• TABLE OF CONTENTS
HIDE
 Front Cover
 Title Page
 Table of Contents
 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/UF00097365/00022
 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: 1937
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: VID00022
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
    Introduction
        Page 1
        Page 2
        Page 3
        Page 4
    Section I: Canal operation and trade via Panama Canal
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
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        Page 37
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        Page 39
        Page 40
        Page 41
        Page 42
        Page 43
        Page 44
        Page 45
        Page 46
    Section II: Business operations
        Page 47
        Page 48
        Page 49
        Page 50
        Page 51
        Page 52
        Page 53
        Page 54
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        Page 59
        Page 60
        Page 61
        Page 62
        Page 63
        Page 64
        Page 65
    Section III: Administration
        Page 66
        Page 67
        Page 68
        Page 69
        Page 70
        Page 71
        Page 72
        Page 73
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        Page 87
        Page 88
        Page 89
        Page 90
        Page 91
        Page 92
    Section IV: Government
        Page 93
        Page 94
        Page 95
        Page 96
        Page 97
        Page 98
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        Page 100
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        Page 108
        Page 109
        Page 110
        Page 111
        Page 112
        Page 113
    Section V: Financial and statistical statements
        Page 114
        Page 115
        Page 116
        Page 117
        Page 118
        Page 119
        Page 120
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        Page 150
    Index
        Page 151
        Page 152
        Page 153
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    Back Cover
        Page 169
        Page 170
Full Text











UNIVERSITY
OF FLORIDA
LIBRARY









ANNUAL REPORT
OF THE


GOVERNOR OF


THE PANAMA CANAL

FOR THE

FISCAL YEAR


ENDED JUNE 30

1937


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1937


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














TABLE OF CONTENTS

Pams
Introduction-.---. ----------------------------------------- 11
Operation and maintenance of the Canal------------------------- 1
Operation of auxiliary enterprises-business operations --.---------- 2
Government-administration- --------------------------------- 2
Services rendered by the Canal to shipping----------------------- 2
Revenues and expenses---------------------------------------- 8
Replacements-- ----------------------------------------------- 4

SECTION I. CANAL OPERATION AND TRADE VIA PANAMA CANAL

Statistics of Canal traffic ------------------------------------------ &
Canaltraffic by fiscal years 1915 to 1937------------------------- &
Traffic- by months-fiscal years 1936 and 1937--------------------- 8
Tanker traffic----------------------------------------------- 8
Nationality of vessels transiting Canal --------------------------- 10
Foreign naval vessels---------------------------------------- 12
Vessels entitled to free transit---------------------------------- 13s
Small commercial vessels transiting Canal ------------------------ 13
Cargo shipments segregated by principal trade routes -------------- 14L
Origin and destination of cargo---------------_------------------ 15
Principal commodities---------------------------------------- 20
Classification of vessels between laden and ballast traffic------------ 21
Laden and ballast traffic by nationality---------------------- 24
Average tonnage, tolls, and tons of cargo per cargo-carrying vessel-.. 24
Steam, motor, and other vessels--------------------------------- 25
Frequency of transits of vessels through the Panama Canal--------- 25
Net tonnage of vessels--------------------------------------- 27
Summary of passenger movement at Canal during 1937- ----------- 29
Transient passengers------------------------------------- 29
Canal operation and maintenance ---------------------------------- 30
Hours of operation------------------------------------------ 30
Operating schedules of locks-------------------------------- 31
Lockages and lock maintenance--------------------------------- 31
Pacific locks overhaul ------------------------------------- 32
Power for Canal operation------------------------------------ 32
Water supply---------------------------------------------- 33:
Dry season, 1937---------------------------------------- 34
Floods------------------------------------------------ 34
Madden Lake ---------------------------------- --------- 35
Madden Dam---------------------------------------.... ------- 35
Maintenance of channel-----------------------------__--------- 36
Ordinary channel maintenance- ----------------------------- 37
Special maintenance projects--- ------------_--------------- 38
Slides ----------------.--------.------------------------- 39-
Auxiliary dredging----------------__-------_______---_____------------ 40
Subsidiary dredging division activities ------------------ ------- --40


q 4-1 m






IV CONTENTS

Canal operation and maintenance-Continued. Page
Equipment-------- -.--------------------------------------- -- 41
Ferry service--------------------------------------------- ---- 42
Dredging division headquarters and shops -------------------- --- 42
Marine activities-------------------------------- ------------ 43
Aids to navigation----------- ------------------------ ----43
Accidents to shipping ---------------- --------------------- 43
Salvage and towing---------..----------------- 44
'Meteorology-hydrology-seismology---------------------------- 45

SECTION II. BUSINESs OPERATIONS

IPanama Canal business operations--------------------------------- 47
Mechanical division-------------------------------------- .. 48
Financial------------------------------- -----------------48
Drydocks--------------------------------------- 49
Marine repair work-------------------------------------- 49
Work other than marine work ------------------------------ 50
Plant improvements------------------------------------- 51
Electrical installation and repair work-------------------------- 51
Purchases and inspections in the United States-------------------- 52
Storehouses and ship chandlery-------- ------------------------ 53
Obsolete and unserviceable property and equipment--------------- 53
Fuel oil, Diesel oil, gasoline, and kerosene------------------ ----- 54
Building construction and maintenance--------------------------- 54
Termites----------------------------------------------- 55
Quarters for employees---------------------------------------- 55
Replacement of quarters for American employees------------------ 55
Contract construction ----------------------------------------- 58
Motor transportation --------------------------------------------- 58
The Panama Canal press ------------------------------------58
Revenues derived from the rental of lands in the Canal Zone-------- 59
Business operations under the Panama Railroad Co ------------------ 59
The Railroad ---------------------------------------------- 60
Receiving and Forwarding Agency- ----------------------------- 61
Canal Zone for orders ------------------------------------ 61
Coaling plants --------------------------------------------- 61
Telephones and telegraphs---------------------------------- 62
Real estate operations--_ -- --------------------------- 62
Commissary Division-- ----- -------------------------------- 62
Purchases------------------------------------------------------------- 63
Manufacturing and other plants ---------------------------- 63
IHotels ---------------------------------------------------- 64
Mindi dairy--------------------------------------------------- 65
Panama Railroad Steamship Line-------------------------------- 65

SECTION III. ADMINISTRATION

Departments----------------------------------------------------- 66
Operation and maintenance--------------------------- 66
Supply)------------------------------------------------ --- 66
Accounting ------------------------------------------------- 66
Executive--------------------------------------------------- 67
Health ---------------------------------------------------- 67
Panama Railroad Co----------- ----------------------------- 67





CONTENTS V

Page
Changes in administrative personnel--------------------------------- 67
Employees ---------------------------------------------------- 68
Personnel administration _------------------------------------------ 60
Identification of employees ---------------------------------------- 70
Gold employees--------- ----------------------------------------- 70
Recruiting and turnover of force --------------------------------- 72
Apprentice-learner program ------------------------------------ 73
Wage adjustments -------------------------------------------- 73
Silver employees_----- --------------------------------------------- 74
Wage adjustments------------------ ------------------------- 76
Registration of native workers---------------------------------- 76
Superannuated native employees ------------------------------ 77
Repatriation of unemployed aliens ------------------------------ 78
Unemployment ---------------------------------------------------- 78
Experiment gardens-- ------------------------------------- --- 79
Clubs and playgrounds-------------------------------------------- 80
Clubhouse subdivision---------------------------------- ----- 81
Subdivision of playgrounds----_-----_-------------------------- 81
Legislation ----------------------------------------- --------- -- 82
Abolishment of dual measurement for tolls ------------------------ 82
Cash relief for superannuated native employees ------------------- 8$
Authorizing disposal of certain lands of Panama Railroad Co-------- 84
Amendments to Canal Zone Code------------------------------- 84
Additional legislation----------------------------------------- 85
Miscellaneous legislative matters -------------------------------- 85
Capital allotments, fiscal year 19388--------------------------------- 87
General program ------------------------------------------------ 90
Additional needs ---------------------------------------------- 91
Engineering and architectural design---------------------------- 91
Staff Agency-Plans Section------------ -------------------------- 92
Increasing capacity of the Panama Canal--------------------------- 92

SECTION IV. GOVERNMENT

Area of the Canal ------------------------------------------------- 9
Population --------------------------------------------------- 9
Public health -------------------------------------------------- 94
Vital statistics------------------------ ---------------------- 95
Malaria ----------------------------------------------------- 96
Hospital and dispensaries------------------------------------- 96
Quarantine and immigration ----------------------___----------- 97
Municipal engineering------------------------------------------ 98
Testing laboratory-------------------------------------------- 98
Water system----------- ----------------------------------- 98
Sewer systems---------------------------------------------- 99
Roads, streets, and sidewalks, Canal Zone- ----------------------- 99
Gamboa project--------------------------------------- ------- 100
Dock 15, Balboa------------------------------------------- 100
Madden Dam ---------------------------_------------------ 101
Cities of Colon and Panama---------------------------------- 101
Miscellaneous projects -------------------------------------- 101
Public order.---.-- ---------------------------------------- ----102
Fire protection------- ------------------------_------------------- 104






VI CONTENTS

Page
Magistrates' courts ----------------------------------------------- 105
Balboa-------------------------------------------------------- 105
Cristobal --------------------------------------------------- 105
Pardons and reprieves---------------------------------------------- 106
Public-school systemn---------------------------------------------- 106
Postal system ------------------------------- --------------------- 107
Air mail --------------------------------------------------- 108
Immigration visas---------------------------------------------- 109
Relations with Panama--------------------------------------------- 109
Customs------------------------------------------------------- 110
Shipping commissioner ------------------------------ .----------. 110
Administration of estates -------------------------------------- 111
Licenses and taxes-------------------------------------------- 111
Foreign corporations-------------------------------------------- 112
Insurance----------------------------------------------- 112
Commercial aviation ----------------------------------------------- 112

SECTION V. FINANCIAL AND STATISTICAL STATEMENTS

Accounting system ----------------------------------------------- 114
Operations of the Panama Railroad Co------------------------------- 115
Panama Canal operations------------------------------------------ 115
Index to tables----------------------------------------------- 116













REPORTS OF HEADS OF DEPARTMENTS AND DIVISIONS
APPENDIXES NOT PRINTED
The material in the annual report of the Governor of the Panama Canal,
published in this volume, is to a large extent a summary of the data presented
in the annual reports from the heads of departments and divisions in the Canal
organization; the latter, regarded as appendixes to the report of the Governor,
are not printed. The annual reports of the Panama Railroad Co. and the health
department are published separately; the latter is compiled for calendar years
only. The reports of the heads of departments and divisions, as listed below,
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 office, report of chief of office and general purchasing officer.
Pardon board, report of chairman.
Aeronautical inspector, report of.













































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in 2010 with funding from
University of Florida, George A. Smathers Libraries with support from Lyrasis and lhe Sloan Founidaniio


http://www.archive.org/details/annualreportofgol937cana











ANNUAL REPORT


OF THE

GOVERNOR OF THE PANAMA CANAL


BALBOA HEIGHTS, CANAL ZONE,
October 1, 1937.
The SECRETARY OF WAR,
Washington, D. C.
SIR: I have the honor to submit the report of the Governor of the
Panama Canal for the fiscal year ended June 30. 1937.
Respectfully,
C. S. RIDLEY, Governor.

INTRODUCTION
The administration of the affairs of the Panama Canal enterprises
involves three main elements-(a) the operation and maintenance of
the Canal itself; (b) the operation of the auxiliary enterprises necessary
to provide adequately for the needs of shipping and of the Canal
operating forces; 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.
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 responsibility
and control of the entire organization either in his capacity as Gover-
nor 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 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.
Essentially this involves the maintenance of the waterway, the opera-
tion of the locks and the control of traffic through the Canal. Through-





REPORT OF GOVERNOR OF THE PANAMA CANAL


out the year the Canal force maintained its high standard of expedi-
tious 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.

OPERATION OF AUXILIARY ENTERPRISES-BUSINESS OPERATIONS
Secondary only to the operation of the Canal is the function of
supplying various services to shipping. Commerce requires at the
Canal certain adjuncts essential to shipping, such as fuel oil and coaling
plants, storehouses for foodstuffs, ship chandlery, and other essential
supplies, marine and railway repair shops, terminal facilities for the
transshipment of cargo and passengers, a railroad line across the
Isthmus and a steamship line between 14ew York and Panama,
quarters and commissaries for the operating force, and other ad-
juncts essential to the economical and efficient operation of the
Canal. 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.

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

SERVICES RENDERED BY THE CANAL TO SHIPPING
The more important items of the business of the Canal and its
adjuncts covering principal services to shipping are expressed numeri-
cally in the following table, which presents a comparison of the activi-
ties during the fiscal year 1937 with the 2 years immediately preceding:





REPORT OF GOVERNOR OF THE PANAMA CANAL


Fiscal year Fiscal year Fiscal year
1935 1936 1937

Transits of Canal by ocean-going ships paying tolls-......- 5,180 5,382 5,387
Transits of small commercial traffic not counted in ocean-
going traffic------------------------.. ....... ----------------- 634 621 807
Free transits of U. S. Army and Navy vessels, Colombian
Government war vessels, vessels for repairs, etc --------- 552 450 501
Total transits.---- ...---------------------------. -- 6.366 6, 453 6. 695
Number of lockages during year:
Oatun Locks....----- ----.-------------------------- 5.316 5,334 5,504
Pedro Miguel Locks------------------....--------------.. 5,490 5, 548 5, 735
Miraflores Locks- --------------------------------- 5481 5,538 5,608
Tolls levied on ocean vessels -......-----....------....... $23,307,062. 93 $23, 479, 114.21 $23,102. 137. 12
Tolls on small commercial vessels---------------------- 32, 175. 12 31,512. 65 45, 503. 34
Total.--------.-- ---------.. -----------.. 23,339.238.05 23.510.626.86 23,147,640. 46
Cargo passing through Canal (tons)-.-.-----------.........- 25,309,527 26,505,943 28, 108, 375
Net tonnage (Panama Canal measurement) of transiting
vessels..---------....-----..-----..-------...-....------------......- 27,805. 588 28,024,417 27, 491, 621
Cargo per Panama Canal net ton of ocean vessels, laden
vessels only..--...----.--..-- ----------------------------...... .. 1.051 1.083 1.188
Average tolls per ton of cargo, laden vessels only ---------..-.. -- 0.813 $0.788 50.722
Average tolls per Panama Canal net ton of vessel measure-
ment, laden only-....-----------------..--------------................ $0.854 $0.854 $0.858
Calls at Canal ports by ships not transiting Canal.--------- 925 1,008 868
Cargo handled and transferred at ports (tons).------..------- 1,289,898 1, 373, 179 1,446,818
Coal, sales and issues (tons)---------........------.--------------............ 43,696 41,813 71,861
Coal, number of commercial ships bunkered...-------------- 198 215 296
Fuel oil pumped (barrels)------....------------------....---- ,713,542 10,068,543 9,033,060
Fuel oil-number of ships served other than vessels operated
by the Panama Canal-....--..-------....------------..---------- 1,703 1,674 1,929
Ships repaired, other than Panama Canal equipment...... 522 594 601
Ships drydocked, other than Panama Canal equipment.... 7 119 12&
Provisions sold to commercial ships (commissary sales).... $355,954.92 $304.547.29 $354,341.59
Chandlery sold to ships (storehouse sales)--.-------------- $48,730.33 $46,183.90 $49,904.02


REVENUES AND EXPENSES

The net revenues from Canal operations proper were $13,136,585.23
as compared with $14,531,654.54 last year. Net revenues from busi-
ness operations under the Panama Canal for 1937 were $917,360.14 as
compared with $920,185.23 in 1936. The combined net revenues
accruing from the Canal and its business units totaled $14,053,945.37
as compared with $15,451,839.77 in 1936. The capital investment
at the beginning of the fiscal year was $549,874,826.95, and the net
revenue represented a return of 2.56 percent on this investment, as
compared with 2.83 percent the preceding year.
The quadrennial overhaul of the Pacific Locks, carried on in the
past fiscal year, caused an increased expenditure of $749,575. In
addition to this, the receipts from tolls levied against shipping for use
of the Canal were very materially affected by the maritime strike in
the United States in the winter of 1936-37. Had there been no
strike to interrupt the normal flow of traffic through the Canal the
financial results of operations would have compared much more
favorably with the previous year.
The foregoing figures do not include the operations carried on by
the Panama Railroad Co. which yielded a net profit of $1,358,595.79





REPORT OF GOVERNOR OF THE PANAMA CANAL


for the year, as compared with $1,077,987.07 for the previous fiscal
year, an increase of $280,608.72, or 26.1 percent.
REPLACEMENTS
The past fiscal year marked the close of 23 years of successful
operation of the Panama Canal; in fact, its dependable and efficient
service is now taken for granted.
One of the factors which has made this possible is the high state of
maintenance in which all wearing and deteriorating parts are kept.
Of the total capital value of the Panama Canal there are approximately
-$100,000,000 of general structural values pertaining to nonbusiness
units of the organization, which are subject to deterioration and
require regular repair and periodical replacement.
Some of these structures, such as dams, and concrete buildings,
sare still in excellent condition and require but little expenditure for
upkeep; but on others deterioration has reached a point where replace-
inent 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 unservice-
able for present requirements or uneconomical to maintain.
Funds for the replacement of worn-out plant and equipment for
these nonbusiness units (with the exception of floating plant) must be
appropriated for by Congress from the general funds of the Treasury,
since no funded replacement reserves for these operations are main.
tainted by the Panama Canal. However, in the Canal accounts de-
preciation charges are made on depreciable property before interest
but the funds covering depreciation charges for nonbusiness units are
turned in to the general fund of the Treasury each year and are not
available without appropriation. Thus, for this part of the organiza-
tion, we depend on Congress to provide from these funds (which have
been deposited annually in the Treasury in prior years) the necessary
replacement of worn-out and obsolete plant to maintain the enterprise
up to the standard of operation.
Not only is there demand for replacement of some of the existing
facilities but also the need develops for new kinds of facilities. Funds
for such new facilities must also be obtained by direct appropriation.
For these reasons, it is essential to the continued efficiency of the
Canal and to the growth of its facilities to meet the growing demands
that the Bureau of the Budget and.the Congress give careful consid-
eration to the requirements submitted annually by the Governor for
these purposes.












SECTION I

CANAL OPERATION AND TRADE VIA PANAMA CANAL
STATISTICS OF CANAL TRAFFIC
The number of ocean-going commercial vessels 1 making transit of
the Panama Canal in. 1937 aggregated 5,387, in comparison with
5,382 in 1936, a gain of 5, or 0.1 percent. This represents a daily
average of 14.76, as compared with 14.70 in 1936, 14.19 in 1935, 14.34
in 1934, and 11.40 in 1933. 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 5,387 transits in 1937 totaled $23,102,137.12, in com-
parison with $23,479,114.21 in 1936, a decrease of $376,977.09, or 1.6
percent.
The net tonnage, Panama Canal measurement, of the ocean-going
commercial traffic going through the Canal in 1937, totaled 27,491,622
in comparison with 28,024,417 in 1936, a loss of 532,795, or 1.9 percent-
Cargo tonnage in 1937 aggregated 28,108,375, in comparison with
26,505,943 in 1936, an increase of 1,602,432, or 6.0 percent.
It will benoted that the Panama Canal net tonnage and tolls are
less, whereas the number of vessels is greater for 1937 than for 1936.
This is due to the fact that the average net tonnage for vessels in 1937
was 5,123 tons in comparison with 5,221 tons in 1936.
After the opening of the Canal on August 15, 1914, there was a
gradual growth of traffic, starting with a total of 1,058 transits in the
fiscal year 1915 and reaching a total of 6,289 transit in the fiscal year
1929. The fiscal year 1929 may be considered the record year in
Canal traffic with the total of 6,289 transits (an average of 17.2 transits
per day), total tolls of $27,111,125, and total cargo carried through the
Canal of 30,647,768 tons, although the Panama Canal net tonnage of
the ships in the fiscal year 1929 of 29,822,122 was slightly exceeded the
following year (the fiscal year 1930) when the Panama Canal net
tonnage was 29,963,670. From these record levels the world-wide
depression reduced Canal traffic during the next 4 years so that the
number of transit was only 4,162 in the fiscal year 1933. Traffic has
gradually increased since 1933 but is still well below the high peaks
reached in 1929 and 1930.
I Includes all tolls-paying vessels having a measurement of 300 or more net tons (Panama Canal measure.
ment) or 500 or more displacement tons.






REPORT OF GOVERNOR OF THE PANAMA CANAL


During the past year Panama Canal traffic was adversely affected
by the maritime strike in the United States, lasting from the 1st of
November 1936, to early in February 1937 Had there been no strike
to interrupt the normal flow of traffic, the Canal would probably have
enjoyed one of the best years in its history. The following table shows
a comparison between traffic in the fiscal years 1937 and 1929, indicat-
ing the relationship of these 2 years, and the percentage of 1937 traffic
to the peak traffic of 1929:

Number of Panama Canal Tons of
transits net tonnage Tolls cargo

Fiscal year 1929 ----... ...--- ---- ..----- . --. 6,289 29.822.122 $27.111,125 30,647,768
Fiscal year 1937 ------......------.------------------- 5,387 27,491,622 $23,102,137 28, 108.375
Percentage of traffic (1937+1929)--.--------------- 85.7 92.2 85.3 91.8

Although in general Panama Canal traffic has followed the trends
outlined in the preceding paragraphs, it has been subject to consider-
able fluctuation due to increases and decreases in the number of
tankers transiting the Canal, largely carrying cargo from the oil fields
in California. These surges in the tanker traffic have not followed the
variations in the balance of Canal traffic, but have varied from a peak
of 1,704 transits in 1924, when tankers comprised 33.1 percent of the
total Canal transits, to a total of only 598 transits in 1936, when tank-
ers comprised 11.1 percent of the total. Mineral-oil shipments caused
the sharp increase in traffic in 1923 and 1924, and the following slight
decline, as well as a part of the increase in 1934 and the small decline
in the following year. For this reason the trends of traffic through the
Panama Canal are more easily understood when the tankers and the
general cargo ships (cargo carrying ships other than tankers) are
presented separately. The tables on pages 9 and 10 of this report
segregate traffic between these two classes of ships.
Of the gain in cargo tonnage in 1937, the increase from the Atlantic
to the Pacific was 1,645,733 tons, or 19.9 percent, and from the
Pacific to the Atlantic a small decrease was recorded of 43,301 tons,
or 0.2 percent.
The increase in west-bound cargo is mainly due to an increase of
1,008,483 tons in the shipment of scrap metal from the east coast of the
United States to the Far East. Shipments of iron and of iron and steel
manufactured products over this trade route increased by 307,905
tons and accounted for a large part of the balance of the increased
west-bound shipments.





REPORT OF GOVERNOR OF THE PANAMA CANAL


The slight reduction in the total east-bound cargoes undoubtedly was
due to the maritime strike in the United States. Shipments from the
west to the east coast of the United States declined by 1,175,485 tons
or 22 percent. In the east-bound United States intercoastal ship-
ments the greatest decrease was in lumber, which declined 366,173
tons, or 24 percent, while shipments of many other commodities over
this trade route also showed declines. Shipments from the west coast
of the United States to Europe likewise declined due to decreased
shipments of barley and of fresh, canned, and dried fruits.
Increased shipments of 450,246 tons or 24 percent were made from
the west coast of South America to the east coast of the United States,
largely of iron ore and nitrates, and of 331,562 tons or 14 percent
from South America to Europe, principally of mineral oils, nitrates,
and copper. Increased shipments of lumber from Canada to Europe
more than offset a. reduction in the shipments of wheat over this
trade route. There was a substantial increase in the shipment of
mineral oil products from the west coast of the United States to the
West Indies.
Further details of the individual commodities and of the trade
routes served by the Canal are presented on pages 14 to 21 of this
report.
In the fiscal year 1937 the transits of naval and other public vessels
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 501, as against 450 for 1936.
The total tolls-paying and free transits combined, which includes all
ocean-going vessels of 300 tons or more, numbered 5,888 in comparison
with 5,832 in 1936, equivalent to averages of 16.13 and 15.93 transits
per day, respectively.
The receipts from tolls as reported to the United States Treasury
for the fiscal year 1937 were $23,147,433.54. This figure includes tolls
on local commercial traffic amounting to $45,503.34 which are not
included in the Canal statistics covering ocean-going commercial
traffic. The toll receipts reported to the United States Treasury
moreover reflect minor adjustments for overcharges and under col-
lections amounting to $206.92. These two items account for the
difference of $45,710.26 between the total receipts reported to the
Treasury 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.








