• 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 ..
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Permanent Link: http://ufdc.ufl.edu/UF00097365/00024
 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: 1939
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: VID00024
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 02454300
lccn - 15026761
oclc - 2454300
 Related Items
Preceded by: Annual report of the Isthmian Canal Commission for the year ending ...
Succeeded by: Annual reports of the Panama Canal Company and the Canal Zone Government for the fiscal year ended ...

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Table of Contents
    Front Cover
        Front Cover 1
        Front Cover 2
    Front Matter
        Front Matter
    Frontispiece
        Frontispiece
    Title Page
        Page i
        Page ii
    Table of Contents
        Page iii
        Page iv
        Page v
        Page vi
        Page vii
        Page viii
    Introduction
        Page 1
        Page 2
        Page 3
        Page 4
    Section I: Canal operation and trade via Panama Canal
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        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
    Section III: Administration
        Page 63
        Page 64
        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
    Section IV: Government
        Page 85
        Page 86
        Page 87
        Page 88
        Page 89
        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
    Section V: Financial and statistical statements
        Page 107
        Page 108
        Page 109
        Page 110
        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
    Index
        Page 141
        Page 142
        Page 143
        Page 144
        Page 145
        Page 146
        Page 147
        Page 148
        Page 149
        Page 150
        Page 151
        Page 152
        Page 153
        Page 154
        Page 155
        Page 156
    Back Cover
        Page 157
        Page 158
Full Text












UNIVERSITY
OF FLORIDA
LIBRARY













































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/annualreportofgo1939cana

























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ANNUAL REPORT
OF THE


GOVERNOR OF


THE PANAMA CANAL

FOR THE

FISCAL YEAR
ENDED JUNE 30


1939


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1940


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














TABLE OF CONTENTS

Page
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
Net revenues------------------------------------------------- 3
Replacements----------------------------------------------..- 3

SECTION I.-CANAL OPERATION AND TRADE VIA THE PANAMA CANAL

Statistics of Canal traffic------- --------------------------------- 5
Canal traffic by fiscal years 1915 to 1939------------------------ 9
Traffic by months-fiscal years 1939 and 1938 -----------_-------- 9
Tankertraffic------------------------------------- ------- 10
Nationality of vessels transiting Canal- --- ----------------- ----- 12
Cargo carried by vessels of leading maritime nations -------------- _ 13
Vessels paying tolls on displacement tonnage -------------------- 13
Vessels entitled to free transit---------------------------------_ 14
Small commercial vessels transiting Canal ----------------------- 14
Cargo shipments segregated 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 passenger movement at Canal during 1939------------ 29
Transient passengers- ----------------------------------- 29
Revised measurement rules for transiting vessels --------------------- 30
Canal operation and maintenance--------------------------------- 30
Hours of operation------------------------------------------ 30
Operating schedules of locks----------------------- ------- 31
Lockages and lock maintenance-------------- ---------__ 31
Atlantic locks overhaul -------------------------------------- 32
Power for Canal operation ---------- --------------- -....-._ 3)
Water supply------------------------------------------- 34
Dry season, 1939------------------------------------..---- 35
Floods------------..------------------------ ------__------ 35
Madden Lake------- ------ --- -------------------------.-- 36
Madden Damn------------- ------------------------------.._ 36


'-A ~






4 NTENTS


Canualu opwritiiin and miin iiteiaInce-- Cout inuei.
Maintenance of channel - -----------.-
Ordiiinry channel rMiiite .ce ....
SpeIcil maintenance Iprji.'ct .- --.

li in iin i it" ----- ----------- -- --
r q'ruip O ----- ------------- --
Ferry service-- ------------ -- _---
MInrinr activities .._ .
Aids to Irl:vig tini- ------ ----
Accidents to iiiig --------
S t:1vagii and towirig ----------------
Mtra teIiiilogy-1ivdrol) y -. aiioV ---------------


Page
36
38
38
39
40
- 41
42
42
42
43
43
44


SECTION I I.--BSINESS OI'EATIONS


Panama Canal business operations-- ...,
Mechanical and marine work
Dry dock -. ------------------------
M airine repair work _--- -__ __-- -- -- --..- .....
Work other than marine work- ----------------------. .....
PIn rt improvements ----------------------------
EII1<-trical installation and repair work------------..........
Purchases and inspections in the Unitild State -
.St arn'loun.s and ship chanilIry __----__--------- .
Ol -liet11 and unserviceable property and rquiii' i
Fuel oil, Diesel ,il, g:ui'-line, and kerosene-----------------...... .
Uliiiing construction and maintenance-------------..-.....
Qunirti'rs for FeiiiI i -. ------------------- --
it'['l:irciiirmit of quarters fir American crnpliibi scs-- _--- ..- ...- .
Mltifnr transportation---- -- -_..... ..- -. --- _----- ..--
Pananma Canal PreFss- ------------------....
Revenues derived from the rental of lands in the Canal Zone ------
BrI-init-" operations under the Panama Railroad Co -------------------
Trans-Isthmian Railroad- ------------------- -.------ --------
RT-r.i\ iim and For rieiring A rt-\ -
C'iilii )l ts----------------- - ---

Real estate Eiperatihn1-.. .. -.

Hot elns Dairy------------------ --- ------------ ----- ---- ------
Hotels- R a --i. ------ -
Mlindi Dairy-------------- .
Panainaiu: lrilroad StPiiimhlipi Line.-..-------- ------


SI.i LIwN III.-ADMINISTRATION
Department.. -.------.------- ....-----------
Operation and maintenance-. -..,-.. -----------
Supply--..---- --..... .... ..-.-.--
Acre II1n tini ---..--. .-- .-- ....- ..--- .----.- ..-
1Ex' cu' tive --------- --- - - -. ------- -- -
Health --- ..--.------- -.------ .- ..--------- --..
Palnnama Hailroml Co ---------------- ---------.. -
S'haimne in administrative iper-ennl.--- -----.. .-
Ca'lriie in administrative ranintio .... .. ..
EIniplvees ... ..-- ---- ---------- ---- ---------------


163

13
- . ----- .-- 63


63
--- .----- ----. 63
.-- .--- -------- 113




-------- -- I;4
-------------- 64*






CONTENTS V

Page
Personnel administration ----------------------------------------- 66
Gold employees----------------------------------------------- 67
Recruiting and turn-over of force-_--_-_---.---- ---- ------------- s
Wage adjustments--------------------------------------------- 69
Silver employees------------------------------------------------------------ 70
Silver wages ----------------------------------------------- 71
Silver eligibility and employment program -------------------- 71
Repatriations ------------------------------------------------ 72
Cash relief for disabled employees ------------------------------- 73
Experiment gardens--------------------------------------------- 74
Clubhouses and playgrounds---------------------------------------- 75
Clubhouse subdivision ---------------------------------------- 76
Subdivision of playgrounds- ----- ------------------------------ 76
Legislation----_------------------------------------------- -------77
Capital allotments, fiscal year 1940 --------------------------------- 79
General program ------------------------------------------------- 81
Additional needs ---------------------------------------------- 82
Engineering and architectural design ---------------------------- 82
Staff Agency-Plans Section---------------------------------------- 82
Providing for the defense of the Canal and increasing its capacity for future
needs of interoceanic shipping-----______------------------------------- 83
Visit of President Roosevelt--------------------------------------- 84

SECTION IV.-GOVERNMENT
Area of the Canal Zone ---------------------------------------- 85
Population--------- ------------------------------------------ 86
Public Health-------------------------------------------------- 86
Vital statistics- -------------------------------------------- 87
Malaria__--------------------------------------------------- 88
Hospitals and dispensaries -_----------------------------------- 89
Quarantine and immigration ---------_----------------------- 89
Municipal engineering_--- --_-------------------------------------- 90
Testing laboratory ---------------------- ------------------- 90
Water system-----_----------------------------------------- 91
Sewer system --__-------------------------------------------- 92
Roads, streets, and sidewalks _--_----------------------------- 92
Gamboa project ____-------------------------------------------- 92
Cardenas River bridge--__------------------ -------------- 92
Construction of concrete runways at Albrook Field---------------- 93
Cities of Colon and Panama-- --------------------------------- 93
Miscellaneous projects- --------------------------------------- 93
Public order-__----------------------------- ----------------- ----- 94
Fire protection--_-------------------------------- ------------- 96
Magistrates' courts --------------------------------------------- 96
Balboa------------------------------------------------------- 96
Cristobal -------------------------------------------------- 96
Pardons and reprieves-- ------------- ---------------------------- 97
Public school system----------------------------------------- 97
Postal system ----------------------------------------------- 99
Air mail ----------_ --------------------------------------- 100
nimigration visas-- ------------------------------------------ 101
Relations with Panama ---------------------------------------- 101
Customs_ _------------------------------------------------------ 102
Shipping commissioner ----------------_-------------------------- 102





VI <'1NTENTSl

Page
Administration of estates- -.-.-..----- -----------.,...,............. 103
Licenses and taxes------------ -----------------------.- -.. .. ..-.. 103
Foreign corporations.--------.---------------------------.--------- 104
Insurancee------------------------------------------------------ 104
Commercial aviation -------------------..-------_------------------ 104

SECTION V.-FINANCIAL AND STATISTICAL STATEMENTS

Accounting system. ---------------------------------------------. 107
Operations of the Panama Railroad Co--------------.--------.------- 108
Panama Canal operations-- ------------------.---------------------- 108
Index to tables---------------------------------------------------- 109
Financial tables----------------------------------------------- 110














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 Gov-
ernor at Balboa Heights, Canal Zone:
Engineer of maintenance, report of.
Special engineering section, report of designing engineer.
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 (acting), report of.
Section of surveys, report of acting chief.
Marine division, report of marine superintendent.
Mechanical division, report of superintendent.
Supply department, report of acting chief quartermaster.
Accounting department, report of comptroller.
Executive department:
Division of civil affairs, report of chief.
Police and fire division, report of chief.
Division of schools, report of superintendent.
Bureau of clubs and playgrounds, report of acting general secretary.
Division of personnel supervision and management, report of director
of personnel.
Surveying officer (acting), report of.
Public defender.
Paymaster.
Magistrates' courts:
Magistrate, Cristobal, report of.
Magistrate, Balboa, report of.
Real estate section, report of acting chief.
Washington office, report of chief of office and general purchasing officer.
Pardon board, report of chairman.
Senior aeronautical inspector, report of.
General counsel, report of.












ANNUAL REPORT


OF THE

GOVERNOR OF THE PANAMA CANAL


BALBOA HEIGHTS, CANAL ZONE,
October 10, 1939.
THE SECRETARY OF WAR,
Washin;gton, 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, 1939.
Respectfully,
C. S. RIDLEY, Governor.

INTRODUCTION
The administration of the affairs of the Panama Canal enterprises
involves three main elements-(a) the operation and maintenance
of the Canal itself; (b) the operation of the auxiliary enterprises
necessary to provide adequately for the needs of shipping and of the
Canal operating forces; and (c) the government of the Canal Zone,
populated by American civilians, native or tropical workers and their
families, and by the United States Army and Navy defense forces.
The inineilizite supervision of the administration of these various
activities rests with the heads of the nine major departments and
divisions reporting to the Governor, in whom is centered responsibility
and control of the entire organization either in his capacity as Gov-
ernor 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 pima'ry function of the Panama Canal is to provide and main-
tain'a waterway by means of which vessels may imnke the tainsit from
one ocean to the other, and to handle such traffic as presents itself for
transit with a maximum of safety and a minimum of delay. Essen-
tially this involves thei maintenance of the waterway, the operation





HE PUltT 01. lOVI-kI'tNlR OF THE PANAMA CANAL


of t ihe locks, anil the Icont rol (If traffic through tlie C'ainnl. Through-
out the year the ('aiiiil force Inmlintained its high standard of expedi-
tious service nlit onl in the actual transiting of ships but in providing
emergency repiiirs, fuel, supplies, and the various supplementary
services incidental to shipping. There were no interruptions to traffic
during the year.

OPERATION OF AUxiLTARY ENTERPRnISES--BUSINESS OPERATIONS

Secondary only to the operation of the Canal is the function of
supplying various services to shipping. Commerce requires at the
Canal certain adjuncts essential to shipping, sluch fas fuel oil and cotil-
ing plants, storehouses for foodstuffs, ship chandlery, ond 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 provided by
the various business units of the Panama Canal and Panama Rail-
road Co. The coordination of such services with the transit of ships
through the Canal assists materially in the efficient and economical
operation of the waterway. Moreover, in providing marine repair
facilities, fuel, and other supplies, the operation of these business
units promotes traffic through the Canal.

GOVER:NM ENT-ADMINISTR NATION

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

SERVICES RENDERED BY THE 'CANAL TO SHIPPING

The more important items of thle business of the Canal and its
adjuncts covering principal services to shipping are expressed numer-
ically in the following table, which presents a comparison of the ac-
tivities during the fiscal year 1939 with the 2 years immediately
preceding:







REPORT OF GOVERNOR OF THE PANAMA CANAL


Fiscal year 1939 Fiscal year 19381


Transits of Canal by ocean-going vessels paying tolls -... -
Transits of small commercial traffic not counted in ocean-
going traffic .----------------------------------------
Free t-ansits of U. S. Army and Navy vessels, Colom-
bian Government vessels, vessels for repairs, etc --------
Total transits -- -----..---.----...- ------------...
Number of lockages during year:
Gatun Locks ------------ ------------
Pedro Miguel Locks --------------------------------
Miraflores Locks ------.---.-------.... .. -...-----.--
Tolls levied on ocean vessels ----------------------------
Tolls on small commercial vessels.....-------------------..----
Total tolls---------- -------.---------------------
Cargo passing through Canal (tons) --------------------
Net tonnage (Panama Canal measurement) of I ransit ife
ocean vessels -----------------------------------------
Cargo per Panama Canal net ton of ocean vessels, laden
vessels only ---_--. -----------.--- -----------------
Averaee tolls per ton of cargo, laden vessels only. --------..
Calls at Canal ports by ships not transiting Canal ---..---
Cargo handled and transferred at ports (tons) ------------
Coal, sales and issues (tons) -----------------------------
Coal, number of commercial ships bunkered ------------.
Fuel oil pumped (barrels) ------------------------------
Fuel oil-number of ships served other than vessels oper-
ated by the Panama Canal. --------------------------
Shipr nrpairi'd.tiother than Panama Canal equipment ---
Ships drydockcd, other than Panama Canal equipment--
Provisions sold to commercial ships (commissary sales) ---
Chandlery sold to ships (storehouse sales) ----------- ----


5,903
914
664


5,524
931
476


Fiscal year 1937

5, 387
807
501


7,481 6,931 6,695

6,054 5, 651 5, 504
6.283 5,870 5, 735
6,221 5,813 5,608


$23,661,021. 08
38, 408.94
23,699,430.02
27, 866, 627
27,170,007
1.238
$0.727
831
1,580.859
70, 487
276
9,037,955
2,063
587
119
$307,342. 16
$45, 785. 68


$23,169,888. 70
45,318.69
23,215, 207. 39
27, 385, 924
25,950,383
1.225
$0.750
865
1,530.287
103,844
312
7,487,667
1, 903
633
106
$327, 943. 72
$61,213.12


$23,102,137.12
45, 503.34
23, 147, 640.46
28,108,375
25, 430,000
1.296
$0.722
863
1,446.818
71,861
296
9,033,060
1,929
601
120
$354, 341. 59
$49, 904. 02


NET REVENUES

The net revenues from Canal operations proper were $13,841,071.19
as compared with $13,909,903.26 last year. Net revenues from
business operations under The Panama Canal for 1939 were $681,-
272.48, as compared with $824,612.60 in 1938. The combined net
revenues accruing from the Canal and its business units totaled
$14,522,343.67, as compared with $14,734,515.86 in 1938.
The gross capital investment as of the beginning of the fiscal year
was $540,694,147.73 and the net investment, $508,346,822.50. Net
revenue for the year 1939 produced a return of 2.86 percent on this
net investment as against 2.90 for the previous year.
The foregoing figures do not include the Isthmian operations carried
on by the Panama Railroad Co., which yielded a net profit of $1,481,-
847.10 for the year, as compared with $1,183,453.40 for the previous
fiscal year, an increase of $298,393.70 or 25.2 percent.


REPLACEMENTS

The past fiscal year marked the close of 25 years of successful
operation of the Panama Canal; in fact, its dependable and efficient
service is now taken for granted.
One of the factors which has made this possible is the high state of
maintenance in which all wearing and deteriorating parts are kept.
Of the total capital value of the Panama Canal there are pproxiiimately





'REPORT OF iOVI-. NOR OF THE PANAMA.\ CANAL


ii li ),O) ( of gen eal r Ict ru l alu Viz1es pertlining to noniisiniess
111nits of tI l i'r iiii ml ii, which re silbject to deterioritation and
reqiiie ri' rezid ii ru ir and pe-riodicel replacement.
Si 'l11 cf OI 1 -fi rlitire. oSichl as daIs, and concrete build ings, are
-t ill in excellent coniitfion and require but little expenditu Ire for
up kee; 1ult on ot l.rs det cionitrion 1ims r. ci e 'ld 1a pi nt wiere reply ace-
in1tim should not oifnger he deferre(l. These ncccssnry replacements
include inot only the frame Ibuiildin,% ori giidlly erected to serve
during tlie period of the construction of tle ('n11iii, but also docks,
hiighliwy, etc., which, ( due to ordinary d1cterioCrition or other condi-
tionS, luLveL been rendered iiiideqiiii te 0o ii nriiceabhle for present
requirements or unerononmicil to ialiiit .ili
Funds for the replacement. of wNi-mn-out, pliint and equipment for
these l'nonbusiness units (with the exception of floating plant) must be
aipproprinted for by Congiess from the general funds of the Treasury,
since no funded replacement reserves for these operations are mnin-
taimed by the Paniama Canal. However, in the Canal accounts
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, the
Panama Canal depends on Congress to provide from these funds
(which IIIve been deposited annually in the Treasury in prior years)
the nlecessai y replacement of worn-out and obsolete plant, to maintaiin
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 thie Budget and the Congress give careful con-
sideration to the requirements submitted annually by the Governor
for the-.e r'pnp-es.












SECTION I


CANAL OPERATION AND TRADE VIA THE PANAMA CANAL
STATISTICS OF CANAL TRAFFIC
The number of ocean-going commercial vessels 1 making passage of
the Panama Canal in 1939, was the highest since 1930, and the fourth
greatest in the history of the waterway. The 5,903 transits in 1939,
representing a daily average of 16.17, showed an increase of 379, or
6.86 percent, over the previous year.
Tolls on the 5,903 transits totaled $23,661,021.08, in comparison
with $23,169,888.70 in 1938, an increase of $491,132.38, or 2.12 percent.
Cargo carried amounted to 27,866,627 long tons in 1939, in compari-
son with 27,385,924 tons in 1938, an increase of 480,703 tons, or 1.76
percent.
Panama Canal net tonnage of the 5,903 ocean-going commercial
vessels transiting the Canil during 1939 aggregated 27,170,007 tons
as against 25,950,383 in 1938, an increase of 1,219,624 tons or 4.70
percent. The fiscal year 1939 was the first full year that the revised
measurement rules (which became effective March 1, 1938) were in
force. Such tonnage under the revised rules is about 7.5 percent less
than under the rules in effect prior to March 1, 1938; hence, in making
the comparison of Panama Canal net tonnage between 1939 and 1938
it was necessary to reduce by 7.5 percent the tonnage for eight months
of 1938, i. e., between July 1, 1937, and February 28, 1938.
A brief review of traffic from the opening of the Canal on August
15, 1914, indicates that starting with a total of 1,058 traiiits in the
fiscal year 1915 there was a gradual growth of traffic which rea;cied 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 a total of 6,289
transits (an averuige of 17.2 transits per day), total tolls of $27,111,125,
and total cargo carried through the Canal of 30,647,768 tons, although
the Panama CanIal net tolnnlge of 27,585,000 (estimated in accordance
with the present rules) of the ships in the fiscal year 1929 was slightly
exceeded the following year (fiscial year 1930) when the P;an;iia
Canal net tonnage was 27,716,000 (est'unated in accordance with
present rules). 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
I Includes all tolls-paying vessels having a measurement of 300 or more net tons (Panama Canal measure-
ment) or 500 or more displacement tons.





REPORT OF i.OVERNII OF THE PAN.AMA CANAL


i, -, gnridially increa'fed iin-c I1:93 bit is still well below the hihi peaks
reached in 19 29 and 1930.
Tlie following tiabh. shows i compariison lht ween traffic in the fiscal
*years 19:19 iunid 1929, indicating the rela(iion 1ip of these 2 years and
thgepercentite If ii939 traffic to the peaL tnirfie in 1929:

NuIIIk'r o If V'.ii 1iii 1 nul W ,1 Tons of
I urnsil i I I Tnn'tg 1rog o
Fisc li year 1829o. .. 2 .- 2 7 '.' INM' C". 1il. 12, 31'.t l17.769
FIM J 1 e.ir 1939 .--- .i3 :7. 17 1 oIC 1.21, 't1. 021 I 2", Stif. 627
Puri -,nitiwo of MrO.LL 1 11.10 +P1i't1) | ,1 U7 3 90.9

Although. in general, 'Paniniiaia Canil trafHic lins followed thle trends
outlined in tlie preceding pairgraiiiphs, it lihas been subject to consider-
able fluctuation due to increases iiid decreases in the numbiher of
tankers transiting the Canal, largely carrying Cnrg from the oil fields
in Californin. These surges in the tanker traithic have not followed
variaitions in the balance of Cauinl traffic but have varied from a peak
of 1,704 transits in 1924, when tankers comprised 33.1 percent of the
total Canal trainisits, to a total of only 502 transits in I'J8, when tanker
transit cmniprised but 10.2 percent of the total. Mineril oil -hip-
ments unused a vcry sharp increase in traflie in 1923 and 1924, a;nd the
following slight decline, as well as a pait of thle increase in 1034 and the
srmll decline in the following year. For this reason the tends of
traffic through the Panama Canal are more easily vnder-tood when a
di-tinrtion is made between tankers aind all other ty) pe of shlipip. The
tinhles on );iges 11 and 12 of this report ;egregate traffic between these
two classes of ships.
The ttiitl enrgo miovingi thirougli the Canal in 1939 was slightly
greitovir than in 1938 due to increl-;ed tonnage from thle Pacific to the
Atlantic. since that passing through from the Atla.-intic to the Pacrific
showed a decrease from 9,688,560it ton- in 1938 to 9.011,267 tons in
1939. in li>'s of ahoiit 7.0 percent. The east-hound movemient of *ergo,
which nornially runill froiml two to three tiies giruitti'r thifi thal in the
opposite direction increns(d from 17.w97,:134 in 193< toI )8-..0
in 1939, a gain if 1,157,990> t(ms, or 6.5 percent.
W ilt I1 11 Nini-il d r ie tim 1 i-It iIIijpirtiit d'evapnl uienit iii ihe
mIovellent of CiirgO during (the year occurred in two of the pr iwipal
trade route-. i. ce. (o) the sharp decline in the voliu.x- cN'.1inged
betweii l hle IUnited States and the Orient and (/) twhe marked gain
in tlit ilmovingi froi'm thiet Pacific to it, Athl.itii ill t'- trade hoetween
Europe miid lt, u*-I cost of Camuida. In tfli tun1lf 1)eNHwe'n tile
United S;i 11- a1d lie Orienjt, the combined nmo mnirit of 'argo
decreased from 3.5261,536 tons in 193NS to 2.Xs4.,411 in 1939. a loss
of 652,135 tonl., or 16.5 percent. In the movement t from the Atlantic
to the Pacific in this trade which, in the past 3 years. hlas totaled
mr r iii Own lhe w'i--l)ound mIoveument it f ;iy of1ior ti-rade served by





REPORT OF GOVERNOR OF THIE PANAMA CANAL


the C(1:I;nl, the decrease in tonnage equalled ailinoAst a half million
tons (about 16 percent) less than in the previous year. Making up
the major portion of this loss were lessened shiipiaieiits of manufac-
tures of iron and steel, pig iron, anld phosphates. Cargo moving
from the Pacific to the Atlantic in the trade between the United
States and the Orient forms but a small percent ;ge of the total
moving in both directions (about 13 percent in the past 3 years).
However, the decrease in the east-bound movement was relatively
larger than that in the opposite direction, declining from 433,544
tons in 1938 to 280,593 tons in 1939, a loss of approximately 153,000
tons (35 percentt. This loss involved nunwrois types of Oriental
goods. In the movement of cargo from Canada to Europe, which
increased approximately 825,000 tons (48 percentt, the principal com-
modities involved were wheat, with a gain of 700,000 tons, and lumber
with a gain of 85,000 tons. In the Atlantic to Pacific movement in
this trade there was a decrease from 98,702 tons in 1938 to 78,789
tons in 1939, a loss of about 20,000 tons (20 percent). Small ship-
nments of miscelltineous manufactured goods largely accounted for
this loss.
In the United Sta;tes intercoai.hstal trade, which, for many yer';s, has
been the most important route served by the Canal, 6,884,726 tons
of cargo (almost 25 percent of the total) pa;l>-ed through the Canal
in 1939. This was an in rea;ie of 490,151 tons, or 7.7 percent, over
tle preceding year. Although gains were made in both directions in
this trade, the east-bound movement was more pronounced, a gain
of 440,475 tons, or 11 percent, being recorded in the cargo toinllage
in this direction. Aiiong the more important commodities partici-
pating in this increase were lumber, with a gain of 187,000 tons;
mineral oils, 150,000 tons; and canned food products, 140,000 tons.
The west-bound movement in the United States intcrcoist;al trade
aIggregat;ed 2,391,523 tons, an increase of about 50,000 toins, or 2 per-
cent, over the amount moving west-bound in the previous year.
In other principal trades there was an incrc*;-wc in the total cargo
moving between Europe and the west coast of the United States and
between Europe and Australasia. In the former, which increased
265,328 tons (11.0 percent) over the 2,421,961 tons moving in this
irzide in 1938, the gain was due entirely to the heavy movement from
the Pacific to the Atlantic, since that moving in the opposite direction
fell short of over 100,000 tons of equalling the west-bound shipments
of 1938. The principal items of cargo making up the increase in the
Pacific to Atlantic movement in this trade were wheat, fresh fruit,
canned food products, and mineral oils. The decrease in the west-
bound movement was due chiefly to fewer shipments of coke and
sand. In the trade between Europe and Aust'ralasia an increase of
about 50,000 tons (4 percent) in cargo was recorded between these
two geographical areas. As was the case in a number of other prin-





RE PORT 1OF (;lV;RNUOR OF TillE PANAMA CANAL


Cipal trades served by the Canal in 1939 thiis increase was in the
Pacific, to Atlantic. imovemient. Larger shipments of food products
in c0ld storage, ores, ailln phliosphlates were theli principal items of
cargo contributing to this increIase. 'The tonnage moving from the
Atlintic to Pacific in 1939 approximately equalled that. moving in
this direction in 1938.
Decreases were recorded in the trade between Europe and South
AmiericI, United States iand the Philippine Islands, United States
nand Australasia, and thlie United Stites aiid Ilawaiiuin Islands. In
the trade l)etween Europe and Southi Arierici. thle 1Iss in the coin-
hiined movement in both directions amioiinted to about 77.000 tons,
or 2.6 percent.. In the tonnage moving west-bound the decreni=e1 was
38,000 tons (S.3 percent), and thatt in the opposite direction fell off
39,000 tons (1.5 percent). Although the west-bound movement of
cargo paLssing between the United States and the Philippine Islands
showed a gain of some 60,000 tons over the preceding year, thlie ton-
nage in the opposite direction decreased almost 200,000 tons. which
was due chiefly to reduced shipmnients of sugar. The largest percent-
age of decrease in the combiniied movement in hothi directions occurred
in the trade between tlie east coast United Staites andil Australasia.
The total tonnage in 1939 tiggregrated 461,543 tons, which was 16ti,804
tons-, or 2(1.5 percent, less than the combined niovement in botlh
directions in 1938. The movenient in bolhli directions contributed to
this decline-- that from thle Atlantic to Pacific dropping from 471,291.
tons in 1938 to 374,544 in 1939, a decrease of 20.5 percent, while ihat
from the Pacific to the Atlantic decreased from 157,048 tons in 13S
to 'S6,999 tons in 1939, a loss of 44.6 percent. Much of the decline
in thlie east-bound movement was attributed to the greatly reduced
shipments of chrome ore, whliile in the opposite direction there were
sharp decreases in a number of manufactured products, including
au tonihiles, agricultural implements, aind iron and steel goods. In
the tirade between the east coast of the United States and the Hawaiian
Islands, which ldecreased fromt 101,S39 tonis in 1938 to .503,G661 tons in
1939, a lohw of 98,178 tons, or 16.3 percent, the major portion of the
decline was in thile east-bound movement and was due to reduced
shipments of Wirar and molasses. There wNas also a slight loss in the
moivemenit in Ithle ippo-iite direction in this trade.
('argo 11lvinig b1)tweeni the east con-t. of the United Stutes and the
W-e tilain W114 -:iitbiifIill:diy tle s;iie i I-; in tile precediig year. How-
e er', iere 1:i a loss of Smille 700 I tons, or about 20 percent, of
i LIro 1io iir' to t he Sout i AIIImerican county ri es on 1e west coast,
while the io\ iiemenit in the opposite direction increased (chiefly
throu'Igh Liruer iron-omre shipments) almost. a like number of tons.
Further details of tlihe individual cominodities and of lthe trade
routes served bv I lie Canal at re presented on pages 14 to 21 of this report.







REPORT OF GOVERNOR OF THE PANAMA CANAL


In the fiscal year 1939, transits of local coininerciail vessels under
300 tons, Pananma Canal measurement, numbered 914, on which
tolls of $38,408.94 were paid. Transits of naval and other public
vessels of the United States, war vessels of the Colomibian Govern-
ment, and vessels transiting solely for repairs, none of which paid
tolls, numbered 664, as aga.iinst 476 for 1938. The total of all tolls-
paying and free transits combined numbered 7,481, in comparison
with 6,931 in 1938, equivalent to averages of 20.50 and 18.99 (nti.it.s
per day, respectively.
The receipts from tolls as reported to the United States Treasury
for the fiscal year 1939 were $23,699,413.82. This figure includes
tolls on local commercial traffic amounting to $38,408.94, which are
not included in the Canal statistics covering ocean-going commercial
traffic. The toll receipts reported to the United States Treasury
moreover reflect minor adjustments for overcharges and under col-
lections amounting to $16.20. These two items account for the
difference of $38,392.74 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 1939

Comparative traffic statistics covering oceua n-going vessels for each
fiscal ye1ar since the Canal was opened to navigation are shown in the
table following:


Fiscal year ended June 30- Numbi of Pneat ana To nslls of
Nubr o an amas Cattonale Tol cargo


1915 1---------.....-.. -------
1916 2.... --. --------------
1917 -----------------.--
1918------------------------------- ------
1919 -------------------- -----
1920-- - - ---- ----- .- .-- - -- -----
1920 --- --------- - --- ----
19221------- ---.- -..-- .--- -... .- -
1923 - - - - - - - - - - -
1924----------------------------..-. --
19246 . . . . .
1926 -------- -----
1927-------------- ...--- ---- -
192I --.--....... -----.. ------.. --- ..-.--.
1929.-- .
1929---------------.-------------.---..------
1930 -- . . .
1931---------------------- ..--
1932------------------- --- --- --
1933-----. --..
1934 -------- --------- --
1935------- ---------- -... ..-
1936-----------------------..---
1937-------------------- -------
1938------....- ...---.... ....
1939------------.- ----------
Total- ..-.--- ----- - - ....


