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














Title: Annual report of the Governor of the Panama Canal for the fiscal year ended ..
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Permanent Link: http://ufdc.ufl.edu/UF00097365/00020
 Material Information
Title: Annual report of the Governor of the Panama Canal for the fiscal year ended ..
Alternate Title: Report of Governor of the Panama Canal
Physical Description: 36 v. : ill. ; 23 cm.
Language: English
Creator: Canal Zone -- Office of the Governor
Publisher: U.S. G.P.O.
Place of Publication: Washington
Washington
Publication Date: 1935
Frequency: annual
regular
 Subjects
Subject: Politics and government -- Periodicals -- Canal Zone   ( lcsh )
Genre: federal government publication   ( marcgt )
Spatial Coverage: Panama
 Notes
Dates or Sequential Designation: June 30, 1915-June 30, 1951.
Numbering Peculiarities: Report year ends June 30.
General Note: Some vols. issued in the congressional series as House document.
General Note: Reports for 1914/15-1915/16 each accompanied by portfolio of maps and diagrams.
 Record Information
Bibliographic ID: UF00097365
Volume ID: VID00020
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 ix
        Page x
    Preface
        Page 1
    Summary
        Page 2
        Page 3
        Page 4
        Page 5
    Section I: Canal operation and trade via Panama Canal
        Page 6
        Page 7
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    Section II: Business operations
        Page 55
        Page 56
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        Page 58
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        Page 80
        Page 81
    Section III: Administration
        Page 82
        Page 82a
        Page 83
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    Section IV: Government
        Page 115
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    Section V: Financial and statistical statements
        Page 134
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    Back Cover
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Full Text












UNIVERSITY
OF FLORIDA
LIBRARY










ANNUAL REPORT
OF THE


GOVERNOR OF


THE PANAMA CANAL

FOR THE

FISCAL YEAR
ENDED JUNE 30


1935


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1935


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


\ *




























































in 2010 with funding from
University of Florida, George A. Smathers Libraries with support from Lyrasis and the Sloan Foundation
"- ,.* *

















* .' e^ : *
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http://www.archive.org/details/annualreportofgo1935cana













TABLE OF CONTENTS

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

SECTION 1.-CANAL OPERATION AND TRADE VIA PANAMA CANAL

Traffic in 1935------------------------------------------------- 6
Traffic, by months-------------------------------------------- 8
Tanker traffic--------------------------------------------- 9
Number and daily average transits of tankers and general carriers.- 9
Proportion of tanker and general net tonnage -------------_ -----10
Proportion of tolls from tank ships and from all other vessels --- 10
Nationality of vessels--- -------------------------- ---..- 10
Ocean-going traffic, by nationality of vessels----------------- 10
Tons of cargo carried---------------------------_ ------_- 11
Foreign naval vessels----------------------------------------.. 12
Vessels entitled to free transit-------------------------------- 12
Local traffic------------------------------------------------ 12
Trade routes and cargo------------------------------------- 13
Origin and destination of cargo-------------------------------- 14
By countries in principal trade areas, Atlantic to Pacific------- 15
By countries in principal trade areas, Pacific to Atlantic------- 17
Principal commodities------------------------------_-------- 19
Atlantic to Pacific--------------------------------------- 19
Pacific to Atlantic--------------------------------------- 20
Classification of vessels------------------------------------- 20
Laden and ballast traffic--------------------------------_ --. 20
By nationality-------------------------------------- 24
Average tonnage, tolls, and tons of cargo per vessel---------------- 24
Steam, motor, and other vessels---------------------------------__ 25
SSummary of passenger movement at Canal during 1935----------- 25
Transient passengers------------------------------------- 26
Frequency of transits of vessels---------------------------------. 27
Net tonnage of vessels---------------------------------------___ 29
Number of transits in net tonnage groups-------------------- 30
Dual measurement system, effect on toll collections ------------------- 31
Hours of operation---------------------------------------------_ 35
Lockages and lock maintenance----------------------------------- 35
Atlantic locks--------------------------- -------------------.__ 36
Pacific locks----------------------------------------------- ---- 36
Atlantic locks overhaul-------------------------------------- 37
m







IV CONTENTS

Page
Power for canal operation--------------------- --------------------- 37
Water supply ------------------------------------------------__ ----- 39
Dry season,1935---------------------------------------------- 39
Flood warnings----------------------------------------------- 40
Madden Dam project---------------------------------------------- 40
Force employed----------------------------------------------- 41
Power plant--------------------------------------__----------- 41
River control and Madden Lake-------------------------------- 41
Cavitation in sluiceways--------------------------------------- 42
Mechanical and electrical work---------------------------------_ 42
Saddle dams and roads ----------------------------------------_ 43
Ridge tightening--------------------------------------- __ ------- 43
Earnings, deductions, and payments----------------------------- 44
Maintenance of channel and improvement projects-------------------- 44
Improvement project no. 1------------------------------------- 45
Improvement project no. 3------------------------------------- 45
Improvement project no. 5 (revised)----------------------------- 45
Improvement project no. 6-------------------------------___------ 45
Improvement project no. 9-------------------------------------_ 46
Improvement project no. 11------------------------------------ 46
Improvement project no. 13------------------------------------ 46
Gaillard Cut----------------------------- ..--------------.------- 46
Atlantic entrance, Cristobal Harbor and Gatun Lake-------------- 46
Pacific entrance, Balboa Harbor and Miraflores Lake-------------- 47
Slides------------------------------------------------------------ 47
Lirio slide (east)---------------------------------------------- 47
Lirio slide (west)--------------------------------------------- 47
Barge repair slide (east)---------------------------------------- 47
Culebra slide extension (east) ----------------------------------- 47
Culebra slide (west)------------------------------------------- 47
Cuilebra slide (east) -------------------------------------------- 47
Auxiliary dredging---- ___-----------------..----------------- ---------- 48
Fill for Fleet Air Base, Coco Solo------------------------------- 48
Cristobal drydock slip----------------------------------------- 48
Subsidiary dredging division activit'es------------------------------- 48
Equipment------------------------------------------------------- 49
Gamboa dredging station and townsite------------------------------- 49
Ferry service --------------------------------------------------- --- 50
Aids to navigation _------------------------------------------------ 50
Acc dents to shipping----------------------------------------------- 51
Meteorology, hydrology, seismology--------------------------------- 52
Precipitation ------------------------------------------------- 52
Air temperatures ---------------------------------------------- 52
Winds and humidity------------------------------------------ 52
Tides-------------------------------------------------------- 53
Seismology--------------------------------------------------- 53
Fog conditions------------------------------------------------ 53
Transit of the United States Fleet--------------------------------- -54
Rules and regulations---------------------------------------------- 54





CONTENTS V

SECTION II-BUSINESS OPERATIONS
Page
Panama Canal business operations --------------------------------- 55
MAechanical division----------------------------------------- 56
Marine work--------------------------------------------- 56
Repairs to commercial vessels------------------------------- 56
Repairs to naval vessels ---------------------------------- 58
Repairs to Army vessels ---------------------------------- 58
Repairs to other Government vessels -- ---------------------- 58
Repairs to foreign government vessels _------------------- 58
Marine work for Canal divisions---------------------------- 59
Other work----------------------------------------------- 59
Plant improvements-- ----------------------------------- 60
Trend of work-------------------------------------------- 60
Financial------------------------------------------------- 61
Electrical installation and repair work--------------------------- 62
Purchases and inspections in the United States ------------------- 63
Change in quarters-------------------------------------------- 65
Ship chandlery and other storehouse supplies- -------------------- 65
Obsolete and unserviceable property and equipment- -------------- 66
Fuel oil, Diesel oil, gasoline, and kerosene------------------------ 66
Fuel and Diesel oil---------------------------------------- 66
Gasoline and kerosene-- ---------------------------------- 66
Storage facilities------------------------------------------ 66
Building construction and maintenance -------------------------- 67
Termites------------------------------------------------ 67
Quarters for employees--------------------------------------- 67
Gold employees ----------------------------------- 67
Silver employees------ ---------------------------------- 68
Replacement of quarters for American employees----------------- 68
Contract construction -__------------------__--------------------- 71
Conversion of restaurant buildings------------------------------ 72
Motor and animal transportation ------------------------------- 72
Panama Canal press------------------------------------------- 72
Revenues derived from the rental of lands in the Canal Zone------- 73
Experimental gardens---------------------------------------- 73
Clubhouse restaurants --------------------------------------- 74
Business operations under the Panama Railroad Co------------------- 74
Telephones and telegraphs------------------------------------. 75
Receiving and forwarding agency------------------------------- 75
Harbor terminals---------------------------------------- 75
Canal Zone for orders ------------------------------------75
Commissary division-------------------------------- ---------- 76
Sales ----------------------------------------.---------.. 76
Purchases ----------------------------------------------- 77
Cold storage plant and abattoir--- ------------------------- 77
Manufacturing plants------------------------------------ ... ..77
Hotels--------------------------------------------------- 78
Cattle and beef -------------------------------------------- 78
Native beef --------------------------------------- ---- 78
Chilled beef ------------------.. --------------------------79







VI CONTENTS

Business operations under the Panama Railroad Co.-Continued. Page
Mind dairy----------------------------------------------- 79
Panama Railroad lands and leases------------------------------79
Coal ---------------- ------------------------------------ 80
Panama Railroad ------------------------------------ ------80
Panama Railroad steamship line ------------------------------- 81

SECTION III-ADMINISTRATION
Departments-------------------------------------------- ----- 82
Operation and maintenance------------------------------------ 82
Supply-------------------------------------------------- 82
Accounting-_----------------------------------------------- 82
Executive---------------------------------------- --------- 83
Health------- ------------------------ ------------- ------ 83
Panama Railroad Co---------------------------------------- 83
Changes in personnel and organization------------------------------ 83
Division of personnel administration ---------------------------- 83
Plans section--------------------------------------------__-__- 84
Counsel-------------------------------------------------- 84
Madden Dam division abolished------------------------------- 85
Appointments ------------------------------------------------ 85
Change of title--------------------------------------------- 85
Force employed----------------------------------------------- 85
Gold employees --------- ------------------------------------- 86
Recruiting and turnover of force---------------------------- 87
Silver employees-------------------- -------------------------- 88
Wage adjustments --------------------------- ------------------ 89
Gold employees ----------------------------------------------- 89
Silver employees---------------------------------------------- 90
Superannuated native employees----------------------------------- 92
Learnership committee- ----------- __--------------------------- ---- 93
Public amusement and recreation--------------------------------- 94
Administrative problems --------------------------------------- 95
Legislative recommendations-------------------------------------- 95
Superannuation disability pay for native employees --------------- 95
Measurement of vessels for Canal tolls--------------------------- 95
Amendments to Canal Zone code_---------------------------- --- 96
Miscellaneous legislation----------------- --------------------- 96
Discussion of proposed legislation ----- ---------------------------- 97
Superannuation disability pay for native employees --------------- 97
Repatriation of unemployed aliens ----------------------------- 98
Tolls-dual measurement system------------------------------ 99
Genesis of rules--------------------- ----- ---------------- 101
Result of rules ------.--. ---------------------------- 102
Reduction of revenues ------------------- --------------- 103
Remedy -----.---------------_------------------------- 105
Equity of proposed tolls---------------------------------- 106
Public Works allotment, 1935--------------- ----------------- 108
Capital allotments, 1936------------------------------------------ 108
Explanation of capital allotments, 1936 --------.-------------------- 109
Dredging division station, Gamboa------------------------ ----109
Quarters for American employees-------- -------------------- --109
Dock 15, Balboa (completion)_--------------------------------- 109
Gaillard Highway through Corozal --------------------------- --110





CONTENTS VII

Explanation of capital allotments, 1936-Continued. Page
Gaillard Highway, Paraiso to Summit-------------------------- 110
Fort Randolph Road, reconstruction---------------------------- 110
Bolivar Highway, repair------- .------------------------.------.. 110
Clubhouses, Ancon and Cristobal------------------------------- 110
Grading for building sites, etc., Gatun--_------------------------ 110
Conversion of Balboa restaurant------------------------------- 110
Quarters for locks military guards ----------------------------- 110
Ward building, Palo Seco leper colony--------------------------- 111
Storage buiJding for overhaul equipment, Pacific locks ------------- 111
Metal block assemblies, Balboa drydock----------------------.- 111
Extension of sewer, Amador Road------------------------------ 111
Drydock crane----------------------------------------------- 111
Towing locomotive---- .-------------------------------------- 111
Fences, mechanical division------------------------------------ 111
Electrical lighting, Cristobal shops-----------------------------. 11l
Customs fence, Balboa---------------------------------------- 111
General program------------------------------------------------..111
Additional needs--------.--------------------------....----------- 112
Unemployment--------------------------------------- ----------112
Capacity of the Canal--------------------------------------------- 113
Visits of President Roosevelt and Secretary of War-------------------- 114

SECTION IV-GOVERNMENT

Area of the Canal Zone----------------------.--------------------- 115
Population- .-- _-----------------------.---------.--------------- 115
Public health-------.---------------------------------..---------- 116
Vital statistics----------------------------------------------- 116
General death rate-------------------------------------.....---- 116
Birth rates, including stillborn--------------------...---------... 117
Death rates among children under 1 year of age--------------- 117
Principal causes of death ------------------------_--------- 117
Number of deaths and annual rate per 1,000 population, 1934... --- 117
Malaria-------------------------------------------.....--.-------...... 118
Hospitals and dispensaries---------------------------------_--. 118
Smallpox vaccination-------------------------_-------------- 118
Physical examination for school children ------------------------- 118
Quarantine and immigration service---------------.------------- 119
Municipal engineering------------------------------------------........ 119
Water supply---------------------------------------....---------_.__ 120
Sewer systems---------------------------------------------.. 121
Roads, streets, and sidewalks, Canal Zone----------------------- 121
Reconstruction of Randolph Road-------------------------- 121
Relocation and construction of Gaillard Highway ------------- 121
Construction of Corozal cut-off road------------------------- 121
Gatun project-------------------.--------------------------. 122
Gamboa project -------------------------------------------.. 122
Madden Dam------------------------------------------...--------- 122
Cities of Panama and Colon- ---------------------------------. 122
Water purification plants and testing laboratory ------------------ 123
Public order--------------------------------------------------.... 123
Fire protection- --------------------------------------.. ---------- 125






VIII CONTENTS

Page
Magistrates' courts----------------------------------------------- 125
Balboa------------------------------------------------- 125
Cristobal-------------------------------------------------- 125
Pardons and reprieves ------------------------------------------ 126
Public-school system---------------------------------------------- 126
Postal system---------------------------------------------------- 127
Airmail ------------------------------------------------- 128
Post-office buildings------------------------------------------- 128
Customs --------------------------------------------------------- 130
Shipping commissioner-------------------------------------------- 130
Administration of estates----------------------------------------- 131
Licenses and taxes------------------------------------------------ 131
Foreign corporations----------------------------------------------- 131
Insurance---------------------------------------------------- 132
Immigration visas------------------------------------------------ 132
Relations with Panama-------------------------------------------- 132
Commercial aviation--------------------------------------------- 132
Codification of the Canal Zone laws--------------------------------- 133

SECTION V-FINANCIAL AND STATISTICAL STATEMENTS

Accounting system ------------------------------------------------ 134
Operations with Panama Railroad Co.'s funds------------------------ 134
Panama Canal operations------------------------------------------ 135
List of tables:
General balance sheet --------------------------------------- 135
Assets (tables 1 to 13, inclusive)---------------------------- 135
Liabilities (tables 14 to 23, inclusive) ------------------------ 136
Operations for profit and loss (tables 24, 25, and 26)----------- 136
Miscellaneous (table 27)----------------------------------- 136
Addenda not published (tables 28 to 58, inclusive) -------------------- 136













REPORTS OF HEADS OF DEPARTMENTS AND DIVISIONS
APPENDIXES NOT PRINTED
The material in the annual report of the Governor of the Panama Canal,
published in this volume, is to a large extent a summary of the data presented in
the annual reports from the heads of departments and divisions in the Canal
organization; the latter, regarded as appendixes to the report of the Governor,
are not printed. The annual reports of the Panama Railroad Co. and the health
department are published separately; the latter is compiled for calendar years
only. The reports of the heads of departments and divisions, as listed below, may
be seen at the Washington Office of the Panama Canal or at the office of the
Governor at Balboa Heights, Canal Zone:
Engineer of maintenance, report of-
Dredging division, report of superintendent.
Plans section, report of chief.
Assistant engineer of maintenance, report of-
Madden Dam division, report of construction engineer.
Electrical division, report of electrical engineer.
Municipal engineering division, report of municipal engineer.
Division of lock operation, report of superintendent.
Office engineer, report of.
Section of surveys, report of chief.
Marine division, report of marine superintendent.
Mechanical division, report of superintendent.
Supply department, report of chief quartermaster.
Accounting department, report of comptroller.
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.
Land agent, the Panama Canal and Panama Railroad Co., report of.
Purchasing department, report of general purchasing officer and chief of
Washington office.
Pardon board, report of chairman.
Senior aeronautical inspector, report of.











ANNUAL REPORT


OF THE

GOVERNOR OF THE PANAMA CANAL


BALBOA HEIGHTS, CANAL ZONE,
September 27, 1935.
The SECRETARY OF WAR,
Washington, D. C.
SIR: I have the honor to submit the report of the Governor of the
Panama Canal for the fiscal year ended June 30, 1935.
Particular attention is invited to the statements in sections I and
III of the report wherein is set forth in some detail the need for
legislation for removing the existing inequalities in the treatment of
shipping now passing through the Panama Canal and to prevent
further reduction in tolls charges by means of making structural
alterations in vessels that reduce net tonnages but have practically
no effect on their cargo-carrying capacity. Ships now pay widely
divergent amounts per ton of actual earning capacity because under
the dual measurement system now in use the tolls are limited by a
measurement of net tonnage which is not related closely to their
earning capacity. The divergence between actual earning capacity
and the limiting factor which governs the maximum collection of tolls
grows greater year by year, and correspondingly the revenues of the
Government are being unwarrantably and unnecessarily depleted
through our inability, under the present law, to collect tolls on an
equitable and uniform basis.
There is also a need, which grows more pressing year by year, for
legislation which will enable the Canal Administration to make small
cash payments ranging from $10 to $25 per month to superannuated
native workers who have faithfully served the Canal over a consider-
able number of years. Each year increasing numbers of these
workers are becoming unfit for further active service and while efforts
are made to transfer them to light duties or to provide institutional
care at the Corozal Farm, it would be more economical to grant them
a small monthly annuity and permit them to live in their native
environment and to be cared for by members of their own race. The
necessity for this legislation is discussed at greater length in section
III of the report.






REPORT OF GOVERNOR OF THE PANAMA CANAL


The need for the legislation outlined above is urgent, and its
enactment is earnestly recommended.
Details of the more important features pertaining to Canal opera-
tion and maintenance are given in the accompanying report.
Respectfully,
J. L. SCHLEY, Governor.

SUMMARY
Administration of the Panama Canal involves three main ele-
ments-(a) The operation and maintenance of the Canal proper,
'which primarily involves the nmintenance of the waterway, the opera-
tion of the locks, and the control of traffic; (b) the operation of
auxiliary business enterprises necessary for shipping and the Canal
force, such as coal and fuel oil plants, storehouses for foodstuffs,
ships' chandlery, and other essential supplies, marine and railway
repair shops, 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; and (c) the
administration of the government of the Canal Zone, populated by
8,439 American civilians, 21,197 native or tropical workers and their
families, and by the United States Army and Navy defense forces,
in which administration are embraced education, sanitation, hospital
service, police and fire protection, customs, quarantine, immigration
services, post offices, etc.
The immediate administration of these various activities rests
with the heads of nine major departments and divisions reporting
to the Governor, in whom is centered responsibility and control for
the entire organization.

OPERATION AND MAINTENANCE OF THE CANAL

The primary function of the Panama Canal is to provide and main-
tain a waterway by means of which vessels may make the transit from
one ocean to the other, and to handle such traffic as presents itself
for transit with a maximum of safety and a minimum of delay.
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 year.






REPORT OF GOVERNOR OF THE PANAMA CANAL


BUSINESS OPERATIONS

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 and passengers, storehouses for the
purchase of ships' chandlery, commissaries for the replenishment of
food supplies, and similar essential services. These services, under
coordinated and centralized control, are provided by the various
business units of the Panama Canal and Panama Railroad Co.
The coordination of such services with the transit of ships through
the Canal assists materially in the efficient and economical operation
of the waterway. Moreover, in providing marine repair facilities,
fuel, and other supplies at reasonable cost, the operation of these
business units promotes traffic through the Canal.

ADMINISTRATION-GOVERNMENT
The usual functions of government, such as schools, police and fire
protection, quarantine, public health, immigration service, posts,
customs, aids to navigation, steamboat inspection, hydrographic and
meteorological work, water supply, sewers, construction and main-
tenance of streets, and similar activities which, in the United States,
are directed by various officers of the national, State, and municipal
governments, are entrusted in the Canal Zone to the Governor, and
are executed under his authority and responsibility. This centraliza-
tion of all governmental activities under one head is essential to
economical and efficient administra t ion.

SERVICES RENDERED BY THE CANAL TO SHIPPING
The most important items of the business of the Canal and its
adjuncts covering principal services to shipping are expressed
numerically in the following table, which presents a comparison of the
activities during the fiscal year 1935 with the 2 years immediately
preceding:

Fiscal year Fiscal year Fiscal year
1933 1934 1935

Transits of Canal by ocean-going ships paying tolls..- 4,162 5,234 5, 180
Free transirs of ocean vessels----------------------- ----.. 445 503 552
Total transits of ocean vessels--------------- -... 4,607 5,737 5,732


Transits of local commercial rifr fic, not counted in
ocean-going traffic---------------------------------...
Number of lockages during year:
Gatun Locks-----------------------------.......
Pedro M iguel Lucks.............................
MiraOnres Locks............. ...........
Tolls levied on ocean vessels............ ..............
Tollsonlocalcommercial vessels i.no included in abovej.
Total tolls--------------------------...............................


437 474 634
4.1sn 5, 365 5,316
4,.5 5,507 5,490
4, i."*. 5,483 5,481
$19,601,077. 17 $24,047,183.44 S23, 307. 062.93
$20,133.59 $l 519.58 $32.175.12
$19,621,210.76 $24,065,703.02 $23.339,238.05







REPORT OF GOVERNOR OF THE PANAMA CANAL


Fiscal year Fiscal year Fiscal year
1933 1934 1935

Carco pisinc ihbroueb Canal (tons)-------------------- 18,161,165 24,704,009 25,309,527
Net tonnage Panunia Canal measurement) of transiting
vessels------------------------------------------ 22,803,798 28,550,953 27,805,588
Cargo per Panama Canal net ton of ocean vessels, includ-
ing those in ballast----------------------------------- .7964 .8653 .9102
Average tolls per ton of cargo, including tolls on vessels
in ballast----------------------------------------- $1.0793 $0.9734 $0.9209
Average tolls per Panama Canal net ton of vessel meas-
urement, including vessels in ballast----------------- $0.8596 $0.8423 $0.8382
Calls at Canal ports by ships not transiting Canal---- 854 989 925
Cargo handled and transferred at ports (tons)---------- 1,026,128 1,157,649 1,289,898
Coal, sales and issues (tons)---------------- ------------ 39,327 52,657 43,696
Coal, number of commercial ships bunkered----------- 197 196 198
Fuel oil pumped (barrels)------------------ ---------- 6,022,663 9,710,247 9,713,542
Fuel oil-number of ships served other than vessels
operated by the Panama Canal---------------------- 1,188 1,724 1,703
Ships repaired, other than Panama Canal equipment- 501 513 522
Ships drydocked, other than Panama Canal equipment- 89 49 97
Provisions sold to commercial ships (commissary sales) $294,416.69 $330,570.82 $348,697.46
Chandlery sold to ships (storehouse sales)-------------- $26,386.27 $28,165.99 $48,730.33

NOTE.-The statistics for commercial traffic for 1933 and 1934 in the above table (including transits,
tonnage, tolls, etc.) differ somewhat from those appearing in last year's report due to the elimination from
the ocean-going traffic, and adding to the local commercial traffic, of all ships under 300 tons.
REVENUES AND EXPENSES

The net revenues from Canal operations proper were $14,519,506.01,
as compared with $16,810,348.06 last year. Net revenues from
business operations under the Panama Canal for 1935 were $1,021,-
216.61, as compared with $1,366,755.12 in 1934. The combined
net revenues accruing from the Canal and its business units totaled
$15,540,722.62 as compared with $18,177,103.18 in 1934. The capital
investment at the beginning of the fiscal year was $543,744,707.09,
and the net revenue represented a return of 2.86 percent on the
investmenIt, as compared with 3.37 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
$899,195.79, as compared with $1,156,738.14 for the preceding
year, a decrease of $257,542.35.

