• TABLE OF CONTENTS
HIDE
 Front Cover
 Front Matter
 Frontispiece
 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 ..
ALL VOLUMES CITATION PDF VIEWER THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00097365/00023
 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: 1938
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: VID00023
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 ...

Downloads

This item has the following downloads:

Binder21 ( PDF )


Table of Contents
    Front Cover
        Front Cover 1
        Front Cover 2
    Front Matter
        Front Matter
    Frontispiece
        Frontispiece
    Title Page
        Page i
        Page ii
    Table of Contents
        Page iii
        Page iv
        Page v
        Page vi
    Introduction
        Page 1
        Page 2
        Page 3
        Page 4
    Section I: Canal operation and trade via Panama
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
        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
        Page 55
        Page 56
        Page 57
        Page 58
        Page 59
        Page 60
        Page 61
        Page 62
        Page 63
        Page 64
    Section III: Administration
        Page 65
        Page 66
        Page 67
        Page 68
        Page 69
        Page 70
        Page 71
        Page 72
        Page 73
        Page 74
        Page 75
        Page 76
        Page 77
        Page 78
        Page 79
        Page 80
        Page 81
        Page 82
        Page 83
        Page 84
        Page 85
        Page 86
        Page 87
        Page 88
        Page 89
    Section IV: Government
        Page 90
        Page 91
        Page 92
        Page 93
        Page 94
        Page 95
        Page 96
        Page 97
        Page 98
        Page 99
        Page 100
        Page 101
        Page 102
        Page 103
        Page 104
        Page 105
        Page 106
        Page 107
        Page 108
        Page 109
        Page 110
    Section V: Financial and statistical statements
        Page 111
        Page 112
        Page 113
        Page 114
        Page 115
        Page 116
        Page 117
        Page 118
        Page 119
        Page 120
        Page 121
        Page 122
        Page 123
        Page 124
        Page 125
        Page 126
        Page 127
        Page 128
        Page 129
        Page 130
        Page 131
        Page 132
        Page 133
        Page 134
        Page 135
        Page 136
        Page 137
        Page 138
        Page 139
        Page 140
        Page 141
        Page 142
        Page 143
        Page 144
        Page 145
        Page 146
    Index
        Page 147
        Page 148
        Page 149
        Page 150
        Page 151
        Page 152
        Page 153
        Page 154
        Page 155
        Page 156
        Page 157
        Page 158
        Page 159
        Page 160
        Page 161
        Page 162
        Page 163
        Page 164
        Page 165
        Page 166
    Back Cover
        Page 167
        Page 168
Full Text
















UNIVERSITY
OF FLORIDA
LIBRARY


I 1












































Digitized by the Internet Archive
in 2010 with funding from
University of Florida, George A. Smathers Libraries with support from Lyrasis and the Sloan Foundation


http://www.archive.org/details/annualreportofgo1938cana











ANNUAL REPORT
OF THE


GOVERNOR OF


THE PANAMA CANAL

FOR THE

FISCAL YEAR


ENDED JUNE 30

1938


UNITED STA ['ES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1938


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






TABLE OF CONTENTS

Pagr
Introduction---------------------------------------------------- 1
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 ----------------------------------------- 3
Replacements-------------------------------------------------_ _

SECTION I.-CANAL OPERATION AND TRADE VIA PANAMA CANAL

Statistics of Canal trli------------------------------------------- ______________________ 5
Canal trnflic iv fiscal years 1915 to 1938------------_________-------------____ 8
Traffic by months-fiscal years 1937 and 1938_--------------------- 8
Tanker traffic------------------------------------------------- 9
Nationality of vessels Iran itini Canal--------------------------- 11
Cargo carried by vessels of leading maritime nations--------------- 12
Vessels paying tolls on displacement tonnage---------------------- 12
Vessels entitled to free transit----------------------------------- 13
Small commercial vessels transiting Canal ------------------------ 13
Cargo shipments eerim..tetd by principal trade routes-------------- 14
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
Gross tonnage of vessels---------------------------------------- 27
Summary of p.aeenr'er movement at Canal during 1938------------ 29
Transient passengers-----------------------------_____--------- _29
Inauguration of new rules of measurement and rates of tolls ------------ 30
Canal operation and maintenance------------------------------------ 31
Hours of operation-------------------_________-------------------------- 31
Operating schedules of locks-------------------------------- 32
Lockages and lock maintenance--------------------------------- 32
Power for Canal operation---------------__-----------------------__ 33
Water supply --------------------------------------------__________----- 35
Dry season, 1938------------------------------------------ 36
Floods------------------------------------------------__ 36
Madden Lake----------------------------------------- 36
Madden Dam------------------------------------------------- 37
Maintenance of channel---------------------------------------- 37
Ordinary channel maintenance------------------------------ 38
Special maintenance projects------------------------------___ 39
Slides---------------------------------------------------- 40
Subsidiary dredging division activities------------------------ 41
Equipment_----------------------------------------------- 42
Ferry service-------------------------------------------------- 42
Marine activities ---------------------------------------------- 43
Aids to navigation -----------------------------.-----------. 43
Accidents to shipping -------------------------------------- 44
Salvage and twi -------------------------------------______ 44
Mefe irology--hydrology-seismology ---------------------------- 44


il4116b





IV CONTENTS

SECTION II.-BUSINESS OPERATIONS
Page
Panama 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
Quarters for employees ----------------------------------------- 55
Replacement of quarters for American employees- ----------------- 56
Motor transportation -__-----_____-------------------__----------------- 58
The Panama Canal Press- -------------------------------------- 58
Revenues derived from the rental of lands in the Canal Zone -------- 58
Business operations under the Panama Railroad Co -------------------, 59
The Railroad Line -_------------------------------------------ 60
Receiving and Forwarding Agency------------------------------- 60
Coaling plants---_--------------------------------------------- 61
Telephones and telegraphs -------------------------------------- 61
Real estate operations------------------------------------------ 61
Commissary division--_----------------------------------------- 62
Purchases ------------------------------------------------ 62
Manufacturing and other plants- ---------------------------- 63
Hotels ------------------------------------------------------ 63
Mindi dairy --------------------------------------------------- 63
Panama Railroad Steamship Line -------------------------------- 64

SECTION III.-ADMINISTRATION

Departments --------------------------------------------------- 65
Operation and maintenance------------------------------------- 65
Supply ----------------------------------------------------- 65
Accounting------------------------------------------------ 65
Executive ------------------------------------------------- 66
Health ------------------------ ---------------------------- 66
Panama Railroad Co------------------------------------------- 66
Changes in administrative personnel --------------------- ----------- 66
Employees-------------------------------------------------------- 67
Personnel administration ------------------------------------------ 68
Gold (- i nplI\ v-e--------------------------------------------------- 69
Recruiting and turn over of force -------------------------------- 70
Apprentice-learner program- ------_---------------------------- 71
Wage adjustments ------------------------------------------ 71
Silver employees--------------------------------------------------- 72
Wage adjustments -------------------------------------------- 73
Applicants found eligil le for rimpiie mi it ----------------------- 74
Repatriations __-------------------------------------------- 74
Cash relief for disabled employees ------------------------------- 75
Panama Railroad superannuated employees_----------------------- 76
Unemployment _____------------------------------------------------ 77





CONTENTS V

Page
Experiment gardens--------------------------------------------- --- 77
Clubs and playgrounds--------------------------------------------- 79
Clubhouse subdivision ------------------------------------------ 79
Subdivision of playgrounds ------------------------------------- 81
Leiilti t.n r------- -------- --- ------- --------- ---------------- 82
Capital allotments, fiscal year 1939 ---------------------------------- 83
General program ------------------------------------------------ 86
Additional needs _-------------------------------------------- 86
E1iiii ncivring and architectural -d-I.-i ------------------ 87
Staff Agency-Plans Section -_-------------------------------------- 87
Increasing the capacity of the Panama Canal ------------------------- 88

SECTION IV.-GOVERNMENT
Area of the Canal-------------------------------------------------- 90
Population -------------------------------------------------------- 90
Public health------------------------------------------------------ 91
Vital statistics ------------------------------------------------ 93
Mlilaria ------_--------------------------------------------- 94
Hospitals and dispersaries------------------------------------ -- 94
Quarantine and immigration ---------------------------_-------- 95
Municipal eligslievC'riIg.E ----------- -------------- ---_----- 96
Testing laboratory -------------------------------------------- 96
Water system------------------------------------------------- 96
Sewer systems ---------------------------------------------- 97
Roads, streets, and sidewalks ------,---------------------------- 97
Gamboa project----------------------------------------------- 98
Dock 15, Balboa_------------------------------------------- --- 98
Cities of Colon and Panama------------------------------------ 99
TMiscvll1-ainous projects ----------------------------------------- 99
Public order ---------------------- ------------------------------ 99
Fire protection---------------------------------------------------- 101
Magit rates' courts ------------------------------------------------ 102
Balboa ------------------------------------------------------ 102
Cristobal----------------------------------------------------- 102
Pardons and reprieves---------------------------------------------- 102
Public-school system-- ----------------_---------------------------- 102
Postal system ------------------------------------------------ ----104
Air mail------------------------------------------------------ 106
Im n igratioii visas ------------------------------------------------ 106
Relations with Panama--------------------------------------------- 106
Customs---------------------------------------------------------- 107
Sl iiI]i ijg commissioner -------------------------------------------- 107
Administration of estates---------_---_-------------------------- ----108
Licenses and taxes---------------_---------------------------------- 108
Foreign corporations----------------------------------------------- 109
Insurance -------------------------------------------------------- 109
Commercial aviation ----------------------------_----------------- 109

SECTION V.-FINANCIAL AND STATISTICAL STATEMENTS

Accounting system-- ----------------------------------------------111
Operations of the Panama Railroad Co----- __-------------------------- 112
Panama Canal operations------------------------------------------- 112
Index to tables--------------------------------------------------- 113
(Financial tables) _-------------------------------------------- ---- 114













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.
Designing engineer, report of.
Dredging division, report of superintendent.
Plans section, report of chief.
Assistant engineer of maintenance, report of.
Electrical division, report of electrical engineer.
Municipal engineering division, report of municipal engineer.
Locks division, report of superintendent.
Office engineer, report of.
Section of suiir% 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 piyr.enr iir1., 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.
Real estate section, report of chief.
Washington office, report of chief of office and general purchasing officer.
Pardon board, report of chairman.
Aeronautical inspector, report of.
General counsel, report of.











ANNUAL REPORT


OF THE

GOVERNOR OF THE PANAMA CANAL


BALBOA HEIGHTS, CANAL ZONE,
September 22, 1938.
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, 1938.
Respectfully,
C. S. RIDLEY, CGoivrnor.

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 imnme(liate supervision of the administration of these various
activities rests with the heads of the nine major departments and divi-
sions 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 Pananma 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 trnific as presents itself for
transit with a maximum of safety and a minimum of delay. Essen-
tially this involves the maiintenance of the waterway, the operation
of the locks, and the control of traffic through the Canal. Throughout





REPORT OF GOVERNOR OF THE PANAMA CANAL


the year the Canal force maintained its high standard of expeditious
service not only in the actual transiting of ships but in providing
emergency repairs, fuel, supplies, and the various supplementary
services incidental to shipping. There were no interruptions to traffic
during the year.

OPERATION OF AUXILIARY ENTEnePRISES-BUSINESS OPERATIONS

Secondary only to the operation of the Canmal is the function of
supplying various services to shipping. Commerce requires at the
Canal certain adjuncts essential to shipping, such as fuel oil and coal-
ing plants, storehouses for foodstuffs, ship chandlery, and other essen-
tial 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 New York and Panama,
quarters and commissaries for the operating force, and other adjuncts
essential to the economical and efficient operation of the Canal.
These services, under coordinated and centralized control, are pro-
vided 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 eco-
nomical 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 mainte-
nance 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 eco-
nomical 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 1938 with the 2 years immediately preceding:






REPORT OF GOVERNOR OF THE PANAMA CANAL


Fiscal year Fiscal year I -1 Il year
1936 1937 1938

Transits of Canal by o'.ii-.pi.-g ships paying tolls ---. 5,382 5,387 5,524
Transits of small c(.miMrlurvi.l iraflic not counted in
ocean-going traffic------------------------------------ 621 807 931
Free transits of U. S. Army and Navy vessels, Colom-
bian Government war vessels, vessels for repairs, etc.. 450 501 476
Total transits------------------------------------- 6,453 6,695 6,931
Number of lockages during year:
Oatun Locks-------------------------------------- 5,334 5,504 5,651
Pedro NMI; -- Il Locks-------------.------------------- 5,548 5,735 5,870
Miraflores Locks---------------.--.----- -------------- 5, 538 5, 608 5, 813
Tolls levied on ocean vessels-.--..-------.-------------. $23, 479, 114. 21 $23, 102, 137. 12 $23, 169,888.70
Tolls on small commercial vessels----.-------------------. 31, 512. 65 45, 503. 34 45, 318.69
Total tolls-----..---------------------------..23, 510, 626. 86 23, 147, 640. 46 23, 215, 207. 39
Cargo piDinL tl rnilh Canal (tons)-----..------.-------- 26,505,943 28,108,375 27,385,924
Net 1ii iig1 .I alnIi & Canal measurement) of transiting
vessels---. ----------------------.-------------------- 28,024,417 27,491,622 128,058,109
Cargo per Panama Canal net ton of ocean vessels, laden
vessels only-------------------........ --------------------- 1.083 1.188 1.123
Average tolls per ton of' .,r-.. laden vessels only -----.. $0. 788 $0.722 $0. 750
Calls at Canal ports by -hlps not transiting Canal.---.. 1,008 863 865
C ar .. handled and transferred at ports (tons) ---------- 1, 373, 179 1,446,818 1,530, 287
Coa:l, sales and issues (tons) ----------------------------- 41,813 71,861 103,844
Coal, number of commercial ships bunkered -------.-.- 215 296 312
Fuel oil pumped 'h rrc i ................ ........ 10,068,543 9,033,060 7,487,667
Fuel oil-number '-.f .hip -t'r'e.l othitr th.in V:rl-
operated by the Panama Canal. -------- ------------- 1,674 1,929 1,903
Ships repaired, other than Panama Cian 11 iuiprni,'nt... 594 601 633
Ships drydocked, otherthan Panama C' iiA.l I qil.rnt LT.. 119 120 106
Provisions sold to commercial ships (commissary sales)-- $304, 547. 29 $354, 341. 59 $327, 943. 72
Chandlery sold to ships (storehouse sales) -------------- $46,183.90 $49,904.02 $61,213.12

I As measured under rules in iTtii prior to Mar. 1, 1938.

REVENUES AND EXPENSES

The net revenues from Canal operations proper were $13,909,903.26
as compared with $13,136,585.23 last. year. Net revenues from
business operations under the Panama Canal for 1938 were $824,612.60,
as compared with $917,360.14 in 1937. The combined net revenues
accruing from the Canal and its business units totaled $14,734,515.86,
as compared with $14,053,945.37 in 1937.
The gross capital investment as of the beginning of the fiscal year
was $538,160,472.92 and the net investment $507,666,408.67. Net
revenue for the year 1938 produced a return of 2.90 percent on this
net investment as against 2.77 for the previous year.
The foregoing ficillres do not include the Isthmlian operations carried
on by the Panama Railroad Co., which yielded a net profit of
$1,183,453.40 for the year, as compared with $1,358,595.79 for the
previous fiscal year, a decrease of $175,142.39, or 12.9 percent.

REPLACEMLE.NTS

The past fiscal year marked the close of 24 years of successful
operation of the Panama Canal; in fact, its dependable and efficient
service is now taken for granted.




REPORT OF GOVERNOR OF THE PANA.\MA CANAL


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 approxi-
mately $100,000,000 of general structural values pertaining to non-
business 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,
are still in excellent condition and require but little expenditure for
upkeep; but on others deterioration has ren;ched a point where re-
placement should not longer be deferred. These necessary replace-
ments include not only the frame buildins- originally erected to serve
during the period of the construction of the Canal, but also docks,
highways, etc., which, due to ordinary deterioration and to earth
slides and other unforeseen conditions, have been rendered inadequate
or unserviceable for present requirements or uneconomical to maintain.
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-
tained by the Panama Canal. However, in the Canal icecounts
depreciation charges are made on depreciable property, 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 organization, 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 considera-
tion to the requirements submitted annually by the Governor for
these purposes.











SECTION I


CANAL OPERATION AND TRADE VIA THE PANAMA CANAL
STATISTICS OF CANAL TRAFFIC
The number of ocean-Ioing c(iiommercial vessels milking transit of
the Panama Canal in 1938 ;iggrlCrated 5,524 in cormpariion with 5,387
in 1937, an increci-e of 137, or 2.5 percent. This repreiints a daily
average of 15.13, as compared with 14.76 in 1937, 14.70 in 1936, 14.19
in 1935, and 14.34 in 1934. With respect to the number of triinsits,
the fiscal year 1938 was the fourth highest in thei history of the Canal,
being exceeded only by a total of 6,289 in 1929 (the peak year), 6,253
in 1928, and 6,027 in 1930.
Tolls on the 5,524 transits in 1938 totaled $23,169,888.70, in com-
parisonl with $23,102,137.12 in 1937, an increase of $67,751.58, or 0.29
percent.
C;airgo tonnage, amounted to 27,385,924 in 1938, in comparison with
28,108,375 in 1937, a decrease of 722,451 tons, or 2.6 percent.
Panama Canal net tonniiage on the ocean-going coniiiercial vessels
transiting the Canal during 1938 aggregated 28,058,109 in comparison
with 27,491,622 in 1937, an increase of 566,487, or 2.1 percent. The
tonniige figure for 1938 (28,058,109) indicates the net tonnuge as
determined under the rules of measurement in effect prior to March 1,
1938. A discussion of the new rules of nmeastiriient and rates of
tolls appears on page 30 of this report under the caption of "Inaugura-
tion of New Rules of Mleasiirement and Rates of Toll."
While trnflic for 1938 nmde a slight increase in comparison with
1937 (with the exception of the tonnage. of cargo carried), the traffic
in 1937 had been seriously affected by a maritime strike in the United
States for a period of over 3 months. Had there been no strike, traffic
for 193S would have been substantially lower than for the previous
year.
A brief review of traffic from the opening of the Canal on August.
15, 1914, indicates that there was a gradual growth of traffic starting
with a total of 1,058 tiransits in the fiscal year 1915 and reaching a
total of 6,289 transits 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
1 Includes all tolkll-pa.n me vessels having a measurement of 300 or more net tons (Panama Canal measure-
mentu or 500 or more displacement tons.





REPORT OF GOVERNOR OF THE PA"NAMA CANAL


tons, although the Panama Canal net tonnage of 29,822,122 of the
ships in the fiscal year 1929 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 four years so that the number of transits
was only 4,162 in the fiscal year ended June 30, 1933. Traffic has
gradually increased since 1933 but is still well below the high peaks
reached in 1929 and 1930.
The following table shows a comparison between traffic in the fiscal
years 1938 and 1929, indicating the relationship of these 2 years and
the percentage of 1938 traffic to the peak traffic of 1929:

Number of Panama Canal Tolls Tons of
transits net tonnage cargo

Fiscal year 1929.------.-------------------------- 6,289 29,822, 122 $27, 111, 125 30,647, 768
Fiscal year 1938-------------------------------- 5,524 1 28, 058, 109 $23, 169,889 27, 385, 924
P.rr':! .- of traffic (1938-1929) ----------------- 87.8 94.1 85.5 89.4
1 As measured under rules in effect prior to Mar. 1, 1938.

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 tni ikers
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 562 transits in the past year
(1938), when tankers comprised but 10.2 percent of the total. Mineral
oil shipments caused a very 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 a distinction is made between tankers and all other types of
ships. The tables on pages 10 and 11 of this report segregate traffic
between these two classes of ships.
A decline in the movement of cargo in both directions contributed
to the decrease in cargo tonnage in 1938 as compared with 1937.
West-bound shipments declined 207,072 tons, or 2.1 percent, while
those in the opposite direction fell off 515,379 tons, or 2.8 percent.
Trade between the east and west coasts of the United States has
been for many years the most important route served by the Canal.
In the west-bound movement in the United States intercoastal trade,
cargo shipments decreased 233,228 tons, or 10.0 percent, while the
east-bound movement increased slightly-87,646 tons, or 2.2 percent.
The decreonse in the west-bound movement was largely due to fewer





REPORT OF GOVERNOR OF THE PANAMA CANAL


shipments of manufactured articles and probably reflects the reduced
business conditions in the United States during the past year. Cargo
movement between the United States and the Far East (excluding
the Philippine Islands) showed declines in both directions, the ship-
ments to the United States from the oriental jiitionis declining by
35 percent. Shipments from the United States to the Far East have
constituted the greatest movement over any of the west-bound trades
during the past 2 years. Although very large during the past year,
this trade was some 200,000 tons less than in the previous year due,
principally to a slight decrease in scr;p-iron shipments. The ship-
ments of scrap metal to thle Far East have shown extreme fluctuations.
for the past several years. In August 1937 these reached a total of
168,000 tons, but in the following months declined and in December
1937 consisted of only 500 tons. In the next few months there was
a gradual increase until May 1938, when these scrap shipments totaled
223,000 tons.
In other principal trades declines were recorded in that between
Europe and South America, that between Europe and the west coast
of Canada, and that between the United States and the Hawaiian
Islands. The decline in east-bound movement of cargo between
Canada and Europe was the most pronounced of the declines in these
three trades and may be attributed to the sharp decrease in Canadian
wheat shipments.
Increases were recorded in the trade between the east coast of the
United States and South America, that between Europe and the
United States, that between the United States and the Philippine
Islands, and those between both Europe and the United States and
Austranlasin. The east-bound movement from the United States to
Europe showed one of the biggest of these increases and was due to
the large volume of American whea t shipments, which offset part of
the decline in Canadian wheat shipments. The increase in the east-
bound movement from the Philippine Islands to the United States
was due to more shipments of sugar.
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 1938, transits of local commercial vessels under
300 tons, Panama Canal measurement, numbered 931, on which tolls
of $45,318.69 were paid. Transits of naval and other public vessels
of the United States and Panamanian Governments, war vessels of
the Colomhbian Government, and vessels transiting solely for repairs,
none of which paid tolls, numbered 476, as against 501 for 1937.
The total of all tolls-paying and free transits combined numbered
6,931, in comparison with 6,695 in 1937, equivalent to averages of
18.99 and 18.34 transits per day, respectively.





REPORT OF GOVERNOR OF THE PANAMA CANAL


The receipts from tolls as reported to the United States Treasury
for the fiscal year 1938 were $23,215,192.39. This figure includes
tolls on local commercial traffic amounting to $45,318.69, 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 collec-
tions amounting to $15. These two items account for the difference
of $45,303.69 between the tolls 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.

CANAL TRAFFIC BY FISCAL YEARS 1915 TO 1938

Comparative traffic statistics covering ocean-going vessels for each


fiscal year since the Canal was opened
table following:


to navigation are shown in the


Fiscal year ended June 30- Number of PanamaCanal Tolls Tons of cargo
transits net tonnage

19151 -------------------------------------- 1,058 3,791,770 $4,3f6,747. 13 4,888,400
191 2 -.---.-------------------------------- 724 2, 391, 433 2,403, 0S9. 40 3,093,335
1917----------------------------------------- 1,738 5.791.236 5,620,799.83 7,054,720
1918----------------------------------------- 1, 989 6, *'.-' 864 6,428,780.26 7,525,768
1919 --------------------------------------- 1,948 6,116,877 164, 290.79 6,910,097
1920 --------------------------------------- 2,393 8,538,804 8. 507,938.68 9,372,374
1921------------------------------------------ 2,791 11, 1 '.. 550 11, 268, 681. 46 11,595, 971
1922----------------------------------------- 2,665 11,411,482 11,191,828.56 10,882,607
1923 --------------------------- ------- 3,908 18, 601, 298 17,504, 027.19 19, 566, 429
1924---------------------------------------------------- 5,158 26, 142,021 24,284,659.92 26, 993,167
1925--------------------------------------- -- 4,592 22,847,527 21.393,718.01 23,956,549
1926-------------------------------------------- --- -- 5,087 24, 763, 075 22, Ol'. 931. 89 26,030,016
1927 ..---------------------------------------- 5,293 26,210,623 24, 212', 250.61 27,733,555
1928 ---------- ------------------------------ 6.253 29,43-. 697 26,922.200.75 29,615,651
1929 ----------------------------------- 6.,289 29.,822.122 27,111,125.47 30,647,768
1930 ----------------------------------- ----- 6,027 29, 963, 670 27, 059, 998. 94 30, 018,429
1931------------------------------------- 5,370 27, 773, 037 24,621,599.76 25,065,283
1932 ------------------------------------------ 4,362 23,613.370 20,694,704.61 19,798,986
1933 ----------------------------- ------------- 4,162 22,803,798 19,601,077.17 18,161,165
1934 ------------------------------------------ 5,234 28,550,953 24,047,183.44 24,704,009
1935------------------- ---------------------- 5,180 27, 805, 588 23, 307, 062. 93 25, 309, 527
1936------------------------------------------ 5,382 28,024,417 23,479,114.21 26,505,943
1937---------------------- ----- ------------- 5,387 27,491,622 23,102,137.12 28,108,375
1938----------------.------------------------- 5,524 3 28, 058, 109 23,169,888.70 27, 385, 924
Total--....-------------------------------- 98, 514 477, 918,943 429,385,836.83 470,924,048

I Canal opened to trolc Aug. 15, 1914.
2 Canal closed to traffic approximately 7 months of fiscal year by slides.
As measured under rules in effect prior to Mar. 1, 1938.

TRAFFIC BY MONTHS-FISCAL YEARS 1937 AND 1938

The ocean-going commercial traffic during each month of the fiscal
year 1938 is summarized in the following table, in which are inserted
for comparison corresponding figures for the preceding year:





REPORT OF GOVERNOR OF THE PANAMA CANAL


Number of Panama Canal net Tons of cargo Tolls
vessels tonnage
Month
1936-37 1937-38 1936-37 1937-38 1936-37 1937-38 1936-37 1937-38

.July..------ -------- 456 457 2,364,539 2,395,306 2, 1 11., 324 2,476,366 $1,999, 105. 18 $2, 029,642.45
August------------ 473 505 2,398.306 2,597, 119 2, it*'. 331 2, 780, 603 2,051,540.28 2,195,308. 87
S.u'ltYlber.r---.----- 4'.1 444 2,428,317 2,312,725 2,526,366 2,. 142 2,045,440.82 1,935,673.78
October-.------.---- 12 461 2,499,678 2,359,406 2,463, 069 2,438.788 2,081,758.23 1, .M 1.087. 87
November--------- 368 435 1, 768, 738 2,280, 565 1,747.368 2, 1 '. 283 1, l .. 054. 25 1, *N* 1. 462. 00
December--------- 341 439 1, 655, 501 2,238,271 1, 538,503 2,046, 170 1, 366, 388. 58 1, 845, 018. 20
.January----------- 399 444 1,915, 787 2, 219, lor" 1,855,937 2,095,402 1, .''. 323. 51 1,837,894.72
February---------- 377 436 1 ,' ii1. 611 2. 154, 222 1,839, 788 1,998,827 1, 602, 306. 30 1, 786, 611. 45
March------.------ 536 506 2,770,451 '2,511,674 3,016.418 2,268,548 2,355, 149.01 2,015,585.34
April----------- --- 473 487 2, 460, 549 I 2,438,985 2, ':', 880 2, 279, 235 2, 067, 026. 68 1, 961,456. 58
May-------------- 544 465 2,839, 127 2,322, 612 2, 950,925 2,309, 171 2, 376, 706. 36 1,886,825.66
June-------------- 472 445 2,450,018 2,227,698 2,670,466 2, 122.389 2,070,337.89 1,801,291.78
Total -------- 5, 387 5, 524 27, 491, 622 28, 058, 109 28, 108, 375 27, 385, 2.' I 21. 102, 137. 12 23, 169, 888. 70
Average per month. 449 460 2, 290,969 2, 338, 176 2, 342, 365 2, 282, 1". 1, 925, 178. 09 1, 930, 824.06

1 These fil-ur-. indicate the Panama Canal net tonnage as determined under the rules of measurement in
effect prior 1. '11 ir. 1, 1938. Trii*' Panama Canal net tonnage for these 4 months as determined under the
rules now in effect was as follows: March 1938, 2,311,526; A.1111 1938, 2,258,836; May 1938, 2,150,228; and June
1938, 2,064, 793.

