Front Cover
 Title Page
 Table of Contents
 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 ..
Full Citation
Permanent Link: http://ufdc.ufl.edu/UF00097365/00019
 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
Publication Date: 1934
Frequency: annual
Subject: Politics and government -- Periodicals -- Canal Zone   ( lcsh )
Genre: federal government publication   ( marcgt )
Spatial Coverage: Panama
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: VID00019
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
    Title Page
        Page i
        Page ii
    Table of Contents
        Page iii
        Page iv
        Page v
        Page vi
        Page vii
        Page viii
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
    Section I: Canal operation and trade via Panama Canal
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
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        Page 15
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        Page 44
        Page 45
        Page 46
        Page 47
        Page 48
        Page 49
        Page 50
        Page 51
    Section II: Business operations
        Page 52
        Page 53
        Page 54
        Page 55
        Page 56
        Page 57
        Page 58
        Page 59
        Page 60
        Page 61
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        Page 63
        Page 64
        Page 65
        Page 66
        Page 67
        Page 68
        Page 69
        Page 70
        Page 71
    Section III: Administration
        Page 72
        Page 73
        Page 74
        Page 75
        Page 76
        Page 77
        Page 78
        Page 79
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        Page 91
        Page 92
        Page 93
        Page 94
        Page 95
        Page 96
        Page 97
    Section IV: Government
        Page 98
        Page 99
        Page 100
        Page 101
        Page 102
        Page 103
        Page 104
        Page 105
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        Page 113
        Page 114
        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 157
        Page 158
Full Text









S eI
For sale by the Superintendent of Documents. Washington. D. C. Price 15 cents (paper cover)


Summary-------------------------------------- ----------- .....
Operation and maintenance of the Panama Canal- ---------------- 2
Business operations----------------------------------- -- 2
Administration-government------------------------------------_ 2
Services rendered by the Canal to shipping----------------------- 3
Revenues and expenses ---------------------------------------- 3
Earnings and replacements------------------------------------- 4


Traffic in 1934------------------------------------ ------- t------- 6
Traffic by months-------------------------------------------- 8
Tanker traffic --------------..---------------------------------.._. 8
Number and daily average transits of tankers and general car-
riers- --------------------------------------------- 9
Proportion of tanker tonnage and general net tonnage-------- 10
Proportion of tolls from tank ships and from all other vessels. --- 10
Nationality of vessels----------------------------------------- 10
Commercial traffic through the Panama Canal by nationality of
vessels-- ----------------------------._-----__---___-------- 11
Tons of cargo carried------------------------------------- 11
Foreign naval vessels----------------------------------------- 12
Vessels entitled to free transit---------------------------------- 12
Launches -----------------------------------_______---------------_ 13
Trade routes and cargo ---------------------___------------------ 13
Cargo shipments through the Panama Canal during the past 4
fiscal years, segregated by principal trade routes- ----------- 13
Origin and destination of cargo----------------------------- 14
Principal commodities---------------------------------------- 19
Commodity movement:
Atlantic to Pacific------------------------------------ 19
Pacific to Atlantic------------------------------------ 20
Classification of vessels -----------------------_____________---------------- 20
Laden, ballast, and non-cargo-carrying traffic----------------- 20
Average tonnage, tolls, and tons of cargo per vessel---------------- 21
Steam, Motor, and other vessels making transit -------------------___ 22
Passenger movement at the Canal during 1934---------------.----- 23
Frequency of transits of vessels-------------------------------... 24
Net tonnage of vessels ---------------------------------------_. 26
Number of transits in net tonnage groups--------------------... 27
Dual measurement system ----______------------------------------------ 28.
Hours of operation---------------------------___ -------------------. 31



Lockages and lock maintenance ----- -------------------------- 31
Gatun Locks--------------------------- ------------------------- 32
Pacific Locks ----------- -------------- --------- 33
Power for Canal operation ------------------ ---------- 33
Water supply ------------------------------- ------ 34
Malid'il'i Dam 1]-jct .__6 -------------------- --- 36
Force employed ---------------------- ---- 36
Power plant ---------------------- ------------------------- 36
River control during construction -------------------------------37
Pressure grouting --------------------------------------------- 38
Concrete work------------------------------------------------ 38
Aggregate plants --------------------------------------- 39
Electrical and mechanical ------------------------------------- 40
Saddle dams, borrow pits, quarries, and roads--------------------- 41
Ridge tightening _------------------- ---- 41
Clearing in reservoir------------------------------------------- 42
Earnings, deductions, and payments----------------------------- 42
Comnipletioi of work-status of whole project--------------------- 42
Maintenance of channel and improvement projects ------------ 42
Canal improvement work-------------------------------------- 43
Improvement project no. 1--------------------------------- 43
Improvement project no. 3 --------------------------------- 44
Improvement project no. 5--------------------------------- 44
Improvement project no. 6 --------------------------------- 44
Improvement project no. 9--------------------------------- 44
Gaillard Cut __---------------------------------- ------------ 44
Atlantic entrance, Cristobal Harbor and Gatun Lake---------- 44
Pacific entrance, Balboa Harbor and Miraflores Lake---------- 45
Auxiliary dredging:
North Cove stock pile ------------------------------------- 45
Dredging station, Gamboa -------------------------------- 45
Slides ------- ----------------------------------- 45
Subsidiary dredging activities ------------------------------------- 46
Equipment ------------------------------------------------------- 47
Gamboa town site ------------------------------------------ 47
Aids to navigation ------------------------------------------------ 47
Accidents to shipping ---------------------------------------------- 48
Salvage operations------------------------------------------------ 49
Meteorology, hydrology, seismology --------------------------------- 49
Precipitation ------------------------------------------------- 49
Air temperatures ---------------------------------------------- 49
Winds and humidity ------------------------------------------- 50
Tides.------------------------------------------------------- 50
qei.-i in 1w-'V --------------------------------------------------- 50
Transit of United States Fleet-------------------------------------- 50
Rules and regulations---------------------------------------------- 51


Panama Canal business operations ---------------------------------- 52
Mechanical and marine work ---------------------------------- 53
Drydock and marine work ----------------------------- 54
Other work-- -_ ---------------------------------- 56
Financial------ ------------------------------------------ 56


Panama Canal business operations-Continued. P t
Electrical work-------------------------------------------- 57
Purchases and inspections in the United States-------------------- 58
Ship chandlery and other storehouse supplies -------------------- 60
Fuel oil, Diesel oil, gasoline, and kerosene------------------------ 61
Fuel and Diesel oil--------------------------------------- 61
Gasoline and kerosene- _-------------------------------- -- 61
Storage facilities---------------------------------------- 61
Obsolete and unserviceable property and equipment --------------- 1
Building construction and maintenance ------------------------- 62
Termites------------------------------------------------ 62
Quarters for employees----------------------------------- 62
Gold employees ------------------------------------ 62
Silver employees ------------------------------------ 63
Motor and animal transportation----------- -------------------- 63
Panama Canal press----------------------------------------- 64
Revenues derived from the rental of lands in the Canal Zone ------- 64
Experimental gardens ------------------------------------ ---- 64
Business operations under the Panama Railroad Co ------------------ 65
Receiving and forwarding agency-------------------------------- 65
Harborterminals-------------------------------------- --- 65
Canal Zone for orders-------------------------------------- 66
Commissary division----------------------------------------- 66
Sales-------------------------------------------------- 66
Purchases---------------------------------------------- 67
Maniufactuiiring plants------------------------------------ 67
Hotels and restaurants -------------------------------------- 68
Cattle industry--------------------------------------------- 68
Beef cattle -------------------------------------- 68
Dairy farm ------------------------------------------ -- 69
Panama Railroad Co. lands and leases ------------------------ 9
Telephones and telegraph -------------------------------- 69
Coal-------------------------------------------------------- 70
Panama Railroad-__----------------------------------------- 70
Panama Railroad steamship line ------------------------- 71

Operation and maintenance ---------------------------------- 72
Supply----------------------------------------------------- 72
Accounting--------------------------------------------------- 72
Executive -------------------------------------------- 73
Health------------------------------------------------------ 73
Panama Railroad Co------------------------------------------ 73
Changes in organization and personnel------------------------------- 73
Force employed --------------------------------------------------- 74
Gold enmployees.---------------- ------------------------ 74
Increases and decreases in force ---------------------------- 74
Recruiting and turnover in force --------------------------- 75
Silverenmplo es ------------------------------------------- 76
Wage adjustments------- ------------------------------------- 78
Gold employees ----------------------------------- 7
Silver employees ----------_--------------------------- ------ 78


Superannuated alien employees -----------------___-------------------- 80
Public amusements and recreation-----_------------------------------ 81
Administrative problems -------------------------------------------_ 82
Legislative recommendations ----------------------------------- 82
Pensioning alien employees --------------------------------- 82
Tolls----------------__ _------------------------------------ 82
Discussion of proposed legislation------------------------------- 83
Pensioning alien employees--------------------------------- 83
Repatriation of unemployed aliens--------------------------- 84
Tolls-Dual measurement system -------------------------- 85
Genesis of rules -------------------------------------- 86
Result of rules --------------------------------------- 87
Reduction of revenues---------------------------------- 89
Remedy--------------------------------------------- 91
Rates proposed -------------------------------------- 91
Equity of proposed tolls------------------- ------------ 92
General program ------------- -------------93
Work in fiscal year 1934 --------------------------------------- 94
Work in fiscal year 1935--------------------------------------- 94
Explanation of 1935 projects -------------------------------- 94
Grading for building sites-Gatun ----------------------- 94
Storehouse and roads, Cristobal shop area ---------------- 95
Quarters for American employees ---------------------- 95
Dock 14, Cristobal----------------------------------- 95
Drydock crane, Cristobal------------------------------ 95
Conversion of Pedro Miguel restaurant to district quarter-
master's office and post office------------------------- 95
Conversion of Balboa restaurant to police station and magis-
trate's court----------------------------------- ----- 95
Towing locomotive ---------------------------------- 95
Rebuilding Fort Randolph Road------------------------ 96
Additional needs ---------------------------------------- 96
Unemployment --------------------------------------------------- 96
Capacity of Canal------------------------------------------------- 97
Study of Panama Canal and Panama Railroad Co--------------------- 97

Area of the Canal Zone -------------------------------------------- 98
Population of tihe Canal Zone --------------------------------------- 98
Public health ----------------------------------------------- 99
Vital statistics------------------------------------------------ 99
General death rate---------------------------------------- 100
Birthrates, including still-born ------------------------------ 100
Death rates among children under 1 year of age--------------- 100
Principal causes of death----------------------------------- 101
Malaria -------------------------------------------------- 101
Hospitals and dispensaries-------------------------------------- 101
Smallpox vaccination ------------------------------------------ 102
Quarantine and immigration service----------------------------- 102
Municipal engineering ------------------------------------------- 104
Water supply -----__-----_--------------------------------------- 104
Sewer systems------------------------------------------------ 105


Municipal engineering-Continued. Page
Road construction------------------------------------------ 105
Bolivar Highway---------- -------------------------- 105
New town site, Gatun- -------------------------.----------- 105
Cristobal drydock------------------------------------------- 105
Dock 15, Cristobal-------------------------------------------- 106
Cities of Panama and Colon---------------------------------- 106
Water purification plants and testing laboratory ----------- -------106
Ferry service -------------------------------------------------- 107
Public order -------------------------------------------------- 107
Fire protection------------------------------------------- ----- 109
District court --------------------------- -------------------- -- 109
District attorney------------------------------------------------- 110
United States marshal--------------------------------------------- 110
Magistrates' courts--- -------------------------------------------- 111
Balboa--------------------------------------------------- 111
Cristobal---------------------------------------------------- 111
Pardons and reprieves------------------------------------------- 111
Public-school system -------------------------------------------111
Postal system---------------------------------------------------- 113
Air mail---------------------------------------------------- 114
New legislation----------------------------------------- --- 115
Customs --------------------------------------------------------_--- 115
Shipping commissioner-------------------------------------- ------- 116
Administration of estates---------------------------------------- 116
Licenses and taxes--------------------------------------------- 116
Foreign corporations--------------------------------------------- 117
Insurance--------------------------------------------------- 117
Immigration visas------------------------------------------------ 117
Relations with Panama----------------------------------------- 118
Commercial aviation-------------------------------------------- 118
Codification of the laws of the Canal Zone------------------- -------- 119

Accounting system -------------------------- ------------------- 120
Operations with Panama Railroad funds--------------------------- 121
Operations of the Panama Canal---------------------------------- 121
List of tables:
General balance sheet----------------------------------__.---------- 122
Assets (tables 2 to 13, inclusive) ---------------------------- 122
Liabilities (tables 14 to 23, inclusive) ------------------------ 122
Operations for profit and loss (tables 24, 25, 26)--------------- 122
Miscellaneous (tables 27 to 59, inclusive) ---------------.----- 122
Addenda not published (tables 28 to 59, inclusive) -------------------- 122



The material in the annual riiport 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 or-
ganization; 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 Washiij- tin 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 euinrieir.
Assistant engineer of maintenance, report of-
Electrical division, report of electrical Clii n er.
Municipal engineering division, report of municipal engineer.
Division of lock operation:
Atlantic locks, report of assistant superintendent.
Pacific locks, report of assistant superiiitident.
Office engineer, report of.
Section of surveys, report of chief.
Gatun Dam and backrill-, 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.
District attorney, report of.
District court, report of clerk.
Marshal, report of.
Land agent, the Panama Canal and Panama Railroad Co., report of.
Purchasing department, rep it of the general purchasing officer and chief
of Washington office.
Public defender, report of.




November 6, 1934.
Washinqton, 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, 193)4.
Need of enactment of two laws to remove obstacles to the most
effective operation of the Canal is discussed in section III. One of
these is to provide for disability pay for alien employees who have
arrived at physical iiunfitness for effective work and should be re-
moved from the rolls. The other is for the adoption of a more equi-
table, precise, and controlled method of levying tolls on vessels using
the Canal, so as to render justice to all users of the Canal and also
to protect the revenue due the Government. Both have been ex-
plained fully in more extensive form than is practicable in this
report. Enactment by Congress of legislation to attain these im-
provements is earnestly recommended.
J. L. ScIIHLEY, Governor.

Administration of the Panama Canal involves three main ele-
ments: (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 food-
stuffs, ships' chandlery, and other essential supplies, marine and rail-
way repair shops, terminal facilities for the transshipment of cargo
and passengers, operation of the Panama Railroad on the Isthmus
and the Panama Railroad Steamship Line between New York and
the Isthmus, quarters for the working force, and other adjuncts


essential to the economical and efficient operation of the Canal, the
majority of which elsewhere would commonly be conducted by pri-
vate enterprise; and (c) the administration of the government of the
Canal Zone, populated by 8,633 American civilians, 9,859 Americans
in military and naval forces, and 21,331 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.


The primary function of the Panama Canal is to provide and
maintain 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.
Throughout the year the Canal force maintained its high standard of
expeditious service not only in the actual transiting of ships but in
providing emergency repairs, fuel, supplies, and the various supple-
mentary services incidental to shipping.
There were no interruptions to traffic during the yenra.


Secondary only to the operation of the Canal is the function of
supplying various services to shipping. Commerce requires 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 replenisliiiient. of food sup-
plies, and similar essential services. These services, under coordi-
nated and centralized control, are provided by the various business
units of the Panama Canal and Panaiinia Railroad Co. The coordi-
nation 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.


The usual functions of Government, such as schools, police and
fire protection, quarantine, public health, immigration service, posts,


customs, aids to navigation, ,teaniboat inspection, hydriigraphic and
mineteorological w(irk, water supply, sewers, construction and miainte-
nance of streets, and similar activities which, in the United States,
are directed by various officers of the national, State, and municipal
government, are intriusted in the Canal Zone to the Governor, and
are executed under his authority and responsibility. This centrali-
zation of all governmental activities under one head simplifies the,
problem of economical and efficient admini-tration.


The most important items of the business of the Canal and its
adjuncts, covering principal services to shipping are expressed nu-
merically in the following table, which presents a comparison of
the activities during the fiscal year 19334 with the 2 yea is immediately

Fiscal year 1932 Fiscal year 1933 F i cal year 1934

Transits of Canal by ships paying tolls----------------- 4,506 4,494 5,533
Free transits of ocean vessels ---------------------------- 473 445 503
Total transits of ocean vessels------------------ 4,979 4,939 6,036
Transits of launches, not counted in commercial traffic.- 94 105 175
Number of lockages during year:
Gatun Locks -----------------. ----------------- 4,615 4,380 .5,365
Pednr' Mrtiiel Locks----------- -------------- 4,842 4,557 5,507
Mfir fores, Locks ------------------------------ -- 4,826 4,505 5,483
Tolls levied on ocean vessels------------------------- $20,707,377.05 $19,620,458.53 $24,063,789.45
Tolls on launches (not included in above).-------------- $478.94 $752.23 $1,913.57
Total tolls----.------------------------------ $20,707,855.99 $19,621,210.76 $24.065,703.02
Cargo passing through Canal (tons)--------------------I8. ,M 1, t4,. h70. :'le 124.7l I7. 7 l
Net lonn.agoe (Panama Canal measurement) of transiting
vessels------------------------------------------ 23,625,419 22,821,876 28,566,595
Cargo per net ton of ocean vessels, including those in bal-
last------------------------------------------------ .8384 .7965 .8653
Average tolls per ton of cargo, including tolls on vessels
in ballast ------------------------------------------ $1.0454 $1.0794 $0.9735
Average tolls per Panama Canal net ton of vessel meas-
urement, i ncludi o2 vessels in ballast----------------- $0.8765 $0.8597 $0.8423
Calls at Canal ports by ships not transiting Canal------ 874 854 989
Cargo handled and transferred at ports (tons) ----------- 989,534 1.026,128 1,157,649
Coal, sales and issues (tons)---------------------- 65,463 39,327 52,657
Coal, number of commercial ships bunkered------------ 277 197 196
Fuel oil pumped (barre, -------------------.--- ------. 7,767,356 6,022,663 9,710,247
Fuel oil-number 'f ship- rv-d. other than vessels op-
erated by the Panama Can.ia.il.... .......-------- 1,407 1,188 1,724
Ships repaired, other than Panama Canal equipmentt. 593 501 513
Ships drydocked, other than Panama Canal equip-
ment . ...---------------------------------- -------------- 125 89 49
Provisions sold to commercial ships (commissary sales) - $458,943.30 $294,416.69 $330,570.82
Chandlery sold to ships (storehouse sales)--...------------ $33,895.95 $26,386.27 $28, 165.99


The net revenues from Canal operations proper were $16,810,-
348.06, as compared with $10,775,500.75 last year. Net revenues
from business operations under the Panama Canal for 1934 were
$1,366,755.12. The combined net revenues actruing from the Canal
and its business units totaled $18,177,103.18. The capital investment


at the beginning of the fiscal year was $539,200,059.23, and the net
revenue represented a return of 3.37 percent on the investment, as
(11ompared with 2.23 percent the preceding year.
The foregoing figures do not include the operations carried on
with funds of the Panama Railroad Co.; these resulted in a net profit
of $1.156,738.14 for the year, as compared with $784,432.28 for the
preceding year, an increase of $372,305.86.


With respect to the operations of the Panama Canal, the show-
ing as to earnings and expenses, considered by itself, is gratifying,
but lest it be made the basis of premature optimism, it should be
< explained that the major part of the increased return is due to tem-
porary reductions in salary and wage scales enforced under the
economy act and now largely retoreil, and to postponements of
channel dredging current maintenance, now accumulated to a point
where this essential work cannot longer be deferred.
Analysis of the operating statistics for the past year show that,
notwithstanding a substantial increase in tolls receipts, which nor-
mally would be accompanied by increased operating expenses, ac-
tually such expenses were sharply reduced, which clearly reflects an
abnormal condition. Even as this report is being written, advance
compilations of net revenue for the first month of the new fiscal
year indicate a net return of only 2.66 percent. The Canal adminis-
tration is thlierefore faced with the fact that, except for the strained
efforts of the past year, net earnings since 1930 have continued below
3 percent of the capital investment, accepted as the minimum of fair
The past fiscal year marked the close of 20 years of successful
operation of the Panama Canal; in fact, its dependable and efficient
service in shortening the highways of the world's commerce is now
taken for granted.
One of the elements which have made this possible is the high
state of maintenance in which all wearing and deteriorating parts
are kept. It is estimated that of the total capital values of the
Panama Canal there are approximately $150,000,000 of general
structural values subject to deterioration and requiring regular re-
pair and periodical replacement, but without reserve funds from
operating revenues by which to defray the costs thereof. These have
been in service for 20 years.
Some of this property, such as dams, breakwaters, and concrete
buildings, is still in excellent condition and requires but little ex-
penditure for upkeep; but on other portions deterioration has
reaclied a point where replacement should not longer be deferred.


These necessary replacements include not only the frame buildings
originally erecteil to serve during the period of the contribution of
the Canal but also docks, highways, etc., which, due to ordinary
deterioration and to earth slides and other unfinre-vEi conditioni-.
have been rendered inadequate or unserviceable for pre-init require-
ments or uneconomical to maintain.
There seems to be a general misunderstanding that because the
earnings of some of the activities of the Canal are authorized for re-
expenditures by the Governor, all nece sary repluiinents can be
financed from this source. This is far from true as -1ch earnings
are comparatively small in amount and may be reexpended only
upon the plant facilities from which the earnings were derived. The
general structures I refer to are those which are not directly self-
supporting, but which, nonetheless, are essential to the priinia ry func,
tion of the Canal in the earning of tolls, which revenue must be
covered directly into the Treasury, thus replacement funds are not
available for this most essential property, save by direct appropria-
tion by the Congress.
As a result of this limitation upon Canal fiscal policy, while it has
been generally possible to maintain the self-supporting auxiliary
plant structures in a satisfactory manner, the economies enforced on
the Canal during the last few years through failure to provide the
replacement funds requested for other structures has created a con-
dition of deferred maintenance which is poor economy and cannot
be continued without threatening the efficiency of the CanaL


Transit of commercial vessels, 5,533, were 1,039 more than in 1933,
a gain of 23.1 percent, and the daily average transits rose from 12.31
to 15.16. This compares with 12.31 in 1932, 15.15 in 1931, 16.95 in
1930, 17.37 in 1929, and 17.63 in the peak year of 1928. The four
main features of traffic statistics all made gains over the previous
fiscal year as follows: Transits, 23.1 percent; net tonnage, Panama
Canal measurement, 25.2 percent; tolls, 22.6 percent; cargo tonnage,
36 percent. Transits and net tonnage were higher than any year
since 1930, and tolls and cargo since 1931.
The history of Canal traffic has reflected five distinct trends in the
world's economic and commercial developments. 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. The rise
in California oil production was primarily responsible for raising the
transits to 3.967 in 1923 and 5,230 in 1924. Traffic continued at about
this le-vel until the business expansion brought a considerably in-
creased volume toward the end of the last decade when transits
reached the peak of 6,456 in 1928, tolls $27,127,376.91, cargo 30,663,006
tons in 1929, and Panama Canal net tonnage 29,980,614 in 1930.
From these levels, the world-wide depression brought on a sharp
Irestriction of traffic until the volume dropped to 10.13 in daily aver-
age transits and $40.479 in daily average tolls (August 1932). A
gradual increase from that point was made, coincident with the gen-
eral improvement in economic conditions, and total traffic for the fis-
cal year 1933 very nearly equaled that of the previous year. Through-
out 19)4 the gains were more pronounced, each month being substan-
tially higher than the corresponding month of the previous year, and
each month in 1934 being higher than the previous month in daily
average number of transits from the beginning of the year (July
19"1:1:) until March 1934, after which three successive monthly declines
occurred to the end of the year. The decline was particularly marked
in June. when the number of transits dropped off 99 less than the pre-
vious month and were 70 less than the monthly average of 461.
Strikes on the west coast which tied up shipping, and sca.oiial fac-
tors. are believed responsible for much of this loss.


