• TABLE OF CONTENTS
HIDE
 Front Cover
 Title Page
 Table of Contents
 Preface
 Introduction
 Section I: Canal operation and...
 Section II: Business operation...
 Section III: Administration
 Section IV: Government
 Section V: Financial and statistical...
 Index
 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/UF00097365/00021
 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: 1936
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: VID00021
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
    Preface
        Page 1
    Introduction
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
    Section I: Canal operation and trade via Panama Canal
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
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        Page 40
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        Page 42
        Page 43
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        Page 45
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    Section II: Business operations
        Page 47
        Page 48
        Page 49
        Page 50
        Page 51
        Page 52
        Page 53
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        Page 71
        Page 72
    Section III: Administration
        Page 73
        Page 74
        Page 75
        Page 76
        Page 77
        Page 78
        Page 79
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        Page 106
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        Page 109
        Page 110
    Section IV: Government
        Page 111
        Page 112
        Page 113
        Page 114
        Page 115
        Page 116
        Page 117
        Page 118
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        Page 124
        Page 125
        Page 126
        Page 127
        Page 128
        Page 129
        Page 130
    Section V: Financial and statistical statements
        Page 131
        Page 132
        Page 133
        Page 134
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    Index
        Page 163
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    Back Cover
        Page 185
        Page 186
Full Text















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UNIVERSITY
OF FLORIDA
LIBRARY





09)









ANNUAL REPORT
OF THE


GOVERNOR OF


THE PANAMA CANAL

FOR THE

FISCAL YEAR


ENDED JUNE 30

1936


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1936


For sale by the Superintendent of Documents. Washington. D. C. - - - Pnce 20 cents













































Digitized by hle Iniernei Archive
in 2010 willi lundinIg Irom
University of Florida, George A. Smaihers Libraries with support Irom Lyrasis and the Sloan Foundation


Itip: www.archiive.org details annualreportofgol936cana













TABLE OF CONTENTS

Page
Introduction------------------------------------------------------- 2
Operation and maintenance of the 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 I.-CANAL OPERATION AND TRADE VIA PANAMA CANAL

Traffic in 1936---------------------------------------------------- 7
Traffic by months- -------------------------------------------- 10
Tanker traffic------------------------------------------------ 10
Number and daily average transits of tankers and general carriers- 11
Proportion of tanker and general net tonnage----------------- 11
Proportion of tolls from tank ships and from all other vessels--- 11
Nationality of vessels------------------------------------------ 12
Ocean-going traffic by nationality of vessels------------------- 12
Tons of cargo carried-------------------------------------- 12
Foreign naval vessels ------------------------------------------ 13
Vessels entitled to free transit ---------------------------------- 13
Local commercial traffic------------------------------------------ 14
Trade routes and cargo- ---------------------- --------- 14
Origin and destination of cargo --------------- ------------------ -15
By countries in principal trade areas, Atlantic to Pacific------- 16
By countries in principal trade areas, Pacific to Atlantic------- 18
Principal commodities----------------------------------------- 20
Atlantic to Pacific------------------------------------- ---- 20
Pacific to Atlantic----------------------------------------- 21
Classification of vessels----------- ---------------------- 21
Laden and ballast traffic----------------------------------- 21
By nationality--------------------------------------- 24
Average tonnage, tolls, and tons of cargo per cargo-carrying vessel-- 24
Steam, motor, and other vessels--------------------------------- 25
Summary of passenger movement at Canal during 1936------------ 25
Transient passengers------------------------ --- --------- 26
Frequency of transit of vessels-------------------------___ ---27
Net tonnage of vessels----------------------- ---------------- 29
Number of transit in net tonnage groups---------------------- 30
Hours of operation-------...........---------------..---................------------------.. 31
Lockages and lock maintenance- ------------------------------------ -31
Atlantic locks--------------------__----------------------------- 32
Pacific locks- -------------------------------------- ----------- 32
Power for Canal operation -----------------....-----...------------..--------. 32


9O1 a





IV TABLE OF CONTENTS

Page
Water supply -------------------------------------------------- 34
Dry season, 1936--------------------------------------------- 34
Floods------------------------------------------------------ 35
Madden Lake-..--------------------------------------------- 36
Madden Lake watershed ridge and power investigation survey------- 36
Madden Dam project--------------------------------------------- 36
Maintenance of channel and improvement projects-------------------- 38
Improvement project no. I1------------------------------------ 39
Improvement project no. 3------------------------------------ 39
Improvement project no. 5 (revised) ---------------------------- 39
Improvement project no. 6------------------------------------- 39
Improvement project no. 11------------------------------------ 40
Improvement project no. 13----------------------------------- 40
Gaillard Cut------------------------------------------------- 40
Atlantic entrance, Cristobal Harbor and Gatun Lake-------------- 40
Pacific entrance, Balboa Harbor and Miraflores Lake-------------- 40
Slides------------------- ------------------------------------- 40
Auxiliary dredging------------------------------------------------ 41
Subsidiary dredging division activities--------------------- ---------- 41
Equipment ---------------------------------------------------------- 42
Gamboa dredging station and townsite------------------------------ 43
Ferry service-------------------------------------------------- 43
Aids to navigation ---------------------------------------------- 43
Accidents to shipping ------------------------------------------- 44
Meteorology, hydrology, seismology:
Precipitation--------------------------------------------- 44
Air temperatures------------------------------------------------- 45
Windsandhumidity---------------------------------------- 45
Tides ---------------------------------------------------- 45
Seismology------------------------------------------------- 45
Visit of United States Fleet------------- -------------------------- 46
Rules and regulations-------------------------------------------- 46
SECTION II-BUSINESS OPERATIONS
Panama Canal business operations---------------------------------- 47
Mechanical division--------------------- -------------------- 48
Gross revenue-------------------------------------------- 49
Marine work------------------------------------------- 49
Repairs to naval vessels -------------------------------- 50
Repairs to Army vessels ------------------------------- 50
Repairs to other United States Government vessels-------- 50
Repairs to foreign government vessels- ------------------ 50
Construction and repairs for Panama Canal departments-- 51
Workotherthan marine work____------___---_---_--------------- -- 52
Plant improvements _------------------------------------- 52
Prospective trend of business-----------______------------------- 53
Financial ------------__---------------------------------- 54
Electrical division.------------------------------------------ 54
Purchases and inspections in the United States------------------- 57
Ship chandlery and other storehouse supplies ------------------- 59
Obsolete and unserviceable property and equipment _--------------- 59
Fuel oil, Diesel oil, gasoline, and kerosene----------------------- 59
Building construction and maintenance------ -------------------- 60
Termites------------------- -------------------------- 60






TABLE OF CONTENTS V

Panama Canal business operations-Continued
Quarters for employees: Page
Gold employees----------------------------- ------.-------. 61
Silver employees------------- ---------------------------... 61
Replacement of quarters for American employees ------------____ 61
Contract construction -----------------_________----------------------- 64
Motor and animal transportation ---------._._______ ----------------------64
Panama Canal press- ---------------------------------------- _____65
Revenues derived from the rental of lands in the Canal Zone------- 65
Business operations under the Panama Railroad Co ----------.....--------- .. 66
Telephones and telegraphs ------------------------------------_ 67
Receiving and forwarding agency:
Harbor terminals----------------------__------------------ 67
Canal Zone for orders ------------------------------------ 67
Commissary division -----------------------------------------... 67
Sales---------------....__--._____-------------------------------- 68
Purchases- --------------------------------------------___ 68
Manufacturing and other plants----------------------------. 69
Hotels_ ---------------------------------------------------_ _______ 69
Mind] dairy_--------__--______---____--______------------------------------- 70
Panama Railroad lands and leases ------------------------------....... 70
Coal...... ___...._....__-----------------------------------------------------__ 71
Panama Railroad---- ---------------------________------------------ 71
Panama Railroad steamshipline ----------_________ ---------------------72

SECTION III-ADMINISTRATION
Departments------------------------------------------...------.... 73
Operation and maintenance-------------------------------------.._- 73
Supply--..---.--------------------------.-------------------__ 73
Accounting--------_____-.------------_______.---------------------------- 73
Executive--------- ---------------------------- ------- ___ 74
Health----------...--------------------------..........--------------- 74
Panama Railroad Co ---------------------------------------- ....... 74
Changes in personnel and organization------.-------.----------------- 74
Division of personnel administration.-------_-- ------------ -------74
Plans section--------------------------------.........--------------- 76
Counsel------ ------------------------------.....-------------- 77
Appointments---------------------------------------------- ______ 78
Force employed-------------------------------------------__-----____ 79
Gold employees --------------------------------___------------_ 79
Recruiting and turnover of force --------------------..--------. 80
Silver employees ---------------------------______-----------------. 81
Wage adjustments:
Gold employees--------------------------------------------............ 83
Silver employees ---------------------------------------------_____. 84
Superannuated native employees- _----------------------___------------ 84
Registration of native workers------------_-------------------.------ 85
Repatriation of unemployed aliens -------------------------------- 86
Apprentice-learner committee ------------------------.-------------. 86
Public amusement and recreation---------.----------...---------------..____ 87
Experiment gardens --------------------______________-------------------------__ 88
Administrative problems- --------------------_____--------------------____________ 89






VI TABLE OF CONTENTS

Page
Legislation------------------------------------------------_-----. 89
Canal tolls-dual measurement system-..---- ------------- --------89
Origin of dual measurement system------------------------- 90
Effect of dual system----------------..--.-----.----------- 92
Panama Canal rules- ------------------------------.------ 99
Canal cost and toH rates ---------------------------------_ 100
Recommendations concerning tolls and measurement rules----- 102
Superannuation disability pay for native employees--------------- 102
Appointment of Canal Zone youths to the Naval Academy--------- 103
General legislative matters pertaining to the Canal-Railroad organ-
ization ------------ --------------------------------------- 104
Capital allotments, fiscal year 1937---------------------------------- 105
Explanation of capital allotments:
Dredging division station, Gamboa ----------------------------- 105
Quarters for American employees. ------------------------------- 105
Dock no. 15, Balboa (reconstruction)---------------------------- 106
Magistrate court, Balboa ------------------------------------ 106
Post office, Balboa ----------------------------------------- 106
Motor transportation shops and stables -------------------------- 106
Police station, Gatun ----------------------------------------- 106
Diablo Road, Balboa (reconstruction) --------------------------- 107
Paint and carpenter shop, Gatun locks--------------------------- 107
Nurses quarters, Corozal ------------------------------------- 107
Clubhouses, Ancon and Cristobal-------- ---------------------- 107
Oxy-acetylene plant, Balboa-- -------------------------------- 107
Feeder line and substation, Fort Sherman --------------------- 107
Madden Dam --------------------------------------------- 108
Diesel lines to piers------------------------------------------ 108
Quarters for locks military guards ------------------------------ 108
Ward building, Palo Seco------------------------------------- 108
Storage for locks overhaul equipment---------------------------- 108
Towing locomotive----------------------------------------- 108
Generalprogram -------------------------------------------------- 108
Additional needs------------------------- ----------------------- 109
Unemployment--------------------------------------------------- 109
Increasing capacity of the Canal------------------------------------ 110
Visit of President Roosevelt --_------------------------------------ 110

SECTION IV-GOVERNMENT
Government------------------------------------------------------ 111
Area of the Canal Zone ------------------------------------------- 111
Population--------------______--------------------------------------- ill
Publichealth---- --------------------------------------------- 112
Vital statistics---- -----------.--.---------------------------- 112
General death rate ---------------------------------------- 112
Birth rates, including stillborn -- --._------------------------ 113
Death rates among children under 1 year of age--------------- 113
Principal causes of death----------------------------------- 113
Malaria -------------------------------------------------- 114
Hospitals and dispensaries------------------------------------- 114
Quarantine and immigration service----------------------------- 114





TABLE Of CONTENTS VII

Pa"e
Municipal engineering...__---------------------.--------------------- 115
Water supply ------------------------------------------------- 116
Sewer systemns------------------------------------------------ 117
Roads, streets, sidewalks, Canal Zone---------------------------- 117
Reconstruction of Randolph Road--------------------------- 117
Relocation and reconstruction of Bolivar Highway------------ 117
Widening Fourth of July Avenue---------------------------- 117
Construction of Corozal cut-off road------------------------- 117
Gamboa project----------------------------------------------- 118
Dock no. 15, Balboa------------------------------------------ 118
Gatun project------------------------------------------------ 119
Madden Dam------------------------------------------------- 119
Cities of Panama and Colon------------------------------------ 119
Water purification plants and testing laboratory ------------------ 120
Public order --------------------------------------------------- 120
Fire protection---------------------------------------------------- 122
Magistrates courts:
Balboa------------------------------------------------------- 122
Cristobal --------------------------------------------------- 123
Pardons and reprieves-------------------------------------------- 123
Public-school system --__----------------------------------------- 123
Postal system--------------------------------------------------- 125
Air mail--_----------------------------------------------- 126
Post-office buildings------------------------------------------- 127
Customs--------------------------------------------------------- 127
Shipping commissioner--------------------------------------------- 128
Administration of estates------------------------------------------- 128
Licenses and taxes -----------.---------------------------------- 129
Foreign corporations --- ------------------------------------------ 129
Insurance -------------------------------------------------------- 129
Immigration visas------------------------------------------------- 130
Relations with Panama ----------------------------------------- 130
Commercial aviation------------.---------------------------------- 130
Revision of Canal Zone executive orders----------------------------- 131

SECTION V-FINANCIAL AND STATISTICAL STATEMENTS

Accounting system ----------------------------------------------- 131
Operations of the Panama Railroad Co------------------------------ 132
Panama Canal operations------------------------------------------ 132
List of tables published (tables I to 27, inclusive) --------------------- 133
Addenda not published (tables 28 to 57, inclusive)--------------------- 133















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 Com-
pany 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, are on file 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
Designing engineer, report of
Electrical division, report of electrical engineer
Municipal engineering division, report of municipal engineer
Locks division, report of superintendent
Office engineer, report of
Section of surveys, report of chief
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
Division of personnel administration, report of chief personnel officer
Surveying officer, report of
Public defender
Paymaster
Magistrates' courts:
Magistrate, Cristobal, report of
Magistrate, Balboa, report of
Land agent, the Panama Canal and Panama Railroad Co., report of
Washington iiffire, report of general purchasing officer and chief of office
Palrdon Board, report of chairman
Aeronautical inspector, report of
vin











ANNUAL REPORT


OF THIM

GOVERNOR OF THE PANAMA CANAL


BALBOA HEIGHTS, CANAL ZONE,
September 15, 1936.
The SECRETARY OF WAR,
Washbington, 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, 1936.
Particular attention is again invited to the discussion of the need
for legislation to remove the existing inequalities in the rates of tolls
charged ships using the Panama Canal and to prevent shipowners
from causing further reductions in toll charges by making struc-
tural alterations in vessels that reduce their net tonnage ratings but
that have practically no effect on their cargo-carrying capacity.
This subject is covered in section III of the report under the heading
of "Administrative problems." Ships now pay widely divergent
amounts per unit of actual earning capacity because under the dual
measurement system now in use the tolls are limited by a measure-
ment 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 Gov-
ernment are being unwarrantably and unnecessarily depleted
through our inability, utinder 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 super-
annuated native workers who have faithfully served the Canal over
a considerable 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 then to live in
their native environment and to be cared for by members of their





REPORT OF GOVERNOR OF THE PANAMA CANAL


own race. The necessity for this legislation is discussed at greater
length in section III of the report.
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.
The undersigned succeeded Col. Julian L. Schley as Governor on
August 27, 1936. At that time the preparation of this report had
not been completed.
Respectfully,
C. S. RIDLEY, Governor.

INTRODUCTION

The administration of the affairs of the Panama Canal enterprise
involves three main elements-(a) The operation and maintenance
of the Canal itself, which primarily involves the maintenance of the
waterway, the operation of the locks, and the control of traffic
through the Canal; (b) the operation of the auxiliary enterprises
necessary to provide adequately for the needs of shipping and of
the Canal operating forces, such as coal and fuel-oil plants, store-
houses for foodstuffs, ship chandlery, and other essential supplies,
marine and railway repair shops, terminal facilities for the trans-
shipment of cargo and passengers, a railroad line across the Isthmus
and a steamship line. between New York and Panama, quarters for
the operating force, and other adjuncts essential to the economical and
efficient operation of the Canal; and (c) the government of the
Canal Zone, populated by American civilians, native or tropical
workers and their families, and by the United States Army and
Navy defense forces, in which are embraced education, sanitation,
hospital service, police and fire protection, customs service, quaran-
tine and immigration services, postal service, etc.
The immediate supervision of the administration of these various
activities rests with the heads of the nine major departments and
divisions reporting to the Governor, in whom is centered responsi-
bility and control of the entire organization either in his capacity as
Governor of the Panama Canal or as president of the Panama
Railroad Co., an adjunct. of the Canal enterprise, organized as a
Government-owned corporation.

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





REPORT OF GOVERNOR OF THE PANAMA CANAL


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
supplementary services incidental to shipping.
There were no interruptions to traffic during the year.

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 those listed
under (b) in the introductory paragraph. 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, 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, cus-
toms, 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 central-
ization of all governmental activities under one head is essential
to economical and efficient administration.

SERVICES RENDERED BY THE CANAL TO SHIPPING

The most important items of the business of the Canal and its
adjuncts covering principal services to shipping are expressed
numerically in the following table, which presents a comparison of
the activities during the fiscal year 1936 with the 2 years immediately
preceding:






REPORT OF GOVERNOR OF THE PANAMA CANAL


Fiscal year, Fiscal year, Fiscal year,
1934 1935 1936

Trinsits of Canal by ocean-euina ships paying tolls...... 5,234 5,180 5,382
Free transits of ocean vessels ........................... 503 552 450
Total transits of ocean vessels.--------------------- 5,737 5. 732 5,832
Transits of local commercial traffic, not counted inocean-
going traffic------------------------- ---------- ----- 474 634 621
Number of lockages during year:
Gatun Locks.- .....- -.. ........-- ........... 5,365 5,316 5,334
Pedro Miguel Locks....... -------------------------------- 5,507 5.490 5,548
Mirstflores Lnock Tolls levied on ocean vessels ----------------- -- $24, 047. 183. 4 4 $23,307,062.93 $23,479,114. 21
Tolls on loc-il commercial vessels (not included in above)--.. $18, 519.58 $32,175.12 $31,512.65
Total tolls---------------------------------- .. 24. 065, 703. 02 $23,339, 238.05 $23,510,626.86
Cargo passing through Canal (tons)...------...--........------------- 24,704,009 25,309,527 26,505,943
Net tonnage (Panamra Canal measurement'i of transiting
vessels................ ...-- .. ............... ........ .. 28, 550,953 27,805,588 28,024,417
Cargo per Panama Canal net ton of ocean vessels, includ-
ingthose in ballaFt-.-.......... -.........-... .. --...... 0 8653 0.9102 0.9458
Average tolls per rin of eargo, including tolls on vessels in
ballast........................... ........ .......... $0.9734 $0.9209 50.8858
Ave-rage tolls per PaRnama Canal net ton o(if vessel
measuiemenr., including vessels in ballast.............. $0.S8423 $0.8382 $0.8378
Cali at Canal ports by. hips rnot tr nsiting Canal........ 9A9 925 1.008
Cargo handled and transferred at ports (tons)............ 1,157,649 1,289,808 1,373, 179
Coil. sales *in l issues i'tons).. . . . . . ... .52,657 43,696 41,813
Coal, number of ennmriercial ships bunkered............. 196 198 215
Fuel oil pumn el (barr-l........... .................. ..------------------------ 9,710,247 9,713,542 10,068,543
Fuel oil-number of ;hips served other than vessels
operated by the Panama Canal ---------------------.-- 1,724 1,703 1,674
Ships repaired, other than Panama Canal equipmentL 513 522 594
Ships drydocked. other than Panama Canal equipment 49 97 119
Provi'i .nssnld tocommercialships (commissarysales)-- $330,570.82 $355,954.92 $304,547.29
Chandlery sold toships(storehousesales)---------------- $28,165.99 $48,730.33 $46, 183.90


REVENUES AND EXPENSES

The net revenues from Canal operations proper were $14,531,654.54,
as compared with $14,519,506.01 last year. Net revenues from busi-
ness operations under the Panama Canal for 1936 were $920,185.23,
as compared with $1,021,216.61 in 1935. The combined net revenues
accruing from the Canal and its business units totaled $15,451,839.77,
as cominpared with $15,540,722.62 in 1935. The capital investment at
the beginning of the fiscal year was $546,636,490.05, and the net
revenue represented a return of 2.83 percent on this investment, as
compared with 2.86 percent the preceding year.
The foregoing figures do not include the operations carried on by
the Panama Railroad Co., which yielded a net. profit of $1,077,987.07
for the year, as compared with $9271,642.87 for the previous fiscal
year, an increase of $150,344.20, or 16.2 percent..

EARNINGS AND REPLACEMENTS

W ith respect to the operations of the Panama Canal, it will be
noted that the net revenues from the Canal operation were slightly
higher than in 1935, while for business operation they were some-
what lower. In this connection it. may be stated that the profits in
the business operations for 1935 were enhanced some $145,000 due to






REPORT OF GOVERNOR OF THE PANAMA CANAL


Economy Act pay-roll deduction, whereas the act was not effective in
1936. Eliminating the Economy Act savings, business operations for
1936 would have shown a greater profit than in 1935. Except. for
1934, the net earnings have fallen short each year since 1930 of re-
turning 3 percent on the capital investment, which is regarded as the
minimum of fair return. An abnormal condition existed in 1934,
however, in that notwithstanding a substantial increase in tolls for
that year in comparison with 1933, there was an actual decrease in
operating costs due to Economy Acts and the curtailment of various
expenses.
The past fiscal year marked the close of 22 years of successful
operation of the Panama Canal; in fact, its dependable and efficient
service in shortening the routes of the world's conmmnerce 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 subject to deterioration and requiring regular repair and
periodical replacement, but without reserve funds from operating
revenues by which to defray the costs thereof. These have been in
service for 22 years.
Some of these structures, such as dams, breakwaters, and concrete
buildings, are still in excellent condition and require but little ex-
penditure 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 gen-
eral structures referred to are those which are not directly self-
supporting, but which, nonetheless, are essential to the primary func-
tion of the Canal in the earning of tollW, 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.






6 REPORT OF GOVERNOR OF THE PANAMA CANAL
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 appro-
priation.
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
consideration to the requirements submitted annually by the Governor
for these purposes.












SECTION I


CANAL OPERATION AND TRADE VIA PANAMA CANAL

TRAFFIC IN 1936

The number of ocean-going commercial I vessels making transit of
the Panama Canal in 1936 aggregated 5,382, in comparison with 5,180
in 1935, a gain of 202, or 3.9 percent. This represents a daily average
of 14.70, as compared with 14.19 in 1935, 14.34 in 1934, 11.40 in 1933,
and 11.92 in 1932. The highest traffic in any fiscal year since the
Canal has been open to traffic was in 1929 when 6,289 vessels passed
through, a daily average of 17.23.
Tolls on the 5,382 transits in 1936 totaled $23,479,114.21, in com-
parison with $23,307,062.93 in 1935, an increase of $172,051.28, or 0.7
of one percent.
The net tonnage, Panama Canal measurement, of the ocean-going
commercial traffic going through the Canal in 1936, totaled 28,024,417
in comparison with 27,805,588 in 1935, a gain of 218,829, or 0.8 of
one percent. Cargo tonnage in 1936 aggregated 26,505 943, in com-
pariso nwith 25,309,527 in 1935. an increase of 1,196,416, or 4.7 per-
cent.
The larger percentage gain in transits in comparison with tonnage
and tolls is due to a reduction in the average size ship using the
Canal. The average Panama Canal net of the vessels using the
Canal in 1936 was 5,221 in comparison with 5,390 in 1935.
The history of Canal traffic has reflected five distinct, trends in
the world's economic and commercial developments. After the
opening of the Canal on August 15, 1914, there was a slow growth
through 8 years, in which the maximum transits were 2,791 in 1921,
The rise in California oil production was primarily responsible for
increasing the transits to 3,908 in 1923 and 5,158 in 1924. Traffic
continued at about this level until the business expansion brought a
considerable increased volume toward the end of the last decade when
Canal traffic reached peaks of 6,289 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 actual low point being
I Includes all tolls-paying vessels having a measurement of 300 or more net tons or 500
or more displacement tons.