1,058
724
1,738
1,989
1,948
2,393
2, 7)91
2,665
3,908
5,158
4,592
5,087
5,293
6,253
6.289
6,027
5,370
4,362
4,162
5,234
5,180
5,382
5,387
5,524
5,903
104,417


3,507, 000
2,212,000
5,357,000
6,072,000
5,658,000
7,898,000
10, 550.000
10,556,000
17,206,000
24,181,000
21,134,000
22,906,000
24,245,000
27,229,000
27,585,000
27,716,000
25,690,000
21,842,000
21,094,000
26,410,000
25,720.000
25,923,000
25,430,000
25,950,383
27,170,007
469,241,390


$4,366,747.13
2,403, 089.40
5, 620, 799.83
6,428,780.26
6, 164,290.79
8,507, 938. 68
11,268, 681.46
11,191,828.56
17,504,027.19
24,284,659.92
21,393,718.01
22,919,931.89
24,212,250.61
26,922,200.75
27,111.125.47
27.059,998.94
24,624,599.76
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
23,661,021.08
453,046, 857. 91


4, 888, 400
3,093,335
7, 054,720
7, 525,768
6,910,097
9,372,374
11,595,971
10.882,607
19,566,429
26,993,167
23,956, 549-
26,030,016
27,733,555
29,615,651
30,647,768
30,018,429
25,065,283
19,798,986
18,161,165
24,704,009
25,309,527
26,505,943
28,108,375
27,385,924
27,866, 627
498, 790,675


on revised measurement rules


Canal opened to traffic Aug. 15, 1914.
2 Canal closed to traffic approximately 7 months of fiscal year by slides.
8 Panama Canal net tonnage prior to 1939 are estimated figures based
which became effective Mar. 1, 1938.
191986-40---2






REPORT OF GOVERNOR OF THU PANAMA CANAL


Tri.HFFIrI Y \ MO-NT;s FIscAL YEARS 1939 AND 1938

Tii* wcn :i-goliii i*(-iiiC i'riiiil l iiffic during cIli month of tilhe fiscl
1i.re'a 1930 is suiliunnriz/'il in Itli following table), in which are inserted
for oilnt).rismin errieponliiig figireps for tile proerdi g year:


Month


'uly
lIICII`I

I .'.ri i -t r
F.iriary e
\-% brit Try
\1 irch


I ..' ii
AursiTIIepoCmrmn


\'ii Yihrl f r nnnmo P117`l CRna1
I nil nmo Canna.l Tons of curru Tolls

1939-30 19-iT-7 19 N-:'. 1.37-38 1938-39 I 37-3-. 193S-39 1937-38

I1 1 I.W7 I.9.h.I.lir. '2,2IA.IO'M 2.02-5.(. 'l 2.-4717.. 311 S..1n94.20 5(in t2 029.642.45
I'..S ')., 2 177 ..) 2.402.000( 2, 171 f6i7l 2. 70M. rA13I n 051 n 74 2. 19n.308 87
S. : 13 -114 2. ll, '41 22.1.19.000, 1.998. 4r4; 2.3.51 142, 1. 74L1.895.46 1I.9T3 fi63 78
01' i1.1' 2 270.-. 1111 2,I12. 000n 2, 19, 671. 2. 4 M. T7R 1. 977. 7M0.. 7 1 gq1.S7 87
5 ;).:.! :Is :* 3112. ": 1 11 2. (1,0. I1I f i 2. 223. MlIl, 2. Ih.'.. 2x. 1. l.M I'14 72J 1. 8013. 4112 00
riir. 119 2 331'. fi'll 2. H11*0 2 374.3U51 2.04.. 170' 2.n031.017.04 1. 845 .4820
...55 41 2.1s0 ull. 11 2.'';..3. (10 2. 313. 11! 2. (195. 412 2. i'2. V4. I 1. K17. 894.72
'T0il i. 2.1 2-,, 'li3 1 l.1. ill 2 21f41.9 3 1.998 927 1 9I. 73' M) 71. 7Sr, r,1 45
.2.M .w ,FAfI.qM1 2.311,.'i6 2.6 l. 1168' 2.268.548 2.252. 1 28' 2.015. 5S%.34
4.it 147 2.' 27,. 12, 1 2.25, '3i 2 472?.. 4 -91 2.279.2:15 1.90').S1 1. L.O 1. 4T.4 .W9
51wl. A.6, 2 341. X.1 1 2,1.511.228 2. .. 919 1 2 30" 1711 2.0.5, .502. If, 1. M. 82.5 A6
471) 4 '. 2. r. ,79 2.064. 793 2. 137, 087 2. 122. 389' 1. 977.131.94' 1.801.291 78
93.. n1 .521 27. 171. 0W17 2'5. 5.W 31 27. 86. 6i2227.385.921 23 01. 021. 082. I 0. SQ. 70
h 492' 460 2. 214. 107 2,102,.5-32 2,322,219 2,282, 160 1.971,751.76 1.93U0,824. or.
iI II


I I'nninin Cnnal Il"nn-igo' s fli n red under the rules which became ffti1ei.ivr Mar. 1,1938.
' Estimated tunnare under rules which became effective Mar. 1, 1938.

TANKI-ER TRAFFIC

Transit of tank ships d(iiriing the fiscal year 1939 totaled 580, Ian
increase of 18, or 3.2 percent, in c(omlparison with the 1938 total of 562.
Tr;nsits of this type of vessel in 1!30 comprised 9.8 percent of the total
ocean-Lorinlg conunercial transits, made up 12.4 percent. of the total net
tcnnrna, Pannnmn Canal niensiireinent, paid 11.7 percent of the total
tIll cni ollect cd, and carried 13.0 percent of the enrgo which passed
tiliriigli the Cainal.
C'urgrn ciirried thrinigrllll the ('anal in tank ships during the flis-vIl year
1939 ;aioin(itfed to 3,031,3.' ton-;, in comparison with 3.58S4.615 tons
in 1938. a uniii r'ase of 40,740 tons, or 1.3 percent. Sevzrtciration of the
19039 traffic by direction of triinsit lowsl tlihat 6S4,014 ton-s (of tnliikeir
cargo went through from the Atlantic to the Picific, unid 2,947.341
tons from the Pucific to tlie Atlaitic.
Of thI minid ll il l carac- f.jarricd thlroil'igh thlle Ca0n1l during lthe
fiscal year 1939, approximately 3() percent \\ere gasoline, benzine, and
naphtha; 27 percent. crude oil; 27 percent Diesel and fuel oils; and the
remainder, 10 percent, liibricating oils and kerosene.
The three tnbles below, which begin with the fiscal year 1923 and
liiis cover the period during which h tankers have been anl important
component of the truffle throueiigh the Canal, show the traffic divided
between tank ships and ill tliher occon-going conmlercial vessels,
''l1nsified herein as "all other." The tables show the number and
dlaily averages of the two rinies, aiind of the total; the quantities and
proportion of net tonnages. arid tlie amounts and proportion of tolls:







REPORT OF GOVERNOR OF THE PANAMA CANAL


Number and daily average transit of tankers and all other carriers


Ocean-going commercial Daily average
transits
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.------------ ------ -------- 562 4,962 5,524 1.5 13.6 15.1

1939:
July -----_ ----------------- -- 44 385 429 1.4 12.4 13.8
August-------------- --------------- 57 411 468 1.8 13.3 15.1
September-------------.------ 49 389 438 1.6 13.0 14.6
October. .--.-------------- 44 450 494 1.4 14.5 15.9
November-------------------- --. ----- 45 460 505 1.5 15.3 16.8
December -------------------- -- 48 461 509 1.5 14.9 16.4
January. ------------------------- 48 477 525 1.5 15.4 16.9
February ------------------------- 42 459 501 1.5 16.4 17.9
March ----------------------.-- 45 508 553 1.5 16.3 17.8
April -------- ------- ---- ----- 44 452 496 1.5 15.0 16.5
May ___-- ---.------ ------ 50 456 506 1.6 14.7 16.3
June ---- ----------------- 64 415 479 2.1 13.9 16.0

Total.. ----------- -------------------- 580 5,323 5,903 1.6 14.6 16.2


Proportion of tanker and all other net tonnage


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

1923.....---------------------- 5,326,000 11,880,000 17,206,000 31.0 69.0 100.0
1924 -------------------------- 10,120,000 14.061,000 24,181,000 41.9 58.1 100.0
1925-- ...--------------------- -- 6,367,000 14,767.000 21,134,000 30. 1 69.9 100.0
1926....-----.--------------------- 6,286,000 16,620.000 22,906,000 27.4 72. 6 100.0
1927 .....------.--------------- 7,555,000 16,690,000 24.245, 000 31.2 68.8 100.0
1928---..-.-----------------------.. 6,188,000 21,041.000 27,229,000 22.7 77.3 100.0
1929--..-------..-------------- 5,792.000 21,793,000 27.585,000 21.0 79.0 100.0
30. .--.----------------------- 6,505,000 21,211,000 27,716,000 23.5 76. 5 100.0
031 ........--..-------------- 5,237,000 20,453,000 25,690.000 20. 1 79.6 100.0
1932.. .-..---------.---------------- 3,538,000 18,304,000 21,842,000 16.2 83.8 100.0
1933.-------.... ---------------- 3,775,000 17,319,000 21,094,000 17.9 82.1 100.0
1934 -----....---------------------- 5,760,000 20,050,000 26,410,000 21.8 78.2 100.0
1935...- ..---------------- 4,635.000 21,085,000 25,720.000 18.0 x2.0 100.0
193r ... .. .---- -------- 3,456,000 22,467,000 25.923,000 13.3 86.7 100. 0
1937...-...... ---- --_ 3,714,000 21,716,000 25,430,000 14.6 85.4 100.0
1938........----- ..--------- 3,190,033 22,760,350 25,950,383 12.3 87.7 100.0
1939 -....--------------------- 3,361.367 23,4s. 640 27,170.007 12.4 87.6 100.0







li*l':'lRT OF i.l:'RNu. (Of THE PAN.AMA I'ANAL


Iupiirrtihn v'f itall friin lank ships and from all other vessels


'I II r


- .' 741 7 ,' '
I I** ? 7




1 *I.' 1 1 1" 1






0I *6, 503 17
9'. 32l 176.*1 I 1


20, 891,731.22


;;17 ',n 1. I 1- I
.>I 1 ..21 **.


21 2' .'" I


*27 Il'.*i r* '11
.21 '1 .' .i I *


1 71 I 1 1

2''. 4791. 11. 21
23. 102.137. 12
23. 1) 8X88. 70
23 c61.021.08


`17 1


' I
Ii i

- li -

1 'I

I I

13. 0
11.9
12. 3
11.7


7.

7.'

7. 7
"I i ,
'.1 i. I


$2 i.



88.3


100 11
1111 I)
Ip01) u
11)0 ii

11)1 1ii
I I
11i) U

I 1
IINI II
100 II
if i 11

100.0

100 0
100.0


NATION\I.ITY OF VEi-SSELS TRANSITION CANAL


fe'lreg;ition of dvle ocean-gooing traffic through the Candl (lurling the

fi-;al year 1930, by intionality. is presented in the following table

wliiIli 4hliow.s transits, moIlpsllrenir'inrt tinnI:lgPe, tolls, aiind tons of cnrgo:


SOr., *n-,ii commercial traffic Ic thrinigb ltIi Panama Canal dJ1ring the fiscal !eaIr
.>'..'b, l na aii inalitiq of vessels


SMe assured tonnage


Nati onlity


Nu-_ _______ _
hIpr of
ships I'.inIrn i RII-eiI rn i i R I.p I d[ l 11. pri)w 11'


T ull


cargo


It l, in ... .
It r ll .i . I
llil. in ... .
Danish...........
FrG m i . .

1 lr. L -....... .
IInndluran -......-,
Italian ..-....
Japanesa. ... ..
T.-it i Ir


I'Tiroril nil |T .0
Peruvian.......


** Ii .. .
Unitedl 'r* ii
Venezmn'lan .....
Yugoslavian..---..u

IIl fiscal years:
-193 -9....... .
'1 . .
l 7 . . . .


1
1, 5102
26

107
361
117
37
59
261
1
312
S 704
193
6
5
8
187
. 1. 7S'i
2
6M


5 'lijl
7, 670, 0.148
101, ?40
758,021
531. 238
1, 454. 702
653.999
59. 7
.124. 9211
1,.'.18 254
2,738
804. 627
3, 199, 352
.11'. .013
12.088
21.025
176, 514
719, 8il
8, 79'1. 510
23.4377
244.377


( 71
9, W42. 345
156, 125
3S6, 500
710. 044
1, 830,010
6127. 338
100, 475
4610.312
2. 0211.
3 204
914 574
3, 770. 432
493, 803
17. 786
26,406
26,320
1,254,9067
11. 49 1. 098
5, 630
3111. 748


.......... 903 27 170. 007 34, 583. ,085
6,.24 '.*1), ,83 32, 918.177
. . 5, 7 .430. 00 32, 75., 300


5, 734. 048
92. 62t;
521. 441

1, 0M. 578
381. .590
B9. 101
2750. 09

I %, s 7. "
559, 476
2, 248. 510
'*21 347
10. 5110

I S. I 1Is
I1'.4 787
6,977, 214
3.144



20. 745. 28,
19 >21.8 70
19, 1I4.36


6.610.453. 242
91, 518.90
66V4,454 16
473. 438 38
1,299, 223. 44
41f9. 487 70
51. 474. 0
298.816 32
1, 354.71 54
2. 4I1. 20
701. 670 06
2, '"i 337 6.
174 40
10.879. 20
21,622 50
17.148Il60
113. 432 98
7, 75. 390. 7
2.809. 08
201,858.30


12. 4'I.,
6,801,558
62. 904
727. 552
) 1. 7.52
1.41' 996
fi6,. 471
2. 208
17,4 41S
1,710.303

.7' in:i
3, 114. 078
371.721
8,339
37,0V57
19. 91-.
1, 1iK. 245
9, U0,. 3SO
2.300
CtilDI


-'.1. C1 021 or08 i7. n i4.6. 627
.21. Irl'. Ix. 1 70 2,7 31*. 924
2..102, 137.12 28'. I0(. 375


** I 1 2 .

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7 7
3. 11. 7" 1R


2. $1> 11.79
2, 708,311. 9


I Ocan.-Boine commrnnirlal Ir ii. Inclu des only r.l i.1n in vessels of 300 net tons and ovr. P'In:am i
Canal Timsurement, Iand veels 'i !yi'! 1.4i on '1i'-l 1i illni ions of 500 11*i.4'l'' fii it on tons an.l nrvr.
s F:iiiat\ 1. tonnalRe under ruktlv 1 .:II' belcm i *llT'rii MI:mr 1, 1938.


I ..II- | I I I I li liI' 11 I I' (.C iTrI 'l


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-I:I






REPORT OF GOVERNOR OF THE PANAMA CANAL 13

CARGO CARRIED BY VESSELS OF LEADING MARITIME NATIONS

Segi egating the traffic through the Canal by nationality of vessels,
the following table shows the aggregate cargo carried by ships of the
leadinllg maritime nations during each of the past 5 years. For the
year 1939 the percentage of total cargo carried by ships of each nation-
ality is also shown:

1939 Tons of cargo
Nationality
Tons Percent- 1938 1937 1936 1935
age

United States ..----..-.-.-....... 9.909, 380 35.6 9,892,619 9,844,254 10,700.535 10,825, 573
British ----.-----.-------------. 0, 801, 556 24.4 6,417,016 7,179, 136 6, 181. 571 5. 776.021
Norwegian. --------------------. 3, 408, 078 12.2 3.433.571 3,506,109 2,717,860 2,463,675
Japanese -.-----------------.---- 1.710.303 6.1 1,877,502 1,789.178 1,697.880 1,446.049
German-. _-----------------.---- 1,468. 996 5.3 1, 518. 593 1, 496, 084 1,305,090 1,300.991
Swedish...--.-------------------- 1,008. 245 3. 6 763. 049 775, 800 855, 409 782, 548
Danish.............------------------------ 727. 552 2.6 865, 235 757, 379 627, 407 555, 981
Netherland --------------------- 675, 105 2.4 749,642 700.725 511. 20 439.168
Greek .------------------------- 666,471 2.4 525.351 429.913 238.310 78, 158
Frenh...------------------------- 501.752 1.8 567.289 542.539 544.343 570.034
All remaining -------.-----------... 989. 189 3.6 776.058 1.087. 258 1. 125. 918 1,071,329
Total.---------------------- 27,866,627 100.0 27,385,924 28,108,375 26,505,943 25,309,527


VESSELS PAYING TOLLS ON DISPLACEMENT TONNAGE

In the Canal traffic statistics, foreign naval vessels such as colliers,
transports, supply ships, etc., with a measurement of 300 net tons
(Panama Canal measurement) or more, and floating craft, such as
vessels of war, dredges, etc., with a displacement IlieaIurcmentm of 500
tons or more, are classified as ocean-going commercial vesqetI. Sta-
tistics on these vessels, except as relates to displacement tonnage, have
been included in the traffic summaries shown on the preceding pages.
As displacement tonnaige cannot be combined with net tonnage, how-
ever, the following table shows statistics covering 23 vessels which
transited the Canal during the fiscal year 1939 and paid tolls on dis-
placement tonnage:

Nationality Type of vessel Number of Displacement Tolls

British... .----------------------.. rii............... .-------------- 17 63,417 $31,708.50
French -... ---. ----------.. -..-- ..---do .-..---.- .......- .. 1 7,775 3,887.50
fral-in. ........ ... ...............--.do...-----------------.. 2 18,843 9,421.50
Soviet....------------.... ......... Survey vessels..-....... I 2 3,200 1, 600. 00
United States..---------.-------- Dredge-....... ......... ..- 1 1,296 648.00
Total.--..--- ..- .... I 23 94.531 47,265.50






14 KEl'PUT 11' (iOV-ERNUII OF THE PANAMA CANAL

X l.S i.sl-l. I .h-l) T'l FiTO.. TI l.1 N 1T

Ni t il tintl til r --sl e)l \ o( ne( tlUniil o) fl).ni'll int te 0 irliiitlt
?..rv ice of tli l'iltl ed Sltates mand Pai llal'wa. war rssels of C'oloi1bia,
and vessels t rani itin sti lely for repairs at t(lie Balboa sliops, are
exempt froi i tir i)li nllei(l of tollb, ail1d s1ivii v.sses ure not ii-1iie(lod
In tilie enleril tiiiii statistics p)ertaininl to ( 1ini2l traffic.
TIlie fillowilli sliuiws tle %vsls of earh i irotip, tli measured ton-
IlaLg',. tile 1111i(Uill t Of trills to wlii i tliey W ii 1il 1ia\C been siibject at
ti1e presciilbed r;ites if toll had been cliargdcl against tliemi, and tho
clnrgo Calrri ol by such vessels in ocean1-to-ocein 11 oveiiiont:


Claw


U S. Ni -.v..........................-........
1 8. Armrry................................
Ollirr 1U. 8. overnnii n.. ... .
Tir al. U. S. Government ...........
Colombian (invernen . ..
Vessels ran'iiinp for repairs only....... ..
Grand total.............................


Number
of tra sits

453
165
7

9
30
M64


Panamann Dsplae-
Canal net nient
tonnare tonnage

263.301 1.44,272
250.299 %W..,11
........- 5.47.
A 13. 5141 1. 670, 2Rn
12,130 36W
57, 08 .
583.237 1.670.6486


Ttlls TuA


fl.(046.4116 47.133
2341.941 48.133
2.738 .........
i ],, 29.093 05, 265
S. 931 .. ...
41.406 . ...
1.3.14.420 95.268


The above statements include units of the United States Fleet
which made two transit during the year---from the Pacific to the
Atlantic in January and from the Atlantic to the Pacific in April.

SM.\1A COMMERCIAn.1 VESSELS TRANSITING CAN.AI.

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


Atlantic to Pacific
Pacific o Atlantic......
Total .... .


Number
of transit


516
398
914


Tonnage

Panama Displace-
Canal, net ment

24. M,5 180
20,992 ....--......
45.55M7 180


Tol i Tons of
cargo


$19.780 74 8,786
18.62R 20 22,40M
38,408.94 11.251


C\n RG 0 SHI i:N'rsT .i.-I.nl: -r. i-E ]Y PRINCIPAL TRAnDE ROUTES

Cargo slilpllciiets til. ugll1 I tlie l111amall C1111nal trying lit fiscal year
19:39 lnl in tlir fltirlt1 preceding years, segregated by principal trade
route,. ire shliwwn in ihe following tabulation:







REPORT OF GOVERNOR OF THE PANAMA CANAL


United States intercoastal:
Atlantic to Pacific--------------------------
Pacific to Atlantic----------------------------
Total----------... -------------.---- ---
Europe and South America:
Atlantic to Pacific---- --- ------------------
Pacific to Atlantic------ -------------------
Total-------------. ----------------------
United States and Far East (excluding Philippine Is-
lands):
Atlantic to Pacific -----------------------
Pacific to Atlantic-------- -------------------
Total.----.....----- -- ---.--. ----------------
Europe and United States:
Atlantic to Pacific ----------------.---------
Pacific to Atlantic---------------------------------
Total.--..--- -..----- -....--------
East coast United States and west coast South America:
Atlantic to Pacific---------- ----------------
Pacific to Atlantic-------------------------------
Total.. ----- ------- -- -----------
Europe and Canada:
Atlantic to Pacific ------------------
Pacific to Atlantic --------------------
Total..............-- ..- ...-- .......---....--...
Europe and Australasia:
Atlantic to Pacific --........----------........----- -
Pacific to Atlantic-----------------------------
Total.....----.............................----------------
United States and Philippine Islands:
Atlantic to Pacific.. ....-------------------------- -----.....
Pacific to Atlantic......... ..... ...------------ ..---
Total--......................-----....--------.......----
United States and Hawaiian Islands:
Atlantic to Pacific -------------.......................-----
Pacific to Atlantic------.-------------------------
Total -------------...--. --.-----------
United States and Australasia:
Atlantic to Pacific--.... .--------........-............---.
Pacific to Atlantic ----------------------------
Total- --.... ............-..--.....-.........
Miscellaneous routes and sailings:
Atlantic to Pacific-----.----..-.....-.....- ..- -
Pacific to Atlantic ----------------------..-
Total...-----------------------------.
Total traffic, all routes:
Atlantic to Pacific ------------------------
Pacific to Atlantic---- ------- -------------.
Total---------..-...---...-- ....--- --


Tons of cargo


2,391,523
4,493,203
6,884,726


2,341,847
4,052,728
6,394,575


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


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


415,697 453,298 460,777 395,917
2, 481, 541 2, 520, 600 2, 661,698 2, 330, 136
2,897,238 2,973,898 3,122,475 2,726,053


2, 593,808 3,092,992 3, 265, 672 1,872, 357
280, 593 433, 544 662,047 585,961
2,874, 401 3, 526,536 3,927, 719 2, 458,318

337, 401 449,765 534, 749 614,703
2,349,888 1,972,196 1,435,003 1,788,865
2, 687, 289 2, 421,961 1,969, 752 2,403, 568

192,732 262,207 208, 218 199, 199
2,447, 257 2, 389,649 2, 359, 431 1,909, 185
2,639,989 2, 651, 856 2, 567, 649 2, 108,384

78,789 98,702 106,296 95,142
2,539,436 1,716, 157 2,467,874 2,377, 190
2, 618, 225 1,814,859 2, 574, 170 2,472,332

542, 770 545,553 473,333 419, 824
759,794 705, 917 670, 192 636, 997
1,302, 564 1,251,470 1, 143,525 1,056,821

277,399 217, 560 242, 612 170, 134
918,937 1, 106, 130 783, 657 809,707
1, 196,336 1, 323, 690 1,026,269 979, 841

141,804 151,839 184,517 142,774
361,857 450,000 506, 320 371,892
503,661 601,839 690,837 514,666

374, 544 471, 299 316,004 356, 117
86,999 157,048 236, 259 155, 875
461, 543 628,347 552, 263 511, 992

1,664,800 1,603,498 1,528,379 1,405,224
2, 135, 855 2, 193,395 2,465, 180 2, 149.669
3,800,655 3,796,893 3,993,559 3,554,893