In the fiscal year 1934 the transits of naval and other public ves-
sels of the United States Government, public vessels of the Colom-
bian and Panamanian Governments, and vessels transiting solely for
repairs, none of which pay tolls, numbered 503, as compared with 445
in 1933. The total of toll-paying and free transits combined, which
includes all seagoing vessels of 20 tons or more, numbered 6,03C, in
comparison with 4,939 in 1933, making daily averages of 16.53 and
13.53, respectively.
Net tonnage of the commercial vessels passing through the Canal in
1934 aggregated 28,566,595 tons, Panama Canal measurement, an in-
crease of 25.2 percent in comparison with 1933. Tolls in 1934
amounted to 24.,063,789.45, increasing 22.6 percent in comparison
with tolls in the preceding year.
The percentage gain over the previous year in net tonnage (Pan-
ama Canal measurement) was higher than the percentage increase in
transit, due to a slightly higher average net ton per vessel. The pro-
portion of small vessels under 100 tons was 4 percent of the total
whose tolls are based on net tonnage, compared with 5.3 percent in
Both transits and Canal net tonnage showed greater percentage in-
creases than the tolls collected, which was possible because of the ef-
fect of the proviso 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 1934 amounted to 24,718,651
tons and was 36 percent. higher than the cargo in 1933. Traffic in
both directions contributed nearly equally to the increase in cargo ton-
nage, the gain in shipments from the Atlantic to Pacific being 36.7
percent, and from the Pacific to the Atlantic 35.7 percent. This
phase of the traffic is discussed in detail under "trade routes and
The receipts from tolls reported by the accounting department for
the fiscal year 1934 were $24,065,065.16. This figure includes tolls on
launches, which are not included in commercial traffic of ocean-
going ships, and also has been adjusted in accordance with refunds
for overcharges and supplemental collections in the event of under-
charges. These items account for the difference of $1,275.71 between
the accounting figures and the figure for tolls levied on commercial
traffic as reported in the following studies of traffic, which are based
on tolls levied at the time of transit.


Commercial traffic figures for each fiscal year since the
opened to navigation are shown in the table below:

Canal was

Fiscal ear ended June 30- uNumber of Panama Canal Tolls Tons of cargo
Fiscal year ended June 30- transits net tonnage

1915 1--------------------------------------- 1,075 3,792.572 $4,367,550.19 4,888,454
1916 2 -- ------------------------------- 758 2,396,162 2,408,089.62 3,094,114
1917---------------------------------------- 1,803 5,798,557 5,627,463.05 )7,058,563
1918 --------------------------- ------------- 2,069 6,574,073 6,438, 853. 15 7,532,031
1919 -------------------------------------- 2,024 6,124,990 6,172,828.59 6,916,621
1920 --------------------------- ------------- 2,478 8,546.044 8,513,933.15 9,374,499
1921 ----------------------------------- --- 2,892 11,415,876 11,276,889.91 11,599,214
1922---------------------------------------- 2,736 11,417,459 11,197,832.41 10,884,910
1923 ----------------------------------- ----3,967 18,605,786 17,508,414.85 19,567.875
1924 ---------------------------------------- 5,230 26, 148,878 24, 290.963. 54 26, 9.4, 710
1925 ---------------------------------------- 4,673 22,855,151 -21, 1I:in, 523. 51 23,958,836
1926-- - ---5,197 24,774,591 22,931,055.98 26,037,448
1927---------------------------------------- 5,475 26,227,815 24, 22. 830. 11 27,748,215
1928 ----------------- ----------------------- 6, 456 29,458,634 2', 944, 499.77 29, 630, 709
1929------------------------------------- 6,413 29,837,794 27,127,376.91 30,663,006
1930-------------------------------------- -- 6,185 29,980,614 27,076,890.01 30,030,232
1931 --------------------------------------- 5,529 27, 792, 146 24, 645, 456.57 25,082, 800
1932 -------------------------------------- 4,506 23, 625, 419 20,707,377.05 19,807,998
1933 ---- ---------------------------------- 4,494 22,821.876 19,620,458.53 18,177,728
1934---..---.---------------------------- 5,533 28,566,595 24,063,789.45 24,718,651
Total----------------------------- 77,493 366,761,032 336, 549,076.35 363,766,614

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


The commercial traffic during each month of the fiscal year is sum-
marized in the following table, in which are inserted for comparison
the figures for the preceding year:


April -----------
Average per

Number of

Panama Canal
net tonnage


Tons of cargo

1932-33 1933-34 1932-33 1933-34 1932-33 1933-34 1932-33 1933-34

326 401 1,676,492 2,051,128 $1, 468, 728. 36 $1,732,164.93 1,259,981 1, 699,039
314 416 1,658,112 2,159,995 1,440,848.87 1,829, 754.49 1,349,453 1,914,014
353 408 1,868,391 2,096, 538 1, 598, 265. 98 1, 758, 587. 41 1,347,144 1,797,497
394 467 1,988,133 2,416,200 1,714,779.06 2,036,909.16 1,582,261 2,125,927
388 463 2,035,796 2,395,359 1, 756,865. 84 2,001, 692.77 1,531,509 1,949,913
431 496 2,080,069 2,1.1 656 1,781,940.03 2,204,134.64 1,621,581 2,191,683
415 500 2,069,218 2, :."', 131 1,762,808.56 2,160, 679. 83 1,463,503 2,087,292
368 468 1,832,658 2,462,760 1, 575, 708. 35 2,079,696.80 1,434,862 2, 124. 440
399 538 1,989,044 2,703,372 1,718,908.41 2, 281, 485.72 1, 738, 227 2, 4,5, 3 7
370 495 1,839, 597 2, 493, 606 1, 554, 250.14 2,121, 678. 33 1,527,978 2,291,392
372 490 1,883, 249 2,567,555 1,617,943.65 2, 148,026.66 1,629,982 2,303,411
364 391 1,901,117 2, 020,295 1, 629, 411.28 1,708,978.71 1,691,247 1,768,656


5, 533 22, 821, 876
461. 1 1, 901, 823

28, 566, 595

19, 620,458.53
1, 635, 038. 21


18, 177, 728

24, 718,651


Transits of tank ships during the fiscal year 1934 totaled 942, an

increase of 306, or 48.1 percent in coinp;irison with the 1933 total of
636. Tanker transits in 1934 comprised 17 perceiit of the total com-
mercial trainsits, made up 20.4 perniit, of the total net toinnge (Pan-


ama Canal ineasureiiient), paid 21.5 percent. of the total tolls col-
lected, and carried 23.9 percent of the cargo which passed through
the Canal.
Cargo carried through the Caniial in tank ships, during the fical
year 1934 amounted to 5,909,531 tons, in comparison with 3.808,067
in 1933, an increase of 2,101,464 tonsi, or 55.2 percent. Segregation
of the. 1934 traffic by direction of transit shows that 377,666 tons of
tanker cargo went through from the Atlantic to the Pacific, and
5,531,865 tons from the Pacific to the Atlantic.
Of the total miineral oil cargoes carried through the Canal during
the fiscal year 11"34, approximately 27 percent was gasoline, benzine,
and naphtha; 23 percent crude oil; 41 percent gas and fuel oils; and
the remainder, 9 percent, lubricating oils and kerosene.
The three tables below, which begin with the fiscal year 1923 and
thus cover the period during which tankers have been an important
component of the traffic through the Canal, show the composition
of the traffic as divided between tank ships and all other coiii'rcial
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 proportions of net tonnage; and the amounts and
proportion of tolls:

Number anid daily average transit of tankers and general carriers

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

1923---------- -------------------------- 913 3,054 3,967 2.5 8.4 10.9
1924------------------------------------ 1,704 3,526 5,230 4.7 9.6 14.3
1925----------------------------------- 1,079 3,594 4,673 3.0 9.8 12.8
1926------------------------------------ 1,090 4,107 5,197 3.0 11.2 14.2
1927-.... -------------------------------- 1.324 4,151 5,475 3.6 11.4 15.0
1928.----------- ----------------------- 1,121 5,335 6,456 3.0 14.6 17.6
1929------------------------------------ 1,083 5,330 6,413 3.0 14.6 17.6
1930--------------- ------------------- 1,218 4,967 6,185 3.3 13.6 16.9
1931 -- -- ----- --------- ------. 944 4,585 5,529 2.6 12.6 15.2
1932----.-------------------------------- 612 3,894 4,506 1.7 10.6 12.3
1933-------------- --------------------- 636 3,858 4,494 1.7 10.6 12.3
July -------------------- ------------- 58 343 401 1.9 11.0 12.9
AuL'Ut.............. .. 59 357 416 1.9 11.5 13.4
Seprember.......... ......... 63 345 408 2.1 11.5 13.6
October............. . .......... 79 388 467 2.6 12.5 15.1
November ---------------. 86 377 463 2.9 12.5 15.4
December........... .. ............. 88 408 496 2.8 13.2 16.0
January ------------------------------ 80 420 500 2.6 13.5 16.1
February -------------------.---------- 81 387 468 2.9 13.8 16.7
March..------------------ -------- ---- 92 446 538 3.0 14.4 17.4
April..... ..... .. ............... 86 409 495 2.9 13.6 16.5
May...--.------------------------------ 95 395 490 3.1 12.7 15.8
June-------------------------------- 75 316 391 2.5 10.5 13.0
Totl.............................. 942 4,591 5,533 2.6 12.6 15.2

t'79i<7-34- --2


Proportions of tanker and general net tonnage

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

1923--------------------------- 5,374,384 13,231,402 18,605,768 28.9 71.1 100.0
1924---------- ---------------------- 10,212,047 15,936,831 26,148,878 39.1 60.9 100.0
1925---------. ------------------ 6,424,622 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. ------------------------ ----- 6,243,969 23,214,665 29,458,634 21.2 78.8 100.0
1929M ------------------------ ---- 5,844,263 23,993,531 29,837,794 19.6 80.4 100.0
1930 --------------------------- 6,564,138 23,416,476 29,980,614 21.9 78.1 100.0
1931 ------------.---------------- 5,284,873 22,507,273 27,792,146 19.0 81.0 100.0
1932 ------------- ----------------- 3,570,398 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
1934.--- -------------------------- 5,811,995 22,744,600 28,556,595 20.4 79.6 100.0

Proportions of tolls from tank 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------------------- 9,071,835.65 15,219,127.89 24,290,963.54 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 17,304,888.05 22,931,055.98 24.4 75.6 100.0
1927-------------------- 6,658,806.90 17,570,023.21 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 ------------------- 5,145,632.19 21,981,744.72 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------------------- 4,682,320.14 19,963,136.43 24,645,456.57 19.0 81.0 100.0
1932------------.------- 3,197,136.29 17,510,240.76 20,707,377.05 15.4 84.6 100.0
1933------------------- 3,393,311.02 16,227,147.51 19,620,458.53 17.3 82.7 100.0
1934------------------- 5,161,787.40 18,902,002.05 24,063,789.45 21.5 78.5 100.0


Segregation of the traffic through the Canal during the fiscal year
1934, by nationality, and showing transit, mlei:1urm'iet tonnage,
tolls, and tons of cargo, is presented in the following table:


Commercial traffic thrv-1ih the Panama Canal, by nationality of r ::.-, .


British. ..
Chileian . ......

),11 11ni1 . . . .

Danzig --------
German ------
Honduran. ------
T:ipia ne-c'-. .
11>\]*.]ll. .
Net herl:inrir. ...
Panamanian. -. -
Peruvi.i .......
Russian -------
?lp.iniiih . . . ..
Snic' .n .i ..h . .
United States... ---

Fiscal year:
1934.... ----.
1933 -------

ber of



I I Measurement tonnage

Canal net

636. 831
.%.!", 101

535, 315


28, 566,595


71. 953
1,. 498
1, 133,535
356, 512
1,471.. 971
2, 779

391, 555

20,348, 641
16, 368,930


Gross Net

84R. 915
.J4, 948
1, 759,794
1, 005, 950


434, 450
Wfl. 282
351, 681
355, 521
1, 1N., 180
2'li. 694

481, 474

20, 539,794
17,386, 148

The following table shows the aggre-;ate cargo carried through

the Canal by ships of the principal nationalities engaged in the

traffic, for the past 5 years, and the percentage of the total cargo

which each group carried during the fiscal yen r 1934:

Ton.sy of Carqlo Carried


1930 1931 1932 1933
Tons Percent-

United States---------------- 14, 409.233 11,805,132 8,835,055 7,987,739 11,578,453 46.8
British--------------.. -------- 7,.5,2.969 5,971,281 4,638,068 4,170,995 5,193,136 21.0
Norwegian-------------------- 1, w.l',278 1,720,383 1,427,284 1,773,161 2,080,833 8.4
Japanese-.-------------------- 1,009,735 1,104,512 1,031,704 1,159,733 1,510.916 6.1
German----------------------- 1,388,022 1,261.763 1, U7t, 738 813,231 !".2,218 4.0
Swedish----------------------- 832,273 721,945 761,015 403,169 766,921 3.1
Danzig ----------------------- 192,734 185,982 238,884 :347.934 57.5. 125 2.3
Danish----------- ------------ 505,914 606,100 521,481 44'., ' French..--....---------------------.. 576,753 .5'.. 011 338,786 249,395 430,668 1.7
Netherland-------------------- 618,718 477,769 440,870 381,071 403,451 1.7
Italian.---------------------- 264,223 236,570 215,139 189,371 256,465 1.0
All remaining. ------------------ 761,380 483,352 280,974 253,066 427,203 1.7

Total------------------ 30.030,232 2., 022, 2.'.00 I,S07'.99s l.. 1.77, 72z. 21,71., f651 100.0

Twenty-three nationalities were represented in the commercial

traffic passing through the Canal in 1934, compared with 21 in 1933

-and 22 in 1932. Vessels of United States registry led( in the nunm-


$5, 7-,, 319. 25
,508. 52
."'4 i. 593. 30
25,154. 58
404, 744. 36
448. 68
378, 443.07
1,378,227. 43
441,367. 22
1, 748,481.84
1 3i, 398.70
22,317. 30
1, 648. 50

19,620,458. 53

Tons of


533, 262
430, 668
403, 451
9, 104


24, 718,651


ber of tran-its, as has been the case during the preceding 15 years..
From 1915 to 1918, inclusive, tranz.its of British vessels exceeded
those of any other country. In all years of operation either British
or United States vessels have led in transits. Vessels of the lead-
ing nationalities all carried more cargo than in 1933.


The preceding tables of commercial traffic include foreign military
or naval voesels which paid tolls; but the tonnage of the vessels
which pay on the basis of diplacement tonnage (i. e., those other
than transports, colliers, hospital ships, and supply ships) is not
included in the figures for tonnage. All of the foreign naval vessels-
which )pa--ed through the Canal during the fiscal year 1934 paid
tolls on the basis of displacement tonnage; their traffic is sum-
marized as follows:

Number Displace-
Nationality of vessels meant Tolls

British ---- -------------------------------------------------- 8 35,508 $17,754.00*
German ------ -- ----------------------------------------------- 1 6,490 3,245.00
Mexican ----- --------------------------------------------------- 1 1,227 613.50>
Peruvian------------------------------------------------------ 7 9,742 4,871.00
Spanish --- ---------------------------------------------- ------- 1 3,297 1,648. 0
Total---- ----------------------------------------------- 18 56,264 28,132.00O


Naval and other vessels owned and operated in the Government
service of the United States and Panama, war vessels of Colombia,
and vessels transiting solely for repairs at the Balboa shops, are ex-
empt from the payment of tolls, and such vessels are not included in
the general transit statistics in this section.
The following shows the vessels of each group, the amount of tolls-
to which they would have been subject at the prescribed rates if tolls
were charged against them, and the cargo carried by such vessels in
ocean-to-ocean movement.

Class Transits Canal Displace- Tolls Cargo

U. S. Navy ---------------------------- 394 370,321 923,641 $811,196.37 157,173.
U. S. Army ~---------------------------- 88 251,376 33,450 253,822.50 21,972
Other U. S. Government vessels----------- 2 ------------ 1,408 704.00 -------

Government of Colombia. -------
Solely for repairs--------------------
Byrd expedition---------------------------

484 621,697 958,499 1,065,722.87 179,145.
2 ------------ 2,660 1,330.00 ------
15 40,594 ------------ 28,162.77 13,050
2 5,089------------ 4,747.50-----.-




192, 195



Launches of less than 20 tons ni-iireicnent, (Panama Canal net)
are also excluded from the statistics of commercial traffic, although
they are not exempt from the payment of tolls. The following sum-
marizes the traffic of such launches during the fiscal year 1934:

rP.11111.ll. Cr
Transits Canal Tolls Cargo
net (tons)

Atlantic to Pacific--------------------------------- 104 1,110 $1,051.93 134
PaLiflc toAllintc.. .. ......... ------------ 71 742 861.64 935
Total --------.----------------------------.. 175 1,852 1,913.57 1,069


Cargo shipments through the Panaiani Canal during the fiscal year
1934 and in the 3 preceding years, segregated by principal trade
routes, are shown in the following table:

Tons of cargo

United States intercoastal:
Atlantic to Pacific ----- ------------ ...-------.
Pacific to Atlantic--- -------- -- -. -.--------
T*.T 1 . ..- ..-- ..- ...--- .--.- .......-. .- --. --
1 niTed States and Far E;,t (including Philippine
Atlantic to Pacific--------------------------------
Pacific to Atlantic------------------------------
Euiropte and South America:
Atlantic to Pacific------------- ------- -----
Pacific to Atlantic---------------------------------

1931 1932 1933 1934

2, 37-. 751 1,917,052 1, 595, OS7 2,074, 707
6, 12z, 624 4,705,932 4,831,521 6,850 ,261
8,805,375 6,622,984 6, 42f, 608 8. 924,968

1,360,772 1,714,725 1,323,003 1. '2, 255
862,053 851,124 1,077,734 J, .3.. 7.3
2, 222, 825 2,565,849 2, 400, 737 3, 358, 688

503,566 206,908 If, 1,695 212,213
1,804,191 1,532,204 1,:9 234 2,433,350

Total........------------ ------------------------ 2,307,757 1,739,112 1,532,929 2,645,563
Eur.ipe and Canada:
Atlantic to Pacific------------------------------ 124,605 69,926 70,573 85,153
Pacific to Atlantic --------------------------- 1,901,810 2,109,790 2,788,173 2, li. 898
Total-------------------------------------2. .2;. 41 2. 17y.71. t, ".. 741. -. .ur.,.1
E.urope aind United States:
Atlantic to Pafic... .... .... . ... ..... 425,343 334, 160 249,966 320,366
Pacific to Atlantic----- -------------------.. 2,729,347 1,834,090 1,700,808 1, 530,881
Total-----..---------------------- --.---.--- 3. lr.4,. 0 2. Ii6. .5LU 1. '.151). 774 il. 1.47
East Coast United States and West Coast South Amer-
Atlantic to Pacific ----.-- --------------------- 252,363 116,638 14,4474 11. 447
Pacific to Atlantic ----- ------- -------.... 2, 105,298 1,001,749 24. 076 1,633,499
Total------------------------------------ 2.357. 661 1. 11N.317 i J. 53 1. 711,94
Europe and Australasia
Atlantic to Pacific...... .... 441,470 286.740 235,075 2.52. t.S0
Pacific to Atlantic------------------------------671,843 422. 227 295,896 600, 931
Total-------------.. ----.------------.------..... 1. 113.313 71i. 9i7 30.-471 ,3,l 611
United States and Hawaiian Islands: -
Atlantic to P.aciflc.............. ... ... .. . 124.755 127,576 0.3,798 114,227
Pacific toAtlantic......... ..... . .... . . .. 1 ,5S. 47S 3J5. S 43 34.. J93S 381,131
Total............. . ........ ..... . ... . 21-0. 233 U .3, 41' 41:3. 7,3 495. 35


Tons of cargo

1931 1932 1933 1934

United States and Australasia:
Atlantic to Pacific-- ----------------------------- 202,311 187,393 164,215 211,018
Pacific to Atlantic-------------------------------- 166,648 81,501 18,552 81,303
Total--------------- ------------------------ 368,959 268,894 182,767 292,321
Miscellaneous routes and sailings:
Atlantic to Pacific-----------.------------------ 865,493 674,240 601,003 965,562
Pacific to Atlantic----------- ----------------- 1,600,079 1,238,180 940,907 1,493,336
Total-------------- ----------------------- 2,465,572 1,912,420 1,541,910 2,458,898
Total traffic, all routes:
Atlantic to Pacific- ------------------ -6,680,429 5,635,358 4,511,889 6. 167,.12L
Pacific to Atlantic- --- ----------------------- 18,402,371 14,172,640 13,665,839. 1. 551. .323
Total--------------------- ---------------- 25,082,800 19,807,998 18,177,728 24,718,651

The preponderant movements of cargo through the Canal in 1934
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 percent of the cargo originated on the east coast of North America.
and about 47 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, about 62 percent of the total came from the west
coast of the continent, and about 62 percent of all cargo from the
Pacific through the Canal was destined to the east coast of North
Of the total cargo of 24,718,651 tons passing through the Canal in
the past fiscal year, 6,167,328 tons, or 25 percent, were routed from
the Atlantic to the Pacific, and 18,551,323 tons, or 75 percent, from
the Pacific to the Atlantic. In comparison with the previous fiscal
year, total cargo tonnage registered an increase of 6,540,923 tons,
or 36 percent; the Atlantic to Pacific moveminent made an increase of
1,655,439 tons, or 36.7 percent, while in the opposite direction the
increase was 4,885,484 tons, or 35.7 percent.
Of the principal trade routes listed above, 7 showed increases in
comparison with the previous year and 2 decreases (Europe and
United States, and Europe and Canada). Both of these routes made
gains in the Atlantic to Pacific movement but not sufficient to offset
the losses in the opposite direction. The routes showing the largest
gains were United States intercoastal, and east coast of the United
States and west coast of South America, which increased 38.9 percent
and 414 percent respectively. The resumption of iron-ore and nitrate
shipments accounts for the large increase in the last-named route..


The trade areas of origin of cargo, with the destination of the
corresponding cirgo, are shown in the following tables; one covers
the ninovenient from Atlantic to Pacific, the other that from the
Pacific to thlie Atlantic.



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Statistics of commodities passing through the Canal are not precise
because it is not required that complete nianife ts of cargo carried by
vessels be submitted at the Canal. In lieu of a manifest the master
.of each vessel is required to file a cargo declaration ", which is a
briefly itemized statement, listing the principal items of cargo car-
ried and showing their ports or country of origin and destination.
These cargo declarations are the basis of the coin odity sttiti-.
There is a natural tendency not to list small miscellaneous shipments
but to include them under the head of General cargo "; not infre-
(ILquently no other clas-sification is made of the entire cairgos canritd
by vessels. Hence, except in the case of commodities commonly
shipped in bulk, such as mineral oils carried in tank ships, wheat,
iumbIer, nitrates, etc., shipments of various goods are likely to be
in excess of the agir gatc tonniiage reported during the year and
shown in the annual summary. Subject to errors arising from this
source the tonnage of the prin'-ipal commodities shipped through the
Canal during the pa4st 4 years, is shown in the following table:

Commodity inmormncnt

Fiscal year ended June 30-
Commodity ----------
1931 1932 1933 1934

Long tons Long tons Long tons Long to.ns
Manufactures of iron and steel--.------------------- 1,230,091 781,494 502,503 982,596
Mineral oils---.---------------------------------- 4'5, ,-' 518,498 407,492 550,469
Scrap metal-------------------------------------- 46,904 87,657 273,375 503,277
Cotton, raw.--..- --.---------------------..-----------... 298,877 747,496 432,043 4".J, -49
Paper--------------------------------------------- 202,478 204,297 214,568 256,449
Tinplate-------. ----------------------------------- 224,291 148,852 108,500 241,854
Sulphur-----.-----..-------------------------------............................ 190,690 197,941 149,790 206,509
Phosphates----------------------------------------- 312,925 239,266 154,145 188,320
Coal and coke.-------------.----------------------- 122,179 95,199 85,548 110,294
Canned goods (fish, fruit, vegetables, etc.)-------------- 100,311 117,857 101,751 106,869
Textiles----------------------------------------- 94,254 83,756 78,555 98,269
Automobiles (exclusive of accessories)------------------ 104,002 66,673 50,731 90,111
Chemicals---------------------------------------- 66,690 72,436 64,072 87,652
Machinery--------.----------------------------- 139,928 78,656 54, 781 S7, 285
Cement-----------------------------------------206,483 76,870 69, 105 '-, 456
Sugar.--------------------------------------------- 87,436 58,671 40,256 75,770
Tobacco ----------------------------------------- 116,946 65,806 67, 548 72,006
Nitrates-------------------------------------- 26,522 36,980 45,295 69,164
Automobile accessories- ----------------------------- 51,768 39,367 35.' 2'37 65,217
Coffee-------------- -------------------79,382 61,241 54,491 64,624
Asphalt and tar--.----------------------- 74,962 60,286 47,748 61,581
Metals, various-----------------.-------------------- 59,106 42,830 30,662 60,140
Salt ------------------------------------------- ---.. 56,002 36,855 30,263 60,018
Ammonium compounds.--------------.-----...---------- 79,100 71,933 35,002 56.331
Glassandglassware--------------------------------- 47,100 44,911 47,374 51,548
Sand --------------------------------------------- 15,765 14,392 23,519 31,225
Railroad material.------------..---------------------- 77,838 26,731 18,265 42,350
Corn ---------------------------------------------.. 23,874 69,987 128,331 42,241
Wood pulp --------------------------------.-------.. 22,319 23,397 38,986 38,497
Rosin---------------------------------------------- 39,886 45,405 38,024 43,834
Soap--------------- ------------------------------.. 32.310 35,289 28,631 24,505
All other---------- ---------------- ---------------- 1,879, 714 1,459,807 1,188,646 1,195,162

6,680,429 15,635,358 4,511,889 6,167,328



Coumim md ity movement-Continued

Fiscal year ended June 30-


M ineral oils-------------------------.............- ....-
Lumber--------------------- --------- ................
Sugar---------------------------------..... _.........
W heat----------------------------------
Ores -----------------------------.--...............
Nitrate------------------- ------- ---- ---..-..-----
Canned goods (fish, fruit, vegetables, etc.) ---------
Metals, various------------ -- .---- --....-----.-..--
Food products in cold storage 2-------------------------
Fruit, fresh --------_-__ -. -------- --...... ...
Fruit, dried--------- ..- - - - -- - -
Flour.. .- .---.- -- ..-- ...- -- .. ....
Soy beans-------- ------------- ......---
Barley --- ----------------- --. -
Wool----------------------------- -
Coffee---------------------------- ..-- ...........
Wood pulp------. --------- -.-....-
Beans------------------------- ........... ..--- ...-
Paper-........-- - - - - -....... .- -
Copra - - -----------.-..-- - - --.. -
Coconut oil --------- .
Oats ---------- -- ------ .. ..-
Borax--....- ...-- - - --- _-- - - -
Cotton, raw -------..------...-
Skins and hides------------ ---
Rice ----- ------------.----- ------- -. -
All other..----..--- -------...--...- -


Long 1tons


Total---- --------- ---.------------------ 18,402,371


Long tons



Long tons
79, 898



Long tons
I'. 551,323

1 Principally iron in 1931, 1932, and 1934.
2 Does not include fresh fruit.



The following summarizes commercial traffic through the Cinal

during the fiscal year 1934 by laden ships and those in ballast, divided

between tankers and general cargo vessels, and showing the ships

not designed to carry cargo:

Classification Atlantic to Pacific to Total
Pacific Atlantic

Tank ships, laden:
Number of transits ---------------- ..-
Panama Canal net tonnage ------
Tolls---- ----- ---- ----- ---
Cargo (tons).--....... - ---..........
Tank ships, ballast:
Number of transits ----- ---------------
Panama Canal net tonnage.. -- -------- -
Tolls-- --- ---- ---- ---- --..-... ---..-... . .
General cargo ships, laden:
Number of transits.--------------.--------
Panama Canal net tonnage -------------------
Tolls .- --- -- --- - -
Cargo (tons)---- -- -- ------ --------------
General cargo ships, ballast:
Number of transits-------- -----------------
Panama Canal net tonnage -- ---
Tolls--.----------. ----------- ...