REPORT OF GOVERNOR OF THE PANAMA CANAL


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 meas-
uremient, to 22,803,798. .However, a gradual increase in Canal traffic
began in August 1932, coincident with the general improvement in
economic conditions, with the result that traffic for 1933 fell but
little short of equalling that of the previous year. In 1934 there was
a rise of over 1,00) transits, but the 1935 traffic was slightly less than
in 1934 due to a considerable drop in tanker traffic, which more than
offset the continued gradual rises among general cargo ships.
The number of transits and the cargo tonnage passing through the
Canal in 1936 was the highest since 1930. Net tonnage (Panama
Canal measurement) and tolls collection, however, were less than
for the 5,234 transits in 1934. This is attributed in the main to a
further curtailment in the transit of tankers which, on the whole,
are of greater tonnage and pay more tolls than the average ship of
the general cargo type. Traffic of tank ships in 1936 was the lowest
of any fiscal year since the beginning of the heavy movement of
mineral oils from the California fields in 1923. (Details of tanker
traffic are covered on pp. 10 and 11 of this report.)
Of the gain in cargo tonnage in 1936, the increase from the Atlan-
tic to the Pacific was 9.6 percent and in the opposite direction, 2.6
percent. A general increase was noted throughout the list of lead-
ing commodities shipped west-boiund, prominent among which were
such items as manufactures of iron and steel, mineral oils, paper and
paper products, tinplate, sulphur, automobiles, machinery, etc. In
the other direction a number of important increases were noted-
lumber, ores, sugar, canned goods, and fresh fruit making important
gains-but the total increase was held to a comparatively insignifi-
cant figure due to a loss of over a million tons of mineral oils. (A
summary of the commodity movement is presented on pp. 20 and 21
of this report.)
The west-bound movement of cargo in all of the principal trade
routes, with the exception of that from the United States to the
Orient, made substantial gains in comparison with 1935, the move-
ment between the United States and the Orient being adversely
affected by smaller shipments of scrap metal. In the opposite direc-
tion the United States intereoastail trade decreased 660,202 tons, or
11.4 percent, (duie principally to a sharp reduction in mineral oil ship-
minents; and that between South America and Europe declined 310,-
826 tons, or 11.8 percent, due chiefly to lighter shipments of mineral
oils and nitrates. The east-bound traffic over all the other principal
trades either equals or shows gains in comparison with 1935.







REPORT OF GOVERNOR OF THE PANAMA CANAL


(Movement of cargo over principal trade routes will be found on
pp. 14 to 19 of this report.)
In the fiscal year 1936 the transits of naval and other public ves-
sels of the United States Government, war vessels of the Colombian
Government, vessels transiting solely for repairs, and training ships,
none of which paid tolls, numbered 450, as against 552 for 1935.
The total of tolls-paying and free transits combined, which includes
all ocean-going vessels of 300 tons or more, numbered 5,832, in com-
parison with 5,732 in 1935, making daily averages of 15.93 and 15.70,
respectively.
The receipts from tolls reported by the accounting department for
the fiscal year 1936 were $23,506,806.46. This figure includes tolls on
local commercial traffic, which are not included in the Canal statis-
tics covering ocean-going commercial traffic. The accounting depart-
mnent 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 $27,-
692.25 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 vess-els for each
fiscal year since the Canal was opened to navigation are shown in
the table below:


Fiscal year ended June 30-


1915 ------------..--..-.....---------...-----
1916 2 ------------------------------..----------------
1917................. - - ------- --- .....----.-...
1918...--------------------------.............---------------
1919-- -- ---......-- ....------- ----.....-- --.--.
1920.---.---------------.-------.----------.------
1921...'-----------------------. --------. ---------
1922 - - - - --.......-. ---......-- ----- -----
1923 .. - - - --.....--........--.--- -- ----. ---
1924.-----------.......--...---------------------------
1925...----..--------------......-..------.-------.--------
1926- - --........- .... ...-- - ------- -.-. ---- .
1927..------------------.--....-------...------.--------
1928-- -....--..---.--.-------------. -----. ---
1929...---------------.....-------...-..----...---..-----------
1930-------------..---.. -.. ----------.... -----------
1931....-- ....-- ...-- ....-- --.- ---- .....--- --- .
1932...........--------------------.....--......-----------...----..---
1933-...- .. ... ..-..-..-- - --------.- -... --- ----..
1934.........--.-....-- ....- ......... ...--- ...- -
1935........-... ..- .........-- ...................
1936....--....-- ----- -----------------------
Total-------.------ -------------.......-


Number
of
transit


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
5,382
87,603


Panama
Canal net
tonnage


3,791,770
2.391,433
5,791,236
6,563,864
6,116,.877
8, 538, 804
11,405,550
11,411, 482
IS, 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
28, 024, 417


Tolls


$4,366,747.13
2. 403. 089. 40
.5, 620, 799. 83
6,428,780. 26
6. 161, 290 79
8, 507.938. 68S
11,268.681.46
11, 191, 828. 56
17, 504, 027. 19
24, 284,659.92
21,393,718.01
22.919,931.89
24, 212,2.50.61
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
23,479,114.21


422, 369. 212 383, 113, 811.01


99722-36 2


Tons ot
cargo


4,888.8400
3,093. 335
7,054, 720
7,525, 768
6,910,097
9,372, 374
11,.595,971
10, 8S2, 607
19, 566, 429
26.993,167
23.956,549
26,030.016
27,733,555
29,615,651
30,647,768
30, 019. 429
25, 065, 283
19,798,986
18, 161, 165
24.704,009
25, 309, 527
26,505,943
415.429,749


I Canal opened to trMffe Aug. 15, 1914.
3 Canal closed to traffic approximately 7 months of fiscal year by slides.






10 REPORT OF GOVERNOR OF THE PANAMA CANAL

TRAFFIC BY MONTHS

The commercial traffic during each month of the fiscal year 1936
is summarized in the following table, in which are inserted for
comparison the figures for the preceding year:
I
Number of Panama Canal net Tons of cargo Tolls
vessels tonnage
Month_______ ___________ ______________________
1934-35 1935-36 1934-35 1935-36 1934-35 1935-36 1934-35 1935-36

July.----------------.. 394 377 2,177,193 2, 035,873 1,934, 237 1, 777, 815 $1, 822, 909.64 $1, 683,649.94
August------------- 401 395 2,245, 247 2,102.387 2,187, 780 2.019,298 1,906,821.39 1,757,259.77
September.......... ----------435 391 2,332,351 2,095,599 2,112,832 1,994,487 1, 947.,536.76 1,780. 805.80
October............. ------------- 467 441 2,516, 087 2,357,640 2,172.752 2,228,536 2,098,299.03 1,964, 076.81
November.......... ----------469 418 2, 546, 417 2,165,559 2,339.001 2,050,422 2,137,916.55 1,796,820.57
December........ ---------- 443 459 2, 331,.250 2,382,602 2,089,310 2, 187,731 1,952,192.57 1,997,206.74
January.------------........... 425 472 2.294,137 2.411.073 1,945,085 2.148,935 1. 911,094.13 2,018,543.52
February........... -----------430 452 2,.205.057 2.322,013 1,836,383 2,155,031 1, 826,999.63 1,952,682.73
March.............. -------------- 455 526 2,398,231 2.714.768 2,210,434 2,634,150 2,018,114.62 2,293,874.51
April............... --------------- 432 482 2,258,926 2,483.561 2,079,028 2,430,134 1,890.572.41 2,079.730.70
May................ ---------------- 424 488 2.366.455 2.504,215 2,291,968 2,419.652 1,996,156.81 2, 081,103.73
June.-...---------------... 405 481 2,134,237 2,449,127 2,080,717 2,459,752 1.798,449.39 2,073,359.39
Total--------- 5, 180 5, 382 27, 805, 588 28,024, 417 25,309,527 26, 505,943 23,307, 062.93 23, 479, 114. 21
Average per
month...... 432 449 2,317, 132 2,335,368 2,109,127 2,208,829 1,942,255.24 1,956,592.85

TANKER TRAFFIC

Transits of tank ships during the fiscal year 1936 totaled 598,
a decrease of 193, or 24.4 percent, in comparison with the 1935 total
of 791. Tanker transits in 1936 comprised 11.1 percent of the total
ocean-going commercial transits, made up 12.4 percent of the total
net tonnage (Panama Canal measurement), paid 13.6 percent of the
total tolls collected, and carried 14.9 percent of the cargo which
passed through the Canal.
Cargo carried through the Canal in tank ships during the fiscal
year 1936 amounted to 3,953,795 tons, in comparison with 4,914,902
tons in 1935, a decrease of 961,107 tons, or 19.6 percent. Segregation
of the 1936 traffic by direction of transits shows that 496,770 tons
of tanker cargo went through from the Atlantic to the Pacific, and
3,457,025 tons from the Pacific to the Atlantic.
Of the mineral oil cargoes carried through the Canal during the
fiscal year 1936, approximately 40 percent was gasoline, benzene,
and naphtha; 38 percent crude oil; 15 percent gas and fuel oils; and
the remainder, 7 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 impor-
tant component of the traffic through the Canal, show the traffic
divided between tank ships and all other ocean-going commercial or
tolls-paying vessels, classified herein as general. The tables show
the number and daily averages of the two classes, and of the total;
the quantities and proportion of net tonnages, and the amounts
and proportions of tolls:








REPORT OF GOVERNOR OF THE PANAMA CANAL 11


Number and daily average transits of tankers and general carriers


Fiscal year


1923i----..-------. ------------------
1924.. -------------------------------
1926----- .....................-....-
1926------..------------... -----------
1927 --------------------------------
1928.--.---------...-----------.---.----
1929..--.....-.--..------.................---
1930.----------------..-----------------
1931----.-.-----------------------....
1932---...---------------------------
1933----..---------------.------------
1934--------------.----..-------------
1935---------------------------------.
1936:
July.--.--..--- ------------------
August-..-..-----------------------.
September-..-.-------...------..----
October-...-------.-----.----------
November -.-----..--.....-...- -
December.----.------.------------..
January.----------.-------------....
February-----. -------....... ---------
March........................--------
April--....-..----.--. -------------...
M ay...-- -.....-------.- ----------
June...--.........................

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


Ocean-going commercial
transits


Tankers


913
1.704
1,079
1,090
1,324
1.121
1,083
1,218
944
612
636
942
791

47
57
50
52
37
53
40
39
54
55
55
59

598


General


2,995
3.454
3.513
3,997
3.969
5,132
5, 206
4,809
4,426
3,750
3,526
4,292
4,389

330
338
341
389
381
406
432
413
472
427
433
422

4.784


Total


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

377
395
391
441
418
459
472
452
526
482
488
481

5.382


Daily average


Tankers


2.5
4.7
3.0
3.0
3.6
3.0
3.0
3.3
2.6
1.7
1.7
2.6
2.2

1.5
1.8
1.7
1.7
1.2
1.7
1.3
1.3
1.7
1.8
1.8
2.0

1.6


General


8.2
9.4
9.6
11.0
10.9
14.0
14. 2
13.2
12.1
10.2
9.7
11.7
12.0

10.7
10.9
11.3
12.5
12.7
13. 1
13.9
14.3
15.3
14.3
13.9
14.0

13.1


Proportions of tanker and general net tonnage


Panama Canal net tonnage


Tankers


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
3,487,498


General


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
24,536,919


Total


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
28,024,417


Percentage of total net tonnage


Tankers


General


71. 1
60.9
71.9
74.4
70.9
78 8
80.4
78. 1
81.0
84.9
83.3
79.6
83.2
87.6


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
100.0


Proportion of tolls front lank ships and from all other vessels


1923--... .............-
1924.....................
1925-....------ ------
1926-------- -----.-
1927.---....- .......-
1928....................
1929 ---.-.......--...
1930.------------.-...........
1931........--.---.........
1932..---- --...-- -.--
1933---........-- ....- -
1934------........----------
1935..----------....-.....
1936---.....------..-..


Tolls paid by shipping using canal


Tankers


$4,760,324.63
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
3,192, 498. 46


Percentage of total tolls


- ____ _____ ___-- I-


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
20, 286,615.75


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
23.479. 114.21


Tankers I General


27. 2
37. 4
26.8
24.5
27.5
20.2
19.0
21.3
19.0
15.4
17 3
21.5
18.0
13.6


72.8
62.6
73.2
75.5
72.5
79.8
81.0
78.7
81.0
84.6
82.7
78.5
82.0
86.4


Total



10.7
14. 1
12.6
14.0
14.5
17.0
17.2
16.5
14.7
11.9
11.4
14.3
14.2

12.2
12.7
13.0
14.2
13.9
14.8
15.2
15.6
17.0
16.1
15.7
16.0

14.7


1923.-- ...---.- ---------..------
1924--. ---- --... -.-------...- ...
1925----..--- - -.....---..--..-
1926.---------....------.----
1927.-..---- ...--- -------..-
1928I --- ----..-...------.----.----
1929--.----------------------
1930.------ --.... ..--.---- ...- .
1931--.-------.-..------..-...
1932.--.--.--...-- - -----------..-
1933------------... ....- --- -
1934-- --..--------.-------- ----.. ..
1935-...--.- ---- --- --........
1936 .--------.-.-. -- -..---. ---- ..-- -


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
100.0


._1 I-








1U REPORT OF GOVERNOR OF THE PANAMA CANAL


NATIONALITY OF VESSELS


Segregation of the ocean-going traffic through the Canal during

the fiscal year 1936, 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 1936, by
nationality of vessels


Nationality




Belpin ............
British.---------...........
Chilean-...........
Danish-----------
Danzig --------
EcuadJorean.......
Finnish----------.
French............
Germin...........
Greek.-----------
Honduran--------
Hunearian........
Italian..... .....-.. -
Japanese----------
MAexican...........
Netherlandr........
Norwegian........
Panamanian.......
Peruvian ...------
Spanish-----------
Swedish...........
United States-_-.
Venezuelan------
Yugo0laviin.......

Totals, fiscal year:
1\36. . . . . .
11,315 ...........
1935--------
1934-------


Num-
ber of
transit



4
1,304
19
156
3
1
1
99
310
48
14
1
47
271
1
139
556
201
4
7
131
2,045
4
16


5,382
5,180
5,234


Measurement tonnage


Panama
Canal net


25.,300
7,2';>, .0,5
7, 2 I05
67.4bL
722,128
19,943
418

578,782
1,243,710
220,393
22,014
3,111
343,838
1,607,914
------------
609,973
2,622,289
654,890
6,560
31,575
615,596
11,323,440
4,324
71,733

28,024,417
27, S05, 588
2-, .50. 953


UInited
States
equivalent

20.7W4
5, 132.8 Y
51, 97
457,417
I6. 040
395

376,084
847,072
160,374
19,372
2,646
209,183
1,196,490
------------
413,285
1,763,118
509,701
5,916
26, 600
426,810
7,785,168
4,232
55,878

19, 481,311
19,428,658
20, 333,299


Registered


Gross

35. 1W2
8,579,476 j
95,456
779, 550
28, 06 i
870

704,35.S
1,465,649
253. f6.12
35, 714
3,872
406, 863
1,928,220

697,436
2,937,747
917,578
8,620
42,468
1,050,872
13,060,738
8,168
89,712

33,130,259
33,013,356
34, 347. 5S3


Net

23.532
5,192,871
55. 630
477,140
15, 7 19.
407

389,756
868,006
156,528
20,220
2,35.3
241, 754
1,191,313

416,307
1,765,574
506,418
4,676
26.299
520, fx8
7,708,570
4,320
55,685

19,643,946
19,609,276
20,523,877


Tolls




$22,048.00
6.156.365.66
64,871.25
554,914.02
17, 217. 0r
300.96
1,645.00
460,877. 48
1,067,367. 44
189,041. 14
20, 032. 654
3.307 50
259, 757. 26
1,479, 731. 33
721.00
495. 7!2.63
2,0719,501.09
570,231.74
7, 395 00
28, 787. 39
488,048.29
9,437,141.50
4,181.40
69,847.50

23,479,114.21
23,307,062.93
24,047, 183.44


Tons of
cargo



23,202
6,181,571
79,456
627,407
16,870
-----------

544,343
1,305,090
238,310
5, 959
6,020
160, 262
1,697,880
511i.620
2,717,660
654,610
4,109
35. 415
e55,409
10,700,535
3, 845
136, 170

26, 505, 943
25,309.527
24, 704,009


NOTE.-The above statement includes only ocean-goi ni commercial traffic of 300 net tons and over,
Panamra Canal measurement, and foreign naval vessels of 500 tons displacement and 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 1936, the percentage of total cargo carried by ships of

each nationality is also shown:

Tons of cargo carried


Nationality


United States-...........--.......
British.........................
Norm egian.....................
Japanese.......................
German.-----...- ........ ..----
Swedish........................
Panamanian ...................
Danish....... .......-...........
French........................
Netherland --.------.....-........
All remaining.--..--...---.......

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


8,835, 055
4,637,388
1,427.284
1,031,704
1, 078, 738
761,015
44,328
521,481
338.586
44u, 870
682.537

19.798,98C


7,987,739
4, 170. 995
1,773, 101
1,159,733
813.231
403, 169
61,950
448,863
249,395
381,071
711. 858

18.161,165


11,578,453
5, 193. 136
2, 080, 833
1,510,916
962,218
766,921
13R. 405
533,262
430.471
403,451
1,107,943

24,704,009


10,825,573
5,77e6,021
2,463, 675
1,446,049
1,300,991
782,548
121,758
555,981
570,034
439,168
1,027,720

25,309,527


10, 700, 535
6,181,571
2,717,860
1,697,880
1,305,090
855,409
654.610
627,407
544,343
511.620
709,618

26,505,943


40.4
23.3
10.3
6.4
4.9
3.2
2.5
2.4
2.1
1.9
2.6

100.0






REPORT OF GOVERNOR OF THE PANAMA CANAL 13

Twenty-four nationalities were represented in the ocean-going
commercial traffic passing through the Canal in 1936, compared with
21 in 1935 and 23 in 1934. As shown by the preceding tables, vessels
of United States registry led in the number of transits; this has been
the case for the past 18 years. From 1915 to 1918, inclusive, the first
4 years in which the Canal was open to traffic, transits of British
vessels exceeded those of any other country, but United States vessels
have led in transits ever since.

FOREIGN NAVAL VESSELS

In the Canal traffic statistics, foreign naval vessels such as col-
liers, transports, supply ships, etc., with a measurement of 300 net
tons (Panama Canal measurement) or more, and foreign naval ves-
sels such as battleships, cruisers, destroyers, submarines, etc., with
a displacement measurement of 500 tons or more, are classified as
ocean-going commercial vessels. Statistics 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, however, the following table
shows foreign naval vessels transiting the Canal which paid tolls on
the basis of displacement tonnage:


Number of Displace-
Nationality is ment ton- Tolls
transit nage

British...........................................................--------------------------------------------------------.. 9 49,672 $24,836.00
Finnish...-..---................................................. -----------------------------------------------------1 3,290 1,645.00
German.----------------..-----.........----------------------------------............................. 3 18,592 9,296.00
Mexican........................................................... -------------------------------------------------------1 1,442 721.00
Total----------------------------------.............................-.....----------------- 14 72,996 36,498.00


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 measured ton-
nage, 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:







REPORT OF GOVERNOR OF THE PANAMA CANAL


Class


U S. N avy... --- - .....-- -- ---------- .----- .
U. S. Army....- -.. ----... ..-..-... ............
Other U. S. Government......-...-.....--.......
Total U. S. Government.....-- ..........
Colombian Government ........................
Solely for repairs.....-..........................
Training ships.....-.......................... .


Number
of trans-
its


274
151
1
426
8
14
2


Tonnage

Panama Displace-
Canalnet meant


286,112
406,706

692,818
13,352
38, 318
..........


Grand total----------------------------- 450 744, 4881 390, 836 1 818, 640. 22


LOCAL COMMERCIAL TRAFFIC

Transits of small cargo-carrying vessels, and other small craft
such as yachts, tugs, etc., of less than 300 tons Panama Canal measure-
ment. or less than 500 tons displacement measurement, are excluded
from the statistics of ocean-going commercial traffic, although they are
not exempt from the payment of tolls. The number of these small
vessels transiting the Canal during the year, together with the ton-
nage, tolls, and amount, of cargo carried, are shown in the following
table:


Tonnage
Number Tolls Cargo
of transits Panama Displace- tonnage
Canal net ment


Atlantic to Pacific: Local commercial----------- 347 15,908 .......... $15,175.86 5.641
Pacific to Atlantic: Local commercial----------- 274 15,558 .......... 16,336.7j 15,062
Total----------------. ------------------ 621 31,466 .......... 31.51265 20,703


TRADE ROUTES AND CARGO

Cargo shipments through the Panama Canal during the fiscal year
1936 and in the 3 preceding years, segregated by principal trade
routes, are shown in the following tabulation:


Tons of cargo


1933 1934 1935 1936


United States intercoastal:
Atlantic to Pacific-----------------------------
Pacific to Atlantic-------------.........................
Total---------------------------------------
United States and Far East (including Philippine
Islands):
Atlantic to Pacific-----------------------------
Pacific to Atlantic.- ---...... -..-.- ..... ------
Total-----------------------------------..------


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


1,323,003
1.077,.734
2,400,737


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


1,822,955
1,535,733
3,358,688


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


2, 532, 280
1,067,426
3,599,706


2, 578, 508
5,140,567
7, 719,075


2,042,491
1,395,668
3,438,159


Tolls



$425,480.91
357,291.75
168.50
782,941.16
9,549.50
21,.649.56
4,500.00


370,575
10,648
337
381,560
276
9.000


Tons of
cargo



75,624
30,868
.---------
106,492
840

-107,-332
10-1,332


I 1 I






REPORT OF GOVERNOR OF THE PANAMA CANAL


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 States and west coast South America:
Atlantic to Pacific.----------.----------.. -----
Pacific to Atlantic...------------.-------------..--
Total-----....-....-------. --------. -------------
Europe and Australasia:
Atlantic to Pacific--------------------..-----------
Pacific to Atlantic---------.-----------.---------
Total.--..---...-- - -------------... -... -------
United States and Hawaiian Islands:
Atlantic to Pacific....- ....---..---.--------.-----
Pacific to Atlantic----..--..---------------------
Total.------........------...---.--..------
United States and Australasia:
Atlantic to Pacific--..............------.-..-...--.......-
Pacific to Atlantic... --...........----....--..----....
Total---------------..----.--.------...---
Miscellaneous routes and sailings:
Atlantic to Pacific-----... .................--.....
Pacific to Atlantic--------------........................-----
Total- -......-- .------ ...-...-..-- - ---- --- -
Total traffic, all routes:
Atlantic to Pacific.----..----------------------
Pacific to Atlantic ---.........................
Total----------------------------------------. -


Tons of cargo


1933 1934 1935 1936


164,695
1,368,234
1,532.929

70,573
2,788,173


2,858,746

249,966
1,700,808
1,950,774

44,474
294,076

338,550


235,075
295, 896


212,213
2, 433,350
2,645,563

85,153
2,010,898


I I ~ - - -


2,096,051

320,366
1,530, 881
1,851,247

108.447
1,633,499
1,741,946


252, 680
600,931


304,212
2,640,962

2,945,174

77,282
2,335,108


2,412,390

379,785
1,388,187
1,767,972

142,870
1,380,790
1,523,660

320,280
615,144


395,917
2,330,138
2,726,053

95,142
2,377,190


2,472,332

614,703
1,788,865
2,403,568

199,199
1,909,185
2,108,384

419,824
636,997


530,971 853,611 935,424 1,056,821

63,798 114,227 111,030 142,774
349,938 381, 131 368,024 371,892
413,736 495,358 479,054 514,666

164,215 211,018 277,477 356,117
18,552 81,303 152,567 155,875
182,767 292,321 430,044 511,992

596, 184 960, 883 1,221,864 1,405,224
929,163 1, 483.373 2,030,829 2,149,669
1,525,347 2,444,256 3,252,693 3,554,893

4,507,070 6.162,649 7,529,721 8, 249, 899
13, 654, 095 18541,360 17,779,806 18,256,044


18, 161, 165


24,704,009 25,309,527


26, 505,943


ORIGIN AND DESTINATION OF CARGO


The following tables show the origin and destination, by principal
trade 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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20 REPORT OF GOVERNOR OF THE PANAMA CANAL

PRINCIPAL COMMODITIES

Statistics of commodities passing through the Canal are not pre-
cise because at the time of transit it is not required that complete
manifests of cargo carried by vessels be submitted to the Canal
authorities. In lieu of a manifest. the master of each vessel is re-
quired to submit a cargo declaration, which is a briefly itemized state-
ment, 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 tend-
ency not to list small miscellaneous shipments but to include them
under the head of general cargo; not infrequently no other classifica-
tion is made of the entire cargoes carried by vessels. Hence, except
in the case of commodities commonly shipped in bulk, such as min-
eral 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 ----------
1933 1934 1935 1936

