer, the electrical engineer, the office
engineer, and the chief of surveys. Field work was carried on under
the municipal engineer and the chief of surveys.
It is assumed that about five years will be required to complete this
project, at a cost of approximately $12,000,000. The conditions
which make such an addition necessary are summarized in the follow-
ing, quoted from the annual report for 1927:
During approximately eight months qf the year much excess water enters the
lake and has to be spilled into the sea. During the remaining four months the
inflow is wholly inadequate to meet the demands for water which must be pro-
vided for the lockage of ships, the generation of electric power, and for municipal
purposes, in addition to the heavy losses resulting from evaporation. The maxi-
mum height to which Gatun Lake may be filled is s7 feet plus. The minimum
lake elevation permitting safe navigation, tlrollgh.Gaillard Cut is sO feet pl'u'.
13528--H. Doe. 347, 70-2--3





REPORT OF GOVERNOR OF THE PANAMA CANAL


This gives a margin of 7 feet of storage available for drawing upon during the
dry season. With the continued increase in traffic, the time is approaching
when this margin will not suffice to provide safe transit through the cut for
heavy-draft vessels toward the end of a dry season both extremely dry and
unusually prolonged.
By the erection of a dam at Alhajuela a second basin can be created where
surplus water can be stored in the rainy season to be drawn upon during the dry
season to maintain the level of Gatun Lake. Recent topographical surveys show
that it is feasible to build a dam about 170 feet in height, which will create a
reservoir covering about 22 square miles, and provide additional storage of about
22,000,000,000 cubic feet. In addition, the reservoir would be a means of control
of the Chagres River during floods in the rainy season, which are a possible
menace to navigation.
SEISMOLOGY

Forty-four seismic disturbances were recorded at Balboa Heights
during the fiscal year ending June 30, 1928. Of these about 34 per
cent were of local origin, 27 per cent of distant origin; and 17 per cent
were so slight that no estimate of the distance and epicenter could be
made. No damage was reported from any of these tremors. In the
preceding fiscal year the number recorded was 22.

MAINTENANCE OF CHANNEL AND IMPROVEMENT PROJECTS

Dredges were at work throughout the year on maintenance and
improvement work in the Atlantic entrance, Gatun Lake, Gaillard
Cut, Pacific entrance, and Cristobal and Balboa harbors and termi-
nals. These dredges excavated 3,160,450 cubic yards of material
from the canal prism, 1,732,600 cubic yards from Balboa harbor and
terminal, and 201,500 cubic yards from the Atlantic harbor terminal,
making a grand total of 5,094,550 cubic yards, as shown in the
following table:

Earth Rock Total

From the canal prism:
Atlantic entrance.------------ .--.------------------- 464, 550 0 464, 550
Gatun Lake--------------------------------------------- ------121,850 0 121,850
Gaillard Cut-
Project No. 2-.-------..----------------------------- 86, 500 683,200 769,700
Project No. 9----------------------------------------- 7,650 43,500 51,150
Maintenance---------......--------------------------- 107,200 478,500 585,700
Pacific entrance-
Project No. 1--------------------------.--------... --- 147,800 446, 750 594,550
Maintenance --------------------------------.--------- 463,400 109,550 572,950
Total, canal prism -----------------------------------1, 398,950 1, 761, 500 3, 160,450
Auxiliary:
Cristobal harbor and terminal.------.----------------------- 201,500 0 201, 500
Balboa harbor and terminal-
Project No. 1----------------------------------------931,650 36,100 967,750
Maintenance.-------- ..--------------------------------764,850 0 764,850
Total, harbors and terminals...-------------------------- 1,898,000 36, 100 1,934, 100
Grand total------------- ------------------------ 3,296,950 1, 797,600 5,094,550


Improvement project No. 1.-The work of deepening the Pacific
entrance channel from Miraflores Locks to the sea buoys and Balboa
inner harbor from 45 Ieet to a ruling depth of 50 feet, mean sea-





REPORT OF GOVERNOR OF THE PANAMA CANAL


level datum, known as improvement project No. 1 and begun in
July, 1924, was continued throughout the year as equipment was.
available. Work was carried on by pipe-line suction dredges No. 83'
and No. 86, handling the softer material, and dipper dredges Ca.scadas
and Gamboa excavating rock and hard earth. The suction dredges
excavated 855,200 cubic yards from the harbor and 128,200 cubic
yards from the channel, charged to this project; and the dipper
dredges excavated 112,550 cubic yards from the harbor and 466,350
cubic yards from the channel, counted as work on the improvement.
In addition to this total of 1,562,300 cubic yards on the project, the
dredges did considerable excavation classed as maintenance. Two
drill boats were employed 11 months each during the year on this
work, breaking up 362,021 cubic yards of rock and using 328,163
pounds of dynamite. The total excavation to the end of the fiscal
year on this project was 3,827,600 cubic yards, and it was about 5(1
per cent completed.
Improreiint project No. 2.-This project is the widening of the
channel at Lirio curve so as to enable all classes of vessels to pass
this sharp turn with ease and a much better range of visibility. The
excavation is from the west. bank of the cut. It starts with an ease-
ment approach curve at the south end, station 1747, striking the wide
portion of the project at 1731+80, at which point the increase in
width amounts to 160 feet; the cut-off then narrows to 110 feet at
station 1717+30, from which point an easement approach runs north-
ward and tangent to the present prism line opposite station 1710.
The length of the whole project is approximately three-fourths of a
mile. Work was started on September 16, 1927, and to the end of
the fiscal year 769,700 cubic yards of material were removed by the
dipper dredges Garmboa and Paraiso. A drill boat worked one month
on this project, breaking up 20,784 cubic yards of rock and using
17,390 pounds of dynamite. A hydraulic grader also worked on this
project, from October to the end of the year, removing 110,505 cubic
yards of material, and air compressor barge No. 27 was recommis-
sioned for drilling operations, for which 10 wagon and 15 tripod
drills, purchased in the United States, were placed in service in May
and June.
Improreiment project No. 9.-This project, is the widening of the
channel fronting West Culebra slide so as to minimize danger to
ships entering Culebra reach besides providing a factor of safety in
the way of a possible stoppage in case of a push from the West Culebra
slide area, and, likewise, to minimize the tendency of the material, in
this area to push up in the channel. Work was started on this
project on June 9, 1928, and during the remainder of the month
51,150 cubic yards of material were removed. The excavation was
begun in conjunction with the periodical clean-up cut which is made





REPORT OF GOVERNOR OF THE PANAMA CANAL


along the prism line. It is planned to start with an easement ap-
proach curve at station 1776, joining up with a 100-foot additional
channel width opposite 1781, which continues south to station 1790,
from which point an easement approach curve runs southward with
the old prism line at station 1797.

EQUIPMENT

Service of excavating equipment during the year was as follows:
Three 15-yard dipper dredges were operated 7, 7Y2, and 9 months,
respectively; two 20-inch pipe-line suction dredges were operated 5
and 10 months; hydraulic grader, 10Y months; two drill boats, 11
and 11Y2 months; air compressor, 2 months. The following craft
were in commission throughout the year except as withdrawn for
repairs or overhaul: Two 250-ton floating cranes, 5 large and 2 small
tugs, and 10 launches. The new Diesel electric tug Chagres was
received from the mechanical division and commissioned on March
2, 1928, at which time the tug Gatun was retired. The Gatun, a
veteran of canal construction, was used in the first operation of
Gatun Locks, September 26, 1913. The tug Bolivar was also laid
up pending emergency call. The new launches Tarpon and Porpoise
were received on January 16 and March 14, 1928, respectively, and
one old launch was retired from service.

FERRY SERVICE

On October 8, 1927, the vehicular ferry previously operated by
the United States Army at the north end of Pedro Miguel Locks
between the east and west banks of the canal was taken over by the
dredging division. The equipment consisted of the gasoline tug
Lieut. W. B. Gaither and a barge. From that date to the end of the
fiscal year 3,846 single trips were made across the canal, carrying a
total of 26,452 vehicles. In normal operation the ferry makes 10
round trips every day except on Tuesdays and Thursdays, when 4
trips are made.
SLIDES
Cucaracha slide was active in June of the fiscal year 1927 and again
showed activity in July, 1927, necessitating the removal of 102,000
cubic yards of material, This makes a total of 9,299,752 cubic
yards excavated on account of this slide to the end of the fiscal year
1928.
East Culebra slide has been practically inactive since June 4,
1927. There was a slight movement of West Culebra slide in July,
1927, and during July and August 191,950 cubic yards of material
were removed, making a total of 29,207,810 cubic yards of material





REPORT OF GOVERNOR OF THE PANAMA CANAL 29

excavated on account of the East and West Culebra slides to the
end of the fiscal year.
Three movements of West Lirio slide occurred during the year,
August 1, September 21, and February 20, involving about 100,000
cubic yards of material. All of these breaks were within the new
project and none of the material entered the canal prism. The total
excavation to the end of the year from the West Lirio slide is
1,843,820 cubic yards.
A small bank break at East Lirio occurred in October, 1927, between
stations 1743+50 and 1745, and a very small amount of material
pushed over the prism line. The total excavation to the end of the
fiscal year on the East Lirio slide, including the East Empire slide,
is 396,212 cubic yards.
Several other small *breaks occurred at various points in the cut
during the year.
In the Atlantic entrance channel a break occurred on the east
bank near Mindi, stations 307 to 310+75, on December 29, 1927.
Approximately 35,000 cubic yards of material were involved, of
which 1,200 cubic yards reached the canal prism.
No other slides were active during the year, and there was no inter-
ference with shipping on account of slides.
AIDS TO NAVIGATION
The maintenance of lights, buoys, and beacons established in
the canal proper and adjacent waters as navigational aids was con-
tinued throughout the year; also the clearing and marking of small
boat channels in Gatun Lake. A gas and whistling buoy was estab-
lished at South Fraile Island, west of Cape Mala, on July 15. During
the year 35-new lights were placed along the banks of Gaillard Cut,
reducing the distance between lights to approximately 500 feet.
At the close of the year there were. 72 lights on the east bank of the
cut and 80 on the west bank.
The cost of purchase, installation, and operation of navigational
aids during the year was $222,496.46, as compared with $196,543.90
for the previous year.
ACCIDENTS
Investigations were conducted and reports submitted by the
board of local inspectors on 99 accidents to vessels in transit through
the canal or using its terminal ports. In the majority of these
accidents the damages were relatively slight, there being but 14
in which the estimated damages were $1,000 or more. A classifica-
tion of accidents shows the following: Collision between ships, 2;
grounded in canal, 1; struck bank of canal, 21; struck lock walls, 18;
other accidents in locks, 14; incidental to assistance by tugs, 11;





REPORT OF GOVERNOR OF THE PANAMA CANAL


docking accidents, 13; miscellaneous, 19. The following is a brief
description of the more serious accidents.
On July 9 the steamship Marore struck the east bank of the cut
in Empire reach, doing damage estimated at $6,000, exclusive of
drv-docking; accident was attributed to overloaded condition of
vessel and poor operation of steering gear.
On July 17 the Regiolitfe struck the west bank of the canal, causing
-damage estimated at $6,400, exclusive of dry-docking; due to sheer
caused by suction after passing another vessel.
On August 21 the Susherico struck lock wall at Gatun, causing
damage estimated at $1,600; due to steering-gear shafting becoming
disengaged.
On September 11 the Holland Maru struck south approach wall,
Gatun Locks, causing damage to ship estimated at $1,000 and to
lock fender $25; cause was failure of engines to respond promptly to
bridge signals.
On September 21 the Salina struck west bank of canal, causing
damage estimated at $2,500 exclusive of cleaning and steaming
tanks; cause, overdraft and ship not responding to efforts to break
sheer.
On September 29 the Marore struck west bank of canal, causing
estimated damage of $10,500, exclusive of dry-docking; cause, sheer
of vessel.
On November 9 the City of Khios, standing down Miraflores
reach from Miraflores Locks, struck drill barge Teredo No. 2 and
water barge No. 97, due to failure of ship's steering gear. The
damage to the ship was slight; that to the canal equipment was
estimated at $4,350 exclusive of delay for overhauling.
December 1 the Pisco struck the west bank of the cut, causing
damage estimated at $13,575, exclusive of dry-docking; due to sheer.
February 2 the Santore struck east bank of cut, doing damage
estimated at $2,500; cause, pilot giving wrong order to helmsman.
On March 12 the Niobe, while approaching dock at Balboa, struck
against a Navy barge, denting plates and damaging fender piling of
the dock. Estimated cost of repairs to the Niobe was $3,000, and to
dock $200.
On March 22 the Sagadahoc struck the west bank of the canal,
doing damage to ship estimated at $6,500, exclusive of dry-docking,
and to signal station estimated at $136.58; cause, failure of steering
gear.
SALVAGE OPERATIONS
In accordance with practice since 1926, when commercial salvage
companies arranged to operate in the Caribbean area, the Panama
Canal no longer undertakes salvage operations in other than canal
waters except where lives are endangered or great emergency exists.





REPORT OF GOVERNOR OF THE PANAMA CANAL


In line with this policy the only services of this nature furnished
during the fiscal year 1928 were as follows:
On September 2 the tug Tarernilla was dispatched to the assistance
of the steamship Farorita, aground on the San Blas coast, and the
vessel was successfully floated.
May 8 the tug Gorgona went to the assistance of the steamship
Jacob Luckenibach, stranded near Guiones Point, on the west coast of
Central America.
On May 24 the Gorgona went to Salina Cruz, Mexico, to the
assistance of the disabled steamer Tashmnoo, returning to Balboa
with the Tash moo in tow on June 9, 1928.
On June 26 the Gorgona went to Cape Mala to the stranded motor-
ship Cynthiana with a survey party.
The cost. of maintaining the salvage section as an aid to navigation
was $118,963.83, against a revenue of $51,083.68, a deficit of
$67,880.15 as compared with a deficit the preceding year of $44,534.23.
It is thought that it is advisable to maintain a complete salvage unit
to assist vessels in distress although the revenue derived is not
commensurate with the plant maintenance.
RULES AND REGULATIONS
The rules and regulations for the navigation of the Panama Canal
and adjacent waters effective January 1, 1926, issued under Executive
order of September 25, 1925, were supplemented during the year by
four supplements referring to the number of locomotives to be used
during the lockage of vessels; persons on arriving vessels who are
being deported from or repatriated to any country; the load and
trim of vessels desiring to transit the canal; and vessels exempted
from pilotage.













