• TABLE OF CONTENTS
HIDE
 Front Cover
 Title Page
 Table of Contents
 Letter of transmittal
 Introduction
 Section I: Canal operation and...
 Section II: Business operation...
 Section III: Administration
 Section IV: Government
 Section V: Financial and statistical...
 Index
 Supplement
 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/UF00097365/00027
 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: 1942
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: VID00027
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 02454300
lccn - 15026761
oclc - 2454300
 Related Items
Preceded by: Annual report of the Isthmian Canal Commission for the year ending ...
Succeeded by: Annual reports of the Panama Canal Company and the Canal Zone Government for the fiscal year ended ...

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Table of Contents
    Front Cover
        Front Cover 1
        Front Cover 2
    Title Page
        Page i
        Page ii
    Table of Contents
        Page iii
        Page iv
        Page v
        Page vi
    Letter of transmittal
        Page 1
    Introduction
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
    Section I: Canal operation and trade via the Panama Canal
        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
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        Page 52
        Page 53
        Page 54
        Page 55
        Page 56
        Page 57
        Page 58
    Section II: Business operations
        Page 59
        Page 60
        Page 61
        Page 62
        Page 63
        Page 64
        Page 65
        Page 66
        Page 67
        Page 68
        Page 69
        Page 70
        Page 71
        Page 72
    Section III: Administration
        Page 73
        Page 74
        Page 75
        Page 76
        Page 77
        Page 78
        Page 79
        Page 80
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        Page 83
        Page 84
        Page 85
        Page 86
        Page 87
        Page 88
        Page 89
        Page 90
        Page 91
        Page 92
    Section IV: Government
        Page 93
        Page 94
        Page 95
        Page 96
        Page 97
        Page 98
        Page 99
        Page 100
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        Page 112
        Page 113
        Page 114
        Page 115
        Page 116
        Page 117
        Page 118
    Section V: Financial and statistical statements
        Page 119
        Page 120
        Page 121
        Page 122
        Page 123
        Page 124
        Page 125
        Page 126
        Page 127
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        Page 130
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        Page 152
        Page 153
        Page 154
    Index
        Page 155
        Page 156
        Page 157
        Page 158
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        Page 161
        Page 162
        Page 163
        Page 164
        Page 165
        Page 166
        Page 167
        Page 168
    Supplement
        Page 169
        Page 170
        Page 171
        Page 172
        Page 173
        Page 174
        Page 175
        Page 176
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    Back Cover
        Page 191
        Page 192
Full Text














UNIVERSITY
OF FLORIDA
LIBRARY









ANNUAL REPORT


OF THE

GOVERNOR OF

THE PANAMA CANAL
FOR THE

FISCAL YEAR
ENDED JUNE 30

1942


Including
SHIPPING STATISTICS OMITTED
FROM 1941 REPORT













UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1946

For sale by the Superintendent of Documents, U. S. Government Printing Office, Washington 25, D. C.
Price 30 cents









,K- /-































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/annualreportofgol942cana







TABLE OF CONTENTS


Introduction: Page
Operation and maintenance of the Canal ------------------------ 2
Operation of auxiliary enterprises-business operations------------ 3
Government-administration ----------------------------------- 3
Services rendered by the Canal to shipping----------------------- 3
Net revenues ------------------------------------------------- 4
Replacements------------------------------------------------- 5
SECTION I-CANAL OPERATION AND TRADE VIA THE PANAMA CANAL
Statistics on Canal traffic------------------------------------------- 7
Canal traffic by fiscal years 1915 to 1942------------------------ 12
Traffic by months-fiscal years 1942 and 1941--------------------- 12
Nationality of vessels transiting Canal --------------------------- 13
Vessels paying tolls on displacement tonnage --------------------- 13
Small commercial vessels transiting Canal --------------- -- 14
Vessels entitled to free transit----------------------------------- 14
Cargo shipments segregated by principal trade routes ------------ 15
Origin and destination of cargo---------------------------------- 16
Principal commodities --------------------------------- 20
Classification of vessels between laden and ballast traffic---------- 22
Laden and ballast traffic by nationality ---------------------- 24
Average tonnage, tolls, and tons of cargo per cargo-carrying vessel--- 24
Steam, motor, and other vessels --------------------------------- 24
Frequency of transits of vessels through the Panama Canal ------- 25
Gross tonnage of vessels-- -------------- --------------27
Transit of large vessels-S. S. Aquitania ------------------- 28
Summary of passenger movement at Canal during 1942 ------------ 29
Canal operation and maintenance-------------------------------- 30
Hours of operation_----------------------------------------- 30
Operating schedule of locks ---------------- ------- -- 30
Lockages and lock maintenance ------------------------ --- 30
Power for Canal operations--- --- 32
Water supply and general weather conditions --------------------33
Watersupply------------------------ --- -------- 33
Airtemperature-------------------------- ------------- 35
Winds and humidity -------------------------------------- 35
Tides---------------------------------------------------- 36
Seismology-------------------------------------------------- 36
Marine activities ---------------------------------------------- 36
Harbor activities------------------------------------------ 37
Aidstonavigation ----------------------------------------- 37
Accidents to shipping-------------------------------------- 38
Salvageandtowing---------------------------------------- 38
Maintenance of channel-other dredging activities ---------------- 39
Ordinary channel maintenance ------------------------------ 40
Auxiliary dredging-special maintenance projects ------------- 41
Auxiliary dredging-other projects-- ---------------------- 41
Third locks dredging--------------------------------------- 41
Slides---------------------------------------------------- 43
Subsidiary dredging division activities ----------------------- 43
Hyacinth control and other activities ---------------------- 44
Equipment ----------------------------------------------- 45
Ferry service--------------------------------------....------------ 46
'n

1 -3 n ;.-






IV CONTENTS

Page
Third locks project 47
Authorization ------------------- --_ 47
Appropriations ---------------------------------47
Organization --- ------ ------ --48
Design-plans-specifications ------------------------- __ 48
Construction ----4--____ 51
Modification----------------------------------------- -------- 56

SECTION II-BUSINEss OPERATIONS

Panama Canal business operations ---------------------------------- 59
Mechanical and marine work------------------------------------ 60
Gross revenue-class and source----------------------------- 60
Drydocks------------------------------------------------- ___________ 60
Electrical installation and repair work---- -------------------- 61
Purchases and inspections in the United States- ---------- ---- 61
Storehouses and ships' chandlery -------------- ---- 62
Obsolete and unserviceable property and equipment---------------- 62
Fuel oil, Diesel oil, gasoline, and kerosene-------- ----------- 62
Building construction and maintenance----------------------- 63
Quarters for employees ------------------------------ 64
Motor transportation ------------- -- .... 65
Panama Canal press ----------------66
Revenues derived from the rental of lands in the Canal Zone-------- 66
Business operations under the Panama Railroad Co------------ -------. 66
Trans-Isthmian railroad----------------------- ------- 67
Receiving and forwarding agency -------- --- ----- ----- 68
Coaling plants -------------------------------------- 68
Telephones and telegraphs- -------------------------- 68
Real estate operations-------- --------------- 69
Commissary Division ---------- ----------------- 69
Sales ------------ --- ---------- --------- 69
Purchases-------- ----------------- 70
Hotels --------------------------------------------- 70
Mindi Dairy---------------------------------- 70
Panama Line--------------------------------- ---- 71

SECTION III-ADMINISTRATION
Departments------------------------------------------------------ 73
Operation and Maintenance----------------------- ----- 73
Supply ------------------------------------------------- 73
Accounting -------------------------------- --------- 73
Executive ------------------------------ ------- 73
Health ------------------------------ 74
Panama Railroad Co------------------------------------------- 74
Changes in administrative personnel ------------------------------ 74
Employees- ------------------------------------------------------ 75
Gold employees ----------------------------------------------- 76
Recruiting and turn-over of force-gold employees ------------ 77
Wage adjustments----------------------------------------- 78
Silver employees------------------------------------------ ----- 78
Silver wages----------------------------------.-------. 79
Silver eligibility and employment program -------------------- 79
Repatriation---------------------------------------------- 80
Cash relief for disabled employees--------------------------- 80







CONTENTS


Experiment Gardens -------------------------------
Clubhouses --------------------------------------
Legislation-__---------------------------------------
Capital allotments, fiscal year 1943 ------------------
Requisitioning vessels of the Panama Line-------------

SECTION IV-GOVERNMENT

Area of the Canal Zone --------------------------
Population ---------------------------------------
Public health ------ --------------------------
Vital statistics ----------------------
Malaria ---------------------------------------
Hospitals and dispensaries- .-------------------
Quarantine and immigration -----------------
Municipal engineering- -- ---- -
Testing laboratory ----------------------------
Water system --------------- - --- --
Expansion of water facilities --------------
Sewer system ----- -- --------
Roads, streets, and sidewalks -----
Gaillard Highway relocation --------------------
Townsite development -
Other heavy construction activities -----------
Cities of Panama and Colon -------- --
Miscellaneous projects --------------------------
Major highway developments -------------- --
Miraflores Bridge completed -- -- --------
Trans-Isthmian Highway opened -----------
Public order ------------------------------------
Fire protection-------------------------------------
Magistrates' courts ---------------------------------
Balboa ----------------------------------------
Cristobal -------------------------
Pardons and reprieves------------------------------
Public school system ---------- -----
Playground section------------ ---
Postal system ---------------------------------
Air maiL---------------------------------------
Agreement with Republic of Panama --------- -
Immigration visas ----- ----------------
Customs-------------------------------------------
Shipping commissioner ----------- ----
Administration of estates ----------- -------
Foreign corporations --------------------------------
Insurance ------------------------------------------
Licenses and taxes ------------------------
Commercial aviation -----------------------------


Page
------ 81
------ 83
------ 85
86
------ 89


------ --- 93
------------ 93
------------ 94
----------- 95
---- ------ 96
------------ 97
------------ 97
--- -------- 98
98
---------- 99
-------- 100
------------ 101
---------- 101
--------- 101
------------ 101
------------ 102
S 102
------------ 102
------ -- 103
---------- 103
------------ 103
---- ---- 104
------------ 107
------------ 108
------------ 108
------------ 108
----------- 108
------------ 109
------------ 110
------------ 111
------------ 113
------------ 113
------------ 114
------------ 114
------------ 115
------ --- 116
------------ 116
------------ 116
------------ 117
------------ 117


SECTION V-FINANCIAL AND STATISTICAL STATEMENTS
Accounting system------------------------------------------------- 119
Operations of the Panama Railroad Co-------- -----------_-- 120
Panama Canal operations------ ------------------- --- 120
Index to tables -- --------------------------- --- -------- 121
Financial tables------------------------------------------------- 122-154














REPORTS OF HEADS OF DEPARTMENTS AND DIVISIONS
APPENDIXES NOT PRINTED

The material in the annual report of the Governor of The Panama Canal, pub-
lished 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 organ-
ization; 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 Depart-
ment 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 and at the office of the Governor
at Balboa Heights, C. Z.:
Engineer of Maintenance, report of.
Special Engineering Division, report of Acting Supervising Engineer.
Dredging Division, report of Superintendent.
Plans Section, report of Acting 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 Engineering Division, report of Office Engineer.
Section of Meteorology and Hydrography, report of Chief Hydrographer.
Marine Division, report of Marine Superintendent.
Mechanical Division, report of Superintendent.
Supply Department, report of Chief Quartermaster.
Accounting Department, report of Comptroller.
Executive Department:
Division of Civil Affairs, report of Chief.
Police and Fire Division, report of Chief. .
Division of Schools, report of Superintendent.
Panama Canal Clubhouses, report of Acting Director.
Division of Personnel Supervision and Management, report of Director
of Personnel.
Surveying Officer, report of.
General Counsel, report of.
Real Estate Section, report of Chief.
License Bureau, report of Chief.
Public Defender, report of.
Paymaster (acting), report of.
Collector, report of.
Magistrates' Courts:
Magistrate, Cristobal, report of.
Magistrate, Balboa, report of.
Washington office, report of Chief of Office and General Purchasing Officer.
Pardon Board, report of Chairman.
Senior Aeronautical Inspector, report of.










ANNUAL REPORT


OF THE

GOVERNOR OF THE PANAMA CANAL


BALBOA HEIGHTS, CANAL ZONE,
October 15, 1942.
THE SECRETARY OF WAR,
Washington, D. C.
SIR: I have the honor to submit the report of the Governor of The
Panama Canal for the fiscal year ended June 30, 1942.
For the past 28 years the Panama Canal has been of inestimable
value in promoting world-wide trade; more than half a billion tons
of commercial cargo have been carried through the Canal. Tolls
rates on transiting vessels have been established, and adjusted as
necessary, to cover the costs of maintenance and operation and to
allow under normal conditions for a return of 3 percent on the capital
invested by the United States Government in the Panama Canal
enterprise. Thus it can be truly said that the Panama Canal has
been a successful Government-owned public utility in that it has
rendered an important public service at reasonable cost to its users,
and at the same time it has operated on a self-supporting basis.
The entry of the United States into the war has greatly changed
this situation. Because of the disruption of world shipping, the
commercial tolls-paying traffic has dropped to about one-fourth of
normal levels, and the current tolls receipts not only fail to provide
any return on the investment, but now cover only about two-thirds
of the expenses of operation and maintenance of the Canal. It
appears likely that these circumstances will prevail without essential
change during the remainder of the war period, as there is little
prospect of large increases in commercial shipping through the Canal
until after the war is over, and it is obviously impossible to suspend
the work required for the maintenance and operation of the Canal,
because of its importance to the prosecution of the war. In these
times the value of the Canal is to be measured by the place it takes
in the plans and operations for the conduct of the war, rather than
by the economic features of its operation. The favorable economic
features of the operation of the Canal will no doubt be restored and
even enhanced by the termination of the war.




REPORT OF THE GOVERNOR OF PANAMA CANAL


Because of the confidential nature of the shipping statistics and
other information included in this report, I propose, subject to your
approval, to withhold printing and public distribution of the report
until after the war.
Respectfully,
GLEN E. EDGERTON,
Governor.
INTRODUCTION
Administration of the affairs of The Panama Canal enterprises
involves three main elements: (a) Operation and maintenance of the
Ca nal itself; (6) operation of the auxiliary enterprises necessary to
provide adequately for the needs of shipping and of the Canal operat-
ing forces; and (c) government of the Canal Zone, populated by Ameri-
can civilians, native or tropical workers and their families, and by the
United States Army and Navy defense forces.
In addition to these normal elements, during the past 2 years the
Canal organization has performed very important functions as a
supply and service agency for the greatly expanded activities of the
Army and Navy, particularly in their extensive construction program.
While the Canal organization and equipment were not designed for
this duty and are by no means fully adequate, the services rendered are
regarded as very creditable. These services have contributed materi-
ally to the efficiency and economy of the Army and Navy operations,
and will continue to do so for the duration of the war.
The immediate supervision of the administration of these various
activities rests with the heads of the nine major departments and
divisions. Responsibility and control of the entire organization are
centered in the Governor of The Panama Canal who is also the presi-
dent of the Panama Railroad Co., an adjunct of the Canal enterprise,
organized as a Government-owned corporation.
By Executive order of September 5, 1939, the provisions of section
13 of the Panama Canal Act, approved August 24, 1912, were invoked
as an emergency measure and since that date the Commanding
General, Panama Canal Department, United States Army has exer-
cised final authority and jurisdiction over the operation of The
Panama Canal and all its adjuncts, appendants, and appurtenances,
including control and government of the Canal Zone; and the Governor
of The Panama Canal has been subject to that authority and the
orders issued under it.

OPERATION AND MAINTENANCE OF THE CANAL
The primary function of The Panama Canal is to provide and
maintain a waterway by means of which vessels may make the
transit from one ocean to the other, and to handle such traffic as






REPORT OF GOVERNOR OF THE PANAMA CANAL


presents itself for transit with a maximum of safety and a minimum
of delay. Essentially this involves the maintenance of the waterway,
the operation of the locks, and the control of traffic through the Canal.
Throughout the year the Canal force maintained its high standard of
expeditious service not only in the actual transiting of ships but in
providing emergency repairs, fuel, supplies, and the various supple-
mentary services incidental to shipping. There were no interruptions
of ship traffic during the year.

OPERATION OF AUXILIARY ENTERPRISES-BUSINESS OPERATIONS

Secondary only to the operation of the Canal is the function of sup-
plying various services to shipping. Commerce requires at the Canal
certain adjuncts of shipping, such as fuel oil and coaling plants, store-
houses for foodstuffs, ship chandlery, and other essential supplies,
marine and railway repair shops, terminal facilities for the transship-
ment of cargo and passengers, a railroad line across the Isthmus and a
steamship line between New York and Panama, quarters and commis-
saries for the operating force, and other services essential to the eco-
nomical and efficient operation of the Canal. These services, under
coordinated and centralized control, are provided by the various busi-
ness units of The Panama Canal and Panama Railroad Co. The
coordination of such services with the transit of ships through the
Canal assists materially in the efficient and economical operation of
the waterway. Moreover, in providing marine repair facilities, fuel,
and other supplies, the operation of these business units promotes
traffic through the Canal.

GOVERNMENT-ADMINISTRATION

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

SERVICES RENDERED BY THE CANAL TO SHIPPING

The more important items of the business of the Canal and its
adjuncts covering principal services to shipping are expressed numer-
ically in the following table, which presents a comparison of the activi-







REPORT OF GOVERNOR OF THE PANAMA CANAL


ties during the fiscal year 1942 with the 2 years immediately preceding:


Fiscal year

1942 1941 1940

Transits of Canal by ocean-going vessels paying tolls.--- 2,688 4,727 5, 370
Transits of small commercial traffic not counted in
ocean-going traffic-- ------------------..-----------------... 439 929 973
Free transits of public vessels of theUnited States and
Panama, war vessels of Colombia, and vessels for
repairs, etc.-----------.. ----------------.--. ------------....._ 1,516 955 602
Total transits----..--------------------------------- 4,643 6,611 6,945
Number of lockages during the year:
Gatun locks--------------------------- ------------- 4,669 5,103 5,302
Pedro Miguel locks-----------.----------------------.... 4,445 5,018 5,392
Miraflores locks --...----------------------------------- 3,775 4,943 5,286
Tolls levied on ocean vessels-------------- ---------- $9,752,207.38 $18,157,739.68 $21,144,675.36
Tolls on small commercial vessels------------------ ---- 19,905.94 32,639.68 33,084.46
Total tolls-------------------------------.----- 9,772,113.32 18,190,379.36 21,177,759.82
Cargo passing through Canal (tons) ------.---------- 13,607,444 24,950,791 27,299,016
Net tonnage (Panama Canal measurement) of transiting
ocean vessels------------------------- ------------.....-.... 11,010,004 20,642,736 24,144,366
Cargo per Panama Canal net ton of ocean vessels, laden
vesselsonly ----------------------------..--------------.. 1.381 1.369 1.326
Average tolls per ton of cargo, laden vessels only ------.- $0.645 $0.657 $0.632
Calls at Canal Zone ports by ships not tra. siting the
Canal. ------------ -..---------------- ---- .... 948 1,035 890
Cargo handled and transferred at ports (tons).. ..----------- 2,508,421 2,390,618 2,062,020
Coal, sales and issues (tons)-----------------------------.. 127,644 87,446 118,219
Coal, number of commercial ships bunkered -----------..- 305 211 300
Fuel oil pumped (barrels).--------..---......----...------------- 12,644,217 12,957,008 12,4g2,347
Fuel oil-number of ships served other than vessels
operated by The Panama Canal--. ---------------------- 2,596 2,620 2,455
Ships repaired other than Panama Canal equipment---- 1,023 742 779
Ships drydocked other than Panama Canal equipment- 185 122 119
Provisions sold to commercial ships (commissary sales) - $543,995.78 $361,276.32 $297,477.96
Chandlery sold to ships (storehouse sales) --------------- $77,324.80 $76,554.05 $67,559.67


NET REVENUES

The net revenues from Canal operations proper were $344,525.81,
compared with $8,852,036.84 in fiscal year 1941. Net revenues from
business operations under The Panama Canal for 1942 were $734,465.84,
compared with $1,008,741.70 in 1941. The combined net revenues
accruing from the Canal and its business units totaled $1,078,991.65,
compared with $9,860,778.54 in 1941.
This very low net revenue was caused by the sharp decline in com-
mercial tolls-paying traffic, after the entrance of the United States into
the war in December 1941. Since that time the tolls collections have
been at a rate sufficient to cover only some 50 to 75 percent of the
expenses of operating the Canal. However, The Panama Canal is
now rendering such important service that there is no way in which it
can reduce its expenditures proportionately with the reduction in the
transits of tolls-paying vessels through the Ctinal.
The gross capital investment as of the beginning of the fiscal year
was $593,201,909.71 and the net investment, $510,066,616.76. Net
revenue for the year produced a return of 0.21 percent on this net





REPORT OF GOVERNOR OF THE PANAMA CANAL


investment as against 1.95 for the previous year. The foregoing
figures do not include operations carried on by the Panama Railroad
Co.
REPLACEMENTS

The past fiscal year marked the close of 28 years of successful opera-
tion 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 good condition
in which all wearing and deteriorating parts are kept. Of the total
capital value of The Panama Canal there are approximately $100,000,-
000 of general structural values pertaining to nonbusiness units of the
organization, which are subject to deterioration and require regular
repair and periodical replacement.
Some of these structures, such as dams and concrete buildings,
are still in excellent condition and require but little expenditure for
upkeep; but on others deterioration has reached a point where replace-
ment should not longer be defe-rred. These necessary replacements
include not only the frame buildings originally erected to serve during
the period of construction of the Canal, but also docks, highways,
etc., which, due to ordinary deterioration or other conditions, have
been rendered inadequate or unserviceable for present requirements or
uneconomical to maintain.
Funds for the replacement of worn-out plant and equipment fpor
these nonbusiness units (with the exception of floating plant) must be
appropriated by Congress from the general funds of the Treasury,
since no funded replacement reserves for these operations are main-
tained by The Panama Canal. However, in the Canal 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 have been deposited annually in the Treasury in prior years)
the necessary replacement of worn-out and obsolete plant to maintain
the enterprise up to the standard of operation.
Not only is there demand for replacement of some of the existing
facilities but the need also develops for new kinds of facilities. Funds
for such new facilities must be obtained by direct appropriation.
Now that the United States is at war The Panama Canal has
suspended its normal policy of replacement and expansion in its plant
as a means of serving world shipping. At present all proposed new
facilities are judged primarily upon the basis of their importance to
the prosecution of the war.













SECTION I


CANAL OPERATION AND TRADE VIA THE PANAMA CANAL
STATISTICS ON CANAL TRAFFIC

Ocean-going I commercial transits through the Panama Canal in
the fiscal year 1942 numbered 2,688, the lowest year's traffic since the
fiscal year 1922, when the number was 2,665. Fiscal year 1922 was
the eighth year of operation of the Canal and world trade routes had
not as yet been established up to the levels that prevailed from 1925
through 1940. The following figures show the principal features of
ocean-going commercial traffic through the Canal for the past 3
fiscal years:

Fiscal year
1942 1941 1940
Number of transits----------------- ------------- 2,688 4,727 5,370
Net tonnage (Panama Canal measurement)------.------ 11,010,004 20,642,736 24,144,366
Cargo carried-long tons-------------------------- 13,607,444 24,950,791 27,299,016
Tolls collected ----------. -------------------- ------- $9,752,207 $18. 157,740 $21,144,675

The outbreak of the war in Europe during the early part of the fiscal
year 1940 had a slightly adverse effect upon Canal traffic through
disrupted schedules and sailings. This occurred principally in the
normally important trades between Europe and the west coasts of
North and South America, and for a while the other phases of Canal
traffic held up to former levels. Starting in January 1941, traffic
gradually dropped off and by December 1941 was down to about two-
thirds of normal levels. After the entrance of the United States into
the war in December 1941 commercial traffic dropped off sharply and
for the last 4 months of the fiscal year 1942 was down to the levels pre-
vailing during the first few years immediately following the opening
of the Canal. This resulted from the decline in traffic between the
Far East-Philippine Islands-East Indies areas and Europe-east
coast United States, coupled with the complete discontinuance of all
movements in the United States intercoastal trade from February
1942 on. The only remaining important trades were those between
South America and east coast United States and between Australasia
and Europe-east coasts United States and Canada.
1 Includes toll-paying vessels having a measurement of 300 or more net tons (Panama Canal measure-
ment) or 500 or more displacement tons.