8t REPORT OF GOVERNOR OF THE PANAMA CANAL

CANAL TRAFFIC BY FISCAL YEARS 1915 TO 1937


Comparative traffic statistics covering ocean-going vessels for each
fiscal year since the Canal was opened to navigation are shown in the
table following:


Fiscal year ended June 30 Ntunrsof Panama ang Tolls Tons of cargo


1915 6----- ----------------- -------------- 1,058 3.791,770 $4,366,747.13 4,888,400
1916 1,----- -------------------------- 724 2,391,433 2,403.089.40 3,093,335
1917--..---------------------------------- 1,738 5,791,236 5,620,799.83 7,054,720
1918 --- ------------------------ 1,989 6.563,864 6,428,780.26 7,525,768
1919. .------.1----------.-------------- 1.948 6,116.877 6.164.290.79 6,910,097
1920------------------------------------ 2, 393 8. 538, 804 8, 507, 9.38. 68 9, 372, 374
1921------------------------- --------- --- ,791 11,405.550 11,268,681.46 11,595.971
192.---........------------------------------- 2.665 11,411.452 11,191,828.56 10.882,607
1923 .-------------------------------- -------- 3. 90 1S,601.298 17.,504,027.19 19,566,429
1924 ........--------------------------- 5 26. 142, 021 24, 284, 659.92 26,993,167
1925.........----------------------------- 4,52 22,847.527 21,393,718 01 23,956.549
1926 ---"------------------------------- 5,0S7 24.763,075 22,919,931.89 26,030,016
1927 --.----------------------- ---------- 5. 29 2b, 210. 623 24, 212,250.61 27,733, 555
1928 --------------------------- ------- F .253 29.,436,697 *26, 922, 200.75 29, 615,651
1929---------------------------------------- 6. 289 29,822,122 27,111. 125 47 30,647.768
1930 ---------------- --------------- 6,021 29.963,670 27, 59, 948.94 30.018,429
1931---------------------------------- 5,37 27,773,037 24,624,599.76 25,065,283
193 ...........-- -- --- ---------.......... 3.2 23,613,370 20, f.94,704.61 19,798,986
1933----------------------------------------- 4, 162 22, 803, 74 19. 601077. 17 18, 161, 165
1934-o------------------------------------- 234 2'4, 550.953 24,047. 1I3.44 24,704,009
1935 ---- ---------------------------- 5. 1SU 27,. '05. 5S 23, 307. 1062.93 25, 309, 527
1936---------------------------------- -------- 5.32 2A, 24, 417 23.479. 114.21 26, 505,943
1937---------------------------------- 5357 27, 91.622 23,102,137.12 2., 108,375
Total------------------------- 92,990 449,860,834 406,215,948.13 413,538, 124

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


TRAFFIC BY MONTHS-FISCAL YEARS 1936 AND 1937


The commercial traffic during each month of the fiscal year 1937
is summarized in the following table, in which are inserted for com-
parison corresponding figures for the preceding year:


Month


July- ..........
AUBUaC..... --
September..----
October........
November......
Decerm her.....
January........
February.......
M arcb..-------
April-------
May -------
June..-------
Total-..-
Average per Mo


Number of
vessels


Panams Canal net
tonnage


Tons of cargo


Tolls


_______ __________ ____ ____ I _____


1935-3611036-37


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


456
473
466
482
368
341
399
377
536
473
544
472


1935-36


2,035,873
2, 102,387
2,095,599
2,357,640
2, 165, 55)
2,382,602
2, 411, 073
2.122,013
2,.714.768S
2, 4,.1, 561
2. 501, 215
2,449, 127


1936-37


2,364.539
2. 3Y. 31ll6
2,42,1. 317
2, 499, A78
1,768,738
1, 655. 501
1,915, 787
1,940.611
2, 770. 451
2,460,.549
2, 839, 127
2,450,018


1935-36


1.777.S15
2. 01., 2,.9
1.'Jul. 4h;
2, 22', 516
2,050,422
2,187,731
2,148.935
2,155,031
2,634, 150
2,430,134
2,419.652
2,459, 752


1936-37


2,450,324
2.39;l. 331
2. 526, 366
2,463,069
1,747,36"
1, 53k. 503
1, S55,iu7
1,839,788
3,016,418
2,652,880
2,950,925
2,670,466


1935-36


$1. 6r3.649.94
1,757,259. 77
1.780,805 80
1, 964,076.81
1, 796,820.57
1. 997,206.74
2,018, 543. 52
1,952,682.73
2, 293, 874. 51
2,079,730.70
2.081,103.73
2, 073, 359. 39


-I --


,387 28,024,417 27.4Y1,622 26.505.943 28,108,375 23,479,114.21
449 2,335,368 2, 20O, 969 2, 20'. 829 2.342,365 1,956,592.85


TANKER TRAFFIC


Transits
an increase


of tank ships during the fiscal year 1937 totaled 643,

of 45, or 7.5 percent, in comparison with the 1936 total of


1936-37


$1,999, 105. 18
2,051. 540. 28
2, 045. 440. S
2,081,758.23
1, 48-. 054. 25
1,366, 38S. 58
1, 598, 323. 51
1,602, 306. 30
2,355. 149. 04
2,067,026. 68
2.376.706.36
2,070,337.89


23,102.137.12
1.925,178.09


I - I-






REPORT OF GOVERNOR OF THE PANAMA CANAL


598. Tanker transits in 1937 comprised 11.9 percent of the total
ocean-going commercial transits, made up 13.6 percent of the total
net tonnage (Panama Canal measurement), paid 14.9 percent of the
total tolls collected, and carried 15.5 percent of the cargo which passed
through the Canal.
Cargo carried through the Canal in tank ships during the fiscal year
1937 amounted to 4,365,620 tons, in comparison with 3,953,795 in
1936, an increase of 411,825 tons or 10.4 percent. Segregation of the
1937 traffic by direction of transits shows that 583,294 tons of tanker
cargo went through from the Atlantic to the Pacific, and 3,782,326
from the Pacific to the Atlantic.
Of the mineral oil cargoes carried through the Canal during the fiscal
year 1937, approximately 36 percent was gasoline, benzene, and
naphtha; 40 percent crude oil; 12 percent Diesel and fuel oils; and the
remainder, 12 percent, lubricnting oils and kerosene.
The three tables below, which begin with the fiscal year 1923 and
thus cover the period during which tankers have been an important
component of the traffic through the Canal, show the traffic divided
between tank ships and all other ocean-going con mmercial 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:

Number and daily average transits of tankers and general carriers

Ocean-going commercial Daily average
transits
Fiscal year
Tankers General Total Tankers General Total

1923 ----------------------------- ---- 913 2,995 3,908 2.5 8.2 10.7
1924.------------.------------------------- 1,704 3,454 5,158 4.7 9.4 14.1
1925-------------------------------- ------1,079 3,513 4,592 3.0 9.6 12.6
1926------------------------------------ 1,090 3,997 5,087 3.0 11.0 14.0
1927 -------------------------------- -- 1,324 3,969 5,293 3.6 10.9 14.5
1928..-... .... ..................... ........ 1,121 5,132 6,253 3.0 14.0 17.0
19 ....................................... 1,083 5,206 6,289 3.0 14.2 17.2
190-------------------------------------- 1,218 4, 8i19 6,027 3.3 13.2 16.5
1931....................................... 944 4,42 5.370 2.6 12.1 14.7
1932-------------------------------------- 612 3,750 4,362 1.7 10.2 11.9
1933....................................... 636 3,526 4,162 1.7 9.7 11.4
193 ....................................... 942 4,292 5,234 2.6 11.7 14.3
1935... ......... ............... ... ....... 791 4,389 5, I';'O 2.2 12.0 14.2
it6-..... -.................. ............... 598 4,784 5,382 1.6 13.1 14.7
1937:
July-------------------.-------------- 69 387 456 2.2 12.5 1..7
August------------------ ------------- 63 410 473 2.0 13.2 15.3
September................. ........... 55 411 466 1.8 13.7 15.5
October................. ..... 48 434 482 1.5 14.0 15.5
November............................... 3 315 368 1.8 10.5 12.3
[Decermber............................ 40 301 341 1.3 9.7 11.0
January----------------------------- 66 333 399 2.1 10.7 12.9
February............................. 48 329 377 1.7 11.8 13.5
Alarr-b .................. ...... 57 479 536 1.8 15.5 17.3
April........................... ...... 44 429 473 1.5 14.3 15.8
May..... ... ... ...................... 51 493 544 1.7 15.9 17.6
June------------------------------- 49 423 472 1.6 14. 1 15.7
Total---------------------------- 643 4,744 5,387 1.8 13.0 14.8


23004-37-- 2







10 REPORT OF GOVERNOR OF THE PANAMA CANAL

Proportions of tanker and general net tonnage

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

1928.--.---------------- 5,374.384 13.226,914 18,601,298 28.9 71.1 100.0
1924.............------------------.....-- 10 212,047 15,929.974 26. 142, 021 39. 1 60.9 100.0
1925------------------- f. 424, 622 16.422.905 22. 47,527 28. 1 71.9 100. 0
1926----------....... --------- 6.343.240 18.419,835 24,763,075 25.6 74.4 1CO. 0
1927---------------.................----. 7,624,112 18, 586. 511 26. 210 623 29. 1 70.9 100.0
1928--------.... --...-------...-... 6,243,969 23,192,728 29,436.697 21.2 78.8 100.0
1929-----.......-- ............ 5.844,263 23,977,859 29,822.122 19.6 80.4 100. 0
1930------........------------.. 6, 564. 139 23,39. 532 29, 963, 670 21.9 78. 1 100. 0
1931 ------------------- 5,284,873 22, 488, 164 27, 773, 037 19.0 81.0 100.0
1932------------------- 3,570,398 20, 042, 972 23,613,370 15. 1 84.9 100. 0
1933.-------------------- 3,808,784 18,995,014 22, 803. 798 16.7 83. 3 100.0
1934.--.----------------- 5,811,995 22,738,958 28,550,953 20.4 79.6 100.0
1935-.------------------- 4, 676,761 23, 128,827 27, 805. 588 16.8 83.2 100. 0
1936------------------- 3,487,498 24, 536,919 2S. 024, 417 12.4 87. 6 100. 0
1937.----.--------------- 3,747,306 23,744,316 27,491,622 13.6 86.4 100.0


Proportion of tolls from tank ships and from all other vessels

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

1923-.---- ------- $4,769,324.63 $12,734,702.56 $17,504,027.19 27.2 72.8 100.0
1924-------------- 9,071,835.65 15, 212, 824. 27 24,284,659.92 37.4 62.6 100.0
19256-------------- 5,728,302.26 15,665,415. 75 21,393,718.01 26.8 73.2 100. 0
1926.-------------- 5, 626, 167.93 17,293,763.96 22,919,931.89 24.5 75.5 100. 0
1927-------------- 6,658,806.90 17,553,443. 71 24,212, 250. 61 27. 5 72. 5 100.0
1928--------------5, 436,437. 16 21,485,763. 59 26,922, 200.75 20.2 79.8 100.0
1929--------------- 5, 145, 632. 19 21,965,493. 28 27, 111, 125. 47 19. 0 81.0 100.0
1930 -------------- 5,768,963. 28 21,291,035. 66 27,059,998.94 21.3 78.7 100.0
1931-------------- 4,682,320. 14 19,942, 279. 62 24,624,599.76 19.0 81.0 100.0
1932-------------- 3, 197, 136. 29 17,497,568.32 20,694,704. 61 15.4 84.6 100.0
1933 --------------3,393,311.02 16,207,766. 15 19,601,077. 17 17.3 82.7 100.0
1934--------------- 5, 161,787.40 18,885,396.04 24,047, 183.44 21.5 78.5 100.0
1935 -------------- 4, 192,863.09 19, 114, 199. 84 23,307,062.93 18. 0 82.0 100.0
1936.-------------- 3, 192,498. 46 20, 286,615. 75 23, 479, 114. 21 13.6 86.4 100.0
1937--------------- 3,451,771.65 19,650,365.47 23, 102, 137. 12 14. 9 85. 1 100.0



NATIONALITY OF VESSELS TRANSITING CANAL

Segregation of the ocean-going traffic through the Canal during the
fiscal year 1937, by nationality, is presented in the following table
which shows transits, measurement tonnage, tolls, and tons of cargo:







REPORT OF GOVERNOR OF THE PANAMA CANAL


Ocean-going traffic through the Panama Canal during fiscal year 1937, by nationality
of vessel


Nationality


Argentine-----------
British..------------
Chilean.-----------
Chinese.-----------. -
Colombian.----..---
Costa Rican-------. -
Cuban.-------------
Danish------------
Estonian------------
Finnish.-------......
French------------
German---------..-
Greek--------------
Honduran..--------
Hungarian.----.----
Italian.---......-------
Japanese--..---------
Lat vian------------
Mexican..--------
Netherlands.--------
Norwegian---------
Panamanian--....--
Peruvian.--------..--
Philippine Islands-.
Polish-....-----------
Spanish.......------
Swedish.---------.--
United States.--...-
Union of Soviet
Socialist Re-
publics.----------
Venezuelan..-...--
Yugoslavian.---...--

Total, fiscal years:
1937-...........-
1936 -------.----
1935----..----


Measurement to


Number
oftran-
sits


1 1
i 1,385
23
7
1

2
189
8
1
100
332
72
32
1
46
1 262
4
II
221
674
184
'9
3
12
12
108
1,670

1
4
12


5,387
5,382
5,180


Panama
Canal
net


7,647,363
83, 175
29,306
1,629
337
-----....----
825, 255
23,868
2,865
570, 198
1,339.699
320,894
49,832
4,001
330,223
1,633, 150
11,080

806,948
3, 285.362
536,613
8, 200
19,110
563
49.495
514. 446
9,333.078

4.339
4,324
56. 269

27,491.622
28.024.417
27, 805,588


United
States
equivalent



5,429,639
64,077
24, 227
1,274
290
-...---------
532, 990
22,216
2,489
378,515
909,881
243,042
44,246
2,475
201,157
1,207,524
8,774
---.---------
552,228
2, 224,888
406,036
7,395
13,903
535
42,105
353,486
6,512,350

3,592
4,232
43,637


19,237,203
19,481,311
19. 428, 658


nnage


Registered

Gross Net


9,051,622
116.045
37,586

483
------------
904,465
31.544
3,939
694,077
1, 583, 647
369,825
81,226
3,938
389,585
1,940.096
12,816
--.----------
927,613
3,700,683
726,045
10,775
21,856
1,561
68,827
939,747
10,873,388

6,236
8, 168
69,507

32,575,300
33, 130,259
33,013,356


5,476, 056
68,316
23,277

299

548,292
22, 614
2,353
384,164
936,582
228,838
46,102
2,468
231,539
1,202,252
7,500

552,218
2,218,683
404,119
5,845
13,833
525
41,309
430,737
6,404,032


3,676
4,320
43,417


19,303,366
19,643,946
19,609,276


Tolls





$1,186.00
6,511, 158.05
79,403.70
27,569.06
1,172.88
362.50
1,080.00
638, 128. 19
22,367.28
3,111.25
465,523. 78
1,126,447.06
287,501.28
45,593.27
2,880.72
247,883.06
1,505,145.32
9,077.15
595.50
652,246.71
2,604,539.06
464,618.86
10,399.75
17,378.75
405.36
42,583.80
407, 185.83
7,868,431.26

3,124.08
4,181.40
50,856.21


23,102,137.12
23,479,114.21
23,307,062.93


Tons of
cargo


----------
7, 179, 136
94,721
32,942
----------
214
----------
757,379
22, 390
4,920
542, 539
1,496.084
429,913
11, 626
----------
132,010
1,789, 178
9,900
----------
700,725
3, 506, 109
627,182
5,937
31,681
----------
30, 102
775,800
9,844.254


3,724
73,909

28,108,375
26 505. 943
25,309, 527


2 See section on foreign naval vessels.
NOTE.-The above statement includes only ocean-goinp commercial traffic of 300 net tons and above,
Panama 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






12 REPORT OF GOVERNOR OF THE PANAMA CANAL

the year 1937 the percentage of total cargo carried by ships of each
nationality is also shown:

Tons of cargo carried by vessels of leading maritime nations

1937
Nationality 1933 1934 1935 1936
To Percent-
age

United States...---------.... -----............ 7,987,739 11,578,453 10,825, 573 10,700,535 9,844, 254 35.0
British.------.....-----..-----------. 4,170,995 5,193,136 5,776,021 6,181,571 7,179,136 25.6
Norwegian...-------------...........----- 1,773, 161 2,OSO, 833 2, 463,675 2, 717,860 3, 506, 109 12. 5
Japanese....-----------------.... ..--. 1,159,733 1,510.916 1,446,049 1, 697, b80 1,789, 178 6.4
German....------------..... -- -----... ---. 813,231 9f;2,218 1,300,991 1,305,090 1, 496,084 5.3
Swedish..---..------..........-------- 403.169 766,921 782,548 855,409 775,800 2.8
Danish------------------------- 448. i3 533,262 555,981 627,407 757,379 2.7
Netherlands.................... 381,071 403,451 439,168 511,620 700,725 2.5
Panamanian..------------------- 1,1,9.50 136,405 121,758 6541,610 627, 182 2.2
French ---------...........--....-..-------..- 249,395 430,471 570,034 544,343 542,539 1.9
AU remaining.------------------ 711,858 1, 107,943 1,027, 729 709,618 889,989 3.2
Total.-------------------- 18,161,165 24, 704,009 25,309,527 26,505,943 28,108,375 100.0


Thirty-one nationalities were represented in the ocean-going com-
mercial traffic passing through the Canal in 1937, compared with 24
in 1936 and 21 in 1935. 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 19 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 since 1919.

FOREIGN NAVAL VESSELS

In the Canal traffic statistics, foreign naval vessels such as colliers,
transports, supply ships, etc., with a measurement of 300 net tons
(Panama Canal measurement) or more, and foreign naval vessels such
as battleships, cruisers, destroyers, submarines, etc., with a dis-
placement 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





REPORT OF GOVERNOR OF THE PANAMA CANAL


naval vessels transiting the Canal which paid tolls on the basis of
displacement tonnage:


Nationality Number of Displacement Tolls
transits tonnage

Argentine.----..--.------------------------------ --------------- 1 2,372 $1, 186.00
British..----------------------------------------------------- 9 38,455 19,227.50
Cuban----. .-------------------------------------------------- 2 2,160 1,080.00
Japanese--------------------- ---.....-----------..... ----------------- 4 41,273 20,636.50
Mexican ------------------ ---------... ----------------------..----. 1 1,191 595.50
Peruvian.---.-----.----.---.---.-------------------------- 4 2,312 1,156.00
Total--.----------------------------------------- ------- 21 87,763 43,881.50


VESSELS ENTITLED TO FREE TRANSIT

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

Tonnage
Class f Displace- olls Tons of
transits Panama U. S. ment o argo
Canal, equiva-
net lent

U. S. Navy--------------------------------237 21,226 112,933 429,425 $364, 585. 21 46,619
U. S. Army---------------------------- ----- 231 684 249,900 25,368 324,181.48 35, 223
Other U. B. Government------------------- 7 ---------- 6,400 7,689 8,644.00 --------
Total, U. S. Government----------...........--.. 475 21,910 369,233 462,482 697,410.69 81,842
Colombian Government..------..-------------...... 13 ---------- 13,618 6,400 13,413.50 ---
Solely for repairs--..---------------.... -------. 13 ---------- 21, 316 ---------- 19, 30,. 00 6,484
Grand total----------------- ----------501 21, 910 404, 167 468,882 730,129.19 88,326


SMALL COMMERCIAL VESSELS TRANSITING CANAL

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






14 REPORT OF GOVERNOR OF THE PANAMA CANAL

transiting the Canal during the year, together with the tonnage, tolls,
and amount of cargo carried, are shown in the following table:


Tonnage
Number of TollB Cargo ton-
transits Panama Displace- nage
Canal, net meant

Atlantic to Pacific----------------------- 449 24,688 .------------....... $22, 697.72 8,624
Pacific to Atlantic----------------------.. 358 21,891 ------------........ 22,805.62 19,887
Total---------------..-----------. 807 46,579 8------------ 45,503.34 28, 511



CARGO SHIPMENTS SEGREGATED BY PRINCIPAL TRADE ROUTES


Cargo shipments through the Panama Canal during the fiscal year
1937 and in the 3 preceding years, segregated by principal trade
routes, are shown in the following tabulation:


1934

United States intercoastal:
Atlantic to Pacific-------------.....--------------- 2.074,707
Pacific to Atlantic-----.-------------------------- 6, 850, 261
Total....------------------------------------- 8,924,968
United States and Far East (including Philippine
Islands):
Atlantic to Pacific-------------------------......................... 1,822,955
Pacific to Atlantic................................. ----------------------------1,535,733
Total ----------------.. .....---------------------.... 3,358,688
Europe and South America:
Atlantic to Pacific------------.. -----------------.. 212,213
Pacific to Atlantic................................. 2,433,3650
Total-- --------------------.. ------.------, 645, 563
Europe and Canada:
Atlantic to Pacific------------------------------... 85,153
Pacific to Atlantic---------------------------- 2010,898
Total.---------------.. ----------.------------ 2,096,051
Europe and United States:
Atlantic to Pacific------------------...------------ 320,366
Pacific to Atlantic.-...-------------------------.. 1, 530, 881
Total------------------------------------...................................... 1,851,247
East coast United States and west coast South A merica:
Atlantic to Pacific..---...------------------------........... 108, 447
Pacific to Atlantic----------------..... ------------ 1, 633, 499
Total -------------------------------------1,741,946
Europe and Australasia:
Atlantic to Pacific..--------------. --------------- 252,680
Pacific to Atlantic..------...------------...--........-------...... 600,931
Total..--..... --. .............................- 853,611


Tons of cargo

1935 1936 1937


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


2,532,280
1,067,426


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


2,042,491
1, 395,668


2, 575, 075
3,965,082
6, 540, 157


3,508,284
1,445,704


3,599,706 3,438, 189 4,953,988

304,212 395, 917 460,777
2,640,962 2,330, 136 2,661,698
2,945, 174 2, 726,053 3,122,475

77,282 95,142 106,296
2,335,108 2,377,190 2,467,874
2,412,390 2,472,332 2,574,170

379, 785 614,703 534,749
1,388,187 1,788,865 1,435,003
1,767,972 2,403, 568 1,969,752
1 1I


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

20, 280
615,144
935,424


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

419,824
636,997
1,056.821


I = !I I-


208, 218
2,359,431
2, 567, 649

473,333
670,192
1.143,625






REPORT OF GOVERNOR OF THE PANAMA CANAL


Tons of cargo

1934 1935 1936 1937

United States and Hawaiian Islands:
Atlantic to Pacific.----------. -------------------- 114,227 111,030 142,774 184,617
Pacific to Atlantic-- ----------...-------------- 381,131 368,024 371,892 506, 320
Total--.----------------------------------- 495, 358 479,054 514, 666 690,837
United States and Australasia:
Atlantic to Pacific.......-----------------------------. 211,018 277,477 356, 117 316,004
Pacific to Atlantic................................. 81,303 152,567 155, 875 236,259
Total------------.-----....--------.....---..----- 292,321 430,044 511,992 552,263
Miscellaneous routes and sailings:
Atlantic to Pacific.-----------..--........----------------.. 960, 883 1,221,864 1, 405, 224 1, 528,379
Pacific to Atlantic-..--..---------------------....- 1,483,373 2,030,829 2,149,669 2,465,180
Total---..---- ------------------.....----------.... 2, 444, 256 3. 252, 693 3, 554,893 3,993, 559
Total traffic, all routes'
Atlantic to Pacific.--------..--...-----------------.......... 6. 162,649 7,529,721 8, 249, 899 9,895,632
Pacific to Atlantic...-..----------. ---- --------- 18,541,360 17,779,806 18,256,044 18,212,743
Total--..-......- ------ ..-.-----...-.... 24,704,009 25,309,527 26,505,943 28,108,375



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


Fiscal year ended June 30-
Commodity
1934 1935 1936 1937

ATLANTIC TO PACIFIC
Long tons Long tons Long tons Long tons
Manufactures of iron and steel---------------------- 982,596 1,114,189 1,379.363 1,770,293
Scrap metal-------------------------------------- 503,277 1, 186,061 646,464 1,666,030
AMineral oils--------------- ..---------------------- 550,469 605,595 678,607 794, 702
Paper and paper products --..------------------------- 256,449 347,424 397, 196 431.672
Metals, various------------------------------------ 60,140 175, 066 169, 141 379.200
Phosphates........................................... -------------------------------------188,320 255,033 289,870 310,.015
Cotton, raw----- --------------------------------........... 492,459 362,548 331, 989 298,300
Tinplate-------------- ----..--------------------------. 241,854 199,495 246,902 272,772
Sulphur ---------- ----------------..--.. 206, 509 208,678 224,734 253, 294
Automobiles.-------------------. ------- 90,111 131,341 204,996 185,983
Cement------------------------------------------.............................................. 85,456 103,808 126, 596 183,978
Machinery-------------------------------------- 87,285 112,339 137,261 155,206
Asphalt and tar-----------------------------------.... 61,581 113,305 139.864 147,193
Canned goods (food products)------------------------............... 106,869 121,478 135,627 136,885
Coal an.I coke------------------------------------ 110,294 97,582 132,956 124.467
Ores, various-------------------------------------- 27, 572 97,502 214,711 120.233
Chemicals-............................................ 87,652 98,907 116,066 119,437
Wood pulp---------------------------------------- 38,947 45,222 55, 529 105, 775
Textiles- ------------------------......-----------------........ 98,269 96,269 108,733 99,337
Automobile accessories ..-.-- ....-- ----.-- .... 65,217 79,818 100,625 86,289
Sugar. -----------------.. -------------------------.. 75,770 50,052 94,607 74, 185
Tobacco----------------------------------------- 72,006 52,611 51,707 69,407
Nitrate------------- ---------------------------- 69,164 58,464 103,178 68,078
Glass and glassware- ------------------------------- 51,548 53,824 65,202 62,226
Ammonium compounds-----------------------------..... 56,331 76,073 137,338 60,141
Liquors and wines-------------.--------------------- 25,972 60,034 66,130 58,826
Rosin..-----.....---..-----------------------------------...................................... 43,834 47,527 55,527 57,793
Sand...-------------..........---..--....--------------------------.............................. 31,225 31,967 63,992 52,160
Soda and sodium compounds......................... 32,484 25,909 37, 255 50,888
Slag............ ..................................--------------------------------------------- 5,003 10,203 17,003 50,299
Agricultural implements......----------............---------------...--.. 25,246 32,037 36,556 47,456
Lumber and mill products-----......----....------------------................. 27,729 26, 776 47, 835 46,700
alt---------------------------------------------.................................................... 60, 018 53, 931 48,485 45, 121
Coffee-------........------------------------------------........................... 64,624 52,670 61,503 44,529
Corn.....--..---........................................... --------------------------------------42,241 104,783 3S,072 40,977
Paints and varnishes................................... -------------------------------14,740 26. 265 38.496 38,594
Creosote...--------....................----------------...-----------------................. 14,626 38,395 44,615 34,880
Asbestos----------------------------------------- 11,473 23, 07G 21,535 34,443