$280, 245.85



$9,018, 964.20
$10,. 522.08


$1I. 756, 289. 30



Atlantic to

Nnn-carcn-:irrying ships:
Number of transits-------------....-------.--.-
Panama Canal net tonnage----------- .---.-
Ti lls .. ... ... ..... ..... .. .. . .
Naval vessels:
Number of transits-----------------------------
Di.'plucement tonnage.... ....... ...
T olls ............... ...
Number of transits.--------------------------.-
Panama Canal net tonnage -------------------
Tolls ............... .. . .....
Number of transits------------- -----------
Panatma Canal net tonnage--- -------
Tolls---------------------- -
1)red l's.
Number of transits-----------------------------.
Panama Canal net tonnage--------------------
Tolls--------------------------- ----
'Cruise vessels:
Number of transits----------- -------
Panama Canal net tonnage-------------------
Tolls-------------------------. --------

-ool cargo ships, laden:
Number of transits ------------------- --------
Panama Canal net tonnage-----.........----------------....-
Cargo (tons)------------------------ -------....
Total cargo ships, ballast:
Number of transits------------------------....
Panama Canal net tonnage-------------------------
Tolls..---------------------------- ------....
Total tank ships:
Number of transits------------------------..---...--
Panama Canal net tonnage-----.......--------............-
Tolls..--------------------------- ...
Cargo Itons)---------------------------------..-----
Total Eeneral cargo ships:
Number of transits---------------------------....
Panama Canal net tonnage-------..................----------------
Tolls---------------------------------- --...-
Cargo (tons).---------------------------------
Total non-cargo-carrying ships:
Number of transits------------------------------..-
Panama Canal net tonnage-----------------.......----.
Displacement tonnage---------------------------...
Tolls..----------------------------- --- ....
Grand totals:
Number of transits----------------------------.....
Panama Canal net tonnage---------------------....
Displacement tonnage----------------------........
Tolls------------------------ --.---...---
Cargo (tons)----------------------------------..- -

4. 2.3
$3,f :13 c;

25, 945


31, 589

$12,047, 0(3.86

Pacific to


$15,159. 50


$1,071 52

$38, 052. 50







Vf., 264
$28, 11. 00





23, 283,763


$5,161,787. 40


28, 566, 595
$24,063,789. 45



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
1932 1933 1934

Measured tonnage:
Panama Canal net -------------------------------------------- 5,298 5,139 5,194,
United States net tonnage----------------------------------- 3,858 3,686 3,700.
Registered gross tonnage------------------------------------ 6,449 6,121 6,244
Registered net tonnage---------------------------------------- 3,898 3,724 3,733
Tolls -------------------------------------------------- -------- $4,638.97 $4,413.43 $4,371.02
Tons of cargo (including vessels in ballast)------------------------- 4,445 4,096 4,509
Tons of cargo (laden vessels only).------------------------------. 5,154 4,912 5,576

NOTE.-Computations of above averages based on cargo-carrying vessels only; craft not engaged in com-
merce, such as yachts, naval vessels, etc., are not considered.

The increase in the average net tonnage, Panama Canal measure-
ment, of vessels transiting in 1934 in comparison with 1933 was 1.1
percent. The average of United States equivalent net tonnage per
vessel increased 0.3 percent.
The average cargo per vessel transiting (including in the total the
vessels which made the transit in ballast) increased from 4,096 tons
in 1933 to 4,509 tons in 1934, or 10 percent.
Laden vessels only carried on an average of 4,912 tons in 1933 and
5,576 tons in 1934, an increase of 13.5 percent.


Of the 5,533 commercial vessels transiting the Canal during the
fiscal year, 3,489 were steamers, 1,790 were motorships, and the re-
mainder, 253, were chiefly motor schooners. For the past 5 years
the proportions of these classes have been as follows:

1930 1931 1932 1933 1934

Percent Percent Percent Percent Percent
Steamers---------------------------------------- 76.8 71.1 66.3 60.0 63.1
Motor ships-------------------------------------- 22.8 28.4 32.1 34.0 32.4.
Miscellaneous---------------...----------.----------- .4 .5 1.6 6.0 4.5
Total-------------------------------------- 100.0 100.0 100.0 100.0 100.0

Of the 3,489 steamers transiting the Canal during the past fiscal
year, 2,659 burned oil, 790 burned coal, and 40 were reported as
fitted for either fuel. For the past 5 years the proportions of each
clahs have been as follows:

1930 1931 1932 1933 1934

Percent Percent Percent Percent Percent
Oil burning--------------.----------------------- 72.2 72.8 76.1 70.6 76.2
Coal burning------------------------------------- 26.4 25.6 22.1 27.2 22.6
Either oil or coal------------------.-----...---------- 1.4 1.6 1.8 2.2 1.2
Total-------------------------------------- 100.0 100.0 100.0 100.0 100.0



The following tabulation shows by months the number of pas-
sengers disembarking and embarking at Canal Zone ports during the
fiscal year 1934, segregated as between first-clai- and others ", with
comparative totals for the fiscal years 1933 and 1932:


September. --------------------- -------
October.--------.------------ -------
January- --- .--------------------
May-------- --------- ---------------
June.... .......................------------------------------------
Total, 1934-----------------------
Total, 1933-.----------------
Total, 1932.........------...--.......



First- Others Total First- Others Total
class class

1,454 749 2,203 1,843 1,035 2,878
1,485 608 2, 03 1,658 1,246 2,904
1,659 1,122 2,781 1,210 692 1,902
1,334 644 1,978 1,182 936 2,118
1,329 871 2,200 1,059 813 1,872
1,306 635 1,941 1,245 1,102 2,347
1,316 616 1,932 1,049 669 1,718
1,286 1,347 2,633 1,293 1,017 2,310
1,333 851 2,184 1,288 1.389 2,677
1,334 1,809 3,143 1,315 1,596 2,911
1,163 1,448 2,611 1,784 1,502 3,286
1,647 1,482 3,129 1,537 1,512 3,049

14, 153

12, 182





As compared with 1933, the fiscal year 1934 shows a 10.8-percent
increase in the number of arrivals, and in comparison with 1932 a
11.2-percent decrease; in the number of departures there was an in-
crease of 14 percent over 1933 and a decrease of 2 percent under 1932.
The following table shows the passenger traffic through Cristobal
and through Balboa in the past 3 years, and it is seen that about 68
percent of it has been through Cristobal:

Port of Cristobal Port of Balboa

1932 1933 1934 1932 1933 1934

Passengers disembarking---------------- 22,658 17,583 18,898 9,821 8,429 9,930
Passengers embarking------------------- 22,147 19,444 19,156 8,345 8,870 10,816

A further segregation of the passenger movement shows that
19,983 incoming and 19,940 outgoing passengers were brought from
or were destined to ports of the Atlantic, and 8,845 incoming and
10,032 outgoing passengers were brought from or were destined to
ports on the Pacific.
Transient passencgers.-.In addition to the figures shown above of
passengers disembarking and embarking, there were 101,934 tran-
sient passengers brought to the Isthmus by vessels calling at Canal
ports during the fiscal year 1934. For the fiscal year 1933, this num-
ber was 95,628, and in the fiscal year 1932, 91,844. The number in


1934 inicre-ased 6,306, or 6.6 percent, in comparison with those in 1933,
and in comparison with 1932 an increnae of 10,090, or 11 percent.
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 1934

1932 1933 Cristobal Balboa Total

Remaining on board vessels transiting Canal:
Atlantic to Pacific----------------------------- 35,924 38,963 38,114 -----... 38,114
Pacific to Atlantic---------------------------- 31,392 29,873 ---------- 31,390 31,390
Remaining on board vessels entering port, but not
transiting Canal:
Atlantic to Atlantic ports --------------------- 23,528 25,510 30,804 ---------- 30,804
Pacific to Pacific ports-------------..----------- 1,000 1,282 -..--------- 1,626 1,626
Total ----------------------------------- 91,844 95,628 68,918 33,016 101,934
NOTE.-In passengers "remaining on board vessels transiting Canal", those from the Atlantic to the
Pacific are taken up at Oristobal, 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.

Included among the transient passengers were a number visiting
the Canal as members of tourist cruises, many of whom crossed the
Isthmus in sight-seeing parties by special train in connection with a
boat trip through Gaillard Cut. During the past year 72 boat trips
were made, carrying 9,458 passengers.


During the fiscal year 1934, 1,385 individual commercial vessels,
representing 23 nationalities, passed through the Panama Canal in
the total of 5,533 transits. The number of transits by individual
ships varied from 1 to 80, and averaged 3.99. The 80 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 Cristo-
bal. The number of vessels making only one transit during the
year was 331.
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
460. The individual vessels of United States registry which passed
through during the year numbered 412.
The following table shows the number of individual ships, the
frequency of transits per vessel, the total transits for the year, and
the average number of transits per individual vessel, segregated by


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From the foregoing table it will be noted that 331, or 23.9 percent,
of the total individual vessels using the Canal during the year made
only one transit. Fifty-one and three-tenths percent of the vessels
made 3 transit or more, and 5.4 percent made 10 or more transit.
The following tabulation shows for the fiscal year 1934 the num-
ber of vessels making the indicated number of transit through the
Panama Canal, the percent which each class finirmedl of the total
number of individual vessels (1,385), their aggregate number of
transIits, and their percent of the total commercial transits (5,533) :

Percent Total Percent Percent Total Percent
Number of Num- of indi- num- of total Number of Num- of indi- num of total
transits ber of vidual er of Canal transits ber of vidual er of Canal
vessels vessels transits vessels vessels transit transit
(1,385) transits (5,533) (1,385) tr ts (5,533)

---------------- 331 23.90 331 5.98 18--------------- 1 0.07 18 0.33
2 -----------. -- 343 24.77 686 12.40 19--------------- 2 .14 38 .69
3---------------- 127 9.17 381 6.88 22--------------- 1 .07 22 .40
4---------------- 156 11.27 624 11.28 24 ------- ------- 1 .07 24 .43
5 --------------- 94 6.79 470 8.48 25--------------- 1 .07 25 .45
6--------------- 122 8.81 732 13.23 2-.-------- ------ 2 .14 52 .94
7-------------- -- 65 4.70 455 8.22 28--------------. 1 .07 28 .51
8 ---------------- 42 3.03 336 6.07 29--------------- 1 .07 29 .53
9 ---------------- 30 2.17 270 4.88 31 _-_- ..-..---- 2 .14 62 1.12
10-------------- 16 1.16 160 2.89 32--------------- 1 .07 32 .58
11--------------- 7 .51 77 1.39 34--------------- 1 .07 34 .61
12--------------- 14 1.01 168 3.04 36--------------- 1 .07 36 .65
13. .------- ----- 8 .58 104 1.88 54---------------_ 1 .07 54 .98
14------.--------- 2 .14 28 .51 80--------------- 1 .07 80 1. 45
15-- ----.---..- 3 .22 45 .81 ------- ----------
16 ---..--...- 4 .29 64 1.16 Total.------ 1,385 100.00 5,533 100.00
17----------. ------ 4 .29 68 1.23


The 5,533 commercial vessels which transited the Canal in the
fiscal year 1934 were comprised of 5,515 merchant vessels, yachts,
etc., paying on the basis of net tonnage, and 18 naval vessels paying
tolls on the basis of displacement tonnage. Of the 5,515 com-
mercial transits paying tolls on net tonnage, 52.4 percent were of
vessels of from 4,000 to 6,000 net tons, Panama Canal measurement.
Vessels under 1,000 net tons equaled 8.8 percent of the transits, and
3.2 percent were by vessels over 10,000 net tons. The average ton-
nage of all transits was 5,180 net tons as compared with 5,091 in the
previous fiscal year, an increase of 81 tons, or 1.2 percent.
Vessels of Danzig registry (all tank ships) averaged the highest
net tonnage, at 7,987; those of Italian regi try were second, with
7,036; and those of Netherlands registry were third, with 5,883. The
lowest recorded average by nationality was for ships of Honduras,
with 48 net tons, and the next lowest was for Colombian ves-el-,
with 307.
The following tabulation shows the (coiiinIeriail transits, excluding
naval vessels, in groups according to net tonnage, PaRnainma Canal
measurement, segregatedil by nationality, with average tonnages and
group percentages for the fiscal years 1934 and 1933:


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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, imeasuired under the Canal rules, for ships in bal-
last, 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 ton-
nage 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 that tolls on laden ves-
sels transiting the Canal are usually paid on the basis of $1.25 times
the United States net tonnage, and tolls on ballast vessels are gen-
erally $0.72 times the Panama Canal net tonnage. In rare 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 col-
lectible; such vessels pay less than $0.72 per net ton, Canal measure-
ment, 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 payment of
Registry rules were not designed as a suitable basis for the collec-
tion of Canal tolls and their application to the Panama Canal tolls
has resulted in misunderstandings, inequalities, injustices, and de-
priving the Government of proper revenue. The Canal administra-
tion 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 60 percent of such rate, or 60 cents, for vessels
in ballast, and the Secretary of War indicated in 1934 that he would
recommend a rate of 90 cents on laden ships; ballast vessels 60
percent less.
When the suggestion of a rate of $1 per Canal net ton was first
made it would have meant a slight decrease in the tolls collected. In
later yea rs, however, due to the reduction of the net tonnage of the
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 ve-ls- which
would pay more has prevented the passage of corrective lvgi.lation.
The need for such legislation is discussed further in !ecti'n III.
under Administrative Problems.
The following is a comparison of the increase in the tolls which
would have been paid by the United States vessels and by all vessels
other than those of United States re!i itry in the past 8 fiscal
years, if tolls had been levied on Canal net tonnage at $1 per tinii for
laden ships and 60 cents for ships in ballast.

Tolls which Increase
Fica ya Tolli atiuilly would have been_______
Fiscal year collected collected on pro-
posed basis Actual Percent

1927--..--------------------.--.-------- $12,720,447.95 $12,601,622.60 1 $11. 825. 35 10.93
1928 --------------------------------- 12, 645,880.20 12, *-'2. 378. 60 1'.. 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
1934--------------------------- --------- 11,186,953.53 12,368,916.40 1,181,962.87 10.57


1927------------------------------------ $11,508,382.16 $11,720,617.30 $212,235.14 1.84
1928----------------..-------------------- 14, 298,619. 57 14, 583, 094. 40 284,474.83 1.99
1929 ------------------------------------- 14,827,792.21 15, 518,947.60 691, 155.39 4.66
1930------------------------------------- 13,856,227.31 14,795,367.00 939,139.69 6.78
1931 ------------------------------------- 13,219,457.26 14,264,637.30 1,045,180.04 7.91
1932-------------------...------------------ 10,958,358.54 12,036,778.60 1,078,420.06 9.84
1933 ------------- -------------------- 10,686,607.74 11,776,211.80 1,089,604.06 10.20
1934 ------------------------------------- 12,876,835.92 14,133,161.40 1,256,325.48 9.76

1 Decrease.

The tolls paid by the vessels of various nationalities using the
Canal during the fiscal year 1934 are shown in the following table.
in comparison with the tolls which they would have paid on the
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
general cargo and cargo/passenger vessels, and the total of all com-
mercial traffic; the latter includes, in addition to the gn'riial cargo
and cargo/passenger vessels, oil tankers, and miscellanemi' non-
cargo-carrying ves-sels such as yachts, foreign naval ve-els, 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.
On the assumption that the Panama Canal rules for the deter-
minination 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 injustice-. 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 cap:lcity. The table



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Dispatching of ships through the Canal is condiu-ted on schedules.
Vessels ready to leave for transit begin moving through the Canal
from each end at 6 o'clock in the morning, and dis.patches are made
thereafter from each end at intervals of about lihalf an hour. The
following is a siimniiiry of the arrangeiviunts in efftct at the end of
the fiscal year:
From Cristobal Harbor, first ship at 6 a. min., last at about 3: 30
p. m.; from Balboa Anchorage. first ship at 6 a. m. and last at 2: 30
p. m. This applies to vessels averaging 10 to 12 knots. In case of
a vessel capable of 15 knots, d(leparture may be middle up to about
3 p. m. from Balboa and 3: 45 from Criitobal.
Tankers with inflanimimable cargoes are dispatchlied 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 carry-
ing gasoline cargo are iiuially restricted to schedules leaving at 6,
6:30, and 7 a. min., but may be dispatched on other '-chediules if traffic
During the year, after the last "through" ships were dispatched,
and provided there would be no interference with approaching traffic,
ships were started on partial transit from Cristobal Harbor up to
8:45 p. min., or from Balboa Anchorage up to 5:30 p. min. Partial-
trainsit ships tied up on reaching the summit level and continued the
following morning. Two ships usually, sometimes three, each way,
were given the benefit of partial transit each day, and under ordinary
conditions they gained from 2 to 3 hours.
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. Operations throughout the night would
not only involve greater expense and increase the difficulties of
maintenance of locks and channel but involve hazards of navigation
in restricted channels under conditions of darkness, minade worse by
rains and fogs. Fogs over the cut and lake uiiiially fall before mi1d-
night and are d(lissipatedl by 8 o'clock in the morning.

Lockages and vessels handled, by months, during the past fiscal
year, are shown in the following table, to which is appeindedl for coim-
parison a statement of the totals for the preceding 5 fiscal years:


Gatun Pedro Miguel Miraflores Total
Lockages Vessels Lockages Vessels Lockages Vessels Lockages Vessels

July----------------- 387 462 398 479 398 481 1,183 1,422
August--------------- 406 495 416 498 413 495 1, 235 1, 488
September..----------- 394 479 406 483 403 486 1, 203 1,448
October-------------- 444 535 455 549 454 552 1, 353 1, 636
November----------- 438 537 442 538 442 535 1, 322 1, 610
December------------ 469 565 485 566 485 571 1,439 1, 702
January-------------- 479 578 491 614 490 616 1,460 1,808
February------------- 442 534 457 553 461 560 1,360 1, 647
March..----.--------- 504 618 508 633 511 629 1, 523 1,880
April---------- ------- 527 692 534 688 534 690 1, 595 2,070
May----------------- 486 599 501 617 498 608 1,485 1,824
June----------------- 389 499 414 527 394 482 1, 197 1, 508
Total---------- 5, 365 6, 593 5, 507 6, 745 5,483 6, 705 16,355 20,043
Fiscal year-
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, 349 4,842 5,576 4, 826 5, 575 14, 283 16, 500
1933-------------- 4,380 5, 334 4, 557 5, 536 4, 505 5,586 13,442 16, 456

In the fiscal year 1934 the average numbers of lockages per day
were as follows: Gatun, 14.7; Pedro Miguel, 15.1; Miraflores, 15.
The total number of lockages at all locks was 16,355, as compared
with 13,442 in 1933 and 14,283 in 1932. The increase during the past
year was 2,913, or 21.7 percent.
The number of vessels locked per lockage in the fiscal year aver-
aged as follows: Gatun, 1.229; Pedro Miguel, 1.224; Miraflores, 1.223.
The average for the total of 16,355 lockages was 1.225 vessels.


Both chambers were in service and were used each day during the
year, except on July 19, October 18, and June 19, when only one
chamber was used, due to light traffic. Daily operating shifts, pro-
viding for operation from 7 a. m. to 11 p. m. (with double chamber
operation each day for approximately 8 hours during period of
heaviest traffic), were maintained throughout the year, except for
the periods from April 23 to 26 and April 27 to May 20, inclusive,
when four shifts were used to provide 24- and 16-hour daily opera-
tion, respectively, to facilitate the transit of the United States Fleet
and to avoid unnecessary delay to commercial shipping.
Routine maintenance and repairs were performed on all machinery
and equipment as required. No serious break-downs occurred during
the year. Twenty-five delays to ships in lockages, due to improper
operation or failure of equipment, were recorded; they ranged from
2 to 25 minutes.



Operation continued on the same ba1-i.s as for the preceding year,
except as noted below. From April 23 to 26, inclusive, the operating
shifts at both locks worked on the basis of 10 hours on and 10 hours
off, on account of the rapid transit of the United States Fleet and the
accumulated coiiiiiercial traffic. From April 27 to May 20, inclusive,
the operating shifts were changed on ac-oiint of the 40-hour-week
law, to provide for 6 days of 6C3 hours each, with 3 shifts at Pedro
Miguel and 4 shifts at Miraflores. Effective May 21, the shifts were
returned to approximately the former normal operating basis, with
employees working 5 days of 8 hours each.
At Pedro Miguel there were 10 delays to lockages, ranging from
3 to 15 minutes, due to faulty operation or failure of equipment. At
Miraflores there were 14 delays, varying from 5 to 15 minutes, due to
faulty operation or failure of equipment, in addition to which there
were 7 delays, varying from 15 minutes to 6 hours, due to trouble
aboard ships.
Monthly test operations were made of all emergency dams during
the year, and routine maintenance and repairs were performed on
all machinery and equipment.

The power system was operated throughout the year with a com-
bined generator output of 68,994,100 kilo watt-hours, as compared
with a combined generator output of 73,517,569 kilowatt-hours for
the previous fiscal year. A total of 62,986,352 kilowatt-hours was
distributed to consutiner., as compared with 66,172,012 kilowatt-hours
for the previous year. Transmission and distribution loss amounted
to 6,007,748 kilowatt-hours, or 8.71 percent, during the year, com-
pared with a loss of 7.345.557 kilowatt-hours, or 9.9 percent, during
last year.
The Gatun hydroel-ct ric station operated throughout the year,
carrying the full load of the power system, except at times of peak
loads and during periods in March and April, when it was nece-ary
to conserve the water in Gatun Lake. The Miraflores Diesel-electric
station was maintained on a stand-by and peak-load service during
the year, and from March 5 to April 25 ionie or two engines were
operated for water conservation. There were no interruptions to
service at either station during the year.
Interruptions to transmi ission-line service during the year totaled
8, from the following causes: Lightning. 3; animals climbing towers,
4; and broken ground wire, 1.