SECTION II

BUSINESS OPERATIONS

A detailed statement of the expenses (including depreciation),
revenues, and profit or loss on the various subsidiary business opera-
tions conducted by the Panama Canal will be found in Table No. 26,
Section V, of this report. The total net profit on these operations
was $736,719.43, as compared with $876,536.80 in the preceding year
and $841,310.29 in the fiscal year 1926.
The business operations of the Panama Railroad Co. on the Isthmus
yielded an additional revenue of $1,659,750.53. In 1927 this revenue
was $1,644,189.37 and in 1926 it was $1,347,887.33. Details pert ain-
ing to the major business units of both the Panama Canal and Panama
Railroad are discussed briefly in the following paragraphs:

MECHANICAL AND MARINE WORK

The volume of shop and marine work handled during the fiscal year
was appreciably greater than for 1927 and slightly higher than in
1926. The fluctuation in the number of employees carried was not
as great as in former years, and the policy was continued of distribut-
ing the repairs to canal and Panama Railroad equipment, the manu-
facture of spares for the locks, and work of a similar character so as
to provide employment for the mechanical force when outside com-
mercial work was distinctly below normal.
The value and class of work done, and the source of it for 1928, as
compared with the two preceding years, are shown in the following
table:

1926 1927 1928

AMOUNT OF WORK DONE
Marine----------------- ----------------------- $2,123,956.45 $1,619,815.30 $2,320,712. 23
Railroad------------------------------------------- 629,478.27 612,276.46 534,711.38.
Sundries-------------------------------------------- 382,422.45 476,821.34 420,665.14
Stock materials--------------------------------------383,866.90 358,814.90 263,596.27
Total--------------. -------------------------- 3,519,724.07 3,067,728. 00 3,539,685.02-
ORIGIN OF WORK DONE
Individuals and companies 1 -------------------------------- 1,001, 586.00 764,619.46 814,249.09,
The Panama Canal- -----.----------------------------1,473,071.54 1,324,896.56 1, 774,184.85
The Panama Railroad Co --------------------------------- 731,251.52 671,940.06 603,832.40
Other departments of United States Government ----------- 313,815.01 306,271.92 347,418.68.
Total------------------ --------------------- 3,519, 724.07 3,067, 728. 00 3, 539,685.02

1 Includes Panama Railroad Steamship Line.
32





REPORT OF GOVERNOR OF THE PANAMA CANAL


MARINE WORK

During the year the two Diesel electric tugboats, Chagres and Trin?-
dad, mentioned in the report for 1927, were completed and placed in
service, and dynamometer tests indicate that they are the most
powerful now in the service of the canal. The Cltagres was assigned
to the dredging division, the Trinidad to the marine division.
The 12 barges to be used in the construction of port works at
Buenaventura were completed and delivered.
A total of 17 small oil tankers, belonging to the fleets of oil compa-
nies operating on the shores of Lake Maracaibo, were given annual
overhaul. One oil company is building a marine railway on Lake
Maracaibo and it is expected that hereafter its tank ships will come
to the canal for heavy repairs only. Other companies, however, are
adding to their fleets, and a decrease in this work is not anticipated in
the near future.
The submarines stationed at the Coco Solo submarine base were
docked and overhauled. The United States cruiser Rochester, flagship
of the special service squadron stationed in local waters, was over-
hauled, and miscellaneous work was done for other vessels of the
squadron. Repairs to United States Army tugs, mine planters, and
launches were made during the year.
The work of remodeling the ends and renewing the loading sides of
the dredging division dump scows was completed, and the complete
remodeling of another scow was undertaken. Two launches were
completed for the dredging division and one for the marine division,
and a 50-foot hull was made for the marine division. A shallow
draft, twin-deep propeller barge, driven by two engines, was designed
and is nearing completion. The barge is for use on the Chagres
River in connection with the Alhajuela Dam project..

OTHER WORK

Large quantities of repair parts for the lock machinery for use
during the overhaul of the Pacific locks in 1929 were manufactured,
and the work on these items will continue during the fiscal year
1929. The largest item consists of 59 cylindrical valves, which are to
replace worn-out valves which have been in service at the locks since
the completion of the canal.
A third Panama Railroad locomotive was converted from saturated
to superheated steam and was practically ready for service at the end
of the year. Two new passenger coaches for the Fort Randolph
branch were completed and one other was partly finished. Prelimi-
nary work was started on four additional coaches for main-line service
of the railroad. Decision was reached to fit steel underframes and
standard freight-car trucks under refrigerator cars in future. Work





34 REPORT OF GOVERNOR OF THE PANAMA CANAL

was started on six new refrigerator cars, using this construction, and
three were completed.
DRY DOCKS

A total of 174 vessels were dry docked during the year, 102 at
Balboa and 72 at Cristobal. A classification of these vessels follows:

Balboa Cristobal Total

Panama Canal equipment---------------------------------- 33 10 43
United States Navy vessels--------------------------------- ---------20 4 24
United States Army vessels--- ---------------------------------------- 1 3 4
Other United States Government vessels------------------------------ ----------2 2
Panama Railroad vessels-------------------------------------------- ----- 7 7
Commercial line vessels------ ------------------------- -------- ---------48 46 94
Total-----------.------------------------------------------102 72 174

The average tonnage of commercial vessels docked at Balboa was
2,805 and at Cristobal 536.
The days in which there were no vessels in dry dock at Cristobal
numbered 149, at Balboa none. The Cristobal dock was out of
commission from June 11 to August 10, 1927, in connection with
alterations and proposed extensions.
The docking and overhaul of the United States cruiser Rochester,
flagship of the special service squadron, was completed in 30 working
days. Due to likelihood that the vessel might be called for emergency
service, the work was so arranged that after the first 14 working
days the vessel could have been released for duty at any time on
5 days' notice.
An attempt was made at the beginning of the year to lengthen
the present dry dock at Cristobal to 361 feet. The project was
abandoned when the difficulty of building a cofferdam at the harbor
end indicated that the cost of the work would be excessive for the
benefit derived. Revised plans have been prepared for extending
this dock to a usable length of 475 feet, with a clear opening of 65
feet at the entrance and a depth of 30 feet over the sill. A dock
of this size could accommodate approximately 80 per cent of the
vessels passing through the canal.

PLANT

New corrugated asbestos roofs were installed on the machine,
paint, and car shops at Balboa and on the new boiler shop at Cris-
tobal. A simplified and cheaper method of installing the roofs was
adopted and found satisfactory. The new roundhouse at Cristobal
was completed at a considerable saving, and part of the saving was
applied toward the purchase of new machine tools for this round-
house and Balboa roundhouse as well. A new oil-burning 40-ton





REPORT OF GOVERNOR OF THE PANAMA CANAL


crane for vessel repairs was ordered for Balboa and a new 30-ton
locomotive crane for Cristobal. The new pattern storage building
extension at Balboa was completed and placed in use. A section
of Pier 15 settled to such an extent during the year that. removal
was necessary. It is now being rebuilt by the municipal division.
A new roof will be installed on the instrument repair shop at Balboa
during the year 1929 from the reserve fund previously established.
The rearrangement of the Cristobal shops has been revised so as
to group the buildings about the proposed new dry dock. The
revised plan provides for an approach pier and fitting-out wharf for
vessels under repair at Cristobal shops. Replacements of obsolete
and worn-out shop buildings at Cristobal will be made by modern
structures with steel frames. The construction program con-
templates replacement of all the old buildings in about four years,
and practically all the funds for the work will be derived from earn-
ings of the mechanical division. It is hoped to build the new dry
dock toward the end of this 4-year construction period, provided the
necessary funds are appropriated. The new boiler shop at Cristobal
was completed, ready for machinery installation, and erection of
the new machine shop will probably be undertaken during 1929.

FINANCIAL

The mechanical division earned net profits of $56,132.36 during
the year, after providing funds sufficient to increase the reserve for
renewals and repairs to machinery, equipment, and buildings to
$159,259.69, in which is included $128,159.14 for improvements to
the Cristobal shops. Local reserves as of June 30, 1928, for replace-
ments of machinery and equipment, Cristobal dry dock, repairs to
equipment and buildings, reroofing Balboa shops, improvements to
Cristobal shops, and gratuity for employees' leave, totaled $774,071.39
as compared with $786,048.49 for the same items at the end of the
fiscal -year 1927.
COAL
The sales of coal from the plants at Cristobal and Balboa totaled
340,774 tons during the year as compared with 372,641 tons during
1927 and 347,319 tons during 1926. Of the 340,774 tons sold during
the year, 299,861 tons were sold to 964 commercial vessels other than
Panama Railroad, as against 365,367 tons sold to commercial vessels
during the year preceding. The price of coal was reduced from $9
per ton to $88.50 on September 1, 1927, and again to $8 on June 15,
1928.
The total receipts from the sale of coal and charges for extra han-
dling during the year amounted to $2,907,516.31; the total cost of
sales, including operating expenses, was $2,502,203.35, resulting in a





REPORT OF GOVERNOR OF THE PANAMA CANAL


net profit. of $405,312.96, as compared with $562,280.32 last year, a
decrease of $156,967.36. Additional reserve for repairs and replace-
ments of colliers and barges amounting to $216,000 was set up. As
in the preceding year practically all deliveries were made from the
Cristobal plant.

F'UEL OIL, DIESEL OIL, GASOLINE, KEROSENE

During the year the Standard Oil Co. of New York erected one fuel
oil tank of 80,000 barrels capacity, and Fidanque Bros., of Panama,
erected a gasoline tank of 20,000 barrels capacity, both at Balboa.
At the close of the year the total storage capacity for fuel and Diesel
oil was 2,361,040 barrels-1,246,540 barrels at Balboa and 1,114,500
at Mount Hope (Cristobal).
All deliveries to and from the tanks, for private companies as well
as for the Panama Canal and the United States Navy, continued to
be handled through the pipe lines and pumping plants of the Panama
Canal.
FUEL OIL

The volume of fuel oil handled, including receipts, issues, and mis-
cellaneous transfers, is shown by the following tabulation:


Balboa Mount Total
Hope

Barrels Barrels Barrels
Received by the Panama Canal.---------.. ----------------------- 190,553 149,096 339,649
Used by the Panama Canal----------------------------------- 220,373 86,448 306, 821
Pumped for individuals and companies------------------------ 8,323, 110 6,908,591 15,231,701
Sold by the Panama Canal------------------------------------- 4,633 7,401 12,034
Miscellaneous transfers------------------------------ --------- 43,384 44,059 87,443
Total-------------------------------------------------- 8,782,053 7,195,595 15,977,648


The number of ships handled in connection with receipts and issues
of fuel oils totaled 2,678, of which 150 were Panama Canal craft.

DIESEL OIL

Sales of Diesel oil to vessels by the Panama Canal totaled 3,017
barrels, and sales made by the various private companies aggregated
740,393 barrels.
GASOLINE

During the fiscal year 2,341,072 gallons of gasoline were received for
bulk storage; of this 1,544,610 gallons were stored in tanks at Balboa
and 796,462 gallons were stored in tanks at Mount Hope. The total
storage space available for bulk gasoline is 1,307,560 gallons-
1,082,560 gallons at Balboa and 225,000 gallons at Mount Hope.






REPORT OF GOVERNOR OF THE PANAMA CANAL


KEROSENE
Kerosene shipments received in bulk aggregated 501,160 gallons
during the year; of this amount 332,028 gallons were stored at
Balboa and 169,132 at Mount Hope.
The handling of mineral-oil products resulted in net profits of
$279,030.20 after deduction of operating expenses and fixed capital
charges.
SHIP CHANbLERY AND OTHER SUPPLIES-STOREHOUSE
OPERATIONS
The operation of the storehouses was continued under the same
policy as during the preceding fiscal year. The operating forces
were held at a minimum, and every effort was made to keep inventory
values as low as possible. However, on account of the unusual con-
struction activities on the Atlantic side of the Isthmus it was necessary
to enlarge the sand and gravel storage and handling facilities there,
and the quantity of other building materials handled was in excess of
ordinary requirements at Cristobal; The total value of materials
received on purchases from the United States during the year was
$5,068,172.13, as compared with $5,142,178.42 during the preceding
year. Local purchases totaled $647,498.91, as compared with $550,-
417.55 during the preceding year. The value of stock on hand at
the close of the year was $4,450,196.60, an increase of $480,003.95 as
compared with the preceding year.
The general storehouse at Balboa and the branch storehouses at
Paraiso and Cristobal handled a total of 152,014 requisitions and
foremen's orders during the year. The value of all issues for the
year was $6,905,435.48. Material and supplies sold to steamships,
employees, and others aggregated $999,827.75 and involved 61,809
separate sales. Business with shipping comprised sales to 3,736
vessels of material and supplies, including fuel oil, having a total value
of $149,055.47, compared with sales of $134,106.36 to 3,420 vessels
during the year preceding.
A total of 583 net tons of scrap iron was sold, of which 278 tons
were sold in the local market.
NATIVE LUMBER OPERATIONS
Native hardwood lumber operations were continued as during the
preceding year, and 225,051 board feet of logs were purchased as
compared with 251,689 feet during 1927. Purchase was also made
of 2,587 native hardwood railroad ties, as compared with 1,947 dur-
ing the preceding year.






REPORT OF GOVERNOR- OF THE PANAMA CANAL


HARBOR TERMINALS

The total revenue from harbor terminal operations during the fis-
cal year amounted to $1,603,266.98; the operating expenses were
$1,271,580.34, resulting in a net revenue of $331,686.64, as compared
with $275,547.87 last year, an increase of $56,138.77 for the year.
There were 1,666,903 tons of cargo stevedored and transferred this
year, as compared with 1,456,363 tons last year, an increase of 210,540
tons. A 50-ton capacity stiff-legged derrick was erected on Pier No.
S, Cristobal, and a new 125-kilowatt generator was installed in the
battery-charging station at Cristobal. Three thousand one hundred
auWd twenty-two cargo ships and 597 banana schooners were handled
and agency service was furnished to 397 commercial vessels during
the year. At the close of the year a reserve of $50,000 was set up
to cover extraordinary repairs and dredging.
A comparison of cargo tonnage handled, gross and net revenue
from terminal activities, etc., for the past three years is given in the
tabulation below:

1926 1927 1928

Tons of cargo stevedored --------------------------------- 372,760 305,506 330,392
Revenue per ton stevedored----------------------------- $0. 3570 $0. 3888 $0. 3450
Cost per ton stevedored --------------------------------- $0. 2543 $0.2248 $0.1719
Tons of cargo handled and transferred ------------------ 1,089,244 1,150,807 1, 336,511
Revenue per ton handled---------------------------.---- $0. 9708 $0. 9580 $0. 8620
Cost per ton handled---------------------------------- $0. 7412 $0. 7894 $0. 5450
Gross operating revenue--------------.------------- $1,381,375. 58 $1, 423,357.77 $1, 603,266.98
Gross operating expense--------.---------------------$1,066,376.07 $1,147,809.90 $1,271, 580.34
Net revenue------------------------------------- $314,991.51 $275,547.87 $381,686.64
Per cent of expense to gross revenue--------------------- .77. 20 80.64 79.31


The distribution of business between the Cristobal and Balboa
terminals is indicated below:

Cristobal Balboa

Number of vessels discharging or taking cargo.------------------------------- 2,017 1,105
Tons of cargo received------------------------------------------------ 684,869 87,468
Tons of cargo dispatched-- ---------------------------------------- 513,726 14,056
Tons of cargo stevedored by Panama Railroad.-----.------------------------- 301, 432 28,960

COMMISSARIES

The operations of the commissary division were continued along
the same lines as in previous years. Few complaints were received
from patrons during the year and in general it is considered that the
quality of the merchandise, prices, and service furnished were satis-
factory. No considerable price changes were made, as has been the
case in previous years. The establishment of sailings of ships with
refrigerated space from the west coast of the United States by one of
the steamship companies made possible the purchase of food supplies
in that locality. The results have been so satisfactory that it is
proposed to open a purchasing office in San Francisco.