REPORT OF GOVERNOR OF THE PANAMA CANAL


The combined cargo movement in both directions through the
Canal in 1942 showed a decrease of 46.3 percent in comparison with
the fiscal year 1941. A break-down of this cargo by direction shows
that tonnage moving from the Atlantic to the Pacific totaling
4,684,922 tons in 1942, declined 50.6 percept from that moving in this
direction in 1941, while that moving from the Pacific to the Atlantic
totaling 8,922,522 declined 42.3 percent. This relatively greater
decline in shipments from the Atlantic came from the discontinuance
of shipments from the United States to the Far East, which formerly
accounted for nearly 30 percent of the total tonnage moving through
the Canal in this direction. Cargo tonnage through the Canal for the
fiscal year 1942 was approximately half that passing through in 1941
and less than half of that passing through in 1940. Substantial de-
creases occurred in nearly all of the major trade routes passing through
the Canal. The following paragraphs show to what extent each of
these major routes of trade was affected.
In the Europe-North American trade, which in normal times ranks
second only to the United States intercoastal trade in volume of cargo
and number of transits through the Canal, there were 94 transits in
1942 as compared with 333 in 1941 and 747 in 1940. Cargo passing
through the Canal between the 2 areas totaling 563,000 long tons in
1942 was 65 percent less than that passing through in 1941 and 84
percent less than in 1940. In this trade the cargo passing in the east
to west movement, Atlantic to Pacific, is relatively small even under
normal conditions,; but that from the Pacific to the Atlantic, prior to
the outbreak of the war, averaged around 4,000,000 tons a year. In
1942 the total cargo moving in this direction was 541,000 tons, one-
eighth the normal level and a decline of over 1,000,000 tons from that
moving in this same direction in 1941. Commodities normally
shipped in considerable quantities from the west coast North America
to Europe are lumber, canned food products, fresh and dried fruits,
grains and mineral oils.
The Europe-South American trade, which in other years comprised a
large percent of the total traffic through the Canal, was negligible in
1942. There were 52 transits in 1942 compared with 94 in 1941 and
355 in 1940, while cargo carried in this trade route, totaling 271,000
tons in 1942, was approximately one-half of that in 1941 and about
one-tenth of the prewar level. In the Atlantic to the Pacific movement
in this trade, which for the most part comprises various types of man-
ufactured articles, tonnage dropped to 49,000 tons in 1942, a decrease
of 52 percent from 1941 and 81 percent from 1940. In the opposite
direction, Pacific to the Atlantic, cargo tonnage totaled 222,000 tons
in 1942 compared with 429,000 tons and 1,475,000 tons in 1941 and
1940, respectively. Some of the principal commodities normally





REPORT OF GOVERNOR OF THE PANAMA CANAL


shipped in large volume from the west coast of South America to
Europe are nitrates, mineral oils, grains, metals, ores and sugar.
In the United States intercoastal trade route, normally the leading
trade route using the Canal, traffic has been severely curtailed. Since
March 1942 there has been no movement of cargo or ships in this
trade. Transits in the fiscal year 1942 numbered 264 compared with
977 in 1941, a loss of 713 or 76 percent while cargo totaling 1,951,000
tons in 1942, declined 4,930,000 tons or 72 percent. The decline in
the cargo movement in this route was sharp in both directions with a
68 percent decline in the west-bound movement and a 75 percent
decline in the east-bound movement. All commodities declined, but
those showing the greatest declines in tonnage were lumber, off
1,046,000 tons from 1941; mineral oils, off 692,000 tons; canned goods,
off 369,000 tons; sugar, off 92,000 tons; wood pulp, off 90,000 tons.
Traffic between the east coast United States and the Far East
(including the Philippine Islands) was at a normal level for the first
5% months of the fiscal year 1942, that is, until the outbreak of the
war in the Pacific. After December 1941, traffic declined rapidly
with transits finally ceasing in this trade for the last 2 months of the
fiscal year. The last ship in this trade came from the East Indies via
Australia making transit of the Canal in April 1942. Transits num-
bered 267, a decrease of 631 or 70 percent from the number passing
through in 1941. In 1942 the combined cargo movement in both
directions in this trade totaled 1,915,000 tons compared with 6,439,000
tons in 1941, a decline of 4,570,000 tons or 70 percent but only 60 per-
cent under that of 1940 as traffic in this trade route had been abnor-
mally heavy in 1941. In the eastbound movement, i. e., imports into
the United States from the Far East, cargo tonnage declined from
3,153,000 tons in 1941 to 1,301,000 tons in 1942, a loss of 1,852,000
tons or 59 percent. TIhe principal commodities showing the greatest
decline were sugar (from the Philippines), off 834,000 tons; rubber
from British and Dutch East Indies, off 291,000 tons; sago flour, off
94,000 tons; and ores (chrome, magnesite, manganese and tin), off
91,000 tons. In the movement in the opposite direction, i. e., cargo
movement routed from the east coast United States to the Far East
and Philippine Islands, there were only 614,000 tons in 1942 as against
3,340,000 tons in 1941, a loss of 2,726,000 tons or 81 percent. Among
the commodities in which tonnage declined appreciably were mineral
oils, off 644,000 tons; iron and steel manufacturers, off 437,000 tons;
phosphates, off 247,000 tons; pig iron, off 76,000 tons; paper and paper
products, off 49,000 tons and shipments of scrap metals from a total of
390,000 tons in 1941 to practically none in 1942.
Transits in the trade route between the east coast United States and
the west coast of South America numbered 536 in the fiscal year 1942
as against, 587 in 1941 and 593 in 1940, a decline of approximately 10





REPORT OF GOVERNOR OF THE PANAMA CANAL


percent from the fiscal years 1941 and 1940. The cargo movement in
1942 totaled 3,195,000 tons against 3,418,000 tons in 1941, a slight
decline of 223,000 tons or 7 percent but approximately the same as in
1940. As previously stated, this trade route has continued at fairly
normal levels all during the period of the present hostilities. The
movement of cargo from the east coast United States to the west
coast South America in the fiscal year 1942 was slightly above 1941, as
shown by the 542,000 tons of cargo moving in this direction as against
456,000 tons in 1941, a gain of 86,000 tons. This cargo consists princi-
pally of miscellaneous manufactured goods. This gain was offset by
the loss in the cargo moving from the west coast of South America to
the east. coast United States, 2,652,000 tons in 1942 as compared with
2,962,000 tons in 1941, a reduction of 310,000 tons, or 10 percent. The
loss in this direction was caused by the decline in shipments of iron ore,
which although totaling 1,200,000 tons in 1942 was 480,000 tons lower
than in 1941; this was caused by enemy submarines sinking a number
of the vessels employed in transporting heavy shipments of iron ore
from Chile to the east coast United States. There were tonnage in-
creases in a few commodities, such as nitrates, up 57,000 tons; metals
(copper and lead) up 67,000 tons; and sugar, up 14,000 tons.
Transits in the Europe-Australasia trade numbered 255 in 1942, as
compared with 220 in the previous year, a gain of 35 or 16 percent over
1941 and 20 percent over 1940. Total cargo shipments in this trade
route increased from 1,382,000 tons in 1941 to 1,764,000 tons in 1942,
or 28 percent over 1941, and 631,000 tons, or 56 percent over 1940.
There were gains in both directions over this route, with 1,403,000
tons moving northbound from Australasia to Europe in 1942 com-
pared with 1,162,000 tons in 1941, an increase of 21 percent. The
principal commodities showing increases as, compared with 1941
tonnage in this trade were refrigerated meats, up 78,000 tons; metals
(zinc, lead, and iron) up 88,000 tons, as well as wheat, wool and tallow
showing smaller total increases over last year's shipments. In the
Europe to Australasia movement cargo tonnage showed a slight gain
of 41,000 tons ,attributed mainly to the increased shipments of
explosives, munitions, and ordnance supplies to Australia.
In the east coast United States-Australasia trade, cargo tonnage in-
creased from 683,000 tons in 1941 to 927,000 tons in 1942, a gain of
36 percent over 1941 and 49 percent over 1940. There were increases
in both directions in this route. The east-bound movement, i. e.,
from Australasia to east coast United States rose from 267,000 tons
in 1941 to 393,000 tons in 1942, a gain of 126,000 tons or 47 percent.
This advance was accounted for by the increased volume in the
following principal commodities: Wool, up 68,000 tons; chrome ore,
up 51,000 tons; and lead (metal) up 18,000 tons. In the west-bound
movement, east coast United States to Australasia, cargo shipments





REPORT OF GOVERNOR OF THE PANAMA CANAL


were up 118,000 tons or 28 percent over the previous year. The
major increases were in the following commodities: Tinplate, up
84,000 tons; gas and fuel oil, up 73,000 tons, and gasoline, benzine,
and naphtha up 17,000 tons. These increases were offset somewhat
by the decline in shipments of iron and steel manufactures, sulphur,
and lubricating oils.
The only other important trade route served by the Canal is that
between the Hawaiian Islands and the United States, with transits
numbering 51 as against 126 in 1941 and 105 in 1940. This trade
route was severely affected during the last 6 months of the fiscal
year after the outbreak of the war in the Pacific, there having been
neither transits nor cargo movements in either direction since January
1942. Cargo totaling 331,000 tons moving over this route in 1942
was less than half of that in 1941 and 1940. This loss was sustained
in the two principal export commodities of the Islands: Canned fruit
(pineapple) decreased from 196,000 tons in 1941 to 74,000 tons in
1942, while sugar decreased from 307,000 tons in 1941 to 134,000
in 1942.
Further details of individual commodities and of the trade routes
served by the Canal are presented on pages 15 to 21 of this report.
In the fiscal year 1942, transits of local vessels under 300 net tons,
Panama Canal measurement, numbered 439, on which tolls of $19,-
905.94 were paid. Transits of naval and other public vessels of the
United States and Panama, war vessels of the Colombian Govern-
ment and vessels transiting solely for repairs, none of which paid
tolls, numbered 1,516 as against 955 for 1941. The total of all tolls-
paying and free transits combined numbered 4,643 in the fiscal year
1942 as compared with 6,611 in 1941 and 6,945 in 1940, equivalent
to averages of 12.72, 18.11, and 18.98 transits per day, respectively.
The receipts from tolls as reported to the United States Treasury
for the fiscal year 1942 were $9,772,112.42. This figure includes
tolls on local commercial traffic amounting to $19,905.94, which are
not included in the Canal statistics covering ocean-going commercial
traffic. The tolls receipts reported to the United States Treasury
moreover reflect minor adjustments for overcharges and undercollec-
tions, which in 1942 amounted to $0.90. These two items account
for the difference of $19,905.04 between the tolls receipts reported
to the Treasury and the figure for tolls levied on ocean-going com-
mercial traffic as reported in the following studies of traffic which
are based on tolls levied at the time of transit.


678920-46-2






REPORT OF GOVERNOR OF THE PANAMA CANAL


CANAL TRAFFIC BY FISCAL YEARS 1915 TO 1942

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


Fiscal year ended June 30-- Nubra of tanma CeTal Tolls Tons of cargo


1915'--------------- --------------- 1,058 3,507,000 $4,366,747.13 4,888,400
1916 ------------------------------------- 724 2,212,000 2,403,089.40 3,093,335
1917---------------------------------- 1,738 5,357,000 5,620,799.83 7,054,720
1918----------------------- ----- 1,989 6,072,000 6,428,780.26 7,525,768
1919------------------------------------ 1,948 5,658,000 6,164,290.79 6,910,097
1920------------------------------------ 2,393 7,898,000 8,507,938.68 9,372,374
1921 ---------------- -- 2,791 10,550,000 11,268,681.46 11,595,971
1922------------------------------------ 2,665 10,556,000 11,191,828.56 10,882,607
1923----------- ------ ----- 3,908 17,206,000 17,504,027.19 19,566,429
1924 ----------------- ----------- 5,158 24,181,000 24,284,659.92 26,993,167
1925 ---------- ---- -------- 4,592 21,134,000 21,393,718.01 23,956,549
1926------------------------------------ 5,087 22,906,000 22,919,931.89 26,030,016
1927 ----------- ---------- 5,293 24,245,000 24,212,250.61 27,733,555
1928 ------------ -- -- 6,253 27,229,000 26,922,200.75 29,615,651
1929-------------- ---- 6,289 27,585,000 27,111,125.47 30,647,768
1930------------------------------- 6,027 27,716,000 27,059,998.94 30,018,429
1931----------- ---- 5,370 25,690,000 24,624,599.76 25,065,283
1932 ------------------ ---- 4,362 21,842,000 20,694,704.61 19,798,986
1933-------------------- 4,162 21,094,000 19,601,077.17 18,161,165
1934-------------- ------- 5,234 26,410,000 24,047,183.44 24,704,009
1935---------------------------- -- 5,180 25,720,000 23,307,062.93 25,309,527
1936---- ---------------------- 5,382 25,923,000 23,479,114.21 26,505,943
1937---------- ------------ 5,387 25,430,000 23,102,137.12 28,108,375
1938- ----- ------------- 5,524 25,950,383 23,169,888.70 27,385,924
1939---------- -------------------------- 5,903 27,170,007 23,661,021.08 27,866,627
1940------------------------------------ 5,370 24,144,366 21,144,675.36 27,299,016
1941--- -------------------- -- 4,727 20,642,736 18,157,739.68 24,950,791
1942-------------------- ----- 2,688 11,010,004 9,752,207.38 13,607,444
Total----------------- ------------ 117,202 525,038,496 502,101,480.33 564,647,926

I Panama Canal net tonnage prior to 1939 are estimated figures based on revised measurement rules which
became effective Mar. 1, 1938.
2 Canal opened to traffic Aug. 15,1914.
3 Canal closed to traffic approximately 7 months of fiscal year by slides.

TRAFFIC BY MONTHS-FISCAL YEARS 1942 AND 1941
The ocean-going commercial traffic during each month of the fiscal
year 1942 is summarized in the following table, in which are inserted
for comparison corresponding figures for the preceding year:


Number of Panama Canal net Tns f a Tolls
transits tonnage Tons of cargo Tolls
Month
1941- 1940- 1941-42 1940-41 1941-42 1940-41 1941-42 1940-41
42 41

July ----------------- 293 431 1,262,145 1,993,936 1,658,974 2, 285,010 $1,121,823.84 $1,735,553.52
August--------------- 263 434 1,062,138 2,031,910 1,366,266 2,418,324 949,693.46 1,781,334.54
September----. t- 295 430 1,178,373 2,021,570 1,481,453 2,304,195 1,050,803.46 1,771,398.18
October----------.---- 335 462 1,372,137 2,078,534 1,718,663 2,418,104 1,215,888.70 1,820,111.76
November------------. 318 387 1,295,202 1,711,174 1,545,526 2,061,753 1,143,819.90 1,510,594.56
December-------------.. 269 412 1,024,882 1,769,812 1,282,641 2,128,606 915,016.10 1,553,326.02
January -------------- 208 404 866,317 1,637,598 1,084,614 1,965,675 759,856.58 1,437,169.56
February-- --.--------- 175 363 707,355 1,537,568 856,694 1,827,094 618,727.14 1,360,327.26
March--............-------------- 150 394 620,626 1,608,835 788,106 1,911,110 554,810.40 1,413,441.54
April -------------- 120 368 516,061 1,550,938 607,187 2,056,995 458,699.34 -1,379,378.02
May... ------------------ 142 352 560,783 1,501,849 706,772 1,988,697 492,239.58 1,330,773.84
June ---.------- 120 290 543,985 1,199, 012 510,548 1,585,228 470,828.88 1,064,330.88
Total ----------... -- 2,688 4,727 11,010,004 20,642,736 13,607,444 24,950,791 9,752,207.38 18,157,739.68
Average per month. 224 394 917,500 1,720,228 1,133,954 2,079,233 812,683.95 1,513,144.97







REPORT OF GOVERNOR OF THE PANAMA CANAL


NATIONALITY OF VESSELS TRANSITING CANAL


Segregation of the ocean-going traffic through the Canal during
the fiscal year 1942, by nationality, is presented in the following
table which shows transits, measurements tonnage, tolls, and tons
of cargo:

Ocean-going commercial traffic through the Panama Canal during the fiscal year
1942, by nationality of vessels


Nationality


Argentinian ------------
British ... ------ --- ---- .-..
Chilean -------------.-
Colombian -----------
Finnish.--. .--.----...--- --
French----- ----------
Greek --------------------.-
Honduranian---....---.- __
Japanese ---------------
Mexican----------------.. -
Netherland -------------.-.-
Nicaraguan--...- .... ----
Norwegian--- ----------..
Panamanian.. ......---
Peruvian.. -----...----
Philippine---------------.-
Portuguese-------------
Soviet.-.- ---------------..
Swedish-----------------.
United States -------------
Yugoslav ------. -----
Totals:
Fiscal year 1942 --------
Fiscal year 1941-----------
Fiscal year 1940--------------


Number
of trans.-
its



2
565
102
12
1
3
16
72
5
2
394
2
186
222
17
14
6
21
49
921
76

2,688
4,727
5,370


Measured tonnage

Panama R registered


Canal net

7,443
3,267,419
328,535
5,424
1,401
(2)
52,671
126,284
27,634
5,682
890,263
1,508
814, 218
425,663
26,852
60,000
30,386
75,008
202,259
4,444,105
217, 249

11,010,004
20,642,736
24,144, 366


Gross

7,050
4,379,778
457,390
6,774
1,854
(2)
55,870
209, 506
37,129
7,884
1,132,969
2,220
912,398
579,094
39. 432
65,929
34,962
99,062
505,349
5,964,420
260,229

14,759,299
26,852,831
31,085,719


Net

3,552
2,671,291
270,552
4,461
1.086
(2)
33, 553
117,439
21,865
4,459
670,070
1,104
544,453
340,628
23,647
40,029
21,748
57,205
191,384
3,567,435
156,231

8,742,192
16, 019,065
18,642,955


Tolls




$6,698.70
2,967,002.50
295,681.50
4,881.60
1, 260.90
3,737.50
45,964.26
104,871.96
24,870.60
5,763.80
797, 639.40
1,357.20
701,932.86
366,913.62
23,931.36
53,723.16
25,506.72
56, 664.72
171,333.00
3, 903,873.78
188,598.24

9, 752, 207. 38
18, 157. 739. 68
21,144,675.36


Tons of
cargo



14,214
3,419,427
332,228
5,079
2,823
------------
64,858
68,607
32,961
11,521
1, 121, 266
2,309
906,823
505,259
31,070
85, 257
24,571
15,199
440,825
6, 220,957
302,190

13,607, 444
24,950,791
27, 299,016


I Ocean-going commercial traffic includes only tolls-paying vessels of 300 net tons and over, Panama
Canal measurement, and vessels paying tolls on displacement tons of 500 displacement tons and over.
2 Displacement tonnage.


VESSELS PAYING TOLLS ON DISPLACEMENT TONNAGE


In the Canal traffic statistics, foreign naval vessels such as trans-
ports, supply ships, tankers, 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 of 500 tons or more,
are classified as ocean-going commercial vessels. Statistics on these
vessels, except as relates to displacement tonnage, have been included
in the traffic summaries shown on the preceding pages. As displace-
ment tonnage cannot be combined with net tonnage, the following






14 REPORT OF GOVERNOR OF THE PANAMA CANAL

table shows statistics covering 30 vessels which transited the Canal
during the fiscal year 1942 and paid tolls on displacement tonnage:

Type of vessel Number of Displacement Tolls
transits tonnage
Warships. ----------.-. ----------------- --- 28 100,025 $50,102.50
Dredges----------------------------------------------- 2 2,337 1,168.50
Total----------------------------------- ------ 30 102,542 51,271,00


SMALL COMMERCIAL VESSELS TRANSITING CANAL

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

Tonnage
Number of Tolls Tons of
transit Panama Displace- cargo
Canal net ment

Atlantic to Pacific ---------------------- 243 12,318 2,342 $10,803.52 5,688
Pacific to Atlantic -----------------------. 196 10,697 -----------. 9,102.42 7,311
Total ---------------------- ------ 439 23,015 2,342 19,905.94 12,999


VESSELS ENTITLED To FREE TRANSIT

Naval and other vessels owned and operated in the Government
service of the United States and Panama, war vessels of Colombia and
vessels transiting solely for the purpose of having repairs made at the
Canal shops, are exempt from the payment of tolls, and such vessels
are not included in the general transit statistics pertaining to Canal
traffic.
Prior to outbreak of the war on December 7, 1941, there had been
kept, as a matter of record, the number of vessels by group, the
measured tonnage, the amount of tolls to which they would have been
subject to at the prescribed rates if tolls had been charged against them,
and the cargo carried by such vessels in ocean-to-ocean movement.
Since the beginning of hostilities information of this nature has been
deemed secret, and only the total number of vessels transiting free
of charge has been recorded for routine statistical purposes. For
the fiscal year 1942 there were a total of 1,516 vessels transiting the
Canal free of tolls.







REPORT OF GOVERNOR OF THE PANAMA CANAL


CARGO SHIPMENTS SEGREGATED By PRINCIPAL TRADE ROUTES


Cargo shipments through the Panama Canal during the fiscal year
1942 and in the 3 preceding years, segregated( by principal trade

routes, are shown in the following tabulation:


East coast United States and west coast South
America:
Atlantic to Pacific-------------------------
Pacific to Atlantic--------------------------

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

United States intercoastal:
Atlantic to Pacific------------- ---
Pacific to Atlantic--------------------------

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

Europe and Australasia:
Atlantic to Pacific- --------------
Pacific to Atlantic -----------------

Total -------------------------------
United States and Far East (excluding Philip-
pine Islands):
Atlantic to Pacific-------- ---------
Pacific to Atlantic---- ----- --- -----

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

United States 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-----------------------------------

Europe and Canada:
Atlantic to Pacific --------------------------
Pacific to Atlantic---- --------------
Total------------------ -------------

Europe and South America:
Atlantic to Pacific ---------------------
Pacific to Atlantic------------------------
Total ------- -------------

Europe and United States:
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 -------------------


Tons of cargo

1942 1941 1940 1939



542,328 456,335 501,511 192,732
2,652,242 2,961,992 2,757,412 2,447,257

3,194,570 3,418,327 3,258,923 2,639,989


949,610
1,001,771
1,951,381

361,310
1, 403,106

1,764,416


490,654
896, 426

1,387,080

534. 449
392,668

927,117

123,173
404,754

527,927

108,852
222,258

331,110

12,090
304,977


2, 947, 549
3, 933, 753
6,881,302

219,657
1,162,503

1, 382,160


3,082,897
1,640,278

4,723,175

416, 292
266, 592

682, 884

257, 425
1, 512,890

1,770,315

227, 795
581,355

809,150


47,607
1,114,069


2, 795, 708
4,918, 629

7, 714, 337

268, 143
864, 701

1,132,844


2, 888, 160
585,304

3,473,464

487,896
135,639

623,535

378, 285
1,012,861

1,391,146

189,490
504,674

694,164


44,402
2,006,622


2,391, 523
4,493, 203

6, 884, 726

542, 770
759, 794
1,302, 564


2, 593, 808
280, 593

2,874,401

374, 544
86,999

461, 543

277, 399
918, 937

1, 196, 336

141,804
361,857

503,661


78,789
2,539,436


317,067 1,161,676 2,051,024 2,618,225


49,305
221,554

270,859

9,421
236,069

245,490


102,694
429,064

531,758

23,354
443,660

467,014


259,700
1, 474,874

1,734,574

192,374
1,099,296

1,291,670


____________ I__________ ______________________ _____________________ 1


1,503,730
1,186,697

2,690,427

4,684,922
8,922, 522


1,706,841
1,416,189

3,123,030

9,488,446
15,462,345


Total..-----...--------------.---------. 13,607,444 24,950,791


1,813,931
2,119,404

3,933,335

9,819,600
17, 479, 416

27,299,016


415,697
2,481,541

2, 897, 238

337, 401
2,349, 888

2,687,289


1,664,800
2, 135,855

3,800,655

9,011,267
18,855, 360

27,866,627


--`-~--









REPORT OF GOVERNOR OF THE PANAMA CANAL


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20 REPORT OF GOVERNOR OF THE PANAMA CANAL

PRINCIPAL COMMODITIES

Statistics of commodities passing through the Canal are not. precise
beenu-;e at the time of transit it is not required( that complete manifests
of cargo enrried by vessels be submitted to the Canal authorities. In
lieu of a manifest the master of each vessel is required to submit a
cargo d(leclaration, which is a briefly itemized statement, listing the
principal items of cargo carried and showing their ports or country of
origin and destination. These cargo declaration form the basis of the
commodity statistics. There is a natural tendency not to list small
miscellaneous shipments but to include them under the head of gen-
eral cargo. Hence, except in the case of commodities commonly
shipped in bulk, such as mineral oils carried in tank ships, wheat,
lumber, nitrate, etc., aggregate shipments of the various commodities
are likely to be in excess of the tonnage reported during the year and
shown in the annual summary. Subject to errors arising from this
source, the tonnage of the principal commodities shipped through the
Canal during the past 4 years is shown in the following table:

Fiscal year ended June 30-
Commodity
1942 1941 1940 1939

ATLANTIC TO PACIFIC Long tons Long tons Long tons Long ton8s
Mineral oils------------------------------------ 1,098,881 1,565,910 1,294,886 1,032,671
Manufactures of iron and steel ----------------- 686,895 2,094,421 1,837,593 1,495,497
Paper and paper products ------------------- 191,157 362,090 394,021 402, 264
Tinplate --------------------------- ------ 162,304 216,273 243,784 194,186
Sulphur-....-------------------------------- 121,266 296,273 353,452 234,879
Coal and coke --------------------------------- 117,704 213,578 330,542 147,273
Machinery..---------------------------------- 116,468 160,126 205,210 158,835
Chemicals (unclassified)---------------------- 106,419 166,321 140,411 127,858
Automobiles----------------------------------- 96,895 99,178 92,781 152,131
Canned goods (food products)------------------ 94,281 164,280 139,169 132,228
Cement---------------------------------------- 86,628 77,201 93,286 160,271
Metals, various. ------------------------------ 72,768 358,886 316,627 400,285
Automobile accessories.----------------------- 72,697 58,200 65,512 80,693
Soda and sodium compounds------------------ 62,450 80,714 48,528 39,694
Explosives------------------------------------- 53,010 9,675 4,317 8,182
Textiles ----------------------------------- 44.167 86,540 87,212 98,325
Liquor and wines.. --------------------------- 43,250 65,824 71,432 74,093
Asphalt '---------------- .--- --- ------ 41,645 67,014 60,970 71,931
Coffee ----------------------- 40,536 83,363 76,550 73,314
Fertilizers (unclassified) ---------------------- 36,459 36,609 25,367 20,633
Lumber and mill products..-------------------- 35,489 61,914 63,492 58,157
Glass and glassware-------------------------- 33,903 43,097 47,797 60,005
Salt------------------- ------------------- 33,443 161,974 71,899 54,751
Cotton, raw ------ ---------------------------- 32,697 183,617 277,978 250,752
Electrical apparatus --------------------------- -- 31,489 45,403 43,105 39,207
Creosote.. --------------------------------------- 31,147 39,029 43,672 26,399
Flour--.---------------------------------- 30,879 15,991 20,232 23,445
Agricultural implements -..--.------------------ 28,131 25,372 27,970 43,276
Oilseeds --- ---------------------------------- 25,398 43,782 25,985 45,676
Vegetable oils -------------------------------- 25,323 16,433 19,366 32,002
Ammonium compounds-----------. ------- 25,152 74,565 103,435 51,062
Wood pulp .------------------------------- 24,616 44,943 96,150 59,834
Tobacco------------------. -------------------.. 24,613 56,469 69,044 64,441
Floor uv,'rirnL .............. ................ 24,418 35,233 30,844 27,237
Paints, pigments and varnishes ----------...-- 24,383 38,121 37,000 36,057
Sugar.--------------------------------------- 21,909 17,661 19,188 36,832
Rosin.--------.------------------------------. 19,329 54,768 44,606 41,303
Groceries (unclassified) ----- ---------- 18,775 34,161 31,279 24,794
Railrnaii material-------------------------- 16,634 56,889 70,637 82,235
I'liarmni.frl. tic.AI preparations2..........--------------..-. 16,520 31,663 31,355 29,114
Ores, various--------------------------------. 13,818 46,711 100,830 45,620
1 Prior to 1942, included tar.
2 Prior to 1942, "Drugs and medicines."