During the year the manually operated old Gatun substation was
abandoned. Prior to this abandonment, power had been generated
at Gatun hydroelectric station at 6,600 volts and transmitted over
6,600-volt underground cables across Gatmti Dam and Locks to the
old substation where it was stepped down to 2,200 volts for distribu-
tion to Gatun Locks, Gatim town site, and other distribution points,
and stepped up to 44,000 volts for traun-miion to other -ub.tations
of the power system. To effect the discontinuance of the old sub-
station, a small remote-controlled 6,600-volt to 2,200-volt local trans-
former substation was coni-tructed to furnish 2,200-volt service to
Gatun town site and other distribution points; a 6,600-volt to 2,200-
volt transformer and switchroom was built at Gatun Locks for serv-
ing the locks with 2,200-volt power; the main 6,600-volt to 44,000-volt
transformers were moved from the old Gatun substation to the Gatun
hydroelectric station, and incorporated there is an outdoor switch
and substation operated in conjunction with that station; and two
3-conductor 44,000-volt underground cable circuits were installed
from the hydroelectric station across Gatun Dam and Locks to a
remote-controlled outdoor switching station, located in conjunction
with the 6,600-volt to 2,200-volt distribution substation, for connec-
tion to the 44,000-volt trans-Isthmian transmission lines. Power is
now furnished direct. to the locks and town site substation from the
hydroelectric station over the 6,600-volt cables which formerly fed
the old substation. Power for the other system substations is now
generated at the hydroelectric station, stepped up there to 44,000
volts and transmitted across the dam and locks over the new 44,000-
volt cable circuits to the trans-Isthmian transmission lines.


The inflow of water into Gatun Lake from all sources and the
utilization and losses of the water in the lake are sumiinmarized in the
following table. There are also shown the percentages which each
item formed of the total yield or total consumption. The data are
pre-ented for the fiscal years 1933 and 1934, the former for compari-
son. Each year covers 12 months ending June 30, and thus embraces
the cycle of both dry and rainy seasons:


Run-off above Alhajuela------------------------------
Yield from land area below Ali:ijLItI...... ...........
Direct rainfall on lake surface.------------------------
Total yield- ----...---------.. -----------------
Eviapr.it ion from lake surface--------------------
U(latun Lak elockages---------------------------.
Hydruelectric power-------- -----------------------
Spillway waste------------------------------------
Lock culvert discharge -----------------------------
Municipal use, leakage, etc---- -----------------
Total uses and losses---------------------------
Increase in storage-------------------------------
Decrease in storage-------------------------------
Total. ------- -----------------------

Floods or freshets with a rise of 5 feet or more at Alhajuela nunm-
bered 16 during the calendar year 1933. The maximum momentary
discharge was 45,170 cubic foot-seconds at elevation 106.6 feet, on
December 15, 1933.
From a water-supply standpoint the 1934 dry season began on
January 9 and ended May 10, the total d(uatioin being 122 days.
This is 13 days shorter than the dry season of hi.-t year and 9 days
shorter than the average dry season which begins about December
29 and ends about May 8. The 1933 calendar year net yield (total
yield less evaporation) of the Gatini Lake watershed was 788 cubic
foot-seconds compared with a 21-year average of 833 cubic foot-
seconds, or 5 percent below the average. The total yield was 1,692
cubic foot-serondi., of which 62 percent was furnished by the Chagres
River. The lowest elevation of Gatun Lake was 82.54 feet on May 10.
In order to prevent Gatun Lake from falling below elevation 82
feet during the 198'34 dry sea-oni the Miraflores Diesel plant operated
1 power unit from Ma rch 5 to March 27, and 2 units from March
28 to April 25, wheni the Gatun hydroelectric plant ieuiiiied full
power load. Water saving by the Diesel plant amounted to 0.59 foot
on Gatun Lake and the equivalent of 0.33 foot on the lake was
saved by the Canal locks. Had no water saving been instituted, the
lowest elevation of Gatun Lake would have beenii 81.2 feet. The
transit of the United States Fleet during April required 58 lockages
and 399.000,000 feet of water, the equivalent of 0.09 foot on Gatun
Operations of the Gatun spillway during the year totalled 1,iS3
gate-hours and of the 'Miraflores spillway 246 gate-hours.

Hiniin cubic feet fiscal Purvent of total fiscal
year- year-

1933 1934 1933 1934

89.13 72.80 38.0 37.3
101.05 80.46 43.1 41.2
44.29 42.02 18.9 21.5
234.47 195.28 100.0 100.0
21.55 21.68 9.2 11.1
31.78 37.81 13.6 19.4
53.22 49.67 22.7 25.4
136.83 75.03 58.4 38.4
3.34 --------- 1.4 ---.--.-
2.22 1.41 .9 .07
248.94 185.60 106.2 95.0
------- 9.68 ----------- 5.0
-14.47 -.---------- -6.2 -----------
234.47 195.28 100.0 100.0



Construction of the Madden Dam project was continued during
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, and Gunther. The acces-
sory work of clearing was completed by contractors during the
month of July 1933. All work was performed under the direction
of the Government's designing, supervisory, and inspectional force
embraced in the Madden Dam division.


The average monthly working force on this project is tabulated

Gold Silver Total

U. S. Government.---------------------.- ------------------------ 72 153 225
Contractors for dam. -------------------------------------------- 130 370 500
Total------.---------------------------------------------- 202 523 725

Mr. Byram W. Steele of the Bureau of Reclamation visited Mad-
den Dam during November and December 1933 for the specific pur-
pose of inspecting the foundation rock in blocks 13, 14, and 15,
and sailed for the States during December after submitting a report
of his findings and recommendations covering this and other features
of the work.

At the beginning of the fiscal year 1934 the excavation for Midden
Dam and power plant was practically complete and concrete in the
spillway section was all at elevation 100 or higher. The concreting
period which opened the year came to a close on October 21 with
all spillway blocks excepItiiing nos. 5 and 7 at elevation 205 or higher.
At the end of November, with the diversion of the river through
the sluices and with the unwatering of the area under blocks 13, 14,
and 15, excavation was again resumed.
By the third week in January the penstocks and outlet pipes had
been as-eiiibled and embedded in concrete, and the Government forces
had completed the scroll-case assemiblies for the generator units.
The power-house walls were raised high enough by the middle of
April to permit the placing of the needle valves and the completion
of the outlet pipes that lie within the power-house walls.
The setting of the drum-gate pier plates was begun on May 3 and
completed on May 22, thus permitting the concrete in the piers to rise


up to and above the spillway-arch skewbacks. No. 1 gate was lowered
by floating on June 8, and the centering for the arch above this gate
was begun 2 days later. No. 2 gate was lowered on June 23 and the
centering for this arch followed immediately. Erection of No. 4 gate
was not begun until May 24 and that of No. 3 gate was begun on June
1. Both of these gates were still far from complete at the end of the
fiscal year.
All excavation on the right abutment was completed in April.
With the exception of the removal of some rock above the loading
platform and the east end of the power-house road, all excavation on
the left abutment was complete at the end of the year. During this
period, blocks 1 and 2 were begun, and the sluice-gate trash-rack
structures were carried to completion, as was also the paving over
the right training wall.
With the advent of the dry season it was demvied safe to close the
overflow channels heretofore provided by blocks. 5 and 7, and these
were poured from elevation 100 to elevation 105 on January 13 and
15, respectively. Placing was then confined to blocks 5,7, 13, 14, and
15, but small pours in the power house and on the right abutment
blocks and upstream aprons were made in conjunction with the larger
block pours; these latter included all of the power house below olkva -
tion 128 and east of the power house east wall. Early in Feb rnia ry
pouring was resumed on the left abutment. On February 12 the first
pour of the power-house walls above elevation 108.75 was made. and
that of the pen'tock trash-rack structures occurred on March 18.
Placing never attained the volume during this period that it had
known prior to this fiscal year, the maximum pour in any 1 month
being 38,100 cubic yards during February, which represented the com-
bined yardage in Madden Dam and the power house. During MIay
the dam had reached such a height generally that it became necessary
to shorten the track cable of the cableway to a 5-percent sag from its
previous 6-percent sag.
By June 30 the power-house interior had been completed. except
for two removable slabs, and the walls were at elevation 161.50.


On November 17 the timber crib intended to divert the flow of the
river from its course over blocks 13, 14, and 15, and the power house.
was set in place. It was sheeted and filled with rock to elevation
105. and the river was flowing through the six sluiceways on the fol-
lowing day. Placement of temporary stop logs in the power house
to form a tail-water coff'erdam was begun on November 20. This
was built to elevation 101. Unwatering of the former diversion chan-
nel was begun on November 22. On November 24 a flow of 19.200


cubic foot-second topped the crib and flooded the workings. The
crib was immediately raised to elevation 113, but the filling and
decking had been only partially completed when a flow of 35,000
cubic foot-second took place on November 26, followed by another
of 18,000 cubic foot-second on the 27th. All of these, of course,
flowed over blocks 5 and 7 which had been left down at elevation 100
for this purpose. On December 1 a small flow of 13,000 cubic foot-
second overtopped the tail-water cofferdam, which was then raised
to elevation 102.4. The workings were then unwatered and excava-
tion resumed. On December 15 occurred the largest flood of the sea-
son, 45,500 cubic foot-s-econd(l, which flooded the hole and delayed
concreting for 1 day. On January 20 all concrete in Madden Dam
was above elevation 110; subsequent to this the free flow of the river
ceased and formation of Madden Lake was begun, its level controlled
by the sluicewaiys, and fluctuating between elevations 97 and 164.5.


The nature of the rock over the right training wall made grouting
of this area advisable, and accordingly 24 holes were drilled and
grouted. Prior to any grouting, however, targets were set in the
rock face so that they were all in line between a fixed transit point
and a far distant foresight. Observations were taken frequently
during the grouting of each hole, whether at night or in the day
time, to detect any movement of the rock, but none occurred. When
the required depth of contete had been placed in December over the
foundation rock of blocks 13, 14, and 15, grouting of the cut-off
trench holes was begun, together with a large number of special holes
west of the cut-off trench. Seven holes were drilled at very flat
slopes under the utpitreaini apron to seal the surface opposite the
blocks. This program was later extended to include eight holes
drilled through the apron opposite blocks 16, 17, and 18, and sloping
west under the blocks them-elves.
A total of 2 foundation uplift pipes, 24 internal uplift pipes, 52
thermometers, 34 strain meters, 19 measuring posts, 37 piezometers
in concrete, 48 piezometers on drum gates, penstock pipes, outlet
pipes, scroll cases, needle and butterfly valves, and 12 ten-foot gage
rods were installed during the year.


A special test is in progress at the concrete testing laboratory to
determine the modulus of elasticity of the concrete placed around the
elect ri( strain meters imbedded in block 9 of the main dam. To date
225 specimens (6- by 12-inch and 8- by 16-inch cylinders) have been
made from concrete covering the strain meters.


The various routine reports of the concrete inspection department
were continued throughout the present year.


The plant, equipment, and general scheme of operations at the
aggregate loading terminal were generally those described in the
annual report for 1933. The Monighan walking dragline was the
loading unit used throughout the year.
The tramway system gave very dependable service through the
year, with only one break of the track cable; otherwise there were
no operating difficulties with this unit. The amount of raw mate-
rial taken from the aggregate pits and handled over the tramway
system was as follows:

buckets Cubic yards

Total for fiscal year-----.-------------------------------------------- .. 397,158 476,590
Previously reported------------- --------------------------------------- 281,847 334,041
Total to date-------------------.- -------------------------------- 679,005 810,631

The aggregate classification plant and equipment remained the
same during 1934 as described in the annual report for 1933. Daily
inspections and tests were made, as well as minor plant adjustments
from time to time, to conform with changes in the quality and grad-
ing of raw material.
On June 30, 1934, the cement silo at Maddeiii Siding was emptied
;and final inspection made of this structure; as no further use is
expected to be made of this silo, the balance of the cement to be
hautiled will be hautiled in bags. The final cou-wrete shipment. for the
contract at Madden Dam arrived at Balboa on June 4, 1934.
The general scheme of operation and inspection at the mixing
plant was carried out as outlined in the annual report for ll>3.
During the month of July the plant output for 69 eight-hour shifts
averaged 784 cubic yard-, representing peak production p rr shift
worked and being also the highest yardage for any one month dur-
ing the year. A total of approximately 34s.8205 barrels of cement
was used during the year.
At the close of the year the concrete work was approximately 99
percent complete, there remaining only approximately 5,050 cubic
yards to be placed. The major part of reinforced concrete work and
concrete placing in small and difficult sections of the structures was
done during the fiscal year 1934. This was in the penstock trash
racks, spillway crests and piers, roadway on abutments, power house,
etc. These pours ranged from 100 to 400 cubic yards per 8-hour


shift. Electric vibrators were continued in use as necessary parts
of the placing equipment.
The concrete in the left ridge dam was performed by local con-
tractors, totaling 3,167 cubic yards, and was completed on March 1,
1934, at a contract price of $12 per cubic yard, including prepara-
tion of subgrade. The concrete in the parapet wall was likewise
performed by local contractors, totaling 902.92 cubic yards, at a con-
tract price of $12 per cubic yard, including preparation of sub-
grade. After placing of the slope paving of the left ridge dam,
excavation for the base slab of the parapet wall was started by the
subcontractor; no forms were used for pouring this base, concrete
being placed between slope paving slab and neat excavation line on
the roadside.
The concrete work in the various highways at Madden Dam was
awarded to local contractors and involved approximately 3,933 cubic
yards. The concrete in walkways through saddle dam no. 8 and left
ridge dam was likewise awarded to local subcontractors, involving
approximately 199 cubic yards.


The installation of elastic wire-strain meters as contemplated by
the plans was completed during July 1933, the last of the 102 strain
meters being embedded in concrete on July 30. Of the 102 strain
meters embedded, 16 have become defective and 5 others are be-
ginning to show erratic symptoms. The installation of resistance
thermometers, a total of 70 units, was also completed during the
year. Uplift pressure pipes, consisting of 28 in various locations
in the base of the dam, and 24 in various locations in the body of the
dam, have also been installed. Test equipment installation was made
on drum gate no. 1, consisting of piezometer and pipe connections
at suitable locations on the skin plate of this drum gate for the
purpose of observing the efficacy of the air inlet below the crest of
the gate.
At the close of September 1933 the 12 sluice gates were completely
installed. The work of placing outlet pipe steel followed in close
order and by the end of January 1934 all of the outlet pipes were
in place except the extension of the outlet pipes through the power
station. By the end of the same month all of the above installed
penstock and outlet pipes, coinsistiing of about 733,000 pounds of
steel, were completely riveted, calkedl, and embedded in coiwncrete.
The fifth butterfly valve was completed during the month of Jan-
uary, all five valves having been imbedded in concrete at that time.
The weight of the five valves, including their operating mechanism,
is approximately 356,000 pounds. The installation of the two 84-inch


differential needle. valves was started about the middle of April, and
bases were grouted by the end of June; the total weight installed
was about 247,000 pounds. The four drum gates, each 100 feet long
and 18 feet high, and weighing over 1,400 tons, were received and the
work of assembly and erection was in active progress throughout the
balance of the fiscal year. Erection of the hydraulic turbines was
started by Government forces during December; the draft tube liners
and speed rings of both turbine units were assembled and placed on
line and grade. The installation of electric conduits in the power
station was also begun during December 1933 and that in the dam
was started during January 1934; the total installation was 17,695

The entire slope paving of the left ridge dam was put in place
during the dry season, having a length of 3,077.82 feet, -tation meas-
urement, and of a width varying according to the level of the ground.
The parapet, sidewalk, and roadway paving were completed except.
for about 200 feet near the counterforted wall. Saddle damns nos.
5, 6, 9, 10, 11, 12, 13, 14, 15, 16, 17, and 18 were maintained by the
contractors during the year, growing brush being cut and a few fills
being made where gullies developed from rain eroding the slopes; the
slopes are now becoming overgrown with grass which will probably
make it unnecessary to perform any considerable amount of main-
tenance work in the future. The road to and across saddle dam no.
8 was completed except for about 250 feet just north of Madden Dam.
The parking space at saddle dam no. 8 and the rubble masonry wall
around it were placed during the year.
During the year the first paving on the Madden Dam highway was
placed. The total length of this road was 3,817.87 feet, with a thick-
ness of 6 inches, and varying from 14 to 16 feet in width. A gravel
road was built from the end of the concrete road on saddle dam no.
8 to and across saddle dam no. 11, crossing saddle dam no. 10 on the
way. In order to provide a space for landing boats in Madden Lake
near the dam, a road was built from the contractor's gravel road
upstream from left ridge dam at a point near high water in the lake
to a point at about elevation 160.


Ridge tightening by injection of clay grout was continued through-
out the year, the work being entirely in area no. 2. The north end
of the area which was grouted first proved rather tight but as the
routing proceeded to the south the rock began to take more and more


grout. The amount of this class of work performed during the
year is indicated by the following:
Number of holes drilled--------------------------------------------------------------------------- 31
Total length of holes drilled-------------------------------------- -------------feet -. 3,820
Amount of grout injected------------------------------------------------------------cubic yards.-- 11,934


Four adjoining tracts alongside the Pequini traffic land above San
Juan were cleared, and a total of 416 acres was added to the cleared
areas of the reservoir during the year, at an approximate cost of
$38 per acre. This makes a total cleared area of approximately
2,888 acres.

The revised estimate covering the Madden Dam project was
$4,500,000. Thirty-one payments have been made the contractors,
amounting to a total of $4,185,606.71, including $72,139.96, which
was a part of the 10 percent of earnings withheld at the end of the
fiscal year 1933. The amount of the retained percentage is now

It is anticipated that the contract work will be completed about
the end of October 1934 and that the power plant will be ready for
operation during February 1935.


All dredging operations embracing iiiaiitiiinaIce of Atlantic en-
trance, Gatun Lake, Gaillard Cut, Miraflores Lake, and Pacific en-
trance sections of the Canal, with auxiliary dredging at North Cove,
Cristobal Drydock Slip, new direging station at Gamboa and at
Balboa drydock gates and including Chagres River gravel and
Chame sand operations and operation of Thatcher Ferry at Balboa,
have been directed from the division headquarters at Paraiso. A
field office was maintained at Balboa during July, August, and Sep-
tember and one at Cristobal from July 1 to November 18, 1933, and
again from May 26, 1934, to the end of the fiscal yn ir.
Excavation during the fiscal year is suiniuarizel in the following


Earth Rock Total

Cubic yardd Cubic yards Cubic yards
Atlantic entrance (maintenance) -------------------------- 2,2411. 11.10 9,600 2,249,700
Gatun Lake:
Maintenance. -- ..--.----------------------------------- 776,750 77,400 854,150
ProjectI no. 3 ----------------------------------------- 145,000 ---..----------- 145,000
Gaillard Cut:
Project no. 3 ----------------------------------------- 12,350 90,550 102,900
Project no. 5. ----------------------------------------- 7,450 20,200 27,650
Maintenance, including slides-----------------.-------- 1,302,300 432,100 1,734,400
Miriaflorrs Lake:
Project no. 6---...------...-------------------------------- 119,800 19,250 139,050
Maintenance----.--------------------------------- --- 92,900 --------------. 92,900
Pacific entrance:
Project no. 1 ------------------------------------------ 7,150 171,400 178,550
Maintenance..--------------------------------------------- 40,100 600 40,700
Total----------------------------------------------- 4,743,900 821,100 5,565,000
Cristobal approach channel (maintenance)------------------- 49,000 -------------- 49,000
North Cove stock pile ------------------------------------ 321,500 -------------- 321,500
Cristobal cofferdam removal-------------------------------- 28,467 3,100 31,567
Cristobal Drydock Slip-------------- ----------------------- 6,133 ..-------------- 6,133
Dredging station, Gamboa --------------------------------- 185,000 85,000 270,000
Balboa drydock gates-- ------------------------------------ 2,500 -------------- 2,500
Total-------------------- -------------------------- 592,600 88,100 1680,700
Grand total- -------------------------------------- 5,336,500 909,200 6,245,700

'In addition 1,020 cubic yards of Cham6 sand were produced by Crane boat Atlas.

Dredging operations at the Canal are divided in three major dis-
tricts: The northern district, from contour 42 feet below mean ea
level in the Atlantic Ocean to Gamiboa; the central district, Gaillard
Cut, from Gaiijmbon to Pedro Miguel Locks; the souitherni district,
from Pedro Miguel Locks to contour 50 feet below mean sea level in
the Pacific Ocean. Excavationi in these three districts is .iiiiiiniarizvd
as follows:

Canal prism Au\ili.ir Tiial

Earth Rock Total Earth Rock Total Earth Rock Total

Cu. yds. Cu. yds. Cu. yds. Cu. yds. Cu. ydi 1 Ca ydd. Cu. yds. Cu. yds. Cu. yds.
N northern --------- 11. %i';l. i ,'7..il0 .3, 21.,. 'ii .'ij, iI . II.) t7 ,.'l'2 J :t.7.l,'. .nI 17;". l i ..'27. (1W )
Central ........... 122.lull M11 10 u 1, 1 X 'U--------------------- ... I. ....... '.2. ><'i l, .h4, :ii
Sou t hi-rn ......... i 2' *i'i 191. 2 0 4.1,: 21 1 2.'111'......... "... iII Z'.2'. 4"41i il. I 453 (, 7I0
Tol.1.i...... 14,743,900 821,100 5,565,000 592,600 '-. 100 ioa 7 N i' 5,336,500 909,2006,245,700


Impro ,'c'n t project no. 1.-This project, consisting of deepening
the Pacific entrnnce channel from Miraflores Locks, to the sea buoys
and including the Balboa Inner Harbor, from -45 feet. to a ruling
depth of -50 feet (mean sea level datum), was begun in 1924. Proj-
ects 1-A and 1-B, Pacific entrance, and project. 1-A, Balboa Harbor,
were subsequiiently authorized as outlined in the nniiiiual report for
the fiscal year 1931.


The total excavation for the fiscal year was 7,150 cubic yards of
earth, 106,450 cubic yards of unmined rock, and 64,950 cubic yards
of mined rock, or a total of 178,550 cubic yards of material, from
project no. 1, Pacific entrance.
There was no dredging on project no. 1, Balboa Harbor, during
this year.
At the end of the year excavation on the Pacific entrance portion
of this project was 83.2 percent completed and on the harbor portion
90 percent completed.
Project no. 3.-Work on this project was started during Septem-
ber 1929. During the fiscal year a total of 247,900 cubic yards was
excavated on the Gaillard Cut and Gatun Lake sections of this
project, and excavation was 58 percent completed.
Project no. 5 (revised).-This project, consisting of widening the
Canal channel to the westward, Gaillard Cut approach to Pedro
Miguel Locks, was started in December 1930. Excavation was car-
ried on during the year by the use of dynamite for breaking rock and
shore mining. Excavation for the year from this project amounted
to 27,650 cubic yards, excavation being 63 percent completed at the
end of the fiscal year.
Project no. 6.-This project, consisting of widening Miraflores
Lake channel, was begun in April 1932. Total excavation during this
fiscal year amounted to 139,050 cubic yards on this project, excavation
being now 73 percent completed.
Project no. 9.-This project, which consists of widening the chan-
nel fronting the West Culebra slide, was started during June 1928.
No dredging work was performed on this project during the fiscal
year, 98 percent of the excavation being completed.
Gaillard Cut (maintenance).-The pipe-line suction dredge Las
Cruces and the dipper dredge Cascadas worked 61 days and 165 days,
respectively, on general clean-up work in Gaillard Cut during the
year, excavating a total of 1,620,100 cubic yards of earth and rock
from the area. Material removed by suction dredge was pumped into
the Mandingo River through pipe line, and that removed by the
dipper dredge was loaded in barges and dumped north of Gamboa.
Atlantic entrance, Cr.stobal Harbor, and Gatun Lake.-At the
Atlantic entrance, a total of 2,249,700 cubic yards of earth, silt, and
coral rock was removed. A total of 49,000 cubic yards of earth
and silt was removed and del)posited in shoal water east of the Canal
axis. At Gatun Lake a total of 743,000 cubic yards of material was
removed by pipe-line suction dredge, consisting of rock, clay, silt,
and gravel, all of which was pumped to the proposed Gamboa indus-
trial area and townsite fills. Earth and rock to the extent of 111,150
cubic yards were also excavated from Gatun Lake by dipper dredge,
l-iing loaded in scows and dumped north of Gamboa.


Pacife Entrance, Balboa Harbor and Mhraforvcs Lake.-Thiere was
40,700 cubic yards of earth and rock removed by dipper dredge from
the Pacific entrance and dumped at sea. No dredging was performed
in Balboa Harbor during the year. Ninety-two thousand nine hun-
dred cubic yards of earth were removed from Mfiraflores Lake by
dipper dredge and dumped to the eastward of the channel.


