• TABLE OF CONTENTS
HIDE
 Front Cover
 Front Matter
 Frontispiece
 Title Page
 Table of Contents
 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/UF00097365/00018
 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: 1933
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: VID00018
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
    Summary
        Page 1
        Page 2
        Page 3
    Section I: Canal operation and trade via Panama
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
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        Page 36
        Page 37
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        Page 39
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        Page 44
        Page 45
        Page 46
        Page 47
        Page 48
        Page 49
        Page 50
    Section II: Business operations
        Page 51
        Page 52
        Page 53
        Page 54
        Page 55
        Page 56
        Page 57
        Page 58
        Page 59
        Page 60
        Page 61
        Page 62
        Page 63
        Page 64
        Page 65
        Page 66
        Page 67
        Page 68
    Section III: Administration
        Page 69
        Page 70
        Page 71
        Page 72
        Page 73
        Page 74
        Page 75
        Page 76
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        Page 87
        Page 88
        Page 89
        Page 90
        Page 91
        Page 92
        Page 93
    Section IV: Government
        Page 94
        Page 95
        Page 96
        Page 97
        Page 98
        Page 99
        Page 100
        Page 101
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        Page 113
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        Page 115
        Page 116
        Page 117
        Page 118
        Page 119
    Section V: Financial and statistical statements
        Page 120
        Page 121
        Page 122
        Page 123
        Page 124
        Page 125
        Page 126
        Page 127
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    Back Cover
        Page 153
        Page 154
Full Text











UNIVERSITY
OF FLORIDA
LIBRARY












































Digitized by the Internet Archive
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ANNUAL REPORT

OF THE


GOVERNOR OF


THE PANAMA CANAL

FOR THE


FISCAL
ENDED


YEAR
JUNE 30


1933


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1933


For sale by the Superintendent of Documents, Washington, D.C. - - - - Price 15 cents


___















TABLE OF CONTENTS

Page
Summary ------- ---------------------------------------------- 1
Operation and maintenance of the Canal- -- ---------------------- 2
Buisiniess 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 1933 ---------------------------------------------------- 4
Traffic by months------ ------------------------------------ 6
Proportion of tanker traffic------------------------------------- 7
Number and daily average transits of tankers and general carriers- 7
Proportions of tanker tonnage and general net tonnage -------- 8
Proportions of tolls from tank ships and from all other vessels- 8
Tanker cagoes------------------------------------------------ 8
Nationality of vessels------------------------------------------ 8
Tons of cargo carried-------------------------------------- 9
Commercial traffic through the Panama Canal, by nationality of
vessels------------------------------------------------ 9
Net tonnage of vessels----------------------------------------- 10
Number of transits in net tonnage groups ------------------- 11
Frequiency of transit of vessels------------------------------------- 11
Vessels entitled to free transit and launches of less than 20 tons net
measurement-----------------------.--------------------- 13
Trade routes and cargo-------------------------------------- 13
Cargo shipments through the Panama Canal during the past 4
fiscal years, segregated by principal trade routes ------------ 14
Principal comnmodities---------------------------------------- 15
Co mmod it v movement:
Atlantic to Pacific---------------------------.-------- 15
Pacific to Atlantic------------------------------------- 16
Classification of vessels--------------------------------------- 16
Laden and ballast traffic ---------------------------------- 17
Average tonnage, tolls, and tons of cargo per cargo-carrying vessel------ 19
Summary of passenger movement at the Canal during 1933 ------------- 19
Dual measurement system ---------------------------------------- 21
Hours of operation ------------------------------------------------ 25
Operating hours for complete transit---------------------------- 25
Limits for starting on partial transits -- -------------------------- 25
Lockages and lock maintenance------------------------------------ 26
Emergency dam operation-------------------------------------- 28
Pacific Locks overhaul----------------------------------------- 28
Power for Canal operation.. --------------------------------------- 29
m






IV TABLE OF CONTENTS

Page
Water supply. -------------------------------------.____-------...... 30
Dry season-----------------------------------------.. -------... 31
Madden Dam project------------- ------------------------------_________ 32
Force employed-----------------------------------------.---....... 32
Excavation----------------------------------------------- _____. 33
Grouting foundations---------------------------------------- 34
River control during construction -------------------------------______ 34
Concrete work----------_ --------------------------- --------35'
Aggregate plants-.------------------------------------------_ 36
Electrical and mechanical work _-------------------------------- ..._______ 36
Saddle dams, borrow pits, quarries, and roads -- ------------------ 37
Quarries -----------------------------------------------___ 38
Roads--------------------------------------------- __.-___ 38
Clay blanket----------------------------... --------------- 39
Ridge tightening---------------------------------------------- 39
Clearing in reservoir------------------------------------------- 39
Materials and supplies---------------------------------------- 41
Earnings, deductions, and payments----------------------------- 41
Maintenance of channel and improvement projects-------------------- 41
Canal improvement work ------------------------------------- 43
Projectno. 1--------------------------------------------- 43
Project no. 3--------------------------------------------- 43
Project no. 4--------------------------------------------- 43
Project no. 5 (revised) ------------------------------------ 43
Project no. 6--------------------------------------------- 44
Project no. 9--------------------------------------------- 44
Auxiliary dredging -------------------------------------------- 44
Slides---------------------------------------------------------- 44
Land reclamation, west of Pacific entrance -------------------------- 46
Subsidiary dredging activities ---------------------------------- .-- 46
Equipment ------------------------------------------------------ 47
Aids to navigation-- --------------------------------------------- 47
Accidents to shipping-.------------------------------------------ 48
Salvage operations----------_-------------------------------- 49
Meteorology, hydrology, seismology --------------------------------- 49
Precipitation ------------------------------------------------ 49
Airtemperatures---------------------------------------------- 49
Winds and humidity ------------------------------------------- 49
Tides-------------------------------------------------------- 50
Seismology--------------------------------------------------- 50
Rules and regulations--------------------------------------------- 50

SECTION 11-BuSINESs OPERATIONS

Panama Canal business operations --.------------------------------- 51
Mechanical and marine work --_------------------------------- 52
Drydock and marine work--------------------------------- 53
Commercial shipping-------------------------------- 53
Naval vessels---------------------------------------- 53
Army vessels---------------------------------------- 54
Other work-------- ------------------------------------- 54
Financial----------------------------------------------- 55
Electrical installation and repair work--------------------------- 56
Purchases and inspections in the United States ------------------- 57







TABLE OF CONTENTS V

Panama Canal business operations-Contin tied. Page
Ship chandlery and other storehouse supplies --------------------- 59
Fuel oil, diesel oil, gasoline, and kerosene------------------------ 59
Fuel and diesel oil----------------------------------------- 59
Gasoline and kerosene ------------------------------------ 60
Storage facilities ------------------------------------------ 60
Obsolete and unserviceable property and equipment -------------- 60
Building construction and maintenance-------------------------- 60
Quarters for employees ------------------------------------ 61
Gold employees --------------------------------------- 61
Silver empilovees. --------------------------------- ----- 61
Motor and animal transportation ------ ------------------------ 61
Panama Canal Press------------------------------------------- 62
Revenues from rental of lands in the Canal Zone----------------- 62
Experimental gardens---- ------------------------------------- 62
Binsiness operations under the Panama Railroad---------------------- 63
Receiving and forwarding agency ----------------------------- 63
Harbor terminals------------------------------------------ 63
Canal Zone for orders-------------------------------------- 64
Commissary division-- ------------------------------------ 64
Sales---------------------------------------------------- 64
Purchases------------------------------------------------ 65
Manufacturing plants-------------------------------------- 65
Hotels and restaurants---------------------------------------- 66
Cattle industry--------------------------------------------- 66
Beef cattle---------------------------------------------- 66
Dairy farm--------------------------------------------- 66
Panama Railroad Co. lands and leases--------------------------- 66
Telephones and telegraph-------------------------------------- 67
Coal------------------------------------------------------- 67
Panama Railroad ------------------------------------------- 67
Panama Railroad Steamship Line------------------------------- 68

SECTION III-ADMINIsTRATION
Departments ------------------------------------. __-----------------69
Changes in organization and personnel------------------------------- 69
Force employed--------------------------------------------------- 70
Gold employees----------------------------------------------- 71
Recruiting and turnover of force---------------------------- 72
Silver employees -----------.--.- ---- ------ ------- 74
Wage adjustments ------------------------------------------------ 75
Gold employees----------------------------------------------- 75
Silver enpluyees ---------------------------------------------- 76
Superannuated alien employees------------------------------------- 78
Public amusements and recreation----------------------------------- 78
Administrative problems ------------------------------------------ 80
Legislation proposed------------------------------------------- 80
Pensioning alien employees---------------------_------------ 80
Repatriation of alien ex-eniployees ------------------------- 80
Tolls-------------------------...---...-------------------- 80
Discussion of proposed legislation. ----------------.-------------- 81
Pensions for alien employees---------..------------.----------- 81
Repatriation of unemployed aliens-------------------------- 81






VI TABLE OF CONTENTS

Administrative problems-Continued.
Discussion of proposed legislation-Continued. Page
Tolls-dual measurement system----------------------------. 82
Genesis of rules---------------------._----______------------ 83
Result of rules---------------------------- ..._ 84
Reduction of revenues---------------------------- ------. 85
Remedy--------------------------------------------------_ 88
Rates proposed ------------------------ --------------88
Equity of proposed tolls--------- -----------------_--------____ 88
General program of plant improvement-------------------------- 90
Working fiscal year 1933----------------------------.------.. 90
Workinfiscal year 1934----------------------------------.. 90
Concrete wharf at Cristobal dry dock -- ------------------ 91
Dock 14, Cristobal----------------------------------___ 91
Balboa High School and Junior College ------------------ 91
Quarters for American employees -----------------..------. 91
Dredging division station at Gamrnboa -------------------- 92
Dump barge--------------------------------------- 92
Additional needs-----------------------------------------.--- 92
Unemployment -- ------------------------------------------- 92
Bureau of Efficiency----------------------------------------- .. 93

SECTION IV-GOVERNMENT

Areaof the CanalZone ------------------------------------- ------- 94
Population--------------- ---------------------------------.... ----. 94
Public health--------------------------------------------------....- 95
Vital statistics -----------------------------------.-------------....... 95
General death rate---------------------------------------- 96
Death rates from disease alone----------------------------- 96
Birth rates, including stillborn------------------------------ 96
Death rate among children under 1 year of age --------.----. 97
Principal causes of death -----------------------------------. 98
Malaria------------------------------------------------------ 98
Hospitals and dispensaries-------------------------------------- 100
Transfer of patients from Corozal Hospital ------------------- 100
Smallpox vaccination ------------------------------------------ 100
Garbage disposal, Pacific terminus -...---------------------------- 100
Quarantine and immigration service -------------------------------- 100
Municipal engineering------------------------------------------- 102
Watersupply---------------------------------------------_ 102
Sewer systems ---------------------------------------- -----103
Road construction ---------- ----------_-----------___----------- 103
Thatcher Highway---------------------------------------- 103
Balboa and La Boca Roads ------ ------------------------- 103
Bolivar Highway -- -------------------------_------------ 104
Cristobal Drydock-------------------------------------------- 104
Panama City and Colon ------------------------------------- 107
Water-purification plants and testing laboratory-. ------------------ 107
Ferry service ------------------------------ ------------------ 107
Public order---------------------------------------------------- 108
Fire protection ------------------------------------------------ 110
District court---------------------------------------------------- 110
District attorney, office of----------------------------------------- -111
Marshal----------------------------------------------.. ---------- 111






TABLE OF CONTENTS V3

Page
Magistrates' courts----------------------------------------------- 112
Balboa--------------------------------------------------- 112
Cristobal -- -------------------------------------------- 112
Pardon Board--------------------------------------------------- 112
Public-school system---------------------------------------------- 112
Junior College------------------------------------------------ 114
Postal system---------------------------------------------------- 114
Airmail----------------------------------------------------- 115
Customs--------------------------------------------------------- 115
Shipping commissioner--------------------------------------------- 116
Administration of estates ----------------------------------------- 117
Licenses and taxes------------------------------------------------ 117
Insurance-------------------------------------------------------- 117
Immigration visas------------------------------------------------- 118
Relations with Panama ------------------------------------------- 118
Commercial aviation ------------------------------------------ 118
Codification of laws of the Canal Zone------------------------------- 118

SECTION V-FINANCIAL AND STATISCAL STATEMENTS

Accounting system------------------------------------------------ 120
Operations with Panama Railroad Co. funds ------------------------- 121
Panama Canal operations---------- ------------------------------- 121
List of tables:
General balance sheet------------------------------------------ 122
Assets (tables 1 to 13, inclusive)---------------------------- 122
Liabilities (tables 14 to 23, inclusive)------------------------ 122
Operations for profit and loss (tables 24 to 26, inclusive)----------- 122
Miscellaneous (table 27)-------------------------------------- 122
List of addenda not published--------------------------------- 122
Major accounting tables with supplementary notes-------------------- 123














REPORTS OF HEADS OF DEPARTMENTS AND DIVISIONS

APPENDIXES NOT PRINTED

The material in the annual report of the Governor of the Panama Canal,
published 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 organi-
zation; 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
consulted 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
Locks division, report of superintendent
Office engineer, report of
Section of surveys, report of chief
Gatun Dam and backfills, 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
Magistrates' courts:
Magistrate, Cristobal, report of
Magistrate, Balboa, report of
Pardon board, report of chairman
District attorney, report of
Public defender, report of
District court, report of clerk
Marshal, 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.
Vm











ANNUAL REPORT


OF THE

GOVERNOR OF THE PANAMA CANAL


BALBOA HEIGHTS, CANAL ZONE,
September 80, 1933.
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 ended June 30, 1933.
Attention is invited especially to the statements in sections I and
III showing the unequal treatment of vessels and the loss of revenue
to the Canal because of the dual measurement system for determining
net tonnage. Ships pay widely divergent amounts per ton of their
actual earning capacity because the tolls are limited by a measurement
of net tonnage which is not related closely to earning capacity. The
divergence grows greater year by year, and correspondingly the
revenues of the Government are unwarrantably and unnecessarily
depleted through our inability, under the present law, to collect tolls
on an equitable and uniform basis. Our method for the collection of
tolls should be revised by the adoption of the single basis of the
uniform Panama Canal rules of measurement, and legislation to
attain this end is earnestly recommended.
Respectfully,
J. L. SCHLEY, 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' chandlery,
and other essential supplies, marine and railway repair shops, ter-
minal facilities for the transshipment of cargo and passengers, opera-
tion of the Panama Railroad on the Isthmus and the Panama Railroad
Steampship Line between New York and the Isthmus, quarters for
the working force, and other adjuncts essential to the economical and





REPORT OF GOVERNOR OF THE PANAMA CANAL


efficient operation of the Canal; and (c) administration of the govern-
ment of the Canal Zone, populated by 8,654 civilians, 11,012 Ameri-
cans in military and naval forces, and 23,186 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
one ocean to the other, and to handle such traffic as presents itself for
transit with a maximum of safety and a minimum of delay.
The only interruptions to Canal traffic during the year occurred on
November 28 and 29, 1932, on account of floods. Prolonged rainfall
brought water into Gatun Lake in excess of the volume which could
be discharged through the spillway with 13 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 for a total of about
23 hours. While they were being so used traffic was suspended.
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 fuel-oil plants, coaling stations, drydocks, marine repair
shops, terminal facilities for the transshipment of cargo, storehouses
for the purchase of ships' chandlery, commissaries for the replenish-
ment of food supplies, and similar essential services. These services,
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 schools, police and fire
protection, quarantine, public health, immigration service, posts,
customs, aids to navigation, steamboat inspection, hydrographic and
meteorological work, water supply, sewers, construction and mainte-
nance of streets, and similar activities which, in the United States, are







REPORT OF GOVERNOR OF THE PANAMA CANAL 6

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 centraliza-
tion of all governmental activities under one head simplifies the
problem of economical and efficient administration.

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 numeri-
cally in the following table, which presents a comparison of the
activities during the fiscal year 1933 with the 2 years immediately
preceding:

Fiscal year Fiscal year Fiscal year
1931 1932 1933
Transits of Canal by ships paying tolls ----------------------5, 5,29 4, 506 4,494
Free transits of ocean vessels-------------------------------- 568 473 445


Total transits of ocean vessels-----------------------
Tran it of lriunclier, not counted in commercial traffic-------
Number of lockages during year:
(G atun Locks-------------------------------------------
Pedro Miguel Locks------------------------------------
Miraflores Locks -------------------------------------
Tolls levied on ocean vessels--------------------------------
Tolls on launches (not included in above)------------------
Total tolls ----.------------------.---------


6,097 4,979 4,939
113 94 105
5,571 4,615 4,380
5, 824 4,842 4,557
5,783 4,826 4,505
$24,645,456.57 $20,707,377.05 *C19,r20,4.F 53
652. 32 478.94 7.2. 23
24, 646,108. 89 20, 707, 855. 99 19,621, 210.76


Cargo passing lthroupgh Canal (tuoni.---..--.-..---..----- 25,082,800 19, ,'J7,998 18,177,728
Net tonnage (Pun-ima Canal measurement) of tranlitinz
vessels------------------ --------------.------------ 27,792,146 23,625,419 22,821,876
Cargo per net Ion -ifocein vessels. inclidinr- thr-.e in liiL.it.. .9025 .8384 .7965
Average tolli per lon of cargo, including ollis no vessels in
baIllat.................................................. ... $0.9826 $1. 0454 $1.0794
Average tulls per Panam.i Canal net ton of vessel measure-
ment, including vessels in ballast------------------------- $0.8868 $0.8765 $0.8597
Calls at Canal ports byshipsnot iransihing Canal------------ 983 874 854
Corgo handled and transferred at ports .tun-,.l- --------- 1,168,268 9'4. :U 1,026,128
Coal, sales and issues (tons)------------------------------- 169,504 65. 41; 39,327
Coal, number of commercial ships bunkered---------------- 452 277 197
Fuel oil pumnipedl (b:irrels) .................................. 12,120,522 7,767,356 6,022,663
Fuel oil. number of hlip- served other thin vesr-l; operated
by the Panama Canal------------------. ---- ..------------- 2,044 1,407 1,188
Ships repaired, other than Paunniai Cnuani equipment ...... 770 593 501
Ships. drydocked, other than Panama Canal equipment. -.. 135 125 89
Provisions sold to commercial ships i onrmis-airy salesi..... $789,365.78 $45.'<, 0 4- 30 $294. 416.69
C handlery sold to ships (storehouse .-,1ls i.................. $55,309.48 $3 i, .95 $26, 386. 27

REVENUES AND EXPENSES

The net revenues from Canal operations proper were $10,775,500.75,
as compared with $11,194,800.88 last year, and were $7,449,344.11
below the amount of such revenues in the peak year, 1928. Net
revenues from business operations under the Panama Canal in 1933
were $1,135,708.62. The combined net revenues accruing from the
Canal and its business units totaled, accordingly, $11,911,209.37.
The capital investment at the beginning of the fiscal year was
$533,106,009.47 and the net revenue represented a return of 2.23
percent on the investment.
The foregoing figures do not include the operations carried on with
funds of the Panama Railroad Co.; these resulted in a net profit of
$784,432.28, as compared with $782,464.49 in the preceding year.












SECTION I


CANAL OPERATION AND TRADE VIA PANAMA CANAL
TRAFFIC IN 1933
Transits of commercial vessels, 4,494, were 12 less than in 1932,
a decline of less than three tenths of 1 percent, and the daily aver-
age transits, due to there having been 366 days in 1932, was the same,
12.31. This compares with 15.15 in 1931, 16.95 in 1930, 17.37 in
1929 and 17.63 in the peak year of 1928. The showing in transits
in 1933 was more favorable than in other features of the traffic, due
to the inclusion of an increased proportion of small vessels. The
net tonnage, Panama Canal measurement, of traffic was 3.4 percent
less in 1933 than in the preceding year, tolls were lower by 5.2 per-
cent and quantity of cargo by 8.2 percent.
With respect to the four features usually considered in canal
traffic-transits, Canal net tonnage, tolls, and tons of cargo carried-
the traffic in 1933 was the lowest since 1923 for transits, tolls and net
tonnage, and the lowest since 1922 for cargo tonnage.
Four major periods are discernible in the history of traffic through
the Canal to date. After the opening of the Canal on August 15,
1914, there was a slow growth through 8 years, in which the maximum
of transits was 2,892, in 1921, until the beginning of the California
oil traffic, which was primarily responsible for raising the transits
to 3,967 in 1923 and 5,230 in 1924. Traffic continued at about the
1924 level until the business expansion brought a considerably in-
creased volume toward the end of the decade. Transits reached a
peak of 6,456 in 1928; tolls $27,127,376.91 and cargo, 30,663,006
tons, both in 1929; and net tonnage, Canal measurement, 29,980,614
tons, in 1930. From those levels there has been a downward move-
ment which halted, at least temporarily, in the later months of the
fiscal year 1933.
In the downward trend, the traffic reached its lowest point in July
and August 1932. The daily average movement of cargo was 40,645
tons in July and the average transits and tolls reached low marks of
10.13 and $46,479.00 per day, respectively, in August. From that
point traffic gained each month, due principally to the seasonal
movement of wheat from the Pacific coast of North America, to the
end of the calendar year. Beginning with January 1933 a decline
began but the traffic did not come down to the levels of July and






REPORT OF GOVERNOR OF THE PANAMA CANAL


August 1932, and toward the end of the year the tendency was toward
an increase in traffic.
In the fiscal year 1933 the transits of naval and other public vessels
of the United States Government, public vessels of the Colonimbian
and Panamanian Governments, and vessels transiting solely for
repairs, none of which pay tolls, numbered 445, as compared with
473 in 1932. The total of tollpaying and free transits combined,
which includes all seagoing vessels of 20 tons or more, numbered
4,939, in comparison with 4,979 in 1932, making daily averages of
13.53 and 13.60, respectively.
Net tonnage of the commercial vessels passing through the Canal
in 1933 aggregated 22,821,376 tons, Panama Canal measurement,
a decrease of 3.4 percent in comparison with 1932. Tolls in 1933
amounted to $19,620,458.53, decreasing 5.2 percent in comparison
with tolls in the preceding year.
The loss in net tonnage, in comparison with 1932, notwithstanding
the fact that the daily average number of transits in the two years was
identical, was due to a decrease in the average tonnage per vessel,
accounted for principally by the heavy traffic of banana schooners
of small tonnage plying between the west coast of Panama, and the
Atlantic terminus of the Canal. Vessels under 100 net tons in 1933
accounted for 5.2 percent of the traffic in comparison with 1.6 percent
of the traffic in 1932.
The decrease in tolls was occasioned in part by the lessened Panama
Canal net tonnage but was 5.2 percent in comparison with a decrease
of 3.4 percent in canal net tonnage. The greater decrease in tolls
than in net tonnage was due to'the effect of limiting the tolls
collectible to $1.25 times the net tonnage as measured under the rules
for registry in the United States.
Cargo carried through the Canal in 1933 amounted to 18,177,728
tons and was 8.2 percent less than the cargo in 1932. The largest
proportion of this decrease occurred in the Atlantic to Pacific move-
ment, which declined 19.9 percent; in the opposite direction there
was a decline of 3.6 percent. This is a reversal of the trend in 1932,
the heaviest. decrease in that year having been in the movement from
the Pacific to the Atlantic. The combined movement in both direc-
tions over all the major trade routes, with the exception of that
between Europe and Canada, showed decreases in 1933 although
the movements to the Atlantic in the United States intercoastal
trade and in the trade between the United States and the Far East
registered gains. 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 1933 were $19,621,158.61. This figure includes
tolls on launches, which are not included in "commercial traffic"








REPORT OF GOVERNOR OF THE PANAMA CANAL


of ocean going ships, and also has been adjusted in accordance with

refunds for overcharges and supplemental collections in the event

of undercliarges. These items account for the difference of $700.08

between the accounting figure and the figure for tolls levied on com-

mercial 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-


1915 i..................... ................... .
1916 2...........................................
1917." . .... .. ... .
1918. --.-..--. ----------------------------------..... ..... ----
1919................... --- ...................
1920 ................ . ................. ---- ---
1921.................... .... .............
1922.................. .......................
1923 .. .-- - - - --. --- - .- .-. .- ..-- .- ... -
1924 .................. ..... .. ............. .
1925. .-----------------------------------. .. ----
1926.................. ...... .. ..............
1927............................................
1928 ............................................
1929 ............................................
1930.. ------------------------.. .......................
1931 .....................................
1932............. ............... ------.........
1933 ------................... -......... -- .........

Total .-.. ....- ..--- --. -. -- ...--.--.-


Number
of
transit


1,075
738
1,803
2,069
2.024
2,47S
2, S92
2.736
3,967
5,230
4,673
5, 197
5,475
6,456
6,413
6, 1I5
5. 529
4,506
4,494

73,960


Panama
Canal
net
tonnage


3,792,572
2,396,162
5,798.,557
6,574,073
6, 124,990
8,546,044
11,415,876
11,417,459
IS,605, 786
26,148,878
22,855,151
24,774,591
26, 227, 815
29,458,634
29,837,794
29, 980, 614
27,792, 146
23.625,419
22, h21, 876

338,194,437


Tolls



$4,367,550.19
2. 40, 0O9.62
5,627,463.05
6,438,853.15
6, 172, 828.59
8,513,933.15
11,276,889.91
11, 197,S32.41
17,508,414.85
24,290,963.54
21,400,52.3.51
22,931,055.98
24,228,830. 11
2P, 944,499.77
27,127,376.91
27,076, 890.01
24,645,456.57
20. 707, 377.05
1i, 620,45&. 53

312,485, 286.90


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


TRAFFIC BY MONTHS


The commercial traffic during each month of the fiscal year is

summarized in the following table, in which are inserted for com-

parison the figures for the preceding year:


Month


July ---- -- -- -.-
August......... ...
September ..........
October..............
November ...........
December...........
January ............
February............
March --------------
A pril......... ... -- -
May... ........--
June .... ..........


Number of
vessels


1931-32


1932-33


326
314
353
394
3S8
431
415
368
399
370
372
364


Panama Canal net
tonnage


1931-32 1932-33


2. 110,701
1,99A, 194
2, 070, 87J
2,081.60C
2,001,745
2,033, 153
2,022,275
1,878, 177
1, 864, 89C
1,863,692
1.956,95&
1,743, 15C


1, 676,492
1. 65, 112
1, 868,391
1,988,133
2.035.796
2.080,069
2,069,218
1.832,658
1 989,044
1,839,597
1,883,249
1.901, 117


Tolls


1931-32


$1.848,638.45
1,770,.202.71
1,820,735.75
1,823,650.74
3.762,036. 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


1932-33


$1, 468,728.36
1,440,848.87
1,598,265.98
1.714,779.06
1,756.865.84
1.781,940.03
1,762,808.56
1,575,708.35
1,718,908.41
1,554,250. 14
1,617.943.65
1,629,411.28


Total..... 4. 506 4, 494 23, 625, 419 22. 821, 876 20.707.377. 05 19,620,458. 53
Average per month.. 375.5 374.5 1,968,785 1,901,823 1,725,614.75 1,635,038.21


Tons of cargo


1931-32


1,866,803
1,789,234
1,754,855
1,762,670
1,577,523
1,618,904
1,593,585
1,645,393
1.643.952
1,443,731
1,676,790
1,404,558
19, 807,998
1,650.667


1932-33


1,259,981
1,349,453
1,347,144
1582,261
1,531,509
1,621,581
1,463,503
1,434.862
1,738,227
1,527,978
1,629,982
1,691,247

18, 177,728
1,514,811


Tons of
cargo



4,888,454
3,094,114
7,058.563
7,532,031
6,916,621
9,374,499
11,599,214
10, 8S4.,910
19,567,875
26,994.710
23,958,836
26,037,448
27,748,215
29,630.709
30,663,006
30,030,232
25,082, 800
19,807,.998
I8, 177,.728

339,047,.963







REPORT OF GOVERNOR OF THE PANAMA CANAL


Transits were lowest in August with 314, and highest in December
with 431, a difference of 117, or 37 percent of the lower number. The
daily average during the months ranged between 10.13 for August
and 13.90 for December.

