• TABLE OF CONTENTS
HIDE
 Front Cover
 Front Matter
 Frontispiece
 Title Page
 Table of Contents
 List of Illustrations
 Summary
 Section I: Canal operation and...
 Section II: Business operation...
 Section III: Administration
 Section IV: Government
 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/UF00097365/00017
 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: 1932
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: VID00017
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
    Frontispiece
        Frontispiece
    Title Page
        Page i
        Page ii
    Table of Contents
        Page iii
        Page iv
        Page v
        Page vi
        Page vii
        Page viii
    List of Illustrations
        Page ix
        Page x
    Summary
        Page 1
        Page 2
        Page 3
        Page 4
    Section I: Canal operation and trade via Panama
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 12a
        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
        Page 32
        Page 33
        Page 34
        Page 34a
        Page 34b
        Page 34c
        Page 35
        Page 36
        Page 37
        Page 38
        Page 39
        Page 40
        Page 41
        Page 42
        Page 43
    Section II: Business operations
        Page 44
        Page 45
        Page 46
        Page 47
        Page 48
        Page 49
        Page 50
        Page 51
        Page 52
        Page 53
        Page 54
        Page 55
        Page 56
        Page 57
        Page 58
        Page 59
        Page 60
        Page 61
    Section III: Administration
        Page 62
        Page 63
        Page 64
        Page 65
        Page 66
        Page 67
        Page 68
        Page 69
        Page 70
        Page 71
        Page 72
        Page 73
        Page 74
        Page 75
        Page 76
        Page 76a
        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
    Section IV: Government
        Page 90
        Page 91
        Page 92
        Page 93
        Page 94
        Page 95
        Page 96
        Page 97
        Page 98
        Page 99
        Page 100
        Page 100a
        Page 101
        Page 102
        Page 103
        Page 104
        Page 105
        Page 106
        Page 107
        Page 108
        Page 109
        Page 110
        Page 111
        Page 112
    Section V: Financial and statistical statements
        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
        Page 137
        Page 138
        Page 139
        Page 140
        Page 141
        Page 142
        Page 143
        Page 144
        Page 145
        Page 146
        Page 147
        Page 148
        Page 149
        Page 150
        Page 151
        Page 152
        Page 153
        Page 154
        Page 155
        Page 156
        Page 157
        Page 158
        Page 159
        Page 160
        Page 161
        Page 162
        Page 163
        Page 164
        Page 165
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        Page 169
        Page 170
    Back Cover
        Page 171
        Page 172
Full Text









UNIVERSITY
OF FLORIDA
LIBRARY












































Digitized by the Internet Archive
in 2010 with funding from
University of Florida, George A. Smathers Libraries with support from Lyrasis and the Sloan Foundation


http://www.archive.org/details/annualreportofgo1932cana







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ANNUAL REPORT

OF THE


GOVERNOR OF


THE PANAMA CANAL

FOR THE

FISCAL YEAR
ENDED JUNE 30


1932


** #


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1932


SI i I
For sale by the Superintendent of Documents, Washington, D. C. - Price 20 cenls (Paper Covern











TABLE OF CONTENTS



Summary -------------------------------------------------------- 1
Operation and maintenance of the canal--------------------------- 1
Business operations-------------------------------------------- 2
Administration-government----_--_--------------------------- 2
Services rendered by the canal to shipping ------------------------ 3
Revenues and expenses--------------------------------------- 3
SECTION I.-CANAL OPERATION AND TRADE VIA PANAMA
Traffic in 1932 --------------------------------------- -------- 6
Proportion of tanker traffic------------------------------------- 8
Number and daily average transits of tankers and general car-
riers---------------------------------------------------- 8
Proportions of tanker tonnage and general net tonnage- ------- 9
Proportion of tolls from tank ships to tolls from all vessels ---- 9
Tanker cargoes----------------------------------------------- 9
Nationality of vessels------------------------------------------ 10
Tons of cargo carried-------------------------------------- 11
Commercial traffic through the Panama Canal, by nationality
of vessels----------------------------------------------- 11
Net tonnage of vessels----------------------------------------- 11
Vessels entitled to free transit and launches of less than 20 tons net
measurement----------------------------------------------- 12
Trade routes and cargo --------------------------------------- 12
Cargo shipments through the Panama Canal during the past
four fiscal years, segregated by principal trade routes------ 13
Principal commodities--------------------------------------- __16
Commodity movement-
Atlantic to Pacific -------------------------------.----- 18
Pacific to Atlantic------------------------------------- 18
Classification of vessels---------------------------------------- 19
Laden and ballast traffic----------------------------------- 20
Average tonnage, tolls, and tons of cargo per vessel-------------------- 22
Data in statistical section------------------------------------------ 22
Dual measurement system----------------------------------------- 22
Hours of operation-.----------------------------------------------- 26
Operating hours for complete transit----------------------------- 26
Limits for starting on partial transits---------------------------- 26
Lockages and lock maintenance------------------------------------- 27
Gatun Locks----------------------------------------------- 28
Pacific Locks------------------------------------------------- 28
Power for canal operation-------------.------ --------------------- 29
Water supply ------------------------------------------- ------ 31
Dry season--------------------------------------------------_ 31
in

^7/70






IV TABLE OF CONTENTS

Page
Madden Dam project-----------------------------------------------... 32
Force employed---------------------------------------------- 32
Concrete plant, testing laboratory, etc--------------------------- 33
Progress on contractors' construction plant ---------------------- 34
Material and supplies------------------------------------------ 35
Earnings, deductions, and payments----------------------------- 35
Maintenance of channel and improvement projects ------------------- 35
Canal improvement work-------------------------------------- 36
Project No. 1--------------------------------------------- 36
Project No. 3--------------------------------------------- 37
Project No. 5 (revised) ------------------------------------ 37
Project No. 6--------------------------------------------- 37
Project No. 9--------------------------------------------- 37
Auxiliary dredging --------------------------------------------- 38
East and west ferry slips----------------------------------- 38
Dredging around grounded vessel ------------------------ 38
Slides------------------------------------------------------------ 38
Farfan spillway --------------------------------------------------- 39
Farfan River Dam------------------------------------------------ 39
Equipment-------------------------------------------------- ----- 39
Ferry service----------------------------------------------------- 40
Aids to navigation------------------------------------------------- 40
Accidents to shipping-------------------------------------------- 41
Salvage operations ------------------------------------------------ 41
Meteorology, hydrology, seismology -------------------------------- 42
Precipitation------------------------------------------------- 42
Air temperatures---------------------------------------------- 42
Winds- ------------------------------------------------------ 42
Relative humidity -------------------------------------------- 42
Tides-------------------------------------------------------- 42
Seismology__--------------------------------------------------- 42
Rules and regulations---------------------------------------------- 43
SECTION 11.-BUSINEss OPERATIONS
Panama Canal business operations -------------------------------- 44
Mechanical and marine work---------------------------------- 44
Dry dock and marine work---------------------------------- 45
Other work----------------------------------------------- 47
Plant----------------------------------------------------- 47
Financial ---__---------------------------------------------- 48
Electrical installation and repair work --------------------------- 48
Purchases and inspections in the United States ------------------- 49
Ship chandlery and other storehouse supplies--------------------- 50
Fuel oil, Diesel oil, gasoline, and kerosene------------------------ 50
Fuel and Diesel oil----------------------------------------- 50
Gasoline and kerosene------------------------------------- 51
Storage facilities ------------------------------------------ -51
Obsolete and unserviceable property and equipment --------------- 51
Building construction and maintenance-------------------------- 51
Termites------------------------------------------------- 52
Quarters for employees ------------------------------------- 52
Gold employees---------------------------------------- 52
Silver employees -------------------------------------- 53





TABLE OF CONTENTS V

Panama Canal business operations-Continued. r.ig
Motor and animal transportation----.----------__-----------------..... 53
Panama Canal Press-----------------------------------.. 53
Revenues from rental of lands in the Canal Zone ------------------ 54
Plantations. ---------------------------------------------------- 54
Experimental gardens----------------------------------. 54
Business operations under the Panama Railroad -----------------------54
Receiving and forwarding agency-------------------------- 55
Harbor terminals ----------------------------------- .'.5
Canal Zone for orders------------------------------------ 55
Commissary division ----------------------------------------- 56
Sales---------------------------------------------- -- 57
Purchases ---------------------- ------------------------- 57
Manufacturing plants----------------------------------- 58
Hotels and restaurants--------------- .-------------------- 58
Cattle industry------------------------------------------------ 58
Beef cattle--------------------------------------------- 58
Dairy farm----------------------------------------- 59
Panama Railroad Co. lands and leases--------------------------- 59
Telephones and telegraph -------------------------------------59
Coal---------------------------------------------------- 59
Panama Railroad --------------------- ------------- 60
Panama Railroad Steamship Line---------------.------- ---------61

SECTION III.-ADMINISTRATION
Departments-------------------------------------------------- 62
Operation and maintenance----------------------------------- 62
Supply -- ------------------------------------------------- 62
Accounting ------------------------------------------------ 62
Executive------- ----------------------------------------- 62
Health-------------------------------------------------- 63
Panama Railroad Co------------------------------------------ 63
Changes in organization and personnel -----------------------------63
Force employed --------------------------------------------------- 64
Gold employees----------------------------------------------- 65
Increases and decreases in force----------------------------- 65
Recruiting and turnover of force---------------------------- 67
Silver enmplyees ----------------------------------------_ 69
Wage adjustments---------------------------------------------- 70
Gold employees ---------------------------- ----------- 70
Silver en]iliyves ------------------------------------------ 71
Superannuated alien ein ployees ------------------------------- 72
Public amusements and recreation----------------------------------- 73
Administrative problems-- --------------------------------------- 74
Legislativc recommendations---------------------------------- 74
Pensioning alien eidlaloyees--------------------------------- 74
Tolls----------------------------------------------- 75
General priiograni ---------------------------------- 75
Work in fiscal year 1932------------- ---------------------- 76
Work in fiscal year 1933 -------------- ------------------- 76
Explanation of immediate needs-------------------------------- 76
Concrete wharf at Cristobal Dry Dock----------------------- 76
BolivarHihway ----------------------------------------7-1 7
Grading building sites- -------------_---------------------- 77






VI TABLE OF CONTENTS

Administrative problems-Continued.
Explanation of immediate needs-Continued. Page
Corundu fill-------------------------------------------- 77
Balboa high school and junior college---------------------- 77
Paraiso Road-------------------------------------------- 78
Quarters for American employees--------------------------- 78
Widening of roads----------------------------------------- 79
Police stations, Ancon, Gatun, and Pedro Miguel ------------- 79
Quarters for patients at Palo Seco--------------------------- 79
Storage space for spare lock mechanism--------------------- 79
Library building at Balboa Heights-------------------------- 79
Unemployment-_------------------_-------------------------- 79
Retirement and superannuation-------------------------------- 81
American employees----------------------------------------- 81
Alien employees-------------------------------------------- 82
Capacity of canal------------------------------------------- 82
Basis of levy of tolls----------------------------------------- 83
Equity of present tolls--- ------------------------------------ 88
Bureau of efficiency----------------------------------------- 89
SECTION IV.-GOVERNMENT
Area of the Canal Zone------------------------------------------- 90
Population--------------------------------------------------- --- 90
Public health--------------------------------------------------- 91
Vital statistics --------------_------------------------------- 91
General death rate---------------------------------------- 91
Death rates from disease alone------------------------------ 92
Birth rates, including stillborn------------------------------ 92
Death rate among children under 1 year of age --------------- 93
Principal causes of death---------------------------------- 93
Malaria---------------------------------------------------- 94
Mosquito-breeding conditions in Gatun Lake area ----------------- 95
Trypanosomiasis (murrina) in animals--------------------------- 96
Garbage disposal, Pacific terminus -------------------------- --- 96
Hospitals and dispensaries-------------------------------------- 96
Quarantine and immigration service -------------------------------- 96
Municipal engineering -------------------------------------------98
Water supply----------------------------------------------- 98
Sewer systems------------------------------------------------ 100
Road construction ------------------------------------------100
Thatcher Highway---------------------------------------- 100
Relocated Gaillard Highway-------------------------------- 101
Farfan Beach Road--------------------------------------- 101
Cristobal Dry Dock------------------------------------------- 101
Panama City ------------------------------------------------- 101
Colon --------------------------------------------------- 102
Crib fenders, Miraflores south approach wall ------------------- 102
Water-purification plants and testing laboratory ------------------ 102
Publicorder-------------------- ------------------------------ 103
Fire protection. ---- ---------------------------------------------- 104
District court----------------- -------------------------------- 104
District attorney, office of------------------------------------------ 105
Marshal- ----------------------------------------------------- 105






TABLE OF CONTENTS


Page
Magistrates' courts--- -------------------------------------------- 100
Balboa---------------------------------------------------- 106
Cristobal--------------------------------------------------- 10
Public-schools system --------------------------------------. 106
Postal system. -------------------------------------------------- 108
Air mail service----------------------------------------------- 108
Customs--------------------------------------------------------- 109
Shipping commissioner----- ------------------------------------- 110
Administration of estates------------------------------------------- 110
Licenses and taxes--------------------- ------------------------ 110
Insurance---------------------------------------------------- 111
Immigration visas---------------------------------------------- 111
Relations with Panama-------------------------------------------- 111
Commercial aviation---------------------------------------------- 111
Codification of laws of the Canal Zone------------------------------- 112
SECTION V.-FINANCIAL AND STATISTICAL STATEMENTS
Modification of accounting system---------------------------------- 113
List of tables:
General balance sheet----------------------------------------- 115
Assets (Tables 1 to 13, inclusive)--------------------------- 115
Liabilities (Tables 14 to 23, inclusive) ----------------------- 116
Operations for profit and loss (Tables 24 to 26, inclusive)---------- 116
Miscellaneous (Tables 27 to 33, inclusive)------------------------ 116
List of addenda not published---------------------------------- 116
Traffic through the canal-------------------------------------- 117
Origin and destination of cargo passing through the canal, fiscal
years 1928 to 1932, inclusive, Atlantic to Pacific.
Origin and destination of cargo passing through the canal, fiscal
years 1928 to 1932, inclusive, Pacific to Atlantic.
Statement showing, by nationality, the number of transits of
vessels, aggregate Panama Canal net tonnage, tolls assessed,
and tons of cargo carried through the Panama Canal from the
opening of the canal, August 15, 1914, to June 30, 1924, and
by fiscal years ending June 30 from fiscal year 1925 to 1932,
inclusive.
Operations with Panama Railroad Co. funds---------------------- 117
Panama Canal operations-------------------------------------- 117












REPORTS OF HEADS OF DEPARTMENTS AND DIVISIONS
APPENDIXES NOT PRINTED
The material in the annual report of the Governor of the Panama Canal, pub-
lished in this volume, is to a large extent a summary of data presented in annual
reports from the heads of departments and divisions in the canal organization;
the latter, regarded as appendixes to the report of the governor, are not printed.
The annual report of the Panama Railroad Co. is published separately. The
reports of the heads of departments and divisions, as listed below, may be con-
sulted at the Washington office of the Panama Canal or the office of the governor
at Balboa Heights, Canal Zone:
Engineer of maintenance, report of-
Dredging division, report of superintendent.
Madden Dam division, report of construction engineer.
Assistant engineer of maintenance, report of-
Electrical division, report of electrical engineer.
Municipal engineering division, report of municipal engineer.
Division of lock operation-
Atlantic Locks, report of assistant superintendent.
Pacific Locks, report of assistant superintendent.
Office engineer, report of.
Section of surveys, report of chief.
Gatun Dam and back fills, report of supervisor.
Marine division, report of marine superintendent.
Mechanical division, report of superintendent.
Supply department, report of chief quartermaster.
Accounting department, report of auditor.
Health department, report of chief health officer.
Executive department-
Division of civil affairs, report of chief.
Police and fire division, report of chief.
Division of schools, report of superintendent.
Bureau of clubs and playgrounds, report of general secretary.
Surveying officer, report of.
Magistrate courts-
Magistrate, Cristobal, report of.
Magistrate, Balboa, report of.
District attorney, report of.
District court, report of clerk.
Marshlial, report of.
Land agent, the Panama Canal and Panama Railroad Co., report of.
Purchasing department, report of the general purchasing officer and chief
of Washington office.
vmI














LIST OF ILLUSTRATIONS


Frontispiece. Madden Dam and Lake-Tinaginary aerial view of c'inpl-ted
project.
Plate 1. United States Navy airplane carrier Sarutloga in Gaillard Cut.
2. Madden Dam project: View of right abutment of dam, at top partially
assembled tail tower. At bottom, the diversion levee and MonIighlian
excavator.
3. Madden Dam project: View of left abutment showing head tower
assembled, coffer dam, and pile driver.
4. Madden Dam project: View of Saddle Dam No. 5 from upstream toe
showing completed earth fill with gravel being placed in preparation
for receiving riprap.
5. Functional organization chart, the Panama Canal and Panama Railroad
Co., June 30, 1932.
6. Albrook Field, showing completed hydraulic fill with barracks and
quarters in background. New electrical division field office and shops
in foreground.
7. View of Thatcher Highway looking east from a point near Canal Zone-
Panama boundary.
8. Graph of principal commodities shipped through Panama-Canal, fiscal
year 1932.
9. Graph of origin and destination of Pacific-bound cargo, 1932.
10. Graph of origin and destination of Atlantic-bound cargo, 1932.
11. Graph of tonnage of cargo over principal trade routes, 1932.
12. Graph of tonnage of cargo passing through the Panama Canal by fiscal
years.
13. Graph of percentage of cargo carried by ships of United States and
foreign registry.
14. Graph of percentage of net tonnage, Panama Canal measurement, of
ships of United States and foreign registry, by fiscal years. (This
graph also indicates approximately the proportions of tolls paid by
United States and foreign vessels.)
15. Graph of number of commercial vessels transiting Panama Canal by
fiscal years.
16. Graph of tolls collected by fiscal years.










ANNUAL REPORT


OF THE

GOVERNOR OF THE PANAMA CANAL


BALBOA HEIGHTS, CANAL ZONE,
September 12, 1932.
The SECRETARY OF WAR,
Washington, D. C.
SIR: I have the honor to submit the report of the Governor of the
Panama Canal for the fiscal year ending June 30, 1932.
Respectfully,
H. BURGESS, Governor.

SUMMARY
Administration of the Panama Canal involves three main elements:
(a) The operation and maintenance of the canal proper, which
primarily involves the maintenance of the waterway, the operation
of the locks, and the control of traffic; (b) the operation of auxiliary
business enterprises necessary for shipping and the canal force, such
as coal and fuel oil plants, storehouses for foodstuffs, ships' clhandlery,
and other essential supplies, marine and railway repair shops, terminal
facilities for the transshipment of cargo and passengers, operation of
the Panama Railroad on the Isthmus and the Panama Railroad
Steamship Line between New York and the Isthmus, quarters for
the working force, and other adjuncts essential to the economical and
efficient operation of the canal, the majority of which elsewhere would
commonly be conducted by private enterprise; and (c) adiniiiistration
of the government of the Canal Zone, populated by 8,416 American
civilians, 11,090 Americans in military and naval forces, and 22,564
natives and West Indians, in which administration are embraced
education, sanitation, hospital service, police and fire protection,
customs, quarantine, immigration services, post offices, etc.
The immediate administration of these various activities rests' with
the heads of nine major departments and divisions reporting to the
governor, in whom is centered responsibility and control for the entire
organization.
OPERATION AND MAINTENANCE OF THE CANAL
The primary function of the Panama Canal is to provide and main-
tain a waterway by means of which vessels may make the transit from






REPORT OF GOVERNOR OF THE PANAMA CANAL


one 'cean to the other, and to handle such traffic as presents itself for
transit with a maximum of safety and a minimum of delay. Through-
out the year the canal force maintained its high standard of expeditious
service not only in the actual transiting of ships but in providing
emergency repairs, fuel, supplies, and the various supplementary
services incidental to shipping.
The only interruptions to canal traffic during the year occurred in
the period from November 7 to 15, 1931, on account of floods and
slides. Prolonged mruinfall brought water into Gatin Lake in excess
of the volume which could be discharged through the spillway with 12
of the 14 gates open and to prevent further rise and flooding the lock
machinery, the lock culverts at Gatun and Pedro Miguel were opened
on November 7, 8, and 9 for a total of about 20 hours. While they
were being so used traffic was suspended. In the morning of Novem-
ber 9 a slide occurred in Gaillard Cut, blocking passage until Novem-
ber 11 for ships drawing up to 28 feet of water, and until November 15
for one vessel of over 35 feet draft.
BUSINESS OPERATIONS
Secondary only to the operation of the canal is the function of
supplying various services to shipping. Commerce requires and has a
right to expect at the canal certain adjuncts essential to shipping, such
as coaling stations, fuel-oil plants, dry docks, marine repair shops,
adequate terminal facilities for the transshipment of cargo, store-
houses for the purchase of ships' chandlery, commissaries for the
replenishment of food supplies, and similar essential services. These
-ervices, under coordinated and centralized control, are provided by
the various business units of the Panama Canal and Panama Railroad
Co. The coordination of such services with the transit of ships
through the canal assists materially in the efficient and economical
operation of the waterway. Moreover, in providing marine repair
facilities, fuel, and other supplies at reasonable cost, the operation of
these business units promotes traffic through the canal.
ADMINISTRATION-GOVERNMENT
The usual functions of government, such as quarantine, public
health, immigration service, posts, customs, schools, police and fire
protection, aids to navigation, steamboat inspection, hydrographic
and meteorological work, water supply, sewers, construction and
maintenance of streets, and similar activities which, in the United
States, are directed by various officers of the national, State, and
municipal governments, are intrusted in the Canal Zone to the
governor, and are executed under his authority and responsibility.
This centralization of all governmental activities under one head
simplifies the problem of economical and efficient administration,








REPORT OF GOVERNOR OF THE PANAMA CANAL


since it has been found in many instances to be practicable to as4i-n
governmental functions to departmental heads and their subordinates
and thus maintain not only complete cooperation between government
administration and canal operation but to reduce materially the cost
of governmental administration as well.

SERVICES RENDERED BY THE CANAL TO SHIPPING

The most important items of the business of the canal and its
adjuncts, covering principal services to shipping are expressed numer-
ically in the following table, which presents a comparison of the
activities during the fiscal year 1932 with the two years immediately
preceding:


Transits of the canal by ships paying tolls ----------
Free transits--------.--.-----. ------------------
Total transits of ocean vessels------------------
Avornge laril. transit:
Comrinir-mal traffic ----------------------------------
Free traiisits ----------------------------------
Total -------------------------------
Transits of launches (not counted in commercial tratill i.
Nu ni be'r of lockages during year:
Gatun Locks---------------------------------------
Pedro Miguel Locks-------------------------------
Miraflores Locks-------- ---------
Average lockages per day:
Gatun Locks---------------------------------------
Pedro Miguel Locks--------------------------------
Miraflores Locks-...-------------------------------
Tolls levied on ocean vessels----------------------------
Tolls on launches (not included in above)-------------
Total tolls ----------------------------
Cargo passing through canal iton'..................
Net tonnage (Panama Canal iuLa'urement) of transiting
vessel'; ............. ............................ .......
Cargo P'er net ton of ocean vessels, including those in
balluast..................... ..........................
Averag'. tolls per ton of cargo, including vessels in bal-
last -- --------- ------------ -------------------
Calls at canal ports by ships not tranmiting canal------
Cargo handilcd and transferred at ports (tons)---------
Coal. sales and issues (tons). ---------------------
Coa,. number of sh i ps s.orv edl other than vessels operated
by the Panama Canal.-----------------------..---
Fut-l oil pumped (barreli .............................
Furl oil. number of iiiip served otlier than vessels oper-
ated by the Panaiina Canal........................
Ships repaired, other than Panamia Canal equipment --.
Ships dr3 -dioeLed, other than Panamia Canal equipment.
Provisions sold to ships (commissary sales)-----------
'liandlery sold to ships (storehouse sales) -----...----


Fiscal year 1930 Fiscal year 19311 F i;L I


year 1932


6,185 5,529 4, 506
600 568 473
6,785 6,097 4,979

16.945 15.148 12.311
1.644 1.556 1.292
18. 589 16.704 13.603
91 113 94
6,135 5,571 4,615
6,436 5,824 4,842
6,338 5,783 4,826
16.8 15.3 12.6
17.6 16.0 13.2
17.4 15.8 13.2
$27,076,890.01 $24,645,456.57 $20,707,377.05
517.77 652.32 478.94
$27,077,407.78 5.24, 646,108.89 $20,707, S55.99


30,030,232
29,980,614
1.0017
$0.90165
1.136
,.347. 24A
2,(2:. 5'.!)
760
13,593,907
2,431
960
148
$1, 570,.485.07
7'. 911.16


25,082,800
27,792,146
.9025
$0.98256
983
1,168, 268
169,504
452
12,120,522
2,044
770
135
$1,293,384.67
55,309.48


19,S07,998
23,625,419
.8384
$1.04540
874
989,534
65,463
277
7,767,356
1,407
713
125
'74 ..,010.96
i":. 895.95


REVENUES AND EXPENSES

The net incine from tolls and miscellaneous receipts, known as
canal revenue, was $11,194,800.88, or $3,402,426.33 below similar
income for 1931, and $6,780,043.78 below 1928, the latter representing
the year of peak income derived from canal operations.