9,011, 267
18,855,360
27,866,627


9,688,560
17,697,364
27,385,924


9,895,632
18,212,743
28,108,375


8,249,899
18,256,044
26,505,943


ORIGIN AND DESTINATION OF CARGO

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


~~~~I j~~ i








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ItK(IIOIT il tl.VERNI K OF THE PANA.MA CANAL


PRINCIPAL COMMODITIES

Stiatistics of conmiodities passing 1throutLh the ( inail are not pre-
cise because at thr time of transit it is not required that, complete
manifests of cargo carried by vessels he submitted to the Canal au-
thliorities. In lieu of a manifest the master of each vessel is required
to submit n eargo declaration, which is a briefly itemized statement,
listing the principal items of cargo carried aiind showing their ports or
country af origin and destination. These cargo declarations form the
bwiks of the commodity statistics. There is a natural tendency not
to list snaiill miscellaneous shipments but to include them under the
head of general cargo. Hence, except in the case of commodities
commI only shipped in bulk, such as mineral oils carried in tank ships,
whe;at, 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 thls source, the tonnage of the principal commodities shiippcd
through the Canal during the past 4 veirs is shown in the following
table:


iinni t1Fiscal yewar ended Jun.i 30-

1)lfs N I 1i 17 191 ;

\TI A.4 TIC T-1 PA.frit
I. nia f oa I 1ia Ir L iria nlit f I .,n 1] I ir
M 1-.I n irI rn ir ri itn' -tIc1. 44?, 4 V. 17 1. '.**i IN"' I. 77i1 .1' 1. li. i61
*4 r t l| I r LI i 1. 1_41M ,I' I". I 1 '.1 1, 6'ti. l11 "'. 4 r. 4
M ilr. r d ,il. l,032, A71 907.440 I 74.702 -*<7 t607
Paper al l pvr products. 26---.------ .- .. ....- 4012.24 42.-'.76,6 111.672 ".: 198
M.Ir -i -- ...... ............. ....... .. 400 ,28 5 1'.. 679 .17'1. 200 l4, 141
I'.r .n, r.. ... ............................ 250. 752 1 12. 121 :'I 1. :31 331,989
-i-il-r . ... --...... .......... -234. 79 29 7.283 2 1.2 11 2.' 4 734
I'h ii . ....... ................... 202,981 ..('.079 310.015 2Ni.g70
Tin IliIt. .. ... ---............. ............ 194.1 6 237.917 272.772 24rH 902
Cement .... ..... ............................ 160.271 15"3.657 [.N1.978 12, "Au
M i li.r. ... I. .'. I 167.,698 15.5, 2) 117. -16I
ijr-.'i.. iI . .. ... 1'.2. 131 207. 87S 1 6.I98 .11 *1**1'
C..I1 nd coke ................ .. ......... --... 147.273 137. 404 124.467 1 U'.'.i
'-mii. I o s I product) ........... ..... .. 132,228 133. 111 1 t', S I.....'7
CII. r -I. -- ..1... 12 858 10 011 11 i 437 i111. 1.ivi
Tv I :- . .-. ....-.- ....- 94.,325 q94, 625 99, 3317 In 7
k-1r., 1.1 material ...... ... .... . ..... 2 235 77 5S 21I 981 ll.2.71
\ .1i..i ir ce ssorie .. ......... ....... .. ... ).0693 I1.7 79 8 .2" 9 lil. 125
T.irmi .r and wines.. ......................... ..... 74,093 64.981 i 66. 1:30)
'.. . .. . .. . .. .... 73.314 f7. 641 44. S'N 61 .03t
-pl llI and tar .... -. ....-- ...........- .....- ... 71.931 1i1.527 117. Il 1 11.6S4
1..t. .. .... ............... 1 411 2 489 6 .407 5 1,707
lassand I are ... .. ...... .. ... 60.05 .', '.734 12 226 r. 2) 2
W .,,,.l i.--l-. ... .... ................ . ..... 0.' A 113. IS 105'.775 rl..\ ^
I.iiiiil.r uiiil.I ill I r.il I i- ... ... .. . 157 42. 025 46.700 i7.<:5
Sill . ... . .. ... ...... ... ...A 4.751 4..9)7 45.121 KQ.4 .r.
N nitrate . .. ..... ... .. .181 '11'. 702 1%. 078 111.1. 17
Ammnium compounds .... .......... .... .51,02 711.924 11. 141 137 ,31
''*l-.**** ...... .. ... ... .... .. ... . . .. ... I.1..67f 17.917 11 11 6,1.ll'-
Ir.. rim . . .... 45.620) 103,902 IY' 2313 21..711
Aerrieltural iimplement. .... ... ... 43,276 ".'.1 T8 47 4S61 3'..56
-i1 41,303 15 .04 '.7 793 .. 7 '27
...'li and .IIr i .1 ..11 .m . ; .irli . 39.694 l1. 94 '1. I8 17S *.
Fl.i ri dI apparatus .. ...... *. 2"17 25.762 Iti 469 12. .27
'nI or y . . :u-.R.T '.)I4 i 71. 15 *'1 .607
I'V oi- 'n'l varnishes . 0.7 32,480 Q. 594 1. 496l
Ashetoa .t ,. .- .,.39 Io.. I. 14.443 21. 5S
'il-. ve ta . ........... 3 .002 2 1 Ill 2, 116 .*L'1. 939
i'i -i. and medicilnes ... . ...... .. 211. 114 2 431 Ili'.. 507 1 !.0"
*;.. i ind product .... ..-.. ..- - ........ 1- .10 .'.',I"3 17,07, .-1.429







REPORT OF GOVERNOR OF THE PANAMA CANAL 21


Fiscal year ended June 30-
Commodity ---------- ----- --- --
1939 1938 1937 1936

ATLANTIC TO PACIFIC-continued Long tons Long tons Long tons Long tons
Potash ------------------------..-----.------------- 27.859 40,288 27.290 43,826
Oilseed cake and meal. ----------------------------- 27,504 9,739 1,750 7,386
Floor coverings -.--------------------------------- 27,237 21,997 17,172 17,588
Slag ----------------------------------------------- 26,769 62.546 50.299 17,093
Creosote---------------. --------------------- ---- 26,399 30,657 34,880 44,615
Band .---- --------------------------------------- 25,788 56,973 52,160 63,992
Groceries (unclassified)----- .------------------------- 24,794 22.434 9,826 10,345
Flour ------------------------------------------- 23,445 9.271 12.991 17,209
Clays ------------------------------------------- 21,461 20,913 24,929 14,456
Extract, quebracho------.--------------------------- 20.652 12,357 9.129 8,518
Fertilizers (unclassified) ------------------------ ---- 20,633 30,296 23, 628 28, 204
Slate ---------------------------------------------- 20,616 10,875 10,610 12,527
All others-----------. -------------------------- 1,089,803 1,093,743 1,104,536 1,113,137
Total---.------------------------------------- 9,011,267 9,688,560 9,895,632 8,249, 899
PACIFIC TO ATLANTIC
Lumber -- .------------.--------------------- 3,191,093 2,850,953 2,748,917 2,764,091
Mineral oils---------------------------------------- 2,777,201 2,874,809 3,571,626 3,277,078
Ores------------------------------------------------- 1,991,690 2,126,657 1,851,254 1,496. 021
Wheat----------------. ------------------------- 1,539,474 705,500 1,218,581 1,480,187
Nitrate------------------------------------------ 1,444,148 1,401,003 1,328,482 1,181.197
Sugar--------------------------- 1,329,276 1,486,516 1,358.948 1,391,909
Canned goods (food products)----------------------- 1,232.636 991,436 1,092,356 1,050,855
Metals, various--------------.------- -----------... -- 674,314 698,170 653,250 599,388
Fruit, fresh-------.------------------------------ 419,109 347,527 216,770 336, 367
Fruit, dried ----- -------------------- ---- 337,769 291,444 233, 957 309,096
Cold storage (food products) 1 ------------------------ 335, 874 334,659 304,332 324,092
Barley--.---------------------------------------- 259,612 237, 137 166,578 221.624
Soya beans------- --------------------------.-----. 236,099 52,934 107,612 239,860
Wood pulp------------- ------------------------- 235,768 313. 969 140, 612 164,001
Coffee ..----- ---------------------------- -------. 185,341 174,778 177,209 158,315
Oils, vegetable ------ ---------------------------- 174,944 170,686 197,000 221,255
Beans, edible, dry------------..--------------------- 165,185 175,917 134,239 171,444
Copra ------------------------------------------ 156,657 163,521 155.413 126,591
Flour--.------- ---------------- ------------------ 153. 642 233,810 259.389 337,487
Wool -------------------------------------------- 138,622 123,297 159. 586 161,528
Paper and paper products- --------...----------------- 120,723 137,578 122,894 131,368
Cotton, raw-----.- ------- ------------------------- 106.,211 127,473 114,087 120. 014
Oats..------------------------....... -------------------- 102,650 71,576 100,629 69.916
Molasses and sirups-.------ ------------------------- 101,750 47.377 127,381 132,302
Phosphates ------ ------------------------------- 87,715 44,933 39,280 58,175
Borax -------------------------------------------- 74,239 89,831 96,619 101,012
Oilseed cake and meal--------- --------------------- 62,925 63,798 76,253 62, 687
Asphalt ind tar --- -----------------.-------------- 61. 861 107,187 65.,058 52,302
Skins ail hides----------------------------------- 58,760 56,346 72,761 72,782
Potash-------- ----------------------------------- 48,287 33,731 32,041 27,965
Bananas.-----------------------. ------------------------ 45,557 53,319 38,501 66,153
Fish oil.------------------------------------ ----- 34,433 18,707 20, 218 16,226
Fish meal----------------------------------------.. 32,473 35,866 37,901 51,922
Rice------.-------------------- ---------.------- 31,127 57,109 44.906 45,614
Textiles------------------ ----------------------- 30,986 51,009 75,652 42,753
Tallow--------------.----.------------------------ 30,864 26,831 32,050 24,124
Wines-----------------.------------------------- 29,879 28,718 28,571 25,848
Guano-----..----------.------------------------- .. 27,830 -. -- --- 32,230 31,201
Coconuts and products------- -------. 27,064 22,747 14,933 29,894
Porcelainware.-------- ------------- ----... 25,324 45,934 51,608 50,194
All others-------..------------.------------------... 736,248 822,571 913,059 1,031,206
Total--------------------.---.-------------- 18,855,360 17,697,364 18,212,743 18,256,044

SDoes not include fresh fruit.

CLASSIFICATION OF VESSELS BETWEEN LADEN AND BALLAST TRAFFIC

The following table summarizes the ocean-going commercial traffic
through the Canal during the fiscal year 1939 segregn ted between
Inden ships and those in ballast, as well as between tankers, ore ships,
passenger ships, general cargo ships, and those not designed to carry
cargo, and also between vessels of Unitedl States registry and those of
all other nationalities:









2 R IEPoitT (oF 'VtIl*ILNOR OF THE PANAMA CANAL



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REPORT OF GOVERNOR OF THE PANAMA CANAL


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REIPtIT )l-*' O VIER: N4 Il OF THIi PAN.NAMA CANAL


LADEN AND BALLAST TRAFFIC BY NATIONALITY


In the table 1ihl elw thel

n.tpd o sln' seiar itoe

iru !inlo u d iItr pni-scngers


ships of each nationility have been segre-

statistics ion vessels which were carrying

at the time of trin-iting the Conal and


liu.se whi1h pi.-.eud through in ballast:


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98.** 593.395
47.574 435.2w5
55.80(12 1,259.190
181.730 453 042
12. *I42.215
16. ,881 I 277.241
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AVLn.RFE TONNAGE., To.Ls. AND TONS OF CARGO 1PR C.A lO-CAlin-

ING VESSEL


The iveraze measurement. tonnage, tolls, and tons of cargo per

caIir(Lo-i(rrvrIng %ve.sse1 of 300 not tons and over, Pianama Canal inie -

urennent, trainitfino the Pannirni Canal <1urinig the pnst 3 yeir; are

fiown in fthe following tiahubilation:


FI-1 Mi %-ir 1- i,,il yo *ir F!*n*l o :rir
1 lin lnbt 1 l.:(


Measured tfninflefl.
'rin iin r iin iil net.............. ........... ....... ...- ... 4. f-3 i 4 711 4. 721
i i r r l gross - .......... ........ .....3 ...... 3.-. .- 070 i -
1.-e r r, ln-t. ...... -............ -................. .. 3 3.'7 3.$4 5.61
T..11l; .3. .. .213. 75 $4, 311) 93
Tons ofeargo iiii-lan I ,' g i alilst .. . . . 4,74 4.977 5.255
I ."i of cargo I. ir, \11 1,' l-only) ...- ....- ......- ..- ..- ......- ...- 5.,719 5.784 1i.'.


I F.lini-t.'- tonnage based on revised measurement rules which became Ji I-' m, lIrth 1, 1'. .


i (' n1n net
in i La'


T'fllI


I


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


: fi. .Cl 4. ri.1 .2. 5-





REPORT OF GOVERNOR OF THE PAN.AMA CANAL


STEAM, MOTOR, AND OTHER VESSELS

Of the 5,903 ocean-going commercial vessels transiting the Canal
during the fiscal year 1939, 3,463 were steamers, 2,398 motorships,
and the reminder, 42, were unclassified naval vessels, yachts, etc.
For the past 5 years the proportions of these classes have been as
follows:

1939 1938 1937 1936 1935

Percent Percent Percent Percent Percent
Steamers------------------------------------------- 58.7 59.7 60.0 63.7 65.4
Motorships.------ ------------------------------ 40.6 39.9 39.3 35.8 33.8
M iscellaneous--------------------------------------- .7 .4 .7 .5 .8
Total----------------------------------------- 100.0 100.0 100.0 100.0 100.0


Of the 3,463 steiamers transiting the Canal during the past fiscal
year, 2,444 burned oil and 1,019 burned coal. For the past 5 years
the proportions of each class have been as follows:

1939 1938 1937 1936 1935

Percent Percent Percent Percent Percent
Oil burning.. ------------------------------------. 70.6 72.7 69.2 72.9 74.8
Coal burning ------ -------. --------- 29.4 27.3 30.8 27.1 24.3
Eitheroil or coal------------------------------------ --------- ---------- ------- ---- .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 1939, 1,609 individual ocean-going com-
mercial vessels, repne-ciitinwg 21 niatinnalities, pw-:dl through the
Panama Canal. In the i fe these vessels made a total of
5,903 transits. The number of transits made by individual ships
varied from 1 to S> and averaged 3.67. The greatest number, amount-
ing to -,6 was made by the small Panamanian steamer 14ntmo, plying
between Cristobal and the west coai-t of Colombia.
Althoiiugh vessels of Unitid Stat's rrgi-try led in the number of
tr;insits during the year, Great Britain, which rniiked second, was
first in the iiiinumber of individual vessels, with 602. There were 321
individual vessels of United States registry which passed through
dii i- rig the yC;Ii.
The follow\ inig table shows the number of individual ships, the
frequency of transits per vessel, thle total transits for the year, and
the aver:ige niiiihe'r of trnisit-, per individual vessel, segregated by
nfitiOnli]lity:


1'.1l!i'"-4 _:






REPORT OF GOVERNOR OF THE PANAMA CANAL



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REPORT OF GOVERNOR OF THE PANAMA CANAL


The following tabulation shows for the fiscal year 1939 the number
of vessels making one or more tranisits through the Panama Canal, the
percent which each class formed of the total number of vessels (1,609),
their aggregate number of transits, and their percent of the total
ocean-going commercial transits (5,903):

Percent Total Percent Percent Total Percent
Number of Num i- of Odi- p of totil Nunber of Num- o ndi- of total
trnts ber of vidul Crf Canal transit ber of vidual Cum, Canal
traits vessels vessels tra ts tnsits trvesselansits s vessels transit
(1,609) trasts (5,903) (1,609) transits (5,903)

1----------- 484 30.1 484 8.2 17----------- 4 0.2 68 1.2
2------------ 415 25.8 830 14.1 18 ----------- 6 .4 108 1.8
3------------ 134 8.3 402 6.8 19----------- 3 .2 57 1.0
4------------ 135 8.4 540 9.1 20----------- 2 .1 40 .7
5 ---------- 90 5.6 450 7.6 21----------- 1 .1 21 .4
6----------- 111 6.9 666 11.3 24. -------. -- 1 .1 24 .4
7------------ 83 5.1 581 9.8 25---------- 1 1 25 .4
8---------- 69 4.3 552 9.4 26---------- 4 .2 104 1.8
9------------ 23 1.4 207 3.5 28---------- 1 .1 28 .5
10----------- 20 1.2 200 3.4 55--------- 1 .1 55 .9
11----------- 5 .3 55 .9 60 --------- 1 .1 60 1.0
12 -- .---- .-- 2 .1 24 .4 74------. 1 .1 74 1.2
13 -------- 2 .1 26 .4 86----------- 1 .1 86 1.5
14--------- 3 .2 42 .7 -- ---
15 ----------- 2 .1 30 .5 Total. 1,609 100.0 5,903 100.0
16.----------- 4 .2 64 1.1


GROSS TONNAGE OF VESSELS

The 5,903 ocean-going commercial vessels which transited the Canl
in the fiscal yenir 1939 included 5,880 merchant vessels, yachts, etc.,
paying on the basis of net tonnage, and 23 vessels paying tolls on the
basis of displacemient tonna.ige. Of the 5,880 merchant vessels,
yachts, etc., 2,422, or 41.2 percent, were vessels of from 4,000 to 6,000
registered gross tons. Vessels between 6,000 and 8,000 tons made
up 24.4 percent of the total and those from 8,000 to 10,000 tons, 12.2
percent. Vessels under 2,000 tons accounted( for 10.7 percent of the
total, while those of 10,000 tons and over represented 5.7 percent.
The average registered gross tonnage of all transits was 5,881 as com-
pared with 5,972 for the previous year, a decrease of 1.5 percent.
The following tabulation shows the oceain-goinig commercial vessels,
excluding those based on displceeiient tonnage, in groups according
to registered gross tonnage, segregated by nationality, with average
tonnages for 1939 and 1938 and group percentages for the past year:








REPORT OF GOVERNOR OF THE PANAMA CANAL


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REPORT OF GOVERNOR OF THE PANAMA CANAL 29

SUMMARY OF PASSENGER MOVEMENT AT CANAL DURING 1939

The following tabulation shows by months the number of passengers,
exclusive of transients, disembarking at Canal Zone ports during the
fiscal year 1939, segregated as between first class and all others, with
comparative totals for the fiscal years 1938 and 1937:

Disembarking ini.irkirine
Month--I
First class Others Total First class Others Total

July ---------------- 1,433 1, 286 2,719 1,304 1, 577 2,881
August------------------------------ 1,786 1,829 3,615 1,918 1, 265 3,183
ri.ml ------------ 1,743 2,012 3,755 1,652 1,545 3,197
Si r -------------------- 1,576 1, 136 2, 712 1,413 1, 259 2,672
November ---------------------- 1,488 1,228 2,716 1,137 1,649 2.786
December-------------------------- 1,564 863 2,427 1,130 1,179 2,309
January --------------- ----------- 1,690 879 2,569 1.156 1,106 2 262
February ------------------------ 1,329 915 2,244 1,367 778 2.145
March ------------------------- 1,526 1,550 3,076 1,557 1,816 3,373
April------------- ---- ----- 1,462 1,613 3,075 1.934 1.528 3.462
May ---------- 1,476 1,100 2,576 1,912 1,141 3,053
June--------------------------------- 2,000 1,957 3,957 2.353 1, 766 4,119
Total 1939--------------------- 19,073 16,368 35,441 18,833 16, 609 35,442
Tot-, 198 ---------------------- 19,302 21.784 41,086 19,588 19,300 38,888
T 1937 ---------------- 19,128 18,934 38,062 19,936 18,082 38,018


As compared with 1938, the fiscal year 1939 showed a decrease of
13.7 percent in the number of arrivals and in comparison with 1937
it showed a decrease of 6.9 percent; in the number of departures there
was a decrease of 8.9 percent in comparison with 1938 and 6.8 percent
under 1937.
The following table shows the passenger traffic through the ports of
Cristobal and Balboa during the past 3 years:

Port of Cristobal Port of Balboa

1939 1938 1937 1939 1938 1937

Passengers 'li- miil. r- in .. 26,799 28,620 25, 263 8,642 12, 466 12,799
Passengers embarking-..---.....- 26, 448 .,.. 474 -'1.860 8, 991 12, 11 13,158

A ifurtie r-ation of the p-e(ngri movement shows that 28,S23
incoming and 26,952 outgoing pui i.Iers came from or were destined(
to ports of the Atlantic, and 6,618 incomingi and 8,490 outgoing
pa1Ispnge rs \ 1re brought from or were destined to ports of the Pacifil.

TRANSIENT PASSENGERS

In addition to the figure.- shown above of pissengi-rs disembarking
and emibirking, there were 114,053 tran sienit pJ niigers brought to
the Isthmus by veuls-, calling at Canal ports during the fiscal year
1939. For the fiscal yeir 193S, there were 131,837, and in the fiscal
ye;i3 r 1i127 there were 136,085. The number in 1939 derrivised 17,784,
or 13.5 pericenijt, in comparison with those in 1rlS, anid rcgistcred a
loss of 22,032, or 16.2 percent, uiindier 1937. Most of these passengers






R1-EPOIT OF GOVERNOR OF' THE PANAMA CANAL


CIniie ashIloret for short periods but since they departed on the same
v -scls oni which they arrived they ure not included in the taibulation
of pissnligprs iiliding or begin ingi voyages ill I1ie Isthimus. Tlie origin
antld ldestlin tioi of these trunsifnt pI-ciiLelrs are indicated in the
following tinbuhition:

year 1939 year 1938 year 1937
licC IininiTi' n Nnim I 'l irulii-j'in2 Caiil:I
.ill itirI to ) '.l0 II ..Il .... .... ... .. ................ . '' .. 719

l. ....i. to Atlani. ...... ........................ .........1.... : 14 r % .4no
'l :. l . . . . . . . . . . . . . . . .. 1 7 1 i i 5


Thei trainsientl pIu.i-engers included a numiiiber visiting the Canail as
inelmbers of special tourist cruises. AMany of these crossed the Istmlinus
by trail from C0ol11n to Glinmbon, proceeding from there thlirough the
Gaillai rd Cut to Pedro Miguel by small stcininer, aindl linilly coij plet ing
the trip to Bilhboa bIy 1riil ]Or unit'oniilelV. Simiilir combinat ion trips
were made in the opposite direction. During the past year 59 trips
of flthes types were conducted, for a t-otail of 7,3515 passengers.

REVISED MEASUREMENT RULES FOR TRANSITING VESSELS

The niensuiirement of vessels mlnder the revised Panin ma Camil rules
whicli heciame effective MaXrchi 1, 1938, continued thlroughlout the
year. Through tlie coopernition of nieisiirementC officials in the
United States ind in foreign countries, revised tonnlige figures have
been determined for the isstinnce of new Panama Canal tonnage
certifirntcs with little delay to vscsels iariviing for transit of the
Cannl.
CANAL OPERATION AND MAINTENANCE

Horns OF OPrLATION

Dispnatchiiiig of shlips thirouli the Ca'linl is conduct t ed on scliedules.
VeSSelS ZiWiliti ig rulriit. begin 1o ilmig (t iroligl thle Canal from lthe
teriiiinil ports lit 6 a. I1. lmid dispaitcdies aire Inmlie I tl'reafter friomi
eliei teriiiliiis ait intervills of iboiit l ilf an hour. Tile following

year:
is n r111111i112-ry or f llvIets in effect lit fl C' en of the firsill

Flriii Cristuml 2iinrhn6r, 1fe .-t hIip -it 6 a. ii., lust at libouit 3.30
p. in.; from iiiloii iiaiicrage, fir-t -;iJp at 6 a. In., Ia (t at 2:30 p. m.
This applies to vessel., averaginL 10 to 12 knots. In case a vessel
is Cla imic of 15 kiltots, diep:irt ii ay lie nud11111e up to ibouit 3 p. 1i.
from Baiboin iind 4 p. In. from Cristobid.
T nilers with inflaimiiimi ble cargoes ire dispatchlied at the discretion
of the Captain of thlie Port and are not permitted to proceed unless







REPORT OF GOVERNOR OF THE PANAMA CANAL


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., to assure their not meeting other
vessels in Gaillard Cut.
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 operating shifts of
the locks were as follows:
Gatun:
7 a. m. to 3 p. m.-8 locomotives.
7 a. m. to 3 p. m.-6 locomotives.
3 p. m. to 11 p. m.-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. m. 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. m. to 5:30 p. m.-8 locomotives.
3 p. m. to 11 p. m.-8 locomotives.

LOCKAGES AND LOCK AfAINTENANCE

Lockages and vessels handled are shown in the following table by
months for the past fiscal year, with corresponding totals for the
past 5 years:

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

1938
July--..---------------------- 437 566 465 594 458 573 1,360 1,733
August ---------------------- 487 650 506 675 499 639 1,492 1, 964
September.. -.---.-...-..... 445 589 459 575 456 582 1,360 1,746
October.--------....------------ 501 669 503 620 502 631 1,506 1,920
November...----------....- 526 671 546 667 539 668 1,611 2,009
December......-----..------------ 10 637 527 670 523 666 1,530 1,973
1939
January ..... ......... ..... 572 796 594 805 590 800 1,756 2,401
February---...---......-------------- 475 61'3 505 658 502 648 1,482 1,929
March.....-------------------......... 540 698 564 732 556 724 1, 60 2.154
April....------...--------------- 535 723 568 739 555 726 1,653 2,188
May........................ ------------------------ 524 679 529 682 529 682 1,582 2,043
June--..--.-------------------.. 502 625 522 647 512 649 1,536 1,921
Total...--.............--------------.. 6,054 7, 929 6, 283 8,064 6, 221 7, 988 18,558 23,981
Fiscal year:
1938 ------------..... 5,651 7,385 5,870 7,420 5,813 7,316 17,334 22,121
1937-----..--.. ------... 5, 604 7, 156 5,735 7,474 5, 608 7, 218 16,847 21,848
1936-.------------------- 5, 334 6, 755 5,548 6,930 5,538 6,866 16, 420 20.551
1935------------------..................... 6,893 5, 490 6.859 5,481 6, 837 16,287 20, 589
19384-------------------- 5, 35 6,593 5,507 6, 745 5, 483 6, 705 16, 355 20,043


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






I:['tiiT OF GOVE(I:RNO, OIF THE PANAMA CANAL


of equipnmeint. Theip following suinrnhlry includes all delays to vessels
while trinsitiinLr dlie lk due t t ie incidents mentioned:

Nuinh4r of
1.5 s c t .I u'r^ p ,I .Ie ., c-used.
s delay d &e'all 1% l

I siiiri "I 4 Ii.iiir- I I m inutszf .
I', "r IV *in1 1T 4 1hlmri 711 inI llfn P .
mI ir tl..rv- .... .. 4 minutes.
1'.. . 7 9 hours 49 m.inuteii.

lThe averni n iiiher oif lorkii ges inide dily ti1d the alvelrage
numiiber of viessel- ha indled per lockiage, dluiring eicl of the past 5
fiscal yei r-s. i re ,-hmwi in the tible following:

1'. 1r:s\ r nums er nf l,,k, s per .ay erage mmnu er if % es l e handled1

1;i" ^ L'pl ^"*"*^ ***" rMT


li.. ; I r i i *
a I V1 I I .r e I a I 2r
7 1 1.'. 7 I I 1 ) 'I "I
l 1 I.".. 11 I 1.'. I i I 21. 1 y
r ........... . .Ii.. 1 17 0T 1 11 I 2 1


ATLANTIC LOCKS OVEltHA.UL

Tilie quadrenniil overhaiil of the Atlantic locks W;i.; st arted at 7
m. n. on .Iiniry 23, lanld w\s c(n1pl)t ed at 3 p. In. on April 5, the total
Lipsed timv bvini 72'.M days. Thie mechanical work incidental to
oveprliiil wa\ enrried f'rwa\;rd on a two-shift, 5-day-! -week eNisis and
painrini m on at wti-shift, 6-d;iy-a-week hi.
The 10lI'i r-dd fIl in f plbyw-, of hiirih 40 were brijihit from the t lited Stt1 ate i aild till
reillIIiII'. 1113 WN ere fli. rrn d frin oler Odi\ iP'uris, tiall ffernd
tenilmpor;Irily rIiii liir' l'ieiliv 1'1 or eimpliy dl lo<;illy. Thr extra
?'il rr o r d inf( I "-!iy \ ;ri(k' (l \\ i(1i I 'ip tilieiirai{ a IllH illiill of
S(o ll iii* r1iipill'1i 1 tit oill' tlim e.
'iriii" the v'vrlm ii1:ri l tli ll ( l m- Ld \rivE opp i'ated -il a 21-limir
bai- Ifi :irriiuiiisi 1s;ite -hippilli'. ;iild iie'Pld i tlldi ili y for tilmsiling
v T. o tirIf lhi- srisliIiiii it w11 ii''e -nulIy toi employ extra.
dolrks aiil 'm :ifliiiin azt the P;iAille lo*ik. A brit*-f r'-ii' of (lie
work perffrnilil vI L vii below.
A, it f iiil l 1)llitei'P y lo in Ii1i V tihe stI nil of the NlinTl rial
valv'4, 1 \\oi oin 11it :-' \ i'- (*iii'i((1 i r I nl'ewing rub11 er s de:il
Mid .111 laeiri'l rorr ldc 1emol l-. -t liii-, 1in-1 II -. Boly c;iltinirs were
i1111ii lril :iIl'l ( ii tlflir -id. 'f ith Vie- PiiIlitcd \l i 1 red leil. Of
tiI' fit;d fl .6i ri-i '1L, 'A i'l \ I;d1% .~, i- 1 WC e I I'(1 ioi l, 1t1 ese leiill r1 -
1pla.0i hly 24 -pI;re vil'e Pnd 2.7 old ree'ondlitiioned valves. The





REPORT OF GOVERNOR OF THE PANAMA CANAL


usual replacements were made of s.ls, roller t rain track plates, and
front wearing plates. In general, the condition of the valves was
considered satisfactory. All but 2 valves bet wcenii the upper and
middle and middle and lower levels were equipped with stabilizers to
prevent vibration of the roller trains, whlien valves are raised, thus
reducing wear on tracks, rollers, and guide bars.
As no miiter gates were removed, the work performed on the gates
consisted of cleaning, painting, and renewal of rubber seals, angles,
wood sills and seals. On all but the four upper guard gates holes were
drilled through the upper pintle casting and bushing to the aperture
between the pintle and bushing. After packing around the pintle
below the bushing the space was flooded with lubricant. It is antici-
pated that this will prevent scouring and wear on the bushings when
gates are operated in the dry.
The steel plates on the gate surfaces below sea level have become
pitted and this condition is gradually becoming worse. The gate
surfaces were cleaned, the holes were filled by extensive welding and
then the surfaces were enameled.

POWER FOR CANAL OPERATION

The power system was operated throughout the year with a com-
bined generator output of 86,185,409 kilowatt-hours as compared
with a combined generator output of 83,441,651 kilowatt-hours for
the preceding fiscal year. During the year 79,532,349 kilowaitt-hours
were distributed to consumers, as compared with 75,970,841 kilowatt-
hours for the preceding year. From the above there resulted a
tra ii min(ion, transformation, and distribution loss of 6,653,060 kilo-
waItt-hours, or 7.72 percent, compared with a loss of 7,740,810 kilow-a tt-
hours, or 8.49 percent, for the preceding year. The maximum peak
load carried on the system during the past fiscal year was 21,300
kilowatt-hours, occurring on November 11, 1938.
The Madden hydroelectric generating station operated throughout
the year, generaiting approximiMtely 65.29 percent of the total power
output. The Gatun hyd roler tric stait ion genera ted approximately
34.70 percent of the total power output, while the Miraflores Diesel-
electric genor.iting station generated 0.01 percent of the total pIower
oulitput. The ailiioiitls of water constiimed for generiivtii of power
were 405 cubic feet per kilowatt-hour at Madden station and 950
cubic feet per kilowatt-hour at Gatun station. The Miraflores
Diesel-electric generating station was miiint.in ]ii throughout the year
on a full-time, stand-by basis. Load wa.s carried by this station on
only one orcision during the year.
There were 4 teiiipora-ry failures of tnira iiii i 'in-line service, in
whole or in part. Two of these were caused by the failure of oil





REPORT OF GUOVLNOR OF THE PANA.MA CANAL


cirr uit brelker'-, one 0 a nused by a grass fire, and the other by
lightning.
Thlie work started during the previous fiscal year in connection
with the relocation of 6.0i kv. switch gear at the Gatun hydroelectric