North Cove Stock Pile.-Work was begun in July preparing a site
near Fort Randolph for a stock pile of 150,000 cubic yards of sand
.and coral for the United States Army. Approximately 9 acres of
land were cleared and bulkheads were built along thie north and east
sides, the west and south sides being closed by embankment except
for a low temporary bulkhead for run-off. A total of 321,500 cubic
yards of material, including usable sand and coral, was removed and
pumped to the stock pile area through pipe line. Of this amount,
182,600 cubic yards of usable sand and coral remained in place on
the pile. Completed stock pile was turned over to Army authorities
on September 11, 1933.
Dredging station, Gamboa.-Preliminary construction work on this
project was begun in October with installation of bulkheads for re-
tention of hydraulic fill. Dredging operations during November,
December, January, April, and May excavated a total of 1,158,000
cubic yards of material, which was distributed mainly to the Gamnboa
industrial area and in the low areas of the Gamboa town site and on
breakwater and dumps north of Gamboa. A total of 3,980 lineal
feet of bulkhead construction was completed during the year.


The majority of the slides were either quiescent through the year
or showed only slight or occasional surface movements.
The Culebra slide extension (east), which first moved into the
Canal during November 1931, showed a slight surface movement
during July. Grader operations, as a slide preventive imnmisure, were
continued from the preceding year in the area adjacent to this slide
during the succeeding 3 months, during which time a total of 37.300
cubic yards of material was sluiced into the Canal and removed
by dredges.
The Culebra slide (west) was in slow continuous movement
through the year and 69,700 cubic yards of earth and rock were re-
moved by the dredge Cascadas from this area, in addition to which
28 holes were drilled for a total of 298 lineal feet and 600 cubic yards
were broken by the use of dynamite. Dynamite was also used in


breaking 4,100 cubic yards of rock at Culebra slide (east), at which
point 618 holes were drilled for a total of 2,515 lineal feet. Only
slight movement, was inidicated at the latter slide duriiing the year.
The Cucaracha slide, which had been practically quiescent since
the movement of July 1927, became again active on July 6, 1933,
pushing approximately 50,000 cubic yards of material into the basin
the movement continuing during the months of August, September,
and October. A total of 44,600 cubic yards of rock and earth was
removed by dipper dredge from this slide, and sluicing operations
were conducted in the back of the slide as a slide preventive meaii-,
with a view to relieving the pressure immediately behind the moving
area. A total of 51.350 cubic yards of miatteriial was sluiced into the
Canal and removed by dredges.
There were numerous small breaks at various points in Gaillard
Cut during the year but there was no interference with shipping on
account of slides during the period.
The total slide excavation for the fiscal year amounted to 119.300
cubic yards.
Considerable grading and excavation was done during the year in
carrying on the work of slide prieviention by correction of improper
drainage conditions, thereby reducing the effect of erosion, and daily
inspections were made of all portions of active slide areas fronting
the Canal, as well as periodical observation of all areas affected.

At the Chagres River gravel plant at Gamboa there were on hand
at the beginning of the year 79,580 cubic yards of gravel and sa1nd.
During the year 35,654 cubic yards were shipped, leaving 43,926
cubic yards on hand at the close of the year. No additional material
was produced during the year.
The work of removing floating obstructions and water hyacinths in
Gaillard Cut, Miraflores and Gatun Lakes was continued during the
year. The number of hyacinth plants destroyed during the year by
pulling or spraying with arsenic and soda was estimated at 48,846,310.
Log booms were maintained at the mouths of the Chagres and Man-
dingo Rivers to prevent hyacinth-, trees, and other floating obstruc-
tions drifting into the Canal during freshets. In spite of these pre-
cautions it was found impracticable to hold the Gamboa Bridge boom
during the freshet of November 27 and 28 and large quantities of
debris were carried into the Canial and lake. This driftwood, amount-
ing to approximately 2,600 cords, was removed and burned along the
river bank during the following dry season.
The crane boat Atlas pumped 1,020 cubic yards of sand into barges
at Chame and delivered it alongside the Balboa coaling station un-
loading dock for use of the supply department.



On May 14 the new crane boat Atlas w as delivered to the dredging
division by the mechanical division, test runs were made, and the ves-
sel was placed in service in Chame sand production and as a suiction
dredge, sea-going type. Work reqiie4 was isuied for a new hydrau-
lic grader to replace the obsolete equipment in use, barge No. ?I to be
used as a hull for this new hydraulic grader. A new barge. No. 1U,
was launched on June 28, 1934.
The following floating equipment was employed during the fiscal
year: Two 15-yard dipper dredges Cascadas and Paraiso operated for
101/2 months and 11/2 months, respectively; the 24-inch pipe-line suc-
tion dredge Las Cruc x was in service for 111/2 months during the
year; hydraulic grader No. 3 was operated for 61/2 months; drill boat
Tnrrier No. 2 was operated 111/) months during the year; air com-
pressor No. 2!) operated 10 months during the year; excavator No. 1
was in active service during the entire year; the 250-ton cranes Ajax
and Hercuies were operated on alternate months except when calls
for extra service required the commissioning of both cranes; the
crane boat La Valley was operated until retired from service on May
18, 1934; the new crane boat Atlas was placed in service on May 14
and operated during the remainder of the year; three large tugs were
operated during the year, as well as nine launches. The Diesel ferry-
boats Pre-s'Ju7. Roo.secclt and Prc.id'f nte Anwalor were engaged in
operation of the ferry servicee at Balboa during the year.

A topo(graphical survey was made of Gamboa and its environs and
a plan for a new Gambon town site developed. This include- a com-
plete street and building location plan, together with provision for
future expansion. The plan contemplates the accon mu iodation of all
dredging division and lighthouse suhbdivi-ion personnel, and embraces
a complete industrial area with shops, docks, etc. The ettiinated con-
struction period for this project is 6 years.


The mailnitenance of lights, buoys, beacons, etc., in the Canal and
adjacent waters was continued during the year, and several improve-
mnents and adjustments were made in such navigational aids. Rear
range target no. 50 was moved 500 feet to the southeast, on the range
and a range target showing a fixed white light, numbered 50-A, was
established on the old position of range target no. 50. An electric
center-line range target, no. 44-A, fixed green with 100-watt lamp on
39-foot nma.-t. was established December 29, 1933, between front and


rear targets at the north end of Gailla rd Cut. Concrete electric
beacon no. 27 in Gamboa reach was discontinued due to dredging
division project at Gamboa. On May 18 a gas buoy, painted black,
showing a flashing white light, was established in 7 fathoms of water,
300 feet 1000 true from center of English Rock in the Pacific. A
first-class spar buoy, painted black, marking the position, was placed
near the lighted buoy; this buoy was planted in order to assist sur-
vey vessels of the Navy surv\eying in those waters, and it is intended
to remove it when new charts for the area are issued about July 1,
1935. A 46-foot,spar buoy, red, was established off west end of
Dock 8, Balboa, replacing a nun buoy. Sun relays were installed on
range towers nos. 1 and 2, Atlantic entrance. Lamp changers were
installed on range lights nos. 5 and 6, Gatun Lake, on range towers
nos. 1 and 2, Pacific entrance, and at Flamenco lighthouse in the
Work accomplished at Taboguilla lighthouse in the Pacific con-
sisted of construction of forms for concrete footings, runway, and
tankhouse, installation of new concrete footings and wall, enlarging
platform, building concrete runway 14 feet long, new tankhouse, and
concrete base for tanks. At Farallon Sucio light, in the Atlantic,
main platform and steps were built. At Isla Grande light, in the
Atlantic, construction of a power house was begun, which, when
completed, will accommodate two new Diesel electric generators
furnishing power for this light.

The board of local inspectors conducted investigations and sub-
mitted reports covering 34 accidents of marine nature occurring to
vessels either in transit or in the terminal ports of the Canal, as
compared with 26 for the previous fiscal year. Classification of the
34 accidents shows the following: Took sheer leaving lock, 1; chocks
damaged while in locks, 2; struck dock while berthing, 2; struck
Canal bank, 5; broke pile while unberthing, 1; grounded, 2; touched
lock wall and/or fenders, 7; collision between ships, 3; sunk in
Gatun Lake, 1; struck shoal spot in Gaillard Cut, 1; compartments
flooded while berthed, 1; fouled cable in Gaillard Cut, 2; colli-ion
between launches, 1; ships damaged by Canal tug, 3. In two of the
cases investigated, daninage was alleged but not proved.
Following is a brief summary of the more eri-ous accidents. in
chronological order:


Date Vessel Cause of accident E imaed tpnsii ity

Aug. 20 President Wilson..-------- Colliinn with U. S. S. Swan---------- $7,000 Vpeel;.
Nov. 22 Standard.-------------. Struck bank of Canal----------------. 23,000 Panama Canal
Dec. 5 Wilhelm A. Riedmann... Collision with steamship Willamette 1,400 Vessels.
T ali y.
5 Willametre Valley ----. Collision with M. S. I'rlhimr A. 4,800 Do.
Feb. 19 F. W. Abrams----------- Struck lock approach wall.------------- 1, 100 Do.
May 31 Livingston Roe------------do ------------------------ ------1,000 Do.

On January 21, 1934, the steamship Brion, a single-screw, tea tni-
reciprocating vessel of 761 gross tons, while transiting the Canal
northbound suddenly listed about 50 to port, the list subsequently
increasing to about 500. The master and crew were unable to dis-
cover the cause of the list, nor could the vessel be brought back to
normal trim. An unsuccessful attempt was made to save the Brion
by beaching but after the bow was shoved against the bank the vessel
turned over on her port beam and sank in approximately 13 fathoms
of water with her bow 150 feet from the east bank of anchorage basin
in Gatun Lake.

No major salvage operations were performed during the year.
The tender Favorite performed one seagoing towing job during
the year, responding to a call from the steamship Witell, which was
disabled through loss of propeller. The Favorite arrived at the
position of the Witell, latitude 10'33' N. and longitude 960 02' W.
on January 21 and arrived at Balboa with the disabled vessel in tow
on January 28.


Pre/pitat on -.-For the calendar year 1933 precipitation in general
was below normal. Annual totals for the Canal Zone and vicinity
ranged from 67.77 inches at Balboa, to 139.85 inches at Gatun. The
maximum precipitation recorded in 24 consecutive hours in the Canial
Zone and vicinity was 9.05 inches at Gatun on October 19 and 20.
The average precipitation in the Pacific section was 69.60 inches; in
the central section 96.91 inches, and in the Atlantic section 134.27
Air tenm.peratures.-The maximum and minimum temperatii res of
years of record at various stations, revised to June 30, 1934, and the
annual average temperature for the years of record, are shown in the
tabulation following:


Station Maximum Minimum Annual Years of
average record

0 F. O F. o F.
Balboa Heights.-------------------------------- 97 63 78.7 28
Alhajuela --------------- --------- -------------- 98 59 78.5 23
Gatun---.------------------------------------ 95 66 80.4 23
Cristobal-------------------------------------- 95 66 80.0 26

The average air temperature for the calendar year was below nor-
mal except over the Atlantic coast, where it was normal. April was
the warmest month and Nov-ember the coolest of the calendar year.
Winds and hfm;w1iJy.-For the calendar year 1933 the annual wind
movement was in general below the normal. February was the
month of greatest. average wind velocity and July the month of the
lowest. The mean relative humidity of the atmosphere for the cal-
endar year 1933 was about 83 percent on the Pacific coast and 80
percent on the Atlantic coast. February was the month of least
average relative humidity and November the greatest.
Tidrc..-For the caleindar year 1933 the maximum high tide at
Balboa, 10 feet (above the zero gauge), occurred on August 8; the
maximum low tide there, 9.8 feet (below the zero gauge), occurred on
April 11 and 12. The greatest daily range there, 19.2 feet, also
occurred on April 11 and 12. At Cristobal the maximum high tide,
+1.39 feet, occurred on November 16; the maximum low tide, -0.99
foot, occurred on May 14; and the greatest daily range there, 1.98
feet, occurred on December 16.
Seismology.-Seventy-eight seismic disturbances were recorded at
Balboa Heights seismological station during the calendar year 1933.
Twenty-four of these were of comparatively close origin, less than
200 miles distant, 13 of which were generally felt in the Canal Zone
and vicinity. Twenty-four were of distant origin and 30 were so
slight that no estimate could be made of their epicenter. Twenty-
four shocks were recorded in November, 13 of them occurring on the
22d, most of them originating in the region of El Volcan and Bocas
del Toro, in the Republic of Panama.


At 6 a. m. on the morning of April 23 the United States Fleet,
coniSi.ting of 110 ships, began north-bound transit, and the entire 110
units were passed through the Canal without damage or especial inci-
denit in approximately 48 hours. Tandem lockages were used for the
destroyers, submarines, mine layers, etc., and during this period all
locks were manned with 8 locomotive crews for both chambers dur-
ing the whole 24-hour day. Immediately following the fleet transit,
the same organization commenced to pass through the Canal the


colI iercial traffic which had accumulated at each end during the
fleet trails it. By the morning of April 27 this accumulation had
been disposedi of and eoiiditions were normal.


The rules and regulations for the navigation of the Panama Camnal
and adjacent waters- effective January 1, 1926, issued undr Execritive
order of September 25, 192.", were suppln.-inted by the prn imulgat inm
on February 15, 1034, of Supplement No. 4 to these regulations, to
regulate tlihe transportation of hazardous cargoes in Canal waters.
The new regulations became effective 1 month from date of promul-
gation. and a period of 6 months from that date Nwa. allowed for
making the nece,-a;ry structural changes in vessels to meet the new
requirementts, which time limit for ci mplvtion of structural changes
was subsequently extended to December 15, 1934.



Because of the relative remoteness of the Panama Canal from
places of supply and repair, the Canal organization maintains facili-
ties for the repair and supply of ships as well as for the operation
and maintenance of the Canal and the care of employees. These
facilities are operated by business divisions of the Canal organi-
zation and units of the Panama Railroad Co. For accounting pur-
poses the Canal and railroad organizations are separate but in ad-
ministration and performance of work they are united and under
the central control of the Governor of the Panama Canal.

The profits, or excess of revenue over expenses, for the business.
activities of the Panama Canal amounted to $1,366,755.12 for the
year, as compared with $1,135,708.62 for the fiscal year 1933. This
was an increase of $231,046.50, or 20.3 percent. Of the indicated
excess of revenues over expenses in 1934 the sum of $596,554.74 is
due to impoundings of percentages of salaries and wages in accord-
ance with the economy acts. During 1933 this figure was $475,585.34.
The excess, not counting the impoundings, would be $770,200.38.
Similar figure in 1933 was $660,123.28, an increase of $110,077.10,
or 16.7 percent. The profits were made principally in the electric
light and power system, the shops and drydocks, and the fuel-oil-
handling plants. The results are presented in some detail in table
26 in section V.
In the accounting of profits and losses of the business activities
there is no actual interest charge on the money inve-teod in these
plants and their equipment. This investment totaled $27,264,922.75
at the beginning of the fiscal year and $26,776,63:.32 at the end
(table 4, sec. V). To establish a criterion for profit, a capital charge
has been calculated, based on 3 percent of the capital investment
(with minor variations such as 2 percent on public works in Panama
and Colon, and 11/2 percent on the shops at Balboa, which for reasons
of national defense were made somewhat more extensive than the
needs of commerce require) plus relatively slight amounts represent-
ing variations in supplies on hand. This theoretical capital charge
for the fiscal ye r 1934 was $783,324.77 (table 20, sec. V). The profits


of $1,366,755.12 exceeded this amount by $583,430.35). The profits of
$770,200.38 without the inclusion of the economy act impoundments
was less than the capital charge by $13,124.39.
Based on the figure of $27,264,922.75, representing fixed property
and equipment alone at the beginning of the year, the profits counted
at $1,3066,755.12 showed a return of 5 percent; counted at $770,L00.38,
the profits showed a return of 2.82 percent on the capital invested.


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 $145,478.42, or 10.5 percent, as compared with
the preceding fiscal year. Work for the Panama Railroad Co.
showed a decrease of $116,716.38, or 26 percent, as compared with
the fiscal year 1933. Work for other departments of the Government
showed a decrease in comparison with the fiscal year 1933 of $228,-
449.99, or 29.3 percent. Work for individuals and companies, in-
cluding that of ships transiting the Canal or calling at terminal
ports, showed an increase of $41,669.48, or 12.9 percent, as compared
with the preceding year. For the 5 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, 1933, and 1934 about one-third normal work.
The total volume of work for all interests was $2,486,762.31, a de-
crease of $448,975.31, or 15.3 percent, from the preceding year. This
compares with a decrease of $130,900.79, or 4.27 percent from 1932
to 1933.
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
following table:

1932 1933 1934

Amount of work completed:
Marine ---------------------------------------------$1,969,748.14 1. 780,519. 25 $1,598,155.48
Railroad------------. --------------------------.---- 499,761. 06 430,051.40 309,030.68
Stocks and materials---------------.------------------ 207,178.82 340,737.30 129,758.38
Sundries--------------------------------------------- 389,857.91 384,429.67 449,817.77
Total--------------------------------------------- 3,066,545.93 2,935,737.62 2, 4%i;. 762.31
Origin of work completed:
Individuals and companies t.............................. ------------------------------303,490.55 322,195.16 363,864.64
The Panama Canal---------------------------------- 1,416,841.97 1, 31. 288.93 1,23Q '10 51
Panama Railroad n' -.. .... .... ....................... 569,785.37 4t4.735.58 312,01'. 20
Other departments of ULnited' States Government......... 776,428.04 779,517.95 551,067.96
Total--------------------------------------------- 3,066, 545.93 2,935,737.62 2,486,762.31
1 Includes Panama Railroad Steamship Line.


The continued small volume of work necessitated part-time em-
ployment in all departments of the mechanical division until the
40-hour week law was placed in effect Ma rch 28, 1934. Prior to this
date furloughs varied according to the work available but bore
harder on the individual than during the preceding year. During
the yea r work given the division by the Navy held up fairly well in
volume, work from the National Recovery Administration, particu-
larly the building of a 1,000-yard scow for the dredging division,
and the construction of the new Pier 15 at the Cristobal shops aided
in keeping a considerable number of men from being thrown out of
employment. Certain other National Recovery Administration proj-
ects also enabled the temporary transfer of mechanics. Following
the advent of the 40-hour week about 20 gold employees were grad-
nally added to the force and about twice that number of silver em-
ployees. These just about made up the separations that occurred
during the year through transfers to other divisions, retirements,
deaths and resignations.


The rebuilt and enlarged drydock at Cristobal was first put to use
December 13, 1933. This dock is considerably larger than the pre-
vious one, being capable of taking craft 370 feet long or slightly
more and has caused marine work, particularly work on the subma-
rines based at Coco Solo, to migrate from Balboa to Cristobal.
A total of 122 vessels was drydocked during the yea r-82 at Balboa
and 40 at Cristobal, as compared with 117 during the preceding year
(69 at Balboa and 48 at Cristobal). These vessels are classified as

Class of vessel Balboa Cristobal Total

Panama Canal equipment -------------------------------------------------- 24 3 27
U. S. Navy vessels-------------------------. ------------------- -------- 19 14 33
U. S. Army vessels --------------------------------------------------------- 1 5 6
Other U. S. Government vessels -------------------------------------------- 1 1 2
Panama Railroad vessels--------------------------------------------------- 1 4 5
Commercial vessels--------------------------------------------------------- 36 13 49
Total.- ---------------------------------------....----------------.. 82 40 122

Work for the mechanical division continues to decline, being 15
pcr'eint less during the fiscal year 1934 than for the preceding fiscal
year and less than any of the last eight fiscal years. Marine work
con.-stitutes. the major source of revenue for the division, being 64.27
percent of the work completed during the past year and the percenit-
age was approximately the same during the two preceding years.
Repairs to commercial vessels consist principally of urgent run-
ning repairs to vc-els transiting the Canal or calling at Cristobal.


Annual dockings and minor overhald.s, were completed( at Balboa on
the steamships Maaizales, loconwa, and Neuvo Panama and on the
cable ship All America. The Standard Oil tanker Stalnlvird arrived
at Balboa December 4, 1933, after striking the west bank of the Canal
while in transit Novemiber 22, 1933. lHer cargo was transferred to
another tankship, her tanks freed from ga, and she was placed in
drydock at Balboa. Five shell plates were reviewed and 8 removed,
faired, and replaced and on Deceimber 13, 1933, 9 days later, the ves-
sel was ready to continue her voyage. The Hapag-Lloyd motorship
Cerigo was drydocked at Balboa a after grounding at the approach to
Cartagena and 4 shell plates were renewed; 8 were removed, faired.
and replaced. and 15 were faired in place. The Norwegian tankship
iStrodladt arrived at Balboa November 27, 1933, with the after sec-
tion of her starboard main engine crank shaft broken. It was found
necessary to completely dismantle the starboard engine; forge. ma-
chine, and install two new journals and one new crank pin; remetal
all main bearings; completely machine the crank shafts, including
turning the crank pins, and realign and rebuild the engine. This
was all completed and machinery trials successfully held within 30
days. Other exteiinsive main engine repairs were completed on the
steamships Dorothy Cahill and Siduey M. Hautiufani. On the former
a new low-pressure piston was cast and mac-hined and a new low-
pressure rod forged and machined; the low-pressure and intermediate-
pressure cylinders were rebored and miscellatneutit repairs were made
to the remainder of the engine.
Naval vessels.-Work was performed at the Balboa and Cri--tobal
shops for the United States Navy during the year to a total cost of
$466,489.89 or $203,026.29 less than during the year preceding, which
was the heaviest year of record in this respect. At the Cristobal
shops 6 submarines, 1 Navy houseboat, and 3 barges were drydocked
and overhauled in addition to miscellaneous repairs to other pieces
of floating and miscellaneous equipment. At the Balboa shops 7 sub-
marines. 3 miinesweepers, 2 subehasers, the U. S. S. Rihbutond and
J. Fr'd Ta/bott, and 2 miiiscellaneous craft were drvdocked and
overhauled. Urgent voyage repairs were also made on the U. S. S.
Infitaliipo1,li. Overtol,, Sturtevant, J. Fred Talbott, Jacob Jownes,
Nokomis, and HalniAd. The Navy fleet Indii was rigged and
unrigged for the Fleet's visit and tran-.it through the Canal on its
way to the ea.t coast in April 1934.
Army vessels.-At Balboa shops annual overhauls were accom-
plished on the ine planter Gr/iam, the Cominianiding Genieral's
launch Q-2, distribution boat L-55, and launch WiVnsow. Miscel-
laineous urgent repairs, were iiiade on the transport M. If,.. mine yawl
V 108, launch Co'r, and U. S. dredgre Sronna/, the latter being


in transit to the west coast of the United States. At Cristobal
shops annual overhauls were performed on the mine planters Getty
and H. C. Schuimni, and on the motorship General Morgan. Lewis. In
addition, work of a minor character was performed on various other
pieces of Army equipment from time to time.
Foreign government vessels.-At Balboa shops the Peruvian
cruisers Almirnte Grau and Lima, and destroyer Teniente Rodriyuez
and four submarines were drydocked and given their annual over-
haul. Repairs to a main engine cylinder liner and to a circulating
pump were accomplished on the Spanish Naval Training Ship Juan
Sebastian Elvano and minor repairs were made on the Canadian
cruisers Skeena and Vanconver. The Colombian destroyer Antioquia
was drydocked on her arrival in these waters for repairs to propellers
and her bottom was cleaned and painted.


Floating equipment of the marine and dredging divisions of the
Panama Canal were given the usual overhauling, the principal jobs
being on five 1,000-yard barges, suction dredge Las Oruces, dipper
dredge Gamboa, the two ferryboats, floating cranes Ajax and Her-
cules, and tugs Mariner, Gorgona, Engineer, and Favorite. A 1,000-
yard dump scow was built and launched at the Balboa shops for the
dredging division and the new craneship Atlas was completed and
put into service. Emergency and operating repairs in large num-
bers were undertaken for the contractors at Madden Dam and a
variety of work was performed for the Panama Canal for use at
the dam. Some work was done in anticipation of the 1935 over-
haul of the Atlantic Locks. In connection with the construction of
concrete Wharf No. 15 at Cristobal out of National Recovery Act
funds steel caissons to the value of $42,374.27 were manufactured at
Cristobal shops. The rebuilt Cristobal drydock was placed in use
December 13, 1933, from which time, to the close of the fiscal year,
39 vessels were docked in it. National Recovery Act funds were
allotted for the construction to part length of an 800-foot concrete
pier at Cristobal known as "Pier No. 15." These funds permitted the
construction of 475 feet and it is hoped to secure funds for the com-
pletion of the remaining 325 feet. Only a small foundry building
remains to be completed for finishing the rebuilding of the Cristobal

The total expenditures of the mechanical division amounted to
$2,616,004.14, which is $3,252.50 less than the preceding year. The
total amount earned by the division during the year was $123,523.38.


Local reserves at the end of the fiscal year for repairs to buildings
and equipment and for replacements of machinery and equipment,
improvements to Cristobal shops, and gratuity for employees' leave
totaled $418,661.35 as compared with $650,545.59 at the end of the
fiscal year 1933.