PROPORTION OF TANKER TRAFFIC

Transits of tank ships during the fiscal year 1933 totaled 636, an
increase of 24, or 3.9 percent in comparison with the 1932 total of 612.
Tanker transit in 1933 comprised 14.2 percent of the total commercial
transit, made up 16.7 percent of the total net tonnage (Pananma Canal
measurement), paid 17.3 percent of the total tolls collected, and
carried 20.9 percent of the cargo which passed through the Canal.
The three tables below show the composition of the traffic as divided
between tank ships and all other commercial, or toll-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
Fi sal 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. ... ..... ............................. 612 3,894 4,506 1.7 10.6 12.3
1933:
July---------.---------.----------------- 51 275 326 1.6 8.9 10.5
Augist..................................... 49 265 314 1.6 8.5 10.1
Seiiernber............................... 51 302 353 1.7 10.1 11.8
October. ................................. 54 340 394 1.7 11.0 12.7
November---- ----------..---......-------------- 53 335 388 1.8 11.1 12.9
December-----.---...----------------------- 59 372 431 1.9 12.0 13.9
January -------------------------------- 61 354 415 2.0 11.4 13.4
February--..---.---------..--- ......-------------- 52 316 368 1.8 11.3 13.1
March..--------------------------------- .. 51 348 399 1.6 11.2 12.8
April...................................... 48 322 370 1.6 10.7 12.3
M al ............. ........................ 52 320 372 1.7 10.3 12.0
June...................................... 55 309 364 1.8 10.3 12.1
Toial, 1933-------------------------..-- 636 3,858 4,494 1.7 10.6 12.3







REPORT OF GOVERNOR OF THE PANAMA CANAL

Proportions of tanker and general net tonnage


Panama Canal net tonnage Percentage of total net ton-
nage
Fiscal year
Tankers General Total Tankers General Total

1923..-..-----------....-...---.-----------........----. 5,374,384 13.231,402 18.605,786 28.9 71.1 100.0
1924.......--------- ----------------........... ..---..--- 10,212.017 15,936,831 26, 148,878 39.1 60.9 100.0
1925.--.--...--------------.....---------...........-..----- 6,421.622 16,430,529 22.855,151 28.1 71.9 100.0
1926.---........ ............ ........... 6,343,240 18,431,351 24,774,591 25.5 74.5 100.0
1927-----...................----------------------------.............. 7,624, 112 18.603.703 26.227,815 29.1 70.9 100.0
1928--..---------.-------.---------------................. 6.213,969 23,214,665 29,459,634 21.2 78.8 100.0
1929--......---.----------.... --.----------------. 5. 84-1, 23 23,993. 531 29,837,794 19.6 80.4 100.0
1930--.--------------..-----------------.. 6,564,138 23,416476 29,980,614 21.9 78.1 100.0
1931.-------------.--.--------------... 5.2S4.873 22 507,273 27,792,146 19.0 81.0 100.0
1932--------------------------------- 3,570,39 20,055,021 23,625,419 15.1 84.9 100.0
1933----------.----..------..------------. 3,808,784 19,013,092 22,821,876 16.7 83.3 100.0


Proportions of tolls from lank ships and from all other vessels

Tolls paid by shipping using Canal Percentage of total tolls
Fiscal year -------
Tankers General Total Tankers General Total

1923--------------.. ----- 4, 769,324.63 $12, 738,874.94 $17, 508, 199.57 27.2 72.8 100.0
1924-----......--------------- 9071,835.65 15.219,127 89 24.2'j0,963.54 37.3 62.7 100.0
1925-----------------------. 5,728,302.26 15,672,221.25 21,400,523.51 26.8 73.2 100.0
1926....-------------..------ 5,626. 167.93 17,304 8. 05 22,931,055.98 24.4 75.6 100.0
1927 ----------------------6 65,806 0 17, 57)0, 123 21 24,228,830. 11 27.5 72.5 100.0
1928 -------------------- 5.436.437.16 21.508,062.61 26.944,499.77 20. 1 79.9 100.0
1929--------------------... 5.145632.19 21981. 744. 72 27.127,376.91 18.9 81. 1 100.0
1930 --------------------. 5,768,963. 28 21,307.926.73 27.076,890.01 21.3 78.7 100.0
1931---------.------------ 4. S2,320. 14 19,963,136.43 24,645,456.57 19.0 81.0 100.0
1932--- -------..---..------ 3.197.136.29 17,510.210.76 20,707,377.05 15.4 84.6 100.0
1933---.------..---------- 3,393,311.02 10,227,147.51 19,620,458.53 17.3 82.7 100.0


TANKER CARGOES

Cargo carried through the Canal in tank ships during the fiscal year
1933 amounted to 3,808,067 tons, in comparison with 3,501,390 tons
in 1932, an increase of 306,677 tons, or 8.8 percent. Segregation of
the 1933 traffic by direction of transit shows that 271,399 tons of
tanker cargo went through from the Atlantic to the Pacific, and
3,536,668 tons from the Pacific to the Atlantic.
Of the total mineral oil cargoes carried through the Canal during the
fiscal year 1933, approximately 49 percent was gasoline, benzine, and
naphtha; 23 percent crude oil; 21 percent gas and fuel oils; and the
remainder, 7 percent, lubricating oils and kerosene.

NATIONALITY OF VESSELS

Twenty-one nationalities were represented in the commercial traffic
passing through the Canal in 1933, compared with 22 in 1932, and
19 in 1931. Vessels of United States registry led in the number of
transits, as has been the case during the preceding 14 years. From
1915 to 1918, inclusive, transits of British vessels exceeded those of








REPORT OF GOVERNOR OF THE PANAMA CANAL V


any other country. In all years of operation either British or United
States vessels have led in transits.
With respect to cargo carried through the Canal, vessels of United
States registry carried 43.9 percent of the total; British vessels, 22.9
percent; Norwegian vessels, 9.8 percent; Japanese, 6.4 percent;
German, 4.5 percent; Danish, 2.5 percent; Swedish, 2.2 percent; Neth-
erlands, 2.1 percent; French, 1.4 percent; and Italian vessels, 1.0
percent. The vessels of these 10 nations combined carried an aggre-
gate 17,576,728 tons, or almost 97.0 percent of the total cargo passing
through the Canal.
Cargo tonnage carried under the principal flags contributing to
Canal traffic during the past 5 years is shown in the following
tabulation:
Tons of cargo carried

1929 1930 1931 1932 1933

United States------------------------ 14, 075. 731 14,499,233 11,805,132 35. 055 7,987,739
British------------------------------ 8, 331,221 7,572,969 5,971,281 -1, 5..:, 068 4, 170,995
Norwecian................................ 1,505,366 1,808,278 1,720,383 1,427,284 1,773,161
Japanese---------------.--------------- 980,041 1,009,735 1,104,512 1,031,704 1,159,733
German------------------------------- 1,482,279 1,388,022 1,261,763 1,078,738 813,231
Danish.--------------- ---------------- 518,452 505,914 606,100 521,481 448,863
Swedish------------------.------------- 845,664 832,273 721,945 761,015 403,169
Netherlands............................... 695,956 618,718 477,769 440,870 381,071
French...-------------------------.------ 530,763 576,753 508,011 338,786 249, 35
Italian..................................... 334,483 264,223 236,570 215,139 1x,.4371
All remaining... .......................... 1,363,050 954,114 669,334 519,858 601,000
Total-...--------.-----------------.......... 30,663,006 30,030,232 25,082,800 19,807,998 18,177,728


Segregation of the traffic through the Canal during the fiscal year
1933, by nationality, and showing transits, measurement tonnage, tolls,
and tons of cargo, is presented in the following table:

Commercial traffic through the Panama Canal, by natiaoniality of vessels
Te, S


Nationality


Belgian ...........
Brazilian-------.........--
British ............
Chilean...........
Colombian.........
Danish.............
Danzig.............
Finnish...........
French........... ..
German............
ltalban............. .
Japanese............
Netherlands........
Norwetian.........
Panamanian ----........ ---
Peruvian..........
Russian............
Swedi sh............
United States......
Venezuelan -.........
Y ugoslav...........
Total, 1033.- -
Total, 1932...
Total, 1931- ..


Num-
ber of
ships

12
2
1,039
7
7
113
44
1
66
325
52
217
80
407
324
4
4
88
1,686
6
10


4,494
4,506
5,6529


Me.riurenment tonnage


Panama
Canal net

66,602
7.312
5,61", 301
26,708
1,900
530.515
31, .. 1i
3, 329
3"1, 1 70
1,010. 751,
3'94, 9'J
1, 179. 514
.A'00. 74
2, 01. 1, I
336
3.987
423, 441
10, 09. 102
5, 852
46,858


22. q21. 871f
27, 792. 146


United
States
equivalent

49,241
.5, .'.'Jl 1
4, Oi.', W2
21,758
1. NIS
3!53.32S4
2N5, 377
2,964
211.673
6'.5 137
257,241
938,675
344.610
1,3337, S7T
79, 589
367
2,814
268,915
7,41)1.789
5,472
34,688


16. 368, 930
17. 207. 789
20,595. 189


76,969
9,938
6,764,512
34,960
2,510
592,521
493,026
4.850
441. 637
1,149,518
42. F',13
1,470,648
576,652
2,242,513
142. 894
5, 835
465, 7to
12,162,582
8,410
56,002


27, 15. 332
28,770.941
34, 232, 824


18444-33----2


Registered
Gross Net


52,570
6,124
4,122,375
20,764
1,904
365,769
280,815
2,872
252,686
681,413
291,007
924,352
348,184
1,344.099
sI1, 008
444
2,713
337,685
7,374,522
8,048
34, 754


16,537,108
17.386,148
20,768,461


Tons of
cargo


50,951
2,277
*3 *1*-*
4,170,995
28,218
2,163
449. 63
347.934
6. 30i
249,395
813,231
189,371
1,15., 733
3, 1.071
1, 77:1. 161
78,513
669
-----------
403, 169
7,987,739
5,110
78,857


18, 177,728
19. 807. UUS
25. 082., 00


$54,334.36
6,992.50
4, 814,485.52
25, 256. 41
1,968.60
423,316.66
304,505.76
3,693.75
305, 257. 65
822,609.33
316,525.27
1,154,288.82
413,970.4S
1,570.866.36
,-2.980.87
2,479.10
:1,517.50
321.470.43
8,933, 8.51. 79
5, 526.72
42, 561. 65


19, 620.458. 53
20.707,377 05
24.645,456. 57


I`-II


I






REPORT OF GOVERNOR OF THE PANAMA CANAL


Foreign naval vessels, other than transports, colliers, hospital ships,
and supply ships, pay tolls at the rate of $0.50 per ton displacement.
Included in the preceding tabulation of transits and tolls, but not of
tonnages, are the foreign naval vessels which transited the Canal during
the fiscal year 1933 and paid tolls on the basis of displacement, as
follows:

Number Displace-
Nationality rof vess's ment ton Tolls

British..------------------------------------------------------........................................................... 6 32,705 .T16.,352.50
French............................................................------------------------------------------------------ 2 9,778 4,869.00
Peruvian.--------------. ----------------------------- ----------.... 3 4, 111 2,055.50
Total......................................................... 11 46,594 23,297.00

NET TONNAGE OF VESSELS
The total of 4,494 commercial vessels which transited the Canal in
the fiscal year 1933 was comprised of 4,483 merchant vessels, yachts,
etc., paying on the basis of net tonnage, and 11 naval vessels paying
tolls on the basis of displacement tonnage. Fifty percent of the 4,483
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 11.7 percent of the transits, and
3.2 percent were by vessels over 10,000 net tons. The average
tonnage of all transits was 5,091 net tons as compared with 5,254 net
tons for the preceding fiscal year, a decrease of 163 tons, or 3.1 percent.
Vessels of Danzig registry (all tank ships) averaged the highest net
tonnage at 7,808; with those of Italian registry second, with 7,594 net
tons; and those of Netherland registry third, with 6,256 net tons. The
lowest recorded average by nationality was for Colombia, with 271
net tons; the next lowest for Peruvian vessels, with 336 net tons; and
the next lowest for Panamanian vessels, with 373 net tons.
The British liner Empress of Britain, of 27,589 net tons, Panama
Canal measurement, which made her second transit of the Canal in
1933, was the largest commercial vessel to transit during the year, and
to date is the largest commercial vessel to have made Canal transit.
The following tabulation shows the 4,483 commercial transits, other
than naval vessels, in groups according to net tonnage, Panama
Canal measurement, segregated by nationality, together with the
average tonnages and the percentage which the total of each group
formed to the total number of transits for the fiscal years 1933 and
1932:







REPORT OF GOVERNOR OF THE PANAMA CANAL 11


CZ Average
N u m her of t ransits in net tonnage groups anaet
tonnage

Nationality . C; 0; 0; C; 4 g. g CIS ca



Brl h .......... -? .- -". .!'; 5'E >o. t-": r-.: 3. 351 249 12 4 5 5 3 03 5,_ 66 ,30 7 5 4
-*Sc -S3=32 O o5 Sc =S | e0
o~~~ 0 -C3~-~* C.IS.~C~ ~U

e'a 0 c 0 3 0- C 0 6
C'1 C6 '4 6t C5r -i P.1 P4

Belgian. - 2 ------------------ 6 4------------ 12 66,6025,5505,499
Brailian .............. .... .... .... ... 2 ---- --- ---- 2 7,3123,6561
British .. S I" ,! 17 33 351 249 124 74 53 25 311,033 5,660,3015,4795,641
Chilean------------------- ------------4 3 -------------------------- 7 26,7083,8151,171
Colombian------------ 1 6 ---- --- ---- ---------- ---- ---- ---- ---- ---- 7 1,900 271 162
Costa Rican----------------- -------- ---- ---- ---- |---- -------- ----- 331
Danish ------------- ---- ----25 5 10 26 24---- 2 21-------- 113 530,5154,6955,348
Danzig-------------- ------------------- 1 8 2 33---- ---- 44 343, 554 7. 808 7,403
Finnish------------------ ---- I ----- ---------------------.... ... .... .. 1 .1.32 .1, :2 4.4i;0
French ---------------------------- --- 11 12 9 --.. 1. ..... .... ... 4 3'%i., 71 5, 9i17 5,, 6i6
German- ----------- ----85 75 26 22 16 28 52 2") ........ I 32' 1, 011,. 7.T.6 3. I 1ii ,xO I
Greek----------------- ---- --- -- ---- ---- ------------------.... .... ... ..... .....-----------... .... 3.S47
Honduran---------------- --- ---- -- ----- ---- ---- ---- ---- --- ---- ------- ----- 2,515
Italian ---------------------------------- 4----- 23------- 25__ 52 394,8897,5947,156
Japanese-------------------------- 1 9 69 78 55 5------------ 217 1,179.5145,4365,477
Netherlands---------------------- ---- 10 1 20 25 11 13-------- -80 500,4746,2564,727
Norwegian------------ ----25 8 1 26 133 134 59 20..---- ---- 1 407 2,013,8814,9484,921
Panamanian---------- 212 90 4 5--------- ----- 13---------------- 324 120,695 373 795
Peruvian------------------ 1 ----------- ---------- -------- ------------ 1 336 3361,122
Russian-------------- 3-------- 1 .. ..... .... ... .. .-.. 4 3,987 997 ----
Swedish ----------------- 4 -- 4 .. -i3 41 1 ... .... .... 88 423,4414,812 4, 728
United States--------- 1C 10 13 48 33 497 515 329 45 43 34 1091,68610,099,1025,9905,629
Venezuelan----------- ---- 2 4 -- - ------- ----- 6 5,852 975---
Yugoslav-------------- -------- -- -------- 7 3--- ------------ ---- 10 46,8584,6864,827
Total----------- 234 285 137 107 1681,1431,104 700 216 163 84 1424,48322,821,8765,0915,254
Percent of total:
1933-------------- 5.3 6.4 3.0 2.4 3.7 25.5 24.6 15.6 4.8 3.6 1.9 3.2100.0 ------------
1932-------------- 1.6 5.0 2.5 4.61 4.3 28.9 25. 2 14.4 5.5 3.1 1.8 3.1 100.0 ------ -----

111 naval vessels (6 British, 2 French, and 3 Peruvian), paying tolls on displacement tonnage, are not
included.

FREQUENCY OF TRANSIT OF VESSELS THROUGH THE PANAMA CANAL

During the fiscal year 1933, 1,177 individual commercial vessels
representing 21 nationalities, passed through the Panama Canal in
the total of 4,494 transits. The number of transits by individual
ships varied from 1 to 88, and averaged 3.82. The 88 transits were
made by the small Panamanian motor schooner Real of 22 net tons,
Panama Canal measurement. This vessel was engaged in carrying
bananas from the Pacific coast of the Republic of Panama to Cristobal.
The number of vessels making only one transit during the year was
297.
Although vessels of United States registry led in the aggregate
number of transits during the year, Great Britain, which ranked
second in transits, led in the number of individual vessels, with 420.
There were 319 individual vessels of United States registry which
passed through during the year.
The following table shows the number of individual ships, the fre-
quency of transits per vessel, the total transits for the year, and







12 REPORT OF GOVERNOR OF THE PANAMA CANAL


the average number of transits per individual vessel, segregated by
nationality:


Vessels making indicated number of transit per vessel during fisca
year 1933
Nationality
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Belgian ...................... ..... 1 ..... 1 .... .... .... .... ...... ... ... .... ....
Brazilian...........-----------......-------.... ...-----.. 1 ..... ..... .... .... .... .. .... .... .... .... .... .... .... ....
British....................... 151 1-16 36 39 16 24 5 .... .----. .----. .----. .----.. .... .... .... ...
Chilean ...................... 3 2 ... ..... .... .... .... .... .. .. .... .. ..- .... .... .... .....
Colombian. .................. 1------------------- ..... ..... ..... .... I ...----. .... .---..-. ...--------. ...----. ..----.. .... .----... .... ....
Danish....................... 11 12 6 6 3 .... 3 .----.. .... .--- . .---- .---- .---- ..----. ....
D anzig....................... 1 4 ..... 4 1 .... .----. .... .... .... .... .... ...---- 1 .... ....
F innish ...................... 1 ..... ..... . .... .... .... .... .... .... .... .... .... .... .... ....
French....................... 2 2 6 1 .. 4 2 .... .... .... .... .... .... ...-. ..--.. ....----
FGerm anc............... .... .. .. ... 4 9 2 1 6 1 -- .--. -- ..- .--
G erItalian ... .------------------- 4 9 6 1 6 2 1 .... ..... .... ... ... ---- ..-- --
Itlin---------------I 2 2 1 1. 2 1- -------------
Japanese..................... 23 21 7 15 3 7 2 --... ..-. .... ... ... .... ..-.
Netherlands....---............. 4 6 3 2 2 5 1 .... .... .... .... .... .... .... .... ....
Norweian................-----------------.. 34 31 20 13 11 C 2 4 3 1 ----. .------- ... ..--------
Panamanian.............---------------. ..----. 6 1 3 2 3 ... .--- ... .---- .--------. .... .----.. .-.. ... .---. .----
Peruvian ..................... 4 ..... ....-. ..... .. .. .... .... .... .... .... .... .... .... .... ....
R ussian ...................... 4 ..... ..... . .... .... .... .... .. .... .... .... .... .... .... ....
Sw edish- ...................... 13 9 ..... 5 . 5 1 .. . ... .... .... .... .... ....
United States................ 33 57 29 39 23 30 36 21 21 12 1 1 4 2 1 2
Venezuelan ...... ............... ... .. 1 .. 1 ... I I .
ugosav .............. .. .. 8 1 ... ... .... ...
Total-------------.................. 297 310 116 140 63 93 60 27 25 13 1 1 4 3 1 2


Vessels making indiiated number of transit per ves- Aver-
sel during fiscal year 1933 Total Total age
Nationality ships trans- num-
si its ber of
17 18 21 22 25 27 33 34 40 51 84 88 transits

B elgian ..................... .... .... .... .... .. . .... .. .... .... .. .... 3 12 4.00
B rai7 lian ................... . .... .... .... .... .... .... .... .... .. .. .... .... 1 2 2.00
B ritish ..................... .... .... 1 ... I .... .... .... .... .... .... 420 1,039 2.47
C hilean .................... .... .... .... .... .... .... .... .... .... .... .... .... 5 7 1.40
C olom bian .......... ...... .... .... .... .... .... ... .... .. .... .... .... .... 2 7 3.50
D ani .sh .................... ... .... .... .... .... .... .... .... .... .... .... .... 41 113 2.76
D)-31 '12 ..................... .... .... .... .... .... .... .... .... .... .... .... .... 11 44 4.00
F innish ..................... .... .... .... .... .... .... .... . . .... .... .. .. 1 1 1.00
Freuch. .... .. ... ...---------------------... .... .... ..---- .. .---- .. ..---- .. ..---- .. ..---- .. .---- .. .---- .. .. ----..-- .---- --------. 17 66 3 89
G erm an .................... .... .... .... .... .... . 2 .. 1 ..----.. ..----.. 47 325 6.91
Italian ...................... .... .... .... .... .... .... .... .... .... .... .... .. 10 52 5.20
Japnnese.................... I.... .... .... .... .... .... .... .... .... .... .... .... 78 217 2.78
N etherlands ................ .... .... .... .... .... .... .... .... .... .... .... .... 23 80 3.48
Nurw e ian ................. .... .... .... .... 1 .... .--..-- ...----. ..--- ...----. ..----.. ...----. 126 407 3.23
Panam anian................ I 1 .... 1 .... .... .... .... 1 .... 1 1 21 324 1.54
Peruvian ................... .... .... ... .... .... . .... .... .... .... .... .... 4 4 1.00
Russian....... ......--------------------... ..----.. .... .... .. .-..---- ...-------- ..--------.. ..----.. ..----.. ..----.. ...----. ...----. 4 4 1.00
Sw edi \\....... ........ ...... .... .... .... .... .... .... .... .... .... .... .... .... 33 88 2.67
U united Stares .............. 4 3 .... .... .... .... .... .... .... .... .... .... 319 1,686 5.29
V enezuelan- .........-- .-... .... . .... .... .... .... .... .... .... .... .... .... 2 6 3.00
Y ugoslav ............ .. .... .... .... .... .... .... .... .... .... .... .... .... 9 10 1.11
Total................. 5 4 1 1 2 I 1 2 1 1 1 1 1,177 4,494 3.82



From the foregoing table, it will be noted that 297, or 25.2 percent,
of the total individual vessels using the Canal during the year, made
only one transit. Approximately 49 percent of the vessels made 3
transits or more, and less than 4 percent made 10 or more transits.
The following tabulation shows for the fiscal year 1933 the number
of vessels making the indicated number of transits through the Pan-
ama Canal, the percent which each class formed of the total number of
individual vessels (1,177), their aggregate number of transits, and
their percent of the total commercial transits (4,494):






REPORT OF GOVERNOR OF THE PANAMA CANAL 13

Percent Total Percent Percent Total Percent
Number of Num- of di number of total Number of Num- of di- number of total
ber of vidual Canal her of visual Canal
transits vessel vessels oftran- transit transits vessels vessels oftran- transits
(1,177) sits (4,194) (1,177) (4,494)

1 ----------------297 25.23 297 6.61 16 ----------- ---- 2 0. 17 32 0.71
2 --------------- 310 26.34 620 13.80 17 --------------- 5 .42 85 1.89
3 --------------- 116 9.87 348 7.74 18--------------- 4 .34 72 1.60
4"------------ -- 140 11.90 560 12.46 21------------ --- 1 .08 21 .47
5---------------- 63 5.36 315 7.01 22----------- ---- 1 .08 22 .49
6 -------------- 93 7.91 558 12.42 25------------ --- 2 .17 50 1.11
7 ---------------- 60 5.11 420 9.35 27----------- ---- 1 .08 27 .60
8 --------------- 27 2.30 216 4.18 33--------------- 1 .08 33 .73
9 .---------------- 25 2.13 225 5.01 34--------------- 2 .17 68 1.51
10--------------- 13 1.11 130 2.89 40------------- -- 1 .08 40 .89
11 -- ------------ 1 .08 11 .24 51 -------------- 1 .08 51 1.13
12 --------------- 1 .08 12 .27 84----------- 1 .08 84 1.87
13---------- ----- 4 .34 52 1.16 88------------- 1 08 88 1. 96
14 -------------- 3 .25 42 .94 -------- ----------
15--------------- 1 .08 15 .33 Total--- 1,177 100.00 4,494 100.00


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

Naval and other vessels owned and operated in the Government
service of the United St at es and Panama, war vessels of Colombia, and
vessels transiting 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 1933 there were 434 ves-
sels in direct service of th'e United(l States Government, 3 vessels owned
by the Colombian Government, and 8 vessels transiting solely for
repairs, a total of 445 which transited the Canal without paying tolls.
These vessels carried a total of 91,942 tons of cargo.
If charges at commercial rates had been made against these vessels,
the revenue from tolls would have been increased by approximately
$755,022.96, of which $747,929.58 would have been collected from
the United States Government.
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 105, and tolls aggregating
$752.23 were collected for their passage.

TRADE ROUTES AND CARGO

The preponderant movements of cargo through the Canal were to
or from the two coasts of North America, as in previous years. In the
traffic from the Atlantic to the Pacific approximately 80 per cent of the
cargo originated on the east coast of North America, and about 51
percent of all cargo going through to the Pacific was destined to the
west coast of North America. Of the traffic in the opposite direction,
74 percent of the total came from the west coast of the continent, and
about 53 percent of all cargo from the Pacific through the Canal was
destined to the east coast of North America.







14 REPORT OF GOVERNOR OF THE PANAMA CANAL


The following tabulation shows the aggregate movement of cargo

over these nine principal routes of trade, the suni of miscellaneous
routes and sailings, and the total during the past 4 years:


Cargo shipments through the Panama Canal during the past 4 fiscal years, segregated
by principal trade routes


United States intercoastal:
Atlantic to Pacific ------------------------
Pacific to Atlantic ---------------------.
Total------------------------..........
Europe and Canada:
Atlantic to Pacific ------------------------------
Pacific to Atlantic -----------------------
Total.---------------------------------------
United States and Far East (including Philippine Is-
landq):
Atlantic to Pacific ------------------ -- ---
Pacific to Atlantic ------------..----------

Total --------------------- .------.-
Europe and United States:
Atlantic to Pacific------------------- ------
Pacific to Atlantic -------------------------
Total--------------------------------
Europe and South America:
Atlantic to Pacific. ------------.. .------
Pacific to Atlantic-------------------------
Total--------------------------------.

Europe and Australasia:
Atlantic to Pacific -------------------------
Pacific to Atlantic----------------..........................
Total-------------...................----.............
United States and Hawaiian Islands:
Atlantic to Pacific ---- ------------ -.------
Pacific to Atlantic...-- ---- ........-.....-....-- -
Total--------------------..........................................

East coast United States and west coast South America:
Atlantic to Paelic.-------------. -.. .-...........-
Pacific to Atlantic-------------------.--. --
Total--------------------..................................
United States and Australasia:
Atlantic to Pacific--------------..........................
Pacific to AtlIntic.........--..-....--..............
T otal--------- - - - - - - - - -
Miscellaneous routes and sailings:
AtlantictoPacific-------------------..---..
Pacific to Atlantic.---...---.-....- ..............-
Total............................................

Total traffic, all routes:
Atlantic to Pacific---.-..-....-...........-. .- ---.
Pacific to Atlantic-- --.--.........- ..............-
Total.......-..................................-


Tons of cargo


3, 161, 530
7. 328. 534

10.490, 061

139, 747
1, 3y0, 7S6
1. 530,533


2,072, 511
818, 184
2, S90. 695


1931 1932 1933


2, 379, 751
6, 425, 624

R, 805. 375

124,605
1,901. N10

2, 026. 415


1, 360, 772
862, u.53
2,222.825


1,917,052
4,705,932
6, 622,984

69. 926
2, 109, 790
2,179,716


1,714,725
851, 124
2, 565,849


1,595,087
4,831, 521
6,426,608

70,573
2, 788, 173

2, 858,746


1,323.003
1,077,734

2,400. 737


f6C, 479 425,34.3 334, 160 249.966
3, 319,42S 2,729,347 1,834,090 1,700,808

4,017,907 3, 154, 690 2, 168, 250 1,950,774

881,666 503, 566 206. 908 164,695
1,934,744 1.. 804, 191 1.532,204 1,368,234

2,816,410 2,.307.757 1.739,112 1,532,929

604. 265 441. 470 286,740 235,075
594,930 671,843 422,227 295.896

1, 199, 195 1, 113.313 708,967 530,971

100,731 124,755 127,576 63,798
96,181 135,478 395, 843 349,938

196,912 260,233 523,419 413,736

378,101 252,363 116,638 44.474
3,144,475 2,105,298 1,001,749 294, 076

3, 522, 576 2. 357, 661 1,118, 387 338,550

422,839 202.311 187,393 164. 215
23S.S03 166.648 81.501 18,552

661,642 368,959 268,894 182,767


1,015,856
1, 68S, 442
2, 704, 298

9,475, 725
20,554, 507

30,030, 232


865,493
1,600,079
2, 465,572

6,680,429
18,402,371

25,082,800


674,240
1,238,180

1,912,420

5,635,358
14, 172,640

19,807,998


601,003
940,907
1,541,910

4,511,889
13,665,839
18,177,728


I -






REPORT OF GOVERNOR OF THE PANAMA CANAL


Of the total cargo of 18,177,728 tons passing through the Canal in
the past fiscal year, 4,511,889 tons, or 24.8 per cent, were routed from
the Atlantic to the Pacific, and 13,665,839 tons, or 75.2 percent, from
the Pacific to the Atlantic. In comparison with the previous fiscal
year, total cargo tonnage registered a decline of 1,630,270 tons, or 8.2
percent; the Atlantic to Pacific movement made a decrease of
1,123,469 tons, or 19.9 percent, while in the opposite direction the
decrease was 506,801 tons, or 3.6 percent. On the nine principal trade
routes listed above, but one-that between Europe and Canada-
showed an increase in the combined movement in comparison with the
previous year, although two-the United States intercostal and that
between the United States and the Far East-showed increases in
one direction, both in the movement from the Pacific to the Atlantic.