38





REPORT OF GOVERNOR OF THE PANAMA CANAL


SALES

Every effort was made during the year to restrict sales in the coim-
missary stores to those entitled to buy in them. Infractions were of
a relatively minor nature and were corrected promptly, the guilty
persons being cautioned or punished as found advisable. Total
commissary sales during the year amounted to $9,682,240.78, as
compared with $0,128,580.10 during the preceding year, an increase
of $553,660.68. Sales to vessels amounted to $1,429,647.35, as com-
pared with $1,308,520.02 during the preceding year, an increase of
$121,127.33. Of the aggregate sales to vessels, $430,954.72, or ap-
proximately 30 per cent, were to vessels of the United States Navy.
The principal item of improvement was the advance toward com-
pletion of the new large reinforced concrete warehouse, checking-in
shed, and general manager's office under construction at Mount Hope.
The warehouse will contain 180,000 square feet of floor space on three
floors, and in addition to the stocks to be carried there it will house a
new bakery, coffee-roasting plant, and merchandise-packing depart-
ment. The new office building is of two stories, 60 by 80 feet, built
so as to face the warehouse, which in turn adjoins the cold-storage
plant at Mount Hope. The checking-in shed is 70 by 120 feet, and
will house the timekeepers, a time-clock system, etc., and will be
equipped with shower baths for silver employees handling food
supplies.
The gross receipts from the sale of commissary supplies during the
year were $562,648.31 in excess of sales during the preceding year
and the net profits were $455,721.25, as compared with $320, 754.03
during the year preceding, an increase of $134,967.22 for the year.
The distribution of sales as compared with the two preceding years
was as follows:

1926 1927 1928

U. S. Government. Army and Navy.................. $1, 370,929,81 $1,321,933.11 $1,431,333.77
The Panama Canal.....................................' 685,894.65 697.522.98 728,124.03
Steamships...................................... ....... 766,989.50 7941,689.06 %90. 513. 28
Panama Railroad Steamship Line....................... 192,360.29 264,685.11 411,324.77
Individuals and companies .............................. 660,336.75 697,673.98 6,o. 112 45
Em ployees ........ .............................. ......' 5,477, 106 19 5. 751, 234.99 5, ."7, 279 24
Gross sales-....................................... .! 9, 153,617.19 9,527. 739.23 10,090,387.54
Less discounts, credits, etc................... ........... 421.776.19 399.159. 13 4108. 146.76
Revenue from sales-................................ 731. 41 9, 12-4. 5s i I 1 9 i,.s2.240 79
Supplies for expense and equipment:
Retail commissaries and warehouse.................. 42, 527.73 47,017 904, 170.25
General--------------.------.------------------- 1,231. 70 1,089.78 1,257.79
Plants.................................. ............. 15,827 28 20,571.66 20,387.43
Total............................................. -----------------------------------------39, 71 .4 I 6 13. 47
Loss by condemnation, pilferage, shrinking, clerical
errors, etc........................................... 195,113.84 207, 196. 15 207, 120.70
Orand total ....... ................. ..... .... 8, 9 4.. i. 1. ..'i 'I '.i 5., 177.01






REPORT OF GOVERNOR OF THE PANAMA CANAL

PURCHASES


Purchases during the year aggregated $9,334,407.43, an increase
of $1,977,999.95 over the preceding year. Supplies to the value of
$1,581,000 were on hand at the close of the year. The following
tabulation shows the value of the various items purchased as com-
pared with the two preceding years:


1926 1927 1928

Groceries. -------------------------------------$1, 428, 138. 67 $1, 672,887. 79 $2, 043,878. 68.
Hardware------------------------------------------- 613,123.67 565,982.22 578,726.51
Dry goods--- -------------------------------- ------ 1,035,508.32 1,174,818.42 1,594,971.34
Shoes -------------------------------------------- 199, 873. 72 328,489.83 365,424.19
Cold storage------------------------------------- 1,498,313.07 1,470,016.76 2,261,445. 55
Tobacco---------------------------------------------- 382, 528.94 398,654.36 616, 687.05.
Cattle and hogs------------------------------------ 550,711.25 445,852.08 394,417.07
Milk and cream. ------------------------------------ 101, 499.55 158,293.55 125, 643. 57
Eggs-------------------------------------------- 237,233.74 230,689.73 235, 389. 43.
Butter ------------------------------------ -------- 237,872.44 326,082.08 261,035. 06
Raw material------------------------------ -------- 283,142.81 325,821.11 646, 415.98.
Toys--.---------------------------------------. -- (1) 34,585.22 58.323.06
Dressed beef-------- ---------------------- -------------------- 224,234.33 152, 049. 94
Total---------------------------------------- 6, 567,946.18 7,356, 407.48 9,334,407.43.
PLACE OF PURCHASE
United States------------------------------------ 4,877, 886. 32 5,313,970.34 6,804,054. 13
Europe and Orient-------------------------- --------- 551, 756.09 1,030, 279. 83 1,197,658.61
Central and South America -------------------------- 234, 280.61 275, 702.01 495,504.25
Cattle industry------------------------------------- 596,971.70 440,150.12 258,411.44
Panama Canal----------------------------------------- 90,993.77 112,612.75 109, 855. 42
Local- ---- ---------------- ------------------------------- 216,057.69 183,692.43 468,923.58&
Total-------------------------------------- 6,567,946.18 7,356,407.48 9, 334, 407.43.

1 Included under hardware.
MANUFACTURING PLANTS

The output of the manufacturing plants had a total value of
$1,959,914.60, as compared with $1,795,127.10 in the preceding year,
an increase of $164,787.50. The principal products of the major
plants and their value are summarized as follows:

BAKERY

The output of the leading items manufactured included 3,917,760
loaves of bread, 1,849,422 rolls, 40,134 pounds of cake, 2,034 dozen
doughnuts, 7,366 pies, and 177,635 pounds of soda crackers, having a
combined value of $268,223.55.

COFFEE-ROASTING PLANT

Among the products handled were 217,189 pounds of coffee, 23,233
pounds of corn meal, 56,896 pounds of peanuts, and 1,508 pounds of
almonds. These products had a combined value of $97,771.88.





REPORT OF GOVERNOR OF THE PANAMA CANAL


ICE CREAM AND MILK-BOTTLING PLANT

The principal output consisted of 43,130 gallons of ice cream man-
ufactured, 441,319 quarts of milk and 16,823 quarts of cream bottled,
and 186,023 Eskimo pies manufactured. The total value of the
output was $194,903.21.

ICE PLANTS

Ice manufactured totaled 37,112 tons, valued at $323,532.43.

LAUNDRY

The number of pieces of laundry handled was 6,192,323, and receipts
aggregated $253,183.32.
SAUSAGE FACTORY AND PICKLING DEPARTMENT

The aggregate output of the various products manufactured
totaled 975,777 pounds, valued at $27,724.46.

INDUSTRIAL LABORATORY

The value of the output of the laboratory during the year was
$218,615.17.
ABATTOIR

Included among the animals slaughtered were 6,341 head of cattle
and 198 hogs; the output was valued at $365,960.58.

HOTELS AND RESTAURANTS

The restaurants and silver messes continued to be operated under
contract during the year, and service was rendered at fair prices.
The Hotel Tivoli at Ancon and the Hotel Washington in Colon were
operated by the supply department throughout the year. These
hotels are essential adjuncts to the canal in affording accommodations
to visiting Government officials, persons having business to transact
with the canal, tourists, and others. The policy of advertising
these hotels was continued, additional copies of the folder prepared
for this purpose during the preceding year being printed and distrib-
uted. During the tourist season the capacity of these hotels is
frequently taxed to the limit.
The cost of operating the Hotel Tivoli during the year was
$217,020.16, which includes $10,000 reserved for new furniture, and
the profits amounted to $20,914.73, as compared with a profit of
$26,737.03 the previous year. At the Hotel Washington the total
revenue for the year was $223,878.35 and the operating expenses were
13528-H. Doe. 347, 70-2---A





REPORT OF GOVERNOR OF THE PANAMA CANAL


$209,026.82, leaving a net revenue of $14,851.53, as compared with
$1,815.55 during the preceding year, an increase of $13,035.98.
BUILDING CONSTRUCTION

The principal items of new construction work consisted of work on
the new warehouse, checking-in shed, and general manager's office at
Mount Hope, the building of forty 2-family gold quarters at New
Cristobal, and commencement of work on the new administration
building at Cristobal. Another considerable project was the removal
from the old town of Culebra on the west side of the canal, later
known as Camp Gaillard and finally abandoned by the Army, of 17
buildings which were reconstructed at Pedro Miguel for quarters,
and of 5 buildings similarly demolished, transferred, and rebuilt at
Red Tank. Work was begun on a new building for the printing
plant to cost $80,000 and on ten 12-family silver quarters in Cristobal.
General maintenance work on all canal and railroad buildings was
carried on as in the past. Due to the severe climatic conditions on the
Isthmus and to the white termites this work is heavy. The new-type
quarters being constructed have a concrete basement with reinforced
columns and beams to the first floor level, and from there they are
built of wood. It is thought that this will eliminate the termites.
The steps are also of concrete and there are no wooden parts which
are not under roof; this is expected to reduce future repair costs.
ANIMAL AND MOTOR TRANSPORTATION
Animal and motor transportation for all departments and divisions
was supplied by the transportation division, this centralization of
activities permitting the reducing of both employees and equipment
to the minimum necessary to meet transportation demands.
Twenty-five cars and trucks were purchased and 15 were retired
during the year. Equipment on hand at the close of the fiscal year
consisted of 279 cars and trucks, 9 trailers, 23 motor cycles, 7 mowing
machines and rakes, and 11 mules.
The division is required to operate on a self-sustaining basis.
Revenues exceeded expenditures for the fiscal year by $32,699.26,
as compared with an excess of $10,940.24 for the year 1927.
PANAMA CANAL PRESS
The printing plant carries in stock and manufactures such necessary
stationery, forms, etc., as are required on the Isthmus in connection
with canal and railroad operations. It is the established policy to
curtail all classes of printing work as much as possible so as to avoid
the printing of excessive quantities of any item. The manufacturing
output of the plant during the year was valued at $165,729.34, and the
issues and sales from the stationery section amounted to $138,033.65,






REPORT OF GOVERNOR OF THE PANAMA CANAL 43

making a combined total of $303,762.99, as compared with a total of
$299,435.33 during the preceding year. The inventory value of all
stock on hand at the close of the year was $97,995.09.

PANAMA RAILROAD

The gross revenues from the operations of the Panama Railroad
proper during the fiscal year amounted to $1,709,095.79; the gross
operating expenses were $1,379,327.05, resulting in a net revenue of
$329,768.74, as compared with $331,910.37 for the year preceding,
a decrease of $2,141.63 for the year 1928. Tonnage of commercial
freight transported during the year aggregated 341,349 tons, as
compared with 298,033 tons during 1927, an increase of 43,316 tons.
The increase was due primarily to greater shipments of building
materials and of bananas.
The following table presents statistics covering various phases of
operations during the past three years:


1926 1927 1928

Average miles operated. Colon to Panama-----.--------- 47.61 47.61 47.61
Gross operating revenue-..------------------------------ $1, 564,074.30 $1,638,753.66 $1,709,095.79
Operating expenses. ------------------------------ $1,433,263.08 $1,306,843.29 $1,379,327.05
Net operating revenue-----.------------------------- $130,811.22 $331,910.37 $329,768.74
Per cent of expenses to revenue---.------------------- ---- 91.64 79.75 80.71
Gross revenue per mile of road ------------------------ $32, 851.80 i 34, 420. 37 $35, 697. 83
Operating expenses per mile of road--- ------------------ $30. 104. 24 $27,448.92 $28,971.37
Net revenue per mile of road-------------------------- $2,747.56 i $6,971.45 $6,926.46


Number of passengers carried:
First-class-----------------------------
Sec-ond-class......... ... ............. .. . ... . . ... ...
Total------------ --------- -- ----......
Passenger revenue:
First-class--------------.--.-----
Second-classw-------.-------. -----------------.
Total .. ........... ....... ........................


177,611 184,430 188,796
304,652 311,343 328, 460
481,263 495,773 517,256

$248,471.44 $249,061.03 $239, 498. 24
194,564.59 189,206.66 214,006.06
443,036.03 438,267.69 453, 504.30


Revenue per passenger train-mile---.--------------------- $5. 18 $5.20 $5.34
Revenue per freight train-mile---------------------------. $11.98 $11. 28 $11. 99
Total revenue train mileage------------------------- $179,932.00 $179, 25x. 00 $183, 858.00
Railroad revenue per train-mile -------------------------- $8.69 $9.14 $9.29
Railroad operating expenses per revenue train-mile...... $7.96 $7.29 $7.50
Net railroad revenue per revenue train-mile-------------- $0.73 $1.85 $1. 79
Freight, passenger, and switch locomotive mileage....... 295,156 294,994 303,486
Work-train mileage.................... .......... ..... 1,992 1,992 2,392
Passenger-train mileage................. ................ 104,563 103,135 105,697
Freight rami mileage---------------------------------- 75,369 76,123 78,161


Little change was made in the trackage in use during the year.
The principal change in equipment was the building and putting into
service of two passenger coaches and three refrigerator cars. The
new 12-stall roundhouse at Cristobal was almost completed at the
close of the year.
TELEPHONES AND TELEGRAPHS

The gross revenue from the operation of telephones, electric clocks,
and electric printing machines amounted to $225,462.55 and the oper-
ating expenses were $194,503.62, leaving a net revenue of $30,958.93





REPORT OF GOVERNOR OF THE PANAMA CANAL


for the year as compared with $24,321.62 for the preceding year, an
increase of $6,637.31.
During the year 978 telephones were installed and 888 removed,
making a net increase of 90 telephones for the year. There were,
2,674 telephones in service at the close of the year, exclusive of those
in the Hotel Tivoli and the Hotel Washington.

ELECTRIC PRINTING MACHINES

Sixteen electric printing machines were in service at the close of
the year, 11 of which were being used by the Panama Canal, 3 by
the United States Navy, and 2 by the Panaman Government. Two
additional machines for reserve were on order.
Twenty-one telegraph stations using Morse were in service, as fol-
lows: Panama Railroad, 9; United States Army, 6; United States
Navy, 6. No changes were made in this service during the year.
LANDS AND BUILDINGS
Panama Railroad lands in the cities of Panama and Colon and
public lands in the Canal Zone are administered by a joint land
office.
PANAMA RAILROAD CO. LANDS AND LEASES

At the close of the fiscal year 1,355 leases and 15 licenses granted
by the Panama Railroad Co. covering the use of its property in
Panama and Colon were in effect. The income derived from these
leases and licenses during the year was $198,837.78, representing an
increase in revenue of $9,271.73 over the preceding year.
Land in the city of Panama not required for Government business
purposes, comprising a total of 4,750.93 square meters, was sold dur-
ing the year at an aggregate price of $286,738.62. The sale of this
property brought about a reduction of $12,439.72 in the annual land
rentals, but the reduction was more than offset by the increase in
rentals on other property and by new leases issued.

AGRICULTURAL LANDS IN THE CANAL ZONE

A total of 2,041 licenses, covering 6,466.5 hectares of agricultural
lands in the Canal Zone, were in effect on June 30, 1928. The rental
from these lands for the year aggregated $32,705.31, of which $459.50
was outstanding at the close of the fiscal year. The average holding
under these licenses was 3.1 hectares (7.66 acres) per license. The
area held under license shows a reduction of 345 hectares from the
preceding year, while the number of licenses shows an increase of 22.
This was due to the relicensing and apportioning to small cultivators.
of some of the larger plantations.


AA





REPORT OF GOVERNOR OF THE PANAMA CANAL


ALHAJUELA BASIN

On July 1, 1927, the land office took over the collection of rev-
enues on bananas brought, out of the Alhajuela Basin by licensees
who sold their land and improvements to the United States. The
revenue for the fiscal year amounted to $3,056.95.
The gross revenue realized from all real estate operations handled
by the joint land office amounted to $234,600.04, not including
$286,738.62 derived from sales of property. These figures do not
include the rental oni the oil tank sites at Mount Hope and Balboa,
nor the sites held under license in the Canal Zone by individuals
and companies on which office buildings and residences are main-
tained. Neither do they include rentals for quarters occupied by
employees of the Panama Canal and Panama Railroad.
Improved business conditions in the cities of Panama and Colon
have enhanced the value of the real estate holdings of the Panama
Railroad. The export through Cristobal during the fiscal year of
3,236,839 bunches of bananas, valued at $1,571,051.70, a large part
of which were grown in the Canal Zone, contributed materially to the
improvement.
PLANT-INTRODUCTION GARDENS AND EXPERIMENTAL STATION
The work at the plan t-introduction gardens and experimental sta-
tion, begun in June, 1923, was carried forward under the direction of
the agronomist.. His report for the fiscal year ending June 30,
1928, is being published as a separate pamphlet. Since June, 1927,
879 accessions have been added to the list of plants in the gardens,
many of them entirely new on the Isthmus. These accessions came
from as widely divergent sources as Ceylon, the Philippines, Hawaii,
the United States Department. of Agriculture, and the Missouri
Botanical Gardens.
Although the gardens are still comparatively new, they are begin-
ning to attract the attention of visitors from many parts of the world
and to distribute plants which should materially improve agricul-
ture in this and near-by countries. During the year 11,700 plants
and about 700 sacks of grass were distributed for planting purposes.
The demand is far in excess of the supply.
Particular attention has been given and will continue to be given
to the propagation of plants valuable for their edible fruits, such as
bananas, pineapples, papayas, avocados, mangos, oranges, grape-
fruit, limes, etc.