ATLANTIC TO PACIFIC
Long tons Long tons Long tons Long tuns
Manufactures of iron and steel----------------------- 502,503 982,596 1,114,189 1, 379, 363
Mineral oils------------------------------------- 407,492 550,469 605,595 678,607
Scrap metal----------- -------------------------- 273,375 503,277 1,186,061 646,464
Paper and paper products---------- ---------------- 214,568 256,449 347.424 397,196
Cotton, raw-------- ----------------------------- 432,043 492,459 362,548 331,989
Phosphates--------- ----------------------------- 154,145 188,320 255,033 289, 870
Tinplate-------------- -------------------------- 10500 241,854 199,495 246,902
Sulphur -------..------------.-------------------- 141. 790 206,509 20R. 678 224,734
Ores, various ------------------------------------- 28,053 27,572 97.502 214,711
Automobiles -- ---------------------------------- 50,731 90,111 131,.341 204.996
Metals, various ----------------------------------- 30. 62 60, 140 175,1)66 169,141
Asphalt and tar------------ -----------------------. 47. 748 tI, 581 113,305 139.864
Ammonium compounds---------------- ------------ 35. iJi- 56. 3.11 76,073 137,338
Machinery ---- ----------------------------------- 5 4. 7s1 7, 25 112,339 137,201
Canned goods (fish, fruit, vegetables, etc.)---------- 1111. 751 101;. W9 121, 478 135.627
Coal and coke ---------------------------- --------- 5, f48 110, 294 97.582 132,956
Cem ent ............................................... 0-J. 105 s5, 45 103,80 126. 596
C her itals..-.........--.................................. 64,072 87.652 98,907 116,066
Textiles.-----------------------------------------. 7s. 555 9S. 269 96. 269 10S, 733
Nitre ... ... 45. 295 69, 164 58, 46i4 103, 178
Automobile accessories.---------------------------- -5, 2.7 5,217 79, 818 100,625
Sugar.................................................. 40.256 75,770 50,052 94.607
Liquor- amd wines..................................... 15.431 25,.972 60,034 66, 130
Glass and glassware................................... 47, 374 51.548 53,824 65,202
Sand---. ---....----------------------.-----.-------- 23,519 31,225 31.967 63,992
Coffee ................................................. 54,491 64,624 52.670 61,503
Railroad material---------------------------------- 18,205 42,350 2S, 125 61,274
W ood pulp ...................................... .... 38, 986 38, 947 45,222 55,529
Rosin................................................. 38,024 4.3,834 47,527 55,527
Tobacco ............................................... 67,548 72. 001 52,611 51,707
Sall................................................... 30, 263 60.018 53.931 48.485
Lumber and mill products............................. 21,826 27,720 26.776 47.835
Creostote............................................... 15,315 14. 626 38,395 44,615
Potash................................................ 16,497 14,041 15,369 43,826
Paints and varnishes.................................. 8. 676 14, 740 26, 265 35, 496
C orn ................................................. 12R. 3.31 42,241 104,783 38,072
Soda und sodiumrn compounds.......................... 25.892 32,484 25,909 37,255
Agricultural imiplements............................... 11,567 25,246 32,037 36.556
Oils. vegetable ......................................... 39,132 38,751 39.434 30,939
Fertilizers (unclassifled)............................... 10, 103 26,555 13,304 28,204
Soap and products..................................... 28.631 24.505 23,746 21,429
All other .............................................. 857,987 967,563 1,000,965 1,236,499
Total............................................ 4,507, 070 6, 162, 049 7, 529, 721 8,249,899







REPORT OF GOVERNOR OF THE PANAMA CANAL 21

Commodity movmeniet-Continued

Fiscal year ended June 30-
Commodity --------------
1933 1931 1935 1936

PACIFIC TO ATLANTIC Long tons Long tons Long tons Long tons
Mineral oils.----.. --------------........-...-----...---------..... 3, 506,356 5, 443,271 4. 342, 231 3,277,078
Lumber............................................... 1549, 483 2. 148,020 2, 165. 835 2, 764,091
Ores................................................... --------------------------------------------90,518 1,224,135 1, 080, 144 1, 496.021
Wheat.-----------------------------------------............................................ 2,368, 892 1. 371,258 1, 533, 056 1, 480, 187
Sugar-----------------------------------------................................................. 1,667,496 1. 773, 137 1,212,145 1, 391,.909
Nitrate-..---..---------------.---.......-----------------....... 1S6, 783 1, 059,425 1, 146, 84S 1, 181, 197
Canned goods (ish, fruit, vegetables, etc.) -----------...........-- 865, 716 882,254 937, 172 1, 00, 0.855
Metals, various........................................ ----------------------------------376.396 511.759 608,122 599, 388
Flour------------------------------------------.................................................. 180.858 270,531 319.655 337,487
Fruit, fresh.......................................... --------------------------------------285,523 311,530 270,666 336,367
Food products in cold storage ----------------- ----------- 162,143 357,058 363,745 324,092
Fruit, dried........................................... -------------------------------------314,061 307,714 261,116 309,096
Soybeans---------------------------------------..........................................-. 39,593 206,605 433,322 239,860
Barley...... ...................................----------------------------------------- 209,890 197, 183 200,030 221,624
Oils, vegetable--.-------------.--.... ------...... --....---------- 95,473 154,710 193,470 221,255
Beans, edible, dry.................................... --------------------------------103,522 128,473 130,649 171,444
Wood pulp............................................ --------------------------------------106,329 135,214 129,771 164,001
Wool.................................................. -------------------------------------------97,852 155,627 122,234 161,528
Coffee-------..-.---.----.....-----...-----...-----------------........... 152,735 140,907 137,081 158.315
Molasses and sirups..--------------....----.......--.........-------------... 7,667 46,485 66,517 132,302
Paperand paper products. ----...--------...---------------.... 98,997 110,095 118,588 131.368
Copra................................................. ------------------------------------------80,789 103,904 102,397 126,591
Cotton, raw........................................... --------------------------------------64,931 78,018 78,282 120,014
Borax................................................. -------------------------------------------66,205 80,512 94,716 101,012
Rubber, raw............-----------------........---....------......---...--------- 1,214 6,475 40,033 98,914
Skins and hides.....-----------------------------------... 52,509 62,271 64,123 72,782
Oats................................................... --------------------------------------------79,898 90,034 155,881 69,916
Bananas.--------------------------...............--....... ------------- 13,049 40,627 40,177 66,153
Oilseed cake and meal-------------................-...-----..----------- 33,542 44,412 76,539 62,687
Phosphates.......... ...-----------------..----------...------------ 2,935 6,168 30,405 58,175
Asphalt and tar....................................... -----------------------------------14,244 22,179 47,929 52,302
Fish meal............................................. ----------------------------------------6,037 40,694 75,593 51,922
Porcelain ware...........-----------------......-------......------------.. 24,137 36,213 46,152 50,194
Rice-------.---.-... ----.---------------------------- 34,267 47,128 81,192 45,614
All other-----------------------------------.............................................. 714.055 947,334 1,073,990 1,130,303
Total-------.---.--..-----....--------------- 13,654,095 18,541,360 17,779,806 18,256,044

1 Does notJinclude fresh fruit.



CLASSIFICATION OF VESSELS

LADEN AND BALLAST TRAFFIO

The following table summarizes the ocean-going commercial traffic
through the Canal during the fiscal year 1936 segregated between
laden ships and those in ballast, as well as 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


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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 transit-

ing the Canal and those which passed through the Canal in ballast:

Ladenm


Nationality


Belgian-----------..................
British----------------------
Chilean---------------------
Danish----.-------------.
Danzig----------------------
French----------------------
German---------------------
Greek-----------------------
Honduran------- -----------
Hungarian------------------
Italian ----------.---------
Japanese----------- --------
Netherland------.----------
Norwegian----- -------------
Panamanian---------..............
Peruvian-------. ------------
Spanish ---------------------
Swedish---------------------
United States----------------
Venezuelan------- ---------
Yugoslav---.----------------
Total, 1936.------------
Total, 1935-------------


Num-
ber of
trans-
its



2
1,009
19
126
1
95
306
32
7
1
46
261
122
452
164
4
4
95
1,870
2
16


4,634
4,442


Tonnage


United
Panama States
Canal, net equivalent


12,650
5,781,879
67,981
593,038
7,796
551,848
1,236,458
141,631
11,007
3,111
339,005
1.552,945
530,294
2,146,813
460,607
6,560
17,813
457,879
10,470,846
2,162
71,733


24,464,056
24,086,156


10,352
4,075,510
51,897
371,364
6,777
353,188
842,280
105,866
9,686
2,646
205,022
1,152,910
350,731
1,401,024
344,659
5,916
15,103
301,711
7,062,974
2,116
55,878


16, 727,610
16,466,948


Ballast


Belgian.--------------
British-------------------
Danish----------------------
Danzig------- --------------
Ecuadorean-----------------
French .....-.-------......----
German------.-. ..---.---.----
Greek----.......-..---------------
Honduran..-------------.----.
Italian----..------------------
Japanese.--.-.................--
Netherland -----------.-----
Norwegian..------------------
Panamanian..---------.-----
Spanish........-----------.-------..
Swedish.....--------....-----..-----
United States--....------------
Venezuelan-------------...--.
Total, 1936....-----..-..-----
Total, 1935..--------.----


2
286
30
2
1
4
1
16
7
1
10
17
104
37
3
36
175
2

734
717


12,650
1,446,626
129,090
12,147
418
26,934
7.252
78.762
11,007
4,833
54, 969
79, 679
475, 476
194, 283
13,762
157,717
852,594
2,162

3,560,361
3,719,432


10,352
1,057,369
86,053
9,313
395
22, 896
4,792
54, 508
9.6S6
4,161
43, 580
62, 554
362, 094
165.042
11,497
125,099
722. 194
2.116

2.753,701
2,961,710


NOTE.-14 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 mneas-


Registered


Gross


17,596
6,837,4009
95,456
637,122
12,097
665,916
1,457,380
164,723
17,857
3,872
399,900
1,863,072
594,268
2,341,877
616,981
8,620
24,291
675,617
11,838,259
4,084
89,712


28,366,109
27,947,104


Net


11,766
4,144,899
55, 630
389,432
6.802
368,451
862,988
101.844
10, 108
2,353
237,726
1,147,306
355,107
1,405, 586
341,369
4,676
14,815
371,727
6,987,765
2,160
55.685


16,878, 195
16,649,925


Tolls





$12,940.00
5,092,416.35
64.871.25
464,102.65
8,471.25
441,485.00
1,052,850.00
132,332.50
12,107.50
3, 307.50
256,277.50
1,440,153.65
438,413.75
1,739. 811.18
430,718.95
7,395.00
18, 878.75
374,510.00
8,820, 572. 20
2,594. 40
69,847.50


20,884,056.88
20,580,029.46


17,596
1,742,067
142,428
15,971
870
38.442
S,269
88,909
17.857
6.,90.3
65. 148
103, 168
595,870
300,597
18,177
375,255
1,222,479
4,084

4.764,150
5.066, 252


11,766
1,047, 972
87,708
8,917
407
21.305
5,018
54,6841
10,112
4,028
44,007
61,200
359,988
165,049
11,484
149, 141
720. 805
2,160

2.765.751
2,959.351


$9,108.00
1,039, 113.31
90,811.37
8,745.84
300.96
19,392.48
5,221.44
56.708.64
7,925.04
3,479.76
39,577.68
57,368.88
339,689.91
139,512.79
9,908.64
113,538.29
616.569.30
1,587.00
2,558.559.33
2,676,253.97


- -
I


---- ---






REPORT OF GOVERNOR OF THE PANAMA CANAL


ureminent, transiting the Panama Canal during the past 3 years are
shown in the following tabulation.


Fiscal year Fiscal year Fiscal year
1934 1935 1936

Measured tonnage:
Panama Canal net.--...................--......................... 5.,4S2 5.405 5,229
United States net ............................-.........---- ........-- 3,903 3,776 3,635
Registered gross......---......--..-....-------...-....--.....--.....--............. 6.592 6,416 6, 180
Registered net ................................................. 3,940 3.811 3, 665
Tolls-------------------- ----------------....-------.-------.----. $4,611.57 $4. 522. 93 $14.377.06
Tons of cargo (including vessels in ballast ............----............ 4.744 4,921 4.947
Tons of cargo (laden vessels only).................................. 5, 831 5.703 5,752

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

STEAM, MOTOR AND OTHER VESSELS

Of the 5,382 ocean-going commercial vessels transiting the Canal
during the fiscal year, 3.430 were steamers. 1,92S motorships, and
the remainder. 24, were unclassified naval vessels, yachts, etc. For
the past 5 years the proportions of these classes have been as follows:

1932 1933 1934 1935 1936

Percent Percent Percert Percent Percent
Steamers............................................ 67.0 63.2 65. 6 63.4 63.7
M otorships......................................... 32.4 36.4 33.9 33.6 35.8
M iscellaneous....................................... .6 4 .5 .8 .5
Total----------------------------------.....................................--.... 100 0 100.0 100.0 100.0 100.0


Of the 3,430 steamers transiting the Canal during the past fiscal
year, 2,499 burned oil and 931 burned coal. For the past 5 years the
proportions of each class have been as follows:


1932 1933 1934 1935 1936

Percent Percent Percent Percent Percent
Oil burning-..--.......----............----...-- .......... 76.1 70.6 76.2 74.8 72.9
Coal burning ...................................... 22. 1 27.2 22.6 24.3 27.1
Eitheroil orcoal.................................... 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 1936

The following tabulation shows by months the number of passen-
gers, exclusive of transients, disembarking and embarking at Canal
Zone ports during the fiscal year 1936, segregated as between first
class and all others, with comparative totals for the fiscal years 1935
and 1934:


99722-36 3---






REPORT OF GOVERNOR OF THE PANAMA CANAL


Disembarking Embarking

First-class Others Total First class Others Total

July------------------------..... 1, 834 1,064 2.898 1,783 1,072 2,855
August....................... 1,868 903 2,771 1,947 967 2,914
September................... ------------------- 1,795 1, 783 3,578 1,829 1,337 3,166
October...................... ---------------------- 1.677 1,181 2,858 1,265 1,193 2,458
November................... ------------------- 1,536 1,135 2,671 1,350 1,028 2.378
December--------------------. 1,491 1,565 3,056 1,364 1,020 2,384
January......................------ 1,574 1,152 2.726 1,3(2 708 2,010
February.................... -------------------- 1.753 1,191 2,944 1,606 1,448 3,054
March---------------------....................... 1,477 842 2,319 1,676 1, 101 2,777
ApriL ---------------------........................ 1,455 1,873 3,328 1,626 1,142 2,768
May-------------------------... 1,419 1.116 2,535 2,103 1,921 4,024
June------------------------.......... 1,721 1,330 3,051 2,011 1,352 3,363
Total, 1936............. ------------- 19, 600 15,135 34,735 19,862 14, 289 34,151
Total, 1935--.....-------.....---- 18,163 16,674 34,837 17,703 16,216 33,919
Total, 1934.--..--------- 16,646 12,182 28,828 16,463 13. 509 29,972


As compared with 1935, the fiscal year 1936 shows a decrease of
0.3 of 1 percent in the number of arrivals, and in comparison with
1934 it showed an increase of 20.5 percent; in the number of depar-
tures there was a gain of 0.7 of 1 percent over 1935 and a 13.9 per-
cent increase over 1934.
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

1934 1935 1936 1934 1935 1938

Passengers disembarking ---------------- 18.89S 22,693 23,811 9.930 12,144 10,924
Passengers embarking.---.----...----..------- 19,156 21,053 22,267 10,816 12.866 11,884


A further segregation of the passenger movement shows that 24,836
incoming and 23,477 outgoing passengers came from or were des-
tined to ports of the Atlantic, and 9,899 incoming and 10,674 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 disembark-
ing and embarking, there were 132,590 transient passengers brought
to the Isthmus by vessels calling at Canal ports during the fiscal
year 1936. For the fiscal year 1935, this number was 120,906, and in
the fiscal year 1934, 101,934. The number in 1936 increased 11,684,
or 9.7 percent in comparison with those in 1935, and made a gain of
30,656, or 30.1 percent, over 1934. Most of these passengers came
ashore for short periods but since they departed on the same vessels
on which they arrived they are- not included in the tabulation of
passengers ending or-beginning voyages at.the Isthmus. The origin






REPORT OF GOVERNOR OF THE PANAMA CANAL


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


Total Fiscal year 1936

1934 1935 Cristobal Balboa Total

Remaining on board vessels transiting
Canal:
AUantic to Pacific. -...--------...----------- 38,114 49,711 56,001 ............ 56,00f'
Pacific to Atlantic-..--..-- ...... --------------- 31,390 39,336 ............ 40, 117 40, 117
Remaining on board vessels entering port,
but not transiting Canal:
Atlantic to Atlantic ports......-------------.-. 30,804 29,166 33,788 ............ 33.788
Pacific to Pacific ports----..------------..... 1,626 2, 694 ---...---------... 2,684 2,684.
Total------------... --.. -----..--------- 101,934 120,906 89,789 42,801 132,590

NOTE.-In passengers remaining on board vessels transiting Canal, those from the Atlantic to Pacific
are taken up at Cristobal, and those from the Pacific to Atlanticat Balboa, that is, at the port of arrival from
sea, and not again at the or her terminus of the Canal.

Among the transient passengers was a number visiting the Canal
as members of special tourist cruises. Many of these crossed the
Isthmus by train from Colon to Gatun, proceeding from there
through the Gaillard Cut to Pedro Miguel by small steamer, and
finally completing the trip to Balboa by rail or automobile. Similar
combination trips were made in the opposite direction. During
the past year 56 trips of this type were conducted, for a total of
8,390 passengers.

FREQUENCY OF TRANSITS OF VESSELS THROUGH THE PANAMA CANAL

During the fiscal year 1936. 1,381 individual ocean-going coninmer-
cial vessels, representing 24 nationalities, passed through the Panama
Canal: in the aggregate these vessels made a total of 5.3,2 transit.
The number of transits made by individual ships varied from 1 to
88, and averaged 3.90. The largest number, amounting to 88. was
made by the small Panamanian steamer Istmo, plying between Cristo-
bal and the west coast of Colombia.
Although vessels of United States registry led in the number of
transits during the year, Great Britain, which ranked second, was
first in the number of individual vessels, with 523. There were 345
individual vessels of United States registry which passed through
during the year.
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:









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 1936 the
number of vessels making one or more transits through the Panama
Canal, the percent which each class formed of the total number
of vessels (1,381), their aggregate number of transits, and their
percent of the total ocean-going commercial transits (5,382) :

Percent Total Percent Percent Total Percent
Number Gf Number ofin- n br of total Number of Number of idi- number oftotal
ra~ ~ of v'idual ilmrCanal trnis of vidual n erCa,1*
transit vosels vessels of transit transits vessels vessels of tranists
(1,381.) transits (5,382) (1,381) transits (5,382.

1 ----------- 364 26.4 361 6.8 16---------- 4 .3 64 1.2
2 -----------. 324 23.5 646 12.0 17---------- 8 .6 136 2.5
3.-----...------ 120 8.7 300 6.7 18---------- 6 .4 108 2.0
4........... ----------- 128 9.3 512 9.5 19---------- -1 1 19 .4
5 ...----------- 104 7.5 520 9.7 20---------- 1 1 20 .4
6. ----------- 110 8.0 660 12.3 22.---------- 1 1 22 .4
7 ----------- 95 6.9 665 12.4 25---------- 2 .1 50 .9
8 -----------. 40 2.9 320 5.9 26---------- 3 .2 78 1.4
9.. ----------........ 37 2.6 333 6.2- 27------ --- 1 1 27 .5
10-...--------- 15 1.1 150 2. S 28---------- 1 .1 28 .5
11 ---------- 5 .3 55 1.0 35---------- 1 .1 35 .7
12 ---------- 2 .1 24 .4 88---------- 1 .1 88 1.6
13..---..------- 2 .1 26 .5 ---------
14.......... ---------- 5 .3 70 1.3 Total 1,381 100.0 5,382 100.0


NET TONNAGE OF VESSELS

The 5,382 ocean-going commercial vessels which transited the
Canal in the fiscal year 1936 included 5,368 merchant vessels, yachts,
etc., paying on the basis of net tonnage, and 14 naval vessels paying
tolls on the basis of displacement tonnage. Of the 5,368 ocean-
going coirunercial transits paying tolls on net tonnage, 53.8 percent
was of vessels of from 4,000 to 6,000 net tons, Panama Canal
measurement. Vessels under 1.000 net tons made 4.0 percent of the
total transits. and 2.7 percent was made by vessels of 10,000 tons
and over. The average tonnage of all transits was 5,221 as com-
pared with 5,390 in the previous fiscal year, a decrease of 3.1 percent.
The following tabulation shows the ocean-going commercial vessels,
excluding naval vessels, in groups according to net tonnage, Panama
Canal measurement, segregated by nationality, with average ton-
nages and group percentages for the fiscal years 1936 and 1935:








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 the
terminal ports at 6 a. m. and dispatches are made thereafter from
each terminus at intervals of about half an hour. The following
is a summary of the arrangements in effect at the end of the fiscal
year:
From Cristobal Harbor, first ship at 6 a. m., last at about 3: 30
p. m.; from Balboa anchorage, first ship at 6 a. m., last at 2:30
p. m. This applies to vessels averaging 10 to 12 knots. In case a
vessel is capable of 15 knots, departure may be made up to about
3 p. min. from Balboa and 4 p. m. from Cristobal.
Tankers with inflammable cargoes are dispatched at the discretion
of the captain of the port and are not permitted to proceed unless
they can clear Gaillard Cut before dark. Overloaded tankers carry-
ing gasoline cargo are usually restricted to the early morning sched-
ules, leaving at 6, 6: 30, and 7 a. min., but may be dispatched on other
schedules if the conditions of traffic necessitate a change.
The volume of traffic at present is not sufficient to justify night
operation.
LOCKAGES AND LOCK MAINTENANCE

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

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

1935
July ..----------------. 381 468 399 479 400 484 1,180 1,431
August-- ------- 396 493 414 519 415 523 1,225 1,535
September..-.--- 399 485 407 498 404 499 1.210 1,482
October ------------- 4-14 548 470 583 466 584 1,380 1,715
November..---------- 425 515 439 529 436 535 1,300 1,579
December---------- 447 553 460 571 460 569 1,367 1,893
1936
January---.....--------- 475 573 484 593 483 571 1,442 1,737
February..---...--------. 431 574 459 602 463 598 1,353 1,774
March -------------- 506 647 524 637 517 631 1,547 1,916
April......--------------- 468 595 483 603 490 607 1,441 1,805
May ---------------- 494 698 516 696 518 678 1,528 2,072
June---------------- 468 606 493 620 486 5S7 1,447 1,813
Total..---------. 5,334 6.755 5,548 6,930 5, 538 6.866 16,420 20.551
Fiscal year:
1931 --.-------..- 5, 571 6,477 5,824 6,667 5,783 6,651 17,178 19,795
1932 ..------------- 4.615 5.349 4,.842 5,.576 4,826 5,575 14.283 16,500
1933 ------------- 4.380 5,334 4, 557 5.536 4, 505 5,586 13,442 16,456
1934.-------------. 5.365 6,593 5,507 6,745 5.483 6,705 16,355 20, 043
1935.------------- 5,316 6.893 5,490 6,859 5,481 6,837 16,.287 20,589

In the fiscal year 1936 the average numbers of lockages per day
were as follows: Gatun, 14.6; Pedro Miguel, 15.2; Miraflores, 15.1.





REPORT OF GOVERNOR OF THE PANAMA CANAL


In the fiscal year 1935, average numbers of lockages per day were:
Gatun 14.6; Pedro Miguel, 15.0; Miraflores, 15.0.
The average number of vessels locked per lockage in the fiscal year
was as follows: Gatun, 1.266; Pedro Miguel, 1.249; Miraflores, 1.239.
The average for the total of 16,420 lockages was 1.2515 vessels.

ATLANTIC LOCKS

The operating shifts remained the same throughout the year.
On account of heavy traffic, it was necessary to use part of the
maintenance force as operating crews 51 days during the year. The
crews were called upon for overtime work 35 times during the year,
ranging from 4 minutes to 1 hour, 48 minutes, and totaling 19 hours
and 12 minutes for the year.
Eleven northbound commercial ships were delayed a total of 2
hours, 7 minutes, ranging from 2 to 43 minutes; and 20 southbound
commercial ships were delayed a total of 2 hours, 6 minutes, ranging
from 2 to 20 minutes.
PACIFIC LOCKS

Operation continued on the same basis as during the preceding
year.
At Pedro Miguel, seven northbound commercial vessels were de-
layed a total of 53 minutes, ranging from 2 to 30 minutes; and four
southbound commercial ships were delayed a total of 28 minutes,
ranging from 2 to 20 minutes. At Miraflores, five northbound coinm-
mercial ships were delayed a total of 52 minutes, ranging from 5 to
20 minutes; and nine southbound commercial ships, a total of 1 hour,
9 minutes, ranging from 3 to 15 minutes.
No serious breakdowns occurred during the year at any of the
locks. Routine maintenance and repairs were performed on all ma-
chinery and equipment; monthly test operations were made on the
emergency dams at all locks.

POWER FOR CANAL OPERATION

The power system was operated throughout the year with a com-
bined generator output of 73,902,935 kilowatt-hours, as compared with
a combined generator output of 69,192,508 killowatt-hours for the
last fiscal year. A total of 66,861,986 kilowatt-hours was distributed
to consumers as compared with 62,921,157 kilowatt-hours for the pre-
vious year. Transmission, transformation, and distribution loss
amounted to 7,040,949 kilowatt-hours, or 9.52 percent, during the
year, compared with a loss of 6,271,351 kilowatt-hours, or 9.06 percent,
during the previous year.