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 subminitted 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 the 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 aggre-
gate tonnage reported during the year and shown in the annual sum-
mary. Subject to errors arising from this source the tonnage of the
principal commodities shipped through the Canal during the past
4 years is shown in the following table:

Commodity movement
Fiscal year ended June 30-
Commodity -------------
1930 1931 1932 1933
ATLANTIC TO PACIFIC Lonu tons Lone tons Long tons Lona tons
M manufactures of iron ini scteel......................... 2,128,712 1.230.091 781,494 502,503
Cotton, raw............................................ 248,345 298,877 747,496 432,043
M ineral oils............................................ 682,742 4q5. 520 518,498 407,492
Scrap metal............................................ 196,676 4fi,004 87,657 273.375
Paper .................................................. 259,314 202,478 204,297 214.568
Phosphates............................................ 435.9194 312,925 239, 206 15.4.145
Sulphur................................................ 215,. '.1I 190.690 1i7,941 149,790
Corn................................................... 21.754 2,874 59.987 12X.331
Tinplate........ ...... ........................ 294,382 224. 291 14. 852 J108os,500
Canned goods (fish, fruit, vegetables, etc )...-........... 120,373 100,311 117, .57 101,751
Coal and coke .----... .....-.--- --...-.- ...- ..-.- .... 224,439 122. 179 95,199 85, 548
Textiles...............................................---------------------------------------- 120.750 94,2.54 83,756 78,555
Cement---.--------.. ------.-----..............------......---------- 412,347 20.. 483 76 ,s70 69, 105
Tobacco-- ..... ......-----------------------....------.------- 118,322 116.946 65, 806 67,M48
Chemicals.---------------------------------------.......................................... 82,417 66.690 72,436 64,072
Machinery............................................. --------------------------------------180,805 139.928 78,656 54,781







16 REPORT OF GOVERNOR OF THE PANAMA CANAL

Commodity movement-Continued


Fiscal year ended June 30-
Commodity ----------- --
1930 1931 1932 1933

ATLANTIC TO PACIFIC-Continued Long tons Long tons Long tons Long tons
Coffee.................................................. 60,103 79,382 61,241 54,491
Automobiles (exclusive of accessories).................. -----------------203,089 104,002 66,673 50,731
Asphalt and tar........................................ -----------------------------------109.933 74,962 60,286 47,748
Glass and glassware--------------------------------........................... 68,062 47,100 44,911 47,374
Sugar...............................------------------------------------------- 101,150 87,436 58,671 40,256
Automobile accessories................................. ------------------------------84,213 51, 768 39,367 35,237
Ammonium compounds----------------------------................................ 153,437 79,100 71,933 35,002
Metals, various........................................ ------------------------------------97,313 59,106 42,830 30,662
Salt................... ---------------------------------------------...... 54,327 56,002 36,855 30,263
Railroad material...................................... ---------------------------------194,578 77,838 26,731 18,265
Creosote........................ ........----------------------------------------.. 64,844 31,662 38,482 15,315
Slag.................................................... --------------------------------------------66,945 71,627 38,547 14,225
Agricultural implements............................... 51,517 28,289 12,956 11,567
All other............................................... --------------------------------------2,423.011 1,879,714 1,459,807 1,188,.646
Total.-------------------------------------......................................... 9,475,725 6,680,429 5,635,358 4,511,.889
PACIFIC TO ATLANTIC
Mineral oils.-------------------------------------.......................................... 5,700.587 4,824.338 3,116,.844 3,506,356
Wheat................................................ ----------------------------------------1, 503,035 1, 862, 147 1,790,530 2,368,892
Sugar....................... .................------------------------------------------ 920,399 1,033,013 1,298,830 1,667,496
Lumber--------.......................... ............------------------------------- 3,530.879 2,747,485 2,129,787 1,549,483
Canned goods (fish, fruit, vegetables, etc )..------..----- 806.365 876.644 787,736 865,710
Metals, various6...................................... -66,057 557,498 472,560 376.396
Fruit dried--------------------------------------........................................... 206,834 282,791 340,.851 314,061
Fruit fresh............................................. ---------------------------------------144,880 286,049 256,563 285,523
Barley................................................ ------------------------------------------275,064 235,364 153,206 209.890
Nitrate-----------------------------------------............................................. 1,910,793 1,375,450 811,522 186,783
Flour............ ------------------------------------------- 103,486 146,640 123,964 180,858
Food products in cold storage I -------------------------....................... 335,061 384,526 248,874 162,143
Coffee.................................................. ------------------------------------------102, 646 149,215 125,228 152,735
Wood pulp.............................. .--------------------------------------... 108,861 109,163 147,541 106,329
Beans.................................................. ------------------------------------------112,679 171,335 172,526 103.522
Paper....................... ....------------------------------------------ 101,422 114,301 116,103 98,997
Wool--------------------------------------------................................................ 145,071 157,129 101,147 97,852
Ores 2.................................................. -----------------------------------------2,229,470 1,436.792 618,368 90,518
Copra------------------------------------------................................................. 109,172 113,587 79,471 80,789
Oats................................................... --------------------------------------------21, 123 92,812 108,089 79,.898
Borax......................................------------------------------------------- 91,921 70,913 75,463 66,205
Cotton, raw............................................ --------------------------------------103,408 95,622 62,005 64,931
Guano................................................. ------------------------------------------33,210 19,070 17,505 59,688
Coconut oil............................................ ---------------------------------------95, 034 76,971 83,631 54,213
Skins and hides........................................ -----------------------------------64,449 66,975 53,619 52,509
Rice................................................... --------------------------------------------89,795 116,330 53,924 34,267
All other-.............................................. --------------------------------------1,043,256 1,000,211 826,753 849,789
Total............................................ ------------------------------------20,554,507 18,402,371 14,172,640 13,665,839

SDoes not include fresh fruit. 2 Principally iron in 1930, 1931, and 1932.


CLASSIFICATION OF VESSELS


Of the 4,494 commercial vessels transiting the Canal during the
fiscal year, 2,695 were steamers, 1,527 were motorships, and the remain-
ing 272 were chiefly motor schooners. For the past 5 years the
proportions of these classes have been as follows:


1929 1930 1931 1932 1933

Percent Percent Percent Percent Percent
Steamers---------...........-----..-------------------------.................... 80.2 76.8 71.1 66.3 60.0
Motorships----------------.. --------------------- 19.3 22.8 28.4 32.1 34.0
Miscellaneous----------.. ----.. ----------------------... .5 .4 .5 1.6 6.0
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 motorships
in the traffic through the Canal has been increasing from year to year.
The actual numbers of transits of motorships in the past 5 years have
been as follows: 1929, 1,240; 1930, 1,411; 1931, 1,571; 1932, 1,444;
and 1933, 1,527. The heavy relative increase in the proportion of
miscellaneous craft in 1933 was due to the heavy traffic of banana
schooners plying between the west coast of the Republic of Panama
and Cristobal.
Of the 2,695 steamers transiting the Canal during the past fiscal
year, 1,902 burned oil, 732 burned coal, and 61 were reported as
fitted for eitliher fuel. For the past 5 years the proportions of each
class have been as follows:


1929 1930 1931 1932 1933

Percent Percent Percent Percent Percent
Oil burning-------------------------------------- 64.0 72.2 72.8 76.1 70.6
Coalburning-- ------------------....... --------------- 34.7 26.4 25.6 22.1 27.2
Eitheroilorcoal-------------.--------------------- 1.3 1.4 1.6 1.8 2.2
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 1933 by laden ships, those in ballast, and tolls-paying
vessels which are not of the cargo type, is as follows:


Al1antic to Pacific Pacific to Atlantic

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

Cargo-carrying ships;
Tank ships-
Ballast.................... 279 1,727,715 $1,243,954.80 10 34,876 $25,110.72
Laden.................... 43 204,014 213,498.95 304 1,842,179 1,910,746.55
All others:
Ballist................... 433 1,702,900 1,218,347.18 15 20.504 14,644.15
Ladlen..................... 1,568 8,472,861 7,303,656.10 1,786 8,803.422 7,656,814.95
Noncargo-carryinrig ships:
Yachts....... ................ 24 4,440 3,257.79 14 3,796 2,761.80
Naval.............. ..... ..... .) ............ 12,330 00 6 ------------ 10,967.00
Tugs.. ......................... 3 174 63.75 ........ ............ ..............-
Cable ships......... ...... 2 4.268 3,781.35 1 346 249.12
All other........... . .................................. 1 381 274.32
Total.................... 2,357 12,110,372 9,998,889.02 2,137 10. 705.504 09.621, 503.61







15 REPORT OF GOVERNOR OF THE PANAMA CANAL


Further details of the commercial traffic during the fiscal year
1933 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:


Classification


Tank ships, laden.
Number of transits..........----------....................
Panama Canal net tonnage..-...................
T olls...............................................
Cargo, tons.................................
Tank ships, ballast:
Number of transits.................................
Panama Canal net tonnage.--- -.........---- ..
Tolls ..............................................
General cargo ships, laden:
Num ber of transits.................................
Panama Canal net tonnage........................
T olls ...............................................
Cargo. tons...... ....................... ...........
General cargo.ships, ballast:
Number of transits.................................
Panama Canal net tonnage .........................
T olls..... ... ....... ........................... .
Noncargo-carrying ships:
Yachts:
Number of transits -.-.....---................-.
Panama Canal net tonnage.....---....-.......-
T olls ...................................... ...
Naval vessels.
Num ber of Iransits.............................
Displacement tonnage..........................
T olls......................................--
Tugs:
Number of transits.............................
Panama Canal net tonnage..............
Tolls...........................................
Cable ships;
Number of transits.............................
Panama Canal net tonnage.--..--.-..----------
Tolls......................................... .
Exploration ships:
Number of ships.....-..........................
Panama Canal net tonnage..----.-..............
Tolls..........................................

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...-.....................
T olls ............................................
Total tank ships:
Number of transits.................................
Panama Canal net tonnage-------------------.........................
Tolls .............--....... ..........................
Cr.rgo, tonns.........................................
Total general cargo ships:
Number of transits.................................
Panama Canal net tonnage...-.....................
Tolls.. . ... ....................................
Cargo, Ions.........................................
Total noncargn-carrying ships:
Num ber of transits.................................
Panama Canal net tonnage...................
Displacement tonnage.............................
T olls.. ........... .... ...........................-
Grand totals:
Number of transit ...--.....-----....................
Panama Canal net tonnage.........................
Displacement tonnage....-.........................
Tolls..............................................
Cargo, tons.........................................


Atlantic to
Pacific


43
204 014
$213.498.95
271,399
279
1.727,715
$1.243,954.80
1,568
8, 472, 861
$7,303,656. 10
4,240,490
433
1,702,900
$1.218,347.18

24
4,440
$3,257.79
5
24,660
$12,330.00
3
174
$63.75
2
4, 268
$3.781.35


1,611
8.676. 875
$7,517,155.05
4,511,889
712
3.,430,615
$2,462,301.98
322
1,931.729
$1,457.453.75
271.399
2.001
10,175.761
$8,522.003. 28
4,240.490
34
8.882
24.610
$19,432.89

2,357
12,116,.372
24,660
$9,998,889.92
4,511,889


Pacific to
Atlantic


304
1, R42,179
$1.010.740.55
3,.536,668
10
34.876
$25,110.72
1,786
8,803,422
$7.656,814.95
10, 129,171
15
20,504
$14,644.15

14
3,796
$2,761.80
6
21.934
$10,967.00
................
................
................

1
346
$249. 12
1
381
$274.32



2.090
10, 645, 601
$9,567.561. 50
13,665,839
25
55,380
$39, 754.87
314
1,877.055
$1,935.857.27
3,536,668
1,801
8, 823, 926
$7,671.4459.10
10,129,171
22
4,523
21,934
$14,252.24
2,137
10,705,504
21.934
$9.,621,568.61
13,665.839


Total


347
2,048,1983
$2,124,245.50
3,808,067
289
1,762.591
$1.269,065.52
3.,354
17.276,.283
$14,960,471.05
14,369,661
448
1,723 404
$1. 232, 991.33

38
& 8.236
$6,019.59
11
46.594
$23,297.00
3
174
$63.75
3
4,614
$4,030.47
1
381
$274.32



3.701
19,322,476
$17.084,716.55
18,177,728
737
3,485,995
$2,.502,056.85
636
3.808.784
$3,393.311.02
3.808,067
3,802
18,999,687
$16,.193,462.38
14,369.661
b6
13.405
46.594
$33.685.13

4.494
22,821,876
46.594
$19,620,458.53
18,177,728






REPORT OF GOVERNOR OF THE PANAMA CANAL 19

AVERAGE TONNAGE, TOLLS, AND TONS OF CARGO PER CARGO-
CARRYING VESSELS

The average measurement tonnage, tolls, and tons of cargo per
cargo-carrying vessels transiting the Canal during the past 3 years
are shown in the following tabulation:

Fiscal year Fiscal year Fiscal year
1931 1932 1933

Measured tonnage-
Panarrma Canal net--------------- ------------------------- 5.079 5,298 5,139
United States net tonnage--..--------------- ----------------- 3,763 3,858 3,686
Regkitiered gross tonnage.- ------------------------ 6, 254 6,449 6,121
Registered net tonnage--------------.. ----------------------- 3,798 .1. MI 3,724
Tolls-------- -------- ------------------ -------------------- $4,491.85 $4,:63S y7 $4,413.43
Tons of cargo (including vessels in ballast) -.--------------------- -- 4,586 4,445 4,096
Tons of cargo (laden vessels only)---------------- ---------------- 5,407 5,154 4,912
NOTE.-Computations of above averaee" based on cargo-carrying vessels only; craft not engaged in
commerce, such as yachts, naval vessel-, etc are not considered.

As noted above, the average size of vessels transiting in the past
year made a decrease in comparison with the previous fiscal year.
As pointed out previously in this report, this was due to the heavy
traffic of banana schooners of small tonnage plying between the
west coast of Panama and Cristobal. The decrease in the average
net tonnage, Panama Canal measurement, in comparison with
1932 was 3 percent, while the loss in the average net tonnage, United
States measurement, was 4.5 percent.
The average cargo per vessel transiting (including in the total
the vessels which made the transit in ballast) decreased in the fiscal
year 1933 to the extent of 7.9 percent in comparison with the preced-
ing year, and 10.7 percent in comparison with 1931. Considering
the laden vessels only, the average cargo per vessel decreased in
1933 by 4.7 percent of the average in 1932, and by 9.2 percent of
the average in 1931.

SUMMARY OF PASSENGER MOVEMENT AT THE CANAL DURING
1933

During the fiscal year 1933 the number of passengers disembarking
at Canal Zone ports in termination of voyage aggregated 26,012,
and the number embarking, or beginning a voyage during the same
period, totaled 28,314. Approximately 54 percent of the arrivals
and 51 percent of the departures were carried as first-class, and
the remainder as second, tourist, third, or steerage. The figures
do not include passengers merely calling at the Canal, that is, arriv-
ing and departing on the same ships.
The following tabulation shows by months the number of pas-
sengers disembarking and embarking at Canal Zone ports during






20 REPORT OF GOVERNOR OF THE PANAMA CANAL

the fiscal year 1933, segregated as between first-class and "others",
with comparative totals for the fiscal years 1932 and 1931:

Disembarking Embarking
Month
First- Others Total First Others Total
class class

July. .--------------------------------------.................................... 1,444 773 2.217 1,862 1,000 2,862
Auguit-----------------------------------.................................... 1, 352 790 2, 142 1,338 1,204 2,542
September.-------...----.--..............------------------- 1.519 1,093 2,612 l,265 901 2,166
October-------------------------------................................... 1,177 S81 2,058 866 1,169 2,035
November-----------------------------................................ 1,311 1,340 2.651 919 1,004 1,923
December-----------------------------................................. 1,192 1,795 2.9S7 962 1,650 2,612
January---------------------------------...................................-- 025 642 1,567 861 840 1,701
February.---------------------------------................................ 1,073 622 1,695 1,025 950 1,075
Mareb.................................... ---------------------------------57 1,092 2,040 1,154 1,331 2,485
April...................................... -------------------------------------1,021 1,412 2,433 1.372 1,440 2,812
May...................................... --------------------------------------4 714 1,598 1,329 1,049 2.378
June..------------.----...---------------------............. 1, 29S 705 2, 003 1,492 1,331 2,823
Total, 1933.......................... --------------------------14, 153 11. 89 26,012 14,445 13,869 28, 314
Total, 1932.......................... --------------------------17.776 14,703 32,479 16,S03 13,689 30,492
Total, 1931.......................... --------------------------21.043 15,324 30,367 19,580 18,032 37,612


As compared with 1932, the fiscal year 1933 shows a 19.9 percent
decrease in the number of arrivals, and in comparison with 1931 a
33.9 percent decrease; in the number of departures there was a
decrease of 7.1 percent under 1932 and 24.7 percent under 1931.
For many years the greater part of handling both cargo and
passengers for the Isthmus has been through the port of Cristobal,
at the Atlantic terminus of the Canal and Panama Railroad. The
following table shows the passenger traffic through Cristobal and
through Balboa in the past 3 years, and it is seen that about 70 percent
of it has been through Cristobal:

Port of Cristobal Port of Balboa

1931 1932 1933 1931 1932 1933

Passengers disembarking.----------------.....- 28,312 22,658 17,583 11,055 9,821 8,429
Passengers embarking --------..................... 26,658 22,147 19,444 10,954 8,345 8,870


A further segregation of the passenger movement shows that
19,651 incoming and 20,973 outgoing passengers were brought from
or were destined to ports on the Atlantic, and 6,361 incoming and
7,341 outgoing passengers were brought from or were destined to
ports on the Pacific.
In addition to the figures shown above of passengers disembarking
and embarking, there were 95,628 transient passengers brought to
the Isthmus by vessels calling at Canal ports during the fiscal year
1933. For the fiscal year 1932, this number was 91,844, and in the
fiscal year 1931, 100,226. The number in 1933 increased 3,784, or
4.1 percent, in comparison with those in 1932, but showed a decrease






REPORT OF GOVERNOR OF THE PANAMA CANAL


of 4,598, or 4.6 percent, under 1931. Most of these passengers came
ashore for a short period but as they departed on the vessel on which
they arrived they are not included in the tabulation of passengers
ending or beginning a voyage at the Isthmus. The origin and
destination of these transient passengers are indicated in the following
tabulation:

Total Fiscal year 1933

1931 1932 Cristobal Balboa Total

Remaining on board vessels transiting Canal:
iN Atlantic to Pacific-----------------..---.------ 42,466 35,924 38,963 -----.---- 38,963
Pacific to Atlantic---------------------------- 33,644 31,392 ----------..... 29,873 29,873
Remaining on board vessels entering port but not
transition Canal:
At Ian tic to Atlantic ports---------------------- 22,408 23,528 25,510 ---.------- 25,510
Pacific to Pacific ports ---.----.---.---...-----------.. 1,708 1,000--.----- 1,282 1,282
Total-..---.-------------.----------------- 100,226 91,844 64,473 31,155 95,628
NOTE.-In passengers "remaining on board vessels transiting Canal", those from the Atlantic to the
Pacific are taken up at Cristobal, and those from the Pacific to the Atlantic at Balboa, i.e., at the port of
arrival from sea, and not again at the other terminus of the Canal.
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 the limitation that the amount collectible shall not exceed $1.25
per net ton nor be less than $0.75 per net ton as determined under
the rules of measurement for registry in the United States.
The Panama Canal rules of measurement determine the net tonnage
as the interior spaces of actual earning capacity, in tons of 100 cubic
feet. The United States rules for measurement for registry exempt
from inclusion in the net tonnage many spaces which have actual
earning capacity. The result of this is, generally, that tolls on laden
vessels transiting the Canal are usually paid on the basis of $1.25
times the United States net tonnage, and 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 measurement sometimes indicates
negative net tonnage, and such vessels make the transit without pay-
ment of tolls.






22 REPORT OF GOVERNOR OF THE PANAMA CANAL

Registry rules were not designed as a suitable basis for the collection
of Canal tolls and their application to the Panama Canal tolls has
resulted in misunderstandings, inequalities, injustices, and depriving
the Government of proper revenue. The Canal administration has
recommended the use of the Canal rules only and, in order that
approximately the same general level of tolls may be charged as
under the present system, has recommended that if the Canal rules
alone be used the rates should be set at approximately $1 per net ton
for laden vessels and 40 percent less, or 60 cents, for vessels in ballast.
When this suggestion was first made it would have meant a slight
decrease in the tolls collected. In later years, however, due to the
reduction of the net tonnage of vessels as measured under the United
States registry rules, adoption of the proposed Canal rules and rates
would have meant an increase in the total tolls. Some vessels would
pay more, some less than at present, in proportion to the undercharges
or overcharges under the present dual system. The opposition of
operators of vessels which would pay more has prevented the passage
of corrective legislation. The need for such legislation is discussed
in more detail in section III, under Administrative Problems.
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 7 fiscal years:
UNITED STATES VESSELS ONLY

Tolls which Increase
would have
Fiscal year Tolls aetly been collected
collected on proposed Actual Percent
basis

1927----------------------------------------- $12,720,447.-95 $12, 601, C22.60 1 $118,825.35 20.93
1928------------.----------------------------- 12,645,880.20 12. 662. 378.60 10,498.40 .13
1929------------------------------------------ 12.299,584.70 12. 471. 487.00 171, 902.30 1.40
1930----------------------------------------- 13,220.662.70 13, 537, 324.60 316,661.90 2.40
1931------------------------------------------ 11.425,999.31 11, 883,318.60 457.319.29 4.00
1932....----------------------------------------- 9,749,018.51 10,411.572.20 662, 553.69 6.80
1933.--------------------- -------------------- 8,933,850.79 9,670,737.20 736,886.41 8.25

ALL VESSELS OTHER THAN UNITED STATES

1927-------------....-----------------....----------............ $11,508,382.16 $11.720,617.30 $212,.235.14 1.84
1928............................................ -----------------------------------------14, 29s, 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
1933............................................ -----------------------------------------10,686,607.74 11,776,211.80 1,089,604.06 10.20

I Decrease.





REPORT OF GOVERNOR OF THE PANAMA CANAL


The tolls paid by the vessels of various nationalities using the Canal
during the fiscal year 1933 are shown in the following table, in com-
parison with the tolls which they would have paid on the proposed
basis of $1 per Canal net ton for laden ships and 60 cents for vessels
in ballast. In this table the traffic has been segregated to show gen-
eral 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 average per Panama Canal net ton of the tolls which were actually
collected on laden and ballast traffic for the various nationalities.
It will be noted from the table that the average tolls on laden ves-
sels, adding all kinds of traffic together, ranged between 76.9 cents
(on Swedishli vessels) and $1.261 (on Peruvian vessels), a difference of
49.2 cents. For vessels in ballast there was an instance of Russian
whaling tugs, in which the tolls averaged 36.6 cents per Canal net
ton, but for the rest of the traffic the ballast charges ranged between
71 and 73.7 cents.
Among the vessels of the six nationalities represented in greatest
volume in the traffic during the year (United States, British, Norwe-
gian, Japanese, German, and Danish) the lowest average per Canal
net ton on total laden vessels was 80.8 cents, on Norwegian ships, and
the highest was 99.2 cents on Japanese vessels, a difference of 18.4
cents.
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, i.e., on their earning capacity. The table follows.









REPORT OF GOVERNOR OF THE PANAMA CANAL


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REPORT OF GOVERNOR OF THE PANAMA CANAL


HOURS OF OPERATION
Dispatching of ships through the Canal is conducted on schedules.
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
thereafter 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 about 3:30 p.m.;
from Balboa anchorage, first ship at 6 a.m., last at 2:30 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 about 3 p.m. from Balbon
and 3:45 p.m. from Cristobal.

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 8:45 p.m. or
from Balboa anchorage up to 5:30 p.m. 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
Mfiguel at 6 a.m., 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 2 to 3 hours. When traffic is heavy it is impracticable 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 permitted to proceed unless
they can clear Gaillard Cut before dark. Overloaded tankers carrying
gasoline cargo are usually restricted to schedules, leaving at 6, 6:30,
and 7 a.m., 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 dis-
sipated by 8 o'clock in the morning.
18444-33--3







ZO REPORT OF GOVERNOR OF THE PANAMA CANAL

LOCKAGES AND LOCK MAINTENANCE

Lockages and vessels handled, by months, during 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 5 fiscal years.

Glaun Pedro Miguel Miraflores Total
Month ----
Lockages Vessels Lockages Vessels Lockages Vessels Lockages Vessels

1932
July.......................... ------------------------- 325 388 350 413 349 413 1,024 1,214
August....................... 320 365 336 386 339 389 995 1,140
September....-------------------.... 352 404 367 420 370 455 1,089 1,279
October -------------..--------- 389 469 400 486 396 489 1,185 1,444
November..-------------------................. 390 454 405 474 409 493 1,204 1,421
December.................... -------------------- 404 504 426 539 421 552 1,251 1,595
1933
January...................... 382 471 401 i 511 392 510 1,175 1,492
February.................... 354 438 361 425 351 429 1,066 1,292
March....................... 386 482 402 479 396 487 1,184 1,448
April..--........-..--............. 372 485 383 511 369 496 1,124 1,492
May......................... 357 447 367 4i7 359 452 1,083 1,366
June......................... 349 427 359 425 354 421 1,062 1,273
Total.................. 4,380 5,334 4, .57 5,.536 4,505 5.586 13,442 16,456
Fiscal year-
1928...................... 6,314 7,406 6.642 7.811 6,577 7,804 19,533 23,021
1929.-..--..............-----------------. 6,289 7,428 6,473 7.994 6,325 7.934 19,087 23.356
1930...................... 6.135 7. 164 6,436 7,430 6.,338 7,431 18, 909 22,025
1931.....-..-.---.- ....- 5.571 6,477 5,824 6,667 5,783 6,651 17,178 19,795
1932...................... 4.615 5.3419 4,842 5,576 4,826 5,575 14,283 16.500


In the fiscal year 1933 the average numbers of lockages per day
were as follows: Gatun, 12.00; Pedro Miguel, 12.48; Miraflores, 12.35.
The total number of lockages at all locks in the past year was
13,442, as compared with 14,283 in 1932 and 17,178 in 1931. The
decrease during the past year was 841 or 6.88 percent.
Thle number of vessels locked per lockage in the fiscal year 1933
averaged as follows: Gatun, 1.218; Pedro Miguel, 1.214; Miraflores,
1.240. The average for the total of 13,442 lockages was 1.224 vessels.
Beginning July 1, 1932, the number of operating shifts at Gatun
anrid Miraflores was reduced from 4 to 3 and at Pedro Miguel from
3 to 2. The hours of the operating shifts at the various locks until
the start of the overhaul at the Pacific Locks in January 1933 were
as follows:

(Gatun Pedro Mipuel Miraflores
I shift.............. 7 a.m. to 3 p.m ....... ..... 7:45 a.m. to 3:45 p.m ......... 6:50 a m. to 2:50 p.m .
Do............. 9:30 a.m to 5.30 p.m .... ... .............................. 9:30 a.m to 5:30 p.m .
Do ............. 3 p.m to 11 p.m ....... 1 1:10 p.m. to 9:10 p.m ........ 2:40 p.m. to 10:40 p.m.

Effective in January during the overhaul of Miraflores Locks the
shifts were as follows:

Gatun Pedro Miguel Miraflores
I shift.......................... 7 a.m. to 3 D.m.......... 7 a.m. to 3 p.m .......... 7a.m. to3 p.m .
Do ....--.............---- ........ ...do.... ------------------------ 3 p.m. to 11 p.m.
Do..----------....-----------.. 3 p.m. to 1I p.j--------......... 3 p m. to 11 p.m.. ....... 11 p.m. to 7 a.m.






REPORT OF GOVERNOR OF THE PANAMA CANAL


During this period a tie-up gang was also on duty at Pedro Miguel
from 11 p.m. to 7 a.mi. On February 22 the shifts were changed at
Gatin so as to have the second shift on duty from 9:30 .i.m. to 5:3X.
p.m., the normal hours.
At the start of the overhaul of Pedro Miguel Locks the hours of the
operating shifts at Mirnaflores were changed back to: One shift, 7 a.m.
to 3 p.m.; one shift, 9:30 a.m. to 5:30 p.m.; one shift, 3 p.m. to 11 p.m.
At completion of overlihaul at Pedro Miguel the hours of the oper-
ating Ihifts were changed back to normal: 7:45 a.m. to 3:45 p.m. and
1:10 p.m. to 9:10 p.m. The night tie-up gang was discontinued at
the start of Pedro Miguel overhaul.
All operating shifts are equipped to handle an 8-locomotive lockage.
There were 29 delays in lockages at Gatun Locks from 3 to 70
minutes due to faulty operation or failure of equipment. The
most serious damage to a ship during lockages was to the steainship
Californ-nia, which hit the knuckle of the wing wall on April 18, cn using
damages estimated at $2,000, for which the Panama Canal was hlield
responsible.
On November 8 the steamship Gregalia, northbound, when miaking-
the approach to the east chamber at Gatun Locks to tie up, struck
the chain fender, which functioned properly and stopped the ship
without. damage to it. A few links of the chain were slightly bent.
The chain was pulled out a distance of 44 links from the side wall
machine and 19 links from the center wall machine.
At Pedro Miguel Locks there were 17 delays to lockages from 4
to 40 minutes due to faulty operation or failure of equipment. There
were three power failures originating outside the locks.
At Miraflores Locks there were 26 delays to lockages from 2 to 50
minutes due to faulty operation or failure of equipment. There
were four power failures originating outside the locks.
On account of flood conditions on Gatun Lake on November S28
and 29 the lock culverts at Gatun and Pedro Miguel were used to
assist Gn tun Spillway in discharging the excess water. Traffic was
suspended during these operations. MAliraflores Spillway WIas used to
discharge the surplus water entering Miraflores Lake.
On October 21, 1932, excessive rainfall in the vicinity of the Pacific
Locks caused a high level on Miraflores Lake, and Is a result of
attempting to handle the excess water over Mirnflores Spillway with-
out delaying lockages, the high lake level, combined with urges, re-
sulted in the entrance of water into thlie upper miter gate rooms at
Miraflores and lower guard gate rooms; at Pedro Miguel. No perma-
nent damage was done.