REPORT OF GOVERNOR OF THE PANAMA CANAL


The decline in net income in the past year is due wholly to the
decline in revenue received from canal transits, the receipts from tolls
having decreased $3,937,981.90 as compared with the receipts in 1931.
Total canal revenues, exclusive of profits derived from business oper-
ations, totaled $21,034,012.72 as compared with corresponding figures
of $24,990,580.84 for the preceding fiscal year. Expenses of opera t ion
and maintenance, exclusive of business units, aggregated $9,839,211.84,
leaving net canal revenues amounting to $11,194,800.88.
Revenues derived from the conduct of business operations under
the Panama Canal totaled $17,530,214.63. Expenses of operation,
including plant depreciation, totaled $16,973,119.19, leaving a net
profit of $557,095.44.
Combined revenues accruing from the operation of the canal and
its business units totaled $11,751,896.32. The total capital invest-
ment, including compound interest on construction funds, was
$533,106,009.47 at the close of the fiscal year. Net receipts of $11,-
751,896.32 consequently represent a return of slightly over 2 per cent
on the capital inve-te(d.
The foregoing figures do not include the result of operations ca rried
on with Panama Railroad Co. funds. The gross receipts from sales
and services furnished by the various divisions of the Panama Rail-
road Co., exclusive of the Panama Railroad Steamship Line, amounted
to $12,739,350.41. Expenses totaled $12,014,442.32, leaving a net
revenue accruing from Panama Railroad operations on the Isthmus
of $724,908.09. Adding thereto interest, exchange, and miscellaneous
profit and loss items amounting to $57,556.40, resulted in a net income
of $782,464.49 for the year.
For comparative purposes the net revenue from canal and railroad
operations for the past five fiscal years are shown immediately below:

Net revenues
Fiscal year Canal auxil- Panama R. R.
Canal proper iary business kuxiiary bus- Grand total
units iness units

1928....................................... --------------------------------$17,974,844.86 $736,719.43 $1,600,283.61 $20,311,847.90
1929-----------------.------------------ 17,479,775.01 737,850.26 1,693,873.17 19,911,498.44
1930------------.----------------------- 17,832,451.78 760,971.66 1,523,874.82 20,117,298.26
1931----------------- ------------------- 14,597,227.21 562,764.17 991.383.72 16, 151, 37.5.10
1932------------------------------------ 11,194,800.88 557,095.44 7 2, 464.49 12,534,360.81








SECTION I


CANAL OPERATION AND TRADE VIA PANAMA
TRAFFIC IN 1932
Traffic through the Panama Canal continued to decline through
the fiscal year 1932. The daily average of commercial transits
decreased almost steadily from 13.10 in July, 1931 (with a rise to 13.20
in September), to 11.20 in June, 1932. For the year it averaged
12.31, as compared with 15.15 in 1931, 16.95 in 1930, 17.37 in 1929,
and 17.63 in the peak year 1928.
The history of traffic through the Panama Canal from its opening
on August f5, 1914, was one of slow growth in the first eight years,
during which the maximum transits in a fiscal year were 2,892 in
1921. With the development of the California oil fields the traffic
moved up sharply in 1923, to 3,967 transits and in 1924 to 5,230. It
continued at about this level until the business expansion of 1928
and 1929, reaching a peak of 6,456 transits in 1928 and 6,413 in 1929.
From this peak it has receded distinctly, and for 1932 was less than
in 1924. Transits, tolls, and tons of cargo in 1932 were the lowest since
1923. Net tonnage of vessels, Panama Canal measurement, was also
lower than in 1924 but exceeded the net tonnage in 1925.
Peak figures for canal transits for the 18 years of canal operation
occurred in 1928, when a total of 6,456 commercial vessels were passed
through. The greatest tolls, $27,127,376.91, and largest amount of
cargo to have passed through, 30,663,006 tons, were in 1929; and
the largest aggregate net tonnage, Panama Canal measurement,
29,980,614, was reported in 1930.
The number of transits of commercial vessels in 1932 was 4,506,
compared with 5,529 in the preceding year, a decrease of 1,023, or 18.5
per cent. Transits of naval vessels and other public vessels of the
United States Government (including two ships operated as training
vessels for the merchant marine service) and those transiting solely
for repairs, none of which paid tolls, numbered 473 in 1932, as com-
pared with 568 in 1931. The total of toll-paying and free transits
combined, which includes all seagoing vessels of 20 tons or over,
numbered 4,979, in comparison with 6,097 in 1931, making daily
averages of 13.60 and 16.70, respectively.
The net tonnage, Panama Canal measurement, of the 4,506 com-
mercial vessels transiting in 1932 was 23,625,419, a decrease of 15
per cent in comparison with 1931.
Tolls collected amounted to $20,707,377.05, a loss of 16 per cent as
compared with 1931.
Cargo carried through the canal amounted to 19,807,998 tons, a
decline of 21 per cent in comparison with 1931. The large decline in
5






REPORT OF GOVERNOR OF THE PANAMA CANAL


cargo tonnage was the most pronounced feature of the general loss
in all phases of canal traffic, indicating that lines have not suspended
sailings in the same proportion as the decline in cargo offerings. This
is to be expected in the case of services operating on established
schedules.
During 1931 the decline in cargo tonnage was relatively higher in
the movement from Atlantic to Pacific, which was due largely to the
decrease in shipments of various manufactured goods coming from
the United States and Europe. In 1932 this trend was reversed, the
largest decline having occurred in the Pacific to Atlantic movement,
which for the most part consists of raw materials, prominent among
which are mineral oils, ores, lumber, and nitrates. The decline in
cargo tonnage in this direction was 23 per cent, compared with the
movement in 1931, while in the opposite direction the decrease was
15.6 per cent. All the principal trade routes through the canal, with
the exception of those between the United States and the Far East
and between the United States and the Hawaiian Islands, suffered
from the decreased cargo tonnage in the past year. This phase of
the traffic is discussed in detail under "trade routes and cargo."
The receipts from tolls reported by the accounting department for
the fiscal year 1932 were $20,706,568.49. This figure includes tolls
on launches, which are not included in "commercial traffic," of ocean-
going ships, and has been adjusted in accordance with refunds for
overcharges and supplemental collections in the event of under-
charges. These items account for the difference of $808.56 between
the accounting figure and the figure for tolls levied on commercial
traffic as reported in the following studies of traffic, which are based
on tolls levied at the time of transit.
Commercial traffic figures for each fiscal year since the canal was
opened to navigation are shown in the table below.


Fiscal year ended June 30- transit Canal net Tolls cargonof
tonnage

19151 -------- -------------------------------- 1,075 3,792,572 $4,367, 550.19 4, 888, 454
1916 2----------------------------------------- 758 2,396,162 2,408,089.62 3,094,114
1917----------------------------------------- 1,803 5,798,557 5,627,463.05 7,058,563
1918.---.-----------------------------.--------- 2,069 6,574,073 6,438,853.15 7,532,031
919------------------.----------------------- 2,024 6,124,990 6,172,828.59 6,916,621
1920 ---------------------------------------- 2,478 8,546,044 8,513,933.15 9,374,499
1921_---------------------------------------- 2,892 11,415,876 11,276,889.91 11,599,214
1922----------------------------------------- 2,736 11,417,459 11,197,832.41 10,884,910
1923 ----------------------------------------- 3,967 18,605,786 17,508,414.85 19,567,S75
1924--.-------.. ---------.----------..------------- 5,230 26,148,878 24,290,963.54 26,994,710
1925---------------------------------------- 4,673 22,855,151 22,855,151 21,400,523.51 23,958,836
1926 ----------------------------------------- 5,197 24,774,591 22,931,055.98 26,037,448
1927-----.--------------------...---------------- 5,475 26,227,815 24,228,830.11 27,748,215
1928 --------------------------.--------------. 6,456 29,458,634 26,944,499.77 29,630.709
1929 -----------------------------------------....... 6,413 29,837.794 27,127,376.91 30,663,006
1930-------------- ---------------------------- 6,185 29,980,614 27,076,890.01 30,030,232
1931 ----------------------------------------- 5,529 27, 792, 146 24,645,456.57 25,082,800
1932 -------------------------------------------- 4,506 23,625,419 20,707,377.05 19,807,998
Total ------------------------------ ------69,466 315,372,561 292,864,828.37 320,870,235

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








REPORT OF GOVERNOR OF THE PANAMA CANAL


The number of transits per month tended generally downward
through the fiscal year 1-932 but the variations from month to month
were not as pronounced as in the several months. The maximum
was 406 in July, 1931, the minimum 336 in June, 1932, a difference
of 70 vessels, or 20.83 per cent of the lower number. In 1931 the
difference between maximum and minimum was 117, in 1930 it was
86, and in 1929 it was 116. In 1932 the daily average number of
transits ranged between 11.20 in June and 13.20 in Septeimber, a dif-
ference of 2. The monthly average of transits was 376, as compared
with 461 in 1931. Monthly transits and tolls, with daily averages,
for commercial vessels only, were:


Month


July.......................................-.......-
August------- --------------. -------.------- -
S e p t e m b e r - - - - ---- - --* - -- - - - - -
O ctob er -- - - ---- - -- --- -- ----. -- --.- - -
N ovem b er .. -- ...-- - - ---- - - - - - --.-. -
December ------------------------ --. ------ -
1932
January ------------.------ ------------
February .-------.--.---.--------------------
March. --- -----------. ------- -.-.. -- -..--
April----------------- -------------.------..---
May - -----------------------------..---
June----- ------------------------ --- ------ -..--.
Total------ ---------- ---------------------


Total for month


Transits


4,506


Tolls


Daily averages


Transits


SI I


$1, 848,638.45
1, 770, 202. 71
1,820, 735. 75
1,823,650.74
1, 762, 036.19
1, 757, 869.54

1,770,250.68
1,647,797.06
1,645,366.81
1, 608, 634. 67
1,717,401.26
1,534,793.19
20,707,377.05


13.10
12.58
13.20
12.58
12.53
12.48

12.16
12.34
11.71
12.33
11.52
11.20
12.31


Tolls


$59,633.50
57,103.31
60, 691.19
58,827.44
58,734.54
56, 705.47

157,104.30
56, 820.59
53,076.35
53,621.16
55,400.04
51,159.77
56,577.53


1 $17.50 collctedul on a supplemental bill for a transit in a previous month deducted from total in compu ing
this average.

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


Number of Panama Canal net Tons of cargo Tolls
vessels tonnage
Month _____ _____________________________________
1930 31 1931-32 1930-31 1931-32 1930-31 1931-32 1930-31 1931-32

July.... ..... 488 406 2,431,895 2,110,701 2,402,047 1, t.. 803 $2,180, 511 '-21.1,848,638.45
August------------- 465 390 2,345,573 1,998,194 2,148,469 1, 7.sj. 234 2,080, 2.10 42. 1. 770, 202.71
5'llenib. .... 458 3-ti 2,314,424 2, 070, 873 2,059,582 1, 751. 855 2,057, 101 'N 1,820,735.75
Ocloberr...... ... 517 Im0 2,W. I5-,0 2. Ol,;1,)00 2,394,410 1,7i,2,670 2,288, *''2 0)' 1, 21. 650. 74
\No,.iehr ''. ... 479 376 2, 371, 487 2,001. 74 ) 2,263,200 1,577,523 2,098, 31i7 1C' 1, 7tr2, 036.19
Decenimer.......... -.5 387 2, 47.1 626 2.033.158 2, 1i'i,884 1,1.4, 904 2, N2,. -.5 1,757,869.54
Januar.'. ...... ... 17. 377 2, 'i10, 871 2. 022, 275' 2,106, .-i- 1, 1.s, 585 2, 10U\ 41 12 1,770,250.68
Februjr .......... 4.l' 3Q 2. 6 W1 167 1. I. 17 1, I. N' Ij'. t 1-'. 5' 1. 'IS .i2 7NI| 1, ti-7. 71.7 06
M arch. ... .i 2, 211, W4 1, 84, tb,. 1. 15, j .-,U7 I, '43, 1.-' 1, Iurl, 4. 1 221' I, 1A- .5-R 81
A1 ir . .. 4.', 170' 22 05, 105 1, 6., r.i2 2. 011, I 1 1. 44.3, 731 2, UI I. M l :i 1, t.*, 634 67
M ay-la. -........ .. 42 3iW7 2. IM 9'.i i.9 ] J, ns 1. "I2'., 45.2 1, f '., 7'IJ 1, '. P' 2 14-, 1, 717, 101 26
June-------..--... -40110 13,1, lj541, 74.3, iU I, 7.'... l7lU 1, 404, 5 1. '12l. 40, 7.1 1. 934, 793 19
Total -.----- 4,-U. 27, 39. 14r,-,6% 25,j, P, 7,.,N-l. V, 57

142576-32--2






REPORT OF GOVERNOR OF THE PANAMA CANAL


PROPORTION OF TANKER TRAFFIC
Transits of tank ships during the fiscal year 1932 totaled 612, a
decrease of 332, or 35.2 per cent under the 1931 total of 944. Transits
of tankers in 1932 were the lowest for any fiscal year since the beginn-
ing of the heavy movement of mineral oils from the California field
in the fiscal year 1923. Tanker traffic in 1932 comprised 13.6 per
cent of the total commercial transits, made up 15.1 per cent of the
total net tonnage (Panama Canal measurement), paid 15.4 per cent
of the tolls collected, and carried 17.7 per cent of the cargo which
passed through the canal.
As compared with 1931, the number of transits of ships engaged in
general traffic (all commercial shipping exclusive of tanker traffic)
was 691, or 15.1 per cent lower than the number transiting in 1931.
This was a relatively smaller decrease than that of tanker traffic.
With respect to net tonnage (Panama Canal measurement) tank ships
decreased 32.4 per cent in comparison with 1931, while general traffic
declined 10.9 per cent; tolls on tanker traffic fell off 31.7 per cent as
compared with 12.3 per cent for general traffic; and cargo tonnage of
tank ships decreased 31.4 per cent in comparison with a decline of
18.4 per cent for cargo carried in general cargo vessels.
The three tables below show the composition of the traffic as divided
between tank ships and all other commercial, or tolls-paying vessels,
indicated here as "general." The tables show the number and daily
averages of the two classes, and of the total; the quantities and pro-
portions of net tonnage; and the amounts and proportions of tolls.
They begin with the fiscal year 1923, covering the period during which
tanker traffic has been an important component of the traffic through
the canal:
Number and daily average transits of tankers and general carriers

Commercial transits Daily average transits
Fiscal year -________________
Tankers General Total Tankers General Total

1923------------------------------------ 913 3,054 3,967 2.5 8.4 10.9
1924.----------------------------------- 1,704 3,526 5,230 4.7 9.6 14.3
1925.------------------------------------ 1,079 3,594 4,673 3.0 9.8 12.8
1926.------------------.---------------- 1,090 4,107 5,197 3.0 11.2 14.2
1927------------------------------------ 1,324 4,151 5,475 3.6 11.4 15.0
1928----- ----------------------------- 1,121 5,335 6,456 3.0 14.6 17.6
1929------------------------------------ 1,083 5,330 6,413 3.0 14.6 17.6
1930.----------------------------------- 1,218 4,967 6,185 3.3 13.6 16.9
1931------------------------------------ 944 4,585 5,529 2.6 12.6 15.2
1932:
July------------------------ --------- 59 347 406 1.9 11.2 13.1
August------------------------------ 52 338 390 1.7 10.9 12.6
September--..-------------------------- 55 341 396 1.8 11.4 13.2
October.------------------------------ 57 333 390 1.8 10.8 12.6
November---------------------------- 50 326 376 1.7 10.8 12.5
December---------------------------- 51 336 387 1.6 10.9 12.5
January------------------------------ 45 332 377 1.5 10.7 12.2
February---..-------------------------- 38 320 358 1.3 11.0 12.3
March---------.---------------------- 35 328 363 1.1 10.6 11.7
April.-------------------------------- 49 321 370 1.6 10.7 12.3
May..-------------------------------- 55 302 357 1.8 9.7 11.5
June--..-----.------------------------- 66 270 336 2.2 9.0 11.2


4,506 1.7 10.6 12.3


Total, 1932-....-- -------------------


3,894








REPORT OF GOVERNOR OF THE PANAMA CANAL

Proportions of tanker and general net tonnage


Prun,rila Canal net tonnage


Fiial year


Tainki'rs


1923 -------------------------- 5, 374. 3S4
1924 .. ------..--------------------- 10,212, 07
192 -- .. ....................... -6,424,.622
1926------------------------- 6,3413.240
1927... ....................... 7, 624, 112
1928.-----------.---------------- 6.243,969
1929 --------------------------- .5. 44, 263
1930.--------------------------- 6,564,138
1931 --------------------------- 5,284,873
132 . . . . . . ... . . . 3, 570, 398


l h.-n.*rO


13,231,402
15,936,831
16,430,529
18. 431,351
Ds,,nij:$, 703
23,211.665
2.3, !1,3, 531
23, 41A. 476
22, "ia7. 273
20, 11i.'.5, 021


T '.it l

18,605,786
26,148,878
22,855, 151
24, 774.591
26,227,815
29,458,634
29,837,794
29,980.614
27, 7,2, 146
23,625,419


Pirgentaige of total net tonnage

T.inkrr- 'i'nrr.il Tf'J'il

28.9 71.1 100.0
39.1 60.9 100.0
28.1 71.0 100.0
25.5 74.5 100.0
29.1 70.,9 100.0
21.2 78.8 100.0
19.6 80.4 100.0
21.9 78.1 100.0
19.0 81.0 100.0
15.1 84.9 100.0


Proportions of tolls from tank ships and from all other vessels


T..11-. irin by shipping using canal


General


'12,738,874.94
15,219,127.89
15, 672,221.25
17,3111. 1** '
17, 5.7'). V2.; 21
21, iI-, ':'.'2 Cl
21, 981,744.72
21, :i7,926.73
19, 963,136.43
17, 510, 240. 76


Total


$17. 508,199.57
21, 2-1.963.54
21, 4 N. 523.51
22,, 1.055. 98
24, 22w, 830.11
26,944.499.77
27. 127.376. 91
27. 117'., 890.01
24, 1.4 7456.57
21. 707,377.05


Percentage of total tolls


T nkr:.

27.2
37.3
26.8
24.4
27.5
20.1
18.9
21.3
19.0
15.4


General

72.8
62.7
73.2
75.6
72.5
79.9
81.1
78.7
81.0
84.6


TANKER CARGOES

Cargo carried through the canal in tank ships during the fiscal year
1932 amounted to 3,501,390 tons, in comparison with 5,102,836 tons
in 1931, a decrease of 1,601,446 tons, or 31.4 per cent. Segregation
of the 1932 traffic by direction of transit shows that 308,560 tons of
tanker cargo went through bound from the Atlantic to the Pacific,
and 3,192,830 tons from the Pacific to the Atlantic. Included in thlie
Atlantic to Pacific cargo carried by tankers were 38,312 tons of
creosote from Europe to the United States; 5,373 tons of cottonseed
oil and 456 tons of whale oil from the east to the west coast of the
United States; 600 tons of whole oil from the United States to the
Philippine Islands; and 263,819 tons of mineral oils from the United
States, West Indies, South America, and Mexico destined to the
United States, South America, Far East, Canada, Balboa, Central
America, and Australasia.
The cargo carried by tankers from the Pacific to the Atlantic
included 59,771 tons of coconut oil and 8,790 tons of molasses from
the Philippine Islands to the United States; and 15,250 tons of
molasses from the Hawaiian Islands to the United States. Mineral
oils from the Pacific aggregated 3,109,019 tons, of which approxi-
mately 71 per cent originated in California. and 29 per cent in Peru
and Ecuador. Shipments were destined as follows: To the United


i i- ..1 year


1923-.-------------
1924.- ...--------------
1925 . ...----------
1926. .------. ------- .
1927. .. ..-- -------------
1931 . . .. . . .
192..... ---------------
1929 ---------------------
1930 ..--.. ...-.------
1931 .2 -------------
1932.---..-------.------


Tankers


$4, 7690, 324.63
9, f171. 835.65
5, 72". 302.26
5,626j, 167.93
6, i65. 806.90
5, 46,. 437.16
5, 14". 632.19
5, 7i;, 963. 28
4, 6,2.320.14
3, 197,136.29


Total

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0


i ~ i ~i-- -I






REPORT OF GOVERNOR OF THE PANAMA CANAL


States, 54 per cent; to Europe, 30.6 per cent; to Canada, 13.8 per
cent; and the remaining 1.6 per cent went to Cristobal and the West
Indies.
Of the total mineral oil cargoes carried in tankers through the canal
during the fiscal year 1932, approximately 64 per cent was gasoline,
benzene, and naphtha; 22 per cent crude oil; 10 per cent gas and fuel
oils; and the remainder lubricating oils and kerosene.

NATIONALITY OF VESSELS
Twenty-two nationalities were represented in the commercial
traffic passing through the canal during the fiscal year 1932, compared
with 19 in the previous year. Vessels of United States registry led
in the number of transits, as has been the case during the preceding 13
years. From 1915 to 1918, inclusive, transits of British vessels
exceeded those of any other country. In all years of operation, either
British or United States vessels have led in transits.
Transits of United States vessels during the fiscal year 1932 were
500 less than in the previous year, a loss of 20.7 per cent. British
shipping declined by 336 transits, a loss of 24.2 per cent. Swedish
shipping increased by 3 transits, a gain of 2.7 per cent, and transit of
Italian vessels equaled the number in the previous year. Vessels of
all of the six other leading nationalities (i. e., those with more than
450,000 net tons of shipping for the year) decreased as follows: French,
29 transits (26.4 per cent); Danish, 15 transits (12.5 per cent); Nor-
wegian, 52 transits (14.3 per cent); German, 31 transits (8.4 per cent);
Japanese, 14 transits (7.3 per cent); and Dutch, 8 transits (6.4 per
cent).
With respect to cargo carried through the canal, vessels of United
States registry carried 44.6 per cent of the total; British vessels, 23.4
per cent; Norwegian, 7.2 per cent; German, 5.4 per cent; Japanese,
5.2 per cent; Swedish, 3.8 per cent; Danish, 2.6 per cent; Dutch, 2.2
per cent; and French, 1.7 per cent. The vessels of these nine nations
combined carried an aggregate of 19,073,001 tons, or over 96 per cent
of the total cargo passing through the canal.
Vessels of all the leading nationalities carried less cargo than in
1931, except Swedish, which carried 5.4 per cent more. Vessels
of French registry showed the largest proportionate decrease in cargo
carried-33.3 per cent under the preceding year. Cargo carried in
United States vessels decreased 25.2 per cent; in British vessels, 22.3
per cent; in Norwegian vessels, 17 per cent; in German vessels, 14.5
per cent; in Danish vessels, 14 per cent; in Dutch vessels, 7.7 per cent;
and in Jupanese vessels, 6.6 per cent.
Cargo tonnage traffic during the past five years is shown in the following tabulation:








REPORT OF GOVERNOR OF THE PANAMA CANAL 11

Tons of cargo carried


1928 1929 1930 1931 1932


L'it..*i States.--------------------------- 14,248,735 14.07,'. 731 14, 499, 233 11 .a, 112 8, 55. 055
British-----------------------.------- 8,075.022 8, 1-1. 221 7, 172,99 i. T71. 2-1 4, fiN. 068
Norwegian.-------------.------------------1, 124 1, f.'i, 366 1. :N. 278 1. 7-'1. *3, 1, 427, 284
German-----.--- ------------------------1, 1 421 1,482, 279 1, "'", 022 1, -'; 7, 1, 17. 738
J pan ................. .. . ... 166 1.11. 041 1, 11(11 735 1,104,512 1, r 1 704
. di- .......>......... ... ... . . 705, 154 845. 664 :32. 273 721,945 7.1,015
anish----------------------------------- 380, 240 51. 452 r.'.I, 914 606. 100 521. 481
Dutch--.--------------------------------- 37,178 i'i". 956 618.718 177. 769 -4111.870
i nci..................................-- 600,421 50i. 763 .i':. 753 .YI'. 011 .1 786
All remaining----------------------------1, 4'.', 248 1,$'7, 533 .'I.* 337 I0. 904 .1. 997
Total----------------------------- 29,630,709 30,663,006 30,030,232 25,082,800 19,807,998



Segregation of the traffic through the canal during the fiscal year
I1032, by nationality, is presented in the following table, showing

transit, measurement tonnage, tolls, and tons of cargo:


Commercial trafic through the Panama Canal, by nationality of vessels
/' 5 3S2-


Num-
Nationality her of
ships



Belgian- ---------- 15
rit ri . . . . .. ... 1,054
Chilean,------------- 5
Colombian-..-------- 33
Costa Rican ------- 1
Danish.------------- 105
T uip e............. 33
Dutch.-------------- 117
Finnish-------.------ 1I
French ............ 81
German------------ 338
Greek-------------- 16
Honduran----..----- 4
Italian----- --- 67
Japanese. -------- --- 179
N.rwe;ian........ 311
I'anrmanian....... 102
Peruvian-----------. 3
Spnni-hl ........... 2
w% rtiih ......... 114
United States.-------... 1,917
Yug.-lar -..-.-.- 8
Total, 1932.-- 4,506
Total, 1931-... 5, 529
Total, 1930... 6,185


Measurement tonnage


Panama United e:teed
inalnetq States trs
Cnlntequivalent ross


82,487
5,905,997
S, 95r,
5, 350
331
561,492
244. 300
553,085
4,460
451. R0
1, 2 VI). |ri
61,544
10.060
474. 441
980,349
1,530,459
81,130
3,367
8.470
538,989
10,790,751
3", 612


23, 625. 419
27, 792, 146
29,980,614


64,440
4,293, 526
6,710
5,212
333
391, 131
207. -'14
369,944
4,498
297,566
864,591
41,207
8.116
336. 920
797,480
1,032,132
44,463
3,270
6,832
37A. 576
8, 027.*.21,
27 727


17, 207. 789
20. 59.5. 189
22,683,006


103,643
7,189, 973
13,337
7,912
497
640,687
3:. 1.636
6..5, 641
4,568
.31.694
1,460,065
64.338
13,196
623,579
1,226,693
1,724.341
b3,664
4,614
11.508
4.1i7. Id 1
13, 10'., i.53
44,868
28,770,941
31. 232. 824
37, 430.657


Tolls
Registered
net


6. 874 $71,889.20
4,'3.71, 934 5,071,635.31
7, 754 8,258. 09
5, 252 5, 720. 03
255 249.75
403,156 172.460.19
19I.028 2-'17.087.09
37:1.360 448, 527.20
2, 760 5,352.00
305.829 371.786.60
T71, 777 1,072.736.05
39.836 41. *92.40
". 024 8,694.10
370.173 414,286.78
797.392 991,758.25
1,037.446 1.215,134.95
44,473 54,948.16
2,642 4,049.60
6. 904 7,319.20
45%, 649 435,051.16
8,008,940 9, 749,018.51
27,690 32, 522.43
17,386,148 20, 707,377.05
20, 76". 461 24, 645, 456.57
22,797.619 27,076,890.01


Tons of
cargo



SO, 798
4, 63", 068
6,420
4,424
----..'.---
521. 481
;23.<. '4
440..,,70
5,660
398.786
1, 07":. 738
*;9, 034
1,567
215.',139
1,0 1. 704
1,427.284
4',046
4,615
7,650
761,015
S. S.11.055
52,760
19. 807.998
25. 0O2. 800
30, 030.232


NET TONNAGE OF VESSELS


The total of 4,506 commercial vessels which transited the canal in
the fiscal year 1932 was comprised of 4,497 merchant, vessels, yachts,
etc., paying on the basis of net tonnage, and 9 naval vessels paying
tolls on the basis of displacement tonnage. Fifty-four per cent of the
4,497 commercial transits on which tolls were levied on net tonnage
were by vessels of from 4,000 to 6,000 net tons, Panama Canal
measurement. Vessels under 1,000 net, tons equaled 6.7 per cent of
the transits, and 3.1 per cent were by vessels over 10,000 net tons.


I






REPORT OF GOVERNOR OF THE PANAMA CANAL


The average tonnage of all transits was 5,254 net tons as compared
with 5,036 net tons for the preceding fiscal year, an increase of 218
tons, or 4.3 per cent.
Vessels of Danzig registry (all tank ships) averaged the highest net
tonnage at 7,403, with those of Italian registry second, with 7,156
net tons, and those of French registry third, with 5,686 net tons. The
lowest recorded average by nationality was for Colombia, with 162
net tons; the next lowest for Costa Rican vessels, with 331 net tons;
and the next lowest for Panamanian vessels, with 795 net tons.
The British liner Emnpress of Britainii, of 27,503 net tons, Panama
Canal measurement, was the largest commercial vessel to transit
during the year, and since the opening of the canal.

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

Naval and other vessels owned and operated in the Governeint
service of the United States and Panama, war vessels of Colombia,
and vessels transiting the canal solely for repairs at the Balboa shops,
are exempt from the payment of tolls, and such vessels are not
included in the general transit statistics in this section. In 1932 there
were 458 vessels in direct service of the United States Government, 2
vessels owned by the United States Government but opera ted as
training vessels for the merchant marine service, and 13 vessels tran-
siting solely for repairs, a total of 473 which transited the canal
without paying tolls. These vessels carried a total of 121,434 tons
of cargo.
If charges at commercial rates had been made against these ves-
sels, the revenue from tolls would have been increased by approxi-
mately $899,851.40 from the 458 vessels in direct service of the United
States Government, $6,891.25 from the two training vessels, and
$19,585.92 from the 13 ships transiting for repairs, making a total of
$926,328.57.
Launches of less than 20 tons measurement (Panama Canal net)
are also excluded from the statistics of commercial traffic, although
they are not exempt from the payment of tolls. The number of
these transiting the canal during the year was 94, and tolls aggregat-
ing $478.94 were collected for their passage.