The principal activities of the electrical division are the operat-
ing and maintaining of the hydroelectric and Diesel electric power
plants, substations, transmission lines, and power di.-stribution sys-
tems; the operation and maintenance of telephone, telegraph, fire
alarms, and railway signal systems; the operation and maintenance
of Gatun spillway, and the installation and maintenance of such elec-
trical equipment by other divisions of the Panama Canal, other de-
partments of the Government, or such commercial vessels as may
require electrical work performed while transiting the Canal or call-
ing at the terminal ports. The total expenditure of the division for
the year was $1,139,838.74, which included $469,492.51 for mainte-
nance and operation of the power system; $533,435.78 for construc-
tion and maintenance; $102,350.01 for the maintenance and opera-
tion of the telephone system; and $34,560.44 for the maintenance
and operation of the railway signal section.
The power system was operated throughout the year with a
generator output of 68,994,100 hilowatt-hours, as compared with an
output of 73,517,569 kilowatt-iouris during the year preceding;
62,986,352 kilowatt-hours were distributed during the year as com-
pared with 66,172,012 kilowatt-hours during the year preceding.
There was a transmission and ditribution loss of 6,007,748 kilowatt-
hours, or 8.71 percent as compared with a similar loss of 7,345,557
kilowatt-hours, or 9.9 percent during the preceding year. There
were 8 interruptions to transmission lines during the year as com-
pared to 15 the previous year. Three of these failures were caused
by lightning, 4 by animals climbing the towers, and 1 was by a
broken ground wire. During the year the old manually operated
Gatun substation was abandoned and power is now furnished to
the locks and the townsite substation direct from the hydroelectric
station at Gatun. Power for other system substations is transmitted
across Gatun Dam and Locks to the trans-Isthmian lines. The aban-
donment of the old substation resulted in a write-off of $663,063.56
from the capital account of the power system. The new installa-
tions, together with the value of equipment moved from the old
substation, represent a value of $246,749.64, and the power system
capitalization has therefore been reduced by $416,317.12. The


abandonment of the old station also results in the saving of
approximately $20,000 annually in operating expenses.
Some of the more important items of work during the year were
the wiring in fixture installation necessary to convert the old nurses'
quarters at Colon Hospital into a dispensary and the old dispensary
into a hospital ward and private rooms; the completion of a new
72-apartment bachelor quarters building in the Fort de Lesseps area;
the completion of the necessary interior wiring and fixtures and the
exterior underground distribution for 8 family quarters at Gatun;
and 10 family quarters in the Gorai-s Hospital area; the installation
of some 30,000 feet of a type of cable new on the Isthmus between
the Gatun hydroelectric station and the new switching station;
the installation of a new cable between Mount Hope and the Coco
Solo submarine base for the purpose of providing duplicate electric
service to important Navy activities in that area.
A total of 351 jobs was completed in the marine electric shop, the
most important being the complete electrical installation on the new
crane boat Atlas for the Panama Canal; the complete overhaul of the
electrical equipment on the U. S. S. M.J-in'i-J, and seven submarines
for the United States Navy. and a minor circuit overhaul on the
dred e Las Oruces.
Installation of electric ranges and water heaters in Panama Canal
quarters was continued throughout the year and at the end of the year
there were 117 of the 2-burner type, 1,764 of the 4-burner type, and
6 of the 6-burner type.


The principal purchases of supplies for the Panama Canal have
been ioliih by the Washington office, as heretofore. Branch offices
in charge of assistant purchasing agents have been continued at New
York and San Francisco. While these offices have not been called
upon to make many purclhai-s for the Panama Canal during the pres-
ent fiscal year, they have ;ted as receiving and forwarding agIwencies
for iiiaitirl;ils purchased by the W;i-lhiington office for forwarding to
the Isthmus through their respe -it I'e ports. The office of assistant pur-
chasing agent at New Orleans was abolished during November 1933,
and arrangements made with the assistant freight traffic manager of
a steamship organization in that city having regular sailiiings between
New Orleans and the Isthmus to act for the Paianniiia Canial as receiv-
ing and forwarding agent in connection with material and supplies
delivered at and through the port of New Orleans for transshipment
to the Isthmus. The Panama Canal medical section, New York
Generi1 Depot, United States Army, Brooklyn, N. Y., has continued
as heretofore, to make purchases of the principal medical and hos-


pital supplies used by the Panama Canal on the Isthmus. these pur-
chases being made upon requests from the Washington office based
on requisitions received from the Isthmus.
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 inspection of mate-
rials in the United States covering purchases where delivery is
required on the Isthmus, and also for making final in-pertion of
iiateriils- where delivery is made in the United States. The large
majority of purchases are, however, made for delivery on the Isthmus
in accordance with the long-established policy of permitting competi-
tion for the Canal's requirements on even terms in all sections of the
country. As in the past, the field officers of the Corps of Engineers,
United States Army; the Bureau of Standards; the Bureau of Mines;
the Bureau of Chemistry of the Department of Agriculture; the
Medical Departmiiieint, United States Army; and the Buireain of Con-
struction and Repair and the Bureau of Engineering, Navy Depart-
ment, have assisted in cominecrtion with the inspection work in the
United States. The total umiiiber of orders placed during the ft-;il
year was 6,761, being a detreaea of 471 as compared with the fiscal
year 191) 1, or 6.5 percent.
The total value of orders p1;acpd in the Washington office( during
the yr'ui was $3J01,<.;<.7 as comiparedl with $3,61,4:,s.70 for 1l8>. a
derre!--e of 410.S01.74. These totals do not include the amount cov-
ered by orders placed by the medical section, New York General
Depot. United States Army, Brooklyn, nor orders placed by the
-Hi-tant purcha-ing agents at New York and New Orleans, which
together amounted to $51,73 -2' during the fiscal year 1934. The
grand total for the purchase of supplies and materials covered by
orders placed in the United States by and under the direction of the
Washington office from 1904 to the end of the fiscal year 1934 was
Theli sale of surplus Canal material by the purchasing department
in Washington during the fiscal year amounted to $74,000.37.
The special condition- of the National Industrial Recovery Act
and Executive orders i-sued thereunder have been strictly adhliered
to, and special care was exercised in the making of awards to be nire
that bids in all cases conformed to the requirements of the various
codes established in connection with the National Indu-trial Recov-
ery Act.
The assistant auditor's offleie in Washington prepares vouchers for
payments to be made in the Washington office; keeps rcclo is relative
to paymennts and financial trans;actions; conducts corrn-ponderir', rel-
ative to payments of claims; has cliarge of collections; exa\;i ines and



approves transfer settlements; gives the disbursing clerk's accounts
an administrative examination before submission to the General Ac-
counting Office, Audit Division; prepares statistical data required to
show distribution of expenses of the Washington office; prepares re-
ports on claims submitted to the General Accounting Office, Claims
Division, for settlement; prepares contracts and bonds; has charge
of work in connection with deposits for tolls made with Federal
Reserve banks; and passes upon legal questions involved in the
transactions of the business of the Washington office of the Panama
Canal. During the year 9.287 disbursement vouchers, amounting to
$4,150,727.31, and 267 collection vouchers, amounting to $167,556.66,
were prepared. In addition to the collection vouchers, 19 collections,
amounting to $40,275.54, were made by transfer of appropriation
through the General Accounting Office, making the total amount
collected $207,832.20 on 286 different na-couints, an increase of $72.-
484.03 as compared with the previous fiscal year.
During the year 53 contracts were prepared, amounting to $1.576,-
002.62, repre-enting an increase of 16 contracts over the previous yeair
and a decrease of $213,968.72 in amount.


The operation of the -torehouses was continued under the same
general policy as during the preceding year. The book value of
stock on hand at all storehouses at the end of the year was $3,488.-
060.69. The total value of all materials received on requisition from
the United States was $4,071,828.85. Local purchli-es were made
during the year to the extent of $308,208.55. Scrap and obsolete
stock remaining on hand at the end of the year were valued at $48,-
002.52. Among the sales of scrap during the year was that of 8,747
net tons of American scrap iron, of which 107 tons were sold in the
local market.
The general storehouse. at Balboa, including the medical store-
house, and the branch storehouse at Cri tobal and the one at Paraiso
handled a total of 131,333 requisitions and foremen's orders during
the year. The value of all issues for the year was $4,315,507.44.
Material and supplies sold to steamships, employees, and others
aggregated $644,860.49 and involved 82,640 separate sales. The sfale-
to steamships amounted to $28,165.99, involving 1,595 sales.
Native hardwood lumber operations were continued and during the
year 329,960 board-feet of logs were purchased from local con-
Cement issued during the year amounted to 402,462 barrels, of
which 347,239 were for the Madden Dam.


For the year's operations, revenues exceeded expenditures by $95,-
999.70 (see table 26, sec. V).


Fuel and Diesel oil.-All deliveries to and from the tanks, for
private companies as well as for the Panama Canal and the United
States Navy, are hliandled through the pipe lines and pumping plants
of the Panama Canal. The total fuel and Diesel oil handled by the
Balboa and Mount Hope plants, including both receipts and issues,
aggregated 9,710,246 barrels, as compared with 6,022,C03 in the pre-
ceding year. The operations are shown in more detail in the follow-
ing tabulation:

Balboa Mount Hope Total

Barrels Barrels Barrels
Received by the Panama Canal------------------------89,932.81 224,785.05 314,717.86
Used by the Panama Canal.--------------------------135,168.45 244; 629.39 379,797.84
Pumped for indliviluals and companies---------------- 3,300,845.02 5,639,670.51 8,940.515.53
Sold by he Panama Canal----------------------------- 2,944. 34 9,841.91 12, 786.25
Miscellaneous transfers------------------------------- 22,036.79 40,392.29 62, 429. 08
Total receipts, deliveries, and transfers----------- 3, 550,927.41 6, 159. 319. 15 9, 710, 246. 56

The number of ships discharging or receiving fuel oil (including
Diesel oil) during the year totaled 1,724, of which number 60 were
Panama Canal craft.
Gasoline anid k rosce c.-Bulk gasoline and keiro(.vnV rLeeived on
the Isthmus during the year totaled 3,029,230 and 993.290 gallons,
respect i vely.
Storage facilities.-No changes in volume of storage facilities were
lmade during the year and they remained as follows:

Balboa Mount Hope Total

Fuel and Diese' oil-- --.--------------...... --.-----barrels- 1,209,540 1,194,500 2,404.040
(3soline and kerosene ----.--.---.--------- ------ gallons.. 4,807,000 2,-'i 000 7,070,000

Revenue exceeded expenses by $197,460.18 for the year (sec. V,
table 26).


During the year dIi-pos.ition was made of $410,40099.44 worth of
obsolete or unserviceable property and equipment by sale. or by
destruction where the items had no money value. Replaeemnint was
made in all cases where conditions warranted.



The principal projects of building construction completed( during
the year coeui.isted of 10 two-family houses, Gorgas Hospital area,
Ancon; 7 two-family houses and 1 cottage at Gatun; concrete 28-
apairtinment bachelor quarters building, De Lesseps area, Colon; con-
crete and frame 72-room bachelor quarters building, Old Cristobal;
new property and equipment shed, Balboa Heights; new Panama
Railroad yard office building, Balboa; and new pump and compressor
buildings, Cristobal shops.
The principal projects under construction at the end of the fiscal
year were one quarters building, official type. Colon Beach: high
school and junior college, Balboa: gasoline filling station, Cristobal;
and raising of 31 cotingis in Balboa-Ancon district and installing
garaiges Ill>erneath.

Preventive meau1res which have been carried on for the past
several years to prevent the dest ruiiction of frame buildings by termites
were continued throughout the year. In the raising of 31 cottages
in the Ancon-Balboa district for the purpose of installing garages
underneath, termite proofing will be provided by placing metal
plates between the new concrete posts and the frame superstructures.
It is apparent that the intensive efforts made during the past
several years to eliminate termites from wooden buildiiings is resulting
in a large reduction of the damagee formerly done by them and a
consequent saving of maintenance expe.n:we.


Gold ( implowr.sy.-Due to the completion of new houses authorized
last year, reduction in working force, ret irieimit of emiploye"-, etc.,
at the end of the year, the number of quarters available fell only a
little short of meeting the demand. However, a Iarge number of
families are quartered in old wooden hoI-es wiiere expen-littiures for
further maintenance is false economy. This is particularly true at
Gatun, where only 15 new family apartments have been constructive
since 1906 and 1907. There are still about 135 old family apartments
and about 30 old bachelor apartments at Gatun that should be re-
plm,,'1 as soon as funds can be made available. At Cristubntl there
rciniin apprixmatiiitely 115 family apaiirtiiiits built in 1906 and 1907
that should be replaced. At Ancon there are approximately 225
faiimily and -100 bachelor ajiairtiiietsk that should be repl:i' d; at
Pedro Miguel 130 family apartments and 60 bachelor apart iiiits.
All of thlie above are 1906 and 1907 construction.


On June 30, 1933, there were 18 accepted applications on file for
family quarters in all d1istrict-, and on June 30, 11934, there were 33
applications on file-an increase of 15 over the previous year. Those
on file June 30, 19:14. were dlistributed as follows: Ancon-Balboa dis-
trict 13, Cristobal district 18. Pedro Miguel district 2. All quarters
were maintained in as good condition as available funds would
A few old frame quarters were disposed of by sale or demolished
to provide sites for new buildings. During the year 18 family quar-
ters consisting of 35 apartments, 1 twenty-eight apartment bachelor
quarters building, and 1 seventy-two room bachelor quarters build-
ing were constructed and occupied. Rentals collected exceeded
expenses of maintenance and reserves set aside for depreciation by
$572.03 (sec. V, table 26).
Silver employees.-The demandl for quarters from employees on
the silver roll is still far in excess of the supply. The present policy,
however, is not to incrpvse appreciably the total of apartments but
to confine the work primarily to iaintcnance and replacement. At
the close of the fiscal year the accepted applications on file for silver
quarters totaled 1,324, distributed as follows: Ancon-Balboa district,
831; Cristobal, 396; Pedro Miguel. 64; and Gatiin, 33. Over 50 per-
cent of the force of silver employees are required to live in Panama
City and Colon, where rental rates are considerably- higher than those
charged by the Pananma Canal. The $95,000 appropriated heretofore
by Congress to cover the deficit in silver quarters operations after
revenues had been applied against expenses was eliminated for the
fiscal year 1934, necessitating severe curtailment of maintenance work
on such quarters.


Motor and animal transportation for all departments and divisions
continued to be u-pplied by the transportation. division under the
pool system. This division is vlarged with operation and mninte-
nance of all transportation equlipiment and is required to operate on
a self-sustaining N.-i.. The usual amount of heavy haiiiuling in con-
nection with various building projects was a;ien year.
During the year 23 cars and trucks were retired and only 1 new
unit was purchased, in line with the policy of enforcing the utmioAt
economy in all divisions. There were on hand at the lose of the
year 315 cars and trucks, 4 trailers. 7 motorcyle-,. 5 mowing ma-
chines. and 16 mules. Revenues excedeed expenditures for the fiscal
year by $63.866.69, as compared with a profit of $24,319.17 for the
preceding year.



The operations of the Panama Canal Press were continued under
the same policy as in previous years. At the beginning of the fiscal
year 1934 the Canal Record was changed from a weekly to a monthly
publication. The plant carries in stock and manufacturers such nec-
essary stationery, forms, etc., as are requiired on the Isthmus in con-
nectioni with the opeiratiun of the Panama Canal and the Panama
Railroad. The iiianuiifacturiiin- output for the current year amounted
to $144,985.09, as compared with $154,523.54 for the previous year.
The excess of revenues over expenditures was $33,131.34 for the year.
The annual inventory value of inniturial on hand at the close of the
year was $59,617.64, as comiipared with $59,323.62 for the previous


Rentals on building sites and oil-tank sites in the Canal Zone
totaled $45,166.50 for the year, as compared with revenues of $49,-
337.25 in 1933. Rentals on agricultural lands in the Canal Zone
totaled $19,397.44, as compared with $20,330.79 for the preceding
At the close of the fiscal year a total of 1,611 licenses were in effect
covering 3,637 hectares of agricultural land within the Canal Zone.
This is a reduction of 139 in the number of licenses, as compared with
the closc of the preceding fiscal year, and a reduction in the area held
under licenses of 5411/2 hectares.


Work in these garden- wa., continued along the same general lines
as in former years, although the very limited funds available have
not permitted the introduction of plants or plant experimentation
with the same activity as for previous years. Plant exchanges were
carried on with experiiiimental statiuiis, botanical gardens, and indi.
viduals in differivit, parts of the world, and many valuable plants
were disseminatied throughout the Canal Zoniie, the Republic of Pan-
ama, and the surrounding count ri'.
During January of this year the director of the gardens visited
Chiriqui Proviince in the Republic of Panama for the purpose of
inspecting plants which the gardens have planted there for exper-
imeniital purposes and iatking further plantings under varying
environmental conditions.
During the present year an opportunity was afforded the Govern-
menit of Panama to supply a nimiber of young men to be trained
in the wvork of planting, budding, grafting, and other horticultural


operations at the gardens. The Department of Agriculture of the
Republic of Panama cooperated in this plan and a group of young
men was selected and after about 6 months' training in this work
they had gained considerable valuable experience and most of them
were given positions with the Panamanian Government in connec-
tion with the extension service maintained by that Government.


Many of the business activities on the Isthmus connected with
the operation of the Canal are conducted with funds of the Panama
Railroad Co. Included in these are the wharves and piers at the
harbor terminals, the commissary system, coaling plants, hotels, and
various 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 pub-
lished separately.
The operations of the railroad proper, harbor terminals, coaling
plants, stables, and bagoirge 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 buiblings under the land ,gent; and the com-
missaries, hotels Washington and Tivoli, plantation-,, dairy farms,
and cattle industry under the chief quartermaster of the Panama
Business operations on the Isthmus. carried on with Panama Rail-
road funds, yielded a profit of $1.156,738.14 for the fiscal year, as
compared with $784.432.2S in 1933, an increase of $372,305.86, or
47.5 percent.
A summary of 1034 operations is given in the paragraphs

Harbor tcrmn .r-The gross revenue from harbor terminal op-
erations during the fi-al year amounted to $1,401,55S.65; operating
expenses were $1.042,021.42. leaving a net revenue of $359,537.23, as
compared with $3.)7.451.86 in 1933.
There were 1,.197.324 tons of cargo stevedored and transferred. as
compared with 1.3'7,369 tons in 1933, an increase of 239,955 tons.
During the year 4,329 cargo ships and 941 banana schooners were
handled, as compared with 3,5903 cargo ships and 900 banana schoon-
ers in 1933. Agency service was furnished to 195 commercial vessels,
as compared with 197 last vear.


Canal Zone for orders.-As an aid in the distribution of goods to
areas served by steamship lines using the Panama Canal or its ter-
minal ports, there was established in 1925 the arrangement known
as Canal Zone for orders." Under this system merchandise is
shipped to Canal Zone ports (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 consignor or consignee may desire, except that
goods for use in the Canal Zone or the Republic of Panama, by
other than those entitled to free-entry privileges, are released only
upon the presentation of satisfactory evidence of payment of the
proper duty to the Republic of Panama. Many different commodi-
ties were handled in this manner during the year; the total cargo
received under the arrangement was 6,069 tons. This was a decrease
of about 44.7 percent from the tonnage received during the previous
year. The revenue received for handling and storage amounted to
$18,882.40, as compared with $28,033.91 for 1933, a decrease of
Co'MI-.1 .\r;y DivisioN

The operation of the commissary division continued along the
same general lines as during the past year. Every effort was made
to re.trict. sales in the coiimin-.-arie-; to those authorized and entitled
to purchase. The majority of infractions were of a minor nature and
were prriptly corrected. The agreement between Preside.1 ii, Roose-
velt and Arias imposed specific restrictions on sales to commercial
vessels, and reemphasized the rii-i.-ity of applying the restrictions
on sales generally.
The total gross receipts were $6,508,285.66, as compared with
$7,313,380.84 for 1933, a decrease of $805,197.49. The monthly aver-
age ,.ules aimounted to $542,357.14, as compared with $009,448.40 for
the preci -diing fiscal year.
The inventory of uiierchliali-e on hand at the close of the fiscal
year was $1,561,350, as compared to $1,670.,000 at the close of the
fiscal yiar 1933. The ratio of sales to inventory indicates a theo-
retical stock turn-over every 2.88 months.
The cost of sales, including operating expeni-es, was $i,5;7,836.45,
resulting in a net profit of $-,250.346.00, as compared with $224,876.58
for the preceding year, an incivase of $25,470.32.
Sales.-The iiltriliiition of -;ale- as compared with the two preced-
ing year wa;is as follows:


1932 1933 1934

United States Government (Army and Navy). ---------.---- $1,069,871.40 $964,376.75 $(r1. 593.94
The Pan.iiim.a Canal. ------------------------------------- 626,585.66 562,851.24 *4.,083.02
The Pannrnam Rilrund ..................................... 236,825.73 180,451.53 2.11. 266.73
Individuals and companies-------------- -----------.---.- 527,791.93 493,475.57 406. 556.18
Commercial ships----.......-------...-------------------------- 458,943.30 294,416.69 .s 570.82
Em plou ;. ...................... .... ..... .. ..... ...... 5,768,104.96 5,107,704.11 4,654,620.74
Total sales--------.-----------.-------------------- 8,688,122.98 7, 603.275.89 6,786. 691.43
Less discounts, cr e 111 etc.--------.-----.---------......-------- 340,896.65 28.i, 895.05 278,508.08
Net revenue from sales--- -----..------------------- 8,347,226.33 7, 313, 380.84 6, 508,183.35
Supplies for expenses:
Retail commissaries and warehouses----..---------------- 41,796.53 33,971.25 38,404.70
4iener.il.... --------------------..-----------------------... 2,623.87 1,640.31 2.276.22
Plants.. ------------..-------------------------------- 26,016.66 21,679.97 2'*1,328.41
Total....-------------------------------------------... 70,437.06 57.291.53 64,009.33
Lost by cur.ndleinji ion, pilferage, shrinkage, clerical errors, etc. 135,304.27 105,536.52 77,922.59
Grand total ---- -------. ------------------------ 8,552,967.66 7,476,208.89 6,650, 115.27

Purchases.-Piirclihases during the year aggregated 14.4435,528.82. a
de( n'.--e of $414,800.48, or 8.55 percent, as compared with the previ-

ous year. The following tabulation shows-, the
classes of materials purchas-ed, and the market
'. comiipared with the 2 preceding years:

value of the various
in which purchased,

1932 1933 1934

Groceries------------------- ----------------------- $1,305,899.68 $1,234,567.33 $1,2'3, 372.31
Candy and tobacco---------------------------------- 380,346.83 307,226.56 :Q24, 182.64
Hardware.. -- .---------------- ------------- 427,776.78 337,195.27 260,035.89
Dry goods------------------------------------------ 888,311.14 764,973.11 624,581.16
Shoes---------------------------------------------- 191,066.02 146,378.30 161,987.18
Cold storage ---- ---------------- ---------------- 1,213,423.68 1,092, 113.73 922,678.32
Raw material--------------- ----------------------- 427,159.61 318,784.87 340,647.14
Cat tle and hogs---- --------------------------------- 261,507.06 124,465.53 9,217.64
Milk and cream.--------------- --------------------- 164,719.51 153,383.45 131,058.85
D.urv products -- -------------------------------- 327,179.21 371,241.15 407,767.69
Total------------------------------------- 5,587,389.52 4,850,329.30 4,435, 528.82
Place of purchase:
United States--------------------------------- 4,192,222.93 3,798,356.49 3,569, 568, 40
Europe and Orient...--------------------.---------- 621,423.42 482,590.29 J17-. 386.34
I'entril and South A rnl ri .... ............ .. 145,085.99 131,284.11 ]il. 261.13
Local---.-------------------------- ----------- 167,199.81 130,.894.20 104,353.12
Panama Canal---.--------.----------------------- 69,947.45 0. 558. 08 67,445.14
Cattle industry-- ------------------------- 391,509.92 236,646.13 120, 514.69
Total----- ---------------------------.----. 5,587, 389.52 4,850,329.30 4,435, 528. 82

Maanufacturbig plants.-The output of the various manufacturing
plantrt and laundry during the year had a total value of $1,005.201.90,
as compared with $1.506.02.22 for the preceding yearr, a reduction of
$4lQ&II0.22. or 27.3 percent. The principal products of the major
plants and their value are as- follows:
Thie output of the bakery included 4,317,454 loaves of bread,
1.524.0.)6 rolls, 265.270 pounds of soda crackers, 57,:4 dozen *oinkies
(formiierly carried as pounds of crackers), together with cake pies,
doughnuts. roasted alonds, etc., to the total value of $245,320.11.