REPORT OF GOVERNOR OF THE PANAMA CANAL


EMERGENCY DAM OPERATION

Monthly operations of all emergency dams were made except at
the Pacific Locks during the overhaul when a few of the operations
were omitted on account of traffic and overhaul work.
The east emergency dam at Pedro Miguel was tested on Novem-
ber 21 under full head with the drive pipes between the gates in
place to determine if the lock gates could all be opened so as to use
the emergency damn as an auxiliary spillway. It was proved that the
gates could all be opened, a few of the drive pipes were raised as a
unit and wicket gates were raised under head, allowing the water to
enter the lock chamber and be spilled through the culverts. Each
set of drive pipes has been assembled as a unit and can be lowered
by a hoist into position and raised by the hoist with the assistance
of a towing locomotive. Suitable anchorages have been designed to
assist in holding the gates in the open position without surging in
case the emergency dam should have to be used as a spillway. The
anchorages are now being installed on all the gates in thle east
chamber at Pedro Miguel.

PACIFIC LOCKS OVERHAUL

The quadrennial overhaul of the Pacific Locks started in the after-
noon of January 3, when unwatering the west chamber at Miraflores
was begun. The work was completed on June 9, when the caisson
was floated after the completion of the work at Pedro Miguel. This
was 10 days later than the estimated date of completion, May 29.
The elapsed time was 110 days at Miraflores, 47 at Pedro Miguel, a
total of 157 days. Two full shifts, from 7 a.m. to 3 p.m., and from
3 to 11 p.m., were engaged in the general overhaul and at Miraflores
a third shift, from 11 p.m. to 7 a.m., was engaged in miter gate
work. The extra force totaled 134 gold employees and approximately
600 silver men, who were secured by transfer or by local employment
for temporary service.
One of the principal features of the overhaul, and one of the factors
determining the interval between overhauls, was the painting and
enameling of the lock miter gates and other under water metal which
must be protected from corrosion and rust. Another factor governing
the interval between overhauls is the limit of wear of the roller trains
on the rising stem valves which is reached in approximately four years.
Other principal features of the overhaul, as in previous overhauls,
were the reconditioning and adjustment of rising stem valves and
guard valves, cylindrical valves, regulating valves, nonoperating
valves, auxiliary culvert valves, center wall culvert bulkheads, float
wells, and miter gates. The principal feature of the entire overhaul
was at Miraflores Locks where the main operating miter gates to the
upper lock, main gates between upper and lower lock, and lower






REPORT OF GOVERNOR OF THE PANAMA CANAL


main operating gates were jacked uip and rolled out and replaced
after renewal of hollow quoin, quoin and miter-bearing plates, and
renewal of upper yoke pin and bushings and pintles and bushings.
The upper pintle castings on some of the leaves showed indications
of movement and large bolts were installed. On all of these gates
the wood sills were replaced with concrete and new lower gate
fenders and seals were installed.
Tunnels were driven through the concrete separating the lower
guard gate sumps and the side wall culverts, and from the center
culvert to the west guard gate sumps at both Miraflores and Pedro
Miguel, and flanges were placed over the openings. This will permit
unwatering with the caisson without the use of the long suction pipes
to the first side wall lateral culverts, and will also permit the use of
any of the pumps after the locks are unwatered.
At all of the locks routine maintenance and repairs were performed
on machines and equipment. No major incidents or accidents due
to faulty equipment or faulty operation by the locks personnel
occurred during the year.
POWER FOR CANAL OPERATION
The power system was operated throughout the entire year with
an average combined generator output of 6,183,083 kilowatt-hours per
month, as compared with an average combined generator output of
5,477,583 kilowatt-hours per month for the preceding fiscal year. An
average of 5,702,812 kilowatt-hours per month was distributed from
substations during the fiscal year as compared with a corresponding
average of 5,060,929 kilowatt-hours per month for the preceding fiscal
year. Transmission and transformation loss was 7.78 percent for the
year as compared with a loss of 7.50 percent for the previous year.
The Gatuin lihydroelectrice station operated throughout the year, cL Iy-
ing the full load of the power system except at times of peak lond when
the Miraflores diesel-electric station cinme in on the line, and during
parts of March and April, when oiome of the generating equipment
at Gantuin was out of service for geiierail overhaul, at which time
the Mirnflores diesel-electric station assumined a con-idernble portion
of the load on the system, and during pinirts of April ind iMay,
when sonic reduction in operation of Gatun hydroelectric station iiwas
necessary for the conservation of water in Gatuin Lake. No inter-
ruptions to the service occurred at the Gatin station during the year.
The Miraflores diesel-electric station was maintained on a stand-by
and peak-load service during the year except for the times in March,
April, and May, when, as noted above, it wais required to assume
part of the load normally carried by the Gatun generating station.
Overhaul of the 21 main power transformers, in all power plants
and substations, begun in the preceding year, was completed. Seven
transformers were overhauled during the past year.






6U REPORT OF GOVERNOR OF THE PANAMA CANAL

Interruptions to the transmission-line service during the year to-
taled 13, from the following causes: Lightning, 3; equipment fail-
ures, 2; animals, 2; blasting wire on lines, 1; undetermined, 5.
Supervisory control equipment was received in the early part of
the year; was completely installed and put into operation during Sep-
tember 1932. This installation provides remote control of Summit
and Balboa substations from the Miraflores substation, and remote
control of Cristobal substation from Gatun hydroelectric station,
thereby eliminating operating personnel at the Balboa and Cristobal
substations and correcting difficulties at Summit substation which
resulted from not having any operating personnel at that substation.
By means of this remote control system the dispatchers at the control-
ling stations are able to perform all necessary switching operations at
the controlled substations, and the control equipment indicates
immediately by alarm and visually the occurrence of any abnormal
condition on the transmission lines or in the respective controlled
substation and also indicates exactly what part of the system
equipment is in trouble.
Work was started and is advancing favorably on several projects
which will eliminate from the power system the present Gatun sub-
station. Miscellaneous equipment was reclaimed from this station
for use in the new substation at Gatun and for the outdoor substation
and switching station at the Gatun hydroelectric station.
WATER SUPPLY
The inflow of water into Gatun Lake from all sources and the utili-
zation and losses of the water in the lake are summarized in the fol-
lowing 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 1932 and 1933, 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, fiscal Percent of total, fiscal
year year

1932 1933 1932 1933

Run-ofT above .\lh.ijuel.i.............. ... ...... ..... 9.J. 89.13 41.2 38.0
Yield from lan'! are.i helow Alh.ijufi.... ............. 95.61 101.05 41.2 43.1
Direct rainfall on lake surface- ----------------.-------- 40 84 44. 29 17.6 18.9
Total yield---..-------.--------------...........---------- 232 03 234.47 100.0 100.0
Evaporation from lake surface.-----------------.. ------. 20 sO 21.55 9.0 9.2
Gatun Lake lockages-...--.- ----------------------------.... 33 95 31.78 14.6 13.6
Hydroelectric power-------------.-------------------- 47.96 53.22 20.7 22.7
Spillway waste...1.................................. 119.80 136.83 51.6 58.4
Lo:k culvert discharge-.......-.......--.....---.............. 4.57 3.34 2.0 1.4
M municipal use. leakage, etc............................. 1.80 2.22 .8 .9
Total uses and losses-----------------..---------- 228.88 248.94 98.7 106.2
Increasein storage..................................... 3.15 ............ 1.3 ............
Decrease in storage............. .............................. -14.47 --...--......... -6.2
Total--.....---------------.-------.......---------------.... 232.03 234.47 100.0 100.0





REPORT OF GOVERNOR OF THE PANAMA CANAL


On the Chagres River 21 rises of 5 feet or more were recorded at
Alhajuela during the calendar year 1932; 18 were classed as freshets,
3 as floods. The most important flood in the year occurred on
November 27, 2S, and 29, with a crest on each day. The highest of
these crests occurred on November 2S, whlien the river reached an
elevation of 116.8 feet at the Alhajuela gaging station, with a flow
of 112,200 cubic feet per second; this crest was 25.8 feet above the
low-water level of 91 feet.
The maximum flond of record at Allihjuela, on December 26, 1909,
reached 121.0 feet, with a probable discharge of about 150,000 cubic
feet per second. In the greatest, Cliagres flood of which there is
knowledge but no precise record, the river is estimated to lihave reached
123.04 feet at Alhajuela, with a discharge of about 161,000 cubic feet
per second. In October 1923 the river reached 117.4 feet, and in
November 1931 a 2-crest flood reached a maximnium of 113.92 feet.
The maximum momnientary influ\ow into Gatun Lake from its entire
watershed during the flood of November 1932 is estimated at approx-
imately 350,000 cubic feet per second. The total amount of water
corning into the laIke, however, was less than in the floods of 1923
and 1931.
To handle the flood of November 27-30, 1932, the spillway of
Gatun Lake was operated for 675 gate-hours and lock culverts were
opened for 23 culvert-hours. The opening of the spillway gates was
equivalent to the opening of 1 gate for 28 days. The number of
gates open at oline time reached a maximum of 13 on November 28,
the first time that as many as 13 gates had been open simultaneously.
The force of the water removed 2 sections of handrailing on the
east abutment steps, several sections of railing on the west side of
the discharge apron, at the lower end, and 1 side plate from a
baffle pier. During this operation very little water entered the build-
ing of the hydroelectric station and witli improvements made since
operation it is believed that all 14 gates may be opened safely, as far
as the hydroelectric station is concerned.
The spillway operations during the year totaled 3,218 gate-lihours,
the equivalent of 1 gate open for 134 days. Twenty-one percent
of this operation was in handling thlie flood of Novemiber 27-29.

DRY SEASON
From a water-sujpply stirndploint the 1933 dry season began oni
January 14, 1933, and ended on N.Iy 2S, 1933, the total duration
being 135 days. This is 4 days longer than the 1932 dry season and
4 days longer than the average dry 'eain which begins about. De-
cember 29 and ends about May 8. Thie net yield of the OCitun Lake
watershed was 617 cubic feet per second, conipaired witlh a 210-yeai r
average of 835 cubic feet per second, or 2ii percent below tlie a erire.





REPORT OF GOVERNOR OF THE PANAMA CANAL


The total yield was 1,506 cubic feet per second, of which 67 percent
was furnished by the Chagres River. The lowest elevation of Gatun
Lake was 81.39 feet, on May 26. This is equal to the previous low
record, 81.39 feet, on May 24, 1926.
No effort was made to save water at the Canal locks or by operation
of the Miraflores Diesel plant, until near the close of the season,
when the continuing dry weather made such saving advisable.

MADDEN DAM PROJECT

Construction of the Madden Dam project was continued through-
out the year. The major part of the work was carried on by the
general contractor for the dam and appurtenant works, the W. E.
Callahan Construction Co. and Peterson, Shirley & Gunther. Ac-
cessory work was performed by contractors for clearing and for clay
stock pile. All work was performed under the direction of the gov-
ernment's designing, supervisory and inspectional force embraced in
the Madden Dam division; and some clearing was done in April by
government forces, burning debris left from last year's clearing.

FORCE EMPLOYED

The average force employed is tabulated:

Average by months i On June 30, 1933

Gold Silver Total Gold Silver Total

U.S. Government........................ 62.5 160.4 222.9 75 144 219
Coniraciors for dam....................... 232.3 558.2 790.5 186 514 700
Contractors for clearing, etc............... 5.1 265.5 270.5 1 162 163
Total----------------------------............................... 299. S 94. 1 1.283.9 262 820 1,082

The contractor's force reached its peak for the year during April,
when 994 silver and 285 gold were at work.
The original estimate of cost for the work on the dam under con-
tract, based on studies made in Denver and the contract entered into
on September 14, 1931, was $4,048,657. Due to increased quantities,
principally in foundation rock excavation with its consequent in-
creased concrete yardage and in drilling and grouting, this estimate
has been revised to $4,507,000.
A board of consulting engineers for the government, consisting of
Dr. Elwood Mead, Messrs. J. L. Savage, S. 0. Harper, and L. M.
McClellan, inspected the various features of the work from Septem-
ber 30 to October 7, 1932, and reported on operations to that date
and also furnished recommendations for continuing.
Dr. C. P. Berkey, consulting engineering geologist, and Mr. J. L.
Savage, chief designing engineer for the bureau of reclamation, visited






REPORT OF GOVERNOR OF THE PANAMA CANAL


the work from May 14 to 19, with the specific purpose of investi-
gating the foundation conditions on the right abutment. During
their stay they investigated all of the various features of the work,
and reported on their findings.
A flood of major proportions started on November 27 and listed
3 days. It reached its maximum at the dami site at 3:30 p.m. No-
vember 28, with a velocity of flow of 12 miles per hour, a rate of
112,200 cubic feet per second, and a crest height of 121.5 feet at the
dam. It overflowed the cofferdam protecting the excavation for
the dam, but in anticipation of the rise the contractor h;id moved
his equipment to higher ground and had flooded the cofferdan so that
no damage was caused to the work and very little to his equipment
at the dam site. The principal damage occurred to the gravel re-
claiming and loading plant, where about 2,800 feet of cable were lost
and railway tracks and roadway were washed out. At the dam site
the levee was broken, the suspension foot bride and various pieces
of equipment and material were lost and some of the excavation was
partly filled up again. Concreting operations were resumed on
December 2 on a reduced scale owing to the necessity of trucking
aggregates to the screening and washing plant, pending the reestab-
lishment of the delivery by cablew\ay.

EXCAVATION

Excavation was begun on the right abutment during July 1932
and continued during the year. Due to the character of the rock
disclosed by the operations, it wis found necessary to extend the
excavation into the base of the cliff about 40 feet further than
originally planned, involving an increase of about 10,000 cubic yards.
While the excavation for the training wall and upstream apron
disclosed satisfactory rock, overhanging rock masses on the side of
the cliff were so unstable that their removal was ordered. This re-
quired taking out approximately 1,500 cubic yards of common and
19,000 cubic yards of rock. This material was practically all re-
moved by February 1, 1933. Excavation on the left abutment pre-
sented no unusual features. It consisted in completing the excava-
tion of blocks 16, 17, 18, and 19 and the counterforted wall, which
had previously been roughed out. Some of the material was placed
upstream from the dam, I)but most of it was placed along the power-
house road in dump no. 2. The work was completed by the end of
August 1932. Excavation for the base of the dam (blocks 4 to 1.5,
inclusive) had been started before the beginning of the fiscal year by
the removal of part of thie comnoin within the levee and a small
amount of rock in block 15. Thle removal of the common was con-
tinued through July and August with a Monighian walking dragline






REPORT OF GOVERNOR OF THE PANAMA CANAL


excavator equipped with a 2j-yard bucket, and digging mostly under
water. Early in September, the cofferdam was unwatered, after
which the excavation was continued in the dry, but by the same
methods. The spoil was removed in center-dump wagons on cater-
pillar treads hauled by tractors. Excavation after diversion of the
river in January was conducted with the idea of getting block 10
ready for concrete as soon as possible and then to work from there
towards the right abutment.
Test pits spaced about 50 feet apart were excavated along the up-
and down-stream sections of the foundation from block 4 to block 10.
Information gained from the pits caused a general lowering of the
foundation usually from 5 to 10 feet, but more in some places. The
pits were carried down to 12 feet. below the final adopted grade and
showed the rock to be sound, the seams tight and free from disin-
tegrated material.
Excavation for the spillway apron was made along with the dam
blocks 11 and 12 being finished in November and the others after
the diversion of the river. The deepest excavation on the dam was
in the block 12 downstream apron cut-off trench, which reached
elevation 35. Excavation for the power house foundation rock was
started and completed in November. Excavation for the clay
blanket, upstream from the dam, was made along with the work on
the dam during February and March.

GROUTING FOUNDATIONS

To seal off the flow of water through rock joints beneath the dam
there were drilled and grouted a line of holes located in the cut-off
trench spaced 5 feet center to center, drilled to depths from 30 to
150 feet and at angles from vertical to 45'. Pipes were set in the
concrete and after the rock was covered with concrete to a depth of 8
feet for a distance of at least 50 feet from the hole, the grout made of
a solution of cement and water was pumped into the hole at pressures
varying from 75 to 150 pounds per square inch. The largest quantity
of cement used in any hole was 266 bags. One hundred and eighty
holes were drilled and grouted, amounting to 10,656 linear feet of
drilling and 2,839 bags of cement injected.

RIVER CONTROL DURING CONSTRUCTION

Diversion of the river was accomplished by building blocks 11 and
12 and portions of the left training wall and spillway apron which are
located on the left shore of the old river bed. To accomplish this
work, a crescent-shaped levee with a steel sheet-piling core, and
having its ends well up against the left abutment, was constructed
around the area to be excavated. The levee was made of river gravel






REPORT OF GOVERNOR OF THE PANAMA CANAL


cast up by a dragline excavator. The sheet piling, supplemented by
wood sheathing, projected above the fill to form a darn, with the
top at elevation 116 at the upstream and 111 at the downstream ends.
After blocks 11 and 12 had been built to elevation 120, and the left
training wall completed, the base of the power house was constructed
and excavation for blocks 13, 14, and 15 nearly completed, and the
upstream concrete apron was completed as far north as block 11.
Rock-filled timber cribs were then constructed upstream from the
damn and into the space north of the power plant. Sheet piling was
driven to form circular cells in curved lines, extending upstream
from the timber crib and downstream from the completed traiining
wall. When these cells had crossed the crescent-shaped levee, before
mentioned, the ends of the levee were excavated to open a channel
which passed between blocks 12 and 16 and over the power house
foundations and down through the tail race. This clihannel being
higher than the natural bed of the river did not pass the water until
a closure had been made from the upstream cells across the river to
the right bank. This closure was made by constructing a levee of
river gravel by means of a dragline excavator, and afterward driving
a sheet pile core. The downstream closure was manide by sinking a
rock-filled timber crib across the river and driving a steel sheet piling
wall against the downstream side of the crib. Closures were made
in January 1933.
CONCRETE WORK

Concrete placing in Madden Dam commenced on August 20, 1932,
in block 18, when the main plant went into operation. Concreting
was confined to the left bank in blocks 11, 12, 16, 17, 18, 19, and
counterforted wall until January 20, 1933, when the work was dis-
continued while the river wais diverted and excavation criminiiced
on the right side of the river. During this period, 57,200 cubic yards
of concrete were placed.
On March 20, 1933, concreting wais recommended in block 11 indl
blocks 10, 9, 8, 7, 6, 5, and 4 were begun by the end of June. A total
of 182,400 cubic yards was placed by June 30, 1933, imaiking the
totnl in place for the fiscal year 239,600 cubic yards, or Aihout 41
percent of the total to be placed. Placing concrete was mostly dune
with the aid of electric vibrator equipment; two vibro spades and
two puddlers being used regularly.
A minimum of 1 barrel of cement to a cubic yard if' concrete is
used. The maximum contemplated to be used is 1.5 hlrrels per
cubic yard. The slump of the concrete is limited to a niiiiiiiuim of
3 inches in the body of the dam. The concrete is cured with waiter
for a period of 14 days. Mixing plant operations, as well as placing
operations, are continuously inspected by carefully traiined men.






REPORT OF GOVERNOR OF THE PANAMA CANAL


The maximum rate of production of concrete was 1,204.6 cubic yards
in 8 hours. During the year there were used 266,579 barrels of
cement, 106,122 cubic yards of sand, and 188,720 cubic yards of
gravel.
AGGREGATE PLANTS

Sand and gravel are reclaimed from the river bed about a mile
downstream from the dam. Excavation is by the same dragline used
for the damn. Material is loaded into cars and carried to a hopper,
dropped through grizzly bars spaced 8 inches apart, thence by belt
conveyers to the loading line where 32-cubic foot tramway buckets
are loaded at the rate of about 2 per minute, or an average of 137
cubic yards of run-of-bank gravel per hour.
At the screening and washing plant the gravel and sand are sep-
arated by means of screens with 4-mesh openings for sand, ?'-inch
square, 13-inch round, and 3-inch round openings for gravel. The
screened and washed aggregates drop into bins and are drawn off as
required and elevated to the mixing plant hoppers by belt conveyor.
The concrete mixing plant is equipped with weighing butchers and
water measuring tanks. Three 2-cubic-yard mixers form a battery
which can load a train with 8 cubic yards of concrete at about
3-minute intervals.
A railway conveys the concrete from the mixing plant to a point
beneath the cableway. A car is used having two trays of 4 cubic
yards enpacity each, which dump into a central chute. The car is
drawn by a gas-engine locomotive and is spotted over with the
8-cubic-yard cableway bucket, then both trays are dumped.
All parts of the dam are served by 25-ton electrically operated
traveling cableway, having a 1,325-foot span and 410-foot traversing
range. The traveling speed on cable is 1,200 feet per minute, trav-
ersing speed 66 feet per minute, and hoisting speed 300 feet per
minute.
ELECTRICAL AND MECHANICAL WORK

Work on the electrical and mechanical installations associated
with the Madden Dam was begun during the year and was devoted
to three major features: Experimental equipment, sluice gates and
sluiceway linings, and work by Panama Canal shops.
The data and tentative plans which had been collected concerning
the installation of strain meters and resistance thermometers were
coordinated, and simplified plans were developed in January. Mate-
rials were purchased and fabricated and by the end of the year 9 re-
sistance thermometers and 68 elastic-wire strain meters had been
embedded in the mass concrete. Installation of pipes for observation
of any uplift pressure under the base of the damn was started during






REPORT OF GOVERNOR OF THE PANAMA CANAL


October and extended with the progress of placing concrete; by the
close of the year about 30 percent of them had been drilled into
foundation rock and the pipes capped.
To facilitate the future checking of the performance of the spillway
apron in dissipating the velocity and energy of the spillway overflow,
pitot tube and piezometer piping was installed in the spilliway ipron,
beginning in November and was extended to keep pace with the
construction program. During the month of June these pitot tube
inlet supports and piezonieter inlet covers below elevation 90 were
cleaned, painted, and suitably guarded preparatory to allowing the
water to rise over the completed apron.
The first shipment of about 200 tons of sluice-gate materials was
received on the Isthmus during the last week in January, and the
entire delivery of slightly over 800 tons was completed in February.
On April 19 the general contractor started in block no. 10 the installa-
tion of the sluice gate frames and sluiceway linings in place and on
June 16 this phase of the work was completed on all 12 sluice gates
and all 6 sets of sluiceway linings.
The Panama Canal electrical shops began the fabrication of 61
resistance thermometers and 6 terminal boards, with flush-mounted
steel cabinets, to accommodate the thermometers and 102 elastic-wire
strain meters. The mechanical shops completed the fabrication of
630 linear feet of 30-inch galvanized steel pipe for drum gate drain
lines and furnished about 1,800 linear feet of 12-inch pipe for sluice
gate air vent lines. Orders were placed for additional metal fabrica-
tion, which was under way at the close of the year.

SADDLE DAMS, BORROW PITS, QUARRIES, AND ROADS

Work was carried on intermittently and by small gangs on tlie left
ridge dam between July and December 1932, completing all the
prelimiinairy work, such as hand ,tripping, installation of drains, and
the placing oif hand-taniped material in areas where power rollers
could not work. In December 1932 the contractor started placing
earth eminbankmient and until the latter part of April the work was
nearly continuous. At the end of the year the earthwork and rock
till were practically complete, and the concrete paivemenrt onil the
upstream slope, the parapet, and the concrete roadway were yet to be
put on.
Some maintenance work was done on saddle damis no:. 6, 9, 12, 13,
14, 15, 16, and 17, and the rock fill and riprap on no. 5, and the rock
fill on no. 13 were completed.
Preliminary work on saddle damni no. 8 was done during October,
November, and first half of December. During the last. half of
December and in January the concrete cut-off wall was pouredoto






38 REPORT OF GOVERNOR OF THE PANAMA CANAL

elevation 265. The greater portions of the earth embankment and
rock fill were placed during January, February, and March. The
grouting under the cut-off wall was done in January and first part of
February. Gravel blanket and riprap were placed in February,
March, and April. Work yet to do at the end of the year consisted of
completing the concrete cut-off wall to elevation 270, building the
parapet wall, and placing the concrete roadway; also placing a few
hundred cubic yards of gravel blanket and riprap.
Saddle dams nos. 10 and 11 were built complete during January,
February, and March. The principal items of work involved were as
follows, expressed in cubic yards: Stripping, 5,351; common excava-
tion, 248; earth embankment, 22,983; rock fill, 9,293; gravel blanket
(on saddle no. 11), 1,733.
Saddle dam no. 18 was not included in the original design. It was
built complete during May 1933. Quantities involved were: Strip-
ping, 250 cubic yards; earth embankment, 1,581 cubic yards; rock fill,
444 cubic yards.
Quantities in cubic yards of principal items of work on the left ridge
and saddle dams performed in the fiscal years 1932 and 1933 are shown
in the following tabulation:

Work completed

la-i'- IQVS Total to
1932 1933 Ttalto

Strippine... . . . . ...... .. .............................. 71,034 36,309 107,343
Com mon excarvation.... ............................................ 29,061 5.038 34,099
Rock excavation.. .... ..... ............. ......................... 10.887 19.874 30,761
Earth till........... ....................... ............... 1S4,479 274,295 458,774
Rock till ..................... .................................. 17,017 1041,260 121,277
Travel hI:nket .---.........- ...........---..... ........- 1,122 6,367 7,489
R iprap ............................................................. ............ 15,668 15,668
Concrete........................................................... 2,745 2,303 5,048

Quarries.-Quarry no. 1, located on the east side of the Madden
Road and about 5 miles from the dam site, was developed and
operated to furnish 15,668 cubic yards of rock for riprap on saddle
dams nos. 5 and 8.
Road.s.-On the road from the Madden Road to the site of the power-
house the following quantities of contract work were performed early
in the fiscal year: Rock excavation, 1,430 cubic yards; laying 24-inch
culvert pipe, 54 linear feet; and laying 15-inch culvert pipe, 27 linear
feet. All other work has been maintenance work on temporary road-
way and for the contractor's convenience, to enable him to use this
road for construction purposes.
On the road to saddle damn no. 8 during the first half of the year
about 300 linear feet of 24-inch culvert was laid at station 4 plus 18,
making a total of 454 linear feet; also 572 cubic yards of common
excavation and 12,699 cubic yards of rock excavation were completed.