EARNINGS AND REPLACEMENTS

With respect to the operations of the Panama Canal, it will be
noted that the net revenues from both Canal and business operations
were somewhat lower than in the previous year. During the fiscal
year 1935 the restoration of the reductions in salary and wage scales
enforced under the economy acts adversely affected the net revenues
of both Canal and business operations; the former were further
adversely affected by the expenses incidental to the quadrennial
overhaul of the Atlantic Locks, and by increased dredging activities
in connection with channel-maintenance work which could not longer
be deferred. As was pointed out in my report last year, an abnormal
condition existed in 1934 in that, notwithstanding a substantial
increase in tolls for that year in comparison with 1933, there was an
actual decrease in operating costs which, under normal conditions,





REPORT OF GOVERNOR OF THE PANAMA CANAL


should have increased. Except for 1934, the net earnings have
fallen short each year since 1930 of returning 3 percent on the capital
investment, which is regarded as the minimum of fair return.
The past fiscal year marked the close of 21 years of successful
operation of the Panama Canal; in fact, its. dependable and efficient
service in shortening the routes of the world's commerce is now taken
for granted.
One of the elements which has 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 value of the Panama Canal
there are approximately $150,000,000 of general structural values sub-
ject to deterioration and requiring regular repair and periodical re-
placement, but without reserve funds from operating revenues by
which to defray the costs thereof. These have been in service for
21 years.
Some of these structures, such as dams, breakwaters, and concrete
buildings, are still in excellent condition and require but little expendi-
ture for upkeep; but on others deterioration has reached a point
where replacement should not longer be deferred. These necessary
replacements include not only the frame buildings originally erected
to serve during the period of the construction of the Canal but also
docks, highways, etc., which, due to ordinary deterioration and to
earth slides and other unforeseen conditions, have been rendered
inadequate or unserviceable for present requirements 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
reexpenditures by the Governor, all necessary replacements can be
financed from this source. This is far from true as such 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 primary function 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 appropriation by the
Congress.
Not only is there demand for extending and enlarging some of the
structures but also the need develops for new kinds of facilities. Funds
for such structures must also be obtained by direct appropriation.
For these reasons, it is essential to the continued efficiency of the
Canal and to the growth of its facilities to meet the growing demands
that the Bureau of the Budget and the Congress give careful considera-
tion to the requirements submitted annually by the Governor for
these purposes.









SECTION I


CANAL OPERATION AND TRADE VIA PANAMA CANAL
TRAFFIC IN 1935
Transits of ocean-going commercial vessels1 in 1935 numbered 5,180
as compared with 5,234 transits in the previous year, a decline of 54,
or 1.1 percent. For the year, transits through the Canal averaged
14.19 per day as compared with 14.34 in 1934, 11.40 in 1933, 11.92
in 1932, 14.71 in 1931, 16.51 in 1930, and 17.23 in 1929, when traffic
through the Canal attained its peak. In comparison with the
previous year, there also was a decline of 2.6 percent in Panama Canal
net tonnage and 3.1 percent in tolls. On the other hand, the volume
of cargo carried through the Canal was higher, showing an increase
of 2.5 percent as compared with the preceding year.
The method of classifying ships passing through the Canal was
changed during the year, and all previous traffic summaries have been
revised to show statistics on the basis of the revised classification.
Traffic is now segregated into three classes, namely, (1) ocean-going
commercial traffic, which includes all tolls-paying vessels of 300 or
more net tons, Panama Canal measurement, or 500 or more tons,
displacement measurement; (2) local commercial traffic, which
includes all tolls-paying vessels of less than 300 net tons, Panama
Canal measurement, and also all tolls-paying naval vessels under
500 tons displacement measurement; and (3) vessels transiting the
Canal free of tolls. The last named classification includes all naval
and other vessels owned and operated in the Government service of
the United States and Pnnamn, war vessels of Colombia, and vessels
transiting the Canal solely for repairs at the Balboa shops.
Previously, the tolls-paying vessels were classified by commercial
ships of 20 net tons or over, and launches under 20 net tons. The
new classification was devised with a view to giving better compara-
tive statistics covering the transit of normal-sized commercial vessels,
primarily with a view to preventing these statistics from being
distorted by frequent transits of small toll-paying vessels engaged in
local trade between the two coasts of Central America.
The history of Canal traffic has reflected five distinct trends in the
world's economic and commercial developments. After the opening
of the Canmil on August 15, 1914, there was a slow growth through 8
years, in which the maximum of transits was 2,791 in 1921. The rise
in Californian oil production was primarily responsible for raising the
transits to 3,908 in 1923 and 5,158 in 1924. Traffic continued at
1 Includes all toll-paying vessels having a measurement of 300 or more net tons or 600 or more displacement
tons.






REPORT OF GOVERNOR OF THE PANAMA CANAL


about this level until the business expansion brought a considerably
increased volume toward the end of the last decade when Canal
traffic reached peaks of 6,289 in transits, $27,111,125.47 in tolls,
30,647,768 in cargo tonnage, and 29,963,670 in net tonnage, Panama
Canal measurement. From these peaks the world-wide depression
resulted in a sharp curtailment of traffic, the low point being reached
in 1933 when transits dropped to 4,162, tolls to $19,601,077.17, cargo
tonnage to 18,161,165, and net tonnage, Panama Canal measurement,
to 22,803,798. Beginning in August 1932, a gradual increase in Canal
traffic began, coincident with the general improvement in economic
conditions, and total traffic for the fiscal year 1933 nearly equaled
that of the previous year.
During the fiscal year 1934 the improvement continued uninter-
ruptedly until March when four successive declines occurred at the
close of the fiscal year. In June 1934 the decline was particularly
marked, due principally to strikes on the west coast of the United
States which tied up shipping. Beginning in July 1934, and contin-
uing until November, each month's traffic through the Canal again
showed an increase over the preceding month. Thereafter, traffic
declined steadily until the end of the fiscal year. A marked decrease
in shipments of mineral oils from California was partly responsible
for this decline. In June 1935 traffic through the Canal reached its
lowest point since August 1934; the decrease being attributed in
part to seasonal factors and in part to labor troubles on the west
coast of the United States.
In the fiscal year 1935 the transits of naval and othlier public vessels
of the United States Government, public vessels of the Colombian
Government, and vessels transiting solely for repairs, none of which
pay tolls, numbered 552, as compared with 503 for 1934. The total
of tolls-paying and free transits combined, which includes all ocean-
going vessels of 300 tons or more, numbered 5,732, in comparison with
5,737 in 1934, making daily averages of 15.70 and 15.72, respectively.
Net tonnage of the ocean-going commercial vessels passing through
the Canal in 1935 aggregated 27,805,588 tons, Panama Canal measure-
ment, a decrease of 2.6 percent in comparison with 1934. Tolls in
1935 amounted to $23,307,062.93, decreasing 3.1 percent in compari-
son with the $24,047,183.44 collected in the preceding year.
Cargo carried through the Canal in 1935 amounted to 25,309,527
tons and was 2.5 percent higher than cargo in 1934. This increase
was due wholly to gains in the tonnage moving from the Atlantic
to the Pacific, cargo tonnage in that direction registering an increase
of 22.2 percent in comparison with the preceding year. From the
Pacific to the Atlantic there occurred a loss in cargo tonnage, the
movement in this direction decreasing 4.1 percent. This phase of the
traffic is presented in detail under "trade routes and cargo."
24072-35---2









REPORT OF GOVERNOR OF THE PANAMA CANAL


The receipts from tolls reported by the accounting department for
the fiscal year 1935 were $23,338,977.90. This figure includes tolls
on "local commercial traffic", which are not included in the Canal
statistics covering "ocean-going commercial traffic." The accounting

department figures on tolls also have been adjusted in accordance
with refunds for overcharges and supplemental collections in the
event of undercharges. These items account for the difference of
$31,914.97 between the accounting figures and the figure for tolls
levied on ocean-going commercial traffic as reported in the following
studies of traffic, which are based on tolls levied at the time of transit.
Comparative traffic statistics covering ocean-going vessels for each
fiscal year since the Canal was opened to navigation are shown in the
table below:


Fiscal year ended June 30-

1915 .------------------------- ---
1916 --------------------------------------
1917----------------------------------
1918 ----------------.....---------------
1919.----------------------------------
1920-.------------------------------------
1921------_-__-- --------------------- --
1922.-----------------------------------
1923--- -- -------------------------
1924-.-------------------------------
1925 --..---------.------------------
1926-..---------------- -------------
1927.--------------- ----------------
1928----------------------------------
1929----------.- ------ -------------
1930 ------- --------------------. ----
1931.-.-------.--------------------
1932. ----------------------- -..--------
1933 --.------------------------ --
1934.-----------------------------------
1935--- ------------------------ -----
Total-........................------


Number of Panama Canal
transits net tonnage


1,058
724
1,738
1,989
1,948
2, 393
2,791
2,665
3,908
5, 158
4, 592
5,087
5, 293
6, 253
6,289
6.027
5,370
4, 362
4,162
5,234
5, 180
82,221


3,791,770
2, 391, 433
5,791,236
6,563,864
6, 116,877
8, 538,804
11,405, 550
11,411, 482
18, 601, 298
26, 142, 021
22, 847, 527
24, 763,075
26, 210,623
29, 436,697
29, 822, 122
29, 963,670
27, 773,037
23,613,370
22, 803, 798
28,550, 953
27, 805, 588


Tolls


$4,366,747. 13
2,403,089. 40
5, 620, 799. 83
6,428,780. 26
6, 164, 290.79
8, 507,938. 68
11,268,681.56
11,191,828.56
17, 504, 027. 19
24, 284,659.92
21,393,718.01
22,919,931.89
24,212,250. 61
26,922,200. 75
27, 111,125.47
27,059,998.94
24, 24,599. 76
20, 694, 704. 61
19, 601,077. 17
24,047, 183. 44
23,307,062.93


394,344, 795 359, 634, 696.80


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

TRAFFIC BY MONTHS

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


Month


July-------...........
August ----------
September -------
October --------- -
November--------
December---------
January--------
February---------
March------------
April-------------
May------------
June..........----------
Total ------
Average per
month-- -


Number of ves- Panama Canal net
sels tonnage


1933-34 11934-35


1933-34

2. 049,972
2, 15, 755
2,095, 215
2, 414, 410
2,393, 779
2, 616, 777
2, 581,095
2,461,993
2, 702,006
2,492, 529
2,566,067
2, 018, 355


1934-35

2, 177, 193
2,245,247
2,332,351
2,516,087
2, 546,417
2,331, 250
2, 294, 137
2, 205, 057
2, 398, 231
2,258,926
2, 366,455
2,134,237


Tons of cargo


1933-34

1, 697,678
1,912,679
1,795,540
2, 123,972
1,948,655
2,191, 245
2, 086,480
2, 123, 956
2,464, 735
2,290, 795
2,301,666
1, 766,608


1934-35

1,934, 237
2, 187, 780
2, 142,832
2, 172,752
2,339,001
2,089,310
1,945,085
1,836,383
2,210,434
2, 079, 028
2,291,968
2,080,717


Tolls


1933-34

$1, 730,789.73
1,828,3290.19
1,757,083.14
2, 034,963. 22
2, 000, 060. 65
2,203,319.45
2, 159, 642. 48
2,078, 950. 58
2,280,217.26
2,120,640.81
2, 146,421.35
1,706,774.58


1934-35

$1, 822, 909. 61
1,906,821.39
1,947, 536. 76
2,098, 299.03
2,137,916.55
1,952, 192.57
1,911.094.13
1,826,999.63
2,018, 114.62
1,890,572.41
1, 996, 156. 81
1,798,449.39


5, 180128, 550, 953 127, 805, 588 124, 704, 00925, 309, 527124, 047, 183.44123, 307, 062.93


2, 317, 1321 2, 058, 6671 2, 109, 1271 2,003,931. 95


Tons of cargo


4,888,400
3,093,335
7, 054, 720
7, 525,768
6,910, 097
9,372,374
11,595,971
10,882,607
19, 566,429
26,993, 167
23,956, 549
26,030, 016
27, 733,555
29,615,651
30,647,768
30,018,429
25,065,283
19,798,986
18,161, 165
24,704,009
25,309, 527
388,923,806


I I---~I


2.379,246


1,942, 255.24







REPORT OF GOVERNOR OF THE PANAMA CANAL


TANKER TRAFFIC

Transits of tank ships during the fiscal year 1935 totaled 791, a
decrease of 151, or 16 percent in comparison with the 1934 total of
942. Tanker transits in 1935 comprised 15.3 percent of the total
commercial transits, made up 16.8 percent of the total net tonnage
(Panama Canal measurement), paid 18 percent of the total tolls col-
lected, and carried 19.4 percent of the cargo which passed through the
Canal.
Cargo carried through the Canal in tank ships during the fiscal year
1935 amounted to 4,914,902 tons, in comparison with 5,909,531 tons
in 1934, a decrease of 994,629 tons, or 16.8 percent. Segregation of the
1935 traffic by direction of transit shows that 440,194 tons of tanker
cargo went through from the Atlantic to the Pacific, and 4,474,708
tons from the Pacific to the Atlantic.
Of the mineral oil cargoes carried through the Canal during the fiscal
year 1935, approximately 30 percent was gasoline, benzine, and naph-
tha; 30 percent crude oil; 27 percent gas and fuel oils; and the remain-
der, 13 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 commercial or
toll-paying vessels, classified herein as "general." The tables show
the number and daily averages of the two classes, and of the total; the
quazintities and proportion of net tonnages; and the amounts and pro-
portions of tolls:
Number and daily average transit of tankers and general carriers
Ocean-going commercial Daily average
transits
Fiscal year ------------- ----------------
Tankers General Total Tankers General Total

1923 --------------------------------- 913 2,995 3,908 2.5 8.2 10.7
1924-------------- -------------------1,704 3,454 5,158 4.7 0.4 14.1
1925 --------------------------------- 1,079 3,513 4,592 3.0 9.6 12.6
1926 --------------------------------- 1,090 3,997 5,087 3.0 11.0 14.0
1927---------- -----------------------1,324 3,969 5,293 3.6 10.9 14.5
1928 ---------------------------------1,121 ,132 6,253 3.0 14.0 17.0
1929 --------------------------------- 1083 5,206 62S9 3.0 14. 2 172
1930 --------------------------------- 1218 4,809 6,027 3. 53 13. 12 16. 5
1931 ----------------------------------- 944 4,426 5370 2.6 12.1 14.7
1932 ---------------------------------- 612 3,750 4362 1.7 10.2 11.9
1933 ---------------------------------- 636 3,526 4162 1.7 9.7 11.4
1934 ---------------------------------- 42 4,292 5,234 2.6 11.7 14.3
1935:
July -------------------------------- 89 305 394 29 9.8 12.7
August ---------------------------- 80 321 401 2.6 10.3 12.9
September--------------------------- 63 372 435 2.1 12.4 14.5
October ---------------------------- 76 391 467 2.5 12.6 15.1
November--------------------------- 75 394 469 2.5 13.1 15.6
December-----------------------.-- 64 379 443 2.1 12. 2 14.3
January ---------------------------- 58 367 425 1.9 11.8 13.7
February--------------------------- 54 376 430 2.0 13.4 15.4
March ----------------------------- 50 405 455 1.6 13.1 14.7
April ------------------------------- 50 382 432 1.7 12.7 14.4
May ------------------------------- 61 363 424 2.0 11.7 13.7
June-------------------------------------- 71 334 405 2.3 11.2 13.5
Total------------------------------ 791 4,389 5,180 2.2 12.0 14.2








REPORT OF GOVERNOR OF THE PANAMA CANAL


Proportions of tanker and general net tonnage


1923 ---------------------------
1924------.............---- ----------
1925 ----------------------- --
1926----.........--------.......----------
1927 ---- -------- ~ ------. -
1928 ----------------------------
1929..-----.----------------- -
1930 ---_-------------------------
1931 ------------ --------
1932 --------------------------
1933 ------- ---------------- -
1934.--------------------- -
1935,--------------------------.


Panama Canal net tonnage


Percentage of total net tonnage


_____________________ I- _ _ _


Tankers


General


Total


-I I 1 1 1


5, 374, 384
10,212,047
6,424, 622
6,343,240
7,624,112
6, 243,969
5, 844, 263
6, 564,138
5,284, 873
3, 570, 398
3, 808, 784
5,811,995
4,676.761


13, 226,914
15,929,974
16, 422,905
18,419,835
18,586,511
23, 192,728
23,977,859
23,399,532
22,488, 164
20,042,972
18,995,014
22,738,958
23, 128,827


18,601,298
2'i. 142.021
22, "47, 527
24,763,075
26,210,623
29,436, 697
29, 822,122
29,963,670
27, 773, 037
23, 613, 370
22, 803, 798
28, 550,953
27,805,588


Tankers


General


Total


100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. 0


Proportion of tolls from tank ships and from all other vessels


Tolls paid by shipping using Canal


General


$12,734, 702. 56
15, 212, 824. 27
15,665,415. 75
17,293, 763.96
17,553,443. 71
21,485,763. 59
21, 965,493. 28
21,291,035.66
19,942,279.62
17,497, 568.32
16, 207, 766. 15
18,885,396.04
19, 114, 199.84


Total


$17,504,027.19
24,284, 659. 92
21,393,718.01
22,919,931.89
24, 212,250.61
26,922, 200. 75
27,111, 125.47
27,059,998. 94
24, 624, 599. 76
20,694,704.61
19,601,077. 17
24,047, 183. 44
23, 307,062.93


Percentage of total tolls


Tankers I General


Total


100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0


NATIONALITY OF VESSELS

Segregation of the ocean-going commercial traffic through the

Canal during the fiscal year 1935, by nationality, is presented in

the following table which shows transits, measurement tonnage, tolls,

and tons of cargo:

Ocean-going traffic through the Panama Canal during fiscal year 1935 by nationality
of vessels


British ----------
Chilean.......----
Colombian------
Danish..........
Danzig.--------.
Finnish --------
French.------.--
German-------
Greek.. ..---
Italian......--------..


Num-
ber of
transits




1,170
13
I1
125
49
3
116
341
15
77


Measurement tonnage


Panama United
Panama States
Canal net equivalent


6,635,211
43,965
540
593,497
388,177
14, 553
661,712
1, 316, 785
62,362
487,680


4,718,307
34, 009
516
384,162
329,948
11,312
438, 760
908,301
47, 226
332, 747


Registered


Gross Net


7,919,176
59, 255
700
646,163
594,629
18,883
799,403
1, 539,606
74,969
613,465


4, 784, 724
35, 200
500
397,078
333, 531
10,091
448, 216
921,385
45,979
361,752


1923 ------------------
1924 --------------------
1925 ---------- ----
1926 ------------- --
1927 -------------------
1928.. M --------------
1929 -----------------
1930--------------------
1931 -----------------
1932--.---------- -------
1933------------r-------
1934 -------------
1935--------------------


Tankers


$4, 769,324. 63
9,071,835.65
5, 728,302.26
5, 626, 167. 93
6, 658, 806. 90
5,436,437. 16
5, 145,632. 19
5, 768, 963. 28
4,682,320. 14
3, 197, 136.29
3,393,311.02
5,161,787.40
4,192,863.09


Tolls





$5,671,310.93
42, 262. 12
388.80
467, 522. 46
351, 700.14
12,629.78
535,219.62
1,116,058.87
52, 774.99
397, 293. 79


Tons of
cargo


5,776,021
39,063
555,981
440, 186
17,325
570,034
1,300,991
78, 158
336,196


I .


N l ion i1itty







REPORT OF GOVERNOR OF THE PANAMA CANAL 11


Ocean-going traffic through the Panama Canal duringfiscal year 19.35 by nationality
of vessels-Continued


Measurement tonnage I


Nationality




Japanese.------
Netherland......
Norwegian......
Panamanian...-.
Peruvian--------
Polish---------- -
Spanish_-.---.--
Swedish ------..
United States...
\'ene'uelan......
Yugoslavian.....
Total fiscal year:
1935.--------
1934.--------
1933---------


Num-
her of
transits



255
114
515
103
10
1
1
111
2, 143
2
15

5. 180
5, 234
4, 162


Panama
Canal net


1,483,609
.o<, 240
2,47'.1, 200
204,128
6,529
563
516, _'(17
12, 265,794
2,162
64,674

27,805, 588
28, 550,953
22,803, 798


United
States
equivalent


1, 24, 926
369, Js8S
1, 6I0j, t02
1.31), 8k..
6,022
535
383,524
8,496, 072
2,116
50,229

19,428,658
20,333, 299
16,351,160


Registered


Gross


1, 803, 738
.620,915
2,773,674
24R. 319
14, 621
1,561
973,816
14, 233,046
4,084
80,333

33, 013,356
34, 347, 583
27,153,415


Net

1,115,718
373,979
1, 670,863
130,671
5,485
525
470, 060
8, 451, 318
2,160
50,041

19,609, 276
20, 523,877
16,519,025


Tolls




$1, 374,808.88
456,111.55
1,946,216.95
154,038.55
7,368.57
405.36
1, 678. 00
439,371.95
10,215,751.94
2,090.70
;2. 058. 98

23,307,062. 93
24,047, 183. 44
19,601,077. 17


Tons of
cargo




1,446,049
439, 168
2,463,675
121.758
2,283

782, 548
10,825,573
1,929
112,589

25, 309. 527
24, 704, 009
18, 161, 165


NOTE.-The above statement inrlu.ldei only oceanri-ging commercial t rflic of .i00 net tons or over, Panama
Canal measurement, and foreign naval vessels of ."Ou to:ris displacement or over.


Segregating the traffic through the Canal by nationality of vessels,
the following table shows the aggregate cargo carried by ships of the
leading maritime nations during each of the past 5 fiscal years. For
the year 1935, the percentage of total cargo carried by ships of each
nationality is also shown.

Tons of cargo carried


1935
Nationality 1931 1932 1933 1934
Tons Percent-
age

United States----------------. 11, 05.132 8,835,055 7,987,739 11,578,453 10,825,573 42.8
British------------- ---------- 5, 97 1, 024 4, 637, 388 4, 170, 995 5, 193, 136 5, 776,021 22.8
Norwegian ------------------. 1,720,383 1, 427,284 1, 773, 161 2,080,833 2.463,675 9.7
Japanese------------.---------- 1, 104,512 1,031,704 1, 159, 733 1,510,916 1,446,049 5.7
German-----------------------. 1, 261, 763 1,078, 738 813, 231 962, 218 :,300. 991 5. 1
Swedish..---------------------- 721,945 761,015 403, 169 766,921 7"2, 54S 3. 1
French-----------------------.. li, 011 33S. 586 249, 395 430,471 570, 034 2.3
Danish------.----------------. 6., 100 521,41S1 448,863 533,262 555,981 2.2
Danzig------------------------ 185,982 23', 8S4 347,934 575, 125 440, 188 1. 7
Netherland-..-------------- --- 477, 628 4 l, S70 381,071 403,451 439, 168 1.7
Italian.-------- ------------ 236,570 215,139 189,371 256,465 336,196 1.3
All remaining----------------- 466, 233 272, 812 236,503 412,758 373, 105 1. 6
Total----------------- 25, 05. 28.3 I 19, 7y9S., i96 161. 16t5 24,704,009 25,309.527 100.0



Twenty-one nationalities were represented in the ocean-going com-
mercial traffic passing through the Canal in 1935, compared with 23
in 1934 and 21 in 1933. Vessels of United States registry led in the
number of transits, as has been the case during the preceding 16
years. From 1915 to 1918, inclusive, transits of British vessels ex-
ceeded those of any other country. In all years of operation, either
British or United States vessels have led in transits.






