• TABLE OF CONTENTS
HIDE
 Front Cover
 Title Page
 Letter of transmittal
 Front Matter
 Table of Contents
 Introduction
 Section I: Canal operation and...
 Section II: Business operation...
 Section III: Administation
 Section IV: Government
 Section V: Financial and statistical...
 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/UF00097365/00033
 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: 1949
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: VID00033
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
    Letter of transmittal
        Page iii
        Page iv
    Front Matter
        Page v
        Page vi
        Page vii
        Page viii
    Table of Contents
        Page ix
        Page x
        Page xi
        Page xii
    Introduction
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
    Section I: Canal operation and trade via the Panama Canal
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
    Section II: Business operations
        Page 28
        Page 29
        Page 30
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
        Page 39
        Page 40
        Page 41
    Section III: Administation
        Page 42
        Page 43
        Page 44
        Page 45
        Page 46
        Page 47
        Page 48
        Page 49
        Page 50
        Page 51
        Page 52
        Page 53
        Page 54
        Page 55
    Section IV: Government
        Page 56
        Page 57
        Page 58
        Page 59
        Page 60
        Page 61
        Page 62
        Page 63
        Page 64
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        Page 69
        Page 70
        Page 71
        Page 72
        Page 73
        Page 74
        Page 75
    Section V: Financial and statistical statements
        Page 76
        Page 77
        Page 78
        Page 79
        Page 80
        Page 81
        Page 82
        Page 83
        Page 84
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    Back Cover
        Page 149
        Page 150
Full Text















UNIVERSITY
OF FLORIDA
LIBRARIES


I -~ -r







ANNUAL REPORT

OF THE


GOVERNOR

OF

THE PANAMA CANAL


FOR THE

FISCAL YEAR ENDED JUNE 30, 1949


For sole by the Superintendent of Documents, U. S. Government Printing Office
Washington 25, D. C. Price 35 cents




















LETTER OF TRANSMITTAL


WASHINGTON, D. C., October 17, 1949.
The Honorable, The SECRETARY OF THE ARMY,
Washington, D. C.
MY DEAR MR. SECRETARY: I have the honor to submit the report
of the Governor of the Panama Canal for the fiscal year ended June
30, 1949.
Very respectfully,
F. K. NEWCOMER, Governor.
m














OFFICIALS OF THE PANAMA CANAL AND PANAMA
RAILROAD COMPANY

The following is a list of the major officials of The Panama Canal
and the PtiI iInaII Railroad Comipany as of June 30, 1949:

The Panama Canal

Brig. Gen. F. K. Newvein-r, U. S. A., Governor.
Col. Herbert D. Vogel, U. S. A., Engineer of Maintenance.1
A. C. MEdingir, Superintendent, Dredging Division.
Capt. P. G. Nichols, U. S. N., M.ariiie Superintendent, Mariine Division.
E. C. Lombard, Executive Secretary, Executive Department.
Col. Howard Ker, U. S. A., Assistant Engineer, of Maiiriiuance.
Capt. Joseph L. Bird, U. S. N., Superintendent, Mi-clhiical Division.
L. W. Lewis, Chief Quartermaster, Supply Department.
Arnold Bruckner, Director of Finance, Department of Finance.
Maj. Gen. George W. Rice, U. S. A., Chief Health Officer, Health Department.
B. F. Buirdick, Chief of Washington Office and General Purchasing Officer.

Panama Railroad Company

Brig. Gen. F. K. Newcomer, U. S. A., President.
Vacant, Second Vice President.
A. L. Prather, General Manager.

(NEW YORK OFFICE)
W. R. Pfizer, Vice President.
J. C. Hughes, Secretary.
W. L. Hall, Treasurer.
1 The office of Engineer of Maintenance was vacant on June 30, 1949, the appointment of Colonel Vogel
having been made lffective July 1, 1949.













































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in 2010 with funding from
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http://www.archive.org/details/annualreportofgol 949cana










REPORTS OF HEADS OF DEPARTMENTS AND
DIVISIONS

Appendixes Not Printed

The material in the annual report of the Governor of The Panama Canal,
published in this volume, is to a large extent a summary of the data presented in
the annual reports from the heads of departments and divisions in the Canal
organization; the latter, regarded as appendixes to the report of the Governor,
are not printed. The annual reports of the Panama Railroad Company and the
Health Department are published separately; the latter is compiled for calendar
years only. The reports of the heads of departments and divisions, as listed
below, are on file at the Wahiniicton Office of The Panama Canal and at the office
of the Governor at Balboa Heights, C. Z.
Engineer of maintenance, report of.
Dredging division, report of superintendent.
Plans section, report of chief.
Safety section, report of safety engineer.
Special engineering division, report of supervising engineer.
Assistant engineer of maintenance, report of.
Electrical division, report of electrical engineer.
Locks division, report of superintendent.
AMetorology and hydrography, section of, report of chief hydrographer.
Municipal engineering division, report of municipal engineer.
Office engineering division, report of acting office engineer.
Department of Finance, report of director of finance.
Marine division, report of marine superintendent.
M\ri-hani>cal division, report of superintendent.
Supply department, report of chief quartermaster.
Executive department:
Civil affairs, division of, report of chief.
Clubhouses, Panama Canal, report of director.
General counsel, report of.
License bureau, report of chief.
Pay-roll bureau, report of chief.
Personnel supervision and management, division of, report of director of
personnel.
Police and fire division, report of acting chief.
Schools, division of, report of acting superintendent.
Siirveying officer actingr), report of.
Aeronautics section, report of chief.
Magistrates' courts:
Magi-trate:
Cristobal, report of.
Balboa, report of.
Pardon board, report of chairman.
Public defender (acting), report of.
Washington office, report of chief of office and general purchasing officer.
VII










TABLE OF CONTENTS
Page
Introduction ------ ------ 1
Operation and maintenance of the Canal ------------------------- 2
Operation of auxiliary enterprises-business operations ------- 3
Government-adminiistration --------------------------- 3
Services rendered to shipping by the Panama Canal------- ---- 3
Net revenues -- -------------- -------------------- 4
Replacements ----------------------------------------- 4

SECTION I-CANAL OPERATION AND TRADE VIA THE PANAMA CANAL

Statistics on ('anal traffic---------------------------------------- 6
Ocean-going tolls-paying traffic------------------- --- -- 6
Other traffic 6--------- ---------------------------
Trends in movement of cargo ----------------------------------- 7
Cargo statistics--------- ---------------------------------------8------ 8
Tolls receipts -- -- ------------------------------------ 8
Nationality of vessels transiting Canal--------------------------- 8
Average tonnage, tolls, and tons of cargo per cargo-carrying vessel-- 9
Steam, motor, and other vessels ----- -------------------- 9
Frequency of transits of vessels through the Panama Canal------- 9
Gross t'iiriajii of vessels------------------------ --- --- 10
Principal commodities ----------------------------------- 10
Ocean passenger trallie ---------- ----------- 11
Transient passengers----------------------------------- 12
Small tolls-paying vessels transiting Canal------------------------ 12
Vessels tranuisitiiing Canal without payment of tolls ------------------ 12
Revision of rates of toll ------- ---- ---- 13
Canal operation and maintenance----------------------------------- 14
Hours of operation--------------------------------------------- 14
Lockages and lock maintenance--------------------------------- 14
Operatiing schedule of locks--------------------------------- 14
Lockages-------------------------------------------------- 14
Delays to shipping----------------------------------------- 15
Maintcnianice and construction------------------------------ 16
Power for Canal operation-------------------------------------- 16
Water supply and general weather conditions ------------- 18
Water supply--------------------------------------------- 18
Air temperatures------------------------------------------ 19
Winds and humidity -------------------------------------- 19
Tides---------------------------------------------------- 20
Seismology --------------------------------------------------- 20
Marine activities --------------------------------------------- 20
Harbor activities------------------------------------------ 21
Aids to naviuation- --- ------- -------- ----- 21
Accidents to shipping-------------------------------------- 21
Inspections----------------------------------------------- 21
Salvage and towing---------------------------------------- 22
Operation of tugs------------------------------------------ 22
Ix







X TABLE OF CONTENTS

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

Canal operation and maintenance-Continued Page
Maintenance of channel-other dredging activities----------------- 23
Ordinary channel maintenance-Canal prism dredging --------- 23
Auxiliary dredging-other projects--------------------------- 24
Isthmian canal studies (Public Law No. 280)------------------ 24
Slides---------------------------------------------------- 24
Subsidiary dredging division activities ------------------------ 25
Ferry service- ----------------------------------------------- 26
Atrato-Truando survey----------------------------------------- 26

SECTION II-BUSINESS OPERATIONS

Panama Canal business operations ----------------------------------- 28
Mechainiical and marine work ------------------------------------ 29
Gross revenues-class and source --------------------------- 29
Marine repair work---------------------------------------- 29
Dry docks and marine railways ---------------------------- 31
Shop work ------------------------------------------------32
Plant improvement---------------------------------------- 32
Electrical work------------------------------------------------ 32
Purchases in the United States---------------------------------- 33
Storehouses and ship chandlery -------------------------------- 33
Obsolete and unserviceable property and equipment --------------- 34
Bulk petroleum products --------------------------------------- 34
Building construction and maintenance -------------------------- 34
Quarters----------__------_----- ---------------------------------35
Motor transportation ------------------------------------------ 36
Panama Canal press ------------------------------------------- 37
Revenues derived from rental of lands in the Canal Zone ---------- 37
Business operations under the Panama Railroad Company------------- 37
Trans-Isthmian railroad- --------------------------------------- 38
Receiving and forwarding agency-------------------------------- 39
Coalingplants ------------------------------------------------- 39
Telephone system ------------------------------------------ 40
Commissary division------------------------------------------- 40
Sales-----------------------------------------------------. 40
Purchases------------------------------------------------ 41
Hotels--------------------------- ------------ 41
Panama Line------------------------------------------------- 41