TANKER TRAFFIC

Tanker traffic, which had been such an important component of
Canal traffic during the years 1923 through 1931, has gradually
declined, and during the past year was smaller thln it has been during
any fiscal year since the start of the mineral oil shipments from Cali-
fornia in 1923. Transits of tank ships during the fiscal year 1938
totaled 562, a decrease of 81, or 12.6 percent, in comparison with the
1937 total of 643. Tanker transits in 1938 comprised 10.2 percent
of the total ocean-going commercial transit, made up 11.5 percent
of the total net tonnage (P;i unama. Canal iimeeasureit'enit), paid 12.3
percent of the total tolls collected, and carried 13.1 percent of the
cargo which passedl through the Canal.
Cargo carried through the Canal in tank ships during the fiscal year
1938 amounted to 3,584,615 tons, in comllparison with 4,365,620 in
1937, a decrease of 781,005 tons, or 17.9 percent. Segregation of the
1938 traffic by direction of transits shows that 606,020 tons of tanker
cargo went through from the Atlantic to the Pacific, and 2,978,595
from the Pacific to the Atlantic.
Of the mineral oil cargoes carried through the Canal during the
fiscal year 1938, approximately 38 percent was gasoline, benzene, and
naphtha; 31 percent crude oil; 22 percent Diesel and fuel oils; and the
remainder, 9 percent, lubricating oils and kerosene.
The three tables below, which begin with the fiscal year 1923 and
thus cover the period during which tankers have been an important
component of the traffic through thlie Canal, show the traffic divided
between tank ships and all other oeann-going commercial or tolls-
paying vessels, classified herein as "all other." The tables show the
number and daily averages of the two classes, and of the total; the






REPORT OF GOVERNOR OF THE PANAMA CANAL


quantities and proportion of net tonnages, and the amounts and

proportions of tolls:


Number and daily average transits of tankers and all other carriers


Ocean-going commercial Daily average
transits Daily average
Fiscal year

Tankers All other Total Tankers All other 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
1929------------------------------------ ---- 1,083 5,206 6,289 3.0 14. 2 17. 2
1930------------------------------------ -- 1,218 4,809 6,027 3.3 13.2 16.5
1931------------------------------------------ 944 4.426 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
1934------------------------------------- ---- 942 4, 292 5,234 2.6 11.7 14. 3
1935.--------------------------- ------------ 791 4,389 5,180 2.2 12.0 14. 2
1936.----------------------------- 598 4,784 5,382 1.6 13.1 14.7
1937--------------------------------------- 643 4.744 5,387 1.8 13.0 14.8

1938:
July.------. -------------- ----- ------- 61 396 457 1.9 12.8 14.7
August------------------------------- 71 434 505 2.3 14.0 16.3
September_--------------- ------------ 47 397 444 1.6 13.2 14.8
October --------------------- ----- --- 46 415 461 1.5 13.4 14.9'
November-_--------------- ----------- 44 391 435 1. 5 13.0 14.5
December---------------------- ------ 35 404 439 1.1 13.1 14. 2
January---------------------- -- ------ 39 405 444 1.2 13. 1 14.3
February ---------------- ------------- 33 403 436 1.2 14.4 15.6
March -------------------------------- 39 467 506. 1.2 15.1 16. 3
April --------------------------------- 55 432 487 1.8 14.4 16.2
May ----------------------------- --- 48 417 465 1.5 13.5 15.0
June---------------------------------- 44 401 445 1.5 13.3 14.8

Total -------------------------- ---- 562 4, 962 5,524 1. 5 13. 6 15. 1



Proportions of tanker and all other net tonnage


Panama Canal net tonnage Percentage of total net tonnage
Fiscal year
Tankers All other Total Tankers All other Total


1923----------------------- 5,374,384 13, 226, 914 18, 601, 298 28.9 71. 1 100.01
1924 ---------------------- 10, 212,047 15,929,974 26, 142,021 39. 1 60.9 100.01
1925----------------------- 6,424,622 16,422,905 22,847,527 28. 1 71.9 100.0
1926 ----------------------- 6,343,240 18,419,835 24,763,075 25.6 74.4 100.0
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, 138 23, 399, 532 29, 963, 670 21. 9 78. 1 100.01
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 28,024,417 12.4 87.6 100.0
1937 ----------------------- 3,747,306 23, 744, 316 27, 491, 622 13.6 86.4 100.0'
1938------------------.. ---- 3,219,440 1 24,838,669 1 28,058, 109 11.5 88.5 100.0

1 As measured under rules in effect prior to Mar. 1, 1938.






REPORT OF GOVE.N OR OF THL PAN.\MA.1 CANAL


Proportion of tolls from tank ships and from all other vessels


Tolls paid by shipping using Canal


All other


$12,731,702.56
15, 212, 824. 27
15, 665, 415. 75
17, 293, 763.96
17, 553. 443. 71
21, 485, 763. 59
21, 965, 493. 28
21, 291, 035. 66
19, .1'. 279. 62
17,497, 568.32
16, 207, 766. 15
18, 885, 396. 04
19, 114, 199.84
20, 286, 615. 75
19, 650,365. 47
20, 1'1. 176.91


Total


$17,504,027. 19
24, 2 I1. 659.92
21,393,718.01
22,919,931. 89
24, 212, 250. 61
26,922,200. 75
27, 111, 125. 47
27, 059, 998. 94
24, 624, 599. 76
20, 694, 704. 61
19, 601, 077. 17
24,047, 183. 44
23, 307,062. 93
23, 479, 114. 21
23, 102, 137. 12
23,169,888.70


Percentage of total tolls


Tankers


27. 2
37. 4
26. 8
24. 5
27. 5
20. 2
19.0
21.3
19. 0
15. 4
17.3
21. 5
18.0
13.6
14.9
12.3


All other


72. 8
62. 6
73.2
75. 5
72. 5
79. 8
81.0
78.7
81.0
84. 6
82. 7
78. 5
82. 0
86. 4
85. 1
87. 7


Total


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


NATIONALITY OF VESSELS TRANSITING CANAL


Segregation of the ocean-going traffic through the Cntnal during

the fiscal year 1938, by nationality, is presented in the following table

which shows transits, measurement tonnage, tolls, and tons of cargo:


Ocean-going commercial traffic I through the Panama Canal during the fiscal year
1988, by nationality of vessels


Measurement tonnage
Num-
Nationality her of Tolls Tons of
ships Panama Registered Registered cargo
Canal net 2 gross net


British--------------------------..... 1,281 7,265, 195 8,528.886 5,176,530 $6,095,622.89 6,417,016
Chilean--------------------------............. 9 45,920 59,041 35,649 38, 542. 20 28,787
Chinese--------------------------. 2 7,893 10,025 6,270 7,851.25 13,113
Cuban---------------------------- 2 ........... ............ ............ 1,200. 00 ...
Danish---------------------------.................. 223 !i.9. .14 'y, 5-.' '"n-7 707,358.05 %.'. 235
Estonian-------------------------....................... 2 4,674 6,396 3,946 4, 131.39 4,695
Finnish --------------------------- 1 3,575 4,746 2,889 3,198.60 4,021
French.---------------------------..................... 105 587,292 720,290 400,562 478,537.58 567, 288
German-------------------------. 357 1,461,033 1,701,376 1,005.063 1,219,327.57 1, "1N.593
Greek----------------------------- 94 423,646 489,982 298,333 366. 886.38 525,351
Honduran------------------------....... 22 37.384 58,475 34,176 33,432.02 8,478
Hungarian------------------------........... 5 19.929 20,460 12, 878 15. 938.22 24,411
Italian----------------------------..................... 52 357.925 434,293 257,021 275. 883. 26 153,417
Japanese------------------------- 300 1, 846,345 2,166, 163 1,328,873 1,597,308.26 1,877,502
Latvian .. ....................... .. 3 8,310 9,612 5.625 6,356. 70 4,900
Ntr lib-rlinI...... ................ 285 825,287 914,771 543,373 669,937.78 749, 642
Norwegian------_------------------ 667 3, 289, 366 3, 643, 322 2,179,898 2, 581, 563. 96 3,433,571
Panamanian.. ----------------------....... 182 368, 885 504, 187 286. 529 319, 081. 22 415, 561
Permn Ion .............. ..... 5 9,759 14,260 8,751 9,802.45 7,151
Philippirie Islands----------.------ 3 18,565 21, 463 13, 240 13, 929.30 8,441
Soviet---------------------------- 5 9,525 13,252 8,215 9,315.95 10,419
Spi111-1........................... 2 9,085 12,389 7.495 9,416.25 15,280
Sei I-.. ... ................. ... .... 119 579.572 926,474 4-.. 988 446,034.54 763,049
United States---------- ---------... 1,780 9,905.991 11,591,450 6,897,586 8,2014,528. 23 9,892,619
Venezuelan-----------------------. 4 5. 668 9, 714 5,304 4,899. 78 3, 971
Yugoslavian...................... 14 57, 771 71, 188 43,669 49.,804. 87 73, 413

Total, fiscal years:
1938..-------------------------...................... 5,524 28,058, 109 32, 918, 177 19,621.870 23, 169, 888. 70 -'7 385,924
.1 .......................... ....... 5.37 27, 491, 622 32.575.300 19,303.366 ??' 102, 137. 12 128, Ill 375
1936-------------------------........................ 5,382 2,024,417 %i .130, 259 19, .1.. 946 2.', I'. 114. 21 .' 505,943


I Ocean-going commercial traffic includes only tolls-paying vessels of 300 net tons and over. Panama
Canal ii' r-urn:Iil-nt. and vessels paying tolls on displacement tons of 500 displacement tons and over.
2 As -*ri-rriiiunmi,1 under the measurement rules in teifrc prior to Mar. 1, 1938.
100272---38--2


Fiscal year


1923 ----- -----
1924.----.-----------
1925---------------
1926.-------------
1927 ---- ---------
1928.------------
1929-----------------
1930-.---------------
1931-----------.--.-.
1932--............. -
1933 ----------- -.-.
1934--.------.-------.
1935.----------------.
1936----.---...-...---
1937-----------------
1938 ----------.-.-.--


T.arikers


$4,769,324.63
9, 071, 835. 65
5, 728, 302. 26
5, 626, 167. 93
6, 658, 806. 90
5, 436, 437. 16
5, 1 1' 632. 19
5, 768, 963. 28
4, 682, 320. 14
3, 197,136. 29
3,393,311. 02
5, 161. 787.40
4, 192, 863. 09
3, 192,498. 46
3,451, 771. 65
2,846,711.79


I )





REPORT OF GOVERNOR OF THE PANAMA CANAL


CARGO CARRIED BY VESSELS OF LEADING MARITIME NATIONS

Segregating the traffic through the Canal by nationality of vessels,
the following table shows the aggregate cargo carried by ships of the
leading maritime nations during each of the past 5 fiscal years. For
the year 1938 the percentage of total cargo carried by ships of each
nationality is also shown:

1938
Nationality 1934 1935 1936 1937
Tons Percent-
Tons age
age

United States ---------------- 11,578,453 10,825,573 10,700,535 9,844,254 9,892,619 36. 1
British ---------------------- 5. 193,136 5,776,021 6,181,571 7, 179, 136 6,417,016 23.4
Norwegian -------------------2,080,833 2,463,675 2,717,860 3,506,109 3,433,571 12.5
Japanese --------------------1,510,916 1, 446, 049 1,697, 880 1,789,178 1,877, 502 6.9
German ---------------------- 962, 218 1,300,991 1,305, 090 1,496,084 1,518,593 5. 5
Danish----------------------- 533,262 555,981 627,407 757,379 865,235 3.2
Swedish ---------------------- 766, 921 782, 548 855,409 775, 800 763, 049 2.8
Netherlands ------------------- 403, 451 439,168 511, 620 700, 725 749, 642 2.7
French----------------------- 430,471 570,034 544,343 542,539 567,288 2.1
All remaining_---------------- 1, 244, 348 1, 149, 487 1, 364, 228 1,517, 171 1,301,409 4.8
Total.------.----------- 24,704,009 25,309,527 26,505,943 28,108,375 27,385,924 100.0


VESSELS PAYING TOLLS ON DISPLACEMENT TONN.GE

In the Canal traffic statistics, foreign naval vessels such as colliers,
transports, supply ships, etc., with a measurement of 300 net tons
(Panama Canal meieziaireinent) or more, and floating craft, such as
vessels of war, dred-ges etc., with a displacement measurement of 500
tons or more, are clas-ificd as ocean-going commercial vessels. Sta-
tistics on these vessels, except as relates to displurceinnt tonnage,
have been included in the traffic sininmai ies shown on the preceding
pages. As displacement tonnage cannot be combined with net ton-
nage, however, the following table shows statistics on eleven foreign
naval vessels and one Uni ted States dredge which transited the Canal
during the fiscal year 1938 and paid tolls on displ;ti-ieent tonnage:


Nationality Type of vessel Numbsits of Dislacement Tolls

British.-----------------------Warship------------------- 7 36, 233 $18, 116. 50
Cuban-----------.------ -----doo-- --------------------- 2 2,400 1,200.00
French ----------------------do------------------------- 1 7,429 3,714.50
German ----------------- ---- do ----------------- 1 13,312 6, 656. 00
United States.--------------- Dredge ------------------------ 1 1, 370 685. 00
Total.-.---------------- ------------------------------ 12 60, 744 30, 372.00





REPORT OF GOVERNOR OF THE P.\N.AMA CANAL


VESSELS ENTITLED TO FRIEI: TRANSIT

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


Number Panama Displace- Tons of
Class Canal net ment ton- Tolls Tnof
of transits tonnacargo
tonnage I nage

U. S. Navy--------------------------------- 242 136,000 2, 571 $279,000. 00 43,738
U. S. Army----------------------------------- 192 404,000 211, 168 345,000.00 53,852
Other U. S. Government----...-----------------.. 7 -----.-----. 6,080 3,040.00 -------
Total, U. S. Government---------------- 441 540,000 311,819 627,040.00 97,590
Colombian Government-..----.--------------- 6 15, 259 320 11,146.00 -------.
Panamanian Government--------------------- 1 10 ------------ 7. 20 -------
Vessels Er JuIrnuL' for repairs only-------------- 28 40,000 ------------. 28,000.00 6,300
Grand total---------------------------- 476 595,269 312, 139 666,193.20 103,890

I As determined under the measurement rules in effect prior to Mar. 1, 1938.

SMALL COMMERCIAL VESS LS TRANSITING CANAL

Transits of small cargo-carrying vessels, and other small craft such
as yachts, tugs, etc., of less than 300 tons, P;r!;anii. C1mi1l IeasIre-
ment, or less than 500 tons, disphicenllcit 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 vc-;cls transition the Canal during the year, 1lgether with the
tonniigr tolls, and amount of cnirgo carried, is shown in the following
table:


I runn i e
Number Tolls Tons of
of transit Panama Displace- cargo
Canal net 1 ment

Atlantic to Pacific----------------------------...... 532 25,733 ------------ 22. 687. 52 10,969
Pacific to Atlantic.-----------..-------.--------- 399 22,719 ----------.- 22,631.17 22,121
Total---------------------------------........ 931 48,452 ------.------ 45, 318. 69 33,090

I As determined under the measurement rules in effect prior to Mar. 1, 1938.






14 REPORT OF GOVERNOR OF THE PANAMA CANAL


CARGO SHIPMENTS SEGREGATED BY PRINCIPAL TRADE ROUTES

Cargo shipments through the Panama Canal during the fiscal year
1938 and in the three preceding years, segregated by principal trade
routes, are shown in the following tabulation:

Tons of cargo

1935 1936 1937 1938


United States intercoastal:
Atlantic to Pacific.-------... -------------. ------- 2, 162, 641 2, 578, 508 2, 575, 075 2, 341, 847
Pacific to Atlantic---- --------------------- -- 5, 800, 769 5,140, 567 3, 965, 082 4,052, 728
Total --------------------------------------- 7,963,410 7,719,075 6,540, 157 6,394,575
United States and Far East (excluding Philippine
Islands):
Atlantic to Pacific.--------------------------- 2, 398, 667 1,872. 357 3, 265, 672 3, 092, 992
Pacific to Atlantic------------------------------ 507, 448 585, 961 662, 047 433, 544
Total.------------------------------------ 2,906,115 2,458, 318 3, 927, 719 3, 526, 536
Europe and South America:
Atlantic to Pacific -------------------------------- 304, 212 395, 917 460, 777 453, 298
Pacific to Atlantic------------------------------- 2, 640, 962 2, 330, 136 2, 661, 698 2, 520, 600
Total----------- ------------------------ 2,945,174 2, 726,053 3,122,475 2,973,898
East coast United States and west coast South America:
Atlantic to Pacific--.------------------------ -------142, 870 199, 199 208, 218 262, 207
Pacific to Atlantic ----------------------------- 1,380, 790 1, 909, 185 2, 359, 431 2. 389, 649
Total-------------------------------- -----1, 523, 660 2, 108, 384 2, 567, 649 2, 651, 856
Europe and United States:
Atlantic to Pacific -------------------------------379, 785 614, 703 534, 749 449, 765
Pacific to Atlantic.----------------------------- 1, 388, 187 1, 788, 865 1, 435, 003 1, 972, 196
Total------------------------------ ----- 1, 767, 972 2, 403, 568 1, 969, 752 2, 421, 961
Europe and Canada:
Atlantic to Pacific------------------------------- 77,282 95, 142 106, 296 98, 702
Pacific to Atlantic---------------------------- 2, 335, 108 2, 377, 190 2, 467, 874 1, 716, 157
Total- ---------------------- ----- --------- 2,412,390 2,472,332 2,574, 170 1,814,859
United States and Philippine Islands:
Atlantic to Pacific-.---------------------------- 133, 613 170, 134 242, 612 217,560
Pacific to Atlantic------------------------------ 559, 978 809, 707 783, 657 1, 106, 130
Total---------------------------------------- 693,591 979,841 1,026,269 1,323,690
Europe and Australasia:
Atlantic to Pacific.------------------------------ 320, 280 419, 824 473, 333 545, 553
Pacific to Atlantic---------- --- ----------------- 615, 144 636, 997 670, 192 705, 917
Total-------------------------------------- 935,424 1,056,821 1,143,525 1.251,470
United States and Australasia:
Atlantic to Pacific ------------------------------ 277, 477 356, 117 316, 004 471, 299
Pacific to Atlantic.---------------------------- 152, 567 155, 875 236, 259 157, 048
Total----------- --------------------------- 430.044 511,992 552,263 628,347
United States and Hawaiian Islands:
Atlantic to Pacific.-------. ----------------------- 111,030 142, 774 184, 517 151,839
Pacific to Atlantic.---------------------------- -- 368, 024 371, 892 506, 320 450,000
Total-------------------------------------- 479,054 514,666 690,837 601,839
Miscellaneous routes and sailings:
Atlantic to Pacific- -------------------------------- 1, 221, 864 1, 405, 224 1, 528, 379 1,603,498
Pacific to Atlantic--- ----- ------- ------------ 2, 030, 829 2, 149, 669 2, 465, 180 2, 193, 395
Total--------- ------------_---- ----- -------- 3, 252, 693 3, 554,893 3, 993, 559 3, 796, 893
Total traffic, all routes:
Atlantic to Pacific --.----------------------------- 7, 529, 721 8, 249, 899 9, 895, 632 9, 688, 560
Pacific to Atlantic.----------------------------- 17, 779,806 18, 256,044 18, 212, 743 17, 697. 364
Total-------------- --------------------- 25,309,527 26, 505,943 28,108,375 27, 385, 924





REPORT OF GOVERNOR OF THE PANAMA CANAL 15

ORIGIN AND DESTINATION OF CARGO

The following tables show the origin and destination, by principal
trade areas, of the cirgoes carried by steamiiers passing through the
Canal during the past. fiscal year; one table covers the movemeint, of
cargo from the Atlantic to the Pacific and the other from the Pacific
to the Atlantic:








REPORT OF GOVERNOR OF THE PANAMA CANAL


00 t cc Is I ,- I r *"I *
2. 0 tc- -i, 4 1
'I ': C4)'Ia'1
0 --u ( 13 '-4 20 20
--a 0 1 M10 -< t


- 'r 1i 1 -1
x-0 CO0)-010
20-i 010 CO


1101 20 CO4 a a a 1001

r-lo cs - ^ ocj-
1.10 05 a a I ccao-
a - a a ( I-
0)10 CO 0s a a
C0l 10 01 a a O1
a -r a Ia! -,


t a 1 a 10 a :. a a a 10 a 10
IC n a 10 Sa a a10C Io -
0 a a a a a.



*0 -.-i.-: a:I: Ltfa f :| f7 iX


_ ____*_________________|__I ..
F- f. r. .1I


CO a-a
1a 0
0L~ I~
E-. :t-


a acO0)
f- OOS-
-i a 0-a


a a_ ri r 0 CMa))
CI. a ac0) 1M00)O
Oar
i a V, cl
iCa ai N ac)m



r7 M .
cr- a i-,- -C
o E-c'1 CA


Cr) - -"

0 "a c-..-a
k=c 0


S..CO.
:, -- --t
zI- 0

10.-' 1'-
10ai ~-


Cc InI3
00 I 1-
COO a 01a
"aC1 a 0)
iOC i


a- Lz -r A' S
a 10' 0)

a a a "a


00 c0 .-i "at' a
0- 10 at-C
0 o r-a a



0-i



,Iz e^ooco vi-
-a q a c .-
10"a 00)0


f -. A 7
co - A I A"
107 la-f1Z-a


:-i -.- I0:
"a0 0)1

10 ,1a"
am CO
'Mcq N


a-

a 10-"


a CO
aCO CO
a 1001


S





a a0 a a 1
I *aal

a I-
I *I !C
71


O) a -aa0)2001
- a a c iood -

a a i 00)


I'I :-.-
a 01WC



a; 1

I N1


0.7

-ri-..


0110100)
0) . .
-CO "*a "a
10
CO
10
I O


.L [A 0ar a, OT ~CM ri o 00 o ~ C 0 ^ 00, lCO 1^ C~O 05 C
a 4 D : CC Ca CM a C t- a m m
g1-4 )] 0) CO 0 a(003 a 2 1 a a a i r-
a. a a o aM ao ..' a-' a- ao a ri a~
005 O 0 a a aa I a a


C 0 0 01 as a OS a 1< C0 0 6- O a; at; c,. *. . I -C a
0 ( ^CO t'- ^f10 0 a 01 0Ia2 0a C10 a a1).

c= ca c. co ar a) a Ma I-aI a O a a C a-aa-
0 c. a a a a a ..o a a a
*- O-'a 0) cao a a at.. ?o 0- 10 a 20 r
C-4


aZ'S Ca m a- a O ac Ca aa C a
a I DR ri I"i
0 a a c~ a a10 a~~C a a a a
u) -' 1. a 10 a 0)0 1. 012 a-ar,)I2 a La) 0 a aa 10'a020





C300 CO a 10 COt- 0 100 a.-*-i 1-CO 4c 10 M a 01^C CO a a a a
c ) a a a a o t C . .






cc :m ) COm. rD.i a C4 01 i l r04
ua ,, CO "a a '
CA 0 z ca m V- t <=' aa
Co ~ E-a a C~ 0 10 31 0)! 10-a ll-O a aU~ 0) a-ir a-
0l a
v r i t C4 m o -o m r- dz 6 C c,,


r- 1- 10
,o ?oro"
r-O, 0)00
C^t' 1 t
i- 1


t- or 10 0 a)
-1 CO 0) 0


ot co 01
CO
CjM


T OaW-' t.COa00
r "- ~ Ir"."r".3 *t4oo

*:l-r -: i..-t 0
C- -a- I "-c


1i to
a CO -

*at'.C
a 100


CO010 CO 10
0C0 10 CO

1^' 10'
o
i-


-.CO CO "af
"a
20
0)
clf


a a a
a a aa
16fl








2aa . '
f I 8J lII
a a ~ a 1

la o a ala aa aaa



- a a as a

g-m a 0 a.-'/. aCO0 /.

'-II
|~0


10
a0 a a

iQ


'00 a
aW o

CON


113 OT
* fi"


- L_
-Z
**^


.. S.

0: aa




. 0
sa
a)







c5|
*-''0




CO
M,


aCO (CO C
a 0C 0)


. 0001-





:000

.0.0N 0
a a a
aWW4.









0 +- ..- -


a- a. a'
a) 0)
5 o
ll t
0 0 (U
PHPfr


i,



Ia a

^a noa

o a a
5' a a a
'li :s






a -

- -
*A ^M
M-<:


--


'


"








RFIPORT OF GOVERNOR OF THE PANAMA CANAL


00 C14 c( U- c CC Il C14 1= iw p I-r
)'d' 4- C4 oi uz C6







00 .--








I1 '*. f I : . -
1X




-- V

PI



14- 7 -


I ---~- I~ I I.



IS I-
:0 - 7-


I_ !I _ _

-i-I
f 7 1

-II


I.7I
IF.F/
,. 7F-!F-


I .
I


-L


I






- IF


ii


f










,IlF


r -








I
" I "O
r ._- 1




" I "iri '







I' /.


r---II-


I I 4

o --

E-4 /I


o ~r I- -

-II.


Zr -! .-- -
CE ;-. -


N 'F


F F- FFFFFFF- F F
^=^ I t I
I AI IF

. ^ ^. =a>> l'g=-
I t I S'I o I I
1 11*-^ 1 1 1 1 1t 1aa

M


-c / ~.. "-- I


I I


Ii


I

0
0
1>


a
o4


0
a


4)
o



4)



50





,0
a








'4
4o












,1






5-

.400
a



1.&







S3
is
3*





0 _


14 F

F1
F- F





L 1

*-0

2. 7r3


'F


F F


p)


3 j^.




0- C -.


4 ~- F-./
r. -_ V<


I -


000
F 1- i-.
ggg




11







00

4)4)4)
^SXS^
a? w
w a
3^ &E

aa r
g'SS'
r^^^**a -
F an


g
'I






e- I


d be
-3: t






'"
F Fa F
F F F
F F F F


I-
I .I


-----I





- :- :
~


I --.
r ,








REPORT OF GOVERNOR OF THE PANAMA CANAL


8 a
p04 1


0C0
40-M


'I4- : -
4=4 0 4 0
40 4 0
; 4


artdc
1 '


: 0000 C 4 00 m 0 a) 0
M, tD^S t- = C4CS O C) or 0 C^ m toi CID c!OO .
^g-^O O *- O E M m0 Oo t ICstO Cl r

i ~ I~ m 01 ~--i
"""


cod
C004
CO
0-
0-54


4-00
I0 =^
4'.-t
4=00C'


r- cq co5
cq m~
0400-


^r- co
04400-


cq C1 l-
'm'4


400c000
4 '1 40.t-'
440 '-s. 40
44'000'
4 -i04


040

ci


Cr -Tt--0 0 1-. 0 M 040 0< 0'4 O C0 C) 4 0N C
CS3 r1-.r-0 : 0 c Z. q 0 00 040014 40 o
7. -i 1 1-l-0 m r- t-OGC S -d l ob O
00 I'. 0-. 0 40 0 '. 04 '. 0*0 0- I-
*+- l6C4 N "O (M-0 06O^t-t' r-i l -I 0 t-^O i 0 ~
000 00440 00 a -001-C 00 L- 00440 C 0-0i040 cO 04a
_^ 4E 14 0 C 'rl 4 04 04 04 '-('C- 40 04
c4 .i ci V-i


00 04 -1 0


- 04(..4
to~o
40I- r


71

o
00-
CD0


o r- -
C0 0In
04004<
0CO=


40040440
00 D0 40
CAf0 t-
o-Tt^'I


* 0 410 ( c- to m 11-'- 00- N CI-A '1I 't- 40I"' 1
0 ~ ~ ~ 04 440" 4, 04 40'o00 40 C0n1 4o 1- ^ ~ic4 '* "a KQM 00 4 0 4O t0-C0 042 004 -44 0^ 2cMt' 40 -r -.-4i-1
aoS 3 o-'COc 06' m ooo m
00 =r I^i tt cli wi oo c- Il Il i
'3g3 o V' 4 M t oo 0M to c ~


000 o() -"'

Q f
es
S"~d-. ,, ,, t I I t lo


040
.4i
9 c-L I
0404
'14


* -'. I- -



04 -
04


00-0
01 <0


04t o
O


~;
00-- 40
--0-
0I-u3 -:

ss3i


;-=
-r .- 7.2.


40 =0 00 CO Oo m c- i' t 0 0
1Oc' !_* r QC '"r i 1: f-i 10 L6 .6 .0
c : o o o T :: t-oo, : t- = 0 00 0 co 0 00
0-io oo 4c0 c w co tz
4-40 0 "1 0 0'-
o 4 c -, 40 c4 4 r- 0 4 o 1


0 14 r- C- 4 0 I0 4 0 Lor-.I 0, <
+S <4S 4O 40 m 4 0 4C 44 5 40 i
0 4 4 04 00" 00 C : 4 4 -
m- . .1 6 o
S ~ ~ ~ C ''^i q-


030


00
4O1
* .4=.

04


40404
C4 0I


C cq 0r
00 -


d






as
cc
cd
4 47 0









clcoS2
o^a-s&
o i3csca 4 4 L40
0 e








dof:
4'4'0
c~ 4 4p
.0- 40 044 0
4-a 4a 40
004 404#
Z; Q-

0caa 40


c -i cl
00404~
04044
404040

0.41 '1


4 4 4







404- 4-
g4i2
..rt3

.S'-i;S
[/ ti -
ls1
y^^


00 4CO C0


=0420 CO4
O4 04


*a







acd
40

'0444
h 444
04' C4
.0 4 4
o- 44
444^

* 440
4 404nf~


-J 2- "I
- I r4I
-TCC -7


001000
05D CYD 0M



= a (4
to 3 b



000





4a 2. .2)

4- 4-a +*-*
000
4 C) C.) +*







.a .a 4a
cc on co

000
4 4 1-1

000
4-4- 4-.


" "








REPORT OF GOVERNOR OF THE PANAMA CANAL


a --. "- I -I

00

c --- --- -r- -* *-
* - '- I- --









Y ii










1 -- 1









J .II


/ =







I --










71
C-
S i i- ^ *






II

I-
In


I -/ ci


= I 7. T C .


I-. 1 r p ci T ^
' -


2-r I ** IN -.r .'
I' -'z
-- _____i -F-_ I- .z .. .







71C
3 -' *i -. I IiJ

















.11 .- -I I-C.
:n r

|i 11 I I I I -
5- k /
0.I _I I1 _
























7- E- E EI- -
5-U '-.
o1 r

*; I r ..- i l .




































S--,A4 *-4 ;k
( ? II *.iI -" - - -O ^ f


,^ j- I^s I|C=5 .~^ |g ls
*-a I















-- 2 C -
I. .











L iI I<* L a 1
s i 01 .I .I '
5 0' ~ *~~ C .., H
5- *' 003 C


I-rr .~ t
-- 7

0 r


~ 5-
0 *I~ 5

0 ~ ~i" 4)cc


*-*
a
0
0
C.)
0

V
a
*a
a



0
0
fe

a




Cl)'

00


00
o






-5-
0
60
.0 C
).0
eSiS

I- 1

as


pSa9
C a .



c ~i



sI.'-

7 c- a.)