REPORT OF GOVERNOR OF THE PANAMA CANAL


FOREIGN NAVAL VESSELS

In the Canal traffic statistics, foreign naval vessels such as colliers,
transports, supply ships, etc., with a measurement of 300 net tons or
more, and foreign naval vessels such as battleships, cruisers, destroy-
ers, submarines, etc., with a displacement measurement of 500 tons
or more, are classified as "ocean-going commercial" vessels. Statis-
tics on these vessels, except as relates to displacement tonnage, have
been included in the traffic summaries shown on the preceding pages.
As displacement tonnage cannot be combined with net tonnage, how-
ever, the following table shows foreign naval vessels transiting the
Canal which paid tolls on the basis of displacement tonnage:

Number Displace-
Nationality of meant Tolls
transit tonnage

British.............................................................. -------------------------------------------------------11 69,487 $34,743.60
French............................................................... --------------------------------------------------------4 19, 382 9,691.00
German-----.-------- --------------..---------------------------- 1 7,030 3,515. 00
Peruvian--.-------------- -------------------------------------- 4 2,304 1, 152.00
Spanish--------------.................-----.----.................... 1 3, 356 1,678.00
Total-------.------------------.--------------------------- 21 101,559 50,779.50


VESSELS ENTITLED TO FREE TRANSIT

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
exempt 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 had been charged against them, and the cargo carried by such
vessels in ocean-to-ocean movement:

Number Panama isa- Tons of
Class of Canal net Disple- Tolls cargo
transits tonnage ment

U. 8. Navy-----------------------------........................... 344 237,995 1,070,912 $735,474.38 45,603
U. S. Army--------------------------............. --- 176 412,789 21,744 381,221.55 25,957
Other U. S. Government----------------- 7 ------------ 3,288 1,644.00 ........--
Total U. S. Government------------ 527 650, 784 1,095,944 1,118,339.93 71,560
Colombian Government------------------ 5 1,135 5,400 3,692.50 750
Solely for repairs.-------------------------- 18 22,046 3,578 15,930.00 -.-----
Byrd Expedition-----.-----...--------------- 2 5,431 ------------ 4,747.50 100
Grand total..-.-.-.-.-.....--... 552 679,396 1,104,922 1,142,709.93 72,410


LOCAL TRAFFIC

Transits of small cargo-carrying vessels, and other small craft such
as yachts, tugs, etc., of less than 300 tons Panama Canal measure-






REPORT OF GOVERNOR OF THE PANAMA CANAL 16


ment or less than 500 tons displacement measurement, are excluded
from the statistics of commercial traffic, although they are not
exempt from the payment of tolls. The number of these small
vessels transiting the Canal during the year, the tolls collected
thereon, etc., are shown in the following table:


Number of Panama Displace- Tons of
Nm f Canal net ment ton- Tolls oor
transit tonnage nage


Atlantic to Pacific:
Local commercial--------------------- 361 17,132 ----------- $16, 172.36 3,316
Naval, etc ------------- ------------... 4 ------------ 620 310.00 ...-----.......------
Pacific to Atlantic:
Local commercial--------------------- 269 14,009 ----------- 15,692.76 14,907
Naval, etc-.------------------------- --------- -- --------------.. ----------.---------
Total------------------------------- 634 31, 141 620 32,175. 12 18,223


TRADE ROUTES AND CARGO

Cargo shipments through the Panama Canal during the fiscal year
1935 and in the 3 preceding years, segregated by principal trade routes,
are shown in the following tabulation:


Tons of cargo

1932 1933 1934 1935


United States intercoastal:
Atlantic to Pacific-------------- ---------
Pacific to Atlantic ----.-------------.-------
Total--------------------------------
United States and Far East (including Philippine Is-
lands):
Atlantic to Pacific----------------------.. ------
Pacific to Atlantic.------------------------
Total---------------------------------
Europe and South America:
Atlantic to Pacific.---------------... -------
Pacific to Atlantic -----------------------...
Total--------------------------------
Europe and Canada:
Atlantic to Pacific ---........... .-...--..........-
Pacific to Atlantic------------------------
Total-------------------------------
Europe and United States:
Atlantic to Pacific ------.----------...--.-
Pacific to Atlantic---------------- --------
Total------------------..................................
East coast United Slates and west coast South America:
Atlantic to Pacific------------- ----------
Pacific to Atlantic--------.--------- -----
Total----------- -------- ------..............
Europe and Australasia:
Atlantic to Pacific -----------------.-------..
Pacific to Atlantic ------.........................-------
Total---- -------------------------------


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


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


2,074,707
6,850,261
8,924,968


2,162,641
5,800,769
7,963,410


1,714,725 1,323,003 1,822,955 2,532,280
851, 124 1,077,734 1,535,733 1, 067,426
2,565. 849 2,400,737 3,358,688 3,599,706

206,908 164,695 212,213 304,212
1,532,204 1,368,234 2,433,350 2,640,962
1,739, 112 1,532,929 2,645,563 2,945, 174

69,926 70, 573 85,153 77,282
2,109,790 2,788, 173 2,010,898 2,335, 108
2, 179,716 2,858,746 2,096,051 2, 412,390

334,160 249,966 320,366 379,785
1,834,090 1,700,808 1,530, 881 1,388,187
2, 168,250 1,950,774 1, 851. 247 1,767,972

116,638 44,474 108, 447 142,870
1,001,749 294,076 1, 633,499 1,380,790
1,118. 37 338,550 1,741,946 1,523,660

286,740 235,075 252,680 320,280
422,227 295,896 600,931 615, 144
708,967 530,971 853,611 935,424







REPORT OF GOVERNOR OF THE PANAMA CANAL


Tons of cargo

1932 1933 1934 1935

United States and Hawaiian Islands:
Atlantic to Pacific------------------------------ 127,576 63,798 114,227 111,030
Pacific to Atlantic------------------------------ 395,843 349,938 381,131 368,024
Total--------------------------------------- 523,419 413,736 495,358 479,054
United States and Australasia:
Atlantic to Pacific------------------------------ 187,393 164,215 211,018 277,477
Pacific to Atlantic------------------------------- 81,501 18,552 81,303 152,567
Total---------------------------------------- 268,894 182,767 292,321 430,044
Miscellaneous routes and sailings:
Atlantic to Pacific------------------------------ 670,599 596,184 960,883 1,221,864
Pacific to Atlantic----------------------------- 1,232,809 929,163 1,483,373 2,030,829
Total-------------------------------------- 1,903,408 1,525,347 2,444,256 3,252,693
Total traffic, all routes:
Atlantic to Pacific----------------------------- 5,631,717 4,507,070 6,162,649 7,529,721
Pacific to Atlantic----------------------------- 14,167,269 13,654,095 18,541,360 17,779,806
Total--------------------------------------- 19,798,986 18,161,165 24,704,009 25,309,527


ORIGIN AND DESTINATION OF CARGO

The following tables show the origin and destination, by principal
trades areas, of the cargoes carried by steamers passing through the
Canal during the past fiscal year; one table covers the movement of
cargo from the Atlantic to the Pacific, and the other from the Pacific
to the Atlantic.










REPORT OF GOVERNOR OF THE PANAMA CANAL


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REPORT OF GOVERNOR OF THE PANAMA CANAL 19

PRINCIPAL COMMODITIES

Statistics of commodities passing through the Canal are not precise
because at the time of transit it is not required that complete mani-
fests of cargo carried by vessels be submitted to the Canal authorities.
In lieu of a manifest the master of each vessel is required to submit
a "cargo declaration", which is a briefly itemized statement, listing
the principal items of cargo carried and showing their ports or country
of origin and destination. These cargo declarations form the basis
of the commodity statistics. There is a natural tendency not to
list small miscellaneous shipments but to include them under the
head of "General cargo"; not infrequently no other classification is
made of the entire cargoes carried by vessels. Hence, except in the
case of commodities commonly shipped in bulk, such as mineral oils
carried in tank ships, wheat, lumber, nitrates, etc., shipments of
various goods are likely to be in excess of the aggregate tonnage
reported during the year and shown in the annual summary. Subject
to errors arising from this source, the tonnage of the principal com-
modities shipped through the Canal during the past 4 years is shown
in the following table:
Commodity movement

Fiscal year ended June 30-
Commodity- ---
1932 1933 1934 1935

ATLANTIC TO PACIFIC Long tons Long tons Long tons Long tons
Scrap metal------- ----------. ------ --87,657 273,375 503.277 1,186,061
Manufactures of iron and steel.- ---------------- 781,494 502,503 982, 596 1,114,189
Mineraloils--..----------------------------------- 518,498 407,492 550,469 605,595
Cotton, raw----...----------------.---------------- 747,496 432,043 492,459 362,548
Paper and paper products-----.------..--------------- 204,297 214,568 256,449 347,424
Phosphates-----------------.---------------------- 239,266 154,145 188,320 255,033
Sulphur------------------------------------------- 197,941 149,790 206,509 208,678
Tinplate ----------------------------------------- 148,852 108, 500 241,854 199,495
Metals, various------------------------------------- 42,830 30, 662 60,140 175,066
Automobiles--------------------------------------- 66,673 50,731 90,111 131,341
Canned goods (fish, fruit, vegetables, etc.)------------- 117,857 101,751 106,869 121,478
Asphalt and tar.----------------------------------- 60,286 47,748 61,581 113.305
Machinery----------------------------------------- 78,656 54,781 87,285 112. 339
Corn- -------------------------------------------- 59,987 128,331 42,241 104.7S3
Cement-...------------------ ------------------ 76,870 69,105 85.456 103, l.08
Chemicals----------------------------------------- 72,436 641, 072 S7. 652 9X, 907
Coal and coke-------------------------------------- 95,199 6. 548 110,29-1 97,582
Ores, various.-------------------------------------- 31,164 2*, 053 27.572 97, 502
Textiles-.----. ------------------------------------- 83.756 78,555 Q8, 269 96,269
Automobile accessories-..-.--------------------------- 39, 367 35,237 65, 217 79.818
Ammonium compounds----------------------------- 71,933 35,002 56,331 -R, 073
Liquors and wines-------------------------..-------- 18,802 15,431 25,972 60,034
Nitrate. ------------------------------------------ 36,980 45, 295 69, 164 58,464
Salt.---------------------------------------------- 36,855 30.263 60,018 53,931
Glass and glassware.. -------------------------------- 44,911 47,374 51,548 53,824
Coffee------- ------------------------------------- 61. 241 54, 491 64,624 52,670
Tobacco-------------------------------------------- 65,.806 67,548 72,006 52,611
Sugar..--------.----------------------------------- 5S, 671 40,256 75,770 50,052
Rosin.----- --------------------------------------- 45.405 38.024 4 1. 34 47, 527
Wood pulp---------------------------------------- 23,307 3s. 9S6 34, 947 45.222
Oils, vegetable-------------------------------------- 33,739 39,132 38,751 39,.434
Creosote..--.-------------------------------------- 38,482 15, 315 14.626 38,395
Agricultural implements----------------------------- 12,956 11,567 25.246 32,037
Sand.--- -------- ----------------.. ---------------- 14.392 23,519 31.225 31,967
R:i lroad material....--------------------------------- 26. 731 18,265 42,350 28,125
Lumber and mill products--------------------------- 26, 319 21.826 27,729 26,776
Paints and varnishes ------------------------------- 11,813 8, 676 14.740 26, 265
Soda and sodium compounds------------------------ 35,758 25,892 32, 484 25,909







2U REPORT OF GOVERNOR OF THE PANAMA CANAL

Commodity movement-Continued

Fiscal year ended June 30-
Commodity -----
1932 1933 1934 1935

ATLANTIC TO PACIFIC-continued
Long tons Long tons Long tons Long tons
Soap and products---------------------------------- 35,289 28,631 24,505 23,746
All other------------------------------------------ 1,181,655 884,587 1,008,159 1,095,438
Total--------------------------------------- 5,631,717 4,507,070 6,162,649 7,529,721
PACIFIC TO ATLANTIC
Mineral oils--------------------------------------- 3,116,844 3,506,356 5,443,271 4,342,231
Lumber ----------------------------------------- 2,129,787 1,549,483 2,148,020 2,165,835
Wheat -- ----------------------------------------- 1,790,530 2,368,892 1,371,258 1,533,056
Sugar -- ------------------------------------------ 1,298,830 1,667,496 1,773,137 1,212,145
Nitrate------------------------------------------- 811,522 186,783 1,059,425 1, 146,848
Ores ---------------------------------------------- 618,368 90,518 1,224, 135 1,080,144
Canned goods (fish, fruit, vegetables, etc.)------------- 787,736 865,716 882,254 937,172
Metals, various ----------------------------------- 472,560 376,396 511,759 608,122
Soybeans ------. t ------------------------------------------- 39,593 206,605 433,322
Food products in cold storage I........................ -----------------------248, 874 162,143 357,058 363,745
Flour --------------------------------------------- 123,964 180,858 270,531 319,655
Fruit, fresh ---------------------------------------- 256,563 285,523 311,530 270,666
Fruit, dried ..----------- -------------------------- 340,851 314,061 307,714 261,116
Barley -- -------------------- ---------------- 153,206 209,890 197,183 200,030
Oils, vegetable ------------------------------------ 112,401 95,473 154,710 193,470
Oats ------------------------------------------- 108,089 79,898 90,034 155,881
Coffee ------------------------------------------ 125,228 152,735 140,907 137,081
Beans, edible, dry --------------------------------- 172,526 103,522 128,473 130,649
Wood pulp------------- -------------------------- 157,541 106,329 135,214 129,771
Wool --- ------------------------------------ 101,147 97,852 155,627 122,234
Paper and paper products--------------------------- 116,103 98,997 110,095 118,588
Copra ------------------------------------------ 79,471 80,789 103,904 102,397
Borax. -------------------------------------------- 75,463 66,205 80,512 94,716
Rice --------------------------------------------- 53,924 34,267 47,128 81,192
Cotton, raw ------------------- ------------------- 62,005 64,931 78,018 78,282
Fish meal ---------------------------..---------- ------------ 6,037 40,694 75,593
Molasses and sirups----------.---------------------- 31,975 7,667 46,485 66,517
Skins and hides ---.-------------------------------- 53,619 52,509 62,271 64,123
All other---------------.------------------------- 768,142 803,176 1,103,408 1,355,225
Total.-------------------------------------- 14,167,269 13,654,095 18,541,360 17,779,806

1 Does not include fresh fruit.

CLASSIFICATION OF VESSELS

LADEN AND BALLAST TRAFFIC

The following summarizes the ocean-going commercial traffic
through the Canal during the fiscal year 1935 by laden ships and those
in ballast, segregated between tankers, general cargo, and those not
designed to carry cargo, and between United States and all other
nationalities:









REPORT OF GOVERNOR OF THE PANAMA CANAL 21


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22 REPORT OF GOVERNOR OF THE PANAMA CANAL


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REPORT OF GOVERNOR OF THE PANAMA CANAL


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24 REPORT OF GOVERNOR OF THE PANAMA CANAL


BALLAST AND LADEN TRAFFIC BY NATIONALITY


In the table below, which shows traffic through the Canal by flag,

the ships of each nationality have been segregated to show separate

statistics on vessels which were carrying cargo at the time of transiting

the Canal and those which transited the Canal in ballast.


Ballast


British---------------
Chilean ---------....----
Colombian. -----------..-
Danish -----------
Danzig .-.---.-....---.----.
Finnish. -------. -
French----------------..---.
German -----------------
Greek----------- ---------
Italian-.-------------------
Japanese -----------------
Netherland ---------------.
Norwegian---------------.-
Panamanian--.--------.-
Peruvian ---------------
Polish ----------------
Swedish .--- .--.-------
United States------------
Venezuelan.--..--...........----
Yugoslav------.........-........-

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


Number
of
transits


Tonnage


Panama
Canal,
net


1,085,696
316
540
98,219
175, 337
4,649
65, 071
113,411
20,956
56,507
86, 951
26,615
487,838
25,570
2,913
563
134,474
1,326,966
1,081
5,759

3,719,432


United
States
equivalent


834,016
288
516
66,099
149,582
3, 886
55,818
83,408
17,146
47,460
74,782
20,429
381,621
22, 323
2,697
535
109, 332
1,086,815
1,058
3,899

2,961,710


Registered

Gross I Net


1,392,099
749
700
107,281
267,127
6,549
87,181
135,711
25,680
80,364
110,509
33,185
630,670
44,606
4,657
1,561
346,607
1,782,613
2,042
6,361

5,066,252


828,176
375
500
66,047
151,380
2,816
50,441
80,461
15,771
46,360
74,048
19,924
379,551
22,293
2,703
525
130,331
1,082. 719
1,080
3,850

2,959,351


Laden


British----------.................
Chilean-----.............-.... -------
Danish----------------
Danzig--------------------
Finnish. ..-------------
French----........---........--
German ----------------
Greek .------...--------
Italian------ -----------
Japanese----------------
Netherland.--------------
Norwegian-..---.--...------
Panamanian-------------
Peruvian --------------
Swedish ------------.-
rnited States---.-------
Venezuelan. .........------------.
Yugoslav --------...............-
Total.....--....-----


959
12
105
27
2
101
316
10
65
237
109
414
93
3
83
1,891
1
14


5, 549,515
43,649
495,278
212,840
9,904
596,641
1,203,374
41,406
431,173
1,396,658
521,625
1,991,362
178,558
3,616
411,733
10,938,828
1,081
58,915


4,442 24,086,156


NOTE.-21 vessels paying on displacement tonnage are not included in above statements.


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


The average measurement tonnage, tolls, and tons of cargo per

cargo-carrying vessel of 300 net tons and over, Panama Canal meas-


Tolls


$781,368.98
227.52
388. 80
69,943.71
126,242. 64
3,347.28
46,851.12
81,655.92
15,174.99
40, 685. 04
62,646.93
19,162.80
349,523.70
18,486.30
2,115.87
405. 36
96,631.95
956,455.08
793. 50
4,146. 48

2,676,253.97


3,884,291
33,721
318,063
180,366
7,426
382,942
824,893
30,080
285,287
1,050,144
349,559
1,277,471
108,543
3,325
274,192
7,409,257
1,058
46,330

16,466,948


6,527,077
58,506
538,882
327, 502
12,334
712,222
1,403,895
49,289
533,101
1,693,229
587,730
2,143,004
201,713
4,964
627, 209
12,450,433
2,042
73,972

27,947,104


3,956,548
34,825
331,031
182,151
7,275
397,775
840,924
30,208
315,392
1,041,670
354,055
1,291,312
108,378
2,782
339,729
7,368,599
1,080
46,191

16,649,925


$4,855,198.45
42,034.60
397,578. 75
225,457.50
9,282.50
478,677.50
1,030,887.95
37, 600.00
356,608.75
1,312,161. 95
436,948.75
1. 5".9, 693. 25
13,552.25
4,100.70
342, 740.00
9,259,296.86
1,297.20
57,912.50

20,580,029.46






REPORT OF GOVERNOR'OF THE PANAMA CANAL


urement, transiting the Panama Canal during the past 3 years are
shown in the following tabulation:


Fiscal year Fiscal year Fiscal year
1933 1934 1935

Measured tonnare:
Panama Canal net-.----------------------------------------- 5,504 5,482 5,405
United States net---------------------------------------- 3,946 3,903 3,776
Re'citeredi gross-.---------------------------------------- 6,553 6,592 6,416
Registered net-------------------------------------------- 3,987 3,940 3,811
Tolls- -- -- --------------------------------------------- $4, 726.24 $4, 611.57 $4,522. 93
Tons of cargo (including vessels in ballast)------.--------------. 4,385 4,744 4,921
Tons of cargo (laden vessels only)--.--.---------------------------- 5, 255 5,831 5,703

NOTE.-Computation of above averages is based on cargo-carrying vessels only; craft not eng.iged in
commerce, such as yachts, naval vessels, etc., are not considered.

STEAM, MOTOR, AND OTHER VESSELS

Of the 5,1q0 ocetlln-g(oin comllnier'i;!l vc-ssels trani-titiiig the Canal
during the fi-cal year, 3,:36 were steamllers, 1,753 wvtre motorships,
and the remniiniler, 41, were. unc-lassiried naval ve-se1s, y:4cht;. ('tl.
For the past 5 years the proportions of these lhisses have been as
follows:


1931 1932 1933 1934 1935

Percent Percent Percent Percent Percent
Steamers--------------------------------------...... 71.1 67.0 63.2 65.6 63.4
Motorships-- --------------------------------. 28.4 32. 4 36.4 33.9 33.8
Miscellaneous------------------------------------ .5 .6 .4 .5 .8
Total---- ------------------...------------ 100. 0 100. 0 100.0 100. 0 100.0


Of the 3,386 stea;mers transiting the Canal during the past, fiscal
year, 2,532 burned oil, 823 burned coal, and 31 were reported as fitted
for either fuel. For the past 5 years the proportions of each class
have been as follows:


1931 1932 1933 1934 1935

Percent Percent Percent Percent Percent
Oil burning----- --..------------------------ 72.8 76. 1 70. 6 76.2 74.8
Coal burning ---------..--------------------........... 25.6 22.1 27.2 22.6 24.3
Either oil or coal------------------------------..... 1.6 1.8 2.2 1.2 .9
Total-------------------.. ----...-------- 100.0 100.0 100.0 100.0 100.0


SUMMARY OF PASSENGER MOVEMENT AT CANAL DURING 1935

The following tabulation shows by months the number of passengers
disembarking and embirtiking at Canal Zone ports during the fiscal
year 1935, segregated as between first-class and "others", with com-
parative totals for the fiscal years 1934 and 1933:






REPORT OF GOVERNOR OF THE PANAMA CANAL


Disembarking Embarking

First Others Total First Others Total
class class

July ----------_---------------------- 1,421 689 2,110 2,119 1,666 3,785
Aucust ----------------------------- 1,753 1,913 3,666 1,192 1,671 2,863
September.---------------------------- 1,923 1,984 3,907 1,593 1,395 2,988
October ------------------------------- 1, 784 1 968 3, 752 1,236 953 2, 189
November -------- ------------------. 1,424 839 2,263 1,242 1,088 2,330
December---------------------------- 1,500 2,197 3, 697 1, 139 1,947 3,086
January------------------------------ 1,417 768 2,185 1,209 844 2,053
February ---------- ----------------- 1,382 1,270 2,652 1,312 1, 117 2,429
March ------------------------------ 1,366 1,671 3,037 1,605 2,038 3,643
April-------------------------------- 1,222 1,428 2,650 1,491 1,147 2,638
May ---------- ---------------------- 1,282 904 2,186 1,765 1,259 3,024
June_------- ------------------------- 1,689 1,043 2,732 1,800 1,091 2,891
Total, 1935.------------ ------------ 18,163 16,674 34.S!.7 17,703 16,216 33,919
Total, 1934 --------------- --- -----16,646 12, 182 2', s: 16,463 13,509 29,972
Total, 1933 ------_----------------- 14,153 11,859 26,012 14,445 13,869 28, 314


As compared with 1934, the fiscal year 1935 shows a 20.8-percent
increase in the number of arrivals, and in compraison with 1933 a
33.9-percent increase; in the number of departures there was an
increase of 13.2 percent over 1934 and a 19.8-percent increase as against
1933.
The following table shows the passenger traffic through the ports
of Cristobal and Balboa during the past 3 years:


Port of Cristobal Port of Balboa

1933 1934 1935 1933 1934 1935

Passengers disembarking---------------.. 17, 583 18, 898 22, 693 8,429 9,930 12, 144
Passengers embarking-------------------- 19, 444 19, 156 21, 053 8,870 10,816 12,866


A further segregation of the passenger movement shows that 25,233
incoming and 23,369 outgoing passengers were brought from or were
destined to ports of the Atlantic, and 9,604 incoming and 10,550 out-
going passengers were brought from or were destined to ports of the
Pacific.
TRANSIENT PASSENGERS

In addition to the figures shown above of passengers disembarking
and embarking, there were 120,906 transient passengers brought to
the Isthmus by vessels calling at Canal ports during the fiscal year
1935. For the fiscal year 1934, this number was 101,934, and in the
fiscal year 1933, 95,628. The number in 1935 increased 18,972, or
18.6 percent in comparison with those in 1934, and in comparison with
those in 1933 an increase of 25,278, or 26.4 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 begirniing a vvoyoge at the Isthmus. The






REPORT OF GOVERNOR OF THE PANAMA CANAL


origin and destination of these transient passengers are indicated in
the following tabulation:

Total Fiscal year 1935

1933 1934 Cristobal Balboa Total

Renmiini on board veseclstr.Ansiting Canal:
ArlLnl ic to Pacific -----.----------------------. 38,963. 38,114 49,711 ----------....... 49,711
Pacific to Atlantic..-------.. ------------------- 29,873 31,390 ---------- 39, 336 39,336
Remaining on board vessels entering port, but not
transiting Canal:
Atlantic to Atlantic ports----------------.----.. 25,510 30,804 29, 165 ---------- 29,165
Pacific to Pacific ports-----.------------------- 1,282 1,626 --......------ 2,694 2,694
Total----------------------------------- 95, 628 101, 934 78,876 42, 030 120,906

NOTE.-In passengers "remaining on board vessels transiting Canal", those from the Atlantic to the
Pacific are taken up at Cristobal, and those from the Pacific to the Atlantic at Balboa, that is, 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 57 boat trips
were made, carrying 7,968 passengers.

FREQUENCY OF TRANSITS OF VESSELS THROUGH THE PANAMA CANAL

During the fiscal year 1935, 1,379 individual ocean-going commercial
vessels, representing 21 nationalities, passed through the Panama
Canal; in the aggregate, these vessels made a total of 5,180 transits.
The number of transits nmide by individual ships varied from 1 to 63,
and averaged 3.75. The 63 transits were made by the small Panama-
nian steamer Istmo, plying between Cristobal and the west coast of
Colombia.
Although vessels of United States registry led in the aggregate
number of transits during the year, Great Britian, which ranked
second in transits, led in the number of individual vessels, with 457.
The number of individual vessels of United States registry which
passed through during the year was 383.
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
nationality.


.27









REPORT OF GOVERNOR OF THE PANAMA CANAL


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REPORT OF GOVERNOR OF THE PANAMA CANAL 29

The following tabulation shows for the fiscal year 1935 the number
of vessels making the indicated number of transits through the
Panama Canal, the percent which each class formed of the total num-
ber of individual vessels (1,379), their aggregate number of transits,
and their percent of the total ocean-going commercial transits (5,180):


Percent Percent Percent Prnt
eofn- Total otof in- Total oPrcent
Number of tl er n rn Number of total
Number of Nube divid- number al Number of N e divid- number Canal
transit sels ual ves- of tran- transit transits ses ualves- of tran- transits
sels sits (5,180) sels sits (5,180)
(1,379) (6,180) (1,379) (180)

1------------ 367 26.6 367 7.1 16-.------ ---- 3 .2 48 0.9
2------------ 337 24.3 674 13.0 17-........... 7 .5 119 2.3
3.------------ 116 8.4 348 6.7 18-.---------- 1 .1 18 .3
4------------ 142 10.3 568 11.0 19----------- 1 .1 19 .4
6------------ 83 6.0 415 8.0 20.---------- 1 .1 20 .4
6------------ 147 10.7 882 17.0 22-----------...... 1 .1 22 .4
7------------ 55 4.0 385 7.4 24----------- 1 1 24 .5
8------------ 46 3.3 368 7.1 26--..--------- 3 .2 78 1.5
9------------ 27 2.0 243 4.7 27----------- 1 .1 27 .6
10----------- 21 1.5 210 4.1 29----------- 1 .1 29 .6
11----------- 6 .4 66 1.3 32----------- 1 .1 32 .6
12----------- 3 .2 36 .7 36----------- 1 .1 36 .7
13----------- 3 .2 39 .8 63----------- 1 .1 63 1.1
14----------- 1 .1 14 .3 -
15----------- 2 .1 30 .6 Total-.. 1,379 100.0 56,180 100.0


NET TONNAGE OF VESSELS

The 5,180 ocean-going commercial vessels which transited the Canal
in the fiscal year 1935 were comprised of 5,159 merchant vessels,
yachts, etc., paying on the basis of net tonnage, and 21 naval vessels
paying tolls on the basis of displacecmnt tonnage. Of the 5,159
ocean-going commercial transits paying tolls on net tonnage, 53.4
percent were of vessels of from 4,000 to 6,000 net tons, Panama Canal
measurement. Vessels under 1,000 net tons equaled 4.5 percent of
the transits, and 3.3 percent were by vessels of 10,000 tons and over.
The average tonnage of all transits was 5,390 as compared with 5,474
in the previous fiscal year, a decrease of 1.5 percent.
The following tabulation shows the ocean-going commercial ves-
sels, excluding naval vessels, in groups according to net tonnage,
Panama Canal measurement, segregated by nationality, with aver-
age tonnages and group percentages for the fiscal years 1935 and 1934.