REPORT OF GOVERNOR OF THE PANAMA CANAL


The Gatun hydroelectric station was run throughout the year,
carrying the full load of the power system except during operation
of the Miraflores Diesel-electric station for the purpose of water
conservation from March 9 to May 5, 1936, and during the periods
from September 19, 1935, to January 21, 1936, and April 25, 1936, to
the close of the fiscal year, during which periods the Madden hydro-
electric station was used. There were two minor interruptions to
service at the Gatun hydroelectric station during the year, due to
loss of excitation and bushing failure, and lasting less than five min-
utes each.
The Madden hydroelectric station which had not been in operation
since March 1935 was again in service during September 1935 and
continued until January 1936. By this date Madden Lake had fallen
to an elevation of 140 feet, which was too low to permit generation
of power. However, this station was again placed in service during
April 1936 and continued operating throughout the remainder of
the fiscal year.
The Miraflores Diesel-electric station was maintained on a stand-
by and peak-load service during the year in addition to being utilized
for water conservation purposes.
Interruptions to transmission-line service during the year totaled
21, as compared with 14 for the previous year. Eight of these failures
were caused by lightning, three by flashovers, four by animals climbing
the tower, one by insulator having been damaged by rifle fire, one
by defective insulator string, two by mechanical failure of insulators,
and two were undetermined.
Work was completed in connection with the installation of two
5.333-kilovolt ampere transformers at the Balboa substation, including
the installation of two new high-tension oil circuit breakers, four low-
tension oil circuit breakers and an overhead electric crane, the two
latter items of equipment having been recovered from the old Gatun
substation. In addition to increasing the transformers' capacity from
4,000 to 5,333 kilovolt amperes, considered necessary for present re-
quirements, the installation released a 2,667-kilovolt ampere trans-
former for use as a spare at the Miraflores and Cristobal substations.
The importance of the Summit substation as a unit in the power
transmission and distribution system has been greatly accentuated
by the placing of the Navy's high-powered radio station on the dis-
tribution system fed from this substation. In order to provide the
best possible service to the naval radio station and to dredging divi-
sion activities in Gaillard Cut, considerable work was performed dur-
ing the year toward modernizing the substation, including the instal-
lation of an additional oil circuit breaker and twelve 46-kilovolt manu-
ally-operated disconnecting switches.






REPORT OF GOVERNOR OF THE PANAMA CANAL


To provide increased capacity at the Gamboa substation, made
necessary by the construction of the new townsite at Gamboa, the sub-
station equipment which was formerly housed in the Gamboa pump-
station building was removed and rebuilt in a modernized outdoor
station. This modernization included installation of three 667-kilo-
volt ampere transformers formerly in service at the old Madden sub-
station, two motor-operated disconnecting switches formerly in serv-
ice at the Summit substation, and 12 new hand-operated disconnecting
switches and two new oil circuit breakers.

WATER SUPPLY

The inflow of water into Gatun Lake from all sources during the
year, representing 161 percent of the capacity of the lake at. elevation
87 feet, and the utilization and losses of the water in the lake, are
summarized in the following table. There are also shown the per-
centages which each item formed of the total yield or total consump-
tion. The data are presented for the fiscal years 1935 and 1936 for
purpose of 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,
year- fiscal year-

1935 1936 1935 1936

Run-off above Madden Dam------------------------ 76.98 122.58 34.4 39.5
Yield from land area below Madden Dam -------------102.29 138.41 45.8 44.6
Direct rainfall on the lake surface---------------------- 44.05 49.43 19.8 15. 9
Total yield---------------------------------- 223.32 310.42 100.0 100.0
Evaporation from lake surface------------------------ 21.09 20.55 9.4 6.6
Oatun Lake lockages-------------------------------- 39.85 36.28 17.9 11.7
ydroelectrie power-------------------------------- 51.38 35.72 23.0 11.5
Spillway waste----------------------------------- 106.80 215. 29 47. 8 69.4
Leakage and municipal------------------------------- 1.52 2.11 .7 .7
Increase in storage----------------------------------- 2.68 .47 1.2 .1
Total--------------------------------------223.32 310.42 100. O0 100. 0

Operation of the Gatun spillway during the fiscal year 1936 totaled
5,875 gate-hours, and of the Miraflores spillway, 452 gate-hours.

DRY SEASON-1936

From a water-supply standpoint, the 1936 dry season began on
December 28, 1935, and ended on May 3, 1936, the total duration
being 128 days. This is 15 days longer than the dry season of the
previous year and approximately the same length as the average
dry season which begins about December 30 and ends about May 7.
The net yield (total yield minus evaporation) of the Gatun Lake
watershed was 524 cubic feet per second, or 37 percent below the
23-year average of 831 cubic feet per second. The total yield was





REPORT OF GOVERNOR OF THE PANAMA CANAL


1,350 cubic feet per second, of which 56 percent was furnished by
the inflow from the Madden Lake drainage area. The loss from
evaporation amounted to 61 percent of the total yield. The lowest
elevation of Gatun Lake was 81.90 feet on May 3.
During the month of January, practically all the Madden Lake
storage was emptied into Gatun Lake in order that repairs to the
Madden Dam sluiceways could be made during the dry season.
Gatun Lake was filled to elevation 87 feet and the excess Madden
Lake storage was spilled over the Gatun spillway. Moderate water
saving at the locks was begun in February and continued throughout
the dry season, saving approximately 0.38 feet on Gatun Lake. Sav-
ing by the Diesel power plant at Miraflores began on March 9 and
continued throughout the season, saving the equivalent of approxi-
mately 0.43 feet on Gatun Lake. Slow filling of Madden Lake began
on April 14 and 752 million cubic feet (the equivalent of 0.17 feet
on Gatun Lake) was stored during the remainder of the dry season.
Madden power plant began operation on April 25, using the natural
stream flow of the Madden Lake watershed, thereby saving the
equivalent of about 0.05 foot on Gatun Lake, by furnishing power
that would have otherwise been generated at Gatun. Had there
been no water saving during the period, Gatun Lake's lowest eleva-
tion would have been 81.21 feet.

FLOODS
A series of comparatively large floods occurred during the latter
half of November and the first part of December. The maximum
momentary inflow from the Madden Lake watershed was approxi-
mately 110,000 cubic feet per second on November 17. This momen-
tary inflow has been exceeded several times during the past 30
years, but from the standpoint of duration, the floods of November
and December were the largest since American occupation and
comparable to the flood period experienced by the French in Decem-
ber 1888. The total yield of the 1,320 square miles of the Gatun
Lake watershed area during the series of floods from November 13
to 24, inclusive, was 73.6 billion cubic feet. During this 12-day
period the yield from the watershed was greater than that of any
whole monthly period in which a majoe flood occurred since the
formation of Gatun Lake. During November and December the
yield of the Madden Lake watershed was 63 billion cubic feet, enough
water to have filled Madden Lake from empty to full (elevation 95 to
elevation 240 feet) approximately three times. During the same
period the yield of the whole Gatun Lake watershed was 152 billion
cubic feet, approximately 0.8 of the capacity of Gatun Lake at eleva-
tion 87.00 feet.






36 REPORT OF GOVERNOR OF THE PANAMA CANAL

MADDEN LAKE

Slow filling of Madden Lake was continued during the 1935 dry
season from an initial elevation of 235.00 feet on January 1. A
maximum elevation of 240.36 feet was reached on February 3.
Emptying of the lake began on this date and was completed March
28, during which lowering process various spillway, sluicegate, needle
valve, and turbine tests were made. The lake remained approxi-
mately empty until August in order that repair work could be per-
formed on the sluiceways, after which it was filled and kept at an
approximate elevation of 170 feet until the major floods of November
and early December caused it to rise above the elevation of the drum-
gate sills, resulting in a maximum elevation of 237.51 feet on Novem-
ber 23. During the period December 6, 1935, to February 26, 1936,
the lake was lowered to elevation 118 feet, at which height it was
maintained until the middle of April when it was raised and main-
tained at an approximate elevation of 170 feet to the end of the fiscal
year 1936.

MADDEN LAKE WATERSHED RIDGE AND POWER INVESTIGATION SURVEY

During the 1936 dry season a ridge-line survey of the Chagres River
area was made at an approximate cost of $23,000. A total of 81 miles
of ridge reconnaissance, 50 miles of ridge stadia transit line, and 28
miles of river stadia transit line was run. In addition, considerable
work was done on river profile and cross sections. There remains utin-
surveyed 10 miles of the watershed ridge and 5 miles of the Chagres
River. Figured on a one-party basis, 353 days were spent on this
survey.
MADDEN DAM PROJECT

Minor and special features of the project, which by their nature
could not be completed with the main part of the construction, were
continued under several of the Canal divisions. The work was su-
pervised by the designing engineer.
The crevices in the ridges of the reservoir area, extending from the
dam northward for three-quarters of a mile, were tightened by clay
grouting; this project was completed( on January 15. As a result of
the grouting there was very slight seepage and it is believed that
the danger from leakage has been eliminated in this area.
Recent explorations of the rest of the Madden Lake area have
limited the zones of danger from leakage to a single location. This
is the sane point which geologists had previously indicated as a
possible source of trouble. A thorough exploration of this location
showed that it contains a limestone formation extending through
the ridge between the Azote Caballo and Chilibrillo Rivers, and





REPORT OF GOVERNOR OF THE PANAMA CANAL


that crevices of an appreciable width exist and consequently this area
shows a relatively greater leakage than other ungrouted areas. In
order to determine the underground conditions a test pit and six
cored holes were drilled and a weir was placed in the mouth of the
test pit; water levels are now being recorded in the pit and holes,
as a means of measuring the rate of seepage.
The dam was cooled by means of circulating the natural river
water through pipl)es, which are later to be used for injecting cement
grout. This cooling process considerably reduced the time which
would otherwise have been required to relieve the dam of sufficient
chemical heat. before grouting the joints. Work on cement grouting
and contraction joints began in August 1936. Mr. A. W. Simonds,
an engineer of the United States Bureau of Reclamation, was en-
gaged as a consultant on the grouting to advise and assist the Canal
organization.
The erosion resulting from cavitation action in the sluiceways was
conlmpletely repaired during the 1936 dry season, Madden Lake being
kept at a low level about 21/2% months during this work. No further
modifications in the designs of the entrances were made except to
install steel covers over the stop log slots which pass into the bell-
mouth form of entrance for sluiceways nos. 5 and 6.
During July and August 1935 the reservoir was kept lower than
the spillway crest, after which it was allowed to rise until half full
in order to cool the dam. A series of freshets caused the lake to fill
completely beginning about August 24 and it was not dropped to the
half-way level until January 1. For 21/2% months in the 1936 dry
season the lake was held low to repair sluiceways.
The lake's elevation while below spillway level was regulated by
means of two power turbines and the discharge of two needle valves.
When the level was too low for these operations, it was controlled
by means of the six sluiceways. No difficulty with trash was ex-
perienced except that caused by strong currents near the dam during
the past wet season when the lake remained at a low level.
Some of the engineering personnel from the organization of the
former Mladden Dam division were retained for several months to
complete the records and reports on tests relating to special features
of the dam. Several articles about this project were later accepted
for publication.
The general contractors for the construction of Madden Dam
petitioned the Court of Claims on December 2, 1935, to recover
$508,081.17, alleged to be owed them for performance of the contract.
All reports on the items claimed were completed.







58 REPORT OF GOVERNOR OF THE PANAMA CANAL

MAINTENANCE OF CHANNEL AND IMPROVEMENT PROJECTS

In addition to the maintenance of the Canal channel, dredging
activities during the year included auxiliary dredging for the United
States Navy at Balboa, and diedging in the Cristobal and Balboa
inner harbors and the Cristobal outer harbor.
Excavation during the fiscal year is summarized in the following
table:
Canal prism dredging


Maintenance
Location


Gatun Lake:
Maintenance--------------------- ..- -.............
Project no. 3.---------------------------------------....
Gaiard Cut:
Maintenance (including slides)..-------------.. -...--..
Project no. 3.---.. --.-.-.. ---. -.....- .....- .............-
Project no. 5............................................. ------------------------------------
Project no. 13--------------------------------- ..-
Miraflores Lake:
Maintenance-----------------------------------
Project no. 6---------------------.--.--.---.-----..
Pacific entrance;
Maintenance--.-------------- -------.....---.--


Earth


1,228,650
549,850
362,200
10, 630
14,450
297,000
427,000
450,800
841,335


Total, Canal prism dredging---..-----------.......---------- 4181,915


Rock


114,400
204,900
203, 550
14,020
136,500
332,800

29, 200
11,000
1,046,370


Total


1 1,343,050
754,750
565,750
24,650
150,950
629, 800
427,000
480,000
852,335
5,228,285


A uxiliary dredging


Cristobal outer harbor:
Project no. 11 (aintenance)----------------...------------- 5, 300 99, 100 104,400
Cristobal inner harbor:
aintenance......-------------------------------------- 49,000 ..-------------- 49, 000
Balboa inner harbor:
Maintenance--------------------------.......-------------... 381,400 -----------.............. 381,400
United States Navy, Balboa...-------------------------------........ 837,150 246, 900 1,084,050
Total, auxiliary dredging..---------------------------- 1,272,850 346, 000 *1,618,850
Grand total..------------------------------------- 5, 454, 765 1,392,370 6,847, 135

1 Does not include 210,350 cubic yards of rehandled material.
'In addition, 5,615 cubic yards of Cham6 sand were produced by craneboar Atlas.

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





REPORT OF GOVERNOR OF THE PANAMA CANAL


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. 1,778,500 319,300 2,097,800 54,300 99,100 153,400 1,832,800 418,40012,261,200
Central... 684,280 686,870 1,371,150 ....--- ..------- ...----------------- 684,.280 686,870 1,371,150
Southern.. 1, 719,135 40,200 1,759,335 1,218,550 246,900 1,.465,450 2,937,685 287,100 23,224,785
Total- 4,181,915 1,046,370 5,228,285 1,272,850 346,000 1,618,850 5,454,765 1,392,370 6,847, 136
I Does not include 210,350 cubic yards of rehandled material.
2 Does not include 5.615 cubic yards of Chama sand produced.
CANAL IMPROVEMENT WORK

Project no. 1.-This project, consisting of deepening the Pacific
entrance channel from Miraflores Locks to the sea buoys and includ-
ing the Balboa inner harbor, from a depth of 45 feet to a ruling
depth of 50 feet (mean sea level datum), was begun in the harbor in
July 1924, and in the Pacific entrance in November 1924. Various
additions known as Projects 1-A and 1-B, Pacific entrance, and
Project no. 1-A, Balboa Harbor, were subsequently authorized as
described in the annual report for the fiscal year 1931. There was
no dredging or mining in Project no. 1, Pacific entrance, or Balboa
Harbor during the fiscal year. At the end of the year excavation on
the Pacific entrance portion of this project was 83.2 percent completed
and the harbor 90 percent completed. Excavation for the entire
project was 84.2 percent completed.
Project no. 3.-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. The total excavation for the. year on Project
no. 3 (Gatun Lake and Gaillard Cut) was 779,400 cubic yards. The
project was completed during February 1936 with a grand total of
2,733,500 cubic yards of material removed from the original project
and its extensions.
Project no. 5 (revised).-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 150,950 cubic
yards, the work on the project being 97.8 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. The total excavation for
the year on this project was 480,000 cubic yards, of which 48.000
cubic yards were anticipated fill. The work was 90 percent complete
at the end of the year.





REPORT OF GOVERNOR OF THE PANAMA CANAL


Project no. 11.-This project, which consists of removing various
shoal areas in the outer portions of Cristobal Harbor, was started in
September 1934. The total excavation on this project for the fiscal
year 1936 was 104,400 cubic yards, the work on the project being 24
percent completed at the end of the fiscal year.
Project no. 13.-This project, which consists of widening the entire
Culebra Reach of Gaillard Cut. by 200 feet, was started in January
1935. The total excavation for the year on this project was 629,800
cubic yards, and at the end of the year the project was 8.1 percent
completed.

MAINTENANCE

Gaillard Cut.-The pipe line suction dredge La.s Oruces worked
71/ days on clean-up work in Gaillard Cut, excavating a total of
138,000 cubic yards of earth and rock. Two dipper dredges worked
a total of 112 days on general clean-up work in Gaillard Cut, exca-
vating a total of 260,700 cubic yards of earth and rock.
A tiantic entrance, Cristobal Harbor and Gatun, Lake.-There was
no dredging in the Atlantic entrance during the fiscal year. In the
Cristobal Harbor and approach channel the crane boat Atlas, oper-
ating as a drag suction dredge, worked 251/4 days excavating 49,000
cubic yards of sand and silt. In the Gatun Lake sector the pipe line
suction dredge Las Cruces worked 741 days on clean-up work exca-
vating a total of 1,138,000 cubic yards of earth and soft rock. Of
this total amount, 437,000 cubic yards were deposited on the new
townsite of Gamniboa. Three dipper dredges worked a total of 1181.!
days on clean-up work in the Gatun Lake area, excavating a total
of 415,400 cubic yards of earth and rock.
Pacific entrance, Balboa Harbor and Mirafiorei Lake.-A total of
851,500 cubic yards of material was excavated from the Pacific en-
trance by the suction dredge Las Criuces and crane boat Atlas oper-
ating as a drag suction dredge. A derrick barge worked 71 days in
the east ferry slip in the Pacific entrance, excavating 835 cubic yards
of silt. In Balboa Harbor the suction dredge worked 17 days on
clean-up work, excavating 381,400 cubic yards of mud and silt. In
Miraflores Lake the pipe-line suction dredge worked 25 days on
clean-up work, excavating a total of 427,000 cubic yards of mud and
silt.
SLIDES

The total excavation fronim slides in Gaillard Cut in the fiscal year
1936 was 167,050 cubic yards. Excessive rainfall during the month
of November resulted in pronounced movement in 10 different slides,
4 of which caused shioaling of the Canal channel. There was no
interference to shipping on account of slides during the year.






REPORT OF GOVERNOR OF THE PANAMA CANAL 41

Details of the excavation from slides during 1936, together with
the total material excavated from June 30, 1913. to the end of the
past fiscal year, are presented in the following table:

Fiscal year 1936 Total to date
Slide ----------
Earth Rock Total Earth Rock Total

Haut Obispo slide (east) -------- -.-----.. - ----..--. ----- 6,700 5,500) 12,201)
Buena Vista slide (west).. ----------...........--.---.. ...... ....-------- .... .. .. .,----------------- 5 500 ............ 5,500
Buena Vista slide (east ................... ........ ....... ......... 12. 100 17.550 29.650
Cascadas slide (east).. ..------------------..... -- .. .------ -------- -------. .... .35u 46.800 55. 150
W hile House slide (east)----------------.................. 2.SOO 3.200 6.000 26. 50 41,050 67,700
White House slide (west)....-----------------............. .... --------.... ..----......--------- 21.000 100.550 121,550
Powder house slide easti .............-.... ....... ..... -- -- ......... 104,650 312, 150 416. Soo00
La Pitaslide (east--........................ ........ ........ ......... 12.300 96.700 109,000
La Pita slide (west)................. ...... ........ ........ ......... 4.550 42,900 47,450
Em pire slide (east)........................ ........ ........ ......... 34.050 22S. 050 262. 100
Lirio slide (east)i............ ............ 32,750 35,850 68,600 82.300 157,.000 239,300
D division office slide (west) ................ .. .... ........ ......... 4, 150 19, 450 23,600
Lirio slide (west)................. ...... ........ ... .... ......... 570. 450 1,9S7, 750 2,558.200
Culebra slide (east) ....................... ........ ........ ......... 2,674,050 17,943,900 20.617,950
Culebraslide (west)..--..................... 16.200 34.200 50.400 1,469.500 9,501.700 10.971,200
Culebra slide extension (east)...------------ 3, 000 12.300 15..300 422, 150 976, 200 1.398, 350
Barge repair slide (east)................... 3,200 4, 200 7,400 20S,750 474, M50 633. 600
Contractors H ill (north)................... ........ ........ ... ... 13. 80 139,600 153.400
Contractors H ill iwest).................... ........ ..... .. .......... 7,900 31.600 39,500
Cucaracha slide (east)..................... ........ ........ ......... 2,492.950 6,851,400 9,344,350
Cucaracha signal station slide (west)...... ........ ........ ......... 35,500 204, 600 240, 100
South Cucaracha slide (east).............. 9.750 9,6004 19.350 56,250 123, I800 Ix0.050
Cucaracha Village slide (east)............. ........ ........ ......... 33. 400 77. 4(00 110, 400
Paraiso slide (east; ......................-------------------.. ........ ...... .......--------.----------------.. 1,950 7. 250 9. 200
Cartagena slide (westi..................... ........ ........ ......... 56, 400 245,700 302, 100
Total........................... -------------------------- 67, 700 99,350 1l7,050 8,365,350 39,633,450 47,998,800

Numerous small bank breaks and surface movements occurred at
various points throughout Gaillard Cut during the year. This was
true particularly during thlie unusually heavy rains in November when
erosion of the banks generally throughout the Cut was very pro-
nounced and a considerable almouint of material entered the prifl
from this cause. Daily inspections and reports were made of all por-
tions of active slide areas fronting the Canal as well as a periodical
inspection of thlie entire surface of all slides. Drainage conditions
were investigated and corrected when possible.

AUXILIARY DREDGING

The pipe line suction dredge Las Cruces worked 111 days in the
United States Navy's depot slip at Balboa, excavating a total of
819,000 cubic yards of earth and soft rock. The dipper dredge
Ca(.waflds worked 80 days on the same project, excavating 265.050
cubic yards of earth and rock.

SUBSIDIARY DREDGING DIVISION ACTIVITIES

At the Chagres River gravel plant at Gamboa 200,746 cubic yards
of sand and gravel were on hand at thlie beginning of thlie year. Dur-
ing thlie year 51,364 cubic yards were shipped, leaving a balance on
July 1, 1936, of 149,382 cubic yards.
99722-36---4





REPORT OF GOVERNOR OF THE PANAMA CANAL


The crane boat Atlas made six trips to Chame, dredging a total of
5,615 cubic yards of sand which was transported in barges to Balboa
for use of the supply department.
The work of removing floating obstructions and water hyacinths in
Gaillard Cut, Miraflores and Gatun Lakes was continued throughout
the year; the number of hyacinth plants destroyed during the year by
pulling or spraying was estimated at 43,183,300. A copper sulphate
solution was used for spraying.
During the year an unusually large amount of driftwood, accumu-
lated from clearing operations in the Madden Dam lake area, was
allowed to spill over the Madden Dam and was collected at the new
trash boom across the Chagres River Channel above Gamboa Bridge.
This material was diverted into an arm of the lake on the south side
of the river and was subsequently piled in a convenient place for
burning. The driftwood pile, estimated at more than 1,000 cords,
was not burned during the dry season as it had not dried sufficiently.
In connection with proposed repairs to the Atlantic breakwaters,
130 6%2 foot by 6% foot by 61/2 foot concrete blocks were manufac-
tured at the Gamboa gravel plant during the fiscal year, for future
use. During the month of June, 734 concrete blocks of various sizes,
which were in storage on the Cristobal Mole, were placed at needed
points on the east breakwater.