SECTION III-ADMINISTRATION

Departments------------------------------------------------------ 42
Operation and maintenance ------------------------------------- 42
Supply------------------------------------------------------- 42
Finance------------------------------------------------------ 43
Executive ----------------------------------------------------- 43
Health------------------------------------------------------- 43
Panama Railroad Company------------------------------------- 43
Proposed reorganization-------------------------------------------- 43
Changes in administrative personnel --------------------------------- 44





TABLE OF CONTENTS XI

SECTION III-ADMINIBTRATION-Continued
Page
Changes in administrative organization ------------------------------ 45
Force employed and rates of pay ------------------------------------_ 45
Employees paid at U. S. rates-----------------------. ---------------- 46
Additions to and separation from force --------------------------- 46
Turn-over in force--------------------------------------------- 47
Recruiting---------------------------------------------------- 47
Adjustment in wavc and hours of work. ------------- 48
Employees paid at local rates--------------------------------------- 48
Wages of local-rate employees ----------------------------------- 49
Sick and rest leave --------------------------------------------- 49
Cash relief for disabled employees paid at local rates --------------- 49
Repatriations ------------------------------------------------- 50
Central labor office------------------------------------------------ 50
Safety program- ---------------------- ---------- 51
Experiment gardens ------------------------------- 52
Clubhouses--------------------------------- -------- 53
Legislation ------------------------ --- --------- 54

SECTION IV-GOVERNMENT

Area of the Canal Zone -------------------------------------------- 56
Population--------------------- ------------------ 57
Public health ----------------------------------------------------- 57
Vital statistics ----------------------------------------------- 59
Malaria ------------------------------------------------------ 61
Hospitals--------------------------------------------- ----- ------ 62
Quarantine and immigration ------------------------------------ 62
Muniicipal engineering---------------------------------------------- 63
Water system------------------------------------------------- 63
Sewer system------_------------------------------------------- 64
Roads, streets, and sidewalks------------------------------------ 64
Other heavy construction activities ------------------------------ 64
Cities of Panama and Colon------------------------------------ 64
Miscellaii-oii activities---------------------------------------- 65
Public order ------------------------------------------------------ 65
Traffic accidents ---------------------------------------------- 66
Magistrates' courts------------------------------------------------ 67
Pardons and reprieves ---------------------------------------------- 67
Fire protection---------------------------------------------------- 68
Public school sytmOn --.. -- --------------------------------- 68
Postal system ----------------------------------------------------- 70
TIniniratinn visas- ------------------------------------------------ 71
Relations with Panama- ------------------------------------------- 71
Customs--------------------------------------------------------- 72
Shipping commissioner- -------------------------------------------- 72
Administration of estates ------------------------------------------ 73
Foreign corporations----------------------------------------------- 73
Insurance-------------------------------------------------------- 73
Licenses---------------------------------------------------------- 74
Commercial aviation----------------------------------------------- 74








XII


TABLE OF CONTENTS


SECTION V-FINANCIAL AND STATISTICAL STATEMENTS


Accounting system ---------------------------
Operation of Panama Railroad Company ------
Panama Canal operations -------------------
Index to tables--------------------------------
Financial tables------------------- ---
Shipping tables------------------------------
Miscellaneous tables -------------------------


Page
-------------- 76
------------- 77
---------------- 77
---------------- 78
-------------- 80-113
---------------- 114-140
---------------- 140-146









ANNUAL REPORT

OF THE GOVERNOR OF THE

PANAMA CANAL

INTRODUCTION
The Panama Canal is a lock-type canal that connects the Atlantic
and Pacific Oceans through the Isthmus of Panama, traversing a dis-
tance of approximately 51 miles from deep water to deep water. In
the dredged channel, the Canal has a minimum width of 300 feet and
a minimum depth of 42 feet. The greater part of the Canal channel is
at the level of Gatun Lake, the surface of which is 85 feet above sea
level. In transiting the Canal a ship is rIii-;dl in three steps orlockages
to the level of Gatun Lake and subsequently lowered in three steps
to sea level at the other side of the Isthmus. Each of the twin cliambniers
in each flight of locks has a usable length of 1,000 feet and width of 110
feet, and is about 70 feet deep. The flights are in duplicate, enabling
ships to be passed in opposite directions simultaneously.
Generally speaking, the Canal Zone comprises a strip of land
extending 5 miles on either side of the center line of the Canal channel
and three marine miles beyond low-water mark in the Atlantic and
Pacific Oceans. The Canal Zone includes also such areas outside of
the 5-mile limits as are covered by the waters of Gatun and Madden
Lakes and the lands inuiiiediately adjacent to these lakes which are
below the 100-foot and 260-foot contour lines, respectively, referred
to iiieani sea level. The use, occupation, and control of the Canal
Zone have been granted to the Unitedi States Government, by the
Republic of PfnniIi! under treaty agrlivimncts, for the construction,
iainteiianice, operation, sanitation, and protection of the Canal
enterprise, and the Republic has further granted to the United States
all rights, power, and authority within the Canal Zone which the
United States would possess and exercise if it were sovereign of the
territory.
SThe organization for the operation and niaintenance of the Canal
and the government of the Canal Zone was establislihedl by the Presi-
dent in conformiity with the Panama Canal Act of August 24, 1912.
Authority is vested in a Governor as head of the organization known
1






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


as The Panama Canal. The Governor is also president of the Panama
Railroad Company, an adjunct of the Canal enterprise organized as
a United States Government corporation. The Panama Canal
organization is an independent establishment in the Government
service, directly under the President, but as a matter of executive
arrangement, the Secretary of the Army represents the President in
the administration of Canal affairs.
Administration of the affairs of The Panama Canal enterprise in-
volves three main elements: (a) Operation and maintenance of the
Canal itself; (b) operation of the auxiliary enterprises, including the
Panama Railroad, necessary to provide adequately for the needs of
shipping and of the Canal operating forces; and (c) government of the
Canal Zone, populated largely by employees and personnel of the
armed forces, together with the families of these groups. The im-
mediate supervision of the administration of these various activities
rests with the heads of the nine major departments and divisions of
The Panama Canal and the Panama Railroad Company.
In addition to the foregoing, a coordinated organization is main-
tained in the Canal Zone by the United States Army, the United
States Navy, and the United States Air Force, under the over-all
command of the Commander in Chief, Caribbean. The United States
Department of Justice also maintains a district court in the Canal
Zone, with a district judge, a district attorney, and various judicial
and other officials independent of The Panama Canal organization.
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
for this area has exercised final authority over the operation of the Pan-
ama Canal and all its adjuncts, appendaiints, and appurtenances,
including control and government of the Canal Zone; and the Gover-
nor 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 presents
itself for transit with a maximum of safety and a minimum of delay.
Essentially this involves the maintenance of the waterway, the oper-
ation of the locks, and the control of traffic through the Canal.
Throughout the year the Canal force maintained its high standard
for expeditious service not only in the actual transiting of ships but in
providing emergency repairs, fuel, supplies, and the various supple-





REPORT OF THE GOVERNOR OF THE PANAMA CANAL


mentary services incidental to shipping. There were no interruptions
of ship traffic during the year.

Operation of Auxiliary Enterprises-Business Operations

Second only to the operation of the Canal is the funiictionii of supply-
ing necessary services to shipping and the Canal operating force.
These services are provided( under coordinated and cenlitralized con-
trol by the various business units of The Panama Canald and Panama
Railroad Company and include oil and coal bunkering plants; store-
houses for food, ship chandlery, and other essential supplies; marine
repair shops; harbor terminal facilities for passengers and for handling
and transshippiiing cargo; a railroad line across the Isthmus; a steam-
ship line between. New York and the Canal Zone; water and electric
power systems; and living quarters and retail commissary stores for
the operating force.

Government-Administration

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

Services Rendered to Shipping by the Panama Canal

The principal services rend(lered to shipping by the Canal and its
adjuncts are shown in the following table, which presents a compari-
son of the activities during the fiscal year 1949 with the 2 years
immediately preceding:

Fiscal year

1949 1948 1947

TRAFFIC THROUGH THE PANAMA CANAL
Number of vessels I r in 7irip the Canal:
Ocean-going lulls-ima inig vessels---..---------..--------------- 4,793 4,678 4,260
Small tolls-paying vessels (see page 12)... -------------------- 1,275 1.242 847
Total tolls-paying vessels. .---------. --------.. -------- 6.068 5,920 5,107
Vessels exempt from payment of tills (see page 12)-------- 1,293 1.079 1,265
Total transits----.--------------------------- -- --- 7... i' 1 1.