station was completed. The benefits obtained from this change in
switch tar consist of the elimination of all obsolete, low-rupturing
capacity switch iriear from this partiruiilar statiiin and separation of
the fci'ider s int two i-olated groups it either end of the sectionalized
ninii buisses, wlereiiq previously all feedlers were concentrated at
one end of thl l-sc. Generating unit Ni i. 1 was completely over-
hailed, in lidiig (lie livydirailie turbine and tihe electrical generator.
This work consisited of the reinoval of the rotor and miscellaneous
piirts, thlie leninng ind painting of the stator and rotor coils, and
repairs to wirn ndiechnical parts.
Four new 46 kv. oil circuit breakers were installed at the Madden
hydroelectric station, replacing other oil circuit breakers which were
found to be unsatisfactory for the service required at this station.
Thlie breiakers that were removed were reinstalled for indoor service
at the Miraltlores substation, where thty will operate under more
favorable Ile conditions.
In Mirallfoe, Balboa, and Critsobald substations protective gaps
were installed on the main 40 kv. transformers, and choke coils were
removed and 46 kv. floor bushings were modified to utford better
surge. protection. Deteriorated current transformniers on outgoing
2,300-volt feeders were replaced in MliranIlores and Balboa substations.
Sixty-one transmission line towers. south of Gatun, were cleaned
and painted during the year. The program of removing brackets
and huvinw tlhem o0 erhauled in mechanical division shops for reinm-
stalliition on lowers was continued throughout the year. Recon-
ditioned cantilever brackets have been replaced on all strain towers
in th1 sectioris between Gattuln and Ganiboa, aind between Summit
and Paraniso.
Tho tu ffil reduction made. ll the. previous year to colihUinerS Using
over 1110,,000 kilowatt-hours per month has now been in effect for
over one full yenr. During (lie past fiscal year these users had a coinm-
bined saILvinlg of $0s,073 in their electric power bill, of which $68,453
was saved by tle operating divisions of the Panama Canal and the
Panama Railroad Co., and the remaining $30,520 by the United States
Army and Navy.
WATER SUPPLY
The inflow of water during the past 2 years from all portions of
thp Catun Lake drainage basin as well as the utilization and losses
of this water are suimmanirized in the table below. Each year covers
the 12 months ended June 30, and thus embraces the cycle of both a
dry and rainy season.






REPORT OF GuVERNOR OF THE PANAMA CANAL


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

1939 1938 1939 1938

Yield from Madden I.Like'Ir drTinage t-in -------........ 92.65 104.94 37.3 35.9
Yield from land area .li" n-treiim frmii Madden Dam 115.94 139.59 46.6 47.7
Direct rainfall on Gatun Lake surface----------------- 40.12 47.89 16.1 16.4
Total yield.. -------...----.---.-------------------- 248.71 292.42 100.0 100.0
EVprnj ..n from lake surfaces.--------------------.- 22.19 21.87 8.9 7.5
4biiia 1. i.e lockages. -- .----------------------- ------- 45.58 41.44 18.3 14.2
Gatun hydroelectric power ---------------------------. 28.93 31.11 11.6 10.6
Gatun spillway waste. ------------------------------- 159.12 194.41 64.0 66.5
srorneio. increase or decrease (-)---------------------- -8.99 1.97 -3.6 .6
Leakage and municipal--.... ------------------.. -- --------- 1.88 1.62 .8 .6
Total yield---..-------------------------. --- --. 248.71 292.42 100.0 100.0


The 1939 total yield of 248.71 billion cubic feet represents an average
inflow of 7,887 cubic feet per second, which is 17 percent above the
25-year annual average of 6,747 cubic feet per second. Operation of
the Gatun spillway during the fiscal year 1939 totaled 3,946 gate-hours
and of the Mirnflores spillway, 588 gate-hours.

DRY SEASON-1939

Froimn a Piniina Canal water supply standpoint, the 1939 dry
season began Decemiber 28, 1938, and ended June 13, 1939, with a
duration of 168 days. While the dry-season period was unusually
long and drier than the average, comparatively high run-off occurred
near the beginning and again near the end of the period; accordingly
the necessary dra ft on water storage in Madden and Gatun Lakes for
lockligs and gcinvraf ion of power was not as great as lihad been required
in several other dry seasons in recent years. The total yield of the
Gatun Lake drainage basin during the dry-season period averaged
1,823 cubic feet per second. Evaporation from Madden and Gatun
Lake surf.ices amounted to 881 cubic feet per second, leaving a net
yield of 942 cubic feet per second available for useful purposes. The
net yield provided 41 percent of the Puinin.m Canal water require-
ments for the dry-season period. Necessary draft on reoerve storage
in Maidden and Gatun Lakes amounted to 20.47 billion cubic feet
and lowe-red lake levels to minimum elevations of 206.50 feet on June
5 for Madden Lake and 84.44 feet on June 13 for Ga t un Lake.

FLOODS
There were no unusual floods during the cnlelIdar year 1938.
December was the month of greatest run-off, and the largest flood of
the year occurred on December 16, 1938, with a maximum 24-hour
inflow into Madden Lake of 40,500 cubic feet per second.





KEPoRiT l4F OVRKIINOR .OF THIl' PANAMA CANAL


MADDEN LI.Ek

D11rini (he 11k. fiscltl 1iu. 11,139 MiidIn Lalkle vilifld in clevlttion frOIII
tlhe illixiilnill o 2-13.S.-7 fei. r on Jimunliiir st IS f (o te drV-sV'uWi liiiiiiium
of 21)(i.."i, rf.t (ilT .une 5. Free flow over l aden Daiii with the dtiunim
ga(te t ll 4i elvaittion of 2 i2 fret conitluilld furio tlhe beginning of the
fiscal y1ar to D c I tPl t'lch itiioll (f 24(1 feet at. the cl 1 4d1 of t1h nI ill%- soeasoi, iiall after
thne blWiiii-iL of tihe dry s'iason it was ri-iaed still faIrther to its itixi-
In uiji ffr tint veal* of 24:.S.-) feet on Ti January 18. Ti e elevation was
tii'in lowered to approlxilmItIly 229 Feet. ito FebruaIry 10. Further
SJd)iIliiiL! fo illiinten'.oiwi( of Giatiin Lake level and power use lowered
M;ilenii Lake to its dry-veaso.an ininitu on June 3. With the begin-
iling o1F lie iaiiiy s \il-1oi1 Mu Lukdi Lake waS again allowed to rise,
attini iiing ian The iia.\iniun spilliniig at Madden Dam dIiring the year was 37,060
rubil feet pe.r seCoid 1on Decembiier 16. Observ\ationis on possible
scJpaL.e t1ir1o1 Ih 1i ridges adjuiCilt to tile 411i11, 11nild observItioN.s on011
uplift pl)rIe11n 4 and ;gallviv drafin lli'Lj'iut. I 11 tli i dlIi werc cotitiiied

MADDEN D.%M

Extensive tests periniining to uplift zrcsmsre were enirried on at
Madden Da I fllr the0 great(4ti pti of of i emi y ir ind a tila in iber of obser-
Vition 011 W(',N Iiildt in C llit(1110t11i Wili t1 ise StudieS.
Middlin Lake was lowered fromn elevation 243.'5 I f'et to thout. 237
feet to allow time for studying the uplift situation Other tl eIs and
illpeifctiol.s W0I1T C(riIed on (Ilrilig flie y;r onl tiippIIratillro of coil-
crete, erosion b11low pillwzly and nl('d 11i vale ', seepage u1141 leaks in
dam, che1iical analy es of Miabddlen Lake water alnd of weirpool water,
and11( dellctioll anild settlement of the 1dam.

M.INTK-N.N1 i-: OF CJIANNELI

Di0c0Lur (cre ati work flinrpuliiut .1 year (Iredging ld til lailln-
t.lillili.. tle ( iiiiil uilliindt and trTiiiin l rlil)ors from deep Wiiter of
the At Imitil piitrinre to deep waterin t (lie Paelifc. In idl(dition,
worik Ion thle a-vajiois aniit iorized special miainluamit 'e projects was
contiii rd E si\a ilio l uim i iiiu tin year is stlillni;-rizf1 I ll i le
follr\l IIlL: li.l lr*4.








REPORT OF GOVERNOR OF THE PANAMA CANAL


Location


Canal prism dredging
Atlantic entrance-------------------------------------------
Gatun Lake:
Ordinary channel maintenance ----------------- ..
Project No. 14 -------------------------------------------
Gaillard Cut:
Maintenance, including slides---------------.------.
Project No. 13-------------- --------------------------
Project No. 15 -------------------------------------------.
Pacific entrance ----------------------------------------------.
Total Canal prism. -----..---.--.--..----------..-
Auxiliary dredging
Cristobal Outer Harbor: Project No. 11-A ----------.-..--.--
Cristobal Inner Harbor:
Ordinary maintenance --------------------- --------
Project No. 10 -------------------------------------------
Coco Solo submarine base ----------------------------.--.
Chagres River gravel service:
Run-of-bank gravel ----------------------------
Stripping gravel beds-------------------------------
Total auxiliary dredging. -----------------------. ..
Grand total, fiscal year 1939 ------------- --
Grand total, fiscal year 1938. --------------------------


Maintenance


Earth

Cubic yards
101,900
604, 300
301,100
924,600
91,100
72,450
1, 200
2,096,650


37,400
361,000
924,200
83,100
200,450
403,900
2,010,050
4,106, 700
6, 633, 500


Rock

Cubic yards
2,000
17,700
382,900
955,150
227,800
94,300
0
1,679,850


299, 200
0
21,300
100, 200
0
0
420, 700
2,100,550
2,001,200


Total

Cubic yards
103,900
I 622,000
684,000
1,879,750
318,900
166,750
1,200
3, 776, 500


336, 600
361,000
945,500
183, 300
200,450
403,900
2 2,430,750

6,207,250
8,634,700


I Does not include 79,850 cubic yards of rehandled and overcast material.
2 In addition, 24,850 cubic yards of Ch.,in" sand produced by the crane boat Atlas.


Dredging operations are divided into three major districts: the
northern district., from contour 42 feet below mean sea level in the
Atlantic Ocean to Gamboa; the central district, Gaillard Cut, from
Gamboa to Pedro MiNguel locks; the southern district, from Pedro
Miguel locks to contour 50 feet below mean seal level in the Paiific
Ocean. Excavation in these three districts is suninarized as follows:


Northern Central Southern T..'i:l

Canal prism: Cubic vards Cubic yards Cubic yards Cubic yards
Earth. .--....- --------- -- .. - 1, 11, 1.300 1,088.150 1,200 2,096, 650
Rock - ------- - ------- ---- -- 402,600 1,277,250 0 1,679,850
Total ---.......- .....- ...-.-..-- --- ..- ..- 1 1,409,900 2,365,400 1,200 3,776,500
Auxiliary:


Earth .
Rock.....
Total -.


1, 405;. 700
421. 700
1, 826, 400


0 0
0 0
0 0


Total:
'irrib . ..... .... ...... ........ ... .. 2, 111. 000 1,088,150 1,200
Rock.- ---------------------------------------.......................... 2, 300 1,277,250 0
Grand total:
Fiscal year 1939-----.------------------------------........................ 3,236,300 2,365,400 1,200
Fiscal year 1938-------------------------------................................... 395,000 1, '2, 600 6,297,100


1,405,700
420,700
1,826,400


3,502,350
2, 100, 550

2 5,602,900
8,634,700


1 79,850 cubic yards of rehandled and overcast material not included.
I Does not include (i 1,rt- River gravel or Cham6 sand service.





ILEF'PIitT u1 (i)Vl.Ii.H OF THE PANAMA .CANAL


()OmDINA (1i I N i-. MA.TN I ENAN'E
N\oiltffrI ,d.is ;*t/ ..\liA(iInti iIitrainrI ( ri'to[iaI I rlnrbor, aIIId latintu
1jitlr).- .M iillh il.il lli ill the A.1hinlici ( intriice was per-
foriild by I It ipi r Ir*i 'ffe ( irctl vt he, 1tl v biirt'iiul dr(edge .La.s (r res,
iinl ihe (Ti il tlt ti/i''t wor i.ki il i ;i "I';iItI' ot ;id of (I dred(gilg
di( VS 110 1t40d illliliim iit 'f fili il C. iViIt'cd mils 1(13.i90 1) cubic
yard- \lliTii I-IIIIliu dre-ihril: ii ( 'ri old lImilOF Colisist(i orf 0O)er-
tlion of t1h -Iiirfiltrim bi,1rc /.if,.v i i idih woiked 17 di vs. e.XCa\ it.-
in. 2 tot:ii of ;il,(il il < 'i < Vird of iiiiitfri:i. M li1ivilan' ce11' dTl dging
i ( )il 6 l I as .1wH foS 1 ild 4 t d1111Ie v tdie dip p)r 1ed!e rihiit111i aI tilhe
suction drIredgLI* IT s uri <, workiiiL an iinggrga' of 74 drcdviii, da.ys.
Thic t1ot 1 11 iount of Ii I ('i.il exca'avtc1 d Wias 701,S.0 CiibAii vyirds.
This %work included the di-prniiiig of thie arena to be iusld I.s an ailn-ior-
age for the retired Puuznim T1milrmild slii)s Ancun anid Cri4''bal.
C( ntril ditfrdic (Onillird Cut).-Miinteitince dredging in Gruiillard
Cut, exclusive of slide excaivaition, aiimioiiunted to 931.850 cubic yards
of earth, with three dipper dredges and a suction dredge working a
total of 14W' dIa vs.
SouthuMrn i.stfrict (Pacific enitrice. Balboa lhrlor, and Mliraflores
Luke).-Mainteiance dredging in the Pacific entrance was per-
forined by the crane boat Atlas- which operated with a clamshell
bucket for 8 days in thle East Ferry Slip, excavating a total of 1,200
cubic yards of mniterial. There was no maintCenuIce work performed
in the Balbon harbor and Mirniflores Lake during the yenr.
SrKCIAL NM.TAINTENANCE P'rOJECTS
Prnjct No. 1.- There was no dredLging on project No. 1, Pacific
entrance, or project No. 1, Binlbon harbor, during the year.
Pro jfct Nu. 10.-This project calls for dredging the south flure
appronch to Cristolnl inner harbor to -41.0 feet meaiin seni level which
is the ruling grade of the Cristoll inner haUrhor upproanch And Canal
channel. Thle purpose of this iniuprovement. project is to eliminate
the sliharp turn for vv-sels leaving the Cristobnil docks south-hound or
those docking at Cristohald on north-bound trnnqits. The suction
dredge Lim Cruces worked 53 diiy-a on this project, removing a total
of 945,500 cubic yards of material. This project was innuguruited on
Septe(ner 17, 1 and completed on Novenimber 29, 1938, follow-
ing which a hydrographi survey aind chlirt were made of the area
dredged. After rilocaeting (lie chlinnel buoys marking the new prism
line thle jul-ict was opilne'd to .lhippinig.
Prujidt No. 11. This proji'ert. whliihl cinsiAss of rFlimoving various
sliol arens in ie outer portions .f ('ristobal 11rhuor, as described in
dletil in the annuiil report of i1%3.I, w is tnrted in September 1934.
The total ep\ivintioin for thle p.i-t li-cil year was 336,300 cubic yards.
The total exenvation to date on thiis project. is 984,750 cubic ynrds, of






REPORT OF GOVERNOR OF THE PANAMA CANAL


which 257,000 cubic yards are anticipated fill. The Washington
shoals portion of this project was completed this year, following which
the area was dragged and a hydrographic survey taken prior to its
being opened for shipping. There remains yet to be performed on
this project the removal of three shoals in West Limon Bay, desig-
nated as project No. 11-B.
Prijni No. 13, Ga illard Cut.-This project, which consists of widen-
ing Culebra Reach by 200 feet to the westward, as described in detail
in the aimual report of 1935, was started in January 1935. The total
excavation for the past fiscal year was 318,900 cubic yards, removed
by the three dipper dredges, of which 274,400 cubic yards were ma-
terial which had been sluiced into the Canal prism; of this amount
171,100 cubic yards were mined rock. The total excavation to date
on this project is 1,994,150 cubic yards, and the excavation on this
project was 25.4 percent completed at the close of the past fiscal
year.
Project No. 14.-This project involves a combined mooring and
beaching development directly across the Canal from the Gamboa
Dredging Division Station. The fact that the planned beaching area
encroached somewhat upon the mooring development as contem-
plated by improvement project No. 3 necessitated a slight widening
of the proposed mooring area to the southward. This development
will provide a suitable site for the emergency beaching of any ship
that may become disabled or diomaged during transit of Gaillard Cut.
It lies at the north end of Gaillard Cut and has the advantage of the
proximity of the Gamboa Dredging Division Station for emergency
tug and launch service and shop and storehouse facilities. This
project was begun on November 1, 1938, and completed on May 20,
1939, with a total excavation of 684,000 cubic yards of which 248,500
cubic yards were anticipated fill. After the completion of the project
a hydrographic survey was made and chart prepared showing the
completed hydrography, the location of buoys and range target aids.
Project No. 15.-This project consists of developing the East
Culebrn slide basin for emergency use as a beaching site for ships
that may become disabled in the south reaches of Gaillard Cut.
This project was begun on March 1, 1939, and completed on May 29,
1939, with a total excavation of 166,750 cubic yards. After comple-
tion a hydrographic survey was made and a chart prepared showing
the completed hydrography, and the location of range target aids.
SLIDES
The total excavation from slides in Gaillard Cut during the fiscal
year amounted to 947,900 cubic yards. Cuilebra slide (west) was the
only slide of consequence duringg the year. This slide was in constant
movement throughout the year, mostly of a slow continuous character
oltliomighi on six different occasions the movemenieit became pronounced







UI;'BT IF (;VI-liAMl;N OF THKE PANAMA CANAL


for liwrt pe ril'lid. T"1e rIc' rd.d moelvciiinits on tlie vN rioiis slide

renie 'll*'* millki I ed n10 4 II 1 :iis in ILC Iivit ,V of tiis slid 1 from the
prelt S 1 vl rf. I1i11>Ve'', pirtiially tcoitiliniis d( redgpirig o'per t ollns

Wre requiiri'd thrnhiiii' iut thlie year in this slide. Thlier wits no inter-

frriirer \ with shipping (n nrint ofl lidc< dulring till yvar.

Dlttail% of t lier "\-iin tionll fri) slide s li iir: the fiscal venr 1039,

togri'iher with the t1ital imtitcrial exciiviitid from Junie 30, 1913, to tihe

eid Ir O 1 ll .d .i( d li '-lf, uil ire p' sm ted in ll iv f_1 wi i -lli ill t :


Fla'i L.oc0,tin -- ---- --- ---_
EurtlI Him-k I .al Elnrh H(,. k T..I-:l


'/


Hut UI '.1-' 1 b ldc i* 1.-1
liiiIr rri \ ;I i i le ( west .
EBucn Vi~tst *l. lh .-*.* i'
i, id L'5 slid le *I.i-r l
White I louse I, 0(st
White House slide Iwet. ...
r,'.>.ulrr I.ll..-* slide (eatst).-.....
La I'll 1 -11 -1~ (east) .. ...
La Pitasle -ii .. ...---
1 n i.re *l.h- r*.- . -. .
1 ir i.. .ii i r . i
Lirlo i. (h .i ** ? *
I ].u r I i T.- li. i
i mul. 11r.i I It'west) .
Iiiir.In Ii.**' extension (east
H ire I' H.ir lie (. f l .
i C.o. r t,*ur. Hill northh) .
C ontra Itors 11111 (wIt '
I u'-l r i ) :i -li'lr .* l-I .
ti~iir:ii 'r ll'l.i millii lilrt
Sw e-t .
Iouth C u aracht sle *' '-i. .. .

l'irt.ui-**sluli ''* 1-1 '

Ti.. 51 ......... ......... .


2(


'-I I ( "11011- f it far ( lttl"Ic
rir'l' yl'rril, yeardi pirds
l.. 7Wi
12, 111)
9, 250)
..' 21,"t 7000I
- - - 100
S4B, 50
I. .'IKI .' K i..'.lii (I.25
....~~~~~ ... -- -. i - - 2 1-

Il CO 2 'A ..... 1 2 -00
409. 5 0
... I .. 4. 1 )
I T&50
4, 1St
1,l" I 10 B .i.4 450


5, 0 | s n 1'*> 'ns 2, .92, 150
-1 550 I 1 75hi *.'. '.111 11 ,.. 700t




1,100 1 1,400 2.500 .ll f lO
5.300 7, 1 0 13,200 I 5
. . . , . .. I \(0 4.'(%) 10.1,15.01


I ) .. .0 2. 7. .. ..I X

OW 05 *.9r. SM 947.000 9.113,1 5A


V inivliiri i lniv illN d\ br ol-;i ;Ind 1slifil i vei' ntllitS (ific<'if ed.

dIlifii'! theI y .ir at v;irifiiiil ii11.thd p oints tIf,3lhl!i3 l ( iill:ird ('ulit.

1 i ily iij-ip
slide orc1,: finiitiii- thie ( 'inA ilI I -: ell ;I a pI- riodirial iilpect ionl of th1e

entire 1rI of all lld1. Dr:iiiim.e roit lioTis \\iev ivpstigaited

fnd ((lifltc'ld \1ihii ji'-.-illc. IIil Tlily ol-.irrviitioin-i were taken of

refer ic'n t points (rii .'1t ii \\I ( ( 'iil.1 ,ii cast ( 'l rl ebt. .teiisitln,

Cticf riflnh ('ii t), C iirII'iirlai (-siithi ), i1111d Ca(iirtzii iu slid s.

S n.lDlAIitY D)REDGOIN ) DIVIsION ACTIVITIES

The ('Ih.rcir; Ii\ er Lri'ivel ipl:Int .( iiiniiihoui ;hipp'd 55,390 ciubic

yards of siliI liid 'rzi '. dliillrd tle ;' i, Il eIaving a hai iice onil 1111(1d

of 184 ,704 cubilc hir in. us of .1i lie 311. 101341. Tile pipe i line suction

( rLeI bi (. ru- c. 1 (Ct.V ('t- hi lr wit i ii'' .i lr 1\ili;iry i eqfiiipill t Whsi
Pilplryiel, it t(ital t(i C7 ( 1 4oil d fi-d FIlly )10 (91i11rilif i l ~
eniirrdC a p(tutl1' 1s (i7 on Irrdihii 4ii)Citi11s in co(ii action witli

the g*riTvli protill'liII, P.\c-i\ hiliLn a totil of 20)0,4.0 cubic yards of
rul-o)f-I )ii Ik gravel. T li0 r. iic 1ml t .l/(s 1ni ilde 16 frips Ito Chalile,


( lIA.-

1,500
17, 550
*"*.900
PIi. 550
I. 450 I
412 lmil
'.. 7001
42,900
ZC 950
161,il300
1' 450,
1. 7 50
1. 112,750
II, 9750)
I,lwI: 1150
1:1. 850
14, 4100
31.100
6,851,)400
206.000
131,700
77, 40 0
7.250
215. 15')

41.'". 6540


( ;,P'u-
yjards
\1 21 if p
X, SA0
'2!. I5(1)

7f.. URIl
I 1.(

1 '. :.-11
4. 700
liri'. 000

17. 4IW)
27'^, :IIC)

ZI.8600
2, 'A. 20)
'20,1'. 0X00
13, 4M. 250
1, r.I.BSO
I .3.700
:16. 700
9, 5il ..i.'0

.242. '1i'>
2'.41 250
1 i t %JIII
9,200
.3 $1

51.000.800


----


--- ~


'






REPORT OF GOVERNOR OF THE PANAMA CANAL


dredg.ing a total of 24,850 cubic yards of sand; the tug Gahini maiide 10
trips to Chiame towing 9,940 cubic yards of the total. This material
was transported in barges to Balboa and delivered alongside dock
No. 7 for the supply department.
The Cuii;il and adjacent waters through Gaillard Cut, Miaflores
Lake, and Gat in Lake (including all dump areas) were patrolled and
the growth of hyacinths kept under control. Log hmints at the
mouths of the Chagres and Mandingo Rivers were maintained to
prevent hyacinths, logs, fliatitiv islands, and other obstructions from
entering the Canal chaiinniiel d(luring frn-ieots or spilling at Madden Dam.
During the year periodical in-pection trips were made in the Chingres,
Mandingo, Frijoles, 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 inspection trips
wcre also made of the Canal channel between Gamboa and Gatun.
An estimated 494 cords of driftwood were picked up along the banks
of the Canal in Gaillard Cut and Gatun Lake, and in Pedro Miguel
Lake and the MXilndingo River. The trash-handling plant removed
approximately 158 cords of driftwood from the Clingres River.
EQUIPMENT
The following dredges and other floating equipment were in opera-
tion during the year: Three 15-yard dipper dredges, Cascadas, Gnbua,
and Paraiso, were operated a total of 8.5 months, 10.3 months, and
4.2 months, respectively. The 24-inch pipe-line suction dredge Las
Cruces was operated for 11.8 months during the year. The craine
boat Atlas was operated for 1.6 months in general maintenance dredg-
ing and in addition made 16 trips to Cham6 for sand, spending the
remainder of the year in miscellaneous operations, 3.9 months of this
time being spent, in reser e and under repairs. Derrick barge No. 157
was in service for 2% days (during the year. It was under repairs for
0.6 month and standing by at the Reserve Fleet tie-up station in
Gatun Lake or in the Chligres River above the Gamboa bridge for
11.4 months. The hydraulic grader No. 4/ was in service at project
No. 13 for 5.7 months, under repairs for 2.2 months, and standing by
for 4.1 months. The drill boat Terrier No. 2 was in service during the
year, excepting a total of 1.5 months lost because of boiler-wa-dhing
operantion-: and minor rep;iirs. Air compres-.r No. 29 was in service
11.5 months during the year at project No. 13. Excavator No. 1
was in service 1.5 months d(luring the year, engaged( in dike construction
for stock pile of fill nimateri;al at the United States Navy submarine
base, and on excavation for riprupping in the Gainmboi industrial area.
Excavator No. 2 was in service 5.1 months during the year, engaged
in reclaiming run-of-bank gravel at the Ganimboa stock pile, construct-
ing dike and excavating run-off ditch for the new gravel stock pile,
191986-40---4






i.PIRii ULF GU1.1.UNOR OF THE PAN.AM A C.ANAL.


r\fvil oit fori' tP'Ii k \xc11itIs ind plant. in aill ti on11 in connection
\Mih ithe reli ailioii of ithe -ravel-screeniiig p1lit. exc. vaition incident
t rjrai(1 of (ld gravc -llock pile site for instilltiuon of tracks and
drni i< -V-1-fIn fr r *xt.inid d)block-casting ynardn; and in handling of
riin-of- iiik imin\ll for Ihe c( ting oif concrete blocks for the Atlantic
entli tririce bireakwitIr. The 'i250-ton floating crinneis Ajar and Her-
rCd/ .% HIv orlniltid ll on iilthrmiip montlis except wheni cUlls for extra
service Ircqiired the use of Ioth cranes. Three iirge ttigs, Trinidad,
('IfInj 1, %inl (rnfuli1, 60 ide7ipp lleted by thie hlroe tug, Maririer, and two
Crniil ii'1,1 tihe Inml o iwid the Siri, were operated during. the year in
towiii iitinl franportiation service, one large tug being out of conmi-
niis-ion continuously for the purpose of repairs. Nine launches were
in service during the yeir. An average of two aInunchlies was continu-
ously out of service for repairs. The Diesel ferryboats President
vRoo.'erdt and Prcsih rite Anidilor were in service in connection with
the operation of the Thiatlcher Highway ferry service at Balboa for
7.5 months and 4.5 months, respectively, during the year. Oil barge
N'o. 99, constructed in the Mechanical Division shops at Balboa, was
delivered ond placed in service during the month of August..

FERRY SERVICE

Ferry service iicross the PNcific entrance of the Canal, connecting
La Bocil, Balhoni. and Panama City on the east bank of the Canal
with Thantchler Highway on thle west bank, was operated on a con-
tinuous 24-hliour basis throughout the year. In the following table are
shown thle more important. statistics relative to the operation of the
ferry for the past 2 fisenl years:

1939 1"

-nriilr trips made by the 2 ferries................................................ 33,017 31,720
Vehi. 1i' carried:
Panama UmCnl, vehicles .....----------------------------------------------............................................. -13. O43 11.314
Snji..-I State. Arnmy ehicles................................................ 36,904 39,428
<':-rnimpr( l- tr ks .................................................. 41. '420 41.786
Prrhivte carn .. ............................................................... .. ,731 14.0370
('ornmercal I IM~senger cars----------------------------------------------- 67. 168 62. 136
1'ri% Me cars -----------------------------------------------------------.14 731 1A3 039
Total vehicles carried................................................... 307,.106 347.703
Total ipn.-erners carried........ ......................................... 1, 771,4 1, 654, 080


MARINE ACTIVITIES
AIDS TO NAVIGATION
A number or improvements and adjustments were made in the
I l-lits. buiovs, beacons, indi Othlier lniillntional aids Imiintained for the
IInefit of vessels operating in the (C'nnail ind adjacent waters. In July
1931 tlie intensity of thle light at Stin Jose Lighthouse in thle Pearl
I-hnrnu was increased from S40 to 1.2110 candlepower, with a visibility
lof 15 mile-. Thlie Bona. Tslahnd Light wtis removed from Bona Island






REPORT OF GOVERNOR OF THE PANAMA CANAL 43

proper and relocated on Bald Rock, a barren, uninliibited rock sepa-
rated( from Bona Island by a 150-foot chl;innel. The new light retains
the same characteristics as the old. For the benefit of vessels calling
at the San Bias Ilind1, range targets and buoys were established to
mark the entrance of the San Bias channel from .onward. Con-
struction work was begun in June 1939 for the reestablishment of
range lights and channel markers indicating the approach to the dock
at Fort Randolph, Margarita Bay, at the Atlantic entrance.

ACCIDENTS TO SHIPPING

The board of local inspectors invest irgated and reported on 27 acci-
dents to shipping in Canal Zone waters during the fisenil year 1939,
a summary of which follows with a comparison of accidents in the 2
previous years:

Cause of Accident 1939 1938 1937 Cause of Accident 1939 1938 1937

Ship struck lock wall---------- 7 5 14 Tug damaged by ship----------.. -. ...... 1 ---.
Struck Canal bank-----....--------... 2 4 4 Ship damaged by dredge.---.-----.... 1 ......
Ship damaged by tug---------- 6 4 3 Explosion and fire.--..-----------.... ......------ 1 --....
Struck dock---...--------------- 4 3 7 Emergency anchoring--....----------...... ---- 1 --......
Collision-. -------------------- 2 1 -------. Other causes.------------..------ 2 --.... 11
Grounded--------------------- 4 1 --------- -
Struck wall adjacent to dry- Total----------------. 27 23 39
dock gate-....------..---.--- ----- --- ------

SALVAGE AND TOWING

Panama Canal eqplipmuent, and personnel rendered assistance to dis-
ihled and distressed shipping during the year as follows:
Steanm-sip Point Vincente.-The steamship Pi'it Viiic, tin, heavily
liden with general cargo and a deck load of lumber, went hard ground
on the southeast part of Bona Island on March 26, 1939. Salvage
operations were begun upon the arrival of the Paunnia Canal salvage
tug Farurte and the vessel was refloated at 6:30 p. mn. tihe same d(lay.
The vessel was so badly damaged, however, thliat it was necessary to
beach her on soft bottom in six fathoms of water off Clhainne. Salvage
operations on this vessel were carried on by the U. S. S. Farurite
until the arrival, 4 days later, of a commercial salvage tug, whlien
the job was turned over to that vessel.
Sf( Farmrin left Gatun on February 12, 1939, proceeding to the position
of the steaenm ship Kinriis which was disabled at sea off the Pacific
coast of Coista Rica. A line was placed aboard the disabled vessel
and it was towed to Balboa, arriving at midnight, Febnirua;iry 16, 1939.
Sfm i/nsp IHenry S. G7ori .-The steamship Henry S. Griort went
ashore on the west bank of the Canal in Balboa harbor on April 3,
1939. With the assistance of the U. S. S. Farorite, the stranded