REPORT OF GOVERNOR OF THE PANAMA CANAL


Fiscal year ended June 30-
Commodity i


ATLANTIC TO PACIFIC-continued

Soap and products ------------------
Clays-------------------------------------
Asbestos-----------------------------
Phosphates----------------------------------
Rubber, manufactured - ------------
Oilseed cake and meal -------------------------
Cocoa and cacao beans----------------------
Nitrate-----------------------------------------
Potash ---------------------------------------
Extract, quebracho ---------------------------
Corn------- -----------------------------
Scrap metal -----------
Sand -----------
Slate. ---------------------------------
Rubber, scrap ----------------------------------
Slag-----------------------------------------
All other ----------------- -----------


Long tons
12,854
12,739
12,146
10,677
9,846
6,762
6,261
3,785
3,619
2,289
1,821
1,430
1,010
444
171
715, 122


Total------------------------------ 4,684,922
PACIFIC TO ATLANTIC


Ores, various--------------------------------
Nitrate ----------------------------------
Metals, various -------------------------
Lumber----------------------------------------
Cold storage (food products) 3 -..-----
Sugar------------------------------------------
Canned goods (food products) ----- -------
Rubber, raw------------- -----------
Wool------------- ------
Mineral oils ---------------------------------
Vegetable oils ------- ---------------- -------
Wheat------------ ----
Copra-------------- --------------
Fruit, dried-- --------------
Coffee----------------------------------------
Hemp, unmanufactured---------------------
Woodpulp------ ------------------
Tallow.- ----- ----------------------
Skins and hides --
Bananas---------- -----------
Sago, flour -----------------
Wheat flour--- ------------
Beans, edible, dry --------------
Cotton, raw -----------------
Rice--------------------------------------------
Iron and steel manufactures --------------------
Molasses and sirups-------------------------
Paper and paper products--------------------
Tea --------------------------------------------
Sand -------------------------------------
Chemicals (unclassified) ------------------------
Coconuts and products------------------------
Seed (except oilseed) ----------------------
Borax-----------------------------------------
Wines------ -------------------
Oilseed cake and meal --------------------------
Guano ------------------------ ---------
Fruit, fresh --------------------------------
Barley -----------------------------------------
Oats---------------------------------------
Textiles----------------------------------------
Fish oil----------------------------------------
Asphalt1-------------------------------------
Porcelainware-- --------------
Soya beans ---------------------------------
Fish meal ----- --------------------------
Phosphates -----------------------------------
Potash--------------------------------------
All other--------------------------------------

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


1,905,742
807,453
753,347
742,857
674,460
592,828
557,961
540,311
278,519
171, 259
169,123
129,869
122, 543
122,066
104,404
96,712
92, 504
77,218
62,678
60,390
57,875
55,317
54,676
45,075
40,758
32,558
29,505
26,079
24, 748
23,884
21,849
20,538
20,260
13,247
10,814
9,526
5,900
4,624
4,533
3,851
2,416
2,049
917
603
487
309
55
10
347,815


Long tons
30,798
20,227
43, 313
276,035
22,458
13,761
25,159
48,546
59,294
16,120
26,756
403,673
5,452
14,700
19,701
1,996
1,070,185


Long tons
29,957
22,588
46,496
220,647
21,784
24,427
9,631
49,345
25,950
20,910
30, 597
968,045
21,776
20,746
20,328
9,230
1,119,629


1939


Long tons
28,630
21,461
35,395
202,981
16,642
27,504
10,568
54,181
27,859
20,652
3,049
1,200,368
25,788
20,616
11,837
26,769
1,039,525


9,488,446 9,819,600 9,011,267


2,370,480
767,414
701,567
2,809,772
596,287
1,748,663
1,141,327
780,338
204,205
1,073,924
292,940
336,276
90,006
172,728
176,251
120,620
167,867
36,293
66,823
142,521
258,325

104,513
31,926
76,096
44,448
63,491
113,186
30,249
18,547
21,015
40,153
20,261
30,658
21,886
4,097

12,026
4,088
17,115
39,757
3,703
48,048
26, 726
297
420
15, 339
26,683
592,990


I 8,922,522 15,462,345


2,165,646
1,361,422
706,001
3,669,482
444,291
1,455,683
1, 248,059
185,819
158,148
2,014, 237
211,457
611,961
111,438
275,637
166,881
40,118
275,350
36,573
53,961
36,624
176,126

130,021
98,920
93, 579
14, 299
61, 577
127,415
14,691
7,165
25,286
29,543
17,212
64, 241
24,387
60,669
4,700
135,143
117,625
49,990
43,084
19,414
87, 538
26,409
43,200
24,669
92,259
75,777
585,689
17,479,416


1,991,690
1,444,148
674,314
3,191,093
335,874
1,329,276
1, 232,636
24,934
138,622
2,777,201
174,944
1, 539,474
156,657
337,769
185,341
24, 293
235,768
30,864
58,760
45,557
153,642
165,185
106,211
31,127
8,466
101,750
120,723
11,884
1,350
18,542
27,064
13,531
74,239
29,879
62,925
27,830
419,109
259,612
102,650
30,986
34,433
61,861
25,324
236,099
32,473
87,715
48,287
633,248

18,855,360


I Prior to 1942, included tar.
3 Does not include fresh fruit.


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









REPORT OF GOVERNOR OF THE PANAMA CANAL


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REPORT OF GOVERNOR OF THE PANAMA CANAL


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REPORT OF GOVERNOR OF THE PANAMIA CANAL


LADEN AND B.ALLAST TRAFFIC BY NATIONALITY

In the table below the ships of each nationality have been segre-


galtd( to show separate statistics
and/or passengers at the time
which passed through in ballast:


on vessels which were carrying cargo
of transiting the Canal and those


A.rc intinian ..
liHir.... i
Chilean-...-.-
Colombian ---.
Finnish..-..
Greek---..---.
Honduranian.
J~ipallf-m .
JTi1 Ii.iir.'
NI0CAn
Netherland_
Nitarywnan 111
Norwegian----
Panamanian-
Peruvian-----
Philippine-- --
Portuguese- -
Russian----
Swedish..--
United States-
Yugoslav ---.
Trtil, 1942--
Total, 1941---
Total, 1940. -


Laden


Ballast


__________________ ______________________ ~ ______________________


Number of
transits


2
519
102
12
1
13
44
5
1
377
2
145
189
15
13
4
5
35
801
62
2,347
4.100
4,581


Panama
Canal net
tonnage


7,443
3,159,699
328,535
5,424
1,401
44,673
77,486
27,634
5,682
870,278
1,508
642,755
335,757
25,544
58,462
20,160
14,772
142,814
3,905,276
178,772


9, '4. 075
18, 2211 182
20,580,938


Tolls


$6,698.70
2,843,729.10
295,681.50
4,881.60
1,260.90
40,205.70
69,737.40
24,870.60
5,113.80
783,250.20
1,357.20
578,479.50
302,181.30
22,989.60
52,615.80
18, 144.00
13, 294.80
128,532.60
3,514,748.40
160,894.80


8.868,667. 50
16,403,563.80
18,522,844.20


Number of
transits


23


3
28


Panama
Canal net
tonnage


107,720


7,998
48,798

19,985
171, 463
89,906
1,308
1,538
10,226
60,236
59,445
538,829
38,477


1,155,929
2,416,554
3,563,428


Tolls


$77,558.40


5,758.56
35,134.56

14,389.20
123,453.36
64,732.32
941.76
1,107.36
7,362.72
43,369.92
42,800.40
387,956.88
27,703.44


832,268.88
1,739,918. 88
2,565,668.16


AVERAGE TONNAGE,


TOLLS, AND TONS OF
CARRYING VESSEL


CARGO PER CARGO-


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


Fiscal year

1942 1941 1940

Measured tonnage:
Panama Canal net------------------------------------------------ 4,142 4,385 4,518
Registered gross......... 5,553 5,703 5,817
Registered net ----- ---------....-.--...- .......................- ... 3,289 3,402 3,489
Tolls..-- $3,650 $3, 854 $3,947
Tons of cargo (including vessels in ballast)---------------------------- 5,119 5,304 5,109
Tons of cargo (laden vessels only)----------------------------------- 5,798 6,090 5,966



STEAM, MOTOR, AND OTHER VESSELS

The following table shows ocean-going commercial vessels transiting
the Canal during each of the past 4 fiscal years, segregated according
to the method of propulsion:


~- -1 _ 1 I - I --~- '-


Nat innlit-y







REPORT OF GOVERNOR OF THE PANAMA CANAL


1942 1941 1940 1939

Steamers:
Oil burning -------..--------------------------------- 1,254 2,601 2,567 2,444
Coal burning-------.-------------------------------- 332 325 637 1,019
Motorships------------. ----------------- ------------- 1,065 1,777 2,135 2,398
Miscellaneous--.---------------------------------------- 37 24 31 42
Total ----------------------- --------------------- 2,688 4,727 5,370 5,903


FREQUENCY OF TRANSITS OF VESSELS THROUGH THE PANAMA CANAL

During the fiscal year 1942, 967 individual ocean-going commercial
vessels, representing 21 nationalities, passed through the Panama
Canal. In the aggregate these vessels made a total of 2,688 transits.
The number of transit made by individual ships varied from 1 to 44
and averaged 2.78. The greatest number, 44, was made by the
Panamanian steamer Colombia, plying between Cristobal and the
west coast of Colombia.
The United States was first in the number of individual vessels
during the year with 342, as well as in the number of transits-921;
Great Britain was second in both individual vessels and transits,
with 286 and 565, respectively.
The following table shows the number of individual ships, the
frequency of transits per ship, the total transits for the year, and the
average number of transit per individual ship, segregated by
nationality:

Vessels making indicated number of transits during fiscal year 1942

Nationality 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Argentinian -------------- 2 ----- ----- ----- ----- -- -- -- --- --- --- --- -- -- --- --- --- ---
British- ------- -------- 156 61 34 22 7 4 ---- -------------- ------ 1 --- --. --- ---
Chilean --------------- 2 5 2 1 2 3 1 ---- ----------- 1 2 -- ---
Colombian --------------- ---------------------- ---- -------- --- --- 1 --- --- --- --- --- ---
Finnish--------------- ----- ----- ----- ----- --- ---- ---- ---- --- --- --- --- -- --- --- --
French------------------3 ----- ----- ----- ---- ---- ---- --- -- --- -- -- -- -- --- --- --
Greek------------------- 3 3--------------- --1 ------------
Honduranian -------------1 4 6 1 1 2 1 --- --- --- --- ---
Japanese ---------------- -------------------- 5 -- -- --- ---- ---- --- -- -- -- --- --- ---
Mexican-----------------2 ----- ----- ----- ----- --- ---- --- ---- --- -- -- --- -- --- --
Netherland --------------30 19 10 5 2 ---- ---- 1 1 --- --- --- --- --- --- --- --- ---
Nicaraguan-. -------------- ----1 ----- ----- ----- ---- --- --- ---- --- -- --- --- --- --- --- --- ---
Norwegian--..----.----.---- 40 19 8 9 3 3 1 1--- --- --- --- --- --- --- --- ---
Panamanian ---.---------- 27 13 4 5 2 ------------------1 --- --- --- --- --- ---
Peruvian---------------- 1 ----- 4 ------------ --- ------ --- ---
Philippine--------------- 2 3 2 -- ---- ----------- --- -------
Portuguese--------------- ----- 3 ----- ----- ----- --- ---- ---- -- --- --- --- --- -- ---
Russian..------ ---------- 17 2 ----- --- ----- --- --- ---- ---- --- --- -- --- -- --- --- --- ---
Swedish..-..-------...-------- 9 4 1 -- -- --- 1 ---- -- ---
United States----------- 157 60 42 29 20 10 2 5 3 5 4 1 1 3 ----------
Yugoslav---------------- 5 1 4 1 3 1 1 1 -
Total, 1942------------- 458 202 103 85 36 27 5 11 5 5 5 4 1 5 3 --- --- --
Total, 1941 ------------- 350 309 146 165 77 56 42 28 32 6 7 5 --- 2 3 3 7 6
Total, 1940------------- 511 427 168 164 103 75 42 49 22 6 7 5 3 -- 1 6 3 4







2ti REPORT OF GOVERNOR OF THE PANAMA CANAL

Vessels making indicated number of transits during fiscal year 1942-Continued

Total Total Transit
Nationality 19 20 21 24 25 26 27 28 32 33 34 36 37 39 44 ships transits pr


Argentinian.............. ... .... .. .. .. .. .. .. .. .. ... .. ..... 2 2 1.00
British................... ... ... 1 .. .. .... ... ... .. .. ... ..... 286 565 1.98
Chilean ................... ... .. .. ... ..... ... 19 102 5.37
Colombian--..------------- ------ --- ---.-- --- ... --- --- .-- --- ... ... 1 12 12.00
Finnish---------.....--------- ... ------ --- --- --. -- --. --- -- --- ... -..- ... ... 1 1 1.00
French--------------------------------..............-.------.. .. ... ... ... ---- .- ... ... ... ... ---3 3 1.00
Greek-------.------------ ------------ --- ---- --- --- --- ---- ---- --- ... 7 16 2.29
H onduranian........ .... . .. .. .. .. .. ... . .. ... ... . .. 16 72 4.50
Japane--e ............... ... .. ... ... ... .. ... .. .. ... .. ... ... .. .. ... 5 5 1.00
Mexican--------------- -- ------- --- --- --- --- --- --- ... .-- ------ ... 2 2 1.00
Netherland------------.- 1 --- -- 1 ---.-- -- 2 1 2 1 -- 76 394 5.18
N icaraguan ............... .. .. ... ... ... .. ... .. .. ... .. . ... 1 2 2.00
Norwegian --------------- -- --- ---- - - .. -.- 84 186 2.21
Panamanian.------------- ------ -- ---- - 1 -- ---- 1 ---- 1 55 222 4.04
Peruvian---..------------- --- --------- --- --- --- -- ------ --- --- --- --- 5 17 3.40
Philippine -------------- -------------------------------- --- --- --- 7 14 2.00
Portuguese.---------------.---------. -- .--- ... --- ---... -- --- 3 6 2.00
Russian.... .. ..... .. .-- -. ---- -- -- --- --- 19 21 1.11
Swedish----.---.---------- --- -- --- -- --- ------... .---------. 16 49 3.06
United States ---------- -- ------ --- --- --- 342 921 2.69
Yugoslav --------------------------- -- ------ --- 17 76 4.49
Total, 1942 .------ -- 1 -... 2 -.--- 3 1 --- 2 2 .- 1 967 2,688 2.78
Total, 1941------------- 3 -- 1 3 2 1 1 2 11 1 --- 111,263 4,727 3.74
Total, 1940 ------------- 4 2 3 1 1 --- -- 1 1 1 1 -- 2 1,613 5,370 3.33

1 Includes also 2 vessels, each making the following number of transits: 43 and 89.
2 Includes also 2 vessels, each making the following number of transits: 42 and 103.


The following tabulation taken from the preceding table shows for
the fiscal year 1942 the number of vessels making a given number of
transits through the Panama Canal (from 1 to 44), their aggregate
number of transits, and their percent of the total ocean-going com-
mercial transits (2,688):


Total Percent of Total Percent of
Number of Number of n r o total Canal Number of Number of Tota l total Canal
transit vessels fnube of transits transits vessels abe ofi transit
transit (2,688) transit (2,688)

1------------- 458 458 17.0 13 ------- 1 13 0.5
2-----.-------- 202 404 15.0 14. ------ 5 70 2.6
3- ------------- 103 309 11.5 15 -------- 3 45 1.7
4------------- 85 340 12.6 19 -...--- 1 19 .7
5 ------------- 36 180 6.7 24 ------- 2 48 1.8
6. .------------- 27 162 6.0 32----------- 3 96 3.6
7 ------ 5 35 1.3 33 --------- 1 33 1.2
8 ------------- 11 88 3.3 36--------- 2 72 2.7
9 ------- 5 45 1.7 37-------- 2 74 2.8
10 ------ 5 50 1.9 44 -------- 1 44 1.6
11 ----.- 5 55 2.0
12-------- 4 48 1.8 Total.. 967 2,688 100.0







REPORT OF GOVERNOR OF THE PANAMA CANAL


GRoss TONNAGE OF VESSELS

The 2,688 ocean-going commercial vessels which transited the
Canal in the fiscal year 1942 included 2,657 merchant vessels, yachts,
etc., paying on the basis of net tonnage, and 31 vessels paying tolls
on the basis of displacement tonnage. Of the 2,657 merchant vessels,
yachts, etc., 640, or 24.1 percent, were vessels of from 6,000 to 8,000
registered gross tons, this being the most general size of vessel to
transit the Canal. The average registered gross tonnage of all
transits for the fiscal year 1942 was 5,555 as compared with 5,694 for
the fiscal year 1941; this represents a decrease of 2.4 percent in size.
The following tabulation shows the ocean-going commercial vessels,
excluding those based on displacement tonnage, in groups according to
registered gross tonnage, segregated by nationality, with average
tonnages for 1942 and 1941 and group percentages for the year
just past:

Segregation of transits by registered gross tonnage of vessels, fiscal year 1942

Under 2,000 to 4,000 to 6,000 to 8,000 to 10,000 to 12,000 to 14,000 to
Nationality 2000 3,999, in- 5,999, in- 7,999, in- 9,999, in- 11,999, in- 13,999, in- 15,999, in-
celusive elusive elusive elusive elusive elusive elusive

Argentinian--------- ---------- 2 --------- ---------- ---------- --------- ------- -----
Belgian--------- - ------------ ----- -- ---------. -------- -------- --
Brazilian-------- ------- ---------- ------- ------- ---- ------- ---- -
British: ------------- 47 11 96 149 116 53 35 9
Chilean--. ----------- 36 20 -----.. 46 ------- -------------
Colombian----------. 12 ------ ------- ------ ------- ---------- ----- ---
Danish---------------- ---------- ------ ------ ------ ----- ----- -----
Finnish..---------- I -- ----- ---------- ----- -- ---- ----- ---- ---
French-------- ----- ----- ----- ----- --- --- ----- -
Greek-.-------------- --------- 11 5 ------------ -----
.Honduranian -----.- 11 58 1 2 ----- ----- -------
Hungarian------ ---- --- ---------..... ---------- -----------
Japanese---------- --------- ----..- ------------ 3 2 ----- --
Latvian--------. --- ----- ----- ----- ------ ----- ------ ---
Mexican-----------.---------- -------------------- 1 --- --- ----- -
Netherland---------- 254 21 11 40 60 6 ---- 2
Nicaraguan -----. 2 -----. ----- ------- ------- ----- --- .---
Norwegian---------- 18 33 88 31 10 3 3 ----
Panamanian--------- 122 49 26 16 5 4 ------- --- ..
Peruvian ------------ 5 12 --- ----- ------ ----- ----- -----
Philippine----------- ---------- 2 12--- ---- -- --- ---
Portuguese-------------------- ---------- 2 4 ------- ----- ------ ----
Rumanian -..-- -- -- ----- -- --- ----- ----- ---- ----- ..
Russian..------------- --------- . 10 7 4 ------ ----- ---- .--
Spanish..-------- ------- ------ ------ -- -- ------ ---..
Swedish-------------- --------- 10 9 4 ---------- --------- ---------- 26
Thailandic----------------- ----- ..---- ------ ..- --
United States ---. 6 65 319 340 170 13 2 2
Yugoslav------------ 3 56 17 ----- ---- ----- ----- ---
Total ..---- 517 360 593 640 363 79 40 39
Percent of total ---- 19.5 13.5 22.3 24.1 13.7 3.0 1.5 1.5


678920-46-3







28 REPORT OF GOVERNOR OF THE PANAMA CANAL

Segregation of transits by registered gross tonnage of vessels, fiscal year 1942-Cont.


Nationality




Argentinian ........
B elgian .............
Brazilian .........
British..-------....-..
Chilean--.- -----
Colombian---- -----.
Danish--------------
F innish .. .........
French-------------
Greek------------
Honduranian -... --....
Hungarian---------
Japanese----------
Latvian---------
Mexican ------
Netherland --------.
Nicaraguan -..---
Norwegian -----
Panamanian. ---
Peruvian------------
Philippine.. -----------
Portuguese ---------
Ruamanian----------
Russian. --------..--
Spanish------------
Swedish----_.---..-
Thailandic----------
United States---..-
Yugoslav-----------
Total------.
Percent of total-..--


16,000 to
17,999, in-
clusive


18,000, to
19,999, in-
clusive


20,000 and
over


. .. .. .
16

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


I
------------


Total I


2
------------
54i1
102
12
1

16
72
------------
5
----------1
394
2
186
222
17
14
6
21
49

918
76


Registered
gross
tonnage




7,050
------------
4,379, 778
457,390
6,774
------------
1,854

55, 870
.19, 506
37, 129
7,884
1,132,969
2,220
912,398
579,094
39,432
65,929
34,962
99,062

505, 349
------------
5, 964, 420
260,229


Average registered gross
tonnage per vessel

Fiscal year

1942 1941

3,525 ......----
--- -..- k6,429
------ 4,469
8,096 6,754
4,484 6,092
565 607
---.-- ---- 5,086
1,854 3,797
.-.-------- 6,073
3,492 4,954
2,910 3,082
---------. 4,323
7,426 7,903
8---------- 4,082
7,884 5,873
2,876 3,753
1,110 623
4,905 4,451
2,608 2,958
2,319 2,839
4,709 5,390
5,827 ------


------------
4,717
10, 313
6,497
3,424


2,657 14, 759,299 5,555
100.0 .......... ... -----------


4,083
3,160
4,876
8,205
3,268
6,386
4,287
5,694
------------


i 31 vessels paying on displacement-24 British, 3 French, 1 Mexican, and 3 United States-are not
included

TRANSIT OF LARGE VESSELS-S. S. "AQUITANIA"

As shown in the preceding table there were 16 transits of British
vessels and 1 transit of a United States vessel in excess of 20,000
registered gross tons. By far the largest of this group was the S. S.

Aqtitania, which transited north-bound on April 17, 1942. This
vessel has a measurement of 44,786 registered gross tons and is the
second largest commercial vessel which has transited the Canal. The
largest was the German S. S. Bremen, of 51,731 registered gross tons,
which transited on February 15, 1939, and the third largest was the
British S. S. Empress of Britain, of 42,348 registered gross tons, which
made several transits prior to the outbreak of the war.
The 16 other tranisits made during the year by vessels in excess
of 20,000 tons were made by vessels of between 20,000 and 30,000
tons. The Eiiipi.s-s- of C(anada was the only one of these vessels

which had transited the Panama Canal prior to the outbreak of war
in 1939. Following is a list of the vessels comprising these 16 other
transits:
Captm1rli Castle, Sf9ilinig Cu.tle, Atildnie Castle, Dominion AMlon-
arch, each of which made two transits last year, and the






REPORT OF GOVERNOR OF THE PANAMA CANAL 29

Orion, Empress of Japan, Empress of Canada, Andes, Strhia ffiUn,
Warwick Castle, Orcades, and the W'est Point (U. S. registry)
each of which made one transit last year.

SUMMARY OF PASSENGER MOVEMENT AT CANAL DURING 1942

Passenger movements at the Canal for the fiscal year 1942 have
been separated into two 6-month periods, before and after the out-
break of the war. Prior to December 1941 all ships' passengers,
inclusive of troops and military personnel, were tabulated; starting
in January 1942 tabulations included only passengers who were on
commercial vessels. Accordingly, for the latter 6 months statistics
do not include United States military personnel, or any other pas-
sengers traveling on vessels operated by the United States Army or
Navy. The tables below show the number of pass-ngirs for these
two periods, disembarking and embarking at the two terminal ports
of Cristobal and Balboa; segregated between first class and all others:

Local passengers
[Local passengers are considered as those disembarking or embarking at Canal ports]
6 MONTHS ENDED DECEMBER 1941

Passengers disembarking Passengers embarking

First class Others Total First class Others Total

Cristobal ---------------------11,692 13,152 24,844 8,647 6,763 15,410
Balboa ---------------------- 2,021 12,350 14,371 1,917 3,705 5,622
Total------------------- 13,713 25,502 39,215 10,564 10,468 21,032

6 MONTHS ENDED JUNE 1942

Cristobal--------------------- 3,855 4,815 8,670 3,881 2,711 6,592
Balboa ------------------------ 223 3,099 3,322 265 1,000 1,265
Total------------------- 4,078 7,914 11,992 4,146 3,711 7,857


TRANSIENT PASSENGERS

Most of the transient passengers aboard vessels calling at Canal
ports came ashore for a short period, but since they departed on the
same vessels upon which they arrived they are not included in the
tabulation of passengers ending or beginning voyages at the Isthmus.

6 MONTHS ENDED DECEMBER 1941

First class Others Total

Remaining on board vessels transiting Canal:
Atlantic to Pacific------------------------. ----------------- 4,954 11,370 16,324
Pacific to Atlantic----------------....------------------------- 3,667 4,100 7,767
Remaining on board vessels entering port but not transiting Canal:
Cristobal (Atlantic)------..---------..-.------------------------ 5,396 376 5,772
Balboa (Pacific)------------------. --------------------------- 83 766 849
Total------....------------.. ------------------.--------- 14,100 16,612 30,712






30 REPORT OF GOVERNOR OF THE PANAMA CANAL

6 MONTHS ENDED JUNE 1942

First class Others Total
Romaininp on board vessels transiting Canal:
A ti]an ic to Pacific-----------------------------------...---------.......... 802 608 1,410
Pacific to Atlantic--------------------------------------------- 1,976 3,292 5,268
Remaining on board vessels entering port but not transiting Canal:
Cristobal (Atlantic). ----------------------------------------- 454 170 624
Balboa (Pacific)-------------------------------------------------- 23 258 281
Total-------------------------------------------------- 3,255 4.328 7.583

CANAL OPERATION AND MAINTENANCE
HOURS OF OPERATION

Dispatching of ships through the Canal is conducted on schedules.
Vessels awaiting transit begin moving through the Canal from the
terminal ports at 6 a. m. and dispatches are made thereafter from
each terminius at intervals of 1 hour. The following is a summary
of the arrangements in effect at the end of the fiscal year:
From Cristobal Harbor, first ship at 6 a. m., last at about 3 p. min.;
from Balboa anchorage, first ship at 6 a. min., last at 2:30 p. inm.
Tankers and vessels carrying hazardous cargoes are dispatched at
the discretion of the port captain and are not permitted to proceed
unless they can clear the locks before dark.
Special precautions and regulations for handling ships in the locks
were continued throughout the year.

OPERATING SCHEDULE OF LOCKS
Gatun:
7 a. m. to 3 p. m.-8 locomotives.
9:30 a. m. to 5:30 p. m.-6 locomotives.
3 p. m. to 11 p. m.-8 locomotives.
Pedro Miguel:
8 a. m. to 4 p. m.-8 locomotives.
4 p. m. to 12 p. m.-8 locomotives.
12 p. mn. to 8 a. m.-6 locomotives.
Miraflores:
7 a. m. to 3 p. m.-8 locomotives.
9 a. m. to 5 p. m.-8 locomotives.
5 p. m. to 1 a. m.-8 locomotives.

LOCKAGES AND LOCK MAINTENANCE

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:







REPORT OF GOVERNOR OF THE PANAMA CANAL


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

1941
July - --- 445 1,042 344 520 332 508 1,121 2,070
August -------------. 446 1,105 328 482 321 493 1,095 2,080
September----------- 451 1,103 341 511 343 500 1,135 2,114
October-... ..485 1.123 367 551 355 533 1,207 2,207
November-------- 478 1,156 367 538 352 527 1,197 2,221
December----------- 420 976 358 555 342 501 1,120 2,032
194S
January------ 456 1,141 347 531 340 520 1,143 2,192
February 392 1,015 294 464 288 450 974 1,929
March ---- 407 1,106 288 446 288 456 983 2,008
April ---------------- 229 397 462 1,119 271 440 962 1,956
May -------------- 253 425 462 1,106 285 435 1,000 1,966
June---------------- 207 397 487 1,261 258 443 952 2,101
Total---------- 4,669 10,986 4,445 8,084 3,775 5,806 12,889 24,876
Fiscal year:
1941.. ------------ 5,103 8,.018 5,018 7,489 4,943 7,410 15,064 22,917
1940 ----- 5,302 7,713 5,392 7,643 5,286 7,570 15,980 22,926
1939 -- ---- 6,054 7,929 6,283 8,064 6,221 7,988 18,558 23,931
1938 ------------ 5,651 7,385 5,870 7,420 5,813 7,316 17,334 22,121
1937 ------------ 5,504 7,156 5,735 7,474 5,608 7,218 16,847 21,848


The lock-operating machinery functioned smoothly throughout the
year except for a few incidents due to faulty operation or minor failure
of equipment. The following summary includes all delays .to vessels
while transiting the locks due to the incidents mentioned:

Number Aggregate delay
of vessels caused all vessels
delayed

Gatun---------------------------------------------------------- 15 2 hours 37 minutes
Pedro Miguel---------------- ------------------------- ----------- 10 3 hours 31 minutes
Miraflores ------------ --. ------- --------------------------------- 19 5 hours 55 minutes
Total---------------------------- ----------------------- -- 44 12 hours 03 minutes


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

Average number of lockages Average number of vessels
per day per lockage
Fiscal year --- ------
at Pedro Mira- at Pedro Mira-
Gatun Miguel flores Gatun Miguel flores

1942 ---------------..------------------- 12.8 12.1 10.3 2.35 1.82 1.54
1941-.---------------------------------- 14.0 13.7 13.6 1.57 1.49 1.50
1940------------------------------------ 14.5 14.8 14.5 1.45 1.41 1.42
1939-- ------------------------------- 16.6 17.2 17.0 1.31 1.28 1.28
1038--------. ------------------------- 15.5 16.1 15.9 1.31 1.26 1.29





REPORT OF GOVERNOR OF THE PANAMA CANAL


Locks machinery and equipment were kept in good operating
condition throughout the year by a rigid program of regular main-
tenance. A minor overhaul and inspection of Miraflores Locks was
iccomniplished. Materials and labor were not available for a major
overhiuil, but since there had been a 5-year interval since the last
overhiauling, an inspection was nude and repairs effected where
in-eded. Special construction work on all locks was carried on during
the year by the municipal, mnelihanical, and electrical divisions as
well as by the regular locks forces employed in altering, relocating,
and protecting operating machinery and equiiipmient.