4 REPORT OF THE GOVERNOR OF THE PANAMA CANAL


Fiscal year

1949 1948 1947

TRAFFIC THROUGH THE PANAMA CANAL-continued
Tolls levied-ocean-going vessels ----------------------------- $20,541,230 $19,956, 593 $17,596,602
Tolls levied-small vessels --------.--------------------------- $76,405 $60,846 $37,759
Total tolls ----------------------------------- $20,617,635 $20,017,439 $17,634,361
Value of tolls on vessels subject to free transit---------------- $2,487,791 $1,824,321 $2,305,787
Cargo passed through Canal, carried by: Tons Tons Tons
Ocean-going tolls-paying vessels ----------------------- 25,305,158 24,117,788 21,670,518
Small tolls-paying vessels ------------------------------ 31,975 25,690 16,299
Vessels exempt from payment of tolls------------------ 2,245,455 1,520,727 1,001,608
Total cargo---------------------------------------- 27,582,588 25,664,205 22,688,425
Net tonnage (Panama Canal measurement) of ocean-going
tolls-paying vessels ----------------. -------------------- 23,473,236 22,902,064 20,233,043
Cargo per Panama Canal net vessel ton (laden ocean-going
tolls-paying vessels only).---..------------------.------------- 1.270 1.263 1.305
Average tolls per ton of cargo (laden ocean-going tolls-paying
vessels only) --------------------------------------------- $0.708 $0.713 $0.689
OTHER SERVICES
Calls at Canal Zone ports by ships not transiting the Canal--- 1,219 1,176 826
Cargo handled and transferred at ports (tons) --------..----- 1,189,266 1,297,963 1,492,931
Coal sales to ships (tons) ------------------------------------. 15,563 18,560 28,989
Coal-number of vessels bunkered --------------------- 36 53 102
Fuel oil-total barrels pumped (both incoming and outgoing),
excluding Panama Canal use------------------------------ 10,389,753 11,697,918 9,995,865
Fuel oil-number of vessels handled----------------------- 2,328, 2,037 2,089
Repairs to ships other than Panama Canal equipment:
Number of vessels repaired--------------------------- --- 1,135 1,467 1,587
Number of vessels dry docked -------------------------.- 100 130 205
Sales to ships (except U. S. Army and Navy):
Provisions (commissary sales)--.----------------------- $1,029,970 $1,244,759 $1.,221,529
Chandlery (storehouse sales) --------------------------- $199,301 $306,241 $168,485


Net Revenues

During the fiscal year 1949 the revenues from tolls charged to
shipping using the Canal were $20,612,042.88 and miscellaneous
receipts amounted to $132,867.90, a total of $20,744,910.78. The net
appropriation expenses were $21,217,495.11, resulting in a net deficit
of $472,584.33. This net deficit was caused primarily by increased
operating expenses while tolls rates remained unchanged. The
business operations under The Panama Canal produced a net revenue
of $1,006,959.04. Thus a net revenue of $534,374.71 was derived
from the combined operations of the Canal and its business units
during the fiscal year 1949, as compared with a net rev-enLuie of
$2,622,675.75 in the fiscal year 1948.

Replacements

The past fiscal year marked the close of 35 years of successful opera-
tion of The Panama Canal. A very important factor contributing to
this creditable record is the care that has been taken to maintain all
parts of the Canal structures and equipment in good operating con-
dition.





REPORT OF THE GOVERNOR OF THE PANAMA CANAL


The total capital value of The Ptmanai Canal as of June 30, 1949,
was $721,907,811, which includes $138,901,259 in special itemr projects
and additional facilities, $396,380,372 in nondepreciable property
such as locks, dams, and other concrete structures, and $186,626,180
in depreciable properly. Against this investment in depreciable
property is an accrued d prrciation of $58,859,595.
The special item projects, additional facilities, and the nonde-
preciable property require but little expeindlituire for upkeep. How-
ever, the deprocia;l 1e property requires systematic and orderly replace-
ment as its economic life is exhausted, and appropriations must be
made by Congress for this purpose, as well as for the construction of
new facilities as need therefore develops.


859907 -50- -2













Section I


CANAL OPERATION AND TRADE VIA

THE PANAMA CANAL

STATISTICS ON CANAL TRAFFIC

Ocean-Going Tolls-Paying Traffic

Although Canal traffic I was considerably curtailed by the long-
shoremen's strike in the United States during the early months of the
fiscal year 1949, small increases were recorded in the principal features
of Canal traffic, in comparison with the preceding fiscal year. Thus,
traffic in 1949 was the best since the end of World War II, and in-
creased to about 90 pt'reiit of 1935-39 averiagv.
The following is a tabulation of four of the principal features of
this traffic for the fiscal year 1949, together with those in the two
fiscal years immediately prmceding:

Fiscal year
1949 1948 1947
Numberof transits. ------------------------------------_ .- 4,793 4,678 4,260
Net tonnage (Panama Canal measurement) ------------..- 23,473,236 22,902,064 20,233,043
Cargo (tons of 2,240 pounds) ----. ---- -------- ------ 21,305,158 24,117,788 21,670,518
Tolls------- ------ -- -------- ------------..', 541, 230 $19,956,593 $17,596,602

Other Traffic

In addition to the 4,793 ocean-going tolls-paying vessels passing
through the Canal in the fiscal year 1949, there were 1,275 tolls-paying
vessels under 300 net tons, Panama Cinnil measurement (consisting
principally of small ltiniana boats operating in local waters), and
1,293 transits of vessels exempt from the payment of tolls, a total of
7,361 transits for 1949, in comparison with a total of 6,999 in the fiscal
year 1948 and a total of 6,372 in the fiscal year 1947. The Panama
Canal does not compile detailed statistics on small tolls-paying
1 Vessels of 300 net tons and over (Panama Canal measurement) for vessels rated on net tonnage, or of 500
tons displacement and over for vessels rated on displacement tonnage (naval vessels, dredges, etc.).
6





REPORT OF THE GOVERNOR OF THE PANAMA CANAL


vessels nor on vessels which transit the Canal without payment of
tolls; hence, except for the sections appearing under the captions
"Small Tolls-Paying Vessels Transit ing Canal" and "Vessels Tran-
siting Canal Without Payment of Tolls" on pages 12 and 13, the
following paragraphs pertain only to oceani-going tolls-paying traffic.

Trends in the Movement of Cargo
The ci nmbined movement of cargo in both directions in the fiscal
year 1949 totaled 25,305,158 long tons, a gain of 1,187,370 tons, or
4.9 percent, in comparison with the tonnage passing through in the
fiscal year 1948. This increase in the combined movemeWnt, was due
wholly to greater shipments from the Atlantic to the Pacific which
advanced from 8,679,140 tons in 1948 to 9,899,088 tons in 1949, a
gain of 14.1 percent. From the Pacific to the Atlantic the tonnage in
1949 and 1948 was substantially the same-15,406,070 tons in 1949
as against 15,438,522 tons in 1948.
Afla tidc to Pacific.-An analysis of the Pacific-bound tonnage mov-
ing in the principal routes of trade reveals that the greatest increase
occurred in the tonnage moving from eastern United States to Asia,
this movement advanicinig from 2,210,510 tons in 1948 to 3,100,599
tons in 1949, a gain of 40.3 percent. This important gain was the
direct result of the heavy movement to Japan of coal which totaled
over a million tons in 1949 in comparison with but 11,706 tons in
1948. Shipments from the east coast United States to Australasia,
amounting to 759,498 tons, and from Europe to Australasia, totaling
554,437 tons, improved over the fiscal year 1948, showing gains of
26.1 percent, and 34.0 percent, respectively. In the more important
trades which showed decreases in comparison with 1948, the Pacific-
bound movement in the United States iiitercunstal trade dropped
from 1,719,005 tons in 1948 to 1,449,561 tons in 1949, a loss of 15.7
percent. The curtailment in the movement in United States inter-
coastal trade was largely the result of the maritime strike which
paralyzed shipping for about 3 months on the P;iefic coast of the
United States. Cargo routed from eastern United States to the west
coast South America dropped from 886,235 tons in 1948 to 860,376
tons in 1949, and that from the West Indies to the west coast South
America decreased from 829,496 tons in 1948 to 752,264 tons in 1949,
declines of 3.0 percent and 9.3 percent, respectively.
Pacific to ..1tlantic.-While the total tonnage from the Pacific to
the Atlantic in 1949 was substantially equal to that moving in that
direction in 1948, a number of signifiamint. changes occurred in the
various routings of cargo. An outstanding gain in comparison with
the preceding year was recorded in cargo routed from the west coast
South America to the east coast United States which increased from






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


3,416,518 tons in 1948 to 4,387,317 tons in 1949, a gain of 28.4 percent.
(NOTE.-A gain of over a million tons in shipment of iron ore from
Chile is reflected in this over-all increase.) In other trades contribut-
ing important tonnage to Canal traffic, the following gains also were
recorded: Asia to the east coast United States with 1,688,654 tons,
113.4 percent; west coast South America to Europe, with 1,130,194
tons, 3.2 percent; and Aiistra;lasia, to Europe, with 1,198,932 tons,
14.8 percent. In contrast to these gains was the diminished volume
recorded in three trades which rank high in Canal traffic, namely, the
United States intercoastal trade which decreased from 2,118,799 tons
in 1948 to 1,641,157 tons in 1949, a loss of 22.5 percent; west coast
United States to Europe, which declined from 1,953,195 tons in 1948
to 794,491 tons in 1949, a loss of 59.3 percent; and west coast Canada
to Europe which dropped from 2,482,088 tons in 1948 to 1,787,646
tons in 1949, a loss of 28.0 percent.