vessel was refloated the same d(lay, and, having suffered no daimo-ige
from the mnishnp, at once resiumned its vovygre.






hIEPOiT OF GOVERNOR OF THE PANAM3A CANAL


M ETEOHOLOG Y-IH YDROLOGY-SEIBMOLOGY

JPrtipiptif ri. Ra infull in the Canal Zone and vicinity fur the cal-
endar I Vealr I .i a vi ired ha out 20 percent, above riormial. The aver-
nge in 11- lP:ailic mction was 93.60 inches; in the centralI section,
11.i. inclih ; inil in thei Atlantic section, 164.(i7 inches. Annual
totil ii( t rainfall st tions ranged froimi 5 .34 inches at Balboa Heighits
to 17i :0I iniil hv it IPirto Bell). February was thlie montl of least
rniiif.1 ill and Dcii1 )becr of grafpst rain F ll. T e in1 iiimu\inu raiinfiil in
2-1 coii-.euiln 1in hicii-." i'itilp d uiining tile cidni il voear 193-S Wias S.00
inrlic on .Aipril 29 ;i(nd 30 at thle Candelurilu station in the Madden

S.I' Ti 1lp1 rdifin .--Tlie a1vraige air temnperaiitur fm o (the P'ilndir
yni if '.: w;is slightly belw noriiuil; at Balhoa Heighlits it was 78.30
F., \with monthly mne1ins rangiing frnin 77.30 in Deceimber to 70.70 in
April. The a\'e[ige air temperaiiiture at Cristobuil was 79..so, with
monthly en-,in raniuingr from 79.00 in Derember to &11.70 in April.
T 1ine 1 ilo a d exta retlmes for thile calendar year IVIS a Ire shown in
thle fol\lwing table:

Nfia iilm i M i nimum I .I nui
?l.1ti.nd - - -Illisiiirlv
C V I F. F ) 1 "t

Itl inh.-:1 II. ht. .. ............ ............. .. . . r 5 1 .ir .5 7 1
I. i. 1. 1 1 1 I Ti ... ... ............. .... .... .. ....... .. .. 'i A pr M .r. i 71 l i
M:iln .. . . .. .. .. .. .. *I Ir pr. 7 M ar. 179.
OSrI.n.. 7 r
r lil . .I ....... ..................... . .1.... O il. I6 72i M ar. 6 79.8

I f- rin of maximum and minitnum 'n**rin |.r,tiir-*.

The miiax1iinumi anld miniiiiuim temperatures of years of record at.
valrifii -timiins are iLri\en below (records revised to .Tune 30, 19390):

M umulum Miniminm \
c_ _._.n- - __ '__ ___ -_- aiiiil Ynrt nf
1iF. li' "r a Dil

tl;.l. II -IIl ......................---- 97 Apr. 7,1912 63 Jan I7.1910 7u.7 3
1 i id r in im ... .................--- -S .pr. Ii. 19 59 S rhI- 4.'! t 77.2 28
- -. .................................. 95 2 0 "A 64 krl. 7, Pi2 3 2S
Cn- t- il ............................ 95 i1110 .0'19 M rD,-r. 3, 10 80.0 31
M'in of maimum and i niIum nmp r .1W
t 'iT-'if of niiflnum and minimum Ifrrnpi rm arves





REPORT OF GOVERNOR OF THE PANAMA CANAL


Winds anld 1uinifdiUy.-Monthly mean wind velocities on the Pacific
coast during the calend(lar year 1938 ranged from 4.3 miles per hour
in November to 10.0 miles per hour in February, with a maximum
velocity for a 5-minute period of 30 miles per hour from the north on
July 9. Monthly mean wind velocities on the Atlantic coast rvinged
from 5.6 miles per hour in October to 16.5 miles per hour in February,
with a maximum velocity for a 5-minute period of 31 miles per hour
from the northwest on October 29. Northwest winds were most
frequent on the Pacific coast and north winds on the Atlantic coast
The average atmospheric relative humidity for the calendar year
1938 was 83 percent on the Pacific coast and 82 percent on the Atlantic
coast. Monthly mean relative humidity on the Pacific coast ranged
from 72 percent in February and March to 89 percent in November.
Monthly mean relative humidity on the Atlantic co;it ranged from
74 percent in April to 88 percent in June.
Tides.-During the calendar year 1938 the following extreme tidal
heights occurred at Balboa, the Pacific termninal of lthe Canal: Highest
high water, 9.6 feet above mean sea level on August 27; lowest low
water, 11.2 feet below mean sea level on February 16; and greatest
range between consecutive tides, 20.0 feet on January 18. At Cristo-
bal, the Atlantic terminal of the Canal, the following extremes oc-
curred(1: Highest high water, 1.27 feet above mean sea level on Decem-
ber 8; lowest low water, 0.80 feet below- mean sea level on February
23; and greatest range between consecutive tides, 1.89 feet on De-
cemiber 8.
;Sif.liiigny.-There were 222 seismic distutirbances recorded at the
Balboa Heights seisnmological station during the calendar year 1938.
Fifty-seven were of comparatively nearby origin with epivrcpters dis-
tant less than 300 miles; 37 were of diitanit origin; and the remaining
128 made a record so slight and indistinct that no estimate could be
made of the epicenters. Five were generally felt in the Canal Zone.
One hundred and thirty-two seismic disturbances were recorded during
the 6-month period, January to June, 1939. Only one was felt locally.
No tremors occurring during the calendar year 1938 or during the
first 6 months of 1939 exceeded intensity III, Modified Mercali Scale,
and none caused any damuiige locally.










SECTION II


BUSINESS OPERATIONS
The business enterprises carried forward by the Panama Canal
and by the Panama Railroad Co. embrace a number of activities
which, in the United States, would normally be carried on by private
initiative. These activities have been developed either to meet the
needs and demands of shipping passing through the Canal, or to
meet the needs of the organization and its force of employees. The
business enterprises include those sections of the Canal and Railroad
organizations which are engaged in the supplying of fuel, provisions,
ship chandlery, and repairs to vessels; the sale of foods, clothing, and
other essentials to Canal and Railroad employees; the handling of
cargo and allied operations; and the operation and management of
the Pananma Railroad and of the steamship line operating between
New York and the Isthmus.
The Canal and the Railroad are separate organizations, but the
administration of both organizations is vested in the Governor of the
Panama Canal, who is also President of the Panama Railroad
Company.
PANAMA CANAL BUSINESS OPERATIONS
Business operations of the Panama Canal are conducted separately
from operating activities pertaining directly to the transiting of ves-
sels, and government of the Canal Zone. The annual appropriation
acts for the Panama Canal authorize the use of moneys arising from
the conduct of auxiliary business activities with the priovi-o tliat, any
net profit derived from such business activities be covere'l annually
into the Treasury of the United States.
It is the aim to operate the business activities as a whole on a self-
supporting basis and to include as a proper charge igaiinst business
operations a fixed( capital charge (with some minor variations) of 3
percent for interest on the investment. In the accounting of profits
to be covered into the Treasury, the amount representing charges for
interest on investment is a part of the net profits covered into the
Treasury and in effect is a reimbursement to the United States Treas-
ury for interest paid by it to holders of United States bonds. The
investment in business activities totaled $31,868,200.83 at the begin-
ning of the fiscal year, and $35,061,078.25 at the end (tables 4 and 5,
see. V). The capital charge for the fiscal year 1939 was $792,293.63
(table 20, sec. V). The profits of $681,272.48 fell short of this amount
by $111,021.15.








.%l1.( II \MII' 1. AND MARNINE WOltK

TIn %l ilumi if io1\ pifrifoEiittd for (tII PitIluiliiIL (Ililll, Which is the
ip iii'ipiil i l in ll it ccllt' liiiicill th iV i oji -Imps', Sil e tii i eflf'flse
of 4s::39,s2: us c(iompnird with tleir |rc-edilil' fisciil year. Tlhe total
% iliiir 4 w\\-]r fmr ;ill ivrrr-;k was S.^'-'S.H ,a (icvrviillv of %%27,8.54
ils <; tillp;r T1le \. 1111I' illil a' work 19l1'., ;is "tiiiiipiire \tl 1i t Ithe I rwged Virig yeiar, aIre 1iown i i tile following
table:
Cross revenue-class and source

Fi rnil r*i*r I''r n I Fi-cil vear I'P rrnt
I'.ity ..I'A4 l'.^ nrfI tital


M nrine .......... .. ........ ...... .......
I l.r. *-ii I stock . -- ---..- . ..... ....
,u p, Ir .. .. . --.-..... .. . ... .... ...
Teii-il ...............................................
firi..n'
M' 1ri 1 L I 'an 11 ---- ....... .... ... .... .......
PI iiamrna Railroad . .. .
O their I nii -.I i I 'nt- I -I..irt Ini'F1 .
Out i e int r st .. .. ........ ... ..... ...........
T I '. . . . . . . -. -. .-. .- -. .- -..--. .-. .- -..- .. .. -


I, ". 7i2 1.. 9 171 C-?. 17 I.i (.,
I r. 71<. ].tD f "I r't' 1 .'. 0
237.307 7.6 *>27.752 9.2
906,921 29.0 516.9126 16.3
1. .i2 jahin 11 '1 1. ". !.1 ? 1mi o

l. C.7%. 1R1 %.3 1 3-.:. '141 42' 4
4 9y02 14.7 i t .MB 15.7
." Ir 18.1 I 'Hi.157 30.0
1 l 11 Of'.: l i' i 7 A, 'N. 111 fl


Operalini'! expn1ies" for the fi:..ilu yver tot detl s3(l1.226., leaving a
nIl rIr ernie from opj(rf tioms of $27,'-'.4.
Tir II mriji n work Ii.teel above lU iinlcs costtiistrit il of new vessels,
for li ti C:1 1:1 1 ove1rheiail of vessels for ll C.-ijinl. the L' nitel States
Navy, .114 other l('p;ilmrlonits of tile Ulnitted Stalites (ovniinnt, as
well as uirri' 1ut "hIliJ) ropi)1rsa.
WP nwr II i nft i It hip repairs.

DRYDOCxs

D in jith lilt yeaor 144 drYdockings were nImd1o at ihe oIntaion nnd the
Crit'>>:;!1 Idrydock., further Ilt-iils of wliichi are ive'ii in tie t;'ihl
below:


1.. il' belonging to-


'I iI% I II .* I,

F1 li r I l* \.iir in i i he I *,,i rrr iriil
I 11 1 1. I i r I i
I' r1.1 r


1I uiho~ii r'o
dirydock drydock

22 1
S21
I I
3) 1
II 3i0

I ^ f____________


T1 B1w b oa drydlock was iunoccupied only 10 hivys of the year,
while the list. h ( ll di rydock w;i-< nnoccupied I:3 days-. Last year the
Balboa dryvndmk was c1111,ull''picl 2 dys anrud tlie ('ri .S*Z div


1.1-.IilHT l (.1iW.i; i; I)F TiHE- PAN 1AMA C'ANAL






REPORT OF GOVERNOR OF THE PA N.AMA CANAL


MARINE REPAIR WORK
No repair jobs of consequence or jobs evoking any outstanding
engineering methods were performed for commercial shipping during
the year. Perhaps the most interesting commercial ship job of the
year was that performed on the steamship Point Vincente which had
run on the rocks of one of the islands in Panama Bay. Heavily laden
with a full deck load of lumber, she was pulled off by wrecking tugs
and towed to Balboa shops for drydocking and possible repairs.
Drydocking the vessel while in a sinking condition presented problems
of an unusual and difficult nature. The vessel was found to be so
badly damaged that the cost of repair would exceed her sales value.
After the usable cargo was salvaged and the valuable equipment
removed, the ship was taken beyond the 100-fathom curve and
disposed of.
Repairs to commercial vessels consisted principally of urgent
voyage repairs to vessels transiting the Canal or to small craft operat-
ing between the Canal and nearby ports in South and Central Ameri-
can countries. Drydocking was required for a number of vessels in
need of underwater repairs-such as a damaged propeller or a broken
tail shaft.
Repairs to vessels of the United States Army were limited to
emergency repairs to Army transports and general repairs to Army
craft based in local waters. Two United States Navy battleships, the
New Mexico and the Mississippi, were drydocked in succession during
the visit of the United States Fleet at the end of April 1939. The
drydocking of a United States Navy capital ship at the Isthmus is a
rire occurrence, only six such dockings having been made in the past
25 years. For the greater part, r(epairs to vessels of the United States
Navy were limited to ships of the special service squ:nidron and to craft
attached to the submarine kase at Coco Solo.
Marine repair work performed for foreign governments includIedc the
drydocking and gf-neral overhaul of various transports, (desitrovers,
cruisers and gunboats for the Frenchli, Colomnbiian, Periivim., Chile-in,
Briti,,fi, Canadian, and Soviet Governments.
As facilities were available throughout the year, a number of the
units of the dredging and marine divisions of the Panuaim C;ijnal were
drydocked and overhauled.
WORK OTHER THAN IilNINE WORK
The usual amount of light and heavy repairs was afforded locomo-
tives of the Panama Railroad Co. In addition, locomotives were over-
haiuledi for United States Army and for the marine shops of the
mechanical division. Speeificntions were prep)aired for the pinrchiise
of new locomotives by the Panina Railn ioad Co. During the year five
banana cars weie surveyed and senipped without repl)lacemenit.






lli-.PiZ oiti <. l-N'l U THE PANAMA CANAL


A re 1111111 i*T (if vpiiri parts were manufactured for use in the
Atlantic loclks diuriiig tihe 1939 ov-erhauil. This work was begun at
Li11 earlier dtite t1lan lls 11iil to allOFrd empllyIienit. d(1uruig a temporary
slack-wiorl period iii-.l ails' to avoid the expense of importing machinists
fronIii thle IUlnil c tuies to i1nsure completion of thel work by the time
required. A grtat deal of millwork, including sashes ani doors, was
maniufaturt ledt for iiue in tlihe construction of new quiiiarters anridl public
buildijiLs iln \rimls towns in tlhe Canal Zone. AJIn uiimUILsully large
411110iilit of rlnlnI illn y l 'gs was sawed into mierlchantILble lumber for
lot'l Pinitiiilijia lm ille1r dealers a(nd landowners.
PLANT IMPROVEMENTS
The new ri'inic loft iat the Balboa shops mald the new (i drydock
block sliied were corinmpletel and occupied during the year. A wide
reft nriilair area \was paved with a heavy slab of reinforced concrete
tn provide a site for the construction of tugs and barges.
Several new mIetal- ardl wood-working mniachines hIad been received
or were on order at the close of the fisncal year. Two :O30-ton Diesel
locomnotive craie<- were ordered to replace two steani cranes.
El.l:CrHIC(L .1 STA. 1.\TION AND REl.PAIR WORK
'Tie principinIl activitic- of (lithe electrical division are as follows:
The operation and maintenance of the. power system; the operation
ridl maintenance, of telephone, telegraph, elect rn-clock, fire-alarm,
print ing-telegraph, and( railway-signal systems; the operation and
maintenance of the street-lighting system; and the installation and
maintenance of such electrical equipment as is required by other
divisions of tlie Panama Ciand or other departments of the Govern-
Illent, aid 1b iv icli commercial and( other -ve svls as may require
elect ricN work performed while transiting the Canal or calling at its
teriiin:il plrts. Followiiing is a comparison of the various expenditures
of the electrical division for the past 2 fiscal years:

Exp*nditkires 1939 1938
Liiricii r (' an'1 r[ii>iii 1n4f pnnupr = lin .. .. ... . . .... .. ....... .. 92 (' in $579,975
Cinn.-run i i anLd li aintenaurwe rf i-i In ri work .. .............................. 796W.223 482.,443
Mfitnt. r andmi o eration te'ephnnes------------.....----.... ---------- --------- 2. 4 130.357
Mamuni nmime and ration of r wAy signals------.. ----... ---------------................. 41,219 40, 895
T -l il .. ....... ........... ... ........ ......... .... ............... 1., 54 ,963 1,233, 170


IFuIrtIher detail- of the power -yvteiii miny be foii t1 on paie 33 of this
iep(i1rt1, 1111 of the (clephome systemni on jpage 0. Thie above total of
.$I ..T-I) .11.9G3 is noit a correct. total of primary expenses as it includes
several eliients of duplication. As an example. maintenance and
repalirs on the power system are performed by the electric work unit
iuld liiri-nci tis direct element of expense is included in thle expenses
if b.it tll lie power system and tlie electric work.






REPORT OF GOVERNOR OF THE PANAMA CANAL


PURCHASES AND INSPECTIONS IN THE UNITED STATES

The principal purchases of supplies for the Panama Canal were
made by the Washington office, as heretofore. Branch offices with
assistant purchasing agents in chirge were continued at New York
and San Francisco. The Panamia Canal med(ijal section, New York
general depot, United States Army, Brooklyn, N. Y., continued, as
heretofore, to make purchases of the principal medical and hospital
supplies used by the Panama Canal on the Isthmus.
The assistant purchasing agents at New York and San Francisco
and the assistant freight-traffic manager at New Orleans of the United
Fruit Company have acted as receiving and forwarding agents for
material and supplies delivered at and through their respective ports
for transshipment to the Isthmus.
The preliminary inspection of materials in the United States cover-
ing purchases, the delivery of which is required on the Isthmus (which
constitutes the large majority of purchases), and final inspection of
materials delivered in the United States are made by the force of
inspectors in the field under the supervision of the inspecting engineer
of the Panama Canal at Washington, assisted by the officers of the
Corps of Engineers, United States Army; the Bureau of Standards;
the Bureau of Mines; the Bureau of Chemistry, Department of
Agriculture; the Medical Department, United States Army; the
Bureau of Construction and Repair; and the Bureau of Engineering,
Navy Department.
The volume of purchases made through the Washington office of
the Panama Canal is indicated by the summary following:

Fiscal year, Fiscal year, Fiscal year,
1939 1938 1937
Number of purchase orders placed..---------.------------------- 8,582 8,198 1 9,004
Value of orders placed----------------....------------------ $4, 543,924 $4,281,979 $4,912,582
Aggregate of purchases since 1904 made through W ashington
office. ---..------------.......-----------...----------------......................... $242,758,527 $238, 214,603 $233,932,624
Nunimber of disbursement vouchers prepared.--..---------------- 11,002 12,128 11,911
Value of above vouchers--------------------------------........................ $4,061, 710 $5,322,678 $5,254,771
Number of collection vouchers prepared-----.......----.....------------- 316 308 318
Value of above vouchers----------------.------------------ $164,324 $281,993 $238,075
Cash discounts taken.----....--------------------.......... ------------ $42,291 $49,119 $42,076
Realized from sales of surplus material-....-----...----------------- $348 $90 $123,925

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

In addition to its main function of requisitioning, storing, and
issuing general supplies for the Canal and Railroad (exclusive of the
merchandising operation of the commissary division) the Canal Zone
storehouses handled ships' chandlery and sales of other supplies to
commercial shipping as well as to units of the United States Army and








IlJ.InlIl (P1' tc'[i\NTilt (i- Ti.lE PANAM.A (CANAL


I imlI Si tit Niv, v. Thio filtowiniu stntistics cotvr fthel more iJipor-

hint IpwrJi I\iv freat iirr, (of tOw storehouse diirinir (the past 3 years:


lF*iwi-i vear Fisuni vear Fiscal year
i 10i0 191% 1U37

1 ine- r enili* a jilrl in 1.-- . .. . . . .. .',. : "-'i ? S% 311. filI. M 947. 417
t n -f i if I fl Ir i il. i m:. *.|ir .Fili *.* i -it ....... .. ...i 77 i . 4i .'. !7S 321

N et . . . . 7. 1 I 7 .'. 72 006
PE~-- -- - f4l .ilt1 Im MSrj ) (1
Inventuryr it uf June i 4.... i. '.i: i]7 $-i. *12rb 14. 1.. ns.5,'E
S-.**brrIi. itlob olt t ck o nl Jiti. . -$' i T'1. IIi 2t 4. %2f
N iirril..r of i h ales ................... 74'l I. 771 1 22
.I-rii bini- il- % 1i .. . .... ... 1 7 A I $ Il,1 l3 I :.4 W
!-r i11 iui. l l In 1 in 1it i irk .i . . . ....... t.Inn.s.. 17."7 412 342
.%r 1r ta sotld for AJior. . ... .. ..... ..... ..... jo ... .......... . 6, 44 | (,026


()BS01.1-:Tl. AND UNSiV'lCEABLE PiROPEirTry ANM) lQ'IPMENT

Duriiin lie vf, ir dsisposilini was nmiade by sale, or by destru-tion

IliI're the itpIIIms liid no moiioney vialie, of obsolete or iun.erviceable

)pr
R ejii' lne it- 11t'we e Iw; n(erpsslry.


FIFUEL OIL, DIESEL OIL, GASOLINE., AN) KE ROSE:NE

All diliverine- of (lie prml iics listed nbove to anil from tanks for

p)rivil( coiipini-, as well iis for Ithe P2i21iii. CIniil ;n11d flie United

Stintv's N Ivy, tire l1idled tliroii>li pipe lines ariand pi)ipiiiLn plaints of

the P2il1111 i iald.

TI'i following taille ,miiiiiiarize/.s (lie oprit(ioii of the fuel iilIh ltiIling

plants for thi- piti 3 yewirs:


Fil l a heel n il
II I I t 1Mount It..*.* I thlintic .i. .
li r. *II. I at i I I I; side . .I.
I 4 barrels l E.|i.1 . .



Vi d1 rh ~nito m
I O 1 l* i t 'I L1 i r LII

1 [w1 1 t1he 1 II I- I-'
rb l Ty .tw .11 i' m :1
11o by .r PI i. .l iI or i rt i v i l ,, . 1
Plunpeif for ourtaide interests: .. ...

T ot' d i LII r i l.i.

NumbN'ro a i.i .1i .r. ilir; or receillinK fucl or I 1i* i 1.11
'll g I il r It



'' i i." urol.. kisoNi
hulk . in Trv vi l. .. . .. . l'..n
Iuo Ik kr iit' received ... ... do

I *n *' r u1 of o 'irLtifttio s;
i' rcvi 11M
( 'f il . I I or= .II Ill*Ill. POf o1.8lia l s

Ni't i . o . -


Fri il o r Fi --d% el ir Fi-i l d eir


lParre'f 1: 1 rr-' VI r.,'
5, 179. 5 I 3.7A4.117 4. 1. 126
3. '. 7km) 3.7:13.6 1 4.344.R!1

* i. . '. *.. I 7 ii i al

.'1 '.11 'I1 i.' .121 Q .-~

11- . ".7 1 .7 li''

'i 1 '" 7 I7 1 .r. .. il 111"I


11.. 1 1*



3. '1 3. Il'" 821
1 1 9.2.Bl? 1.. $1. 1(


1. 17 1


1.11
'ml 11u

-.,. iii'.,


'II)
1.'t

2 M"!

3. '1lI. :B

t7:'. :.7

I- 7. 71.

12'i. d5i


~ ~~


I


~_~~~_~~






REPORT OF GOVERNOR OF THE PANAMA CANAL


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:
Gristobal.-Erection of customs booth and playshed; erection of
utility building for the Colon Hospital.
Gahini.-Erection of 10 buildings for family quarters.
Gamboa.-Erection of playishet and grandstand for silver popula-
tion; erection of shops for municipal engineering division and super-
struiCturIe for launch dock.
Pedro Migit I.-Erection of police substation and garage building.
An con-Balboa.-Erection of school shop building, gymnasium, office
for special engineering division; plant for municipal engineering
division, post office, police substation, 16 buildings for family quarters,
and 3 garage buildings.
All 4lt. rs.--Erection of a mortuary chapel in Corozal; erection of
ward 21 and superintendent's quarters in Palo Seco; erection of silver
bachelor quarters in La Boca; erection of lodge hall in Red Tank; and
erection of lumber shed in Mount Hope.
In addition to the new construction, maintenance and repair work
during the past year aggregated $777,779 of which $318,692 was
expended on maintenance of quarters for gold employees, and $117,615
on maintenance of quarters for silver employees, the balance of
$341,472 havin' been expended on all other maintenance work per-
formed by the constriuting quarterni-i;ster's division.
The total volume of construction and maintenance work for the
p)i-;t 3 years is sunmmnarized as follows:

Fiscal year Fiscal year Fiscal year
1939 .-. 1937

For Canal Divisions:
Repair and maintenance work --- 4 9---------------.630 $65.6 04 $r12.,537
Construction work .....-- .. ------. 3052 1,3- -,- 7 1,530,809
For the Panama Railroad Co.:
JPn-ir I nr l maintenance work .. ----- .-- --- f3.229 41,930 46, 537
*'..n >h i ri.. work .... 5,540 41 043 173. 170
For other departments of the Government, employees and
others --0 -- 4.921 15. 0511 74. 015
Total-----------. . . ..... ...... ------ 2, 2416. 372 2, 193. i00 2, 337, 068
Total maintenance- ----. .. ---.. .. "., ".i '.i
Total construction..---..-- .-- .--- -- 1, 46. S 93| 1, 42S, 310 1, .' 979
Total.------------------------------------------------- 2. 246,372 2. 193.900( 2 ,337. 068


QUARTERS FOR EMPLOYEES

Gold employees.-No cliaiinges were made in the general regulations
governing the assignment and reniital of quarters to Aiiieinnin em-
ployees. While 49 new family apartments were constructed during thlie





RIF.PiIT Io <,iF )1Itl~iR OF THE PANAMA CANAL


var, 2 11I11llil iiireaise oieurred in (thle force of Amerifcan employees,
so tillt tlie situn1tionl between uppl*y tiand demand for family quarters
is libouit tihet' saiiime as Ist yeiiar. The appointment in recent years of a
co1lSidelnible rl n iberi of yotiln Ailericanis is lpprefntices and learners
is grtuilly ilriI.-'iiig th(lie numtiber of aipplieations. On June 30, 1939,
there were t2 iappliciitiont on file for original assignment to gold family
qiinirter1, an incre'iie of 6 int comparison with the previous year.
Sil I r i impltipyI.-.-The operation of silver quarters was continued
on the stnie biasis ais in previous years. New construction for the year
consisted of one :32-room bachelor quarters building at La Bora. The
tiemand for quarters from employees on the silver roll is still far in
excess of ite siupp)ly, there being 1,175 applications on file in all
districts as of June 30, 1939. Over 50 percent of the silver employees
still reside in the cities of Punania und Colon.
A number of very old framnie quarters, both gold and silver, which
are no longer worth im1aintailbimg were disposed of by sale to the highest
bidders, and others have been condemned because of excessive
imaintenaniiice costs due to deterioration. It is believed that. the present
scille of rental charges on both gold and silver quarters will be suffi-
cienit to cover ldepreciatiion as well as all other costs of maintenance
and operation when the old frame buildings are replaced by the newer
types.

REPLACEMENT OF QUARTERS FOR AMERICAN EMPLOYEES
About 12 years ago cost records indicated that the expense of
11121intaining thle oldest frinme quarters for Anmerican employees had
reithed the point where replaceimnent was the most economical pro-
cedure. A survey showed some of these old qiuairters were built by the
French Cianlid Co. and by the Punnmn Railrond Co. before the United
States required lthe Canl Zone in 1904. There were also in use a
aInrge number of con4t rut(ioin camp type of fi-aime houses built, during
thle first years of American operations and hirge numbers of similar
houses built prior to 1915. Some of these were reerecterd houses which
hald been Imvedl from towns that. were abandoned upon completion of
construction work. It was realized that their replacement. would
require in extensive construction program over a period of years.
Thlie minatter w"as priced before Congress and the first tippropriation for
replaiilueilt. of quifrters for AniericaIn eniployee wals 1111ide for (the
Fiscal yeir ended Jii' 30, 1927.
lie first types of qiarters designedd iand built for the permanent
forci were of concrete. (In weiirolit of (tie Linre first cost of concrete
ildings, (de-igns were resorted to of concrete column and first-floor
h1iuu1s with wood frimnine structure nbove. After experience in the
coIlttru! iiin and nnint ennlnce of Viiriouis types of houses, and after
giving consideration to original cost. upkeep, Mrc., the wooden struc-





REPORT OF GOVERNOR OF THE PANAMA CANAL


tures supported on concrete beams have been adopted as standard,
and are preferred by a majority of the employees.
Quarters constructed in 1939 comprised 49 apartments-20 at
Gatun, 13 at Ancon, 15 at Balboa, and 1 at Palo Seco. The contem-
plated construction program for 1940 for the regular maintenance
and operating force consists of 12 family apartments at Gatun, 31
family apartiiients in Ancon-Balboa, 4 bachelor apartments at Ancon-
Balboa, 6 family apartments at Ganiiboa, and 1 bichelocr quarters
building at Gamboa.
There remain to be provided in the replacement program during the
future years, 337 family apartments and 477 bachelors' apartments or
rooms.
The following table shows the number of apartments for American
employees' quarters which were to be replaced as of June 30, 1926, the
replacements by years up through 1940, and the balance remaining to
be replaced after the fiscal year 1940:




IlI-.'itiT )l (;lI).lN>)It (il' THI 1PAN.AMA L'.NAl


- T 1 -7 - .3i


= =!.- Z ; -. --


-:5


I- -


2%


1.i~;


I.


2
je


C

- : 0
7

'1.


. :. : . .7






REPORT OF GOVERNOR OF THE PANAMA CANAL


MOTOR TRANSPORTATION

The transport ait ion division is charged with the operation and
maiintenarnc-e of all motor and animal transportation furnished to
the departments and divisions of the Panama Canal and the Panama
Railroad Co. This division is required to operate on a self-sustaining
basis primarily to supply t ia nsportation at a minimum cost to the
Pinaniama Canal and the Panama Railroad Co. Revenues during the
past yeair totaleil $418,743 and expenses $376,521, which left a net
revenue of $42,222. A considerable amount of heavy hauling in
connection with various building and highway construction projects
was accomplished during the year.
During the year 54 cars and trucks were purhin-iied, and 45 cars
and trucks were retired. At the close of the fiscal year 365 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 carries stocks of
ima trials, and manufactures such necessary stationery, forms, etc.,
as are required(l on the Isthmus in connection with the operation of
the Panama Canal and the Panama Railroad. It is also charged
with the printing of the official publication, The Paimlnna Cail
Record. The following statistics outline the operations of this plant
during the past 2 years:

Fiscal year Fiscal year
1939 1938
Gross revenues---------- -------- -- -- ------------- $235,299 $228,718
Total] output expense (includes supplies not processed in the printing plant)---- 221,213 220,598
Net revenue .---------------------------------------------------- I 086 8, 120
Inventory on hand, June 30 ----------------------------------------------------- 76, 687 80,498

REV'ENUFS DERIVED FROM THE RENTAL OF LANDS IN THE CANAL ZONE