TRADE ROUTES AND CARGO

As in previous years, the preponderant movements of cargo were
to or from the two coasts of North America. In the traffic from the
Atlantic to the Pacific approximately 80 per cent of the cargo origi-
nated on the east coast of North America, and about 52 per cent of
all cargo going through to the Pacific was destined to the west coast



















































.I-
. %" n

*(






REPORT OF GOVERNOR OF THE PANAMA CANAL 13

of North America. Of the traffic in the opposite direction, 68 per
cent of the total came from the west coast of the continent, and
about 57 per cent of all cargo from the Pacific through the canal was
destined to the cast coast of North America.
The specific trade routes over which the greater part of the cargo
shipped through the canal moved during the fiscal year 1932 were, in
order of the quantity of cargo, as follows: Between the Atlantic and
Pacific coasts of the United States intercoastall); between Europe
and the west coast of United States and Canada; between the United
States and Far East (including the Philippine Islands); between
Europe and the west coast of South America; between the east coast
of the United States and the west coast of South America; between
Europe and Australasia; between the United States and the Hawaiian
Islands; between the east coast of the United States and Australasia;
and between the east coast of the United States and the west coast
of Canada. In the past year the cargo moving over these routes
through the canal aggregated 18,064,396 tons, and was 91 per cent of
the total cargo.
The following tabulation shows the aggregate movement of cargo
over these nine principal routes of trade, the sum of miscellaneous
routes and sailings, and the total during the past four years:

Cargo shipments through the Panama Canal during the past four fiscal years,
stgr-galed by principal trade routes

''Tonuri of cargo
Trade route ------------
1929 1930 1931 1932

United States intercoastal:
At lant ic to Pacific-------------.. --------------- 3,184,141 3,161.530 2,370.,751 1, 91 052
Pacific to Atlantic- ---------------------------- 6,992,632 7,32J,,534 6, 4'25, 624 4,705,932


Europe and west coast UrnitI.l States/Can aida:
Atlantic to Pacific--------------------------------
Pacific to Atlairtic............... ..................
T otal.. .......... ...............................
United States and Far E.:it including Philippine
Islands
AtIlantic to PicilL ... ...........................
Pacific to I lan ic... ...........................
T u u l ................ . .....................
Europe and west coast South America:
.A11.iiiItiL to Pacific--------------------.. -........
Pacific to A t lan i ................................


10,176,773 10,490,064 8,805,375 6,622,984

797,856 838,226 549,948 404,086
5,172,286 4,710,214 4,631,157 3,943,880
5,970,142 5,548,440 5,181,105 4,347,966

1,913,663 2,072,511 1,360,772 1,714,725
63.. 618 1%. 184 862,053 851,124
2. 52. 2x1 2.f). r0.1 2. 222. ',25 2. 565. '4;

I "., 760 881, 666 503,566 206, 908
2..32. 935 1,934,744 1,804,191 1,532. 204


Total .......................... .......... 3.228,695 2.816,410 2,307,757 1,739,112
East coast United States and west coast South America:
Atlantic to Par-ilfic.................................. 404. 928 37s.101 252,363 116,638
Pacific to Atlant I ie ... ............. 2,994,043 3, 14-1,475 2,105.298 1,001.749
T otal ............................................ 3, 39 7i I 3,522.576 357. 6'1 I. 11 3,3 7
--.--I -






14 REPORT OF GOVERNOR OF THE PANAMA CANAL

Cargo shipments through the Panama Canal during the past four fiscal years,
segregated by principal trade routes-Continued

Tons of cargo
Trade route ------*----
1929 1930 1931 1932

Europe to Australasia:
Atlantic to Pacific--------------------------------- 583,977 604,265 441,470 286,740
Pacific to Atlantic------------------------------ 573,212 594,930 671,843 422,227
Total ----------------------------------- 1,157,189 1,199,195 1,113,313 708,967
United States and Hawaiian Islands:
Atlantic to Pacific------------------------------ 91.637 100,731 124,755 1?7.576
Pacific to Atlantic---------- ------- ------------- 386 96,181 135, 478 ;. 43
Total-------------------------------------- 140,023 196,912 260,233 523,419
United States and Australasia:
Atlantic to Pacific----------------------------- 641,269 422,839 202,311 187,393
Pacific to Atlantic-----------------------------164, 746 238,803 166, 648 81,501
Total---------- ------------------------------806,015 661,642 368,959 268,894
East coast United States and west coast Canada:
Atlantic to Pacific------------------------------ 38,220 32,132 32,345 17,395
Pacific to Atlantic-----------------------------377,881 353,717 246,704 151,423
Total------------------------------------- 416,101 385,849 279,049 168,818
Miscellaneous routes and sailings:
Atlantic to Pacific----------------------------1,381,069 983,724 833,148 656,845
Pacific to Atlantic---------------------------- 1,435,747 1,334,725 1,353,375 1,086,757
Total---------.-------------------------- 2,816,816 2,318,449 2,186,523 1,743,602
Total traffic, all routes:
Atlantic to Pacific---------------------------- 9,882,520 9,475,725 6,680,429 5,635,358
Pacific to Atlantic---------------------------20,780,486 20,554,507 18,402,371 14,172,640
Total ------- --- ------------------ 30,663,006 30,030,232 25,082,800 19,807,998


Of the total cargo of 19,807,998 tons passing through the canal in
the past fiscal year, 5,635,358 tons, or 28.4 per cent, were routed from
the Atlantic to the Pacific, and 14,172,640 tons, or 71.6 per cent, from
the Pacific to the Atlantic. Of the nine principal trade routes listed
above, two showed increases in total cargo tonnage in comparison with
the previous fiscal year while the other seven showed decreases. The
two routes in which increases were recorded in comparison with the
previous fiscal year were between the United States and the Far East,
and between the United States and the Hawaiian Islands. In the
trade between the United States and the Far East (which ranked
third in volume of cargo tonnage during the year) there was a total of
2,565,849 tons, in comparison with 2,222,825 tons in the previous
fiscal year, an increase of 343,024 tons, or 15.4 per cent. The increase
over this route was due to an exceptionally heavy movement of raw
cotton during the year from the Gulf ports of the United States to
China and Japan. Cargo tonnage in the opposite direction on this
route registered a slight decrease. The other trade in which an in-
crease was recorded during the year-bet ween the United States and
the Hawaiian Islands-was due principally to heavier shipments of
sugar and canned pineapple in the Pacific to Atlantic movement.





REPORT OF GOVERNOR OF THE PANAMA CANAL


Total cargo over this trade route showed an increase of 263,186 tons,
or a little over 100 per cent in comparison with the fiscal year 1931.
In the United States intercoastal trade, which is the most extensive
by way of the Panama Canal, 6,622,984 tons of cargo were carried,
or a little over one-third of the total cargo passing through the canal
in 1932. In comparison with 1931, this was a decrease of 2,182,391
tons, or 24.8 per cent. From the Atlantic to the Pacific the loss was
462,699 tons, or 19.4 per cent, and from the Pacific to the Atlantic,
1,719,692 tons, or 26.8 per cent. Smaller shipments in a number of
important commodities, including mineral oils and lumber, contributed
largely to the loss in the Pacific to Atlantic movement, while lessened
shipments of general and manufactured goods were responsible for
the shrinkage in the Atlantic to Pacific movement.
In comparison with the preceding fiscal year, decreases as follows
occurred in the other aforementioned trades: Between Europe and
the west coast of the United States and Canada, 833,139 tons, or 16.1
per cent; between Europe and the west coast of South America,
568,645 tons, or 24.6 per cent; between the east coast of the United
States and the west coast of South America, 1,239,274 tons, or 52.6
per cent; between Europe and Australasia, 404,346 tons, or 36.3
per cent; between United States and Australasia, 100,065 tons, or
27.1 per cent; and between the east coast of the United States and the
west coast of Canada, 110,231 tons, or 39.5 per cent. In all of these
trades, decreases were recorded in both directions.
The Atlantic to Pacific cargo movement was greatly affected by
curtailed shipments of general and manufactured goods. In the
Pacific to Atlantic movement over the route between the west coast.
of North America and Europe, a considerable decline was recorded
in the shipment of mineral oils, and lesser losses in wheat, lumber,
canned goods, barley, and fresh fruit. The Pacific to Atlantic move-
ment, in the trades between South America and Europe and South
America and the United States, was greatly affected by smaller ship-
ments of nitrate; the tonnage to the United States from South
America also suffered to a great extent from lessened iron ore ship-
ments. In the trade between Europe and Australasin, so called, via
the canal and principnily of vessels plying between Great Britain and
New Zealand, the decrease in cargo was 36 per cent, as compared with
the general decrease of about 21 per cent in cargo through the canal
from 1931 to 1932. The trade between the east coast of the United
States and Australasia declined 27 per cent, due to decreases in ship-
ments of practically all commodities in the trade. The greater de-
crease in the trade between Europe and Australasia by way of the
Panama Canal is attributed in large part to the diversion of British
ships to other routes because of the depreciation in the value of the
British pound, which increases the relative expense of canal charges,







16 REPORT OF GOVERNOR OF THE PANAMA CANAL

paid in dollars. In the trade from the west coast of Canada to the
east coast of the United States, smaller shipments of lumber accounted
for the relatively heavy loss, 39 per cent.

PRINCIPAL COMMODITIES

Statistics of commodities passing through the canal are not precise
because it is not required that complete manifests of cargo carried by
vessels be submitted at the canal. In lieu of a manifest the master of
each vessel is required to file a "cargo declaration," which is a briefly
itemized statement, listing the principal items of cargo carried, and
showing their ports or country of origin and destination. These
cargo declarations are the basis of the commodity statistics. There
is a natural tendency not to list small miscellaneous shipments but to
include them under the head of "General cargo"; not infrequently no
other classification is made of entire cargoes carried by vessels.
Hence, except in the case of commodities commonly shipped in bulk,
such as mineral oils carried in tank ships, wheat, lumber, nitrates,
etc., shipments of various goods are likely to be in excess of the
aggregate tonnage reported during the year and shown in the annual
summary. Subject to errors arising from this source the tonnage of
the principal commodities shipped through the canal during the past
four years is shown in the following table:

Commodity movement

Fiscal year ended June 30-
Commodity --- ----
1929 1930 1931 1932

ATLANTIC TO PACIFIC
Long tons Long tons Long tons Long tons
Manufactures of iron and steel---------------------- 2,349, 566 2,128,712 1,320,091 781,494
Cotton, raw----------------------- --------------- 331,652 248,345 298,877 747,496
Mineral oils----------------.----------------------- 806,744 682,742 485,520 518,498
Phosphates---------------------------------------- 281,168 435,994 312,925 239,266
Paper--------------. ---------------------------- 224,276 259,314 202,478 204,297
Sulphur----------..---------. ---------------------- 238,231 215,831 190,690 197,941
Tinplate---------- --.------------------------------ 261,899 294,382 224,291 148,852
Canned goods (fish, fruit, vegetables, etc.)------------- 121,472 120,373 100,311 117,857
Coal and coke ------------------------------------- 227,883 224,439 122,179 95,199
Scrap metal---------------------------------------- 83,829 196,676 46,904 87,657
Textiles-------------------------------------------- 137,886 120,750 94,254 83,756
Machinery---- -------------------------------- 188,442 180,805 139,928 78,656
Cement ------------------------------------------ 379,968 412,347 206,483 76,870
Chemicals----------------------------------------- 77,286 82,417 66,690 72,436
Ammonia---------------- ------------------------ 108,862 153,437 79,100 71,933
Automobiles (exclusive of accessories).------------------ 250,688 203,089 104,002 66,673
Tobacco ---------------------------------------- 129,433 118,322 116,946 65,806
Coffee---------------- ---------------------------- 55,002 60,103 79,382 61,241
Corn----------.------------------------------------ 5,192 21,754 23,874 59,987
Asphalt----------------------------------------- 93,806 97,712 72,388 59,462
Sugar------------------. --------------.----------.. 150,402 101,150 87, 436 S, 671
Rosin---------------------------------------------- 45,129 39,693 39,886 45,405
Glass and glassware-----------.--------------------- 73,757 68,062 47,100 44,911
Metals, various------..----------------------------- 121,283 97,313 59,106 42,830
Automobile accessories---------------- -------------- 90,577 84,213 51,768 39,367
Slag --------------------------. ---------- 96,894 66,945 71,627 38,547
Creosote------------------------------------------ 56,636 64,844 31,662 38,482
Salt------------------------------------------------ 59,643 54,327 56,002 36,855
Railroad material..------------------ --------------- 239,074 194,578 77,838 26,731
Lumber------------------------------------------- 50,448 48,819 32,924 26.319







REPORT OF GOVERNOR OF THE PANAMA CANAL

Commnodilu movement-Continued


Commodity


Flour--------------------------------------------
Agricultural implements.. ..- ........ ..........
Bananas---------..----.....-..----------....--.....------..-....
All other..------..............................--------------------------------------
Total-------------------------------------
PACIFIC TO ATLANTIC
Mineral oils----.----------------------------
Lumber----------------------------------------------
Wheat -... ...................................---
Sugar--------------------------------------
Nitrate -----------------------------------
Canned goods (fish, fruit, vegetables, etc.)--.-------
Ores (principally iron)----------- -----------------
Metals (various).--------------------------
Fruit, dried ----- ------------------------
Fruit, fresh -------------------------------
Food products in cold storage 1 -----------------
Beans ----------------------------------------
Barley ----------------------------------
Wood pulp------------------------------------
Coffee. ..--------------------------------
Flour------------------------------------
Paper-..................................................
Oats ---------------------.......................................
Wool -------------------------------
Coconut oiln--------------------------------
Copra --------------------------......................................
Borax -----------------------------------
Cotton, raw-------------------------------
Rice------ ------------------------------.-
Skins and hides.----- --------------------------
All other------------ --------------------


Total------------- ---------------------- 20,780,486


Fiscal year ended June 30-


20,554,507 18,402,371


14, 172,640


I Does not include fresh fruit.

As will be seen in the preceding tabulations, the great majority of
the commodities listed showed decreases in comparison with 1931.
Out of 33 commodities from the Atlantic to the Pacific, there were
10 increases which were in the items of raw cotton, mineral oils,
paper, sulphur, canned goods, scrap metal, chemicals, rosin, creosote,
and corn. The balance of the items, 23 in number, were lower than
in 1931, and 22 were lower than in any of the three preceding years.
Out of 25 commodities listed in the Pacific to Atlantic movement,
increases occurred in 8 items, as follows: Sugar, dried fruit, beans,
wood pulp, paper, oats, coconut oil, and borax. The balance of the
items, 17 in number, decreased in comparison with the previous year,
and 13 were lower in tonnage than in any of the three preceding years.
There were four commodities which exceeded 1,000,000 tons, all
from the Pacific to the Atlantic, in comparison with seven in the preced-
ing fiscal year. In 1932 these items were mineral oils, lumber, wheat,
and sugar. Ores (principally iron), nitrate, and manufactures of iron
and steel, each aggregating over 1,000,000 tons in 1931, all fell short
of this figure in 1932.


1929 1930 1931 1932

Long tons Long tons Long tons Long tons
79.351 49,614 25,122 14. XO0
57,195 51,517 28,289 12,956
55,979 29,502 14,903 2,526
2,352,867 2,267,604 1,769,453 1,371,501
9,882,520 9,475,725 6,680,429 5,635,358

5,197,813 5,700,587 4,824,338 3,116,844
3,311,875 3,530,879 2,747,485 2,129,787
2, 365, 555 1,503,035 1,862,147 1,790,530
717, 931 920,399 1,033,013 1,298,830
2,554,565 1,910,793 1,375,450 811,522
921,217 806,365 876,644 7s7, 736
1,750, 54'S 2,229,470 1,436,792 61i, t368
671,500 666,057 557,498 472,560
304,956 206,384 282,791 340,851
211,854 144,880 286,049 256,563
315,675 335.061 384,526 248,874
154, 72 112,679 171,335 172,526
260,142 275,064 235,364 153,206
49,623 1;OS. Sl 109,163 147,541
136,369 102,646 149,215 125,228
110, 183 103,486 146,640 123,964
62,191 101,422 114,301 116,103
44,115 21,123 92,812 108,089
150,712 145,071 157,129 101,147
68,206 95,034 76,971 83,631
119,586 109,172 113,587 79,471
74,089 91,921 70,913 75,463
109,825 103,408 95,622 62,005
113,606 89,795 116.330 53,924
66,158 64,449 66,975 53,619
937,410 1,076,466 1,019,281 844,258





REPORT OF GOVERNOR OF THE PANAMA CANAL


Atlantic to Pacific.-Manufactures of iron and steel, as in the past,
formed the largest commodity group of the movement in this direc-
tion; they accounted for 13.9 per cent of the total cargo from the
Atlantic to the Pacific, in comparison with 19.8 per cent of the total
in 1931. In actual tonnage there was a decrease of 538,597 tons, or
40.8 per cent, in comparison with the previous year. The major
decreases were in the United States intercoastal trade which declined
313,188 tons, or 40.4 per cent; 58,775 tons, or 80.9 per cent, in the
trade between the east coast of the United States and the west coast
of South America; 55,936 tons, or 64.2 per cent, in the trade between
Europe and South America; and 37,869 tons, or 4.5 per cent, in the
trade between Europe and Australasia.
Raw cotton was the commodity next in tonnage passing through
the canal from the Atlantic to the Pacific in 1932; it increased from
298,877 tons in 1931 to 747,496 tons in 1932, a net gain of 448,619,
tons or 150 per cent. Practically all of this increase occurred in the
trade between the United States and the Far East.
The shipments of mineral oils from Atlantic to Pacific in the fiscal
year 1932, although showing an increase in comparison with the pre-
ceding fiscal year, dropped from second to third place. The gain in
tonnage over 1931 amounted to 32,978 tons, or 6.4 per cent. Phos-
phates, of which the greater portion is shipped from Gulf ports of
the United States to the Far East, declined 73,659 tons, or 23.5
per cent.
Pacific to Atlantic.-Since 1923, when shipments of mineral oils
from the California fields began on a large scale, this product has been
the leading commodity shipped from the Pacific to the Atlantic. As
pointed out in previous reports, this item of cargo reached its high
point in 1924 with 9,721,446 tons. Successive declines in shipments
occurred in 1925 and 1926 but in 1927 the tonnage amounted to
7,143,165 tons, the highest since the peak year. Following 1927,
each year has shown a decrease with the exception of 1930, when the
shipments were greater than in the two years preceding. In 1932
this item amounted to 3,116,844 tons, a decrease of 1,707,494 tons
from the quantity in 1931, or 35.4 per cent. The amount in 1932
was lower than in any year since 1922 and was 1,217,820 tons below
the figure for 1923, the first year of the distinct rise of mineral oil
shipments from the west coast of the United States. The larger part
of the decrease in 1932, as compared with the preceding year, occurred
in the United States intercoastal trade, from the United States to
Europe, and from South America to the United States. Over the
routes from South America to Europe and South America to Canada
the shipments in 1932 increased over those in 1931.
Lumber, with 2,129,787 tons, ranked as the second largest conmmod-
ity. It has held second place since 1922 with the exception of one






REPORT OF GOVERNOR OF THE PANAMA CANAL


year (1923) when it dropped to third place in favor of nitrates. In
comparison with 1931, lumber tonnage in 1932 declined 617,698 tons,
or 22.5 per cent. This decrease was principally on three trades routes,
the United States intercoastal, United States to Europe, and Canada
to the United States.
Wheat occupied third place in importance in commodities routed
from the Pacific to the Atlantic in 1932. In comparison with 1931, it
showed the comparatively small decrease of 71,617 tons, or 3.8 per
cent. The larger portion of the wheat movement via the canal is
from the west coast of Canada to Europe.
Sugar was the only commodity aggregating over 1,000,000 tons to
show an increase in comparison with 1931. Totalling 1,298,830 tons,
it moved from sixth to fourth place in cargo tonnage during the past
year. In comparison with 1931, shipments increased 265,817 tons,
or 20.5 per cent. Larger shipments from the Hawaiian Islands to
the United States and in the United States intercoastal trade ac-
counted for the most of this increase.
Nitrate was the commodity next in amount of tonnage, ranking
fifth, the same as in 1931. A heavy decrease was recorded in this
commodity, however, the tonnage declining from 1,375,450 tons in
1931 to 811,522 tons in 1932, a reduction of 563,928 tons, or 41
per cent. Shipments to Europe (which were 73 per cent of the total
nitrate tonnage in 1932) decreased 313,539 tons, or 34.5 per cent,
and those to the United States (24 per cent of the 1932 total) showed
a decline of 259,496 tons, or 57.1 per cent.
Shipments of ores (principally iron), which ranked fourth in
tonnage among the commodities moving from the Pacific to the
Atlantic in 1931, dropped to seventh place in 1932. This movement
in 1932 aggregated 618,368 tons in comparison within 1,436,792 in
19031, a loss of 818,424 tons, or 57 per cent.

CLASSIFICATION OF VESSELS

Of the 4,506 commercial vessels transiting the canal during the fiscal
year, 2,989 were steamers, 1,444 were motor ships, and the remaining
73 were motor schooners, sailing ships, barges, etc. For the past
five years the proportions of these classes have been as follows:

1928 1929 1930 1931 1932

P. r cE ti Pi r c i Pe ti Pr r nt Per I Perce Percent
tv:Ifn ers .......... 141.2 -1 % 71 I ti6.3
Motor ships---------------------..------------------- 13.8 19.3 22.8 28.4 32.1
%I si.ellaineIous. 1.4 .5 .4 .5 1.6
Total........ .--......... --........... 100.0 100.0 100.0 100.0 100.0







REPORT OF GOVERNOR OF THE PANAMA CANAL


As will be noted in the foregoing table, the proportion of motor ships
in the traffic through the canal has been increasing from year to year.
The actual numbers of transits of motor ships in the past five fiscal
years have been as follows: 1928, 890; 1929, 1,240; 1930, 1,411;
1931, 1, 571; 1932, 1,444.
Of the 2,989 steamers transiting the canal during the past fiscal
year, 2,274 burned oil, 660 burned coal, and 55 were reported as
fitted for either fuel. For the past five years the proportions of
each class have been as follows:

1928 1929 1930 1931 1932

Per cent Per cent Per cent Per cent Per cent
Oil burning------------------------------------- 63.8 64.0 72.2 72.8 76. 1
Coal burning----------------------------------- 35.7 34.7 26.4 25.6 22.1
Either oil or coal -.---.----------------------------- .5 1.3 1.4 1.6 1.8
Total----- ------------------------------ 100.0 100.0 100.0 100.0 100.0


LADEN AND BALLAST TRAFFIC

A classification of the commercial (tolls-paying) traffic during the
fiscal year 1932 by laden ships, those in ballast, and tolls-paying
vessels which are not of the cargo type, is as follows:

Atlantic to Pacific Pacific to Atlantic

Num- Panama Num- Panama
ber of Canal net Tolls her of Canal net Tolls
ships tonnage ships tonnage

Tank ships:
Laden.---------------- ------- 45 232,752 $245,764.45 291 1,707,865 $1,777,514.65
Ballast ----------------------- 262 1,562,516 1,125,344.25 14 67, 265 48,512.94
General cargo ships:
Laden------------------- --- 1,693 9,278,336 8,136,764.56 1,812 9,345,977 8,322,872.35
Ballast.--------------------- 318 1, 322, 883 950, 295. 59 16 30, 521 21,141.03
Noncargo-carrying ships:
Passenger 1 -------------------- 1 3,448 3,020.00 3 56, 319 39,966.25
Naval ------------------------ 4 (2) 9,312.50 5 (2) 13,762.50
Yachts ----------------------- 19 10,145 7,436.91 16 5,725 4,196.95
Mi-r-ll ci n.i-------------- 2 573 470.25 5 1,094 1,001.87
Tctal--------------- ----- 2,344 12,410,653 10,478,408.51 2,162 11,214,766 10,228,968.54

1 Cruise vessels, carrying passengers only.
2 Displacement tonnage.
8 Composition shown in following table.

Further details of the commercial traffic during the fiscal year
1932 by laden ships and those in ballast, divided between tankers and
general cargo vessels, and showing the ships not designed to carry
cargo, are as follows:








REPORT OF GOVERNOR OF THE PANAMA CANAL


Classification lntio to Pacific to Total
ClIiic to Pad fit A tlanticT o a


Tank ships, laden:
Number of transits.....-...........................
Panama Canal net tonnage...--....-..............-
Tolls. --------------------------------
Cargo, tons.-----------------------------
Tank ships, ballast:
Number of transits.------------------------.......
Panama Canal net tonnage--------------....
Tolls---..---....- ..--.......-.....----...........-
General cargo ships, laden:
Number of transits.----------.....................-
Panama Canal net tonnage-----------------
Tolls--------..----------------- --------
Cargo, tons ----- ------------------
General cargo ships, ballast:
Number of transits -----------------------
Panama Canal net tonnage----------------..--
Tolls----- -------------- --------..
Noncargo-carrying ships:
Passenger vessels-
Number of transits ---------------.--......
Panama Canal net tonnage--------------..
Tolls--..- --------------------------
Naval vessels-
Number of transits ---------------------
Displacement tonnage-----------......-- -
Tolls.------------------.------------
Yachts-
Number of transits---------------------
Panama Canal net tonnage---------------
Tolls -.--------------------------..............................
Tugs-
Number of transits... ----------------..................
Panama Canal net tonnage---------------
Tolls.- ----------------------------.
Barges-
Number of transits-----------------------------
Panama Canal net tonnage-------------.---
Tolls--------------------------------- .
Cable ships-
Number of transits----------------------------
Panama Canal net tonnage--------------------
Tolls------------------------------------------
Survey ships-
Number of transits---------- -----------.
Panama Canal net tonnage---------------
Tolls----------------------------- ----
Derricks-
Number of transits-----------------------------
Panama Canal net tonna-e ................
T olls.. ..................................... .

SUMMARY
Total cargo ships, laden:
Number of transits.---.------..-- ..---.- ..---.
Panama Canal net tonnage......-----.------
Tolls---- --------------- -------.--------
Cargo, tons........ .. ... ............ ......
Total cargo ships, ballast:
Number of transits----------------------..............
Panama Canal net tonnage----------------..
Tolls----------------------------.- ------
Total tank ships:
Number of transits------------------------....-
Panama Canal net tonnage---------- --------.
T olls...............................................
Cargo, tons--- -------------- -- ------ .--
Total general cargo ships:
Number of transits.................................
Panama Canal net tonnage-----------------
T olls..............................................
Cargo, tons............. .. ......................
Total noncargo-carrying ships:
Num ber of transits... ..............................
Panama Canal net tonnage-------------------
Displacement tonnage............--- .....-- - .
Tolls........................ --------.......
Grand totals:
Number of transits.................................
Panama Canal net tonnage..---..-....-..-.......-
Displacement tonnage.............................
Tolls. .---------------------------...........
Cargo, tons----------------------------- ....-


45
232,752
$245,764.45
308,560
262
1,562,.516
$1,125,344.25
1,693
9,278,336
$8,136,764.56
5,326,798
318
1,322,883
$950,297.59

1
3,448
$3,020.00
4
18,625
$9,312.50
19
10,145
$7,436.91
1
187
$183.75


1
386
$286.50


1,738
9,511,088
$8,382,529.01
5,635,358
580
2, S"5. 399
$2,075, 039.84

307
1,795, 26S
$1,371, 108.70
308, 560
2,011
10.601.219
$9, 087.060.15
5,326,798
26
14,166
18,625
$20,239.66
2,344
12,410,653
18.625
$10,478,408.51
5,635,358


291
1,707,865
$1,777,514.65
3,192,830
14
67, 265
$48, 512. 94
1,812
9, 345,977
$8,322,872.35
10,979,810
16
30,521
$21,141.03

3
56,319
$39,966.25
5
27,525
$13,762.50
16
5,725
$4,196.95
1
187
$183.75
2
252
$189.00
1
346
$249.12
----------------
----------------
----------------

1
309
$380.00



2,103
11,053,842
$10,100,387.00
14,172,640
30
97,786
$69,653.97
305
1,775.130
$1,826,027.55*.
3,192,830
1,828
9,376.498
$8,344,013.38
10,979,610
29
63, 138
27. 525
$58,927.57

2,162
11,214.766
27. 525
$10,228, 96. 54
14,172,640


336
1,940,617
$2,023, 279. 10
3,501.390
276
1.629. 781
$1,173, 857.19

3,505
18,624.313
$16,459, 636. 91
16,306, 608
334
1,353,404
$971,436.62

4
59. 767
$42,986. 25
9
46,150
$23,075.00
35
15,870
$11,633.86
2
374
$367.50
2
252
$189.00
1
346
$249.12
1
386
$286.50
1
309
$380.00



3.841
20, 564,930
$18,482,916. 01
19,807,998
610
2,983,185
$2,145, 293.. 1
612
3,570.398
$3,197,13'6. 29
3,501,390
3,839
19.977.717
$17,431.073.53
16, 306, 608
55
77,304
46.150
$79,167.23
4,.506
23, 62.5, 419
46.150
$20, 707.377.05
19,807,998






REPORT OF GOVERNOR OF THE PANAMA CANAL


AVERAGE TONNAGE, TOLLS, AND TONS OF CARGO PER VESSEL
The average measurement tonnage, tolls, and tons of cargo per
vessel transiting the canal during the past three fiscal years are shown
in the following tabulation:

Fiscal Fiscal Fiscal
Feature year year year
1930 1931 1932

Measured tonnage:
Panama Canal net ---------------------------------------- 4,862 5,036 5,254
United States equivalent ------------------------------------ 3,679 3,732 3,827
Registered gross------------------------------------------- 6,070 6,203 6,398
Registered net-------------------- ------------------------ 3,697 3,763 3,866
Tolls-------------------------------------------------------- $4,377.83 $4,457.49 $4,595.51
Tons of cargo (including vessels in ballast)----- -------------------- 4,870 4,545 4,405
Tons of cargo (laden vessels only)------------ -------------------- 5,712 5,407 5,154

NOTE.-Vessels paying tolls on displacement tonnage are excluded in computing these averages, except
for the average tolls per vessel.