EQUIPMENT

The following floating equipment was employed during the fiscal
year: Three 15-yard dipper dredges, Ca.scadas, Gamboa, and Paraiso,
operated 10.4 months, 2.8 months, and 10.8 months, respectively. The
24-inch pipe-line suction dredge Las Cruces was operated 11.2 months
during the year. The craneboat Atlas was operated for 3.25 months
in dredging on general maintenance work; in addition it made six
trips to Chame for sand and, with the exception of a total 1.4 months
in reserve or under repairs, spent the remainder of the fiscal year
in miscellaneous services of transportation, towing, rigging, and sal-
vaging. Derrick barge No. 157 was in service for 2.9 months during
the year; hydraulic grader No. 3 was in service or standing by for
1.9 months; the new hydraulic grader No. 4 was 4 months undergoing
minor construction revisions and installations previous to being com-
missioned and was in service or standing by for 8 months; the drill
boat Terrier No. 2 was in continuous service throughout the year,
except for 21 days boiler wash and repair time; air compressor No. 29
was in service or standing by during the entire year; excavator No. 1
was in active service for 7 months of the year; excavator No. 2 was
in active service for 5.5 months of the year; the 250-ton cranes Ajax
and Hercule. were operated on alternate months except when calls for





REPORT OF GOVERNOR OF THE PANAMA CANAL


extra services required the commissioning of both; the three large
tugs Trinidad, Chagres, and Mariner, together with the three smaller
tugs Indio, Bohio, and Siri, and nine launches were operated during
the year. The Diesel ferryboats President Roosevelt and Presidente
Arnwdor were engaged in operation of the ferry service at Balboa
during the year.
GAMBOA DREDGING STATION AND TOWNSITE

Work on the development of the new dredging station and town-
site located at Gamboa, at the junction of the Chagres River and
the Canal, was in progress during the year. This program was more
fully described in the report for the fiscal year 1935. The project
involves the installation of new water-front facilities to replace those
at Paraiso, including shop buildings, storehouses, repair dock, and
small boat landings. It also involves the building of quarters and
community buildings for 180 American and 630 native workers and
their families.
With the completion of this project some 2 years hence, the dredg-
ing division will be located at the most advantageous point available,
both from the standpoint of maintenance of the channel and the
security of moored equipment, as the new station is between any
possible point of closure of Gaillard Cut, from slides, and spoil
dumps in Gatun Lake; and in addition, equipment moored or under
repairs will be protected from damage by transiting vessels in con-
trast with the existing exposed conditions at Paraiso.
Municipal work, electrical work, and erection of quarters and in-
dustrial buildings are discussed in other sections of this report.
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
29,143 single trips during the year, carrying 8,084 Panama Canal,
16,260 United States Army, and 238,799 other vehicles, a total of
263,143, as compared with 203,220 during the previous fiscal year.
Passengers carried totaled 1,404,202, as compared with 1,052,663 dur-
ing the previous fiscal year.
Owing to thle constantly increasing traffic demands, the ferry serv-
ice was increased on July 1, 1935, to afford 24-hour service.
AIDS TO NAVIGATION
Maintenance of the navigational aids for vessels operating in the
'Canal and adjacent waters involved 144 gas, 284 electric, and 265





REPORT OF GOVERNOR OF THE PANAMA CANAL


unlighted aids, representing increases during the fiscal year of ap-
proximately 9 percent and 12 percent, respectively, in the number
of gas and electric aids, and a decrease of 3 percent in the number
of unlighted aids.
The lighthouse tender U. S. S. Favorite made three visits during
the year to Jicarita Island and Morro Puercos Lighthouses which
are operated for the United States Department of Commerce.
The fog committee continued its study of fog conditions in the
Cut. In this connection special lights were installed for experi-
mental purposes.
ACCIDENTS TO SHIPPING

The board of local inspectors conducted investigations and sub-
mitted reports on 28 accidents of a marine nature occurring to vessels
either in transit or in the terminal ports of the Canal, as compared
with the same number for last year and 34 the year before. Classi-
fication of the 28 accidents shows the following: Struck docks. 3;
struck lock walls, 9; struck oil-plant platform, 1; hit submerged ob-
ject, 2; hit buoys, 2; line fouled propeller, 3; bitts and chocks broken.
2; collision and sinking, 1; collision, 2, of which one was adjudged
to have occurred outside of Canal Zone waters; tug dented side com-
ing alongside, 1; damage to submerged cable, 1; and grounded, 1.
In addition to the above, two investigations were hlield on account
of accidents caused by Panama Canal launches, one involving a
launch which caught fire and was totally destroyed, the other in-
volving damage to a landing by a launch.
On October 5, 1935, the Panama Canal salvage tug U. S. S. Fa-
vorite proceeded to sea off Cristobal to latitude 10'43' N., longitude
79c33' W., and picked up the disabled S. S. Sa brush, which it
towed to Cristobal. The U. S. S. Favor!/c assisted in salvage op-
erations on the S. S. Nuevo Panama, which went ashore at Paitilla
Point, Panama Bay, during October 1935. On October 28, 1935, the
U. S. S. Ftuorite was dispatched to the assistance of the S. S. Cuzco,
ashore on Lampa Shoal, on the coast of San Salvador, and assisted
in refloating the stranded vessel. On April 4, 1936, the U. S. S.
Favorite proceeded to latitude 10'42' N., longitude 80r30' W., pick-
ing up the disabled S. S. Point Salbnax and towing that vessel to
Cristobal.
METEOROLOGY-HYDROLOGY-SEISMOLOGY

Precipitation.-Rainfall for the calendar year 1935 averaged, in
general, above normal. March was the month of least rainfall and
November of greatest rainfall. Annual totals for Canal Zone and
vicinity for the calendar year 1935 ranged from 82.21 inches at
Balboa to 204.23 inches at Porto Bello. The maximum precipitation





REPORT OF GOVERNOR OF THE PANAMA CANAL


recorded in 24 consecutive hours in the Canal Zone and vicinity dur-
ing the year was 10.25 inches at Salamanca on November 17 and
18. The average precipitation in the Pacific section was 86.12 inches;
in the central section, 132.09 inches; and in the Atlantic section,
179.80 inches.
Air temperatures.-The maximnium and minimumin temperatures of
years of record at various stations., revised to June 30, 1936, and the
annual average temperature for the years of record, are shown in
the tabulation following:


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

Balboa Heights---------------- 97 Apr. 7,1912 63 Jan. 27,1910 78.7 30
Madden Dam ------------------ ....-. 98 Apr. 13,1920 I59 'n. 34 1929 78.4 25
GatanNf..a. 4,1933. 66 Aug. 7, 1912 180.3 25
Oatun-------------------------9 { 2t' 1 66 Au. 7>1912 180.3 25
Cristobal....................... 96--5 O t } 66 Dec. 3,1909 80.0 28

1 Mean of maximum and minimum temperatures.

The average air temperature for the calendar year 1935 was in gen-
eral below normal. April was the wa rmiest month and November
the coolest.
Winds and uinod;/iy.-The annual wind minovement in the Canal
Zone for the calendar year 1935 wam in general below normal. March
was the month of greatest average, wind velocity and June the month
of the lowest. The mean relative humidity of the atmosphere for
the calendar year 1935 was 84 percent on the Pacific coast and 82
percent on the Atlantic. March was the month of least average rela-
tive humidity and November the greatest.
Tide.i.-For the calendar year 1935 the maximumin high tide at Bal-
boa, 11.5 feet above mean sea level, occurred on September 15; the
maximum low tide, 11.2 feet below mean sea. level, occurred on Feb-
ruary 6. The greatest daily range, 21.0 feet, occurred on February
G and September 15. At Cristobal the maximum high tide, plus 1.52
feet, occurred on December 7; the maximum low tide, minus 0.94
foot, occurred on April 8, and the greatest daily range, 1.S6 feet,
-occurred on December 10.
Seismology.-Two hundred and forty-five seismic disturbances
were recorded at Balboa Heights seismological station during the
calendar year 1935. Fifty-five of these disturbances were of com-
paratively close origin, about 250 miles distant, nine of which were
generally felt, principally in the Province of Chiriqui, Republic of
Panama. Thirteen were of distant origin, and 177 were so slight
that no estimate could be made of their epicenter. A rather severe






REPORT OF GOVERNOR OF THE PANAMA CANAL


earthquake was registered on the morning of May 6, 1936, the first
preliminary tremors arriving at 3:21:15 a. min., 75th Meridian time;
although the main phases of the quake were indistinguishable due
to the rapidity of the motion, the record indicates that the epicenter
was from 25 to 50 miles from Balboa and probably in a southerly
direction. This shock alarmed many people in the Republic of Pan-
ama and in the Canal Zone, being accompanied by a loud roar or
rumble, a phenomenon common to most earthquakes in the vicinity
of their epicenter. With the exception of slight cracks in structures
and minor loosening of tiles, no damage was reported. Quakes were
also felt. on February 26 and April 23, 1936, both in the Canal Zone
and Republic of Panama, and on November 30, 1935, a seismic dis-
turbance was recorded and generally felt, the instruments indicating
its location as approximately 70 miles distant.

VISIT OF UNITED STATES FLEET

Between May 8 and May 26, 1936, the United States Fleet visited
the port of Balboa. during the annual spring tactical exercises.
Ninety-five Navy vessels were berthed in Balboa inner harbor, com-
prising 2 battleships, 3 cruisers, 5 tenders, 1 hospital ship, 51 destroy-
ers, 17 submarines, 16 mine sweepers and tugs. The remaining large
vessels of the fleet anchored in the open roadstead off Balboa outer har-
bor. The aircraft carriers Ranger and Langley and destroyers were
fueled at Balboa. One sortie of the fleet from the inner harbor was
accomplished during nighttime without incident. During the fleet's
visit 48 of the vessels transited the Canal for short visits at Cristobal.
Shore visits totaling 118,750 were made by Navy personnel during
the fleet's stay on the Pacific side.

RULES AND REGULATIONS

A board was appointed to study and revise the rules and regula-
tions for the navigation of the Panama Canal and adjacent waters
and to make a reprint of Rules and Regulations Governing Naviga-
tion of the Panama Canal and Adjacent Waters, and Chapter XII.
Vessel Inspection Service. This study was begun by the board and
their recommendations will be submitted early in the coming fiscal
year. A study of methods of handling explosives and dangerous
cargoes was completed and rules based thereon will be incorporated
in the revised rules and regulations. which, insofar as is practicable,
will be based upon existing United States rules. The Pilot's Hand-
book, issued in 1930, was revised and reprinted in a 1935 edition, con-
stituting an up-to-date manual of information for both Canal and
harbor pilots.













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; the sale 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.
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, who is
also president of the Panama Railroad Co.

PANAMA CANAL BUSINESS OPERATIONS
The gross profits, or excess of revenue over expenses, for the busi-
ness activities of the Panama Canal amounted to $920,185.23 for the
year, as compared with $1,021,216.61 for the fiscal year 1935. This
is a decrease of approximately 10 percent. However, salary reduc-
tions due to economy acts amounted to $144,851.74 in 1935, whereas
the acts were not effective in 1936. Without the Economy Act savings
the gross profit in 1935 would have been only $876,364.87. Opera-
tions of two units, the electric light and power system and the fuel oil
plants, produced over half of the profits during the past fiscal year.
Detailed results of the various divisions are shown in table 26,
section V.
Business operations of the Panama Canal are conducted separately
from operating activities pertaining directly to the transiting of
vessels, and government of the Canal Zone. The annual appropria-
tion acts for the Panama Canal authorize the use of appropriated
funds for the conduct of auxiliary business activities, provided that





REPORT OF GOVERNOR OF THE PANAMA CANAL


funds so advanced are recovered through earnings, and with the
further proviso that any net profit derived from such business
activities be covered annually into the United States Treasury.
In the accounting of profit 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 $29,067,383.76
at the beginning of the fiscal year and $30.427,202.61 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 14's percent on the
shops at Balboa, which for reasons of national defense were made
somewhat more extensive than the needs of commerce require) plus
relatively slight amounts representing variations in supplies on hand.
This theoretical capital charge for the fiscal year 1936 was $832,266.79
(table 20, sec. V). The profits of $920,185.23 exceeded this amount
by $87,918.44.
Based on the figure of $29,067,383.76 representing fixed property
and equipment alone at the beginning of the year, the profits counted
at $920,185.23 showed a return of 3.17 percent.
MECHANICAL DIvIsION
Tle 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 tlhe
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 commer-
cial business requiring mechanical or marine shop or drydock facili-
ties, except electrical and automotive repair; the railway-car inspec-
tion including repair of rolling stock, hostling, and manning thlie
railway wrecking outfit; the maintenance of inspection services in-
cluding tests and repairs (except electrical and marine boilers) for
Canal and railroad, for passenger and freight elevators, for weigh-
ing scales and measuring devices (scales, pumps, meters), and for
clocks, typewriters, and similar instruinmeiints; manufacture and dis-
tribution of compressed air, acetylene, oxygen, and hydrogen; and
the fabrication of such machinery or equipment, floating or other-
wise, spare parts, etc., as in the opinion of the Governor may be more
economically or expediently made on the Canal Zone than purchased
elsewhere.






REPORT OF GOVERNOR OF THE PANAMA CANAL


GROSS REVENUE

The gross revenue for the fiscal year 1936 amounted to $3,133,218.
This amount was subdivided as follows:

Source Total Peret of

Panama Canal.-------------......-......--.-----------...............----------------------....... $1,686,909 53.84
Panam a R R ................................................................... 412,635 13.17
Other departments, U. S. Government............. ------............................. 389,846 12.44
Outside interests.....----------------.-----.... ---- ------------ ---------------- 643,828 20.55

Of the above gross revenue the purely marine work which included
new construction of vessels for the Canal, overhaul of vessels of the
Canal and other departments of the Government, as well as all com-
mercial work, amounted to $2,055,018, constituting 65.59 percent of
the gross revenue of this division. The marine work therefore was
greater than that of the 3 previous fiscal years, which were respec-
tively 60.34 percent, 64.27 percent, and 60.55 percent of the gross
revenues of those years.
Referring to the above tabulation of the gross revenue, it is also
to be noted that the work for other Government departments, which
was 12.44 percent of the gross revenue, has decreased from 16.75
percent for the previous fiscal year, due largely to the sending to the
States for decommissioning of the division of subminarines based at
Coco Solo. The revenue to be derived from the Navy, however, will
increase during the forthcoming fiscal year, as the Navy Department
has assigned to Coco Solo another division of submarines of the
S-42 class.
It is encouraging to know that the work performed for other
interests this fiscal year amounted to 20.55 percent of the gross reve-
nue whereas for the previous year that source of income was only
14.53 percent of the gross revenue.

MARINE WORK

There has been a constant demand for the use of the drydocks at
both plants and a total of 141 vessels were placed in the drydocks
during the fiscal year. However, it is to be noted that commercial
shipping diverts to the Canal only urgent repairs necessary for clear-
ance of the vessels from Canal waters. In other words, with the
exception of a few coastal vessels, shipping concerns do not have
their vessels given periodic overhauls at the mechanical division
shops. Referring to the drydocks, the S. S. Maracay entered the
Mount Hope drydock with only 41A-inch clearance between the side
of the vessel and the drydock entrance, which is indicative of the
demand being made on tihe small drydock at Mount Hope for han-





REPORT OF GOVERNOR OF THE PANAMA CANAL


dling vessels of very large dimensions. At Balboa the principal dry-
docking was performed on the S. S. Vancouver during April for
temporary repair to the damaged bottom of that vessel, amounting to
$68,000. At Cristobal the principal drydock job was performed on
the S. S. Santa Mllonica for extensive repair of the damaged bottom
at a cost of approximately $34,000. A second bottom job was per-
formed at Mount Hope on the S. S. Manizales, which vessel had been
damaged by grounding.
Other than the naval work which is enumerated below, the principal
overhaul job at the Mount. Hope shops was performed on the S. S.
Trojan Star, which required boiler repair to its entire boiler plant,
and since the vessel had a large cargo of fruit on board the shops
worked continuously day and night. The important ship repair at
the Balboa shops included the M. S. C. 0. Stillhawn, S. S. Cusco, S. S.
Mantillo, S. S. West Ivis, S. S. locoma. S. S. Polarine, S. S. K. R.
Kingbiiury, S. S. Andino, S. S. Ford.(dale, M. S. Potter, S. S. Cen-
tralia, and the yacht Caroline.
Repair of naval vessels.-At the Balboa plant the following work
was performed on vessels of the United States Navy: The bow of
the U. S. S. Minneapolis, which was damaged by collision during the
fleet concentration in Canal waters, was rebuilt at a cost of about
$10.000. The vessels of the Special Service Squadron docked and
given voyage repairs include the Memphis, Manley, Fairfam, Tatt-nal,
J. Fred Talbott; and voyage repairs were performed on the Trenton,
Clasxton, and Taylor. District craft docked and given general over-
hauls included the Hannibal, YP-41, and TP-42.
At the Cristobal plant annual docking and overhaul were per-
formed on submarines S-12 and S-13; the Lapwing, Mallard, Teal,
Woodcock; houseboat No. 1; drag boats Nos. 7 and 8,; patrol boats
YP-41 and YP-42; and steel barges YPK-4, TPK-3, Y1W-11,
YSD--8, Y6-472, YO-11, and YF-22J.
Repairs to vessels of United States Army.-At Balboa shops: Army
transport St. Mihiel was drydocked for installation of a new rudder;
the mine planter H. C. Sehunmm. was drydocked and given a general
overhaul; voyage repairs were performed for Army transport
Chateau Th'erry; drill boat, L-JJ was drydocked and given an ovrr-
haul; overhauls were performed onmi the drill boat L-.1, inspection
launch Q-3, and mine planter Graham.
At the Cristohal shops: The MI. S. L. Morgan Lewis and launches
L-53 and L-41 were drydocked and overhauled.
Repairs to other vessels of United States Government.-At the
Cristobal shops the lighthouse tender Acacia, stationed at Puerto
Rico, was drydocked and given a general overhaul.
Repairs to IeT'els of foreign governments.-At the Balboa shops,





REPORT OF GOVERNOR OF THE PANAMA CANAL


Coronel Bolognesi, Almirante Gui8se, Almirante Villar, gunboat
Parinas and submarines R-1, R-2, R-3, and R-4. The merchant
ships Mantaro and Apurimac, controlled by the Peruvian Govern-
ment, were overhauled and the Maontaro was placed in drydoclk.
At the Cristobal shops the Colombian gunboat Bastidas. and the
S. S. Cabins and the Peruvian merchant ship Perene were given
general overhauls. Repairs were performed on the Mexican gunboat
Mosquera.
Marine construction and repair of vessels of Panama Canal de-
partmentsI.-The two Diesel-electric tugboats, the Arraijan and
Alhajuela, designed and constructed by this division at an estimated
cost of $570,671, were launched on August 1, 1935, and were fully
completed and turned over to the marine division during the first
week of June 1936. These vessels are sister ships, of steel construc-
tion, 110 feet 6 inches in length, and have a normal operating shaft
horsepower of 750. The machinery for the two vessels cost approxi-
mately $260,000. During the trials the vessels met all their design
requirements and they are now in commission operating at the
Balboa terminal.
During April the mechanical division prepared the design and
specifications for purchasing machinery for a new Diesel-electric
tug to be built for the dredging division, to be somewhat similar
to the Chagres and to cost approximately $375,000, of which $170,000
will probably be required for the machinery. This vessel is to be
known as the U. S. Gatun, is of steel construction, 125 feet 7 inches
in length, and will be capable of operating at 900 shaft horsepower.
The specifications for purchase of the machinery were sent during
June to the Washington office. The steel for the hull of the vessel
arrived in the yard during July 1936 and the fabrication of the hull
will commence.
The division designed and is building a 1,000-yard dump steel
scow designated as No. 1206 for the dredging division at an estimated
cost of $130,000. Fabrication of this barge abreast the Balboa dry-
dock was commenced during the latter part of the fiscal year and
is scheduled for launching and completion during October 1936.
The construction of a new towing locomotive for the locks divi-
sion estimated to cost $35,200 which was begun in the previous fiscal
year was continued throughout this fiscal year.
The construction of two 40-foot motor launches of the Snook type
was commenced at the close of the fiscal year, one launch to be
equipped with a Diesel engine designated as NAVY TYPE DB and the
other may be equipped with a Diesel engine purchased from the
Buda Co.
Extensive repairs were performed on the dredging division barges
48, 50, 119, 131, 134, 135, 139, and 194 and the dredges Las Cruces,





REPORT OF GOVERNOR OF THE PANAMA CANAL


Ganmboa, Paraiso, and Cascadas were drydocked and given extensive
overhauls.
For the marine divi.0sonn.-A new low pressure cylinder was cast
for the main engine of the Gorwgona and an overhaul was performed
on the tug Favorite. The following work was done on tugs and
launches: The tugs Taernilla and Cocoli and the launches Trogon.,
Cone, Pelican, Egret, Jessop. Pato Real, Owl, Cotinga, Corm.orant,
Swallow, and Toucan were given running repairs.
The foundry made in one casting a cutterhead for the dredge Las
Cruces which required approximately 20,000 pounds of molten metal
and is the largest single casting made to date by that foundry. A
previous cutterhead of about the same dimensions had been made in
two parts and subsequently welded together before it was determined
that the foundry could make such a casting as a unit.
WORK OTHER THAN MARINE WORK
Design specifications were prepared by this division for the pur-
chase of a new motor car for carrying 42 passengers for use on the
Panama Railroad and also for the purchase of six center-dump all-
steel cars. The average amount of heavy and light, repairs was
performed on the locomotives for the railroad and in addition the
Balboa roundhouse overhauled locomotives belonging to the local
United States Army as well as those assigned to the several depart-
ments of the Canal for their respective use. Three second-class
passenger cars of the Panama Railroad were fitted with cross-seats
for use daily for second-class passengers.
In preparation for the Pacific Locks overhaul about $50,000 of
fabricated parts were handled in the machine shops. Incident to
the erection of buildings and shops by contractors, the mechanical
division wood shops fabricated a very large percentage of the sashes,
doors, and wood fittings, particularly for those buildings being
erected at the Gamboa townsite. The division fabricated and in-
stalled the steel structure for widening the Gamboa Bridge for
automobile traffic at an approximate cost. of $30,000. The steel
structure for the new oxy-acetylene plant to be erected at Balboa was
fabricated by the Balboa shops, as well as the steel structure for the
new rigger shop.
The usual amount of car reconditioning for the rolling stock of
the railroad was performed during the fiscal year under an allotment
of $180,000.
PLANT IMPROVEMENTS
In compliance with the instructions of the Navy Department the
mechanical division fabricated 192 cast-iron block assemblies for the
Balboa drydock at a cost of $50.000 to permit the docking of capital
vessels of the United States Navy on cast-iron blocks throughout.





REPORT OF GOVERNOR OF THE PANAMA CANAL 53

The 35-ton traveling crane for use at the Mount Hope drydock.
which was designed and constructed by the mechanical division, was
completed this fiscal year under an allotment of $88,500. This crane
has a lifting capacity of 35 tons. The fabricated crane was shipped
from the Balboa shops in a knocked-down condition by the 250-ton
floating crane and was assembled by that crane in the Mount Hope
drydock.
In view of the fact that the present oxy-acetylene plant, has inade-
quate capacity and is located in a very hazardous place as regards
naked fires, and as its equipment is not fully protected against explo-
sion and fire, the mechanical division redesigned that plant and
secured funds to rebuild and modernize the plant, locating it in the
vicinity of the Balboa drydock pumphouse. The new equipment
for this plant will cost $128,775. The steel for the new building
has been fabricated and will be erected by a contractor during the
coming fiscal year, at an approximate co.-t of $41,000 for the building.
Both the Cristobal and Balboa industrial areas were enclosed with
a heavy cyclone steel fence for protection. Traffic into and from
each plant is via one gate under the control of a gold watchman.
As there was no street lighting at the Mount Hope plant, a mod-
ern, adequate street-lighting system was installed during this fiscal
year, and five additional street lights were installed at the Balboa
plant.
The old dilapidated wooden block stowage shied at the Balboa
drydock was demolished and during the coming fiscal year will be
replaced with a light wooden construction shed to cost about $8,000.

PROSPECTIVE TREND OF BUSINESS
While the gross revenue this fiscal year, $3,133,219, exceeds that
of last fiscal year by $343,588, the volume of business has shown no
such increase and the greater portion of the $343,588 was necessary
to pay the increased wage under the 40-hour-week law.
During the fiscal year the division has had a large revenue from
major projects being fabricated for the Canal, such as the building
simultaneously of two Diesel-electric tugs, but it i$ estimated that
the volume of projects will decrease hereafter.
The Mount Hope plant is sustained solely by naval work on sub-
marines at Coco Solo and intermittent commercial work. The Bal-
boa shops have little naval work, insufficient commercial work, and
are sustained principally by large projects being fabricated for the
Canal and railroad. Consequently curtailment of the projects will
fall heavily on the Balboa shops.
There is no indication that commercial shipping work will increase
and there is some doubt that the past volume of work will be
maintained.






54 REPORT OF GOVERNOR OF THE PANAMA CANAL

FINANCIAL

The origin and class of work done by the mechanical division in
the fiscal year 1936 and in the previous fiscal year are shown in the
following table:
Gross revenue-ola.*x and source of

Fiscal year

1935 1936

Class:
Marine ................................. --------------------------------------------------. ...... $1,683,362 $2,055,018
Railroad--------------------------------------.........................................------..........----------------...... 370,208 395,972
Fabricated stock.......... .................................-------------------------------------------------- 247,239 248,951
Sundries---------------------------------------------------------............ 488,821 433,277
Total--------------------------------------------------------........................ 2,789,630 3,133,218
Origin:
Panama Canal----------------------------------............--............---------------. 1,539,242 1,686,909
Panama Railroad-----------------------------------------------------.............. 377,618 412,635
Other United States departments----------------------..---.......------------. 467, 217 389,846
Outside interests---------------------------------------------------------........................ 405,553 643,828
Total... ------------------------------....--.------------------------.. 2,789,630 3,133,218

The total expenditure of the. division was $3,066,564 and for the
previous fiscal year was $2,553,322, an increase of $513.242 over the
previous year. The $513,242 was disbursed as follows: $332,462 for
materials, $137,756 for labor, and $43,024 for miscellaneous items.
The flat rate activities which include the drydocks, foundries, cranes,
automobiles, etc., earned profits of $103,420 and the Canal expense
surcharge gave an added profit of $85,700. The net earnings, after
deducting $12,653 for replacements, were $172,143.
There was no revision of wages this year and the machine tool
rates were continued without revision.