REPORT OF GOVERNOR OF THE PANAMA CANAL 21


Fiscal year ended June 30-
Commodity
1934 1935 1936 1937

ATLANTIC To PACIric-continued Long tons Long tons Long tons Long tons
Potash--.--------.- ..----------------------------- 14.041 15,369 43,826 27,290
Oils, vegetable-- ----------------...----------------- 38,751 39,434 30,939 26.116
Clays.... ---- ..----------------------------- ---- ------- 9,.530 10,538 14,456 24.929
Fertilizers (unclassifled)------ ---------------------- 26,555 13,304 28, 204 23,628
Railroad material..------------.. --........--------------------- 42,350 28,125 61,274 21,986
All other.------...---..-- ---------------------------- 966,062 1,046,694 1,204,844 1,193,919
Total-...---.----.---.------------------- 6,162,649 7,529,721 8,249.899 9,895,632
PACIFIC TO ATLANTIC
Mineral oils- ------------------- -------------- 5,443,271 4,342,231 3,277,078 3,571, 626
Lumber-------------------- ------ ------- 2,148,020 2, 165, 835 2,764,091 2,748,917
Ores ------ ----------------------------- --- 1,224,135 1,080,144 1,496,021 1,851,254
Sugar-- -----------.----------------------- 1, 773,137 1,212,145 1,391,909 1, 35&, 94S
Nitrate ..--------- ------------------------------- 1,059,425 1,146,848 1,181,197 1,328,482
Wheat-------......----..----------------------------- 1,371,258 1,533,056 1,480,187 1,218,581
Canned goods (food products)----------...--------.. ---. 882,254 937,172 1,050,855 1,092.356
Metals. various.. ----------------------------------- 511,759 608,122 599,388 653,250
Food products in cold storage '-.--.----------..---...-- 357.058 363,745 324,092 304,332
Flour ------------------------------ ---- --------- 270, 531 319,655 337,487 259.389
Fruit, dried----------. -------------..-------------- 307,714 261,116 309,096 233,957
Fruit. fresh... --------------- ---------------------.... --.. 311,530 270,666 336,367 216,770
Oils, vegetable..------------.......------..-----------. 154, 710 193,470 221,255 197,000
Coffee-------....---------- --.-------------.----------. 140,907 137,081 1.5,315 177,209
Barley --.--------------..------------------- ------ 197,183 200,030 221,624 166.578
Wool. ------ --.........------------------- 155,627 122,234 161,528 159,586
Copra.---- --------------------------------- --- 103,904 102, 397 126,591 155,413
Wood pulp-------------------------------------- 135,214 129,771 164,001 140,612
Beans, edible, dry--------- ---------------------------- 128,473 130,649 171,444 134,239
Moltsjes and sirups ---------------.-------- 46,485 66, 517 132,302 127,381
Paper and paper products------------------------- 110,095 118,588 131,368 122,894
Cotton, raw-------------------------------------- 78,018 78,282 120,014 114,087
Soybeans ------ ------------------------------ 206,605 433,322 239,860 107,612
Oats --------- ---------------------------------- 90,034 155,881 69,916 100,629
Borax- ----------------------------- 80,512 94,716 101,012 96,619
Oilseed cake and meal---------------------------- 44,412 76, 539 62,687 76,253
Textiles---....--------------.......-..-.....---.------------. 24,384 45,635 42,753 75,652
Skins and hides-------- -------------- ---------- 62,271 64, 123 72,782 72,761
Rubber. raw--------------------------------- ---- 6,475 40,033 98, 914 70,536
Asphalt and tar ------------- ------ -------------- 22, 179 47,929 52,302 65,01,8
Porcelain ware------------------------------------ 36,213 46,152 50,194 51,608
Rice- _--- -- ------------------------- 47, 128 81,192 45,614 44,906
Phosphates _---_--------,--.-- ---------- 6, 168 30,405 58,175 39, 280
Bananas_ ---- ------- ------------------------ 40,627 40,177 66,153 38,501
Fish meal.--.-------------------------------- 40,694 75,593 51,922 37,901
All other-----. ----.. ----- ------------------ 922,950 1,028,355 1,087,550 1,002,566
Total..---------------------- ---- --- 18,541,360 17,779,806 18,256,044 18, 212, 743

1 Does not include fresh fruit.

CLASSIFICATION OF VESSELS BETWEEN LADEN AND BALLAST TRAFFIC

The following table summarizes the ocean-going commercial traffic
through the Canal during the fiscal year 1937 segregated between
laden ships and those in ballast, as well as between tankers, general
cargo, and those not designed to carry cargo, and also between vessels
of United States registry and those of all other nationalities.








REPORT OF GOVERNOR OF THE PANAMA CANAL


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REPORT OF GOVERNOR OF THE PANAMA CANAL


LADEN AND BALLAST TRAFFIC BY NATIONALITY

In the table below the ships of each nationality have been segre-
gated to show separate statistics on vessels which were carrying cargo
at the time of transiting the Canal and those which passed through
the Canal in ballast:

Laden and ballast traffic by nationality

Number of Panama Canal United States equiv- Tolls
transits net tonnage alent tonnage
Natiouulity.
Lad- Bal- Laden Ballast Laden Ballast Laden Ballast
en ast

British------........-..-------1, 092 284 6, 222,805 1, 424, 558 4,372, 757 1, 056,882 15, 467, 234 $1, 024, 697
Chilean---.------------- 22 1 81,590 1,585 62,610 1,467 7S. 263 1,141
Chinese---------------- 5 2 20, 127 9, 179 16, 753 7,474 20.941 6, 628
Colombian------------- ------- 1 ------------ 1,629 ------- 1,27 ..........----------- 1, 173
Costa Rican------------ 1 --- 337 .----- 290 --------- 362 ..........
Danish ---------------- 145 44 650, 650 174, 605 414, 339 118, 651 517,924 120. 204
Estonian--------------- 4 4 11,934 11,934 11, 108 11, 108 13,610 8,758
Finnish---.....------------- 1 2,865 ---------- 2,489 ---------- 3111 ..........
French----------------- 96 4 549,224 20,974 360,338 18,177 450, 422 15,101
German--------------- 324 8 1,304,006 35, 693 880, 737 29,144 1,100,748 25,699
Greek ------.------ ---- 56 16 250, 166 70, 728 189, 284 53, 758 236,324 51, 177
Honduran-------------- 16 16 24,916 24,916 22, 123 22, 123 27,654 17,940
Hungarian ------------- .... 1 ------------ 4,001 ----------- 2,475 ----------- 2,881
Italian------------------ 43 3 317,930 12, 293 191,446 9, 711 239, 032 8, 851
Japanese---------------264 14 1,554, 756 78,394 1,143,483 64,041 1,427,958 56, 551
Latvian.---------------- 2 2 5, 540 5, 540 4, 018 4, 756 5, 022 4, 055
Netherlands.------------199 22 685, 702 121, 246 152. 013 100, 215 565, 016 87, 230
Norwegian-.------------512 162 2, 497, 301 788, 061 1, 633, 489 591,399 2,041, 839 562,700
Panamanian..---------- 158 26 409,331 127, 282 2,6, 694 107, 342 373, 178 91,441
Peruvian.---------- ---- 5 .--- 8,200 ---------- 7,395 ---------- 9,244 ----
Philippine-------------- 3 -- 19, 110 ---------- 13,903 ---------- 17,379 ----
Polish----------------- ------- 1 ------------ 563 ---..------- 535 ----------- 405
Spanish---------------- 5 7 20, 205 29, 290 17, 196 24,909 21, 495 21, 089
Swedish---------------- 80 28 389, 514 124, 932 254. 018 99, 468 317, 466 89, 720
United States--------- 1,515 155 8,588, 176 744,902 5,866,516 645,834 7,328,080 540,351
Venezuelan------------- 2 2 2, 162 2, 162 2, 116 2, 116 2, 594 1, 587
Yugoslavian.------------ 9 3 42,901 13, 368 32,985 10, 652 41,231 9,625
Union of Soviet Social-
ist Republics--------- ------- 1 -..--------- 4,339 ------ ----- 3,592 ----------- 3,124
Total, 1937------- 4, 5.9 807 2:3. 659. 448 3,832,174 174 16, 20. 100 2. 9S7. 103 20, 306, 127 2,752 128
Total, 1936------- 4, 634 734 24. 464. 0-6 3, 560, 361 1 ;, 727,610 2, 73, 701 20, 84, 057 2, 558, 559


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


Fiscal year Fiscal year Fiscal year
1935 1936 1937

Measured tonnage-
Panama Canal net-------------.---------------------------- 5,405 5.229 5,137
United States net--------------------------------- -------- 3,776 3,635 3.594
Registered gross------------------------------------- ----- 6,416 6,180 6.086
Registered net------------------------------------------------ 3,811 3, 665 3,607
Tolls----. -------- ------------------------------------ $4, 522.93 $4, 377. 05 $4, 310 93
Tons of cargo (including vessels in ibalast)....---....-----.--.-----..-------- 4,921 4,947 5.255
Tons of cargo (laden vessels only).--------------------------------- 5,703 5,752 6,195

N OTE.-Comnput at ion of above averages is based on cargo-carrying vessels only; craft not engaged In com-
merce, such as yachts, naval vessels, etc., are not considered.





REPORT OF GOVERNOR OF THE PANAMA CANAL


STEAM, MOTOR, AND OTHE1 VESSELS

Of the 5,387 ocean-going commercial vessels transiting the Canal
during the fiscal year, 3,233 were steamers, 2,115 motorships, and
the remainder, 39, were unclassified naval vessels, yachts, etc. For
the past 5 years the proportions of these classes have been as follows:

1933 1934 1935 1936 1937

Percent Percent Percent Percent Percent
Steamers-------------- ---- --------------------- 63. 2 65.6 65.4 63.7 60.0
Motorships------------------------------------- 36.4 33.9 33.8 35.8 39.3
Miscellaneous ---------- --------------------------- .4 .5 .8 .5 .7
Total------------------------------------ 100.0 100.0 100.0 100.0 100.0

Of the 3,233 steamers transiting the Canal during the past fiscal
year, 2,236 burned oil and 997 burned coal. For the past 5 years the
proportions of each class have been as follows:

1933 1934 1935 1936 1937

Percent Percent Percent Percent Percent
Oil-burning------------------------------------ 70.6 76.2 74.8 72.9 69.2
Coal-burning----------------------------------- 27.2 22.6 24.3 27.1 30.8
Either oil or coal----------------------------------- 2.2 1.2 .9 --------
Total----------------------------------- 100.0 100.0 100.0 100.0 100.0


FREQUENCY OF TRANSMITS OF VESSELS THROUGH THE PANAMA CANAL

During the fiscal year 1937, 1,593 individual ocean-going commercial
vessels, representing 31 nationalities, passed through the Panama
Canal. In the aggregate these vessels made a total of 5,387 transits.
The number of transits made by individual ships varied from 1 to 74,
and averaged 3.38. The largest number, amounting to 74, was made
by the small Panamanian steamer Istmo, plying between Cristobal
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 587. There were 358
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:


23094-37-3







REPORT OF GOVERNOR OF THE PANAMA CANAL


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REPORT OF GOVERNOR OF THE PANAMA CANAL


The following tabulation shows for the fiscal year 1937 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 (1,593),
their aggregate number of transits, and their percent of the total
ocean-going commercial transits (5,387):

Percent Total Percent Percent Total Percent
Number Number of indi- number of total Number Number of indi- number of total
of trans- of ves- vidual of trans Canal of trans- of ves- vidual ons Canal
its sels vessels it transits its sels vessels i transits
(1.593) s (5,387) (1,593) its (5,387)

1---------- 486 30.5 486 9.0 15_ ---_- 2 0.1 30 0.6
2---------- 384 24.1 768 14.3 16--------- 2 .1 32 .6.
3 ---------- 186 11.7 558 10.3 17--------- 5 .3 85 1.6
4---------- 137 8.6 548 10.2 18--------- 7 .4 126 2.3-
5---------- 128 8.0 640 11.9 19 ------- 2 .1 38 .7
6---------- 154 9.7 924 17.1 25_ ------- 1 .1 25 .5
7---- ------ 45 2.8 315 5.8 26 -------- 3 .2 78 1.4
8---------- 18 1.1 144 2.7 27 -------- 2 .1 54 1.0 O
9---------- 6 .4 54 1.0 30-------- 2 .1 60 1.1
10--------- 4 .3 40 .7 50--------- 2 .1 100 1. 9
11--------- 1 .1 11 .2 74 ------ 1 .1 74 1.4
12--------- 4 .3 48 .9
13-------- 5 .3 65 1.2
14 6------ 6 .4 84 1.6
Total. 1,593 100.0 5,387 100.0


NET TONNAGE OF VESSELS

The 5,387 ocean-going commercial vessels which transited the
Canal in the fiscal year 1937 included 5,366 merchant vessels, yachts,
etc., paying on the basis of net tonnage, and 21 naval vessels paying
tolls on the basis of displacement tonnage. Of the 5,366 ocean-going
commercial transits paying tolls on net tonnage, 53.6 percent were
vessels of from 4,000 to 6,000 net tons, Panama Canal measurement.
Vessels under 1,000 net tons accounted for 6.2 percent of the total
transits, and those of 10,000 tons and over amounted to 2.4 percent
of the total. The average tonnage of all transits was 5,123, as
compared with 5,221 in the previous fiscal year, .a decrease of 1.9
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 tonnages
and group percentages for the fiscal years 1937 and 1936:








REPORT OF GOVERNOR OF THE PANAMA CANAL


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REPORT OF GOVERNOR OF THE PANAMA CANAL


29


SUMMARY OF PASSENGER MOVEMENT AT CANAL DURING 1937

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 1937, segregated as between first-class
and all others, with comparative totals for the fiscal years 1935
and 1936:

Disembarking Embarking

First class Others Total First class Others Total

July------------.------------- 1,730 1,683 3,413 1,933 1,550 3,483
August ...................... 1,913 1,698 3,611 2,023 1,344 3,367
September.................... 1,901 1,884 3,785 1,866 1,819 3,685
October------------.........--------.. --... 1,866 1,888 3,754 1,486 1,565 3,051
November-------------------- 1,494 1, 736 3, 230 1. 263 1,421 2, 684
December .................... 1,419 849 2,268 1,`7u 1,306 2,682
January--...................... 1,510 881 2,391 1,198 709 1,907
February..................... 1,415 1,030 2,445 1,331 1,234 2,565
March ....................... 1,561 1,889 3,450 1,663 2,145 3. S08
April......................... 1,350 2,055 3,405 1,625 1,457 3, 02
ay...------------------............. -------.......... 1,413 1,971 3,384 2,198 2,241 4, 439
June---....-------------------.... ...-- 1,556 1,370 2,926 1,974 1,291 3,265
Total, 1937-------------- 19,128 18,934 38,062 19,936 18,082 38, 018
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


As compared with 1936, the fiscal year 1937 showed an increase of
9.6 percent in the number of arrivals, and in comparison with 1935 it
showed an increase of 9.3 percent; in the number of departures there
was an increase of 11.3 percent over 1936 and 12.1 percent over 1935.
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

1935 1936 1937 1935 1936 1937

Passengers disembarking.....----------------............ 22,693 23,811 25, 263 12.144 10,924 12,799
Passengers embarking.................... 21, 053 22,267 24.860 12.866 11,884 13,158


A further segregation of the passenger movement shows that
28,813 incoming and 27,773 outgoing passengers came from or were
destined to ports of the Atlantic, and 9,249 incoming and 10,245
outgoing passengers were brought from or were destined to ports of
the Pacific.
TRANSIENT PASSENGERS

In addition to the figures shown above of passengers disembarking
and embarking, there were 136,085 transient passengers brought to
the Isthmus by vessels calling at Canal ports during the fiscal year
1937. For the fiscal year 1936, there were 132,590, and in the fiscal
year 1935 there were 120,906. The number in 1937 increased 3,495






;1EIPORT OF GOVERNOR OF THE PANAMA CANAL


or 2.6 percent in comparison with those in 1936, and made a gain of
15,179 or 12.6 percent over 1935. 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
and destination of these transient passengers are indicated in the
following tabulation:

Total Fiscal year 1937

1935 1936 Cristobal Balboa Total

Remaining on board vessels transiting Canal:
Atlantic to Pacific --- ------------------------- 49, 711 56, 001 55, 149 --------- 55,149
Pacific to Atlantic-----.-- --------------------- 39,336 40,117 ----------- 41,268 41,268
Remaining on board vessels entering port, but not
transiting Canal:
Atlantic to Atlantic --------------------------- 29,165 33,788 36,930 --------- 36,930
PaciL:u to Pacific.---------------------------------2,694 2.684 ----------- 2,738 2,738
Total----------------------------------- 120,906 132,590 92,079 44,006 136,085

NOTE.-In pjs'lligers remaining on board vessels transiting Canal, those from the Atlantic to Pacific are
taken up at Cnriubal, and those from the Pacific to Atlantic at Balboa; that is, at the port of arrival from
sea, and not again at the other terminus of the Canal.

The transient passengers included 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 stea mer, and finally completing
the trip to Balboa by rail or automobile. Similar combination trips
were made in the opposite direction. During the past year 127 trips
of these types were conducted, for a total of 13,839 passengers.

CANAL OPERATION AND MAINTENANCE

HoURnS 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 sum-
mary 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. Im.;
from Balboa anchorage, first ship at 6 a. m., last at 2:30 p. m. This
applies to vessels averaging 10 to 12 knots. In case a vessel is capable
of 15 knots, departure may be made up to about 3 p. m. from Balboa
and 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 Guaillard Cut before dark. Heavy tankers carrying gasoline
cargo are usually restricted to the early morning schedules, leaving at






REPORT OF GOVERNOR OF THE PANAMA CANAL 31

6, 6:30, and 7 a. m., 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.
OPERATING SCHEDULES OF LOCKS

At the end of the fiscal year, the schedule of operating shifts on the
Locks was as follows:
Gatun:
7:00 a. m. to 3:00 p. m.-8 locomotives.
7:00 a. m. to 3:00 p. m.-6 locomotives.
3:00 p. m. to 11:00 p. m.-8 locomotives.
3:00 p. m. to 11:00 p. m.-6 locomotives.
Pedro Miguel:
8:00 a. m. to 4:00 p. m.-8 locomotives.
9:30 a. m. to 5:30 p. m.-6 locomotives.
2:00 p. m. to 10:00 p. m.-8 locomotives.
Miraflores:
7:00 a. m. to 3:00 p. m.-8 locomotives.
9:30 a. m. to 5:30 p. m.-8 locomotives.
3:00 p. m. to 11:00 p. m.-8 locomotives.

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
comparison a statement of the totals for the preceding 5 fiscal years:


Gatun Pedro Miguel Miraflores Total
Month ---
Lockages Ves.;els Lockages Vessels Lockages Vessels Lockages Vessels

1936
July----------------- 461 578 473 581 466 557 1,400 1,716
August.............. 486 640 490 604 482 593 1,458 1,837
September.......... 463 544 478 557 471 550 1,412 1,651
October............. 489 603 515 637 506 617 1,510 1,857
November........... 372 521 407 544 401 529 1,180 1,594
December........... 365 503 401 557 385 532 1,151 1,592
1937
January.-...-----..------- 416 563 431 626 418 574 1,265 1,763
February............ 402 523 408 562 402 545 1,212 1,630
March............... 536 710 570 770 553 722 1,659 2,202
April................ 482 622 504 680 484 659 1,470 1,961
May................. 544 710 552 707 541 704 1,637 2,121
June................. 488 639 506 649 499 636 1,493 1,924
Total---------- 5,504 7,156 5,735 7,474 5,608 7,218 6. 8 47 21,848
Fiscal year.
1932............ 4,615 5,349 4,842 5,576 4,826 5,575 14,283 16,500
1933............. 4,380 3. .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
1936------------- 5,334 6.755 5,548 6,930 5,538 6,866 16,420 20.551


The lock-operating machinery functioned smoothly throughout the
year except for a few incidents due to faulty operation or minor failure






32 REPORT OF GOVERNOR OF THE PANAMA CANAL

of equipment. The following summary includes all delays to vessels
while transiting the locks:

Nuberof Aggregate delay caused
vesselsall vessels
delayed

Gatun Locks--------------- ----------------------------------- 14 2 hours 27 minutes.
Pedro Miguel Locks-.---------------------------------- -------- ---- 6 47 minutes.
Miraflores Locks..---------------------------------------------- 16 2 hours 32 minutes.
Total------. --------------------------------------------- 36 5 hours 46 minutes.


The average number of lockages made daily, and the average num-
ber of vessels lIndlled per lockage, during each of the past 5 fiscal
years, are shown in the table following:

Average number of lock- Average number of vessels
ages per day handled per lockage
Fiscal year
Pedro Mira- Gatun Pedro Mira-
atunMiguel flores Miguel flores

1933.---------------------------------- 12.0 12.5 12.4 1.22 1.21 1.24
1934---------- ------------------------ --14. 7 15.1 15.0 1.23 1.22 1.22
1935------------------------------ ------- 14.6 15.0 15.0 1.30 1.25 1.25
1936------------------------------------ 14.6 15.2 15.1 1.27 1.25 1.24
1937---------------------------------- 15.1 15.7 15.4 1.30 1.30 1.29

PACIFIC LOCKS OVERHAUL

The quadrennial overhaul of the Pacific Locks began on Decem-
ber 30, 1936, with the work starting at Pedro Miguel Locks. The
work at Pedro Miguel was completed on March 22, 1937. At Mira-
flores, the overhaul work started on March 23, 1937, and was com-
pleted on May 26, 1937, although normal operating schedules did
not go into effect until 7 a. m. on May 28, 1937. The total elapsed
time for the overhaul was 149 days-83 at Pedro Miguel and 66 at
MN iraflores.
The operation and maintenance forces during the overhaul period
consisted of three 8-hour shifts at each of the Pacific locks, so as to
give 24-hour service. Exclusive of 19 employees transferred from
the Gatun Locks, a total of 141 extra gold employees, 57 of whom
were employed in the United States, was required for the overhaul.
In addition to the foregoing, from 500 to 600 additional native workers
were continuously employed during the overhaul period.

POWER FOR CANAL OPERATION

The power system was operated throughout the year with a com-
bined generator output of 80,047,238 kilowatt-hours as compared
with a combined generator output of 73,902,935 kilowatt-hours for
last fiscal year. During the year, 73,255,156 kilowatt-hours were dis-





REPORT OF GOVERNOR OF THE PANAMA CANAL


tribute to consumers, as compared with 66,861,986 kilowatt-hours
for last year. From the above there resulted a transmission, trans-
formation, and distribution loss of 6,792,082 kilowatt-hours, or 8.49
percent, compared with a loss of 7,040,949 kilowatt-hours, or 9.52
percent, during last year.
The Madden hydroelectric generating station operated throughout
the year, generating approximately 52 percent of the total power
output. The remaining 48 percent of the total power (system) out-
put was generated by the Gatun hydroelectric station, which was
likewise operated throughout the year. Work of modernizing the
excitation system at the Gatun station, including the purchase and
installation of new voltage regulators, was started and advanced to
about 75 percent completion, part of the work being incomplete at
the end of the year due to delay in arrival of equipment from the
United States. A new storage battery and battery-charging equip-
ment were obtained, and new light and power station service trans-
formers were purchased and installed. This resulted in the replace-
ment of obsolete equipment and the attainment of greater reliability
and increased efficiency of operation. New switch gear with con-
trolling devices was installed at the Gatun hydroelectric station in
connection with the new feeder to Fort Sherman.
The Miraflores Diesel-electric generating station was maintained
throughout the year on a stand-by basis for emergency and peak-load
service. It was not needed, however, during the past year for the
conservation of water.
There were 9 interruptions to transmission line service during the
year as compared with 21 for the previous year. Five of these failures
were caused by insulator flashovers, one was due to a broken ground
wire contacting the line wires, two were caused by operating errors,
and one was due to failure of a bus support on the Madden power
station switch structure.
Numerous improvements were made in the substations, the most
important of these being the installation of type H switch gear for
the 11,000-volt power transformers at Cristobal. The work of
replacing and rearranging the overhead ground wires on the 44,000-
volt transmission line, which has been in progress for the past 3 years,
was completed during April 1937. A major item of transmission-
line maintenance consisted of spot cleaning and painting, during the
dry season, of 95 transmission towers in the Gamboa to Miraflores
section and 375 towers in the section between Cristobal and Frijoles.

WATER SUPPLY
The inflow of, water into Gatun Lake from all sources during the
year, representing approximately the capacity of the lake at elevation
87 feet, and the utilization and losses of the water in the lake, are





34 REPORT OF GOVERNOR OF THE PANAMA CANAL

summarized in the following table. There are also shown the per-
centages which each item formed of the total inflow or yield of the
1,320 square miles of the Gatun Lake watershed. The data are
presented for the fiscal years 1936 and 1937 for the purpose of com-
parison. Each year covers 12 months, ending June 30, and thus
embraces the cycle of both a dry and a rainy season.