POWER FOR CANAL OPERATIONS
The power system was operated throughout the fiscal year 1942
with a combined generator output of 191,381,561 kilowatt-hours as
compared with the combined generator output of 132,933,684 kilowatt-
hours for the preceding fiscal year. During the year 170,841,436
kilowatt-hours were distributed to consumers as compared with
119,553,193 kilowatt-hours in fiscal year 1941. From the above there
resulted a transmiission loss of 20,540,125 kilowatt-hours, or 10.7
percent as compared with 13,380,491 kilow att-hours or 10.06 percent
for the preceding year. The maximum peak load carried on the
system during the fiscal year 1932 was 37,600 kilowatts, occurring on
May 21, 1942.
The Madden hydroelectric station and the Gatun hydroelectric
station operated throughout the year, generating 63.2 and 36.5
percent respectively, of the total power output, while stand-by
Diesel-electric stations generated the remaining 0.3 percent used
during the year. The Miraflores Diesel-electric station continued on
a full stand-by basis during the year and was operated on 84 occasions,
mostly during peak-load periods. -The Balboa Diesel-electric station
also continued on a full stand-by basis during the entire year being
operated 53 times during the year, 43 of which were for power pur-
poses and the remaining 10 operations for test purposes and instrue-
tion of personnel. The Mount Hope Diesel-electric station was
placed in operation during May 1942. This is a single engine stand-
by station and was operated only a few times during the year for
test purposes.
Work in connection with the installation of the third 10,000 kilovolt-
amnipere turbine-driven generating unit, at the Madden hydroelectric
station, was approximately 70 percent complete at the end of the
year. Five stand-by substations were added to the power system
during the year as follows:. Mount Hope Substation, North; Mount
Hope Substation, South; Monte Lirio Substation; Tunnel Substation;
and Sosa Hill Substation.






REPORT OF GOVERNOR OF THE PANAMA CANAL 66

There were 31 interruptions to transmission line service during
the year. Of these 31 interruptions 15 were caused by barrage balloon
cables contacting line, 7 were undetermined, 5 were from insulator
flashover caused by lightening, 2 by crane contacting line, 1 by an
earth slide, and 1 prearranged interruption to permit erection of an
aerial curtain near Pedro Miguel.

WATER SUPPLY AND GENERAL WEATHER CONDITIONS

WATER SUPPLY

The water requirements of The Panama Canal for hydroelectric
power, lockage water, and municipal use are supplied by Madden
and Gatun Lakes which together drain an area of 1,289 square miles.
Water spilled from Madden Lake or drawn for use of Madden hydro-
electric station flows into Gatun Lake and remains available for
Gatun Lake uses. The total inflow of water from Madden and Gatun
drainage basins during the year ended June 30, 1942, and the ex-
penditure of this water is itemized in the following table: Similar
values for the preceding year are also given.

Percent of available
Billion cubic feet year water supply, year
ended June 30 ended June 30

1942 1941 1942 1941

WATER SUPPLY
Inflowfrom Madden Basin------------------------- 90.94 65.84 -------- -----
Evaporation from Madden Lake----------------------- 2.27 2.18 ------ ------.


Net yield available for Madden Lake uses --------
Inflow downstream from Madden Dam. ---------
Subtotal -----------------------------------------
Evaporation from Gatun Lake---- -----------


88.67 63.66------ ---- .
103.40 87.36 --------- --------.-
192.07 151.02 --- -------
18.63 20.32 ----------- ----------..


Net yield available for Gatun Lake uses --------- 173.44 130.70 ----- --------
MADDEN LAKE-WATER USES AND EXPENDITURES
Madden hydroelectric power ------------------------- 51.21 37.62 57.8 59.1
Madden Dam spillage and leakage--------------------- 34.18 22.96 38.5 36.1
Increase in Madden Lake storage.---------------------- 3.28 3.08 3.7 4.8
Total Madden Lake uses and expenditures ------ 88.67 63.66 100.0 100.0
GATUN LAKE-WATER USES AND EXPENDITURES
Gatun hydroelectric power--------------------------- 53.42 40.27 30.8 30.8
Gatun Lake lockages---------------.---------------- 32.59 37.06 18.8 28.4
Municipal, leakage, and miscellaneous ------- 2.59 2.19 1.5 1.7
Total Gatun Lake uses.- ------------------- 88.60 79.52 51.1 60.9
Gatun Spillway discharge ---------------------------- 77.14 46.55 44.5 35.6
Increase in Madden and Gatun Lake storage----------- 7.70 4.63 4.4 3.5
Total Gatun Lake uses and expenditures--------- 173.44 130.70 100.0 100.0


The 1942 yield was 194.34 billion cubic feet, representing an
average inflow of 6,163 cubic feet per second, and is 7 percent below
the 28-year annual average.





REPORT OF GOVERNOR OF THE PANAMA CANAL


Floods
Heavy rains during October and November 1941 produced
flooded conditions in the Madden Lake area. Crest river heights
above low water of 22, 27, and 30 feet occurred on the upper Boqueron,
Pequeni, and Chagres Rivers respectively. Flooded conditions did
not extend downstream with equal intensity and nothing approach-
ing a major flood occurred in the Gatun Lake area during the year.
The maximum d(lischarge at Madden Dam was 32,930 cubic feet per
second on October 14, 1941. The maximum discharge at Gatun
spilliway was 71,500 cubic feet per second on November 27, 1941,
with six spillway gates open.

Dry Season, 1942
The period in the 1942 dry season in which inflow into Madden
and Gatun Lakes was not sufficient to supply Panama Canal water
requirements extended from December 27, 1941, to May 8, 1942, a
duration of 133 days. The 1942 dry season was near normal as
regards duration but the inflow from the drainage basin was some-
what higher than during the average dry season. The total yield
of Madden and Gatun basins during this 133-day period amounted
to 22.42 billion cubic feet. Of this amount, 9.73 billion cubic feet
was lost by evaporation from Madden and Gatun Lake surfaces,
leaving a net yield of 12.69 billion bubic feet available for useful
purposes. It was necessary to draw 19.30 billion cubic feet of water
from reserve storage in Madden and Gatun Lakes to meet dry season
water uses. Gatun Lake was lowered 3.20 feet, from Eleva tion
86.24 feet to Elevation 83.04 feet. Madden Lake was lowered
9.40 feet, from Elevation 250.58 feet to Elevation 241.18 feet.
Lake Elevations
During the year ended June 30, 1942, Gatun'%Lake varied in eleva-
tion between a maximum of 86.48 feet on December 13, 1941, and a
minimum of 82.99 feet on May 8, 1942, a range of 3.49 feet. Madden
Lake varied in elevation between a maximum of 251.28 feet on Decem-
ber 13, 1941, and a minimum of 236.19 feet on July 29 and August 21,
1941, a range of 15.09 feet. Lake elevations on June 30, 1942, were
85.33 feet for Gatun Lake and 244.75 feet for Madden Lake.
Precipitation
Rainfall in the Canal Zone for the calendar year 1941 was generally
deficient over the Gatun Lake area and along the Continental Divide
but was above normal along both coasts. Annual rainfall totals
along the line of the Canal ranged from 70 inches at Miraflores and
Gamboa in the Gaillard Cut area to 142 inches at Cristobal at the
Atlantic terminal, and monthly totals for March, the driest month,






REPORT OF GOVERNOR OF THE PANAMA CANAL


ranged from 0.07 to 2.65 inches, and for October, the rainiest month,
from 9.54 to 27.31 inches. A 24-hour rainfall of 12.38 inches was
recorded at the Candelaria Station in the Madden Lake area on
October 12-13, 1941. This is the heaviest 24-hour fall in the local
records of the Panama Canal.
Air Temperature
Mean air temperatures in the Canal Zone for the calendar year 1941
were slightly above normal for every month in the year at all stations,
monthly departures ranging from plus 0.20 to plus 2.50 F. The 1941
annual mean at Balboa Heights on the Pacific coast was 80.00 F., with
monthly means ranging from 78.70 in November to 82.50 in April.
The 1941 annual mean at Cristobal on the Atlantic coast was 81.50 F.,
with monthly means ranging from 80.40 in October and November to
83.10 in April and May. The annual means and extremes at Canal
Zone stations for the calendar year 1941 are given in the following
table:

1941 maximum 1941 minimum
Station -- ------ -- __- 1941 mean Departure
0 F. Date 0 F. Date (0

Balboa Heights ---------------------------- 96 Apr. 19 69 Jan. 13 80.0 +1.2
Madden Dam.xn --------------- ------ 96 May 3 65 Ma } 78.8 +1.4
fApr. 29 1 r~an.1 6 78. 81.
Cristobal--------.--------------------------.. 94 May 1 73 {te 6 81.5 +1.4


While the mean temperatures were above normal at all stations, the
maximum temperatures were exceeded in previous years. The abso-
lute maximum and minimum temperatures on record in the Canal
Zone up to December 31, 1941, are as follows:

Record Absolute maximum Absolute minimum Annual
Record _______ __________ ________________ Ana
(years) -mean
OF. Date OF. Date (OF.)

Balboa Heights---------..-------------- 36 97 Apr. 7,1912 63 Jan. 27,1910 78.8
Madden Dam------------------------................... 31 98 Apr. 13,1920 59 Feb. 34', } 77.4
Cristobal--------------... --.......------------ 34 95 MOc 12, 66 Dec. 3, 1909 80. 1
My 21,12 66Dcj,99 8.

Winds and Humidity

Monthly mean wind velocities on the Pacific coast during the calen-
dar year 1941 ranged from 5.1 miles per hour in September to 10.0
miles per hour in March, with a maximum velocity for a 5-minute
period of 33 miles per hour from the nort.hivewst on January 31.
Monthly mean wind velocities on the Atlantic coast ranged from 5.7
miles per hour in September to 13.9 miles per hour in January and
March, with a 5-minute maximum of 34 miles per hour from the





REPORT Ou' GOVERNOR OF THE PANAMA CANAL


north on January 10 and 11. Northwest, winds were most frequent
along the Pacific coast and north winds along the Atlantic coast.
The relative humidity during the calendar year 1941 averaged 86 per-
cent on the Pacific coast and 83 percent on the Atlantic coast. Monthly
means on the Pacific coast ranged from 79 percent in March to 90 per-
cent in June. Monthly means on the Atlantic coast ranged from 75
percent in January to 87 percent in October.
Tides
During the calendar year 1941, the following extreme tidal heights
occurred at Balboa, the Pacific terminal of the Canal: Highest high
water, 9.9 feet above mean sea level on May 12 and November 20;
lowest low water, 11.4 feet below mean sea level on March 15; and
the greatest. range between consecutive tides 20.7 feet on April 13.
At Cristobal, the Atlantic terminal of the Canal, the following ex-
tremes occurred: Highest high water, 1.23 feet above mean sea level
on November 19; lowest low water, 0.99 foot below mean sea level
on May 29; and the greatest range between consecutive tides, 1.72
feet on June 9.
SEISMOLOGY
There were 323 seismic disturbances recorded on the Balboa Heights
seismographs during the calendar year 1941. Only 7 were strong
enough to be felt by residents of the Canal Zone. A large part of the
remainder appeared to be aftershocks from the same points of origin
as the principal disturbances. The intensity of the shocks that were
felt by local residents ranged from I to IV on the Modified Mercali
Scale, and none did any damage in the Canal Zone. A shock occurred
on February 27 that was felt by a few residents. On the night of
March 9 to 10, 4 shocks occurred that were generally felt by residents
of the Canal Zone. The intensities ranged from I to III and they
appeared to come from the same point of origin distant about 75 miles.
On November 22, another mild shock was felt by a few residents. The
shock of December 5 was the strongest of the year. It was generally
felt in the Canal Zone and rated at Intensity IV. Moderate property
damage was reported from widely scattered localities in eastern Costa
Rica and western Panama. The location of this shock was provi-
sionally determined by the United States Coast and Geodetic Survey,
Washington, D. C., as being in latitude 80 North and longitude 83'
West, about 250 miles from Balboa Heights.

MARINE ACTIVITIES
Although there was a sharp decline in commercial transits through
the Canal during the past year this has produced a fundamental
change but not a proportionate decline in over-all marine activities
in Canal waters. There has been an appreciable increase in the num-






REPORT OF GOVERNOR OF THE PANAMA CANAL


ber of vessels transiting free of tolls, which are not reflected in the
regular statistics covering tolls-paying or commercial vessels only.
Several very large ships and several convoys were transited without
incident.
The experimental radio telephone network of the marine division
has been extended to include mobile stations on four tugs, the U. S. S.
Favorite and six launches. Shore stations are located at Sosa Hill,
Balboa, and at Pier 6, Cristobal. These two stations are remotely
controlled by dispatchers in both port captains' offices. This system
is considered to be of great value in facilitating ship transits and
harbor control work. Eighteen additional stations have been ordered
for installation in other launches and signal stations. High powered
loud speaker systems have been 'installed at Gamboa and LaPita
signal stations for communication to ships passing these stations in
the cut. Two additional loud speaker systems are being installed at
Cristobal and Cucaracha signal stations.
The precautionary nieasire's iU1igiirated in 1939 regiaiding rigid
inspection of cargoes and the placing of armed guards on board
transiting vessels has been contiiuitd during the past fiscal year. In
February 1942, the guarding of vessels in transit through the Canal,
formerly a duty of the Army's Mobile Force, was taken over by the
Marine Corps.
Due to the defeInse work in progress on the locks only one of each
pair of locks has been available for the use of transiting vessels during
the year. In normal periods this would have tended to slow down
the time and schedule of transiting vessels, but during the past year,
due to the decline of over-all traffic through the Canal, transiting
schedules have not been disrupted to any great extent.

HARBOR ACTIVITIES
The table following shows the number of vessels handled at docks
of the terminal ports of Cristobal and Balboa for the fiscal year 1942
as compared with the 2 previous years:

Cristobal, fiscal years- Balboa, fiscal years-
1942 1941 1940 1942 1941 1940
Number of vessels docked:
Handling passengers and/or cargo----- 1,558 2,326 2,628 646 619 514
For all other purposes --------.------ 941 860 820 959 737 788
Total-------------- --------.......- 2,499 3,186 3,488 1,605 1,356 1,292

AIDS TO NAVIGATION
On June 30, 1942, there were 744 Aids to Navigation in service in
the Panama Canal and approaches thereto maintained by the Light-
house Subdivision, classified as follows: Acetylene gas, 108; electric,
334; unlighted, 302.





REPORT OF GOVERNOR OF THE PANAMA CANAL


Incident to the existence of the national emergency before the 7th
of December and war after that date, more than 110 changes, im-
provemnients and additions were made to the navigational aids and
buoyage system. The changes of major importance were: The con-
tinuing changing over of lighting in buoys from acetylene gas to
electric operation in the interest of economy and the ease of main-
tenance; and the installation of dual lighting system in Gaillard Cut
which was started and will be continued during the coming year.
Pacific Entrance mine field ranges with remote control apparatus
were established on Flamenco and Perico Islands. Remote control
apparatus was installed on Atlantic and Pacific Entrance ranges and
beacons 7 and 8 Cristobal for control at the respective port captains'
offices. A supplementary Atlantic range tower with remote control
gear was erected at Fort Davis.
The lighthouse subdivision has accomplished effective control and
regulation to Aids to Navigation for blackout purposes and at the
same time maintained an efficient system of aids for the safe naviga-
tion of the Canal. With the exception of approach lights, aids exhib-
iting white lights were screened with blue shades and aids exhibiting
red lights were reduced in intensity to minimize optical range of
visibility. Following the outbreak of war on Decemiber 7, 1941, all
outlying approach and entrance lights were extinguished by Decem-
ber 13, 1941, and most of the aids in the Canal proper were extin-
guished at the same time. During the period June 27-30, 1942, all
outlying lights were relighted, with the exception of Taboguilla
Lighthouse, in conformity with instructions of the Navy.

ACCIDENTS TO SHIPPING

The board of local inspectors investigated and reported on 28
accidents in connection with shipping in Canal Zone waters during
the fiscal year 1942, a summary of which follows with a comparison
of accidents in the 2 previous years:

Cause of accident 1942 1941 1940 Cause of accident 1942 1941 1940
Collision---------------------- 7 1 1 Ship damaged by tug---------- 1 8 7
Ship grounded.---------------- 6 1 2 Other causes------------------ 6 7 6
Ship struck dock-------------- 5 4 8 -- -
Ship struck lock wall---------- 2 9 6 Total-------------------- 28 34 33
Ship struck Canal bank-------- 1 4 3

SALVAGE AND TOWING
On February 17, 1942, the S. S. Steelore grounded at Station 1680
in the Cut and sank while moored to bollards at Empire Mooring
Station. Traffic was discontinued because of interference of hy-
draulic surges with salvage operations. The salvage operation con-
sisted of plugging holes with temporary patches and after floating








REPORT OF GOVERNOR OF THE PANAMA CANAL


the Steelore she was moved to moorings at Gamboa where repairs
were made by the mechanical division. The U. S. S. Favorite was
used during the entire salvage operation of this ship.
On June 20, 1942, the S. S. Lina Matkovic sank approximately
1,000 yards north of the Cristobal East Breakwater Light. The most
valuable parts of her cargo were salvaged by a Canal Zone salvage
group. The craneship U. S. Atlas was used in this salvage work as
the U. S. S. Favorite was at the time undergoing overhaul in the
Mechanical Division at Balboa.

MAINTENANCE OF CHANNEL-OTHER DREDGING ACTIVITIES

Dredges worked throughout the year dredging and maintaining the
Canal channel and terminal harbors from deep water of the Atlantic
entrance to deep water in the Pacific; work also was continued on
various authorized special maintenance projects. In addition,
dredging operations on the wet excavation of the third locks project
were continued throughout the fiscal year 1942. Excavations during
the year is summarized in the following table:


Location


CANAL PRISM DREDGING
Atlantic entrance, maintenance-------------------------------
Miraflores Lake, maintenance--------------------------------
Pacific entrance, maintenance--------------------------------
Total Canal prism---------...-------.--.---.---------
AUXILIARY DREDGING
Balboa Harbor:
Maintenance----------------------------------------
Project No. 1, extension No. 2----------------------------
Atlantic entrance--------.-...-..--.-----------------------
Naval station, Balboa-----------------------------------
Dry-dock, Balboa ---------..--------- ---------
East ferry slip, Pacific entrance-----.----.....--..------
Cable trench, Pacific entrance---------------------
Chagres River gravel service:
Run-of-bank gravel ---------------------------------
Stripping gravel beds.----------------------------------
Total auxiliary dredging -----..----------_ ----------
THIRD LOCKS PROJECT
Bypass channels:
New Gatun Locks, north approach ---..-------- --
New Pedro Miguel Locks, south approach--------------
New Miraflores Locks, north approach ------------------
New Miraflores Locks, south approach -----------------
Total bypass channel dredging --.- - ..---
Auxiliary:
Mindi River diversion channel---------------------------
Miraflores Lake anchorage -------..-----------.-----
Chagres River, loading dock for processed gravel---...---
Chagres River gravel processing service --------------..-
Total auxiliary dredging -- -- ------------....--..
Grand total:
Fiscal year 1942------....--.--- --
Fiscal year 1941 --------- -- ---- -


Earth


Cubic yards
3,300
240,300
10,500


Rock


Cubic yards
6,400
8,500


254,100 14,900


25,400
382, 550
1,100
332,300
36,600
16,900
26,000
553,970
617,800
1,992,620


765,200
377, 600
1, 088, 500
732,900
2,964, 200

19.000
270,000
104,100
2, 236,700
2, 629, 800

7,840, 720
6,082,700


7,400
96,000
10, 200
6,700
10,400
700




131,400


1, 324, 800
286, 000
422, 400
2,033, 200


2, 179,500
1,249,000


I In addition 261,350 cubic yards of Chame sand produced by craneboat Atlas.
2 In addition 125,245 cubic yards of Chame sand produced by craneboat Atlas.


Total


Cubic yards
3,300
246,700
19.000
269,000


32, 800
478, 550
11.,300
339,000
47,000
17,600
26, 000
553,970
617,800
2,124,020


2,090, 000
377,600
1, 374, 500
1,155,300
4,997,400

19,000
270,000
104,100
2, 236,700
2, 629, 800

10,020, 220
2 7,331, 700






4U REPORT OF GOVERNOR OF THE PANAMA CANAL

Dredging opera tioinsare6divided into three major districts: The
Atlantic section, from contour 42 feet below mean sea level in the
Atlaiitic Ocean to Gatun Locks and Dam; the Centrnal section, from
Gatun Lake to Pedro Miguel Locks; the Pacific section, from Pedro
Miguel locks to contour 50 feet below mean sea level in the Pacific
Ocean. Excavationii in these three areas, exclusive of third locks
xwnivation, is Siimm;>riz(d Is follows:

Atlantic Central Pacific Total

Canal prism: Cubic yards Cubic yards Cubic yards Cubic yards
-Jit .. .. 3,300 -------------- 250,800 254,100
Rock------- --------- --- --------- ----- --- 14,900 14,900
Total-------------------- --- 3,300 -------------- 265,700 269,000
Auxliiary
Earth------------------ -- 1,100 -------------- 819,750 820,850
Rock --------------------------- 10,200 -------------- 121,200 131,400
Total --- ---- ------------ -- .----.. 11,300 -------------- 940,950 952,250
Total (exclusive of third locks):
Earth------------------------------- 4.400 -------------- 1,070,550 1,074,950
Rock --------------------- ---------- 10,200 -------------- 136,100 146,300
Grand total:
Fiscal year 1942------------------- 14,600 -------------- 1,206,650 1 1,221,250
Fiscal year 1941 2 -.......... ..... 1,330,200 1,198,400 286,300 1 2,814,900

1 Does not include Chagres River gravel or Chame sand service.
2 In the fiscal year 1941, the Atlantic section was called the Northern District and included Gatun Lake
which is included in the Central section in the table above.

ORDINARY CHANNEL MAINTENANCE-CANAL PRISM DREDGING

IAtlantic Section (Atlantic entrance and Cristobal Harbor).-
Maiintenance dredging in the Atlantic entrance section of the Canal
channel was limited to one-half day, when the dipper dredge Ca' adas
removed 3,300 cubic yards of earth. There was no dredging in either
the Cristobal Inner Harbor or the Cristobal Outer Harbor during the
past fiscal year.
Central Section (Gatun Lake and Gaillard Cut).-There was no
dredging in either Gatun Lake or Gaillard Cut during the past year.
Pacific Sectdin (Pacific entrance, Balboa Harbor and Miraflores
Lake).-The dipper dredge Paraiso and the Derviek Barge No. 157,
using a clamshell bucket, were at work for a total of 20% days on
maintenance of the Pacific entrance of the Canal channel, excavating
a total of 19,000 cubic yards of material. Miaintenanice dredging in
the Miraflores Lake section of the Canal channel was in progress by
the pipeline suction dredge Las Cruces for 9 days during the year
and a total of 246,700 cubic yards of mined rock and earth were
removed. Balboa Harbor maintenance was achi eved by the re-
moval of 32,800 cubic yards of unmined rock and earth by the dipper
dredges Gahinboa, working one day, the P'arai7)1 working 5% days,
and the De rrick Barge No. 157, working 1U days.






REPORT OF GOVERNOR OF THE PANAMA CANAL


AUXILIARY DREDGING-SPECIAL MAINTENANCE PROJECTS
Project No. 1-Ekifvns.ionf No. 2.-Project No. 1 itself consists of
deepening the Pacific entrance channel from Miraflores Locks to the
sea buoys, including the Balboa Inner Harbor, and was begun in
the harbor in July 1924. The purpose of Extension No. 2 of this
main project is to provide a basin for a barge repair and tie-up sta-
tion for dredging division use, thereby releasing the space at dock
No. 13, Balboa, at which similar facilities have heretofore been pro-
vided. Dredging operations on this portion of Project No. 1 were
completed during the past year with total excavation of 512,300
cubic yards for Project No. 1, Extension No. 2. The dipper dredges
Gamboa and Paraiso worked a total of 63 days on this project during
the past year, excavating a total of 478,550 cubic yards of materials.
The Dtilck Barge No. 157 worked 3% days in the Balboa Barge
Repair Slip rehandling 900 cubic yards of the material overcast onto
the bank. There was no other drtedgingi except maintenance on
Project No. 1, Pacific entrance, or Balboa Harbor, during the year.
Project No. 13, GCo'1hi of widening Culebra Reach by 200 feet to the westward. Shore
mining with wagon, tripod, and jackhiininer drills was in progress
from July 1 to October 15 for a total of 107 days. Air Compressor
No. 29 and Grader No. 4 were employed on this project throughout
the entire year. There was no actual dredging or excavation during
the year on this project and at the end of the year, Project No. 13
had been completed to 41.1 percent of the excavation, with 3,229,550
cubic yards of material excavated.
AUXILIARY DREDGING-OTHER PROJECTS
The dipper dredge Paraiso worked 66 days at the Naval Station,
Balboa, removing a total of 339,000 cubic yards of material, 9% days
near the drydock in Balboa Harbor, excavating a total of 47,000
cubic yards, and for 12 days excavating a cable trench, removing
26,000 cubic yards of earth.
THIRD LOCKS DREDGING
The dredging division is charged with the perforniiiice of practically
all of the wet excavation in connection with the construction of the
third locks project. During the year construction dredging was
performed in the various bypass channels and auxiliary third locks
work as follows:
New Gatun Locks bypass channel, north approach.-Dredging on
this project was in progress for a total of 265 days by the dipper
dredges Cascadas, Gamboa, and Paraiso. During this time they ex-





REPORT OF GOVERNOR OF THE PANAMA CANAL


cavated a total of 2,090,000 cubic-yards of material of which 2,069,700
cubic yards were classed as construction and 20,300 cubic yards were
classed as maintenance. Of this material, 1,841,300 cubic yards
were dumped on the east side of Gatun Lake near Gatun fronting
Stilson's Pond and 248,700 cubic yards in West Limon Bay. Sub-
aqueous mining was in progress for 104 days by the drill boat Terrier
No. 2 and shore mining with Star Well and rotary drills was in progress
244 days, during which period 1,042,800 cubic yards of rock were
broken, of which 239,800 cubic yards were subaqueous mining and
803,000 cubic yards were shore mining. Forty-two acres of trees and
brush were cleared in this bypass channel during the year. Total
construction excavation at the end of the fiscal year 1942, on the New
Gatun Locks bypass channel, north approach, amounted to 4,042,600
cubic yards and was 48.7 percent complete with 4,260,800 cubic
yards renainiim to be removed.
New Pedro M ig u cl Locks bypass channel (, so u th approach.-Dredging
on this project was in progress a total of 23 days by the pipe-line
suction dredge Las CrOuc&. This dredge removed 377,600 cubic
yards of construction material composed of silt, stiff clay, and broken
rock, nearly all of which was deposited on the north bank of Caimitillo
Lake. Subaqueous mining was in progress for a total of 57 days by
the drillboat Vulcan, breaking 141,600 cubic yards of rock. Excava-
tion to June 30, 1942, in the New Pedro Miguel Locks bypass channel,
south approach, totaled 377,600 cubic yards and was 49.4 percent
complete, with 387,000 cubic yards remaining to be removed.
New Miraflores Locks bypass channel, north approach.-Dredging
on this project was carried out by the pipe-line suction dredge Las
Cruces and the dipper dredge Cascades. Subaqueous mining was in
progress for 160 days by the drillboat Vulcan, breaking 361,600 cubic
yards of rock. Shore mining with star well and rotary drills was in
progress 201 days, breaking 172,500 cubic yards of rock. The Lae
Cruces, working 84 days in this bypass channel, removed 768,300
cubic yards of earth, most of which was pumped to the north bank of
Caimitillo Lake. The dipper dredge Cascadas, working 91% days in
this area, removed 606,200 cubic yards of material. The total excava-
tion to date on the New Miraflores bypass channel, north approach,
is 1,374,500 cubic yards, and at the end of the fiscal year 1942 was
37.1 percent completed, with 2,330,900 cubic yards of material remain-
ing to be removed.
New Miraflores bypass channel, south approach.-Dredging on this
project, was in progress for a total of 176 days by the dipper dredges
Gamboa and Paraio, removing 1,155,300 cubic yards of material.
Subaqueous mining was in progress for a total of 261% days by the
drillboats Ttrrir No. 2 and Vulcan, breaking 176,000 cubic yards of