REPORT OF GOVERNOR OF THE PANAMA CANAL


QUARTERS FOR EMPLOYEES
GOLD EMPLOYEES

In all districts the demand for family quarters was greater than the
supply. At the close of the year 47 employees were on the waiting
list at Balboa, 36 at Cristobal, 21 at Pedro Miguel, and 5 at Gatun.
There is no prospect that the demand for quarters will decrease.
In fact, the indications are for an increase due to constantly increas-
ing business and a probable increase in force due to the construction
of the Alhajuela Dam.
During the year 40 new 2-family quarters were constructed at New
Cristobal and 17 of the buildings transferred from the west side of
the canal were being erected for gold quarters at Pedro Miguel.
Funds have been provided by Congress to continue the building
program, and it is intended to construct 33 additional 2-family
quarters at New Cristobal and five 1-family houses at Balboa.
The established rental rates were collected for all gold quarters
occupied. The revenue received was sufficient for necessary main-
tenance of the buildings, including some painting for preservation.
but not sufficient to provide any income on the capital invested. A
charge of 2 per cent of the capital value was made, however, as a
part of the operating expenses to provide a reserve for replacement.

SILVER EMPLOYEES

The demand for silver quarters has always been in excess of the
supply. At the close of the year there were 512 applications for
silver family quarters on file at Balboa, 470 at Cristobal, 137 at
Pedro Miguel, and 48 at Gatun. During the year the old 3-story
frame gold bachelor quarters and hotel building at Cristobal was
removed and reerected for silver bachelor quarters at Camp Bierd.
At Red Tank 55 silver family apartments were constructed from four
houses and three barracks which were removed from Camp Gaillard
on the west side of the canal. Work was also commenced on ten
12-family apartments at Cristobal to replace old buildings in that
vicinity which are no longer serviceable.
The operation of silver quarters was continued on the same basis
as during previous years. The cost of maintaining and operating
silver quarters exceeded the rent collected by $95,000, which is the
same amount appropriated in previous years for this purpose. No
extraordinary repair work was necessary during the year and the
buildings and pivimiiises were maintained in satisfactory condition.





REPORT OF GOVERNOR OF THE PANAMA CANAL


CLUBHOUSES
To the maintenance of clubs and playgrounds for American and
West Indian employees and their families the Panama Canal con-
tributed $120,000. The. additional expenses defrayed from current
revenue were $467,974.92, and the income from moving pictures,
soda fountains, candy and cigar counters, swimming pools, tennis
courts, and other activities promoted' was $485,601.71. The
accumulated surplus of clubhouse funds on June 30, 1928, was
$120,886.58. Additional detail of income and operating expenses
may be obtained from Section V of this report. Report of activities
is in Section IV.
FARM INDUSTRIES
PLANTATIONS

All plantations were operated under contract during the fiscal
year, with the exception of the citrus fruit farm at Juan Mina,
consisting of some 50 or 60 acres. The net loss from the operation
of plantations during the fiscal year was $2,877.19, as compared with
a net loss of $2,615.44 during the preceding year.

DAIRY FARM

The operation of the dairy farm for the fiscal year shows a net
profit of $1,765.95, as compared with a net profit of $317.46 last
year, an increase of $1,448.49.
CATTLE

The gross revenue from the sale of cattle during the fiscal year
amounted to $391,322.14 and the cost of sales was $456,878.60,
resulting in a loss of $65,556.46, as compared with a loss of $16,254.85
during the preceding year, an increase in deficit of $49,301.61. This
increase in deficit is due primarily to the introduction of a grub
known as "Dermatobia hominis" through the importation of Vene-
zuelan cattle. This grub killed 900 ,head and rendered approxi-
mately 3,000 more unfit for slaughter. The same grub was brought
into the Zone pastures once before by the importation of cattle from
Nicaragua; the results then were much less serious and the grub
disappeared during the following year. If the climate on the
Isthmus were suitable for its development it would have been
established here for years.
On July 1, 1927, there were 5,908 head of cattle in the pastures.
During the year 5,618 head were purchased and 51 calves were
born, 6,303 head were slaughtered, 901 died, and 15 were transferred
to the dairy, leaving 4,358 head on hand in the pastures at the close
of the year.




REPORT OF GOVERNOR OF THE PANAMA CANAL


During the year 15,939 acres of pasture were recleared and burnt
at an average cost of $1.69 per acre. All pastures thus recleared
show decided improvement in the stand of grass.
OPERATIONS WITH PANAMA RAILROAD FUNDS
Many of the business activities on the Isthmus connected with the
canal are conducted with the funds of the Panama Railroad Co.
Included in these are the wharves and piers at the harbor terminals,
the commissary system, coaling plants, and various minor activities,
as well as the Panama Railroad itself. In this report only the major
feat ures of these operations are noted in their relation to the canal
administration as a whole. Details are given in the annual report of
the Panama Railroad, which is published separately.
The operations of the railroad proper, harbor terminals, coaling
plants, stables, and baggage transfer were continued throughout the
year under the direction of the superintendent of the railroad; the
telephone system under the electrical engineer of the Panama Canal;
renting of land and buildings under the land agent; and the com-
missaries, Hotels Washington and Tivoli, plantations, dairy farm,
and cattle industry under the chief quartermaster of the Panama
Canal.
PANAMA RAILROAD STEAMSHIP LINE
The gross operating revenue of the steamship line for the fiscal
year ended June 30, 1928, amounted to $2,289,791.54, and the gross
operating expenses amounted to $2,188,278.14, leaving a net revenue
of $101,513.40. This net operating revenue of $101,513.40 as com-
pared with the net deficit of $48,967.77 for the fiscal year ended June
30, 1927, shows an improvement of $150,481.17.
The steamship line carried all freight and passengers for account of
the Panama Canal and other departments of the Government of the
United States at material reductions from tariff rates, which amounted
to the important sum of $478,647.70. Had regular rates been charged
by the steamship line for such freight and passenger service performed
for the Panama Canal and other Government departments its oper-
ating profit of $101,513.40 would have been increased to a net profit
of $580,161.10.
For the year ended June 30, 1928, the tonnage carried amounted
to 247,068 tons as compared with 205,196 tons for the previous
year, an increase of 41,872 tons.
CANAL ZONE FOR ORDERS
The system of shipping cargo to the Canal Zone subject to the
orders of the consignor or consignee after arrival was established
March 17, 1925. Under this system merchandise may be shipped






REPORT OF GOVERNOR OF THE PANAMA CANAL


to Canal Zone terminal ports to be held there for orders, the Panama
Railroad Co. acting as warehouseman. Such cargo, or integral parts
of it, may be withdrawn and delivered locally or forwarded as the
consignor or consignee may desire, except that goods for use in the
Canal Zone or the Republic of Panama by others than those entitled
to the free entry privileges are released only upon the presentation
of satisfactory evidence of the payment, of the proper duty to the
Republic of Panama.
This system is useful, and the volume of business is increasing.
Following is a comparison for the fiscal years 1927 and 1928:


1927 1928 Increase


Number of receipts issued ----.-----.---.----. ---------------------
Number of withdrawals-------------------------------------------------
Tons received ----.---------------------------------------. -----------
Tons withdrawn.------------------------------------------------------- -
Packages received.. -.----..-.----.--.-- .-------------.....-.-.-...--....
Packages withdrawn.---__..----.-.--------------- ..----.----------------


602
3,641
8,200
6, 125
76,316
77,885


1,072
5,839
26,864
28,087
94,782
92, 207


470
2,198
18, 664
21,962
18,466
14,322


The following is detail of the operations by months at Cristobal
and Balboa:


Month Numer Tons re Tons Packages
ofhof with- with with-
ceipts r v ceived received


CRISI'OBAL
July-------..--------------------------... 48 264 876 1,610 4,398 2,451
August--------------------------------- 62 255 2,143 1,218 5,540 4,854
September------------------------------- 54 337 1,126 1,706 6,457 6,881
October- ------------------ ------------- 67 331 1,277 1,600 5,943 4,629
November............................... 87 329 1,948 926 10,913 6,050
December............................... 57 367 776 1,942 6,185 9,155
January--------------------------------- 54 316 1,272 1,507 5,551 5.858
February-------------------------------- 67 389 1,335 735 5,904 5, 668
March-----------------... --- -- ----------- 71 370 10, 257 10, 538 1,602 1,196
April----------------------------------- 66 319 1,343 1,226 3,840 5,620
May----------------------------------- 67 369 626 1,130 3,522 5,791
June----------------------------------- 56 408 1,244 1,497 7,943 6,957
Total .............. .............. .756 4,004 24.223 25. 635 67,798 65. 110
BALBOA
July-- ----------------------------- 22 128 179 173 1,711 1,738
August ................... ......... 21 133 112 103 1,384 1,408
September ................ ............ 23 124 175 136 2,014 1,782
October------------------------------.... 19 130 114 120 1,425 1,518
November...................... ....24 134 199 157 3,420 1,712
December.................. ......... 35 173 338 303 2,673 4.512
January------------------ --------------- 30 171 223 272 3,562 3,462
February....... ......................... 23 176 208 227 2,908 3,022
Iarch ....................... ........ 39 216 344 275 3,574 3.311
April................................ 42 148 584 168 2,157 1.319
May-----------------------------------......................... 25 164 116 230 1,492 1,3i67
June.--------------....---- ..... ---------------- 13 138 49 288 664 1,446
Total ------------------------ 1 1.2.42 ;.4 27097









SECTION III

GOVERNMENT

Civil government of the Canal Zone is conducted as prescribed by
the Panama Canal act of August 24, 1912, and other acts and Execu-
cutive orders applicable to the Canal Zone. The assignment of gov-
ernmental duties wherever practicable to departments organized
primarily for the operation and maintenance of the canal has effected
a coordination of functions which results in greater economy and
efficiency.
Data on the expenses and revenues of various features of canal
operation and government are shown in the financial and statistical
statements in Section V.
POPULATION

A census of the civil population of the Canal Zone was taken by
the police force during the month of June, 1928, a summary of which
is given below:

American All others
Grand
Total Em Total Em- C- Total Em- Total Em- Chil total
men ploy- wom- ploy- dren men ploy- wom- ploy- dren
ees en ees ees en ees

Balboa district--------------- 1,852 1,612 1,885 316 1,872 3,365 2,289 2,399 178 4,670 16,043
Cristobal district--------------- 540 482 607 28 697 3,4201 2,202 2,116 89 4,428 11,808
Prisoners----------------------29.------------ --- -. 1191 6 1 2 151


Total employees -------.-


--- 2,0941 .. 3441 -----..---.. 4, 497.. 267- 7,202


Total persons--------.-------- 2,421--. 2, 492-_ 2, 6,904- 4,516- 9,100 28,002
Fiscal year 1927--.---. 2,375 2,111 2, 501 349 2,55 6, 761 4,166 4,464 103 8,938127,624
Fiscal year 1926---------------2,316 2,087 2,664 353 3,01 6,880 4,375 4,373 46 8,449 127,692

1 Includes 221 civilian employees of the Army and Navy in 1928, 72 in 1927, and 91 in 1926.

In addition to the civilian population listed above, the military and
naval forces in the Canal Zone in June, 1928, numbered 9,510, making
a total population of 37,512.

PUBLIC HEALTH

A brief outline of general health conditions in the Canal Zone and
the cities of Panama and Colon is given below. This subject is dis-
cussed in much greater detail in the health depart ment annual reports
for calendar years, which are issued as separate publications.

MALARIA

The total number of malaria cases reported from the Canal Zone
and terminal cities during the fiscal year 1928 compared with the six
previous years, ending June 30, was as follows:
50





REPORT OF GOVERNOR OF THE PAN.1AMA CANAL


1028 1927 1926 19i23 1 124 1923 1922

Em ployees. .............................. 1 1.' 1312 J1 4J i 'i I' 21 I 176
Personnel of Army and Navy ................ 538 730 k54 7,i2 '*J4 870 828
Noncm ployees ............... ........... 529 420 445 4y4 21 657 243
Total-............ ........... ............. -1, 250 1,314 1,611 1, 41' 1.'2.3 1, 743 1,247

I Omirring the cases from Bruja Point, where a gang of men was engaged in construction work for the
Army .i nd housed in a temporary camp outside thesanitated areas, the number of emplouyee reported with
malaria was hmu 1Sl and the total number of eases 1,487. Over half of the men employed at Bruja Point
developed malaria within 5 months. and this furnished an example of what would necur throughout all the
village;nIl n,1 ettlements in the Canal Zone should sanitary measures be relaxed.

There were no deaths among employees from malaria during the
year'. The last denth of an employee from malarin occurred in 1924.

CANAL ZONE

The population of the Canal Zone (civil and military) on July 1,
1927, was 36,600, and this figure has been used as a base for vital
statistics. From this population 315 deaths occurred during the
year, 2,/4 of which were from disease, giving a rate of 7.49 for disease
alone, as compared with 6.84 for 1927 and 6.87 for 1926. The
principal causes of death, and number from each principal cause, were
tuberculosis (various organs), 25; pneumonia (broncho and lobar),
25; and nephritis (acute and chronic), 19.
There were 544 live births reported during the year, and 39 still-
births. Including stillbirths this is equivalent to an annual birth
rate of 15.93 per 1,000 population. The infant mortality rate, based
on the number of live births reported for the year, was 52.33 for white
children and 112.90 for colored children, with a general average of
97.43. Of the total births reported, 6 per cent were stillbirths. Of
the total deaths reported, 23 per cent occurred among children under
5 years of age.
The maternal mortality rate (from conditions due to the puerperal
state) was 1-5.44 per thousand births, stillbirths included.

PANAMA CITY

The estimated population of the city of Panama for the year was
59,635. From this population 1,282 deaths occurred during the year,
of which 1,235 were from disease, giving a rate of 20.71 for disease
alone, as compared with 20.26 for the fiscal year 1927.
The three principal causes of death in 1928, compared with the past
few ears, were as follows:

1928 I 127 1926 192. 1924

Pneumonia (broncho and lohart............................. IS.". 20.( I-1 187 276
Tuberculosis various organs)......... .............. ..... 17 177 201 201 103
Nephril isi (ncule and chronic ........ ............ ..... .... . .11 .. ...............
Diarrhea and enteritis........................... ...... ........ 149 0". 0 121





REPORT OF GOVERNOR OF THE PANAMA CANAL


There were 2,465 live births reported during the year and 116
stillbirths. Including stillbirths, this is equivalent to an annual birth
rate of 43.28 per 1,000 population. The infant mortality rate, based
on the number of live births reported, was 126.17. Of the total births
reported, 4 per cent were stillbirths. Of the total number of deaths
reported, 34 per cent occurred among children under 5 years of age.
The maternal mortality rate (from conditions due to the puerperal
state) was 3.87 per thousand births, stillbirths included.

COLON

The estimated population of the city for the year was 31,940.
From this population 437 deaths occurred during the year, of which
416 were from disease, giving a rate of 13.02 for disease, as compared
with 13.65 for 1927.
The three principal causes of death in 1928, as compared with the
past few years, were as follows:

1928 1927 1926 1925 1924

Tuberculosis (various organs) --.-----------------.----------- 69 76 71 87 57
Pneumonia (broncho and lobar) -------------------- -------- 53 50 36 54 42
Cancer (various organs) -------------.---------------------.... 31 ........ ................ .....
Diarrhea and enteritis.. ----------------------------------------- 17 26 27 33


There were 751 live births reported during the year and 47 still-
births. Including stillbirths, this is equivalent to an annual birth
rate of 24.98 per 1,000 population. The infant mortality rate, based
on the number of live births, was 122.50. Of the total births reported,
5 per cent were stillbirths. Of the total deaths, 25 per cent occurred
among children under 5 years of age. The maternal mortality rate
(from conditions due to the puerperal state) was 6.27 per thousand
births, stillbirths included.