Billion cubic feet, Percent of total
fiscal year yield, fiscal year

1936 1937 1936 1937

Run-off above Madden Dam.----------------..--.------------ 122.58 69.16 39.5 36.0
Yield from land area below Madden Dam------.-------------- 138. 41 84.56 44.6 44.1
Direct rainfall on Gatun Lake surface--------------------.----49.43 38.27 15.9 19.9
Total yield------------------------------------.................................... 310.42 191.99 100.0 100.0
Evaporation from lake surface ------------------------------ 20.55 22.21 6.6 11.6
Gatun Lake lockages---------------------.---------.------- 36.28 40.50 11.7 21.1
Gatun hydroelectric power-------.-------------------------- 35.72 34.00 11.5 17.7
Gatun spillway waste--- ------------------------------- 215.29 77.21 69.4 40.2
Increase in storage--------------------- ------------- ------ .47 16.09 .1 8.4
Leakage and municipal------...------------------------------ 2.11 1.98 .7 1.0
Total yield..-------------------------------------- 310.42 191.99 100.0 100.0

Operation of the Gatun spillway during the fiscal year 1937 totaled
1,961 gate-hours and of the Miraflores spillway, 290 gate-hours.

DRY SEASON-1937

From a water-supply standpoint the 1937 dry season began about
December 1, 1936, and ended May 7, 1937, the total duration being
158 days. This is 27 days longer than the 24-year average dry season
which begins about December 28 and ends about May 7. Due to
heavy rains in January, the net yield (total yield minus evaporation)
of Gatun Lake watershed was 1,531 cubic feet per second, or 70 per-
cent above the 24-year dry season average of 899 cubic feet per second.
The total yield was 2,415 cubic feet per second, of which 52 percent
was furnished by the inflow from the Madden Lake drainage area, but
37 percent of the total yield was lost by evaporation from the Madden
and Gatun Lake surfaces. The lowest dry season elevation of Gatun
Lake was 83.47 feet on May 3. The lowest dry season elevation of
Madden Lake, 219.12 feet on May 26, occurred after the dry season
had ended. This was on account of lowering the lake for turbine
tests and keeping the lake down by spilling until completion of the
drum gate painting.
FLOODS

There were no unusual floods during the calendar year 1936. A
flood with a maximum momentary inflow of 49,500 cubic feet per
second into Madden Lake occurred on January 16, 1937, a compara-
tively large flood when the time of occurrence is considered. This





REPORT OF GOVERNOR OF THE PANAMA CANAL


was the first time since 1909 that a maximum inflow of approximately
50,000 cubic feet per second has occurred in January.
MADDEN LAKE
The elevation of Madden Lake at the beginning of the fiscal year
1937 was approximately 170 feet. It was maintained between eleva-
tions 160 and 170 feet until the completion of grouting at Madden
Dam in the first part of September 1936. It was then lowered to
elevation 126 feet on September 11 to allow grout pipes to be removed
from the dam. All sluiceway gates and needle valves were closed
on September 12 and filling of the lake resumed, the lake reaching
elevation 240 feet near the close of the calendar year 1936. During
the 1937 dry season it was held at this elevation until the latter part
of February, or until geologists had completed their study of seepage.
It then was lowered to elevation 229 feet to allow painting of. the
Madden Dam drum gates. It was further lowered to elevation 219
feet in the first part of May in order that turbine tests might be made
at this elevation. On completion of the drum gate painting in the
latter part of May, the lake was allowed to rise, so that at the close
of the fiscal year 1937 the elevation was 230.44 feet.

MADDEN DAM
The temperatures in the concrete of the dam having reached a
satisfactory level, the cement grouting of the construction joints was
undertaken and completed. Work on cooling of the concrete through
the contraction joints was discontinued on July 24, 1936. Injection
of the grout began on August 18 and was continued until September
18, 1936, when operations were discontinued for the balance of the
fiscal year.
Mr. Andrew W. Simonds, an engineer from the staff of the United
States Bureau of Reclamation, Denver, Colo., arrived on the Isthmus
August 5, 1936, and assisted in the cement grouting operations. Dr.
Warren J. Mead, consulting geologist of the Massachusetts Institute
of Technology, accompanied by Mr. Frederic H. Kellogg, of the
Tennessee Valley Authority, visited the Isthmus between January
20 and February 7, 1937, for the purpose of investigating and reporting
on the leakage problems of the Madden Dam Reservoir. As a result,
further leakage tests will be made on the rim of the reservoir at high
levels to determine whether further clay grouting operations are
necessary.
Hydraulic model tests for the Madden Dam sluiceways which began
in 1936 were continued during the fiscal year 1937 at Pittsburgh, Pa.,
the work being done in the laboratory of the Carnegie Institute of
Technology under the supervision of the United States district engi-






36 REPORT OF GOVERNOR OF THE PANAMA CANAL

never, Pittsburgh. As a result of the model tests, it is probable that
some change will be made in the form of the inlets to the sluiceways
whereby erosion due to cavitation will be reduced or eliminated.
The observations inaugurated during construction of the Madden
Dam, including temperature changes in concrete, leakage, uplift,
settlement., and measurements of erosion in the river bed due to
operating outlets through the dam were continued.

MAINTENANCE OF CHANNEL

During the past fiscal year dredging activities included maintenance
of the Canal channel and terminal harbors for the entire Canal from
deep water of the Atlantic entrance to deep water in the Pacific. In
addition, work on the various authorized special maintenance projects
was continued as opportunity afforded, with the final completion of
projects nos. 5 and 6. Excavation during the year is summarized
in the following tables:

Canal prism dredging

Maintenance
Location
Earth Rock Total

Cubic yards Cubic yards Cubic yard
Atlantic entrance----------.------------------------------------- 6, 000 0 ----------- 6,000
Gatun Lake------------------------------------------------ 66,200 44,000 110,200
Gaillard Cut:
Ordinary channel maintenance--.....----------------------------... 369, 600 789, 450 1. 159.050
Special project no. 5---------------------------------------- 4,500 137. 550 142.050
Special prnjlci no. 13.--------------------------..---------- 478,500 25., 050 763. 550
MiraflnreF Lake:
Orlinary ch.lnnel maintenance---------------------------- 1,090,750 23,800 1.114.550
Spec-il project no. 6---.......................................... 788,550 266,700 1.055,250
Pacific enitr.inc.-
Ordinary channel maintenance..--------.-----.--------------- 3,069,500 66.700 13,136,200
Project no. I-..----------------. ------------------------- 61,000 14.000 75, 000
Total Canril rpi sm.n ............ .......-. ..-.....- .......... 5. 934, 6i00 1,627,250 7,561,850

Auxiliary dredging

Cristohn I Outer Harbor: Special project no. 11 (maintenance)---.... 27,100 209. 450 236, 550
Cristobal Inner Harbor:
Ordinary maintenance--------------...................------------------------ 3,100 12,500 15, 600
Speci.il prOjcrt no. 12------- ................................... 5, 400 5,400
Balboa Inner I;iirbnr: Ordinary nmaintenanct........... ....... 2,500 ...... 2.500
Entrance to Balboa drydock------------------------------------ 2,00 --........... ------------ 2.000
Total auxiliary dredging...................................... 34. 700 227,50 262.050
Grand total----------------------------------------------- 5,969,300 1,854, 600 7,823,900

I Dncr not inc-lei'lt 4.500 cubic yards of rehandled material.
3 In i.liiioni C..771. uuiie yards of Chamb sand were produced by craneboat 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 Gamboa; the central district, Gaillard






REPORT OF GOVERNOR OF THE PANAMA CANAL


Cut, from Gamboa to Pedro Miguel Locks; the southern district from
Pedro Miguel Locks to contour 50 feet below mean sea level in the
Pacific Ocean. Excavation in these three districts is summarized as
follows:

Canal prism Auxiliary Total

Earth Rock Total Earth Rock Total Earth Rock Tntal

Cubic Cubic Cubic Cubic Cubic Cubic Cubic Cubic Cubic
yards yards yards yards yards yards yardss yards yards
Northern. 72.200 44,000 116,200 30,200 227,350 257,550 102,400 271.350 373, 750
Central.... ------.. 852.600 1,212,050 2,064,650 -------- ---------. ------- 852,600 1,212,050 2,064, 650
Southern.... 5,009,800 371,200 5.381.000 4,500 --------- 4,500 5.014.300 371,200 15,385,500
Total. ..... 5.934,600 1,627,250 I7,561,850 34,700 227,350 262,050 5,969,300 1,854,600 27,823,890f
I Does not include 4,500 cubic yards rehandled material.
3 Does not include 6,775 cubic yards of Chamb sand produced.
ORDINARY CHANNEL MAINTENANCE

Gaillard Cut.-Maintenance dredging in Gaillard Cut, exclusive of
slide excavation, amounted to 407,050 cubic yards of earth and rock.
The three dipper dredges worked a total of 146 days during the year
in accomplishing this work.
Atlantic entrance, Cristobal Harbor and Gatun Lake.-M ainten a nce
dredging in the Atlantic entrance was in progress with the craneboat
Atlas working as a drag suction dredge for 3 days, removing 6,000
cubic yards of silt.
Maintenance dredging in the Cristobal Harbor was performed by
the craneboat Atlas and dipper dredge Cascadas, working 1 and 4
days, respectively, and removing a total of 115,600 cubic yards of
earth and rock.
Maintenance dredging in Gatun Lake was in progress with the
craneboat Atlas, working with clam-shell bucket and suction dredge
Las Cruces, working 1 day and 14% days, respectively, and removing
a total of 110,200 cubic yards of earth and rock.
Pacific entrance, Balboa Harbor and Miraflores Lake.-Maintenance
dredging in the Pacific entrance was performed by the suction dredge
Las Cruces, working 176 days in the Canal channel and the crane-
boat Atlas working 8 days as a drag suction dredge in the East Ferry
slip. A total of 3,140,700 cubic yards of earth and rock was removed
from the Pacific entrance during the year.
The crane boat Atlas working 3 days as a drag suction dredge
removed 2,500 cubic yards of silt from Balboa Harbor, as maintenance
dredging, during the year.
A total of 1,114,550 cubic yards of earth and rock was removed
from Miraflores Lake as maintenance dredging during the year. This






38 REPORT OF GOVERNOR OF THE PANAMA CANAL
work was performed by the suction dredge Las Cruces, working
57 days and two dipper dredges working a total of 11V days.
SPECIAL MAINTENANCE PROJECTS
Project no. 1.-This project consists of deepening the Pacific
entrance channel from Miraflores Locks to the sea buoys and including
the Balboa inner harbor from -45 to a ruling depth of -50 feet
(mean sea-level datum). It was begun in the harbor in July 1924.
The total excavation for the year on project no. 1, Pacific entrance,
was 75,000 cubic yards. The total excavation to date on this project
is 9,774,800 cubic yards, of which 2,976,350 cubic yards are antici-
pated fill. There was no dredging on project no. 1, Balboa Harbor,
during the year. At the end of the fiscal year excavation on the
Pacific entrance portion of this project was 91.6 percent completed
and the harbor 93.9 percent completed. Excavation for the entire
project was 92.0 percent completed.
Project no. 5 (revised).-This project, which consists in widening the
Canal to the westward of Gaillard Cut, was started in December 1930,
and completed during November 1936. Total excavation for the year
on the project was 142,050 cubic yards, bringing the total yardage for
the completed project to 1,074,300 cubic yards. Following completion
of the excavation on this project, the entire channel was gang-dragged
before being opened to navigation on November 25. As a consequence
of the completion of this project the Canal axis of the Paraiso Reach
was shifted to the westward in order to secure a more equal division
of navigating area, respectively, for north- and south-bound shipping.
Project no. 6.-This project, involving the widening of Miraflores
Lake channel, was started in April 1932 and completed during April
1937. The total excavation for the year on this project was 1,055,250
cubic yards, of which 379,000 cubic yards were anticipated fill bringing
the total yardage for the completed project to 2,302,000 cubic yards,
of which 502,000 cubic yards were anticipated fill. Following com-
pletion of excavation on this project, the entire new channel was gang-
dragged, prism line buoys were moved to their respective positions
on the new prism lines, and the project opened to navigation on
April 21. The completion of this project results in establishing a new
Canal axis, extending in a single tangent from the south end of the
Pedro Miguel Locks guide wall to the north end of the Miraflores
Locks guide wall.
Project no. 11.-This project, which consists of removing various
shoal areas in the outer portions of Cristobal Harbor, as described in





REPORT OF GOVERNOR OF THE PANAMA CANAL


detail in the annual report of 1935, was started in September 1934.
The total excavation for the fiscal year was 236,550 cubic yards, of
which 37,800 cubic yards were anticipated fill. The total excavation
to date on project no. 11 is 396,150 cubic yards, of which 37,800 cubic
yards are anticipated fill. Excavation was 53.8 percent completed at
the end of the fiscal year.
Project no. 12.-Cristobal Inner Harbor: This project calls for the
removal of the 18-foot shoal to the west of the coaling station and
near the Canal channel to a depth of 25 feet mean sea level, which is
the prevailing depth in this vicinity. The removal of this shoal will
open this portion of the harbor to navigation for shallow draft vessels
leaving the harbor south-bound or entering the harbor north-bound.
Dredging on this project was inaugurated on May 27, 1937. The total
excavation to date is 5,400 cubic yards of which 1,500 cubic yards
were anticipated fill. Excavation on this project was 9.7 percent
completed at the end of the fiscal year.
Project no. 13, Gaillard Cut.-This project, which consists in widen-
ing Culebra Reach by 200 feet to the westward, as described in detail
in the annual report of 1935, was started in January 1935. The total
excavation for the fiscal year was 763,550 cubic yards of which 628,950
cubic yards were sluiced material. The total excavation to date on
this project is 1,398,050 cubic yards. At the end,of the fiscal year the
excavation was 17.8 percent completed.
SLIDES
The total excavation from slides in Gaillard Cut during the fiscal
year amounted to 752,000 cubic yards. Culebra Slide (west) showed
movements of a threatening character on five different occasions dur-
ing the year, respectively, in the months of October, January, Feb-
ruary, March, and May. The combined movement of this slide,
although spread over a period of several months, was equivalent to a
major slide occurrence and necessitated practically constant dredging
operations from January 14 to the end of the year. The first precip-
itous movement, that of January 13 and 14, resulted in filling practi-
cally the entire 100-foot slide basin completed under project no. 9.
Had there been no basin to take care of the slide, the Canal channel
would have been blocked. As it was, only slight shoaling occurred,
which extended from 25 to 45 feet into the Canal. This slide basin
has now been practically restored to its project width and depth.
There was no interference to shipping on account of slides during
the year.








40 REPORT OF GOVERNOR OF THE PANAMA CANAL


Details of the excavation from slides during 1937, together with

the total material excavated from June 30, 1913, to the end of the

past fiscal year, are presented in the following table:


Haut Obispo slide (east)------------
Buena Vista slide (west)-------------
Buena Vista slide (east)-------------
Casoadas slide (east).- --------------...........
White House slide (east) ----------
White House slide (west) ---------
Powder House slide (east)-----------
La Pita slide (east)--------------
La Pita slide (west) -------------
Empire slide (east) -----------------
Division Office slide (west) --------
Empire slide (west) --------------
Lirio slide (east)----- ------------
Lirio slide (west)------------------
Barge Repair slide (east)--- -------
Culebra slide extension (east)--------
Culebra slide (west)... ........---------------.
Culebra slide (east) -----------
Cucarac'a slide (east) ------------
Contractors Hill slide (north)-------
Contractors Hill slide (south)- -----
Oucaracha Signal Station slide.-------
Cucaracha slide (west) ------------
Cucaracha Village slide -------
Paraiko slide (east) ------------------
Cartagena slide........................

Total--------------------


Fiscal year 1937


Earth


Cubic
yards

1,500

900







I". 550"



160.,900
17,900








187, 150
----------

..........

1. 550
..........
..........
160. 900
17, 900
..........
..........
.. . . .

. . . .
..........
..........
4, 400

187, 150


Rock


Cubic
yards
------.----
1,500
----------
3,100
----------



----,"-66"
----------







512, 750
33, 750





"""9."450"
564, 300
.. ... ... ..
512, 750
33, 750
.... .... ..
. ... ......
.... ......
..........
.... ......
.... .... ..
9, 450

b64, S50


Total


Cubic
yards

3,000
-----.----
4,000



----,"---"







673."650"
51,.050






1.3. i.i'0

752,000
..-...-...
. ... -...
.......-..




.. ........
....... ...

673, 650
5 1: t50

..........
..........


..........
13,851)

752, 000


Total to date


Earth


Cubic
yards
6, 700
7,000
12,100
9,250
26, 650
21,000
104,650
12,300
4, 550
34,050
4,150
----..-----
83.850
570, 450
208,750
422, 150
1.630.400
2.691,950
2,492.950
13, S00
7.900
35, 500
56,250
33.4610
1,950
60, 800

8,552,500


Rock


Cubic
yards
5,500
1,500
17,550
49,900
41,050
100,550
312, 150
96, 700
42,900
228,050
19,450

161.300
1,987,750
474,850
976, 200
10,.014.450
17.977, 650
6,851,400
139,600
31,600
204,600
12.3.800
77,400
7. 250
255, 150


40,198,300 4 750,800


Numerous small bank breaks and surface movements occurred at.

various unlisted points throughout Gaillard Cut during the year.

Daily inspections and reports were made of all portions of active slide

areas fronting the Canal as well as a periodical inspection of the entire-

surface of all slides. Monthly observations were taken of reference

points on East and West Culebra, Lirio, Cucaracha, and Cartagena

slides.
AUXILIARY DREDGING


The crane boat Atlas, operating as a drag suction dredge, worked

2 days on auxiliary dredging, removing 2,000 cubic yards of silt from

in front of the Balboa dry dock gates for the account of the mechanical

division.

SUBSIDIARY DREDGING DIVISION ACTIVITIES


The Chagres River gravel pIlant at Gamnboa shipped 57,157 cubic

yards of sand and gravel during the year, leaving a balance on hand

July 1, 1937, of 92,225 cubic yards. The crane boat Atlas made

seven trips to Cham6, dredging a total of 6,775 cubic yards of sand,

which was transported in barges to Balboa and delivered alongside

dock no. 7 for the supply department.


Total


Cukic
yards
12, 200.
8.500
20, 650
59.150
67, 700
121,550
416,800.
109,000-
47,450-
262,100
23,600*
..--------.-
245. 150
2,559, 200
683,600
1,.398,350
1,644,.850
20. '69, 600
9,344,350
153,.400
39,500
240, 100
180.050
110,800
9.200
315.950





REPORT OF GOVERNOR OF THE PANAMA CANAL


The work of removing floating obstructions and water hyacinths in
Gaillard Cut and Miraflores and Gatun Lakes was continued during
the year. The Canal and adjacent waters through Gaillard Cut,
Miraflores Lake and Gatun Lake (including all dump areas) were
patrolled and the growth of hyacinths kept under control. Log
booms at the mouths of the Chagres and Mendingo Rivers were main-
tained to prevent hyacinths, logs, floating islands and other obstruc-
tions from entering the Canal channels during freshets or spilling at
Madden Dam. The new trash-handling plant was operated for 15
days during December and 6 days in February, removing an esti-
mated total of 170 cords of driftwood and debris. It is estimated
that 46 cords of driftwood and trash were picked up during the year
by hand through Gaillard Cut and along the Canal chliannel in Gatun
Lake, stored in scattered piles along the banks and burned during the
dry season.
A weed-burning equipment, mounted on a small barge, was placed
in service in September and used continuously for the remainder of
the year. This equipment was especially designed for the extermina-
tion of hyacinths together with the heavy growth of grass in shallow
water along the banks where the use of the spraying equipment was
found uneconomical because of the comparative sparsity of hyacinth
growth in such areas. The use of this equipment has also proven a
decided asset as a sanitary medium for eradicating mosquito breeding
areas along the banks of the lake adjacent to the new Gamboa town
site.
The number of hyacinth plants destroyed during the year by pulling,
spraying, and burning was estimated at 23,972,000. A copper sul-
phate solution was employed throughout the year for all routine
spraying operations in connection with extermination of hyacinths.
Repairs to both east and west breakwaters at the Atlantic entrance
were continued and a total of 432 concrete blocks was placed along
the low areas of these breakwaters during the year. The 130 newly
manufactured concrete blocks at the Gamboa gravel plant were
transported to Cristobal, 28 being placed on the breakwaters and 102
in storage on the Cristobal mole.

EQUIPMENT

The following dredges and other floating equipment were in oper-
ation during the year: Three 15-yard dipper dredges, Cascadas,
Gamboa, and Paraiso, were operated 8.75 months, 10.63 months, and
4.10 months, respectively. The 24-inch pipeline suction dredge
Las Cruces was operated for 11.14 months during the year. The
crane boat Atlas was operated for 0.60 month in dredging on general
maintenance work; in addition it made seven trips to Cham6 for sand
23094-37-----4





REPORT OF GOVERNOR OF THE PANAMA CANAL


and with the exception of a total of 1.47 months in reserve or under
repairs, spent the remainder of the fiscal year in miscellaneous services
of transportation, towing, rigging, and salvaging. Derrick barge
No. 157 was in service for 1.20 months placing concrete blocks on
the east and west breakwaters at Cristobal; hydraulic grader No. 4
operated at project 13, Gaillard Cut, for 11 months and 1 month
under repairs. The drillboat Terrier No. 2 was in continuous service
during the year, with the exception of 0.7 month undergoing general
repairs and 31 days out of service on account of boiler-washing oper-
ations. Air compressor No. 29 was in service for 11 months during the
year. Excavator No. 1 was in active service for 2.37 months during the
year, engaged in grading work for the municipal engineering division
at Gamnboa and handling gravel; excavator No. 2 was in active
service for 3.37 months. The 250-ton floating cranes Ajax and
Hercules were operated on alternate months except when calls for
extra service required the commissioning of both cranes. The three
large tugs, Trinidad, Chagres, and Mariner, together with the three
small tugs Indio, Bohio, and Siri, were operated in towing and trans-
portation service during the year, there being one tug out of com-
mission continuously for the purpose of repairs. Eight launches were
in service during the first 7 months of the year and nine following the
commissioning of the Ray and Shark and the retiring of the Azimuth
during February. The Diesel ferryboats President Roonsevelt and
President Amador were in service in connection with the operation
of the Thatcher Highway ferry service at Balboa for 204 and 194
days, respectively, during the year.

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 on a continuous 24-hour basis throughout the year.
The ferries made a total of 30,395 single trips during the year. They
carried 8,697 Panama Canal vehicles, 25,944 for the United States
Army, and 281,466 other vehicles, a total of 316,107, as compared
with 238,799 during the previous fiscal year. Passengers carried
totaled 1,581,400 as compared with 1,404,202 during the previous
fiscal year.

DREDGING DIVISION HEADQUARTERS AND SHOPS
During the past fiscal year the headquarters and shops of the
dredging division were moved from Paraiso to Gamboa. The shop
and office buildings, wharves, etc., formerly used to house this division
had deteriorated to the extent that their replacement was necessary.






REPORT OF GOVERNOR OF THE PANAMA CANAL


Instead of rebuilding these structures at Paraiso, the headquarters
of this division were moved to Gamboa, which is north of Gaillard
Cut and hence would be accessible to dumping areas in Gatun Lake
in case the Canal channel were ever to be blocked by a major slide.
Municipal and other construction work in connection with the
development of the new town site at Gamboa are discussed in other
sections of this report.

MARINE ACTIVITIES

AIDS TO NAVIGATION

The maintenance of navigation aids in the Canal and adjacent
waters was continued by the lighthouse subdivision. Of the total of
688 aids maintained during this fiscal year, 290 are electric, 137 gas,
and 261 unlighted; this is an increase of 4 electric aids and a decrease
of 7 gas and 4 unlighted aids during the year. Two visits were made
during the year by the lighthouse tender Favorite to the Department
of Commerce lighthouses at Morro Puercos and Jicarita Island under
existing agreement whereby the Panama Canal attends to the main-
tenance of these lights.