REPORT OF GOVERNOR OF THE PAXAMA 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 carnf; not infrequently no other classification is made of the
entire cargoes carried by vessels. Hence, except in the case of com-
modities commonly shipped in bulk, such as mineral oils carried in
tank ships, wheat, lumber, nitrates, etc., aggregate shipments of the
various commodities 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
1935 1936 1937 1938

ATLANTIC TO PACIFIC
Long tons Long tons Long tons Long tons
Manufactures of iron and steel-- ...---------------------- 1, 114, 189 1, 379, 33 1,770, 293 1, 859, 087
Scrap metal ----------------------------------------- 1, 186. 061 646.464 1, 606,030 99, 151
Mineral oils ..------------------------------------------- 05, 595 678, 607 794, 702 907, 440
Metals. various -------- ---- --- -- 175, 066 169, 141 379, 200 646, 679
Paper and paper products ----------------------------- 347. 424 397, 196 431, 672 422. 766
Phosphates ------------------------------------------ 255,033 289,870 310, 015 328,079
Sulphur ---------------------------------------------- 208, 678 224, 734 253, 294 297, 283
Tinplate --------------------------------------- ------ 199,495 246,902 272.772 237. 997
Automobiles ..---------------------------------- 131.341 204,996 I'.- 983 207,878
Machinery ------------------------------------------- 112,339 137,261 I V". 206 16(i7, 698
Cement ---------------------------------------------- 103,808 126,596 183.978 153,558
Asphalt and tar..--..------------------------------------- 113,305 139.864 147.193 151,527
Cotton, raw ------------------------------------------ 362,548 331,989 298.300 142,121
Coal and coke ---------------------------- ------------- 97, 582 132, 956 124, 467 137. 404
Canned eoods (food pr. t. -------------------------- 121,478 135,627 136. 885 133,111
Wood pulp.-------------------------------------------- 45, 222 55,529 105,775 113,180
Chemicals .------------------------------------------- 98,907 116,066 119,437 108,861
Ores, various -------------------------- ----------------- 97,502 214.711 120.233 103,902
Textiles .----- ------- ---- ---- 96.269 108,733 99.337 94, 625
Automobile accessories. ------------------------- ------ 79, 818 100, 625 86, 289 91, 769
Railroad material -------.----------------------------- 28,125 61, 274 21,986 77, 588
Ammonium compounds-------------------------------- 76, 073 137. 338 6(0, 141 70, 924
Nitrate----------------------------------------------- 58,464 103, 178 68,078 68.702
Coffee -------------------------------- ---------------- 52. 670 61, 503 44, 529 67, 641
Liquors and wines-------------------------------- ----- 60,034 66, 130 58,826 64,981
Slae -------------------------------------------------- 10,203 17, 093 50, 299 62, 546
Soda and sodium compounds--------------------------- 25, 909 37, 255 50.888 (1, 948
Aricultral implements------------------------------- 32, 037 36, 556 47,456 r9, 838
Glass and glassware--.....---------------------------------- 53, 824 65. 202 62, 226 59, 734
Sand ------------------------------------------------- 31, 967 63, 992 52, 160 56, 973
Suear ------------------------------------------------- 5, 052 94, 607 74.185 56, 941
Tobacco ..------------------------- ---------------------- 52, 611 51, 707 69, 407 52, 489
Salt -..---- ----------- 53,931 48,485 45,121 45, 967
Asbestos ---------------------------------------------- 23, 076 21, 535 34. 443 45, 659
Corn -------------------------------------------------104,783 38.072 40,977 43,630
Lumber and mill products.----------------------------- 26. 776 47.835 46.700 42,025
Potash ------------------------------------------------ 15, 369 43, 826 27, 290 40, 288
Rosin ------------------------------------------------- 47,527 55, 527 57,793 35,304
Paints and varnishes----------------------------------- 26, 265 38,496 38, 594 32, 480






REPORT OF GOVERNOR OF THE PANAMA CANAL


Fiscal year ended June 30-
Commodity
1935 1936 1937 1938


ATLANTIC TO PACIFrc-continued Lona tons Long tons I. im! tons Long tons
Creosote- ------------.------------------------------ 1, 395 44. (15 01 880 30, 657
Fertilizers (in-I 1l'-ifel .............. ................ 13, 304 "s., 204 23. 628 30, 296
(i-. egetable------------------------------ ----------- 39,434 30,939 26, 116 29,341
-(l I\- ---------------.-------------.---- 10,538 14, 456 24,929 20,913
All other.-- ----------------------------------------- 1, 046, 694 1,204,844 1, 1 919 1,227, 579
Total-----...----------------------------- -----7, 529, 721 8, 249, 899 9, 895, 632 9, 688, 560
PACIFIC TO ATLANTIC
Mineral oils ---------------------------------------- 4,342, 231 3, 277,078 3, 571, 626 2,874,809
Lumber -----------------.--------------------------- 2, 1", 835 2, 764, 091 2, 748, 917 2,850, 953
Ores ---------------------------------------- ..-------- 1, 144 1, 496,021 1, 851, 254 2, 126, 657
Sugar --------------------------------..-------------- 1,212, 145 1, 391,909 1, 35, 948 1, 486, 516
Nitrate --------------------------------------------- 1, 146, 848 1, 181, 197 1,328,482 1,401,003
Canned goods (food products)--------.----------------- 937, 172 1, 050. 855 1, 092. 356 991, 436
Wheat ..-------------------...-- ...----------------------- 1, 533, 056 1, 480, 187 1, 218, 581 705, 500
Metals, various....------.-------------------------------- 608, 122 599, 388 653, 250 698, 170
Yrui fresh ---------------------------------------- 270, 66 336, 367 216,770 347,527
Food products in cold storage 1.......-------------.------------ 363, 745 324,092 304, 332 334, 659
Wood pulp ----------------------------------------- 1--1. 771 164, 001 140, 612 313, 969
Friir. dried ---------------------------------------- 261, 116 309,096 233, 957 291,444
Barley --------------- ---------------------------- --- 200,030 221,624 166, 578 .*7. 137
Flour -__ .--....-----.--------------- - --.*" .61'. A55 337, 487 259, 389 233, 810
HWn. edible, dry ------------------------------------ 130, 649 171,444 134,239 175,917
Coffee-----------------.----------------------------- 137,081 158, 315 177.209 174,778
Oils. vegetable---------------------------------------- 193. 470 221. 255 197, 000 170, 686
C npra ... .. ......................................... 102, 397 126, 591 155, 413 163, 521
P il.-r i ll i[.r cr ipr.l dc, .............................. 118, 588 131, 38 122, 894 137. 578
Cotton, raw ----------------- ------------------------ 78. 282 1-11. 014 114. 07 127,473
Wool --------.------------------...--------------------- 122,234 161,528 159,586 123,297
.\-phalt and tar -..-------------------------------------- 47,929 52,202 65,058 107. 187
l1.-r i\ ------ -. ---------........ ----- .......- ... 94, 716 101, 012 96, 619 831
Oats ----- -- -..--.------------ 155, 881 69, 916 1100, 629 71, 576
Oilseed cake and meal -------------------------------- 76, 539 62, 687 76, 253 63.798
Rubber, raw..-. ... ....--------------------- 40.033 98, 914 70, 536 62, 505
Rice --------------------- --------------------------- 81, 192 45, 614 44,91106 57, 109
Skins and hides. ---------------------------------------- 64, 123 72,782 72.761 56, 346
Bananas ---------------------------------------------- 40,177 66, 153 38. 501 53,319
Soybeans -------------------------------------------- 433, 322 239, 860 107. 612. 934
Textiles ----------------- ------------------------------ 45, 635 42, 753 75. 652 51.009
Molasses and sirups ------------------------------------ G66. 517 132, 302 127, 381 47. 377
Porcelain ware ------------------------------ ----------- 46, 152 50, 194 51.608 45.934
Phosphates -------------------------------------------- 30, 405 58, 175 39, 280 44, 933
Fish meal --------------------------------------------- 75.593 51,922 37,901 35,866
All other ----- -------------------------------------- 1,028,355 1, 087, 550 1, 002, 566 890,800
Total---...----...---------.......... .------------------------.. 17, 779, 80'. 1, 5.. 251 1 -. 13 17 i.'C. 36fi

I Does not include fresh fruit.


CLASSIFICATION OF VESSELS BETWEEN LADEN AND BALLAST TRAFFIC


The following table summarizes the ocean-going cornumeroil traffic
through the Canal during the fiscal year 1938 segregated bettwven
Indenr ships and those in ballist, as well as between tankers, ore ships,
passenger ships, general cargo ships, and those not designed to carry
cargo, and also between vessels of United States registry and those of
-all other natiomilities:









REPORT OF GOVERNOR OF THE PANAMA CANAL


0
0
H*


=-0oo0
CO 0 "1-
co.T

C-
i- /' C-
I-w
COU

69


-00
CO 101i0
C~tr-<
-CO
'f' -.
CO 10
CO
,-t
1- 0
69


OC=M-4
00 CO o

toms

CII
C-I
69-


-10
i C-
^;2
'- -I 10
.cM
.01
100O CO1
'CM
6a
Afi


m 4
c1
CO-
2I


C-I
C- 00-.=


.0
e9
o toj
Rio


Cli


rCO
5I


CI010 c m-0 5 c o C > C:. C4 c 1 Q o c -'0o1

*-.5: .M m.1 .f I.'I I I I *I-i .10
..- -*> - oo -M t *-: *". -. =r a) r_^ -. m z toa
r--1~~3 CO=m 2...--= cri -r- ~ ~

S- 0 G CO .1'0 10.1 I OI '* .-I~
rf- 0. .I 0 I .10 CO
rI-: .7 CO Z>I 1 -7t'--I -
. 3 *- ^ -. coc r<^-
69 W7 III
136c m ~ oc

I I I I I C-l
69: II 69m I III 69 CA


I-COCM^C
C- 1000 a
10 C-If- -1
C- -0








c)O T
r^-o o
.10
'CyI a 0
CO -.O
10

-69(




C-I CO 10 CO
c-Il'- -co


CO .10

CO

69


=10 C-I
CIA c











7.' 1 Z.
C-110 -
C-T-













00
'C-
-I -
-I
10





-0 -I
1001
~o 1
CO

10
COf


i-i00 "*r t
1010101

C-O 110

C-
69.


0 C-I )

.0

CO
o-
C4
69





-O r- C-





t0
69


01o 1-
CA 10 CO C-

'CLO -C-
.CO
1010 -i



10
CO O. 01




6 100 -M
C~Or-:
CM








S
CW C 0 "I
v-i cO 0
10 -t

10 .1
CO CO C-M
OS

C-


C-A
"e,
CO010


-'




69

CO 'C
C-'



CO 10~

69


C4 7. Z
I -


COO C-


10





G'


COl
o6i s<

is-


CqYU
'CIA C- 1




C-



.01



^"o
10
CO




C- C


r- o = Co 010 o 1 o cD0 m cooo ( I I C:> t0- 00*0
C r- to -, r- o ^c OOf0 .11 1 c.1 w . 0 to .- co
0. .I- 0 I .1 !. -:L ". 0 .
0 +0C^OS 0 CO^O 1-,'C-IC-]' I 010,-I I I ,-,COCOIIE 0OCO
0 0 .CO CO m0,0 q CC .c-O

0-I .01 CO I co C .0. 10
03 69 69- t0 C II0
69 o =9 -:o cc
__" CA c6 _ _
C,1 C14 cc 613.t


E
0
Hd


CM -I =0 -I
101010 CO
.0^
t- -0C
101010

0C .'CI
CM





C- CI0 CO
0 'C'1 CO
`01





r-l t -M

CO 0S CO
10 ^0
0-i
C l
10
56


CO CO 'C'

CM'
10 0
Na
CO


CIA
10











m
691
CO CM C-
Cs- CO C>-
.( :1"


CMI
CO
69-


cor- -0



m 'C -
COA
09


CO0.-I CMI
oCIA


*Jo:










CIAI~
I' -
~ /*
.* 0-

i
=01


C- C0Cl C0

COC -0



c- 010
0 C CO
CT -Cl

0 .10




ct.-rf t
=10









>10
69
C~


if 10 XI
CO 'C

CO 10

CM"
69^


01 CM -=
100110
"r-r
0 -
.CO
I VD







too


QC,
CII
100O -^00

=O CO 10

CO .10



10'


C4C

3Sg
^"c-
~00
00

C-i
--CLO



,CO
361

C^-
69


-10 1- IV -I I --I 0Z co, -C I -0 mo

CTCIA -.;a '! C^ '1* QO 11-4-<^
003 r- 0If-. 1 I 0C1 I I X -CO
S 0.- I 10.10 C` .- 10


co C-O f1 II 0-00 I OI-- C
C- 0 'I-. I W- I-I0 0
CO 1-I 0I II C III CO10'II 6
Id6 CO III 1 WI C-~
IQaFf C I I I? S I C -I
SI I 69


1010010
,-I 10 0O CO
C-I t-

CO 10=-
aI-i
69
r-


C- 00
^.0
CO I -
CO CO
''0-

CO
69


C- -
10 CO
CMI -
CO
C-
69


0 100
a)n10100
- "CO .) .
COOS 10
100 CO
6CO
10
69


c- O 10 C


0101 5Io


COtC- C-I
00
C-I
6^


Y *2 .1
?,m
-I C-
010
10o
O0
69


wI I Iw I
L" I I tb l v al
,II II III II, 11 I
I- ~ ~ + I I- I I 1

1fl. 3 I 1., I 113 I G03 "123
I: 10) I 8 I 108I(l
c n c a a

Im I" I I~ Im cj I; ;
a a a aE a1
o o+3 o o






.*S .*i .'S .ti<5 B..oS :

IA -
Xo P w,4 rt E-c_








0- 0 0-
Ha a a 0 a
*aCas- ^ wc?:Q*Bs C1 IC I-r


Q GO "eu 'O eu !
rt o cc c3a,
&< &-' 0 o


uI l bII
I I I 1 1 1 1 1




z : I I I- I
cc ;rj; c3
Sa a m 111 o m o



"a m so
I I I, I C I I Q I
...i a c l ^-3
Ia cI I M 1 1 3
101 loO l 10 I







.*%) o^"~ go1





-*/'.i-t- ~ I X/p-~ !z;PE-4
a Q
-iI II C II 03




I IU I0 I
10 I~~ 101
10 IdI = +
10 1010+3 I0
I'L I II I
:.s-~~Uk~
I I ]
110
10 r; :c-


Z 0



cu
10 V
0, +j-4








REPORT OF GOVERNOR OF THE PANAMA CANAL


0O50o -* 0 8 00
tDOO -"" I~- 0 1
to .
IDa m a

a


I-CO .0
-r .C -e
*, a.: ,


C00
mC'-
to
"s

COO
to


'21


"0 '- W>
to-. '
tof;/ =I



r,
C4=


-r at. a 3 r~3
-r 7r cl 10 T I- cl, co (- 2 ~i-Al 7-
00 e1 t - Ic --w-a.i-

SY .. - .S




09,

Ca4 tLao D c-i0.: A t r. -
cli



0-o ao-a a 0 y 0c i cc4 cAzi:TY
69 a 0. 69 -. 0



609
ca -4 -t to w t la ao 0 Ot/. osco t lc /.*c'l '!/





-- 0 at *a: a 0 o = -
oo t-0 0 0t9 w C:
aim ocoo ci cr) r- In c4 I

-H -^
o* l 0
61 rrl *-. 0 69. f-4 0
o^ c' ci"







CJ.O OO 5000 a 1.-.CO-'t 0000 l0li 1^O'eO C^O'1 t-
00'C O .0aa o ,a.* cuC 0 A' I-0iZ < -<0



0. O 0- .00 '24 t. M X
77.0 o a C) o Y -.7 z
C^0 .' aO-a-QOt 0O00 C^Ot- CO 5050'- -
l0 01: a: a? 1-05 OS 0 lO C C .-.C'-to.- '
oo- D O .0 "I -" -
0- .b ^ a, aOS 0 Ca: .. C-a -








09 a- COi- 03 00
63 5r er












-aoo "'I In r.ct?< r- o -c so zo
oa E'- .O i >-,












cIc vi m a4 c too t C0 I O. c OC -
*- CO 0 a a -'l0 I-CO CO* f*0^0
0 (N a 03 to0 rt 1 01-.




w 0 CO- c C1
09 a- 00 C-i 0 CO- 00 0
W- Z00 Ct 0 C-itO








CD9 0'


alO Sl OQttO t--iO t^lO C CO
COOCa 000 1-a--toO to.-.cO OCOr- r a.: ..:o 00
tO I I ao a a .1 00 a- .' -a
CO M .0 f CO-a, .50

t ~q -o .tCO co









C-i t a t ia-.<0 Ca. aC* -a .o r-~a-aO
CO" T-" 00';~~ "1
.5 cq Cq o-










r-co01 0 00t0 COmm.C Ia- r- o00 .c0







09 ~ t CO O CO --t.. NC '0 r'lO'^C
I-0 c:)0 ^r^"*Cq r I_ t- A- w ti0 -- -l
GoI Ir tq -t- 7.o -

ci CO CM
111 1111 -i




w
613,~












0 909
Ci '0CO-CO 0r0 O CO-iO .t0C-i C C O
mc-t tI *- lo-i^ i 0 r' r-^ fI)e0C r-~-<











o Ctto 'o .q C .



-C^ Lei -0 ci. -
CO 'C CO 1-C -a a -I *- -'tCO .O t -
*g aI. at I I .b mt- -- - ~




CO a I Ca. t a C I-l C







vi ,e, A O- cooo m so t .:
00 C. C 0 06- -0
cl Il
091 I 1CO 0 09 SO J


C m -CO to CM C-
63EN t-r-zr oO .^ ^ tOO










C* .. 09 Jh fCO ~^.O
i G-o 14 m
cor~ :~5 ::: QO t^.o r i-t m o"^ co'< o l~i*-
-,-; x;






'Vf CO 0-Ia"' ^C
09f t 09
c~~~ .C ^ d
CO I 4, 4 .a
___________________________69__________________l 9 __


03
I nI j ,
*I I




a 0 t ,-a- O


0 &0 0,b
r I-




I 1
'II 7 A4
ir~ "72 =] '^' I

*" a^ a^ Ls a3_



i: so
LS <


a aI t
1i I i - I






a a a a a
m a B 0 a




a--- 't c'CC0 to '
I- I









* 1 :-IZ ^ .'3, s


o S -. ;0r a; -- -
5~ S i
^ &*< E 0






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
and/or passCngtrs at the time of transiting the Canal and those which
passed through in ballast:


Number of Panama Canal net Tolls
transits tonnage
Nationality __________ ------ ---
Laden Ballast Laden Ballast Laden Ballast


British-.------------------ 1,014 260 5,971,491 1,293,704 $5,156,488.25 $921,018.14
Chilean--.-------------------- 9 --------- 45,920 ------------ 38,542.20 ------
Chinese----------------------- 2 ----- 7,893 ------------ 7.851.25 ------ --
Danish ---------------------- 187 36 784. 117 125,397 623,364.45 83,993.60
Estonian ---------------------- 1 1 2,337 2.337 2,448.75 1,682.64
Finnish----------------------- 1 --- 3,575 ------------ 3,198.60 -..----
French ----------------------- 97 7 551.302 35,990 448,965.00 25,858.08
German--------------------- 347 9 1,431,026 30,007 1,191.452.45 21,219.12
Greek ----------------------- 68 26 306,389 117,257 282,901.30 83,985.08
Honduran -------------------- 11 11 18,692 18, 692 20, 143.70 13, 288.32
Hungarian -------------- ---- 4 1 15,928 4,001 13,057.50 2,880.72
Italian ----------------------- 47 5 336,545 21,380 260, 316. 50 15,566.76
Japanese -------------------- 292 8 1.785,986 60,359 1,555,877.30 41,430.96
Latvian ----------------------- 1 2 2,770 5,540 2,436.30 3,920.40
Netherland ------------------ 270 15 754,900 70, 387 620, 040. 80 49,896.98
Norwegian -------- ---------- 506 161 2,519,916 769,450 2,046,533.05 535,030. 91
Panan anian.----------------- 160 22 270,999 97,886 249,355. 70 69,725.52
Peruvian --------------------- 5 -------- 9,759 ------------ 9,802.45 ------------
Philippine -------------------- 1 2 5,014 13,551 4,522.50 9,406.80
Soviet ------------------------ 5 --------- 9,525 ------------ 9,315.95 ------
Spanish ----------------------- 2 ---------- 9,085 ------------ 9,416.25 ....-------
Swedish ---------------------- 93 26 455, 306 124,266 358,538.05 87,496.49
United States---------------... 1,600 179 9,044,000 861,991 7,587,146.25 616,696.98
Venezuelan-------------------- 2 2 2,834 2,834 2,857.80 2,041.98
Yugoslavian------------------ 10 4 40, 080 17, 691 37, 067. 35 12. 737. 52
Total.------------------ 4,735 777 24, 385.389 3,672,720 $20.541,639.70 $2,597,877.00

I As determined under the measurement rules in effect prior to Mar. 1, 1938.

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

The average measurement tonnage, tolls, and tons of cargo per
cargo-carrying vessels of 300 net tons and over (Panama Canal
measurement) transiting the Panama Canal during the past 3 years
are shown in the following tabulation:


Fiscal year Fiscal year Fiscal year
1936 1937 1938


Measured tr-riinr -e:
Panama Canal net------.---..--------------------------- 5,229 5,137 15.097
R. ilrsl gross ------------------------------------------- 6,180 6,086 5,979
Registered net ----------------.--------------------------- 3,665 3,607 3,564
Tolls. ------------- --------------------------------- $4,377.05 $4,310.93 $4,203.75
Tons of cargo (irnl.lfiri:n vr-isels in ballast)------------------------- 4,947 5, 255 4,977
Tons of cargo i Ii,. ri .*---Il only)--------------------------- 5.752 6,195 5,784

I As determined under the measurement rules in effect prior to Mar. 1, 1938.
NOTE.-Computation of above nv-err:e; 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 OTHER VESSELS

Of the 5,524 ocean-going commercial vessels transiting the Canal
during the fiscal year 1938, 3,296 were steamers, 2,204 motorships,
and the remainder, 24, were unclassified naval vessels, yachts, etc.
For the past 5 years the proportions of these classes have been as
follows:

1934 1935 1936 1937 1938

Percent Percent Percent Percent Percent
Steamers ------------------------------------------- 5. 6 65. 4 63. 7 60. 0 59. 7
A.ri.r.i ........................................ 33.33. 33.8 35. 8 39.3 39.9
Miscellaneous-------------------------------------- .5 .8 .5 .7 .4
Total.-------------------------- --------------- 100.0 100.0 100.0 100.0 100. a


Of the 3,296 steamers transiting the Canal during the past fiscal
year, 2,396 burned oil and 900 burned coal. For the past 5 years the
proportions of each class have been as follows:

1934 1935 1936 1937 1938

Percent Percent Percent Percent Percent
Oil-burning.----------------------------------------- 76. 2 74. 8 72.9 69.2 72.7
Coal-burning ---------------------------------------- 22.6 24.3 27.1 30.8 27.3
Either oil or coal......-------------------------.------- ----- 1.2 .9 ---- --------. -
Total----------------------------------------- 100.0 100. 0 100. 0 100. 0 100.0

FREQUENCY OF TRANSITS OF VESSELS THROUGH THE PANAMA CANAL

During the fiscal year 1938, 1,558 individual ocean-going com-
mercial vessels, representing 26 nationalities, passed through the
Panama Canal. In the aggregate these vessels nimde a total of 5,524
transits. The number of transits made by individual ships varied
from 1 to 93 and averaged 3.55. The greatest number, amounting
to 93, 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 541. There were 337
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 transit. per iidividu.al vessel, segregated by
nationality:







26 REPORT OF GOVERNOR OF THE PANAMA CANAL






e "* 100 c n r' -C M
S q Cm Cm C co CI tot-


-_ f0 C'loc"i-^ t-fcoocoC -oao CiosC' eo oCMOt-CO y-
f0 C' 1 CO or "'





oo I I \', '
I I 111 1 7:1





- I 1 1 1 f li I f i l f f i l 1j I I"
oo I __ 11 IIJ I __f LJ ___ I IQ m1 c












't;:!.: :: :: :: : Il






00 . . . . .l i f l f f l . . . . . .
Co
q .. .^ . . . .
__Co _____ il __~ I__________ ff 1 1 11 1 f I ___ ____




-
















Co
-o Co | 1 1 1 1 1 1f if l l -

I ii f f flii f ill____J ____ LJ ___ I I !
*I* I | I I f f l li i l 1 I I jMC O C O~
I i llM____ ll____! l _____i l____ II I __il li


*t, I ii 1f ".1 f li i l l i I I




0 fill_____J________ li I lillf l;l
lii li li l I ; ; ; !! ! !
I iii__ i LJ _iiii LJ _____ I










4'1 -o













CA)
Co I I I I CM COM
C o I i I I t <















In | CO.') ClE 1C0
*0 C' 11 1 II I -





I rt;;-I I .<0


f _ _ - - I ^ .1.

I^ I 11 1 lF iI I f ff 11 1 (C f-COt
I2 I___I__I_ I_____I______ : I
I i_ 1f 1I Io I I 1 1 1 1 1 .1 Ic'- Ic

K01 i l ~ I i i. CM CO
CO ~ ~ C - -<

00 Q N C Ml- MCt j- 0*





REPORT OF GOVERNOR OF TBE PANAMA CANAL 27

The following tabiulation shows for the fiscal year 1938 the number
of vessels imakiing one or more transits through the Pnll;iia Canal, the
percent which each class formed of the total number of vessels (1,558),
their aggregate number of ti';insits, and their per'Iiit of the total
ocean-going coliinercial trIiii-its (5,524):

I o'ri t P'-E ''-rsi r-r iI-rr i r i ei nt
1 1iii -1 |. r ,,Ir r .[1 .'1 'f 1 1 li.r f ,* l
rI IfI or I TIiMi? ( fi. I fIDcr
t* .,, , i. I ^ iIr I II I* 1L* ,,.0l L- n
I r -P s.I.-Iq
f iI I

1 ............ 4' ii i ...... I I i I; i 4 3
2 -- -- 3-- z.ii ,.) | .I 17 ----- - - 51 9
3-.--------- 162 10.4 486 8. 8 18--.--- 4 .3 72 1. 3
4---------- 133 8. 5 532 9. 6 19 -.-.-. --. 3 .2 57 1. 0
5------------ 77 4. 9 385 7. 0 23-... ----. 1 .1 23 .4
6.----------- 122 7.8 732 13.3 2(0 -.. .. 3 .2 78 1.4
7------------ 74 4. 7 518 9.4 31 ----------- 1 .1 31 .6
8----. -------. 45 2.8 360 6.5 32 .- ..-- 1 .1 32
9 -------. --- 30 1.9 270 4.9 34 ---.-.- 1 .1 34 .6
10--..-.--. -- 13 .8 130 2.4 47----------- 1 .1 47 .9
11-----------_ fi .4 f 1, 2 55.-----------. 1 .1 58 1. 0
12 ---- ..-- I 4 .3 48 .9 ( I 61 --.-- _-- 1 .1 61 1. 1
13.----------- 2 .1 2() .5 93 ---.. --- 1 .1 93 1. 6
14--------. 3 .2 42 .8 -- -
15 -..-...... 3 .2 45 .8 Total. I I I .' 1111 0


GRoss TONNAGE OF VESSELS

The 5,524 ocean-going commercial vessels which transited the Canal
in the fiscal year 1938 included 5,512 merchant vessels, yachts, etc.,
paying on the basis of net tonnage, and 12 vessels paying tolls on the
basis of displaciiement tonin;iL'e. Of the 5,512 merchant vessels, yachts,
etc., 2,285, or 41.5 pecn-it, \\were vessels of from 4,000 to 6,000 regis-
tered gross tons. 1Vessels between 6,000 and 8,000 tons made up
25.2 percent of the total andi those from 8,000 to 10,000 tons, 11.5
pern i it. Vessels under 2,000 tons accounted for 10.6 percent of the
total, while those of 10,000 tolls and over represented 6.0 percent.
The average n-ri e(rtlt'd gross toniin;ge of all transit was 5,972, as
collmpared with 6,072 for the previous year, a decrease of 1.6 percent.
The following tabulation shows the ocean-gniL conminercial vessels,
excludingli those b;-edl oil displacemlent toiini, 11-' inl groups according
to registered gross tonnlige, -rgri'ega ted by nationality, with average
ti'inllZagI'- for 1938 and 10!37 and group pievrcl1etages for tile past year:


100272-38--3








REPORT OF GOVERNOR OF THE PANAMA CANAL


T cCL-
C) ,
tP >


z a Ia
I.- C)


;O0= ':1 71 Z-Z =O .f: 'rZZ IC
t^: 0 cc *- - 4 [- 00 2 c t .
-:I o; IZ 0 -I M 'r




ac m c r-
i t- cdl Lo C- I- Oc


a,-Ot (= mi C9 -.- -- .r 0 00f L-o t-CO1O1 -


-?C~ ^C oo ioa cl-o--
oo 'I cli Z t7 Z -cfi / I- 4 tc r-icn t- X -*
C0 l CTS = Z 71 OC t- m Cl "-VC O -:

2 CC N m "a
tkI1 C


-,r =s c c- cq --,I c mrckl ,cqc, Mro t~- ^'I c m
t- C o C4C n=0 o Oic
cq cq m-CO CO ClcC=


o -
Cl i,
o 0;


2o ;,
0 3 s ^.;
i0 0 3


0 -r
rS r^ga ; ^;







-Cl --
-C i ;i i i i


o~ ~ '-* ' '



0~~~ m' ' '' *" I 0 '

0 '" [3 '- ' 1 1 '


~ ~ ~ I i II' i o rc l -c


0
0,u.
ot U% ,


0 1
0,cC




'1'-


11 -. :C-



C) l
0N~ C
(C,


"I CM


.Clt CO CO: i ^3
* C 0 o -4Ci X


- ,-t. ~- I-
Cl ~i t-


cc C, r-


o0 Cit
iCl -


,m([-. cl
- r V.
C,:


roc cl 0 ~ r


,: 0


;c I 1 1










Clli








C i H-
tN i C






i IO





I C
.c


~-- it -
I-,:


-j (o : L~3? -< :O Cl-.C'C^lC,: C:O 0 :ClCif-. V-Cl
C" l"I
c ,T a C n C ^--," C
o2 o c vi
ol C,:
^ -.S m


cit ,d
03 i


(C--


Cl


I ac
it-


cC
.o

z






c ~ "" a S
'7~o _3 7.
-cC.0 a' b < aS -
I j c'- cx_ C '' aa2.S c3 -

CIlil!! C!^^! !!!!^!
S'^U -.- -OS S-)',' i-&-ic/yak t>


(0
Oo




V
a
a


c-

cC

cC

C
0




UO
a
n

cV




C
cC


cir





2C
*O
g
J







I I


e




-C





K 2
i
0















cC -*-'
C -
S 5










cc

g


























&i C
-- I


~ccC
o



4 gd














c- 1



















*i ^.

cC I/
L cc



C 3
ri +

'E a
KI a;




*2 (



l.