REPORT OF GOVERNOR OF THE PANAMA CANAL


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REPORT OF GOVERNOR OF THE PANAMA CANAL 31

DUAL MEASUREMENT SYSTEM
The Panama Canal Act, August 24, 1912, authorizes the President
to prescribe and from time to time to change the tolls that should be
levied by the United States for the use of the Panama, Canal. This
act provides that if the tolls are not based upon net registered tonnage,
they should not exceed $1.25 per net registered ton as nearly as the
same may be determined, nor be less than the equivalent of 75
cents per registered ton.
Pursuant to the authority vested in him by Congress, the President
issued a proclamation under (late of November 13, 1912, which estab-
lished toll rates on commercial ships as follows:
1. On merchant vessels carrying i'ssCngeis or cargo, $1:20 per net vessel-ton,
each 100 cubic feet, of actual earning power.
2. On vessels in ballast without passengers or cargo 40 percent less than the
rate of tolls for vessels with passengers or cargo.
Under date of November 21, 1913, the President by further proc-
lamation prescribed and proclaimed that vessels using the Panama
Canal should pay tolls on the basis of the "Rules for the Measure-
ment of Vessels for the Panama Canal", these rules having been
carefully devised with a view to determining the actual earning
capacity of ships using the Canal.
Tolls on vessels popssing through the Canal were collected on the
basis of the Panama Canal rules of measurement for some time after
the opening of the Canal but, subsequently, upon a protest of certain
shipowners regarding charges on deck cargo, the question of the inter-
pretation of the act of Congress was referred to the Attorney General
for decision. He derided that the term "net registered tonnage" as
used in the act must be interpreted to mean the net tonnage of a
vessel as measured under the rules prescribed by the statutes of the
United States.
The effect of the above is that tolls on commercial vessels using the
Canal are levied at the rate of $1.20 per net ton on laden ships and
$0.72 per net ton on vessels in ballast on the basis of tonnage deter-
mined by the Panama Canal rules of measurement with the proviso
that the amount collectible shall not exceed $1.25 per net ton or be
less than $0.75 per net ton as determined under the rules of registry
in the United States. This requires that tonnage be determined and
tolls reckoned on two bases.
The Canal administration has been endeavoring over a period of
years to secure legislation which would eliminate the United States
registry measurement rules as a factor in the computation of tolls
charges on vessels using the Canal. The need for this legislation is
discussed at some length in section III of this report.
The Panama Canal rules of measurement were devised for the
express purpose of providing a just and equitable basis for the levying





REPORT OF GOVERNOR OF THE PANAMA CANAL


of tolls on vessels using the Canal. The United States registry rules
were not so devised and are unsatisfactory for this purpose. The
unsuitability of the United States registry rules as a basis for the
levying of tolls is amply illustrated by the fact that during the period
from 1917 to the present, when the net tonnages of vessels passing
through the Canal have been checked under both the Panama Canal
and the United States registry systems of measurement, the percent-
age which the aggregate United States registry measurement tonnage
has formed of the Pananima Canal net tonnage has declined from 81.08
to 69.87 percent. During this period the Panama Canal rules have
not been changed and the Panama Canal net tonnage has therefore
remained a constant factor. On the other hand, through structural
alter tions tha!t have not appreciably affected the earning capacity
of their vessels, shipowners have materially reduced the net tonnage
of their vessels under the United States registry measurement rules.
Through such alterations and the construction of new ships designed
with the view to keeping the United States registry measurement
tonnage at a minimum, during the past 18 years the aggregate United
States registry measurement tonnage has declined approximately
11 percent in relation to the Panama Canal net tonnage.
With a view to stopping the progressive lowering of the ratio
between actual earning capacity and the net tonnage as determined
under the United States registry measurement rules, several years
ago the Canal administration suggested the adoption of rates of $1
per Canal net ton for laden ships and 60 cents per net ton for ships
in ballast. The application of these rates to ships which passed
through the Canal during 1927 would have resulted in the collection
of less tolls from vessels of United States registry than were paid
under the dual measurement system while vessels of foreign registry
would have paid slightly more. Through the progressive -lowering
of net tonnage under the United States rules, however, by 1935 the
application of rates of $1 for laden vessels and $0.60 for vessels in
ballast, collected on the basis of Panama Canal net tonnage, would
have resulted in vessels of all nationalities passing through the Canal
in 1935 paying additional tolls of more than $3,000,000 as compared
with the amount collected under the dual measurement system.
For the tonnage passing through the Canal since 1927, the following
tabulation shows a comparison between the tolls actually collected
under the dual measurement system and the tolls that would have
been paid had tolls been levied on Canal net tonnage at rates of $1
per ton on laden ships and $0.60 per ton on ships in ballast. The
table shows tolls collections segregated between vessels of United
States and of foreign registry. It is to be noted that under the dual






REPORT OF GOVERNOR OF THE PANAMA CANAL 33

measurement system, the revenues lost to the United States have
benefited foreign shipowners more than United States shipowners.

Vessels of United States registry

Tolls which Increase
Tolls actually would have been
collected collected on pro-
posed basis Actual Percent

1927 .------------------------------- $12, 718,197.86 $12, 600,033.20 i $118, 164.66 10.93
1928 ------"-------------. ---------- 12, C.4:. 384.83 12,660,458.80 17,073.97 .14
1929 -------------------------------- 12, 2'0, 133. 14 12, 468, 843.00 172, 709.86 1.40
1930--------- ------------------------ 13,218,921. 62 13, 535,946. 60 317, 024.98 2.40
1931 "--"------------------------- 11, 424, 020. 30 11,881,786.80 457,766.50 4.00
1932 --,---------------------------- 9,747, ..6tu. 20 10,410,494.00 662,933.80 6.80
1933--------------------------------- 8, 9.32. 421 97 9,669,616.40 737, 194.43 8.25
1934 ----------------------------- 11, 186, 127.95 12,368,245.00 1, 182, 117. 05 10.57
1935-.. "---------------------------- 10,215,751.94 11,735,007. 60 1, 519, 255. 66 14.87

Vessels other than of United States ri:s//rq

1927 ----------------------------- $11. 4. '. $11, 056. 90 $214,001.15 1. 86
1928 ----------------------------- 1 14,563,251.70 284, 435.78 1.99
1929 ----------------------------- 1 1. 1. 9'.'2. '3 15, 508,063.60 693, 071.27 4.68
1930.-------.------------------------- .11,77..2 14,782,136.90 941,0519.58 6.80
1931 ------------------------------1.1 ') 5.7y 4r. 14, 21-. 691.00 1, 048, 112.44 7.94
1932 -----------------------------107,4.41 12, 0'7,411.80 1,080,267.39 9.87
1933. .----'-------------------------- 10,668,655.20 11,760,508.60 1,091,853.40 10.23
1934 -----------------------------12,861,055.49 14,119,508.40 1,258,452.91 9.78
1935-----------------------------13, 091,310.99 14,633,587. 10 1, 542,276. 11 11.78

I Decrease.

The tolls paid by the vessels of various nationalities using the Canal
during the fiscal year 1935 are shown in the following table, in com-
parison with the tolls which they would have paid on the basis of $1
per Canal net ton for laden ships and 60 cents for %vc-ssls in ballast.
In this table the traffic has been segregated to show general cargo
and cargo/passenger vessels, and the total of all commercial traffic;
the latter includes, in addition to the general cargo and cargo/pas-
senger vessels, oil tankers, and miscellaneous non-cargo-carrying
vessels such as yachts, foreign naval vessels, etc. There is also shown
the average per Panama Canal net ton of the tolls which were actually
collected on laden and ballast, traffic for the various nationalities.
On the assumption that the Paninma Canal rules for the determina-
tion of net tonnage are an accurate basis for the just levy of Canal
dues, it is obvious that the present use of the United States rules is
resulting in inequities and injustices, since the ships are not paying
at equal rates on net tonnage as determined under the Canal rules of
measurement, i. e., on their earning capacity. The table follows:










REPORT OF GOVERNOR OF THE PANAMA CANAL


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REPORT OF GOVERNOR OF THE PANAMA CANAL


HOURS OF OPERATION

Dispatching of ships through the Canal is conducted on schedules.
Vessels awaiting transit begin moving through the Canal from each
end at 6 a. m. and( dispatches are made thereafter from each end at
intervals of about half an hour. The following is a summary of the
arrangements in effect at the enl of the fiscal year:
From Cristobal harbor, first ship at 6 a. m., lIst. at about 3:30
p. m.; from Balboa anchorage, first ship at 6 a. m., last at 2:30 p. m.
This applies to vessels averaging 10 to 12 knots. In case a vessel is
capable of 15 knots, departure may be made up to about 3 p. m. from
Balboa, and 3:35 p. m. from Cristob:il.
Tankers with infliamuable cargoes are dispatched at the discretion
of the captain of the port and are not permitted to proceed unless theyN-
can clear Gaillard Cut before dark. Overloaded tankers crlrying
gasoline cargo are usually restricted to the early morning sciiedule';,
leaving at 6, 6:30 and 7 a. m., but may be tlispatvhled on other sched-
ules if traffic warrants.
The volume of traffic at pre-.neit is not such ;-; to make advisiable
continuous operations tliirouiliout the 24 hours of the day, or even
extensive night operation. Operations throughout the night would
not only involve gr!'1i^'Ir expen'i-c and increase the difficulties of mainte-
nance of locks and chann:lel, but involve hazards of navigation in
restricted channels under conditions of darki;nes, made worse by rains
and fogs. Fogs over the Cut and lake usually fall before midniiiglt and
are dissipated by 8 o'clock in tlie irniina..

LOCKAGES AND LOCK MAINTENANCE

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


Gatun




1934
July ----...-.------ 416 543
August------------- 428 558
Sepleinber.......... 438 558
October............. -------------527 721
November---------- 466 687
December---------- 457 586
1935
January------------- 430 576
February----------- 426 544
March-------------- 458 581
A.pril............... 436 581
M ay-................ 434 535
June------------- 400 523
Total ......... 5.31j 6.'.1'3
Fiscal year:
1930------------- 6. 135 7. 164
1931------------- 5, 571 6.477
1932-------------- 4 615 5.349
1933-------- ----- 4. 30 5,334
1934----------- 1 5, 3'5 6, 593


Pedro Mi-:ul1! Miraflores Total

I 42 527 49 (1 1's7; Ln( 1 -k.RAe2 \'t.iol1 Ioikrf;i0 \"F-elq


429 2 490 63 127 0


1 5.I49 0

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5, 2-H
4.,42
4,557
5, 507


6.3 SJ

7. 430
i7, W7
5.576
5, 53r.
6,745


1,304
1,337
1,611
1,433
1,384

1,316
1.320
1, 4 t,
1,338
1.328
1.23G


1,658
1,648
2,182
1,768
1,666

1,733
1.650
1,714
1,702
1.645
1, 616


5. -41 6,.. 37 16.2.S7 20.559

6.33S 7.431 909 22, 025
5. 7i3 6,651 17, 17, 1e. 795
4. 826 5. 575 14. 2-3 16. 500
4. 505 5. 5i 1 13. 442 16. 456
5,483 6,705 1 16,355 1 20,043






REPORT OF GOVERNOR OF THE PANAMA CANAL


In the fiscal year 1935 the average numbers of lockages per day
were as follows: Gntun, 14.6; Pedro Miguel, 15; Miraflores, 15. In
the fiscal year 1934, average numbers of lockages per day were as
follows: Gatun, 14.7; Pedro Miguel, 15.1; Miraflores, 15.
The average number of vessels locked per lockage in the fiscal year
was as follows: Gatun, 1.297; Pedro Miguel, 1.249; Miraflores, 1.247.
The average for the total of 16,287 lockages was 1.264 vessels.

ATLANTIC LOCKS

The operating shifts remained the same during the year except
temporary changes made on account of the transit of the United States
Fleet and during the overhaul. During the transit of the fleet 24-hour
double chamber operation was required. Arrangements were made
to make follow-up lockages in the east chamber throughout the
period, and to do this two towing locomotives were transferred from
the Pacific to the Atlantic locks.
Due to overhaul, 24-hour operation consisting of 5 operating crews
went into effect at 3 p. m. January 4, with operating crews assigned
for follow-up lockages in the east chamber for 8- and 6-locomotive
lockages from 7 a. m. to 11 p. m., and for 8-locomotive lockages from
11 p. m. to 7 a. m. Normal operation was resumed at 7 a. m. on
April 1, with the 3 normal shifts-7 a. m. to 3 p. m., 10 a. m. to 6
p. m., and 3 p. m. to 11 p. m., each manned for 8-locomotive operation.
During the change-over from west to east chamber, both chambers
were in service from 8:45 p. Inm. February 15 to 10:30 a. Im. February
20.
On account of heavy traffic, it was necessary to use part of the
maintenance force as operating crews 26 times during the year.
Exclusive of the extra hours worked during the passage of the fleet,
the operating crews were called upon for overtime work 30 times
during the year. This overtime ranged from 8 minutes to 1Y% hours,
totaling 15 hours and 20 minutes for the year.
Seventeen north-bound commercial ships were delayed a total of
2 hours, 26 minutes, ringing from 3 to 15 minutes; and 27 south-bound
commercial vessels were delayed a total of 3% hours, ranging from 2
to 20 minutes. No serious break-downs occurred during the year.

PACIFIC LOCKS

Operation continued on the same basis as the preceding year,
except during the transit of the United States Fleet when 24-hour,
double-chamber operation was required.
At Pedro Miguel one north-bound commercial vessel was delayed
12 minutes, and 8 south-bound commercial vessels, a total of 1 hour
and 4 minutes, ranging from 2 to 12 minutes. At Miraflores 19





REPORT OF GOVERNOR OF THE PANAMA CANAL


commercial vessels were delayed a total of 2 hours and 42 minutes,
ranging from 2 to 18 minutes; and 6 south-bound commercial ves-
sels, a total of 1 hour and 6 minutes, ranging from 3 to 30 minutes.
Monthly test operations were made of all emergency dams during
the year, and routine maintenance. and repairs were performed on
all machinery and equipment.

ATLANTIC LOCKS OVERHAUL

The quadrennial overhaul of the Atlantic locks started at 3 p. m.
on January 4, when the west. chamber was put out of service, and was
completed so that both chambers were in operation at 3 p. m. on
March 30. The total elapsed time was 85 days and the actual working
time 73 days. The west chamber was out of service for 47 days, the
east chamber 33Y days, and 4Y days were required in the change-over
from one side to the other. The extra force totaled 219 gold em-
ployees, while the extra silver force varied according to the need,
with 1,035 as the maximum number over the regular force.
Six guard valves and 52 of the 56 rising-stem valves were removed
and replaced by 30 spare valves and 28 of the old valves reconditioned.
In general, the valves were found in very good condition. None of
the cylindrical valves was removed or replaced, but after inspection
12 of the valve stems were taken out for repairs and then replaced.
The principal work on them consisted in replacement of rubber seals
and corroded bolts and nuts.
The principal work on the miter gates consisted in the removal
of the 4 lower operating gates, and the 4 guard gates in the upper
lock at the control house for replacement of all bearing plates, pintle,
pintle bushing, and installation of lubricating system for the latter,
replacement of yoke bushing and pins, and the replacement of miter
and bearing plates only on the 8 upper operating and guard gates.
In addition to the usual routine work on the gates, the drainage
systems of 24 leaves were modified to permit leakage into tlhe water-
tight compartments to.flow into the inspection compartment where
it can be removed by portable pumllps.
The usual painting of gates, valves, and other parts was done.
The condition of the old enamel as a whole v-was considered good and
had afforded protection as well as expected.
Three engineers, working under the supervision of the office
engineer, were detailed for duty at the locks during the entire over-
haul period to render engineering and inspection services.
POWER FOR CANAL OPERATION

The power system was operated throughout the year with a com-
bined generator output of 69,192,308 kilowatt-hours, as compa red with






REPORT OF GOVERNOR OF THE PANAMA CANAL


a combined generator output of 68,994,100 kilowatt-hours for the last
fiscal year. A total of 62,921,157 kilowatt-hours was distributed to
consumers as compared with 62,986,352 kilowatt-hours for the prev-
ious year. Transmission and distribution loss amounted to 6,271,351
kilowatt-hours, or 9.06 percent during the year, compared with a
loss of 6,007,748 kilowatt-hours, or 8.71 percent, during the previous
year.
The Gatun hydroelectric station operated throughout the year,
carrying the full load of the power system except at times of peak
loads and during March when tests were being conducted on the
generators at Madden hydrolectric station. The Miraflores Diesel-
electric station was maintained on a stand-by and peak-load service
during the year and was not required to be operated for the purpose
of conserving water in Gatun Lake. There were no interruptions
to service at either station during the year.
The Madden hydroelectric station was placed in operation during
March and was continued in operation during that month, during
which period a net total of 2,670,482 kilown t t.-hours was generated.
This period of generation was mostly for the purpose of conducting
tests, and the station has not since been operated because of the
lowering of Madden Lake.
Interruptions to trni mi-ion-line service during the year totaled
14, as compared with 8 for the previous year. Seven of these failures
were caused by lightning, 1 by a snake climbing the tower, 1 by a
crane coming in contact with the lines, 2 by blasting operations, 2
by operitinig errors, and 1 undetermined. Approximately 8 miles of
the line, beIt weoen Cristobal and Mindi and between Mariflores and
Balboa, was equipped with an additional ground wire over the middle
wire of each of the two transmission lines to reduce interruptions by
lightning.
Work was started in connection with the installation of two
5,333-kilowatt-ampere transformers at Balboa substation, which work
includes replacement of switch gear connected therewith and rearrange-
ment of switch gear for the synchronous condenser in that station.
These transformers replaced transformers at this station which had
become obsolete and of insufficient capacity for our present require-
ments. Modern metal-clad switch gear was installed at the Summit
substation, which apparatus repJneed obsolete switch gear there and
provided facilities for two new feeders for serving the new naval radio
station at Summit.
In all power plants and substations routine inspection and testing
of various installations were continued throughout the year.






REPORT OF GOVERNOR OF THE PANAMA CANAL 39

WATER SUPPLY

The inflow of water into Gatun Lake from all sources and the utili-
zation and losses of the water in the lake are summarized in the follow-
ing table. There are also shown the percentages which eachli item
formed of the total yield or total consumption. The data are pre-
sented for the fiscal years 1934 and 1935, the former for comparison.
Each year covers 12 months ending June 30, and thus embraces the
cycle of both a dry and a rainy season.

Billion cubic feet fiscal Percent of total fiscal
year- year-

1934 1935 1934 1935

Run-off above Madden Dam------------------------- 72.80 76.98 37.3 34.4
Yield from land area below Madden Dam------------- 80.46 102.29 41.2 45.8
Direct rainfall on the lake surface.---------------------- 42.02 44.05 21.5 19.8
Total yield----------------------------------- 195.28 223.32 100.0 100.0
Ev-apir'rtion from lake surface------------------------ 21.68 21.09 11.1 9.4
OGtun LAik.. lockages---------- ---------------------- 37.81 39.85 19.4 17.9
Hydroelectric power--------------------------------- 49.67 51.38 25.4 23.0
Spillway waste-----------------.-------------------- 75.03 106.80 38.4 47.8
Leakage and municipal------------------------------- 1.41 1.52 .7 .7


Tot.-il uses and losses---------------------------
Increase in storage------- -.--.----------------


185.60 220.64 95.0 98.8
9.68 2.68 5.0 1.2


Total------------------- --------------------- 195.28 223.32 100.0 100.0


Operation of the Gatun spillway during the fiscal year 1935 totaled
2,624 gate-hours, and of the Miraflores spillway, 427 gate-hours.
Lock culvert operations at Pedro Miguel totaled 10 hours.

DRY SEASON-1935

From a water supply standpoint the 1936 dry season began Janu-
ary 8 and( ended April 30, the total duration being 113 days. This is
9 days shorter than the dry season of 1934, and 18 days shorter than
the average dry season which begins about December 29 and ends
about TMay 8. The net yield (total yield minus evaporation) of the
Gatun Lake watershed was 1,120 cubic feet a second, or 32 percent
above the 22-year average of 846 cubic feet a second. The total yield
was 2,006 cubic feet a second of which 55 percent was furnished by
the inflow from the Madden Lake drainage area. The loss from
evaporation amounted to 44 percent of the total yield. The lowest
elevation of Gatun Lake was 84.62 feet on April 30. Had there been
no storage available in Madden Lake the Gatun Lake elevation would
have receded to 82.99 feet.
Water saving was not necessary during the dry season on account of
the draw-down of 19,796 million cubic feet from Madden Lake. This


24072-35-4






REPORT OF GOVERNOR OF THE PANAMA CANAL


amount of rainy season storage, equivalent to 4.34 feet on Gatun Lake,
was emptied into Gatun Lake during February and March. This
large amount of water could not be entirely absorbed by storage in
Gatun Lake and spilling at Gatun was necessary. Total spilling at
Gatun and by lock culverts at Pedro Miguel for water purification
purposes during the dry season, amounted to 2.71 feet on Gatun Lake.
The difference in spillage, 1.63 feet on Gatun Lake, was used for dry
season Canal requirements.
FLOOD WARNINGS
Responsibility for the control of Madden Lake was assuined by the
section of surveys on September 1, 1934. The filling of the reservoir
was begun on September 7 on a schedule providing for an increase in
reservoir elevation of 5 feet per week, with an allowable deviation of
2 feet above or below, which was maintained until the latter part of
November, when dry weather made it impossible to adhere to the
schedule. Heavy rains in the middle of December filled the lake to
elevation 236 feet on December 19. The lake was then regulated close
to elevation 235 feet until January 15, when further filling was begun.
Elevation 240 feet was reached on January 31, when the drum gate
were started and continued in operation until March 1.
Further emptying of Madden Lake through sluice gates and needle
valves was begun on March 13, and by March 28 the lake was com-
pletely drained. There was no storage of water in the reservoir
between that date and the close of the fiscal year because of the
necessity of making repairs to sluiceways and penstocks. Protection
of this work from floods has necessitated an extensive flood warning
service. An observer was moved from Peluca to Salamanca station
on May 5 to give a better check on the discharge of the Pequeni River.
Observers are also stationed at Candelaria and Chico stations, as the
long-range automatic recorders have not proved reliable.
MADDEN DAM PROJECT
Construction of the Madden Dam project was completed during the
year except for minor and special features, of which the more import-
ant are grouting of contraction joints in the main dam and ridge
tightening by injection of clay grout. The contract work on the
Madden Dam, power station, saddle dams, and highways over and
contiguous to the dam, which began on October 13, 1931, was accepted
as completed on February 9, 1935, 5 months and 16 days before the
expiration of the time fixed by the contract, including extensions
allowed. By the close of the year, the contractor had removed all
his equipment and buildings from the Madden Dam area.
Madden Dam division personnel engaged on construction and field
work were transferred to regular operation and maintenance divisions





REPORT OF GOVERNOR OF THE PANAMA CANAL


of the Canal effective April 1. The administration, office, and
drafting forces working on records, tests, and plans for new work
remained on the Madden Dam rolls until June 30. On this date the
NMadden Dam division was abolished and all employees transferred
to other divisions. The remaining work on the project will be done
by the regular divisions of the organization.

FORCE EMPLOYED

The average monthly working force on the Madden Dam project
is tabulated below:

Gold Silver Total

United States Government------------------------------------- 61 142 193
Contractors for dam--------------------------------------- 148 1152 2C00
Total----------------------------------. ------------ 294 893
I For first 8 months of fiscal year only.

Mr. John L. Savage, chief designing engineer of the United States
Bureau of Reclamation, visited the Madden Dam project during
October 1934 in the capacity of consulting engineer.

MADDEN DAM AND POWER PLANT

At the beginning of the fiscal year 1935 all of the mass concrete in
the dam had been placed. Unfinished work included the upper
portion of the power station walls and roof, completed in October; the
spillway bridge, completed in September; road and parapets over the
dam, completed in October; portions of the roads on left ridge dam
and to the north of the dam, completed in October, part of the pen-
stock trash rack structure; and the spillway crests; completed in
July 1934.
RIVER CONTROL AND MADDEN LAKE

The sluiceways and needle valve outlets were used to regulate the
river until the lake reached spillway level. On September 7 a gradual-
controlled raising of the lake was begun and on December 18 the first
water was allowed to flow over the crest of the spillway. Water was
held at or near spillway crest level until January 17 when it was
gradually raised, reaching elevation plus 240 on January 31 and a
maximum of 240.36 on February 3. On February 12 the lake was
lowered, held at spillway crest until March 13, when it was gradually
emptied, reaching bottom on March 28.
Observations were made during the raising of the water level, in
and about the dam, on the wet ted side of the narrowest portions of the
right bank, and on the dry sides of both the right and left banks.






REPORT OF GOVERNOR OF THE PANAMA CANAL


While the lake was being lowered, acceptance tests were made on the
turbines in the power station.

CAVITATION IN SLUICEWAYS

After the lake was drained, an inspection of all sluiceways revealed
cavitation in those which had been operated for considerable periods
under high heads of water. The cuttings reached a maximum depth
of 19 to 20 inches and exposed and loosened the reinforcing bars above
the sluiceways. Sluiceways 5 and 6 were repaired by adding bell-
mouth entrances to their upstream end. Repairs to the other sluice-
ways were incomplete at the close of the fiscal year.