Cargo Statistics
In tables Nos. 39 through 42, in section V, will be found a com-
parison of cargo tonnage shipped over the various trade routes,
together with summaries of the principal commodities comprising
these shipments.
Tolls Receipts
The receipts from tolls reported to the United States Treasury
for the fiscal year 1949 were $20,612,042.88. This figure includes
tolls amounting to $76,405.06 on local tolls-paying vessels which are
not included in Canal statistics covering ocean-going tolls-paying
traffic. The receipts reported to the United States Treasury, more-
over, reflect adjustments totaling $5,591.70 on vessels transiting in
the previous year. These two items account for the difference of
$70,813.36 between the tolls receipts reported to the Treasury and
the tolls of $20,541,229.52 shown in the traffic studies in this report.

Nationality of Vessels Transiting Canal
Thirty flags were represented in the ocean-going tolls-paying traffic
passing through the Canal in the fiscal year 1949, in comparison with
33 in the previous fiscal year. Vessels of United States registry,
accounting for 10,591,754 net tons, Panama Canal measurement,
ranked first in the volume of net tonnage, while those of British
registry, with 5,289,215 net tons, Panama Canal measurement, were
second. As in former years, vessels of the United States and Great
Britain made up the greater part of the traffic, comprising in 1949
45.1 percent and 22.5 percent, respectively, of the total net tonnage.
The nationalities next in order were Norwegian, with 8.5 percent of






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


the total, followed by Panamaninii Swedish, and Honduiiran, each
with a little more than 3 percent.
Further particulars on traffic by nationality will be found in table
No. 31, section V.

Average Tonnage, Tolls, and Tons of Cargo per Cargo-Carrying
Vessel

The average mieasureiment tonnage, tolls, and tons of cargo per
cargo-carrying vessel of 300 net tons and over, Panama Canal meas-
urement, transiting the Panama Canal during the past three fiscal
years are shown in the following tabulation:

Fiscal year
Feature
1949 1948 1947

Measured tonnage:
Panama Canal net -------.. ------------- --- 4,936 4,930 4,799
Registered gross -----. .. .-- .------------------------- i, 675 6,679 6,531
Registered net 3,965 3,994 3,902
Tolls ------------------- -------------------------------- $4,310 $4,296 $4,165
Tons of cargo (including vessels in ballast) -------------------- 5,338 5,197 5,148
Tons of cargo (laden vessels only)-. -------------------------- 6,432 6,330 6,318

NoTE.-Computation of above anvi-r..iages is based on vessels engaged in normal commerce; craft such as
yachts, naval vessels, etc., are not considered.

Steam, Motor, and Other Vessels

The following table shows ocean-going tolls-paying vessels tranisiting
the Canaiil during the past three fiscal years, segregated cording to
method of propulsion:

Fiscal year

1949 1948 1947

Steamers:
Oil burning.---- ...---------------------------........ ... .... ----- 3,164 3,155 2,926
Coal burning...-------- ----------------- ----------------- 89 136 256
Motorships-------------- -.. 1,488 1,350 1,027
Not classified I ------------. -.---.--.. -----.-. ---------- 52 37 51
Total................ ... .. ...------------------------------------ -_ 4,793 4,678 4,260

1 Naval vessels, yachts, etc.

Frequency of Trainsits of Vessels Through the Panama Canal

During the fiscal year 1949, 1,442 individual ocean-going tolls-
paying vessels, representing 30 nationalities, passed through the
Panama Canal. In aggregate these vessels made a total of 4,793
transits. The number of transits made by individual ships varied
from 1 to 36, and averaged 3.32. The greatest number of transits,






10 REPORT OF THE GOVERNOR OF THE PANAMA CANAL

36, was made by the Moshill, a vessel of Norwegian registry, engaged
in the trade between Gulf ports of the United States and South
America.
Vessels of United States registry led in the number of individual
vessels transiting the Canal during the year with 469, as well as in
the number of transits, 1,970; those of the British registry were second
in number of both individual vessels and of transits, with 420 and 915,
respectively.
Further information on the frequency of transits of vessels will be
found in table No. 34, section V.

Gross Tonnage of Vessels

The 4,793 ocean-going tolls-paying vessels which transited the
Canal in the fiscal year 1949 included 4,771 vessels rated on net
tonnage and 22 vessels rated on displacement tonnage.
Of the 4,771 vessels rated on net tonnage, 2,020, or 42.3 percent,
were vessels ranging between 6,000 and 8,000 registered gross tons.
The average registered gross tonnage of all vessels was 6,650 as com-
pared with 6,654 in the previous fiscal year.
Further information on gross tonnage of vessels will be found in
table No. 35, section V.

Principal Commodities

Statistics on commodities passing through the Panama Canal are
not precise because at the time of transit it is not required that com-
plete manifests of cargo carried by vessels be submitted to the Canal
authorities. In lieu of a manifest the master of each vessel is required
to submit a cargo declaration, which is a briefly itemized statement,
listing the principal items of cargo carried and showing their ports
or country of origin and destination. These cargo declarations form
the basis of the commodity statistics. Thrie is a natural tendency
not to list small miscellaneous shipimvnt- but to include them under
the head of general 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 com-
modities are likely to be in excess of the tonnage reported during the
year and shown in the annual summary. Hence, all commodity
statistics carried in this report are subject to inaccuracies arising from
this source.
The commodity of the great test. volume passing through the Canal
from the Atlantic to the Pacific in the fiscal year 1949 was mineral oil,
totaling 2,186,777 tons, followed by coal and coke, with 1,173,893 tons,






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


and manufactured iron and steel products, with 1,163,779 tons. In
the movement from the Pacific to the Atlantic, commodities exce-'ding
a million tons included ores (various), with 4,028,279 tons; lumber,
with 2,005,069 tons; nitrate, with 1,445,982 tons; and wheat, with
.1,127,581 tons.
For details on principal commodities passing through the Canal,
see table No. 36, section V.

Ocean Passenger Traffic

The following tabulation shows by month the number of passengers,
exclusive of transients, discimbarking and embarking from vessels at
Canal Zone ports during the fiscal year 1949, segregated between first
class and all others, with comparative totals for the fiscal years 1948
and 1947:

Passengers disembarking Passengers embarking

First class Others Total First class Others T..r iJ

July - 1,261 48 1,309 1,599 36 1,6 35
Au ut . ... 1,571 186 1,757 1,938 213 2,151
..i-r .. . .. .... 1,374 38 1,412 1,303 201 1,504
October -- ..-------- ..-- .----------. 1,451 194 1, 645 1,334 51 1,385
November .. --------------------- 1,072 49 1,121 697 228 925
December-------- ---------------------- 964 167 1,131 720 32 752
January ------ --- .--- .----- .---- 1,266 312 1,578 791 166 957
February.-----------------...-- .------------ 855 123 978 820 153 973
March ------------ .-----..------.. ----- 731 47 778 1,128 193 1,321
April ------..- -..-.-.-.--- 923 999 1,922 1,418 147 1,565
May -------------------------------------- 935 69 1,004 1,634 123 1,757
June ..-----. .---- .--...- --.- ..---- 1,224 43 1,267 2,203 203 2,406
Total:
1949.. ----- ---- .....-. ..-- 13,627 2,275 15,902 15,585 1,746 17,331
1948.--------------------------------- 12,302 578 12,880 12,381 1,402 13,783
1947 ---...-...--.-------- -...--. 9,147 859 10, 006 9,066 3,504 12,670


The following table shows the passenger t traffic through the ports
of Cristobal and Balboa during the fiscal years 1949, 1948, and 1947:

Port of Cristobal Port of Balboa

I'jI 0n- 1'^17 1':J' I ''

Passengers i.-rl..rkirj . 12.716 12,001 9,295 3,186 879 711
Passengers *:riib.i.rkin ..... .. 13,534 11,390 8,799 3,797 2,393 3,771


A further segregation of the passenger movement for 1949 shows
that 13,304 incoming and 15,478 outgoing passengers came from or
were de tined to ports on the Atlantic, and 2,598 inroiniig and 1,853
outgoing p egers were brought from or were (Idestinied to ports on
the Pacific.