The coffee-rousting plant turned out 214,136 pounds of coffee, 26,-
087 poiinLd of cornmeal, 11,083 pounds of roasted peanuts, to the total
value of $52,791.78.
The aiiimount of ice manufactured during the year was 25,4111/2 tons,
valued at $182.949.86.
The principal output of the ice-creamin and milk-bottling plant con-
sisted of 760,316 quarts of milk, 67,786 gallons of ice cream, and 9,602
quarts of cream. The combined value was $233,605.80.
The value of itemnis manufactured in the industrial laboratory
totaled $200,165.92.
The abattoir and pickling department turned out 168,669 pounds of
dressed beef, 10,955 pounds of lobster, and 21 turtles, to the value of
$13,467.56. Abattoir byproducts shipped to the United States con-
sisted of hides, horns, etc., and were valued at $2,233.30.
The number of pieces of laundry handled was 4,408,619, and
receipts wgr2gegated $166,900.87.


The hotels Tivoli and Washington, at the two ends of the Canal,
are operated as essential adjuncts to the Canal for the purpose of
providing suitable accommodations to people having business with
the Canal, foreign visitors, tourists, visiting Government officials, and
others. The cost of operating the Hotel Tivoli during the year was
$144,869.61, which was $12,768.32 more than the revenue derived.
The operating cost of the Hotel Washington during the year was
$130,742.97, which was $23,719.17 more than the revenue derived.
Operating explciies of both hotels include increases in unexpended
re.mivcs over list year, as follows: Tivoli, $7,456.16; Washington,
The re-taiuirants and silver mness-es were operated under contract un-
til the clonr of business May 15, 1934, when the contract was termin-
ated and re-tai i iant operations turned over to the bureau of clubs and
plavrniiiids, which organization was already serving light meals and
selling tobaccos. The concrete ri-t aim ra nt buildings at Ancon and
Cri-t)ihal will be occupied by the clubhouse activities; the one at
Balboa will be utilized as a central police Antion, magistrate's court,
and jail; and the one at Pedro Miguel will be used to house the post
office and the district quarterm:a-tvir's office.

Beef catt/le.-During the year 250 head of fat steers were pur-
vhaimls for the coiimiissa ry division from cattle firms in the Republic
of Panama in addition to 34 head of cattle delivered by the cattle


industry pastures during the year. The operations for the year re-
sulted in a net loss of $9,500.9.-, as compared with a profit of $4,056.46
the year preceding. No beef cattle was on hand at the close of the
Darh'y farm.-The total milk production at the Mindi dairy am ount-
ed to 243,551 gallons, or an increase of 34,999 gallons over the preced-
ing year. No new dairy stock was purchased during the year, and a
total of 785 head were on hand as of June 30, 1934, as compared with
751 head the year before. The year's operations resulted in a net
profit of $6,271.01, as compared with $12,419.62 for the fiscal year

At the close of the fiscal year 1,445 leases and 15 licenses were in
effect, covering the iiue of Panama Railroad properties in the cities
of Panama and Colon. The income derived by the Panama Railroad
from these leases and licenses amounted to $234.900.04, repr-funting a
decrease in revenue over the previous year of $48,774.76.
The decrease in revenue was largely due to a discount of 331/3 per-
cent given to all lessees who were paying the full commercial rental
and who paid their ncount- during the period for which bills were
rendered. This reduction in rental, amounting to $76,404.72, was
given as a relief measure due to depression in business and '.on-rquent
reduction in earnings on real estate.
Fifteen new leases and 3 revocable permits were issued d during the
fiscal year and 5 leases canceled.
During the fiscal ye:ir two properties in the city of Pian:ima.
having, an area of 722.32 square meters, were sold for $1--'.3.10.


The gross revenue from the operation of telephones, electric clocks,
and electric printing telegraph machines amounted to $238,693.09,
and the total expenses were $173,883.57, leaving a net revenue of
$64,809.52, as compared with $56,278.97 for the preceding year, or
an increase of $8,530.55 for the year.
During the year 1,213 telephones were installed and 1.270 were
discontinued, making a net decrease of 57 telephones for the year.
At the end of the fiscal year the telephones on the system numbered
2,709. as compared with 2,766 at the end of the previous year.
A total of 24 automatic printing telegraphli typewriters were in use
at the end of the year, 12 in use by the Panama Canal and 12 by
commercial enterprises. Electric clocks in service at the end of
the year numbered 59. a decrease of 5 as compared with the previous
year. Twenty Morse telegraph stations were in service throughout
the year.



The sale of coal from the plants at Cristobal and Balboa totaled
52,657 tons, as compared with 39,327 tons in 1933, an increiae of
13,330 tons, or approximately 34 percent. Purchases during the year
totaled 31,140 tons. Total revenue from the sale of coal and the
extra charges for handling was $388,387.83. The cost of .ale;, in-
cluding opeatixprating expenses, was $299,696.22, resulting in a net profit
of $S8,691.61, as compared with a loss of $70,777.95 last year.
August 1, 1933, the price of coal at Cristobal was increased from
$6.25 to $7.25 per ton, with a corresponding increase at Balboa. De-
Velember 1, 1933, the price was reduced to $6.75 at Cristobal and $9.75
at Balboa. Due to increased purchase price in the United States the
selling price on the Isthmus was increased May 10, 1934, to $7.75 at
Cristobal and $10.75 at Balboa.
The operating expenses of the coaling plants were deci-eaed from
$111,317.78 in 1933 to $69,313.49 in 1934.


The gross revenues during the fiscal year 1934 from the operations
of the Panama Railroad proper (not including subsidiary business
activities) amounted to $1,418,432.73. The operating expenses were
$1,131,413.56, leaving a net revenue of $287,019.17 for the year, as
compared with $123,924.62 last year, an increase of $163,094.55.
Tonnage of revenue freight transported during the year amounted
to 296,247, as compared with 292,525 in 1933, an increase of 3,722
Statistics covering the various features of railroad operations dur-
ing the past 3 years are presented in the following table:

1932 1933 1934

Average miles operated, Colon to Panama.-------------. 47.61 47.61 47.61
Gross operating revenue----------------------------------------- $1,433,719.13 $1,328,229.81 $1,418,432.73
Operating xpenses.------------------------------- $1,377,130.33 $1,204,305.19 $1,131,413.56
Net )pert.iing revenue--------------------------------- $56,588.80 $123,924.62 $287,019.17
I'er(ent, of expenses to revenue-------------------------- 96.05 90.66 79.77
Gross revenue per mile of road-------------------- ----- $30,113.82 $27,898.12 $29,729.75
Operating expense per mile of road---.---------------- $28,925.23 $25,295.21 $23,764.20
Net revenue per mile of road-------------------------- $1,188.59 $2,602.91 $6,028.55
Number of passengers carried:
First class--------------------------------------- 184,307 168,344 162,501
Second class..--------------------------------------....... 225,647 194,765 196,597
Total------------.------------------------------ 409,954 363,109 359,098
Revenue per passenger-train mile---------------------- $4.17 $3.88 $3.76
Revenue per freight-train mile-------------------------- $9.66 $9.47 $11.83
Total revenue-train mileage----------------------------- 193,667 186,598 183,143
Railroad revenue per train mile------------------------- $7.40 $7.12 $7.74
Railroad operating expense per revenue-train mile----- $7.11 $6.45 $6.18
Net railroad revenue per revenue-train mile ---------- $0.29 $0.67 $1.57
FrAight, passenger, and switch locomotive mileage----- 307,539 282,502 280,358
Work-train mileage----..-------------------------------. 5,116 11,266 6,318
Passenger-train mileage--------.----------------------. 111,592 108,257 111,076
Freight-train mileage----------------------------------- 82,075 78,341 72,067



The gross operating revenue for the steamship line for the fiscal
year ended June 30, 1934, amounted to $953,444.98, and the gross
operating expenses amounted to $1,273,007.12, resulting in a net
deficit from operations of $319,562.14. The operating deficit com-
pared with the net loss for the fiscal year ended June 30, 1933, of
$320,484.65, shows an increase in the net revenue of $922.51.
For the year ended June 30, 1934, the tonnage carried by the steam-
ship line amounted to 118,606 tons, as compared with 116,148 tons in
the previous year.
The steamship line carried freight and passengers for account of
the Panama Canal and other departments of the Government of the
United States at material reductions from tariff rates, which amounted
to the important sum of $470,591.64. Had regular tariff rates been
received by the steamship line for such freight and passenger services
performed for the Panama Canal and other Government departments
its income would have been increased by $470,591.64 and its opera-
tions for the year would have resulted in a profit of $151,029.50.



The organization of the Panama Canal on the Isthmus embraces
five principal departments, namely: Operation and maintenance,
supply, accountin g, executive, and health. An office is maintained
in Washington, D. C., and the Panama Railroad Co. is so closely
affiliated as to be practically a part of the organization.


The department of operation and maintenance embraces functions
related to the actual use of the Canal as a waterway, including the
dred<1ed channel, loiks, damns, and aids to navigation, accessory activ-
ities such as shops and( drydocks, vessel inspection, electrical and
water supply, sewer -v-tYtm.-, roads and street-, hydrographic obser-
vations, surveys and etimiae- and miscellaneous cont ruction, other
than the erection of buildings.


The supply department is charged with the accumulation, storage,
and distribution of materials and supplies for the Canal and Panama
Railroad; the operation of commissaries, hotels, cattle pastures, dairy
and experiimeint gardenli; the maintenance and construction of build-
ings; the assignment of quarters and care of grounds; and the sale of
provisions and other supplies, except coal and water, to ships. It
also ope rat ,s corrals and motor transportation, manufacturing plants,
bakeries, ice plants, abattoirs, printing plant, and other related

The accounting department is responsible for the correct recording
of financial transactions of the Canal and Railroad; the adminis-
tr;itive auditiing of vouchers covering the rieeipt and disbursement
of funds preliminary to the finial audit by the General Accounting
Offi; cost klpi-ing of the Canal and Railroad; the checking of
time keeping; the preparation of estimates for appropriations and
the allotment of aplpwpri:tions to the various departments and
divisions; and the ONx;mmminatiomi of cIniii-. The collector and the
payiiima-ter are attached to the accounting department.


The executive department embraces the general office business
of the Governor, administrative, activities invested by Executive
order within the authority of the executive secretary. Under this
department come the administration of police and fire protection,
postal service, ciiustoms, shipping conmnissioner work, estates, schools,
general correspondence, and records for the organization of the
Canal and the Panaima, Railroad, personnel records, time keeping,
wage adjuistmnents, statistics of navigation, information and pub-
licity, relations with Panama, and the operation of clubs and
The health department is charged with all sanitary matters within
the Canal Zone and the cities of Panama and Colon, the operation
of the hospitals and dispensaries, the enforcement of quarantine
regulations, and the compilation of vital statistics for the Canal Zone
and in the cities of Panama and Colon.
The operations of the Panaim Railroad Co. on the Isthmus are
geieIra;lly related closely to the work of the Canal, and the Railroad
organizations is in effect a part of the Canal organization. The
Governor is pre-ident of the Panania Railroad Co.; the heads of
departments in the Canal organization and of the Railroad report
to him. The general administration of the composite organization
is centered in the exc'-iitive olfice, and the aOcounting work in the
accounting department; the Panama Railroad and other divisions
of the general organization are billed for their proper share of the
general overhead work.
There was no change in organization during the year and but two
changes in organization heads as follows:
Col. 0. G. Brown, United States Army, was appointed chief
health officer June 30, 1934, vice Col. J. F. Siler, United States Army,
relieved from duty with the Panama Canal.
Col. Edgar King, United States Army, was appointed sLuperin-
tendent, Gorga- Hospital June 30, 1934, vice Col. 0. G. Brown,
appointed chief health officer.
Lt. Comdr. Charles F. Osborn, Construction Corps, United States
Navy, was appointed assistant to Governor June 19, 1934, in antici-
pation of his appointment as superintendent of mechanical division
on July 2, 1934, vice Capt. R. W. Ryden. Construction Cor i[. United
States Navy, upon relief of the latter from duty with the Panama



The supervisory, technical, higher clerical, and highly skilled
mechanical employees, consisting primarily of citizens of the United
States, but including a few others, are employed on what is known
as the "gold roll"; the rest of the force, principally aliens, but in-
cluding a few citizens of the United States, on low-paid work, are
designated as silver employees. These terms are a heritage from
the tropical practice of paying Americans and Europeans in gold
because of its stability, while the native or tropical labor was paid in
local currency, based on silver.
Based on the last force reports in June of each year the gold force
decreased from 3,028 as of June 21, 1933, to 2,934 as of June 20,
1934, a decrease of 94, or 3.10 percent; the silver force decreased
from 9,575 to 9,086, a decrease of 489, or 5.11 percent. The com-
bined force changed from 12,603 to 12,020, a decrease of 583, or 4.63
percent. The force report shows all gold employees who were in the
service on the date of the report, including those on leave. For
silver employees the force report shows only those who were work-
ing on the days covered by the report. The silver force is likely to
fluctuate sharply, due to seasonal or temporary employment.


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 Netd-----Decrease Increase Net"'
June 21, June 20, decrease
1933 1934
Operation and maintenance:
Office --------------------------.------------. 45 46 8 --..---- ..--.---
Electrical division.------------------------------ 145 144 1 -----------..---
Municipal engineering division-----------.------ 99 82 17 ------ ------
Locks division-----------.--------------------- 207 240 .......--- 33 --.-------
redeie division.................----------------------------- 163 156 7 -- ----------
Madden Dam division------------.............------------ 65 68 ----.------ 3 --------
Mechanical division------.---------------------- 399 384 15 -------
Marine division.-------------------------------- 177 181 --.---- -- 4 ...-......
Fortifications.......-------.---------------------....--...........- 12 10 2 _---.---. -..-....-
Total, operation and maintenance------------- 1,321 1,311 50 40 10
Supply department:
Quartermaster---------------........--...-----.----------........ 182 192 ---- 10 ----------
Commissary division-----.---------------------- 221 201 20 ---------
Cattle industry--------------------- -------------- 2 2 .--------- --..------ --.-------
Hotel Tivoli ---------------------------------- 7 7 ----- --.----.----.
Hotol W ashinmton............................... 7 5 2 --- --- .....-- -
Tr:r ri.ir tioin ................................ 74 62 12 ------ ------ -
Toi iI, supply department-----------.---------- 493 469 34 10 24
Accounting department.-..--------------------------- 187 176 11 ---------- --------
Slealih r.nrlmrnent .................................. 276 255 21 - -- --- -- ---- -
EIxecitive 'ilepirtlm ent............................... 565 548 17 - .-- ----
Total, 3 departments------------------------ 1,028 979 49 ----------
Panama Railroad:
General manager------------------------------- 23 23 ---------- -------... ---. .-..--46
Transportation-------------------------------- 77 71 6 ---------- -------
Receiving and forwarding agency---------------- 86 81 5 ----- ----------
Total, Panama Railroad .----------------- ---- 186 175 11 ....---___ 11
Grand total.---.------------------------------ 3,028 2,934 144 50 94


Increases occurred in 4 of the 21 units of the organization, ai re-
ported in the foregoing table, and decreases in 14. The incrca-i; of
33 in the locks division was necessitated by reason of an act of Con-
gress decreeing a change from the 48-hour week to a 40-hour week.
The increase in marine division force vwas caused by the hiriilLr of
additional pilots. An increase of 3 in the Madden Dam division
was necessitate(ld liy reason of the contrator- resumingii work on a
full 3-shift day. The increase in the quartermaster division of sup-
ply department was due to increased building operations and the
change to the 40-hour week basis.
Decreases were (due to the completion of projects, retiremnt.-. or
to lessened activities generally resuiilting fi-nm decrease in traffic.
The changes in force are not always inithlinatically proportionate.
to the changes in business; in lieu of reduction of force, ii:Iny em-
ployee- were furloughed at intervals so as to afford part-time em-
ployment to as many as practicable and distribute earning.- and in
-nialler units of the organization no proportionate reduction is

The following table shows additions to the gold force and separa-
tions from it in the fiscal year from July 1, 1933, to June 30, 19:34.
Employments are classified as made in the United States or on the
Isthmus, and separations are classified by cauiie. This table covers
a slightly different period from that between the force reports of
June 21, 1933, and June 20, 1934.

tion Execu- Ac- Pan-
and tive Supply Health count- ama Total
mainte- ing R. R.

Employed or reemnployed in the United States. 31 15 --- 28 -------- 1 75
Employed or reemployed on the Isthmus.- 226 31 81 13 7 39 397
Total additions---------.-------------- 257 46 81 41 7 40 472
Resigned-...-----..---------.. ----------------- 102 38 11 36 4 24 215
Age.. .................................... 15 4 3 2 1 7 32
Disability ................................ 16 8 4 5 4 9 46
Involuntary separation ................... 20 1 4 1 1 4 31
VnluntUry separation..................... 1 1 --------.--------.----..... ------------...... 2
Died---....------..---------.------------------- 7 1 1 1 --.... 3 13
Reduction of force-----------......---------------- 62 1 12 5 6 1 87
E.xpirat ion of temporary employment -.-------- 80 7 16 18 2 8 131
Dikthmred1 for cause----------------------. 10 1 3 2 1 4 21
Cnmplet ion of apprenuiteship................. 4 ........ 5 -------- --------... -------- 9
Trrin ft-rred to Deparnucrie of Justice...... .......... 10 ........ ........ ........ ......... 10
Total------------------------------- .117 7; 317 70 193 6

The Panania Canal: The Panama R. R. Co.:
Separations.....-------------------------........................... 537 Separations..-------.----..---------------..... 60
Additions--..--------------.---------- 432 A.dition...............---...............---... 40
Net separations--- ---- --- -------------. 105 Net qparitions.......................... 20


The number of employees retired during the year under the pro-
visions of the Panama Canal retirement. act was 111. Of these 46
were retired on account of disability; 9 being Panama Railroad em-
ployee.-. Thirty-two were retired on account of age, 7 of whom
were Panama Railroad employees. Voluntary separations numbered
2, and involuntary separations. numbered 31, 4 of whom were Panama
Railroad employees. Involuntary sepa rations comprise those em-
ployees whom it was necessary to let out through reduction of force
but who had sufflicient service to entitle them to annuities.
The number of persons tendered employment through the Wash-
ington office of the Panama Canal, all above the grade of laIborer,
was 116, of whom 77 accepted and were appointed, covering 22 dif-
ferent kinds of positions. Acceptances and appointments were 66
percent of the teniiders, as compared with 73.1 percent last year.
The total number of gold employees added to the pay rolls on the
Isthmus during the fiscal year by employment or reemployment is
reported by the personnel bureau as 472. Separations from the serv-
ice numbered 597, making a net decrease of 125. Ba-ed on a gold
force of 3,028 as of June 21, 1933, the 597 sepa rations give a turn-
over rate of 19.7 peri-ent from all causes. For the fi-cal year 19:":
the rate was 12.05 percent.
At the end of the fiscal year the applications on file from residents
of the Isthmus for employment on the gold roll numbered approxi-
mately 1,000.
When a position is to be filled efforts are made to fill it by the
promotion of an employee or by the transfer of an employee whose
work in another department is about to terminate. This not only
reduces the expeni-es 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 em-
ployment as long as their services are satisfactory, thus building up
loyalty to the organization. Of the 472 gold employees employed
during the pa-t. fi-canl year, 3'l, or approximately 70 percent, were
reeiiiployiiient; of these, 306 (were reeniployed on the Isthmus and 23
in the United States.
During the year arrangements were made for the transportation
of 2,419 per-!oni from the United States to the Isthmus. Of this
number 2,'234 were from New York, 73 from New Orleans, 6 from
ntiher Atlantic ports, 101 from Pacific Coast ports, and 5 via air-
transiporit service. The e included new appointees and employees
returning from leave of ab-eiice and nimemiibers of their families.


The distribution of the silver per-niiw1 on the last force report
days of the two yeai rs is shown in the following tabulation. The


summary is for the days on which the force report is made. The
force miay change by several hundred within a short time according
to fluctuations in the demand for labor. The suninary shows only
those actually at work on June 21, 1933, and June 20, 19:4:

Department or division

Operation and iuaiutenance:
Office.......... ............. .... .---------------
Elelral di is.ion. --..--- .......-----------------
Miinicipnl engineering division-----------------
Locks *livi-ion.. .. ........----------------------.
Dredpine division.----------------------------
Madden Dam division-------------------------
Mechanical division.---------------------------
Marine division---------------------------------
Total, operation and maintenance-------------
Supply department.
Q uarierinasei ....... ......... .. .. ----------
Cominmissary division----------------------------
Cattle indii-try. ---------------
H otel Tivoli..... .. .......... .. -------------
Hotel Washington-------------------------------
Transolartdtion ...............-----------------
Total, supply departinent........... .......
AcCountinm department . --------------------
Health dltp.irtment.. ......... ....... --------------------
Execiutive delpariment-.......... --------------------
Total (3 deparintients').......... ..... .. ---------...
Panama Railroad:
Geneir.il uanmper. .. ..........--------------
Tr.an-.iort. ion. .. ----------------
Receiving and forwarding agency----------------
Trnitail, Panama Railroad-----------------------
Grand total----------------------------------


- - - - -



4.27S 4,061 363 146 217

1,438 1,454 ---------- 16 ----------
1,155 1,001 154 -------------------
89 84 ..-------------
90 89 1 ----- ----------
78 82 ---------- 4 ----------
216 185 31 -------- ----------
3,066 2,895 1 191 20 171
5...... .. ...... ..........
850 770 SO ................. ..-
360 361 --------_ 1 ---.---




80 1 79

63 10 ---------- ---------
263 ------ 27 i --
668 39 ------------
994 49 27 22
9,086 683 194 489

Increases were shown in 8 of the 21 units of the orgi-anizationi. as re-
ported above, and decreases in 12. The increase of 9 men in the elec-
trical division was due to the need of another gang for outside work.
Incrieai- of 97 in the dri1gin- division was due to iiK a.ed general
activities of that division. The mechanical division increase of 38
a duiie to the applic-ation of the 40-hour week law. Increased build-
ing activities and clihange to 40-hour week cans 1 in'-rease in gold
force and consequernt increase of 16 in silver periiunnel. The trans-
portation divi-ion of the Painumn Railroad s.hmw, an iin-ri-ase of 27
men which is due to temporary fluctuations of activities on the dates
No diticiiulty was experienced in maintaining the force; on the :on-
trary, unemployment and thie pressure for work pre ented one of the
problems of the year and occasioned etforts to afford employment
through grading and road-building jobs which employed a mia xiininum
of labor.






The Panama Canal Act provides that salaries or compensation fixed
thelreuntler 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 continental United States." Concurrently with this liminitation it
has been the policy to pay generally to United States citizens em-
ployed on 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 30,
1932, and March 3, 1933, and the policy of the President since the
Economy Act of lMarch 20, 1933, went into effect, the wage and salary
schedules for gold employees in effect on June 30, 1932, remained un-
changed throughout the year except for the establishment of a few
rates not provided in the schedule then in effect. Percentage deduic-
tions from pay were niade< as required by the Economy Acts and as
subsequently authorized by Executive orders of the President.
The wage board, consisting of the assistant engineer of mainte-
nance and a representative selected by the organizations of employees
and approved by the Governor, held two meetings during the year in
connection with the rate of pay for the chauffeur of the president of
the Panama Railroad, and rates of pay for officers on the crane boat
The salary board, composed of the heads of the nine major depart-
ments and divisions of the Panama Canal and Panama Railroad, held
no meet ings 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 one meeting
during the year, one case having been referred to it.
The provisions of the Independent Offices Appropriation Act of
March 28. 19!4, establishing a 40-hour week were complied with by
establishing hours of work for those affected which would re-ni1t, in
40 hour- of work per week and adjusting rate's of pay where nece5ary
so that earnings riininied the same as when previously working
48-hour vweek-.

As in the case of rates of pay of gold employees, the compensation
of alien employees on the silver roll remainined practically unchanged
throughout the year. The silver wage board held no meetings during
the year.


The average rates paid to alien employees as of October 1, 1933,
when the annual general survey was made, as compared with preced-
ing years, were as follows:

Average rates Average rates

Monthly Hourly Monthly Hourly
'empl-iy'ees employees employees employees
i ptr uiinlT h (per hour) (permonth) i per hour)

Nov. 1, 1923.-------------- $55.27 $0.2312 Oct. 1, 1929-------------- 55.37 $0. 2450
Nov. 1, 1924-------------- 54.74 .2323 Oct. 1, 1930--------------- 57.09 .2560
Nov. 1,1925-------------- 55.28 .2385 Oct. 1, 1931--------------- 57.46 .2460
Nov. 1,1926-------------- 55.40 .2395 Oct. 1, 1932---------.- -54.34 .2400
Oct. 1, 1927--------------- 54.88 .2411 Oct. 1, 1933---------- --. 56.95 1.2510
Oct. 1, 1928--------------- 56.44 .2496
I Prior to the 15 percent Economy Act deduction.