CANAL HOSPITALS

Following is a summary of patients treated in Panama Canal
hospitals during the fiscal year 1928:

Number in
hospital Admitted Died Discharged Transferred R 1ining28
July 1, 1927 June 30, 1928

White Black White Black White Black White Black White Black White Black

Gorgas.-------- 184 187 5,687 4,388 88 222 5,512 4,009 57 96 214 248
C'olon----------........ 27 39 1,060 1,399 21 63 879 1,228 168 115 19 32
Corozal:
Insane----- 121 380 131 169 8 54 116 61 2 12 126 422
Cripples... 3 23 1 10 ------. .. -------- 1 ---- 7 4 25
Clironi.... 3 32 1 21 ----.. 4 1 4 ----- 10 3 35
Palo Seco
LeperColony 6 98 ------- 8 1 5 .--- 3 ------- ------- 5 98
TonI ..... .44 7 5 .O 10 5.95 IIi 348 6,508 5,306 227 240 371 860
I I I I


52





REPORT OF GOVERNOR OF THE PANAMA CANAL 53

QUARANTINE AND IMMIGRATION SERVICES

Contuing operations as formerly, an effective quarantine was
maintained without any delay to shipping. Particular attention
was given to the inspection of vessels and their cargoes coming from
ports infected with bubonic plague. It was not necessary to detain
any vessel or any member of crews on account of the presence on
board of a quarantinable disease. No additional quarantine rules
and regulations have been promulgated.
The rat proofing of ships and a closer inspection for rat infestation
aboard has resulted in a slight decrease in the number of fumigations.
The time required for the fumigation of a vessel has been materially
lessened since the introduction of a new fumigant. This fumigant,
Zyklon-B, is a liquid hydrocyanic acid incorporated in a calcined
and granulated silicious earth. The material is placed in conveniently
sized cans under pressure in concentrated form and is handled easily.
The use of this fumigant lessens the labor in connection with fumiga-
tion as there is only a negligible amount of residue remaining and no
equipment, is demanded. In the past it has been necessary to load
bulky equipment on the vessel for generating the fumigant, and
following the fumigation to remove it.
The international Standard Form Bill of Health was adopted for
use by the Panama Canal on May 16, 1928. This form of bill of
health was promulgated by the Pan American Sanitary Conference
and has been ratified by a number of the member countries. Its
use will be of great aid to shipping and will make for uniformity in
quarantine procedure.
In addition to their duties as quarantine officers, the physicians
of the quarantine division continued in the capacity of immigration
officers for both the Canal Zone and the Republic of Panama. The
following table summarizes the activities of the division for the
fiscal year 1928:

Cristobal Balboa Total

Vessels inspected and passed........................................... .. 1, S39 1,065 2,461
Vessels granted radio pratique.................. ......... ... ..... 6 47 123
Vessels passed on certificates of masters.................. ....... 2.794 2, 191 4., 3
Total vessels received............................................... 4, 266 3,.303 7, 5.4l
Supplementary inspection of vessels-................. .................... 4.084 ". ,ri3.
Vessels fum igated....... ... ................... ............-............... 7 J 12r
Box cars fum igated............................................... .. 11 11I 121
Crew inspected and passed...................... ......... .. ...... .. A 4. As1i .2. 6rw: 13 A. 3,sof
Crew passed by radio............................. ......... . .. 2'. .13 24i 31,
Crew passed on certificates of masters.................................... 17, 1 '.5 i m : 27?.751
Passengers inspected and passed.................. ..29,137 17.'i.*i. -219. 805
Passengers passed on certificates of masters. ...................... ....... 92 21. R2 0. 7
Total persons received-.................................... ...... 1. 57, f-. I i i.n 1601 1 871.'s
Persons deported under immigration laws ............................ fii 4:31 1. 1i:
Persons detained :iccount immigration laws and later allowed to enter or
to resume their jnilrney for which they transsbhipped here.......... 152 918 1,070
Persons vaccinated-...................................................... .......... 324 324





54 EEPOQIT OF GOVERNOR OF THE PANAMA CANAL

MUNICIPAL ENGINEERING

WATER SUPPLY

A number of projects were carried out for the improvements and
enlargement of the Canal Zone water system in addition to the regular
inaintenance work on pipe lines, reservoirs, filtration plants, and
pumping stations. The more important of the improvements were
the construction of gravity filters at Gamboa; relocation of water
lines on account of the new administration building at Cristobal;
installation of new 12-inch high-pressure water line to Old Cristobal;
construction of manifold at Mount Hope pumping station; construc-
tion of clear-wa ter well and pump sump at Agua Clara filtration plant;
construction of new 20-inch high-pressure main from Mount Hope
to New Cristobal; installation of water lines to serve new improved
areas in New Cristobal; construction of drains and improvement of
grounds around the Mount Hope filtration plant.
The amount of water consumed during 1928 as compared with the
two preceding yez irs is shown in the following table:

1928 1927 1926

Gallons Gallons Gallons
Canal Zone --.------------------- ---------------. 3, 227,313,000 3,087,507,913 3,000,372,000
City of Panama------ --- ---------------------------- 1, 354, 354,000 1,211,019,000 1,163.545,000
City of Colon------------------------------------------ 661,253,000 628,014,000 573,429,000
Sales to ships------------------------------------------ 150,737,000 143,297,227 144, 191,672
Total-------.-----------.---------------------- 5,393,657,000 5,069,838,390 4,883,537, 672

SEWERS

In addition to the usual maintenance work performed on the
sewer systems, the following extensions and improvements were
made: Construction of 3 by 2 foot box sewer at Old Cristobal, to
eliminate flooding around the site of the new administration building;
repair and extension of existing storm drains near Ancon post office
and laundry; and rebuilding of a section of storm sewer at La Boca.

ROADS, STREETS, AND SIDEWALKS, CANAL ZONE

Usual maintenance work was performed on roads, streets, and
sidewalks during the year, and in addition about $80,000 were used
on 36 projects of street, road, and sidewalk repairs and improve-
ments ranging from $200 to $12, 000 each.

CITIES OF PANAMA AND COLON

The following is a summary of the more important work handled
during the year in addition to the necessary maintenance work on the
sewer and water systems and on the streets: Paving Sixth Street,
Colon, from intersection of Bolivar to Broadway; paving Eighth





REPORT OF GOVERNOR OF THE PANAMA CANAL


Street, Colon, from Bolivar to Broadway; constructing sidewalks in
Broadway Park area, Colon; paving, water, and sewer installations
between Ninth and Tenth Streets, Central Avenue and B Street,
on National Avenue, and Third of November Street, Panama City.
ARMY AND NAVY
Varied work, such as the furnishing of gravel, extending fence
around Pedro Miguel Locks, building roadways, working on sea-
plane runways, and furnishing rock to Coco Solo, was performed for
the Army and Navy during the year.
REPAIRS TO DOCK 15
The largest single repair job during the year was the repairing and
reanchoring of Dock 15 at Balboa. This dock was constructed rather
hurriedly in 1911 as it was needed badly to handle lumber shipments
from the west coast. The first, outward movement of the dock was
observed in 1914 and by November, 1927, the outward movement
at the center was approximately 2 feet, of which about 5 inches had
occurred after November, 1926. The deck system was removed in
two bays, in an area measuring 60 by 35 feet, as was also the back
fill in the area where the greatest movement occurred. The old
caissons were replaced with new ones, which were filled with concrete.
Form work was then begun for replacement of the deck system.
The work was nearing completion at the close of the year.
WATER PURIFICATION PLANTS AND TESTING LABORATORY
The water purification plants performed the usual work of purify-
ing the water used on the Canal Zone and in the cities of Panama and
Colon. The testing laboratory carried on a variety of work, in which
were included the inspection of 145 vessels, gas tanks, and their
confined spaces; the testing of 2, 507 samples of mineral oils, cement,
oxygen, hydrogen, water, various metals, concrete, and numerous
other materials not classified; and the maintenance of chlorinators
at swimming pools and the Gamboa filtration plant.
BRIDGE ACROSS MIRAFLORES SPILLWAY
During the closing months of the fiscal year 1927, work was begun
on a bridge across Mfiraflores spillway discharge channel about 200
yards below the damn to carry both a track from the Panama Railroad
and a highway to Miraflores Locks. The building formerly housing
the steam electric plant is thus connected with the locks by railroad
and highway, making the building available for use as a storehouse
for the locks. Work on this project was continued throughout the
fiscal year 1928 and at the close of the year was 90 per cent completed.
The bridge is a concrete trestle bridge 530 feet in length, carrying a





REPORT OF GOVERNOR OF THE PANAMA CANAL


16-foot concrete roadway for vehicular traffic, with the 5-foot rail-
road track carried along the center line of the decking.
PUBLIC ORDER
During the year 3, 400 persons were arrested, of whom 204 were
females. Of these 2, 392 were convicted, 336 dismissed, 27 were
under trial at the close of the year, and 645 were disposed of other-
wise on proper authority.
The more common causes of arrest were violations of the vehicle
and traffic regulations, 1, 192; violation of immigration regulations,
404; disorderly conduct, 394; loitering, 179; petit larceny, 113;
violation of the national prohibition act, 107. The persons arrested
included representatives of 84 countries and territories and 168
different trades and professions.
There was one case of manslaughter during the year for which a
sentence of nine months in the penitentiary was inflicted. Two
cases of suicide occurred during .the year, one of whom was a white
Englishman and the other a black Panaman, inmate of Corozal
Hospital. The coroner investigated 58 deaths during the year;
accidental drowning was found the cause in 29 instances.
A monthly average of 63 prisoners served sentences in the common
jails during the year, and all those physically able were employed
on maintenance of trails, road repairs, and other municipal improve-
ments; others were employed on janitor and miscellaneous work at
police and fire stations and target ranges. The total value of labor
performed by the prisoners was $22,131.90
Fifty convicts were committed to the Canal Zone penitentiary
during the year, with sentences aggregating 132 years and 10 months;
40 convicts were discharged, 9 were pardoned, and 1 was released
under parole. Labor performed by convicts during the year was
valued at $34,912.34, on the basis of standard rates of pay. Con-
victs were employed principally on municipal improvements, clearing
trails, road work, and in the cultivation of fruits, vegetables, etc.,
at the penitentiary farm and the experimental farm at Summit.
At the close of the year 97 convicts remained in custody as compared
with 87 at the close of the previous year.
The total traffic accidents reported in the Canal Zone during the
year was 366. These resulted in the death of four persons and in-
juries to 114. A classification by causes of accidents shows that
practically all of these accidents were avoidable, 305 being due to
careless or reckless operation of vehicles, 22 to careless pedestrians,
and 18 to intoxicated drivers; 24 were due to wet streets (skidding).
In addition to the routine police work in the Canal Zone villages,
a continuous patrol of the harbors of Balboa and Cristobal was main-





REPORT OF GOVERNOR OF THE PANAMA CANAL


trained throughout the year, principally for the enforcement of navi-
gation regulations and for the prevention of smuggling and irregular
traffic. Police launches were maintained also for the patrol of the
Chagres River and Gatun Lake, and details of police officers %were
continued throughout the year at all canal locks and at the spillway
at Gatun. Monthly patrols of the interior sections of the Canal
Zone were continued to determine if any unauthorized clearings or
cultivations were being made, or any unauthorized new buildings
were being constructed. Motor-cycle patrols for special emergency
service and for the enforcement of vehicle traffic regulations were
maintained at various points.
OFFICE OF THE DISTRICT ATTORNEY
The district attorney and his assistant prosecuted 177 criminal
cases before the district court, with 141 convictions, 5 acquittals,
and 31 cases dismissed. There were 23 criminal cases pending at
the close of the fiscal year exclusive of two in which bail has been
forfeited and the parties departed from the jurisdiction of the court
and one remanded to the district court of the Canal Zone on appeal
to the United States circuit court at New Orleans. Of the criminal
cases prosecuted, 69 were for violation of the national prohibition
act, 20 for assault, 18 for grand larceny, and 17 for burglary.
The district attorney represented the Panama Canal or the United
States Government in two civil cases, one of which was still pending
at the close of the year.
DISTRICT COURT
Sessions of the district court were held at Ancon and Cristobal,
and the following business was transacted during the fiscal year:
Cases pending July 1, 1927: Civil, 38; probate, 77; criminal, 13.
Cases filed during the year: Civil, 116; probate, 275; criminal, 167.
Cases settled during the year: Civil, 89; probate, 289; criminal, 157.
Cases pending June 30, 1928: Civil, 65; probate, 63; criminal, 23.
Of the civil cases disposed of, 71 were decided, 17 dismissed, and
I was consolidated; of the criminal cases disposed of, 3 resulted in
acquittal, 127 in conviction, and 27 were dismissed.
Marriage licenses issued numbered 658, deeds recorded numbered 4,
and collections from fines, fees, licenses, etc., totaled $5.726.44.
MARSHAL
In connection with 90 civil cases filed in the district court the
marshal served 82 summonses, 44 writs, and 104 subpoenas for wit-
nesses. In connection with 52 criminal cases, 10 juries were sum-
moned, and witnesses were summoned in 11 cases. Nine admiralty
13528-H. Doc. 347, 70-2-5





REPORT OF GOVERNOR OF THE PANAMA CANAL


cases were handled during the year. Two sailing vessels were seized;
one of these was released on payment, of charges and costs, and the
other was sold to satisfy the judgment of the court. Thirty-five
writs were served, in connection with admiralty cases. Writs and
summonses were received from district courts in the United States
in eight cases for service in the Canal Zone. Fees collected
amounted to $498.16 and fees paid to witnesses and interpreter
amounted to $145. The handling of trust funds by the marshal was
discontinued on December 31, 1927. The persons to whom money
in the fund was due since 1922 were located and payments of the
amounts due were made to them. A small balance of $86.14, con-
sisting of unallocated interest, was deposited with the collector of
the Panama Canal.
MAGISTRATES' COURTS
In the magistrate's court at Balboa, 7 cases were pending at the
beginning of the year, 1,757 cases were docketed, and 1,733 cases
were disposed of, leaving 31 cases pending at the close of the year.
Of the criminal cases settled, 1,443 resulted in conviction, 40 in ac-
quital, 147 were dismissed, and 74 held to the district court. During
the year petitions were made to the district judge for the commit-
ment to Corozal Hospital of 126 persons for observation.
In the magistrate's court at Cristobal, 10 cases were pending at
the beginning of the fiscal year, 1,298 cases were docketed, 1,308
were disposed of, leaving no cases pending at the close of the year.
Of the criminal cases settled, 941 resulted in convictions, 100 in
acquitals, 94 were dismissed, and 100 held to the district court.
Fines and other collections totaled $14,218.75 at Balboa and
$9,181 at Cristobal.
FIRE PROTECTION
During the year 98 fires, 6 emergency calls, and 14 false alarms
were reported. Of the fires, 68 occurred in property of the Panama
Canal, 13 in Panama Railroad property, 1 in United States Army
property, 1 in property of the United States Navy, and 15 in private
property.
The total loss from all fires amounted to $4,540.38 during the year,
distributed as follows: Panama Canal, $1,182.68; Panama Railroad
Co., $90.10; United States Army, $2,500; United States Navy, $300;
private property, $467.60. The total value of the property involved
was $3,056.973.50. *
Periodical inspections of all Government buildings, docks, yards,
etc., were conducted, and fire extinguishers and other equipment
were maintained in good condition throughout the year. Seventy-
two extinguishers and 2,000 feet of hose were added to the equip-
ment, mostly for replacements.