12 REPORT OF THE GOVERNOR OF THE PANAMA CANAL

Transient Passengers

In addition to the figures shown in the foregoing table covering
passengers disembairking and embarking, there were 59,914 transient
passengers brought to the Isthmus by vessels calling at Canal ports
during the fiscal year 1949. The 1949 figure is an itnci'aiise of 19,362
(47.7 percent) over the number recorded in 1948, and more than dou-
ble the number passing through in the fiscal year 1947.
The origin and destination of these transient passengers are indicated
in the following tabulation:

Fiscal year

1949 1948 1947

Remaining on board vessels transiting Canal:
Atlantic to Pacific --- .. --------------------------- 23,220 21,099 15,694
Pacific to Atlantic-------------------------------------------- 22,947 11,273 13,019
Remaining on board vessels entering port but not transiting Canal:
Atlantic to Atlantic --- --------------------------- 13,619 7,875 868
Pacific to Pacific----------------------------------------------- 128 305 104
Total--------------------------------------------------------- 59,914 40,552 29,689


Small Tolls-Paying Vessels Transiting Canal

Transits of small cargo-carrying vessels and other miscellaneous
craft of less than 300 net tons (Panama Canal measurement) or 500
displacement tons (for vessels rated on displacement tonnage) are
excluded from statistics on ocean-going tolls-paying traffic, although
the vessels are not exempt from the payment of tolls. Transits of
these small vessels during 1949, 1948, and 1947 together with the
tonnage, tolls, and the amount of cargo carried, are summarized in the
following table:

Fiscal year 1949 Total, fiscal year

Atlantic to Pacific to Total 1948 1947
Pacific Atlantic

Number of transits:
Rated on net tonnage------------------ 616 658 1,274 1,242 847
Rated on displacement tonnage ------ 1 ------------ 1------------
Total transits------------------------ 617 658 1,275 1,242 847
Panama Canal net tonnage --------------- 45,667 48,830 94,497 76,258 47,580
DiI1l.n iuD.s i tonnage..-------------------- 371 .----- 371 ------- ---------
Tolls -- -------------- -------- $33,755.50 $42,649.56 $76,405.06 $60,846.12 $37,758.78
Cargo (tons) -- ---------------------- 3,160 28,815 31,975 25,690 16,299


Vessels Transiting Canal Without Payment of Tolls

The following classes of vessels are entitled to free passiiage of the
Panama Canal: Vessels owned, operated or chartered by thle Govern-





REPORT OF THE GOVERNOR OF THE PANAMA CANAL


rinents of the United States and Republic of Panama; war vessels of
the Republic of Colombia; and vessels tran sit ing solely for the purpose
of having repairs made at the Panama Canal shops. Such vessels
are not iincludled in the general statistics pertaining to Canal traffic.
The following table shows for the fiscal year 1949 the number of
transits in each category outlined in the precediniig paragraph, and the
amount of tolls to which such vessels would have been subject at the
prescribed rates if tolls had been charged against tie-m.

.Number of Value of tolls
IT.L I.transits

Government of:
United States ...----------------------------------------------------------- 1,265 $2,461,617
Colombia ------------------------------------------------------------ 21 15,444
Panama----------------------------------------------------------------- 3 21
Transiting for repairs ------------------------------------------------------- 4 10,710
Total----------------------------------- -------------------------- 1,293 2,487,792

Further details on vessels transiting the Canil without payment
of tolls will be found in table No. 43, section V.

Revision of Rates of Toll

In the Governor's report for the fiscal year 1948 it was reported
that the President of the United States, by Proclamation No. 2775,
signed March 26, 1948, prescribed for the Panama Canal a revised
schedule of rates of toll, effective October 1, 1948. On September 7,
1948, the President issued a proclamation (No. 2808) which postponed
until April 1, 1949, the effective date of Proclamaiition No. 2775, and
on March 12, 1949, the President issued Procliama tion No. 2831 which
further postponed the effective date of Proclamation No. 2775 until
September 1, 1949.
The issinuice of the latter proclamation followed the adoption on
Febru-i ry 28, 1949, of House Resolution No. 44, Eighty-first Congress,
first session, in which the Committee on Merchant Marine and Fish-
erirs (1) is authorized to make a full and complete study and analysis
of the financial operation of The Panama Canal and to recommend to
the Congress concerning what elimints of cost should be properly used
in the future as a basis of a policy to be followed in establishing and
levying tolls for the use of the Panama Canal for t ninsit purposes, and
(2) is directed to report its findings, together with its reconimendat ions
for such legi4iotiion as it may deem advisable, to the House of Repre-
sentatives at the earliest practicable date, but not later than June 30,
1949. On June 9, 1949, House Resolution (No. 245) \vi; adopted,
extending to September 1, 1949, the time for filing the report.






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


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
terminus at intervals of from M to 1 hour. The following is a summary
of normal arrangements in effect at the end of the fiscal year.
From Cristobal harbor, first ship at 6 a. m., last at about 3 p. m.;
from Balboa anchorage, first ship at 6 a. m., last at 3:30 p. m.
Tankers and vessels carrying hazardous cargoes are dispatched at
the discretion of the port captain and normally are not permitted to
proceed( unless that can clear Gaillard Cut before dark.

Lockages and Lock Maintenance

Operating Schedule of Locks
Three operni t ing crews were maintained at Gatun and Miraflores
Locks and two crews were maintained at Pedro Miguel Locks through-
out the year. Additional crews were assigned during the year as
were required to expedite the transit of ships. The following oper-
ating schedules were in effect at the Locks on June 30, 1949:


Gatun:
Shift No. 1: 7 a. m. to 3 p. m.-8 locomotives.
Shift No. IX: 10 a. m. to 6 p. m.-8 locomotives.
Shift No. 2: 3 a. m. to 11 p. m.-8 locomotives.
Pedro Miguel:
Shift No. 1: 8 a. m. to 4 p. m.-8 locomotives.
Shift No. 2: 1:30 p. m. to 9:30 p. m.-8 locomotives.
Miraflores:
Shift No. 1: 7 a. m. to 3 p. m.-8 locomotives.
Shift No. 2: 9:30 a. m. to 5:30 p. m.-8 locomotives.
Shift No. 3: 3 D. m. to 11 D. m.-8 locomotives.


Lockages
The number of lockages and vessels handled (including Panama
Canal vessels) is shown in the following table, by months, for the fiscal
year 1949, with corresponding totals for the previous 5 years:






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


Gatun Pedro MiRuel Miraflores

Lockages Vessels Lockages Vessels Lockages Vessels

1948
July ------------------------------- 445 629 468 680 474 691
August- -457 617 473 638 477 649
September ----- 450 626 475 682 477 698
October -------------------------- 430 597 445 598 444 615
November 401 537 416 534 416 525
December -------------------- 415 580 430 576 429 573
1949
January -- 456 616 473 623 473 628
Fruary ---------------------------- 412 559 433 625 433 630
March.. --- 494 699 520 771 513 744
April -- 479 687 505 749 513 740
May 468 673 500 699 495 697
June --------------------- 464 680 478 688 479 700
Total----------------------- 5,371 7,500 5, 616 7, 863 5,623 7,890
Fiscal year:
1944 -- 3,267 5,846 4,036 7,632 3,656 6,424
1945 --------------------------- 5,261 9,201 6,268 12,334 5, 635 10,097
1946 ------------- 6,823 9,901 7,139 10,654 7,076 10,561
1947 ---------------------- 4,858 6,674 5,155 7,281 5,084 7,221
1948 ------------------- 5,197 7,093 5,422 7,578 5,367 7,574


Total lock ages for the three locks were 3.9 permit, above the number
handled during the previous year. All chambers were available for
service throughout the year. A water saving program using short
chamber lockages was started on Deciember 31, 1948, at the Pacific
locks and on JIanuary 3, 1949, at the Atlantic locks; this procedure
was discontinued at all locks on May 16, 1949.
The average number of lockages made daily and the average number
of vessels handled per lockage during each of the past five fiscal years
are shown in the following tabulation:

Average number of lockages Average number of vessels
per day per lockage
Fiscal year--- -- -- -- ------
Gatun Pedro Mira- Gat. Pedro Mira-
Gatun Miguel flores "atu Miguel flores

1945 ----- 14.4 17.1 15.4 1.74 1.96 1.79
1946 ...------------------------..-- 18.7 19.5 19.4 1.45 1.49 1.49
1947 - 13.3 14.1 13.9 1.37 1.41 1.42
1948 ... - - - - - 14.2 14.8 14.6 1.36 1.40 1.41
1949--.-------------------------------- .. 14.7 15.3 15.4 1.40 1.40 1.40


Delays to Shipping

The lock operating machinery functioned smoothly throughout the
year except for a few incidents of faulty operation or minor failures of







16 REPORT OF THE GOVERNOR OF THE PANAMA CANAL

equipment. The following summary includes all delays to vessels
while transiting the locks due to the incidents mentioned.

,Num ber of Aggregate delay caused
lockages all vessels
delayed

Gatun-------------------------------------------------------------- 28 5 hours 3 minutes.
Pedro Miguel ---------- ------------------------------------------ 13 4 hours 16 minutes.
Miraflores ----------------------------------------------------------- 31 4 hours 17 minutes.
Total---------------------------------------------------------- 72 13 hours 36 minutes.

Maintenance and Construction
Regular inspection and maintenance were continued for all locks
machinery and equipment. Routine tests and inspection were regu-
larly carried out with a view to detecting weak points and potential
failures before break-downs occurred. Where inspection and test
indicated that a mechanical or electrical part or device was in need
of replacement or repair, appropriate action was taken by the opera-
tion and maintenance forces of the locks.
The study for the modernization of the electrical power and distribu-
tion system for all locks, begun during the fiscal year 1946, was
continued. Requisitions have been placed for the purchase in the
United States of a large part of the material and equipment required
at the Pacific locks, including primary cable, power and lighting
transformers, and secondary switchgear. Construction of eight new
above-ground distribution houses on the wing walls is near completion,
and that of primary ducts has been started. Work on this project
at the Atlantic locks was confined to study and designs.
Construction and erection by the mechanical division of three of the
six new towing locomotives proposed for the Pacific locks is well
advanced, and delivery to the locks division for wiring and installation
of electrical equipment is expected to begin within the next 6 months.
The new locomotives will incorporate a number of important improve-
ments from existing equipment.