MECHANICAL AND ELECTRICAL WORK

At the close of the fiscal year there were in place some 705,000
pounds of trash rack metal work. During the year an additional
amount of 492,000 pounds was installed, and this work is now
complete.
By the end of the fiscal year 1934 the placing of the 3 penstocks
and 2 outlet pipes was completed and the bituminous protective
coating applied to their interior surfaces. There still remained
numerous leaks at joints and around rivets through which water
entered from the outside to cause blistering and peeling, and these
were repaired by welding, calking, and grouting operations.
The five 132-inch butterfly valves were completed by installing
electrical circuits and painting; to prevent damage, which might
result from the overtravel of their gear segments, bumping posts were
designed and installed. The two 84-inch needle valves were com-
pleted and put into operation; a newly designedd breather manifold
was made and installed. The four 100- by 18-foot spillway drum
gates were completed by assembling, adjusting, pl-iinting and welding;
installing and adjusting control appara t us, and placing in operation
the remote electrical controls.
The installation by Government forces of the hydraulic turbines,
generators, switchboard, governors, and outdoor apparatus, including
transformers, high-tension switching system, oil circuit breakers, and
lightning arresters, was completed during the year. The transmission
line and switching equipment had been energized by February 19.
Both generators had been placed under load by March 6 and remained
in practically continuous service until March 26. Tests of the hydrau-
lic turbines were satisfactory and they were authorized for acceptance
on May 9.
Installation was started in August 1934 of equipment for cooling
the mass concrete of the dam through the system of pipes installed for
grouting the contraction joints. After completion and testing, opera-





REPORT OF GOVERNOR OF THE PANAMA CANAL


tion was started on April 30 but discontinued on May 3 due to the
silt content in the river water resulting from emptying the reservoir.
Observations were made throughout the year on uplift pressures
under dam, temperature of concrete, strain in and shrinkage of con-
crete. Tests were run to determine friction losses, rate of discharge,
water hammer, and efficiency of air-vent piping for penstocks and
outlet pipes; torque curves for butterfly valves; efficiency, capacity,
and speed regulation of hydraulic turbines; pressure in needle valves;
discharge, friction losses, and efficiency of air inlets for sluiceways;
pressures in sluiceway during spillway flows; and inv; uizrements of leak-
age through sluice gates; water pressure along center line, efficieiny of
air inlet, pressure along crest, writer surface over crest; rates of dis-
ch;are, and a comparison of paints used for drum gates. Tests were.
also made to determine water pressure. ;a':i:inst spillway piers, and
against spillway training wall, velocities and pressiires against spill-
way apronl. Measlurenients were mad'l of erosion downstream from
spillway apron and down-tream from nIee;le, valve outlet-s. Tests
and observations were made of differential pressures in turbine scroll
cases and in outlet pipe reducing sections; also of currents in Madden
Lake, and chemical analysis of Madden Lake water.

SADDLE DAMS AND ROADS

Only maintenance work was done on the saddle dams. As the
grass plantelI on the earth slopes had rooted and formed a good
protective surface -nainst erosion from rain, a vury small amount of
gullies needed filling. No grass wa;s nilnted on *adldle Dam No. 10,
but it showed no material erosi'in as its expo._ed slope was small.
On s-addle Danm No. 11 gravel was placed on the water side earth
slope, completing it to the top.
All concrete highways contiguous to the dam Nwere completed and
from them narrow wagon roads, roughly graded and suirf:ced with a
run-of-bank gravel layer 12 inches thick, were extended along both
the right and left banks of the river. The road on the right bank gives
access to two saddle datnms and the clay grouting work and is 4,906
feet in length. The one on the left bank gives access to 11 saddle
dams and is 11,344 feet in length.

RIDGE TIGHTENING

Ridge tightening by injection of clay grout, was continued through-
out the year and was incomplete at the close of the fiscal year.
The future program will be more fully determine after further
study by geologists. During the past year operations were confined
to area no. 2 and sink hole no. 20, near it. A shaft was sunk to give
access to sink hole no. 20 cavern and inspections revealed that the
grout formerly forced into the branrlwics from the cavern had, to some






44 REPORT OF GOVERNOR OF THE PANAMA CANAL

extent, leaked into the cavern. After repairing the barriers between
the cavern and the branches the work was finally completed in May.
The estimated total grout placed in sink hole no. 20 this year is
3,3'27.4 cubic yards, and to date, including prior years, is 7,363.4
cubic yards.
The grouting prlgraml for area no. 2 was gradually extended by
adding holes toward the south. The procedure did not change from
the previous year, the gravel road expediting the work and lessening
the cost of transportation. The total grout injected during the
fiscal year in area no. 2 is estimated to be 7,983 cubic yards, and
for prior fiscal years 13,473 cubic yards, giving a total to date of
21,4.''h cubic yards.

EARNINGS, DEDUCTIONS, AND PAYMENTS

The thirty-seventh and final payment, to the contractors for Madden
Dam, amounting to $145,287.82, was made on March 16, 1935. The
total contract payments amounted to $4,492,379.24. The contractors
took exceptions to the aiwount paid and made additional claims under
47 items to an aggregate amount of $469,456.04.

MAINTENANCE OF CHANNEL AND IMPROVEMENT PROJECTS
In addition to the mainten:iiice of the Canal cliainnel, dredgling
activities during the year included auxiliary dredging at Coco Solo,
Cristobal drydock slip, and around the steamship Wi con -o, grounded
in Gatun Lake; also at Chame and in the Chagres River in connection
with sand and gravel operations.
Excavation during the fiscal year is summn arized in the following
table:

Maintenance
Location-Canal prism dredging
Earth Rock Total
Atlantic entrance: Cubic yards Cubic yards Cubic yards
Maintenance---------------------- ------------------1,555, 000 -------------- 1, 555,000
Project no. 11----------------------------------------- 29,203 26,000 55,200
Gatun Lake:
Maintenance ------------------------------ ---------- 670,250 29,000 699,250
Project no. 3----------------------------------------- 571, 400 88, 000 659,400
Gaillard Cut:
Maintenance (including slides) ------------------------- 156, 450 313,800 470, 250
Project no. 3---------------------------------- ---------- 52,950 206,900 259,850
Project no. 5----------------------------------------- 46,500 160,700 207,200
Project no. 9.-------------- --------------- -- -------------- 11, 150 11, 150
Project no. 13------------------------------------------ 650 4, 050 4, 700
Pacific entrance (maintenance)------------------------------ 72,500 -.-----.-.--- 72, 500
Total, Canal prism..--------------------------------- 3, 154, 900 839,600 3,994, 500
Cristobal inner harbor (maintenance)----------------------- 1,205,000 126,100 1,331, 100
Cristobal Drydock slip------------------------------------ 24,600 35, 620 60,220
Fleet air base, Coco Solo------------------------------------ 10,600 210, 500 221, 100
Grounded steamship Wisconsin (Gatun Lake)..-------------- 15,200 15,300 30,500
Chagres River gravel service ------------------------------- 534,600 ------ ----- __ 534,600
Total-.-------------- ---------------------------- 1,790, 000 387, 520 12,177,520
Grand total---------.----------------------------4,944, 900 1, 227, 120 26, 172, 020
I In addition, 7,000 cubic yards of Cham6 sand were produced by the crane boat Atlas.
2 In addition, 220,800 cubic yards of rehandled material was excavated; 37,500 cubic yards from the Atlan-
tic entrance on project no. 11, and 183,300 cubic yards from Gatun Lake maintenance.






REPORT OF GOVERNOR OF THE P.ANAMA CANAL


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

Canal prism Auxiliary Total

Earth Rock Total Earth Rock Total Earth Rock Total

Cubic Cubic Cubic Cubic Cubic Cubic Cubic Cubic Cubic
yards yards yards yards yards yards yards yards yards
Northern--.- 3,963,,.1.0 336,400 4,299,950 50,400 261,420 311, 820 4,013,950 597,20 I 4, r11, 770
Central..--- 256 096, 600 953. 150--------- ----------------- 2. 550 696, f.ul V '..' 150
Southern .--- 72,500 ---------- 72, .1 ....... ......... ........ 7.500 ---------- 372,600
Total..- 4,292, I:ti1 1,033,000 5,325,600 50,400 261,420 311,820 4.31.3,000 1, 294,420 5,637,420

I Does not include 220,800 cubic yards of rehandled material.
2Does not inlu.ll1 .' .1.n00n riiic yards of Chagres River 'rAvel production of which 201,000 cubic yards
was run-of-baik gr.i\il in .iuL.I phi and 333,600 cubic yards of uncover excavation.
'Does not ine!u'lu 7,i.klis cut ic yards of Cham6 sand produced.

CANAL IMPROVEMENT WORKS

Project no. 1.-This project, consisting of deepening the Pacific
entrance channel from Miraflores Locks to the sea buoys, including
the Balboa inner harbor from -45 feet to a ruling depth of -50 feet
(mean sea level datum) was begun in 1924. Projects 1-A and 1-B,
Pacific entrance, and project 1-A, Balboa Harbor, were subsequently
authorized as outlined in the annual report for the fiscal year 1931.
There was no dredging on project no. 1, Pacific entrance, or Balboa
Harbor, during the 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. S.-This project consists of widening the channel at the
north entrance of Gaillard Cut and extending northward, terminating
at the south end of Gamboa Reach. Work on this project was started
during September 1929. During the year a total of 919,250 cubic
yards was excavated in the Gaillard Cut and Gatun Lake sections of
this project, and at the close of the year excavation was 93 percent
completed.
Project no. 5 (rerised).-This project, which involves widening the
Gaillard Cut approach to Pedro Miguel Locks, was started in Decem-
ber 1930. Excavation during the year amounted to 207,200 cubic
yards, the work on the project. being 86.8 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. There was no work performed





REPORT OF GOVERNOR OF THE PANAMA CANAL


during the year, and at the end of the year excavation on this project
was 73 percent completed.
Project no. 9.-This project, which consists of widening the channel
fronting the West Culebra slide, w.as started during June 1928.
During the fiscal year a total of 11,150 cubic yards was excavated on
this project, completing same in December 1934.
Project no. 11.-This project, which consists of removing a number
of shoals in Limon Bay, was started in September 1934. During the
year a total of 55,200 cubic yards was removed, and excavation was
8.3 percent completed at the close of the fiscal year.
Project no. 13.-This is a new project, authorized in October 1934.
It consists of widening the entire Culebra Reach of Gaillard Cut by
200 feet; that is, from a minimum of 300 feet to a minimum of 500
feet bottom width, with suitable easements into the Cucaracha
Reach on the south and the Empire Reach on the north. The
principal objects sought by the proposed improvement are: (a)
Virtual elimination of the danger of complete channel closure in
the section most susceptible to slides; (b) iniproved alinement and
maneuverability at the intersection of the Cucaracha and Culebra
Reaches; (c) to provide a section in the Cut suitable for use in passing
large vessels now accorded a "clear cut" or one-wz-y traffic intr-val,
as well as to facilitate passing normal traffic under conditions of night
operation. Although this is an independent project, it will fit into
any subsequent project involving the widening of the entire Gnillard
Cut if that should be found necessary in the future. Work on this
project was inaugurated in January but was carried forward only
intermittently during the remainder of the fisc;il year, the work done
consisting principally of drilling and bli-ting large boulders lying on
the west bank within the project limits, together with a limited
amount of subinqueous drilling and blasting through drill boat opera-
tions. A total of 4,700 cubic yards was excavated on this project
and excavation was 0.1 percent, completed at the close of the fiscal
year.
MAINTENANCE
Gaillard Cut.---Three dipper dredges worked 12 1 days, 11%( days,
and 15j( days, respectively, on general clean-up work in Gaillard Cut
during the year, excavating a total of 105,900 cubic yards of earth
and rock from this area. The material removed by the dipper
dredges was loaded in hnrges and dumped north of Gamboa.
Atlantic entrance, Cristobal Hairbor, and Gatn Lake.-Excavation in
the Atlantic entrance and Cristobal Harbor areas by pipe-line suction
and dipper dredges amounted to a total of 2,886,100 cubic yards.
This material was dumped as follows: 1,264,000 cubic yards on the
north side of the east breakwater, 291,000 cubic yards on Washington


46





REPORT OF GOVERNOR OF THE PANAMA CANAL


Shoal, 1,138,600 cubic yards on Telfers Island, and 192,500 cubic yards
at sea. In the Gatun Lake sector of the Canal channel a total of
1,228,800 cubic yards of material wv;s removed by pipe-line-suction
dredge, consisting of rock, clay, silt, and gravel, all of which was
pumped to the proposed Gamboa indu-ltrial area and town-sitet fills.
Also, 283,550 cubic yards of earth and rock were excavated from
Gatuin Lake by dipper dredges. With the exception of 183,300 cubic
yards overcast on the Gamboa industrial area, all of this material
was loaded in svows and dumped north of Gamnboa.
PacfIfic entrance, Balboa Harbor, and Mliraftores Lake.-A total of
72,500 cubic yards of silt was removed from the Pacific entrance
channel by the crane boat Atlas equipped with outboard suction drag
which was deposited in a barge and dumped at sea. No dredging
was performed in Balboa Harbor or Milnnolres Lake during the year.
SLIDES
Culebra slide extension (east) and west Lirio slides were the only
two areas that produced movements threatening the channel and in
both cases immediate dredging operations prevented any appreciable
encroachment on the channel.
Culebra slide (west) was in slow continuous movement throughout
the year. Early in December a large mass of solid basaltic rock,
estimated at between 150,000 and 200,000 cubic yards, broke away
from the face of Zion Hill but moved only a very short distance.
The following excavation in slide areas was performed during the
year:
Lirio 4.ide (east).-A dipper dredge worked in this slide 2 days,
removing a total of 11,800 cubic yards.
Lirio .slide (west).-A dipper dredge worked in this slide 13% days,
removing a total of 82,250 cubic yards.
Barge repair .lide (east).-A dipper dredge worked in this slide 1Y2
days, removing a total of 9,950 cubic yards.
CuOebra slide efrtension (east).-A dipper dredge worked in this slide
6% days, removing a total of 35,950 cubic yards.
CuOvlebra slide (irest).-Two dipper dredges worked in this slide
respectively for 9 and 28% days, removing a total of 149,800 cubic
yards.
Culebra slide (cast).-Two dipper dredges worked in this slide
respectively for 7 and 6% days, removing a total of 74,600 cubic
yards.
The total slide excavation for the fiscal year amounted to 364,350
cubic yards.
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.






48 REPORT OF GOVERNOR OF THE PANAMA CANAL

Slide prevention by correction of improper drainage conditions
was continued throughout the year with ditching operations in Lirio
Lagoon. Routine inspection was made of all slide areas throughout
the year with a daily drag of the Canal channel fronting all active
slides. Monthly observation of reference points in all principal slide
areas was maintained.
AUXILIARY DREDGING
Fill for fleet air base, Coco Solo.-The dipper dredge Cascadas broke
up and overcast 141,000 cubic yards of coral rock in the Coco Solo
borrow pit. The Las Cruces excavated 80,100 cubic yards of this
material and pumped it to the Coco Solo fleet air base hydraulic fill.
Cristobal Drydock slip.-The dipper dredge Cra.scd:Js and the crane
boat Atlas excavated 60,200 cubic yards of earth and rock from the
Cristobal Drydock slip. All of this material was loaded into scows
and dumped at sea.
SUBSIDIARY DREDGING DIVISION ACTIVITIES
At the Chagres River gravel plant at Gamboa 43,926 cubic yards
of sand and gravel were on hand at the beginning of the year. During
the year 39,760 cubic yards were shipped and 201,000 cubic yards
were reclaimed by dredging. There was an inventory adjustment of
4,420 cubic yards of large stone waste, leaving 200,746 cubic yards of
run-of-bank gravel on hand at the close of the year. The gravel
plant was relocated during the year and the new plant was placed in
operation June 25, 1935.
The work of removing floating obstructions and water hyacinths in
Gaillard Cut, Miraflores and Gatun Lakes was continued throughout
the year. The number of hy;:-inth plants destroyed during the year
by pulling or spraying was estimated at 35,826,750. The use of
arsenic and soda for spraying in Gantun Lake was discontinued in the
month of March, and in all Canal w\a teir in June. Experiments were
under way with other solutions at the close of the year.
Log booms were maintained at the mouths of the Chagres and
Mandingo Rivers to prevent hyacinths, trees, and other floating
obstructions from drifting into the Canal during freshets. Driftwood,
amounting to approximately 1,500 cords, was burned along the river
bank during the dry season.
The crane boat Atlas pumped 7,000 cubic yards of sand into barges
at Chalinmn' and delivered it alongside the Balboa coaling station un-
loading dock for use of the supply department. The 250-ton floating
crane Hercules, equipped with heavy steam hammer, drove the con-
crete piles for new Army mine dock at Naos Island. During February
the dipper dredge Gamboa excavated 30,500 cubic yards of material
from around the steamship Wisconsin, aground in Gatun Lake, and
then assisted in pulling the ship into deep water.





REPORT OF GOVERNOR OF THE PANAMA CANAL 49

EQUIPMENT
During the year a new 1,000-yard sump scow and a new hydraulic
grader were delivered to the dredging division by the mechanical
division, the latter replacing grader No. 3. Other additions included
a derrick barge and a silt barge, the former being transferred from the
Panama Railroad Co. and the latter being a converted sand barge for
use in connection with dredging activities of the crane boatAtlas. The
crane boat Atlas was equipped with gear for operating as a dredge
of the seagoing suction dredge type. The launch Gar was received
from the United States and put in service.
The following floating equipment was employed during the fiscal
year: Three 15-yard dipper dredges, Cascadas, Gamboa, and Paraiso,
operated 2.8 months, 6.1 months, and 3.1 months, respectively.
The 24-inch pipe line suction dredge Las Oruces was in service 11.4
months during the year. The crane boat Atlas was operated as a
dredge for 1 month and made 7 trips to Chame for sand and was used
for the remainder of the fiscal year in transportation, towing, rigging,
and miscellaneous services. Hydraulic grader No. 3 was operated for
3 months. Drill boat Terrier No. 2 was operated 10 months and the
drillboat Tcreldo No. 2 was operated 2 months during the year. Air
compressor No. 29 was operated 10.3 months. Derrick barge No.
157 was operated 0.5 month. Excavator No. 1 was operated 6.7
months, and excavator No. 2, 5.5 months. The 250-ton cranes
Ajar and Hercules were operated on alternate months excepting when
calls for extra, service required the commissioning of both cranes.
Three large t ug- were operated during the year as well as nine launches.
The Diesel ferryboats President Ruosectlf and Presidente Amnador were
engaged in operation of the ferry service at Balboa during the year.
GAMBOA DREDGING STATION AND TOWNSITE
A new dredging station and townsite is being developed at Ganmboa
located at the junction of the Chagres River and the Canal, in con-
nection with proposed transfer of dredging division headquarters from
Paraiso to Gamboa.
The entire project involves the installation of new water-front
facilities to replace those at Paraiso, including shop buildings, store-
houses, repair dock and small boat landings. Quarters and commu-
nity buildings are required, together with water and power lines,
sewerage system and roadways. The existing water-front facilities,
repair shops and other buildings at Paraiso are in urgent noted of
replacement and the new dredging station will be located at the most
advantageous point available, both from the standpoint of main-
tenance of the Canal and the security of moored equipment, as the
new station is between any possible point of closure of Gaillard Cut,






REPORT OF GOVERNOR OF THE PANAMA CANAL


from slides, and spoil dumps in Gatun Lake; and in addition, equip-
ment moored or under repairs will be protected from damage by
transition vessels in contrast with the existing exposed conditions
at Paraiso. Similarly, practically the entire town of Paraiso is in
need of rebuilding, as all of the buildings are over twenty years old
and many of them were erected during the French construction
period.
The removal of the dredging station to Gamboa will permit the
eventual abandonment of Paraiso as a town and evacuation of
quarters in Pedro Miguel, Ancon, Balboa, Red Tank, and La Boca
now occupied by dredging division employees will provide additional
facilities needed for locks employees and others.
The new town is intended primarily for the forces of the dredging
division, both gold and silver, but will also furnish homes for employ-
ees of the lighthouse division and such incidental employees as are
necessary, such as doctors, police, and firemen. Gold quarters will
be built on the hills lying to the east of the present Panama Railroad
station, and silver quarters will be built on the flat land to the north.
The dredging division shops and offices will be built on the bank of
the Canal, opposite the silver townsite.
The period of construction has been set at 3 years, at the end of
which time it is hoped that quarters will have been provided for
about 180 Americans and 630 native workers and their families.
Grading was started on March 1, 1935, and shortly thereafter
street paving, sewer work,- and water lines were begun. Spoil
dredged from the Canal was used for filling and grading portions of
the townsite area.
FERRY SERVICE
Ferry service across the Pacific entrance of the Canal, connecting
La Boca, Balboa, and Panama City on the east bank of the Canal
with Thatcher Highway on the west bank, was operated by the
dredging division throughout the year. The ferries made a total of
11,310 round trips during the year, carrying 5,947 Panama Canal,
10,038 United States Army, and 187,235 other vehicles. Passengers
carried totaled 1,052,663, as compared with 926,617 during the
preceding year.
AIDS TO NAVIGATION
A number of improvements and adjustments were made in the
lights, buoys, beacons, etc., maintained as navigational aids for
vessels operating in the Canal and adjacent waters. A gas buoy,
painted with black and red horizontal stripes, was established in 28
feet of water 500 yards southwest of the Coco Solo mole, marking a
23-foot shoal. Gas buoy no. 95, flashing white, was established in
42 feet of water near stat ion 1440, east, at Gamboa. Three gas






REPORT OF GOVERNOR OF THE PANAM.A CANAL


buoys, flashing white, were establi-lied in Gaillard Cut to mark the
east prism line of the Canal. Gas buoy no. 94 was established on the
east prism line of the Canal near station 1482, cast., and gas buoy no.
96 was established at station 1493, west, both flashing red. A gas
buoy marked Gamboa, flashing red, was established in 40 feet of
water on the site formerly occupied by beacon no. 30, at Gambon,
and the beacon discontinued. For the benefit of aircraft using the
Folks River area of Manznanillo Bay, an occulting green light was
established on the southern shore of Folks River directly northeast
from Silver City, in the Atlantic. sector. Throughout the year the
lighthouse subdivision continued the care and upkeep of 133 gas,
253 electric, and 272 unlighted aids to navigation in the Canal and
adjacent waters.
At Isla Grande Lighthouse two new Diesel-engine-driven genera ting
sets were installed during the latter part of November 1934, dis-
placing the obsolete kerosene-engine sets formerly used. At the
request of the Commissioner of Lighthouses, United States Depart-
ment of Commerce, the chnra cteristic of the Jicarita Island Light-
house was changed June 9, 1935, to flashing white 1.5 seconds' dura-
tion every 15 seconds, with short intermediate flashes every 2 seconds.
The lighthouse tender U. S. S. Farrirte made four visits to this light
and to the light at Morro Puercos during the year.
In connection with the study of fog conditions in the Canal now
being conducted under a systemized plan supervised by the fog com-
mit.tee, there are in process of construction a series of 14 experimental
fog lights. Installation is on the east bank of the Canal from sta-
tion 1675 to station 1710 in Gaillard Cut. These lights are spaced
250 feet apart on a special power line to be independently operated
by a switch in the signal station.
ACCIDENTS TO SHIPPING
The board of local inspectors conducted investigations and sub-
mitted reports on 28 accidents of a marine nature occurring to ves-
sels either in transit or in the terminal ports of the Canal, as com-
pared with 34 last year and 26 the year before. Classification of
the 28 accidents shows the following: Struck docks, 5; struck Canal
bank, 4; line fouled propeller, 4; struck lock wall, 3; anchor damaged
submerged cables, 2; damaged by wash of passing vessel, 2; grounded,
2; sunk, 1; fouled by another vessel, 1; hose burst while fueling, 1;
struck submerged object, 1; broke bitt, 1; explosion and fire, 1.
In August 1934, the Japanese stenmer Venice Maru, outward
bound from Balboa, discovered fire in her liold and returned to
Balboa. The Panama Canal salvnae tug Farorite, assisted by other
Canal craft, extinguished the fire by midafternoon of the following
day. The steamship IHairlbing September 18, 1934, and was lt'wed to Cristobal by the Farritle.






REPORT OF GOVERNOR OF THE PANAMA CANAL


The Farorite also towed the Peruvian steamer Maranon to Cristobal
after it had radioed for assistance, from latitude 9.29 north, longitude
78.10 west., on January 4, 1935, and on January 21, 1935, picked up
a disabled United States Navy seaplane and crew of five near Iguana
Island, off Cape Mala. The steamship Wiscnysin went hard aground
in the Canal during a fog, about 500 feet south of the Darien radio
station, on the morning of February 17, 1935. With the assistance
of dredging equipment, this vessel was refloated on the morning of
February 20.
METEOROLOGY-HYDROLOGY-SEISMOLOGY

Precipitation.-Rainfall for the calendar year 1934 averaged, in
general, above normal. Annual totals for Canal Zone and vicinity
for the calendar year 1934 ranged from 74.44 inches at Panama
airport (Paitilla Point), Republic of Panama, to 157.56 inches at
Porto Bello. During the year the maximum precipitation recorded
in 24 consecutive hours in the Canal Zone and vicinity was 9.82
inches at Cristobal on November 16 and 17. The average precipita-
tion in the Pacific section was 82.17 inches; in the central section,
110.14 inches; and in the Atlantic section, 145.04 inches.
Air ibinipe latures.-The maximum and minimum temperatures of
years of record at various stations, revised to June 30, 1935, and the
annual average temperature for the years of record, are shown in
the tabulation following:

Maximum Minimum
Station Annual Years of
average record
0 F. Date 0 F. Date

Balboa Heights--------------- 97 Apr. 7,1912 63 Jan. 27,1910 78.7 29
Alhajuela------..-------------- 98 Apr. 13,1920 59 an. 30,1929 78.5 24
Gatun-----------..------------ 95 2 4,1933 66 Aug. 7,1912 80.4 24
~May 21,1925
Cristobal--.....- -.-.. .....-.... 95 66 Dec. 3,1909 80.0 27


The average air temperature for the calendar year 1934 was, in
general, below normal. April was the warmest month and Novem-
ber the coolest.
Winds and humidity.-The annual wind movement in the Canal
Zone for the calendar year 1934 was below normal. March was the
month of greatest average wind velocity and October the month of
the lowest. The mean relative humidity of the atmosphere for the
calendar year 1934 was about 84 percent on the Pacific coast and 81
percent on the Atlantic. March was the month of least average
relative humidity and October the greatest.