It will be noted from the above that the average size of vessels
tran1iting the canal is increasing from veir to yeair. This is due
primarily to the repicomeni t of the older vessels plying over the
various trades with new and burger ships. The increase in the aver-
age net tonnage, Panama Canal measurement, of vessels transiting in
1932 in comparison with 1931 was 4.3 per cent, and in comparison
with 1930, 8.1 per cent, while the averages of United States equivalent
net tonnage per vessel increased only 2.5 per cent and 4 per cent,
respectively.
The average cargo per vessel transiting (including in the total the
vessels which made the transit in ballast) decre.-;ed in the fiscal year
1932 to the extent of 3.1 per cent in comparison with the preceding
year, and 9.5 per cent in comparison with 1930. Considering the
laden vessels only, the average cargo per vessel decreaied in 1932 by
4.7 per cent of the average in 1931, and by 9.8 per cent of the average
in 1930.
DATA IN STATISTICAL SECTION
Further particulars of the traffic through the canal are presented
in Section V of this report in the form of tables and graphs.

DUAL MEASUREMENT SYSTEM
Under the existing law, tolls on commercial vessels using the canal
are levied on the basis of $1.20 per net ton, on tonnage as determined
under the Panama Canal rules of measurement, for laden ships, and
$0.72 per net ton, measured under the canal rules, for ships in ballast,
with thie limitation that the amount collectible shall not exceed $1.25
per net ton or be less than $0.75 per net ton as determined under the
rules of measurement for registry in the United States.
The effect of this is, generally, that tolls on laden vessels are usually
paid on the basis of $1.25 times the United States net tonnage, and






REPORT OF GOVERNOR OF THE PANAMA CANAL


tolls on ballast vessels at $0.72 times the Panama Canal net tonnage.
In a few cases the product of $1.20 times the canal net is slightly less
than $1.25 times the United States net, and tolls are paid on the canal
basis; there are other and more frequent cases of ships in ballast in
which the Panama Canal net tonnage times $0.72 is in excess of $1.25
times the United States net, in which case the latter figure is the
amount collectible. Such vessels pay less than $0.72 per net ton,
canal measurement, for transit either in ballast or laden. On small
vessels such as tugs, the United States rules sometimes indicate
negative net tonnage, and such vessels make the transit without
payment of tolls.
The dual system of measurement is cumbersome in that it requires
each vessel to be measured under two sets of rules for one purpose
only and the statement of toll charges is based on the results obtained
from the two measurements. It is unnecessary as the Panama Canal
rules were intended to be, ind can readily be made to be, the sole
basis of measurement, and the only reason for applying United States
rules for measurement that has ever been offered is the effect of limi-
tation and the fact that their application results in the levy of a
somewhat lower amount of tolls against some vessels. That this
is unfair is indicated by the variation in the amount of tolls on vessels
of approximately equal tonnage as measured under Panama Canal
rules which are designed to consider and measure the earning capacity
of each vessel and accepted as meeting that purpose.
The use of rates of $1.20 for laden ships, and $0.72 for ships in
ballast, times the net tonnage as determined( under the Panama Canal
rules, would have the effect of increasing heavily the charges on
traffic; and in order that approximately equal revenue might be
obtained, the canal administration has proposed that if the canal
rules be adopted the rates should be set at approximately $1 per net
ton for laden ships and $0.60 for vessels in ballast.
However, this plan has met opposition from American operators
of general cargo vessels for the reason that it would in most cases
increase the charges against general cargo ships when laden. On the
other hand, the proposed basis would reduce the charges on vessels
making the transit in ballast. Hence, as applied to the total traffic
using the canal the effect of adopting the canal rules and proposed
rates, in comparison with revenues now derived, may vary according
to the composition of the traffic.
In the discussions of the proposed adoption of the Panama Canal
basis there have been statements to the effect that the change would
impose undue burdens on United States vessels. The following is a
comparison of the increases in the tolls which would have been paid
by the United States vessels and by all vessels other than those of
United States registry in the past six fiscal years:
142576-32- 3






24 REPORT OF GOVERNOR OF THE PANAMA CANAL
UNITED STATES VESSELS ONLY

Tolls which Increase
Tolls atall would have ______
Fiscal year Tos actually been collected
on proposed Actual Per cent


1927----------------..------------------ $12,720,447.95 $12,601,622.60 1$118,825.35 10.93
1928------------------------------------ 12,645,880. 20 12, 662,378.60 16, 498. 40 .13
1929 -------- --------------------------- 12,299,584.70 12,471,487.00 171,902.30 1.40
1930------ ------------------------------ 13, 22n, 662.70 13, 537, 324. 60 316,661. 90 2. 40
1931 ----------------------------------- 11,42.5,999.31 11,883,318.60 457, 319. 20 4.00
1932 ------------------------------------- 9, 749,018. 51 10,411,572. 20 t662, 5-3. 69 6.80
Total for 6 years ---------------------- 72,061,593.37 73,567,703.60 1,506,110.23 2. 09

ALL VESSELS OTHER THAN UNITED STATES

1927 -------------------------------------- $11, 508,382.16 $11, 720,617.30 $212, 235. 14 1.84
1928 --------------------- ---------------14, 298, 619. 57 14, 583,094.40 284,474.83 1.99
1929 ------------------------------------14,827, 792. 21 15, 518,947. 60 691, 155. 39 4.66
1930 --------------------------------------- 13, 856,227. 31 14, 795, 367.00 939, 139. 69 6.78
1931 ------------------------------------ 13, 219,457. 26 14,264,637.30 1,045, 180.04 7.91
1932---------------------------------------- 10,958,358.54 12,036, 778. 60 1,078,420.06 9.84
Total for 6 years----------------------78,668,837.05 82,919,442.20 4,250,605.15 5.40

1 Decrease.

In the following table are shown for the fiscal year 1932 the tolls
paid by various nationalities using the canal, in comparison with the
tolls which they would have paid on the proposed basis, showing the
increase or decrease. In this table the traffic has been segregated to
show general cargo and cargo/passenger vessels, and the total of all
commercial traffic; the latter includes in addition to the general
cargo and cargo/passenger vessels, oil tankers, and miscellaneous
noncargo-carrying vessels such as yachts, foreign naval vessels,
etc. There is also shown the pro rata per Panama Canal net ton of
tolls actually collected on laden and ballast traffic for the various
nationalities.
For vessels of the seven leading nationalities represented in canal
traffic in 1932, a wide variation occurred in the average rate per
Panama Canal net ton for laden vessels. The highest rate, $1.012
per net ton, was paid by Japan, and the lowest, $0.814 per net ton,
was paid by vessels of Norwegian registry, a difference of $0.198. The
maximum variation per Panama Canal net ton on laden vessels of
all nationalities using the canal in 1932 was $0.527. It will be noted
that for vessels in ballast the prevailing charge was close to $0.72 in
most instances, although there were a few small craft which paid as
high as $0.77.
On the assumption that the Panama Canal rules for the determina-
tion of net tonnage are an accurate basis for the just levy of canal
dues, it is obvious that the present use of the United States rules is
resulting in inequities and injustices, since the ships are not paying at
equal rates on net tonnage as determined under the canal rules of
measurement. The table follows:











REPORT OF GOVERNOR OF THE PANAMA CANAL


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REPORT OF GOVERNOR OF THE PANAMA CANAL


HOURS OF OPERATION
Dispatchliing of ships through the canal is conducted on schediules.
Vessels ready to leave for transit begin moving through the canal from
each end at 6 o'clock in the morning, and dispatches are made there-
after from each end at intervals of about half an hour. The following
is a summary of the arrangements in effect at the end of the fiscal year.
OPERATING HOURS FOR COMPLETE TRANSIT
From Cristobal Harbor, first ship at 6 a. m., last at 2.30 p. m.;
from Balboa anchorage, first ship at 6 a. min., last at 2 p. m. This
applies to vessels averaging 10 to 12 knots. In case of a vessel capable
of 15 knots, departure may be made up to 3 p. m. from either Cristobal
or Balboa.
LIMITS FOR STARTING ON PARTIAL TRANSITS
After the last "through" ships have been dispatched, and provided
there would be no interference with approaching traffic, ships are
started on partial transit from Cristobal Harbor up to 8.30 p. m. or
from Balboa anchorage up to 5.30 p. min. Partial-transit ships tie up
on reaching the summit level and continue the following morning;
the first of these bound for the Pacific leaves Gatun at approximately
5 a. m., and the first of these bound for the Atlantic leaves Pedro
Miguel at 6 a. min., provided the air is sufficiently free of fog or rain
to allow safe navigation.
Two ships usually, sometimes three, each way, can be given the
benefit of partial transit each day, and under ordinary conditions they
gain from two to three hours. When traffic is heavy it is impractica-
ble to use partial transits, as they would interfere with the regular
schedule.
Tankers with inflammable cargoes are dispatched at the discretion
of the captain of the port and are not permit ted to proceed unless
they can clear Gaillard Cut before dark. Overloaded tankers carry-
ing gasoline cargo are usually restricted to schedules, leaving at 6,
6.30, and 7 a. min., but may be dispatched on other schedules if traffic
warrants.
The volume of traffic at present is not such as to make advisable
continuous operations throughout the 24 hours of the day, or even
extensive night operation. Such operation would not only involve
greater expense and increase the difficulties of maintenance of locks
and channel but it is somewhat objectionable from the shipmaster's
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 dissi-
pated by 8 o'clock in the morning.


- ,







REPORT OF GOVERNOR OF TBE PANAMA CANAL


LOCKAGES AND LOCK MAINTENANCE

Lockages and vessels handled, by months, (luring the past fiscal
year, are shown in the following table, to which is appended for com-
parison a statement of the totals for the past five fiscal years:

Gatun I'eIro Miguel Miraflores Trii:il

Lockripes. Vessels Lockages %Vr'sels Lockages Vessels Lockages Vessels

1931
July ----------------- 420 466 437 477 434 477 l.2',l 1,420
L ............... 394 446 420 468 414 470 1.22q I.1.
Septrlit r........... 402 453 415 459 414 456 l.i2l 1,3.,4
Otto r ..... 397 448 415 466 410 461 I.-'-' 1,375
November----------- 383 425 404 460 401 464 1, Io 1,349
December------------ 395 448 414 489 414 492 1,223 1,429
1932
Jantir...... ....... 397 452 406 474 404 471 1,207 1,397
Febhriury .. 385 503 406 494 402 493 1,193 1,490
MNrch----........ 371 437 397 473 393 469 1,161 1..570
April ................. 371 447 386 443 397 455 1,154 1,345
M .. 362 416 380 444 386 445 1,128 1,305
June----------------- 338 408 362 429 357 422 1,057 1,259
Tu l. .... . .. 4,615 '5. 34'. 4,842 5,576 4,826 5,575 14,283 li.. i10
Fi.-r.il year-
1927- -- 5,467 6,641 5,783 6,968 5,691 .6,941 16,941 20,550
1928--- ...-- 6,314 7,406 6,642 7,811 6,577 7,804 I' .!..i; :1. 121
1929 -- -- 6, 29 7,428 6,473 7,994 ., 325 7,934 19,087 21, 3'5.
1930)- ..-- 6,135 7,1(64 6,436 7,430 1.. 11 7,431 18,909 9-*. 125
1931 -------------- 5,571 6,477 5,824 6,667 5,783 6, C51 17,178 1i'., 7'


For the fiscal year 1932 the average numbers of lockages per day
were 12.6 at Gatun Locks, 13.23 at Pedro Miguel, and 13.19 at
Miraflores. The total number at all locks was 14,283, as compared
with 17,178 in 1931 and 18,909 in 1930. The decrease during the
past year was 2,895, or 16.85 per cent.
Thle number of vessels locked per lockage in the fiscal year 1932
averaged as follows: Gatun, 1.16; Pedro Miguel, 1.151; Miraflores,
1.155. The average for the total of 14,283 lockages was 1.155 vessels.
Excessive rainfall over the Isthmus on November 7, 8, and 9
caused flood conditions over Gatun Lake, and in addition to the
operation of the spillways of Gatun and Miraflores Lakes the. culverts
of the locks at Gatun and Pedro Miguel were used( for discharging
excess water. All three culverts were used at Gatun from 2.15 p. m.
on the 7th until 10:35 a. m. on the 8th, and again from 4:55 p. m. on
the 8th until 5 a. m. on the 9th. At Pedro Miguel all three culverts
were opened at the upper end but only the two side wall culverts at
the lower end, and discharge was from 2 p. m. on the 7th to 10.35) a. m.
on the 8th, and from 2.48 p. m. on the 8th until 6.02 a. m. on the 9th.
The surplus in Miraflores Lake was discharged over the spillway at
Miraflores. The total discharge through the culverts was estimated
at four and one-half billion cubic feet, equivalent to approximately
one foot of depth on the surface of Gatun Lake. Due to tlihe-e
operations, traffic through the canal was suspended on the 7th and






REPORT OF GOVERNOR OF THE PANAMA CANAL


(luring part of the 8th. In the morning of November 9 a slide in
Gaiillard Cut interrupted traffic. It was resumed in the afternoon of
November 11 for ships of less than 28 feet draft and conditions
reached normnilcy on November 15 with the passage of a ship draw-
ing 35 feet 3 inches of water.
During the year the position of superintendent, lock operating
division, was created and the positions of superintendent, Atlantic
Locks, and superintendent, Pacific Locks, were abolished, thereby
cliannind the organization of the locks by combining the Pacific
and Atlantic Locks into a single division under one superintendent.
This reorganization was made in the interests of both efficiency
and economy.
GATUN LOCKS
Both chambers were in service and used each day during the years
except on October 16 and 22 and June 23 and 30, when only one
chamber was used, due to light traffic. Daily operating shifts, pro-
viding for double-chamber operation from 7 a. m. to 11 p. min., were
maintained throughout the year, except that effective February 28,
Sunday and holiday operating shifts were reduced from four to
three-7 a. m. to 3 p. min., 9.30 a. min. to 5.30 p. min., and 3 p. m. to
11 p. min. Three-shift operation on all days was decided on, to
become effective on July 1, 1932.
Spilling through the culverts on account of flood conditions on
November 7, 8, and 9 resulted in a record-breaking 1-way traffic of
23 northbound lockages and 23 commercial ships on November 13.
Twelve follow-up lockages were made, averaging 41% minutes between
clearing time.
On January 15, 1932, while the steamship Penwi.sylrani;a of the
Panama Pacific Line was transiting the canal southbound, high
winds made it necessary to retain the tow line between one of the
towing locomotives and the vessel longer thin customary, and when
the at tempt was made to release the tow line, the release mechanism
refw-cd to function and the locomotive was dragged from the lock
w1ll into the hike. It was subsequently recovered and repaired by
the lock forces.
Routine maintenance and repairs were performed on all machinery
and equipment as required. No serious breakdowns occurred during
the year. Twenty-four delays to ships in lockages, due to improper
operation or failure of equipment were recorded; they ranged from
3 minutes to 1 hour 20 minutes and averaged 122 minutes.
PACIFIC LOCKS
Operation continued on the same basis as for the preceding year,
except as noted below. Four operating crews were provided at






REPORT OF GOVERNOR OF THE PANAMA CANAL


Miraflores Locks, making double lockages possible from 6.50 a. m. to
10.40 p. m. Three operating crews were provided at Pedro Miguel
Locks, covering lockages from 7 a. m. to 10.40 p. nm., with an over-
lapping crew to provide for double lockages between 9.30 a. m. and
5.30 p. in. Effective February 28, operating shifts at Miraflores
were reduced from 4 to 3 on Sundays and holidays. It was arranged
that at the beginning of the fiscal year 1933, the number of operating
shifts was to be reduced from 4 to 3 at Miraflores and from 3 to 2 at
Pedro Miguel for all days, the hours of the shifts at Miraflores being
6.50 a. m. to 2.50 p. m., 9.30 a. m. to 5.30 p. m., and 2.40 p. m. to
10.40 p. m., and of those at Pedro Miguel being 7.45 a. m. to 3.45
p. m. and 1.10 p. m. to 9.10 p. m.
On January 27 a test was made at the east emergency dam at
Miraflores to determine the feasibility of using the emergency dams
as spillways to supplement the Gatun Spillway and the lock culverts
as means of discharge of water during extraordinary floods. The
test was carried out successfully, and the results indicate that any
emergency dam can be used with safety for the discharge of approxi-
mately 60,000 second-feet of water.
Three new towing locomotives built at Balboa shops were received
at the Pacific Locks in April and the electrical equipment was installed
there. The locomotives were placed in service before the end of the
fiscal year.
Preliminary arrangements for the quadrennial overhaul of the
Pacific Locks which will include the removal, repair, and replacement of
12 mitering gate leaves, were carried forward during the latter half
of the year.
Routine maintenance and repairs were performed on all machines
and equipment, and no major incident of faulty operation or serious
accidents to ships occurred during the year.
POWER FOR CANAL OPERATION
The power system was operated throughout the entire year with
an average combined generator output of 5,477,583 kilowatt-hours
per month, as compared with an average combined generator output
of 5,497,708 kilowatt-hours per month for the preceding fiscal year.
An average of 5,066,929 kilowatt-hours per month was distributed
from substations during the fiscal year as compared with a corre-
sponding average of 5,120,672 kilowatt-hours per month for the
preceding fiscal year. Transmission and distribution loss was 7.50
per cent for the year as compared with a corresponding loss of 6.82
per cent for the previous year.
The Gatun hydroelectric station operated throughout the year,
carrying the full load of the power system except at times of peak
load when the Miraflores Diesel-electric station came in on the line,






REPORT OF GOVERNOR OF THE PANAMA CANAL


and during the months of January and February when some of the
generating equipment at Gatun was out of service for general over-
haul, at which time the Miraflores Diesel-electric station assumed a
considerable portion of the load on the system. No reduction in
operation of Gatun hydroelectric station was necessary on account
of water conservation and no interruptions to the service occurred
at. this station during the year.
The Miraflores Diesel-electric station was maintained on a stand-by,
peak-load, and test service during the year except during January
and February when it was required to carry load on account of
reduced capacity of the Gatun hydroelectric station while generator
equipment was under overhaul.
Interruptions to transmission-line service during the year totaled
16, from the following causes: Equipment failures, 7; lightning, 3;
animals, 1; earth slides and falling tree, 1 each; undetermined, 3.
The overhaul of the main power transformers in all'power plants
and substations was undertaken and work on 14 of the 21 to be
overhauled was completed during the year.
During the year a new outdoor substation was erected at Madden
Dam, equipped with three 667-kilovolt-amperes, 44,000/2,300-volt
transformers, for supplying power for dam construction as well as
light and power for Madden Dam town site. It is temporary in
nature and will be in service only during the construction period.
This substation receives energy from the existing power system over
the duplicate circuit transmission line from Summit to Madden Danm,
which was erected during the year and will serve for transmission of
Madden Dam power to the lines of the existing power system.
Plans have been completed and the necessary equipment ordered
for the conversion of the present manually operated substations at
Cristobal, Balboa, and Summit, to remote control, whereby Cristobal
station will be operated from the Gatun hydroelectric station, and-
Balboa and Summit from Miraflores substation. This work should be
completed during the coming fiscal year and reduce operating costs
appreciably.
The Madden Dam transmission line was completed from Summit
substation to the temporary substation at Madden Dam during the
year. Three towers on which the line will later be continued to the
Madden Dam power plant had been erected at the close of the year,
but no insulator or conductor materials had been installed. This line
consists of galvanized-steel towers supporting duplicate 3-conductor,
No. 2/0 A. W. G. copper conductor circuits, and is equipped with two
overhead ground wires. The spacing of the conductors is such as will
allow operation at 66,000 volts, but present operation is at 44,000






REPORT OF GOVERNOR OF THE PANAMA CANAL


volts. The Summit substation was moved about 1 mile south on
the Panama Railroad to the junction of the new M.adden transmission
line with the existing trans-Isthmian transmission line.
WATER SUPPLY
The inflow of water into Gatun Lake from all sources and the
utilization and losses of the water in the lake are sunimmnirized in the
following table. There are also shown the percentages which each item
formed of the total yield or total consumption. The data are pre-
sented for the fiscal years 1931 and 1932, the former for comparison;
each year covers 12 months ending June 30, and thus embraces the
cycle of both dry and rainy seasons.

Billion cubic feet, Per cent of total,
fiscal year- iscal year-

1931 1932 1931 1932

Run-off above Alhajuela----------------.------------------ 61.38 95.58 41.8 41.2
Yield from land area below Alhajuela ---------------. ---------50.17 95.61 34.1 41.2
Direct rainfall on lake surface------------------------------ 35.40 40.84 24.1 17.6
Total yil................. ......................... 146.95 232.03 100.0 100.0
Evaporat ion from lake surface- ------------------------------ 21.55 20.80 14.6 9.0
OGatun L:ikelockages-----------------.-----.----... ....----------- 38.79 33.95 26.4 14.6
Hydroelectric power----------------------.---------------- 45.38 47.96 30.9 20.7
Spillway waste- ----------------------------------------- 32.83 119.80 22.3 51.6
M uniciipal. leakage, etc......................................... 1.69 1.80 1.2 .8
Lock culvert discharge ......................................... 0.00 4.57 0.0 2.0
Increase in storage--------------------------------------------- 6.71 3.15 4.6 1.3
Total uses and losses-------------.-------------------- 146.95 232.03 100.0 100.0

DRY SEASON

From a water-supply standpoint the 1932 dry season began on
December 22, 1931, and ended on April 30, 1932, the total duration
being 131 days. This is 18 days shorter than the 1931 dry season and
6 days longer than the average dry season which begins about January
1 and ends about May 5. The net yield of the Gatun Lake watershed
was 1,119 cubic feet per second, compared with a 19-year average of
847 cubic feet per second, or 32 per cent above the average. The
total yield was 1,944 cubic feet per second, of which 65 per cent was
furnished by the Chagres River. The lowest, elevation of Gatun Lake
was 83.18 on April 30.
No effort was made to save water at the canal locks or by operation
of the Mirnflores Diesel plant, since it was indicated early in the season
that such saving would not be necessary.
At the spillway of Gatun Lake there were 723 gate operations, of
which 397 were for lake regulation, 8 for exhibitions, 264 for sanitation,
and 54 for maintenance purposes.






REPORT OF GOVERNOR OF THE PANAMA CANAL


MADDEN DAM PROJECT

As stated in the annual report for the fiscal year 1931, invitation for
bids for the construction of Madden Dam was issued on June 15, 1931,
to be opened in Washington, D. C., on September 1, 1931. The
following bids were received:
W. E. Callahan Construction Co., St. Louis, Mo., and Peterson,
Shirley & Gunther, Omaha, Nebr-----------------------...__.. $4, 048, 657. 00
The Arundel Corporation, Baltimore, Md---------------- --- 4, 587, 550. 00
Wini-ton Bros. Co., Minneapolis, Minn., and Dent Bros (Inc.),
Los Angeles, Calif--_-- __ ___ __ __ .- - 4, 651, 683. 50
Hardaway Construction Co., Columbus, Ga----------------- 4, 753, 616. 50
Weslee Corporation, Charlotte, N. C------------------------ 4, 881, 239. 00
Frederic Snare Corporation, New York, N. Y---------------- 5, 427, 544. 00
General Construction Co., Seattle, Wash.; MacDonald & Kahn
Co. (Ltd.), and Morrison-Knudson Co., San Francisco, Calif -.- 6, 281, 580. 00
Investigation indicated that the award should be made to the W. E.
Callahan Construction Co. and Peterson, Shirley & Gunther, the low
bidders. The award was accordingly made, and they were notified
on September 12, 1931. Contract for the work was entered into on
September 14, 1931, and work was actually commenced on October
13, 1931.
FORCE EMPLOYED

As of June 30, 1932, the force employed totaled 1,154, as follows:

Gold Silver Total

United States Government-----------------.-------------------------- 45 240 285
Contractors for dam----------------.--------------------------------- 189 473 662
Contractors for clearing----------------------------------------------- 10 197 207
Total---------------------------------------------------------- 244 910 1,154

Investigations, tests, and inspections were continued throughout
the year by the Panama Canal forces. Much necessary work pre-
liminary to construction was carried out, such as construction of
quarters, water and sewer systems, construction of concrete testing
laboratory, erection of post office, commissary, clubhouses, installa-
tion of electrical service, telephones, etc.
The work of clearing and grubbing the site of the left ridge dam
and all saddle dams was done by Panama Canal forces. The greater
part of this work was accomplished during the fiscal year 1931, and
completed during August of 1931. A total of 26.05 acres was cleared
and grubbed at a cost of $13,010. In the reservoir area a tract of
104.5 acres was cleared during the fiscal year 1931 at an average cost
of $175.30 per acre. During 1932, 420 acres additional were cleared
by force account; cost of this clearing was not available at the end of






REPORT OF GOVERNOR OF THE PANAMA CANAL


the fiscal year, but due to better organization and improved methods,
the cost will be appreciably below $175.30 per acre. During the
fiscal year, following the submission of bids, contracts were awarded
for the clearing of 1,536 acres at costs ranging from $114 to $125 per
acre. Considerable progress had been made by the contractors on
this work at the close of the year.
All saddle dams on the southeast side of the Chagres River were
constructed during the year, except rock fills on saddle daiis 5 and
13. The work of building these dams went forward continuously
from December 19, 1931, to April 2, 1932. The principal items of
work accomplished in connection with the construction of these dams
are indicated by the following figures: Stripping, 30,029 cubic yards
of material; excavation, 12,750 cubic yards of earth and 1,230 cubic
yards of rock; earth embankment, 184,479 cubic yards; rock fill,
17,017 cubic yards; gravel fill, 1,122 cubic yards; core-wall, 1,295
cubic yards of concrete and 667 cubic feet of grout placed.
Excavation for Madden Dam was commenced on the left abut-
ment on February 3 and on the right abutment on April 19. Exca-
vation for counterforted wall was started on January 5 and finished
during February. Spoil dumps, sufficient to accommodate all waste
material, were located and authorized. The contractor's diversion
levee was filled in and sheet piling commenced on June 27, 1932.
Work on the left ridge dam was begun by the contractor on Decem-
ber 17 and carried forward intermittently. At the end of the fiscal
year, the cut-off trench at the upstream toe had been excavated the
entire length of the dam; 1,449.4 cubic yards of concrete had been
poured in the cut-off wall; the ledge under the cut-off wall had been
drilled and pressure grouted; and the entire area south of station
26:50 had been stripped and 23,503 cubic yards of material moved.
During the investigations of the reservoir rim several areas were
found to contain fissures, caverns, and sink holes in the rock forma-
tion. Up to the close of the fiscal year, a total of 4,147 cubic yards
of clay had been sluiced into one sink hole, and 232 cubic yards in
another. In two other areas where clay grouting was deemed advis-
able, at the close of the fiscal year 107 holes with a total of 18,548
linear feet had been drilled, and 7,884 cubic yards of grout had been
placed. The consumption of grout in these areas was considerably
below preliminary estimates.