Power for Canal Operation

The following table summarizes and gives pertinent data relative to
the electric power generated by the power system of The Panama
Canal for the past three fiscal years:






REPORT OF THE GOVERNOR OF THE PANAMA CANAL 17

[Kilowatt-hours]

1 iSrCl year

1949 1948 1947

Gross power generated:
Gatun hydro station------------------------------- 99, 534, 100 103, 912, 400 88, 577, 400
Madden hydro station -------------------------------- 149,214,900 143,874,700 151,581,000
Diesel stations------------------.---- 21, 670,200 17,771,300 10,611,600
Total generated-- -------------------------------- 270,419, 200 265, 558,400 250, 770,000
Consumed in station service ---------------------------- 2, 799, 235 2, 647, 448 2, 478, 571
Net generator output. --- --------.-------------- 267,619,965 262,910,952 24,2',1.429
Distributed to consumers-------------- .--------------- 241, 325,061 235, 682, 203 222, 126,106
Transmission loss:
Kilowatt-hour ----------------------------------- 26,294,904 127,228, 749 26,165,323
Percent --------------------------------------------- 9.7 110.2 10.5
Peak load (kilo tts.i ------..------------------------------- 48,900 47,800 46,500
Date-----------------..- ---------------------------------- Jan. 10, 1949 Mar. 8,1948 Feb. 14,1947

1 Corrected figures.

During the fiscal year 1949, Nos. 1 and 3 generating units at the
Gatun hydroelectric station were overhauled and repairs were made
to the No. 4 general ing unit.
The rehabilitation of the Balboa substation was begun during the
year. The principal features of this work consisted of the replacement
of worn-out equipment and the overhaul of other equipment and
machinery. The erection of a new 44,000/11,000-volt outdoor
substation at the rear of the present station was in progress at the
close of the fiscal year.
At the Gamboa substation a new 3,000 kilovolt-amperes transformer
was installed to relieve the overload on the 2,000 kilovolt-amperes
trainsfornwri presently in use. This installation was practically
complete at the end of the year.
The complete disassnnbly, cleaning, adjustment and reassembly
of all drum gate differential valves and adjustment of needle valves
were completed at Madden Dam during the year.
Service was temporarily interrupted at various substations on
seven occasions. There were 40 transmission line failures during
the year, of which 3 were caused by lighting flash-over, 2 by line wire
breaks, 2 by mechanical failure of an insulator string, 1 by an insulator
flash-over, 1 by cable pothead flash-over, 1 by a tree falling on line,
1 by ground-wire break, 11 by animal contact, 4 by faulty operation
of protective relays, and 14 by unknown causes.






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


Water Supply and General Weather Conditions
Water Supply
The water requirements of The Panama Canal for hydroelectric
power, lockages, and municipal use are supplied by Madden and
Gatun Lakes, which serve as storage reservoirs for a drainage area of
1,285 square miles. All outflow from Madden Lake, whether spilled
at Mnadden Dam or drawn for the use of the Madden hydroelectric
station, flows into Gatun Lake, and, together with the direct inflow
from the area downstream from Madden Dam, is available for Gatun
Lake uses. The total inflow into Madden and Gatun Lakes during
the year ended June 30, 1949, amounted to 165,194 million cubic feet,
which is 20 percent below the average inflow for the 35 years since the
formation of Gatun Lake. Evaporation losses from Madden and
Gatun Lakes totaled 22,374 million cubic feet, leaving 142,820 million
cubic feet available for use.
For further details on water supply and expenditures, see table No.
44, section V.
STORMS AND FLOODS.-No storms occurred during the year with
wind velocities high enough to cause any material damage to Canal
structures. There were no rainstorms of sufficient duration or
extent to produce a general flood on Madden or Gatun Lakes. The
maximum discharge from Madden Dam during the year was 39,638
cubic feet per second on November 15, 1948. Gatun spillway was
operated frequently during the 2-week period November 14-29, 1948,
with a maximum discharge of 34,779 cubic feet per second on Novem-
ber 28, 1948.
DRY SEASON, 1949.-The 1949 dry season was considerably longer
and drier than normal. The period during which the flow into Mad-
den and Gatun Lakes was not sufficient to provide water for evapora-
tion losses from lake surfaces and for Panama Canal uses extended
from December 11, 1948, to May 24, 1949, a total of 165 days. The
total inflow into Madden and Gatun Lakes during this period was
23,076 million cubic feet. Water expenditures for the same period
amounted to 55,253 million cubic feet, consisting of 13,201 million
cubic feet evaporation loss from lake surfaces, and Gatun Lake water
use of 42,052 million cubic feet. The dry season draft on lake storage
amounted to 32,177 million cubic feet, of which 14,985 million cubic
feet was drawn from Madden Lake and 17,192 million cubic feet from
Gatun Lake.
LAKE ELEVATIONs.-During the fiscal year ended June 30, 1949,
Madden Lake varied in elevation between a maximum of 251.69 feet
on November 28, 1948, and a minimum of 215.88 feet on May 25,
1949, a total range of 35.81 feet. Gatun Lake varied in elevation






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


between a maximum of 86.61 feet on December 11, 1948, and a
minimum of 81.98 feet on July 1, 1948, a total range of 4.63 feet.
Elevations on June 30, 1949, were 232.58 feet for Madden Lake and
83.95 feet for Gatun Lake.
RAINFALL.-The rainfall in the Canal Zone during the fiscal year
ended June 30, 1949, varied from slightly below normal along the
Pacific slope to a well-marked deficiency in the interior and along the
Atlantic coast. Along the line of the Canal channel, annual totals
ranged from a minimum of 64.75 inches at Balboa Heights near the
Pacific terminal to a maximum of 108.22 inches at Cristobal near the
Atlantic terminal, 4.29 inches and 21.54 inches below normal, respec-
t ively. The month of maximum rainfall was November 1948. The
maximum monthly amount recorded during the year was 22.40 inches
at Cristobal in November 1948. February was the month of least
rainfall, with monthly totals ranging from no mneasuiirable amount
over the Pacific slope to 1.48 inches at Gatun.
Air Temperatures
There was little variation in air temperatures throughout the year,
no monthly mean at any station departing more than 2.50 F. from the
annual meiini. Annual means and extremes at Canal Zone stations
for the fiscal year are given in the following tabulation:

1949 maximum 1949 minimum
Station 1949 mean Departure
Sta io --------- ------ -- (0 F.) (0 F.)
0 F. Date a F. Date

Balboa Heights--------------- 95 May 12,1949 68 Jan. 15,1949 80.3 0
Madden Dam ------------------ 97 Apr. 4,1949 63 Jan. 15,1949 79.9 +1.0
Cristobal.--------------------- 90 Sept. 20,1948 70 Oct. 7,1948 79.9 -0.9


Annual extremes and means on record at the above stations are as
follows:

Absolute maximum Absolute minimum Annual
Station _________________________
0 F. Date 0 F. Date 0 F.

Balboa Heights ------------.----------------- 97 Apr. 27,1948 63 Jan. 27,1910 80.3
Madden Dam -- ----- -.- ------------- 98 Apr. 13.,1920 59 Feb. 4,1924 78.9
Cristobal-- -------------------------------- 95 Oct. 18.1924 66 Dec. 3,1909 80.8

Winds and Humidity
Wind velocities for the year averaged 6 miles per hour at Balboa
Heights on the Pacific coast and 10 miles per hour at Cristobal on the
Atlantic coast. Monthly mean velocities at Balboa Heighlits ranged
from 4 miles per hour in October to 10 miles per hour in February.
Monthly mean velocities at Cristobal ranged from 5 miiles per hour in






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


October to 16 miles per hour in February. The most frequent direc-
tions were northwest along the Pacific coast and northeast along the
Atlantic coast. Maximum velocities for five minute periods were 33
miles per hour from the south on July 2, 1948, at Balboa Heights and
34 miles per hour from the west on August 15, 1948, at Cristobal.
The relative humidity avenged 83 percent at both Balboa Heights
and Cristobal. Monthly means at Balboa Heights ranged from 70 per-
cent in March to 90 percent in October, and at Cristobal, from 75
percent in January to 88 percent in November.
Tides
During the fiscal year ended June 30, 1949, absolute tidal ranges at
Canal terminals were 21.7 feet on the Pacific coast and 2.3 feet on the
Atlantic coast. At Balboa, the Pacific terminal of the Canal, the
following extremes occurred: highest high water 10 feet above mean
sea level, lowest low water 11.7 feet below mean sea level, with the
greatest range between consecutive tides 20.7 feet. At Cristobal, the
Atlantic terminal of the Canal, the following extremes occurred:
highest high water 1.33 feet above mean sea level, lowest low water
0.96 foot below mean sea level, with the greatest range between con-
secutive tides 1.83 feet.
Seismology
Five earthquake shocks were felt by Canal Zone residents during the
fiscal year ended June 30, 1949. All were light and caused no damage
in the Canal Zone area. The two heaviest, rated in the Canal Zone
at Intensity II, occurred on July 28, 1948, at 9:23 a. m. and 10:06
a. m., seventy-fifth meridian time. Their point of origin was on the
floor of the Pacific Ocean to the south of Panama near Coiba Island,
and about 185 miles from Balboa Heights. A third shock from the
same source, rated at intensity I, was felt on July 31, 1948, at 2:05
p. m. Including the three main shocks which were felt in the Canal
Zone, the seismographs at Balboa Heights recorded 51 disturbances
during the 12-day period July 26 to August 6, 1948, with all indica-
tions of having originated in the Coiba Island area. Seismic activity
near this island apparently ceased after August 6, and had not recurred
up to the end of the fiscal year. Two other shocks, rated at intensity
I, were felt during the year, one on October 14, 1948, at 4:07 a. m. and
one on March 29, 1949, at 9:01 p. m. Their point of origin is unknown
except that they were about 100 miles from Balboa Heights.
Marine Activities
Traffic through the Canal which reflects to a large extent the volume
of work performed by the marine division is fully discussed earlier in
this report under "Statistics on Canal Traffic."