REPORT OF GOVERNOR OF THE PANAMA CANAL


rock. Shore mining with star well and rotary drills was in progress
the entire year, breaking 709,200 cubic yards of rock. Eleven acres
were cleared of trees, brush, and grass in the Victoria Dump area and
at the site of the Victoria spillway. This spillway is being constructed
and the spoil dump was being prepared to impound spoil material
from future hydraulic dredging in connection with the New Mira-
flores Locks bypass channel, south approach. Excavation for the
foundation for the new Victoria spillway was 80 percent completed at
the end of the year and while construction material had been hauled
to the site no concrete had been placed by the end of the year. Total
excavation to date in the New Miraflores bypass channel, south
approach, is 2,713,300 cubic yards, and at the end of the fiscal year
1942 the excavation for this bypass channel was 22 percent completed
with 9,643,000 cubic yards of material remaining to be moved.
Auxiliary Third Locks dredging.-Dredging in the New Mindi
Diversion totaled 59 days. Ercar'ator No. 5, mounted on Barge No.
221 and operating as a clamshell dredge, removed 19,000 cubic yards
of earth. The pipe-line suction dredge Las Cruces worked 16 days
in Miraflores Lake removing 270,000 cubic yards of material to pro-
vide additional anchorage space for necessary equipment. This
dredge also worked 4 days at the north bank of the Chagres River
dredging a dock area for a processed gravel plant, excavating a total
of 104,100 cubic yards of earth; and 85% days stripping gravel beds
in the Chagres River for the Third Locks project.
SLIDES
There was no excavation from slides in Gaillard Cut during the
past fiscal year and so total excavation to date from slides remained
at 51,644,300 cubic yards as detailed in last year's annual report.
Slide activity throughout the cut was generally much less than in
previous years. There was slight activity during the month of
September 1941, and sporadic movements during the remainder of
the year, all of which were of little consequence. Daily inspections
and reports were made of all portions of active slide areas fronting the
Canal as well as periodical inspection of the entire surface of all slides.
Drainage conditions were investigated and corrected when possible.
There was no interference with shipping on account of slides during
the year.
SUBSIDIARY DREDGING DIVISION ACTIVITIES
SAND AND GRAVEL
The Gamboa gravel plant shipped 675,376 yards of sand and gravel
during the year; this is practically double the 389,161 cubic yards
shipped last year which was itself an increase of 84 percent of that
678920-46--4





REPORT OF GOVERNOR OF THE PANAMA CANAL


shipped the year before, or the normal output. The continued need
for sand and gravel for the many construction projects on the Canal
Zone accounts for the greatly increased level of output of this plant.
The pipe-line suction dredge Las Cruces and Relay Pump Barge No. 24,
together with the necessary auxiliary equipment were moved through
the railroad bridge at Gamboa to a point approximately 1% miles
above the bridge on December 15, 1941, where the work of replenishing
the Gamboa gravel stock pile continued until April 2, 1942. A total
of 1,171,770 cubic yards of material was dredged in adding 553,970
cubic yards of run-of-bank gravel to the stock pile.
The craneboat Atlas worked 218Y days producing 261,350 cubic
yards of Chame sand which was pumped into barges at Chame Point,
R. P., and delivered to the Supply Department of The Panama Canal
and to two private construction companies.
From April 2, when the production of run-of-bank gravel for the
Gamboa stock pile was completed, until the close of the fiscal year,
the pipe-line suction dredge Las Cruces continued to work in the
Chagres River on the third locks project, stripping gravel beds for
the Third Locks Aggregate Processing Plant and in excavating a
dock area for the Third Locks4Aggregate contractor.
HYACINTH CONTROL AND OTHER ACTIVITIES
The Canal and adjacent waters through Gaillard Cut, Miraflores
Lake, and Gatun Lake (including all dump areas) were patrolled and
the growth of hyacinths kept under control. Log booms at the mouths
of the Chagres and Mandinga Rivers were maintained to prevent
hyacinths, logs, floating islands, and other obstructions from entering
the Canal channel during freshets or spilling at Madden Dam. Dur-
ing the year, periodical inspection trips were made in the Chagres,
Mandinga, Frijoles, and Azules Rivers and along the shores of Barro
Colorado Island, Pena Blanca and Gigante Bays, Dumps Nos. 1 to
14, and Miraflores, Pedro Miguel, and Red Tank Lakes. Weekly
inspection trips were also made of the Canal channel between Gamboa
and Gatun.
It is estimated that 15,917,250 hyacinth plants were destroyed dur-
ing the year and that of these 6,698,500 were sprayed, 4,850,750 were
pulled, and 4,368,000 were removed by cableway. One hundred
forty-five cords of driftwood were also removed by the cableway dur-
ing the year and an additional 128 cords of driftwood were picked up
along the banks of the Chagres River, Mandinga River, Chilibre
River, Cocoli River, Gaillard Cut, Gatun, Miraflores, Pedro Miguel,
and Red Tank Lakes.







REPORT OF GOVERNOR OF THE PANAMA CANAL


EQUIPMENT

Main items of Dredging Division equipment were operated during
the year as shown in the following tabulation:

Third All Reserve
Unit Name Type Locks other Repairs or
Locks work standby

Weeks Weeks Weeks Weeks
Dredge Cascadas ---------- 15-yard dipper------ 35.5 0.1 16.4 0
Gamboa --------- -- do ----------- 18.2 7.8 26.0 0
Paraiso ---------- -----do -------------- 22.1 15.6 14.3 0
Las Cruces---------- 24-inch suction------ 30.3 17.8 3.9 0
Relay barge ---------- No. 24------------ 24-inch ---.....---------- 12.6 1.3 0 38.1
No.3 -------------- 20-inch------------- 0 0 0 52.0
Drillboats -------------- Terrier No. 2------- Steam-------------- 41.6 1.3 9.1 0
Vulcan ------------- Air---------------- 41.6 8.2 2.2 0
Teredo No. 2-------- Steam ---------------0 0 0 (1)
Craneboat --------------- Atlas- ------------- 75 tons------------- 5.2 40.8 2.5 3.5
Floating cranes ---------- Ajax-------------- 250 tons------------- .4 3.0 0 48.6
Hercules------------ -- do----..---------- .9 19.1 0 32.0
Derrick barge--------- No. 157.--------- 40 tons-------------- 3.9 38.1 5.6 4.4
Grader barge -------- No. 4------------- 14-inch pumps----- 0 0 0 52
Air compressor barge---- No. 29 -------. 2,500 C. F. M ------- .9 17.2 0 33.9
Ferryboats ------ Amador ------- 22 cars-------------------- 52 0 0
Roosevelt----------- -----do-------------- -------- 46.8 5.2 0

i Out of commission.

The dredging division also operated 7 large and 4 small tugs,
18 launches, 4 quarterboats, 6 excavators, 10 tractors, 30 star well
drills, 5 rotary drills and a miscellaneous fleet of sand barges, dump
scows, and service lighters during the year in dredging or mining opera-
tions or in auxiliary service.
Included in the equipment listed above are various units of new
equipment acquired during the fiscal year 1942 which were placed in
service on the dates shown below.
Drillboat Thor, hull received January' 15, 1942, machinery
installation by local force not complete as of June 30, 1942.
Small tug Miraflores commissioned August 25, 1941.
Large tug Obispo commissioned January 5, 1942.
Large tug Porto Bello commissioned March 28, 1942.
Excavator No. 5 placed in service October 15, 1941.
Excavator No. 6 placed in service November 8, 1941.
Work launch Catfish placed in service July 9, 1941.
Work launch Porpoise placed in service September 4, 1941.
Launch Pike placed in service September 1941.
Launch Diana II placed in service June 3, 1942.
Launch Pilot Fish placed ini service June 6, 1942.
Tractor No. 4 placed in service October 28, 1941.
Tractor No. 7 placed in service October 31, 1941.
Tractor No. 8 placed in service October 31, 1941.
Tractor No. 9 placed in service December 15, 1941.
Tractor No. 10 placed in service December 31, 1941.





REPORT OF GOVERNOR OF THE PANAMA CANAL


Two truck-mounted rotary drills were acquired and have been in
service since February 1942.

FERRY SERVICE

On May 20, 1942, the new bridge at Miraflores was opened, thus
providing highway connections across the Canal for the first time. As
the ferries had been the only means of crossing the Canal, their
importance and traffic had greatly increased over the past several
years. Ferry traffic had been at full capacity for some time, but after
opening the bridge it dropped off sharply, and the auxiliary ferry
across Miraflores Lake was discontinued 2 weeks after opening of
the bridge.
Thatcher Ferry.-Ferry service across the Pacific entrance of the
Canal, connecting Balbow and Panania City on the east bank of the
Canal with Thatcher Highway on the west bank, was operated on a
continuous 24-hour basis throughout the year.
In the following table are shown the more important statistics
relative to operation of the Thaitcheir Ferry for the past 2 fiscal years

1942 1941
Single trips made by the 2 ferries ------------------------------------------ 61,218 60,933
Vehicles carried:
Panama Canal vehicles-------------------------------- ---- ----.----- 33,617 39,289
U. S. Army vehicles--------------------------------------------------- 148,210 110,256
Commercial trucks ---------------------------------------------------- 206,184 151,718
Commercial passenger cars -------------------------------------------- 137,366 132,016
Private cars------------------------------------------------------------ 466,821 467,073
Total vehicles carried----------- ----------- ------------------------ 992,198 900,352
Total passengers carried --------- -----------------------------------. 5,943,845 4,891,812


Ifrafiores Lake Ferry.-The tug and barge ferry service between
the east and west banks of Miraflores Lake was in operation from the
1st of July 1941, until it was discontinued at 3:45 p. m. on June 3, 1942.
This ferry service had been inaugurated on August 12, 1940, and so
was in use for approximately 22 months. Originally, single ferry
service was provided on a half-hourly schedule, but starting'August
25, ferries were placed in service with a 15-minute schedule from each
side. The Miraflores Ferry operated on a 3-watch basis on 133 days
during the year, supplementing the Thatcher Ferry while it was closed
for repairs or dredging and mining operations and on 49 days to pro-
vide 24-hour service for the United States Army district engineer.
Presented for comparison with the foregoing table are similar statistics
for the Miraflores Lake Ferry, covering the complete life of this ferry
from August 12, 1940, to June 3, 1942.






REPORT OF GOVERNOR OF THE PANAMA CANAL


Fiscal year
1942 1941

Single trips made------------- ----------------------- 37,608 14,319
Vehicles carried:
Panama Canal vehicles------------------------------------------------- 48,196 30,550
U. S. Army vehicles--------------------------------------------------- 156,287 15,797
Commercial trucks------------------------------------------------------ 56,295 12,876
Commercial passenger cars---------------------------------------------- 18,438 7,479
Private cars...----------------------------------------------------------- 142,752 11,105
Total vehicles carried --------------------------- 421,968 77,807
Total passengers carried -------------------------------- 1,499,847 395,763


THIRD LOCKS PROJECT
AUTHORIZATION

The third locks Project, providing for the improvement and
enlargement of the capacity of the Panama Canal in the interest of
defense and interoceanic commerce at a cost not to exceed $277,000,-
000 was authorized by act of Congress, Public No. 391 Seventy-sixth
Congress first session, approved August 11, 1939. The project in-
volves the design and construction of a new set of locks at some
distance from the existing locks, the excavation of approach channels
to connect the new locks with the existing Canal, and the design and
construction of appurtenant works.

APPROPRIATIONS

The War Departlment. Civil Appropriation Act for 1941 provided
$15,000,000 for the third locks project and, in addition, empowered
the Governor of The Panama Canal, when authorized by the Secretary
of War, to enter into contracts prior to July 1, 1941, for or on account
of the construction of the project, to an amount not in excess of
$99,000,000. The War Department Civil Appropriation Act for
1942, approved May 23, 1941, provided $34,932,000 for construction
of additional facilities to increase the capacity of the Panama Canal,
and in addition, empowered the Governor, when authorized by the
Secretary of War, to enter into contracts prior to July 1, 1942, to an
amount not in excess of $79,000,000. Pursuant thereto, authority
to enter into contracts to the extent of $79,000,000 was requested by
the Governor on June 2, 1941, and was approved by the Secretary of
War, June 13, 1941.
The Third Supplemental National Defense Appropriation Act,
1942, approved December 17, 1941, making supplemental appropria-
tions for the national defense for the fiscal years ending June 30, 1942,
and June 30, 1943, provided an additional contract authorization of
$104,000,000 for those fiscal years. Pursuant thereto, authority to





REPORT OF GOVERNOR OF THE PANAMA CANAL


enter into contracts to the extent of $104,000,000 was requested by
the Chief of Office of The Panama Canal on January 24, 1942, and
was approved by the Secretary of War January 27, 1942.
The War Department Civil Appropriation Act, approved April 28,
1942, provided $56,826,800 for construction of additional facilities
for the improvement and enlargement of the capacity of the Panama
Canal.
ORGANIZATION
The design and construction of the third locks project were as-
signed to the special engineering division which was established
August 15, 1940, by the consolidation of the former special construc-
tion division and special engineering division. The division de-
velops designs and conducts investigations and research relative
thereto; prepares plans and specifications for the work; prepares
contracts and supervises their prosecution; and plans for, supervises,
and coordinates the work of all Panama Canal and contract forces
engaged on the third locks project and appurtenant, works.
Recruitment of personnel for the project continued until June 1942
when the construction program for the third locks project was modi-
fied in compliance with a directive of the Secretary of War, dated
May 23, 1942. At the close of the fiscal year gold personnel in the
special engineering division numbered 884.
Three new towns developed to provide for Canal and contractor's
employees engaged on the project were substantially complete at the
end of the fiscal year. The new Pacific side towns are Diablo Heights,
about 2 miles north of Balboa Heights, and Cocoli, west of the Canal,
and approximately opposite Diablo Heights. The new Atlantic
side town, Margarita, is about 2% miles southeast of Cristobal.
Native laborers on the Atlantic side are housed in a special camp
adjacent to the existing town of Gatun. Additional quarters were
also constructed at Gamboa to house the increase in personnel re-
quired for third locks dredging. Each of the new towns is complete
with a school, clubhouse, post office, commissary, fire station, dis-
pensary, recreational facilities, etc. Quarters for Canal employees
were constructed by The Panama Canal, except for 1 group of 35
dwellings at Cocoli and 2 dwellings at Gamboa which are being con-
structed under contract. Contractors are required to construct
quarters for their employees where housing facilities are not available.
DESIGNS-PLANS-SPECIFICATIONS
Designs for the new locks structures begun prior to the beginning
of the current fiscal year were vigorously prosecuted and many were
completed during the year. Subsurfaced explorations by means of
borings, test pits, and tunnels; hydraulic laboratory experimental
work; mechanical-electrical laboratory experimental work; and in-






REPORT OF GOVERNOR OF THE PANAMA CANAL


vestigations and studies on all aspects of the lock design continued.
Data previously collected and information from earlier studies per-
mitted the locations to be fixed, and designs and specifications pre-
pared and the contracts awarded for the excavation of the locks
sites during the previous fiscal year. The excavation specifications
include related appurtenant work, such as grading for highways and
railways and excavation of major drainage canals. Panama Canal
forces continued work on relocations and other appurtenant work
previously begun. During the current fiscal year various revisions
and alterations were made in the design of the new movable, combined
railway and highway bridge constructed over the existing Miraflores
Locks. The substructure of the bridge was constructed by Panama
Canal forces and the superstructure by contract.
In addition, hydraulic research, tests, investigations, and studies
continued on various types and kinds of equipment and machinery
to determine the most suitable for use in the new locks. Operating
records of the existing locks were examined and qualified authorities
consulted for the purpose of developing the optimum lock design.
Consulting engineers visited the project on numerous occasions and
consulted with the third locks designing engineers. A materials
testing laboratory established during the previous fiscal year at
Miraflores continued to test concrete and other materials proposed
for third locks use and to test the materials actually used in con-
struction. A special laboratory previously established at Miraflores
continued to make tests to determine the most effective means of
protecting the new locks against aerial bombing. During the fiscal
year a mechanical-electrical laboratory was completed and a series
of tests were begun on various types of mechanical and electrical
equipment to determine the type most suitable for the new locks.
By the end of the fiscal year designs of the construction of the new
locks were completed and contract plans and specifications issued.
Designs for the miter gates, valves and bulkheads were completed and
contract plans and specifications issued. Designs for the processing
of concrete aggregates were completed and contract plans and specifica-
tions issued. Specifications for the procurement of the portland
cement required were completed and issued. Designs for emergency
power plants were completed and contract plans and specifications
issued. Design for frequency changes for converting the power
generated by the emergency power plants were completed and contract
plans and specifications issued.
Third locks plans provide for lifts equal in height to those of the
existing locks; however, the new locks will be in series of single cham-
bers only, instead of parallel double chambers, as are the existing
locks. As a result of the design studies it was determined that the
new chambers would each be 1,200 feet long, 140 feet wide, and of a





REPORT OF GOVERNOR OF THE PANAMA CANAL


depth sufficient to permit the passage of ships having a draft of 45
feet in sea water. The approach guide walls will be symmetrical
about the locks center line, 1,500 feet long, and narrowing from 350
feet wide at the open end to 140 feet, the lock width, at the lock
entrance.
The new Gatun locks will be approximately 4,000 feet east of the
existing locks. The over-all length of the three lock chambers and
the north and south guide walls will be approximately 7,795 feet.
The north approach channel to the new Gatun locks will join the
canal just south of Limon Bay and will be approximately 7,511 feet
long. The southerly end of the new Gatun locks guide walls will
extend almost to Gatun Lake, and will connect with the lake through
a channel 240 feet long. The new Miraflores locks will be located
between 3,000 and 4,000 feet south of the existing Miraflores locks,
and the over-all length of the two chambers and approach guide
walls will be approximately 6,490 feet. The Mireflores south approach
channel will be about 8,090 feet long and will connect with the exist-
ing canal about opposite Balboa Harbor. A 5,680-foot channel will
extend from the upper end of these new locks through Miraflores
Lake, connecting with the existing channel in the lake, and continu-
ing to the lower end of the new Pedro Miguel lock. The latter lock
will be about 1,800 feet southwesterly of the existing Pedro Miguel
locks. Its over-all length, with approach guide walls, will be 5,185
feet and the north end will connect with the canal through a 7,845-foot
north approach channel. The total length of the third locks, in-
cluding the locks themselves, approach sections, and connecting
channels will be approximately 10.24 miles.
As construction of the new Gatun locks will make an island of the
site of the present town of Gatun and will sever the main line of the
Panama Railroad at two points, appurtenant work will include the
relocation of the railroad so that the main line will be continuous
east of the new locks site. The road network in the area will also be
disrupted by the new locks, and extensive road and highway reloca-
tion will be necessary in connection with the project. Rail and high-
way connections to Gatun will be maintained during the construction
period by crossing the north land plug separating the "wet" and "dry"
land excavation sites. Later, a movable rail and highway bridge will
provide access to Gatun when the north land plug is removed at the
completion of construction.
On the Pacific side railway and highway access to the west side of
the existing locks will be maintained by means of the new movable
bridge constructed across the existing Miraflores locks. As the land
between the new locks and existing locks will become an island upon
completion of the new Miraflores locks, a second bridge will also be
constructed across the new locks to provide direct access to the






REPORT OF GOVERNOR OF THE PANAMA CANAL


mainland west of the canal. After crossing the canal at Miraflores,
the railroad vill be extended northward on the west shore of the canal
to the new Pedro Miguel lock site.
Planning for all phases of locks construction and appurtenant work,
preparation of construction schedules and procurement of supplies,
etc., continued throughout the year for the purpose of coordinating
current and future work. Such planning includes development of
schedules for the furnishing of power and communications to con-
tractors, the allocation of necessary working areas, the determination
of suitable spoil areas, the relocation of all utilities in the new locks
areas, the enlargement of existing Canal facilities, and the removal
and relocation of numerous buildings.
Studies of possible sources of aggregate supply were completed, and
it was decided that aggregate for the new locks would come mainly
from the gravel beds in the Chagres River above Gamboa and would
be augmented by crushed rock produced from the new locks excava-
tion at Miraflores where hard basalt is present. On September 29,
1941, a contract was awarded for the processing and loading of
Chagres River gravel and for the crushiniig, processing, and loading
of Miraflores rock. Cement requirement schedules were developed
and two contracts were awarded on August 25, 1941, to supply
6,000,000 barrels of portland cement.
CONSTRUCTION
General.-Excavation cost studies indicated that it was desirable
to excavate the locks sites, the Gatun south approach channel and
Pedro Miguel north approach chaniinel by dry-land methods; and that
the new Gatun locks north approach, the new Miraflores locks south
approach, the new Miraflores locks north approach, and the south
approach to the new Pedro Miguel locks could be excavated advan-
tageously by floating equipment. It was decided to augment the
dredging equipment owned by The Panama Canal with new plant in
order that the wet excavation of approach channels, and the subse-
quent removal of the land plugs, left in place between the wet and
dry excavation sites, would be accomplished by existing Panama
Canal forces. Excavation work "in the dry" and major heavy ap-
purtenant work, and locks construction would be by contract. Ap-
purtenant work, such as building construction, utility relocation, track
laying, etc., for which most necessary plant and working organiza-
tion were already available, would be done by Panama Canal forces,
as the various divisions were familiar with and readily available to
carry on this work. Excavation and locks construction would be by
separate contracts to expedite completion of the project, as excava-
tion could begin on the basis of preliminary design while detailed
designs, essential for the construction contract, were continued. Con-





REPORT OF GOVERNOR OF THE PANAMA CANAL


struction plans would be completed and contracts arranged so that
construction coIuld begin as soon as part of the locks sites were com-
pletely excavated.
Atlantic area-Panama Canal forces.-During the fiscal year the
relocated( Fort Davis area, the motor pool area, the consolidated gaso-
line station, and the Post Exchange motor pool, begun previously,
were completely. In addition, extensive relocation of power, light,
sewer, and water lines were completed. Also, the construction of two
500,000-gallon elevated water storage tanks, the construction of a
new area office building, the relocation of various roads and utilities in
the Fort Davis and Gatun areas were completed.
Dredging of the channel which will connect the existing canal with
the north end of the new locks, begun by The Panama Canal forces in
October 1940 continued, and on June 30, 1942, 4,042,600 cubic yards
of material had been removed from this new channel.
Atlantic area-contract work.-Throughout the current fiscal year
the Martin Wunderlich Co. and Okes Construction Co. of St. Paul,
Minn., excavation contractors for the new Gatun locks, continued the
vigorous prosecution of their contract. Subsequent to the award of the
contract on January 6, 1941, and due to certain necessary modifica-
tions in the contract, four change orders were executed increasing the
total estimated amount of the contract from $8,475,100 to $10,918,-
042.92. Work under the contract includes the following estimated
quantities: 13,432,000 cubic yards of excavation from the locks sites,
134,800 cubic yards from the drainage canal, and 560,000 cubic yards
of grading for the railroad relocation, plus other minor items. The
scheduled completion dates for work under the contract as modified by
change order No. 5 dated June 30, 1942, are as follows: Grading for
railroad relocation between approximate stations 219 and 427 and the
construction of the concrete footings for the track span towers between
approximate stations 329 and 422 on or before July 31, 1942; and com-
pletion of all other work before September 9, 1943. By the end of the
fiscal year, the contractor had excavated a total of 10,005,650 cubic
yards from the locks sites, 112,554 cubic yards from the drainage canal,
graded 544,021 cubic yards for the railroad( relocation, and was pro-
ceeding with othlier work under the contract. For the excavation of
the north end of the site the contractor subcontracted with the Stern-
berg Dredging Co. for the excavation of approximately 2,000,000
cubic yards of material. This excavation was done by means of a
22-inch hydraulic dredge located in an artificially constructed pool
and was completed on June 11, 1942. As of June 20, contractor's
a Irn'ings totaled( $7,945,526 equiialling 72.4 percent of the estimated
contract cost. Contractorss, including subcontractorss, personnel
numbered 291 gold and 238 silver employees.