CONCRETE PLANT, TESTING LABORATORY, ETC.
Cement is delivered to the contractor via the Panama Railroad to
Madden siding where it is unloaded from the cars to silos and thence
transferred to a silo at the mixing plant at Madden Dam by trucks.
The aggregate pit is located 5,300 feet down river from the screening






REPORT OF GOVERNOR OF THE PANAMA CANAL


and washing plant, delivery being made by an aerial tramway having
a rated capacity of 225 tons per hour. Washing of the coarse aggre-
gate will be accomplished during the screening operations, the screen-
ing plant having a rated capacity of 250 tons per hour, and storage
space for 6,000 tons, sufficient for 36 hours of plant operation, has
been provided. From the screening and classification plant the
aggregate will be delivered to the mixing plant by a belt conveyor.
The miixing plait will have a total capacity of 120 cubic yards per
hour, with a storage, capacity in the mixing-plant bins of 1,100 tons,
or sufficient material for approximately six hours' continuous opera-
tion. All ingredients for the concrete will be measured by weight.
From the mixing plant, the concrete will be transported in steel dump
cars to a point within range of an aerial cableway, where the contents
of the cars will be discharged into buckets of 8-cubic-yard capacity
in which the concrete will be delivered to the point of placement in
the forms.
PROGRESS ON CONTRACTORS' CONSTRUCTION PLANT
At the close of the fiscal year all machinery and equipment at the
aggregate loading terminal had been reconditioned, and the loading
terminal proper was 100 per cent complete. The conveyor system
from the truck loading station to the terminal surge bin was about
90 per cent complete. All towers for the tramway had been erected
and(l cables strung from the loading terminal to the double-tension
tower, but the stringing of cable from the tower to the screening
plant was awaiting completion of the latter. At the screening plant,
the concrete foundations for the main structures were completed and
about 35 per cent of the structural steel erected. The screens,
washer, and other machinery had been delivered with the final placing
of the plant scheduled to start about the middle of July. The con-
veyors between the screening plant and mixing plant were about 90
per cent completed, with the unit scheduled to be read(ly for operation
by July 25. At the mixing plant, the structural steel was about 50
per cent in place, with July 23 fixed as the date for completion. All
structural steel for the head tower and head-tower trestle had been
erected(l and bolted with the probability that the work would be
completed by the end of July. Good progress was being made on
the installation of niaichinery and electrical equipment. The cement
silo and unloading machinery at Madden siding were finished during
the fiscal year, as were also the cement silo and handling facilities at
Madden Dam, but preliminary operations indicated the need for
some alterations and repairs.
The Government testing laboratory was erected midway between
the mixing plant and the screening plant. The equipment and
















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REPORT OF GOVERNOR OF THE PANAMA CANAL


apparatus are of modern design and comply in every respect with
Government standards. The laboratory is equipped to make all
standard physical tests on cement, concrete, and aggregates, and was
ready for operation on March 18.
The installation of a flood warning system for long-distance trans-
mitting, indicating, and recording of water levels was commenced
and advanced to approximately 95 per cent of completion by the end
of the fiscal year. This system is being installed for the purpose of
indicating and recording at Madden Dam the water level at a station
on the upper Chagres River and giving alarm when upper Chagres
River levels attain a predetermined threatening rise which will hazard
equipment and operations during dam construction. After construc-
tion is completed it will furnish advance information of floods for
regulation of levels at both Madden and Gatun Lakes;. To provide
for this circuit it was necessary to build approximately 46,000 feet
of overhead pole line and lay approximately 37,500 feet of armored
cable, buried underground.
The first concrete to be placed on the project in Government struc-
tures was laid on January 22 in the core wall of saddle dam No. 5.
The only other concrete placed during the fiscal year was in the toe
wall of the left ridge dam, work on which began February 9 and was
completed on April 11. The total concrete placed during the year
was approximately 2,750 cubic yards.

MATERIAL AND SUPPLIES
The Madden Dam specifications require that all materials for use
in Madden Dam be purchased by the Government, although installa-
tion will be made by the contractor. The estimated cost of all mate-
rial and equipment necessary for the completion of the project is
$3,389,000. The value of the material contracted for and purchased
up to June 30 was $625,712, while material used in construction or
delivered to the contractors up to June 30 totaled $.S2,062.

EARNINGS, DEDUCTIONS, AND PAYMENTS
Work performed by the contractor up to June 30 aggregated
$736,238.72; from this, deductions of $73,.2:3.87 were withheld,
making payments up to the close of the fiscal year, $662,014.85.
MAINTENANCE OF CHANNEL AND IMPROVEMENT PROJECTS
Dredges were at work throughout the year on maintenance of the
canal channel in the Atlantic and Pacific entrances, Gatun and Mira-
flores Lakes, Gaillard Cut, and Balboa inner harbor; auxiliary







REPORT OF GOVERNOR OF THE PANAMA CANAL


dredging at the Pacific terminals, and Balboa ferry slips. Excavation
d u ring the fiscal year is summarized in the following table:

Location Earth Rock Total

From canal prism: Cubic yards Cubic yards Cubic yards
Gaillard Cut, project No. 3----------------------------- --..., 500 24,550 33,050
Gaillard Cut, project No. 5-----------------------------------... 29,950 166, 500 196,450
Gaillarid Cut, project No. 9------------------------------------- 11,000 33,000 44,000
V;iillardl Cut (maintenance)-------------------------------- 345,150 843,700 1,188,850
Miraflores Lake, project No. 6------------------------------. 259,900 86,600 346,500
Miraflores Lake (maintenance).-----------------------.------- 181,800 0 181,800
Pacific entrance, project 1, 1-A, 1-B....----------------------....... 1,424,600 74-5.600 2,170,200
Pacific entrance (maintenance) --------------------------------- 3,622,350 72,650 3,695,000
Total, canal prism------------- -----------------------....... 5,883,250 1,972,600 7,855,850
Auxiliary:
Project No. 1, Balboa inner harbor..-..--------------------------- 0 12,150 12,150
Balboa inner harbor, maintenance-.--------------.----------- 22,600 7, 100 29, 700
East and west ferry slips----------------- ------------------ 109, 900 31,700 141,600
Gatun Lake, refloating steamship President Lincoln...........------------- 15,550 950 16,500
Total, auxiliary---------------------------------------- 148, 050 51, 900 199,950
Grand total.--- ------------------------------------ 6,031,300 2,024,500 8,055,800


Dredging operations at the canal are divided in three major districts:
The northern district, from contour 42 feet below mean sea level in
the Atlantic Ocean to Gamboa; the central district, Gaillard Cut,
from Gamboa to Pedro Miguel Locks; the southern district, from
Pedro Miguel Locks to contour 50 feet below mean sea level in the
Pacific Ocean. Excavation in these three districts is summarized as
follows:


Canal prism Auxiliary Total

Earth Rock Total Earth Rock Total Earth Rock Total

Northern------_ 0 0 0 15,550 950 16,500 15,550 950 16,500
Central--------- 394, 600 1, 067,750 1,462,350 0 0 0 394,600 1,067,750 1,462,350
Southern..-------5,488,650 904,850 6,393,500 132,500 50,950 183,450 5,621,150 955,800 6,676,950
Total-- 5,883,250 1,972,600 7,855,850 148,050 51,900 199,950 6,031,300 2,024,500 8,055,800


Included in the excavation outlined in the foregoing, were 16,500
cubic yards of earth and rock excavated in refloating the steamship
President Lincoln which grounded in Gatun Lake near Darien.

CANAL IMPROVEMENT WORK

Inprorement project No. 1.-This project, consisting of deepening
the Pacific entrance channel from Miraflores Locks to the sea buoys
including the Balboa inner harbor, from -45 feet to a ruling depth
of 50 feet (mean sea level datum), was begun in July, 1924. Various
additions known as projects 1-A and 1-B, Pacific entrance, and project
No. 1-A, Balboa Harbor, were subsequently authorized as outlined
in previous annual reports.






REPORT OF GOVERNOR OF THE PANAMA CANAL


The total excavation on projects Nos. 1, 1-A, and 1-B, Pacific
entrance, for the year was 2,170,200 cubic yards, making the total
excavation on these projects to date 9,146,450 cubic yards.
Excavation for the year from improvement project No. 1, Balboa
inner harbor, amounted to 12,150 cubic yards of unmined rock. The
total excavation on this project to the end of the fiscal year was
2,291,850 cubicyards, bringing the project to 80 percent of completion.
Project No. S.-This project consists of widening the channel at the
north entrance of Gaillard Cut and extending northward, terminating
at the south end of Gamboa Reach; it also provides a tie-up station
opposite Gamiboa, as an extension of the original plan.
Work on this project was started in September, 1929. Dredging
was resumed during January and February of this year. A total of
33.050 cubic yards of material was excavated during the year, 8,500
cubic yards of which were earth, 8,700 cubic yards unminedil rock, and
15,850 cubic yards mined rock. At the end of the fiscal year 786,950
cubic yards had been excavated and the project was 44 per cent
completed.
Project No. 5 (recixed).-This project, begun in 1930, consists of
widening Gaillard Cut approach to Pedro Miguel Locks and eliminat-
ing the reverse bend from Paraiso Reach to Cucaracha Reach so as
to increase the field of vision between vessels approaching from
opposite directions. A total of 196,450 cubic yards of material was
excavated during the year, 112,450 cubic yards of which were mined
rock. At the end of the fiscal year, a total of 460,650 cubic yards
had been excavated and the project was 51 per cent completed.
Project No. 6.-This project consists of broadening the original
500-foot channel extending from the south end of Pedro Miguel
Locks to the north end of Miraflores Locks to a width of 750 feet.
The object of widening and straightening the channel at this point
is to eliminate the turn in this comparatively short reach and at the
same time give additional maneuvering space for vessels in transit
and while standing off awaiting lockage.
Work was started in April, 1932, and at the end of the fiscal year
346,500 cubic yards of material had been excavated and the project
was 31 per cent completed.
Project No. 9.-This project, begun in 1928, consists of widening the
channel fronting the West Culebra slide to minimize the danger to
ships entering Gaillard Reach and to provide a basin for retaining
slide material in case of a movement of the West Culebra slide area.
It is thought that the creation of this basin will lessen the tendency
of the material in this area to push up in the channel.
A total of 44,000 cubic yards of material was excavated during the
year, of which 11,000 cubic yards were earth and 33,000 cubic yards
were unmined rock. At the close of the fiscal year, total excavation






38 REPORT OF GOVERNOR OF THE PANAMA CANAL

aggregarted 277,200 cubic yards and the project was 55 per cent
completed.
AUXILIARY DREDGING

East and irst Jerry slips.-This project consisted in excavating a
channel on either side of the canal to serve as ferryboat approaches
to the landing ramps of the Thatcher Highway and Balboa Ferry
terminilm. Total excavation for this project amounted to 141,600
cubie yards.
Dredging around grounded vessel.-At about 5 p. m., September 20,
1931, the steaimship President Lincoln, of the Dollar Line, a vessel of
14,187 gross tons, 516.5 feet long, 72.2-foot beam, and with a mean
draft of 29 feet, while in transit through the canal, ran aground south
of buoy No. 78, approximately midway between Gamboa and the
Darien radio station. In order to refloat the vessel, the dipper dredge
(Cihbi#a excavated a 40-foot channel from deep water to the bow of the
ship, after which, with the assistance of tugs, the vessel was refloated.
A total of 16,500 cubic yards of material was excavated in connection
with this work.
SLIDES

On December 30, 1931, in the area embraced in the East Powder
House slide, a hard rock berm pushed out into the canal channel for
a distance of 40 feet. A second break occurred in this same area
during the night of May 7, 1932, when about 25,000 cubic yards
entered the canal with the toe projecting about 50 feet beyond the
east prism line. The back break line at this time extended approxi-
mately 300 feet east of the east prism line. Considerable surface
material was still in motion at the close of the fiscal year.
On November 9, in the East Culebra slide extension area, approxi-
mately 165,000 cubic yards of material entered the canal prism, fol-
lowed by an additional 50,000 cubic yards when a second break
occurred on November 23. It is estimated that approximately
2,000,000 cubic yards of material were in motion in this area, of which
approximately 1,000,000 cubic yards will eventually have to be
removed. The break line of this slide extended back a maximum of
800 feet of the east prism line, reaching an elevation of 240 feet above
mean sea level, and embracing an area of approximately 10 acres.
No further activity was noted in this slide area until June 22, when
extensive breaks developed several hundred feet to the south of the
November break line.
In the West Culebra slid(le area, a slow, continuous movement,
averaging 1.8 feet monthly, was in progress throughout the year.
In the East Culebra slide area a general movement in the back
central area was noted, extending from 500 to 1,000 feet east of the
canal center line.






REPORT OF GOVERNOR OF THE PANAMA CANAL


Less important movements occurred in a number of other slide
areas, necessitating the removal of material entering the canal..
The total excavation from all slide areas totaled 993,300 cubic
yards for the fiscal year, bringing the aggregate material removed on
account of slides up to 45,789,943 cubic yards at the close of the
fiscal year.
The only interference with shipping during the year caused by slides
occurred in November, when the canal was closed to coninmmercial
shipping from the morning of the 9th until 2.45 p. m. on the 11th.
FARFAN SPILLWAY
Work on this spillway, begun May 18, 1931, was continued during
the year. Construction of the spillway proper was completed on
January 7. This spillway will handle the entire run-off from a
watershed area of 4,017 acres. The structure consists of 18 bays of
6 feet 3 inches clear opening, and has an over-all length of 133.5 feet
and a width of 45.5 feet. A roadway, 11 feet wide, crosses the
length of the spillway. Construction of this spillway involved the
placing of 690 cubic yards of reinforced concrete and, together with
approach channel, required the excavation of 18,100 cubic yards of
material.
FARFAN RIVER DAM
A hydraulic fill dam was constructed across the Farfan River,
approximately 2,700 feet north of the spillway and 1,000 feet from
the mouth of the river. This dam permanently diverts the flow of
Farfan River through the new Farfan spillway. The hydraulic fill
comprising this dam is 450 feet in length, and was brought up to
elevation plus 16 feet. The surface of the dam was planted with
mangrove to retard erosion.
EQUIPMENT
The following floating equipment was employed during the fiscal
year: Three 15-yard dipper dredges, the Cascadas, Gamboa and
Paraiso, operated for 207 days, 263 days, and 248 days, respectively;
one 20-inch pipe line suction dredge No. SiI was operated for only one
and one-half days during the year, and after undergoing a general
overhaul was held in reserve; one 24-inch pipe line suction dredge,
Las Cruces, 360 days; one hydraulic grader was operated for 366 days;
two drill boats were operated 330 days each during the year; one air
compressor was in operation for the entire year; the crine boat La
Valley was in operation throughout the entire year; five large tug-
boats were operated during the year, one or two of them in turn being
under repairs or held in reserve; miscellaneous small craft were used
throughout the yearin auxiliary service. The two Diesel ferryboats,
President Rooserelt, and Presidetide Amador, were placed in service
142576-32- 4






REPORT OF GOVERNOR OF THE PANAMA CANAL


during the year. The President Roosevelt, commissioned on July 28,
was operated in ferry service at Pedro Miguel until November 2, after
which it was placed in reserve. The Presidente Amador, commis-
sioned on November 3, was operated in ferry service at Pedro Miguel
for the remainder of the fiscal year.
The work of converting the dredge Cascadas from a single 3%-inch
main hoist, cable to twin 2%-inch main hoist cables was completed in
February.
FERRY SERVICE
The vehicular ferry across the canal at the north end of Pedro
Miguel Locks, between the east and west banks of the canal, was in
daily operation throughout the year, making a total of 16,144 trips
and carrying 75,941 vehicles and 398,037 passengers, as compared with
75,939 vehicles for the previous year. By months the number of
vehicles transported ranged from 4,655 in June to 10,174 in March.
This service was opera ted on a continuous schedule between the hours
of 6 a. m. and 9 a. m., and from 5 p. m. to 9 p. m., and hourly trips
were made between the hours of 9 a. m. and 5 p. m.
The ferryboats President Roosevelt and Preside ne Amador were
used in this service practically the entire year, supplanting a steam
tug and barge and giving much more efficient and economical service.
AIDS TO NAVIGATION
The lighthouse subdivision, in addition to the regular maintenance
work on the lights, buoys, and beacons in the canal and adjacent
waters, effected the following installations: The Toro Point Light-
house was changed from an attended aid to an unwatched, automatic
lighthouse. Its operation on an automatic basis has been entirely
satisfactory. The Cape Mala Lighthouse was converted from auto-
matic gas to electric operation, the current being supplied from the
United States naval radio station at this point. A higher powered
light with greater visibility is provided under the new arrangement
and increased economy of operation effected. A new aid, designated
as the East Gap Light, was established on November 1, 1931, on
the eastern end of the East Breakwater at the Atlantic entrance for
the benefit of coastwise and other shipping making use of that en-
trance. This is an unwatched light mounted on a 15-foot skeleton
tower and showing flashing red.
The marking of small boat channels in Gatun Lake was continued.
Approximately 2 miles of the main channel to the Gigante arm were
marked with red and white stump markers. Similar markings were
carried on in the Wilson, Ciricito, Gatuncillo, Quebrancha, and
Trinidad arms. A total of approximately 400 of these markers were
placed during the fiscal year. Additional submerged stumps were
located from time to time and cleared from the channel by blasting.






REPORT OF GOVERNOR OF THE PANAMA CANAL


ACCIDENTS TO SHIPPING

The board of local inspectors conducted investigations and sub-
mitted reports on 48 accidents of a marine nature, as compared with
73 for the previous year. These accidents occurred either to vessels
in transit or in the terminal ports. The number of accidents in which
the estimated damages amounted to $1,000 or more was 5, as com-
pared with 17 for the fiscal year 1931. Classification of the 48 acci-
dents shows the following: Struck lock wall or fenders, 19; struck
wharves or wharf piling, 6; collision between ships, 5; fouled propeller,
4; grounded, 3; damaged by canal tugs, 2; damaged by bhurge in tow
of canal tug, 1; canal tug damaged by ship, 1; danmaiged through
surge set up by another ship, 1; damage to cargo (livestock) through
listing, 1; damaged through breaking of fuel line, 1; loss of anchor
and chain while being used to prevent grounding, 1; explosion and fire
on launch, 1; drowning through capsizing of cayuca, 1; dispute
between master and pilot, 1; no damage resulted from the last-named,
but the incident was investigated.
Following is a brief summary of the more serious accidents, in
chronological order:

Esti-
Date Vessel Cause of accident mated Resonibiut t
Datedarn- attributed to-
age

1931
July 18 Lanileetarn.................... -----------------Colliion with Vulcan City------- $3,700 Vulcan City.
18 \'Iulcan City................... ------ Collision with Langleetarn --------.. 3,000 Vessel.
Aug. 12 Volivier---------------------- Struck center wall, Gatun Locks-.. 1,200 Panama Canal.
Oct. 15 Middlesex.-.................... Struck knuckle on wing wall of 2,200 Do.
locks at Pedro Miguel.
1932
Jan. 15 Pennsylvania -------...--------. Struck lock wall, Gatun Locks -- 2,500 Do.
June 14 Simon Bolivar----------------- Struck corner of dock--------..- 3,000 Vessel.

SALVAGE OPERATIONS
The tug Farorite handled one major salvage operation during the
year. This was for the steamship President Lincoln of the Dollar
Steamship Line, which grounded in Gatun Lake on September 20,
1931. The vessel was ashore for about half its length on the port
side and about one-quarter of its length on the starboard side and
lacked almost 8 feet of its forward draft. After about four days
work the vessel was refloated and completed transit with no apparent
damage other than a slight leak in the fore hold.
The tug Farorite also performed one seagoing towing job during the
year. On January 12, while engaged at the Jicarita lighthouse, word
was received on board the Favorite that the sailing ship Tusitala was
becalmed off the coast of Costa Rica and desired towage to the canil.
The Farorite left Jicarita at 6.10 p. m., January 12, and took the
Tusitala in tow the following morning, arriving at Gatun Lake






REPORT OF GOVERNOR OF THE PANAMA CANAL


anchorage shortly after noon on January 16. The Tusitala, the last
of all-sail ships to make the canal regularly, has since been reported as
having been permanently deconmmnissioned.
METEOROLOGY-HYDROLOGY-SEISMOLOGY
Pi(c'upiat1'ion.-For the calendar year 1931 precipitation in general
was above normal. Annual totals ranged from 74.98 inches at Balboa
to 162.87 inches at Porto Bello. The maximum precipitation recorded
in 24 consecutive hours was 10.48 inches, at Barro Colorado on
November 7 and 8. The average precipitation in the Pacific section
was 77.51 inches, in the central section 109.04 inches, and in the
Atlantic section 141.06 inches.
Air tiepe aui eCs.-The maximum and minimum temperatures of
record at various stations, revised to June 30, 1932, and the annual
average tempera t izre for the years of record, are shown in the tabulation
following:

Maxi- Mini- Annual Years of
mum mum average record

0 F. 0 F. 0 F.
Balboa Heights ------------------------------------------- 97 63 78.7 26
Alhajuela--------------------------------------------------- 98 59 78.6 21
Gatun --------------------------------------- --------------- 95 66 80.4 21
Cristobal----------- ------------------------------------- 95 66 79.9 24

W;i'1.v.-For the calendar year 1931 the annual wind movement,
was below normal except over Gatun Lake. January was the month
of greiatest average wind velocity (14 miles per hour at Cristobal, 9.8
at Balboa Heights) and September the month of the least (5.4 miles at
Cristobal and 4.5 at Balboa).
T!(I.1t'irl hlni d;iy.-The mean relative humidity of the atmosphere
for the calendar year 1931 was 83 per cent on the Pacific coast and
81 per cent on the Atlantic cost. February was the month of least
average relative humidity and November the greatest.
Tid(i.-For the calendar year 1931 the maximum high tide at
Balboa, 11 feet above mean sea level, occurred on October 13; the
maximum low tide there, 11 feet below mean sea level, occurred on
March 6. The greatest daily range there, 21.1 feet, also occurred on
March 6. At Cristobal the maximum high tide, 1.9 feet, occurred
on November 8; this is the highest high tide for years of record. The
maximum low tide, 0.83 foot, occurred on December 8. The greatest
daily range, 1.96 feet, occurred on December 9.
Sc;.'mology.-Forty-two seismic disturbances were recorded on the
scismnographs at Balboa Heights during the year ending June 30,
1932, as compared with 45 in the fiscal year 1931 and 28 in 1930.
Of the 42 disturbances recorded, 32 were of comparatively close
origin. Three of these, occurring on October 12, 1931, February 5,






REPORT OF GOVERNOR OF THE PANAMA CANAL


1932, and February 20, 1932, respectively, were generally felt locally
but no material damage was done. On May 21 a quake was recorded
with a 600-mile radius which caused much damage in Salvador. On
June 3 a quake was recorded with a 1,300-mile radius which ciuised
considerable damage to life and property in Mexico. New Wood-
Anderson seismographs were installed and placed in operation during
May, 1932, but final adjustments have not been completed.
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 reprinted as of August 1, 1931, with
the incorporation of the 22 supplements which had been issued since
the original publication of the regulations. Supplement No. 1 to the
1931 edition was issued on June 23, 1932, amending regulations 47.3,
47.9, and 47.10, concerning vessels carrying cargoes of explosives.











SECTION II


BUSINESS OPERATIONS
Because of the relative remoteness of the Panama Canal from places
of supply and repair, the canal organization maintains facilities for
the repair and supply of ships as well as for the operation and main-
tenance of the canal and the care of employees. These facilities are
operated by "business divisions" of the canal organization and units.
of the Panama Railroad Co. For accounting purposes the canatil and
railroad organizations are separate but in administration and perform-
ance of work they are united and under the central control of the
Governor of the Panama Canal.
PANAMA CANAL BUSINESS OPERATIONS
The profits, or excess of revenues over expenses, for the business
activities of the Panama Canal amounted to $557,095.44 for the year,
as compared with $562,764.17 in the fiscal year 1931. This was a
decrease of $5,668.73, or slightly over 1 per cent. The results are
presented in some detail in Table 26 in Section V.
In the accounting of profits and losses of the business activities
there is no actual interest charge on the money invested in these plants
and their equipment. This investment totaled $26,400,662.75 at the
beginning of the fiscal year and $26,486,679.88 at the end (Table 4 in
Sec. Vi). To establish a criterion for profit, a capital charge has
been calculated, based on 3 per cent of the capital investment (with
minor variations, such as 2 per cent on public works in Panama and
Colon, and 1 4 per cent on the shops at Balboa, which for reasons of
national defense were made somewhat more extensive than the needs
of commerce require) plus relatively slight amounts representing
variations in supplies on hand. This theoretical capital charge was
$768,663.65 for the fiscal year 1932. The profits of $557,095.44 fell
short of this by $211,568.21.
Based on the figure of $26,400,662.75, representing fixed property
and equipment alone at the beginning of the year, the profits of
$557,095.44 showed a return of 2.11 per cent on the capital invested.
MECHANICAL AND MARINE WORK
The volume of work performed for the Panama Canal, which is the
principal item in the work of the mechanical division shops, showed a.
decrease of $101,199.65,or 6.7 per cent, as compared with the preceding
fiscal year. Work for the Panama Railroad Co. showed a decrease of
$106,582.02, or 15.8 per cent, as compared with the fiscal year 1931.






REPORT OF GOVERNOR OF THE PANAMA CANAL


Work for other departments of the Government showed an increase in
comparison with the fiscal year 1931 of $271,003.43, or 34.9 per cent.
Work for individuals and companies, including that of ships transiting
the canal or calling at terminal ports, showed a decrease of $32S,SS7.47,
or 52.06 per cent, as compared with the preceding year. For the
five fiscal years from 1925 to 1929, inclusive, the value of work for
individuals and companies averaged approximately $925,000 a year.
Cominpared with this, the amount of work in 1930 and 1931 was about
two-thirds normal and the amount for 1932 about one-third normal
work.
The total volume of work for all interests decreased materially
during the past year in comparison with the preceding three years.
This necessitated considerable part-time work in all departments of
the mechanical division. The furlough periods were varied during
the year as work was available. During some months all employees
would have steady work; at other times they would be furloughed in
rotation with the net result of working from five-sixths to one-half
time. The approaching locks' overhaul will insure practically steady
employment for all men of the mechanical division during the first
four months of the calendar year 1933.
The value and class of work done and the source of the same for
1932, as compared with the two preceding years, are shown in the
following table:

1930 1931 1932

Amount of work completeJ.
Marine ..- -- - ..- .....-- ....... $1,964, 834.47 $1,713,789.06 1, 9V11'. 748.14
Railroad ......................................... . i. 4 13 .44 633,279.48 4y.. 761.06
Stocks and materials -------------.---------------- 309,803.58 307.117.44 2u7,178.82
Sundries--------------------------------------- 456,468.14 1 025.66 3y .S57.91
Total--------------------------------------- 3. 37'j. 2-15 63 3,332,.211.1.4 3. i.i'.G, 5-15.93
Origin of work (oniplete-
Inhliviluals an'l cornipanni.--s I........................ 614,458.01 632,378.02 303,490.55
The 1'M ii .)i C:inal-................................. 1,408,778.89 1,518,041.62 1,416.841.97
Panama R. R. Co ------------------------------- 758,293.95 C.76,3r,7 39 56%9,785.37
Ocher departments of United States Government- 597,714.78 :.05, 424. 1 771':,428.04
Total---------------------------------------- 3,379, 2-45 63 3,332,211.64 3, 013, 5-15.93

1 Includes Panama R:iilroa'i Steamship Line.

DRY DOCK AND MARINE WORK

A total of 154 vessels were dry-docked during the year-75 at
Balboa and 79 at Cristobal. A classification of these vessels follows:

I
Dalboa Cristohbal Total

Panama (Canal eqii nn l t ........................................ ........ 24 5 29
U S. N avy v3 ess ls. ....................................................... 20 Ii. 36
U S. Arm y vessels ........................................................ 4 1; 10
Other 'nilt l S aiitc-s I i'i rnm entl v5sels................................. 2 2
Panama R. I. vessels. ................................................... I : 4
Com mercial line vess-ls................................................... 2-, 47- 73
T otal-............................................................... 7.5 7., 154






REPORT OF GOVERNOR OF THE PANAMA CANAL


The usual run of ciiwer:-ency and voyage repairs was carried out for
coiiinu:Tlcil vessels both at Balboa and Cristobal during the year.
At the Balboa shops annual overhauls, including dry-docking, were
-:iv-n the st':i!iisips, Creole Lindo, Cre ole Jefe, Creole Bue'no, 3laracay,
and lIrfniii,, the motor ships Frost and Annie Edith and the cableship
All America. The steamship Point Ctico arrived at Balboa under
tlI with itailshaft broken and propeller lost. New propeller blades
of mingniii'se bronze were designed, cast, and installed by the mechan-
ic-al divi-ion and are reported to have improved the vessel's speed by
approximately one-half knot. These four propeller blades (having a
finis4"l weight of 4,060 pounds each) are the heaviest bronze castings
of this character ever produced at the Balboa shops.
At the Cristobal shops important repairs to commercial vessels
included disinantling, repairing, and installing air compressor and
generator engine of the motorship City of Panama, and the manu-
ftchire of a new main engine intermediate gear shaft with new piston
geair and keys for the motorship Siaingtad. The starboard air com-
pressor of the motor ship Hindanger was removed, repaired, and re-
planed. Repairs were also made to the two seagoing coal barges
DUicK n and Mamei following their disposal by the Panama Railroad
Co. anid preparan tory to their being towed to the United States by their
ne\w owners.
While the commercial work declined, that for the United States
Navy showed a strong opposite tendency. The total amount of work
undertaken for the United States Navy during the fiscal year 1932,
established a record to date. The total, including both Balboa and
Cristobal shops was $647,290.59, or approximately 33 per cent of the
total amount of marine work undertaken by the mechanical division
during the fiscal year. In comparison, marine work performed for
the Navy for the two preceding fiscal years was $496,092.59 for 1930,
and( $419,067.01 for 1931. This increase in work for 1932 is due in
large measure to the extensive repairs and alterations made to sub-
miarines b1s;cd on the canal. The bulk of this work consisted of
repIirs, alterations, and annual overhaul of submarines Nos. S-10,
S-11, S-12, S-13, S-14, S-15, S-16, S-17, and S-48, the U. S. S.
Saira)/nti tipf, U. S. S. Soa1, U. S. S. Mallard, U. S. S. Clherink, and
the U. S. S. iRoci ,ti;r, as well as mi icellaneous repairs to tugs, launches,
and( yard crnaft, stationed at Coco Solo.
The U. S. S. ArLansiiis was dry-docked for cleaning, painting, and
other routine work. As in the previous docking of battleships the
only lack was the ability to supply an adequate amount of direct
current eloct ricity from shore. The light cruisers MAlempih is and Trent-
on were sepiiarntely placed in dry dock and damaged propellers were
rej)aired on each.