E2?




* I


I i

i
I i I I
i I
I I i
i
I i ,


i





REPORT OF GOVERNOR OF THE PANAMA CANAL 29

SUMMARY OF PASSENGER MOVEMENT AT CANAL DURING 1938

The following tabulation shows by months the number of 1p)issengers,
exclusive of transients, disembarking at Canal Zone ports during the
fiscal year 1938, segregated as between first-class and all othier-;, with
comparative totals for the fiscal years 1936 and 19:37:

Disembarking Embarking

First class Others Total First class Others Total

July -- ---------------..- .. ---- 1, 878 2, 206 4, 084 1, 806 2, 258 4, 0(16
- ilrl-t .I 694 1, 554 3, 248 1. 803 1, 346 3, 149
---- -I.--i- -r -- .. 1,952 2,011 3,993 1.745 1 789 3, 511
i ..i..r 1,779 2, 019 3, 82S 1, 670 2, 134 3. 801
November- 1, 5 1, 944 3. 529 1, 227 1| 32 3, 159
December 1. -61S 1, 199 2, 84-8 1 295 1 291 2, 591
January._ 2, 112 1,3 5 3, 507 1, 14 1 1 2,275
February...------ 1, 59 2. 48 3, 977 1, 939 1 I127 3, 316
M arch --------- ------------ 1.205 1 677 2, 82 1 650 2 0 3, (;.s
April----- - ---- ----- 1.33 99 23 1731 157 3305
M ay ---------------- 1, 150 1.991 3. 141 2,033 1, 2S 3,301
iJune. .....-. --------------- 1.451 2 262 3, 713 1. 495 1.147 ;:, 12
To 193 -------------- 19302 21, 7 1 19, 5" 19,300 :;3. 8js
To'Il. 1937 l.. 125 18i 934 381, 062 19. 93(I 1, 0 S2 3s,. 018
To 36 ------- ----- -- 19. (00 15 135 34, 735 19. 862 14. 2S9 31, 151

As compared with 1937, the fiscal year 1938 showed an increase of
7.9 percent in the number of arrivals, and in comparison with 1936 it
showed an increase of 18.3 percent; in the number of depart irr- there
was an increase of 2.3 percent over 1937 and 13.9 percent over 1936.
The following table shows the passiener traffic through the ports
of Cri-ifbal and Balboa during the past 3 years:

Port of Cristobal Port of Balboa

1936 1937 1938 1936 1937 1938

Passengers disembarking. --------------- 23,11 25, 23 28, 620 10,924 12, 799 12,46
I' 1i I-. r embarking -. 22, 267 24,860 26, 474 11, 884 13. 158 12,414


A further segregation of the passenger movement shows that
30,685 incoming and 28,215 outgoing Ipassengers came from or were
destined to ports of the Atlantic, and 10,401 incoming and 10,673 out-
going pas-engerr were brought from or were destined to ports of the
Pacific.
TRANSIENT PASSENGERS

In addition to the figures shown above of pas-n-rciers. diienibharking
and embarking, there were 131,837 transient p-;sscngeirs brought to
the Isthmus by vet-;^l.; calling at Canal ports during the fisc;il year
1938. For the fiscal year 1937, there were 136,085, and in the fiscal
year 1936 there w-ere 132,590. The number in 193S lecreuseld 4,248, or
3.1 percent, in cunip;i riscn w itli those in 1937, and registered a loss of





REPORT OF GOVERNOR OF THE PANAM1.A CANAL


753, or 0.6 percent, under 1936. 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 endinrig or beginning voyages at the Isthmus. The origin
and destination of these transient passengers are indicated in the
following tabluation:

Fiscal Fiscal Fiscal
year 1936 year 1937 year 193S
Remaining on board vessels transiting Canal:
Atlantic to Pacific.. ----------------------------------------- 56,001 55, 149 51, 872
Pacific to Atlantic.- --------------. - ----_ _-_- ---- 40, 117 41,268 41,947
Remaining on board vessels entering port but not transiting Canal:
Atlantic to Atlantic _-------- -- ------- ----- _......33,788 36,930 33,914
Pacific to Pacific-----------------.....................---------------------------- 2,684 2,738 1,104
Total.. ...............--------------------------------------------------- 132, 590 136,085 131,837

The transient passengers included a number visiting the Canal as
members of special tourist cruises. Many of these crossedi the
Isthmus by train from Colon to Gatun, proceeding from there through
the Gaillard Cut to Pedro Miguel by small steamer, and finally com-
pleting the trip to Balboa by rail or automobile. Similar combina-
tion trips were made in the opposite direction. During the past year
51 trips of these types were conducted, for a total of 8,085 passenger-.

INAUGURATION OF NEW RULES OF MEASUREMENT AND RATES
OF TOLL

On August 24, 1937, Congress enacted legislation (Chl. 752, 50
Stat. 750; U. S. Code, title 48, sec. 1315) which had the effect of
abolishing the application of the United States rules of measuresine nt
of vessels as a factor in deterl11ilning Panama Canal tolls, and of estab-
lishing the Panama Canal rules for nimii'lrlelint as the sole means of
determining the toriioge of vessels for tolls for the use of the Panama
Canal. The legilition, which became effective March 1, 1938,
provides as follows: Tolls on merchant vessels, Army and Navy
ti sii-;ports, colliers, hospital ships, supply ships, and yachts, shall be
based on net vessel-tons of 100 cubic feet each of actual earning
capacity determined in accordance with the Rules for the hileasure-
ment of Vessels for the Panama Canal pii'.'ribed by the President
as may be modified by him from time to time by proclamation, and
tolls on other floating craft shall be based on disj)pla;-iient tonnage:
P/rori'1' ., That the basic rules of iiie:-uivirel niit shall not be changed
except after public hearing and 6-month public notice of such change.
The rate of tolls on laden ve-els shall not eNceed $1, nor be less than
$0.75 per net vessel-ton as determined under the aforesaid rules, and
on vessels in ballast without psii'ingers or cargo the r;itc may be less
than tile rate of tolls for vessels with passengers or cargo. In addi-
tion to tile tolls ba-zcud on inmealciirement, or displacement tonnage, tolls
I11iy be levied on p '.-isengers at rates not to exceed $1.50 for each





REPORT OF GOVERNOR OF THE PANAMA CANAL


The levy of tolls is subject to the provisions of article
XIX of the convention between the United States of America and
the Republic of Panama, entered into November 18, 1903, and of
article 1 of the tre aty between the United States of America and the
Republic of Colombia, proclaimed M\larch 30, 1922.
On August 25 and 31, 1937, the President, by virtue of authority
ves-ted in him, issued the necessary proclamations pre-l ibing and
proc(lilaiming the rates of toll to be paid by vessels iiu-ii the Panama
Cainal and the Rules for the Measurement of Vessels to determine
their toimiagr as a basis for toll charge-. The rates thus prescribed
are as follows:
(1) On nierchantl vessels, i.:t Arnny and Navy transpI)orts, colliers, hospital
ships, and supply ships, when carrying passengers or cargo, ninety (90) cents per
net vessel-toln of 100 cubic feet of actual earning cai :a it vy--that is, the net
tonnage determined in accordance with the Rules for the Measurement of Vessels
for the Panama Canal;
(2) On vessels in ballast, without p: s or cargo, seventy-two (72) cents
per net vessel-ton;
(3) On other floating craft, inhll'lilni warships, other than transports, colliers,
hospital ships, and supply ships, fifty (50) cents per ton of displacement.
In accordance with the prescribed legi;laition and Presidential
proclamations, the new rules and toll rates were placed in effect on
March 1, 1938. In the new measurement rules certain exemptions
are made which have the effect of reducing tonnage on which tolls
are paid as compared with the tonnage under the maIsuMirenent rules
which were in effect prior to March 1, 1938. Figures for the 4 months,
March to June, indicate that the Panama Canal net tonnage, as
determined under the new rules, is about 7.5 percent less than if
deterriniiled under the rules in effect prior to March 1, 1938, and that
tolls are about 3.5 percent less. These changes are substantially those
which were anticipated before the legislation was enacted. The new
system is operatiing very satisfactorily, and, although the revenue
from tolls is somewhat reduced at prc.niit, the future income is not
subject to reduction through interpretation of rules or by vessel con-
struction or alteration, as was the case under the former system.

CANAL OPERATION AND MAINTENANCE
HOURS OF OPERATION
Dispa thing of ships through the Canal is conducted on schedules.
Vessels awaiting tr.niiisit begin moving through the Canal from the
terminal ports at 6 a. m. and dispatches ari- made thlicerifter from
each terminus at intcei;ls of about half an hour. The following is
a summary of the arrangements in effect at the end of the fiscal year:
From Cristobal Harbor, first ship at 6 a. im., last at about 3:30
p. m.; from Balboa anchorage, first ship at 6 a. im., last at 2:30 p. im.
This applies to vessels averaging 10 to 12 knots. In caew a vessel is






REPORT OF GOVERNOR OF THE PANAMA CANAL


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 di-p;itclhed at the discretion
of the captain of the port and are not permitted to proceed unless
they can clear Gaillard Cut before dark. Heavy tankers carrying
gasoline cargo are usually restricted to the early morning schedules,
leaving at 6, 6:30, and 7 a. m., but may be dispatched on other
schedules, if the conditions of traffic necessitate a chiinge.
The volume of traffic at present is not sufficient to justify 24-hour
operation.
OPERATING SCHEDULES OF LOCKS

At the end of the fiscal year, the schedules of opera I ing shifts of
the locks were as follows:

Gaturn:
7 a. m. to 3 p. in.-8 locomotives.
7 a. m. to 3 p. ni.-6 locomotives.
3 p. m. to 11 p. i.-8 locomotives.
3 p. m. to 11 p. m.-6 locomotives.
Pedro Miguel:
8 a. m. to 4 p. m.-8 locomotives.
9:30 a. mn. to 5:30 p. m.-6 locomotives.
2 p. m. to 10 p. m.-8 locomotives.
Miraflores:
7 a. m. to 3 p. m.-8 locomotives.
9:30 a. in. to 5:30 p. m.-8 locomotives.
3 p. m. to 11 p. m.-8 locomotives.

LOCKAGES AND LOCK MAINTENANCE

Loclk;ges and vessels handled are shown in the following table by
months for the past fiscal year with corresponding totals for the past
five years:

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

1937
July -... .. ._..._ 475 592 4S5 607 481 602 1, 441 1, 801
n -------- 513 647 529 633 524 633 1, 566 1, 913
SI ri. r-..-..-.-_ 452 607 468 575 464 571 1.384 1,753
October -- --4(i65 594 486 608 483 600 1.434 1.802
November -.----------443 555 470 599 466 592 1, 379 1, 74
December--------. 451 589 471 600 463 575 1, 385 1,764
1938
January--...- 467 616 480 615 476 603 1. 423 1, 834
February-. -....----..- -_.. 431 575 453 588 448 586 1, 332 1,749
-M.r.l- .. 517 678 533 655 529 663 1,579 1, 996
April. .. .. .---- --- 486 664 511 673 511 1, 508 1.996
May 491 636 507 639 501 629 1 499 1, 904
June 460 632 477 628 467 603 1,404 1.863
Tohlan --- -- - 5. 651 7,385 7 4:11i' i. .W :. T
Fiscal year: --
1933 4 380 5, 334 4,557 5. 536 4, 515 5,586 13, 442 16, 456
1934 - 5, 365 6,593 5, 507 6, 745 65, 483 6, 705 16, 355 20, 043
1935. . -- --.. 5, 316 6, h93 5,490 6, 859 !5, 481 6, 837 16. 287 20, 589
1936 ---- -- 5, 334 (7. 55 5, 54 1 6,930 5, 38 6,66 16, 42 20, 551
1937 -- --- --- 5, 504 7, 156 5, 735 7, 474 5. 608 7,218 16,847 21, 848





REPORT OF GOVERNOR OF THE PANAMA CANAL 33

The lock-operating machinery functioned smoothly throughout the
year except) for a felt- incidents due to faulty oj raition or minor fail-
ure of equipment. The following summnnary includes all delays to
vessels while tr;i waiting the lock ,. due to the incidents mentioned:


Locks vcs-'etls rt e delay caused


ia n.------ ----------------- --- --- -------------------------- 16 1 hour 24 inut .
Pedro Aliguel ------------- ---- ------- ---------------- 5 2 rinutes.
M iraflores--- 17 3 hours 11 m minutes.
Total------------------------------------------------------- 38 5 hours 17 Tr minutes.


The average number of lockages made daily, and the avera';I num-
ber of vessels handled per loclk;ge, during each of the past 5 fiscal
years, are shown in the table follow ing:


Average number of lockages per d(ay Average number of vessels handled
Fiscal year
Gatun Pedro Mfiraflores Gatun l Miraflores

1934L - - __- 11.7 15. 1 15. 0 1. 23 1.22 1.22
1935 --------------------------- 15. 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
1938 -------------------------- 15.5 16. 1 15.9 1.31 1. 26 1.26

POWER FOR CANAL OPFr.ATION

The power system was operated throughout the year with a com-
bined generator output of 83,443,651 kilowatt-hours as compared
with a combined generator output of 80,047,238 kilowatt-hours for
the preceding fiscal year. During the year, 75,970,841 kilowatt-
hours were distributed to caon miners, as compared with 73,255,156
kili-at t-hours for the preceding year. From the above there resulted
a transmission, transformation, and distribution loss of 7,472,810
kilowatt-hours, or 8.95 percent, compared with a loss of 6,792,082
kilowatt-hours, or 8.49 percent, for the preceding year. The maxi-
mum peak load carried on the system during the past fiscal year was
20,700 kilowa-ttt, occurring on December 9, 1937, at 10 a. m.
The Madden hydroelectric generating stati inu operated throughout
the year, generating approximately 56.5 percent of the total power
output. The Gatun hydroelectric station generated approxi11ma tely
43.4 percent of the total power output, while the 'Miraflores Diesel-
electric generating station generated 0.1 percent of the total power
output. The amounts of water conniilmed for generation of power
were 436 cubic feet per kilowatt-hour at Madhlden station and 851 cubic
feet per kilowatt-hour at Gatun station. The Miraflores Diesel-





REPORT OF GOVERNOR OF THE PANAMA CANAL


electric generiting station was maint;iined throughout the year on a
full-time, stand-by bn-is. Load, for short periods of time, was
carried by this station on 12 occasions during the year.
There were 15 failures of transmission line serviice, in whole or in
part. Nine of these failures were caused by insulator flash-overs,
three were caused by animals contacting line, two were caused by
locomotive crane contic ting line, and one was caused by mechanical
failure of insulator string.
The work of modernllizin-z the excitation system at the Gatun
hydroelectric station was completed during the year. The results of
this improvement are very satisfactory, the advantages being greater
reliability, reduction of losses, and simplification of control. Work
was started and advanced to about 65 percent completion in the
relocation of certain 6.6-kilovolt feeders, which will insure greater
reliability in service.
Numerous improvements were made in the substations, all type
K-12 switch gear being eliminated from Cristobal substation. The
operation and maintenance of the Darien substation were discontinued
as a unit of the power system on January 1, 1938. A new 25-kilowatt
transformer was installed for street lighting at Balboa substation.
Included in the maintenance and patrolling of the transmission lines
during the year were the systematic testing and replacing of high-
voltage insulators, resulting in a total of 207 strings of insulators being
replaced. A number of towers were repainted between Paraiso and
Balboa and between Summit and Madden Dam. The replacement
of ground wires south of Gamboa was completed during the year. A
total of 80 cantilever brackets was recovered from the abandoned
section of the transmission line between Paraiso and Summit, to be
repaired and used in replacing a number of deteriorated brackets now
in use. The underground distribution system for Gamboa town site
was extended to serve the light, power, and telephone requirements of
the 1938 building program.
For the first 6 months of this fiscal year the electric light and power
system continued to earn not only the required 3 percent return on
capital invested but a reasonable margin over this amount. Effective
January 1, 1938, the tariff rate for electric current, consumed in
excess of 100,000 kilowatt-hours per month on individual services, was
reduced, so that for the last 6 months of the fiscal year the exce-s over
the required 3 percent, on invested capital wa practically eliminated.
This resulted in a total saving to the large power consumers of $44,626
for the 6 months' period, of which $32,843 was saved for Panama Canal
and Railroad divisions and $11,783 for the United States Army and
Navy.






REPORT OF GOVERNOR OF THE PANAMA CANAL 35


These results have been made possible by the continually incrcaiilig
sale of electric power, mainly to the employees of the Canal and
Railroad and to the Army. The following amounts of revenue from
the sale of electric current to eiiilloyees show the ini(c ;i-d consump-
tion by employees of the Panama C:idil and Panama Railroad:


Fiscal year

- - - - - - - - - - - - - -
]2------------------------------------
1931.-------------------- -------------
1932.................... ....
193: ------------------ ----------------
1931 ------------...--------------------


RJventieI
receivedI


>0 0--9 I 1936 ----------- --------
11 213.5i 1937 __... .. .................... .
1:> 1,3 |1 19 3n.-------------..---.---------------


In this connection it is to be kept in mind that the installation of
ele-tric rangi-; and w ;iterheaters as standard equipment for family
quarters was initiated during the fiscal year 1931.

WATER SUPPLY

The inflow of water into Gatun Lake from all sources during the
vycIr and the utilization and losses of the water in the lake are sum-
marized in the following table. There are also shown the percentages
which each item formed of the total inflow or yield of the 1,320 square
miles of the Gatun Lake drainage basin. The data are presented for
the fiscal years 1937 and 1938 for the purpose of comply isoii. Each
y0;ir covers 12 months ending June 30, and thus embraces the cycle
of both a dry and a rainy season.


Run-off nptrenrn from Madden Damn........ __ .....
Yield fr-'. I -.I1 Mrea downstream from MIadden D)an..
Direct rainfall on Gatun Lake surface........ ----------------
Total yield.......................................
Evaporation from lake surfaces......-.......-----......
Gatun Lake lock:cs.. .......... ............ ... .
Gatun hydroelectric power....-..-.............._-- _....
Gatun spillway waste.........--..........-.._...----...
Increase in storae..- ---. --.....- ..... ---.
Leakace and municipal---...............---.......--..
T.t.ilI yield.--.-.-.- ---- .-----.-......-......... .


Billion cubic feet,
fiscal year


1937


69. 16
84. 56
38.27
191.99
22.21
40. 50
34. 00
77. 21
1M. 09
1.9 9
191.99


1938


101. 91
139.59
47.89
292. 412
21.87
41.44
31. 11
194.41
1.97
1.62
292.42


Percent of total yield,
fiscal year


1937 193S


36. 0 35. 9
44. 1 47.7
19.9 16.4
100. ()100.0
11.6 7.5
21. 1 14.2
17.7 10. 6
40. 2 66. 5
8.4 .6
1.0 .6
100. 0 100. 0


The 193s total yield of 292.42 billion cubic feet represents an average
inflow of 9,247 cubic feet per second, which is 39 percent above the
24-yeair annual average of 6,i;30 cubic feet per second. Operation of
tlhe Gatun spillw\-;iy duriiin the fiscal year 193IS totaled 5,007 r.-te-
hours and of the Miira(lores spillway, 617 tiate-hours.


FIiscal year


Revenue
rec-ived

$1 19, 601
165. rL92
19I, 374
197, 374





REPORT OF GOVERNOR OF THE PANAMA CANAL


DRY SEASON-1938

From a water supply standpoint, the 1938 dry season began Janua1 ry
8 and ended April 27, with a duratioln of 110 (lays. This is 20 days
le,; than the 25-year average dry season which begins December 29
and ends May 7. The total yield of the Gatun Lake drainage basin
duriit the dry season period avei-agedl 1,528 cubic feet per second.
Evaporation from Madden and Gatun Lake surf;1es; amounted to
965 cubic feet per second, leaving a net yield of 563 cubic feet per
second available for useful purposes. This is 36 percent below the
25-year dry season average net yield, and provided 23 percent of the
necessary water requirements for tlie (Iry season period. Necessary
draft on reserve storage in Madden and Gatun Lakes lowered lake
levels to minimum elevations of 208.32 feet on April 26 for Madden
Lake and 84.01 feet on April 2 for Gatun Lake
FLOODS

The unusually heavy rains of early December produced flooded
conditions over the entire Gatun Lake drainage basin, and the only
large flood of the calendar year 1937 over the Madden Lake area.
Flood crests occurred on December 4, with a maximum 24-hour inflow
of Madden Lake of 48,200 cubic feet per second. The 1938 dry
season was terminated by unusually large freslhets over the Madden
Lake area for this season of the year. Flood crests occurred on
April 30 with a maximum 24-hour inflow into Madden Lake of 27,100
cubic feet per second.
MADDEN LAKE

During the fiscal year 1938 Madden Lake varied in elevation from
the maximum of 250.10 feet on August 30 to the dry season minimum
of 208.32 feet on April 26. Starting the fiscal year with an initial
elevation of 230.44 feet, the lake was allowed to rise until August 30,
when it was lowered by drum-gate operations. From September
3 to March 14 all four drum gates were kept at sill elevation of 232
feet and a condition of free flow over the (lam existed. During the
flood of Decemiiiber 4, the lake rose to elevation 239.60 feet with a
maximum spillage over the drum gates of about 28,500 cubic feet per
second. Beginning March 15 spilling through needle valves for
maintenance of Gatun Lake levels lowered Madden Lake to its dry
season minimum. With the beginning of the rainy season the lake
was again allowed to rise, attaining sill elevation of 232 feet on May 20,
when free flow conditions were reestablished and continued until the
end of the fiscal year. The elevation of Madden Lake on June 30
was 234.18 feet.






REPORT OF GOVlHNOR OF THE PANAMA CANAL 37

MADDEN DAM

Splc(ia;l tests for leakage through ridges in the area whlicll drains
to Rio Chilibrillo were mtlade in the early pa rt of the fiscal year.
Water mixed with (lye was fed into certain explornition holes and
samples were taken in springs suppewed to be caii-ed by l(:ll_;i'ec. As
a result of these tests certain weirs will be abaiindoned and further clay
groutiting will be delayed until more apparent need for it develops.
Maddeni Lake was raise(l to elevation 250 feet and tests were con-
dlucted diniiiiin Augutst and. September 1937, to obtain various data,
relative to thle drumil gate and, to pressures on portionss of the spillway.
Annual checks were made on erosion of the C(ihi:res River, particu-
larly those sections immediately downstream from thle spillway apron
and the power station. Tests of uplift in Mad(lde Dam were carried
on. To make these tests two new uplift pressure wells \\-(re drilled
into the foundations of the dam by boring about 60 feet downward
from the sluiceway gate gallery. Other tests and inspections were
carried on during the year covering the settlement and deflection of
Madden Dam, settlement of saddle dams, sluiceway tests, and chlili-
cal analyses of Madden Lake water and of weir-pool water. A patrol
for leaks on the (Iry sides of the Chilibrillo and Madronal Rivers was
carried out when the lake reached new high levels.

MAINTENANCE OF CHANNEL

Dredges were at work throughout the year dredling and maintain-
ing the Canal channel and terminal harbors for the entire Canal from
deep water of the Atlantic entrance to deep water in tile Pacific. In
addition, work on the various authorized special mainte(llaiiie projects
was continued. Excavation during the year is summarized in the
following tables:


Location
Earth

CANAL PRISM DREDGING Cubic yards
Gatun Lake ----- ------..------ ..... 200
Gaillard Cut:
Ordinary channel maintenance------ .....-----.......... 43,900
Special project No. 13--.---... ---------------------... ..... 12. 500
Miraflore; Lake..--- --------------------------------. 1, 75. 900
Pacific entrance:
Ordinary channel maintenance.-------..------------------. 500
l'r..I. I N o. 1-B. -. ---.. -.......---...- -....... 133. 00I
Total Canal prism........ ......------------------.. ....--------------- 4.
AUXILIARY DREDGING
Cristobal Outer Harbor: Speciai project No. 11 (maintenance). 36. S1o0
Cristobal Inner Harbor: Special project No. 12 ...... .. 300
1'ill..i. Inner Harbor: Ordinary maintenance -............ 2, 073,700
Camaron 'ilul,.rr i (\Mrlil.l'r- Lake..... ...... ..
Tul.il auxiliary dredging.... ...........----------------. .------. 2
Grand total-------......------------------.....-- -- --II


MaIintenance


Rock Total

Cubic yards Cubic yards
.6, 800 92, 000


1. 151.500
150, 700
152, 600
56. 100
27, 300


1, fi5, 400
277. 200
1. 007. 500
2, 036,600
I 161, 100
. I .. 'uJ


215. 200 252. 000
43. 700 51,000
11, (.200 2, 1X9.900
1 in0n i on)


I Does not include S9,500 cubic yards of rehandled material.
2 In addition 5,850 cubic yards of Ch(ainm sand were produced by the craneboat Atlas.





REPORT OF GOVERNOR OF THE PANAMA CANAL


Dredging operations in the Conal 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
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 d(li-trits is swIIi1ii:nrized
as follows:

Northern Central Southern Total

Canal prism: Cubic vards ('ubic yrds CNubic yards Cu1ic vnrds
Earth--------------------------- 3. 200 10. 4 3, i, 20 4,514 00
l ocuk 56, 800 1, 332, 200 236, 000 1, 625, 000
Total ------------------------------------ 92, 000 1 1,942. 600 4, 10, 200 6, 139, 00
Auxiliary:
Farth ---.----.--- .----- --------------------- 44, 100 0 20 4 6 O I 2 1,0
Earth 41,100 2,074,00 211 700
Rock -------- .-- .-- .-- ------------ ------- 25. 900 90 117,300 376, 200
Total ---------------------------------- 303. 000 0 2. 191.900 2. 494, 00
Total:
Earth ----------------- ----- 79,300 610,400 943,800 6, 633, 00
Rock ---------------. .--------------- 315, 700 1, 332, 200 353, 300 2, 001, 200
Grand tctal ------------------------------ 395,000 1,942,600 1 6, 297, 100 8, 634.700

i 89,500 cubic yards rehandled material not included.

ORDINARY CHANNEL MAINTENANCE

Northern district (Atlantic entrance, Cristobal Harbor, and Gatun
Lake).-There was no iiiaiiitenaiice work performed in the Atlantic
entrance or Cristobal Harbor during the year. Maintenance dredging
in Gatun Lake was in progres-; during the year with the dipper dredges
(Giamlnii and Paraiso, and with the crane boat Atlas working with a
clamshell bucket. These craft worked 91/, 30, and 2/1 days, respec-
tively, removing a total of 92,000 cubic yards of earth and rock.
COentral district (Gaillard Cut).-Maintenance dred:ging in Gaillard
Cut, exclusive of slide excavation, amounted to 363,300 cubic yards of
earth and rock. The three dipper dtreldge worked a total of 142 days
during the year in accomplishing the work.
Southern district (Pacific entrance, Balboa Harbor, and Miraflores
Lake).-Mainteinance dredging in the Pacific entrance was performed
by the suction dredge Las Cruces and the crane boat Atlas, which
operated both as a drag suction dredge and with clamshell bucket.
The former worked 108 days, excavaating 1,939,800 cubic yards. The
crane boat Atlas worked 41 days, removing 96,800 cubic yards, 2,300
yards of which were removed from the East Ferry slip. Maintenance
dredging in the Balboa Harbor consisted of operations of the suction
dredge tLas Cruces a total of 128 days, excavating 2,156,400 cubic
yards of material; and operation of the dipper dredge iGamboIhi for a
total of 11 days, excavating 33,500 cubic yards of niiaterial.





REPORT OF GOVERNOR OF THE PANAMA CANAL


The pipe line suction dredge Las Cruces operated a total of 90
d cubic yards.
SPECIAL MAINTENANCE PROJECTS

Prjid cf No. 1.-This project consists of deepcningi the Pacific
eMrtraiice chllinel from Miraflores Locks to the sea bluoys and including
the Balbola inner harbor from 45 feet to a ruling depth of 50 feet
(mean sea level datum). It was begun in the harbor in July 1924.
The total excavation on project No. 1, Pacific past year was 161,100 cubic yards, of which 23,000 cubic yards were
anticipated fill. There was no dredging oni project No. 1, Balb)oa
Harbor, during the year. At the end of the fiscal year excavation on
the Pacific entri;nce portion of this project wa;s 9:3.5 percent complefhll
and on the Balboa Harbor portion was 93.9 percent completed.
Excavation for the entire project to (late has totaled 12,227,750 cubic
yards and at the end of the fiscal year this project was 93.5 percIent
completed.
Project No. 11.-This project, which conii-ist of removing various
shoal areas in the outer portions of Cristobal Harbor, as del-cibed in
detail in the annual report of 1935, was started in September 1934.
The total excavation for the fiscal year was 252,000 cubic yards, of
which 82,400 cubic yards were anticipated fill. The total excavation
to date on this project. is 648,150 cubic yards, of which 120,200 cubic
yards are anticipated fill. Excavation on this project was 79.3 percent
completed at the end of the fiscal vyer.
Project No. 12.-This project, in Cristobal Inner Harbor, ic;ll'd 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
prevniilinig depth in this vicinity. The removal of this shoal opens this
portion of the harbor to naviga itinr for shallow draft ve-;els lea giving
the harbor south-bound or entfririii' the harbor north-bounmd. The
total excavation on this project during the past fiscal year was 51,000
cubic yards, of which 14,900 cubic yards were anticipated fill, bringing
the total excavation for the completed project to 56,400 cubic yards,
of which 16,400 cubic yards were anticipated fill. This project was
completed on September 7, 1937, immediately following which the
area was thoroughly drn;gscd and a hydrographic survey ilkeiin prior
to its being opened for slipping.
PIoTji i No. 13, Gaillard Cu/t.-This project, which consists of widen-
inii C'ilebra 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 tlhe past fiscal year was 277,200 cubic Var'l. of which
258,060 cubic yards \\ eir sluiced m; trial; of this amount 96,000 cubic
yards were mined rock. The total excavation to latee on this project






40 REPORT OF GOVERNOR OF THE PANAMA CANAL

is 1,675,250 cubic yards, and the excavation on this project was 21.3
percent completed at the close of the past fiscal year.