REPORT OF GOVERNOR OF THE PANAMA CANAL


In addition to the paid firemen, who numbered 44 at the close of
the year, an average of 18.3 volunteer fire companies were main-
tained at the several villages, the personnel of which numbered 200
on June 30.
Due to deterioration of the beams and pillars, the interior of the
Cristobal central fire station was completely remodeled during the
year, at a cost of $22,500.
PUBLIC SCHOOL SYSTEM
Separate public schools for white and colored children are provided
in each of the major settlements in the Canal Zone. For white
children there are elementary schools in Ancon, Balboa, Pedro
Miguel, Paraiso, Gatun, and Cristobal, with high schools at Balboa
and Cristobal. The school at Paraiso was opened during the past
year, primarily for the instruction of children of Spanish employees
of the dredging division. It is conducted by one teacher and has a.
net enrollment of 29 pupils. For colored children graded schools.
are operated in La Boca, Red Tank, Paraiso, Las Cascadas, Gamboa,
Gatun, and Cristobal. During the past year the white school at
Culebra and the colored school at Empire were discontinued on
account of the abandonment of the Army camps at Culebra and
Empire with the resultant depopulation of the adjacent area. The
closing of the white school at Camp Gaillard (Culebra) with 156
pupils, most of whom left the Isthmus on account of the transfer of
their parents to other stations, diminished the usual increase in total
net enrollment in white schools for the Canal Zone. This net enroll-
ment was 2,585, as compared with 2,577 in the preceding year.
This is the first year in the history of the Canal Zone schools in
which there has been so slight an increase in net enrollment in either
white or colored schools.
In the colored schools there was an increase in net enrollment of
698 pupils. This large increase was due to the employment of 13
additional teachers at the beginning of the year and the placing of
additional schoolrooms in service. There are still, however, 1,27S
colored children between the ages of 6 and 16 in the Canal Zone
for whom there are no facilities, due to lack of funds to provide
more rooms and teachers. The need of remedying this situation has
been recognized and facilities for colored children are being expanded
as rapidly as appropriations will permit. It is hoped that in the
near future there will be room in the schools for all of the children
of colored employees living in the Canal Zone.

WHITE SCHOOLS
Teachers in the white schools are required to be college graduates
for the high schools and normal school graduates for the graded





REPORT OF GOVERNOR OF THE PANAMA CANAL


schools and to have had two years' experience in schools in the
United States. At the close of the year 84 teachers were employed
in the white schools as compared with 87 at the end of the previous
year. At the close of the school year 63 pupils graduated from the
Balboa high school and 13 from the Cristobal high school, a total
of 76 as compared with 71 in 1927. During the year 15 colleges and
universities in the United States agreed to accept graduates of the
Canal Zone high schools upon a "certificate" or "accredited" basis.
The seventh and eighth grades in the Balboa and Cristobal schools
were reorga n i zed in the past year along the lines of junior high schools.
COLORED SCHOOLS
The net enrollment for the year was 3,030 as compared with 2,332
in the fiscal year 1927. The increase was due primarily to the con-
struction of 8 new\ classrooms at Silver City, Cristobal, and 6 addi-
tional rooms at Gatun, and the employment of 13 additional teachers.
Manual training, which had been begun in the La Boca school in
1926-27, was introduced into the schools at Silver City and Gatun
in the past year. The pupils are supplied with work benches and
tools for simple carpentry. The instruction is for the boys in the
seventh and eighth grades. The colored schools were operated on
the 12 months' basis during the past year, an innovation in Canal
Zone schools. The number of colored teachers in the past year was
60 as compared with 47 in the previous year. These teachers are
all West Indians. The curriculum does not extend beyond the ele-
mnentary school grades.
POSTAL SYSTEM
Eleven post offices were in operation at the end of the year, all of
which, except, Gamboa, were authorized to transact money-order
business. No new post offices were opened during the year. The
post office at Culebra was closed on September 30, 1927, as the
Army post at Camp Gaillard which this office served was abandoned
on that date. Service for the few remaining residents on the west
side of the canal \vas afforded by the Pedro Miguel office up to the
time of their removal from that area.
Due to the removal from the canal of the large number of troops
formerly served by the Culebra post office and the discontinuance of
C. 0. D. pnrcel-post service with the United States July 1, 1927,
total receipt were sllightly smaller than during the preceding year, the
total being $181,922.78 during 1928 as compared with $182,589.04
during 1927. Gross receipts exceeded gross expenditures by $1,234.31
as compared with a deficit of $223.25 for the previous year. The
returns for l!o2.S indicate that the service is self-sustaining despite





REPORT OF GOVERNOR OF THE PANAMA CANAL


the fact that a large proportion of all mail handled locally is dis-
patched under official frank (estimated at 60 per cent), from which
the bureau of posts derives no revenue, but. for which it must bear
the burden of transportation and other charges. If the cost of
handling this official matter were charged against the various divi-
sions concerned, the surplus of receipts over expenditures would
amount to about $40,000.
The sale of United States postage stamps and postal cards sur-
charged "Canal Zone" was continued, but stamped envelopes were
manufactured by the Panama Canal press. It is proposed to dis-
continue the use of such surcharged postage stamps eventually and
provide a distinctive series of Canal Zone postage stamps and other
stamped paper. During the latter part of the year orders were
placed for the engraving and printing of two distinctive stamps for
this service. The stamps are to be 1 and 2 cent denominations and
are to bear the likeness of General Gorgas and General Goethals,
respectively.
Deposit money orders, issued without the payment of fee in lieu
of postal-savings certificates, had a total value of $659,015. The
total amount on deposit at all post offices at the close of the year,
including deposit money orders, old postal-savings accounts, and
unpaid fee-paid money orders in favor of the remitter was $481,526
as compared with $471,743.10 at the close of the previous fiscal year.
Since the system was placed in effect in 1916, the earnings from the
money-order account, through interest paid by banks, have exceeded
interest paid or payable by $169,079.60 to the close of the fiscal
year 1928.
During the year there were 113,485 money orders issued, amounting
to $2,412,104.17, on which fees amounting to $10,522.91 were col-
lected. Payments amounting to $1,081,599.59 were made on 37,929
money orders during the year.
In the registry division of the post offices, 234,858 letters and parcels
were handled, of which 40,504 were official mail under frank and
accepted for registration without fee.
During the fiscal year, a total of 3,876 dispatches of mail were made
to United States and various foreign exchange post offices by the office
at Cristobal and 4,437 foreign dispatches were received. At Balboa,
1,785 dispatches were made to United States and foreign countries
and 1,020 dispatches were received from foreign offices.
The routing of mail to and from the United States via Key West and
Habana. continues to show gratifying results. On account of the
increase in the number of letters mailed locally for conveyance by
the United States air-mail routes, special dispatches were made to
New Orleans to connect with the air routes from Pilottown to New
Orleans and thence with the New Orleans-New York air-mail route.





REPORT OF GOVERNORf OF THE PANAMA CANAL


When the route is established to Miami and Key West, special air-
mail sacks will be made up and routed via Habana. A supply of
stamped envelopes was printed during the year for use in connection
with air-mail letters and have proven popular with post-office patrons.
It is expected that the proposed air-mail route to Panama from Key
West, via Habana and certain Central American ports, will be placed
in operation during the coming year.
CUSTOMS
Vessels entering and clearing Canal Zone terminal ports numbered
14,323 and 14,327, respectively, as compared with 12,497 entered
and 12,506 cleared during the previous fiscal year, an increase of
nearly 15 per cent.
All merchandise discharged at Cristobal and Balboa, destined to
persons or firms in the Republic of Panama not connected with the
Panama Canal, the Panama Railroad Co., or the United States Army
or Navy, is in the custody of the Canal Zone customs until submission
of the necessary papers from Panaman officials showing that duty has
been paid. Permits for 9,663 releases were granted at the customhouse
at Cristobal during the year, and 401 releases were authorized at the
customhouse at Balboa. Free-entry requests numbering 3,652 were
approved for employees of the Panama Canal, the Panama Railroad
Co., and members of the United States Army and Navy who have
the privilege of importing articles for their personal use without pay-
ment of duty.
Customs duty was paid to the Republic of Panama in the amount
of $114,317.65 on 33,395 mail parcels containing dutiable articles
imported through the Canal Zone post offices.
No arrests were made for violations of the customs regulations
during the year, but numerous attempts to smuggle small quantities
of merchandise of various classes were frustrated, and such merchan-
dise was confiscated and delivered to the proper authorities of the
Republic of Panama.
Three arrests were made by police and customs officers during
the year for alleged violations of the narcotic drug act. Conviction
was secured in one case and the offender was sentenced to hard labor
for five years in the Canal Zone penitentiary.
In order to facilitate the discharge of passengers from vessels
arriving after the usual working hours, special customs service was
furnished to 274 vessels at Balboa and 509 at Cristobal, 783 in all.
Fees totaling $6,235 were collected for this special service.





REPORT OF GOVERNOR OF THE PANAMA CANAL


SHIPPING COMMISSIONER-SEAMEN
The shipping commissioner and his deputies have the same powers
with respect to American seamen as shipping commissioners in the
United States and American consuls in foreign ports. During the
year 2,452 seamen were shipped on American vessels and 2,293 dis-
charged at Canal Zone ports. There were 142 American seamen
lodged and subsisted at the expense of the United States Government.
Sick or destitute seamen returned to the United States under the
appropriation for the relief of destitute American seamen numbered
160, and 101 were signed on vessels as seamen or workaways and
returned to the United States without expense to the Government.
The wages earned by seamen discharged at Canal Zone ports
aggregated $79,018.14; the total approved for deductions on account
of advances, allotments, fines, slop-chest account, etc., was $19,595.52,
and the balance of $59,422.62 was either paid to the seamen under
the supervision of the deputy shipping commissioners or received on
deposit for their account. The wages and effects of 10 American
seamen who died in Canal Zone hospitals, or who died at sea and were
brought to the Canal Zone for interment, were handled by the ship-
ping commissioner.
PROHIBITED ALIENS
Chinese passengers arriving at Canal Zone ports during the fiscal
year 1928 numbered 531, in addition to four on hand July 1, 1927,
making a total of 535 in transit to the Republic of Pamama and other
countries. Of this number, 228 were admitted to the Republic of
Panama by authority of that Government., and the others, with the
exception of four awaiting transportation at the end of the year,
either proceeded on their journeys or were returned to the ports of
embarkation.
Chinese crews were checked on arrival and again on the vessel's
departure, to insure that no illegal landings were made. The crews
of 853 vessels were so checked during the year as compared with 602
during the previous year.
ADMINISTRATION OF ESTATES
The estates of 92 deceased or insane employees of the Pairnama
Canal and Panama Railroad Co. were settled during the year and
there were 15 estates in course of administration on June 30, 1928, in
addition to 26 that were being investigated in which no money or
property had been received.





REPORT OF GOVERNOR OF THE PANAMA CANAL


LICENSES AND TAXES
Licenses issued for motor vehicles, bicycles, animal-drawn vehicles,
permits for the peddling of foodstuffs, the vending of merchandise,
etc., numbered 7,419 during the year and the total fees collected
t grcgated $36,875.89. Automobiles accounted for 5,458 of the
licenses and $32,305.89 of the fees, an increase of 480 licenses and
$2,275.10 in fees for them.
IMMIGRATION VISAS

During the year ended June 30, 1928, a total of 49 visas were
issued to alien residents of the Canal Zone going to the United States.
Of these, 21 were quota, 20 nonquota, and 8 nonimmigrant visas.
One application for a visa was refused on account of the applicant
being diseased. Fees collected for visas amounted to $490.
RELATIONS WITH PANAMA
Matters handled between the government of the Canal Zone and
that of the Republic of Panama related to aid in designing a water
system for Bocas del Toro, sales of Panama Railroad property in
Panamia City, concession of lands at Taboga and Taboguilla, re-
ciproctil agreements as to automobile licenses, attachment of property
in the Canal Zone, reception of Colonel Lindbergh in January, de-
portation of undesirables, passport inspection procedure, increase in
water rates, complimentary transportation on the Panama Railroad,
estimates on municipal improvements, condition of patients main-
tained by Panama at Palo Seco Leper Colony and Corozal Hospital
for the insane, maintenance of certain aids to navigation, charge
accounts at commissionaries for diplomats, sanitation, and other
matters principally of local interest.
The matter of a new treaty between the United States and Panama,
embracing a revision of existing agreements between the two Govern-
muents, remained in abeyance during the past fiscal year.














SECTION IV


ADMINISTRATION
CHANGES IN ORGANIZATION AND PERSONNEL
There were no changes in the organization of the Panama Canal
during the fiscal year 1928.
Capt. Clark H. Woodward, United States Navy, was appointed
marine superintendent, effective May 16, 1928, relieving Capt.
John Downes, United States Navy.
Commander Isaac C. Kidd, United States Navy, was appointed
captain of the port, Cristobal, effective -July 17, 1927, relieving
Commander Walter F. Jacobs, United States Navy.
Commander Sherwood A. Taffinder, United States Navy, was
appointed captain of the port, Balboa, effective December 21, 1927,
relieving'Commander Elmer W. Tod, United States Navy.
Mr. John T. Barrett was appointed marshal of the Canal Zone
on July 6, 1927, vice Mr. Irvin M. Lieser. Mr. Barrett qualified
for office on July 16, 1927.
Mr. Charles J. Riley was appointed district attorney February 17,
1928, vice Mr. Francis E. Mitchell.
FORCE EMPLOYED
The force employed by the Panama Canal and the Panama Railroad
Co. on the Isthmus increased from 13,403 in June, 1927, to 13,922
in June, 1928, an addition of 519, or 3.87 per cent. The following
tabulation shows the distribution of the personnel on the third
Wednesday in June of both years. The increase in gold, or American
personnel, comprising the supervisory, technical, higher clerical, and
highly skilled mechanical force, was 102; and that of the silver, or
65






66 REPORT OF GOVERNOR OF THE PANAMA CANAL

alien employees, was 417. The precentages of increase were 3.47
and 3.98, respectively:


June 15, 1927 June 20, 1928
Department
Gold Silver Total Gold Silver Total

Operation and maintenance:
Office------------------------------- 37 40 77 -41 39 80
Electrical ---------------------------- 142 180 322 153 183 336
Municipal engineering ---------------- 78 803 881 81 696 777
Lock operation--.--------------------- 211 606 817 226 707 933
Dredging----------- ------------I 182 898 1,080 185 876 1,061
Mechanical -------------------------- 442 794 1,236 416 834 1,250
Marine ------------------------- --- 196 596 792 211 701 912
Fortifications ------------------------- 14 35 49 26 275 301
Supply department:
Quartermaster-.------------------ 187 1,716 1,903 197 1,744 1,941
Subsistence.. ------------------------- 7 97 104 8 105 113
Commissary ------------------------- 203 1,056 1,259 216 1,133 1,349
Cattle industry ----------------------- 7 127 134 5 131 136
Hotel Washington -------------------- 8 95 103 8 94 102
Transportation_--- ----------- ------- 46 208 254 54 208 262
Accounting department------------------- 200 8 208 193 8 201
Health department---.-------------------- 240 784 1,024 272 873 1,145
Executive department-------------------- 490 279 769 497 297 794
Panama Railroad:
Superintendent ----------------- ---- 48 234 282 50 294 344
Transportation------------------------ 64 113 177 66 120 186
Receiving and forwarding agent------ 86 1,588 1,674 84 1,327 1,411
Coaling stations----------------------- 48 210 258 49 239 288
Total.------------------------------2,936 10,467 13,403 3,038 10,884 13,922


The larger number of employees on the rolls of some of the divisions
at the end of the fiscal year as compared with June, 1927, was due to
increased construction work in some divisions and to increased
business in others. Explanations 6f the larger increases on the gold
roll are given below:

OPERATION AND MAINTENANCE, OFFICE

The increase by four positions is due to increased building con-
struction and work on the Alhajuela Dam project. This larger force
will probably be needed for a considerable length of time.