REPORT OF GOVERNOR OF THE PANAMA CANAL


Advertisement for bids for the construction of the new Gatun locks
was issued on November 1, 1941. Three bids were offered and subse-
quent to the opening of bids in Washington, D. C., on January 6, 1942,
the contract was awarded on February 23, 1942, to Rosoff Panama
Construction Co., Inc., 50 East Forty-second Street, New York,'N. Y.,
in the amount of $45,705,000. Notice to proceedil under the contract
was received by the contractor on February 24, 1942. During the
remainder of the year, the contractor's operations were limited to the
mobilization of personnel and plant, and the procurement of addi-
tional equipment. Pursuant to a directive issued by the Secretary of
War modifying the third locks construction program the contract was
terminated on May 25, 1942, for the convenience of the Government.
Proceedings for the settlement of the contract were progressing
satisfactorily at the close of the fiscal year.
Pacific area-P(uaiv, Canal forces.-During the fiscal year the
relocations of water, power, and communications lines were con-
tinued. The construction of the substructure for the Miraflores
movable bridge and of the east approach viaduct were completed on
May 5, 1942, except for miscellaneous electrical installations and
drainage corrections.
Dredging of the new Miraflores locks south approach channel and
north approach channel continued and at the end of the year totaled
2,713,300 cubic yards, and 1,374,500 cubic yards, respectively. In the
south approach to new Pedro Miguel lock dredging totaled 377,600
cubic yards at the end of the year.
Pacific area-contract work.-The fabrication and erection of the
Miraflores bridge superstructure, begun prior to the current fiscal
year, were carried to completion under contract by the Pittsburgh-
Des Moines Steel Co. On May 20, 1942, the bridge was opened to
traffic and on June 2, 1942, the bridge was officially accepted by the
Government. The contractor's earnings as of June 20, 1942, were
$1,118,769.49.
Throughout the current fiscal year Panama Constructors, Inc., ol
White Plains, N. Y., contractors for the e(xcava t in of the new Pedro
Miguel and new Miraflores locks structures, Pedro Miguel north
approach channel and appurtenant works continued the vigorous
prosecution of their contract, which was awarded April 24, 1941.
Work under the contract includes the following estimated quantities:
27,944,000 cubic yards of excavation from the locks sites and north
approach channel, 690,000 cubic yards of excavation and grading for
railway and highway relocation, the crushing and stockpiling of
2,150,000 cubic yards of rock for subsequent use as concrete aggre-
gate, excavation of 66,500 cubic yards for diversion channels, the
construction of a 250-foot concrete railroad and highway bridge
across an arm of Miraflores Lake, and other minor related items. At





REPORT OF GOVERNOR OF THE PANAMA CANAL


the end of the fiscal year the contractor had excavated a total of
4, 181, 312 cubic yards from the locks sites, 372,416 cubic yards of
excavation and grading for railway and highway relocation, crushed
and stockpiled 94,134 cubic yards of rock, excavated 39,849 cubic
yards from the diversion channels, and substantially completed con-
struction of the railway and highway bridge. As of June 30, con-
tractor's earnings totaled $3,616,817.87 equalling 16.12 percent of the
estimated contract costs. Personnel of the contractor and his sub-
contractors numbered 395 gold and 395 silver employees. Pursuant
to the directive issued by the Secretary of War modifying the third
locks construction program an order was issued on May 26, 1942,
suspending all work in the new Pedro Miguel lock area, and Pedro
Miguel north approach channel. At the end of the year preparation
of a change order was in progress deleting from the contract. suspended
work in the new Pedro Miguel lock area, and also deleting a major
portion of the class A excavation north of station 126.00 in the new
Miraflores locks area.
Advertisement of bids for the processing of concrete aggregates
were issued on July 10, 1941. When bids were opened in Washington,
D. C., on September 10, 1941, the lowest of the three bids received
was submitted by Nevada Constructors, Inc., of Las Vegas, Nev., to
whom a contract totaling $6,880,800 was awarded on September 29,
1941. Work under this contract included processing of 9,000,000
tons of Chagres River aggregate, and loading 7,200,000 tons of this
aggregate, processing 2,500,000 tons of stockpiled rock at Miraflores
and loading 740,000 tons of rock aggregate. During the fiscal year
the contractor's operations have been limited to the procurement of
plant and performance of preparatory work in connection with erection
of the processing plants at Gamboa and Cocoli. Advance payments
in the amount of $700,000 for such work were made during the fiscal
year. No aggregates were processed or delivered; consequently, no
payments were made on contract items. Supplemental Agreement
No. 1 to the contract, providing for reimbursement to the contractor
for war damage and delays and providing for termination of the
contract for the convenience of the Government was approved on
May 14, 1942. Pursuant to the directive issued by the Secretary of
War modifying the third locks construction program, notice of termi-
nation of the contract was given to and received by the contractor on
June 1, 1942. The termination provided for continuance of the erec-
tion of the plant to substantial completion.
In compliance with the directive issued by the Secretary of War to
modify the third locks construction program all bids received on April
21, 1942, for the construction of the new Miraflores locks, new Pedro
Miguel lock and appurtenant work were rejected on May 26, 1942.
Other contracts.-Advertisements for bids for the construction of
contract quarters at Cocoli were issued on November 5, 1941. When






REPORT OF GOVERNOR OF THE PANAMAA CANAL


bids were opened in Diablo Heights, C. Z., on November 19, 1941,
the lowest of the five bids received was submitted by the MacDonald
Construction Co. of St. Louis, Mo., to whom a contract in the amount
of $606,386 was awarded on November 25, 1941. Work under this
contract includes the construction of 3 one-family cottages; 25 four-
family houses; 7 two-family cottages; and 2 forty-room bachelor
quarters. Due to certain necessary modifications in the contract, 3
change orders were prepared and issued which increased the total
estimated contract amount to $614,186.00. During the year the con-
tractor completed 18 four-family houses, and the construction of all
other units was well advanced with the contract being approximately
87 percent complete at the end of the year. Contractors' earnings as
of May 15, were $115,850.50. Personnel of the contractor and his
subcontractor numbered 30 gold and 118 silver employees at the end
of the year.
Advertisements for bids for the furnishing of 6,000,000 barrels of
portland cement were issued on June 4, 1941. Subsequent to the
opening of bids in Washington, D. C., on August 11, 1941, two con-
tracts were awarded on August 25, 1941: One contract providing for
the furnishing of 4,000,000 barrels was awarded to the Trinity Port-
hmlnd Cement Co. of Chicago, Ill., in the amount of $5,400,000; and
a second d contract providing for the furniishing of 2,000,000 barrels
was awarded to the Lone Star Cement Corp. of New York, N. Y.,
in the amount of $2,790,000. During the fiscal year the operations
of both contractors have been limited to mill and plant expansions
and the procurement of additional equipment for the prosecution of
their contracts. In compliance with the directive issued by the
Secretary of War modifying the third locks construction program,
notice of suspension of the contracts were given to and received by
both contractors on May 26, 1942.
Advertisements for bids for furnishing emergency power plants
were issued on November 1, 1941. Subsequent to the opening of
bids in Washington, D. C., on November 15, 1941, a contract was
awarded on November 29, 1941, to the Busch-Sulzer Diesel Engine
Co. of St. Louis, Mo., in the amount of $1,661,926.00. Work under
the contract includes the fabrication and assembly of seven Diesel
engine generating units complete with accessories, one three-unit
plant auxiliary, two two-unit plant auxiliaries, and one set of spare
parts. During the fiscal year the contractor was engaged in shop
fabrication and assembly of the equipment which was approximately
50 percent complete at the end of the year. No equipment was
delivered to the Isthmus during the year but partial payments were
made in the amount of $457,578.
Advertisements for bids for furnishing miter gates, valves and bulk-
heads were issued on December 20, 1941. Upon the opening of bids
in Washington, D. C., on March 3, 1942, only one bid was received.





REPORT OF GOVERNOR OE THE PANAMA CANAL


Subsequently this bid was rejected and a contrnct was negotiated
with the Trendwell Construction Co. of Midland, Pa., and awarded
on March 12, 1942, in the amount of $15,991,498.40. Work under
the ontrnact included fabrication of 19 right-hand leaves and 19 left-
hand lives for the 84.5-foot (service) miter gates, 2 right-hand leaves
and 2 left-hand leaves for the 52.5-foot (unwatering) miter gates, 1
right-hmnd leaf and 1 left-hand leaf for the 71.0-foot (unwatering)
miter gate, 44 lock culvert valves, 38 hiteral valves, 40 lock culvert
bulkheads, 12 Iternil bulkheads, 20 emergency dam culvert valves,
30 emergency dam bulkheads, and various minor items required there-
for. During the year the contractor's operations were limited to the
procurement of additional plant and the acquisition of land for plant
expainsionis. Advance paynients in the amount of $168,500 were
made but no payments were nimade for the performance of contract
work. In compliance with the directive issued by the Secretary of
War for the modification of the third locks construction program,
notice of termination of the contract was given to and received by the
contractor on May 25, 1942.
Advertisements for bids for furnishing frequency changers were
issued on February 5, 1942. Subsequent to the opening of bids in
Washington, D. C., on March 6, 1942, a contract was awarded on
March 16, 1942, to the General Electric Co. of Schenectady, N. Y.,
in the amount of $456,723. Work under the contract includes the
fabrication and assembly of three 6,000-kilowatt frequency changer
units, and one lot of spare parts. During the fiscal year the contractor
was engaged in shop design, fabrication and assembly of equipment;
however, neither deliveries under the contract nor payments thereon
were made.
MODIFICATION
Authority.-On May 23, 1942, the Secretary of War issued a direc-
tive to the Governor that certain modifications be made in the third
locks construction program with a view to bringing the construction
of the project into closer conformity with the over-all war program.
On May 25, 1942, the Governor, pursuant to the directive of the Secre-
tary of War, issued instructions that the construction program of the
third locks project be modified. In accordance with the above instruc-
tions the following nimodifications were made:
Construction sii .pwhnd l .-The contract for the construction of the
new Gatun locks awarded to the Rosoff Panama Construction Co.,
Inc., on February 23, 1942, was terminated on May 25, 1942. At
the end of the year demobilization of plant, disposition of equipment
and materials already required, and proceedings for the final settle-
ment of this contract were well under way.
Bids received on April 21, 1942, for the construction of the new
Miraflores locks and new Pedro Miguel lock under schedule No. 6100
were rejected on May 26, 1942, and no contract was awarded.






REPORT OF GOVERNOR OF THE PANAMA CANAL


The contract for furnishing miter gates, valves, and bulkheads
awarded to the Treadwell Construction Co. on March 12, 1942, was
terminated on May 25, 1942, and proceedings for the final settlement
of this contract were under way at the end of the year.
The Nevada Constructors, Inc., who were awarded the contract for
processing concrete aggregate on September 29, 1941, were given
preliminary notice of termination of their contract on May 25, 1942,
and on June 1, 1942, were given formal notice of the termination of
this contract upon completion of the erection of the Cliagres River
and Miraflores aggregate processing plants. At the end of the year
work on docks and other parts subject to deterioration was discon-
tinued, and the disposition of part of the contractor's equip)enwnt, was
begun. Also, work being done in connection with the contract by
Paii-ina Canal forces on the alternitions at Gamboa Bridge was dis-
continued on June 2, 1942, and the removal of overburden from the
aggregate deposit in the Chngries River b6d was discontinued on
June 30, 1942.
The contracts awarded to the Trinity Portland Cement Co. and
the Lone Star Cement Corp. on August 25, 1941, for furnishing
6,000,000 barrels of portland cement were suspended on May 26, 1942.
At the end of the year proceedings for the final settlement of these
contracts were under way.
Relocations work deferred indefinitely included the construction of
the new Gatun Railroad station; power and telephone line relocations
in the new Miraflores and Pedro Miguel locks construction area;
and the relocation of Borinquen Highway through the new Pedro
Miguel construction area.
Construction modified.-The contract for excavation of the new
Gatun locks awarded to the Martin Wunderlich Co. and Okes Con-
struction Co. on January 6, 1941, is being carried to completion, the
only modification being a 265-foot increase in the width of the south
plug.
The contract for excavation of the new Miraflores locks and new
Pedro Miguel lock awarded to the Panama Constructors, Inc., on
April 24, 1941, was modified as follows: On May 26, 1942, all work in
the Pedro Miguel area and Pedro Miguel north approach was sus-
pended except for necessary remedial work to provide adequate drain-
age; on June 3, 1942, excavation work in the Mirniflores area north of
approximately Station 126+00 was suspended; on June 11, 1942,
the Governor approved the modification of this contract including a
major portion of the class A excavation north of Station 126+00
previously suspended; the remaining contract excavation at Miraflores
and the major part of the railroad and highway grading will be carried
to completion. A change order to the contract deleting the suspended
work was under preparation at the end of the year.





REPORT OF GOVERNOR OF THE PANAMA CANAL


Dredging operations are being continued on a low priority basis as
follows: The new Gatun locks north approach is being continued but
the south plug in the south approach will not be removed; the north
and south approaches to the new Mirnflores locks are being continued
on a modified schedule; the south approach to the new Pedro Miguel
lock is being continued on a modified(l schedule; rental of the new
28-inch suction dredge Mlindi, niienring completion under contract at
Baltimore, Md., is being negotiated with the United States Engineer
Department; and all other work is being continued on a low priority
basis with available equipment.
Construction continued.-The contract for the fabrication and erec-
tion of the Miraflores bridge superstructure awarded to the Pitts-
burgh-Des Moines Steel Co. on March 22, 1941, was carried to com-
pletion and accepted by the Government on June 2, 1942.
The contract for furnishing engines and generators for the emergency
power plants awarded to the Busch-Sulzer Bros. Diesel Engine Co.
on November 29, 1941, was continued without change in priority in
order to provide essentials stand-by power for the Panama Canal during
the present emergency.
The contract for furnishing frequency changers for the emergency
power plants awarded to the General Electric Co. on March 16, 1942,
continued without modification or change in priority in order to
convert the 60-cycle current to be furnished by the new generating
units to 25-cycle current carried in the Panama Canal power system.
The supply contracts for procurement of necessary piping and acces-
sories for the emergency power plants continued without modification.
The contract for construction of contract quarters at Cocoli, C. Z.,
awarded to the MacDonald Construction Co., on November 25, 1941,
continued without modification.
Relocation work considered essential and continued without
modification includes: Radio Range Stations at Fort Davis; Panama
Railroad mainline, 44-kilovolt transmission line and signal cables
from the Plug Crossover to Quebrancha; Mindi Dock construction;
construction and resurfacing of Bruja Road and drainage structures
in the new Miraflores locks construction area; and minor items for the
completion of Fort Davis utilities.
Design.-The design of all major features of the third locks project,
including preparation of contract plans and specifications, in readiness
for the resumption of the construction schedule, is being carried to
completion with the existing design organization.
Personnel.-A personnel advisory board was activated to determine
the personnel requirements under the modified program and to formu-
late a policy regarding the release of personnel. In accordance with
the recommendations of this board, the release of employees due to
modification was begun in June 1942.











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 enter-
prises include those sections which are engaged in the supplying of
fuel, provisions, ship chandlery, and repairs to vessels; the sale of
foods, clothing, and other essentials to canal and railroad employees;
the handling of cargo and allied operations; and the operation and
management of the Panama Railroad and of the steamship line
operating between New York and the Isthmus.
The canal and the railroad are separate organizations, but the
administration of both organizations is vested in the Governor of The
Panama Canal, who is also president of the Panama Railroad Co.
PANAMA CANAL BUSINESS OPERATIONS
Business operations of The Panama Canal are conducted separately
from operating activities pertaining directly to the transiting of
vessels, and the government of the Canal Zone. The annual appro-
priation acts for The Panama Canal authorize for expenditure and
reinvestment all moneys received from the conduct of auxiliary busi-
ness activities with the proviso that any net profit derived from such
business activities shall annually be covered 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 charge against business operations
a fixed capital charge of 3 percent (with some minor variations) as
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
is in effect a reimbursement to the United States Treasury for interest
paid by it to holders of United States bonds. The investment in
business activities totaled $39,356,359.95 at the beginning of the fiscal
year, and $44,027,783.60 at the end (tables 4 and 5, sec. V). The
capital charge for the fiscal year 1942 was $934,094.06 (table 20,
sec. V). The net revenues lacked $199,628.22 of equaling the capital
charge for fiscal year 1942.
(;7%921u--46 -- 5 59






60 REPORT OF GOVERNOR OF THE PANAMA CANAL

MECHANICAL AND MARINE WORK

During the past, year, in particular since the entry of the United
States into the war in December 1941 there has been a very rapid
expansion in the work of the mechanical division of The Panama
Canal. This increase has been principally in marine work for the
Navy, as indicated by the table below. There has also been a large
increase in railroad work for the Pananma Railroad, due to the great
volume of freight now being hauled. The large increase in marine
work has entailed a corresponding increase in personnel and in plant,
both of which were expanding rapidly at the end of the fiscal year.
Normally, work done for the divisions of The Panama Canal organiza-
tion accounts for the bulk of the load of the mechanical division,
but this has declined by one-third from the peak load of 2 years ago,
and during the past year work for The Panama Canal accounted for
only 35 parvvnt of the total work load. The following table shows
the source and class of work performed during the past 2 fiscal years:

Gross revenue-class and source

Fiscal year Percent of Fiscal year Percent of
1942 total 1941 total

Class:
Marine ----------------- $4,695,585 57.8 $2,120,423 40.4
Railroad----- ---------------------------- 1,165,533 14.3 660,425 12.6
Fabricated stock. --------------------------- 402,173 5.0 393,160 7.5
Sundries--------------------------------- 1,861,518 22.9 2,071,450 39.5
Total---.------------------------------ 8,124,809 100.0 5,245,458 100.0
Origin:
Panama Canal---------------------------- 2,854,599 35.1 3,060,559 58.3
Panama Railroad------------..------. 1,251,931 15.4 706,421 13.5
Other United States departments ---------- 3,323,585 40.9 830,762 15.8
Outside interests---. .--------.-------- -------- 694,694 8.6 647,716 12.4
Total------------------------------ 8,124,809 100.0 5,245,458 100.0

Operating expenses for the fiscal year totaled $8,077,075, leaving a
net revenue from operations of $47,734.
The marine work listed above includes construction of new vessels
for the Canal and overhaul of vessels for the Canal, the United States
Navy, and other departments of the United States Government, as
well as merchant ship repairs.
DRYDOCKS
During the year 185 drydockings were made at the Balboa and
Cristobal drydocks, further details of which are given below:

Vessels belonging to drydok drydockb

Panama Canal divisions --------------------------------------------------------- 24 4
U. S. Navy .-- --- .--.-------. --- .------------ ---- -------------- .------ 51 38
U.S. Army--....--- .------------ .---------. ---- -- ..- ..------ 30 9
Panama Railroad Co----------------------------------------------------------- ------------ 1
Outside interests-----.---------------------------------------------------------- 17 11
Total... ----- -----------------------------------..-------.----------- 122 63





REPORT OF GOVERNOR OF THE PANAMA CANAL


The Balboa drydock was unoccupied only 10 days during the year,
while the Cristobal drydock was unoccupied 22 days. In the fiscal
year 1941 the Balboa drydock was unoccupied only 6 days and the
Cristobal drydock 72 days.

ELECTRICAL INSTALLATION AND REPAIR WORK
The principal activities of the electrical division are: The operation
and maintenance of the power system; the operation and maintenance
of telephone, telegraph, electric clock, fire alarm, printing 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 The Panama Canal and other
Government agencies, or by vessels undergoing repairs at the Canal
terminals. Following is a comparison of the various expenditures of
the electrical division for the past 2 fiscal years:

Expenditures 1942 1941
Maintenance and operation of power system ------------------------------- $1,265,905 $840,682
Construction and maintenance of electric work.------------------------------ 4,627, 231 3,426,523
Maintenance and operations of telephones----------------------------------- 194,031 168,906
Maintenance and operations of railway signals ---------------------------- 46,848 47,940
Total------------------------------------------ --------------------- 6,134,015 4,484,051

Details of the actual construction and maintenance performed for
the power system are given on page 40 of this report, under the
gent-iral heading of Canal operation, while operating statistics of the
telephone system are covered on page 87 under the operation of the
Panama Railroad Co. The total of $6,134,015.52 shown above for
gross expendlittiures includes interdepartmental transactions. As an ex-
ample, maintenance and repairs on the power system are performed
by the electrical work unit and, hence, this direct element of expense
is included in the expenses of both the power system and the electric
work.
As may be seen from the above figures, during the past year electrical
construction and maintenance aggregated over $4,000,000, which is
about eight times the level prevailing during normal times. This is,
of course, the result of the great expansion in construction activities
on the Isthmus and not only involves extension to the power system
to provide electric current to the numerous projects under con-
struction, but also the electrical phases involved in these construc-
tion projects.

PURCHASES AND INSPECTIONS IN THE UNITED STATES

The principal purchases of supplies for The Panama Canal were
made through the Washington office, as heretofore. The volume of






52 REPORT OF GOVERNOR OF THE PANAMA CANAL


purchases made through the Washington Office of Tie Panama Canal
is indicated by the suniimmary following:

Fiscal year


Number of purchase orders placed ------ -------
Value of orders placed -----------. ......... .
Aggregate of purchases since 1904 made ihruueh Wash-
ington office .. ------ ------ -----
Number of disbursement vouchers prepared -------
Value of above vouchers ------------------
Number of collection vouchers prepared ---------------
Value of above vouchers. ----------- -------------_.. _
Cash discounts taken. --------- --------..-.. .. --.
Realized from sales of surplus material----------------


1942

17,225
$30.690,892
$327,021, 810
25,358
35.011,069
415
$1.,370,014
$154. x.4
$33. 42t


1941

1I. 3wl
$35. 852, 905
$296,330,918
21,633
$22,360,154
318
$829,883
$156,321
$227,678


1940

12,463
$17,719,486
$260,478,013
14,842
$14,742,058
330
$242,179
$126,563
$40,912


STOREHOUSES AND SHIPS CHANDLERY

In addition to its main function of requisitioning, storing, and
issuing general supplies for the canal and railroadl (exclusive of the
merchandising operations of the commissary division) the Canal
Zone storehouses sell ships' chandlery and other supplies to com-
mercial shipping as well as to units of the( United Stat's Army and
United States Navy. The following statistics cover the more im-
portant operative features of the storehouise during the ipast 3 yenrs:


Gross revenues-sales and issues. ...----- ------
Cost of material, plus operating expenses -------------
Net revenues -----..---------------------------
In ventnry as of June 30 ----------------------------
Scrap and obsolete stock on hand, June 30 --------
Numbt'r of steamship sales -----------------------
Steamship sales value-- -------------------------------
:erpi metal sold in local market ----------------- tons -
Scrap metal sold for export -----------------------do----


Fi' il year


1942

$31,395. 349
31,357,714
37,635
8.,110,409
16,795
1.593
77,325
288
0


1941

$24,474. 368
24, 227,094
247,274
5. 382,212
23,025
2,072
76,554
81
0(


1940

$14,140,657
14,069,445
71,212
5.290,310
18,020
1,931
67,560
96
0


OBSOLETE AND UNSERVICEABLE PROPERTY AND EQUIPMENT

During the year disposition was made by sale, or by destruction
where the items had no money value, of obsolete or unserviceable
property and equipment which had an original value of $466,482.
Replacements were made as necessary.


FUEL OIL, DIESEL OIL, GASOLINE, AND KEROSENE

All deliveries of products listed above to and from tanks for private
companies, as well as for The Panama Canal and the United States
Navy, are made through pipe lines and pumping plants of The Panama
Canal.






REPORT OF GOVERNOR OF THE PANAMA CANAL


The following table summarizes the operation of the fuel oil handling
plant for the past 3 years:

Fiscal year


Fuel and Diesel oil:
Handled at Mount Hope (Atlantic side)-----------.
Handled at Balboa (Pacific side) -----------------
Total barrels handled----------------------------
Received by The Panama Canal -------------------
Used by the Panama CanaL ------------------------
Sold by the Panama Canal------------------------
Miscellaneous transfers on tank farms --------------
Pumped for outside interests-----------------------
Total barrels handled----------------------------
Number of ships discharging or receiving fuel and
Diesel oil:
Panama Canal craft-------------------------------
All others --------------------------------------
Total--------------------------------------------
(lasiline and kerosene:
Bulk gasoline received-------------------- gallons_
Bulk kerosene received -----------------------do --
Financial result of operations:
Total revenues-------------------------------------
Total expenditures (including cost of sales) ---
Net revenues ------------------------------------


1942 1941


Barrels
7,510,902
5,133,315
12,644,217


530, 759
463, 443
47,544
29,102
11,573, 369
12, 644, 217


187
2,596
2,783


Barrels
7,195,492
5,761, 516
12, 957,008


I. I


511, 579
359,150
54,225
39, 551
11, 992, 503
12,957, 008


95
2,620
2, 715


12,583,934 8, 286, 375
2,066,378 1,742,921


$1, 181, 822
1,070,164
111,658


$1, 009, 932
966,408
43,524


1940

Barrels
7, 144, 984
5, 347, 363
12. 492. 347


303, 845
249, 157
36, 337
24,004
11,879,004
12, 492,347


165
2,290
2,455

5, 534,641
1,460,682

$821,125
777,372
43,753


BUILDING CONSTRUCTION AND MAINTENANCE

The program of construction under way at the end of the 1941 fiscal
year was continued in 1942. Maintenance was continued on the
existing buildings in use, with minor repairs and replacements being
made throughout the year.
The principal projects of building construction completed by the
building division during the fiscal year 1942 were as follows:
Ancon-Balboa.-Erection of new steam plant for Ancon Laundry;
completion of section A Balboa High School and Junior College;
addition of air-mail annex to Balboa post office; remodeling of Ancon
gold commissary; 9 buildings for gold family quarters and 3 silver
bachelor quarters.
Cristobal.-Relocation of Post Exchange motor pool, Fort Davis;
erection of additional cold storage spice in abattoir building, Mount
Hope Commissary; 3 buildings for gold family quarters, and 18 silver
laborers' quarters.
Diablo Heights.-Laboratory building for special engineering
division, Miraflores; erection of dispensary and gymnasium; 19 gold
family quarters.
Pedro Miguel.-Erectioni of locks storehouse, Paraiso; erection of
district wireman's shop; one 4-family gold apartment.


-------------------------~---'--





REPORT OF GOVERNOR OF THE PANAMA CANAL


Cocoli.-Erection of supply department building and gas station;
erection of post office, gold commissary, elementary school, gold
kitchen and mess hall and silver commissary; 50 buildings for gold
family quarters and one 80-man bachelor quarters; 4 buildings for
silver bachelor quarters.
Gumboa.-Erectioni of 23 buildings for gold family quarters and 1
gold bachelor quarters; construction of house boat andil mess for silver
laborers.
Gatun.-Erection of silver commissary; and dispensary for Gatun
silver labor camp; 5 buildings for silver bachelor quarters.
.1argarit'a.--Erection of gold commissary and elementary school;
34 gold family quarters buildings and 2 gold bachelor quarters.
Expenditures for maintenance and repair work during the past
year aggregated $1,342,613, of which $417,297 was expended on main-
tenance of quarters of gold employees and $139,902 on maintenance of
quarters for silver employees; the balance of $785,414 was spent on
all other maintenance work performed by the building division.
The total volume of construction and maintenance work for the
past 3 years is summarized below:

Fiscal year


For Canal division:
Repair and maintenance work ----------------
Construction work -----------------------------
For the Panama Railroad Co.:
Repair and maintenance work---------------------
Construction work ----------------------------------
For other departments of the Government, employees
and others--------------------------------------------
Total.. -----------------------------
Total maintenance-----------------------------------
Total construction---------------.-----------------.-


S1942 1941 1940

$981,559 $894,035 $643,499
8,249,126 7,181,052 4,090,527
195,656 255,148 94,375
611,277 355,616 195,671
628,721 308,793 128,631
10,666,339 8,994,644 5,152,703
i 1,342,613 1,318,361 853,598
S9,323,726 7,676,283 4,299,105


Total ------- --------------------------------- 10,666,339 8,994,644 5,152,703


QUARTERS FOR EMPLOYEES

Gold emiployees.-The construction of quarters for gold employees,
which has been the major activity of the building division in the pre-
vious fiscal years, was continued during the fiscal year 1942. This
program included the construction of 112 new buildings, totaling
400 apartments for family quarters, and 7 bachelor buildings totaling
280 rooms. For. the greater part, these buildings are of the 4-family
apartment type, replacing the multiple type construction of previous
years, and were designed to take care of the permanent dwelling facili-
ties for the personnel of The Panama Canal and the third locks project.
No gold quarters construction program is contemplated in the coming
fiscal year.





REPORT OF GOVERNOR OF THE PANAMA CANAL


Even with the concentrated building program of past years, con-
struction has not kept apace with the influx of new employees needing
family quarters. Though the family quarters situation has not been
as acute in the fiscal year 1942, as heretofore, due to the restrictions
placed on the travel of families of new employees to the Canal Zone,
there remained 467 applications for family quarters on file at the
close of the fiscal year June 30, 1942, as compared with 833 applica-
tions on file June 30, 1941.
No changes were made in the general regulations governing the
assignment and rental of quarters to American employees.
Silrr employees.-The operation of silver quarters was continued
on the same basis as in previous years. Several new barracks were
erected for the silver laborers. Two buildings of the 12-family
apartment type for family quarters were also erected. The new
construction comprised 4 barracks at La Boca for 934 silver men and
the conversion of 2 buildings into silver barracks to house 232 silver
mren; 5 barracks for 624 silver men and 2 family quarters buildings
providing 24 apartments at Cocoli; 2 barracks for 624 silver men at
Gamboa; 5 barracks for 1,560 silver men at Gatun; 3 barracks for
936 silver men at Camp Bierd; and 1 temporary barrack at Summit
for 64 silver men. In Silver City, on the Atlantic side, construction
of the remaining thirteen 12-family ciintonmient buildings for the
silver employees made homeless by the Colon fire in 1940 was com-
pleted. The demand for quarters from employees on the silver roll
is far in excess of the supply. As of June 30, 1942, there were 3,022
applications on file for family quarters and 913 applications for bachelor
quarters as compared with a total of 2,603 applications on file June
30, 1941.
MOTOR TRANSPORTATION
The Motor Transportation Division is charged with the operation
and maintenance of all motor and animal transportation furnished to
the departments and divisions of The Panama Canal and Panama
Railroad Co. The centralization of all transportation facilities in
this division and the requirement that it operate on a self-sustaining
basis have been primarily for the purpose of supplying needed trans-
portation at a minimum cost to The Panama Canal and Panama Rail-
road Co. Revenues during the past year totaled $2,099,371 and the
expenses $2,084,245, which left a net revenue of $15,126. Muchheavy
hauling in connection with building and highway construction proj-
ects was performed during the year.
In the fiscal year 1942 there were 244 cars and trucks purchased, and
20 cars and trucks were retired. At the close of the fiscal year 907
cars and trucks, 22 trailers, and 6 motorcycles were on hand.