REPORT OF GOVERNOR OF THE PANAMA CANAL


Tides.-For the calendar year 1934 the maximum high tide at
Balboa, 10.6 feet above mean sea level, occurred on August 22 and
September 25; the maximum low tide, 10.6 feet below mean sea level,
occurred on February 16. The greatest daily range, 20.1 feet, also
occurred on February 16. At Cristobal the maximum high tide, plus
1.39 feet, occurred on December 15; the maximum low tide, -1.11
feet, occurred on June 13, and the greatest daily range, 1.96 feet,
occurred on June 26.
Seismology.-Two hundred and forty-four seismic disturbances were
recorded at the Balboa Heights seismological station during the cal-
endar year 1934. One hundred and nine of these disturbances were
of comparatively close origin, about 250 miles distant, 15 of which
were generally felt in the Canal Zone and vicinity. Twelve were of
distant origin, and 123 were so slight that no estimate could be made
of their epicenter. Eighty seismic disturbances were recorded in
July 1934, all of which (with the exception of a slight tremor on July
7, with its epicenter at 60 miles distant) composed a series of earth-
quakes from a southwesterly direction at an approximate distance of
about, 200 to 250 miles from our station. They were felt throughout
the Republic of Panaina and the Canal Zone. Of these quakes, only
two were strong enough to trip into action the motor of the new
strong-motion accelerometer, which had just been installed. Con-
siderable damage occurred at David and Puerto Armuelles, Republic
of Panama. The disturbance at 10:40:04 Greenwich mean time
on July 21 (not recorded by strong-motion accelerometer) felled
about 15 of the United Fruit Co.'s quarters at Puerto Armuelles,
destroyed the outer end of the Panamanian Government's wharf,
and badly damaged the remainder. The quake also felled a large
water tank at that place. No damage occurred to any Canal struc-
ture. Seventy-six seismic disturbances were recorded during the
first 6 months of 1935. Of these, three were felt generally in El
Volcan region and city of David, Republic of Panama.
Fog conditions.-The committee on fogs, composed of the assistant
engineer of maintenance, the superintendent of dredging, and the
port captain, Balboa, continued its studies of the possible interrup-
tion of Canal traffic in Gaillard Cut and elsewhere, due to the occur-
rence of fog. These studies look to the future when 24-hour operation
of the Canal will be required and have the following purposes in
view:
(a) To determine the average number of hours that Canal shipping
will be delayed in transit; (b) to establish a standard of measurement
by which it can be stated definitely that fog conditions are safe or
unsafe for Canal navigation; (c) to devise some economical means of
lighting or other plan that will permit safe navigation during periods
of fog; (d) to keep the Canal abreast of advances made elsewhere.






REPORT OF GOVERNOR OF THE PANAMA CANAL


During November and December 1933, and from September to
November, inclusive, 1934, observers were stationed in the Cut and
numerous observations were made, supplemented by actual naviga-
tion tests. From a combination of these reports it became fairly well
established that fog conditions become dangerouss to navigation when
channel lights are obscured for a distance of 1,000 feet. Little has
been accomplished in the way of devising a means that will permit
safe navigation in heavy fog,but experimental work will be continued.
It is planned to experiment with searchlights and bank light improve-
mnents during the coming year, and negotiations are under way for
the purchase of photoelectric and searchlight apparatus for recording
the density of fog.
TRANSIT OF UNITED STATES FLEET
The United States Fleet made the tninsit southbound, sta-irting
with the entrance of the first destroyer at Gatun at 12:01 a. m. October
24, and was conimpleteI with the clearing of the lst auxiliary at
Miraflores at 4:01 p. m. on the 25th, a total clapedl time of exactly
40 hours. The transit of the fleet required 45 lockages, and was
immediately followed by 22 lockages of commercial ships south-bound
and then 23 lockl*:1s north-bound and 13 south-bound. These lock-
ages were completedI by midiiiht of the 26th-27th and conditions
were back to normal on the morning of the 27th.
The transit of the fleet was made without major incident. Two
lampposts, one at Gatun and one at Pedro Miguel Locks, were
knocked down and an arrow signall slightly (lamanti-l at Gatun. The
maneuver again demonstrated( the preparedness of the Canal to meet
extraordinary peaks of demand for service of this nature with a
minimum of delay and inconvenivnee to commeercizil shipping and
offered an opportunity to perfect further the details of operation
under such conditions.
RULES AND REGULATIONS
The rules and regnilitions for the navigation of the Panama Canal
and adjacent w.iters, effective January 1, 1926, issued under Executive
order of September 25, 1925, and reprinted as of August 1, 1931, were
supplemented by the promulgation on March 1, 1935, of Supplement
No. 6 to these regulations. Supplement No. 6 supersedes Supplement
No. 4 of February 15, 1934, and prescribes regulations for the trans-
portation of hazardous cargoes in Canal Zone waters. Under the
provisions of 1lhis supplement the admeasurers at the terminal ports
have been delegated to make the necessary examination of vessels
transporting i dangerous cargoes, with the chief fi(dmeasurer, Balboa,
as .oorliniating officer for the transmission of report on each vessel
of this type to the office of the marine superintendent. The Pilot's
Handbook, issued in 1930, has been revised and was in the hands of
the printer at the close of the fiscal year.












SECTION II


BUSINESS OPERATIONS
The business enterprises carried forward by the Canal and by the
Panama Railroad Co. embrace a number of activities which in the
United States would normally be carried on by private initiative.
These activities have been developed either to meet the needs and
demands of shipping passing through the Canal, or to meet the
needs of the organization and its force of employees. The business
enterprises include those sections of the Canal and railroad organi-
zations which are engaged in the supplying of fuel, provisions, ship
chandlery, and repairs to vessels and of food, clothing, and other
essentials to Canal and railroad employees; the handling of cargo and
allied operations; and the operation and management of the Panama
Railroad and of the steamship line operating between New York and
the Isthmus.
For accounting purposes, the Canal and the railroad organizations
are separate but in administration and performance of work they are
united and under the central control of the Governor of the Panama
Canal.
PANAMA CANAL BUSINESS OPERATIONS
The profits, or excess of revenue over expenses, for the business
activities of the Panama Canal amounted to $1,021,216.61 for the
year, as compared with $1,366,755.12 for the fiscal year 1934, or a
decrease of 25.3 percent. Of the indicated excess of revenues over
expenses in 1935 the sum of $144,851.74 is due to impoundings of
percentages of salaries and -wages in accordance with the economy
act. During 1934 this figure Nwvas $596,554.74. The profits were
made principally in the electric light and power system, the shops
and drydocks, the fuel oil plants, and storehouse operations. The
results are presented in some detail in table 26 in section V.
In the accounting of profits and losses of the business activities there
is no actual interest charge on the money invested in these plants and
their equipment. This investment totaled $26,776,633.32 at the
beginning of the fiscal year and $29,067,383.76 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,
to accord with existing contracts and 1% percent on the shops at
55
24072-35---5






REPORT OF GOVERNOR OF THE PANAMA CANAL


Balboa, which for reasons of national defense were made somewhat
more extensive than the needs of commerce require) plus relatively
slight amounts representing variations in supplies on hand. This
theoretical capital charge for the fiscal year 1935 was $773,700.57
(table 20, sec. V). The profits of $1,021,216.61 exceeded this
amount by $247,516.04.
Based on the figure of $26,776,633.32, representing fixed property
and equipment alone at the beginning of the year, the profits counted
at $1,021,216.61 showed a return of 3.81 percent.
MECHANICAL DIVISION
The mechanical division has jurisdiction over the mechanical and
marine shops, drydocks, car shops and roundhouses at Balboa and
Cristobal; the design, construction, and major alteration of hulls and
machinery of propelled and nonpropelled floating equipment of the
Panama Canal, Panama Railroad, and commercial business, except
the electrical work; the design and technical matters of the railway
rolling stock and of propelled and nonpropelled floating craft involving
naval architectural subjects for the hulls and marine engineering
subjects for the operating machinery; repairs to all equipment,
floating or otherwise, of the Canal, railroad, and commercial business
requiring mechanical or marine shop or drydock facilities, except
electrical and automotive repair; the railway car inspection including
repair of rolling stock, hostling, and manning the railway wrecking
outfit; the maintaining of inspection services including tests and
repairs except electrical and marine boilers for Canal and railroad for
passenger and freight elevators, for weighing scales and measuring
devices (scales, pumps, meters) and for clocks, typewriters, and
similar instruments; manufacture and distribution of compressed air,
acetylene, oxygen, and hydrogen; and the fabrication of such machin-
ery or equipment, floating or otherwise, spare parts, etc., as in the
opinion of the Governor may be more economically or expediently
made on the Canal Zone than purchased elsewhere.

MARINE WORK
IfMarine work continued to constitute the major source of revenue
for the division, providing 60.34 percent of the total work completed
(luring the past fiscal year and 64.27, 60.55, and 64.25 percent for the
3 preceding fiscal years. As to the source of the marine work,
the Panama Canal furnishes the greatest part of the work, as the
time is past since work for commercial vessels and for the Navy
contributed an overshadowing share of the total income.






REPORT OF GOVERNOR OF THE PAN.AMA CA.NAL


Repairs to commercial res.tds.-Repairs to commercial vessels con-
sisted principally of urgent repairs to vessels transiting the Canal.
For the first time in many years there was no large renewal of a ship's
bottom either at Balboa or at Cristobal. Unless a ship's itinerary
is confined to this part of the world, the Canal shops are unlikely
to be called upon to make periodical overhauls or extensive rcpHNirs
of vessels as the demands are largely confined to emergency or run-
ning repairs. The more important work handled for commercial
shipping included the following:
In February, the steamship Coya was drydocked at Balboa after
having been ashore on the Central American coast, and althoiughl
she had suffered heavy damage over most of her bottom, tempora ry
repairs only were authorized.
In March, extensive engine repairs were effected at Balboa on the
motorship Cellini. The engine had to be taken apart and removed
from the ship down to the bed plate to permit rebuilding of the
crankshaft. One new stub end and a new crank web were forged
and fitted to the shaft; the forging for the latter being so heavy that
the 600-ton forging press at Balboa was barely able to cope with it.
The heavy flywheel on the engine was also loose and its hub had to
be reconditioned. On reinstalling the crankshaft the engine was
thoroughly realined. This was the most important machinery repair
job of the year at either plant, its cost amounting to about $25,000.
The American-Hawaiian Line motorship Mi'ssourian was over-
hauled at Balboa, having burned out all the main bearings on one
engine. Several forms of makeshift staying and bracing of the engine
were in place to prevent the weaving of the engine on its base, due
to the age of the ship and the consequent loss of the original rigidity
of its support. Structural reinforcement under the engine was
recommended by the mechanical division as a permanent measure,
but emergency repairs only were desired by remetalling and refitting
the bearings with a superior grade of babbit.
Work of lesser importance included renewing the foremast and
booms of the motorship Santa Monica which had been crumpled by
excessive roll and lurching of the ship while removing a heavy boat
carried as cargo; a new tail shaft and propeller blades were installed
on both the motorship Ilindanger and the steamship Flmnar; propeller
blades were renewed on the steamships Yosha Maru, Columbian,
K. R. Kingsbury, Santa Cecilia, and Tacoma. Star; drydocking and
under-water hull repairs were performed for the motorship Stdll
Mfaris, steamship Perene, and the cableship All America; both under-
water hull repairs and propeller repairs involving drydocking were
performed on the steamships Cerigo and Urubamba.






REPORT OF GOVERNOR OF THE PANAMA CANAL


Repairs to inmrlt res-s(ls.-Witb the reopening of the Cristobal
drydock, the bulk of the repair work for the Navy has shifted from
Balboa to the Cristobal shops, because of the convenience of the
latter to the submarine base at Coco Solo.
The volume of naval repair work declined as compared with pre-
vious years, and the outlook for fiscal year 1936 is for a further de-
cline as five of the submarines based at Coco Solo which were in
need of heavy repairs were recently sent to the United States for
decommnissioninig. The effect of this action not only is unsettling
but it will result in varying the work load at Cristobal to such a
degree that it probably will necessitate a reduction in force at the
Cristobal shops.
The work performed for the Navy during the year included the
following: Minor repairs and docking were completed on the U. S. S.
Trenton and the U. S. S. Taylor of the Special Service Squadron; the
U. S. S. Hannibal and the survey tenders accompanying her, the YP41
and YP42, were overhauled. Drydocking and extensive overhauls
were performed for the following naval vessels: U. S. submarines
S-10, S-11, S-13, S-15, S-16; barges YO-11, YF-225; houseboat
YHB No. 1; and dragboats No. 7 and No. 8. Interim dockings and
light repairs were given U. S. submarines S-12, S-14, and S-48, and
to the U. S. S. Mallard and U. S. S. Teal.
Rpi w'1 s: to Army vessels.-At the Balboa shops the Army transport
Republic was docked, a broken propeller blade removed and new one
fit ted in its place; running repay i rs were made to the transports Chateau
Thierry and Ludington, and the mine planter H. 0. Sch uin in was dry-
docked and given a general overhaul. In addition to the foregoing,
drydocking and/or overhauls were given the following equipment of
the Army: D. B. L-55; inspection boat Q-2; M. P. Graham; M.
P. Getty; and AlM. V. MAy-.ii Lewis.
Repairs to father G6frmiumi(l vessels.-This work included the dry-
docking and ovcerhalillng of the U. S. lighthouse tender Acacia and
changing her propeller; and the drydocking and overhaul of the
U. S. Coast Guard cutter Nemaha.
R(1pi' is to fore4'ni lii'r ,i iin nt vessels.-At the Balboa shops routine
drydocking and incideint;ol overhaul of the Peruvian cruisers Almir-
ante Cirtn and Ali/rnuiiite Villar, gunboat Parinas, and submarines
R-1, R- 2, R-3, and R-4 were performed. The machinery repairs on
the A ;1r/rantfe V'illar, including docking and repair expense, exceeded
$30,000. For the Mexican Governiment, the new Mexican Coast
Guard cutters G-20, G-21, G-2?., and G-23 were drydocked and their
bottoms cleanedl and painted. The Colombian Government
destroyers Anlt;iquli and Odda.,s were drydocked and given major
overhauls.






REPORT OF GOVERNOR OF THE PANAMA CANAL


Marine work for Canal divisions.-A new 1,000-yard steel dump
scow, from N. R. A. funds, totaling $121,566.31, and a new floating
hydraulic grader known as "grader No. 4", costing $130,765 plus addi-
tions for features added to original design, were completed at the
Balboa shops for the dredging division. A new self-dumping silt
barge was built for the same division at Balboa at a cost of $42,679.96,
and cast-steel hawse pipes for the self-housing anchors of the crane
ship Atlas were manufactured and installed. Heavy overhaul and
partial reconstruction were performed on dredging division 1,000-
yard barges 106, 118, 132, 133, 135, 136, 137, and 138. Drydocking
at Balboa and annual overhaul were given dredging division dredges
Paraiso, Cascadas, and Las Cruces, drillboat Terrier No. 2, and t.ugs
Bohio and Trinidad. Two new main dredging pumps were made for
the.Las Cruces, the casting for the bottom half of the casing for this
pump being the largest steel casting (about 7 tons) ever produced
in the Canal shops. The casting for a cutter head for the dredge
Las Oruces exceeded the maximum capacity of the foundry and had
to be cast in 2 sections, the 2 sections being later welded together
by electric welding. This is the first attempt with this type of con-
struction and if the cutter stands up satisfactorily in service, it is
anticipated that future cutter heads will be manufactured by the
mechanical division.
Construction was begun at Balboa on two Diesel electric tughbots,
the Arraijan and the Alhiajuela, the estimated cost for both being
$536,500, or $268,250 each. A new 50-foot launch, the Pato Real,
was built for the marine division at Balboa, and a 30-foot launch, the
Paja II, for the police department.
OTHER WORK
The usual amount of light and heavy repairs was afforded locomo-
tives of the Panama Railroad. In addition, locomotives were over-
hauled for the United States Army and for the dredginr division.
During the year a large number of surplus Panama, Railroad cars was
retired and scrapped. These included fifty-five 30-ton box cars,
thirty-five 50-ton box cars, 9 Ilabor cars, 67 flat ciars, 9 gondola cars,
19 log cars, 4 ballast cars, twenty-five 12-yard steel side-dump cars,
and thirty-six 19-yard steel side-dump cars.
During the first half of the fiscal year, a large number of repair
parts was manufactured or reconditioned for use during the overhaul
of the Atlantic Locks, and the building of a new electric towing loco-
motive for the locks was begun. A Inrge niiiiount of imiteriul was
manufactured for Madden Dam. Welded-steel concrete forms of a
complicated nature were devised and manufactured for use in placing
concrete bellmouths intended to stop the erosion that was found
taking place at the upstream openings of the sluice gates at Madden






REPORT OF GOVERNOR OF THE PANAMA CANAL


Dam and flexible circular bulkheands were made to go over the bars
of the sluice gate trash rack to permit unwatering the pair of sluice
openings which were worked upon.
Incidental to dredging of gravel supply from the bed of the Chagres
River above Gamboa, the railroad wrecking cranes and wrecking
outfits removed the middle section of the Gamboa bridge (weighing
60 tons) and deposited it on a barge to permit the dredge Las Cruces
to pass upstream and then replaced the bridge without delaying
passenger service. The operation was repeated to permit the return
of the Las Cruces upon the completion of the gravel operations.
PLANT IMPROVEMENTS
A 35-ton crane for service on the drydock wall and fitting out pier
at the Cristobal shops was designed at Balboa and brought to about
70 percent completion during the year (estimated cost $88,500).
This crane will have a capacity of 35 short tons at a 55-foot working
radius from the center of the 16-foot gage track on which it travels,
which amounts to about 45 feet reach over the side of the drydock or
fitting out pier.
In order to protect the Balboa and Cristobal shop areas from
trespass and depredations, it is planned to enclose both areas with a
steel mesh fence, with overhanging barbed wire at the top. This
work was partially completed at the close of the fiscal year.
The remainder of the pier of timber construction at the Cristobal
shops, known as Dock 14, was completed, the crane tracks laid on it,
and the pier was used during the latter part of the year. Of the 800
feet contemplated for concrete Pier 15 at Cristobal shops, 375 feet
remain to be completed, and it is hoped that funds can soon be se-
cured to permit building the remainder of this much-needed pier.

TREND OF WORK
The trend of the work in the mechanical division is downward as
is shown clearly by the accounts. Increased labor costs under the
40-hour week law has added appreciably to the cost of marine repair
and other work performed in the Canal shops, and as a result the
work performed for private shipping is being restricted for the greater
part to emergency or running repairs.
Notwithstanding the falling off in marine repair work, the transfer
of a considerable number of men to the locks for the overhaul during
the first 4 months of the calendar year 1935, and of a smaller number
to Madden Dam over a longer period, made it possible to provide
steady employment throughout the year for practically the entire
force. As there will be no overhaul of the locks during 1936, it
follows that unless there is an increase in marine repair or other






REPORT OF GOVERNOR OF TIHE PANAMA CANAL 61

work, it will be necessary to resort to furloughs or to reduce the force
during the next fiscal year.
During the year, the forces of only the machinists and car repairers
were slightly increased. The increase in machinists was due to
making up some of the attrition which has been going on for several
years; and the increase in car repairers was caused by the necessity
of resuming heavy repairs to freight cars, which class of work had
been previously suspended for some time. There has been almost
an absence of transfers into or out of the mechanical division and few
resignations. It is noteworthy that in a gold force of over 400
employees, only 1 individual resigned or otherwise voluntarily sepa-
rated himself from employment during the year.

FINANCIAL

Due to a change in accounting procedure, the 1935 figures pertain-
ing to revenue received are not strictly comparable with corresponding
figures for previous fiscal years. This is because of change instituted
of making monthly billings of amounts due instead of billing at the
end of the job. Due to that accounting change, the table showing
revenues for the fiscal year 1935 includes a carry-over from work
performed during the fiscal year 1934, making it somewhat inaccurate
for comparison with previous years and, moreover, it conveys the
impression that the quantity of work held up somewhat better than
was actually the case.
Without making allowance for the change in accounting practice,
the value and class of work done, and the sources of the same, for
1935 and for the 2 previous fiscal years, are shown in the following
table:


1933 1934 1935

Class of work completed:
Marine------------.....------------------------- $1, 780, 519. 25 $1, 598, 155.48 $1, 883,362. 23
Railroad------------------------------------------ 430,051.40 309,030.68 370,207.80
Fabricated stock -------------------------- ----- 340,737. 30 129,758.38 247,239.27
Sundries------------------------------------- 384,429.67 449,817.77 488, 821.33
Total--------------- ---------------------- 2,935, 737.62 2,486,762.31 2, 789, 630. 83
Origin of work completed:
Panama Canal---------------.. -----------------1,386,288.93 1,239,810.51 1,539,242.45
Panama Railroad I---------------.... ------------------ 448,735.58 332, 019. 20 377,617.96
Other United States Government departments---- 779,517.95 551,067.96 467,217.39
Outside interests------------------------------- 322, 195. 16 363, 864.64 405, 552.84
Total------------------------------------- 2,935, 737.62 2,486,762.31 2,789,630.63

1 The revenues from thePnonama Railroad Co. include the rreiving ainl forwarding agency, coaling plants,
commissary division, plantations, and Hotels Tivoli and Washington, as well as work for the railway activ-
ities. The revenue from the Panama Railroad Steamship Line is included with''outside interests."

The total expenditures of the mechanical division amounted to
$2,553,321.93, which is $62,682.21 less than the preceding year. The






REPORT OF GOVERNOR OF THE PANAMA CANAL


flat-rate activities of the division, which include the drydocks, found-
ries, locomotive cranes, automobiles, etc., earned profits totaling
$65,581.14 and the Canal expense surcharge yielded a profit of
$841,393.89. The net earnings of the mechanical division after deduct-
ing $72,536.94 for authorized replacements were $51,232.21. There
was no revision of wages during the year, and machine-tool rates
remained as in the previous year.

ELECTRICAL INSTALLATION AND REPAIR WORK
The principal activities of the electrical division are the operating
and maintaining of the hydroelectric and Diesel-electric power
pl ants, substations, transmission lines, and power-distribution sys-
tems; the operation and maintenance of telephone, telegraph, electric-
clock, fire-alarm, and railway-signal systems; the operation and main-
tenance of Gatun Spillway and Madden Dam; and the installation
and maintenance of such electrical equipment as is required by other
divisions of the Canal or other departments of the Government, and
by such commercial vessels as may require electrical work performed
while transiting or calling at the Canal. The total expenditure of the
electrical division for the year was $1,221,801.26, which included
$492,159.73 for maintenance and operation of the power system;
$573,642.59 for construction and maintenance of electric work sec-
tion; $116,859.64 for the maintenance and operation of the telephone
section; and $35,050.79 for the maintenance and operation of the
railway-signal section. Economy act savings totaled $21,791.99.
Work was started during the year in connection with the installa-
tion of two 5,333-kilovolt-ampere transformers at Balboa substation,
which work includes replacement of switch gear connected therewith
and rearrangeimen t of switch gear for the synchronous condenser in
that station. Modern metal-clad switch gear was installed at the
Summit substation; this apparatus replaced obsolete switch gear at
this station and provided facilities for two new feeders for serving
the new naval radio station at Summit. Approximately 8 miles of
the transmission line, between Cristobal and Mindi, and between
Miraflores and Balboa, were equipped with an additional ground
wire over the middle wire of each of the two transmission lines. The
addition of this second ground wire is to further reduce interruptions
to the transmission line service by lightning.
Considerable underground dis tribution work for electric power and
lighting, telephone, and street lights was performed in connection
with the 1935 building program at Gatun. At the time of raising and
rebuilding the Randolph Road, the duct line along it was also rebuilt.
The 11,000-volt overhead pole line to Coco Solo, which parallels the
road, was relocated in part to eliminate road crossings. In connec-
tion with the flood-warning system for long-distance transmitting,






REPORT OF GOVERNOR OF THE PANAMA CANAL


indicating and recording of water levels between Madden Dam and
stations at up-river points, two multiple-conductor armored sub-
marine cables were laid on the bed of Madden Lake to replace two
temporary pole lines. The 11,000-volt pole line from Summit sub-
station, serving dredging activities along the Canal was rerouted to
clear the navy radio reservation at Summit. The transfer of the
restaurants to the bureau of clubs and playgrounds necessitated con-
siderable change in the location of electrical cooking equipment at Bal-
boa. The Ancon restaurant building was altered to accommoda te not
only the restaurant but also the clubhouse with its diversified activities.
A total of 398 jobs was completed in the marine electric shops for
Government vessels and commercial vessels calling at or transiting
the Canal, 247 of which were handled at the Pacific terminal and 151
at the Atlantic terminal. Among the more important of these.jobs
were the installation of the electrical equipment in the new hydraulic
grader built by the mechanical division; the overhaul of the electrical
equipment on the dredge Las Cruces; and the annual overhaul and
necessary repairs to electrical equipment on the submarines U. S. S.
S-10, S-12, S-14, S-16, and S-16 for the United States Navy.
Other electrical work included the wiring and fixture installation in
the 72-room bachelor quarters in Cristobal and one type 108 official
quarters in Colon Beach, and the conversion of Building 1728,
Cristobal, for use of the constructing quartermaster as an office
and shop.
Installation of electric ranges and water heaters in Panama Canal
quarters was continued throughout the year, and at the end of theyear
there were 125 of the two-burner type, 1,833 of the four-burner type
and 9 of the six-burner type.