REPORT OF GOVERNOR OF THE PANAMA CANAL


In April, about 10,000 cubic yards of earth fill were placed. The
subgrade of this road is now about complete from station 3 plus 00 to
saddle damn no. 8 at station 8 plus 35.
Clay blanket.-During March and April the clay blanket, 10 feet
thick, upstream from Madden Dami, was placed, with the exception
of a strip 30 feet wide along the upstreamn face of the damn. The
material came from the north end of borrow pit CR-2 and was spread
and rolled in 6-inch layers. In June, the portion of the blanket in the
area about 30 feet wide along the upstream side of the damn was
puddled into place. The total yardage placed in thle clay blanket is
19,143 cubic yards.
RIDGE TIGHTENING

The work of drilling and clay grouting for the purpose of tightening
ridges against leakage from the reservoir was continued throughout
thle year with the same equipment and organization as in 1932.
The filling of sink hole no. 5 was completed during September, a
total of 462 cubic yards of clay being placed.
The work of placing clay grout in area no. 1 was continued until
January 11, 1933, when it was suspended to permit. thle contractor to
construct saddle dams 10 and 11. There were 131 holes drilled,having
a total length of 22,734 linear feet and a total of 15,994 cubic yards of
grout were placed. The work during the current year was 4,1S6
linear feet of hole drilled, and 8,111 cubic yards of grount placed. Tihe
total cost of grout work in area no. 1 to the end of the year was
$101,065, showing a unit cost of $6.33 per cubic yard of clay placed.
In order to test the effectiveness of the grouting, a test pit, 4 feet
square, was dug in the south end of saddle dam no. 11 to a depth of
104 feet. The pit disclosed many small seams and cavities in tlhe
limestone foundation but all of them were well filled with clay grout.
It is believed that the results of the clay grouting operations will be
quite satisfactory.
Drilling grout holes at area no. 2 was started April 1, 1933, and the
first grout was placed on May 9, 1933. To June 30 a total of 7,194
linear feet of hole had been drilled and 1,544 cubic yards of grout had
been placed.
CLEARING IN RESERVOIR

This work embraces the clearing of areas upstream from the dam
which were covered with a heavy growth of jungle timber and will he
flooded by the formation of thie lake. Thie areas embrace 300 icres
which were cleared prior to the past fiscal year by forces of the
Government; 120 ncres on which Governmient forces were engaiiged
during the past year; 1,500 ncrs being vloi'-red under 3 contracts;
and about 500 acres-; in trniffc In % wliichli are beinig- cloIred under 2






REPORT OF GOVERNOR OF THE PANAMA CANAL


contracts. More extensive clearing was planned originally but in
October 1932 the board of consulting engineers expressed the opinion
that the clearing already performed or contracted for would be suffi-
cient and the project of more extensive clearing was abandoned.
During February and March 1933, the last of the force account
clearing was completed and the total cost was $16,074.60 for 120.15
acres, or $133.80 per acre. An experiment was made to determine the
effect on the burning by impregnating certain trees with sodium
nitrate. The trees were bored and loaded in April 1932, cut and
piled in June 1932, and burned in February 1933. Eight trees ranging
in diameter from 1 to 9 feet were loaded with an average of I } pounds
of nitrate (at 31 cents per pound). None of the trees was split open.
The results of the burning were 100 percent on the following trees
(diameters in parentheses): Bonga (9 feet 6 inches); higaron (8 feet
10 inches); almasigo (1 foot 1 inch); espave (6 feet); jovo (3 feet 4
inches). With the palm and the quipo the results are nil, showing that
these trees must be opened up and dried out prior to burning. With
the other trees, the results of the experiment indicate a large saving
in the cost of burning.
The 1,500-acre contract was divided into 3 parts, known as
"areas nos. 3, 4, and 5." Area no. 3 was awarded to the J. A. Jones
Construction Co., April 23, 1932, and was completed duringApril 1933.
Work was discontinued from July 1932 until February 1933.
All piling was done by hand and considerable repiling was necessary.
Area no. 4 was awarded to Pucci & Butler on April 29, 1932, and
was completed in April 1933; piling was done by hand and with the
aid of a caterpillar tractor and was successfully continued throughout
the rainy season at a slower rate than during the dry season. During
the rainy season the fire was started on top of the pile with highly
successful results. Area, no. 5 was awarded with area no. 3 but
handled by a hoist rigged to a "spar tree around which long logs were
piled teepee fashion, resting on one end and the other leaning against
the pile. Burning was very successful. The average force employed
on areas nos. 3 and 5 was 3 gold and 120 silver men. After the decision
to abandon further major clearing, the question of traffic lanes was
considered in connection with transportation on the lake and access
to habitable land. For transportation purposes it was decided to
clear lanes of 400 feet width on the main streams, Rio Chagres and
Rio Pequeni, as far as practicable, and use a 300-foot width in the
narrower channels; the secondary lanes were to be 200 feet wide on the
Rio Puente and 100 feet wide on all the quebradas.
To the end of the year a total of 2,472 acres had been cleared at a
total cost of $275.879.45, an average of $111.60 per acre.






REPORT OF GOVERNOR OF THE PANAMA CANAL


MATERIALS AND SUPPLIES

The specifications require that all material for use in M:nddeii Dam
be purchased by the Government, although installed by the Madden
Dam contractor. Requisitions are placed with the general store-
keeper and material is delivered to the contractor at Madden siding;
the transfer of responsibility is effected at the siding through the
medium of a checker who receives the material for the Madden Dam
division, lists it, and obtains the contractor's receipt. The contractor
stores and cares for the material, and his responsibility ceases when
the material is installed in the job, or when it is returned to the
Government in good condition.
The total cost of all material and equipment for the completion of
Madden Damn is estimated at $3,403,000. The value of material
contracted for and purchased from the Panama Canal storehouses to
June 30, 1933, is $1,483,469. The value of material used in construc-
tion of the works to June 30, 1933, and charged to the job, was
S656,205.
EARNINGS, DEDUCTIONS, AND PAYMENTS

The value of work performed by the contractor, payments made for
the work, and amounts withheld pending adjustment, during the past
fiscal year and from the beginningof thejob to the endof the year, are
summarized as follows:

Ficial year Totial to end of
1i33 year

Earnin by contractor....-----.. .... .. ------...------ ---. ......-- .... .2. .0', 7? 10 $3, 05, 966.82
Paymruents to r.ntractnr.. . . . . ..... 2.147. . 56 2,810,576.41
Amounts withheld.-------..--...------- --------------------------..... ...... 11,". :.4 13 '. 3 41

MAINTENANCE OF CHANNEL AND IMPROVEMENT PROJECTS

All dredging operations, embracing Atlantic entrance, Gatun Lake,
Gaillard Cut, Mirailores Like and Pacifie entrance sections of the
Canal, with ;iuxiliairy work at the Atlantic terminals, Pacific terminals,
Balboa ferry slips, Chagres River gravel, and Chame sand oper)Itions,
have been directed from the dredging division headquarters at Piaraiso.
A field office was maintained at Bilboa during the entire yeair and
one at Cristohnl firoii April 17, 1933, to the end o(if the finril year.
1 *414-33-4







4z REPORT OF GOVERNOR OF THE PANAMA CANAL

Excavation during the fiscal year is summarized in the following
table:

Maintenance
Local tion
Earth Rock Total

( ANAL PRISM DREDGING
Alla it, enirjnce iniaintenanctel' ..... ... ....... .. ..... ... 1,503,200 0 1. 503,200
Gatun Lake........ ........... ...... . . ........... 19. 200 2.200 21.400
Gaillard Cut:
Project no. .. . ..... ..... .. ........ .. ..... ....... 12.350 73,450 85.800
Project no 9.... .... .. . .. ... . ...... 4.300 177.350 211.650
Maintenance. including slides..................... .. ...... 630.000 1, 175,800 1.805.800
MNlirafores Lake:
Project no 6.. .... .. ... 234, 700 46,500 281.200
M maintenance .. ..... . .. .. ... .. . .... ... 211, RO8 0 211.800
Pacific entrance
Projects nos. I and I-B .................. .. ..... 32. 7() 342. 100 374.800
Maintenance.................... ...................... 2.:, 306.300 78,300 2.384.600
Total........................ ..... ... .... .......... 4.9S4,.550 1.895, 700 6, 880.250
AUXILIARY
Balboa Inner Harbor (maintenance).............. ........... 1.231. 700 0 1.234,700
Grand rotal................... ... ..... ......... ........... 6. 219. 250 1,895, 700 8.114.950

SIn addition 159.600 cubic yards were rehandled (not shown in lable).

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 Gambon 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 priwui Auxiliary Total
------- ---- Total
Earth Rock Total E-.arth Rock Toral Earth Rock

Northern............ 1,522. 400 2.200 1, 524. iO ........ ....... ......... 1, 522.400 2,2001.524.600
Central ........... 676,6501,426, .002, 103.250............... ....... 67.6,650 1,426,6002,103,250
Sour thern............ 2,75.500 466,9002,.252.400 1, 234, 700i ........ 2.234. 700 4,020.200 466,9004, 487. 100
To'tal......... 4. 984, .0 1, 895. 700 6. S80. 250 1, 234. 700 ......-------. 1. 2,34. 700 P. 219. 250 1,695,7008, 114.9.50


At the close of the fiscal year the estimate of material yet to be
removed from the Canal prism, including siltage, slide material, and
that involved in project no. 1, was 4,159,150 cubic yards of earth
and 1,137,100 cubic yards of rock.
In Cristobal Harbor there are 500,000 cubic yards of earth and in
Balboa Harbor 200,000 cubic yards of earth and 100,600 cubic yards
of rock, the latter item a part of project no. 1.
The shoaling to occur during the ensuing fiscal year, which is in
addition to the foregoing, is estimated as follows, in cubic yards:






REPORT OF GOVERNOR OF THE PANAMA CANAL


Atlantic entrance, 200,000; Gatun Lake, 50,000; Gaillard Cut, includ-
ing anticipated slides, 1,500,000; Miraflores Lake, 70,000; Pacific
entrance, 800,000; Cristobal Harbor, 100,000; Balboa Harbor, 500,000;
total, 3,220,000. All of this is closed as earth except 900,000 cubic
yards of rock in Gaillard Cut.

CANAL IMPROVEMENT WORK

Improvement 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, Paicifc entrance, and
project no. 1-A, Balboa Harbor, were subsequently authorized as
outlined in the annual report, for 1931.
With respect to the Pacific entrance channel, excavation during
the year amounted to 374,800 cubic yards, making the total to the
end of the year 9,521,250 cubic yards and advancing the channel
portion of the project, to 81 percent of completion. The harbor work
was not advanced during the year and remained 90 percent conm-
pleted, with 2,291,850 cubic yards having been excavated. The
suction dredge Las Cruces worked 2% months in Balboa Harbor,
excavating 1,234,700 cubic yards, but this was classed as ordinary
maintenance and not as part of the improvement project.
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 Ganiboa Reach; it also provides a tie-up station
opposite Gambon, as an extension of the original plan. Work on it
was begun in September 1929.
No dredging or mining was performed on this project during the
year and the excavation to date remained at 78,0530 cubic yards, 44
percent of completion.
Project no. 4.-This project consists of widening the channel at the
Chagres crossing, on the east side, opposite thI Gamibon bridge of the
Panama Railroad, and was started in March 1931. No dredging or
mining on it was performed during the past year and the total exca-
vation remains at 51,300 cubic yards, 54 percent, of completion.
Project no. 5 (reised).-This was begun in December 1930 anil
consists of widening Gaillard Cut approach to Pedro Miguel Lockh
and eliminating the reverse bend frim Paraiso Reach to Cuicarachin
Reach so as to increase thle Hfield of vision between vesels approachiiin'r
from opposite directions.
Wagon, tripod, and jackhalammer drills were worked 8 imonthis 1n
this project during the year and 40,150 cubic yards of rock were
broken with 36,065 pounds of dynamite. One dipper dredge, working.






REPORT OF GOVERNOR OF THE PANAMA CANAL


26 days, excavated 12,350 cubic yards of earth, 71,450 cubic yards of
mined rock and 2,000 cubic yards of unmined rock, a total of 85,800
cubic yards. This brought the total excavation to the end of the
year to 546,450 cubic yards and the project to 61 percent of com-
pletion.
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 on the project was begun in
April 1932.
The suction dredge Las Cruces worked 2 months, excavating 446,500
cubic yards of earth and 46,500 cubic yards of soft rock. The soft,
rock and 234,700 cubic yards of earth were excavated from the
project, and 211,800 cubic yards of earth excavation were ordinary
maintenance. At the end of the year the total excavation from
project no. 6 was 627,700 cubic yards, of which 75,000 cubic yards
are anticipated fill, and the work was 58 percent completed.
Project no. 9.-This project, begun in June 1928, consists of widen-
ing 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.
Work was carried on intermittently from October 1932 to April
1933, with the three dipper dredges, which excavated a total of
211,650 cubic yards, of which 177,350 cubic yards were rock and
34,300 earth. The total excavation to the end of the year stood at
488,850 cubic yards, which is 98 percent of completion.

AUXILIARY DREDGING
There was no auxiliary dredging except. in Balboa Harbor, where
1,234,700 cubic yards of earth were dredged in maintenance of
the inner harbor, as included in the table summarizing the year's
excavation.
SLIDES
The mniajiority of the slides were either quiescent through the year
or showed only occasional surface movements but there was con-
siderable activity at thle Culebra slide extension (east), also the
Ciilebra slide (onet' showed slight movement and the Culebra slide
(west) was in slow continuous movement throughout the year.






REPORT OF GOVERNOR OF THE PANAMA CANAL


The Culebra slide extension (east), which first mo\ ed into the Canal
in November 1931, resumed a general movement during July, August,
September, and October 1932. On September 21 and 26 movements
(occurred that shonled the channel to within 10 feet of the center line.
Additional breaks also occurred behind the previous break line. Six
distinct movements occurred in September, extending over a frontage
of 7(10 feet. On September 29 the channel was restored to full width
and depth for the first time since July 20, but on thit same day
imifiriil aiigain pushed out to within 30 feet of the center line. In
Oot iber dredging operations were largely confined to the excavation
of a basin, extending 75 to 100 feet east of the east primn line, for
ilir tntal length of the slide area, and the removal of ni:iterial ;is it
Ienermiched upon this basin. Some additional material was pre-
cipitaited into the sliding area by new breaks occ-urring behind the
previous break line from time to time, and also material was washed
into the area, by grader no. 3, in sluicing operation-. Full channel
width and depth were maintained from October to the end of the
fiscal year. The dipper dredges Parai.ii, Gniuboa, and Cascadas
worked on this slide intermittently throughout the year, removing
404,25.'0, 258,150, and 377,850 cubic yards, respectively, or a total of
1,040,250 cubic yards for the year. The total excavation to the end
of the year from this slide was 1,347,100 cubic yards.
A 24-hour watch and drag party was maintained at this slide
during slide activity. Reference points were checked weekly and
hydrogralphic surveys of channel fronting slide were made three
times weekly from July 1 to September 10, daily from September 10
to October 10, and at longer intervals for the remainder of the fiscal
year. Normally the dipper dredges worked on a 2-watch basis,
but from August 18 to October 7, 1 of the 2 dipper dredges worked
on a 3-watch basis, the second on a 2-watch basis.
Thie Culebra slide (east) showed only slight movement, but during
the year dipper dredges removed 191,400 cubic yards of material
from the base. Thie total excavation to the end of thie year from
this slide was 20,543,350 cubic yards.
The Culebra slide (west) was in slow continuous inon-ement and
points on the 450-foot west base line showed an average monthly
movement of 5 feet toward the Canal between Stations 1770 and
1795 (2,300 feet) and 1.8 feet southward between Stations 1770 and
1779. During thie year 2,650 cubic yards of rock were broken with
dynamite and 3 dipper dredges, working intermittently, removed
a total of 250,950 cubic yards of material. The total excavation from
this slide to the end of the year was 10,701,300 cubic yards.
The total slide excavation during thIe year wa- 1,558,150 cubic
yards, bringing the aggregate to the end of the year to 47,378,100
cubic yards.






REPORT OF GOVERNOR OF THE PANAMA CANAL


There were nimany small breaks at various points in Gaillard Cut
during the year but at no place was there interference with shipping
on account of slides.
LAND RECLAMATION WEST OF PACIFIC ENTRANCE
Report was made last year of the construction of the Farfan Spill-
way and Farfan River Dam. These were in connection with provid-
ing a basin, known as the "Farfan dump area", extending from the
south side of the Thatcher Highway, west of the Farfan Road, to the
foot of the hill northwest of Guinea Point, and covering about 1,500
acres in the watershed of the Farfan River, into which spoil pumped
by pipeline suction dredge from the Pacific entrance channel would be
placed, disposing of the spoil and at the some time reclaiming danger-
ous swamp areas into well-drained land suitable for use. Dumping
in the Farfan area was begun during the fiscal year 1932 and 1,449,700
cubic yards were placed, including material in dikes and dams..
During the past year 1,205,700 cubic yards were disposed of in
the area.
Another dump area, lying to the north of the Thatcher Highway
and known as the "Victoria dump", was begun in the fiscal year 1931
with the construction of a spillway, and preparation was carried on
through the fiscal year 1932 in the building of dikes and damns. Dis-
posal of spoil in this area began in January 1933, and spoil placed
during the year, including material on the dike, amounted to 1,865,500
cubic yards. The Victoria area extends along the west bank of the
Canal from Cerro Agua Dulce, just south of Miraflores Locks, to a
point about 1,250 feet northwest of the present northern limit of the
inner harbor at Balboa, and lies in the watersheds of the Victoria and
Velasquez Rivers. It covers about 700 acres.
In both areas it is proposed to carry the fill up to the 20-foot
contour along the base of the hills to the west of the canal. At
extreme width the Victoria dump will extend inland about IM' miles,
the Farfan arena about 2 miles. Average width in each case will
be about half of the maximum.
SUBSIDIARY DREDGING ACTIVITIES
At the Chagres River gravel plant at Gamboa there were on hand
at the beginning of the year 125,662 cubic yards of gravel and sand.
During the year 46,082 cubic yards were shipped, leaving 79,580
cubic yards on hand at the end of the year. No additional material
was produced during the year.
The work of removing floating obstructions and water hyacinths
in Gatun Lake, Gaillard Cut, and Miraflores Lake was made some-
what more difficult than ordinary by the flood on the Chagres River
of November 27 and 18; it was impracticable to hold the Gamboa






REPORT OF GOVERNOR OF THE PANAMA CANAL


Bridge boom and large quantities of debris were carried into the Canal
and Gatun Lake. Most of it was subsequently cleared out. The
number of hyacinth plants destroyed during the year, by pulling or
spraying, was estimated at 40,645,500.
The breakwaters at the Atlantic entrance were placed in charge of
the dredging division on March 6, 1933. During March a reconnais-
sance and preliminary inspection were made of bothli the east and west
breakwaters, and arrangements have been made for surveys, cross
sections, and necessary maintenance.
The 250-ton floating cranes Aja.r and Hercules were in commission
during alternate months. In addition to routine work, they per-
formed service in lifting small tugs and barges for repairs, in placing
forms for the concrete footings, concrete crib, ramps and gantry
towers at the ferry slips at Balboa, and in various jobs of heavy rigging
and wrecking.
The craneboat La Valley pumped 5,085 yards of sand into barges
at Chami6 Beach and delivered the barges to the unloading whNirf at
the Balboa coaling station, in addition to its services in towing aind
rigging.
EQUIPMENT
Tle following floating equipment was employed during the fiscal
year: Three 15-yard dipper dredges, the Cascadas, Gamboa, aind
Parals-o, operated for 145 days, 247 days, and 313 days, respectively;
one 20-inch pipe line suction dredge No. 86 was held in reserve; one
24-inch pipe line suction dredge, Las Cruces, worked 331 days; one
hydraulic grader was operated for 9 months; the drillboat Terrier
Nn. 2 was operated 12 months, but the drillboat Teredo No. 2 was
opernited 2 days and then placed in reserve; floating air compressor
No. 29 worked 8 months and floating air compressor No. 27 was out
of commission for the entire year; the craneboat La Valley was in
operation throughout the entire year; two 250-ton floating cranes
were in commission altermintely through the year; 3 lIrge and
2 small tugboats were operated during the year, one or two of
them in turn beinrig uiinder repairs or hild in reserve; miscellaneous
small craft were used throughout tlie year in auxiliary service.
AIDS TO NAVIGATION
The maintenance of lighlits, buoys, beacons, etc., in the Uanal and
adjacent waters was continued, and several imniprovementa und adjust-
ments were made. All center-line ranges in Gaillard Cut were
channged in Auigust to show fixed green lights, in order to provide a
uniform lighting systierm and to differentiate this cliiZs of aids from
other aids in the vicinity o(f thie Cut. About 1,000 feet of armored
submarine ciible were laid, placing the west lighthouse circuit rromin
Miraflores to Balboa on a 12-hour autoinatic bhii<. Four flihilung






REPORT OF GOVERNOR OF THE PANAMA CANAL


buoys were established on September 1, marking the Thatcher
Ferry approach channels. Sun relays were installed on range tower
no. 25, controlling the following aids in the lake area: Range tower
no. 25, beacons nos. 29 and 30, and bridge lights nos. 1 to 8, inclusive.
Similar installations were made at the Yacht Club channel lights and
beacon no. 6 in the Pacific entrance. These changes reduce con-
tinuous burning to a 12-hour automatic service.
Extension of shed at Gatun Buoy Yard and installation of a sand-
blast plant for the expeditious cleaning of steel buoys were accom-
plished during the year. The tank house at Taboguilla Island Light
was repaired and removed to a new location to obtain greater protec-
tion from sea action. Subsequently, heavy seas again caused the
tank house to be carried away; temporary repairs have been made
until a suitable permanent structure can be erected. During the
year the small boat channels in the Siri Grande, Siricito, Lagarterito
and Gigante sections of Gatun Lake have been maintained. Aids to
navigation at Jicarita and Morro Puercos in the Pacific approach to
the Canal were maintained for the United States Department of
Commerce, the lighthouse tender Farorite making three visits to
these lights during the year.

ACCIDENTS TO SHIPPING
The board of local inspectors conducted investigations and sub-
mitted reports on 26 accidents of a marine nature, as compared with
48 for the previous year. These accidents occurred either to vessels
in transit or in the terminal areas. The number of accidents in which
the estimated damages amounted to $1,000 or more was 3, as com-
pared with 5 in the fiscal year 1932. Classification of the 26 acci-
dents investigated shows the following: Struck lock walls or fenders,
10; collision between vessels, 6; struck wharves or piers, 2; and one
each of the following: Struck ferry ramp, struck Canal bank, dam-
aged by assisting tug, stern light fouled by locomotive wire and lost,
chock damaged while in locks, and damaged by anchor fouled by
locomotive wire. In two of the cases investigated, damaged was alleged
but not, proved.
Following is a brief summary of the more serious accidents, in chro-
nological order:

Esti- Rsosblt
Date Vessel Cause of accident mated possibility
damage

1932
O 1933
Apr. 18 California................ Struck wing wall of locks...... ... 2,000 Panama Canal.
May 15 Juan Sebastian Eicano... Struck Pastores moored at dock....... 550 Vessel.
15 Pastores.................. Struck by Juan Sebastian Elcano...... 700 Do
June 9 Betty Maersk...---....------- Struck bank of Canal................. 3,000 Do.






REPORT OF GOVERNOR OF THE PANAMA CANAL


On October 17, 1932, the motor vessel Baru and sloop Lfonida.,
both of Panamanian registry, collided in Canal Zone waters in the
vicinity of Flamenco Island and San Jose Rock, resulting in the
sinking of the Leonridas with loss of two lives. No Canal employees
were involved. The value of the Leonidas was not estimated.

SALVAGE OPERATIONS
No major salvage operations were handled during the year. The
lighthouse tender and tug Farorite was dispatched on February 11,
1933, to the assistance of the steamship Santiago, afire off the coast
near Cape Mala, but while the Favorite was on the way she received
orders to return and no assistance was rendered to the Sanid;agn. The
Favorite rendered assistance to a seaplane of the United States Navy
disabled in Gatun Lake on July 15, 1932.

METEOROLOGY-HYDROLOGY-SEISMOLOGY
Precipitation.-For the calendar year 1932 precipitation in general
was above normal for the Canal Zone and vicinity. Annual totals
ranged from 62.46 at Taboga. to 163.63 inches at Porto Bello. The
maximum precipitation recorded in 24 consecutive hours was 9.19
inches, at Cristobal on November 23 and 24. The average precipi-
tation in the Pacific section was 75.56 inches, in the central section
112.62 inches, and in the Atlantic section 150.05 inches.
Air temnperatures.-Tlie average air temperature was normal except
over the upper Chagres region, where it was below, and the Atlantic
coast, where it was above normal; March and April were the warmest
months, November the coolest. The following table shows for four
major stations the maximum and minimum temperatures during the
calendar year 1932 and the annual mean, based on bihourly record-
ings, and also the corresponding figures for the years of record, in
degrees Fahrenheit:

Calendar year 1932 During years of record
Station
Maxi. MiDi- 4ygrge Maxi- Mini-
Averagemum mum m mum Average Years

BalboiI Heights ............. ill 7 7,. 7 1;i >j 7 27
Alhajuela........ .... ........... ii 77 5 1j7
Gatun.................... .. . 92 70 80.4 95 66 80.4 22
Crisirobal....................... 93 71 80.4 95 66 79.9 25

Winds and huumditfy.-Tlie annual wind movement. in the Canial
Zone was below noi-imnal. February was the month of greatest aver-
age wind velocity and June the month of the lowest. The mean
relative humidity of the atmosphere was about 83 percent on the
Pacific coast and about 82 percent on the Atlantic. The average






REPORT OF GOVERNOR OF THE PANAMA CANAL


day-time cloudiness was above the normal. Maximum cloudiness
occurred in November, minimum in February and March. One
light and six dense fogs were observed over the Pacific entrance of
the Canal, frequent night and early morning fogs at interior stations
during the rainy season. Practically all fogs lifted or were dissipated
by 9:30 a.m.
Tides.-For the calendar year 1932 the maximum high tide at
Balboa, 10.7 feet above zero on the recording rod (approximately
mean sea level), occurred on October 2; the maximum low tide
there, 10 feet below zero occurred on March 23 and 24. The great-
est daily range there, 20.5 feet, occurred on March 24. At Cristobal
the maximum high tide, 1.94 feeoot., occurred on November 30, during
a northerr", and set a new record high tide for the port. The
maximum low tide, 0.96 foot below the zero, occurred on March 28.
The greatest daily range, 2.21 feet occurred on November 28.
Seismology.--Sixty-five seismic disturbances were recorded at tlhe
Balboa Heights seismological station during the calendar year 1932.
Of these, 23 were of comparatively close origin, within 200 miles, and
three of these, occurring on February 5, February 20, and August 24,
were felt generally in the Canal Zone and vicinity. Seventeen were
of distinct origin and 25 were of such slight intensity that no estimate
could be made of the location of the epicenter. Of 36 seismic dis-
turbances occurring in the first 6 months of 1933, 6 were felt by
local residents and 1, on June 19, 1933, was of intensity IV on the
modified Mercalli intensity scale of 1931. No material damage was
done. Throughout the year efforts were made to adjust the new
seismographs, installed in May 1932, for more accurate performance
and further adjustments are under way. Two 25-kilogram Bosch-
Omori seismographs which had been replaced by new equipment were
transferred in September 1932 to the Smithsonian Institution at
Montezuma Observatory, Calama, Chile, without charge.

RULES AND REGULATIONS
The rules and regulations governing the navigation of the Panama
Canal and adjacent waters were issued under Executive order of
September 25, 1925, and have been modified from time to time by
supplements in accordance with Executive order. The current edition
is that of August 1, 1931, which was amended during the past year by
supplement no. 2, dated May 13, 1933, amending rule 54, relative to
authorized speed o(if vessels in transit through the Canal. The
increases in speeds allowed by the amendment have resulted in
decreasing the minimum allowed time for a transit from S hours and
15 minutes to 7 hours and 3 minutes. This will result in saving many
ship-hours to vessels transiting the Canal.












SECTION II


BUSINESS OPERATIONS
Because of the distance of the Panama Canal froni places of supply
and repilr, the Canal or u-inization maintains facilities for the repair
and supply of ships as well as for the operation and miainten;ince of
the Canal and the care of eniployees. These fitcilitie.. are opera ted
by businesss divisions" of the Canal organization and unit, of the
P2aiiam1 R.aii raud Co. Fo0 ficcoutnting purposes the Canal iiid rail-
roatd urLt mauization are sepa rate but in admiinistration1 and perfoirniaitice
of work they are united and under the central control of tlie Governo r
of the Panama Canall.

PANAMA CANAL BUSINESS OPERATIONS
The profits, or excess of revenues over expen-es, for the business
activities of the Panania Cain)l ainounted to $1,135,708.62 for the year,
as compared with $557,095.44 in the fiscal year 1932. This was an
increase of $578,613.18, or 103.9 percent. However, of the indicated
excess of revenues over expenses in 1933 the sum of 8475,585.34 is due
to impomndings of percent 0ie> of salaries and wiaes in accordaniie
with the Economy Acts; and the excess, not counting the impound-
ments, would be $660,123.28, int increase over the preceding ye;ir of
$103,027.84, or 18.5 percent. The profits were made principally in
the electric light and power .-%ytein and the shops and drydocks.
The results are presented in sonme detail in table 26 in section V.
In the accrounting of profits and losses of the business activities there
is no act uil interest. charge on the miioney invested in these plants and
their equipment. This in\ etmient totaled $26,4s6,679.88 at the
beginning of the fiscal yeair aind $27,264,922.75 at the end (table 4
in see. V). To establish a criterion for profit, a capital charge hal
been calculated, based on 3 percent of the capital investment withini
minor variations, slch 1.;1 2 percent on public works in Panauma and
Colon, alnd 1 percent, on the shops at Balboa, wiiehih for reasons of
national defense were W niaide sormuewhiat Imore extellni.ve than the needs
of con mierce reqimire) plus relatively sligiht amiontilts repress. i liml
variations in suipplie onIll hand. This theoretically capital chziralI' fo'r
the fiscal year 1933 (table 20 of sec. V) was 87isn,9s.s 0s. Tie profits
of $1,135,708.62 exceeded thiis amount by $36.1,7'20-.54; the profits of
$660,123.28 without tlie inclusion of the Economyii Act hrpoundmenti'
fell short of meeting thle ca pital charge by the suzii of $10s,S64 siI.