Rentals on building sites and oil-tank sites in the Cinail Zone
totaled $44,390 for the year, as conipiared with revenues of $45,814
for the fiscal year 1938. Rentals of ;iriiiltural lands in the Canal
Zone totaIled $10,668 as compared with $12,072 for the preceding year.
At the close of the fiscal year 1,078 licenses were in effect, covering
2,1311 hectares of agriiiilturail land within the Canal Zone. This is
a reduirtion of 54 in the number of licenses under the previous fiscal
yei r, and a reduction in the area held under licenses of 113 hectares.
T'is reduction is largely the result of the policy adopted in May
1935, providing that as a health measure no n"ore licenses for agri-
1919101- 40--5





Ill.PUHi O( (;UVI.HNOl0 OF THE PANAMA CANAL


('cultural hlid.s wiluld be issued and that no sales )or transfers of hold-
ings .ndler lt Ice.e s prgv icI' grarlited would be permiitted.
BUSINESS OPERATIONS UNDER THE PANAMA RAILROAD CO.
The P1i11112. Rlil-roiall Co. was incorpornited in 1S49 under the laws
of tlie St ite of New York foir the purpose of building andi operating a
railroad nirMi-;ls (1tV 1uthIus. In 1904, before actual construction
wirk on (t I Pimnilii C('nid Was started, thle United Stat(es Govern-
ment seiired cvwntrol of the capital stock of teIP Puniaiiiu Railroad Co.,
wiichi it now owns or controls completely, and has operated the
(coimipany siinc'e f ht date through a board of directors.
By Executive order of May 9, 1904, the President of the United
States direc-ted that the general policy of the railroad be controlled
by the United States, while at the same time carrying on its opera-
tions as a cimiinon currier. Since that time the corporation has
esthdlished and operates various business activities upon the Isthrimusi
incidental to the construction, operation, and maintenance e of the
Canal. Thus the United States Government is 4 conducting the
business activities relating to the Canal enterprise under two distinct
organizations: first, the Panaini Canal, which is a direct branch of
the Government; and second, the Panama Railroad Co., which is a
Government-owned corporation. As the activities of the railroad
company are covered in detail in its annual report, only the major
features of operation as they relate to the Canal administration are
covered in this section.
In addition to the operation of the t.rans-Tstlunian railroad, the enter-
prises of the Panamna Railroad Co. include commissaries, which are
retail general stores selling primarily to Government employees;
cargo-handling activities at the harbor terminals; hotels; coaling plants;
a steniship line; telephone system; and certain real estate operations
in tlie Republic of Panaimn.
1The opernfions of the railroad proper, harbor terminals, coaling
phkin(s, sahibles, and bhagage transfer were continued throughout the
yei ar under the direction of the general manager of thle railroad; the
telephone system under the electrical engineer; the commissaries,
Hotels Washington andi Tivoli, and subhsidiary activities under the
chief (quanrtermniaster; and the real estate operations under the chief,
rea-l-estate section.
Business. operations on the Isthmus, carried on by the Panamna Rail-
road Co., yielded a profit of $1,481,S47 for the fiscal year 1939, as
compared with $1,183,453 for the previous fiscal year, an increase of
$29.,394.







REPORT OF GOVERNOR OF THE PANAMA CANAL 59

TRANS-ISTHMIAN RAILROAD

This railroad line operates between Colon at the Atlantic terminus
and Panama City at the Pacific terminus. In addition to these cities,
it serves all activities of the Panama Canal. The gross revenue during
the fiscal year 1939 from the operations of the railroad proper (not
including subsidiary business activities) amounted to $1,601,804.
Tonnage of revenue freight amounted to 323,233 tons, as compared
with 280,205 tons during 1938, an increase of 43,028 tons.
Statistics covering the various features of railroad operations during
the past 3 years are presented in the following table-

1939 1938 1937

Average miles operated, Colon to Panama---..-------.-------------- 47.61 47.61 47.61
Gross operating revenue---------- -------..----------.......-------- $1,601,804 $1,600,748 $1,609,744
Number of passengers carried:
First-class ......................------------------------------....---------------159,911 159,574 161,443
Second-class-------------- .------------------------------ 207,348 199,323 194,338
Total.------.-----. ---...------------------------------- 367,259 358,897 355,781
Revenue per passenger-train-mile-------------------------------- $3.83 $3.42 $3.78
Revenue per freight-train-mile---------------------------------- $12.08 $12.63 $11. 88
Passenger-train mileage--------------- ----------------------- 132,324 142,257 133,975
Freight-train mileage ------ ---------------------------------- 71,114 68,524 73,477
Work-train mileage----------- ---------------------------------- 6,043 13,916 15,605
Total train mileage ----- -------------.------------------ 209,481 224,697 223,057
Switch locomotive miles -------------...---------.. ------- ---------106,134 103,290 93,420


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 sta-
tistics suinuiiarize operations for the past 3 years'

1939 1938 1937

Totalrevenue-------------------------------.. --------- $1,936,016 $1,898,086 $1,812.959

Tons Toms Tons
Cargo handled-and transferre'd...... .. ............ 1,6580,859 1,530,287 1,446,818
Cargo stevedure'I............... ............................ 615,530 617,137 581,533
Total..----------------------........------...--------------- 2,196,389 2,147,424 2,028,351
Cargo ships handled..-----..--..-----------------......---..------------ 4,898 4,601 4,589
Banana schooners handled...----------------------...------------ 1,211 1,326 1,203
Agency service furnished vessels-------------.-----------......-. 89 106 164


COALING PLANTS

Coal sales during the past fiscal year, while substantially below the
preceding year's sales, were at the same level as for the fiscal year 1937
which is about 50% above the level of the pri-ciling four years. The






ISI-:Pii{ti ilF (uVERkNOR OF TiHE PANAMA CANAL


following statistir; siinjnumrize the operations of the coaling plants at
C'ristohal andl IBlha fior the past 3 fiscal years:

1909 198 193"

i;r." r% cnices P "...7. 1l $7t7, 121 $5.52. 140

Tnoiu Ton. | TonRi
-*1i..... . . .'. 1 Il 1 7 1. h l
*-n.. l i-iin liii rP ...... ...... .. . .. . .... . 4J. 1119 1.'l, 4 5y. 9 14

TUl.I.IHON iS AND T 1-.I:f.UAIiIIS

Tihet' gross riveiint frin P 1> th operation of telpliuones, clecric clocks,
and l('ctirir ip rinting t 'li e '-"rIupl Inflillii (\.>- iiminillic.t. 1 ti 24S,633.
During tihe year 1,775 tol'pho'Iinis were rmcoinected or installed,
ind l 1,.55).1t) wr* iiinoved m- o isconillnied, resu lting in a noet incrcense
c-f 219 for tio' yvar. At tih- viil of fliv fi-cal yvar there were 3,268
tclePhopllt s5, 51 r1 -'trif' 4o-k.-. aindi 24 nUioimaitic ijintiiir tPlIe rp'Mih
typ'writ'rs in -H r it[ IWn l 141i r-n lo i ta- i e ttan clepli -1c eiI liii li Idled
flirouligh i ip itolliativ i''-xnli;tir, aventgrei''"d 54,402 callL per daiy in
1939, a;s oiiprMeil w ith 55.1124 r;ialls, pe-r lday in 1938. This results in
a d(iily iverlilr' of ii1i6i1 17 p.il. ] -I- tclhphtiIp.

Sl l .- ESTA TE O OPERATIONS

Real-PS hit iOpe1 iitions of i' Pai llilii R1 iilolid (Co. C\lIr property
owned by the oimpllinly ill l1c.' citit' of Painaistii 1in an ('oin IIiind hilti-
ings (tcttt'd by tll comtIipaiiny in thei ('2111.1 Zone. At tli' close of the
fiscal year 1939 a total of 1.572 leaispr' a;ind 15 licenses were in f'feet-
''overing the lius;e of Panilinn Raiilroad prorrperics in thi' cities of Pailinrna
1id( Co lon. During (tim pn]t year, 181'7.3 sqImire meters of .inid in
the city of l1iiiMili, 0not neve!''d for Ilimwinrss piirpo)es, were sold.

COMMI.1s\I(Y DiVIsio\

The 1)illi;llT1 fiilli-tion of time roilninssary Idivision of i1the Panama
Hailrond (Co. is to maintain :idlequate stocks of food, clothing. nnd
1o01iseld 1suplies to ilec (I IP needs of Co pnineliit personnel itid
4f vriouis IUrmited Stif. 1s mvprniment de tpirmentls oin tie Ip tlillis.
In carrying m1l t(hii funt-ii-'n the division operates retail stores in
each of the (ainal Zone tmowi I. ind ualo rental whiolesale warehouses
!) nd cold-storiagi phi t Sii "- aure restricted to agencies and personnel
f4 the Unitedl Stiatis Governriment,. except tlimt sales of ice. cold-storage,
food, and other essentials are made to commercial steninships trans-
itin (the ( Ciuinl or ciUllinEr t its terininul ports.







REPORT OF GOVERNOR OF THE PANAMA CANAL


Net sales for the year totaled $8,897,317, as compared with
$8,518,242 for the previous fiscal year. At the close of the year the
value of merchandise on hand was $1,137,050 as compared with
$1,079,298 at the close of the fiscal year 1938. The rntio of sales to
inventory indlicfttes a theoretical stock turn-over several times a
year. The distribution of sales for the past year as compared with
the 2 preceding years was as follows:


1939 1938


1937


U. S. Government (Army and Navy)----------------------.
The Panama Canal...-------- -------.........-----------_-
The Panama Railroad-------..--..------------------------.-
Individuals and companies.- ...----..-----..-----------------
Commercial ships-------------------------------------------.
Employees.-----------------.......... -.................- -
Gross sales ----------------.. ..-...........--.-....
Less discounts, credits, etc------------------------------.. ...
Net sales--------------....---.--.....---.-..---....---..


$1, 450,032 $1, 286, 237
839, 953 823,936
262,395 273,139
353,048 1 270,259
307,342 327,944
6, 221,731 6,054,100
9, 434, 501 9, 035, 615
537,184 517,373
8,897,317 8,518, 242


PURCHASES

Purchases duriniig the year awireg-aitvd $6,557,651, an increase o
$406,901 as coiimpa)red with the previous year. The following tabu-
lation shows the value of the various classes of materials pijrcha.ised'
as compared with the 2 preceding yvars:

1939 1938 1937


Groceries ----------.--.---- -------.. $1,893,472 $1,861,179
Candy and tobacco ----------- --------------------------- 357,943 328.061
Housewares--- ---- --. -..--- ------ 365,359 340,051
Dry goods ------------------.----......----------------........-... 911,704 829,161
Shoes-- -----------------------.--.---.-----.------------- 248,127 212,065
Cold storage ----------------------------------------- 1,188,344 1, 1175, 048
Raw material--------.--............--------------------. ...... 4.11i. 288 418,734
Cattle and hogs--- --------------------------...------- --. 2.202 201,178
Milk and cream ....----------------.... --------------- ---------- 236,844 224,883
Dairy products-- -----------------------------..--------- 645,368 560,390
Total.. --------------------------. ------.... .. ---- ------- 6,557, 651 6.,150,750


$ 1,780,970
330,148
347,647
776,306
203,551
1,020,563
471,335
189,174
185,853
644,466
5,950,013


Ho! I !,.s


The Hotels Tivoli and Wai lingtoin w ie operated by the Painami
Railroad Co. without change of policy. Tlhe-f hotels are an essential
adjunct to the Canal for the purptiu- of providing suitable inciwodlta-
tions to people having bi-inis with tlie Canal, foreign visitors,
Ameriienii tourists, visiting Government officials.' and others.
The gros revenue from hotels \a-, $308,399 as compared witli
$:129,584 in 1938, and the numbci of guest-days %was 43.744 as com-
pared with 45,402 in 1938.


$1, 053, 630
795,227
307,811
265,590
354,342
5,827,402
8,604,002
490,890
8,113,112







Nl.10l DAIRY

Ti ll penitiui of OIw' Midl DiilfV cnintirod it, in prriviwi^ yvemrs.
M ilk p tiiilirii n for flit fie':ir mitnited (In a total of 417,047 gallons. as
roiinpared to :7;D1721 _ldl1n'1 in the precedini y iir, anll incroipt.e of
47.226 gillidns;. Fi ii miiilk w.ii supplied to fln Army and Navy diir-
ing till year in iililitijii to the regular l cilani Z.i'e trade. Buildings
a1ndd inti-t rc Wirv l illitf inil in mm.I riinil '1itii1 L v the d(iirv pipfeniting

PA N M% .LHOAD SI.1AMSHIP lIN I.

The grose operatin ru\fenii iie for the steanisliip line lor the fiscal
year ended June :3, 1939, nuiinted to $1,734,6904.28, aind tlie gross
operating expest'es, nimounted to $1 ,21,699.6*3, reiinlting in a net
deficit from operations of $.S7,005.35. Thie operating deficit compared
with the net loss for the fisctd year ended June 30, 198, (f $168.335i.07,
showss an increase in the net revenue of $81,.329.72.
For the year ended June 30, 1939, tlihe tonnage carried by the
steamship line animounted to 210,72S tons, as compared with 188L.014
tons in the previous year.
The steamship line carried freight and pni.-eiigers for account
of the Panama C'anal and other departments of thle Governmient of
the United States. at material reductions from tariff rates, which
amounted to the important, sum of $366,779.28. Had regular tariff
rates been received by the steamship line for suchli freight and passenger
services performed for the Panamna Canal and other Government
departments, its income \oidd have been increased by $566.779.2S,
and its operation- for the year '.vould have resulted in a profit of
$479,773.93.


lt-,ll'Hi T {' t *w . l;. \"J; Ot- CII i'A.% '\.\.1 C%.1NAI,









SECTION III


ADMINISTRATION
DEPARTMENTS
The organization of the Panama Canal on the Isthmus embraces
five principal departments, namely, operation and maintenance,
supply, accounting, executive, and health. In addition to this, an
office of the Panama Canal is maintained in Washington, D. C. The
Panama Railroad Co., a Government-owned corporation conducting
business enterprises on the Isthmus, is a distinct unit, yet it is closely
affiliated with the Canal organization.
OPERATION AND MAINTENANCE
The department of operation and maintenance embraces functions
related to the actual use of the Canal as a waterway, including the
dredged channel, locks, dams, aids to navigation, and statistics of
navigation, accessory activities such as shops and drydocks, vessel
inspection, electrical and water supply, sewer systems, roads and
streets, hydrographic observations, surveys and estimates, and
miscellaneous construction other than the erection of buildings.
SUPPLY
The supply department is charged with the accumulation, storage,
and distribution of materials and supplies for the Panama Canal and
Railroad; the maintenance and construction of buildings; the assign-
ment of living quarters to employees and care of grounds; the opera-
tion of storehouses, fuel-oil plants, an experiment garden, and a
printing plant, and the supplying of motor transportation facilities
to the various departments and divisions of the Canal and Railroad
organizations.
ACCOUNTING
The accounting department is responsible for the correct recording
of financial transactions of the Canal and Railroad; the administrative
auditing of vouchers covering the receipt and disbursement of funds
preliminary to the final audit by the General Accounting Office; cost
keeping of the Canal and Railroad; the checking of timekeeping; the
preparation of estimates for appropriations and the allotment of
appropriations to the various departments and divisions; and the
examination of claims.
EXECUTIVE
The executive department embraces the general office business of
the Governor and all administrative activities invested by Executive
order within the authority of the executive secretary. Under this
63





REPORT OF GOVERNOR OF THE PANAM.A CANAL


department ii r iv' l aid liiiini t ation of p)olie iln fire protect tion,
postal ser vice, ci'lltiis, 14hippinJ-co1nn1issiontr work, estates, schools,
general d1rin-C. 11r11I rverd s for till *irgiii/zllioatln of the Canal
nilld (]PilIinii liIniluld. pcr.niimp rerirds wind adininistrition. wage
adjust -iitl.I illrfimi 1I:11it'I aniid publicity, rtl- tiims with PaliilliaiI. find
the iipcri'iii of tclubhoiills, Tre'tiifurin, iiLCil'i1-pJ)iCture lietl(ers,
p iyll r Iinll *.(c.
lTK.1 .T H
fI' liiiidli dCpIllt()1ilC t ia- jiirisdiciii over i1 111 ilit PterN p(rtininlig
s ili iliit im ild l p licituiltl with i li o t ileli 1 Zon iiiidl the cities
of P.II III 1121 rid N doil, tile operalion of liospitils mid 41li | < ;nItriS,
n'! tuIn' enforuf'iiirit iiof qIIiritiiiec reguolatiois.
PAN.AM\ R.I.IHOAD Co.
Til operations of the Pianina Rlziroand Col(. on the Isthnimus are
geernilly related 'losely to thle work of the Canal. As IthIe Governor
of the Pmniinna Canal is president of thei PaItini 1?; Railroaid C4o., the
liheds of di'lpartnients of both tlhe Ciiuial mrid Railriaid origaniintions
rep(fL to hlin. 'Fie !en'er'll mdiiiniisti rtituui of the colilpisite orgini-
Ziiliolii is e ilpit ed in lhe exe'iltive 4 Olif a2 in! t( iC cl llritillng work in
the liceolilitig depuiIrtment; tlit Paiamn;i taillrolid, aiid the business
division of the C(;ai1l1 orLrUiiiizaitioi aire hlilled for tlieir proi-per siaire of
the general overlieaid work.
CHANGES IN ADMINISTRATIVE PERSONNEL
Appointment ; in official positions during the fiscal year 13i were
as follows:
Lt. Comnldr. Worthinuton S. Bitler, United States. Navy, was
appoinltedl as ivsistaint to the marine superintenmdent on TJuly 6, 1938,
vice Lt. UnHarold C. Pattion, United Stiaes Navy, relieved frori duty
with the Pa;ia nain Cni1il.
ndl. Micih;icl A.. DAiily, tUnittedi SlIls At.miy, w2s iippintill 01 IjPr-
inlindlent of Gortgs iospit;il on Noviiiher 21, 1i3s, i(' Col. Williamin
Ricl;:rdiimn, Vnitied Stil s Arny, relieved frin duty with thie lPuianii

TlI posittin1 of splci;l i--i-1 nit to 11ie G on Janiaiiry 1, 193i), iind Mr. 1 . .Erhe wais appointed to fill the
office on t4ia dlate. the Iponilici if 4idinisi;lrative aissisuint to the
GCvrriTor whlichl Mr. Erbi foriie'rly liel being li holislied.
'I'Tih psi'iJ (f diirecli' of p'rs'iiinel wasi e'st, ahlisi'ed on Febriinary
1, I1:;', and 'Mr. SC, vinmir Paiil iIwas ippoinlied to l11 tlie officer onI
t(lh: lu-Md hln'iL aibolishird.
Lt. R] si-aint to thei Governor on January 24, 1939, and on February 11,
1939, wmas appointed assistant, to the superintendent of the mechanical






REPORT OF GOVERNOR OF THE PANAMA CANAL


division, vice Lt. Commander Dale Quarton, United States Navy,
relieved from duty with the Panama Canal.
Capt. Charles Sommers, United States Army, was appointed aero-
nautical inspector on June 1, 1939, to succeed Capt. Frederic H.
Smith, Jr., United States Army, as senior aeronautical inspector,
effective July 9, 1939.
Lt. Col. Douglas L. Weart, United States Army, was appointed
assistant to the Governor on June 29, 1939, to succeed Lt. Col.
Wilhelm D. Styer, United States Army, as assistant engineer of
mainteinance, effective July 18, 1939.
CHANGES IN ADMINISTRATIVE ORGANIZATION
Dici. s;'in of pu-o iin tIl supervision anfd iniaifii niiin.-In accordance
with the provisions contained in Executive Order No. 7916, promul-
gated by the President on June 24, 1938, calling for the establishment,
of modern personnel service organization within each department
and agency of the Federal Goverinmient, the division of personnel
:iiliniiiii-tration of the Pianazia Canal was, on January 27, 1939,
rd(le.-ignated the division of personnel supervision and nimilnigiment.
Bin au. of s7a7.ii.sb abolished.-Effective April 15, 1939, the bureau
of stati-.tics, a unit of the executive department, was abolished and
its peri nn-ed and duties, except for the keeping of vital statistics,
were consolidated with the plans section, a staff agency reporting
direct to the engineer of maintenance. The purpose of this consoli-
dation was to centralize into one unit various statistical investiga-
tions and the keeping of monthly data concerning certain operating
features of the Canal-Railroad organization.
Property and r'(q';'.-'itin bunrmu ,ni,'i.',h(1.-The continuation of a
major study of the property accounting agencies initiated during the
precedingii yeair culminated in the abolislhment of the property and
requisition bureau of the executive depart hiiint, effective February 1,
1293, and the decentralization of all property records to the field
offices of the re-pective departments and divisions. The purpose of
this chainii'e was to facilitate the li;indli;ig of sulh records and iwii.e
for incife'd (ficiincvy.
EMPLOYEES
The force employed by the Painaina Canal and the P;z:inamm. Rail-
road Co. is composed( of two cl;'se which for local convenience have
blt dcsigi;aied goldil" and "silver" employees. The terms "gold"
nIloveets and "silver" employees originated during the construction
period of the Canal from the practice of paying cuiimmon laborers and
other unskilled workers employed in the Tropies in silver coin, while
skilled craftsmen and those occupying' executive, prof> i ina, and
similar positions were paid in gold coin, the lItter group being re-
cruited largely from the United States. Although all employees are
now paid in United States currency, the original terms used to des-





RniEri'r'T OF (GOYVERNO OF TIEM PANAMA CANAL


i-miiate tilt ,wo m li--rs of emply vPCS laive )be rethiained for conven-
ienq e. The terin "' itr" (nd "silver" are ippiliedl also to quarters,
col slsli r1v1, (l I .9il14-1, n Tnd O l ] p11blic fliclltils.
Th 'j old employeril- t liii t, is, li ose cit rried on the gold pay roll-
n r, w ith ii i few e cJp ions ii A meri enn i i citizens anId comllprise those enm-
pi IViI.I \\ln ait' MWIlied inl the skilled trades n iidl in the executive,
siRii -c'i V., p1ifr-sdie l 1i l bpre iffsi mi l, clelfidi, mill ot 1i r )posi-
innill \ lirr c1 ilcit il, Ii'lilinig, aniu speciaIl qriillifieitioins are re-
(i1ire[. T('1 force of silver eniployecs isis composed abnlmsu entirely
o(if ii:nlike o-f tie Trtpics, iI c(mii(leraHble n1inlier of wunIm tire Pani-
ii;I:nIi<,. Tl iiimjority o(if tlil silver emp)loyccs, other lt1111i Piiu-
iiliiilii-, lit' WO4okcr5 wilo eillil to the IstiliIls frlruil Vi-riolls i;11111(s
in tilt WVst Indies during the early const ruction period of tit C'anal
or are the chil(iren of these form-i-er workers. The force of silver em-
playevs is composed of Inclxrers, lielpper, and senmiskilled workers who
halif\ r airinred some nmintilil elextrity but tare not first-ein-ss craftsmen
in t1'ir respective trades.
i-11111121 C1nal1 employees tre divided. hlierefore, into two getieral
clI0s r, one of which conipri.es United St;ates citizens, iand the other
principally nitvtive tropienal lItihor. Thliese two rlis-es are aenrrie(d on
se])trntie pay rolll mind thlie conditions of enimplyinenit applicable to
eichil differ niateriailly. The division of ihber between the two classes
of employees is a matter of long cuistim in tropici1] ciintries muld our
pr.lvice conformns to this general custom.
PERSONNEL ADMINISTRATION
Tl'e division of personnel adminiistriltion of the Pa nanuiu CIianal was
remillmed tie div iioni of personnel Suipervision nii m il aiigement to
conform to the provisions coninaied in Executive Order No. 7916
prom uingaited Ibv the President. Other sections of this order pro-
vided for lthe establishlimenit of an in-service triinin[ prouranm aind
for a competitive promniotional procedure. Acrordinmly, it hts been
lnecesa;iry to increase the personnim1 stiff of thlie Punaiina Cannl1 to
pIrovi'ile for the expansion in functions entailed in this program.
D1rilng the year special atentioin mwas directed to in-service train-
iwi_ \Nirlrk. Thle apprenlie-learnr regulations issue in MAy 1936,
were combined nd brioughit. up-to-date and no occupational descrip-
tionii of each crnift or occupation for which thie apprentice or learner
can train was atlledi to give prospective ipplicijnts better knowledge
of anritis Canal trades. In connection with the aIpprentice-learner
prim'ri'i 46l ywing trainees were appointedl from July 1938 to Jine
I9:!1i to vilriols apprenticeslip an(nd lenrinersliii) positions.
('iitiinle progress was made in the development of the files of all
LIVII applicaiits and increased cooperation and coordination were
effe cedire nand the development of applications for various types of em-








REPORT OF GOVERNOR OF THE PANAMA CANAL


ployment on the Isthmus. As of June 30, 1939, there was on file a

total of 1,371 applications for employment on the gold roll of the

Panama Canal and Railroad organizations, of which 845 were from

the United States, 438 from local civilians, 78 from personnel of the

Army, Navy, and Marine Corps, and 10 from South America. There

were also 246 applications for transfer from employees holding per-

rnanenit or temporary positions with the Panama Canal and 116 ap-

plications for Canal employment from among the civilian employees

of the Army, Navy, and Marine Corps. This made a grand total of

1,733 applications on file as of the end of the year.

GOLD EMPLOYEES

The d(listributioni of the gold personnel on June 7, 1939, and June 1,

1938, is shown in the following tabulation:


J 7, J 1,9 Increase Decrease


THE PANAMA CANAL


Accounting department--------...-..............------
D ie*i1:in" divisionn ------- .-- ..-....- ....... .........
Engineer of maintenance, assistant:
EI rtcrir?,'tl division--...-------------.. -... --....---
Locks division-----..----....-...--..--.......---.
Municipal division-- ...- ----........-.......-------.......----.
Office engineer--------------... ---...----..----
Surveys-Meteorology.-----........----......----...--....---
Executive department:
Executive offices------------------------ -..... ---
Bureau of posts ---------.-.-.........--.--.---.-.--
Civil affairs and customs ----------- ....---.-----
Clubs and playgrounds---------------------------
Collector----------------------- -...--------- ----. -
Fire protection ---------..-....--.........--..---.
M.-'.i:lr' l; courts............ ------------------------------

PIoi.v and prisons ---------------..------... --.
Schools------.-.- --------.-.-....---..-...- ..-----
Fortifications.-...-----.--..---........--.........--.----..-
Health department ----------------.-------------
Marine division --------.-...---..-....----.-.-.....
Mechanical division..----..............-...........-
Special engineering section......-...----...... -----
Supply department:
Offices, chief quartermaster ..-------- ----
Ciiijndruitiiin, quartermaster------..-..----..----
1)Mrii 111.artermasters ...--------...--.........---
Experiment -ari-Dn ...... . ..
Fin I oil plant. ------------------- --------------
M otorcar repair shop------------------------ --... --
M otor tr:min | .ri iti .in ........ ... ....... .. ..
Panama Canal Press -----......-------------.-----...-.. -
Storehouses .------.........---------------.-....--.........-------.


3 .........
3 -----------
3 --..----....


131
5 ------------
1 5 - .-- .- .
13 --- -----


---- ------- -- ------ -i
- - - - - - 3

S-----------

11
^1^1^^------------


- ----------- i
-----------"---


..........--
11

...........---------


2
------------
------------
1



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



23


3


196 190I 6
447 458-----.---4
42 () 42

12 10 2
85 84 1
25 26 --...-.......-
3 5 .... .......
38 36 2
34 28 6
42 29 13
11 11 --- .
53 50 3


Total, the Panama Canal..-----------........-..----------- 3,052 2,944 133

PANAMA R. B. CO.


General manager:
Offices.. -----............................
'I'r.iii iurt-itiri and maintenance------- ........----
Ricq'i.ini and forwarding agency-...-- -- ----
Supply department:
Commissaries -------------.........------
Dairy farm.--...------....----.---.. --- -----
Hotels---..------.----------------------
Real estate section...---------...-..-...-........-----

Total Panama R. R. Co.------------......----.....---

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


4641 5
64 66 . . ..
96 99 .. ....


I Included with office engineer.
2 Included with general manager, offices.






I'Si ''; ll i 01'.1\ I ;\Mil I 1 i.(,-. .PANAMA ('ANAL


hiicrv r Ilia% bet 1 4 i l '4 Ill in f i h' i, l3 I], ii1s I c i i-pv of Ilie special
ri l1' .i' ill" I '. --,n I!I I t I Ill o | lIit rvilI-is all t< -r ic I fill, % I 6vI i I m I ol d
f r, of IIII 110. Io-| TB f! 1 f Jiliv 7, P1939. A. noted, the
1" 1 fd I I I 1.il 'I -Ii '1 i lI l II i lulI 11 bi] I1, 13 1ic il 1 w as Co im -
pari %li\ riv ma i % .- (*;IfTi.i d ik l, Ii i ii. fi I 1ii 5iiice'r's or ini/iltion,
M l% li1 il of thI rval c-..' -'r. iii H f .Ilifrn rlY iirrild witli '( fhices'
11]1t Hl iv "llf I'I l l l I;.'lli r 4 1l. P .IlliRllllI 1 t il il o .
IIT v ill, 1i- 4 13 *0 11111il. ili the clec itrictiI ivilIl waIS
C I lI I itl I llit 111111n1i; 1 i) i 'i i i(lJ' li .1 I.i iij p thie 1moto iItr nspor-
tttht il Ili -illyl %l : the ';if'. *ilou] rlnctioiii \\nrk
,*I I NI 1 I I 4 !O I


1< 1 1 1 NG1 AND 'I I :.If OF- '- tn 1. : |.I 1 EMPI. 1 II -

Til' fil \11mi-,, -h Ai tiil nc 1 '* (1i4d force ianlld e*p i',-
tm1is i 1iii i ll the fs :.-1 i frI 1 Juvly 1, lis. to Ju1ne Th, I193I.
.inil i ts i1..--.if !iinlie iii till 1t:ited S(Ilits or on tlIe



F 1 I T I. I I I ill 1 .
Ii c '* *, is < '' '*1 (an ?
i;" r~ orrf'riiititC ii>l!t* iol .i or
*As io RT :.
117r n!


I T I'. I i2 2
1.1 1.1.



1 *1r
p['I l Iut i Ir l '"'* *I' .




S6 1 i 2S

2 29




it P iIi i iP11- i
I I 2 5
S. . . . . . .. 2