PURCHASES AND INSPECTIONS IN THE UNITED STATES
The principal purchases of supplies for the Panama Canal have been
made by the Washington office, as heretofore. 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 purchases for the Panama Canal during the present fiscal year,
they have acted as receiving and forwarding agencies for materials
which have been purchased by the Washington office for forwarding
to the Isthmus through their respective ports. The office of assistant
purchasing agent at New Orleains was abolished in November 1933,
and the assistant freight traffic mnn;aiger of the United Fruit Co.
continued to act for the Panama Canil as receiving and forwarding
agent in connection with material and supplies forwarded to New
Orleans for transshipment to the Isthmus. The Panama Canal,
medical section, New York General Depot, United States Army,
Brooldyn, N. Y., has continued, as heretofore, to make purchases of






REPORT OF GOVERNOR OF THE PANAMA CANAL


the principal medical and hospital supplies which are used by the
Panama Canal on the Isthmus, these purchases being made upon
requests from the Washington office, which are 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 materials
in the United States covering purchases where delivery is required on
the Isthmus. This force also makes final inspection of materials
where delivery is made in the United States. The large majority of
purchases are, however, made for delivery on the Isthmus in accord-
ance with the long-established policy of permitting competition for
the Canal's requirements on even terms in all sections of the country.
The field officers of the Corps of Engineers, United States Army, the
National Bureau of Standards, the Bureau of Mines, the Bureau of
Chemistry of the Department of Agriculture, the Medical Department,
United States Army, and the Bureau of Construction and Repair
and Bureau of Engineering, Navy Department, have also assisted in
connection with the inspection work in the United States. The total
number of orders placed in the Washington office during the year was
8,104, being an increase of 1,343 as compared with the fiscal year 1934.
The number of orders placed during the present fiscal year is the largest
placed during any fiscal year since 1920, and also exceeds the number
of orders placed during any fiscal year since 1904 (when construction
work was begun), with the exception of the fiscal years 1916, 1917,
and 1920.
The total value of orders placed in the Washington office during the
year was $4,215,332.12, as compared with $3,201,636.97 for the fiscal
year 1934. The grand total of purchases by the Washington office
since the year 1904 is $224,675,612.71. This grand total does not
include the amount covered by orders placed by assistant purchasing
agents at New York and New Orleans and by the Panama Canal,
medical section, New York General Depot, United States Army,
Brooklyn, N. Y., but includes orders issued by the Washington office
only. The total value of orders placed by the above-mentioned
agencies during the fiscal year 1935 was $70,018.46 and the total of
such orders covering the period from 1904 to June 30, 1935, is
$4,323,617.98.
The sale of surplus Canal material by the purchasing department in
Washington during the fiscal year 1935 amounted to $3 based on one
sale order. Four sale orders were placed during the previous fiscal
year, amounting to $74,000.37.
The assistant comptroller's office prepares all vouchers for pay-
ments to be made in the Washington office; keeps all records relative
to payments and financial transactions; conducts correspondence





REPORT OF GOVERNOR OF THE PANAMA CANAL


relative to payments of claims; has charge of collections; examines and
approves transfer settlements; gives the disbursing clerk's accounts
an administrative examination before submission to the audit division
of the General Accounting Office; prepares the statistical data re-
quired to show the distribution of the expenses of the Washington
office, claims division, for settlement; prepares all contracts and bonds;
has charge of all work in connection with deposit for tolls made with
Federal Reserve banks; and passes upon all legal questions involved
in the transactions of the business of the Washington office of the
Panama Canal. During the fiscal year, 10,853 disbursement vouchers
amounting to $4,390,387.51, were prepared, and 295 collection vouch-
ers were prepared, amounting to $193,949.74. In addition to the
collection vouchers, 9 collections aggrega t intg $10,274.52 were made by
transfer of appropriation through the General Accounting Office,
making the total amount collected $204,224.26, on 304 accounts.
Change in iquarters.-On June 25, 1935, the Washington office began
an enforced move from the quarters which it occupied in the Munit ions
Building since 1924 to new quarters in a five-story building located
at 1435 K Street NW. This building is inadequate to properly house
the Washington office, and it was necessary to assign to this office
additional space for storage in a warehouse located about a block
away.
SHIP CHANDLERY AND OTHER STOREHOUSE SUPPLIES
During 1935, the operation of the storehouse was continued under
the same general policy as in previous years. On June 30, 1935, the
book value of stock on hand at all storehouses was $4,229,033.79 as
compared with $3,488,060.69 on June 30, 1934. The total value of
all materials received on requisition from the Uniited States wns
$4,186,608.15. Local purchases were made totaling $3S2,972.74.
Scrap and obsolete stock remaining on hand at the end of the year
totaled $15,477.15. During the year, 208 net tons of Anmerican scrap
iron were sold in the local market.
The general storehouse at Balboa (including the medical storehouse)
and the branch storehouses at Cristobal and Parniso luindled a total
of 126,168 requisitions and foreman orders during the yezur. Material
and supplies sold to steamships, employees, and others aggregated
$730,939.07. The sales to steamships amounted to $48,730.33,
involving 1,724 sales, an increase over the previous year of $20,564.34.
Of the increase, $12,554.67 was handled at the general storehouse,
Balboa, and $8,009.67 at Cristobal.
A new one-story steel and concrete oil paint storehouse, 62 by 200
feet, was erected at Mount Hope during the year.
Native hardwood lumber operations were continued in the Canal
Zone, and 185.699 board feet of logs at $35 per thousand board feet






REPORT OF GOVERNOR OF THE PANAMA CANAL


were purchased. Cement consumption for the year amounted to
6S,93S barrels.
For the year's operations, revenues exceeded expenditures by
$111,852.07 (see table 26, sec. V).

OBSOLETE AND UNSERVICEABLE PROPERTY AND EQUIPMENT
Duriri L the year disposition was made by sale, or by destruction
where the itc-ms had no money value, of obsolete or unserviceable
property and equipment which had an original value of $577,654.67.
Replacements were made as necessary.

FUEL OIL, DIESEL OIL, GASOLINE, AND KEROSENE

Fuel and Diesel oil.---All deliveries to and from tanks, for private
companies as well as for the Panama Canal and the United States
Navy, are handled through pipelines and pumping plants of the
Pa nama Canal. The total fuel and Diesel oil handled by the Balboa
and Mount Hope plants, including both receipts and issues, aggre-
gated 9,713,542 barrels, as compared to 9,710,246 for the preceding
year. The operations are shown in detail in the following tabulation:

Balboa Mount Hope Total

Barrels Barrels Barrels
Received by the Panama Canal---.-----------------------... 169,639.34 274,251.86 443,891.20
Used by the Panama Canal. .-- ----------------------.-- 126, 271.69 260, 457. 58 386, 729.27
Pumped for individuals and companies-------------------- 3,224,262.37 5,589,590.67 8,813,853.03
Sold by the Panama Canal ----------------------------------- 10,247.40 11,084.31 21,331. 71
MlliscellIaeoiu s transfers ---------------- ------------------ 35,453.19 12,284.24 47,737.43
Total receipts, deliveries, and transfers---.-------. 3, 565,873.98 6,147, 668.66 9, 713, 542.64


The number of ships discharging or receiving fuel oil (including
Diesel oil) during the year tot;alel 1,765, of which 62 were Panama
C iin;i craft.
i.vil;im, and kerosene.-Bulk gasoline and kerosene received on the
Intniiiis during the yo-cir totaled 3, 449,268 and 1, 005,138 gallons,
respectively.
StI.1iVgr facilities.-During the fiscal year the Union Oil Co.
completed the erection of a 2,900-barrel kerosene tank at the Balboa
tank farm and the Union Oil Co. completed a 59,000-barrel tank for
Diesel oil at the NMount Hope tank farm. The Asiatic Petroleum Co.
dirsmantild a 55,000-barrel tank and erected in its place an 80,000-
hbareol citup.eiity tank for Dioecl oil at Mount Hope.







REPORT OF GOVERNOR OF THE PANAMA CANAL


BUILDING CONSTRUCTION AND MAINTENANCE
The principal projects of building construction and repair work
completed during the year consisted of one gold family quarters,
Colon Beach; high school and junior college, Balboa; elevation to 7
feet of 48 type 17 frame cottages in Balboa and placing thereunder
concrete footings equipped with termite prevention plates; painting
exteriors and roofs of many gold quarters, all districts; extensive inte-
rior painting of gold quarters, all districts; addition and alteration to
Balboa clubhouse for restaurant purposes; new gasoline filling station,
Cristobal; converting Pedro Miguel restaurant building into district
quartermaster's office and post office; and the conversion of the
concrete restaurant building, Ancon, into a combined clubhouse and
restaurant.
Work on the following projects is now under way and will be com-
pleted during the fiscal year 1935-36: New roof onPierNo. 7,Cristohbal;
new roof, ventilators, and skylights on Dock 9 Annex, Cristobal;
repairing of 23 silver family apartments at Camp Bierd, Cristobal;
new copper roof on Cristohal retail commissary; truck shed, Cristobal
corral; constructing extension and placing new roof on Panama Rail-
road local freight house, Panama; and burglar-proofing of gold family
quarters in the New Cristobal area.

TERMITES
The work of prevention of damage to frame buildings by termites
was continued. All gold family cottages on Morgan Avenue and
Plank Street, Balboa, which were elevated and equipped with concrete
footings and closed garages underneath, were protected against ter-
mite infestation by placing metal plates between the new concrete
posts and the frame superstructure, the same as is done with all new
composite construction. This method is proving very successful in
termite prevention and resulting in a aIrge saving in maintenance
expense. Periodical inspections are made and where damaged, prompt
attention is given to rebelning and soldering of the metal plates as a
precaution against termite infestation.

QUARTERS FOR EMPLOYEES
Gold employees.-The family quarters situation, as far as number of
apartments is concerned, is comparatively easy. However, many
employees and their families are qun rtered in old houses where expend-
iture for further mi;iintenance is false economy. Last year, 15 new
family apartments were erected at Gatun and at the present time 50
new family apartments, 16 bachelor apartments, and one 16-room







68 REPORT OF GOVERNOR OF THE PANAMA CANAL

bachelor qua rters are under construction by contract, which will leave
about 85 old family apartments at Gatun that should be replaced.
It is propo-e.ed to erect 57 more new family apartments at Gatun during
the fiscal year 1935-36.
Silrer ermpli'yees.-For a number of years an item of $95,000 was
included in the Panama Canal appropriations to cover the annual
deficit, incurred in connection with silver quarters operations. This
item was eliminated for the fiscal year 1934 and necessitated severe
curtailment of maintenance work on such quarters. As funds available
were insufficient for necessary maintenance work, a flat increase of 15
percent in rental rates was made August 1, 1934. Subsequently a
survey of all silver quarters was undertaken with a view to adjusting
rental rates so as to provide sufficient revenue to place these quarters
on a self-sustaining basis. All buildings were measured, and new rental
rates were established as of July 1, 1935, with consideration given to
the desirability of the quarters, the amount of floor space therein, and
an equitable distribution of the costs of water, electric current,
garbage removal, etc. All but a few of the houses for silver employees
are of frame type construction and ordinarily contain from 4 to 12
apartments of two rooms each. Under the new rental rates effective
July 1, 1935, the two-room apartments in the new or standard type
houses will rent from $6.75 to $8.50 per month, which includes the
cost of water and electric current used by the occupants, and general
upkeep of the quarters.
The demand for family quarters from silver employees is greatly
in excess of the facilities available. On June 30, 1935, there were
2,854 family apartments; 610 rooms for bachelors; 218 beds or cots
and 585 bunks in barracks. At the close of the year, there were 1,262
applications on file for quarters from these employees. Over 50 per-
cent of the silver employees must, of necessity, reside in Panama City
and Colon where rental rates are considerably higher than those
charged for Government quarters in the Canal Zone.

REPLACEMENT OF QUARTERS FOR AMERICAN EMPLOYEES
About 10 years ago cost records, etc., indicated that the cost of
maintaining the oldest frame quarters for American employees had
reaclied the point where recplhcnlen t was the most economical pro-
cedure. Some of these old quarters were built by the French Canal
Co. and by the Punninn Railroad before the United States acquired
the Cuanl Zone in 1904. There were also in use a large number of
construction c;mp type of frame houses built during the first years of
AnIericin operations and large numbers of similar houses built prior
to 1915. Some of these were re-erected houses which had been moved
from towns that were abandoned upon completion of construction
work. It was realized that their replacement would require an exten-






REPORT OF GOVERNOR OF THE PANAMA CANAL


sive construction program over a period of years. The matter was
placed before Congress and the first appropriation for replacement of
quarters for American employees was made for the fiscal year ended
June 30, 1927.
The first types of quarters designed and built for the permanent
force were of concrete. On account of the large first cost of concrete
buildings, designs were resorted to of concrete columns and first-floor
beams with wood frame structure above. After experience in the con-
struction and maintenance of various types of houses, and after giving
consideration to original cost, upkeep, etc., the wooden structures
supported on concrete beams have been adopted as standard, and are
preferred by a majority of the employees. Concrete types are being
retained for bachelors' quarters.
It is believed that the present scale of rental charges will be suffi-
cient to cover depreciation as well as all other costs of maintenance
and operation once the old frame buildings are replaced by the newer
types.
The following is a summary of the new quarters constructed and of
the old quarters remaining to be replaced after the current fiscal year.











REPORT OF GOVERNOR OF THE PANAMA CANAL


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REPORT OF GOVERNOR OF THE PANAMA CANAL


The quarters to be built at the new townsite of Gamboa constitute
a replacement of old quarters in other districts from which employees
will be transferred to Gamboa.
The total cost of constructing the quarters between 1927 and 1936,
inclusive, shown in the table, including the estimated cost of complet-
ing the quarters to be built during the fiscal year 1936, has been
$4,878,824.26, not including townsite extension, general grading, or
exterior electrical work. The construction cost includes necessary
furniture installed in the quarters.
It is estimated that it will cost about $6,000,000 to complete the
replacement of the 524 family and 644 old bachelor apartments
shown in the table as in need of replacement. This includes about
$500,000 for grading work, road, sewer, and water line replacement,
and contingencies, such as probable price increases for material as
business recovers. So far as the Panama Canal is concerned, it will
be convenient to pursue this work at the rate of about $500,000 per
year, which will extend it over a period of 10 or 12 years.

CONTRACT CONSTRUCTION

For many years, the construction by hired-labor method of all new
buildings for the Panama Canal and the Panama Railroad was handled
by the constructing quartermaster's division of the Canal organization.
During the fiscal year 1934, comparatively little new construction
work was authorized, and at the end of the year the forces had shrunk
to maintenance proportions. For the fiscal year 1935 allotments
were received for 25 two-family, 2 one-family, and 2 bachelor quarters
for American employees at Gatun and for an oil and paint storehouse
at Mount Hope. It was, therefore, deemed more economical for the
Government to contract the construction of these buildings than to
expand the construction force of the constructing quartermaster's
division to perform this work.
Accordingly, three separate contracts were entered into for the
construction of the buildings under plans and specifications prepared
by the Panama Canal. These provide that the Panama Canal will
furnish all material entering into the construction of the buildings;
the contractor to provide necessary material of American maniiufac-
ture for concrete forms, scaffolds, etc. According to estimates made,
the construction costs of these buildings, including material, will be
less than if the buildings had been erected by the Canal. Construc-
tion of the buildings by contract has progressed in a satisfactory
manner, and plans and specifications were prepared and bids invited
on 34 additional quarters buildings to be constructed at Gatun during
the fiscal year 1936, to continue the replacement program at that
locality.
24072-35---6






REPORT OF GOVERNOR OF THE PANAMA CANAL


CONVERSION OF RESTAURANT BUILDINGS

Transfer of the restaurant business to the bureau of clubs and
playgrounds, on May 16, 1934, left several excellent restaurant
structures available for other uses.
The buildings at Cristobal and Ancon were acquired by the bureau
of clubs and playgrounds, as it was found more advantageous at those
places to continue the restaurant activities in the buildings and to
move the other clubhouse activities into the restaurant buildings
after making some alterations. This was done, except that the moving-
picture theaters could not be brought into the restaurant buildings.
Plans are now under consideration to provide a permanent theater
at Cristobal, and at Ancon it is intended to move the present frame
moving-picture theater to a site near the restaurant building.
The restaurant building at Pedro Miguel was converted into a post
office and district quartermaster's office. This was done during the
fiscal year 1935 by installation of partitions and openings, post-office
boxes, etc., at a total cost of $11,878.08.
Plans have been prepared for converting the Balboa restaurant
building into a permanent police station to replace the old frame
building now used for this purpose. The estimated total cost of
this is $77,200.

MOTOR AND ANIMAL TRANSPORTATION

Motor and animal transportation for all departments and divisions
continued to be supplied by the transportation division under the
pool system. This division is charged with the operation and mainte-
nance of practically all transportation equipment and is required to
operate on a self-sustaining basis. The usual amount of heavy
hauling in connection with various building projects was accomplished
during the year.
During the year 25 cars and trucks were retired and 31 were pur-
chased. At the close of the year there were on hand 321 cars and
trucks, 4 trailers, 6 motorcycles, 4 mowing machines, and 10 mules.
Revenues exceeded expenditures by $45,911.88 as compared with a
profit of $74,922.83 for the preceding year.

THE PANAMA CANAL PRESS

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 printing plant carries in stock and manufactures
such necessary stationery, forms, etc., as are required on the Isthmus
in connection with the operation of the Panama Canal and the






REPORT OF GOVERNOR OF THE PANAMA CANAL 73

Panama Railroad. The manufacturing output for the current year
amounted to $152,089.56, as compared with $144,985.09 for the pre-
vious year. The annual inventory value of material on hand at the
close of the year was $65,973.41, as compared with $61,317.75 for
the previous year.

REVENUES DERIVED FROM THE RENTAL OF LANDS IN THE CANAL
ZONE

Rentals on building sites and oil-tank sites in the Canal Zone
totaled $41,632.25 for the year, as compared with revenues of
$45,166.50 in 1934. Rentals of agricultural lands in the Canal Zone
totaled $17,934.78 as compared with $19,397.44 for the preceding
year. At the close of the fiscal year a total of 1,435 licenses were
in effect covering 3,248%h hectares of agricultural land within the
Canal Zone. This is a reduction in the number of licenses under
the previous fiscal year of 176, and a reduction in the area held under
licenses of 388%) hectares.
The land office disposed of 70 claims for agricultural improve-
ments on account of the construction of the townsite of Gamboa.
All agricultural licenses within a radius of 1 mile of the limits of
the townsite, excepting those on the Gaillard Highway were canceled.
The total amount paid for the purchase of these improvements was
$27,962.55.
EXPERIMENTAL GARDENS

The work which the experimental gardens has been carrying on
directly and in cooperation with the United States Department of
Agriculture for a decade or more has, in a sense, come to fruition in
the year just closed. Although many have believed that the coim-
mercial production of rubber in Central America would not be
practicable, the testing of rubber-producing plants, especially HIerea
brasiliensis, was carried forward in order that some experimental
data, and also a supply of seed, might be available and ready for any
development in the world rubber situation which might point toward
the desirability of establishing rubber plantations in this region.
During the year just closed representatives of one of the largest, rubber-
producing and manufacturing interests in the United States arrived
on the Isthmus to investigate the adaptability of this country for
Hevea rubber production, and also to look into the possibilities of
establishing a plantation in Panama.
At the experimental gardens these experts found small paintings of
Hevea brasiliensis which in their opinion compare favorably with
growths of similar age in the best plantations in the Orient. It is
believed that these demonstrations of the behavior of the trees in
this country had considerable weight in their reaching a decision to






REPORT OF GOVERNOR OF THE PANAllMA CAlNTAL


establish a plantation of several thousand acres in the Republic, in
the vicinity of Gatun Lake. The gardens were also able to supply a
considerable quantity of seed and entered into an arrangement with
the company whereby a nursery was established at the gardens, thus
saving at least a year in getting the project under way. It is of great
importance in any Hevea-planting project to have a supply of seed
reasonably near at hand, as these seeds so rapidly lose their viability.
It is difficult to predict the outcome of any rubber-planting project in
this country, or its significance to commerce and to the agricultural
prosperity of Panama. It seems likely, however, that if rubber pro-
duiction is made economically successful in this country, it will open
an entirely new field of wealth to the Republic of Panama as well as
being advantageous from the viewpoint of developing another source
of rubber supply.
Arrangement for the establishment of the rubber tree nursery was
made on a basis similar to that followed in caring for plantings of
other outside interests, the company paying a fair rate for the service
performed. The rubber company also agrees to leave with the gar-
dens, specimen trees grafted to the highest-yielding clones being intro-
duced from their selected plantings in the Philippines. At the close
of the year, the Hevea nursery comprised upwards of 30,000 seedling
trees, ranging from 3 to over 6 feet in height.

CLUBHOUSE RESTAURANTS

With the abrogation in the latter part of 1934 of the private con-
tracts for operating the restaurants on the Canal Zone, this business
was taken over by the bureau of clubs and playgrounds and operated
as a business activity. In 1935, the first full year of operation, the
receipts were $327,550.52 and the expenses $326,770.63, leaving a
net profit of $779.89.
BUSINESS OPERATIONS UNDER THE PANAMA RAILROAD CO.

Many of the business activities on the Isthmus connected with the
operation of the Canal are conducted with funds of the Panama Rail-
rond Co. Included in these are the wharves and piers at the harbor
terminals (except the wharves at Balboa which are operated by the
Panimnia Canal), the eroiniissa;ry system, coaling plants, hotels, and
various minor activities, as w\vll as the Pannnamia Railroad itself. In
this report only the n;iajor features of these operations are noted in
their rehition to the Canal administration as a whole. Details are
given in the annual report of the Po nn inn Railroad, which is published
separately.
The operations of the railroad proper, harbor terminals, coaling
plants, stables, and baggage transfer were continued throughout the





REPORT OF GOVERNOR OF THE PANAMA CANAL


year under the direction of the general manager of the railroad; the
telephone system under the electrical engineer of the Panama Canal;
renting of lands and buildings under the land agent; and commissaries,
Hotels Washington and Tivoli, and subsidiary activities under the
chief quartermaster of the Panuma Canal.
Business operations on the Isthmus, carried on with Panama Rail-
road funds, yielded a profit of $899,195.79 for the fiscal year, as com-
pared with $1,156,738.14 during the previous fiscal year, a decrease
of $257,542.35, or 22.3 percent.
A summary of the 1935 operations is given in the paragraphs
following:
TELEPHONES AND TELEGRAPHS

The gross revenue from the operation of telephones, electric clocks,
and electric printing telegraph machines amounted to $242,385.39,
and the total expenses were $175,144.01, leaving a net revenue of
$67,241.38, as compared with $64,809.52 for the preceding year, or
an increase of $2,431.86 over last year.
During the year 1,234 telephones were installed and 1,132 were re-
moved, resulting in a net increase of 102 telephones for the year. At
the end of the fiscal year the telephones on the system, maintained by
this section, numbered 2,811 as compared with 2,709 at the end of
last year.
RECEIVING AND FORWARDING AGENCY

Harbor terminal-..-The gross revenue from harbor terminals opera-
tions during the fiscal year amounted to $1,526,294.46; operating ex-
penses were $1,171,260.67, leaving a net revenue of $335,033.79, as
compared with $358,579.72 in 1934.
There were 1,788,852 tons of cargo stevedored and transferred, as
compared with 1,597,324 tons in 1934, an increase of 191,528 tons.
During the year 4,439 cargo ships and 1,238 ba:nnan schooners were
handled, as compared with 4,329 cargo ships and 941 banana schooners
in 1934. Agency service was furnilihed to 150 commercial vessels,
as compared with 195 in the proceeding year.
Canal Zone for ordti /s.-As an aid in the distribution of goods to
areas served by steamship lines using tlhe Panamna Canal or its terminal
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 and Balboa) to be held there in ware-
houses of the Panama Railroad Co. for orders. Such cargo or integral
parts of it may be withdrawn as the consignor or consignee may
desire for forwarding to ports beyond Panama. Mainy different
commodities were handled in this manner during the year; the total
cargo received under the arrangement, was 2,777 tons. This was a






REPORT OF GOVERNOR OF THE PANAMA CANAL


decrease of about 66 percent from the tonnage received during the
previous year, the large loss being due principally to the discontinuance
on December 1, 1933, of local deliveries into the Republic of Panama
and the Canal Zone. The revenue received for handling and storage
amounted to $8,422.77, as compared with $18,882.40 for 1934, a
decrease of 55 percent.