REPORT OF THE GOVERNOR OF THE PANAMA CANAL 21

Harbor A ctiities
The table following shows the number of vessels handled at docks of
the terminal ports of Cristobal and Balboa for the fisvil year 1949 as
compared with the two previous years:

Cristobal, fiscal year Balboa, fiscal year

1949 1948 1947 1949 1948 1947

Number of vessels docked:
H.ii.lliie passengers and/or cargo -..---. .--- ...- 1,235 1,147 1,090 343 358 51(61
Fur all tiiwr purposes ---- .---.---- .---------.---- 1,087 1,073 1,244 578 621 651
Total-----.----- -- -------------------------- 2,322 2,220 2,334 921 979 1,167


Aids to Navigation
On June 30, 1949, there were 751 aids to navigation in service in the
Panama Canal and its approaches, mainiitained by the Aids to Navi-
gation Subdivision and classified as follows: Acetylene gas-opierated,
109; electrically operated, 342; unlighted, 300. Included in the above
are two automatic acetylene gas-operated lighthouses, located at
Morro Puercos and at Jicarita Island on the coast of Panami in the
Pacific approach. Two visits were made to these aids during the
year for the purpose of inspectiniig and servicing the equipment.
Accidents to Shipping
The board of local inspectors investigated and reported on 21
accidents to shipping in Canal Zone waters during the fiscal year 1949,
a sununmmary of which follows together with a comparison of accidents
in the two previous years:

F 1-u1il year
Cause of accident
1949 1948 1947

Collision --------.---.. ---. ---------------.------------..---..-------------.. 4 6 4
Ship struck lock wall -----------------------.----------------_-.. 5 4 6
Ship struck dock- ---------------...-------------..---... ------------------- 5 2 1
S iip struck by lock gate-------.--..----------. ---.. -.. ---. --.-. -----.. 2 ---- -.... .....
Slilp darmagel by tug------...--. --------- -.... ---.. -------.....--. ........-- 2 1
Ship st r uck C.An i bank...- ..-.-..--..---.....--- ...- -- ........ 2 2 1
Other causes------------- ---- ------------------- ------.. ..... --. 3 4 3
Total-----..--..----------.. --------------------......... ------------------ 21 20 16


Inspections
Complete inspections were made of the hulls, power plants and
equipiment, of 31 American and 21 foreign vessels and certificates of
inspection issued. Eighty hulls of conimercial, Puiniia Cainal and
Paniiinima Railroad vessels we've inspected in drydock. Thirty-three
steiain boilers were inspected and certificates issued. One hundred






22 REPORT OF THE GOVERNOR OF THE PANAMA CANAL

and twenty-six air tanks and 30 carbon dioxide fire-extinguishing
systems were inspected. Annual inspections were made and certi-
ficates of seaworthiness issued to 353 motorboats.
Salvage and Towing
During the fiscal year 1949, the following off-shore work was per-
formed by marine division tugs for private interests:
On July 10, 1948, the tug GCrgona II was dispatched to assist the
tuna boat Millie Lou into the port of Balboa; on July 10-12, 1948,
the tug Arraijait assisted to the port of Balboa the disabled S. S.
Grandl!.yke,; on August 10-19, 1948, the tug Taboga assisted to the
port of Balboa the disabled tuna clipper Qw.en Victoria; on October
18-25, 1948, the Taboga was dispatched to the aid of the S. S. Joseph
Feuer which had been disabled at sea, and returned with tow to the
port of Balboa; on November 30-December 8, 1948, the tug Taboga
was dispatched to Corinto, Nicaragua, to assist the M/S Don Aurelio
which had run aground; on January 31-February 5, 1949, the tug
Taboga was dispatched to Buenaventura, Colombia, to tow the
Colombian Government dredge Colombia to Balboa; on March 16-18,
1949, the tug Cui lvasi assisted to the port of Cristobal the disabled
S. S. Amapola; on May 16-21, 1949, the tug Taboga towed the Colom-
bian Government dredge Colombia from the port of Balboa to Buena-
ventura, Colombia; on May 31, 1949, the Taboga went to the assistance
of the S. S. Hollybank, which had run out of coal while en route from
Australia to the Canal, and with that vessel in tow arrived at the
port of Balboa on June 9, 1949.

Operation of Tugs
The final conversion of the diesel tugs Taboga, Gorgona II, and
Limon, which were acquired and placed in service in the previous
fiscal year, was completed.
The following statistics summarize the service of tugs used in
marine activities (as distinct from drcdginig) during the past 3 fis-
cal years:

Operating hours, fiscal year Jobs handled, fiscal year
1949 1948 1947 1949 1948 1947
Cristobal ----------------------------- 5,412 5,811 5,708 2,411 4,632 4,788
Balboa----------------------------------- 3,708 3,526 4,213 2,490 3,096 2,486
Total ---------------------------- 9,120 9,337 9,921 4,901 7,728 7,274

The above table does not include statistics for tugs which were
occasionally borrowed from dredging service to assist vessels during






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


emergencies. It does include dredging service tugs rented over
periods of time and operated under orders of the marine divi-ion.

Maintenance of Channel-Other Dredging Activities

Dredges were operated( throughout the year on the mainteni-ice
of the Canal channel, terminal harbors, and on various spriiil projects.
In the fiscal year 1949 the total material excavated amounted to
10,443,700 cubic yards, which is 47 percent greater than the i amount
removed(l in the previous fiscal ye ir. A summary of dredging opera-
tions and of operating equipment employed for the yv;mr will be
found in tables No. 45 and 46 in section V.

Ordinary Channel Maintenance-Canal Prism Dredging
ATLANTIC DISTRICi-Atlantic Eindrince'.-A total of 2,194,500
cubic yards of material was removed in maintaining the Atlantic
entraniwe of the Canal. This dredging was performed by the pipe-
line suction dredge M3Iind, which worked a total of 75 days removing
2,194,500 cubic yards of material which consisted of 2,164,500 cubic
yards of earth and 30,000 cubic yards of unmined rock.
CENTRAL DISTRICT-Gatun Lake.-A total of 2,454,500 cubic yards
of material was removed in maintaining the Gatun Lake section of
the Canal channel. This dredging was performed by the dipper
dredges Cascadas and Paraiso and the pipe-line suction dredge Mindi
as follows:

Yardage dredged
Equipment Days------------------
worked
Earth Rock Total

Cascadas---------------- -------------------------------....... 700 700 1,400
Paraiso.---------..-------------------------------------.....-...... 1% 2,800 ------------ 2,800
Mindi--------.. ------------------ ----------------- 113% 2,361,300 89,000 2,450,300
Total------------------------------------...-------- 115% 2,364,800 '89,700 2,454,500
1 Unmined.

Gaillard Cut.-A total of 623,800 cubic yards of material was moved
in maintaining Gaillard cut. This dredging was performed by the
dipper dredges Cascadas and Paraiso and the pipe-line suction dredge
Mifdi as follows:

Days Yardage dredged
Equipment worked
Earth Rock Total

Cascadas--------- ------------------------------............ 186 369,800 '0..100 438,900
Paraiso ----.------- ---- ---- -----..... L. 104,500 1- 400 11'.. 900
Mindi---------------------------------------------................ 3 60,200 7,800 I.000
Total -----------------------------------------................. 24.%% 534,500 '89,300 623,800
S88,800 cubic yards unmined






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


Project No. 13.-This project, which consists of widening Culebra
Reach by 200 feet to the westward, was started in January 1935 and
has been continued on a low-priority basis since that time. A total
of 158,700 cubic yards of material, consisting of 65,100 cubic yards
of mined rock, 75,400 cubic yards of unmined rock and 18,200 cubic
yards of earth were sluiced into the Canal prism to be removed by
regular dredging operations. During 1949 dipper dredges excavated
a total of 395,400 cubic yards from this project, as follows:

Yardage dredged
Equipment wayse
Earth Rock Total

Cascadas .--------------- --------------------------- 81% 38,100 276,900 315,000
Paraiso-------------------------------------------- 20% 6,000 74,400 80,400
Total------------------------------------------ 1012 44,100 '351,300 395,400
1 51,800 cubic yards of unmined rock.