ELECTFUCAL DIvisION

The principal activities of the electrical division are the oper-
ating and maintaining of the hydroelectric and Diesel-electric power
plants, substations, transmission lines, and power distribution sys-
tems; the operation and maintenance of telephone, telegraph, elec-
tric clock, fire alarm, and railway signal systems; the operation and
maintenance, of Gatun spillway and Madden Dam; and the installa-
tion and maintenance, of such electrical equipment as is required
by other divisions of the Canal or other departments of the Govern-
ment, and by such commercial and other 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
$1,420,512.83, which included $533,222.43 for maintenance and oper-
ation of the power system; $736.711.60 for construction and mainte-
nance of electric work section; $114,762.26 for the maintenance and





REPORT OF GOVERNOR OF THE PANAMA CANAL


operation of the telephone section; and $35,816.54 for the mainte-
nance and operation of the railway-signal section.
For the fiscal year the electric light and power system continued
to earn not only the required 3 percent return on invested capital,
but a small excess or surplus over this amount. These profits were
earned despite the fact that expenses of the system were appreciably
increased through the addition of reserve and interest charges inci-
dent to the taking of the Madden power station costs into the
capitalization of the system, and were made possible only by the
reduction in system losses and operating expenses and by added
load to the system. The process of reducing system losses and
operating expenses has been carried on over a period of years,
commencing in 1928 when parallel operation of the trans-Isthmian
transmission line was effected and ending with the complete removal
of the old manually-operated Gatun substation from the system dur-
ing June 1934. Prior to the removal of the Gatun substation from
the system, both the Balboa and Cristobal substations had been
converted from manual to remote operation. These substation
changes alone effect an annual saving of some $60,000 in power
system operating expenses. Added load to the system has been
brought about almost exclusively through adopting electric heating
equipment for Canal quarters and the encouragement of the Army
and Navy to do likewise. This policy was adopted by the Canal
in 1930, and the Army is now beginning to adopt electric heating
equipment. Further data on the operations of the electric light and
power system were presented in section I under the heading "power
for Canal operations." Following is a brief discussion of the elec-
trical installation and repair work carried on during the past year.
The relocation of the underground electrical distribution system
along the shore site of Dock 15, Balboa, was approximately 90 per-
cent completed at the close of the fiscal year. This work involved
the laying of ductline and construction of two distribution houses,
in each of which a 50-kilovolt ampere transformer and three 371.-
kilovolt ampere power transformers were installed. Power cable
was also run to the Balboa shops and a temporary transformer house
built at the rear of Dock 15 to provide electric service to the 2,300-
volt pump motors operated in connection with the construction of
Dock 15.
Electric service was provided to the United States Navy's new
depot on the west side of the Canal, involving the construction of
slightly more than 2 miles of overhead pole line consisting of three
copper transmission wires and ground wire, connecting with the
existing 2,300-volt line on the west side. At the depot this electric
service was carried to the Navy's distribution house, passing under





REPORT OF GOVERNOR OF THE PANAMA CANAL


Thatcher Highway through 180 feet of buried armored cable. Tele-
phone service was provided to the depot by trenching, burying, and
splicing 11,200 feet of armored telephone cable along Thatcher High-
way, connecting with the existing Panama Canal system near the
west ferry approach.
An underground distribution system was constructed during the
year for the new town site at Gamboa, including construction of three
transformer houses and three distribution houses and the installa-
tion therein of transformers and other necessary electrical equip-
ment, for supplying the town site with light. power, and telephone
service. This new distribution system was also extended to serve the
new dock under construction for use of the dredging division. Con-
struction of an underground distribution system for the new quarters
area at Gatun was practically completed( during the fiscal year, pro-
viding electric power. lighting, and telephone service; and the street
lighting system for the Gatun town site was considerably extended.
At France Field the construction of a new 11,000 2.200-volt outdoor
substation was completed during the early part of the fiscal year,
replacing the old station which was considered entirely inadequate
for present requirements and unsafe for operating and maintenance
personnel involved. To improve the reliability and capacity of the
electric service at the Army post of Fort Sherman, an additional
feeder was begun. a new transformer substation was designed, speci-
fications completed(, and right-of-way cleared during the year. Three
transformers were installed to provide duplicate service to the fleet
air base at Coco Solo.
A total of 393 jobs was completed in the marine electric shops
for Government, commercial, and other vessels calling at or trans-
iting the Canal, 178 of which were handled at the Pacific terminal
and 215 at the Atlantic terminal. Among the more important of
these jobs were the installation of motors in each of the machine
rooms at the two ferry ramps at Balboa, together with the neces-
sary wiring of the ferryboats to provide direct-current service for
the shore motors for emergency power to operate the ferry ramps
when the regular power service is interrupted; the installation of all
electrical apparatus for both power and light on the Diesel-electric
tugs Arraijan and Alhajuela which were constructed in the Balboa
shops; complete overhaul of main switchboard of the dredge Las
Cruces; general repairs to electrical equipment aboard the Panama
Canal tugs Trinidad., Tavernilla. Cocoli, Favorite, and to crane
barge Ajax, U. S. lighthouse tender Acadia, and the S. S. Critobal
of the Panama Railroad Steamship Liine. General overhaul was
also made of the United States Navy submarines 8-10, S-11, 8-12,
and 8-13, as well as extensive alterations and repairs to electrical
equipment aboard the United States Navy ships Hannibal, Teal.





REPORT OF GOVERNOR OF THE PANAMA CANAL


Nokomis, Mallard, Woodcock, and Lapwing, and the United States
Army mine planters General G. IF. Getty and General Morgan Lewis.
Other electrical work performed included the conversion of the
old restaurant building at Balboa into the new Balboa police sta-
tion; extension of the street-lighting system at Balboa shops; trans-
fer of motor-generator set and coupon-counting machines from thn
Administration Building at Balboa Heights to their new location
in Ancon; removal and relocation of the street-lighting system of
Fourth of July Avenue, made necessary by the widening of that
thoroughfare; dismantling and removal of approximately 8 miles
of overhead pole line between Alhajuela and Salamanca, originally
installed for the flood-warning system, now unnecessary since these
two points have been connected by submarine cables laid on the bed
of Madden Lake as reported in previous year's report; the providing
of electric service to the new Navy radio station at Summit, as well as
to the lighthouse subdivision at Gamboa.
Installation of electric ranges and water heaters in Panama Canal
quarters was continued throughout the year, and at the end of the
year there were 141 of the two-burner type, 1.880 of the four-burner
type, and 12 of the six-burner type.

PURCHASES AND INSPECTIONS TX THE UNITED STATES

The purchase of general supplies in the United States for the use
of the Panama Canal on the Isthmus is made by the Washington
office except for certain purchases made by assistant purchasing
agents at New York and San Francisco, and except that the Panama
Canal, medical section, New York general depot, United States
Army, Brooklyn, N. Y., purchases the principal medical and hos-
pital supplies used on the Isthmus. In addition, the assistant pur-
chasing agents at New York and San Francisco and the assistant
freight traffic manager of the United Fruit Co. have acted as receiv-
ing and forwarding agents for material and supplies delivered at
and through their respective ports for transshipment to the Isthmus.
The preliminary inspection of materials in the United States cov-
ering purchases the delivery of which is required on the Isthmus
(which constitutes the large majority of purchases) and final in-
spection of materials delivered in the United States are made by the
force of inspectors in the field under the supervision of the inspect-
ing engineer at Washington, assisted by the officers of the Corps of
Engineers, United States Army; the Bureau of Standards; the Bu-
reau of Mines; the Bureau of Chemistry, Department of Agricul-
ture; the Medical Department. United States Army; the Bureau of


99722-36--5





REPORT OF GOVERNOR OF THE PANAMA CANAL


Construction and Repair and the Bureau of Engineering, Navy
Department.
The total number of orders placed in the Washington office dur-
ing the fiscal year was 8,267, being an increase of 163 as compared
with the fiscal year 1935. The number of orders placed during the
fiscal year 1936 was the largest placed during any fiscal year since
1920, and exceeds the number of orders placed during any fiscal
year since 1904 (when construction work was begun), with the ex-
ception of the fiscal years 1916, 1917, and 1920.
The total value of the orders placed in the United States in the
fiscal year 1936 was $4,443,253.62, as compared with $4,285,350.58
for the fiscal year 1935, an increase of $157,903.04. The Washington
office orders during 1936 amounted to $4,344,428.50, as compared
with $4,215,332.12 for the prior fiscal year. Orders placed by the
assisting purchasing agents at New York and New Orleans, and the
medical section of the New York General Depot amounted to $98,-
825.12, as compared with $70,018.46 for the prior fiscal year. The
total purchases by the Washington office since the year 1904 amount
to $229,020,041.21. The other agencies mentioned have purchased
since 1904 supplies to the value of $4,422,443.10, making a grand
total of all purchases of $233,442,484.31.
During the fiscal year 1936, there were prepared 11,503 disburse-
ment vouchers amounting to $4,925,838.59, and 314 collection vouch-
ers amounting to $159,357.91. These vouchers pertained primarily
to the purchase of supplies. In addition to the collection vouchers,
25 collections aggregating $585.86 were made by the General Ac-
counting Office, making the total amount actually collected $159,-
632.29, on 321 accounts. Cash discounts taken during the fiscal year
amounted to $35,977.90, an increase of $5,590.15 from the preceding
year. Except for the fiscal year 1930, this is the largest amount of
discounts taken since the fiscal year 1927.
Mr. Arthur L. Flint, the chief of the Washington office and gen-
eral purchasing officer of the Panama Canal, died on May 18, 1936,
while in New York attending a meeting of the board of directors
of the Panama Railroad Co. Mr. Flint had served the Washington
office continuously since April 25, 1905. His loyalty and devotion
to the Panama Canal were sincere and traditional, and his death
was a distinct shock to those members of the Canal organization
with whom he came in contact.
Mr. Emil E. Weise, assistant to the chief, died on February 8,
1936. Like Mr. Flint, Mr. Weise had been connected with the
Washington office since 1905, and his loss is being keenly felt.
Mr. Floyd B. Heimer was appointed assistant to the chief of office
to succeed Mr. Weise, and since the death of Mr. Flint has been
acting as chief of the Washington office.





REPORT OF GOVERNOR OF THE PANAMA CANAL


Upon the transfer of Mr. H. A. A. Smith, assistant comptroller,
to the Isthmus as comptroller of the Panama Canal, Mr. Arnold
Bruckner was appointed assistant comptroller in the Washington
office, he having served for several months previous as assistant
to the comptroller on the Isthmus.

SHIPr CHANDLERY AND OTHER STOREHOUSE SUPPLIES

During 1936 the operation of the storehouse was continued under
the same general policy as in previous years. On June 30, 1936,
the book value of stock on hand at all storehouses was $4,200,154.16
as compared with $4,229,033.79 on June 30, 1935. The total value of
all materials received on requisition from the United States was
$4,658,930.06. Local purchases were made totaling $341,184.81,
Scrap and obsolete stock remaining on hand at the end of the year
totaled $31,503,51. During the year 134 net tons of American scrap
iron were sold in the local market, and 1,129 net tons sold for export.
The general storehouse at Balboa (including the medical store-
house) and the branch storehouses at Cristobal and Paraiso han-
dled a total of 133,219 requisitions and foreman orders during the
year. Material and supplies sold to steamships, employees, and
others aggregated $784.201.62. The sales to steamships amounted
to $46,183.90, involving 1,830 sales, a decrease from the previous
year of $2,546.43.
Native hardwood lumber operations were continued in the Canal
Zone, and 198,174 board feet of logs at $35 per thousand board feet
were purchased. Cement consumption for the year amounted to,
87,602 barrels.
For the year's operations, revenues exceeded expenditures >by
$84,939.20 (see table 26, sec. V).

OBSOLETE AND UNSERVICEABLE PROPERTY AND EQUIPMENT

During the year disposition was made by sale, or by destruction
where the items had no money value, of obsolete or unserviceable
property and equipment which had an original value of $559,988.20.
Replacements were made as necessary.

FUEL OL, 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 pipe lines and pumping plants of the
Panama Canal. The total fuel and Diesel oil handled by the Balboa
and Mount Hope plants, including both receipts and issues, aggre-






REPORT OF GOVERNOR OF THE PANAMA CANAL


gated 10.068,542 barrels, as compared to 9,713,542 for the preceding
year. The operations are shown in detail in the following tabu-
lation:

Balboa Mt. Hope Total

Barrels Barrels Barrels
Received by the Panama Canal--------------------------- 159, 584.69 264,738.64 424,323.33
Used by the Panama Canal------- ------------------------ 172. 100.51 252,571.74 424,672.25
Pumped for individuals and companies--------...---...--------.-.. 4,312,309.38 4, 860,408.67 9,172,718.05
Sold by thIbe Panama Canal------------.---------..---------- 3,020.98 3,923 70 6,944.68
Miscellaneous transfers-..---------------- ----------------- 31,814.56 8, 069.63 39,884.19
Total------------------.-----------------------....... 4,678,830.12 5,389,712.38 10,008,542.50

The number of ships discharging or receiving fuel oil (including
Diesel oil) during the year totaled 1,748, of which 74 were Panama
Canal craft.
Gasoline and kerosene.-Bulk gasoline and kerosene received on the
Isthmus during the year totaled 4,055,143 and 970,001 gallons,
respectively.
BUILDING CONSTRUCTION AND MAINTENANCE

The principal projects of building construction and repair work
completed during the year consisted of new roof, ventilators, and'
skylight on dock no. 9 (annex), Cristobal; raising and repairing of
23 silver family quarters at Camp Bierd, Cristobal; renewing roof
on dock no. 7, Cristobal; renewing roof on Cristobal retail commis-
sary; construction of truck shed and repair shop, etc., for motor trans-
portation division at Cristobal; construction of extension and renew-
ing roof on local freight house, Panama City; burglar-proofing of
gold family quarters, New Cristobal and Ancon-Balboa; conversion
of old restaurant building into police station, Balboa; renewing roof
on commissary warehouse, Mount Hope; and construction of addition
to commissary building, Gamboa.
Work on the following projects is now under way and will be conm-
pleted during the fiscal years 1936-7: Conversion of old restaurant
building into clubhouse, Cristobal; addition to present ward building,
Palo Seco; demolition of 23 old buildings, Gatun; paint exterior of
105 gold quarters, Ancon, 52 gold quarters, Pedro Miguel, and 35
silver family quarters, Red Tank; manufacturing mill work for
building program, Gamboa; interior painting of 104 gold quarters,
Ancon-Balboa; construction of new police and customs booth, Balboa;
and erecting hoods between first and second floors of 47 four-family
gold quarters, Balboa.
TERMITES

The work of prevention of destruction to frame buildings by ter-
mites continued during the year. Periodical inspections and repairing





REPORT OF GOVERNOR OF THE PANAMA CANAL


of the metal plates where damaged are necessary precautions against
termites.
QUARTERS FOR EMPLOYEES

Gold emrployees.-The family quarters situation is more acute
than in the previous year due not only to several new appointments
but also to a greater proportion of married employees. At Gatun
there were demolished during the year 24 old frame houses containing
104 family apartments, and during the same period there were
constructed 34 houses containing 57 apartments.
Silver Emnployees.-Thie operation of silver quarters continued on
the same basis as in the previous year. As stated in the annual
report for 1935, it became necessary to make a slight increase in
rental rates to provide adequate maintenance funds. Accordingly, a
new rental schedule was put into effect July 1, 1935, with the result
that it has adequately provided sufficient funds to allow reasonable
maintenance, but insufficient to set up a proper replacement reserve.
Consequently, revenue paid maintenance work is being carried on
through the year and will continue. During the fiscal year a number
of silver family quarters have been equipped with electric meters,
and the occupants are now being charged for the actual current con-
sumed, plus cost of public lights in hallways which are charged at a
flat rate of 20 cents per apartment. It is intended to continue the
installation of meters in the better class of silver quarters through
the Canal Zone as funds become available.
The demand for family quarters from employees on the silver roll
is still far in excess of the supply. Over 50 percent of the silver
employees reside in the cities of Colon and Panama where rental
rates are considerably higher than charged by the Canal for Govern-
ment quarters in the Canal Zone. On June 30, 1936, there were on
file for Canal Zone silver quarters 1,120 applications.

Replacevnwnt of Qua-rt.rs for American Employees

About 10 years ago cost records, etc., indicated that the cost of
maintaining the oldest frame quarters for American employees had
reached the point where replacement was the most economical pro-
cedure. Some of these old quarters were built by the French Canal
Co. and by the Panama Railroad Co. before the United States ac-
quired the Canal Zone in 1904. There were also in use a large
number of construction camp type of frame houses built during the
first years of American operations and large numbers of similar
houses built prior to 1915. Some of these were reerected houses which
had been moved from towns that were abandoned upon completion
of construction work. It was realized that their replacement would





REPORT OF GOVERNOR OF THE PANAMA CANAL


require an extensive 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, 19z'7.
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
construction and maintenance of various types of houses, and after
giving consideration to original cost, upkeep, etc., the wooden struc-
tures 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:


62








REPORT OF GOVERNOR OF THE PANAMA CANAL


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REPORT OF GOVERNOR OF THE PANAMA CANAL


The quarters under construction at the new town site 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
1937, inclusive, shown in the table, including the estimated cost of
completing the quarters to be built during the fiscal year 1937, has
been $4,883,998, not including town site 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 $5,700,000 to complete the
replacement of the 487 family and 623 old bachelor apartments
shown in the table as in need of replacement. This includes about
$475,000 for grading work, road, sewer, and water-line replacement.
and contingencies, such as probable price increase 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 contracts were entered into for 27 houses to be constructed in
connection with the replacement program at Gatun and 2 at Ancon.
and for an oil and paint storehouse at Mount Hope. In 1936 further
contracts were signed for the erection of 34 additional replacements
at Gatun, as well as 28 dwellings at the new Gamboa town site.
Under this plan the Panama Canal furnishes plans and specifi-
cations and all material entering into the construction of the build-
ings. The contractor provides necessary material of American
manufacture for concrete forms, scaffolds, etc. Construction of the
buildings by contract has progressed in a satisfactory manner.

MOTOR AND ANIMAL TRANSPORTATION

The transportation division is charged with the operation and
maintenance of all motor and animal transportation furnished to all
departments and divisions of the Panama Canal and Panama rail-
road. It is required to operate on a self-sustaining basis, primarily
with a view to supplying transportation at a minimum cost to the
Panama Canal and railroad organizations. Work is also performed





REPORT OF GOVERNOR OF THE PANAMA CANAL 65

for employees and for contractors doing such work for the Govern-
ment in the Canal Zone. The usual amount of heavy hauling in
connection with various buildings and highway construction projects
was accomplished throughout the year.
During the year 37 cars and trucks were retired and 64 purchased.
At the close of the year there were on hand 348 cars, trucks, trailers,
and cranes, 6 motorcycles, 3 mowing machines, and 9 mules. Rev-
enues exceeded expenditures by $53,461.80 as compared with a net
revenue of $45,911.88 in 1935.
THE PANAMA CANAL PRESS
The operations of the Panama Canal Press were continued under
the same policy as in previous years. The printing plant carries
in stock and manufactures such necessary stationery, forms, etc.,
that are required on the Isthmuns in connection with the operation of
the Panama 'Canal and the Panama railroad. It is also charged
with the printing of the official publication, the Panama Canal
Record. The manufactured output for 1936 amounted to $153,533.30,
as compared with $152,089.56 for the previous year. The total out-
put for the year 1936, including supplies not processed in the printing
plant, was $189,690.02 from which a gross income of $206,918.65 was
received, resulting in a net revenue of $17,228.63. The annual inven-
tory value of material on hand at the close of the year was $66,716.97,
as compared with $65,973.41 for the fiscal year 1935.
REVENUES DERIVED FROM THE RENTAL OF LANDS IN THE CANAL ZONE
Rentals on building sites and oil-tank sites in the Canal Zone
totaled $41,521.31 for the year, as compared with revenues of
$41,632.25 in 1933.. Rentals of agricultural lands in the Canal Zone
totaled $14,714.59 as compared with $17,934.78 for the preceding
year. At the close of the fiscal year a total of 1,297 licenses were in
effect, covering 2,7581 hectares of agricultural land within the
Canal Zone. This is a reduction in the number of licenses under the
previous fiscal year of 138, and a reduction in the area held utinder
licenses of 490 hectares. This reduction was largely the result of the
policy outlined in the Governor's circular of May 27, 1935, providing
that as a, health measure no more licenses for agricultural lands would
be issued and that no sales or transfers of holdings under licenses
would be permitted.
The land office disposed of two claims for agricultural improve-
ments on account of the construction of the town site of Gamboa, the
total amount paid for the purchase of these improvements being
$4,400. This transaction was in accordance with the policy pursued
in canceling all agricultural licenses within a radius of 1 mile of
the limits of the town site, excepting those on the Gaillard Highway.





REPORT OF GOVERNOR OF THE PANAMA CANAL


BUSINESS OPERATIONS UNDER THE PANAXA RAILROAD CO.

The Panama Railroad Co. was incorporated in 1849 under the laws
of the State of New York for the purpose of building and operating
a railroad across the Isthmus. In 1904, before actual construction
work on the Panama Canal was started, the United States Govern-
ment secured control of the capital stock of the Panama Railroad
Co. which it now owns completely and has operated the company
since that date through a board of directors appointed by the Secre-
tary of War, who holds all the stock of the company except the
qualifying shares of the directors. By Executive order of May 9,
1904, the President of the United States directed that the general
policy of the railroad be controlled by the United States and that
the road be made an adjunct to the Panama Canal, at the same time
carrying on its operations as a common carrier. Since that time the
corporation has established and operates various business activities
upon the Isthmus incidental to the construction, operation, and main-
tenance of the Canal. Thus the United States Government is con-
ducting the business activities relating to the Canal enterprise under
two distinct organizations: first, the Panama Canal, which is a direct
branch of the Government; and second, the Panama Railroad Co.,
which is a Government-owned corporation. As the activities of the
railroad company are covered in detail in its annual report, only the
major features of operation as they relate to the Canal administra-
tion are covered in this section.
In addition to the operation of the railroad, the enterprises of the
Panama. Railroad Co. include commissaries, which are retail general
stores catering primarily to Government employees, cargo handling
activities at the harbor terminals, hotels, coaling plants, a steamship
line, telephone system, and certain real estate operations in the Re-
public of Panama.
The operations of the railroad proper, harbor terminals, coaling
plants, stables, and baggage transfer were continued throughout the
year under the direction of the general manager of the railroad; the
telephone system under the electrical engineer; renting of lands and
buildings under the land agent; and commissaries, Hotels Washing-
ton and Tivoli, and subsidiary activities under the chief quarter-
master.
Business operations on the Isthmus, carried on by the Panama
Railroad Co. yielded a profit of $1,077,987.07 for the fiscal year, as
compared with $927,642.87 during the previous fiscal year, an in-
crease of $150,344.20, or 16.2 percent.
A summary of the 1936 operations is given in the paragraphs
following:





REPORT OF GOVERNOR OF THE PANAMA CANAL


TELEPHONES AND TELEGRAPHS

The gross revenue from the operation of telephones, electric
clocks, and electric printing telegraph machines amounted to $231,-
945.31, and the total expenses were $166,613.42, leaving a net revenue
of $65,331.89, as compared with $67,241.38 for the preceding year,
or a decrease of $1,909.49 from last year.
During the year 1,332 telephones were installed and 1,278 were
removed, resulting in a net increase of 54 telephones for the year.
At the end of the fiscal year the telephones on the system, main-
tained by this section, numbered 2,865 as compared with 2,811 at
the end of last year.
RECEIVING AND FORWARDING AGENCY
Harbor terminals.-The gross revenue from harbor terminals oper-
ations during the fiscal year amounted to $1,662,460.88; operating
expenses were $1,322,306.15, leaving a net revenue of $340,154.73, as
compared with $355,033.79 in 1935.
There were 1,856,560 tons of cargo stevedored and transferred, as
compared with 1,788,852 tons in 1935, an increase of 67,708 tons.
During the year 4,584 cargo ships and 1,306 banana schooners were
handled, as compared with 4,439 cargo ships and 1,238 banana
schooners in 1935. Agency service was furnished to 161 commer-
cial vessels, as compared with 150 in the preceding year.
Canal Zone for orders.-As an aid in the distribution of goods
to areas served by steamship lines using the Panama Canal or its
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 warehouses of the Panama Railroad Co. for orders. Such cargo
or integral parts of it may be withdrawn as the consignor or con-
signee may desire for forwarding to ports beyond Panama. Many
different commodities were handled in this manner during the year;
the total cargo received under the arrangement was 1,082 tons. This
was a decrease of about 61 percent from the tonnage received during
the previous year. The great reduction in this business has been due
principally to the discontinuance on December 1, 1933, of local de-
liveries into the Republic of Panama and the Canal Zone. The reve-
nue received for handling and storage amounted to $5,287.18, as com-
pared with $8,422.77 for 1935, a decrease of 37 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







68 REPORT OF GOVERNOR OF THE PANAMA CANAL

plants, various manufacturing plants, a laundry, wholesale ware-
houses, and retail stores. In general, sales are restricted to the op-
erating and defense forces of the Canal to other United States Gov-
ernment personnel stationed on the Isthmus, to the United States
Fleet and other United States Government vessels. Sales to com-
mercial steamships were restricted to cold storage, food, and other
essentials and approximated $300,000 during the year.
Net sales for the year totaled $7,568,551.90, as compared with
$7,122,770.33 for 1935. Gross operating expenses, including cost of
goods sold, transportation expenses thereon, plant and processing
expenses and costs, salaries and wages, depreciation, repairs, etc.,
aggregated $7,287,825.93, resulting in a net operating profit of $280,-
726.05 for the year's operations.
At the close of the fiscal year, the value of merchandise on hand
was $1,160,408.72. The relationship between sales and inventory
indicates a theoretical stock turnover every 2/2 months.
Sales.-The distribution of sales as compared with the 2 preceding
years was as follows:

1934 1935 1936

U. S. Government (Army and Navy).---.....-------------------- $664.,593.94 $704,814.46 $941,915.59
The Panama Caminal -...... .. -----........................-- ... 496.083.02 730,142.37 731,719.84
The Panama R. R.................... -....---....-........----- 231,266.73 301,315.52 258.923.08
Individuals and companies--------------.. -----.. ----------- 406. 556. IS 246,994.81 312,432.26
Commercial ships-------------- ----------------------- 330.570.82 355,954.92 304.547. 29
Employees.....................................-----------------------------------------. 4,654.620.74 5,114,279. 59 5, 372,401.92
Total sales -----------------------------------6,786,691.43 7,453,501.67 7.921,939.98
Less discounts, credits, etc ------------------------------- 28, 508. 08 330, 731. 34 353. 388. 00
Net revenue from sales---------------------------6, 508, 183.35 7,122,770.33 7,568,551.98

Purchases.-Purchases dutiring the year aggregated $5,609,853.91,
an increase of $551,295.92, or 11 percent, as compared with the previ-
ous year. The following tabulation shows the value of the various
classes of materials purchased, and the market in which purchased,
as compared with the 2 preceding years:


Groceries-------.......----...-----------. -------.. ----.-----
Candy and tobacco---------......--..--...---------.------.
hardware.........- ------------..--..-....----.-------.------
Dry goods............------------------...-----.....-....------.--------.
Shoes............-----------.--....----..------------------
Cold storage... ------------........-.....----------...-----------
Raw material..---------..........--.-..----..---..----.---.--------
Cattle and hogs...--------.-. --...-.--- ---... -...-..------ ------
Milk and cream......................-..................--------------
Dairy productls..---...----.............................----------------------...