REPORT OF GOVERNOR OF THE PANAMA CANAL


Besides the usual overhauls and repairs to dredging division and
marine division floating equipment, the conversion of the dipper
dredge Cascadas from a single to a double hoist was completed.

OTHER WORK
The ferries Presidente Ainador and Prsi;dcnt RooRerelt, under con-
struction at the beginning of the fiscal year, were completed and
delivered to the dredging division, and have proved quite successful
in service.
The structural steel towers and ramp bridges for thei two ferry
landings in Balboa Harbor, in connection with the Thatcher Highway,
were purchased in the United States and shipped to the Isthmnus
knocked down. These were erected and riveted at the Balboa shops.
Toward the close of the year, the tower and ramp for the west landing
were carried to the site. by water and placed by one of the floating
cranes, whereupon installation of the tower machinery was begun.
Shop assembly of tower machinery for the east landing had also been
accomplished at the close of the fiscal year.
During the year orders were received for the building of the new
crane boat Atlas as a replacement for the crane-ship La Valley. The
design work on this vessel is well advanced, contract for the main
engines has been let, and a considerable part of the hull fabricated in
the shops. The main dimensions are 186 feet length over all, 177 feet
10 inches length between perpendiculars, 41 feet moulded beam, 16
feet molded depth, 9 feet, 5 inches mean draft with a 3-foot drag,
and 1,323 tons displacement. There will be a 25-ton revolving crane
forward and a 75-ton crane mounted amidshlips. The large crane
will be equipped with a 35-foot boom to give it a reach of 25 feet
beyond the side. It is estimated that the craft will be completed
toward the close of the fiscal year ending June 30, 1933.
Three new electric towing locomotives were completed and delivered
to the locks during the year.
The erection of the first of the 1,000,000-gallon water tanks at
Mount Hope was completed and the tank put in service in the first
half of the fiscal year. Work on the other tank has been advanced
to a point where the steel work. is practically completed and the tank
ready for test.
The 13,600-barrel gasoline storage tank for the Texas Oil Co., the
construction of which was begun during the preceding fiscal year,
was completed.
PLANT
The erection of the new woodworking shop was practically conim-
pleted by the end of the year and the machinery for it on order.






REPORT OF GOVERNOR OF THE PANAMA CANAL


With the $400,000 appropriated by Congress and the small amor-
tization reserve available, the Cristobal Dry Dock will be enlarged;
the work will probably begin in December, 1932. The present dock
was built by the French about 50 years ago and has been enlarged
once. Its present dimensions are 300 feet in length, 50 feet in breadth
at entrance, and 132 feet over sill and over blocks. It will not accom-
miodate Panniama Canal dred(lges or dump scows, and except for small
coasting vessels, it is inadequate for vessels using the canal. The
new dock will be capable of taking ships 385 feet long, up to 58 feet
in breadthli and with a draft of nearly 21 feet.

FINANCIAL
The total expenditures of the mechanical division amounted to
$2,760,783.89, which is $550,718.42 less than the preceding year. Net
revenues of $44,320.87 were earned after making deductions for
Cristobal shop improvements. Local reserves at the end of the fiscal
year for repairs to buildings and equipment and for replacements of
nmcliine-iy and equipment, improvements to Cristobal shops, and
gratuity for employees' leave totaled $576,626.44, as compared with
$356,605.77 at the end of the fiscal year 1931.
ELECTRICAL INSTALLATION AND REPAIR WORK
Electrical work for the United States Navy in connection with
general alterations, overhaul, and installation of equipment on eight
suiibiiiarine- necessitated the employment of 8 or 10 employees on a
2-shift bnasis over a period of about nine months. Other important
items of electrical work carried out during the year were the installa-
tion of exterior electrical distribution and telephone system for
Madden Dam town site; extension of street lights, telephone, fire
alarm, and electrical distribution systems for the new quarters in the
Balboa and Cristobal districts; laying of approximately 8,500 feet
of 5-c tnductor armored control cable between the Ancon pump sta-
tion and the new 1,500,000-gallon reservoirs on Engineers Hill, near
Corozal, for water-level indicators; a new power feeder was installed
from B;ahiin suibstation to a new transformer house located in Balboa
Flats, and a new tranin-former house was built and distribution cables
were relirrnngeid on Mindi Street, Ancon.
At the Tlih;tclier Highway ferry crossing a telephone cable and an
electric power cnible were laid in the trench on the bottom of the canal
along with the \ ;iter pipe. The telephone cable consists of a 25-pair
leaid-sieatited and armored cable and is to provide telephone com-
mnnicati(in to the west side ferry finding, Farfan Beach, police booths,
and possibly PiPalo Seco and points beyond. The electric power cable
consists of a 3-conductor No. 2/0 AWG, 6,600-volt, rubber-insulated,
lend-shenthed and armored cable, and is to provide power for the


48






REPORT OF GOVERNOR OF THE PANAMA CANAL


operation of the lifts at the west side ferry landing and to take Care of
other power needs on the west side of the canal.
The gradual installation of electric ranges in Canal Zone quarters
was continued, and at the close of the fiscal year the totals of the three
types of electric ranges in use were 43 of the 2-burner type, 1,562 of
the 4-hurner type, and 7 of the 6-burner type.
PURCHASES AND INSPECTIONS IN THE UNITED STATES
As in the past, the principal purchases of supplies during the year
were made by the Washington office. Branch offices in charge of
assistant purchasing agentswere continued at NewYork, NewOrleans,
and San Francisco. While these offices have not been called upon to
make many purchases during the fiscal year, they have acted as
receiving and forwarding agencies for materials which have been pur-
chased by the Washington office for forwarding to the Isthmus
through their respective ports. The Panama, Canal medical section,
New York general depot, United States Army, Brooklyn, N. Y., has
continued as heretofore to make purchases of the principal medical
and hospital supplies which are used for the Panama Canal on the
Isthmus.
Wherever practicable, purchases are made for delivery on the Isth-
mus in accordance with the long-established policy of permitting
competition for the canal's requirements on even terms in all sections
of the country.
The force of inspectors in the field, under the supervision of the
inspecting engineer located at Washington, has been continued as in
the past for the purpose of making preliminary inspections of materials
in the United States covering purchases, whether delivery is required
on the Isthmus or elsewhere. The number of orders placed during
the fiscal year was 6,660, being a decrease of 600 as compared to the
fiscal year 1931, or 8.3 per cent.
The total value of orders placed in the Washington office during the
year was $4,018,092.85, as compared with $3,763,564.71 for the fiscal
year 1931, or an increase of $254,528.14. This increase was due to
supplying material for the construction of Madden Dam and Thatcher
Highway within thie accompanying ferry slips and ferryboats. These
totals do not include requisitions for medical and hospital supplies
handled through thie medical section, New York general depot, United
States Army, Brooklyn, nor orders placed by the assistant purchasing
agents at New York and New Orleans.
The assistant auditor's office in Washington prepares vouchers for
payments to be made in the Washington office, keeps records relative
to payments and financial transactions, conducts correspondence
relative to payment of claims, has charge of collections, prepares
reports and claims submitted to the General Accounting Office, claims






50 REPORT OF GOVERNOR OF THE PANAMA CANAL

division, for settlement, has charge of work in connection with the
deposit for tolls made with the Federal reserve banks, and, in general,
passes upon legal questions involved in the transactions of the business
of the Washington office. During the year 10,003 disbursement
vouchers, amounting to $3,980,075.90, and 729 collection vouchers,
amounting to $163,917.55, were prepared. In addition to the collec-
tion vouchers, 12 collections, amounting to $40,000, were made by
transfer of appropriations through the General Accounting Office,
making the total amount collected $203,917.55 on 741 different
accounts, an increase of 145 in the numinber of collections but a decirea'e
of $157,834.64 in the amount collected.
During the year 63 contracts were prepared, amounting to $6,239,-
564.22, representing an increa-e over the preceding year of 32 con-
tracts and $4,787,196.08 in amount. Among the contracts let was
the one for the construction of Madden Dam, amounting to $4,048,657,
which largely accounts for the increase in the value of contracts
prepared.
SHIP CHANDLERY AND OTHER STOREHOUSE SUPPLIES
The operation of the storehouses was continued under the same
policy as during the preceding years and inventory values were held
down to the lowest practicable figure. The book value of stock on
hand at all storehouses at the end of the year was $4,893,275.26. The
total value of all materials received on requisition from the United
States during the year was $3,385,798.83. Local purchases were
made during the year to the extent of $438,288.36. Scrap and
obsolete stock remaining on hand at the end of the year were valued
at $50,653.69.
The general storehouse at Balboa, including the medical storehouse,
and the branch storehouses at Cristobal and Paraiso handled a total
of 131,106 requisitions and foremen's orders during the year. The
value of all issues for the year was $3,660,524.77. Material and
supplies sold to steamships, employees, and others aggregated
$684,413.08 and involved 68,763 separate sales. The sales to steam-
ships amounted to $33,895.95, a decrease of $21,413.53, as compared
with the previous year.
Native hardwood lumber operations were continued as during the
preceding year and 2,482 crossties were purcliased from local con-
tractors. No native logs were purchased during the year.
For the 12 months' operations, revenues exceeded expenditures by
$55,718.53.
FUEL OIL, DIESEL OIL, GASOLINE, AND KEROSENE
Fuel and Diesel oil.-All deliveries to and from the tanks, for private
companies as well as for the Panama Canal and the United States






REPORT OF GOVERNOR OF THE PANAMA CANAL 51

Navy, are handled through the pipe lines and pumping plants of the
Panama Canal. The total fuel and Diesel oil handled by the Balboa
and Mount Hope plants, including both receipts and issues, aggre-
gated 7,767,356 barrels. The operations are shown in more detail in
the following tabulation:

Balboa Mount Total

Barrels Barrels Barrels
Receiveil bv the Panama Canal--------------------------------- 180,766 13.1, 860 320,626
Usedi by i The Panama (':inal......................-------............. 188, 632 '.,316 256,948
PuiniiedJ for individuals and companies----------.--------------- 3,023,499 4,038,931 7,062,430
Sold t.y the Panruiiin Canal----.---------------------------------- 739 ('1. 752 99,491
Miscellaneous transfers--------------------------------------- i,310 17,552 27,862
Total receipts, deliveries, and transfers------------------ --- 3,411,946 4,355,410 1 7,767,356

The number of ships discharging or receiving fuel oil (including
Diesel oil) during the year totaled 1,457, of which number 47 were
Panama Canal craft.
Gasoline and kcrosene.-Bulk gasoline and kerosene received on the
Isthmus during the year totaled 3,174,911 and 431,650 gallons, respec-
tively.
Stori1e facilties..-A 421,000-gallon bulk storage tank for aviation
gasoline was erected at Mount Hope by the West India Oil Co. A
570,000-gallon bulk storage tank for gasoline, also at Mount Hope,
was erected by the Texas Oil Co. Pipe lines were extended to these
tanks, and further extensions were made to the piers to facilitate
bunkering operations. At the close of the year storage facilities
available were as follows:

Balboa Mount Total
Balboa Hope

Fuel and Diesel oil----------------- ---------.----------barrels.. 1,209,540 1,194,500 2,404,040
gasoline and kerosene....--------------------....................-----...-----gallons.. 4,807,000 2,263,000 7,070,000

Revenues exceeded expenses by $8,714.26 for the year.
OBSOLETE AND UNSERVICEABLE PROPERTY AND EQUIPMENT
During the year disposition was made of $366,040.19 worth of
obsolete or unserviceable property and equipment by sale, or by
destruction where the items had no money value. Replacement was
made in all cases where conditions warranted.
BUILDING CONSTRUCTION AND MAINTENANCE
The principal projects of building construction completed during
the year consisted of eleven 2-family, duplex-type houses, erected in
the quarantine area, Balboa; 3 official type houses, twelve 2-family,
duplex-type houses, and 11 cottages erected at Colon Beach; two 2-
family houses at Old Cristobal; 4 cottages erected in the DeLesseps





REPORT OF GOVERNOR OF THE PANAMA CANAL


area, Colon; 1 cottage, official type, erected at Balboa Heights; new
ward for male patients at Corozal Hospital; electrical shops at
Balboa; fire stations at Pedro Miguel and Gatun; new elementary
school for colored children at La Boca; storehouse for spare mitering
lock gates at Corozal; commissary building, Madden Dam; and a
garbage incinerator at Summit.
The principal projects under construction at the end of the fiscal
year were the high-school building at Cristobal and the nurses'
quarters at Colon Hospital.
TERMITES
Preventive measures which have been carried on for the past
several years to prevent the destruction of frame buildings by termites
were continued throughout the year. At a number of houses in the
Ancon-Balboa district where the wooden columns came in contact
with the ground, due to settlement or silting from heavy rains, the
posts were shortened and concrete footings were raised above the
ground and standard metal plates for termite protection were placed
between the wood and concrete.
It is apparent that the intensive efforts made during the past several
years to eliminate termites from wooden buildings is resulting in a
large reduction of the damage formerly done by them and a conse-
quent saving of repair expenses.
QUARTERS FOR EMPLOYEES
Gold employees.-Due to the completion of new houses authorized
last year, reduction in working force, retirement of employees, etc.,
at the end of the year, the number of quarters available fell only a
little short of meeting the demand. However, a large number of
families are quartered in old wooden houses where expenditures for
further maintenance is false economy. This is particularly true at
Gatun where no new gold family quarters have been built since 1906
and 1907. There are at this point 50 old family houses containing
142 apartments, and 5 bachelor houses containing 23 rooms, which
should be replaced as soon as possible. At Cristobal there are
approximately 100 family apartments, built in 1906 and 1907, which
should also be replaced for the reason stated above. A similar situa-
tion exists in Ancon and Balboa where approximately 375 family and
450 bachelor apartments need replacing, and in Pedro Miguel where
approximately 140 family and 60 bachelor apartments should be
replaced. All of these are of 1906 and 1907 construction.
At the close of the fiscal year there were 25 accepted applications
on file for family quarters in all districts, as compared with 44 for the
previous year, or a decrease of 19. These were distributed as follows:
Ancon-Balboa district, 23; Pedro Miguel, 1; Gatun, 1. All quarters
were maintained in as good condition as available funds would permit.





REPORT OF GOVERNOR OF THE PANAMA CANAL


A considerable number of old frame quarters buildings were disposed
of by sale, or demolished, to provide sites for new houses. During
the year 45 houses, providing 70 family apartments, were constructed
and occupied; in addition to these, 1 miscellaneous type silver
quarters building in the quarantine area, Balboa, was converted into a
2-apartment gold family quarters' building. Rentals collected
exceeded expenses of maintenance and reserves set aside for depre-
ciation by $447.15.
Silrer employees.-The demand for quarters from employees on the
silver roll is still far in excess of the supply. At the close of the fiscal
year there were 1,642 accepted applications for silver quarters on
file in all districts as follows: Ancon-Balboa, 92S; Pedro Miguel, 101;
Gatun, 33; and Cristobal, 580. Over 50 per cent of the force of silver
employees are required to live in the cities of Panama and Colon,
where rental rates are considerably higher than those charged by the
Panama Canal. The construction of additional quarters for these
employees should be authorized in order to enable them to live nearer
their work and to allow them the benefits of better housing and lower
rental rates prevailing in the Canal Zone.
MOTOR AND ANIMAL TRANSPORTATION
Motor and animal transportation for all departments and divisions
continued to be supplied by the transportation division under the
pool system. This division is charged with operation and maintenance
of all transportation equipment and is required to operate upon a
self-sustaining basis. With the completion of the hauling operations
in connection with the construction of Thatcher Highway a number
of large trucks and chauffeurs were rented to, and are being used by,
the Mladden Dam contractors in hauling materials from the railroad
siding to the dam site.
During the year 25 new cars and trucks were purchased and 21
were retired. There were on hand at the close of the year 330 cars
and trucks, 6 trailers, 12 motor cycles, 7 mowing machines and rakes,
and 18 mules. Revenues exceeded expenditures for the fiscal year
by $26,489.08, as compared with a loss of $1,983.48 for the previous
year.
PANAMA CANAL PRESS
The operations of the Panama Canal Press were continued under
the same policy as in previous years. This plant carries in stock and
manufactures such necessary stationery, forms, etc., as are required
on the Isthmus in connection with the operation of the Panama Canal
and the Panama Railroad. The manufacturing output for the current
year amounted to $150,731.54, as compared with $170,386.47 for
the previous year, or a decrease of $19,654.93. The excess of revenues
over expenditures was $6,710.46 for the year. The annual inventory






REPORT OF GOVERNOR OF THE PANAMA CANAL


value of i18teria.l on hand at the close of the year was $79,731.07, as
compared with $79,605.30 for the preceding year.
REVENUES DERIVED FROM THE RENTAL OF LANDS IN THE CANAL
ZONE
Rentals oni building sites and oil-tank sites in the Canal Zone totaled
$42,045.58 for the year, as compared with revenues of $50,420 in 1931.
Rentals on agricultural lands in the Canal Zone totaled $24,511.59,
as compared with $26,886.35 for the preceding year.
At the close of the fiscal year a total of 1,785 licenses were in effect
covering 4,30i1. hectares of agricultural land within the Canal Zone.
This is a reduction of 142 in the number of licenses as compared with
the close of the preceding fiscal year and a reduction in the area held
under license of 546% hectares.
PLANTATIONS
A.ll plantations continued to be operated under contract as in
previous yeaor..
EXPERIMENTAL GARDENS
Work in these gardens was continued along the same general lines
as in former years. Plant and seed exchanges were carried on with
experimental stations, botanical gardens, and individuals in different
parts of the world, and many valuable plants were disseminated
throughout the Canal Zone, the Republic of Panama, and the sur-
rounding countries. With water made available in all parts of the
gardens, several hundred new plants were placed in their permanent,
locations during the year.
Requests for vegetable seeds and information regarding vegetable
growing in this region become more numerous each year. It has been
the policy to inform people where seeds can be obtained and also
advise them as to what to plant, and when. Among the plants which
have become sufficiently established to attract special attention are
roses, grapes, suigarcane, and mangoes.
During the year the director of the experimental gardens made a
visit to Puerto Rico for the purpose of obtaining seeds and cuttings
of plants not now represented on the Isthmus. On the way, stops
were made at Colomibia, Venezuela, and Curacao, and some 128 new
fiaccessionrs cre brought back, with additional shipments to follow.

BUSINESS OPERATIONS UNDER THE PANAMA RAILROAD
Many of the business activities on the Isthmus connected with the
operation of the canal are conducted with funds of the Panama Rail-
roaid Co. Included in these are the wharves and piers at the harbor
terminals, the conmiinissary system, coaling plants, hotels, and various
minor activities, as well as the Panama Railroad itself. In this report






REPORT OF GOVERNOR OF THE PANAMA CANAL


only the major features of these operations are noted in their relation
to the canal administration as a whole. Details are given in the an-
nual 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 general manager of the railroad; the
telephone system under the electrical engineer of the Panama Canal;
renting of lands and buildings under the land agent; and the commis-
saries, Hotels Washington and Tivoli, plantations, dairy farms, and
cattle industry under the chief quartermaster of the Panama Canal.
Business operations on the Isthmus, carried on with Panama
Railroad funds, yielded a profit of $782,464.49 for the fiscal year, as
compared with $991,383.72 in 1931, a decrease of $208,919.23, or
21 per cent.
A summary of 1932 operations is given in the paragraphs following:

RECEIVING AND FORWARDING AGENCY
Harbor terminals.-The gross revenue from harbor terminal oper-
ations during the fiscal year amounted to $1,240,997.43; operating
expenses were $954,617.46, leaving a net revenue of $286,379.97,
as compared with $327,968.42 in 1931.
There were 1,301,370 tons of cargo stevedored, and transferred, as
compared with 1,501,302 tons in 1931, a decrease of 199,932 tons.
During the year 3,480 cargo ships and 1,020 banana schooners were
handled, as compared with 3,675 cargo ships and 1,204 banana
schooners in 1931. Agency service was furnished to 192 commercial
vessels, as compared with 266 last year.
Canal Zone for orders.-As an aid in the distribution of goods to
areas served by steamship lines using the Panama Canal or its ter-
minal ports, there was established in 1925, the arrangement known
as Canal Zone for orders. Under this system merchandise is shipped
to Canal Zone ports (CristobalorBalboa) to be held there in warehouses
of the Panama Railroad Co. for orders. 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 other than those entitled
to free-entry privileges, are released only upon the presentation of
satisfactory evidence of payment of the proper duty to the Republic
of Panama. Many different commodities were handled in this manner
during the year; the total cargo received under the arrangement was
14,001 tons. This was a decrease of about 37 per cent from the ton-
nage received during the previous year. The number of packages
increased approximately 10 per cent, but the total number of receipts
issued for cargo decreased approximately 6 per cent. The total busi-
142576-32- 5







REPORT OF GOVERNOR OF THE PANAMA CANAL


ness for the paist three years is summarized in the following table,
with the I1A92 activities also shown by each of the two terminal ports:
1932
1930 1931 ---------
Cristobal Balboa Total
Number of receipts issue----...... ...-.... ..- ..... 1,495 1,913 1,298 504 1,802
Nutimberof with Air Ia ils ..........................- 10,053 11,460 8,088 2,771 10,859
Packages received .. ------------ .----------------- 169,520 120,255 97,219 35,936 133.155
Packages withdrawn----------------------------- 156,366 121,583 101,231 37,189 138,420
Tons received---------- ----------------------- 38,136 24,200 9,963 4,038 14,001
*I, withdrawn... ----------------... --------------- 36,799 24,228 10,859 4,027 14,886

The revenue received for handling and storage amounted to $37,-
159.87, as compared with $60,368.68 last year.

COMMISSARY DIVISION

The operations of the commissary division were continued along
the same general lines as in previous years, the organization remaining
substantially the same.
Every effort was made to restrict sales in the commissaries to in-
dividuals and organizations regularly entitled to make purchases in
these stores. The majority of infractions were of a minor nature and
were promptly corrected.
The total gross receipts were $8,347,226.33, as compared with
$10,068,200.60 for the previous year. Monthly average sales dropped
from $839,016.78 in 1931 to $695,602.19 in 1932. Sales to commer-
cial vessels decreased more markedly than any other class of sales.
The total sales to steamships in the fiscal year 1932 amounted to
$745,010.96, a decrease of $548,343.71, or 42.4 per cent. All classes of
steamship trade contributed to this reduction; the Army and Panama
Railroad steamship business decreased by $2,853.15; sales to naval
vessels decreased by $218,002.71, or 43.8 per cent. Sales to commer-
cial steamships amounted to $458,943.30, or 41.8 per cent less than
the receipts for the preceding fiscal year. This was caused by re-
duced traffic, a general tendency toward reduced purchases, and lower
prices. The reduction of $218,002.71 in sales to naval vessels is
attributed to the fact that in previous years a large portion of the
Atlantic and Pacific Fleets visited the canal for some time in con-
nection with their annual maneuvers.
The reduction of $396,023.95 occurring in the wholesale trade is
attributed to lowered prices and also to the fact that the United States
Army on the Isthinus has not been making as extensive use of our
facilities as in previous years. Local retail sales declined 11.9 per
cent, aggregating $5,739,744.54 for the year.
The established policy of confining purchases to the United States
was continued so far as practicable; as mentioned in last year's report
due to the fact that nearly all of the silver employees are West Indian
negroes, it is necessary to stock various foreign products for which








REPORT OF GOVERNOR OF THE PANAMA CANAL 5Z


these people have a definite preference; and a great many foreign
vessels transiting the canal make purchases here, demanding certain
well known and widely advertised commodities of foreign manufac-
ture. To fail to stock the foreign manufactured goods to meet these
specific demands would result, in complaints and purchases elsewhere
rather than in creating an enlarged market. for substituted American-
made products.
The inventory value of merchandise on hand at the close of the fiscal
year was $1,865,000, as compared to $2,236,500 at the close of the
previous year. The ratio of sales to inventory indicates a theoretical
stock turnover every 2.68 months.
Sales.-The dist ribution of sales as compared with the two preceding
years was as follows:

1930 1931 1932

United States Government (Army and Navy)------..------ $1,435,118.26 $1,455,011.66 $1,069,871.40
The Paaan a Canal.---.-------------------------------- 811,113.30 701,334.95 626,585.66
Commercial ships-------------................----------.------.........----- 1,098,971.12 789, 365. 78 458, 943. 30
Panama R. R-------.-------------------------------- 373,686.30 299,818.15 236,825.73
Individuals and companies...----------------------------.................... 93,724.26 6S5,067.17 527, 791.93
Employees-.........---------...------------------------------........................... 6,820,568.75 6. 546,485. 93 5, 7. 104.96
Gross sales.............................. ...... 11,232. 182. 49 10, 477, 16.1. 64 8, 68,s, 122 S98
Less discounts, credits, etc........................ ..... 440,692.58 408,883.04 340,896.65
Revenue from sales------------.--------..-------- 10,791,489.91 10,068,200.60 8,347,226. 33
Supplies for expenses:
Retail commissaries and warehouses -------------------................... 49,123.67 47,912.84 41,796.53
General---...---------------------.....--....---------------................. 4,152.68 4,376.65 2,623.87
Plants...........-------------------------------------------.................................. 30,579.70 32,796.89 26,016.66
Total............................................ ..... 83,856.05 85,086.38 70,437.08
Lost by condemnation, pilferage, shrinkage, clerical errors,
etc...................................................... 249,754 72 215,794.35 135.304.27
G r:ai l rotal ......... . ................... ........ 11, 125,100.68 10, 369,0s1. 3.3 552, 967 Nt;


Purchases.-Purchases during the year aggregated $5,587,389.52, a
decrease of $1,686,427.22, or 23.2 per cent, as compared with the
preceding year. The following tabulation shows the value of the
various items purchased and the market from which purchased as
compared with the two preceding years:


Groceries........ .................... .............
Candies....... .. .. ...............................
Hardware...... .......................... ........
Dry goods.-----------......................................-
Shoes--------.- ------------- ------.--- ------..
Cold storage.. ...................................-------- --
Tobacco ......................... .. ...............
Cattle and hogs.................. ......... .............
N ilk andi cream .................... ......... ......
Eggs.. .............. .........-. ...... .....
Butter........... .......... ............ .....
Raw m aterial............ ....... .. ...................
Toys ..... ............... ... .................. .....
Stationery.......... .............. .. .. ... ...........
Dressed beef... ..................... ... ..... .............. .
T otal............... .. ............................
Place of purchase:
U united States..........................................
Europe and Orient....... .............................
Central and South A.merica.............................
Cattle industry............. ......................... .. ..
Panama Canal ..... ..................................
Local................... ... ......................
T otal.................................................