ELECTRICAL DIVISION

Increase is due to vacation relief and additional work; most of it is
temporary.
MUNICIPAL ENGINEERING

The incrnca;.e of three positions is due to increased construction
work and employment of an apprentice.

LOCK OPERATION

The increase is due to employment of additional operators on
account of increased traffic and is probably permanent.





REPORT OF GOVERNOR OF THE PANAMA CANAL


DREDGING DIVISION

One additional temporary position is to take care of vacation relief
and one is on account, of supervision of the construction of a new
dredge in the United States. One permanent gold-roll increase is
due to transfer of a silver watchman to the gold roll.

MARINE DIVISION

The increase is due to increased traffic through the canal and is
probably permanent.
FORTIFICATIONS DIVISION

The force in this division fluctuates with the funds available. The
appropriations for the fiscal year 1929 indicate the retention of the
present organization.
SUPPLY DEPARTMENT

Increase is due to increased construction work and increased
business. There is no present prospect of a decrease in force.

HEALTH DEPARTMENT

Due largely to increased number of patients at Gorgas Hospital
and appears permanent.

EXECUTIVE DEPARTMENT

Due to increased patronage of the library, one clerk, and to increased
number of pupils of school age, six teachers. Both permanent.

PANAMA RAILROAD

The increase is due to vacation relief and to increased construc-
tion work, and is temporary.

WAGE ADJUSTMENTS

GOLD EMPLOYEES

Since the effective date of the Panama Canal act establishing
conditions for the operation and maintenance of the canal it has
been the policy to pay gold employees not more than 25 cer cent
over the compensation for similar employment, in the United States,
and to pay them the full 25 per cent within the limitations of appro-
priations and within local limitations on account of coordination.
During years past, owing to insufficient appropriations, it has not
been possible to pay the full 25 per cent increment, to a number of
employees of the civil government. During the past year these
employees were paid approximately 19 per cent over United States





68 REPORT OF GOVERNOR OF THE PANAMA CANAL

rates as compared with 16 per cent in the previous year. Arrange-
ments have been made to pay them approximately 22 per cent over
United States rates during the fiscal year 1929.
The most important wage adjustment made during the past year
\\-is completed at the end of the year, to be effective with the begin-
ning of the new fiscal year. This was a revision of canal rates affec-
ting approximately 1,200 gold employees, in consequence of the
readjustment, of rates in Washington as the result of the Welch
law of May 28, 1928, amending the earlier classification act.
The more important of the other changes in rates of pay made
during the past fiscal year were those of employees in mechanical
trades based on the annual adjustment in the navy yards of the
United States effective January 1; the bimonthly adjustments
of rates for building-trades craftmen engaged on construction work;
and adjustments of rates for Panama Railroad transportation
employees, following changes in rates paid on railroads in the United
States.
The wage board, consisting of the assistant engineer of maintenance
and a representative selected by the organizations of employees,
held 20 meetings during the year.
The salary board, composed of the heads of the nine major depart-
ments and divisions of the Panama Canal and Panama Railroad,
held a number of meetings in December and June. Both boards
function merely in an advisory capacity to the governor, who is
charged with the fixing of all rates of pay. During the year their
respective spheres were defined, and classes of employees were
allotted to each board.

ALIEN EMPLOYEES ON THE SILVER ROLL

The board on silver rates of pay, consisting of the heads of 17
departments and divisions of the Panama Canal and Panama Rail-
road, held meetings in November and May. As with the boards
on gold rates of pay, this board acts in an advisory capacity to the
governor.
There was no change in the basic rate of 20 cents per hour for
unskilled labor, but effective January 1, 1928, administrative advances
for silver employees were made possible by the establishment of
additional rates in the schedule, as follows:
(a) Hourly rates 1 cent per hour in excess of those already in
the schedule, up to 30 cents, with additional rates of 32 and 34 cents
per hour for artisans and an addition of 1 cent per hour to the rates
for foreman at the receiving and forwarding agency and coaling
plant only.





REPORT OF GOVERNOR OF THE PANAMA CANAL 69

(b) Monthly rates $2.50 per month in excess of those already in
the schedule up to $77.50 per month, with $80 remaining the
maximum.
In all cases the previous rates in the silver-roll schedule were
continued in effect; no promotions were made on account of the
abolition of rates.
Under Executive orders, the maximum rates allowed for alien em-
ployees have been $80 per month or 40 cents an hour. Exception to
this is made by an Executive order signed September 14, 1927, which
permits not to exceed 100 alien employees of the Panama Canal and
Panama Railroad to be paid more than the established maximum
but with the same leave and other privileges, and no more, as are
accorded alien employees whose pay does not exceed this limit.
This allows the administration to accord some recognition to efficiency
and long service to the alien employees, many of whom are capable
and deserving. To the end of the fiscal year 96 of the 100 positions
allowed had been allocated.
The average rates paid to alien employees as of April 1, 1928,
when the last general survey was made, as compared with preceding
years, were as follows:

Average cfrni ngi Average earnings

Montbhl Humirly Monthly Hourly
employees employees employees employees

Per month Per hour Per month Pe r hour
Nov. 1, 1923-------------- $55.27 $0.2312 Nov. 1, 1926.............. $55.40 $0.2395
Nov. 1, 1924...------------ 54.74 .2323 Oct. 1, 1927--------------- 54.88 .2411
Nov. 1,1925-------------- 55.28 .2385 Apr. 1, 1928--------------...... 56.17 .2417

During the four years and five months covered by the foregoing
table there have been increases of 90 cents per month in the average
pay of alien employees on a monthly basis and slightly over 1 cent
per hour in that of those on an hourly basis. During this same period
the index of the cost of living, based on weighted prices in the com-
missary stores, with July, 1914, as 100, declined from 146.69 as of
October 1, 1923, to 133.09 as of April 1, 1928.

COMPLAINTS BOARD

This board was organized in July, 1920, and called the grievance
board; the name was changed in NMay, 1927, to the complaints hoard.
It is composed of the assistant engineer of maintenance, the head of
the department or division in which the specific complaint originates,
and two representatives of the employees who are nominated by
the central body of the employees' associations and approved by the





REPORT OF GOVERNOR OF THE PANAMA CANAL


governor Two cases were handled by this board during the year
as compared with three in the fiscal year 1927 and six in 1926. The
small number of cases brought before this board is considered indica-
tive of the generally satisfactory conditions of employment that
exist under the Panama Canal and Panama Railroad.

RECRUITING AND TURNOVER OF FORCE
GOLD EMPLOYEES

The number of persons above the grade of laborer tendered employ-
ment through the Washington office of the Panama Canal during
the year was 455 of whom 210 accepted and were appointed, covering
53 different kinds of positions. Acceptances and appointments
were 46.1 per cent of the tenders. In the previous year the tenders
numbered 495 and appointments 261, making the percentage of
acceptance 52.7, and in the fiscal year 1926 the corresponding figures
were 401 and i67, percentage 41.6. In addition to the 210 employ-
ments in the United States there were 344 employment on the Isth-
mus, making a total addition to the gold roll during the year of 554.
Separations numbered 394, of which 12 were due to retirement.
Based on a force of 2,936 gold employees at the beginning of the year,
394 separations make a turnover of 13.4 per cent from all causes as
compared with 17.6 per cent during the previous year.
When an additional employee is needed efforts are made to fill
the position by promotion from the force already employed or by
transfer to it of an employee whose work in another department is
about to terminate. This tends to reduce employment of people
unused to Canal Zone conditions, to reduce recruiting costs, and to
give the organization the benefit of the accrued experience in local
conditions of the employee. It has a further value in strengthening
the morale of the force through giving the employees a reasonable
expectation of continued employment as long as their services are
satisfactory, which builds up loyalty to the canal. Of the 344 gold-
roll employment made locally during the past year, 152 were reem-
ployments.
Two thousand five hundred and fifty-six persons (2,393 from New
York, 102 from New Orleans, and 61 from Pacific coast ports),
including new appointees, those returning from leave of absence and
members of employees' families, were provided transportation from
the United States to the Isthmus. In addition considerable corre-
spondence was conducted by the Washington office in answering
inquiries in connection with applications for employment and the
issuance of appointments, etc., as well as in connection with the
gathering of wage data.





REPORT OF GOVERNOR OF THE PANAMA CANAL


SILVER EMPLOYEES

No figures are available concerning the number of separations and
employment among the alien personnel composing the silver roll,
but no difficulty was experienced in maintaining an adequate force,
and the percentage of turnover was low for this class of labor.
PUBLIC AMUSEMENTS AND RECREATION
Operation of 10 clubhouses in canal towns for the benefit of em-
ployees and their families was continued through the year. Five
of the houses are for gold or white employees and five for the colored
employees. They provide moving pictures, bowling, pool, reading
rooms, and limited refreshment and restaurant service, and are
centers for community entertainments and athletic enterprises.
They are open daily from 7 a. m. to 11 p. m.
Games and kindergarten work were provided for children from
3 to 6 years old at the playgrounds. The playgrounds were also
used by the school children outside of school hours and during the
summer vacation, and baseball, soccer ball, basket ball, volley ball,
and indoor-baseball leagues were organized. Gymnasium classes
were held for high-school students as well as mixed classes for adults
during the evening. The swimming pools at Balboa, Pedro Miguel,
and the Hotel Washington continued popular and swimming, diving,
life-saving, and physical-development, exercises were taught. Swim-
ming meets for children and adults were arranged at intervals.
Literary clubs, talks on education, health, and other subjects helpful
to children as well as adults form an important part in the community
welfare work carried on at the clubhouses for colored employees. On
one or more nights weekly there are meetings of classes in which
shorthand, typewriting, and grade subjects are taught; and classes are
conducted in cooking, baking, and sewing for girls.
Most of the present clubhouses are old, in bad condition, and exten-
sive repairs are needed to keep them in usable condition. New build-
ings are needed at Ancon and Balboa and a new clubhouse and ath-
letic and baseball field at New Cristobal. The baseball field at the
Atlantic end has been located in Colon and is soon to be taken over for
the erection of buildings. It is important that other grounds be pro-
vided.
Some of the clubhouse activities are carried on at a profit; others
are not self-sustaining, and the deficit resulting therefrom is made
up from appropriations. The justification for their continuance is
that they add materially to the morale of the organization and to the
physical and moral health of the community. Clubhouse finances
for the fiscal year are taken up in the section on business operations.





REPORT OF GOVERNOR OF THE PANAMA CANAL


PURCHASES AND SALES IN THE UNITED STATES
The principal purchases of supplies were made by the Washington
office of the Panama Canal as in previous years. Branch offices in
charge of assistant purchasing agents were continued at, New York,
New Orleans, and San Francisco, and the personnel at these offices
also acted as receiving and forwarding agents for materials forwarded
to the Isthmus from their respective ports.
The principal medical and hospital supplies were purchased through
the medical section, New York general intermediate depot, United
States Army, Brooklyn, as in the past.
The number of orders placed for supplies during the fiscal year was
7,764 as compared with 7,693 for the preceding fiscal year. More
orders were placed during the fiscal year 1928 than during any fiscal
year since 1904, except 1915, 1916, 1917, and 1920. The force handling
this work was not increased and considerable overtime was worked.
The total value of orders placed during the year was $4,769,893.30 as
compared with $5,676,669.58 during the fiscal year 1927, a decrease
of $906,776.28 in value. The decrease in value during 1928 in the
face of an increase in number is due to the fact that three large con-
tracts aggregating $1,314,763.36 were placed during 1927 while no
such large contracts were made during 1928. The grand total for the
purchase of materials and supplies by orders placed in the United
States by and under the direction of the Washington office since 1904
is $199,143,914.98.
During the fiscal year 1928, 68 contracts were prepared amounting
to $2,035,952.84, as compared with 54 contracts and $3,020,357.07
in value during the year preceding, an increase in number of 14 and
a decrease in value of $984,404.23.
The sale of surplus canal material by the purchasing department
in Washington during the fiscal year amounted to $16,418.18, as com-
pared with $60,031.52 during the preceding fiscal year.
In representing the Panama Canal in the United States, the Wash-
ington office handled extensive correspondence and maintained rep-
resent nation on various Government boards and coordinating com-
mittees, in addition to contacts with other governmental depart-
ments and business interests with reference to canal activities.










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SECTION V


FINANCIAL AND STATISTICAL STATEMENTS

Various financial statements with reference to the Panama Canal
and three tables relative to the traffic through the canal are presented
on the following pages. The financial statements are abstracted
from the annual report of the accounting department and the traffic
tables were compiled by the bureau of statistics.
The following is a list of all of the tables contained in the annual
report. of the accounting department and of the three traffic tables.
Tables Nos. 6, 10, 27, 32, and 34, 37 to 41, inclusive, and 43 to 57
inclusive, in the accounting department report are not published
because they are concerned with details of operation which lack
general interest; as noted under "Appendixes not Printed," page vi,
the complete report for the accounting department may be consulted
at the Washington office of the Panama Canal or at the office of the
governor. For purposes of reference, however, the numbers given
these tables are preserved below and all of them are listed.
Following this list is a series of notes of explanation of the financial
tables. These notes explain both the published and unpublished
tables. Following the notes are the tables, with the exception of
those the omission of which is noted above.
The complete list of tables is as follows:
Table
No.
1. General balance sheet.
2. Summary of expenses and revenues.
3. Balances in appropriation and fund accounting.
4. Appropriations by congress.
5. Cash receipts and disbursements for account of the United States.
6. Payments made by the paymaster.'
7. Receipts and disbursements by collector of Canal Zone funds.
8. Collections repaid to appropriations and to individuals and companies.
9. Collector's special-deposit account.
10. Audited pay rolls.'
11. Accounts receivable registered.
12. Comparative statement of accounts receivable outstanding June 30, 1928.
13. Comparative statement of accounts payable.
14. Defense capital expenditures.
15. Canal fixed property.
16. Canal equipment.
17. Business property by divisions.
18. Business fixed property.
1 Omitted from publication; see notes on following pages.
13528-H. Doc. 347, 70-2----6 73





REPORT OF GOVERNOR OF THE PANAMA CANAL


Table
No.
19. Business equipment.
20. Status of public works, Panama and Colon.
21. Canal material and supplies on hand.
22. Material and supplies received, issued, and sold.
23. Canal earnings, expenses, and net expenses.
24. Canal revenues.
25. Business expenses, revenues, and profit and loss.
26. Comparison of expenses, revenues, and surplus to date.
27. Pay-roll deduction from employees for rent, etc.1
28. Replacement reserves.
29. Repair reserves.
30. Gratuity reserves.
31. Cost of production and distribution of electric current.
32. Cost of production of water per 1,000 gallons.'
33. Dredging operations (channel maintenance).
34. Money orders issued and paid by the Canal Zone and money orders paid by
other administrations, 1907 to 1928, inclusive.'
35. Postal service, monthly money-order business of the Canal Zone postal
service.
36. Postal service, postal revenues, 1907 to 1928, inclusive.
37. Postal service, postal-savings payments and deposit money-order trans-
actions.1
38. Income and expenditures, clubs and playgrounds.'
39. Balance sheet, clubs and playgrounds.'
40. Commissary coupons issued, sold, and honored.1
41. Injury payments made during the period August, 1908, to June 30, 1928.1
42. Deaths and injuries on the Panama Canal and Panama Railroad Co. and
expenditures for account of the United States Employees' Compensation
Commission.
43. Cost of commissary supplies purchased and sold.'
44. Collections from other than employees.'
45. Collections, Panama Railroad land rents.'
46. Silver quarters statistics.'
47. Panama Canal accounts payable vouchers registered.'
48. Panama Railroad accounts payable vouchers registered.'
49. Employees' bonds.'
50. Report of the accounting bureau (general and cost accounts).'
51. Report of the pay-roll section (claims bureau).'
52. Report of the claim officer personal injury claim.'
53. Report of the claim clerk freight and cargo claim.'
54. Report of rent and other collections from silver employees.'
55. Report of the general inspection bureau.'
56. Report of the time inspection bureau.'
57. Report of the property inspection bureau.'
58. Origin and destination of cargo passing through the canal, fiscal year 1928,
Atlantic to Pacific.
59. Origin and destination of cargo passing through the canal, fiscal year 1928,
Pacific to Atlantic.
60. Statement showing by nationality the number of transits of vessels, aggre-
gate Panama Canal net tonnage, tolls assessed, and tons of cargo carried
through the Panama Canal by fiscal years from the opening of the canal,
August 15, 1914, to June 30, 1928.