The average rate per month, ignoring the Economty Act deduction
of 15 percent, and combining the monthly rates with the hourly on
the bais of 208 hours per month was $54.77 for 9.*'02 positions, as
conipared with a similar figure of $5.2.41 for 9,.904 po.-itions the pre-
ceding year; an increased of $2.36 per month. Reducing the $')4.77
per month by 15 -perctnt, or $8.22, results in $46.55 per month which
is $5.86 less than the a average shown for October 1932. As with the
gold employees this 15 percent reduction was reduced to 10 percent,
effective February 1, 1:4A.
The average rates of pay shown above were uacertained by making
periodically a compilation and classification covering the rates of pay
of all alien employees in the service. The figures shown above do not
represent average earnings but the average rates of pay at which
these employees are carried on our time rolls. Average yearly earn-
ings will fall sonixewhat below the annual equiivalents of the average
monthly and hourly rates shown above. Tim reason is that these
employees do not receive any leave of ab-enci.' with pay, ecXepting
sick leave, and, con-equently, any nsezces from duty, not covered by
a physician's certificate, are without pay.
Under Executive orders the maximum raite of cimpen-alt Ion aun-
thorized for alien employees is 'S0 per month, or 40 cents per hour,
with the exception that authority has been granted to exceed these
mnaximumn rates in the *o*i-rs of not more than 112 alien employees of
the Panama Ca;inal and Panaiii a Railroad Co. The basic hourly rate
of compensation for iiminoii hibor has remained at 20 cents an hour
since 1922, with silil qiiuint provisos that 21 or 22 cents may he used
as the entrance rate. Tli-c riate:. however, art subject to the pro-
visions of the Economyii Act of March 1o33.
Wagts of alien employ' of the Pannnia Canal and the Pan;iia
Railroad Co. bear no definite relation to wag- of corre-pondling
classes of employees in the United State(. Diiuring the oin-tric-
tion of the Canal, rates of pay equal to or slightly in excess of rates


prevailing for tropical labor throughout the Caribbean area were
established for these employees. Surveys of the wages prevailing
for tropical labor throughout the British West Indies and the coun-
tries of Central Americai, as well as selling prices of certain selected
staple commodities, are made from time to time to secure a basis of
conmparis.on 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 worker-i, hlias been
carried 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 1934
index figure showed an increase in the cost of living over 1914 of
5.18 percent. Upon the recommendation of the silver wage board it
was decided to establish a new index, Lained upon 1932 prices, and to
correlate the wage scale to the more recent co-ts with con-ideiration
of revision in the expenses of employees on WCcoint of changes in
conditions since the years of Canal construction, and compilation of
data to determine this index was begun but is still in the process of

Alien employees of the Panama Railroad Co. who are no longer
able to perform uieful service in any capacity are retired from the
rolls and given either a lump-sum payment, with repAtriation, or a
mini! annuity. Since June 1. 1928, 19 such employees have been given
lump-sum payiniiits ranging from $25 to $500 and 191 employees
were grainted pensions ranging from $7 to $25 per month. Since
1928, 34 penioiners have died and 2 di-appeared, leaving 155 pen-
sioners at the end of the fiscal year. The average payment was
$12 per month. The following table shows the number of those
retired. the number of those granted monthly and lump-)"um pay-
ments. and the number still receiving monthly payments at the end
of the year:

Died in year indicated Still
TLumnp}- _ _-____living
Lum Monthly em- out of
Fiscal year pay- ploy- year's
ments ments reired 1928 1929 1930 1931 1932 1933 1934 super
retired nnu-

1928----..-..---------------.-------- 1 1 ------------------.--------.....----.. ..------.....----......-- 1
1929------. -....- -... -- .-.--..- -. ----- --- -- .... .. ...... ...... .... .... .. ..... ........
1930-------------------- 7 20 33 ------. ----...- 2 5 1 ----- 6 12
1931--------------.------ 2 13 15 ------------------ 3 2 ------.------ 8
1932..--.------.....------------ 2 24 26 ------ ------.------. .....----- 2 1 2 19
1933-------------------- 3 67 70 ------ ------. ..-------....---.... ----------- 1 6 60
1934.--...............------------------. 5 60 65 ------ -----------.- ------ ------... ----.... 5 55


_ ~111II

rT .tul.............


The foregoing applies only to suiperainnuated alien employees of
the Panama Railroad Co. No provi ion exists for the payment, of
pensions to superannuateid alien employees of the Panama Canal.
However, a repeat nriation fund wa initlde, available this year to assist
these enimplohyee to return to theirci f former homes.
As an aid in meeting this pr1oblemn, domiciliary care for superan-
nuiated alien employees has been provided in connection with the
insane za-ylumi at Corioz;il. but few of the emiployee- are willing to
stay there, and in any event the firilitiev, available do inot allow tak-
ing care of any consideranible number of employees, some of whom
have one or more dependents. Moreover, the per capital cost of insti-
tutional care thus furnished excedIs the amount it wouibld cost to
provide 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, andt further explanation of the need
of it, and of the cost, are presented below under "Admniinistrative

Operation of the Canal clubhouses, with their related activities of
playgrounids, kindergartenis. athletic fields, swimming pools, etc., con-
tinued as in past years, but with a reduction in the amniount appro-
priated by Congress and with a greater proportion of the expense
borne, by the receipts from charges for aldmnission and services. As
private industry is not permiit (edl within the Canal Zone, the supply-
ing and supervision of recreational facilities for thie Canal employees
and their families is a function of the Canal organization.
The clubhouses operated in the year were as follows: Gold club-
houses at Ancon, Balbhoa, Pedro MignUl, Madden Dam, Gatun, and
Cri.stobal, with a boathouse nioi- the quarantine station and a baith-
house and refre, b-nent stand at Farfan Ben;i.i andl with playgrmunds
at Ancon. Balhoa. Pedrol Miguel, Gatun, and New Cristobal; club-
houses for the silver employees were opl.ra.ted at La Boca, Red Tank,
Paraiso,. Madden Danm, and Cri-tobbil, and a clubroomn at Gamiboa,
with playgrounds at La Bovca, Red Tank, Paraiso. Gatun, Camp
Bierd, and Mouint Hope. All clubhouses are open daily from 16
to 18 hours, including Sund;iNys and holidays. The facilities at the
bathhouse for goldil employees at Farfan Beach have been aigniimented
during the past year. Tiis beich has been quite freely patronizedl
by gold employees and their families for swimming and picnics and
is partially supplying a great need for this clas of recreation.
During May of this year the contracts covering the operation of
the Canal Zone re-tainrants were terninimAt'd, amnd this .activity was



taken over by the bureau of clubs and playgrounds, and restaurant
operations are being carried on at the clubhouses. This has necessi-
tated a considerable extension to the Balboa clubhouse structure to
acconmnodate the restaurant patrion.-, and at Ancon arrangements
are being made to reconstruct the former restaurant building and to
remove the clubhouse and restaurant activities to that building. At
other points in the Canal Zone the restaurant, business has been in-
corporated in the present clubhouse- or is being tentatively continued
in the structures formerly u-ed by the restaurant contractors, pend-
ing completion of plans for permanent location. The transfer of the
restaurant operations to the bureau of clubs and playgrounds has
resulted in more satisfactory service to the employees and has slightly
increas-d the other activities of the clubhouses by reason of their
increased patronage.
New clubhouse buildings are needed at Balboa, La Boca, and New
Cristobal, as well as considerable exten-ions to the restaurant build-
ings at Ancon and Cristolal. There is also urgent need for the con-
struction of an annex to the play .,hod at Balboa to provide accom-
modations for the physical activities of the pupils of the Junior
College and of the other educational ins-titutions in this area.


One of the major duties of the Governor and his assistants is plan-
ning improvements, both in present admini-iistration and facilities and
in provision for future needs. Brief discussion on some of the more
important initt*rs aff'tihig operations are presented herewith.


In addition to appropriations for developments and replacements,
the need of which is explained on the following pages, it is desirable
to have specific Lp-ii-lation providing in substance as follows:
rieiwnin' alici. .ii,.7J. i ...-That the Governor of the Panama Canal, under
such regulations as iniv he prescribed by the President of the United States,
may pay cash rilii- to such alien employees of the Panama Canal as may be-
come unfit for further n-i.ill service by reason of mental or physical disability
reniitlhr from ie(- 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
empl i* so furnished relief, with a maximum of ..' per i'iinthi, nor be graiited
to aly employee lii ini less than 10 years' service with the Panama Canal,
ini-lim.in any service within the Panama Railroad Co. on the Isthmus of Panama.
That there be :ii'laii.rialil annually such sums as may be necessary to carry
out the prnovii-iuis of this act.
Tolls.-That the first five sentences of the third p;irraiajh of section 5 of the
act of Auiust- 24, 1912 (37 Stat. 560, ilt), as amended by the act of June 15,
1914 (:S Stat. :Nf5), are hereby amended so as to i';ad as follows: "Tolls on


merchant vessel.-, Armny and Navy transports, colliir<-. hospital ships, si'upplily
ships, and yachts shall be based on net vessel tons of actual eariiin- capacity,
determined in accordance with the 'Rules for the Meiinurement of Vessels for
the Panama Canal' prescribed by proclamation of t1n- Preint. November 21,
1913, as hereafter amended from time to time by odler of the PIresidetit, and
shall not exceed $1 per net vessel-ton so determnlied, nor he less than 60 cents
per net vessel-ton so di-t.riiiinedil. on laden vessels, and on vessels in ballast
without .issm.;imers or care--o shall be less than the rate of tolls for vessels with
passengers or irii': Provided, That no ciumre- shall be made for deck load,
whirh is defined, for the jiprp'i-i of this art. as *.ir situated in a -p.i:-e which
is at all times exposed to the weather and the sea and which space is not in-
cluded in the net to-m'iagr determined iundier the ;aid Rules for the Mrn-iire-
ment of Vessels for the Panama Canal.' Tolls on other fl' atin u- craft shall be
levied on dipl;i-iriiieI[ tioiiiia- at rates to be prescribed by the President. In
addition to the tolls based on measurement or displacement tonniiue. tolls may
be levied on as.-'ineirs at rates prescribed by the President but not to exceed
$1.50 for each pTaeniri Tie levy of tolls is subject to the provisions of
article XIX of the convention between the United States and the Rvpniiblic of
Panama. entered into November 18, 1,.I. and of article I of the treaty between
the 1nirtd Stimio of Amterica and the Republic of C.1.iiiibi;. proclaimed March
30. 1922."


American citizen- employed by the Panama Canal or Panama
Railroad Co. are subject to retirement under the Panamaii Canal
retirement law, but this provision applies only to American citizeins.
A very large number of tli Canal and Railrnid force are aliens and
they are without benefit of lral provision for retirement when,
through superannuation or other phy-.-Yil disability, they can no
le i1er perform their work. The Paiaina Railroad Co. can and does
give to such of its alien employees lpeuwnwions raiiginir from $7 to $25
per month, but tlinre is no authority to do this with employees of
the PNiininf Cainal. All that can be done for them is to offer them
care at Corozal Hospital. \\hiert' there are no accommodations for
their families, or to carry them onil the rolls at reliduced pay at rates
from $15 to 7. per month to perform such work as they can. It
woi(ld be much better to grant them a s-mall annuity and ilmove them
av ay% from the Isthmus.
The '<-t of caring for these employl 1 -. on the basis of an average
pciti-inn of 21) per month, "im- been -(i min;ted at about l42.an1 for
the first yar, with a rad;ilual iii-re;i-' to a maximum of $121.OO a
year for the twentieth yevir andI each year thereafter.
'IThle cost is not high rii-ilerin the number of employ-'- coin-
c(NQF*e. and the i-rlief r* illlieiuilde is colii-1lreI not onlv humane
but a step tm\;ird !inr'* rlli-ierit operation tlmro dih werlding out those
who are no lon yir clip ;ible of service and then requiriuii of everyone
on the active roll the normal daily performance of service.



The growth of the population of West Indian negroes in this
vicinity has been in excess of the need of labor, and with the decrease
in Caiiii artivitie-. as well as in business in Panama generally, there
has bevien acute unemployment among both West Indians and natives
of Panama. Partial relief is ou-light through repatriiatiiig a number
of West Indians and their families, and the Republic of Panama has
requioted that the United States "proceed with the repatriation of
unemployed foreign worktr-: who have collected in the cities of
Panama and Colon 1ercaiuse of being left without work in the Canal
As these aliens are resident in territory of Panama, the participa-
tion of the United States in the movement would be in paying
expenses 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 has brought no contract laborers to the
Isthmus since 1913 and has regularly offered repatriation to dis-
charged laorierr who came to the Isthmus either under contract or
on their own account and has taken the initiative in di-couiiraging
further immigration and requetiing Panama to restrict it, the fact
is recognized that the existing surplus of alien West Indian popula-
tion 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 Governmentsi
to apply to the situation such n-!medies as are advisable and
A sum of $150,000 has been providedl by an appropriation for the
repatriation of unemployed West Indians and their families who
have rendered at least 3 years' niceie with the United States Gov-
ernment or the Panama Railroad Co. In addition, allowances may
be granted in meritorious < :i-cs of $-.-, for single men and $50 for
men with families, who imy also be allowed $10 for each minor
child, provided that the total amount allotted to an employee shall
not exceed $100.
It is pl;niiifd to pr-ii.i'le as many of the unemployed West
Indians as the fund will take care of, perhaps 1,000 familie-. to take
advanta ge of this repatriation and the sum for rehabilitation in
their home country. It is hoped that, this will relieve sonmewlhat the
muiiiniployiimenit situation in the vicinity but the nece-ity for iiiakiing-
some provision for granting annuities to alien Pan:win:i C:inal
employees will still remain and grow more acute as those now in
service grow older.


The legislation affecting tolls is in the samine form as in the bill
which was passed by the House of Representatives in the srinnd
session of the Seventy-third Congress and .substituted in the Senate
for the formnier Senate bill, except that in the draft. now propo-ed
the word "hereafter" has been inserted with rvspect to amiiiend-
ments to the Paniaa Canal rules of nieauiirenet. This is in
accordance with the u;gge.tion of a MeTmber of Congress that iich
insertion would clarify the bill. The bill failed of pa-agt in the
Senate. Its ba.-ic purpose, as was outlined in the annual report
for 19:3, is to place the charges directly under the control of the
President and within the limitations pr -rctribed by Congiv-- and
to simplify the collection of tolls. The present .-ystiem has the effect
of basing the amount of tolls on the m1easurement of the vese-cl under
the rules for the measurement of registered tonnage." Theie rules
grant exemptions from charges on spaces which are actually used for
the carriage of passengers and cargo. Further, as such rules may be
changed from time to time bi an official of the United States not
connected with the operation of the Canal, and have frequently been
so changed, the actual basis of collection of tolls is not controlled by
the President or Congress. As a remedy to this situation it is pro-
posed that there be adopted a single basis of measurement of in-
terior earning spaces under the rules of the Panama Canal which
have been approved by the President and may be amended by him.
Opposition to the passage of the bill has been made by Amnieriran
steamship owners because it is expected to cause an increase in tolls
charges on some of their vessels. In view of this opposition, the
Secretary of War indicated that he would recommend to the Presi-
d(lent, after the enactment of the legislation with the proposed maxi-
mum rate of $1 per ton, that he establish a tolls rate on laden vessels
of not more than 90 cents. This rate on the 1933 tonnage would have
produced approximately the same aggregate total as was collected in
1933 under the existing dual system of measurement. He stated
further that he would direct that a study be made of Panama Canal
rules for the purpose of changing them so as to secure more equitable
treatment for all vessels. In comment, the Secretary of War stated
that the passage of the bill is essential to remove the existing inequal-
ities in the treatment of shipping now passing through the Panaiui
Canal and to prevent further reductions in tolls charges by sti uctural
changes in vessels that reduce tonnages but have practically no effect
on the cargo-carrying capacity of vessels.
The present toll-measurement system is irregular with ri-pect to
charges actually collected, is out of line with good administration in
allowing charges to be determined by an agency not sprwifi,;illy re-


sponsible for such function, and is inequitable in its application to
the ships using the Canal. Under it some ships pay the same amount
for transit when heavily laden as when in ballast, with neither pas-
sengers nor cargo. On ships of approximately equal earning ca-
pacity, as measured by interior spaces which may be devoted to the
carrying of cargo and passengers, one may pay tolls which are pro-
portionately 50 perient higher than charges on the other. The
charges on vessels in ballast are disproportionately high; they must
now pay 72 cents per net ton, Canal measurement, unless such amount
would be greater than $1.25 times the net tonnage as measured under
United States rules, and as a class they pay about 83 percent as much
as they would for transit fully laden, although the intent of Con-
gress in the original tolls legislation was that vessels in ball t should
pay no more than 60 percent of the rate for hnden vesels.
The inequity and even the absurdities-of the present. system have
been clearly recognized and generally admitted. The opposition to
adoption of the scientific- Canal basis rests wholly on the question
of increaise-i costs. As stated, the administration is endeavoring to
reach an aecuptable adjustment in this matter. In the meantime, it
is urgently recommended that the remedial ltgi-ilation be passedl so
that it will be possible to put into effect an equitable and reliable
method of levying tolls. The Panama Canal rules of nmeasurement,
having been devised after extensive study to determine the earning:
capacity precisely and fairly for the various types of ships, provide
such a reliable and eqliditable method, subject to some amendment in
line with ship development. These rules are essentially like the
Suez Canal rules and their fitness for the purpose for which devised
has never been questioned.
Genesis of rul s.-The authority for levying tolls is found in the
Panama Canal Act of August 24, 1912, as amended. It contains
general provisions for the levying of tolls and authorizes the Presi-
dent to establish rules for measurement of vessels and rates of tolls
within the limitations set by the act. The act provided that "Tolls
may be ba-ed upon gross or net registered tonnage, displacement ton-
nage, or otherwise"; "may be lower upon vessels in ballast, than
upon vessels carrying passengers or cargo"; "when based upon net
registered tonnage for ships of coiinnerce 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 be based upon net registered ton-
nnge they shall not exceed the equivalent of $1.25 per net registered
ton as nearly as the same may be determined, nor be less than the
equivalent of 75 cents per net registered ton."
Puirtniint. to the authority vc!-ted in him by C ingress, the President
i.- a prolimination under date of November 13, 1912, which
established rates on commercial ships as follows:


1. On merchant vessels carryiii- 1pi -.Cii-.&r> or cjrgo. $1.2l0 ir net vessel-
ton-each luo cubic feet-of actual eaniiiiing Cii.io it..
2. On vessels in ballast without ii.-i-r. or ,;i r.L 40 percent less than the
rate uf tolls f'r vessels with p. L.- ii-i- Or or Ir'r.
The determination of the net vessel-ton or "net tonnage" on
which the charges as above were to be levied was established by the
Panama Canal rules of inra uiement, promiuilgated by a proclallmationll
of the Pre ident, dated Novemiiibr 21, 1913, as put into effect imme-
diately upon the opening of the Canal to commercial traffic.
Sub equently, upon a protest of certain shipowners regarding
charges on deck cargo, the question of the interpretation of the act
of CongU.re.s regarding tolls charges was referred to the Attorney
Generil for decision. He decided that the term net registered ton-
nage as used in the act must be interpreted to mean the net ton-
iage of a vk--el as measured undei the rules pres-cribed by the
statutes of the United States.
Ina-mcli a.- the ;i: provided that the tolls charges should not
exceed $1.25 per net registered ton nor be 1i-- than 75 cents per net
registered ton, the Presidinl. orderil.. in vi'w of the decision by
the Attorney General, that rules and i relations be issued with
rev-pect to the tolls so that no tolls shall be demanded or collected
upon any vessel of coiinnic-ti which shall aggre ate more thanii $1.25
upon thw net rcgi-tered tomiiiL '- as iinvreaiini under the statutes of
the United States ", and so drawn as to produce a similar result
with rir-pi.-et to the minimum that may be charged." It was antici-
pated by all c0iicerned that the Coiigre-s would pai-s remedial legis-
lation dealiiing with the subject more completely and sali- factorily,
"but ", to quote from the letter of the Pre-ideint, until that course
is taken, the way hereimi -S1m'Lge-ted emin. to me to be the best one to
meet the existing situation."
Result of rules.-Net toinnuage as measured for national registry is
universally lower than the toinnage as measured in units of 100 cubic
feet of actual earning capacity (which is the Canal basis), and it is
the practit e of nations to keep regi tercd tonnage of their ships down
so as to reduce the light dues and port. charges basedil on it. This
practice is generally rec gniized 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 fiLrure 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 considei-ration of the- depressed tonnage. But
when it conimes to a matter of a charge of $1, more or les--. per ton
for a service such as transit through a canal which saves the ship
thousands of miles, the net tonnage becomnw, of vital conierm.


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 objection-
able 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 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 used for earning revenue,
except deck space, national registry mneasuirement aims often at ex-
cluding such spaces from net tonnage. The one system is directed
toward justice, the other frequently toward privilege.
On ships transiting the Canal in ballast, the rate of 72 cents times
the Panama Canal net prevails, except that the amount so derived
may not exceed $1.25 times the United States net. Due to these con-
flicting 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 ballast. Ballast ships as a class pay consider-
able more than the amount which is "40 percent less" than the
charge for like ships when laden.
The heavier charges on ballast ships caused by the existing rules
are one element in the interference with levying equitable charges.
Ass-uming 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 compared with laden vessels.
Difficulties and inequities occur also in levying tolls on laden ships
under the dual system, duie 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 open-
ings, scuppers, freeing ports, bulkheads, etc., in which some change
of ruling in connection with United States measurement may arbi-
trarily effectt the inclusion or exemption of spaces, without relation
to the ictual value and use of such spaces for carrying cargo. The
technical details have been explained in separate reports; the essen-
tial 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 advantages gained by one group are reflected as dis-
advantages to their competitors. As applied to traffic as a whule,
the factor of the United States rules results in reducing Canal tolls.
Reduction of rt'< a w- .-The reduction of revenues fromi 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 ton-
nage is reduced, the tolls collectible, limited to $1.25 per net ton, so
determined, are reduced correspondingly. In the fiscal year 1917,
the first for which record has been kept of the aggregate United
States equivalent int toinnaiige of vessels transiting the Canal, such
tonnage for the 1,803 coninercial transits totaled 4,702,063 tons.
The net tonnage for the same vessels as measured under the Panama
Canal rules totaled 5,70'S,557 tons. The United States equiNvalent
net tonnage was accordingly 81.09 percent of the Panania Canal
measurement. In such proposition, if we assume a vessel of 10,000
net tons, Canal measurement, the United States registry net wuuild
be 8,109 tons; or, to draw 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 $5,068.75. The tolls were,
therefore, reduced by $931.-5 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 maximum rate of $1 per Canal net ton be established
for laden ships. 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 Conmmissioner of Navigation, and by changes in ships'
structures to take advantage of the rulings, but the Panama Cani1
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 Panam; Caiinal


net tonnage of transiting vessels in the fiscal years from 1917 to
1934, inclusive, is as follows:

Fiscal year Percentage Fiscal year Percentage

1917 ......----------------------------- ---- 81.09 1926-----.. -----..---..-------------------- 78.52
1918------------------------------ --- 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 1934--------------------------------- 71.21

Reverting to the 5,000-ton ship, measured under the Panama Canal
rules, which are constant, in 1934 its net tonnage as measured under
the United States registry rules would be only 3,561 tons, or 71.21
percent as great as its Canal net. Tolls, instead of being $6,000, as
originally intended, or $5,000 on the proposed maximum basis of $1
per Canal net ton, or $5.068.75 on the basis of the United States
r $4,451.25. In other words, on this hypothetical reprieseiintaitive ship
the actual tolls charges under the dual system decreased by $617.50
between 1917 and 1934, or 12.18 percent, due simply to changes and
adjuti.-ntsvik 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 law.
The revenues of the Canal are at the mercy of the officials who estab-
lish and interpret the rules for measurement for registry in the
United States.
The peculiar effects of the United States registry rules of iiieaure-
ment on the net tonnage of vessels, hence on Panama Canal tolls, are
illii.trated by the case of the passenger liner Emprxs. of Britabn, a
large steamer which has made several cruises around the world, pass-
ing through the Suez and Panama Canals. Her net tonnage as
measured under the Suez rules is 26,531 tons and for transit through
the Siuez Canal at present rates she would pay $29,443, plus any
charge for individual pa .engers. (Suez tolls are paid in gold and
the figure is for normal exchange; with depreciated currency to buy
gold francs the amount is higher.) The net tonnage of this vessel
under Panama Canal rules is 27.503 tons. Her net tonnage under
British registry rules is 22,545 tons. Under United States registry
rules in effect at the time of the latest transit of the Einpre sx. of
Britain through the Panama Canl 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 thle net toniiiiaige at more than 7,000 tons

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