1930 1 1931


$1,690,265.72
68,363.08
494. 546. 27
1,378,259.34
379,506.00
1,764,695.41
440,278.68
601,400.36
170,243.06
318,811.26
166,747.96
508, 427.37
43,049. 0bO
...............
176.126.05
8,194,720.36


5,727,148.66
966,916.57
512,790.51
696,071.26
110,470.94
181,322.42
9, 194, 720 36


$1,548,080.12
67,331.34
535,034.71
1,096,416.14
299,364.78
1, M, 7T1..97
424.311.36
640,918.70
178,507.92
201,109.50
195,428.96
437,442.08
46,825.28
47,717.63
6. ,536 25
7,273,816.74


I I


5,171,322.77
777,966.58
259,255.91
750,313.47
90, 871. 64
224. 086.47
7. 273. x16. 74


1932

$1,305,899.68
52, A60 91
38-. 234.00
b41, 106 20
101,068. 02
1,21.1,421 68
327,685.92
261,507.06
164,719.51
166,926.42
160,252.79
427,159. 61
44, .42.78
47,2(-. 94

5, 587. 389. 52


4, 192. 222. 43
621,423 42
145, u5-. 99
391,. 50J.92
69.947. 45
167. 199. 81
.5.5A7,380. 52






58 REPORT OF GOVERNOR OF THE PANAMA CANAL

MAlanufacturing plants.-The output of the various manufacturing
plants and laundry had a total value of $1,763,026.43, as compared
with $2,317,052.72 for the preceding year, a reduction of $554,026.29.
The principal products of the major plants and their value are as
follows:
The output of the bakery included 5,131,580 loaves of bread,
1,717,399 rolls, and 438,222 pounds of soda crackers, together with
cakes, pies, doughnuts, etc., to the total value of $306,437.02.
The coffee-roasting plant turned out 247,792 pounds of coffee, 27,164
pounds of roasted peanuts, 24,433 pounds of corn and corn meal, and
1,169 pounds of roasted almonds, to the total value of $77,711.04.
The principal output of the ice-cream and milk-bottling plant con-
sisted of 844,908 quarts of milk, 51,832 gallons of ice cream, and 22,904
quarts of cream, with a combined value of $269,181.17.
The amount of ice manufactured during the year was 27,930 tons,
valued at $214,504.39.
The value of items manufactured in the industrial laboratory
totaled $233,957.80.
The abattoir, sausage factory, and pickling department turned out
3,082,651 pounds of dressed beef and various by-products to the total
value of $410,447.28.
The number of pieces of laundry handled was 6,789,634, and receipts
aggregated $250,787.67.
HOTELS AND RESTAURANTS
The Hotels Tivoli and Washington, at the two ends of the canal, are
operated as essential adjuncts to the canal for the purpose of providing
suitable accommodations to people having business with the canal,
foreign visitors, tourists, visiting Government officials, and others.
The cost of operating the Hotel Tivoli during the year was $196,360.97,
which was $61,571.39 more than the revenue derived. The operating
cost of the Hotel Washington during the year was $149,413.42, which
was $48,590.52 more than the revenue derived. Operating expenses
at both hotels included increases in unexpended reserves as follows:
Tivoli, $12,648.96; and Washington, $5,919.46.
The rest aurants and silver messes were operated under contract
during the year with the exception of messes for both gold and silver
employees in construction camps, etc., which were operated by the
Pananma Canal.
CATTLE INDUSTRY
Beef cattle.-During the year 4,634 head of fat steers were sold to
the commissary division, of which 4,528 were obtained under purchase
contract from a cattle dealer in Cuba, and the remainder of 106 head
were sent in from the cattle-industry pastures. A total of 132 beef
cattle were on hand as of June 30. 1932.






REPORT OF GOVERNOR OF THE PANAMA CANAL


Dairy farmni.-The total milk production at the Minmdi dairy
amounted to 203,007 gallons for the year as compared with 148,059
gallons in 1931, an increase of 54,948 gallons. No dairy stock was
purchased during the year, and a total of 675 head were on hand as
of June 30, 1932.
PANAMA RAILROAD CO. LANDS AND LEASES
At the close of the fiscal year 1,470 leases and 14 licenses were in
effect covering the use of Panama Railroad properties in the cities of
Panama and Colon. The income derived by the Panama Railroad
from these leases and licenses amounted to $329,085.20, representing
an increase in revenue over the previous year of $6,796.66.
The increase resulted from the issuance of 14 new licenses and from
increased rentals charged on some of the leases renewed.
TELEPHONES AND TELEGRAPHS
The gross revenue from the operation of telephones, electric clocks,
and electric printing telegraph machines amounted to $248,074.72,
and the total expenses were $198,013.33, leaving a net revenue of
$50,042.89, as compared with $46,194.71 for the preceding year, or an
increase of $3,848.18 for the year.
During the year 1,274 telephones were installed and 1,324 were
removed, making a net decrease of 50 telephones for the year. At the
end of the year the telephones on the system numbered 2,949 as
compared with 2,999 at the end of the previous year.
A total of 24 automatic printing telegraph typewriters were in use
at the end of the year; 12 in use by the Panama Canal, 4 by the
Panamanian Government, and 8 by commercial enterprises. Electric
clocks in service at the end of the year numbered 74, the same as for
the preceding year. Twenty-one Morse telegraph stations were con-
tinued in service throughout the year.
COAL
The sale of coal from the plants at Cristobal and Balboa totaled
65,463 tons during the year, as compared with 169,504 tons during
1931 and 282,569 tons during 1930. Purchases during the year
totaled 42,500 tons. The total revenue from the sale of coal and the
charges for extra handling during the fiscal year amounted to $477,-
219.85. The total cost of sales, including operating expenses, was
$637,152.08, resulting in a net loss of $159,932.23, as compared with
a net. loss of $139,016.36 for the preceding year.
The decrease in coal sales in 1932 as compared with 1931 was approx-
imately 62 per cent. The decrease in coal-burning ships transiting
the canal was approximately 35 per cent (from 1,008 such ships in
1931 to 660 in 1932). The relatively greater decrease in coal sales
was due primarily to the depreciated value of the English pound;






60 REPORT OF GOVERNOR OF THE PANAMA CANAL

vessels formerly coding at the canal find it profitable now to proceed
to Port Royal, Jamnica, for bunker coal. Secondarily, the decrease
is due to the fact that during this time of light cargoes some ships are
using cargo space to carry extra bunker coal, loaded at ports in Europe
and the United States where coal is cheap; this decreases the amount
of bunkers to be loaded while on the voyage.
During the year 11,500 tons of nut and slack coal were stocked at
Cristohal. Because of reduced price ($5.25 per ton trimmed in bunkers)
it proved very popular with ships equipped for burning this class of coal.
For coimmniercial vessels, the selling price of run-of-mine coal was
reduced on November 1, 1931, from $7.25 to $6.25 per ton at Cristobal
and from $10.25 to $9.25 at Balboa.
Due primarily to the fact that the Navy has withdrawn all of its
coal-burning vessels from these waters, and secondarily to the fact
that fleet maneuvers were held in Hawaii during the past year, no
transfers of coal to the Navy were made during the year.
In May, the barges 2Mantei and Darien were sold, leaving the collier
Achilles the only vessel remaining from the former fleet of two colliers
and two barges.
PANAMA RAILROAD

The gross revenues during the fiscal year 1932 from the operations
of the Panama Railroad proper (not including subsidiary business
activities) amounted to $1,433,719.13; the gross operating expenses
were $1,377,130.33; resulting in a net revenue of $56,588.80, as com-
pared with $157,052.19 last year, a decrease of $100,463.39 for the year.
Tonnage of revenue freight transported during the year aggregated
263,527 tons, as compared with 323,466 tons during 1931, a decrease
of 59,939 tons.
Statistics covering the various features of railroad operations during
the piast three years are presented in the following table:

1930 1931 1932
Average miles operated, Colon to Panama------------------ 47.61 47.61 47.61
1imrn.s operation revenue.-----------------------------......... $1,766,478.92 $1,685,607.81 $1,433,719.13
1-1perat irig exp' e- i ------- -----------------.-------..........._..... $1,464,123.19 $1,52. 655.62 $1,377,130.33
Not operating revenue--------------------------. ------ $302,355.73 $157,052.19 $56,588.80
eri crm ,f expe>ine to revenue------------------------------........... 82.88 90.68 96.04
Gross revenue per mile of road--------------------------............... $37,103.11 $35,404.49 $30,113.82
Operating expense per mile of road----.-------------------.......... $30,752.43 $32,105.77 $28,925.23
Net revernup per mile of road------------------ --------- --....... $6,350.68 $3,298.72 $1,188.59
Number of passengers carried: -
First class. --------------.---...............------------------------ 210,024 200,559 184,307
Second class -.--------------------------------------------............. 392,818 293,687 225,647
Total----------------------------------------- ---........... 602,842 494,246 409,954
Revenue per pj:.- iiptr-train mile .. .... .... ....... ... $4.89 $4.77 $4.57
l Verinue per freiglhtii-r.ni mile .......... .... ......... .$10.92 $11.18 $9.66
Ir til revenue IrIri riiinllnge.................. .. .... 205,770 196,651 193,667
Railroad reveni per r:iin-nikl .......... ....... ... ....... $8.68 $8.57 $7.40
IHailrunid oip r.tiirg expense per revenue tr:ii-n- il-........... $7.12 $7.77 $7.11
Net railroad revenue per revenue tr',in- ile ................ $1.47 $0.80 $0.29
]'reui'lil pau-'- fr 1nrl -. iti liii uunioui nr- m le'e'I ...... .... 338,401 323,501 307,539
W tirk-traii uni leice................... .. ........... .. 5,990 110,394 5,116
P wr i nger-lraiur iile gi ...................... ........... 114,668 111,718 111,592
1nf.rIt-irir'n i . ...l.............. .. 91,102 84,933 82,075
1 Overhaul of locks occurred in this year.





REPORT OF GOVERNOR OF THE PANAMA CANAL


PANAMA RAILROAD STEAMSHIP LINE
The gross operating revenue for the steamship line for the fiscal
year ended June 30, 1932, amounted to $1,231,241.59, and the gross
operating expenses amounted to $1,528,321.50, resulting in a net
deficit from operations of $297,079.91. The operating deficit coim-
pared with the net loss for the fiscal year ended June 30, 1931, of
$244,695.93, shows a decrease in the net, revenue of $52,383.98.
For the year ended June 30, 1932, the tonnage carried by the steam-
ship line amounted to 140,429 tons, as compared with 163,464 tons for
the previous year, a decrease of 23,035 tons.
The steamship line carried 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 $477,357.16. Had regular tariff rates been
received by the steamship line for such freight and passenger serv-
ices performed for the Panama Canal and other Government depart-
ments, its operations for the year would have resulted in a profit of
$180,277.25.











SECTION III


ADMINISTRATION
The organization of the Panama Canal on the Isthmus embraces
five principal departments, namely, operation and maintenance,
supply, accounting, executive, and health.
DEPARTMENTS
OPERATION AND MAINTENANCE
The department of operation and maintenance embraces functions
related to the actual use of the canal as a waterway, including the
dredged channel, locks, dams, and aids to navigation; and accessory
activities, such as shops and dry docks, vessel inspection, electrical
and water supply, sewer systems, roads and streets, hydrographic
observations, surveys and estimates, and miscellaneous construction,
other than the erection of buildings.
SUPPLY
The supply department is charged with the accumulation, storage,
and distribution of materials and supplies for the canal and Panama
Railroad; the operation of commissaries, hotels, cattle pastures, dairy
and experiment gardens; the maintenance and construction of
buildings; the assignment of quarters and care of grounds; and the sale
of provisions and other supplies, except coal and water, to ships. It
also operates corrals and motor transportation, manufacturing plants,
bakeries, ice plants, abattoirs, printing plant, and other related
activities.
ACCOUNTING
The accounting department is responsible for the correct recording
of financial transactions of the canal and railroad, the administrative
auditing of vouchers covering the receipt and disbursement of funds
preliminary to the final audit by the General Accounting Office, cost
keeping of the canal and railroad, the checking of time keeping, the
prepa ra tion of estimates for appropriations and the allotment of appro-
priations to the various departments and divisions, and the examin-
ation of claims. The collector and the paymaster are attached to the
accounting department.
EXECUTIVE
The executive department embraces the general office business of
the governor, adiiniiistrative activities invested by executive order






REPORT OF GOVERNOR OF THE PANAMA CANAL


within the authority of the executive secretary, and for purposes of
administration of material business needs only, the courts, marshal of
the Canal Zone, and office of the district attorney. Under this de-
partment come the administration of police and fire protection, postal
service, customs, shipping-commissioner work, estates, schools, general
correspondence, and records for the organization of the canal and the
Panama Railroad, personnel records, time keeping, wage adjustments,
statistics of navigation, information and publicity, relations with
Panama and the operation of clubs and playgrounds.
HEALTH
The health department is charged with all sanitary matters within
the Canal Zone and the cities of Panama and Colon, the operation of
the hospitals and dispensaries, the enforcement of quarantine regula-
tions, and the compilation of vital statistics in the Canal Zone and in
the cities of Panama and Colon.
PANAMA RAILROAD CO.
The operations of the Panama Railroad Co. on the Isthmus are
generally related closely to the work of the canal, and the railroad
organization is in effect a part of the canal organization. The
governor is president of the Panama Railroad; the heads of depart-
ments in the canal organization and of the railroad report to him.
The general administration of the composite organization is centered
in the executive office, and the accounting work in the accounting
department; the Panama Railroad and other divisions of the general
organization are billed for their proper share of the general over-
head work.
CHANGES IN ORGANIZATION AND PERSONNEL
The following changes in organization occurred during the fiscal
year:
The Madden Dam division, under the department of operation and
maintenance, was authorized November 1, 1931, with Mr. E. S.
Randolph as construction engineer in charge of the construction of
Madden Dam and appurtenant structures.
The Atlantic and Pacific Locks were consolidated under one super-
intendent as of June 30, 1932, and Mr. E. D. Stillwell, superintendent
of Gatun Locks, was appointed to the position.
The more important changes in supervisory personnel are listed in
the following paragraphs:
Mr. R. B. Walker was promoted from receiving and forwarding
agent to general manager, Panama Railroad Co., July 1, 1931.
Capt. William Ancrum, United States Navy, reported for duty as
marine superintendent, July 21, 1931, vice Admiral C. H. Woodward,
relieved from duty with the Panama Canal.






REPORT OF GOVERNOR OF THE- PANAMA CANAL


Mr. Sanimuiel W. Heald, superintendent Panama Railroad, was re-
tired on July 31, 1931.
Mr. C. T. Lindsay was appointed receiving and forwarding agent
August 1, 1931, vice Mr. R. B. Walker.
Dr. J. C. Ellington was appointed health officer, Cristobal, August 1,
1931, vice Dr. D. G. Sampson, who was retransferred to his former
position as district physician at Pedro Miguel.
Lieut. Col. W. L. Sheep, Medical Corps, United States Army, was
appointed assistant to the superintendent, Gorgas Hospital, August
25, 1931, vice Lieut. Col. J. W. Sherwood, Medical Corps, United
States Army, relieved from duty with the Panama Canal.
Lieut. Col. E. R. Gentry, Medical Corps, United States Army, was
appointed chief of medical clinic, Gorgas Hospital, October 26, 1931,
vice Maj. H. C. Dooling, Medical Corps, United States Army, relieved
from duty with the Panama Canal.
Maj. D. F. Winn, Medical Corps, United States Army, was ap-
pointed superintendent, Colon Hospital, effective January 1, 1932, vice
Maj. H. P. Makel, Medical Corps, United States Army, relieved from
duty with the Panama Canal.
Mr. F. B. Coyle was appointed supervisor of maintenance and
construction, electrical division, May 1, 1932, vice Mr. D. H. Moffat,
retired.
Lieut. Asa V. Watson, United States Navy, was appointed assist-
ant to the marine superintendent, June 18, 1932, vice Lieut.
Alfred J. Byrholdt, United States Navy, relieved from duty with the
Panama Canal.
Commander T. A. Symington, United States Navy, was appointed
captain of the port, Cristobal, June 21, 1932, vice Commander W. R.
Smithli, United States Navy, relieved from duty with the Panama
Canal.
Mr. W. R. Hollaway, superintendent Pacific Locks, was retired on
June 30, 1932, as was also Mr. C. L. Bleakley, supervisor of telephones.
FORCE EMPLOYED
The supervisory, technical, higher clerical, and highlily skilled
mechanical employees, consisting primarily of citizens of the United
States but including a few others, are employed on what is known
as the "gold roll;" the rest of the force, principally aliens but including
a few citizens of the United States, on low paid work, are designated
as "silver" employees. These terms are a heritage from the tropical
practice of paying Americans and Europeans in gold because of its
stability, while the native or tropical labor was paid in local currency,
hia-ed on silver.
Based on the last force reports in June of each year the gold force
decreased from 3,276 as of June 17, 1931 to 3,148 as of June 15,







REPORT OF GOVERNOR OF THE PANAMA CANAL 65


1932, a decrease of 128, or 3.91 per cent. The silver force decreased
from 10,624 to 9,120, a decrease of 1,504, or 14.16 per cent. The
combined force decreased from 13,900 to 12,268, a decrease of 1,632,
or 11.74 per cent. The force report shows all gold employees who
were in the service on the date of the report, including those on leave.
For silver employees the force report shows only those who were
working on the day covered by the report.

GOLD EMPLOYEES

The distribution of the gold personnel near the end of the last two
fiscal years is shown in the following tabulation:


Gold force
Department or division Decrease Increase Net de-
June 17, June 15, crease
1931 1932

Operation and maintenance:
O ffice.......... ................... . ...... 55 53 2 ......... .........
Electrical division--.--------------..------------- 170 156 14 ...--.-- .........
Municipal engineering division.................. 89 81 8 ------...-.-- --..------
Lock operation............................... ... 236 235 1 ------ ------ -
Dredging division..................... ... .. 194 173 21 -------- ------...-
Maidden Dam division.......................... 26 40 ---------- 14 --........
M mechanical division..................... . ... 475 446 29 ------.-. ----.....
Marine division .................... ........... 196 185 11 -------------
Forlification;................... ... . . 18 17 1 ................ 17 1


Total, operation and maintenance... ----------
SSupply departmnient-
Q uart.rnirm aster......................... .. ... ..
Comnnm iiss.iry division..--------------------------
Cattle industr -- -...--- .-.- -....- ..--- .......-.-
Hotel Tivoligo--.----.----------------------
H otel W ashington ........... ... ............. .
Traspsrat on--------- --------
Transportation.............. .
Total, supply department---------------------
Acconnting department......... ......... ... ..
Health deparnint ................ .
Executive department-------------..----...--------
Total, 3 departments--------------------------
Panama R. R.:
General manager..--------------...........----------.
Transportation-----------------------------
Receiving and forwardling apr nc.v.. ...........
C oaling station ................. .. .. . ....
Total. Panarmai R. .... ................------------


1,459 1,386 87 14 73

203 191 12 ----.. .--------.-
249 230 19 -----.-----------
2 2 .....-- ..........--......-
8 8 --.- -------- -... -------
9 7 2 --...- ----------
72 81 -------- 9 ---------
543 519 33 9 24
206 194 12 --.-..- --------
290 277 13 -- .----------
553 573 -----.- 20 ...
1,049 1,044 25 20 5

44 24 20 --------- .----
61 77 -------- 16 ---.---
78 73 5 --------- ------.
42 25 17..... ---.--..-..- -
225 199 42 16 26


Grand total--.....- .- ..-- ---------------. --- 3,276 3,148 187 59 128


INCREASES AND DECREASES IN FORCE

Increases occurred in 4 of the 22 units of the organization, decreases
in 16. The increase in the force of the Madden Dam division was
due to thlie beginning of work on the dam by the contractors and tlhe
consequent employment of personnel essential to the inspection and
supervision of the work. The increase in transportation personnel
was due to the employment of additional chauffeurs to furnish
transportation as requested to the contractors of the Madden Dam.
Increase in the executive department was caused by the ctablisliment





66 REPORT OF GOVERNOR OF THE PANAMA CANAL


i~ ~ "" 4i .; '-
o-~~1 'a t : S IS~i







REPORT OF GOVERNOR OF THE PANAMA CANAL 67

of a police station at Madden Dam and two new police posts in the
Balboa district; and the employment of additional teachers and
supervisory personnel for the schools. The increase shown in the
transportation division of the Panama Railroad Co. does not reflect
an actual increase in force but rather reflects a transfer of employees
from the general manager's section of the organization where, it is to
be noted a decrease in force of 20 employees is shown for the year.
Decreases were due to the completion of projects or to lessened
activities generally resulting from the decrease in traffic. The
indicated decrease in force is not mathematically proportionate to
the decrease in business; in lieu of reduction of force mniany employees
were furloughed at intervals, so as to afford part-time employment
to as many as practicable and distribute earnings, and in smaller
units of the organization no proportionate reduction is practicable.

RECRUITING AND TURNOVER OF FORCE

The following table shows additions to the gold force and separations
from it in the fiscal year from July 1, 1931, to June 30, 1932, inclusive.
Employments are classified as made in the United States or on the
Isthmus and separations are classified by cause. This table covers
a slightly different period from that between the force reports of
June 17, 1931, and June 15, 1932:


Opera-
tion and Execu- Supply Health Account- Panama t
main- tive ing R. R. Totals
tenance

Employed or reemployed in the
Unite Employed or reemployed on the
Isthmus.................... 58 32 23 15 2 29 150


Total additions..........
Resigned -..---..---..-.-......-.
Retired:
A ge.........................
Disahilty.................
Involuntary separation -....
D ied..... ... .. ...............
Reduction of force..............
Expiration of temporary em-
ployment...--..................
Discharged for cause............
Insane .----........----................
Failure to report hark from
leave.....-....................
Transferred to silver roll........


71 59 23 61 2 32 248
57 27 13 46 5 19 167
43 6 8 3 5 35 100
10 4 ---------- -------------------- 8 22
3 ----------.--------------------.---------- ... 4 7
8 2 1 1 4 3 19
20 ..---.--- 4 1 .......... 1 26
30 8 11 17 2 14 82
2 3 2 2 .-.....- 4 13
.......... .......... 1 ---------- .......... ------------....-------- 1
.......... I .--------------------.---------- 1 2
2----' -...--.......---..--......................-- 2


Total separations......... 175 51 40 70 16 89 441

I Retired for diMabilii Inrine.
The Panama Canal: Panama R. R.:
Separations............................... 352 Separations. .. -.... ... --. 89
Sep'arations 35--Seartin -------------------------- 89
Additions......... ..................... 216 Additions-----------..---.------....-- -----32
Net separatinns........................ 136 Net separations.--------.---.--.. -------- 57

The number of employees retired during the year under the pro-
visions of the Panama Canal retirement act numbered 129. Of these,






REPORT OF GOVERNOR OF THE PANAMA CANAL


22 were retired on account of disability, 7 were involuntarily separated
from their employment before reaching the normal retirement age
but after having rendered sufficient service to entitle them to annui-
ties, and the remaining were retired after reaching age 62 or beyond.
Of the 100 retired on account of age, 38 were retired on June 30 in
conformity with section 204 of the economy act.
The number of persons tendered employment through the Wash-
ington office of the Panama Canal, all above the grade of laborer,
was 89, of whom 58 accepted and were appointed, covering 24 different
kinds of positions.
Acceptances and appointments were 65.1 per cent of the tenders.
In the preceding year the tenders numbered 255, acceptance and
appointments 145, and the latter were 64.4 per cent of the tenders.
The number of persons added to the rolls on the Isthmus during
the fiscal year by employment or reemployment is reported by the
personnel bureau as 159. Including the 89 employment or reem-
ployments through the Washington office, the total additions were
248. The separations from the gold roll for the year totaled 441,
making a net decrease of 193. The difference between the net de-
crease shown above (193) and that in the tabulation showing a com-
parison of the number of gold employees by departments for the years
1931 and 1932 (128) is accounted for by numerous separations, due
to retirement, during the last 15 days of the fiscal year, and the fact
that the above figures (193) include United States citizens on the
silver roll while those in the tabulation referred to account only for
those employees actually carried on the gold. roll.
Based on a gold force of 3,292 at the beginning of the fiscal year,
as shown on the force report for July 1, 1931, the 441 separations
give a turnover rate of 13.4 per cent from all causes. For the fiscal
year 1931 the rate was 13.2 per cent.
When an additional employee is needed, efforts are made to fill
the position by promotion from the force already employed or by
transfer of an employee whose work in another department is about
to terminate. This not only reduces the expenses of recruiting new
employees but has the further value of strengthening the morale of
the force through giving the employees a reasonable expectation of
promotion and continued employment as long as their services are
s t i.fa ct ory, thus building up loyalty to the organization. Of the
248 gold employees employed during the past year, 86, or approxi-
mately 35 per cent, were reemployments; of these, 78 were reemployed
on the Isthmus and 8 in the United States.
At the i'ind of the year the applications on file from residents of
tci 1-t1111ims for employment on the gold roll numbered approximately
800.







REPORT OF GOVERNOR OF THE PANAMA CANAL


During the year arrangements were made for the transportation
of 2,846 persons from the United States to the Isthmus (2,601 from
New York, 132 from New Orleans, and 113 from Pacific coast ports).
These included new appointees and employees returning from leave
of absence and members of their families.