SLIDES

The total excavation from slides in Gaillard Cut during the fiscal
year amounted to 1,302,100 cubic yards. Culebra slide (west) was
the only slide of consequence during the year. This slide was in con-
stant movement throughout the year and on 10 different occasions
showed movements of a most pronounced character. The months of
February, March, and April, were the only months in which important
movement did not occur. The various movements of this slide neces-
sitated practically continuous dredging operations throughout the
year. There was no interference with shipping on account of slides
during the year.
Details of the excavation from slides during the fiscal year 1938,
together with the total material excavated from June 30, 1913, to the
end of the past fiscal year, are presented in the following table:


Fiscal year 1938 Total to date
Location
Earth Rock Total Earth Rock Total

Cubic Cubic Cubic Cubic Cubic Cubic
yards yards yards yards yards yards
Haut Obispo slide (east)---.------ ------ -------- -------- 6,700 5, 500 12, 200
Buena Vista slide (west)------------ ----- ------- -------- 7.000 1,500 8,500
Buena Vista slide (east).----------- ------- -------- --------- 12, 100 17, 550 29, 650
Cascadas slide (east) -------------- ---- -- ---------- --------- 9, 250 49,900 59, 150
White House slide (east) 2, 100 3,000 5,100 28,750 44, 050 72.800
White House slide (west) ----------- 21,-000 100, 550 121, 550
Powder House slide (east)---..----- 10, 600 31, 300 41, 900 115, 250 343. 450 45S, 700
La Pita slide (east)---- ------- ------ ------ ------- 12, 300 96. 700 10n, 000
La Pita slide (west)..--- ---------- ---------- ---- ---- .. ------- 4, 550 42. 900 47. 450
Empire slide (east) ----------------- 6,500 9, 900 10, 400 40, 550 237, 950 278, 500
Division Office slide (west)-------- .--- ---- --------- -------- 4, 150 19, 450 23, 600
Empire slide (west) ---------- --------- ---------- --------- --- -
Lirio slide (east.) ------------- ------ --------- ---------- 83.850 101,300 245, 150
Lirio slide (west) --_---------- --- -..--- 570, 450 1, 987, 750 2, 558, 200
Barge repair slide (eat)----- ------ ---------- -------- --------- 208, 750 474. 50 63, 600
Culebra slide extension (east)------- ---------- --------- --------- 422, 150 976. 200 1. 398,350
lhra slide (west) ------------- 209,000 73, 800 1,002,800 1, 839, 400 10, 808. 250 12, 647, 650
Culebra slide (east) ----------------- 81, 400 154, 500 235, 900 2,773,350 18.132,150 20. 905, 500
Cucaracha slide (east) --------------- -------- 2 42, 950 6, 851, 400 9,344,350
Contractors Hlill slide (north)------- --------- - --------- 13, 800 139. 600 153, 400
Contractors Hill slide (south)--. ---- ---------- ----- ------ 7,900 31, 00 39, 500
Cuea'racha -, r, I Station slide------ ---------- ---------- ---------- 35, 500 204. 600 240. 100
'iucaracha slide (west) ---- ..-------- ---------- ---------- 50, 250 123,. 800 18'), 050
Cucaracha Village slide ---------- 33, 400 77, 400 1 800
Paraiso slide (east)-- -- - 1,950(1 7, 250 9, 200
Cartagena slide --------------- ---------- --- --------- ''. 800 255, 150 315, 950
Total------------------------ 309, 00 992,500 1,302,100 8,862, 100 41,190,800 ,'. 052, 900


Numerous small bank breaks and surface movements occurred at
various unlisted points throughout Gaillard Cut during the year.
One such slide of -pecial importance occurreed on June 1, 1938, when a
quantity of rock ptimliate( at 2,000 cubic yards sheared off from the
face of Gold Hill between the 150 and 200 foot levels and fell into the
Canal, rmi-ing- a shoaling of the channrlel to 36.0 feet, 75 feet west of





REPORT OF GOVERNOR OF THE PANAM.. CANAL


the east prism line. This material was removed by the dredge
Ca.scadar-. 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 vIwere taken of
reference points on east and west Culebra, east CIlebira exteni'icr,
CucurachIa (east.), Cucaricha (south), and Cartagena slides.

SUBSIDIARY DREDGING DIVISION ACTIVITIES

The Cliugres River gravel plant at Gamboa shipped 52,572 cubic
yards of sand and gravel (luring the year, leaving a balance on hand of
39,653 cubic yards, as of June 30, 1938. The crane boat Afla.si made
six trips to Cham6, dredging a total of 5,850 cubic yards of sand,
which was transported in barges to Balboa and delivered alongside
dock No. 7 for the supply department.
The Canal and adjacent waters through. G(iillird Cut, Miraflores
Lake, and Gattiin Lake (including all dump areas) were patrolled and
the growth of hyacinths kept under control. Log booms at the
mouths of the Cliagres and Mandingo Rivers were maintained to pre-
vent hyacinths, logs, l flog.ting islands, and otlier obstructions from
entering the Canal channel during freshets or spilling at Madden
Dam. During the year periodical inspection trips were made in the
Chl;ia-res. Mlandingo, Frijol-es, and Azules Rivers, and along the shores
of Barro Colorado Island, Pena Blanca, and Gigante Bays, dumps
Nos. 1 to 14, and Miraflores and Red Tank Lakes. Weekly inspec-
tion trips were also made of the Canal channel between Gamboa and
Gatun.
The bulk of the work of hyacinth extermination was accomplished
by means of spraiying with a solution of copper sulphate. It is esti-
lmated that 8,000,000 plants went destroyed duriIng the past fiscal
year by this method. The trash Ii;iimllinirl' plant reicmov'ld- approxi-
mately 120,000 plants to be buirnedil during the coriiinii dry c;isin.
Weed burner No. 606 was opIr'i ted to burn grass and hyacinth growths
and destroyed an estimated 700,000 plants. This equipment can be
opera tcd to advantage in shallow areas where the comparative sp)arsity
of hy;ieinth growth makes the use of the spray boat uneeonoiiiil-;.
The total number of hyi'iniith plants destroyed by piulliniu, burning,
and s-prayirnir during the past fiscal year was estimated at 12,000,000.
An e timaltetd 259 cords of driftwood were picked up aloniw the banks
of thie Canal in Gaillard Cut and Gatun Lake, and in Pedro Miguel
Lake and the XMandingli, River. Of this amount, 167 cords came from
the MlandingIi o River, where the old wooden truss highway bridle,
which had become' a n'men;ice to travel on the river, wa;s de-'tr ycdl.
Tle trash handling plant removed approximately 121 cords of drift-
wood from the Chagres River.





REPORT OF GOVERNOR OF THE PANAMA CANAL


EQUIPMENT

The following dredges and other floating equipment were in opera-
tion during the year: Three 15-yard dipper dredges, Cascadas, Gabihoa,
and Paraiso, were operated a total of 9.4 months, 2.5 months, and
11.5 months, respectively. The 24-inch pipe-line suction dredge Las
Cruces was operated for 11.2 months during the year. The crane boat
Atlas was operated for 1.4 months in general maintenance dredging
and in addition made six trips to Chame for sand, spending the
remiiinder of the year in miscellaneous operations; 2.6 months of this
time were spent in reserve or undergoing repairs. Derrick barge
No. 157 was in service for 1.4 months dredging material from in front
of the Camaron Culvert in Miraflores Lake; placing concrete blocks
on the east and west breakwaters at Cristobal; in the service of the
municipal engineering division driving piles for the new launch dock
at Gamboa; driving piles -for the gasoline dock at Gamboa; and per-
forming miscellaneous services. The hydraulic grader No. 4 was in
service at project No. 13 for 11% months a.nd under repairs at Gamboa
one-fourth month. The drill boat Terrier No. 2 was in continuous
service during the year, ex.-epting a total of 3012 days lost because of
bu iler-washii.iig operations and minor repairs. Air compressor No. 29
was in service 11.5 months during the year at project No. 13. Exca-
vator No. 1 was in -ervice 8.1 months during the year, engaged in
grading work for the municipal engineer and for the relocation of the
gravel screening plant at G;iniboa, and handling gravel; excavator
No. 2 was in actual service for 4.7 months in a like capacity. The
250-ton floating crn;i1es Ajax and Hercules were operated on alternate
months except when calls for extra ervnice required the use of both
cranes. Three large tugs, the Trinidad, Cl andres, and Mariner, and a
fourth, the Gwatl, following its commissioning in January, supple-
mented by three small tugs, tlhe Indl;, Bohio, and Siri, were operated
during the year in towing and transportation serviice, one large tug
being out of commission continuously for pii posev of repairs. Follow-
ing the commissioning of the Gatun, the Mariner was held in reserve.
Nine launches were in service during the year. An average of two
launches was continuously out of service for repairs. The Diesel
ferryboats Pi(.e'l / it Roosevelt and Presidente Amiidfr were in service
in connection with the operation of the Thatcher Highway ferry service
at Balboa for 5.1 and 8.0 months, 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 on a con-
tinuous 24-hour basis throughout the year. In the following table





REPORT OF G;OYI.l:NOR OF THE PANAM1\A CANAL


are shown the more important stiftitics relative to the operation of
the ferry for the past 2 fli;dl years:
1937 1938

i .l.' trips nade by the 2 ferries -.. ..------... .----- ..-----......--.....---- 30, 395 31.720
\ i-ii. iv carried:
Panama Canal vehicles -- (i97 11, 3
United Staltes Army vehicles ------------- ---------- ------------11 39, -128
Conimercul trucks.. .- -- ..... --- .. .. ----------- 31.990 11 76
('ommercial Ipassenger cars .... -. . -.. ....._-..- ... ..----------. ----------.. i l', 15 13
Private ears ---.. --------------- . ~.- --------------------- 17 4 193. 139
Total vehicles carried .----. -------------- -- 31 i, 107 347, 703
Total passengers c----rr------.. 1, 1,400 1, l51, 080

M.N I; i ACTIVITIES
AIDS TO NAVIGATION

The inaintenance of niavig;i ti14n aids in the Canal and adjacent
waters was continued by the lighthouse subdivision. Of the total of
692 aids maintained during this past fiscal year, 296 were electric,
137 g;i-, and 259 unlight d; this is an increase of 6 electric aids and
a decrease of 2 unlighted aids during the year. Two visits were
made during the year by the lighthouse tender TIiri ll;ltI to thle Depart-
ment of ConllnimrcV automatic ligjhthouses at Morro Puercos and(
Jicaritar Islands, in the Pacific apprichmii, under existing ;IAoeil mlent
whereby the Pananma Canal attends to the maintenance of these lights.
Eight electrically lighted beacons were established in the Mliinz.znilnlo
Bay entrance to Folks River Basin for tile benefit of coiiineriili and
military amnplibi'alll craft ii-ing these waters. Tabu Rock, located
midway between Taboguilla and Urava Islands in the PI;iiic, was
marked in November 1937 by the establishment of a first-class red
and black horizontal-striped spar buoy fitted with red reflector
buttons. This buoy is located in 114 feet of water, 50 yards from the
rock. The Fairway -.:I buoy, located about 8 miles off the Atlantic
entrance, was peln-iiuin lllltly discontinued on September 30, 1937, due
to the numllerous accidents to aids on this station, including the total
loss of two buovs. A combination steel and concrete tower and tank-
house 33 feet high was constructed at South Fniile light station in
July 1937 and placed in service on November 18, 1937. The Bona
Island LightIhouse, which is at an elevation 700 feet above sea level,
has often bevii erroneously reported as extinguiihileu1. These errorneo ills
reports were probably due to its being temporarily obsciured by mists
or clouds on account of its height. Plans and specifications were
prepa red for the relocation of this light at a lower level on Bald
Rock, a barren, uninhabitedi rock immediately adjircentl to and
sep:i rated from Bona Island by a 150-foot chiianliel. Const ruction
work hasI begun and the e -;hiblishment of the light on the new location
will be completed early in the fiscal ye;ar 1939.
11i2"_-7.'-:-4





44 REPORT OF GOVIY.IXOR OF THE PANAMA CANAL

ACCIDENTS TO SHIPPING

The board of local inspectors investigated and reported on 23
accidents to shipping in Canal Zone waters during the fiscal year 1938,
a summary of which follows with a comparison of accidents in the
2 previous years:

Cause of accident 1936 1937 1938 Cause of accident 1936 1937 1938

Ship struck lock wall --.------- 9 14 5 Tug .1 in ic.-.1 by ship---------- --- ---_. 1
Struck Canal bank _-.---- --- ----- 4 4 Ship .1 im L.:1 i by dredge.------- ----- -- .-- 1
Phip damnaged by tug---------- 1 3 4 Explosion and fire.----.------- -.. --.. 1
Struck dock 3 7 3 n-ui r----.: anchoring _ . 1
Collision --------------------- 2 ------ 1 in-r l.1 previous 2 years- 12 11 ---
Grounded 1 1 ---
Struck wall adjacent to dry Total. ------------------ 28 39 23
dock gate. ------------------- 1

SALVAGE AND TOWING

Panama Canal equipment and personnel rendered assistance to
disabled and distressed shipping during the year as follows:
Steamship Gypsum Prince.-While trainsitiing the Canal on Feb-
ruary 3, 1938, the steamship Gypsum Prince when in Gaillard Cut
developed steering-gear trouble which caused it to strike the Canal
bank with force sufficient to (dai;nige the hull seriously. Leaking
badly and in a -inkiniig condition, the vessel was beached on the west
bank opposite Gamboa. The U. S. S. Favorite was enuiriiirMd in salvage
operations on this vessel for 2 days.
Steamship Ia1iii Lilrios.-On March 26, 1938, after completing
transit of the Canal, this vessel went aground on the west bank of the
Canal channel where the Canal opens out into Limon Bay. The
U. S. S. Favorite was enrI-2;gid in salvage operations to refloat this
vessel for approximately 6 (days, it bfeiny: necessary to remove about
2,000 tons of the wheat cargo.

METEOROLOG T- HYDROLOGY-SEISMOLOGY

Precipitation.-Rainfall in the Canal Zone and vicini ty for the cal-
endar year 1937 averaged about 15 percent above normal. The aver-
;I-e in the Pacific section was 87.80 inches; in the central section,
113.59 inches; and in the Atlantic section, 165.79 inchc-. Annual
totals at rainfall stations i;iircedl from 82.92 at Balboa to 191.81 inchlir
at Porto Bello. February was the month of least rainfall and De-
cember of greatest rainfall. The maximum rainfall in 24 col i-c(utive
hours recorded during the calendar year 1937 was 10.26 inches at
Cristobal on December 9 and 10.
Air it ,Ipi''turfes.-The maximum and minimum temperatures of
record at various stations, revised to June 30, 1938, and the annual
average temperature for years of record are shown in the following
tabuln tion:





REPORT OF GOV\'IKNOR OF THE PANAMA CANAL


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

Balboa Heights ------------------....... 97 Apr. 7,1912 63 Ja n. 27, 90 78.7 32
Madden Dam..---.----.--. -----------r. 98 Y 59 Jan. 30, 1929 78.3 27
Gatun --------------.------------- ---. 9 M5 a. 13 I 66 Aue. 7,1912 180.4 27
Cristobal ---..-------------------------- 95 May 26, 1925 66 Dec. 3.1909 S0.0 30

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

During the calendar year 1937 the average air temperature at Balboa
Heights was 79.10 F., with monthly means ranging from 77.6 in No-
vember to 80.9 in April. The average air temperature at Cristobal
was 80.5, with monthly means ranging from 78.9 in November and
December to 82.2 in April.
Winds anIr an Iidity/.-Monthly mean wind velocities on the Pacific
coast during the calendar year 1937 r;in urged from 4.4 miles per hour in
September and October to 9.1 miles per hour in March, with a maxi-
mum velocity for a 5-minute period of 30 miles per hour from the
northwest on December 6. Monthly mean wind velocities on the
Atlantic coast ranged from 5.2 miles per hour in September to 13.6
miles per hour in March, with a maximum velocity for a 5-minute
period of 34 miles per hour from the northwest on November 3.
Northwest winds were most frequent on the Pacific coast and north
winds on the Atlantic coast. The mean relative hunmility of tihe
at Iiispherev for the c;al'lnd;Ir year 1937 was 83 percent on the Pacific
coast and 81 percent on the Atlantic coast. MIonthly mean relative
humidniity on tlhe Pacific coast rnm led from 74 percent in March to
S prerient in Novemhbei. Monthly mean relative humidity on the
Atlantic coast ranged from 74 percent in April to 87 percent in
December.
Tide. .-Diirin'_ the cailend.ir year 1937 the following e'.trrite tidal
heights occurred at Balboa, the Pacific terminal of the Canal: Hightest
high water, 10.1 feet above mean sea level on May 12; lowest low
water, 11.4 feet below nic;Uin sea level on April 12; and frcts:lit:st r1ing e
between consecutive tides, 20.4 feet on April 12. At Cri-.iibal, the
Atlantic terminal of the Canal, the followinrl extremes occurred:
Highest high \\;iitr, 1.30 feet above mean sea level on Noveriiber 21;
lowest low water, 1.04 feet b li\\ mean sea level on Dcelii ber 18;
and greatest rangi between conrIecutive tides, 1.94 feet on December 18.
Sn1i/iu;lngy.---Two liundred and :lvent y-nine seismic disturbances
were recorded at the Balboa TTei ihts w.istrlouicI station during the
calendar year 1937. Fifteen of these were generally felt in thle Canal
Zone, while 85 had el)pienters less than 300 miles distant, 11 others





46 REPORT OF GOVERNOR OF THE PANAMA CANAL

were of distant origin, and the remaining 183 were so slight that no
estimate could be made of their epicenters.
One hundred and thirty-four seismic disturbances were recorded
during the 6-month period, January to June, inclusive, 1938. Two
of these were felt locally. No tremors occurring during the calendar
year 1937, or during the 6-month period, January to June 1938,
exceeded intensity IV, Modified Mercali Scale, and none caused any
damage locally.











SECTIoN II


BUSINESS OPERATIONS

The bul-irne-- enterprises carried forward by the Panama Canal
and by the Panama Railroad (Co. embrace a nuimberii of icwfivities
which in the United States would normally be carried on by private,
initiative. These activities have been fldevelopelI either to meet the
ined'l- and demands of shipping passing through the Canal, or to meet
the needs of the org;Ii Ai. Iion and its force of employees. The business
enterpri-4 include those sections of the Canal and Railroad or;;iin/-
tions which are (eL.:;;ed in the supplying of fuel, provisions, ship
chandlery, and repairs to vessels; the sale of foods, clothing, and other
essentials to Canal and Railroad employers ; the hanlliing of cargo and
allied operations; and the operation and 1mii;iII;IgeIWiit of the Panama
Railroad and of the steamship line operating between New York and
the Isthmus.
The Canal and the Railroad ar parade -parate org;aiiz;tions, but the
administration of both organizations is vested in the Governoir of the
Panama Canal, who is also President of the Pnamina Railroad Co.
PANAMA CANAL BUSINESS OPERATIONS

Business opera ins of the Panama Canal are conducted -p:;irately
from operatinP- :inti cities pertaining directly to the transiting of
vessels, and government of the Canal Zone. The annual appropria-
tion acts for the Panama Canal authorize the use of moneys ai-Irlng
from the conduct of auxiliary business activiti-es with the proviso that
any net profit derived from such bu-ine-s 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-
suipporfing basis and to include as a proper charge a'ain-tf business
oper:i t ions a fixed capital charge (with some minor variations) of 3
peIn'nt for interest on the investment. In the accounting of profits
to be covered into the Treasury, the amount replre-tntiln' charge-, for
interest on investment is a part of the net profits covered into the
Tre;i.-:r an' d in effect is a reimbursement to tle United Stati -Treasury
for interest paid by it to holders of United States bonds. The invest-
ment in business activities totaled $30,806,850.84 at the be.rllini- of
the fi.-cld year, and 4: 1,.i8,200.s.< at the end (tables 4 and 5, sec. V).
The c:I pital charge for the fiscal year 1938 was $766,378.81 (table 20,
sec. V). The profits of $824,612.60 exceeded this amount by $58,-
2:11.79.





REPORT OF GOVERNOR OF THE PANAMA CANAL


MECHANICAL DIVISION

The mechanical division has jurisdiction over the mechanical and
marine shops, drydocks, car shops, and roundhouses at Balboa and
Cristobal; the design, construction, and major alteration of hulls and
machinery of floating equipment of the Panama Canal, PIIainama
Railr'niid, and commercial business, except the electrical work; the
d(-i- n and technical iia t tei of the railway rolling stock and of floating
craft involving naval architectural subjects for the hulls and marine
Cellgini' in-g subjects for the operating machinery; repairs to all equip-
ment, floa I ing and otherwise, of the Canal, Railroad, and commercial
business (including merchant shippii ng) requiring mechanical or marine
shop or drydock facilities, except electii<-al and automotive repairs;
railway-car inspection, including repair of rolling stock, hostliing, and
manning the railway wrecking outfit; the maintenance of inspection
services, including tests and repairs (except electrical and marine
boilers) for the Ca;il and Railroad, for patvenggr and freight elev;i tors,
for weighing scales and measuring devices (scales, pumps, and meters),
and for clocks, typewriters, and similar instruments; manufacture and
distribution of compre-s ed air, acetylene, oxygen, and hydrogen; and
the fabrication of such machinery or equipment, floating and other-
wise, spare parts, etc., as in the opinion of the Governor may be more
economically or expediently made on the Canal Zone than purchlled
elsewhere.
FINANCIAL

The origin and class of work done by the mechanical division in the
fiscal year 1938 and in the previous fiscal year are shown in the fol-
lowing table:
Gross revenue-class and source

Fiscal year Percent Fiscal year Percent
1937 of total 1938 of total

Class:
M marine ----. .---.. ...-- $1, 955, 172 62.4 $1, 876, 607 59. 5
Railroad. .. ..- 466, 684 14. 9 474, 637 15. 0
Fabricated stock.. --.. .... ..........-- ... ... 349, 557 11.2 287,752 9.2
Sundries-_ 361,389 11.5 516,926 16. 3
Tot al -----. ------------.----- --- -.._ 3-.- -_. 3,132. 802 100. 0 3. 155.922 100.0
Origin:
Pananua Canal.. -.--- ---------- __ 1.525.929 48. 7 1,338,341 42.4
Panamna Railroad ----- ......-......-- 478, 992 15.3 496. 536 15.7
Other United States Departments-------------------- 537, 336 17.2 376, 888 11.9
Outside interests ----- 590,545 18.8 944, 157 30.0
Total -....-....... -........- 3, 132,802 100.0 3, 155,922 100.0


The total expenses of the mechanical division for the fiscal year
amounted to sci,053,732, which left a net revenue from operations of
$102,190.





REPORT OF ( OF .' IVERN'lI OF THEI PANAMA CANAL 49

The marine work listed above included new construction of e-r-ils
for the Canal, overhaul of vessels for the Canal, the United St itv.a
Navy, and otlier departments of thle United States Go verInm(. it, as
well as inercha;int ship repairs. The inc-l.-;-I that may he noted above
in work for outside interests xwas to a large di-'tice the result of
extensive repairs to the S. S. BIr nckom.
)RYDOCKS

Diiinnii tlie year 133 dryldol\kin--; were maulde at tlie Balboa and the
Cristobal drydocks, furtlihr' details of which are given in the table
below:

Biloa (Cristohal
Vessels belonging to-- drytock dirydock

Panama Canal Divisions ...-------- .-------------- --------------- ---- 22 5
United States N v ....-------------------------------------- 23
Ignited Staites Arm y------ .------- . ----------- ----- -- -------- 3 5
Other Dcpartments of the U. S. Government----------- --- --------..- 1 1
Panama Railroad Co-..------ .-- -- -------- ----------- .- -- 1 5
Outside interests-.---------.-----. ---------------------------------- 4 28
Total .....------------------------------------------------- 66 67


The Balboia drydock was unoccupied only 2 (lays of the year
(neither of which was a working day), while the Cristobal drydock was
unoccupied 82 days (of which 34 w ere working days). Last year the
Balboa drydock was unoccupied 32 dayss and the Cri tobal drydock
96 (lays.
MARINE REPAIR WORK

By far the most important mirline repair project of the past year
was performed on the S. S. Bennekom, of the Royal Netherlands
Steamship Line, which had igone aLriround in June 1937 on Negrillas
Rock-.. off the west coast of Colombia. This vessel was refloateod,
towed to Balboa, and pinced in the drydock. The damage to this
vessel extended over the entire bottom from stem to stern; 80 damaged
shell plates were renewed; and an additional 80 shell plates were re-
moved, straightened, fired, and replaced. The renewal and straight-
enillng of the internal framing, longitudinals, and inner bottom were of
coin-ideraibly greater magnitude than the work on the shell phltiing
proper. In addition to this, the cinirine foundation had been un -et tled
and the shifting hiad been driivenl upwards by the groiunding, so that
the main engine and shafting had to be completely realigned after the
vessel was undow-ked and water borne. The permanent repaiirs on this
ve sel necessitated the continuous use of the drydock from July 19 to
October 11, 1937. This project was the largest commercial repair
project. that has beien performed by the iechli.aical division in at.
least 12 years.