$1,253,372.31
324, 182.64
260.,035.89
624,581.16
161.987. 18
922,678. 32
310,647.14
9,.217 64
131.U058.85
41)7,767. 69


Total---------------.....................-------.---...-------...------ 4, 435. 528. 82
Place of purchase:
United States.. ..-----.........--...................--- 3, 569.5 68.40
Europe and Orient----------...............--..-------.....-------------- 472.3M6.34
Central and South America..--------------------------........................... 101,261. 13
Local..................----------------------.........---...--.-------...---------- 104,353.12
Panama Canal................ --- --- -------------..------. 67,445. 14
Cattle industry----------------......................----..-...---------..----- 120.514. 69
Total....----------------.................---------...---------.------ 4,435,528.82


$1,362,659.95
295 ,436. 93
32G. 924.97
644,941.72
191,027.72
1,071,593.04
447,224.51
103. 117.02
156.517.02
459. 115. 11
5,058, 557. 99

4,096,955.52
440.434.74
104,997.69
208,835.47
64.,394.57
142,940.00
5.058,557.99


1936

$1,603,081.68
340,615.47
363.354.44
713,353.09
209,211.03
1,030,776.67
438,402.11
180,409. 75
160,865.82
569.783.85
5.609. 853.91

4,307.,369.53
614.907.18
150,421.78
311,825.09
72,374.44
152,955.89
5,.609, 853.91


_ --------------------------I-- ------ -----





REPORT OF GOVERNOR OF THE PANAMA CANAL


Manufactwuring and other plants.-The output of the various plants
of the commissary division during the past year had a total value of
$1,604,440.76, as compared with $1,297,405.45 for the preceding year.
This is an increase of $307,035.31, or 23.7 percent, of which $73,530.49
was due to the reopening of the sausage factory. The balance of the
gain over the previous year was caused by increased activity in many
other plants as covered in the following paragraphs.
Among the principal products of the bakery were 4,307,400 loaves
of bread, 130,606 dozen rolls, 35,696 pounds of cake, 17,686 dozen
doughnuts, 408,078 pounds of soda crackers, and 48,835 dozen cookies.
The value of the output was $281,546.83.
In the coffee-roasting plant. 435,462 pounds were roasted for the
Army. Of the commissary brands of coffee, 228,076 pounds were
roasted, an increase of 6,064 pounds in comparison with 1935. In
the packing department, 1.794,294 packages of foodstuffs, totaling
5,479,449 pounds, valued at $213,011.65, were packaged.
The value of items turned out by the industrial laboratory totaled
$269,470, an increase of approximately $29,500 in comparison with
1935.
An increase in the production and consequently in both the gross
and the net revenues was made by the Ancon laundry. There was
a gain of 990,000 pieces laundered and a gain of $35,500 in gross
revenue. There was a continuance of the return of work from the
enlisted men in the Army which was lost a few years ago when new
prices went into effect.
The output of the ice-cream and milk-bottling plant included
124,130 gallons of ice cream, 1,053,524 quarts of milk, 25.201 quarts of
cream, having a combined value of $318,416.90.
The greater portion of fresh beef consumed locally for the year
was purchased from dealers in the Republic of Panama under com-
petitive bid. Under this arrangement 4,008 head of fat cattle were
purchased and slaughtered during the year. Owing to advanced
prices in United States beef, the consumption of this commodity is
running about 91 percent native and 9 percent States'. An outstand-
ing feature of cold-storage operations for the year was the reopening
of the sausage factory, which was made possible due to the decrease
in the price of meats. This operation was discontinued 2 years
previously because of high meat costs which contributed toward
inability to operate profitably in competition with States' products.

HOTELS

The hotels Tivoli and Washington were operated by the Panama
Railroad Co. without change of policy. These hotels are operated





REPORT OF GOVERNOR OF THE PANAMA CANAL


as adjuncts to the Canal for the purpose of providing -suitable ac-
commodations 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 $184,-
687.14, or $2,605.87 more than the revenue derived. The operating
cost of the Hotel Washington was $176,550.34, or $23,095.53 more
than the revenue derived. Operating expenses of the Hotel Wash-
ington include an increase in unexpended reserves over last year of
$10,818.24.
The Hotel Tivoli reserves for the year 1936, together with $13,-
889.27 of previously unexpended reserve funds, were used for neces-
sary repairs to the building on account of continued severe termite
attack, as well as the general deteriorated condition of the building.
The replacement of this old building with a new modern concrete
hotel is a part of the 6-year plan now in progress, and it is hoped
this construction may be started during 1939 as outlined.
The operation of the Hotel Tivoli by the Panama Railroad Co.
during the past 7 years shows a gross excess of expenses over revenues
of $222,590.52. 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 $59,267.36 in unexpended reserves, leaving a total of $180,523.29
of the expenses as charged still in the possession of the Government
or an actual net deficit of $42,067.23.

MIND DAIRY
Total milk production at the Mindi dairy amounted to 270,375
gallons, or an increase of 21,546 gallons in comparison with the
previous year. Ninety-nine head of purebred Jersey cows and 8
purebred Jersey bulls were purchased in the United States at a
cost of $9,681.14 and added to the dairy herd.

PANAMA RAILROAD LANDS AND LEASES
There were in effect at the close of the fiscal year 1936 a total of
1,494 leases and 16 licenses covering the use of Panama Railroad
properties in the cities of Panama and Colon. The gross revenue to
the Panama Railroad from these leases and licenses during the year
was $234,334.07 which is a decrease of $7,315.31 from the fiscal year
1935.
During the year the railroad company allowed a. discount of 25
percent to all lessees who were paying the full commercial rental,
provided they paid their accounts during the period for which the





REPORT OF GOVERNOR OF THE PANAMA CANAL


bills were rendered. Those properties rented at low rates under old
leases were not given the reduction. The discount amounted to
$63,534.85.
Forty-one new leases were issued during the fiscal year. Eleven
leases on which no improvements had been erected were canceled
upon the request of the lessee. One permit was canceled.
During the year 778.58 square meters of Panama Railroad land in
the city of Panama were sold for $14,841.53.

COAL
The sale of coal from the plants at Cristobal and Balboa totaled
41,813 tons, as compared with 43,696 tons in 1935, a decrease of 1,883
tons, or approximately 4 percent. Purchases during the year totaled
54,925 tons. Total revenue from the sale of coal and the extra
charges for handling was $333,498.82. The cost of sales, including
operating expenses, was $278,726.13, resulting in a net profit of
$54,772.69, as compared with a profit of $42,036.02 in the previous
fiscal year. This improved showing was due to a reduction in the
cost of coal as the operating expenses increased from $62,824.82 in
1935 to $71,464.55 in 1936.
The basic prices were $7.75 per ton at Cristobal and $10.75 at
Balboa. Effective September 1, 1935, a sliding scale price reduction
was made for sales in large quantities.

THE PANAMA RAILROAD

The gross revenue during the fiscal year 1936 from the operations
of the Panama Railroad proper (not including subsidiary business
activities) amounted to $1,456,164.54. The operating expenses were
$1,250,765.39, leaving a net revenue of $205,399.15 for the year, as
compared with $141,381.09 for the previous year, an increase of
$64,018.06.
Tonnage of revenue freight transported during the year amounted
to 309,379, as compared with 270,334 in 1935, an increase of 39,045,
or approximately 14 percent.
Statistics covering the various features of railroad operations dur-
ing the past 3 years are presented in the following table:






/Z REPORT OF GOVERNOR OF THE PANAMA CANAL


1934 1935 1936

Average miles operated, Colon to Panama------------------... 47.61 47.61 47.61
Gross operating revenue-..------. --------------------... $1, 429, 784. 27 $1, 2S0, 669. 58 $1, 456, 164. 54
Operating expenses. -.................................--------------------------------- $1, 142, 309.48 $1, 139,288. 49 $1, 250, 765. 39
Net operating revenue----....--.....-- --------------------...------ $287,474.79 $141,381.09 $205,399.15
Percent of expenses to revenue............---..-............... 79.77 88.96 85.90
Oross revenue per mile of road..--------...--......----------------.......... $29.729.75 $26,899. 17 $30, 585. 27
Operating expense per mile of road-.........--......-.......... $23,764.20 $23,929.60 $26, 271.06
Net revenue per mile of road---.----------..----------------..... $6,028.55 $2,969.57 $4,314.21


Number of passengers carried:
First class.......- ......-..-..-.-. ..--.............. .....
Second class-----------------------------------------
Total--------- ----.- -.- ......--...- ....-


162,501 184,355 161,813
196,597 211,959 177,631
359,098 396,314 339,444


Revenue per passenger-train-mile-------------------------- $3.76 $3.91 $3.89
Revenue per freight-train-mile-------------------.----------- $11.83 $9.26 $10.99
Total revenue-train mileage------------------------------- 183,143 182,659 195,346
Railroad revenue per train-mile............... ----............. $7.74 $7.01 $7.45
Railroad operating expense per revenue-triin-mile--......... $6.18 $6.24 $6.40
Net railroad revenue per revenue-train-mile----------------- $1.57 $0.77 $1.05
Freight, passenger, and switch locomotive mileage......... 280,358 279, 281 293,942
W ori-train m ilea e.. ...---- ....-- ...-- ................... 6,318 8,686 4,S03
Passenger-train mileage----------------------------------- 111,076 111,581 122,904
Freight-train mileage-----------------------------------. --- 72,067 71, 078 72,442


PANAMA RAILROAD STEAMSHIP LINE

The gross operating revenue for the steamship line for the fiscal
year ended June 30, 1936, amounted to $1,201,829.78, and the gross
operating expenses amounted to $1,570,306.40, resulting in a net
deficit from operations of $368,476.62. The operating deficit comn-
pared with the net loss for the fiscal year ended June 30, 1935, of
$357,633.82, shows a decrease in the net revenue of $10,842.80.
For the year ended June 30, 1936, the tonnage carried by the
steamship line amounted to 159,371 tons, as compared with 163,304
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 $487,332.44. Had regular tariff
rates been received by the steamship line for such freight and pas-
senger services performed for the Panama Canal and other Gov-
ernment departments, its income would have been increased by
$487,332.44 and its operations for the year would have resulted in a
profit of $118,855.82.













SECTION III


ADMINISTRATION
DEPARTMENTS

The organization of the Panama Canal on the Isthmus embraces
five principal departments-namely, operation and maintenance, sup-
ply, accounting, executive, and health. In addition to this, an office
is maintained in Washington, D. C. The Panama Railroad Co., a
Government-owned corporation, is a distinct unit, yet it is closely
affiliated with the Canal 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 activi-
ties such as shops and drydocks, vessel inspection, electrical and
water supply, sewer systems, roads and streets, hydrographic obser-
vations, 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 Panama Canal and
railroad; the maintenance and construction of buildings; the assign-
ment of living quarters to employees and care of grounds; the opera-
tion of storehouses, fuel-oil plants, an experiment garden and a
printing plant, and the supplying of motor transportation facilities
to the various departments and divisions of the Canal and railroad
organizations.
ACCOUNTING

The accounting department is responsible for the correct record-
ing of financial transactions of the Canal and railroad; the admin-
istrative 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
99722-36-----0 73





74 REPORT OF GOVERNOR OF THE PANAMA CANAL

keeping; the preparation of estimates for appropriations and the
allotment of appropriations to the various departments and divisions;
and the examination of claims.

EXECUTIVE

The executive department embraces the general office business of t1h1
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 supplying of the data
from which vital statistics for the Canal Zone and the cities of
Panama and Colon are compiled.

PANAMA RAILROAD CO.

The operations of the Panama Railroad Co. on the Isthmus arc
generally related closely to the work of the Canal. As the Governor
of the Panama Canal is President of the Panama Railroad Co., the
heads of departments of both the Canal and railroad organizations
report to him. The general administration of the composite organi-
zation is centered in the executive office, and the accounting work in
the accounting department; the Panama Railroad and the business
divisions of the Canal 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:
Division of personnel adnministration.-To make possible a more
thorough system of personnel selection, studies of personnel policies
and administration, and the maintenance of adequate personnel
records for both gold and silver employees, an administrative and
functional reorganization of personnel administration was effected





REPORT OF GOVERNOR OF THE PANAMA CANAL


during April 1936. This reorganization involved the establishment
of three bureaus in the division with duties as follows: The adminis-
trative bureau, having charge of personnel records of gold employees,
and being responsible for the conduct of personnel matters related.
to complaints, leave, retirement, transportation, organization, citizen-
ship, and requisitions for employees; the service bureau, to assist
heads of departments and divisions in the selection of applicants for
employment, to make studies looking toward the welfare and im-
provement of personnel and the correction of any unsatisfactory work-
ing conditions, to cooperate with apprentice-learner conunmmittee in the
handling of apprenticeship and learnership programs, and to have
charge of applications for employment and of civil service matters;
and the silver personnel bureau, in charge of personnel administra-
tion for silver employees, to handle applications for employment,
examinations, and records pertaining to such personnel. The three
bureaus function under the general supervision of the chief personnel
officer, in charge of the division of personnel administration.
In order to carry forward the development and administration of
the personnel program, it was necessary to recruit a staff of profes-
sionally trained and experienced personnel men, three being placed
in the service bureau and one in the silver personnel bureau. The
work carried forward as a result of this reorganization during the
remainder of the fiscal year was largely a program of development,
including studies of previous personnel policies and desirable changes,
and looking to the development of those aspects of personnel admin-
istration not previously covered. The program for American em-
ployees included special attention to the following phases: The de-
velopment of a more adequate service rating (the new rating system
will go into general administrative use early in the fiscal year 1937);
development of more satisfactory employment methods, procedures
and forms necessary to render a better employment service to depart-
ment heads; consolidation, bringing up to date, and preliminary re-
view of application files; preparation and administration of exami-
nations for saleswomen, apprentices and learners, and setting up of
appropriate registers of eligibles in cooperation with department
heads; close cooperation with department heads in the careful utiliza-
tion of the apprentice-learner program; and detailed studies of job
analyses, job specifications, trade tests, and interviews in determining
applicants' qualifications.
In personnel work for the silver employees the major features are
discussed in another section of this report under "Registration of
native workers." In addition to that work the silver personnel
bureau handled about 6,000 applications from employees and mem-
bers of their families resident in Panama for securing the cedula
required by decree of Panama.





REPORT OF GOVERNOR OF THE PANAMA CANAL


Plans section.-The organization and purposes of the plans sec-
tion were briefly outlined in the previous year's annual report. Dur-
ing the past year the section continued the work originally assigned
to it as an auxiliary administrative agency. In contrast to the
previous fiscal year, the greater part of the work performed during
the fiscal year 1936 was in connection with the Panama Canal. How-
ever, a considerable amount of work was also done for the railroad
company, especially concerning the railroad proper.
A review was made of the depreciation policies in effect relative
to the Panama Railroad Co.'s Isthmian properties, which resulted
in an adjustment of the depreciation rates covering various items
of plant and equipment. In connection with the studies of the
railroad, a complete analysis of both the freight and passenger busi-
ness, past, present, and probable future, was made. As a result of
various reports on the operation of the docks and piers, supplemental
to those completed last year, all commercial docks and piers were
turned over to the harbor terminals division of the Panama Railroad
Co. to operate and a rental determined to be fair to both interests
is being paid to the Canal for the use of its docks and piers. De-
preciation rates were also changed to conform to actual physical
conditions. A study of the Ancon laundry and field laundries op-
erated by divisions of the Canal resulted in a lower price list on
certain articles for the Ancon laundry and a consequent abandon-
ment of two of the field laundries.
Three reports covering the bureau of clubs and playgrounds were
made. The first, covering operations, resulted in the dividing of
the bureau into two units, namiely, cliubbouses and playgrounds, the
former being completely self-supporting except for depreciation and
interest on building.-s, and the Intter being supported chiefly by ap-
propriations. The previous annual appropriation of $125,000 has
been reduced to $100,000 and playground activities are being ex-
panded from $70,000 to $100,000 annually. The second report, cov-
ering capitalization, depreciation, and maintenance, revised the set-
up of capital and depreciation to agree with the new form of or-
ganization; and the third, covering building program, outlined a
complete building program including sizes and types of buildings,
allotment of space to the various activities in each, and dates
for replacement of existing buildings.
As a result of the studies and reports on capitalization, deprecia-
tion, and maintenance, covering various departments of the Canal,
the following changes were effected. Annual charges for deprecia-
tion and repairs on individual units of floating plant in the marine
and dredging divisions were set up in accordance with actual physical
conditions; while there were no appreciable changes in total annual
charges, considerable changes were made in charges for the individual





REPORT OF GOVERNOR OF THE PANAMA CANAL


units involved. Changes were made in the accounts of the fuel-oil
plants to bring the annual charges into line with present policies
covering replacement and expansion of plant. The annual charge
for depreciation of certain parts of the Canal fixed property, capi-
talized at $55,000,000, was revised as of July 1, 1936.
Performance indexes were established for the coaling plants, com-
missary division, including Ancon laundry and other plants, harbor
terminals, hotels Tivoli and Washington, motor transportation divi-
sion, real-estate operations, and for traffic through the Canal. These
indexes cover the important features of the operations of the unit
concerned and are to be used to supplement, other reports.
Various surveys, studies, and reports on the personnel practices of
the Canal-Railroad were made with the object of comparing them
with the best. practices in the United States. This work has been
transferred to the division of personnel administration and is more
fully covered in another section of this report.
Various studies started during the fiscal year 1936 will be con-
tinued during 1937, the principal ones being as follows: Maintenance
of railroad rolling stock; operation of oil-handling plants; district
quartermasters' operations, including maintenance of quarters; build-
ing program, gold quarters; interchange of free service, Panama
Canal and Panama Railroad; port and terminal charges; capitaliza-
tion, depreciation, and maintenance of the general storehouses, and
the water supply system; survey of painting. There are 12 addi-
tional major studies scheduled to be made.
Counsel.-The office of counsel, the Panama Canal, was established
on October 1, 1934. On March 18, 1936, with a view to effecting a
better coordination of the legal and allied activities of the Panama
Canal and its adjunct, the Panama Railroad Co., there were discon-
tinued the separate offices of counsel of the Panama Canal and coun-
sel of the Panama Railroad Co., and the office of general counsel was
established in lieu thereof. Under the present organization, the gen-
eral counsel performs the duties formerly assigned to the counsel of
the Panama Canal and in addition, under his appointment as special
counsel of the Panama Railroad Co., he has supervision and direc-
tion of the legal organization and legal activities of the Panama
Railroad Co. on the Isthmus. Mr. F. H. Wang, formerly counsel
of the Panama Canal, was appointed general counsel for the Canal
organization, as well as special counsel for the Panama Railroad Co.
on the Isthmus.
The general counsel is the legal advisor on the Isthmus in matters
pertaining to the administration of the Canal enterprise and per-
forms such other duties concerning legal and legislative questions and
matters of public policy as may be directed from time to time by
the Governor. The duties of the general counsel are separate from





REPORT OF GOVERNOR OF THE PANAMA CANAL


those of the district attorney, who, under the law, conducts all legal
proceedings for the Government of the United States and the Gov.-
ernment of the Canal Zone.
Appointmennts.-Appoint.ments in official positions during the fis-
cal year 1936 were as follows:
Mr. C. M. Lupfer was appointed chief clerk, executive department,
on August 1,1935, vice Mr. John H. Smith, deceased.
Comdr. John G. Moyer, United States Navy, was appointed
assistant to marine superintendent, on September 27, 1935, and on
October 16, 1935, was appointed captain of the port (Cristobal),
vice Capt. Thomas A. Symington, United States Navy, upon relief
of the latter from duty with the Panama Canal.
Lt. Comdr. Bertram J. Rodgers, United States Navy, was ap-
pointed captain of the port (Balboa), on October 16, 1935, vice
Lt. Comdr. Leon B. Scott, United States Navy, upon relief of
the latter from duty with the Panama Canal.
The position of first, assistant chief quartermaster was established
on February 1, 1936, and Mr. James H. K. Humphrey was ap-
pointed to the office.
The position of second assistant chief quartermaster was estab-
lished on February 1, 1936, and Mr. Lew W. Lewis was appointed to
the office.
Mr. Lewis B. Moore was promoted from chief of section (plans),
executive department, to office engineer, department of operation
and maintenance, on February 1, 1936, vice Mr. Lew W. Lewis, trans-
ferred.
The office of general counsel, the Panama Canal, was established
by the Governor on March 18, 1936, and Mr. Frank H. Wang was
appointed to the office.
Mr. Homer A. A. Smith was appointed assistant to Governor on
April 1, 1936, and on July 1, 1936, was appointed comptroller, the
Panama Canal, vice Mr. Elwyn Greene, retired.
The position of director of admeasurement (temporary) was
established on April 20, 1936, and Mr. Frederick DeV. Sill was ap-
pointed to the office.
Maj. Wilhelm D. Styer, Corps of Engineers, United States
Army, was appointed assistant engineer of maintenance on May 19,
1936, vice Lt. Col. William E. R. Covell, Corps of Engineers,
United States Army, upon relief of the latter from duty with the
Panama Canal.
The office of assistant general counsel was established by the Gov-
ernor on June 2, 1936, and Mr. Paul A. Bentz was appointed to the
office.
Col. Henry G. Pillsbury, Medical Corps, United States Army, has
been appointed to sail from New York about August 25, 1936, as







REPORT OF GOVERNOR OF THE PANAMA CANAL


replacement for Col. Orville G. Brown, Medical Corps, United States
Army, present chief health officer, now on terminal leave to expire

September 2, 1936.
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 tropi-

cal practice of paying Americans and Europeans in gold, while the

native or tropical labor was paid in local currency, usually based on

silver.

GOLD EMPLOYEES

The distribution of the gold personnel on June 5, 1935, and June 3,

1936, is shown in the following tabulation:


Department or division



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 -----.- -------..-..-..-......- -
Motor-car repair shop...--- ..--..-......- -
Motor transportation---....-------------
Panama Canal press-----------. --..--.-....-..


Gold force


June 5, 19351 June 3,


Total, the Panama Canal--------.........------------- 2,678
Panama R. R. Co.:
General manager:
Offices.-----.------------.........---........--------------- 22
Railroad transportation.-----------------------.................. 79
Receiving and forwarding agency-------------- 89


160
190

67
25
172
264
113
141
67
61
15
42
153
5
138
15
12
6
296
179
435

10
76
25
2
36
44
30
43
13

2,825


23
76
87


Decrease


...........^.
4
1

...........^.
I

...........^.

...........^.
-------2--
2
-.-.-------2
............






22
-- -- -
-- -- -
I.. . .
............
-- -- -
............




35


Increase




1
28
31
2.
IT



12
17
-------.----







1
------------




12



2.
1





I
21


4
2
S
182
12
21


2&



18


. ...... I
3 ----- ----.- .
2 .........