66 REPORT OF GOVERNOR OF THE PANAMA CANAL

PANAMA CANAL PRESS
The operations of the Panama Canal press were continued under
the same policy as heretofore. The printing plant carries stocks of
materials, and prints such forms, stationery, etc., as are required on
the Isthmus in connection with the operation of The Panama Canal
and Panama Railroad. The following is a summary of the operation
of this plant during the past 2 years:

Fiscal year
1942 1941
Gross revenues--------------------------------------------------------- $531,024 $388,603
Total output expense (including supplies not processed in the printing
plant).--------.. ------------------------------------- --------------- 520.697 378,005
Net revenue -------------------------------------------------- 10.,327 10,598
Inventory on hand, June 30 --------------------------------------------- 103,188 114,737

REVENUES DERIVED FROM THE RENTAL OF LANDS
IN THE CANAL ZONE
Rentals on building sites and oil-tank sites in the Canal Zone
totaled $46,992 for the year as compared with revenues of $47,828
for the fiscal year 1941. Rentals from agricultural land in the Canal
Zone totaled $9,058 as compared with $9,721 for the preceding year.
At the close of the fiscal year 848 licenses were in effect, covering 1,645
hectares of agricultural land within the Canal Zone. This is a reduc-
tion of 77 in the number of licenses under the previous fiscal year and a
reduction in the area held under licenses of 149 hectares. This
reduction is largely the result of the policy adopted in May 1935,
providing that as a health measure no more licenses for agricultural
land would be issued and that holdings under license previously
granted cannot be sold or transferred.

BUSINESS OPERATIONS UNDER THE PANAMA RAILROAD CO.
The Panama Railroad Co. was incorporated in 1849 under the laws
of the State of New York for the purpose of constructing and operating
a railroad across the Isthmus. When the concession, rights, and
property of the New French Canal Co. were purchased in 1904, the
stock of the Panama Railroad Co. became the property of the United
States Government. Since the acquisition of the railroad by the
United States, its corporate status has been preserved and the rail-
road has continued to function as a common carrier.
At the beginning of Canal construction work, by Executive order of
the President of the United States, the Panama Railroad Co. was
made an adjunct to The Panama Canal. Its operations are supervised
by a board of directors functioning under the direction of the Secretary






REPORT OF G\'VEINOR OF THE PANAMA. CANAL 67

of War. As the operations of the railroad complement those of the
Canal, the policy has been for the board of directors to elect the
Governor of The Paiuima Canal as president of the Panama Railroad
Co. Thus, the Governor of The Panama Canal is the administrative
head of the Panama Railroad Co. This practice has insured complete
coordination of the activities conducted by the two organizations.
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
Canal administration are covered in this section.
In addition to the operation of the trans-Isthmian railroad, the
business enterprises conducted by the Panama Railroad Co. include
the following: A steamship line operating between New York and the
Isthmus; the loading, unloading, storage, and tranfser of cargo for
shipping interests at the terminal ports; the operation of wholesale
warehouses, retail stores, and subsidiary manufacturing plants en-
gaged in the supply of food, clothing, and other essential commodities
to governmental agencies, employees, and their families; the operation
of coaling plants, hotels, a dairy, and a laundry.

TRANS-ISTHMIAN RAILROAD

The railroad line operates between Colon, the Atlantic terminus,
and Panama City, the Pacific terminus. In addition to these cities,
the railroad serves all nearby activities of The Panama Canal. Gross
revenues from the operations of the railroad proper (not including
subsidiary business activities) during the fiscal year 1942 amounted to
$4,915,925. Revenue freight totaled 1,773,947 tons, as compared
with 1,073,767 tons during 1941, an increase of 700,180 tons. The 6
locomotives and 80 freight cars contracted for the previous year were
received and placed in service during fiscal year 1942.
Statistics covering the various features of railroad operations during
the past 3 years are presented in the following table:

1942 1941 1940

Average miles operated, Colon to Panama- ------------- 47.61 47.61 47.61
Gross operating revenue----------. ------------------- $4,915,925 $3,156,782 $2,165,938


Number of passengers carried:
First-class-----------------------
Second-class-----------------
Total-------------------------
Revenue per passenger-train-mile ---
Revenue per freight-train-mile -------
Passenger-train mileage-------------
Freight-train mileage ----------------
Work-train mileage-------- --
Total train mileage ---------
Switch locomotive miles ..----------


319,235 232,005 152,909
558,893 433,357 294,083
878,128 665,362 446, 992
$7.62 $5.68 $4.41
$13.42 $11.68 $14.65
141,549 132,677 149,644
345,537 228,775 104,751
3,098 3,134 4, 204
490, 184 364,586 258,599
298,867 195,069 114,504






68 REPORT OF GOVERNOR OF THE PANAMA CANAL

RECEIVING AND FORWARDING AGENCY

This division handles the dock and harbor activities of the Panama
Railroad Co. at the two terminals of the Canal. The following
statistics summarize operations for the past 3 years:

1942 1941 1940

Total revenue------------------------------------- $3, 934,304 $2,999, 118 $2, 508,749
Tons Tons Tons
Total cargo handled and transferred across docks .---- 2,508, 421 2,390,618 2,062,020
Cargo stevedored by Panama Railroad Co....--------------. 1, 145,186 1, 135, 280 797,356
Cargo ships handled------------------------------------ 3,345 3,720 4,187
Banana schooners handled------------------------------ 449 1,211 1,273
Agency service furnished vessels.--..- .-------------- 42 83 85


COALING PLANTS

Gross revenues from coal sales during the past fiscal year amounted
to $1,414,120 as compared with $782,412 in 1941. Sales for the past
year were 127,644 tons; this figure represents the largest coal sales
made by the Panama Railroad in the last 10 years. The volume of
coaling plant operations at Cristobal and Balboa for the past 3 fiscal
years is shown in the following table:

1942 1941 1940

Gross revenues ------------------------------------- $1,414,120 $782,412 $928,024

Tons Tons Tons
Coal sold... ------------------------------------------- 127,644 87,446 118,219
Coal purchased--------- ------------------------------ 126,839 62,319 148,024


TELEPHONES AND TELEGRAPHS

The gross revenue from the operation of telephones, electric clocks,
and electric printing telegraph machines was $312,146.
During the year, 1,731 telephones were installed or reconnected
and 1,127 were discontinued or removed, resulting in a net increase
of 604 telephones. At the end of the fiscal year there were 50 electric
clocks and 28 automatic printing telegraph typewriters, in addition
to the 4,973 telephones in service. Local and long distance telephone
calls handled through the automatic exchanges averaged 152,038 per
day in 1942, and 131,069 in 1941 during the sample days tested.
These figures represent averages of 30.5 and 30.0 respectively, calls
per telephone per day for the last 2 years.
The telephone system has continued to provide expansions to serve
the new townsites in the Canal Zone and expansions in the existing





REPORT OF GOVERNOR OF THE PANAMA CANAL


towns. Studies were advanced during the year for the installation
of a new 100-pair trans-Isthmian telephone cable, to replace the
existing 50-pair cable now 25 years old, but at the end of the year
contract had not been awarded.

REAL-ESTATE OPERATIONS
Real-estate operations of the Panama Railroad Co. cover property
owned by the company in the cities of Colon and Panama and build-
ings erected by the company in the Canal Zone. At the close of the
fiscal year, 1,629 leases and 14 licenses were in effect covering the
use of the Panama Railroad Co. properties in the cities of Panama
and Colon.
During the fiscal year the railroad allowed a discount of 10 percent
on rental accounts for properties leased at rentals based on re-evalua-
tions made in 1937, provided the accounts were paid within the first
5 working days of the month. A discount of 10 percent was also
allowed on all rental accounts based on the commercial valuation of
properties in effect prior to the re-appraisal, provided the accounts
were paid within the period for which the bills were rendered. Those
properties rented at low rates under old leases were not given the
reduction.
During the year 1,264 square meters of Panama Railroad land in
the city of Colon and 3,485 square meters of land in Panama City
not required for business purposes was sold.

COMMISSARY DIVISION
The primary function of the commissary division of the Panama
Railroad Co. is to maintain adequate stocks of food, clothing, and
household supplies to meet the needs of United States Government
personnel and the various United States Government departments
on the Isthmus. In carrying out this function the division operates
retail stores in each of the Canal Zone towns, and also wholesale and
cold storage plants. Sales are restricted to agencies and personnel
of the United States Government, except that ice, cold storage,
food, and other essentials may be purchased by commercial steam-
ships transiting the Canal or calling at its terminal ports.
SALES
Net sales for the year totaled $35,421,765, compared with $19,755,-
188 for the previous fiscal year. The value of merchandise on hand
June 30, 1942, was $4,198,365, and was $2,078,106 at the close of the
fiscal year 1941. The ratio of sales to inventory indicates a theoretical






REPORT OF GOVERNOR OF THE PANAMA CANAL


stock turn-over of approximately once every 5 weeks. The distribu-
tion of sales for the past 3 years is shown in the following table:

1942 1941 1940

IT. S. Government (Army and N i.. ..-....--------.- $12, 245, 622, $5,480,257 $2,890,768
The Panama Canal--------..--.------------------------ 4.303,862 2,269,830 1,222,434
The Panama Railroad Co----- ..------.----------------. 779.143 473,511 358,217
Individuals and companies---.....------------------ 1, .1552,484 692,302 351.361
Commercial ships .-- ....------.---- .-.----.--------- .543.996 361,276 297,478
Employees ............ 18,297,702 11.775,824 8,024,283
Gross sales ---. ------------------------------- 37,722,809 21,053,000 13,144,541
Less discounts, credits, etc -- -------------------------- 2, 301, 045 1,297,812 853,275
Net sales -------------------. ----------------- 35,421,764 19, 755, 188 12,291,266


PURCHASES

Purchases during the year aggregated $31,970,677, an increase of
$15,866,379 over the previous year. The following tabulation shows
the value of the various classes of materials purchased for the past
3 years:


Groceries -----------------------
Candy and tobacco ---- -------------
Housewares ---------------------
Dry goods ---------------------------
Shoes -------------------------------
Cold lnrae . --------
Raw materials --------------------
Cattle and hogs -------.---------
Milk and cream ------------------
Dairy products --------------------
Merchandise received without debits-
Total---------..-------------


1942 1941 1940

$8,769,410 $4,068,968 $2. 809,511
1,090,298 619,563 441.29.3
1,489,100 943,995 544, 147
3,000,521 1,997,314 1,255,192
1,149,913 624,453 372,400
8,865,456 4, 225,880 2,057,722
2,517,275 1,080,770 680,201
892,131 370. 457 281,234
426,524 362, 687 273,413
3,670,049 1,810,211 1,109,090
100,000 ------------- ----..--..----
31,970,677 16.104,298 9,824,203


HOTELS


The Hotels Tivoli and Washiniigton were operated by the Panama
Railroad Co. without change of policy. These hotels are an essential
adjunct to the Canal, providing suitable acconnmmodations to foreign
visitors, American tourists, visiting Government officials, and others.
The gross revenue from hotels was $712,445, compared with
$579,015 in 1940, and the number of guest days was 89,278, compared
with 92,321 in 1940.
MINDI DAIRY

The operations of the Mindi Dairy continued as in the previous
years. Milk production for the year was 540,758 gallons, compared
with 513,353 gallons in the preceding year, an increase of 27,405
gallons. Fresh milk was supplied the Army and Navy units stationed
on the Isthmus in addition to employees and units of the canal and
railroad organizations.





REPORT OF GOVERNOR OF THE PANAMA CANAL


PANAMA LINE
The three twin screw passenger and cargo steamships owned by
the company that were operated as the Panama Line were turned
over to the War Department for use during the national emergency.
The Panama was delivered June 13, 1941; the Cristobal, January 11,
1942; the Ancon, January 11, 1942, after completing discharge of her
cargo at the Canal Zone.
The gross operating revenue of the Panama Line for the fiscal year
that began July 1, 1941, and ended June 30, 1942, from the operations
of the company's own vessels until turned over to the War Depart-
ment, and from the operation of chartered cargo vessels, amounted to
$2,817,840.52; the gross operating expenses amounted to $2,623,-
180.54; resulting in a net profit from operations of $194,659.98. The
operating profit compared with the fiscal year that ended June 30,
1941, of $997,655.79, shows a decrease in net revenue of $802,995.81
due entirely to the transfer of the company's three steamships to the
War Department.
For the year that ended June 30, 1942, the tonnage carried by the
steamship line amounted to 263,381 tons, as compared with 425,719
tons in the previous year.
During that part of the fiscal year that the company operated its
own steamships, and chartered cargo steamers freight for account of
The Panama Canal, and other departments of the Government of the
United States in the Canal Zone was carried at a reduction of 25 per-
cent from tariff rate; and passengers for account of those same de-
partments were carried at reductions that ranged from 50 percent to
70 percent.








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 con-
ducting 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, 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; the supplying of motor-transportation facilities to the
various departments and divisions of the Canal and railroad organi-
zations; and the operation of messes for silver-roll contract labor.
ACCOUNTING
The accounting department is responsible for the correct recording
of financial transactions of the Canal and railroad; the administra-
tive auditing of vouchers covering the receipt and disbursement of
funds preliminary to the final audit by the General Accounting
Office; cost keeping of the Canal and railroad; the checking of time-
keeping; the preparation of estimates for appropriations and the allot-
ment 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 the Execu-
tive order within the iiitliority of the Executive Secretary. Under
73





REPORT OF (OVERNOR OF 'HE PANAMA CANAL


this apartmentn, come the adminiiiistration of police and fire protection,
postal service, customs, shipping-conimissioner work, estates, schools,
playgrounds, general correspondence, and records for the organiza-
tion of the Canal and Panama Railroad, personnel records and
administration, wage adjustments, information and publicity, re-
lations with Panama, and the operation of clubhouses, restaurants,
moving picture theaters, etc.
HEALTH
The health department has jurisdiction over all matters pertaining
to sanitation and public health within the Canal Zone and the cities
of Panama and Colon, the operation of hospitals, and dispensaries,
and the enforcement of quarantine regulations.

PANAMA RAILROAD COMPANY
The operations of the Panama Railroad Co. on the Isthmus are
related closely to the work of the Canal. As the Governor of The
Panama Canal is president of the Panama Railroad Co., the heads
of departments both of the Canal and railroad organizations report
to him. The general administration of the composite organization
is centered(l in the executive office, and the accounting work in the
accounting department. The Panama Railroad and the business
divisions of the Canal organization are billed for their proper share
of the general overhead work.
CHANGES IN ADMINISTRATIVE PERSONNEL
Appointments in official positions during the fiscal year 1942 were
as follows:
Col. James G. Steese, United States Army, was appointed engineer
of maintenance, vice Col. Raymond A. Wheeler, United States Army,
relieved from duty with The Panama Canal. This appointment was
made effective September 1, 1941, and until the arrival of an officer
specially designated by the War Department for assignment to that
position.
Col. Joseph C. Mehaffey, United States Army, was appointed
engineer of maintenance on September 17, 1941, vice Col. James G.
Steese, reappointed executive assistant to the engineer of mainten-

Mr. Augustus C. Medinger. was appointed assistant superintendent,
dredging division, on July 16, 1941, vice Mr. Leonard Foote, resigned.
Mr. Lew W. Lewis was appointed first assistant chief quarter-
master on October 1, 1941, vice Mr. James H. K. Humphrey, retired.
Mr. Lewis B. Moore was appointed second assistant chief quarter-
master on October 9, 1941, vice Mr. Lew W. Lewis, appointed first
assistant chief quart e master.





REPORT OF GOVERNOR OF THE PANAMA CANAL


Mr. Frank H. Irwin was appointed office engineer on October 9,
1941, vice Mr. Lewis B. Moore, appointed second ussistaunt chief
quartermaster.
Mr. Milton A. Smith was appointed superintendent, storehouses
and oil handling plants on February 1, 1942, vice Mr. Paul G.
Illwitzer, retired.
Lt. Victor B. Cole, United States Navy, was appointed assistant to
superintendent, mechanical division, on February 16, 1942, vice Lt.
Comdr. Robert A. Hinners, United States Navy, relieved from duty
with The Panama Canal.
Col. Hans Kramer, United States Army, was appointed supervising
engineer on March 25, 1942, vice Col. Thomas B. Larkin, United
States Army, relieved from duty with The Panama Canal.
Lt. Col. Charles H. Barth, Jr., United States Army, was appointed
assistant supervising engineer on March 25, 1942, vice Col. Hans
Kramer, United States Army, appointed supervising engineer.
Mr. Edward Spearman was appointed general superintendent,
building division, on April 1, 1942, vice Mr. Fay E. Powell, resigned.
Lt. Comdr. Robert L. Morris, United States Navy, was appointed
assistant to the marine superintendentn, on May 12, 1942, vice Lt.
Comdr. Walter H. Price, United States Navy, relieved from duty
with The Panama Canal.
EMPLOYEES
The force employed by The Panama Canal and the Panama Railroad
Co. is composed of two classes which for local convenience have been
designated "gold" and "silver" employees. The terms "gold" em-
ployees and "silver" employees originated during the construction
period of the Canal from the practice of paying common laborers and
other unskilled or only semiskilled workers employed in the Tropics in
silver coin, while skilled craftsmen and those occupying executive,
professional, and similar positions were paid in gold coin, the latter
group being recruited largely from the United States. Although all
employees are now paid in United States currency, the original terms
used to designate the two classes of employees have been retained for
convenience. The terms "gold" and "silver" are applied also to
quarters, commissary, clubhouse, and other public facilities.
The gold employees-that is, those carried on the gold pay roll-
are, with a few exceptions, citizens of the United States and comprise
those employees who are engaged in the skilled trades and in the
executive, supervisory, professional, subprofessional, clerical, and
other positions where education, training, and special qualifications
are required. The force of silver employees is composed almost en-
tirely of natives of the Tropics, a considerable number of whom are
Panamanians. The force of silver employees is composed principally
of laborers, helpers, and semiskilled workers who perform work which






REPORT OF GOVERNOR OF THE PANAMA CANAL


does not require the services of specially trained or qualified persons.

Panama Canal employees are divided, therefore, into two general

classes, one of which comprises United States citizens, and the other

principally native tropical labor. These two classes are carried on

separate pay rolls and the conditions of employment applicable to each

differ materially. The division of labor between the two classes of

employees is a matter of long custom in tropical countries, and

Panama, Canal practice conforms to this general custom.

GOLD EMPLOYEES

The distribution of the gold personnel on June 3, 1942, and June 4,

1941, is shown in the following tabulation:


THE PANAMA CANAL

Accounting department ----------------------. -
Dredging division------------------------------
Assistant engineer of maintenance:
Electrical division. -- ----------------..-
Locks division-----------------------------
Municipal engineering division. ------------
Office engineering division-----------------
Meteorology-----------..-.....-....--- -
Executive department:
Executive offices---------------------------
Bureau of posts------------------.-..----.-
Civil affairs and customs-------------------
Panama Canal clubhouses -----------------
Collector -----------------------------------
Fire protection-----------------------------
Magistrate courts--------------------------
Paymaster---------------------------------
Police and prisons--------------------------
Schools-------------------------------------
Fortifications----------------------------------
Health department ----------------------------
Marine division--------------------------------
Mechanical division----------------------------
Special engineering division--------------------
Supply department:
Offices, building---------------------------
Building---------------------------------- -
District quartermaster ---------------------
Experiment gardens ----------------------
Fuel-oil plants-----------------------------
Motor car repair shop----------------------
Motor transportation----------------------
Panama Canal press.----------------------
Storehouses--------------------------------
Subsistence--------------------------------

Total, The Panama Canal ---------------

PANAMA RAILROAD CO.

Railroad proper------------------------------
Receiving and forwarding agency --------------
Commissary. ----.-...------------------------
Dairy farms ------------------------------------
Hotels-----------------------------------------
Real estate-------------------------------------

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

Total force ---------


June 3, 1942


322
469

439
287
845
264
12

349
162
50
201
20
67
9
19
311
211
3
575
221
1,015
905

31
311
47
33
38
103
223
19
117
20


June 4, 1941


286
385

392
343
1,069
274
12

298
122
30
106
18
64
6
18
232
180
3
479
219
S677
511

27
301
44
12
40
78
193
14
85
12


Increase


36
84

47




51
40
20
95
2
3
3
1
79
31

96
2
338
394

4
10
3
21

25
30
5
32
8


Decrease


56
224
10
- - - - - -

- - - - - -
- - - - - -
i.
- - - - - -
- - - - - -
- - - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -

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


2
- - - - - -
- - - - -
- - - - - -
- .-- .-
- - - - -


7,698 6,530 1,460 292


235 176 59 .........
184 152 32 -.-.----
399 365 34 ..------------
6 6 -- ---- ...........
19 22 ...--------- 3
9 9.-------------- ---------

852 730 125 3


8,550


7, 260


1,585


Represented in the table above is a net increase of 1,290 employees

on the gold rolls of The Panama Canal and the Panama Railroad Co.,

an increase of 18 percent, which contrasts sharply with the 38 percent

increase shown in the rolls of Inst year, over those of the preceding

year. One of the major increases-that. in the special engineering


I-- -







REPORT OF GOVERNOR OF THE PANAMA CANAL 77

division (third locks)-was a steady increase from month to month
throughout the year, until the announcement in May 1942 by the
Secretary of War, of a change in policy regarding the third locks
construction. At that time, the increase in the special engineering
division stopped, but during 'the fiscal year there had been a net
increase of 77 percent in this division. The other major increase-
an increase of 50 percent in the mechanical division-reflects increases
in the number of marine repair and other skilled craftsmen required to
meet the greatly increased activities in that division. The decrease
in force of the municipal division is due to the gradual completion of
special projects and of third lock construction work assigned to that
division. Much smaller increases appeared in other units related to
construction, such as the office engineering, dredging division, electrical
division, building division, and motor transportation. Because of the
general increase in activity it has likewise been necessary to increase
the force in numerous other units not actually engaged in construction
work, such as the accounting department, the executive offices, the
health department, and commissaries. The 33 percent increiise in
the Panama Canal Railroad proper is accounted for chiefly by the
employment of additional engineers and conductors.

RECRUITING AND TURN-OVER OF FORCE-GOLD EMPLOYEES
The following table shows additions to and separations from the
gold force in the fiscal year from July 1, 1941, to June 30, 1942. Em-
ployments are classified as made in the United States or on the
Isthmus, and separations are classified by cause:

Opera- Ac- Panama
Gold force tiond Execu- Supply Health count- R- Total
nance ing Co.

Employed or reemployed in the United
States -------------------- 1,420 169 201 158 6 183 2, 137
Employed or reemployed on the Isthmus 633 377 264 80 52 156 1,562
Total additions---------------------- 2,053 546 465 238 58 339 3,699
Resigned -------------- -------- ------ 1,103 341 234 121 62 259 2,120
Retired:
Age ----------- -------- -- --- 15 1 3 1 1 5 26
Disability-------------------------- -- 8 2 ------ 2 2 3 17
Voluntary --- ----- ----------- 6 1 3 3 1 4 18
Died ------- ---- -- -- ------ 17 1 -------- -------- -------- 3 21
Discharged:
Reduction of force ------------------- 21 20 22 -------- ------- 63
Expiration of temporary employment- 20 42 34 19 3 2 120
Cause -77 37 28 5 1 19 167
Ordered to duty with U. S. Army----------- 28 5 1 39 2 75
Other reasons ----------------------------- 2 ------- ------- -------- -------- -------- 2
Total separations ------ ---1,297 450 325 190 70 297 2,629

NOTE.-The above figures do not include 304 employment made on a part-time basis and 182 termina-
tions of part-time employees; neither does it include 69 employment of American citizens on the silver
roll and 150 terminations of American citizens on the silver roll.
The Panama Canal: The Panama Railroad Co.:
Additions ------------------------------ 3,369 Additions ---------------------------- 339
Separations ---------------------------- 2,332 Separations--------------------------- 297
Netadditions ------ ------ 1,028 Net additions ---------------------- 42





78 REPORT OF GOVERNOR OF THE PANAMA CANAL

Based on an average aggregate gold force of 8,052 for the year, the
2,629 separations shown above give a turn-over of 32.65 percent from
all causes; this is much greater than the 23.19 percent turn-over of
the fiscal year 1941. When discharges by reason of expiration of
temporary employment are excluded the turn-over rate is 31.16 per-
cent for last. year as compared to 10.75 percent in fiscal year 1941;
and when the separations due to orders to active duty with the
United States Army are also excluded, the rate is still 30.23 percent.
Involved in the employment of the new employees mentioned
above wert 3,314 appointments tendered through the Washington
office or made directly through the local personnel division. Since
March 1942 it has been necessary to bring all new employees to the
Istluhmus by plane from Brownsville, Tex. Efforts to use water
transportation have not been successful nor considered advisable
under present conditions. Delay has resulted, under this system, at
times when large groups of employees were being sent to the Istlhmus.

WAGE ADJUSTMENTS
The rates of pay for positions in the six navy yards which are used
as a base for rates of pay for similar positions in The Panama Canal
were adjusted on August 4, 1941, and on October 13, 1941. On each
occasion The Panama Canal equivalent rate was determined and ap-
proved upon recommendation of the wage board. Likewise, higher
rates for positions in the Panama Railroad Co. which are based on
rates of pay for similar positions in railroad in the States were ap-
proved following an increase in the rates used as a base.

SILVER EMPLOYEES
The number of employees on the silver roll by depl)artments and
divisions, as shown on force reports for June 1941 and June 1942 are
given in the following tabulation. These summaries cover the num-
ber of employees on the specific days on which the force reports were
compiled (the first Wednesday of the month), and are believed to be
fairly representative for most of the divisions. In some divisions the
number of employees at work may change by several hundred within
a short time, according to variations in the demand for hourly rated
labor. The summary shows only those at work on June 3, 1942, and
June 4, 1941.
The net increase of 2,692 is comprised of small increases in nearly
all divisions but with the greatest increases occurring in the dredging
division, the mechanical division, the clubhouses, and the health
department. Generally heightened activity resulting from the cur-
rent construction program is responsible for practically all increases.
The decrease of 1,029 employees in the municipal division was caused








REPORT OF GOVERNOR OF THE PANAMA CANAL


by the gradual completion of special construction projects and of third
locks construction projects assigned to this division.