SILVER EMPLOYEES

The distribution of the silver personnel toward the close of the last
two fiscal years is shown in the following tabulation:


Department or division June 17, June 15, Decrease Increase Net de-
1931 1932 crease

Operation and maintenance:
Office------------------...---------------------- 49 41 8 -.-----.-.-
Electrical division..----------------------------- 205 186 19 ---...--------........
Municipal engineering division-----------------. 771 690 81 ---------- ----------
Lock operation.------------------------------ 682 682 ---...-.. ....-.-----...
Dredging division----------------------------- 931 910 21 ---. ----------
Madden Dam project-------------------------- 237 198 39 -------.-- ------
Mechanical division---------------------------- 908 764 144 -....-.. ---.....
Marine division------------------------------- 564 463 101 ---------..........
Fortifications---------------------------------- 56 95 ---------- 39 ---.....--
Total, operation and maintenance--------- 4,403 4,029 413 39 374
Supply department:
Quartermaster------------------------------ 1,650 1,285 365 --.......--..----..
Commissary division-------------------------1,305 1,246 59 ----- -------..-.--
Cattle industry-------------------------------- 89 97 ---------- 8 ---------
Hotel Tivoli---------------------------------- 103 92 11 ---------...... .
Hotel Washington------------------------------ 92 81 11 ---------- -------.
Transportation------------- ------- --- -------- 228 223 5 -- -. -- -...-- .
Total, supply department--------------------3,467 3,024 451 8 443
Accounting department---------------------------- 6 5 1 .----- -----.-----.
Health department------------------------------- 822 813 9 ------------------.-
Executive department----------------------------- 333 361 -------- 28 -.--------
Total, 3 departments------------------------1,161 1,179 10 28 1 18
Panama R. R.
General manager------------------------------ 235 51 184 ---------.. ---.......
Transportation.................................. 116 231 ---------- 115 -------
Receiving and forwarding agency................ 1,074 513 561 ---------- ---------
Coaling stations................................. 168 93 75 ----.--.-..
Total, Panama BR.R- .--.--- ---.---- 1,5693 888 820 115 705
Grand total....---------------------------- 10,624 9,120 1,694 190 1, 504

1 Increase.

Increases were shown in 4 of the 22 units of the organization, de-
creases in 17. The silver force, performing lower-paid work, is more
variable than the gold force of supervisory and other more highly
paid employment, and may fluctuate considerably according to the
work at hand. Increases in the executive department and in the
transportation division of the Panama Railroad were in step with
the changes in their gold forces, and in the fortifications division and
cattle industry because of expansion of activities.
No difficulty was experienced in maintaining the force and the
voluntary turnover was low. There was extensive unemployment
among this class of labor, more so than among the gold because in






REPORT OF GOVERNOR OF THE PANAMA CANAL


normal times the excess of alien labor is fairly well absorbed in
Panama, but not in the past year. As with the gold force, furlough-
ing was practiced in order to distribute employment.
WAGE ADJUSTMENTS
GOLD EMPLOYEES
The Panama Canal act provides that salaries or compensation fixed
thereunder by the President, or by his authority, "shall in no instance
exceed by more than 25 per cent the salary or compensation paid for
the same or similar services to persons employed by the Government
in continental United States." Concurrently with this limitation it
has been the policy to pay generally to United States citizens employed
on the gold roll the full 25 per cent above pay for similar work in the
United States, within the limitations of appropriations and subject
to the preservation of coordination within the organization.
In conformity with the President's announced policy of maintaining
the prevailing wage and salary schedules for governmental workers
throughout the period of the depression, salary and wage schedules
on the Isthmus remained practically unchanged throughout the year.
The exceptions to this were in the cases of railroad transportation
employees and building-trades employees, whose rates of pay were
based on rates paid by private industry rather than on governmental
rates of compensation.
For engineers, conductors, and certain other of the railroad trans-
portation employees, the United States Government has no class of
employees performing comparable work in continental United States;
consequently it has been the practice to base the rate of compensa-
tion of these employees in the canal service on rates paid similar
classes of employees on railroads in the United States. Due to the
general readjustment of rates of railroad employees in the United
States as of February 1, 1932, a corresponding 10 per cent reduction
in pay was made in the compensation of railroad employees on the
Isthmus.
Similarly, in the case of building-trades construction employees,
those whose rates of compensation were based on union rates of pay
of building-trades employees in the United States, had their rates
of pay revised downward in line with the decline in union rates of
pay in the United States, while the compensation of craftsmen and
mechanics whose rates of pay were based on rates prevailing for skilled
workers in the governmental navy yards remained stationary through-
out the year.
The wange board, consisting of the assistant engineer of maintenance
and a representative selected by the organizations of employees and
approved by the governor, held 14 meetings during the year.






REPORT OF GOVERNOR OF THE PANAMA CANAL


The salary board, composed of the heads of the nine major depart-
ments and divisions of the Panama Canal and Panama Railroad, held
two meetings during the year in connection with problems involved
in reduction of force and subsistence for employees on floating equip-
ment.
The complaints board, for the purpose of investigating and re-
porting on complaints of employees about working conditions and
administrative actions, etc., referred to it by the governor, held one
meeting during the year.
Following the receipt, of the Secretary of War's memorandum to
chiefs of bureaus and services, issued May 7, 1931, administrative
promotions of Panama Canal and Panama Railroad employees were
discontinued, and changes in former rates of pay were authorized
only when substantial changes in duty had occurred, and to postal
clerks and a few similar groups of employees whose rates of pay were
based directly on salary schedules established by Congress which
provided for promotions on a longevity basis.

SILVER EMPLOYEES

As in the case of rates of pay of gold employees, the compensation
of alien employees on the silver roll remained practically unchanged
throughout the year. The silver wage board held two meetings,
and the schedule was simplified without important changes in the
rates.
The average rates paid to alien employees as of October 1, 1931,
when the annual general survey was made, as compared with pre-
ceding years, were as follows:

Average rates Average rates

Monthly Hourly Monthly Hourly
employees eiipluo.'c- etnploiees employees
'permonitlhi I .er tioiir iper month) (per hour)

Nov. 1, 1923............... 5i 27 f0 2.312 Oct. 1, 1 N28-............... $5t, -14 $0.2'4%96
Nov. 1, 1924... ............. 4.74 .2-.323: Oct. 1, 1929............... 55 37 -12450
Nov. I, 1925.... .......... -. I* .23J 5 Oct. 1, 1930............... 57. 01 .2500
N ov. 1, h2 ......... ...... 4 (1 2.395 Oct. 1, 1931............... 57.46 .210-
Oct. 1. P127 .............. 4 '411

The average rate per month, combining the monthly rates with the
hourly rates on the basis of 208 hours of working time per month,
was $54.33 for a total of 10,391 positions. At the time of the pre-
ceding annual survey this average was $55.13 for 11,472 positions.
The average rates of pay shown above were ascertained by making
periodically a compilation and classification covering the rates of
pay of all alien employees in the service. The figures shown above
do not represent average earnings but represent the average rates
142576-32- 6






72 REPORT OF GOVERNOR OF THE PANAMA CANAL

of pay at which these employees are carried on our time rolls. Average
yearly earnings will fall somewhat below the annual equivalents of
the average monthly and hourly rates shown above, for the reason
that these employees do not receive any leave of absence with pay,
excepting sick leave, and, consequently, any absences from duty not
covered by a physician's certificate, are without pay.
Under Executive orders, the maximum rate of compensation
authorized for alien employees is $80 per month, or 40 cents per hour,
with the exception that authority has been granted to exceed these
maximum rates in the cases of not more than 112 alien employees
of the Panama Canal and Panama Railroad Co. The basic hourly
rate of compensation for common labor has remained at 20 cents
an hour since 1922, with subsequent provisos that 21 or 22 cents
may be used as the entrance rate.
Wages of alien employees of the Panama Canal and Panama Rail-
road Co. bear no definite relation to wages of corresponding classes
of employees in the United States. During the construction of the
canal, rates of pay equal to or slightly in excess of rates prevailing
for tropical labor throughout the Caribbean area were established
for these employees. Surveys of the wages prevailing for tropical
labor throughout the British West Indies and the countries of Central
America, as well as selling prices of certain selected staple commo-
dities, are made from time to time to secure a basis of comparison
with the pay and costs in the canal service.
As a further aid in maintaining an equitable scale of rates of pay
and maintaining the standard of living of these employees, a weighted
price index, reflecting price changes in the commissaries on more than
100 staple items in common use among these workers, has been car-
ried forward for a number of years. With 100 adopted as an index
figure reflecting commissary prices in 1914, the index figure rose to a
peak of 168.98 in 1921, but since has gradually declined until the 1932
index figure shows an increase in the cost of living over 1914 of 6.16
per cent.
SUPERANNUATED ALIEN EMPLOYEES
Since June 1, 1928, 11 employees of the Panama Railroad Co., no
longer able to perform useful service in any capacity, have been given
lump-sum payments ranging from $25 to $500 and repatriated to
their former homes in the West Indies. During the same period of
time, 72 idditionnl employees, likewise incapacitated to an extent
whereby they were no longer able to perform any class of useful
service, were granted pensions ranging from $7 to $25 per month.
Contacts have not been inuaintained with the 11 employees to whom
lump-sum payments were made, and, consequently, it is not known
how many of these still survive. Of the 72 retired on pensions, 15
had died up to the end of the fiscal year 1932; one annuity was can-






REPORT OF GOVERNOR OF THE PANAMA CANAL


celed, leaving 56 annuitants receiving small pensions as of June 30,
1932. The average payment being made to these 56 annuitants at
the close of the year was $15.22 per month.
The foregoing applies only to superannuated alien employees of the
Panama Railroad Co. No provision now exists for the payment of
pensions to superannuated alien employees of the Panama Canal and,
consequently, a very serious situation is developing wherein either the
pay rolls soon will be burdened with payments made to employees
who have passed their usefulness but who are being retained on the
rolls because they have no other means of support, or else these old
employees, many of whom have faithfully served the Government
practically since the beginning of the American occupation of the
Canal Zone, in 1904, must be set adrift, without any means of suste-
nance. The obligation of the United States Government to these
employees is the greater because of the fact that it brought some of
them from their former homes in the West Indies in their early man-
hood, and now after they have devoted practically the entire working
period of their lives to the United States Government, it can not with
equity shift the burden of their cure during the few remaining years
of their lives, either to the Government of Panama or to the island
governments of the West Indies.
To assist somewhat in meeting this problem, a refuge for superan-
nuated alien employees has been provided in connection with the in-
sane asylum at Corozal, but few of the employees are willing to accept
domiciliary care there, and in any event the facilities available do not
allow taking care of any considerable number of these employees,
some of whom have one or more dependents. Moreover, the per
capital cost of institutional care thus furnished exceeds the amount it
would cost to provide a small annuity and permit the employee to
live his normal life among people of his own race.
The need for legislation which will enable the payment of small
annuities to these superannuated employees is further stressed under
"administrative problems" on page 82 of this report. It is one of
the matters which the Bureau of Efficiency has been requested to
investigate.
PUBLIC AMUSEMENTS AND RECREATION
As private industry is not permitted within the Canal Zone, there
are practically no recreational facilities except those provided by the
Government. Consequently, in a large measure, all community
activities in the canal villages center around the clubhouses, which
are operated by the bureau of clubs and playgrounds, and are open
from 7 a. m. to 11 p. m. daily, Sundays and holidays included.
The customary clubhouse contains a motion-picture hall, a soda
fountain where soft drinks, ice cream, and light food may be pro-






REPORT OF GOVERNOR OF THE PANAMA CANAL


cured, canndy and cigar counters, billiard and pool tables, bowling
alleys, reading room, news stand, barber shops, etc. Swimming
pools, baseball parks, tennis courts, playgrounds, and other outdoor
recreational facilities are operated under the supervision of clubhouse
personnel. Kindergarten work and supervised games and play are
carried on for children from 4 to 6 years of age.
The clubhouse and playground system was continued in operation
without change of policy. Two new clubhouses were opened at Mad-
den Dam, one for gold employees and one for silver employees, making
a total of 14 clubhouses and 2 clubrooms in operation at the close of
the year, besides a boat club maintained on the Pacific side of the
Isthmus.
The clubhouse and playground facilities operated by the canal are
also widely used by the Army and Navy personnel stationed on the
Isthmus, and during the visits of Navy vessels, particularly at times
of fleet concentration at the canal, the recreational facilities at the
terminal towns are inadequate to meet the demands made upon
them.
Activities of the clubhouses, swimming pools, playgrounds, etc.,
are supported in part by appropriations, but chiefly by the revenues
collected from patrons in the form of charges for the various activities
sponsored. For the year, gross receipts aggregated $523,124.
Some of the 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 appreciably to the morale of the organization and to the physical
and moral health of the community.
New clubhouse buildings are needed at Ancon, Balboa, La Boca,
and Cristobal, as the present buildings are not only too small to
provide the facilities needed, but they are so badly infested with
termites that it is false economy to spend further funds in order to
keep them in usable condition.
ADMINISTRATIVE PROBLEMS
One of the major duties of the governor and his assistants is plan-
ning improvements, both in present administration and facilities and
in provision for future needs. Brief discussion on some of the more
important matters affecting operations are presented herewith.

LEGISLATIVE RECOMMENDATIONS

In addition to appropriations for developments and replacements,
the need of which is explained on the following pages, it is desirable
to have specific legislation providing in substance as follows:
Pensioning alien employees.-That the Governor of the Panama Canal, under
such regulations as may be prescribed by the President of the United States,






REPORT OF GOVERNOR OF THE PANAMA CANAL


may pay cash relief to such alien employees of the Panama Canal as may become
unfit for further useful service by reason of mental or physical disability resulting
from age or disease not the result of their vicious habits: Provided, That such cash
relief shall not exceed $1 per month for each year of service of the employee so
furnished relief, with maximum of $25 per month, nor be granted to any employee
having less than 10 years' service with the Panama Canal, including any service
with the Panama Railroad Co. on the Isthmus of Panama.
That there be appropriated annually such sums as may be necessary to carry
out the provisions of this act.
Tolls.-That the sentence of section 5 of the Panama Canal act, as amended,
which reads, "If the tolls shall not be based upon net registered tonnage, they
shall not exceed the equivalent of $1.25 per net registered ton, as nearly as the
same may be determined, nor be less than the equivalent of 75 cents per net
registered ton," is amended to read as follows: "If the tolls are not based upon
net registered tonnage, they shall not exceed the equivalent, as nearly as may be
determined, of $1 per net ton (determined in accordance with the Rules for the
Measurement of Vessels for the Panama Canal, prescribed by proclamation by
the President, November 21, 1913, as amended from time to time), nor be less
than the equivalent, as nearly as may be determined (a) of 75 cents per net ton
(determined in accordance with such rules, as amended from time to time) in
the case of vessels not in ballast, or (b) of 60 cents per net ton (determined in
accordance with such rules, as amended from time to time) in the case of vessels
in ballast.
That this act shall take effect on the first day of the eighth month following the
month in which it is enacted.
Comment on the need of legislation for the pensioning of alien
employees is presented under the heading of "Retirement and super-
annuation," and on that with respect to the levy of tolls under the
heading of "Basis of levy of tolls," on later pages of this section.
Construction needs are discussed in the pages immediately following,
beginning with "General program."

GENERAL PROGRAM

In anticipation of future needs the canal administration in 1931
prepared a program of work to be carried on during the next 10 to
15 years, perhaps later. For the more pressing needs a 5-year pro-
gram was developed, requiring a total of $15,000,000 to carry out.
This was exclusive of the Madden Dam construction. The decrease
in national revenues resulting from the general business depression
led to some deviation from the original plan for the purpose of
diminishing appropriations. Accordingly, estimates under this plan
submitted for the fiscal year 1933 called for appropriations totaling
approximately $2,536,000. This was reduced further by the Bureau
of the Budget and by Congress to the extent that only $1,055,000 was
actually appropriated for this work during the fiscal year 1933. This
lack of appropriations will not only extend the time feature of the
program, but. will tend to increase the cost of such work since a large
proportion of the funds requested were for the replacement of old






REPORT OF GOVERNOR OF THE PANAMA CANAL


wooden buildings on which it will be necessary to expend otherwise
unwarranted sums for upkeep and maintenance until such time as
funds are available for replacing them.

WORK IN FISCAL YEAR 1932

In line with the general program for replacements and betterments,
the appropriations for the fiscal year 1932 included $500,000 for the
completion of the Thatcher Highway and Ferry; $825,000 for a high
school building at Cristobal; $125,000 for a colored elementary school
at La Boca; $100,000 for construction of nurses' quarters and altera-
tions, Colon Hospital; $35,000 for new fire stations at Pedro Miguel
and Gatun; and $83,350 for buildings and improvements at the
locks; the total being $1,668,350 which does not include the sum of
$1,000,000 appropriated for the Madden Dam project. The work
for which these appropriations were made was largely accomplished,
but some of this construction was carried over into the fiscal year
1933. In addition, the sum of $400,000 was expended from the
Panama Railroad Co.'s funds for quarters.

WORK IN FISCAL YEAR 1933

Appropriations made for the fiscal year 1933, exclusive of the
$1,000,000 appropriated for continuation of work on the Madden
Dam, include: $250,000 for the replacement of old frame quarters
for gold employees; $400,000 for enlarging the present dry dock at
Cristobal; $50,000 for the construction of a home for superannuated
alien employees at Corozal; $66,000 for beginning Corundu fill;
$25,000 for new roads in Corozal Cemetery; $80,000 for widening
Balboa and La Boca roads from the Canal Zone-Panama boundary
to the Eaist Ferry Landing, Thatcher Highway, La Boca; and $184,000
for grading of building sites.

EXPLANATION OF IMMEDIATE NEEDS
The 5-yeair aind 15-year programs have been explained in some
detail in special reports to the Secretary of War, the Director of the
Bureau of thlie Budget, and members of the Appropriations Commit-
tees of Congress. It is not practicable to repeat these details within
the limits of the annual report, but the following are essential facts
with regard to major projects:
Concrete irhairf at CrUiJai Dry Dock.-This is to be a mooring and
repaiir wliiarf at the entrance to the dry dock and adjoining the shops
and will replace the present wooden wharf, which has so deteriorated
with the rot of age and the ravage.; of borers as to be unfit for further
ii-e. It is planned to make the concrete wharf 40 feet wide by 800
feet long at an estimated total cost of $617,000. The item of $350,000

























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REPORT OF GOVERNOR OF THE PANAMA CANAL


for 1934 is for building approximately half of it, the part next the dry
dock entrance.
Bolitar Highway.-This highway extends between Cristobal and
Gatun and is built in considerable part on clay fills through a swampy
area. Its concrete surface slab does not find even support on these
fills, which are saturated in the rainy season and shrink in the dry
season, with the result that the slab is being constantly broken by
the heavy truck traffic from Fort Davis. It is proposed to reconstruct
it by laying a new concrete slab over the old one as a base, and 2,800
of the 35,500 linear feet have been so reconstructed from maintenance
allotments. The total estimated cost for reconstruction of the 6%
miles is $250,000 and the $100,000 in 1934 is to cover approximately
15,000 linear feet. Reconstruction will take the place of contin-
uous maintenance outlay.
Building sites.-Grading sites and laying water and sewer lines and
paving streets are necessary preliminaries to the erection of quarters.
Such work to be done in 1934 is principally on Colon Beach and at a
new town site at Gatun, where new quarters are to be constructed
in place of old buildings. The preliminary work at Colon Beach is
to cost about $50,000, that at Gatun approximately $100,000.
Corundu fill.-This work is a continuation of a project under way.
With the building of Albrook Field, the Gaillard Highway has been
relocated in the section from Ancon-Panama to Diablo crossing,
skirting the field to the south and west and roughly paralleling the
Panama Railroad. The area between Albrook Field and the railroad,
along the new highway, is being developed for use in its eastern part
as an industrial area, where will be the motor-car repair shops and
garage, the district quartermaster's shops, the constructing quarter-
master's shops, and the municipal division shops and storage; and in
the western part as a recreational area, to be occupied by a stadium,
ball grounds, etc. This composite reclamation is known as the
Corundu project. The removal of shops to the industrial area will
give them better facilities, will center related work, and will allow
clearing away obsolete and uneconomical buildings. The space thus
freed can be used for quarters or other purposes. Establishment of
the recreational grounds in the western or Balboa part will liberate
space needed for the schools. The constructing quartermniaster's
shops have been relocated, but the remainder of the work is yet to be
done.
Balboa High School amid Junior College.-The present Balboa School
main building (for white children) was constructed in 1917, when the
enrollment. was 528. No permanent additions have been built since
that time, although the enrollment has increased to 1,537 in 1932,
and the normal growth will be increased by about 125 to 150 pupils
upon the completion of the Albrook Field project. At present, only






REPORT OF GOVERNOR OF THE PANAMA CANAL


28 of the 49 teachers at Balboa are housed in the main building; the
21 others are in six separate wooden buildings converted for school
use. All of the more than 800 high-school pupils are crowded into
the main building, and no satisfactory accommodations are available
for science laboratories, library, manual training shops, and household
arts rooms. The situation is one of crowding and of inadequate
equipment. As a remedy it is proposed to construct a new building
at a cost of approximately $1,250,000 to house the high school and,
with some expansion, to serve also as a junior college. Moving the
high school from its present building will release the latter for use of the
elementary schools following alterations estimated to cost $70,000.
This will make it practicable to assemble there the classes now scat-
tered in temporary wooden buildings and will make for much more
effective school work in addition to releasing those temporary wooden
buildings for other uses. The item of $625,000 in the 1934 estimates
is one-half of the total cost.
Paraiso Road.-Completion of this road involves the rebuilding of
a section of the Gaillard Highway between the outskirts of Paraiso
and the junction with the Madden Road, a distance of about 1% miles.
The present road is narrow and has sharp curves, having been built
before the development of automobile traffic.
It is proposed to replace this with an 18-foot concrete road, thus
providing continuous concrete from Balboa to Madden Dam. This
stretch of about 23 miles will be available as part of a highway across
the Isthmus if a connecting road is built between Alhajuela and the
Atlantic coast.
Quarters for American employees.-These are essentially replace-
ments of deteriorated structures which it is uneconomical to maintain.
Following the close of the construction period, no appropriations
were secured until the fiscal year 1927 when $384,278 was allotted;
in 1928 the appropriation was $499,943; in 1929 and 1930 it was
$400,000 each year. For 1931 and 1932 no appropriation was made;
instead, it was suggested that expenditures for this purpose be made
from the surplus and reserve funds of the Panama Railroad Co. and,
accordingly, $400,000 was so withdrawn and expended for gold
quarters in each of the two years. For 1933, $250,000 has been
appropriated by Congress. The long period without any new build-
ing has made it necessary to do extensive building now as a matter
of replacement. The program adopted calls for $500,000 for gold
quarters each year and $600,000 or $700,000 would be better. At
$500,000 per year it will take about 24 years to replace the present
Oil quarters. Due to the severe conditions of the Tropics, the canal
will have practically a continuous program of replacement of wooden
buildings. A type of building using concrete for a basement and
supporting pillars, and high-grade lumber for the superstructure has






REPORT OF GOVERNOR OF THE PANAMA CANAL


been found to be the best adjustment between initial cost and
endurance.
Widening of roads.-Owing to present traffic this is essential to
safety because these roads were originally laid out in the days of
horse-drawn vehicles. There are many places at which they need
to be widened, especially on curves and. at intersections. Included
within road improvements is a crossover from the Ancon-Balboa
road system to the relocated Gaillard Highway near Albrook Field,
in order to allow vehicles to move to or from the highway by a direct
route and relieve other roads of congestion. The proposed paving
of streets in Silver City is similarly to relieve traffic congestion by
opening a new route.
Police stations, Ancon, Gatun, and Pedro Miguel.-The present
buildings were originally erected in 1906 and 1907, and are badly
deteriorated and infested with termites. Continued maintenance is
expensive and it is proposed to replace these structures with permanent
buildings of concrete.
Quarters for patients at Palo Seco.-In this colony, where patients
remain for a long time, there are 108 patients, and the number is
increasing slowly. The necessity of segregating sexes reduces capacity
of buildings and in many cases there are three patients in a room,
which is overcrowding. It is proposed to expend $10,000 on a
2-story, 24-room building to house 24 patients. These patients are
lepers.
Storage space for spare lock mniechanisnms.-This is needed, in addition
to present storerooms, to care for additional expensive equipment
which has been placed in use since the removal of gates as a part of
overhaul has been instituted, and for the rotating stock of 36 rising
stem valves, units of which are required and conditioned after each
overhaul and held for replacing an equal number at the next overhaul.
Library building at Balboa Heights.-The Panama Canal Library
now occupies the ground floor of the right wing of the administration
building exclusive of the ell. This space is needed for administrative
offices, and is also inadequate for the library, which is much crowded
and is without storage room for books or documents used infrequently.
It is proposed to erect a separate library building on the slope opposite
the south wing of the administration building, convenient for the
community and readily available for reference in official work. The
cost of the building is estimated at $180,000.
UNEMPLOYMENT
Exclusive of the work on Madden Dam, being done under contract,
the tentative estimates for appropriations for 1934 include $2,466,000
for construction projects. These improvements are needed and have
been urged in previous years but the appropriations have been






REPORT OF GOVERNOR OF THE PANAMA CANAL


deferred for reasons of economy. There is still the need of economy,
but the need of the improvements grows more acute with each year,
due either to deterioration of present facilities or their insufficiency
to meet growing needs. With lowered commodity prices and wages,
the present is a good time to do necessary building, and such work
would be doubly useful now as a relief in part of the unemployment
which has blighted the Isthmus.
The Canal Zone and the adjoining cities of Panama and Colon, in
Panama, face a condition of permanent unemployment. The con-
struction of the canal occasioned the coming of thousands of West
Indians as well as numerous Europeans and orientals. Upon the
completion of the construction work the United States offered
repatriation to all discharged employees, or former employees.
Slany did not accept repatriation, and many who went home returned
later to the Isthmus. For a time, increased business in Panama
absorbed many of them. This has now slumped sharply, throwing
many out of work. In the meantime, the extension of highways from
the capital to the interior has resulted in a movement from the country
to the city, rather than from the city to the land. A further factor
has been the natural growth of population in a prolific people without
control and without the offsetting losses from disease which occurred
prior to the American era of sanitation. Similarly, but to less extent
numerically, the American population in the Canal Zone has in-
creased, and many young men and women of canal families are
approaching maturity without employment. The search for work is
sharp and there is increasing competition between Americans and
aliens for work which may be performed almost equally well by
either.
This situation has become acute with the general slump in business,
the falling off in canal traffic and related activities and the diminished
appropriations for new construction and replacements. It is not
practicable to care for any number of these people by allowing them
to settle on land in the Canal Zone; many could not make a living in
the jingle and the increases of malarial infection which have resulted
in the canal towns from the presence of settlers on the land have
led to the decision to license no more settlers. The most obvious
form of relief is a in increase in public works.
The Government of the United States has made appropriations for
public works, to assist business, and for loans for direct relief in the
United States. Some of the revenues thus appropriated come from
the Panaina Canal, which regularly turns into the Treasury an excess
over expenditures. It would appear that the same principle of relief
might well be extended to the Canal Zone. So far, private relief
agencies, within some help from hospitals of the Canal Zone and
Panama, have been able to take care of the most needy cases, but this






REPORT OF GOVERNOR OF THE PANAMA CANAL


situation will become worse unless there is some development of work
and business. It is no doubt a familiar problem in the United States.
In the Canal Zone the major hope is for the sensible allowance of
appropriations for certain necessary public works. These works can
be constructed economically now and will enter into immediate
utility, as pointed out under "Explanation of immediate needs";
and their performance now would tend to ameliorate a situation of
acute need among the population.
RETIREMENT AND SUPERANNUATION
American employees.-The Denisonri Act of March 2,1931, providing
for the retirement of employees of the Panama Canal and the Panama
Railroad Co. on the Isthmus of Panama, who are citizens of the
United States, became effective July 1, 1931, the beginning of the
fiscal year, and superseded for these employees the provisions of the
national retirement law of May 22, 1920, as amended, and of the
pension plan of the Panama Railroad Co. The canal retirement law
requires pay-roll deduction of 5 per cent of the employees' pay;
automatic retirement at age 62 after at least 15 years of service on
the Isthmus; optional retirement at 60 years after at least 30 years
of service; and voluntary retirement on a reduced annuity at age 55,
after at least 25 years of service, with a provision for voluntary retire-
ment at age 55 without reduction of annuity for those employees who
have rendered at least 30 years of service of which not less than three
years were between May 4, 1904, and April 1, 1914. The law in-
cludes also provisions for disability and for involuntary separation
from the service after certain ages. The annuities payable are based
upon length of service, the annuity purchasable by the sum of the
employee's payments into the retirement fund, and the amount of
service rendered during the construction period, between May 4, 1904,
and April 1, 1914; in general, other than for the employees with con-
struction service they may be said to be about 25 to 30 per cent
higher than the annuities under the national law of May 22, 1920, as
amended. Salary deductions under the canal retirement law are
approximately 43 per cent higher than under the general law.
During the year three bills to amend the Panama Canal retirement
law were introduced in the Senate. The first provided that in the
case of the deathli of a married man entitled to the benefits of the act
his widow shall receive until her deathli or remarriage an annuity equal
to three-fourths of that to which the deceased was entitled. The
second provided tlihat employees to whom the act applies who have
rendered at least 30 years' service, computed as provided in section 7
of the act., shall be eligible for retirement; i. e., retirement may be
made on 30 years of service, without regard to age. Thie third
provided for giving the same credit for civil service, elsewhere in the




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