ACCIDENTS TO SHIPPING

The board of local inspectors investigated and reported on 39
accidents to shipping in Canal Zone waters during the fiscal year
1937, a summary of which follows with a comparison of accidents
in the 2 previous years:

1935 1936 1937 1935 1936 1937

Struck lock walls.-------------- 3 9 14 Sinking after springing alpak----...--.------ 1
Struck docks..----------------.... 5 3 7 Damaged by fire while fueling ------- ------ 1
Struck Canal bank---------...........--- 4 ---- 4 Damaged by broken oil hose
Damaged by tugs which were while fueling----...----------- -..-- ------ 1
assisting vessel------------ ---.. --- 1 3 Line fouled propeller.---------- 4 3 ----
Struck by another vessel while Damage to submerged cable-.. -* 2 1 --.
secured to dock-------------------- ------ 2 Hit submerged object---------- 1 2 ......
Ships struck and damaged Grounded-------------------- 2 1 -...-
buoys---------------------- ------2 2 Others in previous years------- 7 3 ----
Broke chocks while in locks---------- 2 2 --
Struck lock fender chain---.--- ------ ------1 Total-----------. -----28 28 39
Sinking after collision-----.----.. ------1 1


The following figures show the approximate damages sustained by
commercial ships in Canal Zone waters during the past 3 fiscal years:

1935 1936 1937

Fault of Panama Canal.--------... --..--.----......-.--.- $1,434 $8, 265 $3,148
Not fault of Panama Canal----------------..------..-....---....------------1 24,106 1 23,691 125.139
Total damages...------------------------.............---------------------...... 25,540 31,956 28.287

1 Estimated.





REPORT OF? GOVERNOR OF THE PANAMA CANAL


Figures showing damages which were adjudged to have been the
fault of the Panama Canal represent actual payments made during the
fiscal years, and hence might not coincide with the years in which the
accidents occurred.
SALVAGE AND TOWING
Panama Canal equipment and personnel rendered assistance to dis-
abled and distressed shipping during the year as follows:
Steamship "Timber Rush."-The U. S. S. Favorite was dispatched
from Bollboa on November 5, 1936, to the assistance of the steamship
Timber Rush disabled at sea. The Favorite took the Timber Rush
in tow in latitude 1209' north, longitude 88048' west, and returned to
Balboa, arriving on November 15, 1936.
Steamship "Nellie."-While en route through Gaillard Cut on De-
cember 9, 1936, the steering gear of the Greek steamship Nellie was
disabled, resulting in that vessel striking the Canal bank with such
force as to cause serious damage to its hull. The vessel was taken to
the dredging division dock at Gamboa, but was leaking so badly that,
to prevent its sinking alongside, it was towed across the Canal and
beached. The U. S. S. Favorite was engaged in salvage operations on
the Nellie for 2 days.
Steamship "Buenos Aires."-The U. S. S. Favorite was engaged in
salvage operations on the steamship Buenos Aires, of the Johnson
Line, from January 12 to January 23, 1937. The Buenos Aires was
ashore on the coast of El Salvador about 25 miles south of La Liber-
tad. Salvage operations were successful; the stranded vessel was
refloated and proceeded on its way under its own power up the coast
to California.
Auxiliary sloop "Frank."-On March 2, 1937, the auxiliary sloop
Frank went ashore in Gaillard Cut due to a steering gear break-down.
The U. S. S. Favorite, which happened to be at Gamboa awaiting a
tourist party proceeded to the scene of the accident and pulled the
stranded vessel clear of the bank. The Frank then proceeded through
the Canal under its own power.
Steamship "Strombo."-The steamship Strombo en route through the
Canal on May 22, 1937, developed steering gear trouble and was
towed from Gatun Locks to the lake anchorage by the U. S. S.
Favorite. The following day the Favorite towed this vessel to Pedro
Miguel Locks where the tow was taken over by the tugs of the port
captain, Balboa.
Steamship "Bennekom."-On June 20, 1937 while lying to off South
Fraile Lighthouse, the U. S. S. Favorite received orders to proceed to.
the assistance of the Royal Netherlands steamship Bennekom ashore
on Negrillas Rocks, coast of Colombia, near Buenaventura. The
Favorite conducted salvage operations on the stranded vessel until


44





*REPORT OF GOVERNOR OF THE PANAMA "CANAL 45

June 24, when the Merritt-Chapman-Lindsay tug Killerig arrived and
took over. The Favorite then assisted the Killerig until the Bennekom
was refloated and towed to Balboa, arriving the afternoon of July 2,
1937.
Steamship "West Camargo."-The tug U. S. S. Tarernilla left
Cristobal on June 24, 1937 to assist the steamship West Carmargo in
distress, returning to Cristobal with the West Camargo in tow on
June 25, 1937.

MfETEOROLOGY-HYDROLOGY--SEISMOLOGY .

Precipitation.-Rainfall for the calendar year 1936 averaged in
general below the normal. February was the month of least rainfall
and October of greatest rainfall. Annual totals for the Canal Zone and
vicinity for the calendar year 1936 ranged from 58.62 inches at Balboa
Heights to 118.04 inches at Porto Bello. The ma ximum precipitation
in 24 consecutive hours in the Canal Zone and vicinity during the
year was 7.22 inches at Candelaria on November 26 and 27. The
average precipitation in the Pacific section was 63.16 inches; in the
central section 89.01 inches; and in the Atlantic section 114.69 inches.
Air temperature.-The maximum and minimum temperatures of
record at various stations, revised to June 30, 1937, and the annual
average temperature for years of record, are shown in the tabulation
following:

Maximum Minimum
Station Annual Years of
Station average record
OF. Date OF. Date

MBalboa Heights..-------------.............--..--- ---- 97 Apr. 7,1912 63 Jan. 27,1910 78.7 31
Feb. 4,1924
Madden Dam.---.----.---------------- 98 Apr. 13,1920 59 Jan. 30,1929 78.4 26
May 4,1933
Gatun..............---------..---..................--------------- 95 May 21,1925 66 Aug. 7,1912 180.4 26
Oct. 18,1924
Cristobal----..--.............----------------..........---- 95 May 26,1925 66 Dec. 3,1909 80.0 29

I Mean of maximum and minimum temperatures. Other means from bihourly values.

The average air temperature for the calendar year 1936 was slightly
above normal. April was the warmest month and October the coolest.
Winds and humidity.-The annual wind movement in the Canal
Zone for the calendar year 1936 was in general below normal. April
was the month of greatest average wind velocity and July the month
of the lowest. The mean relative humidity of the atmosphere for the
calendar year 1936 was 82 percent on the Pacific coast and 81 percent
on the Atlantic. March was the month of least average relative
humidity and October the greatest.
Tides.-For the calendar year 1936 the maximum high tide at
Balboa, 10.6 feet above mean sea level, occurred on October 3; the





REPORT OF GOVERNOR OF THE PANAMA CANAL


maximum low tide, 11.1 feet below mean sea level, occurred on March
24. The greatest daily range, 21.3 feet, occurred on October 3. At
Cristobal the maximum high tide, 1.41 feet above mean sea level,
occurred on December 1; the maximum low tide, 1.12 feet below mean
sea level, occurred on March 29, and the greatest daily range, 1.99
feet, occurred on November 27.
Seismology.-One hundred and eighty-four seismic disturbances
were recorded at the Balboa Heights seismological station during the
calendar year 1936. Sixty-seven of these disturbances were of com-
paratively close origin (about 250 miles distant, or less), eight of
which were generally felt in the Canal Zone and in the Republic of
Panama. Twelve were of distant origin, and 105 were so slight that
no estimate could be made of the distance of their epicenter.
One hundred and thirty-six seismic disturbances were recorded
during the 6-month period, January to June, inclusive,. 1937. None
of these tremors was of any conitseqience locally. '










SECTION II


BUSINESS OPERATIONS
The business enterprises carried forward by the Panama 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 busi-
ness enterprises include those sections of the Canal and railroad
organizations which are engaged in the supplying of fuel, provisions,
ship chandlery,, and. repairs to vessels; the sale of foods, 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 are separate organizations, but the
administration of both organizations is vested in the Governor of
the Panama Canal, who is also president of the Panama Railroad Co.
PANAMA CANAL BUSINESS OPERATIONS
Business operations of the Panama Canal are conducted separately
from operating activities pertaining directly to the transiting of ves-
sels, and government of the Canal Zone. The annual appropriation
acts for the Panama Canal authorize the use of moneys arising from
the conduct of auxiliary business activities with the proviso that any
net profit derived from such business activities be covered annually
into the Treasury of the United States.
It is the aim to operate the business activities as a whole on a self-
supporting basis and to include as a proper charge against business
operations a fixed capital charge (with some minor variations) of 3
percent for interest on the investment. In the accounting of profits
to be covered into the Treasury, the amount representing charges
for interest on investment is a part of the net profits covered into the
Treasury and in effect is a reimbursement to the United States
Treasury for interest paid by it to holders of United States bonds.
The investment in business activities totaled $30,427,202.61 at the
beginning of the fiscal year, and $30,806,850.84 at the end (tables 4
and 5, sec. V). The capital charge for the fiscal year 1937 was
$840,849.30 (table 20, sec. V). The profits-of $917,360.14- exceeded-
this amount by $76,540.75.






REPORT OF GOVERNOR OF THE PANAMA CANAL


MfECHANICAL DIVISION

The mechanical division has jurisdiction over the mechanical and
marine shops, drydocks, car shops, and roundhouses at Balboa and
Cristobal; the design, construction, and major alteration of hulls and
machinery of floating equipment of the Panama Canal, Panama Rail-
road, and commercial business, except the electrical work; the design
and technical matters of the railway rolling stock and of floating craft
involving naval architectural subjects for the hulls and marine
engineering subjects for the operating machinery; repairs to all equip-
ment, floating and otherwise, of the Canal, railroad, and commercial
business (including merchant shipping) requiring mechanical or marine
shop or dry dock facilities, except electrical and automotive repairs;
railway-car inspection, including repair of rolling stock, hostling, and
manning the railway wrecking outfit; the maintenance of inspection
services, including tests and repairs (except electrical and marine
boilers) for the Canal and railroad, for passenger and freight elevators,
for weighing scales and measuring devices (scales, pumps, and meters),
and for clocks, typewriters, and similar instruments; manufacture
and distribution of compressed air, acetylene, oxygen, and hydrogen;
and the fabrication of such machinery or equipment, floating and
otherwise, spare parts, etc., as in the opinion of the Governor may be
more economically or expediently made on the Canal Zone than
purchased elsewhere.
FiNANCIAL

The origin and class of work done by the mechanical division in the
fiscal year 1937 and in the previous fiscal year are shown in the follow-
ing table:
Gross revenue-class and source

Fiscal year

Percent Percent
1936 of total 19 of total

Class:
M arine................................................. $2,055,018 65.6 $1,955,172 62.4
Railroad---------------------.--------------------- 395,972 12.6 466,684 14.9
Fabricated stock- --------------.------------------ 248,951 8.0 349,557 11.2
Sundries.--..---------------.----------------------- 433,277 13.8 361,389 11.5
Total......----------------------------------------.... ..... 3,133,218 100.0 3, 132,802 100.0
Origin:
Panama Canal......................................... 1,686,909 53.8 1,525,929 48.7
Pananima Railroad...................................... 412,635 13.2 478.992 15.3
Other United States Departments------....---...--.--------- 389,846 12.4 537.336 17. 2
Outside intcre-.s ........ .......................... ... 843. 828 20.6 O. 0545 18. 8
Total--..--------------.------------------------ 3,133,218 100.0 3, 132,802 100.0


The gross expenses of the mechanical division for the fiscal year 1937
amounted to $3,081,921 which left a net revenue from operations of
$50,8S1.





REPORT OF GOVERNOR OF THE PANAMA CANAL


The marine work listed above included new construction of vessels
for the Canal, overhaul of vessels for the Canal, the United States
Navy, and other departments of the United States Government as
well as merchant ship repairs.
Referring to the above tabulation of the origin of revenue, it may
be noted that the work for other Government departments, which in
1936 was 12.4 percent of the gross revenue, has increased to 17.2
percent for the fiscal year 1937. The recovery in this factor over 1936
is due to increased repair work on Navy submarines at the Cristobal
shops. However, the general trend of work for the mechanical divi-
sion appears to be stationary and approximately the same volume of
work is expected in the forthcoming fiscal year as was performed in
each of the past 2 years.
DRYDOCKS
During the year 146 drydockings were made at the Balboa and the
Cristobal drydocks, further details of which are given in the table
below:

V oBalbo Cristobal
Vessels belonging to- drydock drydock

Panama Canal Divisions...........................................------..--.........- 23 3
U. S. Nav y..--------------------------------------------------------------- 2 27
U. S. Army -------------------------- --------------------------- --------- 2 9
Other Departments of the IT. S. Government.---------------.............---------------------. 0 2
Panama Railroad Co........ .... ... -- .... ..------...-.........-..--.......... -------1 1
Outside interests...------------..............--..----- ..--------------------- ----------------- 39 37
Total--------- ----------- ------------------------------ -------------- 67 79

The Balboa drydock was unoccupied 32 days of the year (of which
19 were working days) while the Cristobal drydock was unoccupied
96 days (of which only 39 were working days). Last year the Balboa
drydock was unoccupied 18 days and the Cristobal drydock 86 days.
MARINE REPAIR WORK
Repairs to commercial vessels consisted principally of urgent
voyage repairs to vessels transiting the Canal or to small craft operat-
ing between the Canal ports and nearby ports in Central and South
America. Quite a number were of a nature that required the vessel
to be placed in drydock, such as a damaged propeller or a broken tail
shaft. While the individual repairs as a rule were not large, the
number of vessels and repeat vessels was considerable, and the
revenue amounted to quite a sum in the aggregate.
Repairs to vessels of the United States Army were limited to emer-
gency repairs to Army transports and to Army craft based in local
waters. Likewise, for the greater part, repairs to vessels of the
United States Navy were confined to vessels of the Special Service
Squadron and to the craft attached to the Submarine Base at Coco
Solo.





REPORT OF GOVERNOR OF THE PANAMA CANAL


Marine repair work performed for foreign governments included
principally the drydocking and general overhaul of several transports,
destroyers, submarines, and gunboats for the Colombian, Peruvian,
and Mexican Governments.
The keel of the Diesel-electric tug Gatun for the dredging division
was laid February 17, 1937, and the tug was launched on May 11,
1937. The approximate cost will be $430,000, of which $175,000 will
be required for machinery. It is anticipated that the t.g will be com-
pleted and turned over to the dredging division by November 1, 1937.
Erection of a hull for the 1,000-yard dump scow No. 126 for the
dredging division began on May 4, 1936. Its length is 160 feet
(molded), depth 13 feet 6 inches (molded), draft 11 feet (estimated);
and dump hopper capacity, 1,000 cubic yards. It was launched
October 2, 1936 and delivered to the dredging division in December
1936.
As facilities were available throughout the year, a number of the
units of the dredging and other floating equipment were drydocked
and overhauled.
WoRK OTHER THAN MARINE WORK
The usual amount of light and heavy repairs was afforded locomrno-
tives. In addition, the Balboa roundhouse overhauled locomotives
on a commercial basis for the United States Army and for the marine
shops of the mechanical div ision. A new motor car was received early
in the fiscal year by purchase from the United States and placed in
service with very satisfactory results. Scrapping of surplus freight
cars of the Panama Railroad Co. was continued
The manufacture of repair parts in a large and diverse quantity
for use in the Pacific locks during the 1937 overhaul was carried out
to a total value of about $75,000. A great deal of millwork, including
sash and doors, was manufactured for use in the construction of new
quarters and public buildings at the various Canal villages, particu-
larly at the Gamboa town site. The walk on the Gamboa Bridge was
widened into a vehicular driveway with steel fabricated during the
previous fiscal year. The 300-foot radio towers at the Balboa radio
station were taken down for the Navy. The manufacture of 190
cast-iron keel blocks for the Balboa drydock was completed. The
caisson used for unwatering the upstream face of the locks gates and
the gates to the drydock at the Balboa shops was overhauled in the
drydock in preparation for its use at the 1937 locks overhaul. This
overhaul was an extensive one and included renewal of all of the main
valves of the caisson.
During the fiscal year 1935 work was started on a new towing
locomotive for the locks division, but very little was accomplished by
the end of that fiscal year, since this order had been given the mechan-





IE'POIRT OF GOVERNOR OF THE PANAMA CANAL


ical division as a stand-by job to tide over during slack periods of
work. On June 30, 1937, it was estimated to be 95 percent complete.
Completion is estimated for August.31, 1937.
PLANT IMPROVEMENTS
For safety reasons, a new oxy-acetylene plant has been built, at a
distant location within the Balboa, shops area and the original plant
has been abandoned. The new plant is intended to be of approxi-
mately double the capacity of the old, this capacity being secured
partly by the purchase and installation of new equipment and partly
by reconditioning, or altering and reinstalling the machinery from the
old Ilant. On June 28, 1937, routine continuous commercial produc-
tion of all three gases (oxygen, acetylene, and hydrogen) began in the
new plant, and on June 30 use of the old plant was definitely abandoned.
Numerous breaks again occurred during the year in the track rail
for the 50-ton drydock crane at the Balboa drydock. Short sections
of new rail have been introduced in making repairs so as to span the
broken section and the support was carried solidly down.
A motor-generator set affording 800 amperes of direct current at
110 volts was moved from the hydroelectric station at Gatun and
installed in the Cristobal shops power plant. It was acquired to give
full battery charging facilities to Navy submarines while in the
Cristobal drydock.

ELECTRICAL INSTALLATION AND REPAIR WORK

The principal activities of the electrical division are as follows:
The operation and maintenance of the hydroelectric and Diesel-electric
generating stations, transformer substations, transmission lines and
power distribution lines, which constitute the power system; the opera-
tion and maintenance of telephones, telegraph, electric clock, fire
alarm and railway signal systems; the operation and maintenance of
Gatun spillway and Madden Dam; and the installation and mainte-
nance of such electrical equipment as is required by other divisions of
the Canal or other departments of the Government, and by such
commercial and other vessels as may require electrical work while
transiting or calling at the Canal. The total expenditure of the elec-
trical division for the year was $1,224,751.95, which included $553,-
767.72 for maintenance and operation of the power system; $510,327.80
for construction and maintenance of electric work section; $122,642.01
for the maintenance and operation of the telephone section; and
$38,014.42 for the maintenance and operation of the railway signal
section.'
The underground distribution system for Gamboa town site was
extended to serve the light, power, and telephone requirements of the
1937 building. .program. This expansion consisted of constructing





REPORT OF GOVERNOR OF THE PANAMA CANAL


underground duct lines, manholes, and transformer houses, and in-
stalling cables, transformers, and switching equipment therein.
Street lighting and fire-protection systems for the Gamboa town site
were niso installed and placed in operation.
In order to meet the demand for additional load and to improve the
reliability of the service, a new distribution feeder was installed be-
tween the Gatun hydroelectric station and Fort Sherman, and a new
outdoor transformer substation was constructed within the post.
A total of 494 jobs was completed in the marine electric shops for
Government, commercial, and other vessels which called at the ter-
minal ports or transited the Canal.
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 161 ranges of the two-burner type, 1,983 of the four-
burner type, and 15 of the six-burner type. As an indication of the
increasing consumption of electric current by employees of the Panama
Canal and Panama Railroad Co., it is interesting to note the increase
in annual revenue received from employees for several years, as
shown in the following table:
Fiscal year: Revenue received
1929--------------------------------------- $67,899.67
1934------------------------------------- 138,213.07
1935--------------------------------------- 149,601.48
1936--------------------------------------- 165,592.42
1937--------------------------------------- 180,346.97
In the armature shop at Balboa, 582 items of work were completed,
the majority of which were for departments and divisions of the
Panam:i Canal and Panama Railroad. The district wiremen ac-
counted for a total of 19,478 trouble calls during the year.
The handling of the electrical installation and repair work required
the issuing of a total of 5,431 work orders with attendant reports,
accounting, estimates, and miscellaneous correspondence, as compared
with 5,491 work orders for the previous year.

PURCHASES AND INSPECTIONS IN 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,
rpedical section, New York general depot, United States Army,
Brooklyn, N. Y., purchases the principal medical and hospital sup-
plies used on the Ist.lu-.us. In addition, the assistant purchasing
agents at New York and San Francisco and the assistant freight-
traffic manager at New Orleans of the United Fruit Co., have acted
as receiving and forwarding agents for material and supplies delivered
at and through their respective ports for transshipment to the Isthmus.





REPORT OF GOVERNOR OF THE PANAMA CANAL 53

The preliminary inspection of materials in the United States cover-
ing purchases, the delivery of which is required on the Isthmus
(which constitutes the large majority of purchases), and final inspection
of materials delivered in the United States are made by the force of
inspectors in the field under the supervision of the inspecting engineer
at Washington, assisted by the officers of the Corps of Engineers,
United States Army; the Bureau of Standards; the Bureau of Mines;
the Bureau of Chemistry, Department of Agriculture; the Medical
Department, United States Army; the Bureau of Construction and
Repair and the Bureau of Engineering, Navy Department.
The volume of purchases made through the Washington office of
the Panama Canal is indicated by the summary following:

Fiscal year Fiscal year Fiscal year
1935 1j3I 1937

Number of purchase orders placed--------------------------- 8, 104 S. 207 1 9,004
Value of orders placed-------..------------. --------------- $4,215,332 $4,3-44, 429 $4,912,582
Aggregate of purchases since 104 made through Washinaton
office--... .-----..-..------------.------......- ----------------- $224,675,613 $229,020,042 $233,932,624
Number of disbursement vouchers prepared ------------------ 10,853 11,.528 11,911
Value of above vouchers----------------- --------------- $4,390,388 $4,926,424 $5,254,771
Number of collection vouchers prepared----..------------------ 304 321 318
Valueof abovevouchers---------------------------------- $204,224 $159,632 t238.075
Cash discounts taken ------------------------------------- $30,388 $35,978 542.076
Realized from sales of surplus material------------------------ $3 $23,632 $123,925

I Largest number of orders placed during any fiscal year since 1904, when construction work on the Canal
was begun.
STOREHOUSES AND SHIP CHANDLERY

In addition to its main function of requisitioning, storing, and
issuing general supplies for the Canal and railroad (exclusive of the
merchandising operation of the commissary division) the Canal Zone
storehouses handled ships' chandlery as well as sales of other supplies
to the United States Army and United States Navy. The following
statistics cover the more important operative features of the store-
house during the past 2 years:

1936 1937

Gross revenues-sales and issues................................................. $5503.196 $5,647,417
Cost of material, plus operating expenses.......---------------------------------............ 5,418,257 5,575.321
Net revenues.............................................................. ----------------------------------------------------84.939 72,096
Inventory as of June 30.......................................................... ----------------------------------------------$4,200, 154 $4.508,566
Scrap and obsolete stock on hand, June 30----------------------------------....................................... $31,.504 $24,826
Number of steamship sales..--..-------------..-----------....----..-----..------------................. 1.830 1,922
Steamship sales value-...------.....----...----.----..-----------------------------.............................-- $46,184 $49,904
Scrap metal sold in local market-..-..-------.-.--.. -----------....-------...tons.. 134 342
Scrap metal sold for export.-..--..--.----...-------. --------------------....do.... 1,129 6,026


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 $626,121.56.
Replacements were made as necessary.






54 REPORT OF GOVERNOR OF THE PANAMA CANAL

FUEL OIL, DIESEL OIL, GASOLINE, AND KEROSENE

All deliveries of the products listed above 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 following table summarizes the operation of the fuel oil handling
plants for the past. 2 years:

Fiscal year

1936 1937

Fuel and Diesel oil: Barrels Barrels
Handled at Mount Hope (Atlantic side)- ------------------------------- 4,678, 830 4,688,168
Handled at Balboa (Pacific side).-------------- ---------------------- 5,389,712 4,344,893
Total---------------.---....----......------------------------------- ............................ 10,068,542 9,033,061
Received by the Panama Canal -------.------------------------------- 424,323 424,126
Used by the Panama Canal---------------- ---------------------------- 424,672 223,625.
Sold by the Panama Canal------------------------------------------- 6,945 147,891
MNiscellaneous transfers on tank farm-.--------------------.. ----.---------- 39,884 17,094
Pumped for outside interests-------------.- --------------------------- 9,172,718 S, 220, 325
Total barrels handled------------------ -------------------------- 10,068,542 9,033.061
Number of ships discharging or receiving fuel or Diesel oil:
Panama Canal craft---- ---------------------------------------------------- 74 9Q>
All others---- ----------------------------------------------------- 1,674 1,929
Total -------------------------------- ---------------------------- 1,748 2,019
Gasoline and kerosene:
Bulk gasoline received--------------------------- --------..---- gallons-- 4,055,143 3,394,833
Bulk kerosene received------------. -----------------------------.do -- 970,001 606,895
Financial results of operations:
Total revenues..----------. ----------------------------------------- $828,908 $757.567
Total expenditures------------------------------------------------- 649.221 627,716
Net revenues-....---------------------------------------------------- 179,687 129, 851


BUILDING CONSTRUCTION AND MfAINTENANCE

The principal projects of building construction and repair work
completed during the year were as follows. The interiors were painted
on 74 gold family apartments at Cristobal and 92 gold family apart-
ments in Ancon and Balboa. The exterior and roofs of 16 garages in
Cristobal were painted. The Gatun substation was converted into
lock guard quarters. The following buildings were erected: Office
building for constructing quartermaster, Balboa; shed for the Cristobal
corral; and cow barn at Mindi dairy. In Gamboa the following
buildings were erected: Gasoline station; administration building for
dredging division; fire station; official family quarters for superintend-
ent, dredging division; silver elementary school; and family quarters
for silver clubhouse secretary.
Work on the following projects was under way at the close of the
fiscal year and will be completed under the 1937-38 building program.
The roofs of 74 gold family quarters at Balboa and of 28 silver family
quarters at La Boca are being painted. In Gamboa the following





IIREPORT OF GOVERNOR OF THE PANAMA CANAL


buildings are being erected: A gold and a silver motion-picture theater;
a gold commissary; a garage; and a new elementary school. Other
buildings being erected are as follows: Magistrate court building,
Balboa; police station, Gatun; auditorium for the Cristobal club-
house; nurses' quarters at Corozal; shop buildings for constructing
quartermaster, Pedro Miguel and Gatun; drydock storage shed,
Balboa; post office, Balboa; and garage and shop for the transporta-
tion division at Ancon.
TERMITES
The work of prevention of destruction to frame buildings by ter-
mites continued during the year. In the construction of all new
quarters of both gold and silver employees, metal plates are being
placed upon concrete columns which constitute the foundations of the
houses. These plates help to prevent the entry of termites into frame
buildings.
QUARTERS FOR EMPLOYEES

Gold employees.-No changes were made in the general regulations
governing the assignment and rental of quarters to American em-
ployees. The gold family quarters situation is slightly more acute
than last year, owing to an increase in the number of employees and
to a slightly higher proportion of married employees carried on the
pay rolls than formerly.
On June 30, 1937, there were 99 applications on file for original
assignment to gold family quarters, an increase of 24 over the previous
year. All of these applications were from permanent gold employees
of the Panama Canal or Panama Railroad Co. who were married and
hence entitled to quarters, but who could not be accommodated by
the present housing facilities in the Canal Zone.
Silver emnployees.-The operation of silver quarters was continued
on the same basis as in the previous years. The demand for quarters
from employees on the silver roll is still far in excess of the supply, as
there were 1,185 applicants on file in all districts. Over 50 percent
of the silver employees still reside in the cities of Colon and Panam a,
where rental rates are considerably higher than those charged by the
Canal for Government quarters.
It is believed that the present scale of rental charges on both gold
and silver quarters will be sufficient to cover depreciation as well as
all other costs of maintenance and operation once the old frame build-
ings are replaced by the newer types.