V ~ L OAIt I I I l: . . . . . . . . ... . .... 0
- - - - -| 2 . . . . . .. .
( )X r Nf (* if 6 w t e ..I2l









-4111,~i %1 11 1'"1 11 1 -It.:% it ti l, rjt 1, ;h .1i. 1) e is I
: I ': *,* 1 .111 1 II~l V % ith a, tum1 vi r (if 10.93 percent t ti hIr'J f1o t hreil
T ..r I* ** *
.. 1. ........ ..... 43 .
ri.. .. 1 i. . .....I ... . .............. .



*i'i t 0011 it \'i *1'. I 'L . IIe i . f'i .if 3,-l.h Wi' (h1. 0 1o ar, t e 2
.I' rall *'| rI.. -'; ll' :Il 1 1 1) *I .lr l- vcr i .74 .lren- i f roimI

1-1i 'r i i1u14 1 11 11 1 '1 4-l pnIL')V''n il 'e ra- of 3,393 em ployees.nl1

.If dIy *i :11 .*\lihItib Wl (if temporary employment
'*"'*- ~e- '* *tinccn i i V T J ni* im tl incr*rii ft i lr l *'' 10 ll':lP} i r- I otP ll OVsI'r" ;IIP






REPORT OF GOVERNOR OF THE PANAMA CANAL


are excluded the turn-over niae was 7.4 percent for the fiscal year
1939, as compared with 8.7 percent for the fiscal year 1938.
The Waishington office of the Panama Canal tendered employment,
on requ(iisition-',- above the gr \e of lilborer, to 642 persons, as agaiun-t
191 the previous year. A total of 290 pri-.,ii accepted tenders and
were appointed, covering 62 classes of positions. This was an in-
cr.aec over those issued for the previous fiscal year when 106 appoint-
ments were nilde. The increase was due mainly to recruiting- of
em ployees for the locks overhaul and for special engineering projects.
A total of 3,039 persons (2,790 from New York, 99 from New Orleans,
4 from other Atlantic coast prtk, 144 from Pacific coast ports, and 2
via air transport -cirvice), including new appointees, employees re-
turning from leaves of absence and members of their families, were
provided transportation from the United States to the Isthmus.
This is an increase of 156 over the previous year.

WAGE ADJ'STMhLNTS
The Panama Cianal Act provides that -jlaric- or compen-ation for
Panama Canal employees fixed thereunder by the President, or by
his authority "shall in no instance exceed by more than 25 percent
the salary or compensation paid for the same or similar service to
per-'ns employed by the Government in continental United States."
The policy generally lias beeni to pay to United States citizens em-
ployed on the gold roll the full 2F.-ipj-ceti differential above pay for
similar work in Government employment in the United States, within
the limit of appropriations available for salaries and subject to the
preservation of coordination w'itl.;n thie organization. The 25-percent
d(ifferefitial above States' ratoes of pay is justified by the special dis-
advantiigi.-, inherent in the elliati1. e oniomi-. and social conditions
prevailing on thie Isthmus.
The prevailing allocation of 9 iployees included under the classifi-
cation coincides for the most part with the initial allocations made in
1928 and 1929 im ediaitely foll' wizi the p;insa'(e of the Welch Act.
As the duties and responsibilities of positions change from lime to
time due to reorg:iriiz:itioin, cag of personnel, creation of new posi-
tions, etc., the classification ciinuinittee met frequently throulihout
the year to consider aind take iipiprriate nation on allocation of new
positions and reroiiinieidhitioij for !- l i'u- as submitted by heads
of depart imenits and divikionr.
The wag board, cin-i-ting of the assistant engineerr of maintenance
and( a representative selected by an (.i: !ii/.n;ition of employees and
approved by the Governiiior, held two meetings dirint'_ the year for
the consideration of requieted w-;;g adWist'ints maidc by the signTl
maintainers aiwid by the railroad locomniotive engineers.








70) Itl:ilt1 inF (iOVF-.RNOR OF THE PANAMA CANAL


The -aliarv 61k1ni1, o(1111ipos41l if thlie heads of the nine major d(lepart-

iiir l a:nl div iio If t 'uIniilit ( Iu I And Planiaia RIilroad,

liel' lil Iii 'tjjIr- filj-jiJ1L l,.f th inar.

Thei' oi Iplaiit- 1nt ou -iihiblishil fI'r the I-Ipose of investigating

filli rpp'riliTt1 111
he vi'yir.
SILVER EMPLOYEES

'l.ii iliiiielor- of pidiiV>] 'e<- i 1 .ilve r roll by departments and

dli\ iki
'imii in I lit fllwrwi1'u Ifii1hiltii>. Thnie tmilmmafi ries cover the num-

her If i upl y (e. I in the specify' hiiy- on wliich the force reports were

* ninpile-d (thli first WVedlnev'dIy of the ionith), and are believed to be

finirly r{plo-inilative for in-1,1 of thie divisions. In some divisions the

nul'm-oer ,r employ een t work nmay change by several hundred within

a -h;rt time, iimurdin-g to viriationmi in the demand for hourly rated

labor. The mumiiniiiry shmow only tho-e at work on Juine 7, 1939, and

JTune 1,1Il:


THE PANAMA CA


June 7.

193NAL
,NAt


S surtir. -i rp.irtment . . .
r-eipineg l% -i n . . ....
Sr finct r -f nTimnti nai1iicf. i, *.- ii 1 ?
F:l t rr iil I I is jr. .
Locks division. .... ...... .......... .........
%1urijn i[ il -1i1 iij.n ... .... -............. ..- -
( ifintc 'neinier ............. ..............
Sizr i % -- .i e?'urulbey................. ......
BUT llj%' I- 1".irlm'un
F zersitis- -----------en
F.1%-1 lajrl i lTI- .I .t .... .... .. ..........
Tlur:u [..lurI
1 ivil nstair' in i rea uslfini, '

i'lw. Irna w r n UyiT'in.l
MAITIc.i.il- n'u i
I N .e ai nd pri-i.I . . . .
I'r ic uni iridn i . . ------
.*** h el' .r. . .. ..... ..- .. .... .... .. .
*'- l it department... ............-.- -
'-I irsiseii' : .'n . . .. .. .. .. ... ........... .. .
M echanial t li i inn .. ........... ................
pwinlI I ni.. rine eton .... ...... .........
* I'(Y'Ii j*Ibt iiirri inl
I 'iri rrin in Ji~iinrtcrnia'IdTrr . . . .. .. .
l i.pfri'fr 1111 i l lem il, r ...-............ .. .....
Fj- r 'nint nruden ..... ........ .. .. .
l is .l I .1 rA ... ....
I :.. i.r nir re-lvor 1h r-p . . .
I..t..r Ir.rii- .-.rl ti n .. .............. ... .
I' t i. ( n rl I- . ... .... .. .. .....
'. h .. ... .... .... .. .r I


T q'i the Parnama "nnil ..... ..

PANAMA RAIl ROAD OM fPANT

OfflC. ..
I rin'1 ..*ri'?.'.rs ind I iiln e nance
it.* \I .lTS uls f..rv ,rIirlin se*n'y ..
I I ri Pii, ii l

iI. r . ..
* -1 *. -n irt ... .


r 1 11 r I'li''e] ~


2
M4


230
IA5
4944

20
8


23


2
46
20


19
33


42
*12
6 I
119
12
902
28


, i- IInrease Decrease

I- -


3
849


213
672
1.0S8

69

40
18
1
260
2
2
46
122
850

938


178 975
31I 353
29 So
53 ,;i
*9 49
132 121
74 75
272, 219
- 2! ~ 7 T'7


IP.


1.243
113
a I


I . . . 1
i.: . . . . . .
17 ...........
17
13 .... ......
436 ............
9
...--.....-- 13

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



. . . .
13



.......... .. a.. .. .

2 . ......3.
14


28



S .. ----

.57
... .......3


.... .. ^ .... .. .-.
iti
I



117
117
17
6'.3IIES


.279 1%
11H. '04
?.iA .1I

1,1m 59 ...
10 8 ..
19 16 .
0 a


2. VYI 2. 676 475 1.8

11 246l 10.413 1.127 294


Sln lwn-1'ltl with general manager, offices.


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


I I. ". i 1.*1 w lth office engineer.






REPORT OF GOVERNOR OF THE PANAMA CANAL 71

Increases may be noted in 17 and decreases in 9 of the units employ-
ing silver personnel. The increase in 17 units is exclusive of those
shown for the special engineering section and real-estate section whose
forces were carried with the office engineer and general manager's
office of the Panama Railroad Co., respectively, in 1938. The increase
of 436 in the force of the municipal engineering division was caused
by the greater amount of construction recently undertaken. With
respect to the increase shown for transportation and maintenance
and the decrease in offices under the Panama Railroad Co., these
changes are partially explained by the fact that the roadmaster's
organization in 1939 was carried with transportation and maintenance
whereas in 1938 it was carried under "Offices." The actual increase
in the two combined-i. e., the difference between 334 and 158, or a
net increase of 176-was caused almost entirely by the reballasting
program of the railroad. The increase of 63 in the clubs and play-
grounds organization was due largely to the opening of two clubhouses
and to increased business in the restaurants. The increase of 59 in
the commissary division was necessary because of increased business
throughout the division, and the increase of 55 in the receiving and
forwarding agency reflects the greater amount of cargo passing across
the docks.
SILVER WAGES

Wages of employees on the silver roll bear no definite relationship
to wages of corresponding classes of workers in the United States. As
these employees are for the most part natives of the Tropics, their
wage scales are established at level., h1wed on wages prevailing for
tropical labor in the Caribbean area.

SILVER ELIGIBILITY AND EMPLOYMENT PROGRAM

During the year 2,251 applicants for employment on the silver roll
were interviewed and given physical examinations, an increase of 45
percent over last year, while mi ny others showing less evidence of
fitness were briefly interviewed and rejected without further exami-
nation. Of the 2,251 who passed through the various phases of the
eligibility procedure, 114 were rejected and 2,137 (an increase of 52
percent over last year) received cards attesting their eligibility. Of
these, 1,638 obtained employment (94 percent more than in 1938)
and 499 did not obtain employment.
The eligibility work of the past year brought the total number of
those interviewed and examined under the procedure since it was
iniugurated to 6,111 at the close of the year. Of this number 5,334
were made eligible and 777 were disqualified or lost their eligibility
because of physical dkiaibility and other causes. Of those made eli-
gible, 4,315 were at some timei in employment and 1,796 remained





72 tI'.;il i l.Vl I! 'Il: nlM Til: PANAMA CANAL

iirll. mprei vu i rill' I fli. fll. I`I 41' fh I tl1:it tll pe| I'litage of emll-
pl<1\ U s*Ill"* 11llr'l** HiLn- ll 11-1 -I- .lif ld q* 0b. ll lill, lille pll- l yv il' Is I-r altei
11111i I Ill ;_'Ii lIJ.": li fI ll III:ill l l: liPibI' ilt it s to till- fct ll it the
111t% [1 h il itiu ii lii brer uii iiiieit (*IfV. l i* d I tIile m hin n1 tl r hvo
l I [I I I ; .* (.% 1 1- -*i 1 4 11
In mb i i*li.rt 1 l: 11i iitiiIIIi lr -t o*1 l n't1i< f'r flthe@ lr- mI( t e ( 'fiJ -
1 **kl i -*t:l-~. r i..lr liiliarl ali lirrll **n'rri d With1 Offi Sc mls). of tin
Kri* IiEi't te! Il' iiihi ii'y If 4he t IIut leiiiii men Mi II iwitni tc l

I- 1I' i h l l II:' i I e xI IIt I l II tI ci Is I if OItlff s1 v Id fi i nil
N of I V II it'. tO:Ii1:1 heIt VI i11! 11 il1 fI t I W';v a it m iiii''
fi I i1\ t lW 11 ill f i- f l e :tia li 1iiil .il) f1l;. 1iid tria c 1iimpi s (r tiife
tu iil9 i' I P 1 1- 1ft :i l l il Iicvllt>[ I p it el l ilil c11 i Iplof e





I-i irl ir 'i i-. i~ ; ~l.n d P i 'iiiiI iir>il
I ';I Hit\ of 1. nr ';1 Iila rI K-i n* it ii lio ?Id Ili I)ln ;I (!mi ;.a R n


2 .ii l fir : iii I (1:1 i to-:1l [ I Ty t7 i l. l li fi l')h3ll! ai t t ll- f 111 0. Will I




ftv- ii i~']i joled y ; ii~r~i:i fur th l h~li rwL-si' Of rcieju it t~ir Iii th. iiti~iiij li "~~
"11 111 il'!i;Z7-.' rPI ilpHilr i itii e loits v. reiI (I)cF 'ilt irldica timis it
i- p.r I1holbltl i th il Itr will bS e t definite shor-tage of silv aii rtiiidi o





( '. 0 u t11118HilC IS~le- ini'. I idV dd I tnu V ll to leM'ui .iif)t lIf~t)VtlT IV tho:ll. it
T 1-iIllil iN 0 1111u 1 ; Oii, r .n i tly a studv i. illlv 1l)0.s to aIrIU II 1111 atil mIw
fInIIrI' r (*iii-lr o a\;ilihi lec riiiiinni lIIbmr *'4npply til the
I 11 1 1 1 1l a.
IRE.PATIClATIONS

tmlcr il t i)p)oved N ay 7, 1!13 -1, ani :II)))Tt)popriil of $1)0.(1,)(11
I li ii:vii IIr-' for ti e p11 if" J ,v of rf| tI i t riv tIJ I ilt 1e 1pi hlollyed
V si I i I iia I vi i -i f; ii iH ilirl 1 Wh Ilaio %( v tildfor e aI t Otlast 13 yevaif-'
serv ,\i l i tiI 1 h I0 lihd 'Si tes ove riiiiient or (Iitt Palifininf RT iill(o d
I'l. t k1 Isthill :u Il 'i4iditi(ll to stcilmshl ip tr(insiortali ii. cash
-i\. iwo (l II I' ( Ire il g Vil I I ric o ,din t h i Ift f 1 to it \ th v I fi ieil e
i ili i i l eiriItori ols eC1S, l( ovei\e $l foi lil mi i od chilh d to
% i> 1 111is t l eI tri v lin i XjfilI"PS, Ietc. 4o lif 's t ir il w IIIr .
lit, 1 l f I I Ifi- y n I I1 11W c r ( $llu(iv rf1 r ;l v lhl[lI)\l P. a1ere I l iii ti
fr- til p rposel of heiihili(;tion of tlo -e ex-cv ip t.h \e -- il o their in i% I.
4, 1 I11I 'if I
I )mill!-,' tIeI t1 -4 11 Il I- 193 uipt ro:iii icly $fi.96. 2 \-I- w ex 1 Ofpen!(
fro Il ri >;ilr l'i.i I itii 1 t i'l i lit Iii i'( of 10s fon cor em plo vie.; inn -
\ 70 mivmbi - of flivi fanlicl.P, a total of INS ix'r0 on1 .
1ripir i :I IIII' I'c4ril 1 f 1o n Ilie on1( l Ile pl iTt of most of ts se people
In escs if iptilherinf l ill (d1h io te1 illscric iluy l4n1 period ill.-I theye
1111\11 rc-ii-lrI on tfhe k-t hmni. :mid duhe to a belief that their children
nvf* ws'illfwilit f r ir fijijirilm ity rm. eril oI client hevre tiu 1 in, tile
11naive ii in: l of hlivir >!parin(t. alllhou hli the advent of the disghility
relief pro rium li 1 o1 (rlildd 1 viwirds the lecephinee of repitriaition by
rpripivins of cash relief off Ofie hasik lint living r1s1s afire somlewhilt
lPss in the We\st Indies thnn on the Isthmus.






REPORT OF GOVERNOR OF THE PANAMA CANAL


Including those niidled in 1939. approxinl;!tely 1,315 persons have
been repatriated since the appropri itionii became available. These in-
cl(luded( 677 employee- and 638 members of employees' families.
Approximately $51,766 of this fund has been expended at an average
expenditure (repatriation plus allowance) of $45.60 per person
repiitri cited, and an average cost of $76.46 per employee repatriated.
The Canal will continue to offer the opportunity of repat riation
and a sum for rehabilitation in their home country to former cl1lmp)Lyees
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 perininiment effect under present conditions because
of the relatively high birth rate among the tropical inhabitants.

CASH RELILF FOR DISABLED EMPLOYEES

As explained in last year's annual report, on July 8, 1937, the
President approved an act of Congress which authorized cash relief
for certain employees of the Panama Canal who were not covered
by the provisions of the Canal Zone Retirement Act. During the
latter part of the fiscal year 1938, a syst.emn was established for carrying
out the provisions of this act, but owing to the need for careful investi-
gations and the complex administrative features attending a program
of this nature, cash-relief payments, except in one case, were not
actually begun until the begiining of the fiscal year 1939. Since that
time the cash-relief program has advanced rapidly. Applications
for benefits to be derived therefrom were received at an average rate of
about 66 per month.
The table below shows the number of applications received, the
number of cases in which cash relief was granted, and the di.,po ition
of the applications where cash relief was not authorized. The table
also shows the gross and net amounts of the pay-roll, separated for
convenience into applications from employees of the Pi.niaina. Canal
and those of the Panama Railroad Co.

Panama Panama Total
Canal Railroad oal

Applications received to June 30, 1' Wy. inclusive --------------------- 653 155 808
Ap ;li: in :i|' |r. '.-r'l for payment. ...-- --------..---..--- .. .- i- 9
.pplij ants i1-.1 before cash relief was approved -------------- 16 6 22
Apipliifi-i.n- suspended for various reasons------------------------- 6 7 13
X ipli q ii i nn rejected for various reasons. --------------------- 27 6 33
Applicants in. l],hiil because of limitations of the act. .------------- 203 61 264
Applications not complete but in various stages of progress --------- 26 20 46
Total---------..----------- -.---------..----------------------- r-..3 1 SxiS

I The smaller numbers following each figure indicate the number of removals fiom the rnlb on account of
the death of cash relief recipients.


1! IIi"G-l i--6t





74 HK'ORT' OF GOVERNORR OF THE PANAMA CANAL

Tidtal 1mnd average costs

Tuotnl Di I ihs Liv ing I

lii' nII Carinal ai li nations ........... ....... .... 375 23 352
'IT' .ia l minthl 11y 1 nr11i11S as uf JULi A I. 1 y .......... .... ..... $ $ '6 2 10 S-171 .i Imn. )50
A.% rt e 1' m rnt [i ri . .so .. .... . .. .... ...... .... $17.44 $19.71 1 1a7. 29
rinal [ isilrinil i u li iu s ...... ..... ............. 6 4
'I ipal inunthly payments as of Juoe 30, 19AI .................... $KM8 50 $12. NlI 1 1. INi i
A. ermpe .AyInui 'wr case. (w ................................. $1G 15 W.i 41 ,li 24
.AI appliCintliois as if June 30, 1.19 ..... .........................I. 430 :M 41i
I uj il nii hly p') mients as uf June 30, 1 9O. .. ................' $7,40). 50 $.4.-'..00 I $,8 4. 0
A v> gr iip nyinent pIr case....... ....................... ..... $17.28 $1t '2 $17. 1

Shows not amount of pni) rll after d'ludiiing savings on account of deatlis.

Expentlitures on behalf of t lie Pjia ma Canal canshli-relief pro igrfla i are
paid from annual allot iments made for that purpose, while those of the
Pajinifa Railroad Co. constitute a coiintinuatioji of thle former system
f granjiting (lislability relief pay to the superannuanted employee, of
that company and are made from Panama Railroads funds. At the
beginning of the fiscal year 1939 disability relief payNients were being
made to 203 former employees of the Panama Railroad Co. Of this
number, 18 d(lied or were otherwise separated from thle rolls during the
fiscal year 1939, leaving a balance of 1S5 on the rolls at the end of the
fiscal year. These are not included in thlie statistics listed above, which
cover only those employees given cash relief under the plan now in
effect.
EXPERIMENT GARDENS
The Canil Zone plant introduction gardens and experimental
Mtatioii were established in June 1923. The gardens, which include
greenhouses, nurseries, and experimental plantings, embrace approxi-
mately 125 acres of land, and are devoted to the propagation mid
culiltivation of a very wide variety of useful and ornamental plants
from nall parts of the world, primarily for the putirpose of determining
their idiptability and value under local soil and climatic conditions
for general propagation on thle Isthmus. The work of the experi-
mential gnirden is under the supervision and direction of the Governor
of the PaIUin Cannal; however, niminyv of the activities :ire cnricd <>n
in close coioperatioii with thlie United States Departmentof Agriculture,
and t li Ca1iln Zonie experiment gInrdiens fuiinction mu11ch the same. :i
would a tropiciil statliii of tlie A.riciiliture Departlment. The valilue
of thliese gardens as i tropicil Ilboratory for development o(f plants
useful in industry o(if the United States lins been definitely established.
Ih copfwritionl with t lie Burealil of P111111nt Industry, UInited Suites
D)ep I uii'rl t if Agricult ire, l referenc co llec ti1 in of osi g I 1iiI V ilielies
.f the world wis est )Alikhicd at the g"irdens in April li3li. Propn-
'11i11,i Inflterial w il sent fromn the qilmintine grvienhiimse Iiiiii ailiined
iv tile Biiri1z alt tle .Arliligtion Expefrimeni FiIrm iieiir Wa'hliingtoIn,
D. ( 'Tlie coilloertimin Irpreseonis an effort to assemble exiiamples of fil
nri*-ltih fi'rrllis if -iigrciiille. I1s well ;i varieties culltivnted by natives,






REPORT OF GOVERNOR OF THE PANAMA CANAL


in the areas where sugarcane is assumed to be indigenous. The
project has been in progress for nearly 20 years by exclihange with
other institutions and by first-hand collecting of "original varieties"
(i. e., varieties not the product of modern breeding methods) and the
accessions number about 500 clones. The collection is for study of
botanical relationships of the large number of plants of the genus
Saccharum and related genera found growing under natural conditions
and under primitive conditions of cultivation. The principal purpose
of the study is to determine the full range of natural variation with
the group as a basis for developing useful new types by hybridization.
Effective March 1, 1939, the operation of the orchid gardens of
the Missouri Botanical Garden was transferred to the Panama Canal
and is now being operated as a part of the Canal Zone experiment
gardens.
One of the outstanding important introductions of the year was
that of the IC2 variety of banana which was sent to the gardens from
the Department of Agriculture, Trinidad. This variety is reported
to be practically immune to the common banana diseases, besides
possessing the qualities required of the commercial Gros Michel.
Six plants were introduced and they are all growing exceptionally
well.
Originally the experiment gardens were supported by rents from
agricultural land leases. However, due to a policy of gradually
eliminating such leases in the interest of sanitation and health, the
income from that source has materially decreased and a small appro-
priation has been made for the partial support of the gardens since
the fiscal year 1934.
CLUBHOUSES AND PLAYGROUNDS
During the construction of the Panama Canal, recreational and
welfare activities for Canal employees were conducted by the
Y. M. C. A. with the financial support of the United States Gov-
ernment. These activities when carried forward into the permanent
organize tion were placed under the bureau of clubs and playgrounds.
Eventually many diversified activities, such as kindergartens, physical
education, motion pictures, rest aura nts, soda fountains, candy and
cigar stands, etc., were assigned to the bureau. Due to the expansion
in activities, some of which were of a business or conmmercini character,
in January 1936, after a (detailed study, the activities of the bureau
were subdivided into two units, as follows:
(a) The clubhouse subdivision which operates restaurants, soda fountains,
newsstands, candy and cigar counters, moving-picture theaters, billiard and pool
rooms, bowling alleys, and swimming pools, and in which the patronage is restricted
to Government personnel and their families. This subdivision is self-supporting
and no appropriations are required for the activities carried forward.








I I. pl ?L *r..1nirm wl- W. -1 Q- i'l 'i, [ili.-6ii itli 1 % i th i iprfilprilit'(d fu1ds., which
r- 'I .- f:ir;.lti .r uit ; bI, rtC 4itior Ai l -rii ld.iim ts 11(1 Iand p rvisr SUCh
aLtdi iti s i .L. i 1duc1 1tiL n p.i r..Lii pl a1t kiti bA I ebal. l irll, thIsketrball,
iL I I.idk ll. f. .l 1. 1 1i 1l 1.ii !.t fi Ia -inII:, archery, 1ih l ti i iit- s, pai ife nts, etc.

t1I of 0i 1 S II I l I)1 VrIiN






mu-I~~~~~~~ lii jrj II; sIiuii~. ni li: sr ni>ig to^ th oa iniuimy
S|l 11 :111 r indus:try Ni is J- l i rinil led in the Jfil Zone. ii Govmern-
ii.' t idiii- ni rr ll.* liv io wll i >r131 111 ILi' rthi th irints, iinlinilf -ild etiur.
tlii*:ilr ii d wrl r iii ipiis fi'r \\hiili M wpr k- a itnn uin tifiit Sinnnd.
A moisdi SKY& lid ll!i"r f tliv-v ;m-60\ili104 is unlilpr lhf. -1il*4i\ i-i-11ii of ItII h ii l ii. r lhi b-c a i 11 0WI a it'l VtIllol fin- the ailiti.s







.f lnii al~ttI';Ji atII I viFV ol W Olt'flP st1 ic Ti th'< I lintt hIli lP 11 111'
ilil i Iii I Iiil z i i il t nder r" 1rat iun ;iiDl t f a ld\\ct i A a ieiijmnu ii 'q tf lii il ,r-vi is it 'hlut ;iciviliesJ
iii 11 is unit nI' o1 t 6 0In iii ';II .lL l i rti id r eT -'
I W r-in nl tA ** e I n a 1 I Q id C ni 1 a i111 AfIil\ V iit' l I< al t ii11i111.11o-














1 Iiii alitl= iii !inhI' ite l(wI II ji ojf~ PC'I t'nihlilf It i ''ihitie I :*in the
\k i '' r I C11111 r it I I
Al'.Iir. H li (1Ir oi'rr.illi f swimilminig pools tile clubhinsi"^ furnish
i i-rmiml i iii swinnililr- wof life saving to the Wieuin niiniunimty. A
1wW Ilillini Ln p il "i li in ilum %%;I-; IIpc) pd durinP' (IIP i>;il y '.ir.
Tl1ti He 1wr 11o 1111i iirt l liiik 's III the prices or ll O wi in while
'lil1iaii iiiii- i li titini I i 1 im is dwrin the p s ilht i ie il yi e ch :i tle ain[llit
11 % nilICs inmirrr i l' 1,v 4.0 | lrvclt, i-ll' lt tile tc~iulro iuind rU -
fli1 li- 110 Io ter iwi "10i1 by 8 j wmvid mun I 1t(i I1 -ril by 3 pln-vi'nt, *ill n, r pn iercd with the precocding fi-keil year.
S -rar~l of the buildini4 whicli are now umd to hluwe the fNOciliWis
o (101- bureau alP tire viry Al wooden sbltutres that hve aeTvNdyy
o ltived IllN II ri imi clil liPr. 111Ie of tIlese ori mllily d ill I ) e lI
trId In V Lq-1 m eil( l it *i tm% n, of the Can-mal Zone and towanl tie end
lif li ri iin-li tir n p-rhl mnid wri |)n--nt sites. It was rljq :ni/.d at fl- fill" th th thi e facililie' were
in tli ilifm of*. aN nwiftc n I -,io fi.r lii-h ;iitl l ivir I I' p :i <'ln"q iqt wi t n it ad\ imD nted Imw "(>f thle
lilt I't Oil;'lt Ir"rI' if I I e Cn lil. Svvpv d of 16 m nill wdn en liii(d-
ill'-" 11'*t' il11 In a ad dr*(Trin-3ifC4 f'Mndit!'n mi d require 1ieavy
nltiliffii,1l:,It (*\f A t n (ifiim :!i fc' lii A v, t1e tliln' is appr 1iIcl ln; whicn
ftl --r bIil d1 1''- \I 11- n Irnt r he:;i'lipi %ill 'Ind when it will be 1i114e-Z-.ry
to frr illir them %%i fitb I )"i- n liin ni ^t icturr

si Inp i\lsPNb OF 11.\Y(;ii)[ NDS
W ulln ti w U iiliv.Il itfIv (. 1% I I *Illtl 1 i[mba rked up | if"lr'-t In 1'.i 1, it W I Ilr'1VI* i@;ury In bring" illlVy tllmsisalds of em-
|int.\r- fnmi thw V'nit-d Slftie" ind from thie West Indies to tile
-hrii- In ilt nhi-1nTc (f Pirol4'r w repe tinild r.ifilities in the
C;1ni: Z11ll oi in (Ihu citirv. of P.ilnniiti and( Chion outside the Canal
05111, tile GWiAililr cll l a iIrkmid uk apo the policy of providing whole-
"11ilii .*ilin ti ll-c if ;ind i oi reattinomil facilities ill ea h or tile Canal


I.I'ilT (11' i % i\ NlNW () < lF THE PA.NA.\M.A '.ANAL\






REPORT OF GOVERNOR OF THE PANAMA CANAL


Zone villages, similar to those provided in the District of Columbia
and by many communities in the States, and likewise corresponding
with those provided by foreign corporations operating in the Tropics.
Climatic conditions on the Isthmus and the ever-present danger
of contracting malaria, dysentery, and other tropical diseases, when
recreation is sought outside of the sanitated areas adjacent to the
Zone villages, make the matter of providing adequate recreational
facilities to Government personnel and their families of considerably
greater importance than in communities in the States. In the absence
of such facilities many employees undoubtedly would seek diversion
and entertainment in unhealthy and undesirable ways and places.
The appropriation for playground activities covers the salaries of
physical directors and directresses, kindergarten teachers, and play-
ground attendants, and also provides funds for the maintenance of
playgi rounds, playsheds, ball diamonds, tennis courts, running tracks,
and similar facilities, and for the purchase of playground and physical
education equipment. Some of the recreational Aut tivities are partially
self-supporting, but they cannot be made wholly so without gr'i-tly
curtailing their scope and thus lessening the benefits now being
derived through their extensive use.
The physical instructors and other personnel employed in the
pla, iuiidl unit, in cooperation with the division of schools, have
char'e of the physical education proigr;im for all granumar, high-school,
and junior-college students in the Canal Zone schools; conduct kinder-
gartens for children of Governiinent employees; and furnish active
leadership and guidance to such or.aniziitinis as the Boy Scouts,
Girl Scouts, Sea Scouts, etc.
The reereition;al facilities provided by the playground subdivision
are used extensively, not only by the civilian employees; and their
familie-, but also by the United Staites defense forces stationed on
the Isthmus. Pricticilly all facilities are utilized to their (;ip;ni-ity
di ing! vi-ik of units of the United States Navy. The cost of these
pyl I:i lN and i euriitional facilities is more than repaid in in-TVr-ed
4ff ci(cywv and morale of the orgaiiizaofi-n atnd in the imiproved eniwral
welfare and health of the entire Canal Znue' population. There is
a iJple justification for the continuation of reasonable expeindlitures,
such as have been n:uled in the past.
Three !itc playshleds were openiicd during the year-one for gold
employees at Gatun, one for gold emnpl ioye, at C;aiiboi, and on, for
silv-r cmiployees at Gamboa. A Iewk pliyshed, under construction
at Cristobal, was nearing completion at the end of the year.
LEGISLATION
The most important le-gi-aition relating to the Panima Canal which
was enacted by the Seventy-xtLth Congress was the act authorizing
and providing for the construction of additional facilities, including a





REPORiT no GuV.NOii OF THE PANAMA CANAL


thidii -rt of I1l.<-, Iltitional WIapro111 i2ch channels, and other appurtenant
wo0rk1 for tl. pl rpoJl s f o1ie' adI(equIiately providing for the defense
of the iinl irid flr inrrva-iiig its capacity to meet the future needs
of iiterir'.:iiii -ihippiniz'. In this coniinection it will be recalled that
ticdlr :Ihiurit tsf (r oiI'!-i-- 'tuhliv. Iiave beeltn in progress during the
pi-! 2 N r (1.1- to Iii l% I il te v t* l i allsI of illncreasing the c ipalcity of
Ithe ( iiil. W 1 ile tl.- lI i- tiin providing for the con-truction of a
third -of 4 k.u I th lri/,i-o iaprflorilaltiuonS tip to a imaxiimium of
y"'27.IJIIII i(Il) iii iMli.l- l liil riitlly 1 pen ixpi'opritited Nwhen CIongress