REPORT OF GOVERNOR OF THE PANAMA CANAL


Gold force
Department or division Decrease Increase
June 5, 1935 June 3, 1936
Panama R. R. Co.:-Continued.
Supply department:
Commissary division.--......-..-..-...----.. 203 206 ....---.-.- 3
Hotels.----------------.---- ------------------- 13 13 ............ ............
Dairy farm.................................... ------------------------------------3 3 ------------............ ............
Total, Panama Railroad.----.---.----------.. 409 408 5 4
Total force................................... 3,037 3,233 40 186

Increases occurred in 22 of the 37 units of the organization and
decreases in 11. A gain in the section of office engineer was due to
the employment of temporary men in order that detailed designs,
specifications and final estimates on all projects may be completed
one year before construction begins. The force of the dredging
division was augmented for the purpose of adding extra shifts to a
drill barge and dipper dredge and attendant floating equipment.
The extra force in the health department included several additions
to the staff at Gorgas Hospital. In the constructing engineer's force
the gain was due principally to the employment of apprentices and
a number of men to supplant regular employees being used as in-
spectors on building contract jobs. The increase in the electrical
division was due to the employment of eight apprentices and various
skilled employees. The decrease in the Madden Dam division was
due to the abolishment of that division.

RECRUITING AND TURNOVER OF FORCE

The following table shows additions to the gold force and separa-
tions from it in the fiscal year from July 1, 1935, to June 30, 1936.
Employments are classified as made in the United States or on the
Isthmus and separations are classified by cause.

Opera-
tionand Execu- l ah Account- Panama Toa
mainte- tive Sul Healt ing Railroad
nance
Employed orreemployved in the United
Stites.. ............................ 60 35 2 46 2 3 148
Employed or reemployed on the Isth-
mus......------------------------------............. 102 45 44 35 6 14 246
Total additions -.................. 162 so0 .16 i1 8 17 394
Resigned.............................. 21 25 5 3f, 5 12 104
Retired.
Ave............................... 10 6 1 ..--.-..- I 5 23
Disability ......................... 8 5 2 ......... ....... ------------------ 2 17
Voluntaryseparation.............. -------------- 5 1 1 I 1 1 10
Died...................... .......---------------------------------. 8 2 2 I 1 4 18
Discliargeil
Reduction of force................. 5 ......... I --.---..-.. -----------. I 7
Expiration of temnpordry enimploy-
mnient............................ 20 8 17 23 2 4 83
Cam ............................. ---------------------------- 2 1 1 ...--------...-.--------- 2 6
Diahility......................... --------------------------1 1 1 .....---------.... ......... .........--------- 3
Total separations.......--......... 89 49 31 61 10 31 271

The Panama Canal: The Panama R. R. Co.:
Additions....... -------------------.............--------.... 377 Additions.... -..--......--------------- 17
Separations..-.------.------------------... 240 Separations--....--.--------..-------------- 31
Net additions------------------------ 187 Net separations------------------------ 14
Net addition to pay roll-Panama Canal and Panama R. R. Co-----..---...---------------------- 123





REPORT OF GOVERNOR OF THE PANAMA CANAL 81

Based on an average gold force of 3,166 for the year, the 271 sepa-
rations give a turn-over rate of 8.6 percent from all causes, as com-
pared with a turn-over rate of 14.9 percent for the fiscal year 1935
based on an average of 3,031 employees. The turn-over rate for the
fiscal year 1935 was high because of temporary employment in con-
nection with the. biennial overhaul of the locks. Ignoring those sepa-
rations which were due to the expiration of temporary employment,
turn-over rates would be 5.9 percent for the fiscal year 1936, and
7.2 percent for the fiscal year 1935.
The number of persons tendered employment through the Wash-
ington office of the Panama Canal, all above the grade of laborer,
was 219 as compared with 392 tendered the previous year. The de-
crease was due principally to the fact that there was no major lock
overhaul requiring the employment of additional personnel. One
hundred and twenty-nine persons accepted tenders and were ap-
pointed, covering 38 different classes of positions. Two thousand
seven hundred and one persons (2,400 from New York, 140 from New
Orleans, 27 from other Atlantic coast ports, 133 from Pacific coast
ports, and 1 via air-transport service), including new appointees,
employees returning from leaves of absence and members of their
families, were provided transportation from the United States to
the Isthmus. This is an increase of 162 over the previous year.

SILVER ElMPLOYEES

The numbers of employees on the silver roll by departments or
divisions on the last force reports, June 1935 and June 1936, are
shown in the following tabulation. This sunummary covers the specific
days on which the force report is made but it is believed to be fairly
representative for most of the divisions. In some divisions the num-
ber of employees at work may change by several hundred within a
short time, according to variations in the demand for hourly rated
labor. The summary shows only those actually at work on June 5,
1935, and June 3, 1936:

Silver force
Department or division
June 5, 1935 June 3, 1936

Panama Canal:
Accounting department--..-----------------------..----------------------- 3 3
Dredging division--...------...--------....-----------------------------------.. 928 958
Engineer of maintenance, assistant:
Office engineer....--..--------....----.------------...------------------------ 4 4
Surveys-meteorology..-----........---- ..-----. ------.. ------------...... 49 80
Electrical division--------....-----...---........------------------------------- 212 285
Locks division........-----------------...------..............----..----------------------- 650 658
Municipal division.-----...------...-----..----.----------.---------------- 999 915
Executive department:
Executive offices..------------.------------------------------------- 33 35
Clubs and playgrounds--..----..---------------..--------------------- 234 214
Bureau of posts-----......--.------------------------------------------ 18 18
Civil affairs and customs.----...---..------------....---...--------------------- 1 1






REPORT OF GOVERNOR OF THE PANAMA CANAL


Department or division


Panama Canal-Continued
Executive department-Continued
Police and prisons.. -----------.-. ---. -.... -........-......- ....- -
M agistrates courts-----.-...-----------. ................-.....-..- -
Schools ------...-....-------------------------------------...............--
Paymaster.---------...............--------------------..........................
Health department.....................................................
Madden Dam division..................................................
M arine division.........................................................
Mechanical division....................................................
Supply department:
Constructing quartermaster---.--------------------------.-.........
District quartermasters---...--.-----.-.-....----.-------.---------.
Farm bureau........................................................
Fuel oil plant.---..- ----------. ----------..-..-.----...--....---...-
Storehouses.........................................................
Motor-car repair shop.---..---..----..--- ..- ....-.--- ------..--
M otor transportation..------------ --.. --...... .. -.. -...--.-..-...
Panama Canal press-----......-............-..-..-.............-..-
Total, the Panama Canal -----------.-------....-------
Panama Railroad Co.:
General manager:
Offices-------------------------------------.-------
Railroad transportation....-- -....- .....----- .....- ....-- ....-..- -
Receiving and forwarding agency-------------------------
Supply department:
Commissary division------------.------------------------
Hotels---------------------------------------------
Dairy farm---....---.------------------..------------
Total, Panama Railroad----.--------------------------
Total force ------------------------------.-------


Silver force

June 5, 1935 June 3, 1936


I I


44
2
1109
2
839
24
563
794
503
345
22
51
249
49
138
73
6,.938


61
251
849
1,009
171
86
2,427
9,365


I Total silver force employed on last force report day while all schools were in session.

Increases appear in 19 and decreases in 7 of the 33 units employing
silver personnel. Electrical division forces made a gain of 73 due to
the employment of extra men on various construction projects. The
district quartermaster division had an increase in force of 43, of
which 17 were temporary employees. The force of the constructing
quartermaster increased 42, the larger number of which were em-
ployed for carrying on an extensive painting program. Increased
activity in the Ancon laundry and other productive plants of the
commissary division accounted for the added force of 65 in that
division. The increase in force of 124 shown for the receiving and
forwarding agency is not representative, as a great number of men
are hired by the day, the number depending on the amount of cargo
to be handled at the piers. The permanent force of the marine
division showed an actual decrease for the year but, as in the case
of the receiving and forwarding agency, there are day-by-day gangs.
These are employed for handling lines on transiting vessels and
the number employed depends on the amount of traffic through the
Canal.
Decreases were due to completion of projects and to the transfer of
personnel to other divisions.


82


44
2
1113
2
854
------------
605
780
545
388
20
55
248
47
143
74
7.091


79
273
973
1,074
180
92
2,671
9,675





REPORT OF GOVERNOR OF THE PANAMA CANAL 83

WAGE ADJUSTMENTS

GOLD EMPLOYEES

The Panama Canal Act provides that salaries or compensation for
Panama Canal employees fixed thereunder by the President or by his
authority "shall in no instance exceed by more than 25 percent the
salary or compensation paid for the same or similar services to
persons employed by the Government in continental United States."
It has been the policy generally to pay to United States citizens
employed on the gold roll the full 25 percent above pay for similar
work in Government employment in the United States, within the
limitations of appropriations and subject to the preservation of
coordination within the organization. This is justified by the dis-
advantages inherent in the climatic, economic, and social conditions
prevailing on the Isthmus.
The prevailing allocations of employees under the personnel
classification are based on the initial allocations made in 1928 and
1929, immediately following the passage of the Welch Act. Since
these original allocations became effective, the duties and responsi-
bilities of some employees have changed appreciably without cor-
responding changes having been made in the classification of their
positions. In April 1936, therefore, heads of departments were re-
quested to review the present allocations of all of their employees
included under the classification and to submit recommendations with
respect to such regrading as they might consider warranted on the
following general principles: (a) The classification of 1928-29 was
deemed to be substantially correct; the primary purpose of under-
taking a resurvey being to make such adjustments in existing classifi-
cations as were warranted by changes in duties and responsibilities;
(b) it was clearly understood that no general upward or downward
revision in classification was contemplated. As a result of this re-
survey approximately 100 requests for reclassification were received
by the classification committee from the various department heads.
Some of these have already been disposed of and the others are now
being investigated to insure proper consideration in all such cases.
The wage board, consisting of the assistant engineer of mainte-
nance and a representative selected by an organization of employees
and approved by the Governor, held five meetings during the year
in connection with rates of pay for meat cutters, assistant foremen
and relief engineers in the oil-handling plants, and in connection
with the coordination of salaries of masters, mates, and others on the
tug Favorite, dipped dredges, and craneboats Atl!as, Lam Crwes, and
La Valley.





REPORT OF GOVERNOR OF THE PANAMA CANAL


The salary board, composed of the heads of the nine major depart-
ments and divisions of the Panama Canal and Panama Railroad,
held no meetings during the year.
The complaints board, established for the purpose of investigating
and reporting on complaints of employees, referred to the board by
the Governor about working conditions, held no meetings during the
year, no cases having been so referred.

SILVER EMPLOYEES

Wages of employees on the silver roll, who are primIarily natives
of the tropics, bear no definite relation to wages of corresponding
classes of employees in the United States but are generally estab-
lished at levels based on those prevailing for tropical labor in the
Caribbean area.
Under Executive orders, the maximum rate of compensation au-
thorized for native employees is $So per month, or 40 cents per
hour, with the exception that these rates may be exceeded in the
case of not more than 112 such employees possessing special quialifi-
cations. The basic hourly rate of compensation for common labor
is 20 cents an hour. It has been at this level since. 1922, with later
provisos that 21 or 22 cents may be used as the entrance rate where
justified. Bonuses authorized in the bulletin on rates of pay, silver
roll, are payable only to employees who are shifted temporarily from
their regular duties to other duties.which involve disagreeable, dirty,
or hazardous working conditions not taken into consideration when
the employees' regular rates of compensation were fixed.
The rates of pay and other conditions of employment affecting
silver employees are reported on by the silver wage board, consist-
ing of the heads of the major departments and divisions and the
administrative heads of a few of the smaller organizations which
employ a considerable force of native labor. This board held no
meetings during the year.
As a further aid in maintaining an equitable scale of rates of pay
and maintaining the standard of living of these employees, a
weighted price index, reflecting price changes in the commissaries
on more than 100 staple items in common use among these workers,
has been carried forward for a number of years. With 100 adopted
as an index figure reflecting commissary prices in 1914, the index
rose to a peak of 168.98 in 1921. The 1936 index figure was 111.09.
SUPERANNUATED NATIVE EMPLOYEES
The Panama Railroad Co., through the board of directors, has
established a provision that native or tropical employees who are
no longer able to perform useful service in any capacity may be






REPORT OF GOVERNOR OF THE PANAMA CANAL 85

removed from the active rolls and be granted an annuity or given
a lump-sum payment. Since June 1, 1928, 22 such employees have
been given lump-sum payments ranging from $25 to $500, and 258
employees have been granted pensions ranging from $5 to $30 per
month. Since 1928, 58 pensioners have died, been transferred to
Corozal Hospital, disappeared, or otherwise become separated from
the pension roll, leaving 200 employees receiving annuities at the
end of the fiscal year. As of June 30, 1936, the average payment.
was $10.58 per month. The following table shows the number of
those retired, the number of those granted monthly and lump-sum
payments, and the number still receiving mnionthly payments at the
end of the year:

Lump- Month- Total Died or otherwise separated from roll in year Still liv-
Fiscal year sum y errploy- indicated Ing out
pay- pay- ees --------------------------_ of year's
ments ments retired 1930 1931 1932 1933 1934 1935 1936 as

AM8------------- I----------------- -------------------
1929Q----------------------
1930................. ---------------- 26 33 4 3 1 2 4 ---- II1
1931----------------- 2 13 15 .... 3 2 ... ... 8
1932----------------- 2 24 26 ------.. ------... 3 2 2 4 1 12
1933-..---.....--- ....---------- 3 67 70 ...... ...... ...... 5 5 2 2 53
1934................. 5 0 F.5 ------...... ...... ...... .... ------ 6 1 1 52
1935..-- ------------- 2 30 32 ...... ...... ...... ...... ...... 3 1 26
1936-----------------. 1 37 38 ...... ...... ....------ -----------.... ...... ...... 37
Total--------- 22 258 280 4 6 6 9 17 10 6 200

The foregoing applies only to those superannuated native em-
ployees who have been in the service of the Panama Railroad Co.
There is no provision for the payment of similar disability allow-
ances to superannuated native employees of the Panama Canal. Ap-
propriate legislation to permit the Panama Canal to conform to the
practice of the Panama Railroad is outlined and explained further
under "administrative problems."

REGISTRATION OF NATIVE WORKERS

In 1929 the silver personnel section was established primarily for
the purpose of maintaining service records of silver employees.
Since that time its functions have increased to maintain more ade-
quate control of the personnel problems involved in the employment
and maintenance of personnel records for approximately 11,000
native workers.
At the end of the fiscal year, detailed plans were complete for
instituting the major phases of the work which include the finger-
printing of all employees; the issuance of an identification card to
replace the present metal check issue; and an employment eligi-
bility program for the native workers involving written examina-
*tions, interviews, physical examinations, and limitation of eligi-






86 REPORT OF GOVERNOR OF THE PANAMA CANAL

ability for employment upon a basis of merit and efficiency. During
the year, two examinations were given to determine eligibility on
the registers of native workers. It is estimated that more than
2,000 native applicants have been interviewed during the year in
connection with the selection of new employees and about 3,000 in
connection with identification data.

REPATRIATION OF UNEMPLOYED ALIENS

An appropriation of $150,000 was provided by Congress toward
the close of the fiscal year 1934 for the purpose of repatriating
unemployed West Indians and their families who have rendered
at least 3 years' service with the United States Government or the
Panama Railroad Co. In addition to transportation expenses, al-
lowances of $25 for single men and $50 for men with families, who
may in meritorious cases also receive $10 for each minor child, are
given. These cash allowances are for purposes of rehabilitation in
their native countries. The total amount of this rehabilitation
allowance may not exceed $100 for each employee.
Approximately 954 persons have been repatriated since the appro-
priation became available. These included 454 employees and 500
members of employees' families. Approximately $36,000 of this
fund has been expended at an average expenditure (transportation
plus cash allowance) of $37.74 per person repatriated and an aver-
age cost of $79.30 per employee repatriated.
During the fiscal year 1936 approximately $8,250 was expended on
the repatriation and rehabilitation of 105 former employees accom-
panied by 100 members of their families. There is an increasing
reluctance of these people to accept repatriation due to the increas-
ingly long period that they have resided on the Isthmus, and due to
the fact that their children have a somewhat greater opportunity for
employment here than in the native land of their parents.
The Canal will continue to offer the opportunity of repatriation
and a sum for rehabilitation in their home country to former em-
ployees with at least 3 years of service while the fund lasts. This
may relieve slightly the unemployment situation in the vicinity but
will have little permanent effect under present conditions because
of the relatively high birth rates among the tropical inhabitants.

APPRENTICE-LEARNER COMMITTEE

The studies conducted by the apprentice committee in connection
with apprenticeship training during 1935 developed the fact that
there was a need for providing training which would equip young
men and women to fill positions outside the skilled craft groups.





REPORT OF GOVERNOR OF THE PANAMA CANAL


Accordingly, in May 1935 the Governor informed the committee that
they were to give consideration to the practical preparation of local
young Americans as replacements in all classes of positions in which
the committee considered satisfactory training courses could be es-
tablished which would qualify young people for permanent employ-
ment. in the organization.
In August 1935 an apprentice examination was prepared and ad-
ministered cooperatively by the division of personal administration,
the division of schools, and various department heads, to 59 appli-
cants for apprenticeships in the various skilled crafts. On the basis
of the register established from the results of this examination,
35 apprentices were appointed and are now receiving practical train-
ing in their respective crafts and related scholastic training from the
apprentice-learner coordinator.
After a series of conferences with the division of personnel admin-
istration and department heads, the new apprentice-learner commit-
tee recommended the establishment of approximately 50 learnerships
to meet present needs. The committee also developed a set of regu-
lations for both apprenticeships and learnerships.
During the year, examinations covering five types of learners-
electrical, mechanical, business service, scientific, and library-were
given to 120 applicants for the various learnerships and 45 appoint-
ments have been made on the basis of the registers established.
These appointees have entered upon their learnership duties and are
now receiving appropriate instruction from the apprentice-learner
coordinator.
The number of learners to be employed in the several occupations
in the Canal service will depend upon vacancies, funds, and the
amount of work on hand or in prospect. In general it is proposed
to fill the openings in certain positions or classes of positions in the
several departments by learnership except where laws and Executive
orders prevent and where the best interests of the Panama Canal
require the securing of trained employees from other sources.

PUBLIC AMUSEMENT AND RECREATION

As private industry is not permitted in the Canal Zone, the supply-
ing and supervising of recreational facilities for Canal employees
and their families is the function of the bureau of clubs and play-
grounds, a part of the Canal organization. During January 1935 as
a matter of administrative expediency this bureau was subdivided
into two distinct parts. One of these parts, the club houses, provides
those facilities such as restaurants, moving pictures, cigar and news-
stand sales, etc., which are ordinarily furnished by private capital.
This part of the bureau is self-supporting. The other part of the





88 REPORT OF GOVERNOR OF THE PANAMA CANAL

bureau, the playgrounds, provides those facilities such as play-
grounds, play sheds (gymnasiums), swimming pools, beaches, kinder-
gartens, and a boathouse which are commonly furnished by a civic
community to its citizens. This part of the bureau is supported
chiefly from appropriations, any incidental revenues received from
its facilities being used to help defray expenses.
The past fiscal year was the second in which the restaurants were
managed by the clubhouses, the Canal Zone restaurants having been
formerly operated by a private contractor. In the fiscal year 1936
the gross revenue of the restaurant activities of the clubhouses was
$3311,039, which is a slight increase over the previous year, and com-
prised an important part of the total revenues of the clubhouses.
Motion pictures and sales at the cigar and newsstand counters
accounted for a large part of the balance of the gross revenue of the
clubhouses.
The playgrounds subdivision cooperates with the division of
schools, handling all the required and elective physical educational
training courses. This subdivision conducts kindergartens on a regiu-
lar schedule similar to those of the schools division. It also has
general supervision over the athletic activities of the Canal employ-
ees, sponsoring among other things swimming, tennis and track
meets, indoor and outdoor baseball games for the school students,
basketball games, and archery contests. Archery is gaining in pop-
ularity, particularly on the Pacific side, where approximately 200
boys and girls and some adults have taken up the sport. During the
past year the physical program has been expanded by the addition
to the force of two directresses and a swimming instructor. The
Madden Dam clubhouse building served as the recreational center
for gold employees of the Panama, Canal and the contractors during
the construction of the Madden Dam. The continued use of the
building has been approved as a project of the playgrounds to be
maintained as a screened and somewhat improved camp for the
Canal Zone Boy and Girl Scouts of America.

EXPERIMENT GARDENS

It was reported in last year's report that the experiment gardens
had established a nursery of Heveca Bra.4iensis (Brazilian rubber)
trees for a large rubber company in the United States. The care of
this nursery was on a similar basis to that which had been followed
in caring for plantings of other outside interests to further agri-
cultural or botanical investigations, the company paying a fair rate
for the services. In August approximately 50,000 seedling trees were
turned over to the company to be planted on its experimental estate
in the Republic of Panama in the vicinity of Gatun Lake. The





REPORT OF GOVERNOR OF THE PANAMA CANAL


company left with the experiment gardens several hundred specimen
trees grafted to the highest yielding clones which they had intro-
duced from their selection plantings in the Philippines. Some of
the clones left with the gardens are G-1, which produces about
2,700 pounds of dry rubber per acre; G-3, which yielded over 1,000
pounds of rubber per acre when the trees were 5 years old; G-5
yields over 2,000 pounds per acre and is a very reliable yielder.
0-6 and G-7 are consistent high yielders, producing about 2,500
pounds of dry rubber per acre. These figures will mean more to the
layman when hlie learns that 450 pounds of dry rubber per acre
is the average yield of the rubber estates in Sumatra.
Although experimental work at the gardens has been curtailed to
some extent during the past few years, exchanges of seeds and plants
with botanic gardens, agricultural departments, experiment stations
and individuals, in many parts of the tropics and subtropics, have
been maintained. Over 300 new species of plants have been intro-
duced during the past fiscal year alone.

ADMINISTRATIVE PROBLEMS

One of the major duties of the Governor and his assistants is
planning improvements, both in present administration and facilities
and in provision for future needs. Brief discussion on some of the
more important matters affecting operations are presented herewith.
LEGISLATION

No reference will be made hereunder to legislation involving ap-
propriations needed for replacements and extension of plant and
equipment since this subject is treated elsewhere in this report.
There follows a review of legislation of special importance to the
Panama Canal enterprise which has been before the Congress during
the year. This discussion will be divided into two parts, legislation
proposed by the Canal enterprises and general legislative matters
pertaining to the Canal Railroad organization.

CANAL TOLLS-DUAL MEASUREMENT SYSTEM
The continuance in effect of the dual measurement system for
determining the amount of tolls to be charged vessels for transiting
the Panama Canal remains the one outstanding problem relating to
the administration of the affairs of the Canal for which a definite
solution has not been found. Legislation to correct the difficulties
which have resulted from the establishment of the dual system of
measurement has been recommended by successive Canal administra-
tions since 1915 and, although such legislation has been considered
99722-36---7





REPORT OF GOVERNOR OF THE PANAMA CANAL


by the Congress many times during the last 20 years, the discontinu-
ance of this inequitable system has not yet been provided for. It is
felt, however, that considerable progress toward a solution of this
vexatious problem was made by the enactment on April 13, 1936, of
legislation providing for the appointment by the President of a
(quoting the act) "neutral committee of three members for the pur-
pose of making an independent study and investigation of the rules
for the measurement of vessels using the Panama Canal and the
tolls that should be charged therefore, and hold hearings thereon, at
which interested parties shall have full opportunity to present their
views." This legislation also provides that the committee shall re-
port to the President prior to January 1, 1937, "and shall make such
advisory recommendations of changes and modifications of the bRules
for the Measurement of Vessels for the Panama Canal' and the
determination of tolls as it finds necessary or desirable to provide a
practical, just, and equitable system of measuring such vessels and
levying such tolls."
ORIGIN OF DUAL MEASUREMENT SYSTEM
Before the Panama Canal was completed, the President directed
the Secretary of War to appoint a Special Commissioner on Panama
Canal Traffic and Tolls to bring up to date the data on traffic and
tolls contained in the report of the Isthmian Canal Commission
(1899-1901), to formulate rules and regulations to govern the meas-
urement of ships transiting the Canal, and to make an investigation
and to submit recommendations regarding the tolls to be charged.
Acting in pursuance of these directions, the Secretary of War on
September 1, 1911, appointed as special commissioner, Dr. Emory R.
Johnson, a recognized authority on commerce as well as on railway
and water transportation. Dr. Johnson submitted two extensive
reports on the subject; the first of which, a comprehensive report on
traffic and tolls, was submitted on August 7, 1912. This report was
furnished to Congress and testimony relating to its provisions was
given in Congress before the committees then considering the bill
providing for the operation of the Canal (the Panama Canal Act
of Aug. 24, 1912).
The Panama Canal Act granted broad powers to the President
with regard to the assessment of tolls and the rates to be charged.
The act provided that:
Tolls may be based upon gross or net registered tonnage, displacement ton-
nage, or otherwise * *; may be lower upon vessels in ballast than upon
vessels carrying passengers or cargo * *; when based upon net reg-
istered tonnage for ships of commerce the tolls shall not exceed $1.25 per net
registered ton nor be less than 75 cents per net registered ton; * if
the tolls shall not be based upon net registered tonnage they shall not exceed




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