52 REPORT OF GOVERNOR OF THE PANAMA CANAL

Based on the figure of $26,486,679.88, representing fixed property
and equipment alone at the beginning of the year, the profits counted
at $1,135,708.62 showed a return of 4.29 percent; counted at
$660,123.28, the profits showed a return of 2.49 percent 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 $31,553.04, or 2.2 percent, as compared with the preceding
fiscal year. Work for the Panama Railroad Co. showed a decrease
of $121,049.79, or 21.2 percent, as compared with the fiscal year 1932.
Work for other departments of the Government showed an increase
in comparison with the fiscal year 1932 of $3,089.91, or 0.4 percent..
Work for individuals and companies, including that of ships transiting
the Canal or calling at terminal ports, showed an increase of
$18,704.61, or 6.1 percent, 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. Compared with this, the amount of work in 1930 and 1931
was about two thirds normal and the amount for 1932 and 1933 about
one third normal work.
The total volume of work for all interests was $2,935,737.62, a
decrease of $130,808.31 or 4.27 percent from the preceding year.
This compares with a decrease of $265,665.71 or 7.97 percent from
1931 to 1932.
The value and class of work done and the sources of the same for
1933, as compared with the 2 preceding years, are shown in the follow-
ing table:

1931 1932 1933

Amount (if %ork com 'leie'd
M arine................ ............................. $1,713,789.06 $1,969,748.14 $1,780,519.26
Railroad............... ............. ........... 633.279.48 499,761.06 430, 051.40
Stocks and materialsb................................. 307,117.44 207,178.82 340,737.30
Sundries............................................ 678.025.66 389,857.91 384,420.67
Tolal....................... ....... ............... 3,.332.211.64 3,066.545.93 2.935,737. 62
Origin of w ork completed.
Individuals and companies 1.......................... t32,378.02 303,490.55 322.195.16
The Panama Can.il........... ................ ... 1.51S.041.62 1,416,841.97 1.385,288.03
Panama Railroad Co........ .... ..... .............. 676.367.39 569,785.37 448,735.58
Other departments of aniledl States Government..... 505,424.61 776,428.04 779,517.95
Total..................... .. ....................... 3,332. 211.64 3,066,545.93 2,935,737. 62
I Includes Panama Railr.ad .Steamship Line.

The lessened volume of work has necessitated part-time employ-
ment in all departments of the mechanical division. Furlough periods
varied during the year according to the work available. During the






REPORT OF GOVERNOR OF THE PAN.AMA CANAL .53

first 6 months of the fiscal year the furlough time namiounted to about
20 percent of the normal working days and during the following 6
months, in which the Pacific Locks were overhauled, it varied from
2 to 10 percent; the average for the year was approximately 12 per-
cent. No employmnents of new men were made during the year, and
reemployments were few; the employment ratio was the lowest the
mechanical division has ever experienced.

DRY DOCK AND MARINE WORK
A total of 117 vessels was drydocked during thie year-69 at
Balboa and 48 at Cristobal. A classification of these vessels follows:

Cla of vessels drydocked Hall | Cristobal Total

Panama Canal equipment ----------------..--------------------- 25 3 28
U.S. Navy vessels.....-----.------....------------------------------ 24 11 35
U .S. Arm y vessels.................... .............. .. ... . 1 6 7
Other Uniled States Governmenw %esel e .................... ......... 1 1 2
Panama Railroad vessels---.-----... ------------------------..----- 1 0 1
Commercial line vessels-- ........-- ..------------------------------- 17 27 44
Total-..--..---..----...-------------.......... ... ...... ............ .--------------------. 69 48 117

Commercial shipping.-At both Balboa and Cristobal the repairs
to commercial vessels consisted principally of emergency and voyage
repairs to vessels transiting the Canal or calling at Cristobal.
At the Balboa shops annual overhauls, including drydocking,
were given the steamships locoma, Alaracay, and Cali, and the cable-
ship All America. The motorships Cauca and Calda., brought from
Colombia, were extensively reconditioned and outfitted for local
freight service. Extensive repairs were performed on the steamship
Coya, which had been ashore near La Union, Salvador, and at the
same time the rudder was converted from single-plate type to stream-
lined type. It is reported that the Coya now makes half a knot more
speed than before, with equal fuel consumption.
At the Cristobal shops important repairs to commercial vessels
included general deck and engine repairs to thle steamship Velma
Lykes, after damage inflicted by a hurricane; repairs to broken crank-
shaft of main engine of the motorship Srcajarl; and renewal of all
brick work in all boilers of the steamship Point Lobi,..
Naral vessels.-While the amount of repair work performed on
commercial vessels as compared with that for the previous fiscal
year was about the same, that undertaken for the United States
Navy during the fiscal year 1933 established a record to date. Tihe
total, including bothli Balboa and Cristobal shops, was $669,516.32,
or approximately 38 percent of the total amount of marine work
undertaken by the mechanical division during the year.!mIn com-
parison, marine work performed for the Navy for the 2 preceding






REPORT OF GOVERNOR OF THE PANAMA CANAL


fiscal years amounted to $647,290.59 for 1932 and $419,067.01 for
1931. The increased volume of Navy work for 1933 included exten-
sive repairs and alterations made to submarines based on the Canal.
The bulk of this work consisted of the annual overhaul of submarines
nos. S-11, S-12, S-13, S-14, S-15, S-16, S-17, and S-48, of the tend-
ers Chewink, Mallard, and Swan, and of subchasers nos. 223 and
353; and incidental repairs and alterations of submarines nos. S-10,
S-11, S-12, S-14, S-15, S-16, S-17, and S-48, the cruiser Memphis,
the destroyers Sturterant and Orecrton, and the tenders Swan and
Lapwing. The United States frigate Constitution which transited the
Canal on December 27, 1932, on the way to the Pacific coast of the
United States, was docked at Balboa for bottom cleaning and minor
repairs.
Army vesselb.-Annual overhauls were accomplished for the dis-
tribution boat no. L-53, mine planter Graham, motorship Morgan
Lewis, and tug Lt. IFV. B. Caither, as well as incidental repairs to dis-
tribution boat no. L-55, tug General G. I'. Getty, launch Q-2 and the
mine planter Graham, and various other units of the Army floating
equipment on both the Atlantic and Pacific sides of the Isthmus.
OTHER WORK
Floating equipment of the marine division was given the usual
annual overhaul, the principal jobs being on the tugs Gorgona, Tav-
erniilla, Cocoli, and Farorite. The north pontoon for the launch land-
ing at Dock 17, Balboa, was drydocked for cleaning, painting, and
repairs to the concrete hull. These pontoons, which are among the
first reinforced concrete hulls ever built, are in good condition after
about 18 years of use. Two new launches, Teal and Hawk, were
completed and delivered to the marine division for service. For the
dredging division annual overhauls and drydocking were effected
on the drill boat Teado No. 2, dredges Las Cruces and Cascadas, tug
Chlayre-s, and various dump scows and other floating equipment.
Construction of the craneboat Atlas, a brief description of which
was given in the report for last year, proceeded throughout the
year. The keel was laid on November 18, 1932, on the south side
wall of the drydock at Balboa. The hull was completed there and
side-launched into the dock on April 12, 1933, with a drop of 7 feet
into the water. At the end of the year the vessel proper was largely
completed and the large crane (75-ton capacity) and most of the
auxiliary equipment were at hand for installation. Near the end of
the year it was decided to add a sand pump and a towing engine to
the equipment of the vessel and orders for them were placed.
During the first half of the fiscal year the shops manufactured or
reconditioned a large and diverse quantity of repair parts for use in
the overhaul of the Pacific locks and prepared additional sets of






REPORT OF GOVERNOR OF THE PANAMA CANAL


equLipment for removal of lock gates. An idle nut-tapping machine
was rebuilt into a 3-spindle space drill to facilitate drilling the nickel
steel bars forming the track for the roller trains; this machine drilled
and tapped the strips about three times ;is fast and one half the cost
as under previous practice.
Emergency and operating repairs were performed in large numiniber
for the contractors at Madden Dam, in particular on pieces of key
equipment, and a variety of work was done for the PnamIa Canal for
use at the dam.
The installation of the steel towers and ramp bridges for the two
ferry landings in connection with the Thatcher Highway was com-
pleted in July and August 1932.
Work of erecting, testing, and painting the second 1,000,000-gallon
water storage tank at Mount Hope was completed during the year.
The enlargement and reconstruction of the drydock at the Cristo-
bal shops was the principal feature in the maintenance or develop-
ment of plant during the year. The old drydock was closed on
December 13, 1932, and the work of enlargement was begun. It was
continued through the rest of the year by force of the municipal
division and at the end of the year the work was about 80 percent
completed. The new drydock will take vessels up to 385 feet in
length by 61 feet beam, and drawing nearly 21 feet of water. The
1,000-foot drydock at Balboa will remain available for larger vessels.
In the reconstruction of the Cristobal shops the new wood shop
was completed with the exception of a small lean-to section to con-
tain the sawmill. Machinery was removed from the old power house
building and installed in the new, with the exception of the 2,500-
foot air compressor, which was retained for use during the rebuild-
ing of the drydock. Upon the release of this compressor and its
transfer to the new power house the old power plant and pump house
will be demolished, giving spnee for the completion of the machine
shop, which is otherwise finished and in use. Following the comple-
tion of the machine shop there will remain the installation of a small
foundry to complete the program of rebuilding the Cristobal shops
but the funds for this foundry are not yet available.

FINANCIAL
The total expenditiire-; of the mechanical division imnoiinted to
S2,619,256.64, whichl is $141,527.25' less than in the preceding year.
Net revenues of $41,30(0.0io were earned after making deductions- fir
Cristobal shop imniprvenients, gratuitous refund, and pay-roll iim-
poundments. Local reserves at the end of the fiscal year for repairs
to buildings and equipment and for replacements of nmcliiniry and






REPORT OF GOVERNOR OF THE PANAMA CANAL


equipment, improvements to Cristobal shops, and gratuity for em-
ployees' leave totaled $650,545.59, as compared with $576,626.44 at
thlie end of the fiscal year 1932.
ELECTRICAL INSTALLATION AND REPAIR WORK
Repairs on commercial ships included electrical work, including re-
pairs to radio installations. Work on United States Navy vessels
included the complete overhaul of electrical circuits and equipment
on the submarine S-48, general alterations, overhaul, and installations
of new equipment on the submarines S-10, S-11, S-12, S-18, S-14,
S-15, S-16, and S-17, and some alterations on the minesweepers Swan
and Chewink; and overhaul and repairs were performed on 6 vessels
of the Army and 3 vessels belonging to the Panama Canal.
The important items of electrical work on shore during the year
included installations in new quarters, the constructing quartermas-
ter's repair shop at Balboa, and the new high school building in New
Cristobal; the wiring for lighting and for installation of power for
ramp hoists at the ferry landings at Balboa; alterations to the switch-
board at the Miraflores pumping station; installation of electrical
equipment in the restaurants at Cristobal, Ancon, and Balboa with
accessory transformers, switchboards, and power feeders; installation
of supervisory control equipment in the hydroelectric station at
Gatun and the substations at Balboa, Summit, Miraflores, and
Cristobal; relocation of street light circuits due to widening of streets,
and extension of circuits to new quarters and to Army and Navy
areas, and relocation of circuits in the Cristobal shops area due to
the reconstruction of the shops and drydock; installation of the sub-
marine cable extending across the Canal to the west ferry landing,
followed by the removal of the overhead line from Miraflores along
the west bank of the Canal; and work on the flood warning system
on the upper Chagres and Pequeni Rivers.
The flood warning system involves two separate phases, one for use
during the construction of Madden Dam and the other for flood control
after the formation of Madden Lake. The first phase involved the
extension of telephone lines from Alhajuela to Indio on the Chagres
and Salamanca on the Pequeni and the employment of observers at
those stations to give advice of rises on the rivers. This part was
completed in the fiscal year 1930 and proved of great value in con-
nection with the floods in November 1931 and October and November
1932. The second phase is the extension of the lines farther up the
rivers, to Chico on the Chagres, to Candelaria on the Pequeni, and to
Peluca on the Boqueron, a tributary to the Pequeni, and the installa-
tion at these stations of automatic transmitters, actuated by floats,
which will transmit electrical impulses to recorders at Alhajuela. The
line to Chico was completed in the fiscal year 1932 and the transmit-






REPORT OF GOVEIINOR OF THE PANAMA CANAL


ting and recording mechanisms were installed early in the fiscal
year 1933. They were found to be unsuited to the conditions,
involving transmission for a distance of about 15 miles and subjection
of the apparatus to much disturbance by lightning. A different
kind of equipment was secured and proved to be satisfactory. With
the establishment of the automatic station at Chico the observer was
removed from Indio.
For the stations at Candelaria and Peluca underground cables were
laid during thi.' past year from Salamanca to the sites of the proposed
stations. This involved laying about 32,000 feet of S-conductor cable
from Salamanca to a point above the mouth of the Boqueron, about
6,300 feet of 5-conductor cable thence to Peluca, and about 10,800
feet of 5-conductor cable from the same point to Candelaria. The
work was unusually difficult, due to the rough topography, jungles,
weight of reels, and lack of transportation. With the filling of the lake,
presumably in 1935, underwater cables will be laid from Alhajuela
to Salamanca and Indio and the present overhead telephone lines
connecting these points will be removed. The lines installed from
Salamanca to Candelaria and Peluca, and from Alhajuela to Indio
and Chico, are part of the permanent installation. Pending the
filling of the lake the automatic devices at Candelaria and Peluca
will not be installed and no observer will be stationed there, but an
observer will be kept at Salamanca.
After the completion of the dam and lake the flood warning system
is expected to make possible such control of the level of the lake as
normally to avoid the necessity of discharging through the penstocks
and spillway more than 50,000 cubic feet per second, which rate of
discharge causes a current at Gamboa of not more than 4 miles per
hour and will not interfere with navigation through the Canal.
Installation of electric ranges and water heaters in Canal quarters
continued. At the end of the year the total numbers of the 3 types
of electric ranges in use on the rental basis were 7 of the 6-burner
official type, 1,682 of the 4-burner type, and 52 of the 2-burner type.
PURCHASES AND INSPECTIONS IN THE UNITED STATES
The principal purchases for supplies for the Panama Canal are
made by the Washington office. Branch offices in charge of assistant
purchasing agents were continued in operation during the past year
at New York, New Orleans, and San Francisco. These offices were
not called upon to make many purchases but acted as receiving and
forwarding agencies for materials which have been purclihased by
the Washington office for forwarding to the Isthmus through their
respective ports. The Panama Canal medical section, New York
I1M 44-..3--.5






REPORT OF GOVERNOR OF THE PANAMA CANAL


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
Isthmus 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 7,232, being an increase of 572 as compared to
the fiscal year 1932, or 8.6 percent.
The total value of orders placed by the Washington office during
the year was $3,612,438.71, as compared with $4,018,092.85 for the
fiscal year 1932, or a decrease of $405,654.14. These totals do not
include requisitions for medical and hospital supplies handled through
the medical section, New York general depot, United States Army,
Brooklyn, nor orders placed by the assistant purchasing agents at
New York and New Orleans, which together amounted to $74,711.58.
Including the business of the past fiscal year, the total purchases
of supplies and materials covered by orders placed in the United
States by and under the Washington office since the year 1904 is
$221,460,510.92.
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 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 9,977 dis-
bursement vouchers, amounting to $3,874,344.86, and 693 collection
vouchers, amounting to $95,348.17, were prepared. In addition to
the collection vouchers, 12 collections, amounting to $40,000, were
made by transfer of appropriations through the General Accounting
Office, making the total amount collected $135,348.17 on 705 different
accounts, a decrease of $68,569.38 in the amount collected.
During the year 37 contracts were prepared, amounting to $1,789,-
971.34, representing a decrease from the preceding year of 26 contracts
and $4,449,592.88 in amount. Among the contracts let in the fiscal
year 1932 was the one for the construction of Madden Dam, amount-
ing to $4,048,657, which largely accounts for the decrease in the value
of contracts prepared in 1933 in comparison with the previous year.







REPORT OF GOVERNOR OF THE PANAMA CANAL 59

SHIP CHANDLERY AND OTHER STOREHOUSE SUPPLIES
Operation of (lthe storehouses, including the main or general store-
house at Balboa and the subordinate stores at Cristobnl, Paraiso, and
minor branches, was continued as in previous years. The policy of
keeping the value of stock on hand down to as low levels as is com-
patible with maintaiining adequate supplies was followed aind the book
value of stock on hand at all storehliouses at the end of the year was
$4,380,393.46 (sec. V, table 11). The total value of all ninaterinals
received on requisition from the United States during the year was
$3,598,S39.81. Local purchases were made during the year to the
extent, of $404,881.43.
Scrap and obsolete stock remaining on hand at the end of the year
were valued at $58,174.15. Among the sales of scrap during the year
was that of 166 net tons of American scrap iron, sold in the local
market.
The storehliouses handled a total of 140,898 requisitions and fore-
men's orders during the year. The value of all issues for the year
was $5,25S,3066.85. Material and supplies sold to steamships, em-
ployees, and others aggregated $713,3600.43 in SO,5S3 separate sales.
Sales to ships amounted to $26,386.27, a decrease of $7,509.68 as
compared with the previous year. Sales were made to 1,57S vessels.
Native hardwood amounting to 202,255 board feet of logs and 291
crossties was purchased from local contractors.
Cement issued during the year amounted to 332,177 barrels, of
which 261,315 barrels were for Madden Dam.
For the year's operations, revenues exceeded expenditures by
$.9,903.40.

FUEL OIL, DIESEL OIL, GASOLINE, AND KEROSENE
Fuel and diesel oil.-All deliveries of oil to and from tanks, for the
Panama Canal, the Navy, and private companies, are handled through
the pipe lines and pumping plants of the Panima Canal. During
the past year the total of fuel and diesel oil handled by the t wo Canal
plants, including batli rireipts and issues, was 6,022,06i3.46 barrels,
as compared with 7,767,3.5; barrels in the preceding year. Tile
operations during tlie fibenl year 1933 are shown in the following
table:

HIalh,.i M.1ninT llnic 101ul.
I barrell i 1 i(iarr l- i i rre'lh.)

Received by the Panamniiiia in.I---------------...... .... . iA ~,al. 1.... .i l.il:.:.. i.
Used by Panama C'annal and Pa'iirnain Railrund Co............ Isl.51 .'lin. I' I t'. .i 72
Pumped for individuals aind cornp niCs............ ......... l 77.54.I'Jl .3, 17 47. ".7 .'..i Ol1
Sold by the Panama (Cainail ... ...... ........................ 5, r.25 12 %.. 17. i. 11, 1i, 1.'
M miscellaneous transfers on tlank fanrms........................ 17, 163 65 1 ''. '1. .' .. .1 '.
T otal receipts, deliveri'.-, ind trunsfers................. .: u, ,., 1'. 1. 'il r., i i.. te1 1 i..l If,







60 REPORT OF GOVERNOR OF THE PANAMA CANAL

The number of ships discharging or receiving fuel oil (including
diesel oil) during (he year totaled 1,303, of which number 115 were
P 1nni C(a1nal craft.
Isthmus duringg the year totaled 3,425,464 and 968,985 gallons,
resimet ively.
st{irafige f aci(i's.-No changes in volume of storage facilities were
nInde luring the year and they remained as follows:

Balboa ount Total

1 ni- and dit-el oil .........................................barrels- 1,209,540 1,194,500 2,404,040
Hlasoline and keroseue.....................................gallons.. 4,807,000 2,263,000 7,070,000

In the operation of the fuel oil handling plants the revenues of the
Panama Canal exceeded expenses by $12,538.60 (sec. V, table 26).
OBSOLETE AND UNSERVICEABLE PROPERTY AND EQUIPMENT
During the year disposition was made of $250,520.52 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 were the new high school and five 2-family quarters at
Cristobal, nurses' quarters at Colon Hospital, junior high school
building and one cottage at Balboa, two official houses at Ancon,
combination silver mess and bachelor quarters at La Boca, waiting
room at the west landing of the ferry at Balboa, bathhouse at Farfan
Bench, and addition to the incinerator at Summit. The principal
projects under construction at the end of the year and due to be
completed in 1934 are 72-room bachelor quarters at Cristobal, 28-
apartment bachelor quarters in the Fort DeLesseps area, covered
passagewaiy at Colon Hospital, pump and compressor building at
Cristobul shops, five 2-family houses at Ancon, property and equip-
ment shed at Balboa, and yard office in the Balboa yards of the
Panama Railroad.
Efforts to prevent damage by termites continued and were generally
very successful. There have been few instances in which the termites
have succeeded in making their tunnels beyond the down-turned
edges of metal plates projecting over the tops of concrete supports for
buildings, though they may have built as many as half a dozen
tunnels on the under side of the plate. The activity of these pests is
illustrated by their having used a strand of a spider's web as support






REPORT OF GOVERNOR OF THE PANAMA CANAL


for a tunnel to advance over the edge of a metal plate whence they
proceeded upward to the wood.

QUARTERS FOR EMPLOYEES
Gld (mniploiyees.-With reductions in force, retirements, etc., the
excess of applicants over the number of available family quarters has
fallen lower than for years past. On June 30, 1933, there were 25
accepted applications on file for family quarters in all districts, dis-
tributed as follows: Ancon-Balbon, 10; Cristobal, 6; Pedro Miguel, 2.
The number at. the end of the previous year was 32. A number of
families, however, are quartered in old houses which require expendi-
tures for maintenance to an uneconomical degree. Apartments
constructed in 1906 and 1907 which should be replaced are listed as
follows: Cristobal, 90 family apartments; Gatun, 142 family and 23
bachelor apartments; Pedro Miguel, 140 family and 60 bachelor
apartments; Ancon, 365 family and 425 bachelor apartments. A few
old frame quarters were sold or demolished during the past year to
provide room for new houses on the same sites. Rentals collected
exceeded expenses of maintenance and reserves set aside for deprecia-
tion by $22,664.10 (sec. V, table 26).
Silver employees.-The demand for quarters for employees on the
silver roll remains far in excess of the supply. Present policy, how-
ever, is not to increase appreciably the total of apartments but to
confine the work primarily to maintenance and replacement. At the
close of the fiscal year the accepted applications on file for silver
quarters totaled 1,519, distributed as follows: Ancon-Balboa, %05;
Cristobal, 483; Pedro Miguel, 92; Gatun, 39. No new silver family
quarters were constructed during the year. Approximately $12,000
was expended on repairs to family quarters at Camp Bierd, and ex-
tensive plumbing improvements in quarters in all districts, to cost
about $20,000, were begun. The cost of operation and miaintcnance
exceeded the rents collected and the deficit was covered by an item
of $95,000 allotted annually in the appropriations for this purpose.
MOTOR AND ANIMAL TRANSPORTATION
The transportation division of the supply department continued
in charge of the operation and maintenance of all motor and animal
transportation furnishlied to all departments and divisions of the
Canal and Panama Railroad. The truck and chaiuffeuir service which
was being furnished to the contractors at Madden Dam for hauling
cement. from the railroad siding to the dam site w'i discontilnied
during the year after the contractors lh1d purchaeled equipilt"I imid
secured their own operators.
During the year 21 new cars and trucks were pi)rchasIe aind 23 wv re
retired. There were on hand at the close of the venr :127 cair- ind






REPORT OF GOVERNOR OF THE PANAMA CANAL


truck, ti rimiler-, 12 iiiitorcycles, 12 mowing machines, and 17 mules.
Revenue- exct'eded expenilitures for the fiscal year by $24,319.17, as
com in red % I ii h i profit (f $14,008.49 in the preceding year.
PANAMA CANAL PRESS
TIe' PBlii1;n' C'uial Prl'e.s curries in stock and manufactures such
nc01i"ry sIati1one1v, forms, etc., and does such miscellaneous print-
ing as requiired (in theli Isthimus in connection with the operation of
lithe Pal'niii;n C.iinil Iand the Panaima Railroad. The manufacturing
output for the current year amounted to $154,523.54, as compared
with $150,731.34 for the previous year, an increase of $3,792. The
excz', of revenues over expenditures was $21,009.43 for the year (sec.
Y, thble 20). Tile annual inventory value of material on hand at the
clos. of tlhe year was $59,323.'2, as compared with $79,731.07 at the
end (f thie preceding i year.
REVENUES DERIVED FROM THE RENTAL OF LANDS IN THE CANAL
ZONE
Rentals on buildin- sites und oil-tank sites in the Canal Zone
totaled $49,337.25) for the year, as compared with revenues of
$42,045.58 in 1932. Rentals on agricultural lands in the Canal Zone
totaled $20,330.79, as compared with $24,511.59 for the preceding
'ea r.
At the close of the fiscal year a total of 1,750 licenses were in effect,
covering 4,17S81 hectares (10,325 acres) of agricultural land within the
Canil Zone. This is a reduction of 50 in the number of licenses as
cui'ipared with the close of the preceding fiscal year and a reduction
in the area held under license of 191 hectares.
EXPERIMENTAL GARDENS
Operations of the Canal Zone experiment gardens were curtailed
considerably during the year as the result of reducing the allotment
from $24,000 to approximately $14,700. This necessitated furlough-
in- some of the force and neglecting some of the plants, including
thle S-nAcre plantation of chiulmoogra-oil trees on the Chagres River.
One of the notable features of the year's work was the fruiting of 50
to 60 mangosteen trees which had grown from plants supplied about
9 years ago by the United States Department of Agriculture. The
seeds were ,i\v d when the fruit was consumed and it is believed that
this fruit can shortly be well established in tropical America. The
gardens were active also in the development of the cashew, which is
indigenous to tropienl America but has come into recent notice in the
United States through the importation of cashew nuts principally
from British India. Seeds of a tree yielding antilepric oil, the
Sapucninhi, (arpoatroei( basiliensis, were received by air express






REPORT OF GOVERNOR OF THE PANAMA CANAL


from Brazil early in 1932, germinated well, and during the past year
strong plants were set out in permanent positions. Work was
continued in the introduction and propagation of plants producing
rotenone which can be used as the basis for the manufacture of
insecticides. The hardy growth of a row of teak trees about 9 years
old at the gardens led the director to the suggestion that a small
experimental forest of teak might be established in the Canal Zone,
in view of the success of the trees at the gardens and the unusual value
of teakwood.
Sales of trees, plants, propagating material, and prepared soil from
the nursery approximated $5,750 during the year, which is a higher
figure than for any previous period of 12 months and represents a
considerable activity, in view of the low prices which are charged.
Sales are made to other branches of the Canal organization and to
individuals and companies in the Canal Zone, Panama, Central and
South America, and, in a few cases, in the United States.
BUSINESS OPERATIONS UNDER THE PANAMA RAILROAD
Many of the business activities on the Isthmus connected with the
operations of the Canal are conducted with funds of the Panama
Railroad Co. Included in these are the wharves and piers at the har-
bor terminals, the commissary system, coaling plants, hotels, and va-
rious minor activities, as well as the Panama Railroad itself. In this
report only the major features of these operations are noted in their
relation to the Canal administration as a whole. Details are given
in the annual report of the Panama Railroad, which is published
separately.
The operations of the railroad proper, harbor terminals, coaling
plants, stables, and baggage transfer were continued throughout the
year under the direction of the 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 Rail-
road funds, yielded a profit of $784,432.28 for the fiscal year, as com-
pared with $782,464.49 in 1932, an increase of $1,967.69 or approxi-
mately one fourth of 1 percent.
A summary of 1933 operations is given in the paragraphs following.

RECEIVING AND FORWARDING AGENCY
Harbor terminals.-The gross revenue from harbor terminal opera-
tions during thie fiscal year amounted to $1,257,250.58; operating
expenses were $899,804.72, leaving a net. revenue of $357,451.86, as
compared with $286,379.97 in 1932.