IItIjsainii'il :nrir ill i An'u -t. It i- 2in(icilp ted, however, that aii ap-
ji riliiili w111ill In' irind Stinl after Congress reconvenes in regular
w'--1' iii inI .1li iiiiiiY 1'.i-l .
Thi bill t'l 21111lnriize the uppointment- to tlhe United Staites Naval
A:bIi.ilriny V f a iiiiii-liijiiiatn to be selected friomn among the sons of
i\ il%1n-~ ridin in tlih C(iinal Zone and sons of civilian employees of
tII I Hitel iSt:ite- residing in the Republic of Panama, which was
peiiliinz in ('on're.S at the end of the last. fiscal year, was enacted
1nd iiapprnivLl o1 June 8, 19311.
'The deiiciey appr'printion ict of Muiy 2, 1939, coIltalined an ap-
llI 'ri Ilii n f aIn adilditii'nmil sum of $155,001) for the construction of
til ijeiiumriial tl Gen. (enriri \\. (.oeitals aitliorized by Congress in
tlt' it t ipprmved NiMay 23, 193s.
A joint nre-Ilution approved March 28, 19309, provided for the par-
i-ip;LAtin of 1 tIhe unitedd Staitts in the celebration of the twenty-fifth
IIIviv\r tr-:y of the opening of the Pnannia( Canal nil lde declared Atingust
15. 1'c, til d A bill iprvidin L sjpri izl ri'cognitition of tll- services rendered by
(Ivilii l id i*c il |111 c )lo vc. tn (t1h I t lh4 m1s during the construc-
ti"n 'f tlie ('anal ;2iud who remained in the service of the Panama
('i.I. or P.n11i1a IRailro.ad ('o. w;Is passed by lioth HouInses of Congress
but :I. vnlit'd byliv the President. A somewhat. similar 1ill, applying
i 1iit 11- who .4v'Ivu'd for 3 ot ilOre years during the Cinstfrulction
pIi iiId buit who lIf. t t1ihe service liefore becomii ii eligilble to thiet benefits
Of thii ( 'aiuil Z.iinc Ri-tireiielint Act, is still pending in Congress.
Tnii pr> i-in.ii of aiiti-er ill pending at tlie iend of the year would
p1- iii!l rpi*]l~i\ s Ii rtcirM at somilewlia t( redliuced age limits and to
-r11'1 (-r14s of *cvenul ijitioiiiil ailnilities, including al decreasedt joint
11 ill\ \ i\ -hip nilriunitv paiyable to the employee during his lifetime
1i111 t-o Ii, w lid poll 1ii?- d at'1lI.
.\ Iill. .iniiar (i onr pim-st d by) thle Senaite duringii the preceding
C( iim r-~. W;i it1111iiiu d in lilfl t lit iiset anti provides for the erection
itlill tin' ('1aiiI Zinii 1 a m Iici rial aiditotriiii o o the builders of
tI h P;t.i1ii 1 C2n1Id :III-] -thenrs iwis e iti sl nigsit islied service merited
I$ *.'iiniIiin by flite C'-ir4'.--. Tie bill was passed by the Senate on






REPORT OF GOVERNOR OF THE PANAMA CANAL


March 23, 1939, but had not been reached for consideration by the
House at the end of the fiscal year.
An act to amend the Canal Zone Code so as to extend the benefits
of the Canal Zone Retirement Act to W. E. Murtagh and Joseph
Inniss, was approved on April 12, 1939.
A bill making a number of amendments to the Canal Zone Code
relating to the adjustment and payment of claims for damages to
vessels in Canal waters and amending the provisions of the code
relating to the Canal Zone Postal service, as well as making several
ameindments to the Criminal Code and Code of Criminal Procedure,
was passed by the House on May 24, 1939, but was still pending in the
Senate at the close of the fiscal year.
Other general legislation considered by the Congress during the first
session of the Seventy-sixth Congress was carefully reviewed and
studied for the purpose of determining its effect on the Canal-Railroad
organization, and appropriate recommendations were made from time
to time when the circumstances indicated the necessity for such action.

CAPITAL ALLOTMENTS, FISCAL YEAR 1940
The appropriation for 1940 carried $2,171,000 for improvements and
betterments, and for replacement of worn-out or excessively deterior-
ated facilities, as follows:


Quarters for American employees --_-------------------------
Investigation and plans for increasing capacity of the Canal in accord-
ance with act of May 1, 1936---------------------------------
Increasing capacity of Summit substation ---------------------
Adidlitiomial electrical facilities on west side of Canal--------------
Ward biiildiTig, Palo Seco---------------------------------------
Road, Tivoli crossing to Calidonia crossing ----------------------
Elimination of Agua Clara filter plant-- ------------------------
Motor car repair shop, Cristobal ------------------------------
Fort Davis cut-off, Bolivar Highway, north section----------------
Filling area between Panama Railroad tracks and Gaillard Highway,
Balboa station to roundhouse ---------------------------------
Paint and carpenter shop, Gatun locks---------------------------
Special items-------------------------------------------------


$500, 000

250, 000
60,000
85,000
28, 100
32,000
120,000
100,000
46,000

36,000
50,000
863,900


Total ------------------------------------------------ $2,171,000
Quarters for A inerica n employees.-A considerable portionii of the
existing dwellings for American employees and their families consists
of frame structures built prior to 1914 in the early days of Amiericn
occupation, many of which were transferred from construction camps
to their present locations in the permanent towniisites. 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 expenditure for repairs which are being made
from year to year necessary to keep them habitable, is largely an








*roi, li t \*iluTisui I .i 1 u i l il fftr-; : iuJ hl-reforc bvinf I p ('cd bhy a1.
'ri1iiilliii l Wu ldliij Oet iein o\11. it | iirimil of tvhr" '(.
I I# PI F ; f.il it iii f iiiik h I iiPrh 1r .1 1 ha i i fl /Oi ./if 1 t W e (C'n ir / --I
T ill-,; |il"'Ji'( 4nii' i-ilml rf in\ f- ii ll thn, illaillli; (ir in reo nsing the
Sipi Ity f tfil- P:IiHI l' I It* imi fi r utur in '( 4rer ed fie throne vilnic se ip-
pin. i i i, *!i1iii*i dI r'i.*rn .zilld ipprnxiliiiti Isti uites of the oe s( tIf
Sed iitinlil lrls :ill *nillu Iu otiijer strui r'e I irt'l f liii eitits i;> is1ire r (id
friif Ii I1I iir 1 i-ir. Wuiiie 11 >t (* iiOli i'd w it of f 01('o Ipss 811provId I V 1,
1'*'iii-i. .f'.- i'li- n :i' i13 'ri i ui the 'misl ructi o ftn n of liif n l fcilitips,
itrnilll- fI j"' iiil A sr et if Wlo k". IEIs ciitc d 1by the Seven 1tv-sixthl
SI' ''Iirf- 1. )1t ino illiik i;i(d a'ti lly hie IN' .i'ppropritedi w hen ConrIu '.s
tiiiijni il I I urly In A sllu'i' t 9 . is .\pected, iow vep r, tilit i1l
2pI' 'ni['iintit h ii \\ l he ii1d. w' then ( ionL-I ss reconvenesll In reT il ar
-in~-'ib iill 1 .Iii T 1i940.
1iie'ii 10 1 f fl i pl t 1t nf .i11 in riIt slUlf)ta n Ti1 IIFiLi' covers tile
ni-hrrlil- l iiii l t i-li illiit l f o ( lil tioi- riil Ii )ipfinpn l 5rt t1ie Siobsti elon
1(f*n1441 Ot fiii ii ujlt. Tr*:i Iiii ilf iint, Ir pesT'u iled IV recentit ciIon-
(F ni liil i. :iii1 I nl I
if r- In.-ii) lr ( ruit rcliabi>iity\.
.\'1i 1'ii. s i, fai ar"il iur'il 1'', >' n i il stiu vele of f nail.- Tis project
*'l l-- of 's rii-t n-( f l .' a~fl~ piit)OWIr Ili tiralotsh e \ M'. b ill of the P iliisil
tit -'ii>16- p ii f a III W rrli6y p inup l irgLe wfiirli Nill be p;n'rl ill
-4n' Ir 1fw\\r* 2 i r1i Hi110 c 111 >ct ? s i it Pil il l 1940.
\\i-i h Ii*,I.il/./lie' iit hiji;.- This bIiiilins i1 to hini e inimi ites of
till ir cill' ; Pn lo P i1d 1ofl. lThonr trh ine of4 the be ildiLng is
|iTll of I 'r IVe p1 iT) ifi.ifcd il 11l' ':l7 i 1'[)lir*iio the mu ltI-(lillt

Tti i i -! i to l 'if rliii ii t /.- T 11i"* prn c mt covers
thoe 1onstr i i r a iift a ilW s f iLilvd to taliti 1Iv;;'y trallir oil, (4
. d**~lil I i:i1 -ftle C 11:.11 Z l eip n1ew -Zfrf ct w ill
JI *lirv.-l iu'r to ( t1li V .111d rvri-it111 V 1 1 0CIo iii
11 ; '*t "i t If ta sT:N !iiiii:i' 1i :Iv i *_hi ill" d ifrrrt (*i' i1111i llniiii il li
t .. t 1 11- ( 'il ) ?_ I in 1ill r- 1(- i l illl ;i l stru ?.-
/ 1 r r A ,' t fi Pr 4f .-\. 1cI- 11i t iv wnf pr
p fr i!. (L 't In L i t ''ot :11vis. ;11]( ;- c IIl i;lll i-
It V IIt ly a n ill f 'iiil-.i ,(d ;f all Ipvo i i)1 ill" s timtin l, (I ra tl ion
*.i ;i il a l-'i r ift II )il i, prIii( i t i vf (t I-;; le iI )uil doil-
I Ot li r-crpfill f 1 1 1n i(wiulpO (il11k. Iilll d fulr-
III .l to1111' wale*Ito G IIlliy 1 r f l in H-. -l ii I d 111ivlies of \viter pipe
1.rf~r.n r~-ti 1111inn) -Antiliii :imd Wiratioin Pli-i: t ill ount Hope
to (i *II :11 Id pillliip w-illr rni ll MN i11t, H oipel to 01t1ni. Two
7"Ai ,11, _ill- i i .flriwzcr %%li d Ill H 1 i l 41r cnilwiniiCted, a(nd now piunips
illrIlb'd ill 111 'NI'mlll Miltl p|lilli]ii Stilition to 0upplellient pullips
;i1irItN y il't lf'1 d in ll miil *h(itiim. I'1 er t lle proposed nie%- arrnnge-


IK-rotT i ll 0,AVl.l(NtO[ M- THEl PANI.\ .\ CANAL






REPORT OF GOVERNOR OF THE PANAMA CANAL


ment a savings of approximately $20,000 a year is anticipated and,
in addition, the thickly populated sections served by the Mount Hope
filtration plant and pumping station will be given considerable pro-
tection against, interruption in water service.
Motor car rn pair shop, Cristobal.-This repair shop is to be con-
structed to replace the existing building which was constructed in
1907 and which has deteriorn tedil beyond economical repair.
Fort Davis cut-off, Bolivar Highway, north section.-The proposed
cut-off road is a relocation of a portion of the present Bolivar Highway
at Fort Davis for the purpose of avoiding routing of Gatun-Cristobal
traffic through the Army post of Fort Davis.
Filling area between Panama tiH indl tracks< ain'd Gallard Highway,
Balboa station to rneidihi-,d ue.-This fill is to provide an athletic field
to take place of the present athletic field, and to replace facilities
which ihad to be abandoned when the junior college building was
constructed in 1935.
Paint and carp ut tr shop, Gatun locks.-The proposed building will
house both the carpenter shops and paint shop which are now in
separate buildings. The existing carpenter shop is in an undesirable
location on account of the necessity of double-handling much of the
material and refuse, and also is a fire hazard in the operating tunnel.
The present paint shop is a temporary frame building in poor con-
dition.
GENERAL PROGRAM
During each of the past several years the Canal Administration
has given considerable study to all phases of Canal activities with a
view to developing and carrying forward a well considered building
and construction program, with advance planning extending some 10
years in the future. These studies have been carried out in order
that the more pressing neileds of the Canal project in the way of replace-
ments, betterments, and enlarged facilities will be provided for under
a carefully considered plan.
Previous studies made in this coninettion were reviewed during the
past year, and a detailed 10-year advance construction program has
been compiled covering improvements and betterments and also
replacements of worn-out, obsolete, or e.ccssively deterioranited facil-
ities, for which funded reserves are insufficient. This program, which
covers all anticipated requirements of this nature except for increasing
the capacity of the Canal, requires an annual appropriation of about
$2,000,000.
The value of adopting and adhering to a definitely planed program
of replacements and betterments lies in the fact that it not only facil-
itates the submission of comprehensive hidati regarding future needs
to the Bureau of the Budget, but also appreciable savings in the
purchase of materials, recruiting and employment, of personnel fre-







(piri 1\ i le fl i I'mii r iiir in-lt*i4 Ilin il- %it l til- 11 11 1ika l lies Irf till, (' 10 ril or anizution.
\1*11 I DN.. A I.l MLS
A.- 11id1 a;lirr, 1-i > lt' lN V IIV ll pjHV -u led 'if IllcedfId aIdditionlS illd
rTopi l icvilIl- vrI* 11 (ienod if yeunis aI(d ai)pin' iiiuiat( ulf1init.e1 S lihave
ee iilli. if (i,. rco ts. (1 it;iiiing funds or this work is 0110 of tie
111i0.-t illuIpil tiit pIr itIIIIII if HIV t it aIl1iitii ('1na1 IU ringy tIhe con-
structii'n m n 1 IV (f iml ief\pelsiv\l, fi-niptitry, wo men siriictures
M ftu I IIilt ti liI iii-1 li *I iips iiId I1 t it r 1 il tN n f t lie C(I. S utr fItion
1pli. t il,* riiipl' o ee'.. illd Iiiiniiy of tile puilic-utility arid goivern-
inlilIl fuil-limtiln Hild iii71v of thlese cmntiiuied to be used in the
initrt'rst oif vtniiimy ftr hliousing the operating plhnt aind personnel
aiftfer ciinstriition waIs mciiipleted. lBecnuse of the destructive effects
of the ileiiiiilts and If tlie ine-cts in this locality, tlie economical life
of such strict u ries is reilativrly slihort. The plain is to replace these
with 4ruct ure of Iiinger lifrc, and at thlie samine time increase their
capacity v wli're justified, as funds are obtained. The undertaking is
so extensive that minyN of these old structures are being maintained
at vx'cisive Vost, lifln this unecronoinmical procedure will continue and
hecwnu progri'ssively worse unless funds can he made available for
replaceinintits oif iiniy oIf these structures during the next few years.
Tlie niutt ectiniiiical mtithod of vfr(icting replacements would l)e to
aillociatI a dt'finite sumi to he used for this purpose eachi year, as this
would pernit eo rdiniiting the replaicenient program with the regular
a (tivitii, of tIlt C inail orzainizatiifln.
ENGINEERING AND A HCHITECTURA L DE6IC.N
In anticipation of thle construction pjromgram for additional facilities
required in connection within national defense the design force was
incerised uppriximinaitely 2.5 percent during the year.
Disigni, lists of materials, specifications, and estimates were conm-
pleted on 2.l important public, residential, andil industrinI projects, and
iorrespotindlin work wns started or continued on 43 similar items. In
add ition to work on items of defense chluiracter, activities included
desi4n oIfi vri ,Il minll sI ri ict uiIris, alt era ti( ins to existing ones, and
map work sJLSined'( to the office engineer's section. General office
en(ineering services were performed for thle (Ca'nal and Railroad, as
well ai that normally requiredil in connection with locks overhaul.
STAFF AGENCY- PLANS SECTION
The bureau of statistics whichli functioned as a unit. of the executive
department foir many years was consolidated with thie plans section
during (lie paist 'year. Tils consolidation centralized in one unit two
groups of employtIees whliose duties were closely related, and in some
respects slightly overlapped.


0.14'(il. 41F-' inVI.KHNO M THE PANAMA AN.L






REPORT OF GOVERNOR OF THE PANAMA CANAL


The work now handled by the enlarged plans section includes the
following: Studies of the financial, physical, and operating features of
the various Canal and Railroad divisions in collaboration with respon-
sible department heads; compilation of shipping, commodity, and
related statistics; preparation of monthly and annual reports to the
Secretary of War, and miscellaneous work of a simiiilar character.
PROVIDING FOR 1THE DEFENSE OF THE CANAL AND INCREASING
ITS CAPACITY FOR THE FUTURE NEEDS OF INTEROCEANIC
SHIPPING
Under the terms of Public Resolution No. 85, Seventy-fourth
Congress (enacted and approved May 1, 1936), the Governor of the
Panama Canal was authorized and directed to investigate the means
of increasing the capacity of the Panama Canal, to prepare designs, to
submit estimates of probable cost of such facilities, and from time to
time to submit reports of progress.
By act of Congress (Public, No. 391, 76th Cong.) approved August
11, 1939, legislation was enacted authorizing and providing for the
construction of additional facilities in the Canal Zone for the purposes
of more adequately providing for the defense of the Panama Canal
and for increasing its capacity for the future needs of interoceanic
shipping, substantially in accordance with the plans set forth and
recommended in the report of the Governor of the Panama Canal,
dated February 24, 1939, and published as House Document No. 210,
and including such appurtenant structures, works, facilities, and en-
largements or improvements of existing channels, structures, works,
and facilities as may be deemed necessary at a total cost not to exceed
$277,000,000.
The plans for increasing the capacity of the Canal provide for the
construction of an additional system of locks, located some distance
from the existing locks at Gatun, Pedro Miguel, and Miraflores and
for the construction of the necessary by-pass channels connecting the
new locks with the present Canal channel.
The special engineering division of the Panama Canal organization
was established to carry forward the work required under Public
Resolution No. 85. The work performed during the past year, how-
ever, reflects the change made in the proposed time of starting con-
struction operations. A construction program was worked up in
detail, including designation of spoil dump areas; availability and
method for supplying materials to construction sites; estimates of
required work force, by years; availability of camp sites necessary for
the construction forces; relocation of the main line of the railroad
which now crosses the site of the proposed locks at Gatun; and final
general location for the sites of the proposed locks and by-pass chan-
nels, as well as final determination of the dimensions of the lock
structures. Cost estimates of all these features were prepared.





IUl-.1 il'tT Oil' (i)VI 11N')R OF Til -' PAN'.AMTA CANAL


1I )ijr, Ir iI* ytitr \urk i 1-' 1T c i. i111ri Il in le prripIIIlltioflOn (of topo-
1rntihll' Ii, ri5 i'iii'l f-r th"e <'fiisriricti''ti wor1 In connection
wHithi "I' li 'n'nl, 5 I \ 11 -t Ii ii-. Cfre-dri llim T pri lini s weire Illid out.
1iri1 prtliiiiiiarv 1it-*- iniri> wori 1inidt- lt iII -ll-; rri Gi itiun. Pedro
M ile'*'. :iii li llt r- A *rropli siev .-imi v.y11u'' IL s iIoi nipI
vX I'ilf l 1in *l I, lilt ( I' p f E i 1111-I*0; %% I" Ill'idl If iluv ph if posed
rc. l l I h- i % l t\q. l Ic' 11,11:1 F V'll:, ilitl N lI rc I 17, 19 9.
I li 'i- I 'lf nj Iii:ii L \- %%e rll u>y !:t\ittirizilId b o tiv' 1rerrilif ill 'if IP
I I II --* ; v \ itrr-, iII It I .v ii it :'PO I !mpli, -.s .IN p '%rc~ 1 > !ii1 I liII diled1
t4 tl IP hi, '4 wvhoi 31 rI ur i '\ c iii[lnl ye.k frriiiI fd frn)i I hI p
I 'litl'l s f:i1l- i4 l tWill i I* i* i:iilnl i*I \fr< It fr- uiusfi'rrr. frili 0iieIr divixi' -il
lif H li < ll ll L;;l ll it li ,
11"1IIlv C w 'zL't-- ndi iriirif ilm \ i% itll liiikiilLy ;illy filidi avn i\l ilel c for
tih -r irirrin-t'il fmcilitiil-, it is ex.\pertI lint an nipaI ruIpriintiori Nill le
I IdI Ii''i .l f 1iftilI h CO lIL'IC-- ]II'1"1iivt'r '1' Ill rf'.l-ili' -'I.lit I .Jiln i iiry
II .i Ir.
VISIT OF PRESIDENT ROOSEVELT
FI**Ir dr Ili 1'rlill iii D i-imI .i-i' t v11t Ilizidr hi, third vi-it to tile0
C.iiii: l Zlliv tii l Aw ii' l 4 uiid 4 u 5 WM il' ('iCief E.'xt uri'tve. le iirrivld
T il rdl y t1iftermiimi, Aiiu.ri -( 4, riii the uriim.--r I1. S. S. IIJuSf.'>l with
le di hl-d l, V. I. .c H /cAm"/l / i- ~conVl)V. Duii-iLu, lilti afle lioon
liv entertiirril ( urr1iur ;iri d M Ir. liriuri< S. ]5iihu l'c.-idii1t iild
M -r ,lnin 1). Ar. .rilit'lii if thie lirpI i < 1 Of P1t21iIiini :l 00 rli- 4gr ^nc-'
lit (*it i I llnf lt ll't'i lt. All r he I c- ivild a 'lT r*'i'llt;i IV iV (r4f)lp
rf I *1ir r ld-[[lr. c ( ilil l of\* u* lii 111.1 lI'i *'ii i 'it It < 1 i vrul u iiiid lu'(


fII I ii.Ii I I t Ij'aP i liI-.It I ri U P- i:d t Iii i- at 2.t* I m ;it l! I lli .;
A n* t Il III 0-1, It .\ h i i ., 11I ill t -p o*-thall
IIIo tile \i0 (1 Il .f 1111 ill ( IP .-dtI' ll lk Fort
c N *1k. 1 14 ili C IIlli:g a 11111 1114-11l it fillr li/ 1111
fil till, IV I o l jit -,1 ini t l~lil ll li .2..)11 p 171 ut B :1 10:11.
iiii1 pul iih I a\ i t ( ii-i 'il an lu'iU 1i f ins o I'| ihr i \%i-t II .1ir uf tile
1iil uii' *-ir jih* 't1iiid ili-itl l fn'r' mlld -dIicr 1miiil, >if iitv'li-l ,i the
All~ iii r I -IFY 10 T In 1 Y III-(dii ;iInd lit. pif' y stlloir c ll Ifi[.ii 1nti si
. ii i r-l f i II 5 :> i t p 111 l1 1t 1u s 5 V i l 1 'r( TitI i, 1 1 rll o n ov1
rilll'M ,41CL rr ( it 'l ck. IiI Ai1di 'itl\ ( -,, 'Illth H w c riiv 'In(]i oll F yl .
ti l IIketIfe I iql Hillillte 'liltile \ ;lt erP fill' P 41 ,011-.110 du? 1it.















SECTION IV

GOVERNMENT

The civil government of the Canial Zone is conducted( as prescribed
in the PaInniiiin. Canal Act of August 24, 1912, and subsequent acts
and Executive orders made applicable to the Canal Zone. When-
ever it has been practicable to zigni goveriiinieital functions to de-
part iniiuts in the organization est abli-hed for the operation and
maintelnicle of the Canal, this has been done. Complete cooperation
and greater econoand nd effiCin4\y ir1 derived from such coordina-
tion of functions.
Data on the ex.peni-e and revenues of various feat ires of the Canal
operation and government are shown in the financial and statistical
sta te lenit in section V of this report.

AREA OF THE CANAL ZONE

The total area of the Canal Zone, with the areas segregated for
various purposes, is shown herewith, as of June 30, 1939:
Square
miles
Total area of the Canal Zone---------------------------- 552.80
Land area of the Canal Zone -- ------ 361.86
Water area of the Canal Zone (inclusive of Maadilken Lake to +260 foot
contour) ----- ----------------------- ------------190.94
Land areas-military and naval reservations (inclusive of revocable-
license area):
Military reservations --------------------------------------- 51.80
Naval reservations --------------------------------- 7. 52

59. 32


Land areas, Canal Zone townsites and
Army and Navy posts) -
Barro Colorado Island ---------------
Forest preserve --------------------
Swamps- -------------
Cattle pastures ----------------------
Commercial farms (leases) ---------
Usable land -------------- -- -


areas in active use (exclusive of
--- ---------------- 12.29
-------------------------- 5.71
- ------------- ------------- 5.47
--------------- ---------- 16.50
--- ----------------------- 63.00
--- ------------------- -- .57
--------------------------- 199.00


Total land area as above ----------------------------
I Not inclusive of Paitilla Point or Fort I >eLesseps Reservations or other noncontiguous areas.
85


361. 86








POPULATION

A 1 nti-r i-l in-1 1 1-c< 4 :Lll ;-- f ti iit[ liz uinl| I *I I *- tf lit. .\ ri y I i i( i i il, -I i wt f ftniii i i-s 'r A rni y
.*LIII N\ ilV ]W Ir i l* ..n iHi II'. y <'(>jii iiii--iiiii il, 11 Ii i I Niit
r'll -' |' l *I'l illlr 1, 0 ;i- 111.1I l I pni) fiil lwhii d urinf ll r Ili iil ih
tf .Tir I 1*.'..' . -niiiiII.iiy 1 pf'.-rnlld i( fi lluw?.:

iu. nri lTiTs All r.t herst
--- ------ ---- loldi
'.|i n \H ..i *ii I 'llirk n M olln W\ vn..n C hi ri 11

7il , ,s 2 il 2. 1r.' .4- .'. VI.S 4 7 1It I M. 4'1I
.. ,7l 2 2. .Im 2. 2 1. 4 3, 34)1 ll1.41h
I *r .. .r. It 0 1I *I '2 i1 1 *1rl
1 ... ; .... .. ..... ..I .' 11 '. .0 ', i.l>10 > fi

*6*
M :in \ iiiiN111) 1% o f thie Piuiiimi (> ili:' M inli the P nllatnii! IIl .2roail
(''i. ol, 1 1i*4. :11111i iidt, live in Uniteld `iites Gove<-rnnim iit. quarters
illN \w ( 'i-rt'il indl C(lii IM-uchi, wlihicli arie in the Repuilic of
il111:iI1:1 Cnnll'-jle1tly, they are not inchlled ill the above ab1ii-
l I Ii' il.
I1*n f,*riz illz 1tniit I; il n ic:f l a lI -ret(i'0 of R.1 as climpared with
tlin 29J'.i.. li"ii)illl ti juiirpitedil in Jiune 1P93. Corresponding figures
for i *lirlier y ir* ;r<- 11'1 7, 2,,71 7; 1 :319 21'9,,10 ; 193. 29,6t3 ; 1934,
2.i.'i 1 ; 1 i.2:, 31 **'i; n Dl .i12, 311*9,,I I Of the 2s.978 ivil popula-
tioni liile il the ('anial Ziife in June 13I.1, a total of 7,714 %%It em-
I l'e( l y I 4 1 I iii iiI I i I Iii Ii 1 PIii:iiii Railr4lil CO' .; of thesI e,
2.7%% wer7 A iei'ullnii :111d 4.12)7 W%'rt Pa rifnuiniitiris miid other natives
olf Oil' tiriipic- Ai'ir'ix.1IImlt(i*v 700 Aiiirileii afind ilppiorNiitiitCely
5,1 .( fil t I I [l ry pI, -Ye .<4 l % c if -it l tIh Canl l zol1 .

PUBLIC HEALTH

(ir1#In l 1 tiw: 1 ll -ml-li' il i tmi t1w C illill ZL -ii1 :.114] in Ihv two ter-
1iiirii1l 1i 11' of ( it :! i T I"IIII i n I C 1 i iii l ic il OI 0 1 1 ofPilii)l ir l Co1-
tIriv 11 -Il if I I h'l 'it the Y cair. lIre were no epidleIllcs
( b if or1 11w v 1 ;1 tll I. 1 Zlone 1l.
'illit" "fi il llrinioi lni i-r lly in li :1111l Zone ianl the c te
(i I airiFLi:II i i tiid ( ii( 1711 ri liii l', ilrenil ii ir lffmrt. By rc.1011sO tOf daily
Vidlci II inTI wid rJ !i~[) -;i1 -if .Il s1 WtinJlid it)tv1. 11 v constant
It *i ll1' ii n f1l' itii,] I'1 -1I- i- niril U jl ll iiitaitt*d iI'i \. W iit few alippelr are
leivi'l I 11i \r* 1h ir oil i2 in (1 i .il iliA I ilu i u1ii iiii td gardeiolls of
'i01 1111,11izll ii i ill lh [iui1dilii of Ilfiiillia W N iih'i arc bJeyond the con-
tr i f lin i r Illl I ili'p1it1i ifc. -iftilielc rr II1 i ll e 11 itis Use only com -
jiulld 1i.11 1,I1ji-r 1- firtilii/r, iiim l (lid ii \\iut lI di-posed of promptly
1lypc'n it- eiTi)?pt ill iintl stui'd ill )ile:.. Disposal of garbage by the


; *. ; 1 .W' 60 i 1: Ti11 -I l. I'.A .\ %M .ANAL






REPORT OF GOVERNOR OF THE PANAMA CANAL 87

fill-and-cover method at the northern end of the Canal, and by burn-
ing in an open-grnite incinerator at the southern end, has proven both
efficient and relai tively economical.

VITAL STATISTICS

The morbidity and mortality rates from diseases and injuries, and
other vital stati- ifis relating to the population of the Canal Zone and
the cities of Panama and Colon, are set forth in detail in the cileiudir
year report of the health department, which is published annually in
booklet form. For this reason, most of the tables are omitted from
this report, and the data pertaining to vital statistics are limited to a
brief resume of death rates, birth rates, and infant mortality rates.
G(n al death rate.-For the Canal Zone in the calendar year 1938
the dei th rate from all causes was slightly lower than for the preceding
year, but has shown little change since 1934, when it dropped below
7 per 1,000 for the first time. The death rate is artificially low because
the older employees retire and leave the Isthmus and because the
population includes a large number of young soldiers. For Panama
City the rate has altered very little, averaging 13.17 for the past 5
years. Colon has consistently run a slightly higher death rate
averaging 14.58 for the same period. Below are shown death rates
by yearly periods for the past 5 years:

Death rates per 1,000 of population-all causes

Calendar year 1938 1937 1936 1935 1934

CanalZone ---------- ------------------------------ 5.79 6.24 5.62 5.89 6.43
Panama City ---------------------------.------- 12.36 13.72 14.44 12.61 12.70
Colon---------------------.... -------------------- 16.03 14.53 14.60 12.90 14.83

Birth rate.-In the Canal Zone the birth rate per thousand popula-
tion is low, as the white population includes a large number of enlisted
men in the Army, and the colored population includes a high propor-
tion of employees in the older age group, as only colored employees
with more than the average length of service are able to secure assign-
ment to quarters in the Canal Zone. The following table shows the
birth rates in the Canal Zone and in the terminal cities of Panama and
Colon for the past 5 calendar years:

Live birth rate per 1,000 population

Calendar year 1938 1937 1936 1935 1934
Canal Znnrie:
White---.---- .... ------------------------------ 7.96 7.18 6.25 7.52 7.79
Colored--------------------------------..................................-----...... 14.48 15.88 16.03 15.10 13.41
Combined. ----- ---------------------------.............. .10.94 11.20 10.91 11.35 10.80
Panama City-. ----.... ----------------------------- 34.64 33.73 35.46 30.69 30.41
Colon-----------------.......................-----------------------... 30.46 31.85 31.50 29.63 29.03







S.S Ri .l'Ji]I Il F(, IN It.Nl 1, F 'ill-: P'ANAMA (CANAL


/ iithf relsi i'; t i' q rfb iirr n jiifil r I pt r tiaf ilg .-Tle foUlr % inlr t ile
fi le IIifr niil iiinr1 illI 1y laites for ti 1piist 1iv e ypirs:

b*at"s .- d./ ud r 1 '*,**r I f ';j. nr 1.'"" live bi s.


"141 Y.W 1B37 p In- W14

. .
J 193,
... .. 12 3 32

P d.. ....... ... . .. ...








.Vir tnh iiol roi, w~l r-h' p r 11w"" I'i liii.c lnd ar irb .i l'f I"
I 1.1 .









'.*~. ~ s a~ ~z1ni p r I,' 'i, r' Ni W1I'.rf r)4 cbu u i .
*IP 7! 14 1.41 .
I Il II ]! *. .r I I Ii n .l i l' 1 I I '..!. .11
r. of a 1th
*. : *., I ** ;' ab.,n >..r '* *;'I .,., r.r 1-:;*. ; T


.. rT II II 1 1.41 I
r ,. 12 1.1. : :1
1 r . r I i. .t r J.'.I I I l I I '' '.1 I '

. . . ,r ... >r ... I.. ... .' 1 *.. ." 2 7 1
II AI. 1I. kI1I
. *, *, . .e. -4 "
I1i .. 1. 1 7-. i



MA1- ULlIA.

T !I< I l I rvitr T : II I I n' ll d(51 of (lie P.I II) II}I t l ii" 11l 2ll11 tIhe
l'!i'I.til i l !iil ll in l Nls 10.4 per tlip isnild, \ iv , io l l li lf l I i y111n

pre'. iii,- %':ir orf tli. ciir:1's history. While ithe vyl1c- of ri-' and fall
in 16 milnllil niI At Ilint ;Ipp('iir to Wohim- t(w'i o01pr w10lihin .10"I
:iidi p-r'lii iiSl' -m-illl. Aif PilS, it ihii" %eeil thaIlt te1t0re ilar fifirtir.
iw lir thlin fhII- in-itli i'il h 1 nIIII. l, e f ip i iiim iiiI l extent nf m\liil,
\ II lh t i I;now', tl jt i11.1.11-. ly iiflilerini thp rtilie from l1 ;ir to v1 lr,
1. I li'r I'HTIria-Ii l, \'O Iliii .,l yvv 1.
l Im-f 6 i :11. 1 but i-%i '1I IIp< 'Yi,1- ll2\%11 di1d of i 1i in1 r (In i'ltl11






P W I *i .r r I. .. i I. n l r ti r It cl

.** I IM
-., r i r .
i 11 r. r'
I i 1 1: I ;
] III




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