REPORT OF GOVERNOR OF THE PAN.AMA. CANAL


With the exr-cptions of the S. S. Bennekom and the fishing boat M. S.
Ti'yl,, which foundered in Panama Bay, repairs to conunmmercial vessels
consisted principally of urgent repairs to vessels trainitirng the Canal
or to small craft operating between the Canal ports and nearby ports
in Central and South Ameriii1. Quite a number were of a nature
that required the vessel to be placed in drydock, such as a IIII1:ged
propeller or a broken tail shaft, but the majority of repairs as a rule
were not large.
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 craft attached to the Submarine Base at Coco Solo.
There has been a decline in repairs to the United States Navy sub-
marines at the Cristobal Shops due to the fact that the craft now
operating in local waters do not require as extensive periodil.d over-
hauls as those formerly stationed here.
Marine repair work performed for foreign governments included
principally the drydocking and general overhaul of various transports,
*destroyers, cruisers, and gunboats for the Canadian, Peruvian,
Colombian, Mexican, and Brazilian Governmiiien ts.
The Diesel-electric tug Gatun, (d1eigned late in the fiscal y';ir 1936,
was completed during the past fiscal year. This tug, with an over-all
length of 125 feet 7 inches, was launched on May 11, 1937, and
delivered to the dredging division on Detcember 30, 1937, for active
service. The total shop cost of this tug was $430,323.
As facilities were available throughout the year, a number of the
units of the dredging and marine divisions were drydockecd and
overhauled.
WORK OTHER THAN MARINE WORK

The usual amount of light and heavy repairs was afforded loco-
motives of the Panama Railroad Co. In addition, the Balboa round
house overhauled locomotives on a commercial basis for the United
States Army and for the marine shops of the mechanical division.
Sp'ci-fi cations were prepared for purchase in the United States of a
two-car gagisoline motor light train se;itilng 100. Scrapping of surplus
freight cars and salvage from them of spare parts was completed during
the past fiscal year.
The manufacture of repair parts in a large and diverse quantity
for use in the Atlantic locks d iniig the 1939 overhaul was carried on
during the latter half of the year. This was begun at an earlier date
than usual to afford employment during a temporary slack work period
and to avoid the expense of importing machinists from the United
States to assure completion of the work by the time required. A





REP01,1' OF GOVERNOR OF THE PANAMA CANAL


great deal of mill work, including sash and doors, was manufactured 1
for use in the construction of new quarters and public build ngs at
the various Canal vill;iges, particularly at the G(amnboa town site.
Three cylindrical steel fuel oil tanks, 7 feet dimi-eter by 35 feet long,
were built for the Cia. Piianmna. de Fiier.;i y Luzx (light and power
companyy, Panama. An unusually 1;ge amount of malio.i y Ilgs
was sawed into merclhantable lumber for local Panaiania lumber
dealers and land owners.
Duringiii the past fiscal year work was completed on a towing loco-
motive for the locks division. Tiis order lad lwbee given the mecihan-
ical division in the fiscal year 1935 as a stand-by jot) to tide over
during h;iek periods of work.
PLANTr IMPROVEMENTS
The new oxv-acctylene plant was made available for maximum
production and considered finally completed in February 1938.
The former gas plant was renovated and repartitii 'ied to include
offices for various mechanical division personnel, a storage and repair
room for comlpre-'ed air hose and fittings, and as a workshop and
materials store for marine electricians. A new structure was built
to replace the former storehouse for drydock blocking and shores;
however, this new building was in use at the close of the fiscal ye.ar
as a teiiiporary storehouse for rigging stores. A new rigginr loft
was begun. on the site of the old rigging loft in November 1937 and
was complete except for minor storage (-cks and( pa iing at the close
of the past fiscal year. It is planned to occupy the building about
August 1, 1938.
Numerous new machines for both metal and wood working had
been ri'ceived or were on order at the close of the past fiscal year. A
small frequency changer to convert 25-cycle (the only available local
current) to 60-cycle had been ordered. This will permit the iine of
standard 60-cycle wood-worling machines. A 20-ton crane was
purchased as a replacement at Cristobal, and a three-t age high-
pre iire air compressor, which had beemn turned over to the Cristobal
shops by the United States Navy, was installed.
ELECTRICAL INSTALLATION AND REPAIR WORK
The principal activitiess of the electrical divi in n are as follows:
The operation and maintenance of the power system; the opel tion
and maintenanlce of telephone, telgr;|!, electric clock, fire alarm,
printing telegraph, and railway -igniii systeimni; the operation and
maintenance of the street lightlinr system; and the installation and
maintenance of such electrical eqjuipiiment as is required by other
divisions of the Panama Canal or other departments of the Govern-
ment, and by such commercial and other vessels as may require





REPORT OF GOVERNOR OF THE PANAMA CANAL


electrical work performed while transitin'L. the Canal or calling at its
terminal ports. Following is a comparison of the total expendlitutres
of the electrical division for the past 2 fiscal years:

E expenditures 1937 1938

MI:intenanre and operation of power system ------------------------- $553. 763 $579,975
C'on ruct ion and maintenance of electric work ------------------.--- ---- 510,328 42, 4443
AM; inteni[nce andl operation of telephones- _ ... .---- 122, 642 130.357
Maintenance andl operation of railway signal-. ___- ___-_ _____-__. -___-_- 38, 014 40, 895
Total...---.---- ------.------------------------------------------ 1,224. 752 1,233.670


Further details of the power system may be found on paige 33 of
this report, and of the telephone system on page 61.
There were 502 jobs completed in the marine electric shops for
Government, coini1ne minal ports or transited the Canal. In the armature shop at Balboa,
494 items of work were completed, the majority being for departments
and divisions of the Panama Canal and Panama Railroad. The
district wiremen handled a total of 19,475 trouble calls during the year.
The handling of the foregoiing work required the issuing of a total of
5,981 work orders with attendant reports, accounting, etiiimates, and
miscellaneous correspondence, as compared with 5,431 work orders
for the previous year.
Installation of electric ranges and water bea terms 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, 2 of the three-burner
type, 2,052 of the four-burner type, and 17 of the six-burner type in
use.
PURCHASES AND INSPECTIONS IN THE UNITED STATES

The purchase of gceniral supplies in the United States for the use
of the Panama Canal on the Isthmus is made by tlhe Washington
office except for certain purchases made by assistant purl'chasing zaIrents
at New York and San Francisco, and except that the Panama Canal,
medical section, New York general depot, United States Army,
Brooklyn, N. Y., purchases the principal Imedical and hospital supplies
ii-ed on the Isthmus. In addition, the assistant purcihasin-g 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 tralnsshipmcent to the Isthmus.
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 iinijority of purchases), and final inspec-
tion of materials delivered in the United States are made by the force






REPOIUT OF GOVERNOR OF THIE PANAMA CANAL


of inspectors in the field under the supervision of the inspecting
engineer of the Panama Canal at Washington, assisted by thle oficI-rs
of the Corps of Engineers, United States Army; the Bureau of Stand-
ards; the Bureau of Mine- ; the Bureau of Chemistry, I)epartmient of
AgricultIIre; the Medical Departienit, United StaItes Army; the Bureau
of Construction and Repair, and the Bureau of Engineering, Navy
Department.
The volume of purchases made through the Washlington office of
the Puiniinia Canal is indicated by the summary following.:


Fiscal year Fi( 1 ir Fical ear
1936 i 193S

Number of purchase orders placed ------------------- 8, 267 1 9,004 8, 198
Value of orders placed -------------- $4, 314, 429 $4, 912, 582 $4. 281,979
A rI''L: of purchases since 1904 made through Wash-
Ington office .------- $229, 020, 042 $233, 932,624 $238,214,603
Number of disbursement vouchers prepared ------------ 11,528 11,911 12,128
Value of above vo chers -..---------------- $4, 96, 424 $5,254,771 $5,322,678
Number of collection vouchliers prepared------ -- 321 318 308
Value of above vouchers ------------------------------ $159, 632 $238.075 $281, 993
Cash discounts taken .. -----------------------------$35, 978 $42.,076 $49,119
Realized from sales of surplus material- ---------- $23, 632 $123,925 $90

1 Largest number of orders placed Iduring ainy fiscal year since 1904, when construction work on the Canal
was liegun.

STOREHOUSES AND SHIP CHANDLERY

In addition to its main function of requisitioning, storing, and
issuing gerne lI supplies for the Canal and Railroad (exclusive of the
iierchi iiidiiii.g operation of the commissary division) the Canal Zone
storehouses handled ships' chandlery as well as sales of otlier supplies
to the Uniii(d States Army and United States Navy. The following
statistics cover the more important operative features of the store-
house during the past 3 years:

1936 1937 1938

Gross revenues-sales and issues. .------------------- .-- $5. 503, 19 $5, 617, 417 $.,, 334, 905
('Cost of material, plus -'1I'r LI inii expenses..----------------- 5,418, 2.57 5,575.321 5,264, 415
Net revenues -------- --..-- ----- ------------ 84 91 72, 0961 70 490
Inventory as of June 30 .. $1, 20(, .14 $1. 08, 566 $4,982 868
Scrap a:nd obsolete stock on hand, June 30 - $31, .)04 $24,826 $19, 156
N um ber of '. in 'iii.- sales. -- --... --... . 1, 830 1,922 1,773
Steamship sales value . -. ... -. .- --. -------.. $46, 184 $19.9114 $1, 213
Scrap metal sold in local n rket........... .... ... tons- 134 3 12 412
S r i. metal sold for export --- .. .... -.......... do--- 1,129 6. 026 6. 454


OBSOLETE AND UNS:IVICEABLE PROPiEIu AND EQI NIMENT

During the year disposition was made by sale, or by destruction
where the items hiad no money value, of obsolete or unserviceable
property and equipment which had an original value of $557,493.
Replacemenrts were nimile as necessary.






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 throu-hit pipe lines and pumping plants of
the Panama Canal.
The following table summarizes the op.-i t ion of the fuel oil handling
plants for the past 3 years:


Fuel and Diesel oil:
Handled at M ount Hope (Atlantic side) ..... _. __-- -
Handled a;t Balboa (Pwacific side) _-___--- _.-- -------
Total barrels handled..------ ------. .... .. .
Received by the Panamrna Canal. ----------___...-----
Used hby the Panama Cant al- _-__.-___-_______-.__.-
Sold by the Pananma Canal. _...-.----- ..-- ..---- .-
Miscellaneous transfers on tank farm -------------------
Pum ped for outside interests --_.---- ------- --------
Total barrels handled ___------------._._-_--__------
Number of ships discharging or receiving fuel or Diesel oil:
Panama Canal craft ------ ----------------------------.
All ot ers .---------- --_ .. ---------.------_--_
Total...- .-- ------
Gasoline and kerosene:
Bulk gasoline received .... -allons-
Bulk kerosene received ------------------------- do
Financial results of operations:
Total revenues __--- ----_ __- _. _..- -
Total expenditures (including cost of sales) -----_ ----
Net revenues _- _- ....._ ... ___-....__....-.--- ---


Fiscal year Fiscal year
1930; 1937

BaLrrels lBarrlds
4, 4.67. S30 4, 688. 168,
5. 39, 712 4.344. 893
10. 06S, 542 9. 033. 061
424.323 424. 126
424. 672 223. 625
1 945 147.891
39. S84 17, 094
9, 172.718 8.220.325
10, 06S, 542 9, 033, 061

74 90
1.674 1,929
1.748 2,019

4,055. 143 3, 394 833
970, 001 606. 895

$828, 908 $757, 567
649, 221 627, 716
179, 687 129, 851


BUILDING CONSTRUCTION AND 'MAINTENANCE

The principal projects of building construction work completed
by the constructing quartermaster's division during the past year
were as follows:
Or"'/I ldd.-No new construction.
Gatun.-Erection of gasoline service station.
CGi //I i, U1.-Erection for the gold population of a clubhouse, play-
shed, elementary school, and 32 buildings for family quarters; erection
for the silver population of a clubhouse, theater, elementary school,
and nine 12-family quarters; erection of a commissary with separate
sections for the gold and silver employees; erection of a police sub-
station, property storehouse, garage building, supply department
office and shop, paint storehouse, and health department storehouse.
P(dro Miguel.-Erection of constructing quartermaster's shop
building.
-i'ron-Balboa.-Ere-tion of new garage and shop buildings for
housing tile motor-transportation division; erection of niagistrate's
court building, Balboa post office, and rigeLr shop.


Fiscal year


Barrels
3. 754. 037
3. 733. 629
7.487,666
272. 034
214.021
37. 424
15. 257
6. 948. 930
7, 487. 666

111
1. 903
2. 044

3, 927, 821
1.491, 106

$621, 614
593,305
28.309





REPORT OF GOVERNOR OF THE PANAM.A CANAL


All others.-Erection of nurses' quarters at Corozal; erection of
ward 18 at Palo Seco; erection of health department storehouse in
Panama City.
In addition to the new coiint ruction, maintenance and repair work
during the past year Iagregated $765,590, of which :4337,530 was
expended on maintenance of quarters for gold employees and $129,724
on maintenance of quarters for silver employees, the balance of
$29S,336 having been expendiled on all other maintenance work per-
formed by the constructing quartermnater's divi ioii.
The total volume of con-4truction and maintenance work for the
past 3 years is suinii ri.zed as follows:

1936 1937 1938

For Canil Divisions:
Repair and maintenance work --...-- ....- ..........----- $594, 457 $512, 537 $665, 604
Construction ork---.. .------------------------------- 1, 273, 141 1,530.,809 1, 381, (i7
For the Panama Railroad Co.:
Repair and maintenance work---...----------------------- l3, 715 46, 537 41, 93
Construction work.....--- -------------------------------- 5,205 173, 170 4!i, )13
For other departments of the Government, employees, and
others.-------------------------------.--------------------- 50,649 71,015 58, 051
.. I ........-.........-------------- ---------------- 2,087,227 2,3:37.0 fS 2, 193,901
Total maintenance --..----------------------------------------- 958 633. 089 7i5, 593
Total construction------------------------------------------ 1, 25. 269 1,703,979 1, 428. 310
Total-..-------------------------------------------- ----2. 087. 227 2,337, OtS 2. 193, 90

QUARTERS FOR EMPLOYEES

Gold nemployi .- No changes were made in the general regulations
governing the ai ployees. The f;iniily quarter-, situation is slightly less acute than
In-t year due to new quarters constructed at Gamboa and the removal
to that point of 52 families from other districts. On June 30, li:;s,
there wer0 56 applications on file for origin- l assignment to gold
family quarters, a ildt ci;se of 43 from the previous year.
Silver cmple.m'/ I.-The operation of silver quart; -, was continued
on tile same basis as in previous years. Nine 12-family houses were
con-itructed at Gaminboa, all of which are now occupied by employees
and tlhir families moved mainly from Paraiso. The dcmlllinid for
quarters from emplov ces on the silver roll is still far in excess of the
supply, there beiuiu 1,145 accepted applications on file on June 30,
19 Over 50 pri-rciit of tlhe silver employees continue to reside
in the cities of Colon and Panama, where rcit;al rates are considerably
hiLh~er than chargeil by the Canal for Government quarters.
A number of tile old frame quarters, both gold and silver, have
been dii-posed of by -;ile to Iighilo-t bidders, and others have 1been
condellmned berCi; of excessive minitenance costs due to deteriora-
tion. It is believed th;it the present scale of rental charges on both
gold and silver quart erv- will be suricfient to cover deprecia-ition as well





REPORT OF GOVERNOR OF THE PANAMA CANAL


as all other costs of maintenance and operation once the old frame
buildings 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
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 Inlge
number of construction camp type of fraime 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 movedI from towns that were abandoned upon enlmpletion of
construction work. It was realized that their replacement would
require an extensive construction pr'graiil over a period of years.
The matter was placed before Congres(- 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 de.igntdi and built for the permanent
force were of concrete. On account of the lIirge first cost of concrete
buildings, designs were resorted to of concrete column and first-floor
beams with wood frame structure above. After expericiice in the
construction and maintenance of various types of houses, and after
giving con-idleration to original cost, upkeep, etc., the wooden struc-
tunre; supported on concrete beams have been adopted as standard,
and are prn'ferred by a majority of the employees.
The quarters constructed in Gamboa d(luring the fiscal year 1938
compri--dl 52 family apartments. A total of 22 family apartments
are authorized for Gatun, and 29 for Ancon-Balboa during the fiscal
year 1939. There remain to be provided in the replacement programll
during the future years, 384 family apartments and 533 bachelors'
apartments or rooms.
The following table shows the number of apartniints for American
employees' quarters which were to be replaced as of June 30, 1926,
the replncwnments by years up through 1939, and the balance remaining
to be replaceil after the fiscal year 1939:









REPORT OF GOVERNOR OF THE PANAMA. CANAL


Ll
5-.
C
cs

C)
si
*3
E-


0 -I


I I


I


CS-






~5-C1 -:


-~-. CS1 h


x.
-t






p
I-
~


I- *I 3 -. -0 O

: .I""^


C


C-




C-

?t .

i.-
=- t




3-


I-f :-zC--:,, 2-Ia


C,



' s




v- S


-c




'S I


E
ks

%P
VC
U
C~,;2
~llr~
3rP

e.
LF"
j


-c











C-




x


0 o t y 0 Cs C^ m -*

; ; o - i





:18) r - *' :1-0
ZL 7 | "
7 71





REPORT OF GOVERNOR OF THE PANAMA CANAL


MOTOR TRANSPORTATION

The transportation division is charged with the operation and
maintenance of all motor and animal transportation furnished to the
departments and divisions of the P;naina Canal and Panama Rail-
road Co. This division is required to operate on a self-sustaining
basis, primarily to supply t ra importation at a minimum cost to the
Panama Canal and Panama Railroad Co. Revenues during the
past year totaled $393,743 and expenses $372,243, which left a
net revenue of $21,500. A considerable amount of heavy li;iling in
connection with various building and highway construction projects
wais accomplished during the year.
An entirely new plant was erected during the year covering an area
of 171,108 square feet on Gaillard Highway, Ancon. The main
building is of composite and steel construction and houses 12 separate
units which compose the main plant. The old plant at Ancon was
abandoned April 1, 1938, and the buiiilinigs were disposed of by sale
to the highest bidders. Considerable new equipment was purclihaed
and installed. During the year 84 cars and trucks and 2 trailers were
purchased, and 76 cars and other pieces of equipment were retired.
At the close of the fiscal ye;i r 356 cars and trucks, 3 trailers, and 4
motorcycles were on hand.

PANAMA CANAL PRESS

The operations of the Panama Canal Press were continued under
the same policy as heretofore. The printing plant c.irriic. stocks of
papers, etc., and manufactures such necessary statlinie'cy, forms,
etc., as a 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 pLublication, iThe Panama Canal Record.
The following statistics outline the operations of this plant during the
past 2 years:

1937 1938

Gross revenues _--.-... _.. .-- __-- - __.- -_--.. ------ ------- .. .-----._ $220, 16f; $228.718
Totll output expense (includes supplies not processed in the printing plant) ------ 2 70210 220, 598
Net revenue ----..- -- -.. --------------... ------------..-------.. ------ 13 10 120
Mannfiaclu red output (included in total output above) -----------------------54 12, fi73
Inventory on hand, June 30 ----. .-.-.-------- 73. 280 80, 498


REVENUES DERIVED FROM THE RENTAL OF LANDS IN THE CANAL ZONE

Rentals on building sites and oil-tank sites in the Canal Zone totaled
$45,814 for the year, as compared with revenues of $46,349 for the
fiscal year 1937. Rentals of agriciiltural lands in the Canal Zone
totaled $12,072, as compiipred with $13,062 for the preceding year.





REPORT OF GOVERNOR OF THE PANAMA CANAL


At the close of the fiscal yerc; 1,132 licenses were in effect t, covering
2,244 hectares of agricultural land within the Canal Zone. Thils is a
reduction in the number of licenses under the previous fiscal your of
55, and a reduction in the area held under liceiis lls of 145 hectares.
This reduction was largely the result of the policy adopted in May 1935,
providing g that as a health icaLisure no more licEnces for agricultural
lands would be issued and thint no sales or transfers of lolding-s llluder
licenses would be permitted.

BUSINESS OPERATIONS UNDER THE PANAMA RAILROAD CO.
The Panama Railroad Co. w1as incorporated in 1849 under the laws
of the State of New York for the purpose of building and opera ting a
railroad across the Isthmus. In 1904, before aictIiml construction
work on the PIna;ma Canal was started, the United Stotles Govern-
ment secure(l control of the capital stock of the Pun;nina Railroad
Co., which it now owns or controls completely, and has operated the
company since that date through a board of directors.
By Executive order of May 9, 1904, the President of the United
St;tte., directed that the general policy of the railroad be controlled
by the United States and that thie 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 estalblished
and operates various business activ-ities upon the Isthmus incidental
to the construction, operation, and maintii;ance of the Canal. Thus
the Unitedl States Government is conducting the business activities
relating to the Canal enterprise under two distinct orga;niz.;tiions:
first, the Panama Canal, which is a direct branch of the Governmient;
and second, the Panama Railrc;md Co., which is a Governmenrt-mo ned
corporation. As the activities of the railroa(id company are cove red
in detail in its annual report, only the Ilmjor features of operation as
they relate to the Canal administration are covered in this section.
In addition to the opera;ti1in of the trarins-Isthmian railroad, the
enterprises of the Panama Railroad Co. include comiui-ii.i ries, which
are retail general stores selling primarily to Govern meant employees;
cargo handling n;tivities at the harbor terminals; hotels; coaling
plants; a steamship line; telephone system; and certain real estate
opera;tii rns in the Republic of Pan:1iini;.
The opera;ti mns of the railroad proper, harbor terminals, cooling
plants, stables, and bl r '.-.re transfer were continued throLughiout the
year under the direction of the general imi;i;inger of the railroad; the
telephone system under the elect lir;l engineer; and the commissaries,
Hotels Waishington and Tivoli, and siubsidimn i activities under the
chief quarterniiaster. On Febru;iry 1, 1938, there was cstrblishled a
real estate section of the Panama Railroad Co.; since that date renting
111'0272-38-5






6jU REPORT OF GOVERNOR OF THE PANAMA CANAL

of land and buildings has been handled by the chief, real estate-
section, which position has replaced that of the land agent.
Business operations on the Isthmus, carried on by the Panama
Railroad Co., yielded a profit of $1,183,453 for the fiscal year 1938, as;
compared with $1,358,596 for the previous fiscal year, a decreaseof
$175,143.
THE RAILROAD LINE

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 revenue during
the fiscal year 1938 from the operations of the railroad proper (not
including subsidiary business activities) amounted to $1,600,748.
Tonnage of revenue freight amounted to 280,205 tons, as compared
with 311,007 tons during 1937, a decrease of 30,802 tons.
Statistics covering the various features of railroad operations during
the past 3 years are presented in the following table:

1936 1937 1938

Average miles operated, Colon to Panama-----------.------------.- 47.61 47.61 47.61
Gross operating revenue ..-.----------- --------------------------- $1.456,165 $1,609,744 $1,600,748.
Number of passengers carried:
First class ------------ ------------------------------------------ 161,813 161. 443 159,574
Second class------------------------------------------------- 177,631 194,338 199.323,
Total------------------------------------------------ 339.444 355,781 358,897:
Revenue per passenger-train-mile-------------- ---.------------- $3.64 $3.78 $3. 42:
Revenue per freight-train-mile. ---- -------------------------------- $11. 09 $11.88 $12. 63:
Freight, passenger, and switch locomotive mileage ----------------- 293,942 316,031 326, 118
Work-train n mileage .---------------------------- ----------------- 4,803 15.605 13,916
Passenger-train mileage-------------------------------------- 122.904 133,975 142,257T
Freight-train mileage-..------------------------------------------ 72, 442 73,477 68, 5241


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
statistics summarize operations for the past 3 years:

1936 1937 1938

Total revenue-------------.-- ------.--------------------- $1,662,461 $1,812.959 $1,898,086,

Tons Tons Tons
Cargo handled and transferred--.----------.--.--. --------------- 1.373,179 1,446 ,818 1,530.287
Cargo stevedored -----.------.-------------------------------- 483,381 581, 533 617,137
Total.--- --.----.------ ----------.-----------.------------ 1.856,560 2.028, 351 2,147.424,
Cargo ships handled .-------.---.----.-------------------------.--. 4,584 4, 589 4, 601
Banana schooners handled----.---.------..------------------------- 1,306 1,203 1,326.
Agency service furnished vessels.----------------------------------- 161 164 106;





REPORT OF GOVERNOR OF THE PANAMA CANAL, 61

COALING PLANTS

Operations of the coaling points in the fiscal year 1938 showed a
substantial improvement as compared to operations during the past
6 years. Sales increased by 31,983 tons, or 44 percent, as compared
to the previous year, and were greater than any year since 1931.
The following statistics summnarize the operations of the coaling plants
at Cristobal and Balboa for the past 3 fiscal years:

1936 1937 1938

Gross revenues ---------. -----...------------..-----------------. $333, 499 $552, 140 $767, 126
Tons Tons Tons
Coal sold-----..--------------............................----..---..-----------...------------- 41,813 71,861 103,844
Coal purchased --.---------------------.---------------------- 54,925 59.944 124,884

TELEPHONES AND TELEGRAPHS

The gross revenue from the operation of telephones, electric clocks,
and electric printing telegraph nmichines amounted to $239,433.
During the yenr 1,528 telephones were reconnected or installed, and
1,494 were removed or discontinued, resulting in a net increase of 34
telephones for the year. At the end of the fiscal year there were
3,049 telephones, 52 electric clocks, and 24 automatic printing tele-
graph typewriters in service. Local and long distance telephone
calls handled through the automatic exchanges averaged 55,024 per
day this year, as compared with 52,608 calls per day last year. This
results in a daily average of about 18 calls per telephone.

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 1938 a total of 1,542 leases and 17 licenses
covering the use of Panama Railroad properties in the cities of Panama
and Colon During the past year 900 square meters of land in the
city of Panama, not used for business purposes, were sold.
As previously stated, a new section, the real estate section, was
established on February 1, 1938, to handle all real estitce operations
of the Panama Railroad Co. on the Isthmus, including any real estate
operations carried on for the Panamin Canal. This section has oper-
ated since that date under an official designated as the chief, real
estate section, which position has replaced the former one of land
agent.
Pursuant to authority of a public resolution of Congress approved
July 10, 1937, the Secretary of War appointed a board of 3 appraisers
to examine and determine the value of the lands on the Island of






62 REPORT OF GOVERNOR OF THE PANAMA CANAL

Manzanillo owned by the company. The board began its task at a
nieeting held in Ancon, Canal Zone, on February 3, 1938, and sub-
mitted its final report to the president of the company on April 21,
1938.
COMMISSARY DIVISION

The primary fiunctiion of the commissary division of the Panama
Railnrad is to maintain adequate stocks of food, clothing, and house-
hold supplies to meet the needs of Government personnel and of
various United States Government departments on the Istlmus. In
carryin-ii 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 11g1n< i1s and personnel of
the United States Government, except that sales of ice, cold storage,
food, and other essentials are made to commercial steamships tran-
siting the Canal or calling at its terminal ports.
Net sales for the year totaled $8,518,242, as compared with $8,113,-
111 for the previous fiscal year. At the close of the year the value
of merchandise on hand was $1,079,298, as compared with $1,131,903
at the close of the fiscal year 1937. The ratio of sales to inventory
indicates a theoretical stock turn-over every 2'5 months, or approxi-
mately five and one-half times a year. The distribution of sales for
the past year as compared with the 2 preceding years was as follows:

1936 1937 1938

T. S. Government (Army and Navy)..--------------------- $942,044 $1,053, 630 $1,286, 237
The Panama Canal------------------------------------------ 737.113 795,227 823.936
The Panama Railroad-- -------- ----------.------ ----- 259, 287 307,811 273,139
Individuals ind companies ---------------------------- 313. 501 265, 590 270, 259
Commercial ships -------------------------- 304,548 354,342 327,944
Employees--.-- ------ -- -------------------- 5, 374. 016 5,827,402 6,054,100
Gross sales ------------------------------------------- 7,930,509 8,604,002 9,035,615
Less discounts, credits, etc ------------------------------------ 353,388 490,890 517, 373
Net sales--------------------------------------------- 7,577, 121 8,113,112 8,518,242

PURCHASES

Pumrclhases during the year aggregated $6,150,750, an increase of
$200,738 as compared with the previous year. The following tabula-
tion shows the value of the various cl;is-es of materials purchased, as
compared with the 2 preceding years:

1936 1937 1938

Groceries ------------------- ---------- ------------- $1. 603, 082 $1, 780, 970 $1, 861, 179
Candy and tobacco ------------------------------------ 340, 615 330, 148 328,061
llousew res ----------------------------------------- 363, 354 347, 647 340, 051
Dry oods --- ----------------------------------------------- 713, 353 776, 306 829. 161
Shoes --------------- --.-------------------------.------------ 20, 211 203,551 212,065
Cold storage ------------------------------------------------ 1,030,777 1, 020,563 1,175,048
Raw material.................------------------------------------------------ 4 438.402 471, 335 418, 734
Cattle and hoes-------............----------------------------------------180, 410 189, 174 201, 178
Milk and cream -- ----------------- ------------- 160, 866 185,853 224,883
Dairy products. --------------------------------------------- -- 569, 784 644, 466 560, 390
Total.------------........----...--------------------------------- 5, 60,854 5, 950, 013 6, 150, 750






REPORT OF GOVERNOR OF THE PANAMA CANAL 63

MANUFACTURING AND OTHER PLANTS

The output of the various plants of the commissary division dur-
ing the past year had a total value of $1,815,227, as compared with
$1,690,882 for the prectdiing year. Statistics covering the operation
of these plants during the past 3 fiscal years are presented in the fol-
lowing table:

1936 1937 1938

Laundry:
Pieces handled ----------------------..------------ ------- 4, 111..307 5, 57016 6. s 616
Value of output...-------...---...------------................----------------- $187, 671 $211, 620 ''. 204
Bakery:
Bread baked... -- ----- .--... -------------------- aves.. 4,307,400 4,370, 515 4, Fe'. 850
Value of output .--------- -------------- --------------- $281, 547 $310, 389 .. 402
Coffee roasting plant:
Coffee roasted fr sf ;-r ..... .............p.. d- 2' 076 *'.. .849 ''. ,451
Value of putput..----.----------------------------- -------- 406 '.1, 840 ., 455
Ice manufact urine plant :
Ice manufactured ---.--.-------------------- -----tons 22.737 17.894 -' 660
Value of output.. ..........- ---------. -------. ------ $160, 164 $130, 701 $125,584
Ice cream and milk bottling plant:
Ice cream manufactured... ---------------- ----- gallons 12., 130 132,043 133, 225
'M ilk bottled ... ....-----------... -----------------uarts 053, 524 1,254. 231 1,487,887
Cream bottled -------------------------------------do 25,201 23, 37 33,284
Value of output ..-------------------------------------- $318, 417 $353. 93i $406, 091
Rll in- i ll nI.l .r i..r. \ -ii of output-------- .-- ..--.- $269,470 $284,731 11'.. 473
Abattoir:
Cattle killed ---------.----------------------------- head 4,008 4,266 4,313
Value of output-....--.------------------------------------ $253,235 $244,288 $248,717
Value of total output-----.---------------------------- $1, 604, 441 $1, 690, 882 $1, 815, 227


HOTELS

The Hotels Tivoli and Washingtoin were operated by the Pilli:na
Railroad Co. without any change of policy. These hotels are an
essential adjunct to the Canal for the purpose of providing suitable
accomuollidations to people having business with the Canal, foreign
visitors, Amnerican tourists, visiting Government officials, and others.
The gross revenue from hotels was $:' 20,584, as compaiii red with
$360,830 in 1937, and the number of guest-days was 45,402, as com-
pared with 51,922 in 1937.

MIND DAIRY

The operation of the Mindi dairy continued as in previous years.
Milk production for the year amounted to a total of 370,721 gallons,
as compared to 316,074 gallons in the preceding fiscal year, an in-
crease of 54,647 gallons. Fresh milk was supplied to the Army and
Navy during the year in addlition to the regular Canal Zone trade.
The old milk cooling plant was replaced by a larger and more modern
plant. Buildings and pastures were maintained in good condition by
the dairy operating force.





REPORT OF GOVERNOR OF THE P.1ANAMA. CANAL


PANAMA RAILROAD STEAMSHIP LINE

The gross operating revenue for the steaminhiip line for the fiscal
year ended June 30, 1938, amounted to $1,546,118.06, and the gross
operating expenses amounted to $1,714,453.13, resulting in a net
deficit from operntilkns of $168,335.07. The operating deficit com-
pared with tle net loss for the fi .al year ended June 30, 1937, of
$212,206.90, shows an in'-rca.P in the net revenue of $43,871.83.
For the year ended June 30, 1!:>s, the tonnage carried by the steam-
ship line amounted to 188,014 tons, as compared with 178,999 tons in
the previous year.
The steamship line carliid freight and p;issn.Iie.rs for account of
the Panama Canal and other departments of the Government of the
United States at imaiterial reIductions from tariff rates, which amounted
to the important sum of $535,710.11. Had regular tariff rates been
received by the steamship line for such freight and pa;senger services
performed for the Panama Canal and other Government depart-
ments, its income would have been increased by $535,710.11, and its
operations for the year would have resulted in a profit of $367,375.04.