I Omitted from publication; see notes on following pages.





REPORT OF GOVERNOR OF THE PANAMA OANAL


EXPLANATION OF FINANCIAL AND STATISTICAL STATEMENTS
A brief explanation of tables numbered 1 to 60 follows:
Table No. 1-General balance sieet.-No change was made in the
general accounts during the past year. The debit and credit items
are analyzed and explained in subsequent tables.
Table No. 2-Summary of revenue. and expenses.-This table shows
a comparison for the fiscal years 1927 and 1928, of the net results of
operation of both transit and business units. The canal transit.
surplus for 1928 amounts to $18,224,844.86, which is $10,881,070.47
in excess of the fixed capital charge. The net revenue from business
operations amounts to $736,719.43, which is $45,144.72 less than the
fixed capital charge. This deficit is explained under Table No. 25.
The combined operations show a net revenue or surplus of $18,961,-
564.29, or $10,835,925.75 in excess of the fixed capital charge on the
total commercial investment in the Panama Canal.
Table No. 3-Appropriation and fund account ng.-This table
shows the balance of appropriated and available funds in the United
States Treasury and in the hands of the Panama Canal fiscal officers
as of June 30, 1928. The fiscal officers (i. e., the disbursing clerk in
Washington, and the paymaster and collector on the Isthmus) had
cash on hand amounting to $2,147,093.68, as compared with $1,983,-
725.21 at the end of the previous fiscal year. The paymaster's
cash balance was $1,189,193.23, compared with $968,406.01 the pre-
vious year, an increase of $220,787.22. Taking the miscellaneous
receipts and trust funds out leaves a working cash balance in the
hands of the fiscal officers of $1,485,848.28.
The balance available for expenditure after providing for direct
liabilities, obligations, and reserves, is $1,246,191.72, the greater part
of which is allotted and obligated for expenditure during the fiscal
year 1929 on projects not completed at the end of the fiscal year.
The amount shown under the heading of work in process and sus-
pense represents the expenditures which have been made but which
have not been charged off or set up in the capital account on the
books. The credit items under this heading payable from sanita-
tion and civil government funds represent reserves for items obligated
for the fiscal year 1929. The $4,069,876.69 under the heading of
general ledger reserves is made up of the reserves for replacement,
extraordinary repairs, gratuity, and contingencies shown in the general
balance sheet, Table No. 1.
From the balance available June 30, 1928, the sum of $t680,915.S4
representing the profits on business operations during the fiscal year
1928, is immediately transferrable to miscellaneous receipts.
Table No. 4-Approprialioin. by Congress .-There has been no
change in the appropriations for canal construction. The various
acts are shown in detail in Table No. 3 of the annual report for 1924.





REPORT OF GOVERNOR OF THE PANAMA CANAL


The status of the authorized bond issue, showing the amount appro-
priated and the baltince available for appropriation within the limit
of the cost of the canal and the authorized bond issue, is shown at
the end of this table.
The total amount appropriated to date for the annual payments
to the Republic of Panama for the use of the Canal Zone, is $4,-
250,000.
The total amount appropriated for the operation and maintenance,
sanitation, and civil government of the Panama Canal and Canal
Zone, to June 30, 1928, is $104,515,081.88. From this amount there
has been returned to the surplus fund in the United States Treasury,
$7,754.98. This leaves $104,507,326.90 expended or available for
expenditure.
The appropriations for the fiscal year 1929, not included in the
above figures, are as follows:
Maintenance and operation----------------------- $6, 832, 000
Sanitation ------------ ,------------------------ 670, 000
Civil government- -----------------------------_ 1, 158, 000
Codification of Canal Zone laws ------------------- 10, 000
Total------------------------------------- 8, 670,000
In addition to this, there is obligated for expenditure during 1929
an unexpended balance of $190,000.00 brought forward from the
fiscal year 1927, and $400,000 from the reserve funds.
Table No. 5-Cash disbursements and receipts.-The Treasurer of
the United States advanced to the fiscal officers of the Panama Canal
during the fiscal year 1928 the sum of $10,069,000 and disbursed
directly from the Treasury, $296,757.57, a total disbursement of
$10,365,757.57. Against this amount, the fiscal officers of the Panama
Canal remitted to the Treasury the sum of $174,795.41, and direct
collections by the Treasurer amounted to $326,540.07, a total of
$501,335.48, resulting in a net withdrawal from the United States
Treasury of appropriated funds amounting to $9,864,422.09, as com-
pared with $6,816,980.98 withdrawn the previous fiscal year. This
difference is accounted for by the fact that the paymaster's with-
drawals were approximately $1,000,000 below normal in 1927, and that.
capital additions and replacements were about $1,000,000 greater in
1928 than in 1927. The balance of approximately $1,000,000 is
covered by increase in working capital assets (cash, accounts receiv-
able, and storehouse stock) and reduction of current indebtedness.
The sum of $820,669.15 was transferred from the appropriation
for maintenance and operation, to miscellaneous receipts in the United
States Treasury, covering the business profits for the fiscal year 1927.
Table No. 6-Di.burxsement.s by the paymiaster.-Disbursenments to
the amount of $21,577,702.76 were made during the year by the pay-
master. Of this amount, the sum of $8,235,817.39 was for the account





REPORT OF GOVERNONr OF THE PANAMA CANAL


of the Panama Railroad Co. Employees on the gold rolls were paid
$7,124,765.30 and those on the silver rolls, $4,735,113.96. The
amount, of $1,482,006.11 was paid on miscellaneous vouchers.
Collections on the. pay rolls amounted to $4,566,739.54. Of this
amount the sum of $3,337,363.13 was collected for comnuissinry coupon
books, the remainder for miscellaneous items. Of the total collections,
the sum of $3,769,723.49 was disbursed by the paymaster, the balance,
$797,016.05, being transferred to the collector's accounts.
The Chase National Bank of New York, Panama branch, was con-
tinued as a Government depositary, and the National City Bank of
New York, Panama branch, was continued as a depositary for the
Panama Railroad Co. on the Isthmus. During the year the sum of
$9,519,720, Panama Railroad funds, was transferred to the Treasurer,
New York. This sum includes $1,819,720 cash transfer, of which
$1,090,000 was mutilated currency. Approximately $350,000 in new
currency was put in circulation by the paymaster during the year.
The paymaster requisitioned $3,515,000 from the Treasurer of the
United States. Of this amount, $365,000 was sent to the Isthmus in
cash. The cash situation as a whole continued satisfactory. A
shortage of American change was apparent during the year, and was
relieved by imports of the paymaster. The gold reserve increased
slightly to approximately $400,000.
Tables Nos. 7, 8, and 9-Receipts and dib uri.emerent. by the collector.-
The miscellaneous receipts collections amounted to $27,303,416.98, of
which $26,943,513.11 was for tolls and the balance for postal receipts,
taxes, fees, fines, etc., and amortization and interest, on the investment
in public works in the cities of Panama and Colon. Collections repaid
to appropriations amounted to $10,018,771.37. The amount handled
through the collector's security deposit accounts totaled $34,321,796.63,
as shown in Table No. 5. In addition to these amounts, the col-
lector handled independent funds consisting of clubhouse funds,
trust funds, postal-savings funds, money-order funds, interest, and
Treasury savings certificates as shown in Table No. 7, amounting to
$1,810,601.42. Collections for account of the Panama Railroad Co.,
not appearing in these tables, amounted to $16,428,502.34, making
a total cash turnover, exclusive of the security deposit funds, of
approximately $55,500,000.
Table No. 10-Salaries and wnages.-The amount of money earned
by the Panama Canal employees during the fiscal year 1928 was
$11,899,168. Of this amount, $7,138,126.91 was earned by gold
employees, and $4,761,041.09 by employees on the silver rolls. The
total pay roll for the fiscal year 1927 was $11,412,461.30. Of the
amount paid for salaries and wages during the fiscal year 1928,
$10,027,450.00 was payable from the appropriation for maintenance
and operation; $941,999.63 from the sanitation appropriation; and





REPORT OF GOVERNOR OF THE PANAMA CANAL


$929,718.28 from the appropriation for civil government. These
figures include the employees of the business divisions, the outlay for
which is collected back and repaid to the appropriation.
Table No. 11-Accounts receivable.-The number of bills registered
during the year was 45,695, covering $35,471,785.67, compared with
41,009 bills and $32,044,990.24 during the fiscal year 1927, an increase
of 4,686 bills covering $3,426,795.43. The total amount of tolls bills
registered was $26,945,609.11, which is $2,715,543.82 more than last
year.
Table No. 12-Conmparatire statement of accounts receivable.-The
uncollected bills at the end of the fiscal year 1928 amounted to
$814,913.51, compared with $651,660.10 the previous year.
Table No. 13-Comparative statement of accounts payable.-Vouchers
payable at the end of the fiscal year amounted to $1,629,927.83, com-
pared with $1,632,376.04 for the previous year. The unpaid vouchers
exceeded the uncollected accounts receivable by $815,014.32.
Table No. 14-National defense e~xpenditures.-This table has been
changed to show only the total charges to this account at the begin-
ning of the year (for detail see Table 14, Annual Report for 1927) and
the current year transactions. It was increased during the fiscal
year by $4,444.92, covering the completion of protective fences around
the locks, the total cost of which amounted to $64,605.15. The total
amount now charged to national defense in order to write down the
cost of the Panama Canal to a fair commercial value, as directed by
the Secretary of War in a letter to the governor dated October 18,
1921, is $113,127,337.75.
Table No. 15-Canal fixed property.-The book value of the fixed
property used in connection with the transiting of vessels as of June
30, 1928, amounts to $237,074,172.38. Additional property was set
up in the capital account during the year amounting to $423,043.31,
and property valued at $23,772 was withdrawn. Two additional
towing locomotives were placed in service at a cost of $82,352.26.
Additional expenditures were made in connection with the proposed
Alhajuela Dam, amounting to $2,774.83. The total amount expended
on this project to date is $246,360.67, most of which is for purchase of
rights and the depopulation of the area which will be submerged.
Sixty-six thousand three hundred and seventy-nine dollars and fifty-
two cents were spent on additional streets and sidewalks, and $13,664.45
on storm sewers. The sum of $220,438.03 has been spent to the
end of the fiscal year on the new Administration Building, Cristobal
formerlyy called Municipal Building), which was authorized at an
estimiatcid expense of $559,000, to house the post office, police station,
courts, and various other offices at the Atlantic terminal. A dynamite
magazine was constructed at Summit at a cost of $10,234.17. Under
the heading of asylums, $22,553.81 were spent during the year in com-





REPORT OF GOVERNOR OF THE PANAMA CANAL


pleting the construction of the female ward, and $27,745.92 for the
mess hall, Corozal, making a total completed cost of $157,313.85
for the female ward, and $115,749.18 for the mess hall. A new mess
hall and kitchen building was constructed at Palo Seco at a cost of
$14,091.99. The cost of constructing a school building in the silver
settlement at Gatun amounted to $10,250.68.
Of the amount withdrawn, $15,340 covers the value of old frame
buildings demolished at the Corozal Asylum, and $8,432 for buildings
demolished at the Colon Quarantine Station. The material recovered
at the quarantine station was used in constructing silver bachelor
quarters in the silver settlement at Gatun.
Table No. 16-Canal transit equipment.-The amount invested in
equipment used in connection with the transiting of vessels and
channel maintenance is $5,136,758.22, an increase of $632,268.44
over the previous year. The reductions amounted to $69,240.29
covering the sale of pipe-line-suction dredge No. 83,, valued at
$61,850, and road roller No. 3, valued at $2,750. The balance of
$4,640.29 represents the value of launch G and the Hyacinfli, which
were surveyed for sale and their value removed from the capital
account.
Additions were made to this account amounting to $701,508.73,
the largest item of which represents the cost of the two Diesel
tugs Chagres and Trinidad constructed at a cost of $620,000.
Four launches were also constructed-Heron, $14,566.42; Jacana,
$7,019.99; Porpoise, $11,333.83; and Tarpon, $11,307.02. A gasoline
road roller was purchased at a cost of $5,539.02. The balance of
$31,742.45 covers capital improvements on other items of equipment
as shown in the table.
Table No. 17-Business property.-This table shows the entire
investment in the business activities of the canal, consisting of fixed
property, equipment, material and supplies, cash, work in process,
and undistributed business capital, separated according to the
divisions using same. The undistributed business capital charges
against the divisions is made up of a portion of the general store
stock (representing the value of standard material and supplies
held in reserve for the business divisions); cash; and accounts
receivable registered in the transit accounts for account of the busi-
ness units. The capitalization of these business units amounts to
$31,762,114.95, an increase of approximately $400,000 over the pre-
vious year. These increases are principally in connection with
additional fixed property and equipment which are explained under
Tables 18 and 19.
Table Ao. 18-Busiiineisf.red property.-The total amount of fixed
property in use by the business divisions as shown in Table No. 17,
was reduced by $65,163.31 and increased by $632,363.76. The





REPORT OF GOVERNOR OF THE PANAMA CANAL


reductions include the amortization of public works in the cities of
Panama and Colon amounting to $56,388.31.
A number of gold and silver quarters were sold, demolished, or
transferred and withdrawn from the account, in the sum of $8,775.
Additional charges were made for construction of the new Nlira-
flores Diesel electric power plant amounting to $80,853.67, making
the total completed cost $1,524,416.92. Charges for extension of
power system distribution lines were made at a cost of $13,842.46.
The sum of $5,449.55 was spent in completing the new filter plant,
Gamboa, the total completed cost amounting to $17,505.93. Ad-
ditions and improvements were made to the Gatun-Colon and New
Cristobal water system amounting to $48,362.78, the detail of which
is shown in this table. A charge of $60,360.39 for construction of
additional pipe lines at the fuel oil plant, Balboa, was added during
the year. Fifty-five thousand eight hundred and sixty dollars and
thirty-nine cents of this amount-represents an adjustment for pipe lines
constructed during the previous year and charged against replace-
ment funds, but later decided that in order to get them on the
financial property records, the charge should be added to the capital
account. The balance of $4,500 covers the purchase of an 8-inch
gasoline pipe line from the West India Oil Co.
Expenditures amounting to $388,363.88 were made during the
year in completing the 87 new houses at New Cristobal, the total
completed cost amounting to $758,196.33. The old Cristobal hotel
was taken down and reerected at Camp Bierd, Cristobal, for use as
silver family quarters at a cost of $14,127.27. Additional garage
stalls were erected at a cost of $21,003.76.
Table No. 19-Business equipment.-The value of equipment in
use by the various business divisions of the Panama Canal at the
end of the fiscal year was $1,151,847.61. The total withdrawals
amount to $26,717.07, representing transfers, sales, and surveys.
Equipment was purchased during the year amounting to $60,994.17,
of which $32,400.25 covered automobiles, and $28,593.92 for new
machinery and tools for current use.
Table No. 20-Waterworks, sewers, and parem ents in cities of Panama
and Colon .-The amount invested in wa terworks, sewers, and pave-
ments in the cities of Colon and Panama, reimbursable to the
United States, on June 30, 1928, was $1,656,554.72, of which
$902,019.22 is in the city of Panama and $754,535.50 in Colon.
The Pananma Canal supplies water to these two cities from the
Canal Zone system and maintains the sewers and streets in the two
cities under a contract entered into between the Panama Canal and
the Republic of Panama in 1907. The Panama Canal collects the
water rentals from the residents of these two cities and uses the
funds to cover the cost of the water and the maintenance of sewers




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