THE PANAMA CANAL

Accounting department------------------------
Dredging division------------------------------
Assistant engineer of maintenance:
Electrical division------------------------
Locks division---------------------------
Municipal division-------------------------
Office engineer----------------------------
Meteorology --------------------------
Executive department:
Executive offices.--------------------------
Bureau of posts---------------------------
Civil affairs and customs -------------
Panama Canal clubhouses-------------
Magistrates courts-------------------------
Paymaster-----------------------------
Police and prisons----------------------
Schools-------... --------------------
Health department----------------------------
Marine division--- -------------------------
Mechanical division---------------------------
Special engineering division.-------------------
Supply department:
Offices, chief quartermaster ----------------
Building division -------------------------
District quartermasters --------------------
Experiment gardens --------------------
Fuel oil plants-----------------------------
Motorcar repair shop- -.---- --
Motor transportation -------------------
Panama Canal press -----------------------
Storehouses------------------- ------....
Subsistence -----------------------------
Total, The Panama Canal ------ .
PANAMA RAILROAD CO.
General manager----------------------- --
Receiving and forwarding agency -- ------
Commissaries ------------------------------
Dairyfarm --------- ------------- --
Hotels----------------------------------
Real-estate section ---------------------------
Total, Panama Railroad Co. --------------
Totalforce----------------------------


June 3, 1942


5
2,504
709
792
4,771
146
25
83
40
2
1,698
2
3
57
194
1,712
502
1,742
187
6
3,801
689
494
65
134
524
166
731
647
22,431


798
1,796
3,314
121
223
3
6,255

28,686


June 4, 1941


Increase


Decrease


- I -- I- I--


5
1,902
677
774
5,800
126
26

66
25
1
1,202
3
3
49
152
1,304
507
1,115
160
4
3,578
517
220
60
107
455
136
533
* 422
19,929


690
2,088
2,950
126
208
3
6,065

25,994


602
32
18
20

17
15
1
496
--------------

8
42
408
627--------------
27
2
2
223
172
274
5
27
69
30
198
225

3,538


108
364
--------------
15

487

4,02W


1,029
1




.S
















1,036



292
5



297

1,333


SILVER WAGES

Wages of employees on the silver roll bear no direct 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 levels based on wages prevailing for
tropical labor in the Caribbean area.

SILVER ELIGIBILITY AND EMPLOYMENT PROGRAM

During the fiscal year 1942 total employment of all agencies
operating in the Canal Zone and covered by The Panama Canal's
central labor office program continued to grow, rising from 59,371 on
July 1, 1941, to 76,943 on June 30, 1942, with an average monthly

force in the fiscal year 1942 of 67,084, compared with 58,163 for the
last half of the fiscal year 1941. In addition to the silver employees


_______~___~_





80 REPORT OF GOVERNOR OF THE PANAMA CANAL

of The Pananma Canal and Pannia Railroad, these figures include
gold and silver employees of the Army and Navy and of private con-
tractors engaged in Government construction on the Isthmus.
Because of the insufficient supply of qualified labor on the Isthmus
it was necessary to bring in unskilled and semiskilled contract workers
from areas outside the Canal Zone and the Republic of Panama.
During the year labor offices were in operation in Jamaica, El Salvador,
Costa Rica, Atlahintic Colombia (Barranquila), and Pacific Colombia
(Cali). The Pacific Colombia agency was discontinued early in the
fiscal year, while recruiting through the Atlantic Colombia agency was
discontinued in May. Distribution of laborers recruited by these
offices during the fiscal year 1942 is shown in the table below:
Jatmaica Csta.Rica Atlantic Pacific El Tt
Jamaica Costa Rica Colombia Colombia Salvador Total

Canal-Railroad--------------- 1,882 1,540 675 369 5,301 9,767
All others---.. .-----------------.------------ 316 1,248 ------------.. ... ---------- 1,564
Total------------------- 1,882 1,856 1,923 369 5,301 11,331

The principal source of imported workers during the year was
El Salvador which supplied principally common labor. Colombia
and Costa Rica were drawn upon particularly for the more skilled
workers, while Jamacia supplied workers particularly for personal
service occupations.
REPATRIATIONS
Under an act approved in the fiscal year 1934, an appropriation
of $150,000 was provided by Congress for the purpose of repatriating
unemployed West Indians and their families who have rendered at
least 3 years service with the United States Government or the
Panama Railroad Co. on the Isthmus. During the fiscal year 1942
approximately $1,070 was expended for repatriation and rehabilitation
of 19 former employees, accompanied by 15 members of their families,
a total of 34 persons. To date a grand total of $56,413 has been
expended for the repatriation of 763 employees accompanied by 688
members of family, giving a grand total of 1,451 individuals. The
average cost per person for repatriation has been $38.88 and the
average cost per employee $73.94.
CASH RELIEF FOR DISABLED EMPLOYEES
Applications for relief under the act of Congress of July 8, 1937,
were received during the fiscal year 1942 at an average rate of 14 per
month. The original system established during the latter part of
the fiscal year 1938 for administering this program remains basically
unchanged, although minor changes were found advisable, due to
experience and changing conditions.







REPORT OF GOVERNOR OF THE PANAMA CANAL


The tables below show the disposition of all applications from
employees of both The Panama Canal and The Panama Railroad Co.
from the inception of this function. The gross and net amounts of
the pay rolls are also indicated.

Aliations Panama Panama
Applications Canal Railroad Total

Applications received to June 30, 1942, inclusive------------------ 941 340 1, 281
Applications approved for payment------------------------------ -- 553 194 747
Applications suspended for various reasons ------------------------- 9 6 15
Applicants died before cash relief was approved ----------------- 29 14 43
Applications rejected for various reasons---------------------------- 16 7 23
Applications ineligible because of limitation of the act------------- 326 115 441
Applications not complete but in various stages of progress ------ 8 4 12
Total------------------------------------------------------ 941 340 1,281

NOTE.-Removal from the rolls on account of the death or subsequent reemployment of cash relief re-
cipients: Panama Canal 156; Panama Railroad 43.

Total and average costs

Monthly Monthly
Number average pay roll as
of cases payment of June 30,
per case 1942

Panama Canal rolls ------------------------------------------------ 397 $18.16 $7, 210
Panama Railroad Company rolls ----------------------------------- 151 16.79 2,535
Total------.------ --------------------------------------- 548 17.79 9,745


Expenditures on behalf of The Panama Canal cash-relief program
are paid from annual allotments for that purpose, while those of the
Panama Railroad Co. constitute a continuation of the former system
of granting cash-relief to the superannuated employees of that com-
pany and are paid from Panama Railroad funds. At the beginning
of the fiscal year 1942 cash-relief payments were being made to 147
former employees of the Panama Railroad Co. Of this number 5
died or were otherwise separated from the roll, leaving a balance of
142 at the end of the fiscal year. These are not included in the
statistics above which include only those employees granted cash-
relief under the plan now in effect. The expenditure of the Panama
Railroad for the payment of cash considerations to both the super-
annuated employees and those employees who were awarded cash-
relief under the act of Congress of July 8, 1937, amounts to $43,828
for the fiscal year.
EXPERIMENT GARDENS

The Canal Zone plant introduction gardens and experimental
station were established in June 1923. The gardens, which include
greenhouses, nurseries, and experimental plantings, embrace ap-
proximately 125 acres of land, and are devoted to the propagation
and cultivation of a wide variety of useful and ornamental plants from





REPORT OF (UVERNO[ 01O THE PANAMA CANAL


all parts of the world, primarily for the purpose of determining their
adaptability and value under local soil and climatic conditions, for
general propagation on the Isthmus.
During the past fiscal year the regular long range experimental
work at the gardens was continued, and in addition, because of the
present increased interest in food production, new experimental work
on vegetable crops was undertaken to ascertain the possibilities and
requirements of such culture on a practical scale in the Tropics.
Considerable assistance was given the Army the past year in its
camouflage work, a large portion of which was taken over by the
Landsncape Section. The personnel of this section has had to be en-
larged many fold, in order to conduct the additional work demanded
of it. To accommodate the increased force, and to facilitate the
handling of the field work, the Landscape Section has moved from
Summit to Ancon for the duration of the emergency.
In connection with the new office building constructed at Summit
a botanical library was established from a collection of several thousand
pieces of printed matter, including bulletins, circulars, technical and
professional papers, pamphlets and miscellaneous publications from
agricultural experiment stations of every State in the United States,
as well as from Alaska, Hawaii, Puerto Rico, and the Philippines.
Similar material has been received from arboretums and botanical
gardens in connection with many universities and colleges, and from
schools of forestry and many other such institutions. In addition to
the unbound data, the library will also contain about 300 books on
botanical and kindred subjects.
The volume of plants handled during the past year was approxi-
mately the same as that of the fiscal year 1941. The size of the
individual plants, however, was larger than that of plants previously
available, and thus a more immediate effect was obtained when they
were used in landscape plantings.
For many years the gardens has maintained a reciprocal arrange-
ment with interested persons and organizations in different parts of
the world for the exchange of plants and seeds. In this manner, a
collection of both ornamental and economic value has been received
at very little cost. An' introduction of much commercial value
received during the year from the United Fruit Co., consisted of four
major varieties of Musa textilis, or abaca,the source of manila hemp.
This plant is similar in growth and appearance to the common banana,
with the exception that the leaves and leaf sheaths are tougher and
more sturdy in appearance; the fruit is rather inconspicuous and not
edible; and the plant is not susceptible to the dread "Panama disease"
or banana wilt. The further development of this plant should be a
welcome introduction to the many planters in Central America who





REPORT OF GOVERNOR OF THE PANAMA CANAL


have been compelled to abandon their banana plantations because of
this infection.
In addition to seeds and plants sent out by the gardens, under the
exchange arrangements, 250,600 Hevea brasilliensis seeds were dis-
tributed in various countries of this hemisphere, in the interest of fur-
ther developing the rubber industry. Dr. Julius Matz, pathologist,
of the Division of Sugarcane Investigation, Bureau of Plant Industry,
United States Department of Agriculture, has been stationed by
that Department at the gardens to take charge of the sugarcane proj-
ect and to supervise the handling of rubber seed shipments. Dr.
Matz has conducted experiments to determine the most suitable
medium in which to germinate these seeds as well as the best method
by which their rapid germination may be induced.
Over 90 percent of the world's supply of natural rubber comes from
the para, or Brazilian rubber tree, Hevea brasilliensis. Until 1910
Brazil was the greatest producer of rubber in the world, most of it
coming from trees in her virgin forests. In 1876 a few thousand Hevea
seeds were shipped to England and then to the Far East, where the
Dutch and English, by selection and breeding, have developed Hevea
trees that produce five or six times the annual yield of their uncul-
tivated ancestors in Brazil. Brazil is known to contain many millions
of wild Hevea trees, but they are widely distributed in the forests
and it will be a tremendous task to develop roads required to reach
them. Other rubber-producing plants are abundant in many of the
Central and South American countries; one, the guayule, is native
to Mexico and is receiving much attention just now. The most
common and widespread rubber-producing plants in this part of the
world, however, are the various species of Castilla Rubber. The
Republic of Panama alone is reported to have over 5 million wild
Castilla panamensis trees of tapping size. It is estimated that there
are approximately 50,000 of these trees in the Canal Zone; plans have
been formulated for the tapping of these trees, and work will commence
shortly.
CLUBHOUSES
As explained on page 54 of last year's printed annual report the
clubhouses as now operated by The Panama Canal comprise those
activities of the former bureau of clubs and playgrounds which
provide Government personnel and their families with restaurant
and recreational facilities, on a self-supporting basis. These activities,
particularly the restaurants, have grown to very large proportions
during the current period of construction and war activities on the
Isthmus. Since a large percentage of the personnel brought to the
Isthmus to engage in the construction activities have necessarily
come without their families the problem of feeding them lihad devolved





REPORT OF GOVERNOR OF THE PANAMA CANAL


largely upon the clubhouses. This has required the erection of new
clubhouse buildings in the new townsites developed for the third
locks construction program, but a large part of the additional load
has been thrown on the clubhouses previously established in the
existing townsites. In addition there has been a large influx of
members of the armed forces who have patronzied the clubhouses
extensively. To the extent that their facilities permit, the United
Service Organizations and various facilities on the military reser-
vations provide similar services but The Panama Canal clubhouses
provide an additional service which is extensively used by members
of the armed forces on the Isthmus.
All of these factors have resulted in much overcrowding in all the
clubhouses, particularly the larger ones in the terminal areas. It
has been necessary to make a major expansion in the restaurants in
the old clubhouses at Balboa, Ancon, Pedro Miguel, Gatun, and
Cristobal, due in each case to the combined effect of the influx of
construction workers unaccompanied by their families and of mem-
bers of the armed forces. In turn this large volume of general busi-
ness has produced sufficient revenues to finance much of the necessary
expansions although the restaurants in "gold" clubhouses have not
themselves produced a profit during the last year. Accordingly, the
method under which these clubhouses are now being operated has
made it possible to pay for the major alterations without the necessity
of securing appropriated funds as would otherwise have been the case.
After the current period of intensive activity has subsided, the
expanded restaurants may be somewhat in excess of requirements
and it is anticipated that when conditions return to a more normal
level the trade will not be sufficient to carry the expanded plants.
At that time it will probably be necessary to make further alterations
so that the clubhouses can continue to be self-supporting.
During the fiscal year 1942 the total revenues of the clubhouses
increased by about 70 percent over the preceding year and were
about five times those of recent years which may be taken as normal.
Over 60 percent of the business was in the restaurants, the balance
coming from merchandise sales (tobacco, candy, etc.), from motion
pictures and from miscellaneous other services of the clubhouses,
such as swimming pools, bowling, and billiards. Effective October 1,
1941, a slight change in the administrative organization was made
by assigning the administration of the new clubhouses in the towns
built for the third locks construction to the special engineering
division of The Panama Canal, which division is in charge of the
execution of the third locks project. The other clubhouses in the old
townsites continued under the administration of the Executive depart-
ment of The Panama Canal as in the past.






REPORT OF GOVERNOR OF THE PANAMA CANAL


LEGISLATION
Among the laws enacted by the Congress during this fiscal year
which relate to or apply in the Canal Zone, or affect The Panama
Canal, and which are of importance or interest, are those hereinafter
described.
An act approved August 1, 1941, Public No. 200, Seventy-seventh
Congress, amended the Classification Act of 1923, as amended, so
as to provide for periodic within-grade salary advancements for per
annum employees occupying permanent positions within the classified
service.
An act approved December 12, 1941, Public, No. 336, Seventy-
seventh Congress, added a new section 15 of title 2 of the Canal
Zone Code, providing for the control of photographing, possession of,
cameras, etc., in areas of the Canal Zone.
An act approved December 16, 1941, Public, No. 343, Seventy-
seventh Congress, amended the Canal Zone Code with respect to the
trial of joint defendants, the removal of fugitives from justice, and
the regulation of criminal procedure in the Canal Zone.
An act approved December 16, 1941, Public, No. 344, Seventy-
seventh Congress, amended the Canal Zone Code so as to permit the
filing of mortgages of personal property, rather than their transcrip-
tion in books kept for that purpose, and amended the code provision
relative to the taking of vehicles for temporary use or operation so
as to vest jurisdiction of first offenses in the magistrates' courts rather
than in the district court.
An act approved December 16, 1941, Public, No. 346, Seventy-
seventh Congress, amended the Canal Zone Code with reference to
the offense of returning to the Canal Zone after deportation following
service of a sentence of imprisonment in the Canal Zone, and to the
offense of riding in an improper or unsafe place on trains.
An act approved December 16, 1941, Public, No. 347, Seventy-
seventh Congress, amended the Canal Zone Code retirement provi-
sions so as (a) to provide for payment, at the election of the employee,
of a reduced annuity to the employee, and, after his death, of an
annuity payable to a designated beneficiary; (b) to provide for addi-
tional deposits or deductions, at the option of the employee; and (c) to
extend to 1 year the maximum term for payment of a disability retire-
ment annuity after recovery of the annuitant.
An act approved December 31, 1941, Public, No. 391, Seventy-
seventh Congress, incorporated the Union Church of the Canal Zone.
An act approved January 30, 1942, Public, No. 421, Seventy-
seventh Congress, known as the Emergency Price Control Act of
1942, which is applicable generally to the Canal Zone, as a possession
of the United States, and to the United States and agencies thereof,





REPORT OF GOVERNORR OF THE PANAMA CANAL


authorized the establislihnent, of maximumin prices for all commodities
and maximum rents in d(lefense-rental areas.
An act approved March 27, 1942, Public, No. 506, Seventy-seventh
Congress, authorized the War Damage Corporation to provide insur-
ance protection with respect to real and personal property situated in
the United States and, among other places, the Canal Zone, or in
transit between any of the places specified in the act, against loss or
(damage resulting from enyiii attack or resistance thereto.
An act approved April 7, 1942, Public, No. 517, Seventy-seventh
Congress, amending an act approved August 1, 1941, Public Law
202, Seventy-seventh Congress, provided for the payment of compen-
sation for accumulated or current naccrued leave to Government em-
ployees generally, including employees of the Canal-Railroad organi-
zation, who voluntarily enlist or otherwise enter upon active military
or naval service.
An act approved(l June 3, 1942; Public, No. 562, Seventy-seventh
Congress, authorized the Governor to select an additional United
Sta t es Military Academy cadet from among the sons of civilians
residing in the Canal Zone and the sons of civilian personnel of the
United States Goverinment and the Panama Railroad Co. residing in
the Republic of Panama.
In addition, other applicable laws of importance further dealt with
war-time powers, controls, and emergency measures in general, in-
cluding such matters as censorship, trading or communicating with
the enemy, etc.
Other general legislation considered by the Congress during the
year was carefully reviewed and studied for the purpose of determining
its effect on the Canal Zone and the Canal-Railroad organization, and
appropriate recommendations were made from time to time when the
circumstances warranted such action.
CAPITAL ALLOTMENTS FISCAL YEAR 1943
The capital allotment appropriation for the fiscal year 1942 of
$3,333,100 was discussed in detail in the annual report for the fiscal
year 1941. To this appropriation there was added during the year
a supplemental appropriation of $1,332,000. This amount was
appropriated along with the 1943 fiscal year appropriation, but was
made immediately available for use in the fiscal year 1942. Of this
amount, $1,000,000 was for starting of construction of a steam power
plant, Cocoli, needed to provide additional power facilities arising
from increased construction activities, and to relieve the overtaxed
regular power facilities of The Panama Canal; $100,000 was for
trucks, busses, and automobiles needed by the motor transportation
division to take care of the expanding construction activities being
carried on by The Panama Canal and the United States Army and






REPORT OF GOVERNOR OF THE PANAMA CANAL


Navy; $69,000 was for ailditional storage buildings needed by the
supply department storehouses for storing necessary supplies used
by the United States Army and Navy so that adequate supplies may
be readily available and easily obtainable at all times should ship-
ments in the future be drastically curtailed; $75,000 was for the con-
struction of an additional wing to section E, Gorgas Hospital, to
provide additional hospital facilities to care for the increased military
and naval personnel, as well as civilian population; and $88,200 was
for the enlargement of the Miraflores filter plant and pump station
necessary to relieve the overtaxed facilities of the present system
which are now running at capacity limits.
The appropriation for 1943 carried $8,031,500 for improvements
and betterments, and for the replacement of worn-out or excessively
deteriorated facilities, as follows:
Steam power plant, Cocoli ----------------------------------- $5, 250, 000
Installation of second raw water line and increase capacity of Mount
Hope filtration plant -------------------------------- 690, 000
Complete Pier No. 15, Cristobal -------- ------ 570, 000
Quarters for American employees ----- ----------- 500,000
Alteration and additions, Colon Hospital -- ------- ---- 370, 000
Replacement of switchboard, building No. 29, Balboa shops-------- 150, 000
2 additional towing locomotives, locks division - ------ 145, 000
Sewage disposal works, Atlantic area (plans only) ------ 100, 000
Harbor masters building Balboa 98,000
2 barracks type buildings, Corozal Hospital 60, 000
Launches for marine division--- --------- 54, 000
Additional water lines, Pedro Migiiil and Ancon -------- 44,500

Total--- 8, 031, 500
Steam power plant, Cocoli.-This appropriation is in addition to
the 1942 supplemental appropriation of $1,000,000 authorizing the
construction of the steam power plant at Cocoli. The plant is
required to meet the increasing demand for power facilities as a result
of the heavy increase in construction activities of The Panama Canal
and the Army and Navy. However, the cihaniges in the construction
schedules for the third locks have made it necessary to revise the
proposed program. Consequently, $1,615,000 will be used to install
Diesel power units at Gatun and Miraflores and to make necessary
changes in the existing substations and distribution lines and the
remaining $4,635,000 will be held in reserve until such time as con-
struction of the plant at Cocoli is resumed or a substitute plant
adopted.
Installation of second raw water line and enlargement of Mount
Hope filtration plant.-The increase in military and naval garrisons
and civilian employees and the heavy construction programs require
a greatly increased output of treated water from the Canal Zone





REPORT OF GOVERNOR OF THE PANAMA CANAL


water system. This appropriation provides for (a) the necessary
enlargement of the Mount Hope filtration plant to meet the Atlantic
side demand which it is estimated will soon exceed the capacity of
the present plant, and (6) the installation of an additional raw water
line required for the supply of sufficient water for treatment at the
enlarged plant.
Complete Pier No. 15, Cristobal.-Pier 15, Cristobal, was designed
to an effective over-all -length of 887 feet and built to a 557-foot
length in 1934 with NRA funds. Due to insufficient funds from that
source the pier was never completed. This appropriation is to be
used for completion of the pier to its full designed length in order to
provide the mechanical division shops with urgently needed work-
ing space for an increasing number of ships requiring marine repair.
Quarters for American employees.-The isolated position of the
Canal; the distance from employment bases; the difficulty in recruit-
ing employees in competition with domestic employment; and the
expense of transporting new employees make it imperative that the
Canal provide satisfactory living conditions for its employees if
excessive turn-over in the force, with attendant expense and disrup-
tion of work programs, is to be avoided. This appropriation will be
used for remodeling the present temporary 12-family quarters which,
although suitable for temporary occupancy during the emergency
construction period as family quarters, are not regarded as satisfac-
tory for that use indefinitely because of their small size and other
inadequacies, and to replace a group of dilapidated/and outmoded
old frame structures erected originally during early construction days.
During the present war period work will be limited to the construc-
tion necessary to provide sufficient quarters to furnish accommoda-
tions for the entire force and the program of alteration deferred until
it may be carried forward without interference with other projects
of great urgency.
Alterations and additions, Colon Hospital.-This appropriation
provides for the continued expansion of the hospital facilities on the
Atlantic side. The appropriation provides for the construction of a
new dispensary for American employees; the alteration of the existing
'dispensary building for the sole use of native cases alone; the construc-
tion of a new pharmacy building; and the alteration of existing pavi-
lions A and B and the administration wing. These alterations and
additions are necessary to relieve the present overtaxed facilities of
the hospital and clinics.
Replacement of switchboard, building No. 29, Balboa Shops.-This
appropriation provides for the replacement of the present switching
equipment used in heavy electrical work in the shops area. The
replacement will provide ample switchboard facilities at all times and






REPORT OF GOVERNOR OF THE PANAMA CANAL


will remove the growing danger of interruption of service from break-
downs in the existing obsolete and inadequate equipment.
Two additional towing locomotives, locks.-The addition of these
two towing locomotives for use on the locks, the first of six to be
obtained, will facilitate the handling of vital shipping through the
Canal and will provide a necessary expansion in the number of units
available for use.
Sewage disposal works, Atlantic area (plans only).-This appropria-
tion provides for the plans and study of the sewage disposal problem,
and the necessary plant needed for the betterment of health condi-
tions on the Atlantic side.
Harbormaster's building, Balboa.-Construction of this building
will provide a centralized location for the various marine and harbor
activities under the supervision of the harbormaster and will release
needed space on Pier 18 for cargo handling. However, under present
war conditions it is considered advisable to defer this construction
until a later date when materials and shipping space are not so
urgently needed for other more urgent projects.
Two barracks type buildings, Corozal Hospital.-This appropriation
provides for the construction of two barracks type buildings with a
capacity of 80 beds. When completed these wards will alleviate the
overcrowded conditions prevailing at the Corozal Hospital and will
permit some very desirable segregation of various classes of patients.
Launches for Marine Division.-This appropriation provides for the
replacement of two launches which have become obsolete and deterio-
rated by use. These replacements are necessary to maintain normal
standards of efficiency, and to insure economical operation of the
marine division launch service.
Additional water lines-Pedro Miguel and Ancon.-These new lines
are necessary to provide ample water facilities from the Miraflores
filtration and pumping plant to the Pedro Miguel and Ancon areas.
These two lines will supplement lines already in use, and will, in case
of emergency or damage to existing lines, make available at all times
an adequate supply of water for these areas.
REQUISITIONING OF VESSELS OF THE PANAMA LINE
The three vessels of the Panama Line, the S. S. Panama, S. S.
Ancon, and S. S. Cristobal were completed in 1939. These vessels are
sister ships and were especially designed to meet the needs of the
Canal-Railroad organization in transporting supplies and personnel
between the United States and the Isthmus, careful consideration
having been given to the spaces required for passenger accommoda-
tions and to refrigerated and dry cargo.





REPORT OF GOVERNOR OF THE PANAMA CANAL


As nw-ntioned on page 67 of last year's report., the S. S. Panama was
taken over by the Maritime Commission in June 1941. In January
1942, the War Dipairtmnent took over the S. S. Ancon and the S. S.
(Ci.tobal, the two remaining vessels of the line. As the vessels
formerly operated( by the line were sold after the three new vessels
were placed in service, the requisitioning of the three new vessels left
the Panama Line without ships with which to operate.
Since the inception of the Canal project, the Panama Line, function-
ing under the direct control and supervision of the Governor of The
Panama Canal, had operated( as an adjunct of the Canal-Railroad
enterprise. The three new sister ships enabled a weekly service to be
maintained between the States and the Isthmus for the transportation
of personnel, food, and supplies essential to the Canal enterprise and
to the defense forces stationed on the Isthmus. At the time the three
vessels were taken over they were being utilized substantially to
capacity in the service of this vital national defense project.
The vessels were requisitioned to meet war needs of great urgency.
Naturally no exception is taken to the commandeering of these vessels
and their diversion to runs of higher importance and urgency than the
transportation of freight and passengers between the United States
and the Isthmus. At the time the vessels were requisitioned the
desirability of allotting other vessels to the Panama Line was recog-
nized and the Secretary of War directed that other ships having
adequate tonnage and cold storage capacity and suitable passenger
accommodations be turned over to the Panama Line as replacements.
Because of the urgent demand for steamer tonnage, this directive of
the Secretary of War has not been carried out and, consequently, from
January 1942 forward, the Panama Line has had no ships under its
control and the Canal-Railroad enterprise had been without a highly
dependable supply line under its own control between the Isthmus
and the States.
Freight and other essential supplies are being carried in part by
the commercial lines still running to the Isthmus and in part by the
Army Transport Service. Because of the war, passenger traffic
between the Isthmus and the States has consisted primarily of new
employees brought to the Isthmus and former employees whose
services have terminated returning to the States. In the absence of
other facilities, most of the passenger traffic has been by airplane.
Every effort has been made by the Canal-Railroad organization to
take full advantage of the shipping facilities that have been made
available to it but the lack of tonnage directly und(ler the control of the
Canal-Railroad enterprise has beeni a severe handicap and has resulted
at times in serious interruptions in the flow of urgently needed mate-
rials, food, and supplies greatly in excess of those directly attributable
to the uncertainties and vicissitudes of war.






REPORT OF GOVERNOR OF THE PANAMA CANAL


The efforts which have been and are being made by the Maritime
Commission and by the Army Transport Service to provide trans-
portation for Panama Canal freight are commendable and the diffi-
culties under which they have operated are fully appreciated. What-
ever advantages have accrued from retaining temporarily in the ship-
ping pool of the Maritime Commission and the Army Transport
Service the three or four vessels which the Panama Line could operate
at high efficiency and at full capacity carrying indispensable freight
between the United States and Canal Zone ports should be weighed
against the disadvantages which have resulted from the discontinu-
ance of a vital supply line whose function was to supply the essential
needs of the Canal-Railroad organization and the defense forces
stationed on the Isthmus and the disuse of the organizational services
of the Panama Line which for several decades has functioned effec-
tively in maintaining the necessary flow of supplies with notable
economy and efficiency.


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