S4











SECTION III


ADMINISTRATION
DEPARTMENTS

The organization of the Panama Can:il on the Istahmus embraces
five principal (d1;i rtments- -n aimely, operation and maintenance,
supply, accountingg, executive, and health. In addition to this, an
office of the Panania C(;ial is maintained in W;isiiiinLton, D. C. The
Panama Railroad Co., a Government-owned corporation condu "tiing
busine- cntierpris-ics on the Isthmus, is a distinct unit, yet it is vlo-zly
a flilia ted with the Canal organization.

OP'Il.ATION AND MAINTENANCE

The department of operation and maintenance embn:ccs functions
related to the natui;il use of the Canal as a waterway, including the
lretded ch;nnel, lockI, dams, and aids to navigation, acceo-;ry activi-
ties such as shops and drydocks, vessel inspection, electrical and
water supply, sewer systems, roads and streets, hydrogralphic observa-
tions, surveys and estimates, and miscellaneous construction other
than the erection of buildings.

SUPPLY

The supply department is cha rged 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 phlats, an experiment garden, and a
printing plant, and the supplying of motor transportation facilities
to the various departments and divisions of the Ca;n;il and Railroad
-organ iza t ions.
AccoUNTING

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 Railro ad ; the checking of timenleeping; 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 exectiv\-e department embraces the general office business of the
Governor and all administrative ai ti-vities invested by Execiutive order
within the authority of the executive secretary. Under this depart-
ment come the administration of police and fire protection, postal
service, customs, shipping-c iiiiiiis-ic5i( neri work, estates, schools,
in'Iril coIrr-pondence, and records for the organization of the Canal
and Paini;a Railronad, personnel records and administration, wage
adjustments, statistics of nav\igatioi n, information and publicity, rela-
tions with Panama, and the operatioii of clubhouses, restaurants,
moviinz-pict 're thatfr',it-, 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 enfoiceiment of qiiar;intiiin regulations.

PANAMA RAILROAD CO.

The operations of the Panama Railroad Co. on the Isthmus are
geil-rally related closely to the work of the Canal. As the Governor of
the Panama Canal is president of tlhe Panama Railroad Co., the heads
of d(epartiiirenits of both the Canal and Railroad organizations report
to him. The general administration of the composite organization is-
cenitered in the exrciitive office, and the accounting work in the
account inii department; the Panama Railroad and the business divi-
sions of the Canal organization are billed for their proper share of the
geniral1 overhead work.

CHANGES IN ADMINISTRATIVE PERSONNEL

Appointments in official positions during the fiscal year 1938 were
as follows:
Mr. Edward S. Randolph was appointed designing engineer, special
engineering section, on July 1, 1937, by transfer from the office
engineer -ectiini. 'Mr. Randolph is in cli;irge of the special engineering
section and reports to the enginiieer of maintenance.
The position of adminiiilittive ;assis;iiint to the Governor was.
established on July 22, 19;"7, and Mr. E. A. Erbe was appointed to
fill the office on that date, the position of assistant executive secretary,.
which he formerly held, being abolished.
Lt. Col. Frederick II. Petters, United States Army, was appointed
superintendent of Colon Hospital on October 2, 1937, vice Lt. Col..





I.EPORT OF GO'IV%" NOR OF THE PANAMA CANAL


James A. Bethlic, United States Army, relieved from duty with the
Panama Canil.
Lt. Col. Cleve C. Odom, United States Army, w;is appointed
superintendent of Corozal Hospital on October 2, 1937, vice Lt. Col.
John B. Anderson, United States Army, relieved from duty with the
Panfiima C.nl.
Capt. Thomas A. Symington, United States Navy, was appointed as
assistant to tlhe Governor on October 2, 1937, and on October 3, 1937,
was appointed marine superintendent, vice Capt. Walter F. Jacobs,
United States Navy, relic'eved from duty with the Panama Canal.
Mr. Alfred F. Morris was appointed chief of the real estate vrtioln,
Paiinaima Railroad Co., on Februniry 1, 11:1is. The esitblisl n ient of
this section, effective February 1, 1938, abolished the title of land
ag ent.
Commander George T. Howard, United States Navy, was appointed
assistant to the marine superintendent on May 25, 1938, and on
May 28, 1938, was appointed captain of the port (Balboa), vice
Conu;inander Bertrni ni J. Rodgers, United States Navy, relieved from
duty with the Panama Canal.
EMPLOYEES

The force employed by the Panama Canal and the Panama Railroad
'Co. comlprises 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 Pan;ili;nanian
silver coin, while those recruited from the States, such as skilled
craftsmen and those occupying executive, professioiinal, 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 o categories of employees. The terms "gold" and "silver" are also
applied to quarters, coiiiiiiss;iries, clubhouses, and other facilities.
The goldl employees (those c;iried on the gold p;iy roll) are, with a
few exceptions, Amiierican citizens, and embrace those employed in the
skilled t r;ldes and in the executive, supervisory, profe sin;ial, sub-
professionn;l, clerical, and other positions where education, t raining,
and special qualifications are required.
The force of silver employees is comprised almost entirely of
natives of the Tropics. A conn.idi1erable number of these are Pana-
manians and the majority of the others are workers who were brought
to the Isthmiius from various islands in the West Indies dinrinul the





HrEPOr.T OF GOVERNOR OF THE PANAMA CANAL


early construction per idl of the Canal, or are 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
trad es.
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 tropi'-;.l labor. These two classes are carried on
separate pay rolls and the conditions of employment applicable to
each are raili-:illy difflrcnt. The division of labor between the two
classes of employees is a matter of long custom in tropical countries
and our practice conforms therelwith.
PERSONNEL ADMINISTRATION

Special attention was (directed during the year toward the develop-
ment of more complete information rega;rdling the personnel resources
of the gold roll org;iniiza tion to facilitate the transfer and advancement
of qualified employees and to provide for emergencies. As a means of
obtaiiing this information, a personnel inventory form was prepared
and diti-tributed to all gold roll employees, except department and
division heads, with instructi! ins to furnish information concerning
their tr:iiiiing and experience, their desire for transfer, occupations
in which they had specia.li/.ed or possessed special skill, and related
qualifications. The completed forms are being analyzed and cross-
indexed so that full inforiimi ti(on regarding employees may be available
readily in time of elviergency, for purposes of transfer, and for maxi-
mum utilization of the occupational and other skills of gold roll.
employees.
An in-service training pro'grai'i was conducted during the past year
for the group of 21 student engineers who had been brought into the
Paniiriin Canal service in the past 2 years. Work begun in the 2 pre-
vious yea rs was continued during the past year in connection with.
improving different phases of the employment procedure and with.
the rating system for g-ldh roll employees.







REPORT OF GOVERNOR OF THE PANAMA CANAL 6U


GOLD EMPLOYEES


The distribution of the golden personnel on June 1, 1938, and June 2,

1937, is shown in the follow ing tabulation:



June 2,1937 June 1,1938 Increase Decrease


THE PANAMA CANAL

Arcounline dpirtmOnt ........... ...... ........... 170
D 'ie l lv i Il I i w' n - ... .....................| 189
Asi nicnl r.ri-inI er -'1 rni.iih lln.l l. c'
O()fll i : rl il.rt-r .... ................... .......... 73
Iur ". i. [II I i t iI i ii.'l . ... .. ......... . ..... 23
-ilr' I r 1 r. *I .'..... . . ................. .... 1714
Locks division.-------------------------------------.. 339

E \elt .iA e *I? .1 i Irwrif
lE:\I 11 ...[ I .-- .' .-.-..- ---------------------------- 146
Collector...---------------------------------------- 15
Paymaster---------------------------------------- 12
Clubs and playgrounds--.-------------------------- 59
Bureau of posts------------.- ----------------------- 67
Civil affairs and customs.-------------------------. I r
Fire protection-.----------------------------------- 47
Police and prisons.--------------------------------- 164
Si -l r ll . . . . . ... ......... .........- 4
S . . . . . . . . . . . ... .. 140
Fortifications division---------------------------------- 3
Health department.----------------------------------- 306
Marine division..--------------------------------------- 190
Mechanical division----------.------------------------ 464
Supl1.1. *! [. ri ri ilt
t illic.-- 1 in i 'jiartermaster. ---.--------------------- 10
C-ri-fll ItlI t rII t i in il ...-r ---------------------. --------- 77
1 'i-r i I l Iii rirriii i r' . -----------.-------- --.- 24
Farm bureau.----------------------------------- 3
Fuel oil plants ------------------------------------ 38
Storehouses---------------------------------------49
Motorcar repair shop-.----------------------------- 27
Motor transportation. ----- ..-------------------- 32
Panama Canal Press_--------------------------.._ 10

Total, the Panama Canal..---------------------- 2,984

PANAMA RAILROAD CO.


General manager:
Offices -------------- ..-.- -..-----.-.-.--.-
Railroad transportation...----......----...----.-
Receiving and forwarding agency-....------------
Sup[pj lepririunient:
S'.iiiiii- irt division.-------..--------------------
Hotels.---------.. .------------ .---------..-....-.
Dairy farm..---------------------------....--------

Total, Panama Railroad Co.----.---------------

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


39
66
92

220
14
3

434

3,418


11

2,944




41
66
99

218
15
3

442

3, 386


1
2



2


4
6
1
1
3
1
7


------- --^--
5
------------



7
2
2
------------
1
1
------.-----
1

51


2 -.----...---
~7 ~ ... ... ...


-----------



10

61


11
------------
------------
56
8

.. .........6























91
------------
-----------
-----------
--.-----.---
-----------.




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


--------- a.
------------
------------
------------


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


2

93


Incrcanses may be noted in 21 of the 36 units listed in the above

table and decreases in 8 units. The apparent decrease of 56 in the

locks division is due to the fact that certain temporary employees,

who had been taken on only for the biennia;l overhaul of the locks,

were separated from the service subsequent to June 1, 1937. The

decrease in the section of the office engineer is mainly due to the reduc-

tions among temporary employees who were taken on to handle the

extra work of completing designs and estimates 1 year ahead of

construct tion.


4 ............
----.----- I






70 REPOnT OF GOVERNOR OF THE PANAMA CANAL

RECRUITING AND TURN-OC 11R OF FORCE, GOLD EMPLOYEES

The follow iwn table shows additions to the gold force and separa-
tions from it in the fiscal year from July 1, 1937, to June 30, 1938.
Employmentii are classified as made in the United States or on the
Isthmus, and separations are cli.s-ifi

Opera- Panma
Gold force tionand Exec- Supply Health Account- Railroad Total
tint and iame\at Railroad Total
nance

Em plo; ed or reeniIloN. ed izi thle United
States 2-- 27 1 3S ---------- 10 102
li li .1 or rcemnployed on the
Istlini s. ----.. --------- -------- ---- 0 6 3S 35 9 32 265
Tot al addition-s---- ------------ 11f s88s 39 73 9 42 367
Re-i-ned......-. ---------------------- 52 43 8 39 6 17 165
Retired:
A -e ---- -------------- 19 1 2 2 3 2 29
ia ilil -- ----------- -------- 9 7 2 -------- 1 2 21
Volintar ---------------------- 12 6 2 2 --------- 6 28
D ied --------- ----------------------. 4 3 1 1 1 1 11
Discharved:
lRedution of force 13 1 2 1 1 -_ - 18
Expirition of temporary employ-
m ient --- 2S 10 13 23 ---------- 2 76
Cai ------------- 4 3 1 .------ --------- 2 10
Physical di ability. o-----r 1 --------- -------- -------- --------- ._--.---- 1
V orEmai t of 4 n '-l rior officer 1 .-. -.. ----- --- -- --------- 1
S .. .rentice hi 1 -------- -------- -------- ---------- 1
li i.l:ni I.-* iO (involuntary)
accountt of mar riae)------------- ---------- 4 ----- 1 ---------- ---------- 5
Ill health... -------------------- -- ---------- ----- 2 --- ----- ---.-.---. 2
Transferred to silver roll -.------------ 2 1 - .- - .. -_ 3
Total separations_--------------- 1406 79 31 71 12 32 371

i There were 37 substitute teachers and 4 student assistants employed on a part-time basis on gold roll
during the fiscal year 1938 whose employment were not shown in the above table.
The Panama Canal: Panama Railroad Co.:
Additions..------------------------------- 325 Additions --------------------------------_ 42
.- ir .. .. .. . ...... ............. 339 Separations-.....---------------------------- 32
Net separations---.................... ----------------------14 Net additions.----.---------------------- 10

Based on an average aggregate gold force of 3,393 for the year, the
371 separations shown above give a turn-over of 10.93 percent from
all causes, as compared with a turn-over rate of 12.04 percent for the
fiscal year 1937, which was ba;isd upon an aveirge of 3,364 employees.
The turn-over rate when di-cliarges by reason of expiration of tem-
porary employmentt are excluded is 8.7 percent for the fiscal year 1938
as comparvdl with 7.8 p frcinit for the fi'e;il year 1937.
The W:-lington office of the Panama Canal ttlenderedl employment,
on requiiii ions above the grade of laborer, to 191 persons, as against
470 the previous year. One hundred and six persons ic-repted tenders
and were appointed, covering 31 classes of positions. This was a
decrease from the previous fiscal year when 263 appointments were
mad(le. The d(c1;i-np was due mi inly to thle fact that there was no
lock o'. erliiiil as was the case during the previous year. Two thou-
s;ifdi11 Eirlit hundred and eighty-three persons (2,635 from New York,
72 from New Orleans, 17 from other Atlantic coast ports, 153 from





REPORT OF GOVERNOR OF THE PANA.1A1. CANAL


Pacific coast ports, and 6 via air transport service), including new
appointees, employees returning from leaves of absence and members
of their families, were provided transportation from the United
States to the Isthmus. This is a decrease of 102 from the previous
year. One of the reasons for the decrease is that a number of em-
ployees arranged their own transportation via cominerciual line
steamers, while others held return transportation for which they hlad
already arranged prior to sailing from the Isthmus for the United
States.
APIIn ENTICE-LEARNER PROGRAM

The Panama Canal and Panama Railroad Co. con tinted during the
year the policy of training local young men and women for skilled
craft and clerical positions as a means of providing suitable replace-
ments for future retirements, resign; t ion and other types of ter-
mination of service anglm gold roll employees. In accordance with
this policy 47 young trainees were appointed, from June 1937 to July
1938, to various apprenticeship and learnership positions. Of these,
11 were clerical learners who are in training for classified civil-service
posit inns under a plan which has the approval of the Civil Service
C"II issI in. In June 19:3)S, additional non-civil-service examinat ions
were held locally in connection with the proposed employment of 15
additional apprentices and 8 additional learners. Seventy-five appli-
cants competed in the written and performance tests, and registers
of those attaining passing grades were submitted to department heads
for selections for appointment in these training positions.
Some study has been made concerning the establishment of a train-
ing program for the most highly qualified young silver applicants,
for the purpose of increasing the occupational skill and employ-
ability of the silver labor supply through junior helper employment
at a nominal rate of pay during the period of training.

WAGE ADJUSTMENTS

The Panonima Canal Act provides that salaries or compensation for
Panama Canal employees fixed thereundier by the President or by
his authority "shall in no instance exceed by more than 25 pe-rccent
the salary or compensation paid for the same or similar service to
persons employed by the Governmiu ntt in continental United States."
It has been the policy generally to pay to United States citizens em-
ployed on the gold roll the full 25 percent differential above pay for
similar r work in Governnent employment in the United States, within
the limit of appropriations and subject to the preservation of coordi-
naltion within the organization. This is justified by the special
disadvantages inherent in the climatic, economic, and social conditions
prevailing on the Isthmus.






72 REPORT OF GOVERNOR OF THE PANAMA.. CANAL

The prevailing allocation of employees included under the classi-
fication coincides for the most part with the initial allocations made
in 1928 and 1929 immediately following the passage of the Welch
Act. As the duties and re.-ponsibilities of positions change from time
to time, due to reorganization, clhiiiges of personnel, creation of new
positions, etc., the cli--ification committee miet frequently through-
out the year to consider and take appropriate action on reconmiienda-
tions for regralings as submitted by heads of departments and
di\ i iclns.
The wage board, cnl iiting of the assistant engineer of maintenance
and a repre-entative st-lcted by an orgaonizati'in of employees and
approved by the Governor, held one meeting during the year in con-
nection with a reque-t of the railroad locomotive engineers and
conductors.
The salary board, composed of the heads of the nine major depart-
ments and divisions of the Panama Canal and P anama Railroad,
hJeld no nmcntings during the year.
The complaint., board, established for the purpose of investigating
and reporting. on complaints of employees, held one mIewting during
the year in connection with an appeal from the discipline administered
to two railroad locomotive enigin-rr- and two conductors.

SILVER EMPLOYEES

The number of employees on the silver roll by departments or
divisions on the last force reports, June 1937 and June 1938, is shown
in the follow ingi 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
number of employees at work miay change by several hundred within
a short time, according to varii;tit'ns in the demand for hourly rated
labor. The summary shows only those actually at work on June 1.,
1938, and June 2, 1937:

June 2, 1937 June 1, 1938 Increase Decrease

THE PANAMA CANAL
Accounting department------- --------.......- ...---- 3 3 ----------- ------------
D redgi g li ii --......-.........-..............- .... 85i 849 -.-.-.------ 37
Assistant engineer of maintenance:
Office engineer .-- .---------. -------.. -----. ---.. 5 4 1
Surv eys-miieteorology ..... ...................... 50 69 19 -.......
Electrical division... ........ ..- .. ....-----.-... 1S5 213 28 -----------
Locks division ... ........-...-- ...... ........ .53 6(72 ---------- 181
'.1 ill i- l division --------..----------- -------------.. 0 1, 05X 192 .--
Executive oeinirtilcnt:
Executive odlics. ..-.-....-- -.-- -----------.-.-...-. 36 40 4 -----------
I'-i' i n r -r-.. ... ........-- - -........--- .-- ..- 2 2 2 2------------
Slii. i.. iyroun i--------------------------- 239 260 21 ---------
Huroeau ofri ots.- ------. ------------------------- 18 18 -- - ----------
Civil ialiTairs anid custois .......................... 1 ........... ..... .....
Police and prisons-------.. -------------------------- 45 46 1 ...- ....--
l\ -ll r,li-L i'ir..... ... ..... .... ........ 2 2---. ----------.-----
Sb lirulb .............. ...... ........... ..... 116 122 6 ----- ----






REPORT OF GOVERNOR OF THE PAN.\AMA CANAL 73


June 2, 1937 June 1, 1938 Increase Decrease

THE PANAMA CANAL-continued
I Ilih department----.----...---------------------..--. 868 850 .........--------.. 18
Marine division ---------------------..---------.. ---------........ 496 58
Mechanical division---... ......------------------------------- 892 938 46( -......
Siip I,. dep r iiiment:
(in--lrultinL' quarterinaster------------------------ 806 975 169
District qu irtrnii i .-r-. .. .. .. ..... . 3.f8 353 .-----.-.-. 15
F.irin bureau--..-----------... ------..- ----------------- 24 86 62 - ...
Fuel oil plants----...----.-------------.----------------. 52 53 1
Storehouses.-..-----..--------.-------------------. 269 289 20 .
Motorcar repair shop.....................------------------------------- 47 49 2----------
Motor transportation --...--- ----....-.-... ---- 137 121 -----....- 16
Panama Canal Press--------------------------..----- 74 75 1
T0iil, the Panama Canal-----..-------------------....... 7,340 7,737 665 268
PANAMA RAILROAD COMPANY
'General manager:
Offices------------.----------------- ---------------- 386 279 ............ 107
Railroad trn ortfation. .----------------....... ------------ 113 105 8............
Receiving -iil II".rn.iirii agency---.--------------- 888 834 -----------. 54
i-'iui'bl department:
Commissary division------------------------------- 1,128 1, 184 56
Hotels-----....------------------------------------ 192 169 ..-..--- ... 23
Dairy farm---...------------------.----------... -- 112 105 ------------ 7
Total, Panama Railroad Co---.------------------- 2,819 2,676 56 199
Total force.-------------------------------------- 10,159 10,413 721 467


Inc reases may be noted in 16 and decrease-s in 11 of the 32 units
-employing silver personnel. The increase of 192 in the force of the
municipal division is entirely temporary and arises from the fact that
a great deal more work was being done on dock 15 early in June 1938
than at the same time a year earlier. The increase of 169 in the
constructing quartermaster's force is due to the fact that that division
is now handling all new construction work for the Canal, wlher.'-:is a
great deal of this work had been done on contract during the previous
year. The decrease of 181 in the silver forces of the locks division is
due to the fact that certain temporary employees who had beeni t.iken
on for the overha iiul of the Pacific locks in the previous dry season were
still carried on the rolls on June 2, 1937. The decrease of 107 lifted
under the offices of the general manager of the Panama Railradl Co.
was caused by the temporary cessation of the reb;allasting program in
the last 3 months of the fiscal year 1938.
Silver roll employment is frequently for relatively short periods.
The employment or reemployments during the fiscal year totaled
5,284; the terrine tions, 4,846.

WA(E ADJUSTMENTS, SILVER EMPLOYEES

Wages of employees on the silver roll bear no definite relationship to
rates of corresponding classes of employees in the United States, due
to the fact that these employees are for the most part natives of the
Tropics and their wage scales are generally established at levels based
on the prevailing wages for tropical labor in the Caribbean area.





REPORT OF GOVERNOR OF THE PANAMA CANAL


The maximum rate of compensation authorized for native employ-
ees, under Executive orders, 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 and
has rpminined 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 pay:iabl in some instances to employees who are shifted temporarily
from their re4iular duties to other duties which involve disagreeable,.
dirty, or Eia zardotus working conditions not taken into consideration
when the employee's regular r;tes of compensation were fixed.
The silver wage board, which is composed of the heads of the major
departments and divisions and administrative heads of a few of the
smaller orI-;iiiizations which employ a considerable force of native
labor, reports on the rates of pay and other conditions of employment
affecting silver emiployee-. This board held no meetings during the-
year.
APPLICANTS FOUND ELIGIBLE FOR EMPLOYMENT

During the year 1,560 applicants for employment were interviewed
and subjected to physical examination; many others showing less
evidence of fitness were rejectedl without further examination. Of
the 1,560 who passed through the eligibility procedure, 155 were
rejected and 1,405 received cards attesting their eligibility. Of these,
845 obtained employment during the year and at the end of the year
560 had not obtained employment. The eligibility work of the past
year brought the total number of those interviewed and examined
under the procedure to 3,859 at the close of the year. Of this number,
3,353 were made eligible and 506 were disqualified because of physical
disability or other causes. Of those made eligible, 2,169 had obtained
employment and 1,184 remained unemployed at the end of the year.

REPATRIATIONS

Under an act approved May 7, 1934, an appropriation of $150,000
wNi- provided by Congress for the purpose of repatriating unemployed
aliens who have rinlcired at least 3 years' service with the United
States Government or the Panama Railroad Co., on the Isthmus, and
n111becrs of families of such alien former emplo( yees, including expenses
of t rInsportation and the payment in cash of not to exceed $100 to
each such alien former iiemployee for a;ssistance in rehabilitation after
rep;itri;ition. It has been the practice to allow cash payment of'
$25 to a sinlLrle eiiployee, $50 to one with a wife, and $10 additional
for each child, with minor var;i tiiions in special circumstances, within.
the limits of the imixiniumn of $100.





REPORT OF GOVERNOR OF THE PANAMA CANAL


During the fiscal year 1938, $3,301 was expended for the repatrii-
tion and rehabilitation of 40 former eniiployees accompanied by 30
members of their families, a total of 70 persons. There is reluctance
on the part of these people to accept repaitriatioln due usually to the
long period that they have resided on the Isthmus and due to a belief
that their children have somewhat greater opportunity for employ-
ment here thl;n in the native land of their parents.
Including those handled in 1938, approximately 1,137 persons have
been rep t ria ted since the appropriate t im became available. These
included 569 former' employees and 568 menmihers of employees'
families. Of this fund, $41,925 has been expended at an avvrrn.ge
expenditure (repAtr nation plus allowance) of *;:';6.87 per person rep; t-
riated and an average cost of $73.68 per employee rejpatriated.
The Canal will continue to offer the opportunity of repatriiation
and a sum for rehabilitation in their home country to former employees
with at least 3 years' service while the fund lasts. This may relieve
slightly the unemployment situation on the Isthmus, but will have
relatively little permanirent effect under present conditions because of
the relatively high birth rate among the tropical inhabitants.

CASH RELIEF FOR DISABLED EMPLOYEES

The President of the United States approved on July 8, 1937, the
act of Congress entitled "An Act Authorizing Cash Relief for Certain
Employees of The Panama Canal Not Coming Within the Provisions
of the Canal Zone Retirement Act" (50 Stat. 478). This act provides
that the Governor of the Panama Canal may pay cash relief to such
employees of the Panama Canal not coming within the provisions
of the Canal Zone Retirement Act as may become unfit for further
useful service by reason of mental or physical disability resulting
from age or disease; and also for cash relief to such former employees
of the Panama Canal not coming within the provisions of the Canal
Zone Retiremniit Act as had within 3 years prior to the date of enact-
ment of the act been separated from the service because of unfitness
for further useful service by reason of such disability. Such cash
relief is not to exceed $1 per month for each year of service of the
employee so furnished relief, with a maximum of $25 per month,
nor to be granted to any employee having less than 10 years' service
with thie Panama Canal, including any service with the Panama
Railroad Co. on the Isthmus of Panama.
During the past fin;l year a routine was established for carrying
out the provisions of this act and was put into effect on March 29,
1938. Payments to the first former employee found eligible to
receive the benefits of the act were begun, effective June 1, 1938.


1I011-72-1S --6


75






76 MIl.l'KRT OF GOVEI.NOR OF THE PANAMA.\ CANAL

By the end of the fiscal year payments had been approved for 37
uddllitiilol employees or former employees. During the year 253
applications for disability relief were, received. Of these, 59 were
transit fitted to the di-z;i1ility relief board for action (including the
38 which were approved during the year), 21 were found ineligible
beca uls of the date of termination, 7 were found ineligible because
of the cause of termination, 7 of the applicants were found fit for
further service and continued in the service, 3 applicants died before
their cases were acted on, 2 were continued in Corozal Hospital,
and 2 cases were suspended for the present. The remaining 152
appli ca tions were in various st;ig e- of development.

PANAMA RAILROAD SUPERANNUATED EMPLOYEES

Effective March 29, 1938, treatment of Panama Railroad employees
found unfit for further useful service by reason of age or disease was
tlinrwc after to be the same as the tlre;tlii(elt established under the
circular for employees of the Panama Canal coming under the act of
July 8, 1937. The Panama Railroad Co. had established in 1928
provisions for pension or disability relief pay for its superannuated
aIli'll employees. Since June 1, 1928, 22 such employees unable to
give further useful sU\ ice have been given lump sum payments rang-
iiivr from >'L-' to $500, and 305 llnployees have been granted monthly
paynmnts mraiLuir from $5 to $30. Nineteen such cases had been
acted upon duirini. the fiscal year 1938 prior to March 29, 1938. Since
1928, 102 individuals granted monthly payments have died, been
trani.rr'l'e to Corozal Hospital, disappeared, or otherwise become
separated from the roll, leaving 203 on the roll for monthly payments
at the end of the fiscal year. The following table shows the number of
those -r;rinted monthly and lum p sum ;payments and the number still
TrhcEcivi!: monthly payments at the end of the year:

SDied or otherwise separated (year)
1V (linth- TI'otal Still
Fiscal year ly pa- IR liv-
n" leits tIircl Prior 1929 1102 1931 P . I ...1 .r. ... *. g

I'ri r.. ... .-..- ... .. ...2 2 ? 2 -- .-- --- ------ ---- ------
192S.. .....-- - -- ------- .....- - ---- ---- ---- ---- ---- ---- ---- ---- 1
192 1 1- - - -- -- I1
1930...-... ....... ... 7 2(6 33 ...1 5 I i 1 6 1 1 11
19-31.- -.. 2 13 1 . :3 2 -- - ---- 2 1 5
192. ------------------ 2 2 26 -- .. 2 1 2 4 3 ---- -- 12
19:1 ................ 3 67 70 ... .. .... 1 7 4 4 6 4 41
1934....... ..-.. 5 62 7 6 2 3 1 2 48
19:35...-- ..----. ....- 2 32 ... .. 2 4 2 2 20
1936..... ..----- --..-- 1 31 35 .. 1 4 3 26
191737..... ...... ...... . 27 2---- --- 1 4 22
1938..----.-----------------..--- 19 19 --- ... .. .. ----- ---- 2 17
"I'alrfl ........... 22 305 327 2 1 8 5 2 21 12 16 17 18 203





REPORT OF GOVERNOR. OF THE PANAMA CANAL


UNEMPLOYMENT
Unemployment is a major social problem on the Isthmus, as else-
where. The growth in population among the families of both .rlleri-
can and native employees is in excess of the recruitment needs of the
Canal and Painama Railroad Co. With respect to the Aimerie;in
population, the rate of graduation from high schools and the junior
college is somewhat in excess of the total replacement needs in per-
manent. positions e;IIh year and the replacements are in many cases in
positions for which the local young people are unable to qualify. The
development of the apprentive-learner program, together with
increased attention to vocational trminiing in the schools, is directed
toward fitting young Americans for employnernt in skilled crafts and
other positions requiring specialized training. The applrentice-
learner program, or plan of instruction through employment plus a
half-day's lihooling each week, has limitations of expense and execu-
tive minan;gemient, as organizations find it difficult at times to make
economical or convenient use of the trainees in their work.
A similar excess supply of young people for employment on the
silver roll exists among the native population. All recruitments for
the silver roll are inmade locally and there lihas been no shortage of labor
for even the higher grades of silver roll employment. There have been
some short;irre- of qualified applicants for semiskilled work who are
relatively young and oceasionol difficulties in securing individuals of
high skill, such as cooks, but in general the supply of semiskilled
employees has been equal to,the demand. In the levels of lesser
skill and of plain labor there is a great excess supply. Efforts of the
Canal are directed, in the schools and in advice given to silver roll
applicants, towa rd the development of skill on the part of young
people so that they may have eligibility for employment in the kinds
of work for which the demand is fairly high.
While efforts are made and will continue to be made to improve the
situation with respect to unemployment, it is not possible for the
Canal alone to attain a lasting solution. From a personnel standpoint
the procedure for the Canal is to make employment regularly and
consistently on a merit basis, using the individuals best fitted for
service and to give steadily such opportunities as it can for applicants
to fit themselves for employment.