REPORT OF GOVERNOR OF THE PANAMA CANAL


There were 1,357,369 tons of cargo stevedored, and transferred, as
compared with 1,301, 370 tons in 1932, an increase of 55,999 tons.
During thi year 3,593 cargo ships and 900 banana schooners were
handled, as compared with 3,480 cargo ships and 1,020 banana
schooners in 1932. Agency service was furnished to 197 commercial
vessels, as coinpared within 192 last. year.
( 1tail Zoniv /f* orrd(r.s.-As an aid in the distribution of goods to
areas served by carriers using the Panama Canal or its terminal
ports, there wasi established in 1925 the arrangement known as "Canal
Zone for orders." Under this system merchandise is shipped to
Guiiail Zone ports (Cristobal or Balboa) 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 con-
signor 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 satisfac-
tory evidence of payment of the proper duty to the Republic of Pan-
amnia. Many different commodities were handled in this manner
during the year; the total cargo received utinder the arrangement was
10,979 tons. This was a decrease of about 22 percent from the ton-
nage received during the preceding year. The revenue for handling
and storage amounted to $28,033.91, as compared with $37,159.87 in
1932.
COMMISSARY DIVISION

Total gross receipts were $7,311,894.34, as compared with $8,347,-
226.33 in 1932, a decrease of $1,035,331.99. The monthly average
sales decreased from $695,602.19 to $609,324.53.
The inventory value of merchandise on hand at the close of the
fiscal year was $1,670,000, as compared with $1,865,000 at the close
of the year 1932. The ratio of sales to inventory indicates a theo-
reticalen stock turnover every 2.74 months.
Salex.-The distribution of sales as compared with sales in the 2
preceding years was as follows:


1931 1932 1933
United SntaIte. (iGovernjent (.rniy and NavI............... $1.455.011.60 $1,069,871.40 $964,376.75
The Painamra Cin:il .. ............................... 701.334.95 626,585.66 562,851. 24
Conimnerrinl ships ........... ................. ......... 79.365.78 458,943.30 294,416.69
Painan H irol ................ ............. ....... 299.818. 15 236,85.73 180.451.53
Indiviluls nd 1 omanies...... ...... ............... 685,067.17 527791.93 493,475.57
nployees................... 6,546. 485.93 5.768, 104.96 5, 107. 704. 11
Gross nles............. .. ...................... 10, 477. 083. 64 8, 688. 122.98 7,603. 275.89
1.essdiscounts, credits. eic.................................. 408.883.04 340.896.65 289,895.05
Revenue froni sales...... ..... ....... ... ...... 101. ,S 200. 60 8. 347, 226.33 7,313,380.84
SuiiIIl~es for eqwnses
Hetiil cominnm.-srics anrl warrli i.z- .... ... ...... ... 47,912.84 41,796.53 33,971.25
(ieneral............... . ..... ............ .. 4,376 65 2,623.87 1,640.31
Plants............... .. ........................ 32 796. 89 26,016.66 21,679.97
ToLal.................. .. ........... .. ..... . .. 8, i. 3' 70. 437.06 57.291.563
Lost 1 y %(n(lemnall ion. I'ilfernpe, slhrink irv, clerical rrrnr. ele. 215,794.35 I 135,304 27 105,536.52
Grand total. . . . . . . . 103, 01. 33 j 552, 967. h(66 7,476, 208.89


[
I


I
i




>








REPORT OF GOVERNOR OF THE PANAMA CANAL 65

Purchases.-Purchases during the year aggregated $4,850,329.30,
a decrease of $737,060.22, or 13.2 percent, as compared with the pre-
ceding year. The following tabulation shows the value of the various
classes of materials purchased, and the market in which purchased,
as compared with the 2 preceding years:

1931 1932 1983

Oroceries..................................................... 1,54 080. 12 $1,305,899.68 $1,234,567.33
Candies...................................................... 67,331.34 52,660.91 55. 165.39
H ardware.............................. ................... 53 ,034 71 383,234.00 315. 52.. 94
Dry goods......................................... .......... 1. .09, 416. 14 841,106.20 726. 70. 17
Shoe.--................... .................... .................. -29. 364.78 191,066.02 146, 57 30
Cold storage-----------------.. ----------------------- 154.791.97 1,213.423.68 1,092,113.73
Tobacco................................................... 424. 311. 30 327, 685.92 252,061. 17
Cattle and hogis................................. ........... 640.918.70 261,507.06 124,465.53
Milk and cream--------------------------------------- 178, 507. 92 164, 719. 51 153,383.45
Eggs ........................................................ 201, 109 50 166.926.42 232,687.89
Butter. ......... .......... .... ......... ..................... 195,428.96 1'i0. 252.79 138.553. 26
Rnw material ----------------..--------------------- 437,442.08 427,159.61 318, 784. 87
Toys. .................... ............. ..... ...... ....... .... 46. 825. 28 44.542.78 21.669. 33
Stationery-------------......................------------------------------- 47,717.63 47,204 94 38,264.94
Dressed beef.................................................. 6,536.25 -...--.... .. -- ..---------..
Total...- ---------------------- ----------.------- 7, 273,816. 74 5,587,389. 52 4,850,329.30
Place of purchase:
United States -....------. ---.------------------- 5, 171,322. 77 4, 192,222.93 3,798,356.49
Europe and Orient------------------------------------- 777,966. 58 621,423. 42 482,590. 29
Central and South America------.---------------------- 29. 255 91 14.5, 085 99 131,284.11
Cat le Industry---.-- ---------------------------- 750,31.3.47 391, 509. 92 236,646.13
Panama Canal------- --------------------------------90,871.54 69,947.45 70, 558.08
Local------------...------------------------------- 224, 086 47 167, 199.81 130.894. 20
Total-----...--.---- --------------------------. 7,273,816.74 5,587,389.52 4. 850. 329. 30


Ma nufacturing plants.-The output of the various manufacturing
plants and laundry during the year had a total value of $1,506,092.22,
as compared with $1,763,026.43 in the preceding year, a decrease of
$256,934.21, or 14.6 percent. The principal products of the major
plants and their value were as follows:
The output of the bakery included, 4,964,778 loaves of bread,
1,023,505 rolls, and 393,572 pounds of soda crackers, together with
cakes, pies, doughnuts, etc., to the total value of $286,842.65.
The coffee-roasting plant turned out 253,135 pounds of coffee,
17,377 pounds of roasted peanuts, 28,254 pounds of corn and corn-
meal, and 887 pounds of roasted almonds, to the total value of
$71,236.43.
The principal output of the ice-cream and milk-bottling plant
consisted of 841,690 quarts of milk, 58,630 gallons of ice cream, and
24,081 quarts of cream, with a combined value of $259,988.53.
The amount of ice manufactured during the year was 28,388 tons,
valued at $206,657.38.
The value of items manufactured in the industrial laboratory
totaled $216,662.47.
The abattoir, sausage factory, and pickling department turned out
1,461,577 pounds of dressed beef and various byproducts to the total
value of $226,716.38.







REPORT OF GOVERNOR OF THE PANAMA CANAL


The number of pieces of laundry handled was 6,529,906, and re-
ceipts aggregated $237,988.38.

HOTELS AND RESTAURANTS

The Hotels Tivoli and Washington, at the two ends of the Canal,
are operated as 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 $170,769.40,
which was $60,518.92 more than the revenue derived. The operating
cost of the Hotel Washington during the year was $128,656.12, which
was $43,368.12 more than the revenue derived. Operating expenses
at both hotels included increases in unexpended reserves as follows:
Tivoli, $11,325.60; and Washington, $13,274.30.
The restaurants 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
Panama Canal.
CATTLE INDUSTRY

Beef cattle.-During the year 2,105 head of fat steers were sold to
the commissary division, of which 1,831 were the balance due under
purchase contract from a cattle dealer in Cuba, 133 head were sent in
from the cattle-industry pastures, and 141 were purchased in the
Republic of Panama. No beef cattle were on hand as of June 30,1933.
Dairy farm.-The total milk production at the Mindi dairy,
amounted to 208,552 gallons for the year as compared with 203,007
gallons in 1932. Two bulls and 101 cows were purchased during the
year, and a total of 751 head were on hand as of June 30, 1933.

PANAMA RAILROAD CO. LANDS AND LEASES

At the close of the fiscal year 1,430 leases and 17 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 lenses and licenses amounted to $283,675.70.
The income decreased $45,409.50, or 13.8 percent from that in the
previous year. This was due largely to a discount of 25 percent
given to all lessees who were paying the full commercial rental and
paid their accounts for the first three quarters of the fiscal year before
April 30, 1933; the discount amounted to $43,871.95. The reduction
was granted in view of the business depression.







REPORT OF GOVERNOR OF THE PANAMA CANAL


TELEPHONES AND TELEGRAPHS

The gross revenue from the operation of telephones, electric clocl-s,
and electric printing telegraph machines amounted to $242,089.20,
and the total expenses were $185,810.23, leaving a net revenue of
$56,278.97, as compared with $50,042.89 for the preceding year, or an
increase of $6,236.08 for the year.
During the year 980 telephones were installed and 1,163 were dis-
continued, making a net decrease of 183 telephones for the year. At
the end of the year the telephones on the system numbered 2,766 as
compared with 2,949 at the end of the previous year.
A total of 20 automatic printing telegraph typewriters were in use
at the end of the year; 12 in use by the Panama Canal and 8 by com-
mercial enterprises. Electric clocks in service at the end of the year
numbered 64, a decrease of 10. Twenty Morse telegraph stations
were in service throughout the year.

COAL

The sales of coal from the plants at Cristobal and Balboa totaled
39,327 tons during the year, as compared with 65,463 tons in 1932,
and were the lowest for any year since the plants have been in opera-
tion. Purchases during the year totaled 41,945 tons. The cost of
sales, including operating expenses, was $332,494.02 and revenue was
$261,716.07, resulting in a loss of $70,777.95, as compared with a loss
of $159,932.23 in 1932. The consolidation of the coaling plant or-
ganization with that of the receiving and forwarding agency, effective
October 1, 1932, reduced the operating expenses materially. The
selling prices of coal at the plants remained unchanged throughout
the year, at $6.25 per ton at Cristobal and $9.25 at Balboa, for run-of-
mine coal, Navy standard, Pool No. 1, Pocahontns or New River.

PANAMA RAILROAD

The gross revenues during the fiscal year 1933 from the operations
of the Panama Railroad proper (not including subsidiary business
activities) amounted to $1,328,229.81; the gross operating expenses
were $1,204,305.19; resulting in a net revenue of $123,924.62, us
compared with $56,588.80 last year, an increase of $67,335.82.
Tonnage of revenue freight transported during the year aggregated
292,525 tons, as compared with 263,527 tons during 1032, an increase
of 28,998 tons.








DOU REPORT OF GOVERNOR OF THE PANAMA CANAL


Statistics covelrig the various features of railroad operations during
the past three years are presented in the following table:


Averanpe mriles opernalpd. Colon Io P'anama.............. ..
(r ioss operali ig re enue........ ................... ........- -
Operating expentFses............. .... .......................
Net operating revenue............. ... .. .....................
Percent of exrwnse to revenue.................................
Gross revenue per mile of rind..........................
U0peraling expense per mile of road............................
Net revenue per tumile or road..................................
Number of passengers carried:
Fir-st class......................................... ...-.
S cun'd ilaIss..............................................
T otal.......................... ..........................
Revenue per passenger-train mile.............................
Revenue per freight-train m ile.......... .....................
Total revenue train m ileage...................................
Railroad revenue per train-mile..............................
Railroad operating expense per revenue train-mile............
Net railroad revenue per revenue train-mile.-.....-..--......----
Freight, passenger, and switch locomotive mileage.........-.
W ork-trnin m ileage..........................................
Passenger-tramin mileage..............-.-.... ...-..........--
Freight-train m ileage........................... ..............


47.61
$1.685,607.81
$1.528,555.62
$157,052.19
90.68
$35,404.49
$32,105.77
$3,.298.72


200,599
293,687
494,246
$4.77
$11.18
196.651
$8.57
$7.77
$0.80
323,501
' 10.394
111,718
84.933


47.61
$1,433,719.13
$1,377,130.33
$56,588.80
96.05
$30.113.82
$28,925.23
$1, 188.59


184,307
226,647
409,954
$4.17
$9.686
193,667
$7.40
$7.11
$0.29
307,539
5,116
111,592
82,075


47.61
$1.328,.229.81
$1.204,305.19
$123.924.62
90.66
$27,898.12
$25,295.21
$2,602.91


168,344
194K765
363,109
$3.88
$9.47
186.598
$7.12
$6.45
$0.67
282,.502
S11,266
108,257
78,341


I Overhaul of locks occurred in this year.

PANAMA RAILROAD STEAMSHIP LINE

The gross operating revenue for the steamship line for the fiscal
year ended June 30, 1933, amounted to $939,880.67, and the gross
operating expenses amounted to $1,260,365.32, resulting in a net
deficit from operations of $320,484.65. The operating deficit com-
pared with the net loss for the fiscal year ended June 30, 1932, of
$297,079.91, shows a decrease in the net revenue of $23,404.74.
For the year ended June 30, 1933, the tonnage carried by the
steamship line amounted to 116,148 tons, as compared with 140,429
tons in the previous year.
Thei 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 $420,642.54. Had regular tariff rates been
received by tih steamship line for such freight and passenger services
performed for the Panama Canal and other Government departments,
its income would have been increased by $420,642.54 and its opera-
tions for the yiar would have resulted in a profit of $100,157.89.


1 I I


RI 1













SECTION III


ADMINISTRATION
DEPARTMENTS
The organization of the Panama Canal embraces five major depart-
ments on the Isthmus, with the Panama Railroad Co. closely affiliated,
and an office in Washington. The departments on the Isthimus are
operation and maintenance, supply, accounting, executive, and health.
CHANGES IN ORGANIZATION AND PERSONNEL
The section of coaling plants was abolished, effective October 1,
1932, through consolidation with the receiving and forwarding agency
of the Panama Railroad. The former superintendent of coaling
plants, Mr. A. L. Prather, was appointed assistant receiving and for-
warding agent, effective the same date.
The name of the division of lock operation was changed to "Locks
Division" on January 1, 1933.
Upon the expiration of his 4-year term as Governor on October 20,
1932, Brig. Gen. Harry Burgess, United States Army, was relieved
from duty with the Panama Canal and the present incumbent was
appointed to fill the vacancy, effective October 21, 1932. The posi-
tion of engineer of maintenance, thus vacated, was filled by the
appointment of Lt. Col. C. S. Ridley, United States Army, who
had been assigned to duty with the canal with such appointment in
view, arriving on the Isthmus on September 7, 1932, when he was
appointed assistant to the engineer of maintenance for the interim.
Lieutenant Colonel Ridley had served as assistant, engineer of main-
tenance from M\y 10, 1921, to April 19, 1924, on which date hlie was
relieved from dyii( v with the Panama Canal.
The deaths of General and Mrs. Burgess, occurring on March 18
and June 2, 1933, respectively, in the United States, occasioned deep
regret among thousands on the Isthmus to whomni their life here had
endeared them.
Col. 0. G. Brown, UInited States Army, was appointed uperin-
tendent of Gorgas Hospital, September 10, 1932, vice Col. A. M.
Whaley, United States Army, relieved from duty witli the Pinima
Canal.
Mr. W. L. IHershi wvis appointed electrical-meclihanical engllineer' for
the Madden Damin division, effective Novenwmber 18, 1932. Mr.






REPORT OF GOVERNOR OF THE PANAMA CANAL


Hersh was formerly electrical engineer of the Panama Canal, from
which position lie resigned on August 22, 1927.
Mnjor William E. H. Covell, United States Army, was appointed
assistant to the Governor, May 9, 1933, in anticipation of his appoint-
ment as assistant engineer of maintenance on August 29, 1933, vice
Mnj. Joseph C. MelNihaffey, United States Army, upon the relief of the
later from duty with the Panama Canal.
Mr. iclhaird C. P. Thomas was appointed Judge of the District
Court of the Canal Zone by the President, effective June 15, 1933,
vice Judge Janes J. Lenihan, who had resigned on May 8, 1933.
Lt. Comdr. Leon B. Scott, United States Navy, was appointed
captain of the port, Balboa, June 18, 1933, vice Comdr. Guy C. Barnes,
United States Navy, relieved from duty with the Panama Canal.
FORCE EMPLOYED
The supervisory, technical, higher clerical, and highly skilled me-
chanical 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 former
tropical practice of paying Americans and Europeans in gold because
of its stability, while the native or tropical labor was paid in local
currency, based on silver.
Force reports are made on the first and third Wednesday of each
month. The distribution of the force, by organizations, is shown in
the force reports published below for the third Wednesday in June
in 1932 and 1933. For gold employees the force report shows all
who were in service on the date of the report, for silver employees
only those who were at work on that date. Based on the last force
report for June of each year, the gold force decreased from 3,148 on
June 15, 1932, to 3,028 on June 21, 1933, a change of 120 or 3.81 per-
cent; the silver force increased from 9,120 to 9,575, a gain of 455, or
4.75 percent. The combined force changed from 12,268 to 12,603, an
increase of 335, or 2.60 percent.. The silver force is likely to fluctuate
sharply, (due to seasonal or temporary employment; its average during
the past year was lower than in the preceding year.
The gross iiamounts passed for payment of salaries and wages during
the year were as follows: Panama Canal, gold roll, $6,960,826.53,
silver roll, $4,397,484.39, total, $11,358,310.92; Panama. Railroad,
gold roll, $1,021,316.91, silver roll, $1,452,116.85, total, $2,473,433.76.
The total payments on the gold roll were $7,982,143.44, on the silver
roll, $5,849,001.24, making a grant, total of $13,831,744.68, as com-
pared within $15,806,240.12 in the fiscal year 1932. The amounts
shown are the gross earnings, and for the fiscal year 1933 they are the







REPORT OF GOVERNOR OF THE PANAMA CANAL 71

earnings after the deduction of the amounts required to be deducted
under the Economy Acts. For both years they are the earnings prior
to the deductions for services rendered, such as for commissary books,
rent, retirement. fund, etc. In the fiscal year 1933 the Economy Act
deductions totaled $1,230,132.66 and the miscellaneous deductions
for services were $5,4 64,9S3.18.

GOLD EMPLOYEES

The distribution of the gold personnel on the last force report days
of the 2 years is shown in the following tabulation:

Gold force
Department or division De- In- Net d-
June 15, June 21, crease crease crease
1932 1933

Operation and maintenance:
Office.................................................. --------------------------------------------53 54 ...---- 1 ------
Electrical division...------------......---- .----------..-------- 156 145 11 -------- ---
Municipal engineering division..------------------------......... 81 99 ------ 18 ------
Locks division.........------------.......-------............----------------............ 235 207 28 ---.---
Dredging division. ----------------------- ----------- 173 163 10 ---- ----
Madden Dam division------------------------------- 40 65 -- 25 ------
Mechanical division-------------------------------- 446 399 47 ----. --------
Marine division-------------------------------- --- 185 177 8 ------- -----. -
Fortifications...---..................................---------... 17 12 5 ---............----
Total, operation and maintenance--.---------------- 1,386 1,321 109 44 65
Supply department:
Quartermaster-....................................... 191 182 9 ----- --------
Commissary division. ................................ 230 221 9 -------
Cattle industry........................................ 2 2 ---.------------ -
Hotel Tivoli---..........----------..-----...........-------..---------------....... 8 7 1 ........ ........
Hotel Washington..................................... 7 7 ....................--- --------
Transportation........ --.............................. 81 74 7 -------............----
Total, supply department........................... 519 493 26 ---..--- 26
Accounting department ---.--------------............------------..........--.. 194 187 7 ------ -------.
Healib department.................................... 277 276 1 -.--------------
Executive department...-................................ 573 565 8 --------
Total, 3 departments--.---------------------------1,044 1,028 16 -------- 16
Panama Railroad:
General manager...................................... 24 23 1 ---....... --......
Transportation........................................ --77 77 --------------.................-...
Receiving and forwarding agency I.............-....... 73 86 -------- 13 ----....
Coaling stations I...................................... 2 265 --2------------ ---
Total, Panama Railroad............................. 199 186 26 13 13
Grand total--------------------------------- -- 3,148 3,028 177 57 120

1 Coaling stations were consolidated with receiving and forwarding agency, Oct. 1, 1932.

Increases occurred in4of thle 22 units of the organization, as reported
above, decreases in 15. With the consolidation of (lthe coaling stations
with the receiving and forwarding agency the number of orgtiinizattions
reported in the statement of force became 21. The increase of one
in the office organization for operation and maintenance was duc to
the appointment of an assistant to thle Governor in prepm-u2 tion filr
the appointee's relieving the assistant. engineer of miainiteiaiincc upon
the expiration of the latter's tour of duty with the Canal. The
increase of 18 in the force of the miunicipil engineering division was







72 REPORT OF GOVERNOR OF THE PANAMA CANAL

because of work on the enlargement of the Cristobal drydock and
grading and road jobs under the allotment for relief of unemployment.
The force of the Madden Dam division increased by 25 primarily
because the contractor placed his work on a 3-shift basis, necessitating
extension of the supervisory and inspectionnal force. The increase of
13 at the receiving and forwarding agency was due to incorporating
the coaling Jplants force; the total force for the two organizations
decreased by 12.
Decreases were due to the completion of projects or to lessened
activities generally resulting from the decrease in traffic. The changes
in force are not always mathematically proportionate to the changes
in business; in lieu of reduction of force many employees were fur-
loughed at intervals, so as to afford part-time employment to as many
as possible and thus to distribute earnings, and in smaller units of the
organization no proportionate reduction is practicable.
Additional decreases in force were made effective with the termina-
tion of work on June 30, 1933, largely because of reduced allotments
for the fiscal year 1934.

RECRUITING AND TURNOVER OF FORCE

The following table shows additions to the gold force and separa-
tions from it in the fiscal year from July 1, 1932, to June 30, 1933,
inclusive. Employments are classified as made in the United States
or on the Isthmus and separations are classified by cause. This table
covers the fiscal year and is more exact than the comparison of force
on June 15, 1932, with that on June 21, 1933. It includes a number
of separations made after June 21, the majority on June 30, 1933:

Opera- Ac- Pana-
[ion and Execu- Sup- ealth count- a Total
rnanl lie py eat rount- ai.Total
mante- live ply. inl
nance road

Employed or rompiiloyed in the Initedl Staes..... 6 3 3 29 .-..-------.. 1 42
Employed or reemployeid on the Isthmus.......... 82 16 16 13 2 19 148
Total additions.............................. A 19 19j 42 2 20 190
J esicned .- ....-................ ........ ..... .. .... ..... ....... ] _ _525 22 1
Reied1 2-4 21 5 24 6 22 101
Ketireil:
A Ve............................................ 11 2 4 3 1 9 30
)I ubilily ..................................... 1.3 3 4 2 1 5 28
In ioluni:Iry. sep.riili i ... ................... .....2 G 3 ....... 1 3 15
V lunt.ir. sep.iratil .................... ..... ... .. ...... 1 .... ..--------.. .. ..------. 2
InvulunUiry hsep.ilrif1111i.) '0 .ir t r -i-e'i...... 3 2 - - - 2 7
D ie l- ........ .. ......... .. ... ...... ....... i 11 2 2 1 ........ 2 18
R(-inlii on of r e . ....... ... ...- . .......---- .. 3 2 2; 4 8 4 74
i'piraiiJ in of tempuriry 1%iniip .uyient-.. ........... 47 4 12 13 1 - 77
lischartedr for cause-------------------................ ------------2 1 3 1 .. .. 2 9
In. rIi V ... ........................ .. . ..- -....... .......... I ...... ....... .. ..... ...... .
Fuil uri io report back frunom l'eave... ..... ...... .......... ........ ...... ....... ........
T rarifrrqi' i. siltur r-ll - - - - -' ... ... ...-........ ....... 2
Cunm ldelron i if apprntirel'lii ............ 1......... ........ ...... ....... ........ ...... 10
Total separations ------------------------us 4 9 9 19 8 375
Toil separations..... ....................... ]1" 44-11 59 49 19 48 375

i Retired for disability-insane.

Separatinns, the Pa.iiinm Canl ....... 327 Separati.ns.. Panama Railroad............... 48
Addii-o ,s. the I'in.iin:i ('L1n il .... 17u A it ions. 'Panama lIHailruiad ................ 20
Net separations--.....- -........... 157 Net sepairailions-....................---.... 28






REPORT OF GOVERNOR OF THE PANAMA CANAL


The above shows a total decrease of 185 in the combined gold force.
Among the 82 employees retired, as listed above, were 7 in the
Panama Canal organization whlio were separated from the service
involuntarily and, having had 30 years or more of service under the
Government, were retired on full annuity less 5 percent, full annuity
t.o be paid upon their reaching the age of 62 years. This was under
the provisions of the act of June 16, 1933.
The number of persons tendered employment, through the Wash-
ington office of the Pannmni Canil, all above the grade of laborer,
was reported by that office as 07, of whom 49 accepted and were
appointed, covering 15 different kinds of positions. These figures
cover appointments not all of which became effective during the fiscal
year. The number actually entering into employment on the Isth-
mus, through appointment in the United States, is as indicated in
the tabulation. Acceptances and appointments through the Wash-
ington office were 73.1 percent of the tenders. In the preceding year
the tenders numbered 89 und acceptance 58, making the acceptance
65.1 percent of the tenders.
Bused on a gold force of 3,111 at the beginning of the fiscal year,
as shown in the force report for July 6, 1932, the 375 separations
make a turnover rate of 12.05 percent from all causes. For the
fiscal year 1932 the rate was 13.4 percent.
When a position is to be filled efforts are made to fill it by promo-
tion 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 us long as their services are satisfactory, thus building
up loyalty to the organization. Of the 190 gold employees employed
during the past year, 124, or approximately 65 percent, were reem-
ployments; of these, 109 were reemployed on the Isthmus and 15 in
the United States.
At the end of the yeor the applications on file from residents of
the Isthmus for employment on the gold roll numbered approximately
1,100. This is a record number and is due not only to the growth
of American families on the Isthmus, with numbers of children reach-
ing employment. age, but also to reductions of force, aIctual and
contemplated.
During the year arrangements were made by the Washington office
for theli transportation of 1,917 persons from the United States to the
Isthmus. These included new appointees and( employees returning
from leave of absence, and members of their families. Of the sailings,
1,7635 were from New York, 58 from New Orleans, and 94 from P-ilic
coast ports.
18444-33--







74 REPORT OF GOVERNOR OF THE PANAMA CANAL

SILVER EMPLOYEE

.The distribution of the silver personnel toward the close of the
fiscal year, and toward the close of the preceding year is shown in the
following tabulation. The summary is for the days on which the
force report is made; the force may change by several hundred within
a short time according to fluctuations in the demand for labor.

Department or division June 15, June 21, De- In- Net in-
Deparmen or dvson 32 1933 crease crease crease

OperaLion and maintenance.
O -lier.................----------------- ......- . 41 50 --------...... 9 ........--
Electrical division....-----....-----...----------------------- 16 181I 5 -------- --------
Munivipal engineering division........................ 690 1,053 .....-------- 363 -------
Locks division......................---................... 6 2 701 ........ 19 -.--.-
Dreilping division...---------...------------------------- 910 837 73 -..-----. .---..
aiden Dam division .--....---........................ --- 19 124 74 ....... .......--
Mechanical division-----------..............---------..---....--------- 764 745 19 ............---
Marine division..-------------..---..--.------------------ 463 553 -------. 90 .---...-
Fortications.....................---...........---- ......--- ... 95 34 61 .--------.. ....------
Total. operation and maintenance................... 4,029 4,278 232 481 249
Supply department:
rermaser....................................-- --- ..... ---- 1,285 1,433 .-------- 153 .....
Conimissary division.................................. 1,246 1, 155 91 -........ ......-----
C tle industry........................................ --- 97 89 8 .--.-..... .. ....
Hotel T ivoli........................................... 92 90 2 ................
Hotel W asineon..........................--........... 81 78 3 .--------------... ...--
Transportation...............................--.......--- .. 223 216 7 --------... .--......----
Total, supply department---------------....---..------ 3024 3.066 111 153 42
Accounin department-------------------.....--.........------------- 5 5 --.---.. .------- --------
Health department.....----------------------------------- 813 850 ....----. 37 -..----
Executive department..................................... 361 360 1 .- --- ..-----
Total, three departments............................ 1.179 1,215 1 37 36
Panama Railroad:
General manager--......................----------------------------------- 51 73 ........ 22 ....----
Transportation..------------------------------------.................... 31 236 ........ 5 .-----
Receiving and forwarding agency...................... 513 707 --...--. 194 ........
Coaling stations....................................... 93 ....-------...... 93 .. .--- ....
Total, Panama Railroad---------------------------........................... 888 1,016 93 221 128
Grand total... -...................................... 9,120 9,575 437 892 455


Increases were shown in 9 of the 22 units of the organization, as
reported above, and decreases in 12. The increase of 9 shown under
"Office" was in the section of surveys and on account of temporary
employment of machetemen in a survey of unassigned lands on the
west side of the Pacific entrance section of the Canal. In the muni-
cipal engineering division the increase of 343 was due primarily to
work on the drydock at Cristobal and jobs of grading and road
building utinder an allotment of $184,000 for relief of unemployment.
The increase of 19 in the locks division was because of the overhaul
of thle Pacific Locks, as some of the force were engaged in cleaning
up after the resumption of normal operating conditions. In the
marine division the increase in traffic occasioned the employment of a
greater number of extra deck hands to handle lines in the locks. The
increase of 153 in thle quartermaster organization was on account of
building construction, including work on the Cristobal High School






REPORT OF GOVERNOR OF THE PANAMA CANAL


and quarters in the Cristobal and Ancon-Balboa. districts. In the
health department the increase of 37 was due to temporary employ-
ment on refrigerating, roadway, and other improvements in Gorgas
Hospital, an increase of working patients at Palo Seco and to fluctia-
tions in the normal daily force. The increase of 22 in the general
manager's division of the Panama Railroad was due to variations in
the employment of stowers and truckers in the freight house in
Panama City, the number of such employees ranging from 10 or 12
to 50 or more, according to the goods to be handled. Increase of five
in the transportation division of the railroad was due to variations in
the gangs for track maintenance and among the extra flagmen and
brakemen. At the receiving and forwarding agency the increase of
194 was due in part to inclusion of the force at the coaling stations
and in part to use of a grei ter number of dock employees, longshore-
men, stowers, truckers, etc., according to the vessels in port and the
cargo to be handled.
No difficulty was experienced in maintaining the force; on the
contrary, unemployment and the pressure for work presented one
of the problems of the year and occasioned efforts to afford employ-
ment through grading and road-building jobs which employed a
maximum of labor. The total number of employment in the fiscal
year was 4,856 and the number of separations was 4,258. Based on
a silver force numbering 9,116 on July 6, 1933, the 4,258 separations
make a turnover rate of 46.9 percent. At the end of the year the
number of persons seeking employment on the silver roll was approxi-
mately 3,000. Some furloughing among silver employees, as among
gold, was necessary during thle year to conserve funds and to dis-
t ribu te. 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 percent the salary or compensation
paid for the same or similar services to persons employed by the
Government in continent;il United States." Concurrently with
this limitation it has been the policy to pay generally to United
States citizens employed oni the gold roll the full 25 percent 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 provisions of the Economy Acts of June 31,
1932, and March 3, 1933, and the policy of the President since the
Economy Act of March 20, 1933, went into effect, the wu- and slairy
schedules for gold employees in effect on June 30, 1932, remialined
unchanged throughout the year except for the esiblimuenit of a few







76 REPORT OF GOVERNOR OF THE PANAMA CANAL

rates not prnvidi'd in the schedules then in effect. Percentage
deductions front pay were made as required by the Economy Acts.
The w bige onad, consisting of the assistant engineer of maintenance
and 11 rejpresentative, selected by the organizations of employees and
approved by thlie Giovernor, held six meetings during the year in
connection with such matters as minimum time allowance for hourly
employees, subsistence on floating equipment, rates for chauffeurs,
etc.
The salhiry board, composed of the heads of the nine major depart-
mients and divisions of the Panama Canal and Panama Railroad, held
no meetings during the year.
The complaints board, for the purpose of investigating and report-
ing on complaints of employees about working conditions and admin-
istrative actions, etc., referred to it by the Governor, held no meetings
during the year, and no cases were referred to it.