REPLACEMENT OF QUARTERS FOR AMERICAN EMPLOYEES
About 10 years ago cost records indicated that the expense of main-
taining the oldest frame quarters for American employees had reached
the point where replacement was the most economical procedure. A





REPORT OF GOVERNOR OF THE PANAMA CANAL


survey showed some of these old quarters were built by the French
Canal Co. and by the Panama Railroad Co. before the United States
acquired 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 con-
struction work. It was realized that their replacement would 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, 1927.
The first types of quarters designed and built for the permanent
force were of concrete. On account of the large first cost of concrete
buildings, designs were resorted to of concrete columns and first-floor
beams with wood frame structure above. After experience in the
construction and mn a in tana nee 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.
The quarters constructed in Gamboa during the fiscal year 1937
were 37 family apartments and 12 bachelors' apartments. There has
been authorized for construction at Gamboa during the fiscal year
1938, 52 family apartments. There remain to be provided in the
replacement program during the future years, 345 family apartments
and 620 bachelors' apartments or rooms.
The following table shows the number of apartments for American
employees' quarters which were to be replaced as of June 30, 1926, the
replacements by year up through 1938, and the balance remaining to
be replaced after the fiscal year 1938:







REPORT OF GOVERNOR OF THE PANAMA CANAL


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58 REPORT OF GOVERNOR OF THE PANAMA CANAL
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 years
1936 and 1937 contracts were entered into with outside contractors
for the erection of houses at Gatun, Gamboa, Ancon, and for an oil
and paint storehouse at Mount Hope.
It developed that construction under contract was no more eco-
nomical than work done by Canal construction forces at maintenance
rates of pay. Therefore, it is intended in the future to perform Panama
Canal and Panama Railroad construction with Canal forces.

MOTOR TRANSPORTATION
The transportation division is charged with the operation and
maintenance of motor and animal transportation furnished to the
departments and divisions of the Panama Canal and Panama Rail-
road Co. This division is required to operate on a self-sustaining
basis, primarily with a view of supplying transportation at a minimum
cost to the Panama Canal and the Panama Railroad Co. Automo-
bile repair work is also performed for employees and for contractors
doing work for the Government in the Canal Zone. A considerable
amount of heavy hauling in connection with various building and
highway construction projects was done. During the year 57 cars
were purchased and 60 were retired. At the close of the year there
were on hand 345 cars, trucks, and tractors, 5 motorcycles, and
3 mowing machines.
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
stocks of papers, etc., and manufactures such necessary stationery,
forms, etc., as are required on the Isthmus in connection with the
operation of the Panama Canal and the Panama Railroad. It is also
charged with the printing of the official publication, The Panama
Canal Record. The following statistics outline the operations of this
plant during the past year:

1936 1937

Gross revenues-------........--------------............-....--..-------....-----------......--------206.918.65 $220. 165.97
Total out put expense (includes supplies not processed in the print ing plant).. 189,690. 02 207, 026. 27
Net revenue----------.---------------------------------------17, 228.63 13. 139. 70
Manufactured output (included in total output above).-------------------- 153, 533.30 100. 547. 56
Inventory on hand. June 30--------------------------.----------------6,716.97 73. 280.16





REPORT OF GOVERNOR OF THE PANAMA CANAL


REVENUES DERIVED FROM THE RENTAL OF LANDS IN THE CANAL
ZONE

Rentals on building sites and oil-tank sites in the Canal Zone
totaled $46,348.65 for the year, as compared with revenues of
$41,521.31 for the fiscal year 1936. Rentals of agricultural lands in
the Canal Zone totaled $13,062.43 as compared with $14,714.59 for
the preceding year. At the close of the fiscal year 1,187 licenses were
in effect, covering 2,389 hectares of agricultural land within the
Canal Zone. This is a reduction in the number of licenses under the
previous fiscal year of 110, and a reduction in the area held under
licenses of 369 hectares. This reduction was largely the result of
the policy adopted in May 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,
BUSINESS OPERATIONS UNDER THE PANAMA BAILBOAD 0C..
The Panama Railroad Co. was incorporated in 1849 under the
laws of the State of New York for the purpose of building and oper-
ating a railroad across the Isthmus. In 1904, before actual construc-
tion work on the Panama Canal was started, the United States Gov-
ernment 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 Secretary
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 maintenance of the Canal. Thus
the United States Government is conducting 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 administration are covered in this section.
In addition to the operation of the trans-Isthmian railroad, the
enterprises of the Panama Railroad Co. include commissaries, which
are retail general stores selling 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 Republic of Panama.





REPORT OF GOVERNOR OF THE PANAMA CANAL


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 the commissaries, Hotels
Washington and Tivoli, and subsidiary activities under the chief
quartermaster.
Business operations on the Isthmus, carried on by the Panama
Railroad Co., yielded a profit of $1,358,595.79 for the fiscal year 1937,
as compared with $1,077,987.07 for the previous fiscal year, an
increase of $280,608.72.
A summary of the 1937 operations is given in the paragraphs
following:
THE RAILROAD

This railroad line operates between Colon at the Atlantic terminus
and Panama City at the Pacific terminus. In addition to these
cities, it serves all activities of the Panama Canal. The gross reve-
nue during the fiscal year 1937 from the operations of the railroad
proper (not including subsidiary business activities) amounted to
$1,609,744.44. The operating expenses were $1,333,404.05, leaving
a net revenue of $276,340.39 for the year, as compared with $205,399.15
for the previous year, an increase of $70,941.24 for the fiscal year 1937.
Tonnage of revenue freight amounted to 311,007 tons as compared
with 309,379 tons during 1936, an increase of 1,628 tons.
Statistics covering the various features of railroad operations dur-
ing the past 3 years are presented in the following table:

1935 1936 1937

Average miles operated, Colon to Panama------------------- 47.61 47.61 47.61
Gross operating revenue..------..--------.---.. -----..... --..-----. $1,2S0.,669.58 $1,456,164.54 $1.,609,7144.44
Operating expenses------- -.----------.----------------- $1, ]3, 218. 49 $1,250, 715.39 $1,333,404.05
Net operating revenue-----------------........---....-------------................. $141,381.09 $205,399.15 $276,340.39
Percent of expenses to revenue-----------------------.------ 88. 96 85.90 82.83
Gross revenue per mile of road----------------------------- $26,899. 17 $30, 5S5. 27 $33,811.06
Operating expense per mile of road.----------------...-------- $23,929.60 S26, 271.06 $28,006.80
Net revenue per mile of road--..---------------------------- $2.969. 57 $4,314.21 $5,8014.26
Number of passengers carried:
First class---....-- ...-------------------------------------- 184,355 161,813 161,443
Second class---------------.--------------------------- 211,959 177,631 194,338
Total- ----------..--------------------- 396,314 339,444 355.,781
Revenue per passenger-train-mile...---..---..-----..---........ $3.91 $3.64 $3.78
Revenue per frv-ight-train-mile...............................------------------------------- $9.26 $11.09 $11.88
Total revenue-train-mileage. ----....--------...---------....----------- 182,659 195,346 207,452
Railro.id revenue per train-mile--.------.. ----------------.......... .... $7.01 $7.45 $7.70
Railroad operating expense per revenue-train-mile------------........... $6.24 $6.40 $6.43
Net railroad revenue per revenue-train-mile................... $0.77 $1.05 $1.33
Freight, passenger, and switch locomotive mileage............ 279,281 293,942 316,031
Work-train-mileage.......................--------- ...---............ 8,686 4,S03 15,605
Passeuaer-train-milReage......---...................-----.........------------------. 111,5(1 122,904 133.975
Freight-train-mileage.................-----................... 71,078 72.442 73,477






REPORT OF GOVERNOR OF THE PANAMA CANAL 61

RECEIVING AND FORWARDING AGENCY

This division handles the dock and harbor activities of the Panama
Railroad Co. at the two terminals of the Canal. The following statis-
tics summarize operations for the past 2 years:

Increase
1936 1937 1937 over
1936

Toral revenues-_-----------------------------------------$1, 662,461 $1, 812,959 $150, 498
Total expense------------------------------------------- 1,322,306 1,394, 787 72,481
Net revenue-----......----....-.....------------------.-----------...--...------ 340,155 418,172 78,017
Tons Tons Tons
Cargo handled and transferred------......-----..........-------........--..---------........ 1,373,179 1,446,818 73,639
Cargo swtvedored--------........---------.....................------...--...-.--..--------- 483,381 581,533 98,152
Total.....-------- ------.. .----..--------------....----------- 1,856,560 2,028,351 171,791
Cargo ships handled --------------------------------------------- 4,584 4,589 5
Banana schooners handled-------------------------------------- 1, 306 1,203 1103
Agency service furnished vessels----------------------------------- 161 164 3

1 Decrease.
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 estab-
lished in 1925 the arrangement known as "Canal Zone for orders."
Under this system merchandise is shipped to Canal Zone ports (Cristo-
bal and Balboa) to be held there in warehouses of the Panama Rail-
road Co. for orders. Such cargo or integral parts of it may be with-
drawn as the consignor or consignee 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 642 tons. This was a decrease of about 40 percent
from the tonnage received during the previous year. The great
reduction in this business has been due principally to the discontin-
uance on December 1, 1933, of local deliveries into the Republic of
Panama and the Canal Zone. The revenue received for handling
and storage amounted to $4,070, as compared with $5,2S7 for 1936,
a decrease of 23 percent.

COALING PLANTS

Operations of the coaling plants in the fiscal year 1937 showed a
substantial improvement as compared to operations during the past
5 years. Sales increased by 30,048 tons, or 72 percent, as compared
to the previous year, and were greater than any year since 1931.
The following statistics summarize the operations of the coaling
plants at Cristobal and Balboa for the fiscal year 1937 as compared
with the fiscal year 1936.





62 REPORT OF GOVERNOR OF THE PANAMA CANAL

Increase
1936 1937 1937 over
1936

Gross revenues--................. .. ....--............ .......... $333,499 $552,140 $218,641
Gross expenses (including cost of coal sold).------..--------..--------- 278,726 476,849 198,123
Net revenues.-----------------------.-------------------- 54,773 75,291 20,518
Tons Tons Tons
Coal sold--...----.------------------------------.. ------------ 41,813 71,861 30,048
Coal purchased.-------------------------------------------------54,925 59,944 5,019

TELEPHONES AND TELEGRAPHS

The gross revenue from the operation of telephones, electric clocks,
and electric printing telegraph machines amounted to $235,642.88.
Operating expenses were $174,249.50, resulting in a net profit of $61,-
393.38, as compared with a profit of $65,331.89 for the preceding year.
During the year 1,412 telephones were reconnected or installed and
1,262 were discontinued or removed, resulting in a net increase of 150
telephones. At the close of the fiscal year there were 3,015 telephones,
54 electric clocks, and 26 automatic printing telegraph typewriters in
service.
REAL ESTATE OPERATIONS

Real-estate operations of the Panama Railroad Co. cover property
owned by the company in the cities of Panama and Colon and build-
ings erected by the company in the Canal Zone. There were in effect
at the close of the fiscal year 1937 a total of 1,520 leases and 17 licenses
covering the use of Panama Railroad properties in the cities of Panama
and Colon. Net revenue from operations during the fiscal year 1937
was $212,169. During the past year 2,052 square meters of land in the
city of Panama, not used for business purposes, were sold.
The Congress of the United States passed a resolution, authorizing
the disposal of certain lands on Manzanillo Island, Republic of
Panama, at the close of the fiscal year. This is discussed in section
III of this report under the subject of legislation.

COMMISSARY DIVISION

The primary function of the commissary division of the Panama
Railroad is to maintain adequate stocks of food, clothing, and house-
hold supplies to meet the needs of Government personnel and of var-
ious United States Government departments on the Istlhmus. In
carrying out this function the division operates retail stores in each of
the Canal Zone villages and also central wholesale warehouses and
cold-storage plants. Sales are restricted to agencies and personnel of
the United States Government, except that sales of ice, cold storage,
food, and other essentials are made to commercial steamships transit-
ing the Canal or calling at its terminal ports.






REPORT OF GOVERNOR OF THE PANAMA CANAL


Net sales for the year totaled $8,113,110.70, as compared with
$7,577,121.51 for 1936. Gross operating expenses, including cost of
goods sold, transportation expenses thereon, plant and processing ex-
penses and costs, salaries and wages, depreciation, repairs, etc., aggre-
gated $7,790,110.69 resulting in a net operating profit of $323,000.01
for the year's operations. At the close of the year, the value of mer-
chandise on hand was $1,131,903.44, as compared with $1,160,408.72 at
the close of the fiscal year 1936. The ratio of sales to inventory indi-
cates a theoretical stock turn-over about every two and one-third
months, or approximately five times a year.
The operating results as compared with the 2 preceding years were
as follows:

1935 1936 1937

. S. Government (Army and Navy)-------.........-------------$704,920.23 $942,043.71 $1,053,629.58
The Panama Canal...-------..----------------------------- 732,335.10 737,112.75 795, 226.95
The Panama Railroad ---------------------------------- 302,935.49 259, 27.31 307,810.90
Individuals and companies ------------------------------ 248,067.31 313,501.48 265,590.03
Commercial ships------------------ -------------- -----355,952.06 304,547.99 354,341.59
Employees------------------------------------...-----5,115,817.17 5,374,016.27 5, 827, 402. 26
Total sales..--------------.............--.----...........-----------..... ----7,460,027.36 7,930,509.51 8,604.001.31
Less discounts, credits, etc -----.----- -------------- 330,731.34 353,388.00 490,690.61
Net revenue from sales ---------------------------- 7,129,296.02 7,577,121.51 8,113,110.70
Gross operating expenses (including cost of goods sold)------- 6,908,722.02 7,296,395.46 7,790, 110.69
Netrevenue----------------------------------------220,574.00 280,726.05 323,000.01


PURCHASES

Purchases during the year aggregated $4,673,099.10, an increase of
$281,525.35, as compared with the previous year. The following taibu-
lation shows the value of the various classes of materials purchased, as
compared with the 2 preceding years:

1935 1936 1937

Groceries-----.-..--------------------....---....------------- $1,362,659. 95 $1,603,081.68 $1, 78u, 969. 68
Candy and tobacco.------..---..-------...---..----------...------- 295.436.93 340,615.47 330, 148.47
Hardware------------------------------------------------ 326, 924.97 363,354.44 347.647.11
Dry goods.--------..------------.-----------.--------------- 644,941.72 713,353.09 776.305.51
Shoes ------------------------------------------------ 191,027.72 209,211.03 203. 550.50
Cold storage--.--------.. ---------------------------........ -. 1,071,593.04 1,030,776.67 1,020,562.66
Raw material...-----------.-..--------.......-----------....----------...... 447,224.51 438,402.11 471,334.90
Cattle and bogs---------------------------------------- 103,117.02 1O, 4109 75 189,173.93
Milk and cream.----..----------------------------------- 156,517.02 lt). S65 82 185, 852. 59
Dairy products------------------------------------------ 459,115.11 569. 783. 85 644,466.36
Total--------------------------------------------- 5,058.557.99 5,609,853.91 5,950,011.71


MANUFACTURING AND OTHER PLANTS

The output of the various plants of the commissary division during
the past year had a total value of $1,690,882.42, as compared with
$1,604,440.76 for the preceding year. Statistics covering the opera-







64 REPORT OF GOVERNOR OF THE PANAMA CANAL

tion of these plants during the past three fiscal years are presented in
the following table:


Laundry:
Pieces handled--..-- ..--.---------------------......
Value of output.................... ..................
Bread............................................loives..
Rulls ------------------------------- .o.l.--l. -
Cracker-.--.... -.. ---------. ........-..poundk..
Cakes---------------------------------.---do--
Valueof otutput--.-- ...-....-
Coffee roasting plant:
Coffee--- ----------------------------.... .... pounds--
Corn and corn meal----------.------------.---do----
Peanuts-----------------..... -----.--------- ..do ----
Valueof output------------------------- --------.--
Ice manufacturing plant:
Ice manufactured-------------------------------tons-
Value of output----------------.....---....--.............-----
Ice cream and milk bottling plant:
lee cream manufactured---.------------------ gallons-
Milk bottled-------------- ----------------- quarts-
Cream bottled-.--------------------------------do---
Va lue of output ------------------------------.--
S.iu;ce factory and pickling department: Value of output----
Indu rrinal laboratory: Value of output --.-- ------.- .--.-
Abattoir:
Cattle killed..------- ---- --- ----------------head--
Value of output ---------------------- ..-------------.
Value of total output----------------- ------.-------


3, 426. 5q4
$152,069.76
4,408,391
1,432,732
285,290
34,936
$251.379.22
222,012
22,540
8,710
$58,483.72
23,915
$170,884.08
'92, 270
74, 144
29, 16
$283.704. 16
(1)
$239,958.69
2,463
$140,928.82


1936


4. 416. 307
$187,670.61
4,307.400
1.3f7,275
408,078
35, 696
.4281, 546.83
228,076
29,210
7,696
$60,406.47
22.737
$160,164.04
124. 130
1, 0.53, 524
25,201
$318,416.90
$73, 530.49
$269,470.4-17
4,008
$23. 234 95,


$1, 297,408.45 1$1, 604,440.76


I Suspended.
HOTELS

The hotels Tivoli and Washington were operated by the Panama
Railroad Co. without change of policy. These hotels are operated as
adjuncts to the Canal for the purpose of providing suitable acconm-
mnodations 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 $201,783.63,
or $3,408.37 less than the revenue derived. The operating cost of the
Hotel Washington was $175,231.19, or $19,593.20 more than the reve-
nue derived. However, operantin- expenses of the Hotel Washington
include an increase in unexpended reserves over last year of $11,854.71.
Expendit tires for equipment at the Hotel Tivoli amounted to
$6,077.03, and for maintenance to building, $6,477.32, a total of
$12,554.35. Maintenance repairs to this building may be expected
to continue high owing to its badly deteriorated condition.
Thle operation of the Tivoli Hotel by the Panama Railroad Co.
during the past 8 years shows a gross excess of expenses over revenues
of $219,182.15. 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
$60,639.15 in unexpended reserves, leaving a total of $181,895.08 of
the expenses charged still in the possession of the Government or an
actual net deficit of $37,287.07.


5,575,016
$211,619.84
4,370.515
1,844.279
434. 11
42.,346
$310, 389. 01
253,8-19
22,391
6,253
$61,839.69
17, 94
$130.,790.54
132,043
1,254,230
23,137
$353,936.13
$93, 2S8 26
$284,731.09
4,266
$244,287.86


$1, 690,882.42




REPORT OF GOVERNOR OF THE PANAMA CANAL


MINDI DAIRY

The operation of M\indi dairy continued as in previous years. Total
milk production amounted to 316,074 gallons, as compared with
270,375 gallons last year, an increase of 45,699 gallons. Arrangements
were made during the year to supply fresh milk to the Army and Navy
on the Isthmus in addition to the regular trade, which necessitated
the purchase of additional dairy stock. Consequently, 298 head of
purebred Jersey cows and 6 purebred Jersey bulls were purchased in
the United States at a cost of $29,240.66 and added to the dairy herd.
One 200-stanchion dairy milking barn was erected and 10 additional
cow sheds. Buildings and pastures were maintained in good condition
by the dairy operating force.

PANAMA RAILROAD STEAMSHIP LINE

The gross operating revenue for the steamship line for the fiscal
year ended June 30, 1937, amounted to $1,391,323.52, and the gross
operating expenses amounted to $1,603,530.42" resulting in a net
deficit from operations of $212,206.90. The operating deficit com-
pared with the net loss for the fiscal year ended June 30, 1936, of
$368,476.62, shows an increase in the net revenue of $156,269.72.
For the year ended June 30, 1937, the tonnage carried by the
steamship line amounted to 178,999 tons, as compared with 159,371
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 $533,262.85. Had regular tariff rates been
received by the steamship line for such freight and passenger services
performed for the Panama. Canal and other Government departments,
its income would have been increased by $533,262.85 and its operations
for the year would have resulted in a profit of $321,055.95.










SECTION III


ADMINISTRATION
DEPARTMENTS

The organization of the Panama Canal on the Isthmus embraces
five principal departments-namely, operation and maintenance,
supply, accounting, executive, and health. In addition to this, an
office of the Panama Canal is maintained in Washington, D. C. The
Panama Railroad Co., a Government-owned corporation conducting
business enterprises on the Isthmus, 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 observations,
surveys and estimates, and miscellaneous construction other than the
erection of buildings.
SUPPLY

The supply department is chliarged 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 print-
ing plant, and the supplying of motor transportation facilities to
the various departments and divisions of the Canal and railroad
organizations.
Accol NOTING

The accounting department is responsible for the correct recording
of financial transactions of the Canal and railroad; the administrative
auditing of vouchers covering the receipt and disbursement of funds
preliminary to the final audit by the General Accounting Office; cost
keeping of the Canal and railroad; the checking of timekeeping; the
preparation of estimates for appropriations and the allotment of
appropriations to the various departments and divisions; and the
examination of claims.





REPORT OF GOVERNOR OF THE PANAMA CANAL


EXECUTIVE

The executive department embraces the general office business of
the Governor and all administrative activities invested by Executive
order within the authority of the executive secretary. Under this
department come the administration of police and fire protection,
postal service, customs, shipping-commissioner work, estates, schools,
general correspondence, and records for the organization of the Canal
and Panama Railroad, personnel records and administration, wage
adjustments, statistics of navigation, information and publicity,
relations with Panama, and the operation of clubhouses, restaurants,
moving-pictu tire 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, and
the enforcement of quarantine regulations.

PANAMA RAILROAD Co.

The operations of the Panama Railroad Co. on the Isthmus are
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 organiza-
tion 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 ADMINISTRATIVE PERSONNEL
Appointments in official positions during the fiscal year 1937 were
as follows:
Col. Julian L. Schley, United States Army, was relieved from duty
with the Panama Canal on August 26, 1936, and the present incum-
bent, Col. Clarence S. Ridley, was appointed to fill the vacancy, effec-
tive August 27, 1936. The position of engineer of maintenance, thus
vacated, was filled by the appointment of Col. Glen E. Edgerton,
United States Army, effective October 6, 1936. Colonel Edgerton
had previously served with the Isthmian Canal Commission on the
[sthmus from May 14, 1908, to August 19, 1909.
Mr. Wilson H. Kromer was appointed comptroller, the Panama
Canal, effective October 2, 1936, vice Mr. Homer A. A. Smith, trans-
ferred to Washington, D. C., and appointed chief of office.





REPORT OF GOVERNOR OF THE PANAMA CANAL


Mr. H. A. A. Smith, comptroller on the Isthmus, was appointed
chief of office and general purchasing officer, vice Mr. A. L. Flint,
deceased.
Mr. Arnold Bruckner, assistant comptroller in the Washington
office, was transferred to the Isthmus as assistant comptroller, effective
December 29,1936, and Mr. B. F. Burdick, assistant to the comptroller
on the Isthmus, was transferred to Washington as assistant comp-
troller, effective December 29, 1936.
Col. Henry C. Pillsbury, United States Army, was appointed chief
health officer on September 2, 1936, vice Col. 0. G. Brown, United
States Army, relieved from duty with the Panama Canal.
Col. William H. Richardson, United States Army, was appointed
superintendent of Gorgas Hospital on December 19, 1936, vice Col.
Edgar King, United States Army, relieved from duty with the Panama
Canal.
Capt. Edmund R. Norton, United States Navy, was appointed as
assistant to the Governor, effective May 26, 1937, for replacement of
Commander Charles F. Osborn, United States Navy, superintendent,
mechanical division, who entered on terminal leave to expire July
23, 1937.
Lt. Frederic H. Smith, Jr., United States Army, was appointed
senior aeronautical inspector on September 1, 1936, vice Capt.
Cornelius W. Cousland, United States Army, relieved from duty with
the Panama Canal.
The position of assistant executive secretary was established on
August 7, 1936, and Mr. Ernst A. Erbe was appointed to fill the office
on that date.
Mr. Courtenay T. Lindsay was appointed general manager, Panama
Railroad Co., on September 1, 1936, vice Mr. Robert B. Walker,
deceased. The position of receiving and forwarding agent, thus
vacated, was filled by the appointment of Mr. A. Lyle Prather.
Mr. W. A. E. Doying, inspecting engineer, died on August 3, 1936.
He had been with the Washington office since October 10, 1908. Mr.
P. P. Greenwood, assistant inspecting engineer, was appointed inspect-
ing engineer, effective August 16, 1936.
EMPLOYEES
The force employed by the Panama Canal and the Panama Railroad
Co. comprises two classes designated locally for convenience as "gold"
and "silver" employees. The terms "gold employee" and "silver
employee" originated with the practice adopted during the early
construction period of the Canal of paying common laborers and other
unskilled employees recruited in the Tropics in Panamanian silver


68





REPORT OF GOVERNOR OF THE PANAMA CANAL


coin, while those recruited from the States, such as skilled craftsmen
and those occupying executive, professional, civil-service, and similar
positions, were paid in gold coin.
All employees are now paid in United States currency, but it is
convenient to retain the original terms used to designate the two
categories of employees. The terms "gold" and "silver" are also
applied to quarters, commissaries, clubhouses, and other facilities.
The gold employees (those carried on the gold pay roll) are with a
few exceptions American citizens, and embrace those employed in the
skilled trades and in the executive, supervisory, professional, subpro-
fessional, clerical, and other positions where education, training, and
special qualifications are required.
The force of silver employees is comprised almost entirely of natives
of the Tropics. A considerable number of these are Panamanians
and the majority of the others are workers who were brought to the
Isthmus from various islands in the West Indies during the early con-
struction period of the Canal, or are the children of these former
workers. The force of silver employees embraces the common laborers,
helpers, and semiskilled workers who have acquired some manual
dexterity but are not first-class craftsmen in their respective trades.
It will thus be seen that our employees are divided into two general
classes, one of which comprises United States citizens and the other
principally native tropical labor. These two classes are carried on
separate pay rolls and the conditions of employment applicable to
each are radically different. The division of labor between the two
classes of employees is a matter of long custom in tropical countries
and our practice conforms therewith.
PERSONNEL ADMINISTRATION
In the annual reports for the past 2 years, the general reorganiza-
tion of the division of personnel administration was explained and a
brief outline was made of the personnel program being undertaken by
the Panama Canal. A resume of the developments in personnel
administration during the past year is outlined in the following
paragraphs:
Special attention was directed to the development and use of im-
proved employment procedures and forms, including applications for
employment and transfer for gold-roll employees. Files of applicants
for employment and transfer were developed and classified along occu-
pational lines during the year and now contain 1,250 applications. A
personnel inventory procedure is being developed for the purpose of
determining the complete qualifications of employees for use in con-
nection with future transfers and promotions.