EXPERIMENT GARDENS
The Canal Zone plant introduction gardens and experimental sta-
tion were established in June 1923. The gardens. which include green-
hou ses, nurseries, and experimental plantings, embInce approximately
125 acres of land, and are devoted to the propatga tion and cultivation
of a very wide variety of useful and ornammental plants from all parts





REPORT OF GOVERNOR OF THE PANAMA CANAL


of the world, primarily for the purpose of deterniining their adapta-
bility and value under local soil and climatic conditions for general
propagia~tion on the Isthmus. The work of the experimental garden
is under the supervision and direction of the Governor of the Panama
Canal; liowever, many of the activitiess are carried on in close coopera-
tion with the United States Department of Agriculture, and the Canal
Zi11nc experimental gardens funriction much the same as would a tropical
station of the Agriculture Department. The value of these gardens
as a tropical laboratory for development of plants useful in industry
of the United States has been definitely established.
In August 1i:17 a landscape unit was formed as a part of the perma-
nent.or' ;;iization of the experiment gardens. This now unit lhas been
created in response to a growing need that hlas become increasingly
apparent during the past several years. After construction of the
Patin:n a Canal and the establishing of permanent town sites, con-
siderable thought and effort were given to the development of attrac-
tive landscapes. Some of the resulting effects have become widely
known, such as the royal palm planting on the Prado in Balboa and
the living-tunnel effect of the Chinese banyan trees planted along
Roosevelt Avenue. After these initial creations there follow ed a
period (luring which there was no unified supervision of landscaping,
and this work was largely carried on without relation to any precon-
ceived plans or ideas. The special need for attention to the general
problem of landscaping arose in connection with planting for the new
town site of Gziniboa.
The work of e.xchaning plants with other experinm-ental stations,
botanical gardens, and individuals in various parts of the world was
continued. As a result a number of interesting and valuable plants,
se((eds, and nuts were received to be used for local experimentation.
Particular stress is and has been given to the propagation of plants and
trees valuable as a food source, such as bananas, pineapples, avocados,
mangoes, oranges, etc. Experiments with plants and trees having
or thought to have potential value in the commercial world are also
being carefully carried on. A total of 38,734 fruit trees, ornamental
shrubs, etc., were distributed during the year, the greater part of
which were transplanted in the Canal Zone.
Spirei;il research has been made during the past few years on the
growth of the teak tree, in an endeavor to better understand the
correlation between plant growth and rainfall on the Isthmus. An
interesting development has been made of the S'q:/'iiriin, Clyntiv.rIni
from plants received in 1931. A new species of this tree has developed,
and it is expected tliat this will become one of the outstandingly
beautiful trees on the Isthmus both for shade and for street planting.
Duringiii the year a toolhouse, a workshop, and a greenhouse were
constructed to replace structures deteriorated to a degree where





I:EPORT OF GoVC.IiNOR OF THE PANAMA CANAL


maintenance was impraticf;ile. Paths totaling 5,748 feet were con-
structted during the year by prison labor to permit visitors and buyers
to better view the outlying plants and trees.
Orirginally the gardens were supported by rents from ;igiiriiultural
;InuI leases. How ever, due to a policy of gradually eliiiiiiiating such
leases in the interest of sanitation and health, tie income from Iliat
:source very considerably decrei-ed and a small appropriation Ii;.s been
made for the partial support of the gardens since the fiscal year 1934.
Further dricrea;-e in revenues has now reached the point where, an
increase in this appropriation is urgently needed to avoid curtailment
of activities.
CLUBHOUSES AND PLAYGROUNDS
DtiriiL- the construction of the Panama Canal, recreational and
welfare activities for Canal employees were conducted by the Y. M.
C. A. with the fin;niiii;l support of the United States Goveriiinieit.
Tlio-e activities when carried forward into the permanent organiza-
tion were placed under the bureau of clubs and playgrounds. Even-
tually many diversified activities, such as kinde-rgairtens, physical
education, motion pictures, restaurants, soda fountains, candy and
cigar stands, etc., were assigned to the bureau. Due to the expansion
in activity is, some of which were of a business or commercial character,
in January 1I:i3i, after a detailed study, the activities of the bureau
were subdivilded into two units, as follows:
(a) The clubhouse subdivision which operates restaurants, soda fountains, news
stands, candy and cigar counters, moving-picture theaters, billiard and pool rooms,
bowling alleys, and swimming pools, and in 'which the patronage is restricted to
Government personnel and their families. This subdivision is self-supporting
and no appropriations are required for the activities carried forward.
(b) The playgrounds subdivision, maintained with appropriated funds, which
provides facilities for outdoor recreation and promotes and supervises such
activities as ihliy.cal education, playground activities, baseball, basketball, hand-
.ball, foin Flall. tennis, 1 I in fencing, archery, athletic meets, pageants, etc.

CLUBHOUSE SUBDIVISION

As private industry is not permitted in the Canal Zone, the Govern-
IllencIt is iundler the ol ig tilon of oper;iting restaurants, motion-plict ire
theaters, and other activities for which there is a community dcii emand.
A cionsiderl(dl number of these activities is under the clubhouse sub-
divisioni of the bureau of clubs and playgrounds for the Ir';.i-ii that
their centralize t itii under one roof greatly facilitates adliiiiist tni ion
and tends tiw\\i;rd a lowering of operating costs. The ;(ti\vitiies in
this unit are on a busineiis b.isis.
During the past year a new gold and a new silver clubhoulLe were
conist ructed and equipped in the town of Gamboni, to be opened on
.July 1, 19;38. This will result in a net incr-ease of 1 gold clubhouse,





REPORT OF GOVERNOR OF THE PANAMA CANAL


since operations of the silver clubhouse at Paraiso were suspended as;
of the clo-e of business on June 30, 1938. Purchase of all the equip-
ment such as kitchen and restaurant equipment, motion picture
projectors, etc., for these two clubhouses was financed from funds
which had been -rt :;-idle from operations of the other clubhouses
during the past several years.
The Cristobal ridl clubhouse built and opened its motion picture
hall duririiL the past fiscal year. This clubhouse has now completed
1 full year in its new location (thle building formerly occupied by a
Canal Zulne restaurant). with activities in all departments taking on
n\\w life. The old clubhouse building thl;it stood for 30 years as a.
community center for the Atlantic side was finally abandoned on
September 24, 1937. whlien the activities of the motion picture service
were iiimoved ;ri-;s the street into the new theater. For 9 months
this buildlirii was !-ril only for bowling, occ:-iont'dal card parties, and
a community county fair, and in June 1938 arrangements were made
to demiiolish the building and clear the premises.
Along with the operation of swimming pools the clubhouses furnish
instruction in swimming and life saving to the local community. The
swimming and diving ability developed by the Canal Zone children
was tilhe subject of a short film produced during the past year by a
leading motion picture company from the States in cooperation with
the clubhouses.
There were no important clh;ingcs in the prices or in the general
clubhouse in;an:igerial policies during the past fiscal year. Restaurant
revenues increased by 8.5 percent, sales at the tobacco and merchan-
di-e counters increased by 6.5 percent, and motion picture revenues
increased by 6.5 percent, all as compared with the preceding fiscal
year. As thie averIr:Le ILrLr'et'.rite worlkingi force of the Canal-Railroad
organization was about the same, these figures indica; te a slight increase
in the general use of clubhou-e facilities by the employees and their
fan ill i s.
Several of the buildings which are now used to house the facilities.
of this bureau are very old wooden structures that have already out-
livedl their economical live;. Some of these originally had been
erected in construction towns of the C;ianal Zone and toward the end
of the construction period were moved and reerected on their present
sites. It was recognized at the time that these facilities were in the
nature of a more or less temporary arrinlgeiient, but they were satis-
factory and their replacciiiieit was not advocated because of the more-
ureiint needs of the Canal. Several of these old wooden buildings are
now in a badly deteriorated condition and require heavy inainte-
nance expenditures; accorldingily, the time is approaching when these
buildings will no longer be adequate and when it will be necessary to.
replace them with permanent structi.ires.





REPORT OF GOVERNOR OF THE PANA.MA CANAL


SUBDIVISION OF PLAYGROUNDS

When the United States Governmient embarked upon the Canal
project in 1904, it was necessary to bring many thousands of employees
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 Pan;iiiia;lli jurisdiictioln,
the Governmeniiit emiibarked upon the policy of providing wholesome
amusement and recreational facilities in each of the Canal Zone vil-
lages, similar to those provided in the District of Columbia and by
many communities in the States, and likewise correspondingili with
those provided by foreign corporations operating in the Tropics.
Climatic condlitiolns on the Istlhmus and the ever-present danger of
contracting Im;il;ri;i, dysentery, and other tropical diseases, when
recreation is sought outside of the sanitated areas adjraent to the
Zone villages, make the matter of providing adequate recreational
facilities to Government personnel and their families of consideraIly
greater importance than in communities in the States. In the ab-
sence of such facilities many employees undoubtedly would seek
diversion and entertainment in unhealthy and undesirable ways and
places.
The approlpritiion for playground activities covers the salaries of
physical directors and directresses, kindergarten teachers, and plany-
ground attendants, and also provides funds for the imintenaince of
playgrounds, playslhedis, ball diamonds, tennis courts, running tracks,
and similar facilities, and for the purchase of playground and physical
educa tion equipment. Some of the recreational 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 otlier personnel employed in the play-
ground unit, in cooperation with the division of schools, have chlinrge of
the physical education program for all grammar, high school, and
junior college students in the Canal 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 subd division
are used extensively, not only by the civilian employees and their
families, but also by the United States defense forces stationedl 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 repai(l 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





REPORT OF GOVERNOR OF THE PANA.M.A CANAL


justification for the continuation of reasonable expenditures, such as
have been made in the past.
A great improvtininiit was completed during the past fiscal year on
the playground at Cristobal. Additional ri;iling work was accom-
plished on the field, a fence was erected around the grounds, a running
track was made, and numerous purcilhae-; of new athletic equipment
were nmadle. In connection with this, three new baseball diamonds
were graded aInd laid out to enhance the playground facilities at
Cri-lobal. At Farfan Beach, in addition to numerous improvements,
such as grading, etc., a merry-go-round was in-t;alledl and is now
self-supporting. There has been quite an improvement in the
kindci-rtenis driiriniL the pa-t year. Enrollment is now restricted to
children 5 years of Lrage, which has made po-I-ible a better kindergarten
program.
LEGISLATION

Two bills were en:icted by the Congress during the year, and sev-
eral other bills of iiintirc-t to the Canal-Railroad organization or its
employees were still pendingiil before the Congress at the close of the
last session without favorable action having been taken.
The term of the judge of the United States District Court of the
Canal Zone w:;i extended from 4 to 8 years by the provisions of legis-
lation enacted in March 1938. A bill increasing to $160,000 the
amount authorized to be spent for the erection of a. suitable memorial
to Maj. Gen. George W. Goethals within the Canal Zone was ap-
proved on May 23, 1938. However, no additional funds were appro-
priated for this project.
Among other bills affecting the Canal-Railroad or its employees
which were ciin-sidered by Congre-s during the last year without fav-
orable action having been taken at the close of the last session were
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 re-iuling in the Canal Zone and the sons of civilian employees
of the United State-; rriiing in the Republic of Panama. This bill
pi--c'd the Senate on June 28, 1937, and although it was reported
favorably in the House on lMay 24, 1938, final action was not taken.
Two bills were introdurcil to provide for special recognition of the
services rendered by civilian officers and employees during the con-
struction of the Panama C;1nil. One of these bills affected only
th"it. employees wlho rendered 3 or more yeai-; of service during the
construction of the Canal and reimiinied in the service. The other
bill was dvI-ignced primarily to recognize the services of those who
served duriiir the construct ionii period for 3 or more years and who
left the service.






REPORT OF GOVERNOR OF THE PANAMA CANAL


The provisions of another bill sought to permit employees of the
P;in1ima Canl and Railro;ad to select one of -everal kinds of retire-
ment. annuities. This proposed legisla tion, if enacted, would have
permitted an emiplboyee at his option to select a decreased joint and
survivorship annuity payable to the employee during his lifetime :1ind
to his widow upon his death.
Another bill, if enacted, would have authorized the erection within
the Cainal Zone of a memorial auditorium to the builders of the
Pa;inaimi Canal and others whose distinguishI(ed service merited recog-
nition by the Congress. This bill was passed by the Senate on June
7, 1938, but was not reciched for consideration by the House.
Several bills were introduced in both Houses for the purpose of
provi(iniL governmental aid to American vessels e'ng;iged in the inter-
co;stal trade of the United States. These bills were of varying forms,
one providing that no tolls should be levied upon ve els engagedI in
such trade; others providing for subsidies of various kinds to vessels
en'irriaed in that trade. However, no legislation of this kind was
enacted.
Other general legi.-llation considered by the Congress during the
last s determining its effect on the Canal-Railroad, and appropriate recom-
mend; timos were made from time to time when the circumstances
indicated the. necessity for such action.

CAPITAL ALLOTMENTS, FISCAL YEAR 1939

The appropriate ini for 1939 carried $2,129,900 for improveml ents
and bettermenuts, and for replaceiiiment of worn-out or excessively
deteriorated facilities, as follows:


Quarters for American employees ------------------------------
Decdging division station, Gamboa-------------------------------
Lumber shed, Cristobal ---------------------------------------
12-inch water line, Miraflores to west ferry landing ------------
In':-tigationii and plans for increasing capacity of Canal in accord-
ance with act of M:iy 1, 1936 ---------------------------------
Ml-adhin Dam and Reservoir, grwitinylg, etc_-----------------------
Rebuilding Cardenas River lbridti -------------------------------
High-tension switclliLL' equipment, Pacific locks--------------
Utility hbuiling, Colon Hospital ---------------------------------
Ward building, Palo Seco_--------_---_----------------------
Replacing steam plant, Gorgas Hospital -----------------------
Tiiipro\vlnu-nts at Cristobal playground---------------------------
Rock fill, quarantine area, Balboa_ _----------------------
Extetlii1liug roads, M nliinl Hope and Corozal cemeteries-------------
Extension to paint manufacturing Ii'-ip, Balboa------------------
Special items -------------------------------------------------


$400, 000
200, 000
14.5, 000
100, 000

75, 0110
60, 000
60, 000
45, 000
40, 000
30, 000
30, 000
26, 000
25, 000
23, 000
7, 000
St63, 900

2,129,900


Total -----


83


- - - - - - - - - - - - - - - - - - _-





REPORT OF GOVERNOR OF THE PANAMA CANAL


Quartfi r for Ame,,rican employe5s.-A considerable portion of the
existing dw-ellings for American employees and their families consists
of frame structures built prior to 1914 in the early days of American
occupy. t i on, many of which had been removed from construction camps
to their present locations in the permanent, townsites. All of these
frame quarters held over from construction days have become so
deteriorated that they are not only below reasonable standards of
family shelter, but the excessive expense of the temporary patchwork
repairs, necr-;ary to keep them habitable, is an economic waste.
The old quarters are therefore being replaced by a continuous building
proir'iiii over a period of years.
Cln,1, ,, ldevelopment.-The sum of $200,000 allotted in 1939 will
complete the new dredging division station at Gamboa, which has
been under construction since 1936. This station has been devel-
oped to replace the old dredging station at Paraiso which was in
need of replacement and was badly located. In case of closure of
Gaillard Cut by slides, the major portion of dredging equipment, if
located at Paraiso, would have been cut off from the dumps in Gatun
Lake; furthermore, the channel at Paraiso is comparatively narrow,
and the mooring of equipment in that restricted area constituted a
menace to transiting vessels.
Lumber shed, Crlu'b'li.-The new lumber shed at Cristobal is to
be constructed to afford proper storage for lumber requiring special
protection, such as flooring, ;iding, kiln-dried ceiling, redwood,
hardwood, etc. Previously, this material had been stored in the
open.
Twelve-inch water line, Mlliraflores to west ferry landing.-This
project consists of running a 12-inch cast-iron water main from the
water system on the east side of the Canal at Miraflores to activities
on the west side of the Canal opposite Balboa. The new line will
replace the one running underneath the Canal at Balboa. The
latter line ias broken everan times in the past 4 years, and at such
time; no water was available on the west side of the Canal except
from local wells.
Iii nv' signtain ain, pnlav..s for incre asking the capacity of the Canal.-
This project consist of investiLgating the means of increasing the
,capacity of the Panarma Canal for future needs of interoceanic ship-
pinm and preparing designs and approximate estimates of the cost
of such additional locks or other structures and facilities as are needed
for the purpose, in accordance with act of Congress approved May
1, 103G.
Meiil,a n Dai lh.i'rri',r, g riifinqg, etc.-The amount of $60,000
allotted for this project in the fis;c;Il year 1939 provides for tests and
clay grouting of the ridges bounding the reservoir if and when the





REPORT OF GOVERNOR OF THE PANAMA CANAL


need develops. All of this work is an integral part of the construction
of the dam.
Rebuildliing Cardnoas River Bridge.-This bridge is located on
GGaillaird Highway just south of Fort Clayton. The new% bridge is to
replace the pre-ent bridge which is in poor condition and has a load
limit of 20 tons.
High-t in-,sion writvching taipmentn, Pacific locks.-This project
covers the replacement of equipment in the two original service
switch-bank rooms at Miraflores Locks, requiring the construction
or enlargemient; of two underground rooms connecting with the
opera t ing tunnels.
Utility building, Colon IHo.spitl.-This building is to be erected for
storage of medical supplies and linen, a shop for minor repairs, and
dressing rooms for colored employees on duty at the ho-pital. It is
to be a one-story structure of concrete, 105 by 38 feet. At the
present, time most of the iiiedical supplies are stored in a baserinent;
during the rainy seasinn the basement is damp and, while every care
is taken to prevent, loss by deterioration, a certain amount of waste
is inevitable.
Ward building, Palo Seco.-This building, which is to house in-
mates of the leper colony at Palo Seco, is to replace old buildings
which, in addition to being inadequate as to size, are nearly 30 years
old and not worth repairing.
Replace steam plant, Gnrlgas Hospital.-This item comprises the
replacement of the central water-heating plant. The present plant,
its auxiliaries, piping, water heaters, and fuel oil tank were installed
in 1918.
Impro' i nr, nt at Cristobal Playground.-This project co(nimprises con-
struction of playground facilities, including a polished. The new
building replaces one that was built 18 years ago out of second-hand
material and which is not worth repairing. The new project will
be used both as a school playground and as a playground for smaller
children of the kindergarten age. It will also be used by adults in
the late afternoon and evenings for games and recreation.
Rock fill, qutilvidinE area, Balboa.-This project consists of quarry-
ing 7,400 cubic yards of rock from Sosa Hill quarry and placing it
on the waterfront, adjacent. to the Balboa oil farm and near quarters
in the section immediately south of the farm. The fill is deemed
necessary due to the erosion which has t;iken place in these areas in
recent ye;irs.
Ert, nsinll of roads in Mount Hope and Corozal cef n tiries.-These
roads are necessary to reach the burial space within the areas allotted
to the cemeteries. Each extension will consist of a 16-foot concrete
road, forming a loop from the present roads. At Mount Hope the
new roiad will give access to burial space that will accommodate





86 REPORT OF GOVERNOR OF THE PANAMIA CANAL

graves for an estimated 15 years, while at Corozal the road should
give access to burial space for approximately 20 years.
Extension of paint manuftl rvi ing shop at Bl1bim.-This project con-
sists of a one-story lean-to exteuionn along a portion of one side of
the pojintt shop at the Balboa shops, which paint shop is a two-story
steel-frame building with coTnl-rete walls and corrugated asbestos
ceniint roof. The exteii-ioiI is to be of cemilent walls, steel purlins,
and corrugated :i-bestos roof to match the main building, the roofing
nmateriail being on hand as accumulated left-over from previous
projects. The extension is for the purpose of increasing the working,
space required by the needs of the plhi t.
GENERAL PROGRAM
During each of the past several years the Canal Administration'
has given considerable study to all phases of Canal oativities with a
view to developing and carrying forward a comprehensive building
and construction program, with advance plhiniing extending some
10 years in the future. These studies have been carried out in order
that the more preying rn-eds of the Canal project in the way of
replacements, bett'eriinents, and enlarged facilities will be provided
for under a. carefully considered plan.
Previous studies made in this connection were reviewed during-
the past year, and a detailed 10-year advance construction progrlami
has been compiled covering improvements and betterments and also
replaicemeints of worn-out, obsolete, or e(xwe--ively deterinr;ited facili-
ties, for which funded reserves are insufficient. This pro.rrin, which
covers all anticipated requiremeniiits of this im t iire except for incre:ising
the c;ip;icity of the Canal, requires an annual appropriation of about
$2,000,000.
The value of adopting and adhering to a definitely planned program
of replacements and bettermients lies in the fact that it not only facili-
tates the submission of comprehensive data regarding future needs
to the Bureau of the Budget, but also appreciable savings in the
purchase of irn teri;als, recruiting and employment of personnel fre-
quently result from coordinating the program for replaceinients and
betterments with the regular activities of the Canal orginixzati iin.

ADDITIONAL NEEDS

As stated above, lists have been prepared of needed additions and
replacemirenits over a period of years and appro.xiiiinte estimates have
been made of the costs. Obtainiing funds for this work is one of the
most important problems of the Paniana Canal. For the construc-
tion of the Canal and its many au.\ilivirie-t, temporary, inexpensive:





REPOIIT OF GOVERNOR OF THE PANA3.MA CANAL


'wooden structures were built to house the shops and other parts of
-the construction plant, the employees, and many of the public-utility
.and governmental functions, and marniy of tlfe-e continued to be used
in the interest of economy for housing the operating plant and per-
.sonnel after construction wias completed. Btcaiii se of the destructive
effects of the elements and of the insects in this locality, the econom-
ical life of such structures is relatively short. The plan is to replace
these with structures of longer life, and at the same time increase
their c;ip;city where justified, as funds are obtained. The under-
taking is so extensive that many of these old structures are being
maintained at excessive cost, and this uneconomical procedure will
-continue and become progre-;-ivelv worse at an accelerated rate unless
funds for the purpose can be made available for replacements when
needed. The most economical method of effecting repliacements
would be to allocate a definite sum to be used for this purpose each
year, as this would permit coordinating the replacement program
with the regular active ities of the Canal organization.

ENGINEERING AND ARCHITECTURAL DESIGN

The plan of completing designs and estimates 1 year ahead of
probable conistriiction, which was started in the fi;c;l year 1936, has
been achieved insofar as it is practical to do so, and a reduction in the
temporary force eng;nred for this purpose has begun.
Studies were made for design of an additional lock cvi-on for use
;at the entrances of existing locks during overh.nil periods. Designs
were started for replacement of crib fenders at Pedro Miguel and
Miraflores Locks. Preliminary work was done in connection with the
*overhaul of the Atlantic locks to be performiedI in fiscal year 1939.
Desizn"i, lists of material, specifications, and estimiates were pre-
pared for 50 important residential, public, and industrial buililings,
and corresponding work was started or continued on 41 lniai;r proj-
ects. Work on various minor structures and alteraftitons to existing
ones was also performed. General office enginiieeringi services were
performed for the Canal and Railroad as required.
STAFF AGENCY-PLANS SECTION

The plans section continued, in collaboration with the responsible
.department heads, to make studies of the financial, physical, and
operating features of the Canal-Railroad divisions. Thllis result, ed in
major studies for the commissary divi-ion and the r.eal estate section
,of the Railroad 'Company, for the executive and supply depart ments
,of the Canal, and three other studies of a general nature. Many
nmiscellaneous studies were also carried on and reports Imade.





REPORT OF GOVERNOR OF THE PANAMA CANAL


INCREASING THE CAPACITY OF THE PANAMA CANAL

The necessity for the eventual improvement of the Canal to increase
its capacity to meet the demands of the expected growth in the sizes
of both merchant and warships and to accommodate the expected
growth in volume of traffic through the years has been recognized for
a long time. In connection with the report of the Interoceanic
Canal Board, authorized by Public Resolution No. 99, Seventieth
Congress, approved March 2, 1929, comprehensive studies of a general
nature were m:ide, andl their results publi-hed in House Document
No. 139, Seventy-ero niid Congress, first s103ion, .1332.
Thlese studies and the reports submitted indicated the probability
that addition)iiil capacity might be needed in the Canal within the
next two or three decades and suggested the wisdom of more thorough
studies of the possibilities, to culminate in the preparation of designs
and estimates of the costs of the work needed. Accordingly, Public
Resolution No. 85, Seventy-fourth Congress, was enacted and ap-
proved May 1, 1936. It reads as follows:
Resolved by the Senate and House of Representatives of the United States of America
in Congress assembled, That the Governor of the Panama Canal is hereby author-
ized and directed to iitii-tiiate the means of ihi.rI:;-ilTn the capacity of the
Panama Canal for future needs of interoceanic hliip1inii;, and to prepare designs
and approximate estimates of cost of such additional locks or other structures
and facilities as are needed for the purpose, and to make progress reports from
time to time of the results thereof.
Approved May 1, 1936 (ch. 267, 49 Stat. 1256).
The preliminary steps taken in compliance with this resolution are
referred to in the annual reports for the fiscal years 1936 and 1937.
On July 1, 1937, a special engineering section was established in
the Canal organization for the conduct of the work required by the
resolution. The section was organized by the transfer of suitable
qualified men from other divisions of the Canal organization. Near
the end of the year three specialists were employed from outside the
regular organization, including a consulting geologist who has served
the Canal on two previous occ;ions; a permanent geologist for con-
tinuous study; and a specialist in locks' design.
The work done during the year included the assembly, classifica-
tion, and analysis of existing records on topographlly; sub-surface
exploration; hydrography; and similar basic subjects. A similar
undertaking covering the field of pertinent technical literature has
been started in cooper;ition with the Corps of Engineers of the War
Department. A series of te(-ts was comnmenced to establish the
present condition of the concrete in the existing locks, after 25 years
of service. Several app.-;rently feasible locations for new locks and
their approach ciniminels were selected tentatively and rough prelim-
inary estimates of costs were prepared to assist in the determination





REPORT OF GOVERNOR OF THE PANAMA.1 CANAL


of the most desirable lonctions for further investig,.-tion. Examina-
tion of existing topognriplical maps having developed their insuffi-
ciency for the consideration of these locations in certain are;is, a topo-
graphical mapping program was initiated. The present program is
limited to critical areas on the east side of the Canal between Gatun
Lake and Mlindi at the Atlantic end of the C;n.rl, and on the west.
side of the Canal from Paraiso to Balboa at the Pacific end. The new\\
topographical maps are on a scale of 1:1000, with a contour interval
of 5 feet. By the end of the year, 2,033 acres, constituting about
75 percent of the present mapping program, had been completed. A
general Ntiiic geological examination, to extend the existing geolorgic(d1
information over the new areas proposed for lock locations, was
begun in June.
The expenditures for the year amounted to $34,600.05. The work
done was closely circumscribed by the small allotment, which it was
possible to make available for these investigations for the ye;ir. But
a systematic approach has been initiated, purposely pursued at a
slow rate so as to insure that each move would count toward the
solution of the problem, and the way has been prepared for more
rapid progress with the application of adequate funds. Considering
the amount that must be expended in order to explore fully, locate,
design, model test, and report on the project to make ready for con-
struction, it is evident that the work is now only in its very beginning.
However, studies have progressed to the point where it is clear that
this project is closely related to the defense of the Canal. Conse-
quently, it is of the utmost importance that a determination be made
as early as possible, as to whether it is feasible to construct additional
locks at a much greater distance from the present locks than has
heretofore been contemplated. Therefore, funds available for this
work for next year should be considerably increased.












SECTION IV

GOVERNMENT

The civil government of the Canal Zone is conducted as prescribed
in the Panama Canal Act of August 24, 1912, and subsequent acts
and Executive orders made applicable to the Canal Zone. Whenever
it has been practicable to assign governmental functions to depart-
ments in the organization established for the operations and mainte-
nance of the Canal, this has been done. Complete cooperation and
r eteLf r economy and efficiency are derived from such coordination of

Data on the expense and revenues of various features of the Canal
operation and government are shown in the financial and statistical
statements in section V of this report.

AREA OF THE CANAL

The total arei of the Canal Zone and the areas segregated for
various purposes, as of June 30, 1938, are shown herewith:

Square miles
Total area of the Canal Zone -----------_-__-_______--___-_____ 552. 80

Land area of Canal Zone ---_-----------___-_-__---______.____ 361. 86
Water area of Canal Zone (inclusive of Madden Lake to +260-foot
contour) _---__- _-__ -_ _-________ -______- __.-- 190. 94

Land areas-military and naval reservations (inclusive of revocable-
license area):
Military reservations ---- --------____-_-____________- 51. 37
Naval reservations -------------------__ _________ 7. 52
58. 89
Land areas, Canal Zone townsites (exclusive of Army and Navy posts) 12. 29
Barro Colorado Island- --------------------___ ______ -- 5. 71
Forest preserve -------------------_ --------- --__ _________-______ 5. 47
Swamps ------------------------------_-___- ___________ _________ 16. 50
Cattle pastures-- ---------_--_____ 63. 00
Commercial farms --------------------- 57
Usable land_------------- ----- -___- -__- --_____ 199. 43

Total land area as above ------------------- -____--_______ 361. 86
POPULATION
A house-to-house canvass of the civil population of the Ca nal Zone
including employees of the Army and members of families of Army and
Navy personnel, omitting only cominiii ssioined, warrant, and enlisted
90




University of Florida Home Page
© 2004 - 2010 University of Florida George A. Smathers Libraries.
All rights reserved.

Acceptable Use, Copyright, and Disclaimer Statement
Last updated October 10, 2010 - - mvs