COMMISSARY DIVISION

The commissary division is charged with the ordering, storage, and
sale of all food supplies, clothing and other similar items. In carrying
out these functions it operates an abattoir, cold storage plants, various
manufacturing plants, a laundry, wholesale warehouses, and retail
stores. In general, sales are restricted to the operating and defense
forces of the Canal, to other United States Government personnel
stationed on the Isthmus, to the United States Fleet and other United
States Government vessels. Sales to commercial steamships were
restricted to cold storage, food, and other essentials and approximated
$350,000 during the year.
Net sales for the year totaled $7,122,770.33 as compared with
$6,508,183.35 for 1934. Gross operating expenses including cost of
goods sold, transportation expenses thereon, plant and processing
expenses and costs, salaries and wages, depreciation, repairs, etc.,
aggregated $6,888,566.77, resulting in a net operating profit of
$234,203.56 for the year's operations.
At the close of the fiscal year, the value of merchandise on hand
was $1,010,074.95. The relationship between sales and inventory
indicates a theoretical stock turnover every 2.36 months.
Sales.-The distribution of sales as compared with the 2 preceding
years was as follows:

1933 1934 1935

United States Government (Army and Navy)--------------- $964, 376. 75 $664, 593.94 $704, 814. 46
The Panama Canal-----------.. ----------------------- 562,851. 24 496,083. 02 730,142.37
The P.Iaujii L R. R.------------------------------------ 180,451.53 234,266.73 301,315.52
Individuals and companies------------------------------- 493,475. 57 406, 556. 18 246,994.81
Commercial ships-------------------------------------.......... 294, 416. 69 330, 570.82 355,954.92
Employees-------.. --------.... -..--.-... 5,107,704.11 4,654,620.74 5,114,279.59
Total sales------------------------------------............ 7,603,e75.89 6,786,691.43 7,453,501.67
Less discounts, credits, etc------------------------------................... 289,895.05 278, 508.08 330,731.34
Net revenue from sales------ ----------------.---- 7,313,380.84 6,508,183.35 7,122,770.33
Supplies for expenses:
RKeall commissaries and warehouses----------- --------- 33,971.25 38,404.70 41,845.61
General------------------..--------------------.... ----- 1, 640.31 2,276.22 2,585.50
Plants------------------------------------------- 21,679.97 23,328.41 22,359.80
Total----------------------------------------- --- 57,291.53 64,009.33 66,790.91
Loss by condemnation, pilfer age, shrinkage, etc-------------- 105,536.52 77,922.59 57,612.84
Grand total-------------------------------------------- 7,476,208.89 6,650,115.27 7,247,174.08






REPORT OF GOVERNOR OF THE PANAMA CANAL


Purchases.-Purchases during the year aggregated $5,058,557.99,
an increase of $623,029.17, or 14 percent t, as compa red with the previous
year. The following tabulation shows the value of the various classes
of materials purchased, and the market in which purchased, as com-
pared with the 2 preceding years:

1933 1934 1935

Groceries ---------- ----------------------------- $1, 234,567. 33 $1, 253, 372 31 $1, 362, 659.95
Candy and tobacco-------.------------.----------------- 307,226.56 324, lb2. 64 295,436.93
Hardware-------------------------- .--------------- 337,195.27 260,035.89 326,924.97
Dry goods------.....----------------------..............------------- 764,973. 11 624, 581. 16 644.941. 72
Shoes..---------------------------------------------146,3-5. 30 161,987.18 191,027.72
Cold storage-----------------..........................---------------------- 1,092,113.73 922, 678.32 1,071, 593.04
Raw material.. -.------. ----- ---------------------- 318, 784.87 340,647. 14 447,224.51
Cattle and hogs.------ ------------------.---------------124,465.53 9,217.64 103,117.02
Milk and cream-------------------------------------- 153,383.45 131,058. 85 156, 517.02
Dairy products.---------------------- ------------------371,241.15 407,767.69 459, 115. 11
Total-------------------- ------------------- 4,850,329.30 4,435,528.82 6,058, 557.99
Place of purchase:
United States. -------------------.----------------- 3, 798. 356. 49 3,569, 568. 40 4,096.955. 52
Europe and Orient ---------------------------------- -- 4'2, 530 29 472, 386.34 4-10, 434.74
Central and South America.-.--------------------- 131,284.11 101,261.13 104, 997. 69
Local. --------------------------------------------130,894.20 104,353. 12 20U, %35. 47
Panama Canal ------------------------------------- 70,558.08 67,445. 14 6C. 394.57
Cattle industry..-------------------------------------236,646.13 120.514.69 14I. 940.00
Total----......--------------------------------- 4,850,329.30 4, 435, 528.82 5,058,557.99


Cold-storage plant and abattoir.-During the year the purchase of
a number of Panamanian beef cattle was made on a competitive bid
basis. Requirements averaged approximately 200 head monthly
throughout the year. Due to the sharp advance in the price of States'
beef, sales of the States' product have dropped appreciably while sales
of native beef have increased. As a result of the higher price for
States' meats, abattoir activities showed a marked increase, and at
the close of the year consideration was being given to the manufacture
of sausage products here again.
Maifacturing plants.-The output of the various manufacturing
plants and laundry during the year had a total value of $1,297,408.45,
as compared with $1,095,201.90 for the preceding year, an increase of
$202,206.55, or 18.5 percent.
Among the principal products of the bakery were 4,408,391 loaves
of bread, 119,393 dozen rolls, 34,936 pounds of cake, 16,290 dozen
doughnuts, 285,290 pounds of soda crackers, and 51,815 dozen cookies.
The value of the output was $251,379.22.
In the coffee-roasting plant, 367,594 pounds of coffee were roasted
for the Army. Of commissary brands of coffee, 222,012 pounds were
roasted, an increase of 8,000 pounds. In the packing department,
1,622,072 packages of foodstuffs totaling 4,838,579 pounds were
packaged.
The value of items manufactured in the industrial laboratory
totaled $239,958.69, an increase of approximately $40,000.






REPORT OF GOVERNOR OF THE PANAMA CANAL


Although there was a steady monthly increase through the year on
Army laundry work, business as a whole for the year decreased about
25 percent on total number of pieces handled and $14,000 in value of
output, the total value being $152,069.76.
The output of the ice-cream and milk-bottling plant included
92,270 gallons of ice cream, 974,144 quarts of milk, 29,168 quarts of
cream, having a combined value of $283,704.16.

HOTELS

The hotels Tivoli and Washington were operated by the Panama
Railroad Co. without change of policy. These hotels are operated
as adjuncts to the Canal for the purpose of providing suitable accom-
modations to people having business with the Canal, foreign visitors,
American tourists, visiting Government officials, and others. The
cost of operating the Hotel Tivoli during the year was $156,351.26,
or $16,382.70 more than the revenue derived. The operating cost
of the Hotel Washington was $154,696.69, or $28,131.24 more than
the revenue derived. Operating expenses of both hotels include
increases in unexpended reserves over last year, as follows: Tivoli,
$11,450.65; Washington, $16,449.40.
The operation of the Hotel Tivoli by the Panama Railroad during
the past 6 years shows a gross difference of expenses over revenues
of $219,984.65. However, included in the charges to expenses for
the period is $121,255.93 paid to the Panama Canal for amortization
of the capital account for the building and equipment and a total
of $73,156.63 in unexpended reserves, leaving a total of $194,412.56
of the expenses as charged still in the possession of the Government
or an actual net deficit of $25,572.09.

CATTLE AND BEEF

Native beef.-Duiring the World War period the slaughter of native
cattle was undertaken with a view to conserving the meat resources
of the United States and for the purpose of avoiding unnecessary
transportation of food supplies. Following the war period, the very
considerable difference in the cost of native beef and of States' beef
resulted in a considerable demand for the former product, although
it is of inferior quality to the States' beef.
Purchase of live cattle in Panamn was resumed in 1934 after having
been discontinued for several years on account of price factors.
During the year the coninissa ry division purchased 2,350 head of
cattle in Panlnama under competitive bids. Owing to advanced prices






REPORT OF GOVERNOR OF THE PANAMA CANAL


in States' beef the sales of beef in the Canal commissaries at the close
of the year were running about 80 percent native beef and 20 percent
States' beef.
Chilled beef.-During the general economic crisis subsequent to
1929, beef prices in the United States declined considerably and
resulted in greatly reducing the variation between the prices of States'
and of local beef. This resulted in considerable den-minnd for States'
beef with a consequent decline in the consumption of local beef.
The local sale of beef from the United States increased also as a
result of making chilled-beef purchases in place of frozen beef. Chilled
beef is superior to frozen beef and is much preferred by the trade.
Trial shipments of chilled beef from the States were commenced early
in 1934 and after some experimentation it was found that chilled beef
could be shipped successfully to the Canal Zone. During the past 2
years these shipments have been continued regularly, but at present
the demand for chilled beef from the States is declining because of
the comparatively high prices in relation to the prices of native beef.

MIND DAIRY

Total milk production at the Mindi dairy amounted to 248,689
gallons, or an increase of 5,278 gallons over the previous year. Four
pure-bred Jersey bulls and 102 head of pure-bred Jersey cows were
purchased in the United States early in the fiscal year at a cost of
$10,225.90 and added to the dairy herd.

PANAMA RAILROAD LANDS AND LEASES

There were in effect at the close of the fiscal year 1935 a total of
1,453 leases and 17 licenses covering the use of Panama. Railroad
properties in the cities of Panama and Colon. The income derived
by the Panama Railroad from these leases and licenses during the
year was $241,649.38. This represents an increase in revenue over
the fiscal year 1934 of $3,327.94.
During the year the railroad company allowed a discount of 33%
percent to all lessees who were paying the full conmmenerri rental, who
paid their accounts during the period for which the bills were ren-
dered. Those properties rented at low rates under old leases were not
given the reduction. The discount aniounted to $SO,019.73.
Ten new lenses and three revocable permits were issued during the
fiscal year. Five leases on which no improvements hiad been erected
were canceled upon the request of the lessee.







80 REPORT OF GOVERNOR OF THE PANAMA CANAL

COAL

The sale of conl from the plants at Cristobal and Balboa totaled
43,696 tons, as compared with 52,657 tons in 1934, a decrease of 8,961
tons, or approximately 17 percent. Purchases during the year totaled
34,169 tons. Total revenue from the sale of coal and the extra charges
for handling w\\as $359,778.24. The cost of sales, including operating
expenses, was $317,742.22, resulting in a net profit of $42,036.02, as
compared w-ith a profit of $88,691.61 in the previous fiscal year.
The prices of $7.75 per ton at Cristobal and $10.75 at Balboa
remn ined in effect throughout the year.
The operating expenses of the coaling plants were decreased from
$69,313.49 in 1934 to $62,824.82 in 1935.

THE PANAMA RAILROAD

The gross revenue during the fiscal year 1935 from the operations
of the Panama Railroad proper (not including subsidiary business
activities) amounted to $1,280,669.58. The operating expenses were
$1,133,683.32, leaving a net revenue of $146,986.26 for the year, as
compared with $287,474.79 for the previous year, a decrease of
$140,488.53, or approximately 49 percent.
Tonnage of revenue freight transported during the year amounted
to 270,334, as compared with 296,247 in 1934, a decrease of 25,913, or
approximately 9 percent.
Statistics covering the various features of railroad operations
during the past 3 years are presented in the following table:


1933 1934 1935

Average miles operated, Colon to Panama-----------------... 47.61 47.61 47.61
Gross operating revenue -----------------------------. $1,328,229.81 $1,429,784.27 $1,280,669.58
Operating expenses ----------------------------------.... $1, 204,305. 19 $1, 142,309.48 $1, 133, 683.32
Net operating revenue-----------.. ---------------------... $123, 924. 62 $287, 474. 79 $146, 986.26
Percent of expenses to revenue ----------------------------- 90.66 79.77 88.52
Gross revenue per mile of road- -------------------------- $27,898.12 $29,729.75 $26, 899.17
Operating expense per mile of road.----.. -------------------$25,295.21 $23.764.20 $23,811.87
Net revenue per mile of road...............................---------------------------- $2, 602.91 $6, 028.55 $3.087.30
Number of passengers carried:
First class-----------------------------------------........................................... 168,344 162,501 184,355
Second class ---------------------------------------- 194,765 196, 597 211,959
Total-------------------------------------------............................... 363, 109 359,098 396,314
Revenue per passenger-train-mile--------------------------- $3.88 $3.76 $3.91
Revenue per freight-train-mile----------------------------- $9.47 $11.83 $9.26
Total revenue train mileage- ------------------------------. 186, 598 183, 143 182, 659
Railroad revenue per train-mile-.---------------------------.............. $7.12 $7.74 $7.01
Railroad operating expense per revenue-train-mile ....----- $6.45 $6.18 $6.21
Net railroad revenue per rfe- nimp-tr-iin-mil. -----------.... --.......-----. $0.67 $1.57 $0.80
Freight, passenger, and switch locomotive mileage--------- 282,502 280,358 279,281
Work-train mileage -------------------------------------- 11,266 6,318 8,686
Passenger-train mileage------------- --------------------.. 108,257 111,076 111,581
Freight-train mileage ------ ..------------------------------- 78, 341 72,067 71,078






REPORT OF GOVERNOR OF THE PANAMA CANAL


PANAMA RAILROAD STEAMSHIP LINE

The gross operating revenue for the steamship line for the fiscal
year ended June 30, 1935, amounted to $1,162,268.67, and the gross
operating expenses amounted to $1,519,902.49, resulting in a net
deficit from operations of $357,633.82. The operating deficit com-
pared with the net loss for the fiscal year ended June 30, 1934, of
$319,562.14, shows a decrease in the net revenue of $38,071.68.
For the year ended June 30, 1935, the tonnage carried by the steam-
ship line amounted to 163,304 tons as compared with 118,606 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 $482,469.52. 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 $482,469.52 and its opera-
tions for the year would have resulted in a profit of $124,835.70.













SECTION III


ADMINISTRATION
DEPARTMENTS
The organization of the Panama Canal on the Isthmus embraces
five principal departments, namely, operation and maintenance,
supply, accounting, 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.

OPERATION AND MAINTENANCE
The department of operation and maintenance embraces functions
related to the actual use of the Canal as a waterway, including the
dredged- channel, locks, dams, and aids to navigation, accessory
activities such as shops and drydocks, vessel inspection, electrical
and water supply, sewer systems, roads and streets, hydrographic
observations, surveys and estimates, and miscellaneous construction
other than the erection of buildings.

SUPPLY
The supply department is charged with the accumulation, storage,
and distribution of materials and supplies for the Canal and Pana ma
Railroad; the maintenance and construction of buildings; the assign-
ment of quarters and care of grounds; the operation of storehouses,
fuel-oil plants, hotels, commissaries, an abattoir, a bakery, an ice
plant, an experiment garden, a laundry, a printing plant, and indus-
trial laboratory, etc., andl supplies motor transportation to the various
departments and divisions of the Canal and railroad organizations.

ACCOUNTING
The accounting depa rtment is respond ibl e for the correct recording
of financial transactions of the Canal and railroad; the administrative
auditing of vouchers covering the receipt and disbursement of funds
preliminary to the final audit by the General Accounting Office; cost
keeping of the Canal and railroad; the checking of time keeping; the
preparation of estimates for appropriations and the allotment of
appropriations to the various departments and divisions; and the
examination of claims.
82










































DEPARTMENT |
A C
S AST. ENGo. OF MAINTENANCE: SUPPLY DErAPRTMENT:
Municipal Engr. Division Quartermaster Division
Electrical Division Commissary Division
SUPPLY f Locks Division Transportation Division
DEPARTMENT C Section-Office Engineer Storehouses-Oil Plants
Section of Surveys Construction Division
Panama Canal Press
B Hotels
EXECUTIVE DEPARTMENT: D
Division of Civil Affairs HEALTH DEPARTMENT;:
P \T1 NT II Police & Fire Division Hospitals
DEP khVILN Division of Bchools Quarantine
Personnel Division Sanitation
Executive Office



DEl.%RT7'.ENl I'

24072-. (Pace p. W.)






REPORT OF GOVERNOR OF THE PANAMA CANAL


EXECUTIVE
The executive department embraces the general office business of
the Governor and all 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, customs, shipping-commissioner work, estates, schools,
general correspondence, and records for the organization of the Canal
and the Panama Railroad, personnel records and administration,
wage adjustments, statistics of navigation, information and publicity,
relations with Panama, and the operation of clubhouses, restaurants,
moving-picture theaters, playgrounds, etc.

HEALTH
The health department has jurisdiction over all matters pertaining
to sanitation and public health within the Canal Zone and the cities
of Panama and Colon, the operation of 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.
PANAMA RAILROAD CO.
The operations of the Panama Railroad Co. on the Isthmus are
generally related closely to the work of the Canal, and the railroad
organization is, in effect, a part of the Canal organization. The
Governor is president of the Panama Railroad 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 executive office, and the accounting work in the
accounting department; the Panama Railroad and other divisions of
the general organization are billed for their proper share of the general
overhead work.
CHANGES IN PERSONNEL AND ORGANIZATION
The following changes in organization and administrative personnel
occurred during the year:
Diris.ion. of person l hadini stration.-Primarily for the purpose of
developing a more thorough system of personnel selection and ad-
ministration, there was created in September 1934 a division of person-
nel administration. Its duties are the supervising and coordination
of personnel functions of the entire organization. It is charged with
supervision of matters of employees' salaries and wages, orvanlizution,
promotions, demotions and terminations, efficiency ratings, trans-
fers, seniority, leave, authorization of transportation, retirement,
citizenship, vital statistics, the investigation of complaints, and with






REPORT OF GOVERNOR OF THE PANAMA CANAL


related research looking to effective handling of these matters. The
division has obtained the services of a personnel administrator, experi-
enced in practices of industrial corporations in the United States, as
consultant and has undertaken various revisions of practices in the
endeavor to attain a more effective utilization of employees.
Mr. Seymour Paul, formerly chief of the bureau of statistics, is in
charge of the division.
Plans section.-The plans section was created in October 1934. It
is an auxiliary administrative agency reporting directly to the en-
gineer of maintenance. Its function is to assist the department
heads in the conduct of surveys and investigations with a view to
obtaining a clear picture of existing conditions and to make recom-
mendations leading to increased efficiency in operation, closer co-
ordination of departmental and interdepartmental activities, im-
proved accounting methods, and a resultant reduction in expense.
There has been a growing need for some time for such a section. The
following duties have been assigned to it:
(a) In collaboration with the responsible department heads, to
make studies and investigations of financial, physical, and operating
features of all divisions of the Panama Canal and Panama Railroad.
(b) To follow up and report on operating results from action taken
by the Governor on such studies.
(c) To prepare and maintain operating indexes showing currently
the efficiency of operation of important features of each division of
the Panama Canal and Panama Railroad and to furnish such indexes
to divisions.
(d) To maintain a logical and feasible 6-year program in detail
and a 15-year program in general for future major betterments or
extensions.
(e) To coordinate annual estimates of appropriations needed for
replacements and betterments, and annual estimates of items to be
charged against reserves.
Mr. Lewis B. Moore, formerly assistant office engineer, was ap-
pointed chief of the section. Most of the work performed during the
fiscal year 1935 was in connection with the Panama Railroad Co.
During 1936 studies will be made of various divisions of the Panama
Canal. The personnel employed in the section has been held to a
small number of carefully selected men. The information and re-
sults obtained from the studies and investi-nations already made have
clearly demonstrated the value of the section.
Coun.sel.-The office of counsel the Panama Canal was established
by the Governor on October 1, 1934, and Mr. F. H. \VWng was ap-
pointed to the office. The counsel, the Panama Canal is the legal
adviser in matters pertaining to the administration of the Panama
Canal and performs such other duties concerning legal and legislative






REPORT OF GOVERNOR OF THE PANAMA CANAL


questions and matters of public policy as may be directed from time
to time by the Governor. The duties of the counsel are separate from
those of the district attorney, who, under the law conducts all legal
proceedings for the Government of the United States and the Govern-
ment of the Canal Zone.
Madden. Dam division abolished.-The Madden Dam division was
abolished June 30, 1935, and the employees of this division whose
services were needed in connection with the completion of construction
work on the dam, operation of the hydroelectric plant, etc., were trans-
ferred to other divisions of the Canal organization. Mr. E. S. Ran-
dolph, construction engineer, was transferred to the position of de-
signing engineer, the Panama Canal at the close of business June 30,
1935.
Appointments.-Capt. Walter F. Jacobs, United States Navy, was
appointed assistant to the Governor on October 9, 1934, and on Oc-
tober 22, 1934, was appointed marine superintendent, vice Capt.
William Ancrum, United States Navy, upon relief of the latter from
duty with the Panama Canal.
Lt. Comdr. Charles F. Osborn, Construction Corps, United States
Navy, was appointed superintendent of the mechanical division on
July 2, 1934, vice Capt. R. W. Ryden, Construction Corps, United
States Navy, upon relief of the latter from duty with the Panama
Canal.
Mr. Fay E. Powell was appointed constructing quartermaster De-
cember 1, 1934, vice Mr. J. B. Fields, retired.
Change of title.-On December 15, 1934, by authority of the Presi-
dent, the title of the head of the accounting department was changed
from auditor to comptroller, the Panama Canal, as more appro-
priately defining the duties of that official as auditor, budget officer,
and financial adviser to the Governor. The title of assistant auditor
on the Isthmus and that of the assistant auditor in Washington were
accordingly changed to assistant comptroller.
FORCE EMPLOYED
The supervisory, technical, higher clerical, and highly skilled
mechanical employees, who are primarily citizens of the United
States but include Panamanians and a few of other nationalities, are
employed on what is known as the "gold roll." The rest of the force,
principally natives of the Tropics but including a few citizens of the
United States, engaged on low-paid work, are designated "silver"
employees. These terms are derived from the former tropical prac-
tice of paying Americans and Europeans in gold, while the native
or tropical labor was paid in local currency, usually based on silver.









86 REPORT OF GOVERNOR OF THE PANAMA CANAL


GOLD EMPLOYEES


The distribution of the gold personnel on June 20, 1934, and

June 5, 1935, and comparisons for the 2 years are shown in the fol-

lowing tabulation:



Gold force
De- In-_______ Net
Department or division es crease in-
June 20, June 5, crease c crease
1934 1935


Panama Canal:
Accounting department ----------------------
Dredging division .-----------------------------
Engineer of maintenance, assistant:
Office engineer --------------------------
Surveys-meteorology- ---------- -------
Electrical division-------------- ---------
Locks division,. .------------------ ------
Municipal division -------. -----.------.
Executive department:
Executive offices-.---------------------
Clubs and playgrounds--------------------
Bureau of posts -------------.----------.
Civil affairs and customs.------------------..
Fire protection -------------------------
Police and prisons-.------------------
Magistrates' courts.---.----------------.
Schools- -----. --------------------
Collector ------------------------------. -
Paymaster------------- ------ ----------
Fortifications _____ -----------.-- ------
Health department--------------------------
Madden Dam division-------------------
Marine division----- ------------------ ----
Mechanical division----- -------------
Supply department:
Offices, chief quartermaster.---- ---------
Constructing quartermaster --------------
District quartermasters ----------------
Farm bureau-----------------------------
Fuel-oil plant----------------------------
Storehouses -- ----------------
Mlirr-rir repair shop. -- -----------
Motor trgnspnrtation.---------------------
P1in Iun.i r.in.l press.----- _--------

Total, the Panama Canal --_ _----------

Panama Railroad Co.:
General manager:
Offices. -----.---------.- -------.
R.ilro i'I transportation-------- ----------
ReceivinE and forwarding agency-----------
Supply department:
Commissary division ..----------------___-
Hotels-.-.------- --------------------.
Dairy farm... ---------.-----------------.---

Total, Panama Railroad -----------------

Total force ------------... ------------


---------

----------

----------
----------
----------
3

46


1


----- 2-
----------

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


7
6

8
6
11
28
15

14
5
4
----------
1
----------
----------
----------
----------
----------

----------


9
1
----------

-----.-----
2
4
1


2,538 2,678 53 193 140



22 22 ---- ----..--
71 79 ---.----- ------
81 89 -------- 8 ------

201 203 ---------- 2 .......
12 13 _.----- 1 ----
2 3 ---------- 1 ---------

3'9 409 --- --- 20 20


2, 927


3, 087


Increases occurred in 23 of the 37 units of the organization and de-

creases in 5. The increase of 53 in the mechanical division was mostly

of machinists and car repairmen resuming heavy repairs to freight

cars; the increase. of 28 in the locks division was due to the 40-hour

week and necessary cleaning up of the Atlantic locks after overhaul.

The increase in the electrical division wnas due to the 40-hour week and

the bringing into operation of the new power plant at Madden Dam.


I --------5-3 -1 ______ _







REPORT OF GOVERNOR OF THE PANAMA CANAL 87


The increase of 15 in the municipal division was due to transfer of men
previously employed by the 'Madden Dam division to work on the
Dock 15 project and to the development of the new Gamboa town-
site, while the health department's increase of 18 included a school
physician, a nurse, a dental hygienist, dentists for silver clinics, relief
physicians, an interne, an apprentice technician, a sanitary assistant,
and 3 clerks.
Decreases were due to completion of projects and to the transfer of
personnel to other divisions.

RECRUITING AND TURN-OVER OF FORCE

The following table shows additions to the gold force and separa-
tions from it in the fiscal year from July 1, 1934, to June 30, 1935.
Employments are classified as made in the United States or on the
Isthmus and separations are classified by cause. This table covers a
slightly different period from that between the force reports of June
20, 1934, and June 5, 1935:


Opera-
and Eeeu- Supply Health Acont- Panama Total
mainte- tive mig R.R.
nance

Employed or reemployed in the
United States---------------------- 125 28 2 49 ......... 3 207
Employed or reemployed on the Isth-
mus.----.------------------------- 252 42 65 22 8 57 446


Total additions-----------------
Resigned.--------------------.------
Retired:
Age--- ---------........................
Disability_......-iin -----------
Involuntary separation.--. -....
Voluntary separation.--------..-..
Died...--------------------- ..-------
Reduction of force------------.------
Expiration of temporary employment -
Discharged for cause ---------------.
Adjudged insane ---------------------
Completion of apprenticeship.........


377 70 67 71 8 60 653
43 31 4 31 1 15 125
14 2 3 1 2 7 29
7 2 2 1 1 ......... 13
1 -.----- 1 1 ---------- --------.. 3
2 1 --------- --------- ----------- 3
5 4 1 2 1 2 15
15 ------1 -----------------........ ......... 16
168 7 46 13 .-.---... 1 235
3 2 1 --------- ......... 3 9
1 ------------ ------ -------- ......... 1
2 --2--.---- -------- -- --................1 3


Total---------------------- 261 49 59 49 5 29 452

The Panama Canal: The Panuma R. R. Co.:
Additions.----------------------.------ 593 Additions---------------------------. 60
Separations-------------------------.... 423 Separations-------------------------...... 29
Net additions---------------------- 170 Net additions-----------------------...... 31

The number of employees retired during the year under the pro-
visions of the Panama Canal Retirement Act was 48. Of these 13
were retired on account of disability, all of whom were Panama Canal
employees; 29 were retired on account of age, 7 of whom were Panama
Railroad employees. Voluntary separations numbered 3 and in-
voluntary separations 3, all of whom were Panama Canal employees.
Involuntary separations comprise those employees whom it was
24072-15--7




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