REPORT OF GOVERNOR OF THE PANAMA CANAL


In August 1936, after experimental study of the Probst and Civil
Service personnel rating systems, a revised service rating form was
adopted. The service ratings made to date on the new form have
been tabulated and studied to determine the effectiveness of the rating
form as a means of differentiating between superior, average, and
inferior employees.
In connection with the apprentice-learner program, which is dis-
cussed on page 73 of this report, a thorough study was made by
departments and occupations of the probable number of automatic
retirements which will occur during the period 1937-47. This
analysis indicates the minimum number of replacements needed each
year and will enable the administration to plan in advance for suitable
replacement of retiring skilled workers.
During the year the silver personnel bureau, in addition to its
regular work of maintaining service records of silver employees and
handling applicants for employment, undertook the work of receiving
and transmitting approximately 10,500 applications of employees
resident in Panama for "cedulas", a type of identification issued by
the Government of Panama.

IDENTIFICATION OF EMPLOYEES

During the latter part of the fiscal year the work of securing the
necessary data from all employees in connection with the replacement
of the present round metal checks with the new identification cards
was practically complete. This work necessitated fingerprinting,
weighing, and measuring about 3,500 gold and approximately 12,600
silver employees. It is expected that the new identification system
for all employees of the Panama Canal and Panama Railroad Co.
will be placed in effect during July and August 1937, for which
approximately 17,000 celluloid identification cards for employees have
been prepared.
GOLD EMPLOYEES

The distribution of the gold personnel on June 2, 1937, and June
3, 1936, is shown in the following tabulation:

June 2, June 3, In- De-
1937 1936 crease crease

THE PANAMA CANAL
Aerounting department-----..---.....-------------------------------......................... 170 160 10 -------
Dredging division..---------......--...---------------------------------.......................... 189 190 ..-.... 1
Engineer of maintenance, assistant:
Office engineer-------------....-.....---------------...----------------.............. 73 67 8 --------
Surveys-meteorology...---------------.-----...--..-...---......------------------............ 23 25 ...--------..- 2
Electrical division-...------..---------..------..-------------------.............. 174 172 2 ----.......
Locks division......--......--.....-.....---........................... 339 264 75 ....---
M municipal division..--...-....- ...---.-------. -........- ...--- 113 113 -------- -------.







REPORT OF GOVERNOR OF THE PANAMA CANAL 71


June 2, June 3, In- De-
1937 1936 crease crease

THE PANAMA CANAL-Continued
Executive department:
Executive offices..------------.---...-------..--...------------------...... 146 141 5 ........
Clubs and playgrounds............................-- ...-- ......... 59 57 2 ........
Bureau of posts...-....-......................---.................----- .. 67 61 6 ........--------
Civil affairs and customs-.................-.....---..........-....... 16 15 1 ........---
Fire protection---............-...-...................- ............... 47 42 5 .......
Police and prisons.....---................---...........-----.......--...... 164 153 11 ........
Magistrates courts----- ------------------------------------- 4 5 -------- 1
Schools....--------------------------------.....----........-------------........... 140 138 2 -.-.--
Collector.......---------.....--........----....--........--.............-.......... 15 15 ....-- .....-
Paymaster. ------------------------------------------------ 12 12 ------ -----
Fortifications...................................................... -------------------------------------------------3 6 ---- 3
Health department---.....-----...-----..---------... ----...----------.----- 306 296 10 ..--..-
Marine division.....-----------.........---------------...---- --------.------ 190 179 11 -----
Mechanical division......------------------------------------------ 464 435 29 .---.-
Supply department:
Offices, chief quartermaster-------------------......................---.....---...--------- 10 10 --- -------
Constructing quartermaster.................................... ----------------------------------77 76 1 ----.
District quartermasters.------.---.---...---------...........---------------- 24 25 ------ 1
Farm bureau------- ---------------------------------------- 3 2 1 --..-
Fuel-oilplant-------------- ------------.-------------------- 38 36 2 ----.-
Storehouses------------------------------------------------ 49 44 5 ..-----
Motor-car repair shop.--------------------------------------....... 27 30 ------- 3
Motor transportation-...----.---- ---.....-...----..------------..-... 32 43 -..-- 11
Panama Canal Press.-----------... --------.. ----------..----------.. 10 13 .----- 3


Total, the Panama Canal--------------------------
THE PANAMA RAILROAD
General manager:
Offices-------------------------------------------
Railroad transportation---------------- ---------------
Receiving and forwarding agency. --------------------
Supply department:
Commissary division -------------------------------
Hotels -------------------------------- -------
Dairy farmn------------------------------------


2,984 2,825 184 25


39 23 16 .....-
66 76----- 10
92 87 5 ....-------.
220 206 14 ..--.-
14 13 1 ----.-
3 3 ----- ---..


Total, Panama Railroad---------------------------------- 434 408 36 10
Total force---------------------------------------------- 3,418 3,233 220 35


Increases may be noted in 22 of the 36 units listed ih the above
table and decreases in 9 units. The apparent increase of 75 in the
locks division is due to the fact that certain temporary employees,
who had been taken on only for the biennial overhaul of the locks,
was still in the employ of the locks division on June 2, 1937. There
was actually an increase of 16 employees in this division due to the
addition of an extra shift. The increase in the mechanical division
was entirely in the machine shop forces at both Balboa and Cristobal.
The increase in the commissary division was largely due to the expan-
sion of the learnership program. The reduction of the motor-trans-
portation division is largely due to the expiration of the temporary
employment of seven chauffeurs. The change (increase and decrease)
under the General Manager of the Panama, Railroad Co. is due to an
organization transfer of the maintenance-of-way section.






72 REPORT OF GOVERNOR OF THE PANAMA CANAL

RECRUITING AND TURN-OVER OF FORCE

The following table shows additions to the gold force and separa-
tions from it in the fiscal year from July 1, 1936, to June 30, 1937.
Employmnents are classified as made in the United States or on the
Isthmus and separations are classified by cause:

Opera- Panama
Gold force intnd E eu- Supply Health Acount- Rail- Total
nance

Employed or reemployed in the United
States.----..-----.. --------.------ ............. ..-.. 142 27 1 55 1 8 23t
Employed or reemployed on the
Isthmus--------------------------- 114 50 30 24 7 38 263
Total additions ------------------ 256 77 31 79 8 46 497
Resigned.----------------------------- 46 32 5 43 5 12 143
Retired:
Ae.....-----.-------...------------------.. 20 5 4 ------ 1 4 34
Dis3hilty.. ....................... 18 1 ------------------ 1 2 22
Involuntary ----------------------- 1 ----..-- -...-----------------.. ......... ------------------.... 1
Voluntary------------------------- 8 3 1 ..---- 1 3 16
Died--------------------------------- 6 1 1 2 1 5 16
Discharged-
Reduction of force----------------- 4 --.------- 7 1 --------- ------ 12
E\piration of temporary employ-
ment-------------------------- 89 19 11 21 1 1 142
Cause-------------------------- 8 1 1 2 ------ 1 13
Failure to establish United States
citizenship------------------------ 1 --------- --------------.-- ---..--- ---- -.. 1
Adjudged insane------------------- 1 ----------------- ------..--- --- ------ -------- 1
Physical disability----------------- ---------.--------- 3 --------- --------- 4-
Total separations----------------- 203 62 30 72 10 28 405.


The Panama Canal:
Additions------------------------------ 451
Separations ------------------------ - ---- 377
Net additiofns-----------------------. 74


The Panama Railroad Co.:
Additions-------.---------.. ------------.. 46-
Separations----------------------------- 28
Net additions------------------------. 18


Based on an average aggregate gold force of 3,364 for the year,
the 405 separations shown above give a turn-over rate of 12.04 percent
from all causes, as compared with a turn-over rate of 8.6 percent for
the fiscal year 1936, which was based upon an average of 3,166 em-
ployees. The higher turn-over rate for the fiscal year 1937 was due
in large part to temporary employment in connection with the regular
biennial overhaul of the locks; the 142 employees discharged on ac-
count of expiration of temporary employment included 75 who were
employed on the lock overhaul. Ignoring those separations which
were due to the expiration of temporary employment, the turn-over
rates would be 7.8 percent for the fiscal year 1937, and 5.9 percent
for the fiscal year 1936.
The Washington office of the Panama Canal tendered employment,
on requisitions above the grade of laborer, to 470 persons, as against
219 in the pervious year. Of this number 263, covering 51 classes of
positions, accepted tenders and were appointed. This was more than
double the number of appointments made in the previous year, 129,
but this increase was principally due to the biennial lock overhaul





REPORT OF GOVERNOR OF THE PANAMA CANAL


work, which always requires the employment of additional temporary
personnel. Two thousand nine hundred and eighty-five persons
(2,623 from New York, 117 from New Orleans, 37 from other Atlantic
coast ports, 206 from Pacific coast ports and 2 via air transport
service), including new appointees, employees returning from leaves
of absence, and members of their families, were provided transporta-
tion from the United States to the Isthmus. This was an increase
of 284 over the previous year.

APPRENTICE-LEARNER PROGRAM

During the fiscal year 1936 a great deal of consideration was given
to the question of providing adequate training for young men and
women in the Canal Zone which would qualify them, insofar as possi-
ble, for employment in the Canal organization. As a result, some
80 young persons were appointed to apprenticeship and learnership
positions. Appropriate technical and academic training of these
employees is provided by the division of schools, the instruction
coming under the supervision of an apprentice-learner coordinator
especially employed for this purpose.
In June 1937, examinations were held in connection with the
proposed employment of 40 additional apprentices and learners.
Eighty-four applicants competed in the written and performance
tests, and tentative selections are now being made by department
heads for future appointments.
SThe consent of the United States Civil Service Commission has also
been obtained to the establishment of clerical learnerships for the
positions of storekeeper, accountant, bookkeeper, file clerk, roll
keeper, correspondence clerk, draftsman, etc., as a means of training
local young persons for these civil-service positions.
In part, it is expected to fill vacancies that arise in the future by
the appointment of graduating apprentices and learners.

WAGE ADJUSTMENTS
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 service 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 differential above pay for similar
work in Government employment in the United States, within the
limitation of appropriations, and subject to the preservation of coordi-
nation within the organization. This is justified by the special dis-


23094-37---6






74 REPORT OF GOVERNOR OF THE PANAMA CANAL

advantages inherent in the climatic, economic, and social conditions
prevailing on the Isthmus.
For employees included under the classification, the prevailing
allocations for the greater part coincide with the initial allocations
made in 1928 and 1929 immediately following the passage of the
Welch Act. As the duties and responsibilities of positions change
from time to time, due to reorganization, changes in personnel, etc.,
the classification conunittee met frequently throughout the year to
consider recommendations for regradings as submitted by heads of
departments and divisions.
Neither the wage board, consisting of the assistant engineer of
maintenance and a representative selected by an organization of
employees and approved by the Governor, nor the salary board, com-
posed of the beads of the nine major departments and divisions of
the Panama, Canal and Panama Railroad, held any meetings during
the year.
The complaints board, established for the purpose of investigating
and reporting on complaints of employees, held one meeting during
the year, in connection with the seniority date of a locomotive engineer.

SILVER EMPLOYEES

The numbers of employees on the silver roll by departments or
divisions on the last force reports, June 1936 and June 1937, are
shown in the following tabulation. This summary 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 2,
1937 and June 3, 1936:

June 2, June 3, Increase Decrease
1937 1936

THE PANAMA CANAL
Accounting department-------..--------------------------- 3 3 ..........--.....-
Dredging division.--------..--.-----------.---...------------.. 886 958 ...---- 72
Engineer of maintenance, assistant:
Office engineer----.......---------........-------------------------... 5 4 1 -----..---
Surveys--meteorology ---....-----..---.-------.....---..----------- 50 80 ----------.... 30
Electrical division......----.------.--- ----.........--------...-------- 185 285 ...------- 100
Locks division............................----- -- ..........-....... 853 658 195 ...- ..- -
Municipal division.---..-------------------................ ----.------- 866 915 -..-...- 49
Executive department:
Executive offices---.....--..----------.-------------------- 36 35 1 ..--------
Clubsand playgrounds-----..--..-----..------------------ 239 214 25 ...-------
TBureau of posts-------. ----------.-------------------- 18 18 ..------------------
Civil affairs and customs--------------------------------. 1 1 --...--------.-----
Policeand prisons.----------.---------------------------- 45 44 1 -----..--
Magistrates courts---....-..----------...--------------------- 2 2 ...------.....---. ------
Schools------------.......---.---...---------.. ------------- 116 113 8 ........--
Paymaster---..--------.......---------------------------- 2 2 ....-------... ---. -----
Health department--......------....----------..---...---...------------ 868 854 14 ..........--------
Marine division..........---------------............---------.....--------.------ 496 605 .....-- 109
Mechanical division----------..............------...--........------------------- 892 780 112 .......--





REPORT OF GOVERNOR OF THE PANAMA CANAL 75

June 2, June 3, Increase Decrease

THE PANAMA CANAL-continued
Supply department:
Constructing quartermaster-..----..------------------------ 806 545 261 --...----
District quartermasters---------.............----.--------..------------ 368 388 .....-- 20
Farm bureau..--.---------..--------..------...-----------------...... 24 20 4 --------
Fuel-oilplant----------------------------------------- 52 55 -----..... 3
Storehouses..-- ---------------------.- --- --------------... 269 248 21 ...--..---
MAlotor-car repair shop.---------.-------------------------- 47 47 ------ --.......-
Motor transportation--------....--------------------------- 137 143 .---..- 6
Panama Canal Press-----.-------------------------------.. ... 74 74 ---- ---------
Total, the Panama Canal...---------------------------- 7,340 7,091 638 389
THE PANAMA RAILROAD
General manager:
Offices-----------------------------------------------. 386 79 307 ........
Railroad transportation-- -------------------------- ---.. 113 273 --------- 160
Receiving and forwarding agency--------------------------. 888 973 ---------- 85
Supply department:
Commissary division---...----------------------------- 1,128 1,074 54 --.-....--
Hotels------.---.----------------------------------.. 192 180 12 ---.
Dairy farm--.--.-------------------------------------- 112 92 20 -----
Total, the Panama Railroad-------------------------- 2,819 2,671 393 245
Totalforce---------------------------------------10,159 9,762 1,031 634


Increases may be noted in 15 and decreases in 10 of the 32 units
employing silver personnel. The increase in the locks division is due
to employees who were taken on temporarily for the locks overhaul,
all of whom were removed from the pay roll by the end of the fiscal
year. The increase in the mechanical division was largely in the form
of helpers for gold mechanics, an increase in the number of skilled
workers being noted in the section on gold force. Roughly, two silver
employees (helpers) are required for each gold mechanic carried.
There was also an increase of 32 silver painters for work on cleaning
and painting ships' bottoms. The largest increase, occurring in the
constructing quartermaster's force, is due to the fact that all new
construction work for the Canal and railroad is now being performed
by that division, whereas it had been largely performed under con-
tract for the past 2 or 3 years. The decrease in the silver force of the
electrical division is due to the completion of various construction
projects. The marine division employs day-by-day gangs for handling
lines on vessels transiting the Canal and therefore the number of
silver employees on the pay roll of that division fluctuates widely
from day to day. The shift in personnel of the Panama Railroad Co.
(increase under office and decrease under railroad transportation) is
due to transferring the maintenance of way section. The net increase
in the silver force under the general manager is due to the employment
of an extra gang for reballasting and augmenting regular gangs on
account of resurfacing for new 100-pound rail.
Silver-roll employment is frequently for relatively short periods;
the employment or reemployments during the year totaled 6,156, the
terminations 5,279.





REPORT OF GOVERNOR OF THE PANAMA CANAL


WAGE ADJUSTMENTS

Wages of employees on the silver roll, who are primarily natives of
the Tropics, are generally established at levels based on the prevailing
wage scale for tropical labor in the Caribbean area and bear no definite
relation to rates of corresponding classes of employees in the United
States.
Under Executive orders, the maximum rate of compensation au-
thorized for native employees is $80 per month or $0.40 per hour,
with the exception that the rates may be exceeded in the case of not
more than 112 such employees possessing special qualifications. The
basic hourly rate of compensation for common labor is $0.20 per hour.
It has been at this level since 1922 with later provisos that $0.21 and
$0.22 may be used as the entrance rate where justified. Small
bonuses are payable in some instances to employees who are shifted
temporarily from their regular duties to other duties which involve
distagreenble, 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, consisting
of the heads of the major departments and divisions and the admin-
istrative 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, and the index
figure for 1937 was 114.29.

REGISTRATION OF NATIVE WORKERS

In connection with the interviewing and registering of applicants
for employment on the silver roll with the Panama Canal and the
Panama Railroad Co., it is estimated that more than 12,000 individuals
were handled. Five hundred applicants, selected from about 1,000,
were given a written examination in order to establish a register for
subclerical and allied positions; of these about 350 passed the exam-
ination. Out of about 11,000 other applicants for nonclerical work
approximately 2,300 were found qualified for the work for which they





REPORT OF GOVERNOR OF THE PANAMA CANAL 77

-applied and were placed on the corresponding vocational registers.
Many applicants, otherwise eligible, were disqualified because of
physical disability. All successful applicants were fingerprinted,
photographed, and issued eligibility cards, showing the kinds of work
for which the applicant is qualified.

SUPERANNUATED NATIVE EMPLOYEES

The Panama Railroad Co., through the board of directors, has estab-
lished a provision that native or tropical employees who are no longer
able to perform useful service in any capacity may be removed from
the active rolls and be granted small cash annuity or given an equiva-
lent lump sum payment. Since June 1, 1928, 22 such employees have
been given lump-sum payments ranging from $25 to $500 and 286
employees have been granted pensions ranging from $5 to $30 per
month. Since 1928, 83 pensioners have died, been transferred to
Corozal Hospital, disappeared, or otherwise become separated from
the roll, leaving 203 annuitants receiving payments at the end of the
fiscal year. The following table shows the number of those granted
monthly and lump-sum payments, and the number still receiving
monthly payments at the end of the year:
Superannuated alien employees of Panama Railroad Co.

Monthly Total Died or otherwise separated (year) Still
Fiscal year Lum pay- re- ---- Iiv-
ments tired Prior 1929 1930 1931 1932 1933 1934 1935 1936 1937 nmg

Prior----------------- 2 2 2 ---- --------- -- ----- ----- -- --- -- ----- -- --
1928-------- -- -------- 1 1 ------- --------------- ---- ----- ---- ---- -----
1929.---------- ..------ ------ ------ --- ------- -------- -- ----- ---- ----- -----------
1930---------- 7 26 33 ------- ----- 1 5 1 6 ..... 1 1 11
1931--.-------- 2 13 15 ------- ----- ----- 3 2 ..... ..... ..... ..----- -----2 6
1932.......... 2 24 26 -------------------- 2 1 2 4 2 13
1933.......... ---------- 3 67 70 --------------------------- 1 7 4 5 6 44
1934 ---------- 5 62 67 ------- ---------- ----- ---------6 2 3 1 50
1935---------- 2 30 32 .------- --- ----- ----- ---- ---------- 2 4 2 22
193R.......... ---------- 1 34 35 ---------------------- --------------- --- 1 4 29
1937---------- -------- 27 27 ------- --- ----- ----- ----- ----- ----- ----- ----- -----27
Total ----- 22 286 308 2 -- 1 8 5 2 21 12 16 16 203


The foregoing applies only to those superannuated employees who
have been in the service of the Panama Railroad Co. Although there
was no provision previously for the payment of similar disability allow-
ances to superannuated employees of the Panama Canal, appropriate
legislation to permit the Panama Canal to conform to the practice of
the Panama Railroad Co. has now been passed by the United States
Congress. This legislation known as H. R. 6436, authorizing cash
relief for certain employees of the Panama Canal not coming within
the provisions of the Canal Zone Retirement Act, is outlined and
explained further under Administrative Problems.





REPORT OF GOVERNOR OF THE PANAMA CANAL


REPATRIATION OF UNEMPLOYED ALIENS
Toward the close of the fiscal year 1934 an appropriation of $150,00g
was provided by Congress for the purpose of repatriating unem-
ployed 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 steamship transportation, cash allow-
ances of $25 are given to single men and $50 to men with families,
who may in meritorious cases also receive $10 for each minor child to.
cover miscellaneous traveling expenses, etc. These cash allowances,
the total of which may not exceed $100 for any employee, are granted
for the purpose of rehabilitation of these ex-employees in their native
countries.
During the fiscal year 1937 approximately $2,624 was expended on
the repatriation and rehabilitation of 75 former employees accom-
panied by 38 members of their families. There is an increasing reluc-
tance on the part of these people to accept repatriation due to the
increasingly long period that they have resided on the Isthmus, and
due to a belief that their children have somewhat greater opportunity
for employment here than in the native land of their parents.
Including those handled in 1937, approxima tely 1,067 persons have
been repatriated since the appropriation became available. These
included 529 employees and 538 members of employees' families.
Approximately $38,624 of this fund has been expended at an average
expenditure (transportation plus cash allowance) of $36.18 per person
repatriated, and an a,,rnge cost of $72.80 per employee repatriated.
The Canal will continue to offer the opportunity of repatriation and
a sum for rehabilitation in their home country to former employees
with at. least 3 years'service while the fund lasts. This mayrelieve
slightly the unemployment situation on the Isthmus but will have
relatively little permanent effect under present conditions because
of the relatively high birth rates among the tropical inhabitants.
UNEMPLOYMENT
Although economic conditions on the Isthmus outside of the Canal
Zone have improved considerably in the past year, there is still a con-
siderable amount of imnemployment of both native labor and American
labor. The tropical population increases at a rate perhaps adjustable
to a primitive or agricultural situation, but too rapidly to be assimi-
lated into the present stage of manufactures and other industries in
the cities of Panama and Colon, adjacent to the Canal Zone, and for
the almost stationary labor needs of the Canal and its adjuncts. The
American population of occupationally untrained persons is also in-
creasing more rapidly than the desirable opportunities for employ-
ment. The local high schools graduate each year approximately 240
young men and women. A considerable number of these graduates





REPORT OF GOVERNOR OF THE PANAMA CANAL


immediately seek employment with the Canal, and suitable vacancies
for such applicants are extremely limited.
The apprentice-learner program discussed on page 73 of this report
tends to relieve this situation somewhat as regards the young American
population.
EXPERIMENT GARDENS
The Canal Zone plant introduction gardens and experimental sta-
tion were established in June 1923. The gardens, which include
greenhouses, nurseries, and experimental plantings embrace approxi-
mately 125 acres of land, and are devoted to the propagation and
cultivation of a very wide variety of useful and ornamental plants
from all parts of the world, primarily for the purpose of determining
their adaptability and value under local soil and climatic conditions
for general propagation on the Isthmus.
The personnel attached to the gardens prepares all landscaping plans
and supervises the plantings for the Panama Canal, and also handles
the trimming or removal of all trees within townsites and along
highways in the Canal Zone.
While the work at the experimental gardens is under the super-
vision and direction of the Governor of the Panama Canal, neverthe-
less many activities are carried on in close cooperation with the United
States Department of Agriculture, and the Canal Zone experimental
gardens function much the same as would a tropical station of the
Agricultural Department.
Plant exchanges are carried on continuously with other experimental
stations, botanical gardens, and with individuals in various parts of
the world with a view to. the development and dissemination of
species that show the greatest promise of value from an economic
viewpoint. The work is being carried forward under the direction of
specially qualified men who have had broad experience in this work,
one of whom had more than 25 years' experience in similar work in
Puerto Rico, Hawaii, and the Philippine Islands prior to his being
placed in charge of the gardens on the Isthmus some 10 years ago.
Although the gardens are still comparatively new, they are attract-
ing the attention of visitors from many parts of the world. The
value of the work from an economic viewpoint potentially is very
great. Particular attention has been and willcontinue to be given
to the propagation of plants valuable for their edible fruits, such as
bananas, pineapples, papayas, avocados, mangoes, oranges, grape-
fruit, limes, etc. Considerable attention also is being given to plants
which are of value to industry. Experimental plantings of rubber
trees (Hevea Braziliensis), manila hemp (Alusa Textilis), kapok
(Ceiba aesculaefolia), teak trees (Tectona Grandis), cashew nut (Anacar-
dium occidentale), etc., have given such promise relative to the local
adaptability of species of commercial value that a number of private





REPORT OF GOVERNOR OF THE PANAMA CANAL


commercial interests in the United States, including one of the large
rubber companies, have become interested and in some instances
taken active steps toward the establishment of commercial plantings.
The Napier grass (Pennisetumin purpureum) introduced by the gar-
dens from the United States Department of Agriculture in 1923, has
proved to be of considerable value to the Panama Canal's own dairy
industry at Mindi. The grass grows so rapidly that 200 acres of this
grass supply the 1,200 head of cattle with pasturage.
Through the sale of plants, the gardens are partially self-supporting.
During the past year more than 34,000 fruit trees, ornamental shrubs,
etc., were distributed from the gardens, approximately two-thirds of
which were transplanted in various communities in the Canal Zone.
The original plan provided that the experiment gardens would be
financed from land rent collections, and the gardens were thus opera ted
for several years without appropriation by Congress. Since 1931,
however, the revenue from rents has seriously declined as a result of a
change in policy prohibiting the licensing or transfer of any more land
in the Zone. In cases where the licensees died or released their land,
no renewals were made. By the end of 1933 it was necessary to secure
additional funds to preserve valuable plants and trees at the gardens
and to continue its most essential functions. An appropriation of
$5,000 was allowed each year from 1934 to 1937, when it became
necessary to appropriate an additional $5,000 due to further decline
of land rentals.
The land rent collections will continue to decline until, a after a period
of years, no revenue will be derived from this source. In order to keep
the experiment gardens in operation on a bUsis of necessary activities
during the fiscal year 1939, an appropriation of $15,000 will be
required.
CLUBHOUSES AND PLAYGROUNDS
During the construction of the Panama Canal, recreational and
welfare activities for Canal employees were conducted by the Y. M.
C. A. with the financial support of the United States Government.
These activities when carried forward into the permanent organization
were placed under the bureau of clubs and playgrounds. Eventually
many diversified activities, such as kindergartens, physical education,
motion pictures, restaurants, soda fountains, candy and cigar stands,
etc., were assigned tolthe bureau. Due to the expansion in activities,
some of which were of a business or commercial character, in January
1936, after a detailed study, the activities of the bureau were sub-
divided into two units, as follows:
(,.) The clubhouse subdivision which operates restaurants, soda fountains,
newsstands, candy and cigar counters, moving-picture theaters, billiard and pool
rooms, bowling alleys, and swimming pools, and in which the patronage is re-
stricted to Government personnel and their families. This subdivision is self-
supporting and no appropriations are required for the activities carried forward.