SILVER EMPLOYEES

In line with reductions in the cost of living and reductions in the
pay of employees receiving over $1,000 per year as the result of the
Economy Act of June 30, 1932, rates of pay in the schedule for silver
employees not affected by the Economy Act and in excess of $20 per
month were reduced, effective August, 1, 1932, as follows: Hourly
employees, 1 cent per hour; monthly employees, $2.50 per month;
per diem employees, 10 cents per day. Such reductions remained
in effect until April 1, 1933, when the previous schedule was restored
to its status as of June 30, 1932, and all employees became subject
to the 15 percent deduction from compensation required by the
Economy Act of March 20, 1933.
The silver wage board held one meeting during the year, in con-
nection with adjustment of the schedule of rates of pay in view of the
decreased cost of living. Revision of the index of the cost of living
wais directed and underta ken in collaboration with representatives of
thle organized West Indian employees.
Thie average rates paid to alien employees as of October 1, 1932,
%when the annual general survey was made, as compared with 9 pre-
ceding years, were as follows:

Average rates A average rates

___________ Mo nldy Il rl. !Monthly hourly
001'f.Fe' em loyea--employee emi loyees
rnv Ir h r m4) per hour '
p how 5 ;r; 2.I' nI. . 5 ) .prho

Nor 1 ................. 5 2 s ........... IS1fi. 44 $0.249( j
N o% 1. 19:' 4 .-1 .. 71 55.-.l ll- '-H ........ .* 37 .2 5
N ov. 1 ,PI' .".. . .. .. .. ... 'I s 2'* *S. i (I-I| 1 %31 I .i.l . ... W i fiv 256i0
Nov. 1. 1'1 2; .. 10 lr. i..r.. I* l ............41' .2460l
(PCi. 1. I 5>. -92. -211 1 0I I. 11 .................. 1..3..!4 .241.XU






REPORT OF GOVERNOR OF THE PANAMA CANAL


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
$52.41 for a total of 9,594 positions. At (lthe time of the preceding
annual survey this average was $54.33 for 10,931 positions. The
decrease of $1.92 was due principally to the reductions in the schedule
which went into effect on August 1, 1932.
The average rates of pay shown above were ascertained by making 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 of pay at which these
employees were carried on the time rolls. Average yearly earnings
fall somewhat below the annual equivalents of the average monthly
and hourly rates shown above, for the reason that these employees do
not receive leave of absence with pay excepting sick leave and, con-
sequently, any absences from duty not covered by a physician's cer-
tificate 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 basis 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 but are generally equal to or slightly
in excess of rates prevailing for tropical labor throughout the Carib-
bean area. Surveys of the wages prevailing for tropical labor through-
out the British West Indies and the countries of Central America, as
well as selling prices of certain selected staple commodities, are made
from time to time for purposes 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 rose to a peak
of 168.98 in 1921, but since declined gradually until the 1932 index
figure showed an increase in the cost of living over 1914 of 6.16 percent.
Upon the recommendation of the silver wage board it was decided
to establish a new index, based upon 1932 prices and to correlate the
wage scale to the more recent costs with consideration of revision in






REPORT OF GOVERNOR OF THE PANAMA CANAL


the expenses of employees on account of changes in conditions since
the years of Canal construction, and compilation of data to determine
this index was begun.

SUPERANNUATED ALIEN EMPLOYEES
Alien employees of the Panama Railroad Co. who are no longer able
to perform useful service in any capacity are retired from the rolls and
given either a lump sum payment,, with repatriation, or a small an-
nuity. Since June 1, 1928, 14 such employees have been given lump
sum payments ranging from $25 to $500 and 134 employees were
granted pensions ranging from $7 to $25 per month. Of the 134 pen-
sioned 17 had died to the end of the fiscal year 1933 and one annuity
was canceled, leaving 116 on the pension roll at the end of the year.
The average payment being made at the end of the year was $12.94
per month.
The foregoing applies only to superannuated alien employees of the
Panama Railroad Co. No provision exists for the payment of pen-
sions to superannuated alien employees of the Panama Canal.
To assist somewhat in meeting this problem, domiciliary care for
superannuated alien employees has been provided in connection with
the insane asylum at Corozal, but few of the employees are willing to
stay there, and in any event the facilities available do not allow taking
care of any considerable number of employees, some of whom have
one or more dependents. Moreover, the per capital cost of institu-
tional care thus furnished exceeds the amount it would cost to pro-
vide a small pension and permit the employee to live his normal life
among people of his own race.
The remedy for this situation lies in appropriations by Congress.
The form of legislation desired, and further explanation of the need
of it, and of the cost, are presented below under "administrative
problems."
PUBLIC AMUSEMENTS AND RECREATION
Operation of the Canal clubhouses, with their related activities of
playgrounds, kindergartens, athletic fields, swimming pools, etc.,
continued as in past years but with a reduction in the amount appro-
priated by Congress, and with a greater proportion of the expense
borne by the receipts from charges for admission and services. As
private industry is not permitted within the Canal Zone the supply-
ing and supervision of recreational facilities for the Canal employees
and their families is a function of the Canal organization.
The appropriation in the fiscal year 1933 was reduced by $50,000 to
a net of $60,709 and the balance of the operating expenses was made
up from receipts from charges, amounting to $482,029, and reserves.






REPORT OF GOVERNOR OF THE PANAMA CANAL


Following the opening of Thatcher Highway, with ferry at Balboa,
on September 1, 1932, a bathhouse was opened at Farfan Beach for
gold employees. This is in charge of a gold employee of the boat club
at Balboa with a silver attendant at the beach, who sells refreshments.
Attendance has averaged about 25 persons a day, with about 500 as a
maximum. Attendance is affected greatly by the stages of the tide
and by ferry connections.
A beach for colored employees at the Pacific end of the Canal was
opened on the west side of the Canal, opposite La Boca and to the
south of the ferry slip in the direction of Farfan Point. Steps and a
path were constructed to lend over the hill back of rear range tower
no. 4 but the beach cannot be reached by road. It has been named
"Hideaway Bench" and has proved popular as a picnic grounds.
The attendance on Sundays and holidays is estimated as ranging from
500 to 1,000 persons.
The clubhouses operated in the year were as follows: Gold club-
houses at Ancon, Balboa, Pedro Miguel, Madden Dam, Gatun and
Cristobal, with a boathouse at Balboa and bathhouse at Farfan, and
playgrounds at Ancon, Balboa, Pedro Miguel, Gatun,and New Cristo-
bal; clubhouses for the silver employees were operated at La Boca,
Red Tank, Paraiso, Madden Dam, Gatun, and Cristobal, with a club-
room at Gamboa, and playgrounds at La Boca, Red Tank, Paraiso,
Gatun, Camp Bierd, and Mount Hope. The business activities at the
New Cristobal clubhouse were discontinued during the year, due to
objections by officials of Colon. The clubhouses are open from 7 a.m.
to 11 p.m. daily, including Sundays and holidays. Their activities
and equipment vary somewhat, but the average clubhouse contains a
motion-picture hall, a soda fountain where soft drinks, ice cream, and
light food may be procured, candy and cigar counters, billiard and
pool tables, bowling alleys, reading and card rooms, 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. Baby clinics are conducted weekly, a registered nurse
from the health department being in charge.
During the past. year, in addition to the moving pictures exhibited
practically every evening, there were various entertainments in the
theaters, such as concerts, lectures, patriotic exercises, theatricals,
dancing classes, etc., and at Balboa a traveling circus exhibited 3 days
on the stadium grounds. New seats, upholstered in leather, were
installed in the moving picture halls of the gold clubhouses, except
at Madden Dnm.







SO REPORT OF GOVERNOR OF THE PANAMA CANAL

Due to the climate and termites, practically all of the clubhouse
buildings are in poor physical condition, and particularly those at
Ancon, Balbon, La Boca, and Cristobal should be replaced with new
structures.
ADMINISTRATIVE PROBLEMS

Legislation necessary for improvements in the management of the
Canal, or for the upkeep or extension of its physical plant, is discussed
in the following pages. The form of bills for attaining some desired
changes is set forth below, and following the proposed bills is an outline
of the reasons why their enactment is advisable.

LEGISLATION PROPOSED

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,
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 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 a maximum of $25 per month, nor be granted to any em-
ployee 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.
Repatriation of alien ex-emnployees.-That the sum of $150,000 is appropriated,
out of any money in the Treasury not otherwise appropriated, for expenditure
under the direction of the Governor of the Panama Canal for repatriation of unem-
ployed aliens who have been employed by the Panama Canal or Panama Railroad
Co. on the Isthmus of Panama for three or more years at any time, and repatria-
tion of members of families of such alien former employees; such expenditures
to be for transportation of such alien former employees and members of their
families and for the payment of not to exceed $100 in cash to each such alien
former employee for assistance in rehabilitation after repatriation. The sum
appropriated herein is to be available until expended.
Tolls.-That the sentence of section 5 of the Panama Canal Act, as amended,
which reads, "If the tolls shall not he based upon net registered tonnage, they
shall not exceed the equivalent of $1.23 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 notbased upon
net registered tonnage, they shall not exceed the equivalent, as nearly as may be
determined, of $1.20 per net ton (determined in accordance with the Rules for
the Measurement of Vessels for tihe 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 witli such rules, as amended from time to time)
in the case of vessels not in ballast, or (b) of 60 percent of the current laden
rate per net ton for each net ton (determined in accordance with such rules, as
amended from time to time) in the case of vessels in ballast, Provided, that no







REPORT OF GOVERNOR OF THE PANAMA CANAL


charge shall be made for any space which, under definitions to be prescriberd by
the President, is at all times actually exposed to the weather and the sea, even
though such space is occupied."

DISCUSSION OF PROPOSED LEGISLATION
PENSIONS FOR ALIEN EMPLOYEES
American citizens employed by the Panama Canal or Panama
Railroad Co. are subject to retirement, under the Panama Canal
retirement law, but this provision applies only to American citizens.
The majority of the Canal and railroad force are aliens, and they are
without benefit. of legal provision for retirement when, through
superannuation or other physical disability, they can no longer per-
form their work. The Panama Railroad Co. can and does give to
such of its alien employees pensions ranging from $7 to $25 per
month but there is no authority to do this with employees of the
Panama Canal. All that cain )e done for them now is to offer them
care at Corozal HIlospitil, where there are no acconinmmodations for
their families, or to carry them on the rolls at reduced pay, at rates
from $15 to $35 per month, to perform such work as they can. It
would be much better to pension them outright and let them move
away from the sphere of Canal work.
The cost of caring for these employees, on the basis of an average
pension of $20 per month, has been estimated by the bureau of
efficiency at about $12,000 for the first year, with a gradual increase
to a maximum of $121,000 a year for the twentieth year and each
year thereafter.
The cost is not high, considering the number of employees con-
cerned, and the relief recommended is considered not only humane
but a step toward more efficient, operation through weeding out
those who are no longer capibloe of service and then requiring of
everyone on the active roll tihe normal daily performance of service.
REPATRIATION OF UNEMPLOYED ALIENS
The growth of the population of WVest Indian negroes in the Canal
Zone and in the cities of Panama and Colon, near the ends of the
Canal, has been in excess of the need of labor and, with the decrease
in Canal activities as well as; in business in Panama generally, there
has been acute iineinplyminemnt among both West Indians and natives
of Panama. Partial relief is sought through repatriating a number
of West Indians and their families, and the Republic of Panainn has
requested that the UnitedI States "proceed with tlie repatriation of
unemployed foreign workers who have collected in the cities of
Panama and Colon becaIuse of being left without work in the Canal
Zone.






REPORT OF GOVERNOR OF THE PANAMA CANAL


As these aliens are resident in territory of Panama, the participa-
tion of the United States in the movement would be in paying ex-
penrises of repatriation. The presence on the Isthmus of many of the
aliens is due to their having come to work on the Canal and, while
the United States lihas brought no contract laborers to the Isthmus
since 1913, and has regularly offered repatriation to discharged
laborers who came to the Isthmus either under contract or on their
own account, and lhas taken the initiative in discouraging further im-
migration and requesting P1anama to restrict it, the fact is recognized
that the existing surplus of alien West Indian population in the two
terminal cities is detrimental to the interests of Panama and to the
relations between that country and the United States, and that it is
to the joint. interest of the two governments to apply to the situation
such remedies as are advisable and practicable.
The regular appropriations for the Canal contain each year an
item of $20,000 for expenses of recruiting and repatriation of em-
ployees, American and alien. For the fiscal year 1934 about $10,000
will be available for repatriation of aliens and this will be used for
transportation only. It. may care for all who will apply for repatria-
tion under the present terms. In order that a larger number may
be moved, it is proposed that, under the special appropriation recom-
mended, funds be applied to the transportation of aliens who have
served 3 years or more with the Panama Canal or the Panama Rail-
road, and also to giving to each former employee a lump sum of from
$25 to $100, according to circumstances, to assist, him and his family
in becoming established on their return to their native land. The
cost of transportation plus the starting fund is estimated to average
about $150 per former employee and the figure of $150,000 suggested
for the appropriation is to cover the repatriation of approximately
1,000 families. Whether further appropriations for this purpose
would be needed or justified during the present depression can be
determined later with the benefit of experience gained from the use
of the first appropriation. The making of any expenditures under
this or subsequent appropriations is to be contingent on the furnish-
ing by the Government of Panama of suitable guaranties for the en-
forcement of the immigration and registration laws of that country,
including particularly the prevention of reentry of persons who may
be repatriated at the expense of the United States or the immigra-
tion of other aliens of the class which it is proposed to repatriate.
TOLLS-DUAL-MEASURE'.MENT SYSTEM
The legislation recommended with respect to tolls aims to establish
the measurement of vessels and the collection of tolls on the single and
uniform basis of the rules of measurement prescribed for the Panama
Canal and to remove the variable factor of measurement according






REPORT OF GOVERNOR OF THE PANAMA CANAL


to national registry rules. Tile reasons for desiring this are to estab-
lish a constWnt and equitable system and to protect tile basis of levy-
ing tolls, an'l consequiiently the revenues of tlihe Governiment, against
variations which inmay result from the rules for registry measurement
in the United States, and changes niude in those rules.
On tihe assumption tliit the earning capacity of a ship, i.e., the
space within it which may U ei devoted to Ciiarrying eIargo and pas-
sengers is thie iloper niide for the collection of tolls for the passage
of the ship through a canal, and ruchi is the basis at. all principal
canals in the world, the Paoiriina, Canal rules of measurement were
devised, after extensive udl'rd, to determine tfliat earning capacity
precisely and fairly for the varied types of ships. The rules are
essentially like the Suez Cainail rules, with slight modifications, and
their fitness for the purpose for which devised has not been questioned.
Genesis of rules.-Tlie authority for levying tolls is found in the
Panama Canal Act of August 24, 1912, as a mended. It contains
general provisions for the levying of tolls and authorizes the Presi-
dent to establish rules for ine;i-ureminent of vessels and rates of tolls
within the limitations set by the act. Thle act provided that "Tolls
may be based upon gross or net registered tonnIage, displacement
tonnage, or otherwise"; "may be lower upon vessels in ballast than
upon vessels carrying passengers or cargo"; "when based upon net
registered tonnage for -hiip- of conmnerce the tolls shall not exceed
$1.25 per net registered ton, nor be less than 75 cents per net registered
ton"; and '"if the tolls shall not he 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 fluin the equivalent
of 75 cents per net registered ton."
Pursuant to the authority vested in him by Congress, as above, the
President, issued a proci niat ion under date of November 13, 1912,
whliichli established rates on cominercial ships as follows:
1. On merchant vessels uvarrnm pi lus.wingurs or cargo, $1.20 per net vessel-ton-
each 100 cubic feet-of actual earning capacity.
2. On vessels in ballast without passengers or cargo 40 percent less than the
rate of tolls for vessels with ):1--LILgUrS or cargo.
Tlie determination of tlie "net vessel-ton" or "net tonnage" on
which the charges as above were to be levied was established by the
Panania Canal rules of menisurenient, promulgated by a proclamna-
tion of the President dited November 21, 1913, as put into effect
immediately upon the opening of thie Canal to commercial traffic.
Subsequently, upon a protest. of certain siip) owners regarding
charges on deck cargo, 1lie question of the interpretation of thie act
of Congress regarding tolls chliarges was referred to tlie Attorney
General for decision. Hle decided that thie term "net registered ton-
nnge as used in tlie act must he interpreted to mean the net toninge






REPORT OF GOVERNOR OF THE PANAMA CANAL


of a vessel as measured utinder the rules prescribed by the statutes of
the United States.
Inasmuch as the act. provided that the tolls charges should not
exceed $1.25 per net registered ton, nor be less than 75 cents per net
registered ton, in view of the above decision by the Attorney General,
the President ordered that rules and regulations be issued with re-
spect to the tolls "so that no tolls shall be demanded or collected
upon tiny vessel of commerce which shall aggregate more than $1.25
upon the net registered tonnage as measured under the statutes of
the United States", and so drawn "as to produce a similar result
with respect to the minimum that may be charged." It was antici-
pated by all concerned that the Congress would pass remedial legis-
lation dealing with the subject more completely and satisfactorily,
"but.", to quote from the letter of the President, "until that course
is taken, the way herein suggested seems to me to be the best one to
meet thlie existing situation.
Result of rules.-Net tonnage as measured for national registry is
universally lower than the tonnage as measured in units of 100 cubic
feet of actual earning capacity, and it is the practice of nations to
keep registered tonnage of their ships down, so as to reduce the light
dues and port charges based on it. This practice is generally recog-
nized and accepted, much like appraising property for taxation at
figures lower than the real worth. As the port charges may be a few
cents per net ton, in any event a relatively low figure, the figure for
number of tons on which they are levied is not of great importance;
also, the rate of port charges can be adjusted upward with consider-
ation of the depressed tonnage. But when it comes to a matter of a
charge of $1, more or less, per ton for a service such as transit through
a canal which saves the ship thousands of miles, the net tonnage
becomes of vital concern.
Since the "United States net" is in nearly all cases considerably
lower than the "Panama Canal net," the practical result is that tolls
on laden ships are collected on the basis of $1.25 times the United
States equivalent net tonnage. This would not be objectionable if
the use of United States net tonnage resulted in equitable charges in
proportion to the capacity of the ship. However, they were not
devised to determine such capacity precisely and fairly and are
changed from time to time (usually so as to decrease the net tonnage,
by increasing the exemptions from inclusion in net tonnage) and the
changes often seem illogical and result in inequities between ships,
when used for toll charges. It is to be noted that while the purpose
of the Canal rules of measurement is to include all space which can
be used for earning revenue, national registry measurement aims
often at excluding such spaces from inclusion in net tonnage. The
one system is directed toward justice, the other frequently toward
privilege.






REPORT OF GOVERNOR OF THE PANAMA CANAL


On ships transiting the Canal in ballast, the rate of 72 cents times
the Punnma Canal net prevails, except that the amount so derived
may not exceed $1.25 times the United States net. Due to these
conflicting limitations, many ships with relatively low net tonnage as
measured under United States rules pay the same amount for transit
when laden as when in bnllanst. Ballast ships as a class pay consider-
ably more than the ainount which is "40 percent less" than the
charge for like ships 'when Inden.
The heavier charges on ballast ships caused by the existing rules
are one element in the interference with levying equitable charges.
Assuming that they should not pay over 60 percent of the amount
paid when laden, which was accepted as proper when the Canal rules
were made, they are now being rather heavily overcharged as coinm-
pared with laden vessels.
Difficulties and inequities occur also in levying tolls on laden ships
under the dual system, due to the uncertainty and variability of the
net tonnage as measured under registry rules. Examples are in the
rules concerning shelter deck spaces, passenger cabins, tonnage
openings, scuppers, freeing ports, bulkheads, etc., in which some
change of ruling in connection with United States measurement may
arbitrarily affect the inclusion or exemption of spaces, without rela-
tion to the actual value and use of such spaces for carrying cargo.
The technical details have been explained in separate reports; the
essential point is that the situation results in uncertainty on the part
of both the Canal and its users as to the important matter of tolls
charges, and such charges are determined to a large extent by the
orders and interpretations of an unrelated agency which is concerned
with other matters than the justice of Canal tolls.
In individual instances the inequities resulting from application of
the United States registry rules may affect a ship or fleet unfairly.
Naturally the advantanges gained by one group are reflected as dis-
advantages to their competitors. As applied to traffic as a whole,
the factor of the United States rules results in redu icing Canal tolls.
Reduction of rerenue.s.-The reduction of revenues from tolls on
laden ships occurs because it is possible to reduce the United States
registry measurement without reducing correspondingly the earning
capacity of the ship; and, as the United States equivalent net tonnage
is reduced, the tolls collectible, limited to $1.25 per net ton, so deter-
mined, are reduced correspondingly. In the fiscal year 1917, the
first for which record has been kept of the aggregate United States
equivalent net tonnage of vessels transiting the Canal, such tonnage.
for the 1,803 commercial transits totaled 4,702,063 tons. The net,
tonnage for the same vessels as measured under (lthe Panniniia C.anal
rules totaled 5,798,557 tons. The United States equivalent net
tonnage was accordingly 81.09 percent of thlie Paniamna Canal measure-






86 REPORT OF GOVERNOR OF THE PANAMA CANAL

meint. In such proportion, if we assume a vessel of 10,000 net tons,
Canal meiasuireniment, the United States registry net would be 8,109
tons; or, to drnw nearer to practical comparisons with average actual
ships, a ship of 5,000 net tons, Canal measurement, would be of 4,055
tons as measured under registry rules. On the original Panama Canal
basis, tolls for the transit of a 5,000 net ton ship would have been
$1.20 times the net, tonnage, or $6,000. With the limitation that the
tolls may not exceed $1.25 times the registry tonnage as determined
under United States rules, the tolls collected would be $1.25 times
4,055 or $5,008.75. The tolls were therefore reduced by $931.25 and
amounted to slightly over $1 per Canal net ton.
In the course of the effort to have the Panama Canal rules adopted
as the sole basis of measurement, the Canal administration has pro-
posed that a rate of $1 per Canal net ton be established for laden ships,
60 cents for ships in ballast. On such basis the laden ship of 5,000
net tons would pay $5,000. In the ratio of Canal net to registry net
in 1917 this would have been slightly less than the equivalent of $1.25
times the United States registry net measurement.
Through the years since 1917 the net tonnage as measured under
United States registry rules has been reduced, by virtue of various
rulings of the Commissioner of Navigation and by changes in ships'
structures to take advantage of the rulings, but the Panama Canal
net measurement, which determines interior carrying capacity, has
not decreased. The percentage which the aggregate United States
registry measurement net tonnage has formed of the Panama Canal
net tonnage of transiting vessels in the fiscal years from 1917 to 1933,
inclusive, is as follows:

Fiscal year- Percentage Fiscal year- Percentage
1917..................--------------------..81.09 1926-------------------- 78.52
191.S-------------..-------80.55 1927-------------------- 78.41
1919-------------------- 84.80 1928------..-------------- 77.61
1920-------------------- 82.95 1929-------------------- 76.39
1921---------------_.--81.85 1930-------------------- 75.66
1922-.-------------- ---80.59 1931-------------------- 74.10
1923--------------------80.44 1932--------------------72.84
1924----..---------------- 80.15 1933-------------------- 71.72
1925--------------------79.33

Reverting to the 5,000-ton ship, measured under the Panama
Canal rules, which are constant, in 1933 its net tonnage as measured
under the United States registry rules would be only 3,586 tons, or
71.72 percent as great as its Canal net. Tolls, instead of being $6,000
as originally intended, or $5,000 on the proposed basis of $1 per
Canal net ton, or $5,068.75 on the basis of the United States registry
measurements as in 1917, would be $1.25 times 3,586, or $4,482.50.
In other words, on this hypothetical representative ship the actual
tolls charges under the dual system decreased by $586.25 between






REPORT OF GOVERNOR OF THE PANAMA CANAL


1917 and 1933, or 11.57 percent, due simply to changes and adjust-
ments under the registry rules and not. to any change in rates or in
the earning capacity of the ship.
The above table of percentages indicates a continued downward
trend. There is no definite limit to the decline under present liw.
The revenues of present law and the revenues of thlie Canal are at the
mercy of the officials who establish and interpret the rules for means-
urenment for registry in the United States.
The peculiar effects of the United States registry rules of mineasure-
ment on the net tonnage of vessels, hence on Panama Canal tolls, are
illustrated by the case of the passenger liner Eminpress of Britain, a
large steamer which has made several cruises around the world,
passing through the Suez and Panama Canals. Her net tonnage, as
measured under the Suez rules is 2611,531 tons and for transit through
the Suez Canal she pays $30,741, plus any charge for individual
passengers. The net tonnage of this vessel under Panama Canal
rules is 27,503 tons. Her net tonnage under British regisktry rules is
22,545 tons. Under United States registry rules in effect at the
time of the latest transit of the E mpr as of Britain through the Panama
Cantal her net tonnage measured 15,153 tons, and tolls paid, at $1.25
per ton, were $18,941.25. The United States registry rules set the
net tonnage at more than 7,000 tons less than the British registry
measurement, and the tolls paid for passage through the Panama.
Canal were approximately $11,800 less than the amount paid at Suez.
The main reason for the difference between British and United
States registry measu rement was the exemption of certain so-called
cabin spaces under thle United States rules. One entire upper deck
of the vessel is devoted to lounres, libraries, social halls, smoking
rooms, etc., which under the British rules (and the Suez and Panama
Canal rules) are subject to measurement and inclusion in the net
tonnage. There was no staterooni on the deck. Taking advantage
of an American ruling relative to such spaces in relation to staterooms,
the owners removed from a small cloak and check room the original
equipment and installed a bed, chiffonier, and portable waslistand,
and called it "Apartment A." This secured the exemption of space
amounting to 3,319 fons from inclusion in the net tonnage as de-
termined under United States registry rules, in addition to 4,181 tons
exempted in other possenger spnees under United States rules but
not, under British or Canal rules. Thlie result. is in effect a gift to the
steainship company from thie L'iited States Government of approxi-
mately $9,000 through this one feature alone; as stated, thie Panama
Canal tolls were less tlini those at Suez by about $11,800.
The case of the Empr<' of the vessel and the amounts concerned but is fairly representative
of the principles involved.






REPORT OF GOVERNOR OF THE PANAMA CANAL


Remedy.-Insofar as the necessity of measuring vessels under two
kinds of rules is concerned, this could be terminated by action of the
President, who might order that the tolls be levied on the basis of
net tonnage as determined under the rules of measurement for regis-
try in the United States. This, however, would make things worse
by subjecting the Canal tolls collection completely to the vagaries
of the registry measurements. It would abandon entirely the
scientific, equitable, and stable Canal measurement and substitute
a system not designed as a basis of levying tolls for cargo-carrying
capacity, variable according to minor conditions not affecting ca-
pacity, and subject to changes in accordance with rulings of the
Commissioner of Navigation.
The remedy needed is to get back to the Panama Canal rules of
measurement as a basis and to use them uniformly, applying such
rates as may be prescribed by Congress and the President.
Rates proposed.-As stated, the Canal administration has proposed
the adoption of rates of $1 per net ton for laden ships and 60 cents
per net ton for ships in ballast, on the basis of Canal measurement.
When the suggestion was originally made the proposed basis would
have caused the collection of tolls approximately equal to those then
being collected under the dual system. However, with the decline
in registry net tonnage as measured under the changing United
States rules, the proposed figures would now occasion a moderate
increase on laden vessels generally, with a decrease in charges on
ballast ships; and the tendency to an increase as the result of applying
the Canal rules will grow as the amounts collected under the present
basis continue to decrease. Opposition to remedial legislation has
grown stronger as certain shipping companies have benefited more
and more by the workings of the present system.
Equity of proposed tolls.-Tolls on the basis proposed by the Panama
Canal, of $1 per Canal net ton for laden vessels and 60 cents per ton
for vessels in ballast, would be approximately the same as the present
Suez Canal rates for vessels in ballast and about 14 percent lower
than Suez charges for laden ships. However, the law now proposed
would allow the President discretion to adjust the rates between $1.20
and $0.75 per net ton, Pannmnia Canal measurement, for laden vessels,
the ballast rate to be 60 percent of the laden rate. It would extend
to him the same discretion intended by the Panama Canal Act but
would keep the tolls on the definite, scientific, and equitable basis
of the Canal rules of measurement, accurately and fairly related to
earning capacity. The President might set the rate above or below
$1 per ton, as is justified in his judgment. The main point would
be that an equitable and uniform basis would be in effect and the
charges for transit through the Canal would be fairly related to the
earning capacity of the ship, and the revenues of the Government




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