REPORT OF GOVERNOR 'OF THE PANAMA CANAL


(b) The playgrounds subdivision, maintained with appropriated funds, which
provides facilities for, and promotes and supervises such activities as physical
education, swimming, baseball, basketball, handball, football, tennis, boxing,
fencing, archery, athletic meets, pageants, etc.

CLUBHOUSE SUBDIVISION'

As private industry is not permitted in the Canal Zone, the Gov-
ernment is under the obligation of operating restaurants, motion-
picture theaters, and other activities for which there is a community
demand. A considerable number of these activities has been
placed under the clubhouse subdivision of the bureau of clubs and
playgrounds for the reason that their centralization under one roof
greatly facilitates administration and tends toward a lowering of
operating costs. The activities in this unit have been placed on a
businesslike basis, and the results of operations over the past year
were entirely satisfactory. The volume of business transacted showed
a substantial increase over the preceding year, which may be attrib-
uted in part to an increase in Government personnel and in part to
the general improvement in facilities and services provided.
New and up-to-date kitchen and display equipment was installed
in the restaurants. Although raw food prices increased approxi-
mately 7 percent during the year, menu prices were not increased nor
were portions reduced. Merchandise sales made a substantial
increase, part of which was due to the greater number of magazines
and other periodicals stocked during the year.

SUBDIVISION OF PLAYGROUNDS

When the United States Government embarked upon the Canal
project in 1904, it was necessary to bring many thousands of em-
ployees from the United States and from the West Indies to the
Isthmus. In the absence of proper recreational facilities in.the
Canal Zone, or in the cities of Panama and Colon under Panamanian
jurisdiction, the Government embarked upon the policy of providing
wholesome amusement and recreational facilities in each of the
Canal Zone villages, similar to those provided in the District of
Columbia and by many communities in the States, and likewise
corresponding with those provided by foreign corporations operating
in the Tropics.
Climatic conditions on the Isthmus and the ever-present danger
of contracting malaria, dysentery, and other tropical diseases, when
recreation is sought outside of the sanitated areas adjacent to the
Zone villages, make the matter of providing adequate recreational
facilities to Government personnel and their families of considerably
greater importance than in communities in the States. In the ab-
sence of such facilities many employees undoubtedly would seek





REPORT OF GOVERNOR OF THE PANAMA CANAL


diversion and entertainment in unhealthy and undesirable ways and
places.
The appropriation for playground activities covers the salaries of
physical directors and directresses, kindergarten teachers, swimming
instructors, and playground attendants, and also provides funds for
the maintenance of playgrounds, gymnasiums, ball diamonds, tennis
courts, running tracks, and similar facilities, and for the purchase of
playground and physical education equipment. Some of the recrea-
tional activities are partially self-supporting, but they cannot be made
wholly so without greatly curtailing their scope and thus lessening
the benefits now being derived through their extensive use.
The physical instructors and other personnel employed in the
playground unit, in cooperation with the division of schools, have
charge of the physical education program for all grammar, high school,
and junior college students in the Zone schools; conduct kinder-
gartens for children of Government employees, and furnish active
leadership and guidance to such organizations as the Boy Scouts,
Girl Scouts, Sea Scouts, etc.
The recreational facilities provided by the playground subdivision
are used extensively, not only by the civilian employees and their
families, but also by the United States defense forces stationed on
the Isthmus. Practically all facilities are utilized to their capacity
during visits of units of the United States Navy. The cost of these
physical and recreational facilities is more than repaid in increased
efficiency and morale of the organization and in the improved general
welfare and health of the entire Canal Zone population. There is
ample justification for the continuation of reasonable expenditures,
such as have been made in the past.
LEGISLATION
The last year has been a particularly active one so far as concerns
legislation relating to or affecting the Canal-Railroad. Several bills
embodying important changes in the law affecting Canal-Railroad
interests were enacted during the first session of the Seventy-fifth
Congress and a number of other important measures were still pend-
ing at the end of the fiscal year. There follows below a review of
legislation of special importance to the Canal enterprise which has
been before the Congress during the year.

ABOLISHMENT OF DUAL MEASUREMENT FOR TOLLS
For 22 years the continued operation of the dual measurement
system for determining the amount of tolls to be charged vessels for
transiting the Panama Canal has been the one outstanding problem
relating to the administration of the aiiffairs of the Canal for which a
definite solution had not been found. However, by act of Congress





REPORT OF GOVERNOR OF THE PANAMA CANAL


(Public, No. 516, 74th Cong.) approved April 13, 1936, legislation
was enacted providing for the appointment by the President of a
"neutral committee of three members for the purpose of making an
independent study and investigation of the rules for the measure-
ment 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 provided that the committee should report to the
President prior to January 1, 1937, and that it should "make such
advisory recommendations of changes and modifications of the
'Rules for the Measurement of Vessels for the Panama Canal' and
the determination of tolls as it finds necessary or desirable to pro-
vide a practical, just, and equitable system of measuring such vessels
and levying such tolls."
Pursuant to this legislation the President appointed a committee
of the following three members:
Dr. Emory R. Johnson, Wharton School of Finance and Commerce, Univer-
sity of Pennsylvania, chairman.
Hon. Arthur J. Weaver, Falls City, Nebr., former Governor of Nebraska.
Rear Admiral George H. Rock, United States Navy (retired), Webb Institute
of Naval Architecture, New York City.
This committee made a thorough study of the subject and rendered
a report which was transmitted to the Congress on February 26, 1937,
by the President, with a message in which the President stated:
I cannot urge too strongly -the enactment of legislation that will so amend
existing law as to provide-
(1) That tolls for the use of the Panama Canal shall be based upon vessel
tonnage determined by the Panama Canal rules of measurement as prescribed
by the President.
(2) That the tolls upon commercial vessels, Army and Navy transports, col-
liers, supply and hospital ships, shall not exceed $1 per Panama Canal net ton,
when such vessels are laden.
(3) That a rate of tolls lower than is levied on laden vessels may be prescribed
for vessels in ballast, without passengers or cargo.
The required legislation was enacted by the Congress (Public, No.
350, 74th Cong., approved Aug. 24, 1937) and on August 25 and 31,
1937, the President issued the necessary proclamations prescribing
and proclaiming the rates of tolls to be paid by vessels using the
Panama Canal and the Rules for the Measurement of Vessels for the
Panama Canal, to become effective on March 1, 1938.

CASH RELIEF FOR SUPERANNUATED NATIVE EMPLOYEES

Legislation authorizing the Governor, under regulations to be pre-
scribed by the President, to pay cash relief to employees not coming
within the provisions of the Canal Zone Retirement Act, who become
unfit for further useful service by reason of mental or physical dis-





REPORT OF GOVERNOR OF THE PANAMA CANAL


ability resulting from age or disease, was passed by Congress in June
1937, and was approved by the President on July 9. This legisla-
tion, which was first considered by the Congress during its last ses-
sion in 1936, provides that. cash relief to the employees affected shall
not exceed $1 per month for each year of service of the employee
concerned, with a maximum payment of $25 per month. Only those
employees who have had at least 10 years' service with the Panama
Canal or Panama Railroad Co. on the Isthmus will be entitled to the
benefits of this legislation.

AUTHORIZING DISPOSAL OF CERTAIN LANDS OF PANAMA RAILROAD CO.

A joint resolution authorizing the Panama Railroad Co. to dispose
of certain lands on Manzanillo Island, Republic of Panama, was
adopted by Congress on June 28, 1937, and approved by the Presi-
dent on July 9. This resolution had previously been introduced
during the previous Congress, but no action was taken thereon.
The purpose of the resolution is to enable the Panama Railroad Co.
to dispose of all lands on the Manzanillo Island which are no longer
required for the uses of the Panama Canal or Panama Railroad Co.

AMENDMENTS TO CANAL ZONE CODE

Three bills making a number of amendments to the Canal Zone
Code were pan;ed by Congress, as follows:
The first bill, introduced at the request of the Canal authorities,.
provided (1) for an v'i.ndment to section 81, title 2, of the code,
confirming the authority of the President to make regulations pre-
scribing conditions of employment for the Panama Canal service;
(2) vested the President with authority to make regulations govern-
ing aircraft, air navigation, and air-navigation facilities in the Canal
Zone and prescribed penalties for the violation of such regulations;
and (3) authorized certain officers of the Panama Canal designated
by the Governor to administer months in inquest and deportation pro-
ceedings. This legislation was approved by the President on July
9, 1937.
The second bill, approved by the President on July 10, 1937, was
sponsored by and introduced at the request of the Bar Association
of the Canal Zone. As enacted, this legislation makes 10 amend-
ments to the code, four of which relate to the Criminal Code and
Code of Criminal Procedure, and the other six affecting the Civil
Code and Code of Civil Procedure.
The third bill, extending the benefits of the Retirement Act to
certain employees whose services were terminated before certain
amendments to the act became effective, was approved by the
President on August 2, 1937.





REPORT OF GOVERNOR OF THE PANAMA CANAL


ADDITIONAL LEGISLATION

In addition to those previously mentioned, the following bills were
also enacted into law prior to the adjournment of Congress:
A bill to clarify the law respecting the citizenship of children born
on the Isthmus of parents who are citizens of the United States,
approved by the President on August 4, 1937. This act provides
that any person born in the Canal Zone on or after February 26, 1904,
whose father or mother or both at the time of the birth of such per-
son was or is a citizen of the United States, is declared to be a citizen
of the United States. A person born in the Republic of Panama in
the same circumstances is also declared to be a citizen of the United
States if his father or mother was at the time of the birth of the
child employed by the Government of the United States or by the
Panama Railroad Co.
A bill providing for the amendment of the law authorizing the
appointment of a cadet at the United States Military Academy, by
making eligible for such appointment the sons of employees of the
United States Government and of the Panama Railroad Co. residing
within the Republic of Panama. This legislation was initiated by
the Canal administration, and was approved by the President on
July 26, 1937.
MISCELLANEOUS LEGISLATIVE MATTERS

Bills providing for the reorganization of the executive departments
of the Government were carefully reviewed and studied with a view
to ascertaining their probable effect on the Canal-Railroad organ-
ization.
It is most important that in the consideration of any legislation
providing for the reorganization of the various agencies of the Gov-
ernment, cognizance should be taken of the special character of the
organization set up by Congress by the Panama Canal Act in 1912
for the operation, maintenance, sanitation, and defense of the Panama
Canal. This was determined by Congress after long and deliberate
consideration of the trying experiences of the construction period.
The report on the Adamson bill, which was enacted as the Panama
Canal Act in 1912, pointed out the desirability, based on experience
gained during the construction period, of vesting control of the oper-
ation of the Canal in a single responsible head.
The Panama Canal organization is composed of many interrelated
and highly specialized activities in the field of commerce, industry,
and government, which are required to function under unified control
as a single unit in order to perform efficiently the primary functions
of the Panama Canal, which are to provide for the expeditious and
safe transit of the vessels of the world through the Canal, to provide
for the needs of these vessels, to provide for the protection of the Canal





REPORT OF GOVERNOR OF THE PANAMA CANAL


in time of emergency, and the maintenance of the Canal and the gov-
ernment and sanitation of the Canal Zone.
Recognizing that the uninterrupted operation of the Pan-ra Cf.nal
in the event of a national emergency would be of prirrary im-portance
to the Nation, Congress wisely provided the means for efl'cctimg a
speedy transition of the Canal operating organization frcm.-n peace to
wartime status with the least possible disruption cf the prin .rvy
commercial function of the Canal. This is wade possible by the
assignment of Army and Navy officers io stratgc.c positions at the
head of several of the more important units of the Car.al orgAdniza-
tion. This plan of organization. which had hcbeen forn. i;lated with
great care by Congress before its inclusion in the Parai a. Crn.l Act,
received a thorough test during the World War and entirely fI!f lled
its exacting requirements. It is a fact of great siLT.ificarce that the
regularly established organization operated so satis fictoi ily du ing
the World War that no changes in the Pananrr a Ccnal Act were found
to be necessary as a result of extended war experiences.
The various bills for the general reorganization of the executive
departments of the Government have as their primary Cirs en in-
crease in the efficiency and effectiveness of govcrrn cr.ntal t'encies,
such reduction of expenditures as may be consistent with eff:cient
operation, coordination of agencies and functions according to -r ajor
purposes, the reduction of agencies by regrouping or console aticn,
and the elimination of duplication. The Panama Canal organization
was established with these particular objects in view, and experience
over a period of 23 years in the operation of the Canal and the govern-
ment of the Canal Zone demonstrates that these objectives have been
attained.
It is strongly urged that in the formulation of any general legisla-
tion for the reorganization of Government departments full consider-
ation be given to the special functions of the Panama Canal and the
Panama Railroad Co., the efficient operation of which is now well
provided for by existing law. Special care should be exercised to
avoid the lowering of the efficiency of these organizations through the
application of standards prescribed by statutes designed for general
application to agencies exercising ordinary governmental functions
exclusively.
Other bills of lesser importance, affecting the Pannma Canal or the
Canal Zone, were pending in Congress at the end of the fiscal year,
among them the following:
A bill to authorize the appointment to the United States Naval
Academy of a midshipman to be selected from among the sons of
civilians residing in the Canal Zone and the sons of civilian employees
of the United States residing in the Republic of Panama. This bill,
the introduction of which was initiated by the Canal administration,





REPORT OF GOVERNOR OF THE PANAMA CANAL


passed the Senate on June 28, 1937, and was pending in the House
Naval Affairs Co.rmnittee at the end of the year.
A bill passed by lie Senate on June 28, 1937, extends the term of the
judge of the United States District Court for the Canal Zone from 4 to
10 years. The bill was still pending in the House at the end of the year.
A bill to umend the act authorizing the erection of a suitable
me-rorial to Mnj. Gen. George W. Goethals in the Canal Zone, by
authliorizing the appropriation of $160,000, instead of $75,000 for the
purpose, was introduced in the Senate on June 17, 1937, and was
still perdinrg at the end of the year.
A bill to recognize the services rendered by a number of civilians,
officers, and cx.ployees in the construction of the Panama Canal and
to gr.nt then rore liberal retirement allowances was introduced in
the House on May 2S, 1937.
Three hills providing amendments of the Canal Zone Retirement
Act. were introduced during the first session of the Seventy-fifth Con-
gress, two cf which were pending at the end of the fiscal year. One
of thi bills pending provides for optional retirement at the end of
30 years' service, and the other provides annuities for the widows or
other dependents of deceased retired employees. Neither of these
bills ihad Le-n reported to either House at the end of the year.
CAPITAL ALLOTMENTS, FISCAL YEAR 1938
The appropriation for 193S carried $2,252,000 for improvements
and betterments, and for replacement of worn-out or excessively
deteriorated facilities, to which has been added $732,708, representing
the net unexpended balance to cover uncompleted projects carried
forward from 1937, making a total of $2,984,708. From this sum
$201,804, representing balance remaining for projects deferred until
1939, has been deducted which leaves a total of $2,782,904 available
for capital expenditure in the fiscal year 1938, to be allotted as follows:
Gamboa development------------------------------------------ $797,042
Dock 15, Balboa---------------------------------------------- 517,767
Quarters for American employees-------------------------------- 427, 827
Motor transportation shops, Ancon--------------.--------------- 235, 193
Relay barge, 24-inch--.. -------------------------------------- 148,000
Post office, Ancon -----------.------------------------------- 100,000
School shop building, Balboa -----------------------------_----- 76,000
Gymnasium, Balboa-------------------------------- -.-------- 70,000
Madden Dam Reservoir----------_------.---------------------- 66,256
Municipal work for quarters, Ancon ----------------------------- 62, 000
Post office, Balboa-----------.-----..-------..---..--------..-------- 8,925
Playshed, Gatun ---------------------....-----------------------......................- 35,000
Extension of electrical and water-supply system ------------------- 30, 000
Ward building, Palo Seco. .------------------------------------ 26,000
Water mains to tank farms- ----------------------------------.. 25,000
Miscellaneous -------------------------.----------- ----------107, 894
Total----------------------------.....---....---..----------- 2,782,904





REPORT OF GOVERNOR OF THE PANAMA CANAL


Gamboa derclopment.-This is a continuation of the general project
which started late in.the fiscal year 1935. The headquarters of the
dredging division of the Panama Canal have been moved from
Paraiso, which is at the south end of Gaillard Cut, to Gamboa, which
is at the junction of the Chagres River and the Panama Canal. This
new location provides more ample roadstead for floating equipment,
and lies on the Gatun Lake side of the cut, thereby affording access to
unlimited dumping grounds in case of a major slide in the cut. Ex-
penditures for the fiscal year 193S involve a continuation of the munici-
pal work for the new town site and the construction of other facilities
for the dredging division plant and personnel.
Dock no. 15, Balboa.-This is a continuation of work started in the
fiscal year 1936. Necessity for the reconstruction of this dock was
explained on page 118 of the annual report for the fiscal year 1936.
This project constitutes the replacement of old dock no. 15, originally
constructed in 1911, but which had become weakened by a gradual
earth movement to the extent that it was no longer considered safe.
Quarters for Americon employees.-The amounts allotted for 1938
and the sums to be requested in the succeeding years are urgently
needed to continue the replieevinent of old and dilapidated frame
buildings which were constructed either by the French Canal Co. or
during the earliest days of American occupation of the Canal Zone.
The program outlined by the Canal administration calls for $500,000
each year for replacement of old quarters, although $600,000 or
$700,000 annually would produce greater economy in the end. (The
need for replacing a number of the old quarters now in use is set forth
in greater detail on pages 55 to 57 of this report.)
Motor transportation shops, Ancon.-This is a continuation of work
started last year. The new structures, which are to include modern
garage shops and equipment, roadways, fencing, etc., are to replace
structures which were gradually converted from an animal corral built
during Canal construction. When originally constructed this corral
was well beyond the nearest residential area, but the site is now sur-
rounded by family quarters, and is on the main thoroughfare between
the Ancon and Balboa districts. It has long been recognized that the
present location is unsuitable, but removal has been delayed as long as
possible, in order to exhaust the useful life of the existing structures.
Relay barge (24-inch).-Available dumps for the hydraulic dredging
which is necessary for channel maintenance are now so far removed and
are at such elevations that relay booster pumping has become increas-
ingly necessary. The present relay barge and equipment are 25 years
old, with only 20-inch line capacity and cannot be used with the 24-inch
hydraulic dredge Las Cruces now in operation. The construction of a
relay barge of 24-inch line capacity with necessary pumping equip-
ment will be begun in 1938, and completed during 1939.





REPORT OF GOVERNOR OF THE PANAMA CANAL


Post office, Ancon.-The present post office in Ancon is housed in a
two-story frame building erected in 1907. Termites are gradually
undermining the structure and the extensive repairs necessary to keep
this inadequate building in service are unjustified. It is proposed to
erect a permanent building of concrete 90 by 77 feet, tile roof, one-story,
with suitable partitions and counters, and with a truck shelter and
platform in the rear 47 by 28 feet.
School shop building, Balboa.-The present building used for voca-
tional training in the Canal Zone schools is a makeshift frame structure
in a very deteriorated condition and is inadequate for its purpose, as
it affords facilities for woodworking equipment only. It is proposed
to erect a building 50 by 100 feet, with concrete slab floor, concrete
supports, and halfway outside walls with upper part of heavy wire
mesh and a galvanized iron roof on frame supports. Equipment for
metal-working will include lathe, shaper, milling machines, drills, and
grinder; the woodworking equipment will include bench and hand tools
and also machine tools such as a planer, joiner, band saw, shaper,
lathes, sander, and circular saw; for electrical work there will be pro-
vided motor generator sets, switchboard apparatus, and hand tools;
and for auto mechanics, the necessary tools and appliances to demon-
strate the general characteristics of gasoline motors. These facilities
will serve approximately 180 high-school and junior high-school
pupils and some 20 junior college students, who are expected to take
vocational courses; the laboratory to be provided for testing materials
will be used extensively in chemistry and physics courses and the shops
will also be available for special instruction of apprentices.
Gymnasiumn, Balboa.-The purpose of this building is to provide
adequate gymnasium facilities for the students in junior college and
high school.
Madden Dam Reservoir.-The amount allotted for this project in the
fiscal year 1938 provides for tests and possible clay grouting of the
ridges bounding the reservoir. All of this work is an integral part of
the construction of the dam.
Municipal work for quarters, Ancon.-This is to provide building
sites, including roads, water lines and sewers for a group of quarters
to be located adjacent to Gorgas Hospital for use of the hospital
medical staff. It is a part of the program of replacement of obsolete
gold quarters in the Ancon-Balboa area and provides additional space
needed for construction of quarters of the new type.
Post office, Balboa.-This is a continuation of work started last'year.
The new post-office building being erected at Balboa is to replace an
old frame building originally constructed in the former town of
Gorgona in 1907. Termites have attacked the stringers, floors, and
beams and the building is not worth the excessive cost of repairs


23094-37- 7





REPORT OF GOVERNOR OF THE PANAMA CANAL


necessary for continued use. The new structure is to be of concrete
approximately 100 by 60 feet, with a 40-foot L, one-story, and with a
tile roof.
Playshed, Gatun.-This will constitute replacement of the present
frame structure which is old, termite-infected, and beyond economic
maintenance.
Extension and improvement of electrical and water-supply system.-In
many cases it is necessary to erect new buildings, particularly em-
ployees' quarters, in new locations, which requires service extensions
of the electrical and water-supply systems. Electric ranges and
water heaters are also installed in new quarters on a rental basis which
gives a reasonable return on the investment.
Ward building, Palo Seco.-The existing ward buildings at this leper
colony have reached a state of deterioration where it is uneconomical
to continue to maintain them. In addition to this the wards are
overcrowded, which hampers proper separation of sexes, isolation of
tuberculous patients and segregation of healing or arrested cases. It
is proposed to erect an additional ward in 1938, consisting of concrete
beams and columns, supporting a two-story wooden superstructure,
116 by 24 feet, with concrete extension for toilets, 13 by 11 feet, and
with a galvanized roof. The building to be erected in 1938 will
provide for 20 patients; the building estimated for 1939 will provide
for 24 more patients.
Water mains to tank farms.-Recent fire-inspection tests have
developed that increasing general requirements of water service have
reduced the water pressure at the oil-tank farms to a point where it is
now inadequate for minimum fire protection, and there is now no
provision for extra streams necessary to cool tanks adjacent to any
other tank which may be in flames. Additional installation at Balboa
is estimated to cost $18,000 and covers 4,100 feet of 12-inch cast-iron
pipe, with necessary fittings, between the existing line at the Balboa
Road anid the east end of the line crossing the Canal. This installa-
tion will also provide better pressure and greater volume of water for
the west side of the Canal, particularly for the new naval station
under construction. Installation at Mount Hope is estimated to cost
$7,000 and covers 850 linear feet of 16-inch cast-iron pipe, with neces-
sary fittings to extend from Mount Hope filtration plant to the tank
farm.
GENERAL PROGRAM
During each of the past several years the Canal Administration has
given considerable study to all phases of Canal activities with a view
to developing and carrying forward a comprehensive building and
construction program, with advance planning extending some 10 years
in the future. These studies have been carried out in order that the
more pressing needs of the Canal project in the way of replacements,




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