PACIFIC DISTRICT-Pacific Enltrance, Mainf nan c.-Dredging in
the Pacific eniitrniiice channel of the Canal was in progress 90 days
during the year by the pipe-line suet ion dredge Mindi, which excavated
2,830,000 cubic yards of earth.
Auxiliary Dredging-Other Projects
ATLANTIC DISTRICT-COristobal Inner Harbor.-The pipe-line suction
d(rt-dge Mind1; worked 14% days during the year, excavating 472,900
cubic yards of earth.
Crisfobal Outer Harbor.-The pipe-line suction dredge, Mindi worked
5613 days during the fiscal year 1949, excavating 1,432,500 cubic yards
of earth.
Isthmian Canal Studies (Public Law No. 280)
Core samples were taken in widely scattered areas along the present
Canal. A total of two holes drilled to a depth of 69 feet were completed
during the year.
Slides
A total of 40,100 cubic yards of material was excavated from
Culebra slide (west) and Powder House slide (east) in Gaillard cut
during the fiscal year 1949. The dipper dredge Cascadas worked 4%
days on the Powder House slide (east) removing 500 cubic yards of
earth and 2,300 cubic yards of unmined rock; the dipper dredge
Cascadas worked 12% days on the Culebra slide (west), removing a
total of 37,300 cubic yards of material, which consisted of 14,000 cubic
yards of earth, 21,800 cubic yards of mined rock and 1,500 cubic yards
of unmined rock.





REPORT OF THE GOVERNOR OF THE PANAMA CANAL


Slide activity throughout the cut was generally much 1 previous years. Culebra slide (west) cont6iwild to be the most active
of all the slides; Powder House slide (east), which is usually a quiescent
slide, showed a pronounced movement on June 10, 1949, when a
portion of the bank dropped as a mass into the Canal.
Small movements were observed in six other slides during the year.
Numerous small bank breaks occurred which were limited to move-
ments of no consequence. There was no interference with shipping on
account of slides during the year.
Excavation from slides in Gaillard cut from June 30, 1913, to June
30, 1949, totaled 52,176,400 cubic yards.
Subsidiary Dredging Division Activities
SAND AND GRAVEL.-During the past fiscal year 25,996 cubic yards
of sand and gravel of all classes (both run-of-bank and washed) were
shipped from the gravel stock pile at Gamboa as compared with
36,309 cubic yards shipped in the previous year. There was no
pumping of run-of-bank gravel into the stock pile at Gamboa during
the fiscal year 1949.
The cranieboat Atlas was in service 23% days excavating 28,785
cubic yards of sand at Chame Point, Republic of Panama; this sand
was pumped into barges and delivered to dock No. 7, Balboa, for
the supply department.
HYACINTH CONTROL AND OTHER ACTIVITIES.-The Canal and
adjacent waters through Gaillard cut, Miraflores Lake and Gatun
Lake (including all dump areas), were periodically patrolled through-
out the year for the purpose of keeping the growth of hyacinths 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. During the year, periodical
inspection trips were made at 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 32,379,000 hyacinth plants were destroyed
during the past year, of which 28,448,000 were pulled and 3,931,000
were sprayed; of the plants pulled, 13,923,000 were removed by the
debris cableway. Two hundred and ninety-nine cords of driftwood
were removed by the debris cableway during the past year and an
additional 143 cords of drift wood were picked up along the banks
of the Chaigres, Mandiniga, and Cocoli Rivers, Gaillard cut and
Gatun, Miraflores, Pedro Miguel and Red Tank Lakes.






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


Ferry Service

Thatcher Ferry service was continuous throughout the past year
with the exception of a total of 10 days when service was suspended
to make repairs to ferry ramps and slips. This ferry crosses the
Canal at the Pacific terminal and connects Balboa on the east bank
with Thatcher Highway on the west bank. Service was maintained
by rotating the three ferry boats, Presidente Amador, President
Roosevelt and Presidedne Porra.-s, keeping two of these ferries in con-
tinuous service.
Since the opening of the bridge across the Canal at Miraflores in
May 1942, the ferry traffic has become fairly well stabilized. In the
following table are shown the more important statistics relative to
operations of the Thatcher Ferry for the past three fiscal years:

Fiscal year

1949 1948 1947

Singletripsmade-..----------------------------------------------- 53,793 55,736 55,601
Vehicles carried:
Panama Canal vehicles----------------------------------------- 10,681 10,884 15,597
U. S. military vehicles ------------------------------------ 33,995 44,932 82,231
Commercial trucks -10--------------- 101,928 117,856 113,640
Commercial passenger cars------------------------------------- 147,414 152,048 140,246
Private cars -------------------------------------------- 255,066 245,771 232,801
Total vehicles carried --------------------------------- --- 549,084 571,491 584,515
Total passengers carried-----.------------------------- 2,922,970 3,036,065 2,923,599


Atrato-Truando Survey

After reviewing the report submitted by the Governor on Novem-
ber 21, 1947, in accordance with Public Law 280, Seventy-ninth
Congress, First Session, and after making a personal inspection by
air of the various canal routes across the American Isthmus, the
Secretary of the Army directed that additional data be secured with
respect to a possible canal along the route of the Atrato and Truando
Rivers in the Republic of Colombia in order to determine more
accurately the feasibility and the approximate cost of constructing
one comparable in its design to that proposed for the Panama route.
Negotiations with the Colombian Government resulted in a joint
Colombian-United States commission to make the necessary survey
of the route. Members of the commission for the United States con-
sisted of personnel of the special engineering division and the section
of surveys of The Panama Canal.
The specific objectives of the survey were to determine the accuracy
of information available from previous investigations; to establish
the hydraulic characteristics of the Atrato River in order to evaluate





REPORT OF THE GOVERNOR OF THE PANAMA CANAL 27

its usefulness as a canal channel; to establish and monument precise
geodetic positions for correlation of existing maps; to determine the
practicability of locating the canal channel in the flood plain wert
of the Atrato River and utilizing the Atrato River as a flood control
channel; to determine the geology of the region crossed by the pro-
posed canal alignment and the engineering properties of the materials
encountered(; to develop the topography of the continental divide
region from which true profiles of the canal alignments could be
obtained; and to make hydrographic surveys in Humboldt Bay.
A report, consisting of one volume containing the text, drawings,
and two appendices, was submitted by the Governor to the Secre-
tary of the Army as supplementary information to the report dated
November 21, 1947.












Section II


BUSINESS OPERATIONS

The business enterprises operated by The Panama Canal and by
the Panama Railroad Company embrace a number of tetivities
which in the United States would normally be carried on by private
enterprise. These activities have been developed to meet the needs of
shipping passing through the Canal and of the Canal-Railroad, the
armed services, and their employees. The business enterprises include
the supply of fuel, provisions, ship chandlery, and repairs to vessels; the
provision of public utility services; the maintenance of living quarters,
and the sale of food, clothing, and other essentials to Canal and Rail-
road employees; the handling of cargo and allied operations; the
operation and management of a railroad line; and a steamship line
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 Com-
pany.

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 and sanitation of the Canal Zone. The annual
appropriation acts for The Panama Canal authorize the expeindi( iture
and reinvestment of all moneys received from the conduct of auxiliary
business activities, with the proviso that any net profit derived from
such business activities shall be covered annually into the Treasury
of the United States.
It is the aim to operate the business activities as a whole on a self-
supporting basis and, in general, to include as a charge against their
operations 3-pircent interest on the net investment. The amount
representing charges for interest on investment is a part of the iiet
profits covered into the Treasury. The net investment in business
activities toiled $37,764,063.33 on July 1, 1948, and the capital
charge for the fiscal year 1949 was $1,132,921.80 (table No. 23, sec. V).
The net revenue of $1,006,959.04 fell short by $125,962.76 of meeting
this capital charge.
28






REPORT OF THE GOVERNOR OF THE PANAMA CANAL 29

Mechanical and Marine Work

On the basis of revenues received for work tiirinpli-hed, there was
an over-all decrease of 13.9 percent in the volume of business of the
mecluhanicail division in comparison with the fiweal year 1948. The
drastic reduction in work required by cominiircial interests caused
revenues from that source to decline by $1,167,411, or 42.5 percent,
from the fiscal year 1948. The decline in commeoi-al work was over-
come to some degree by a sharp rise in the volume of work performed
for the United States Navy, which was more than double that of the
previous fiscal year. Revenues from the United States Army and
the Paimii-a Railroad Company increased 25.2 percent and 2.7 per-
cent, respectively, while those from The Panama Canal declined 24.2
percent.
The following table shows the class and source of work for the past
two fiscal years:
Gross Rerenues- Class and Source

Fiscal year 1949 Fiscal year 1948

Revenues Percent Revenues Percent
of total 11 of total

Class:
Marine------------------- ------------------------- $3,704,800 65.6 $4,390,724 66.9
Railroad ------------------- -------------- .---------- 792,450 14.0 794,426 12.1
Fabricated stock-- ---------------------------------- 79 211 6.7 319,854 4.9
Sundries ----------------------- .i.'., '7 13.7 1,053,918 16.1
Total-----------.-.. ----------------------------- 5,645,348 100.0 6,558,922 100.0
Origin:
The Panama Canal.---------------------------------- 1,487,589 26.4 1,961,262 29.9
Panama Railroad Company ----------------------- 871,865 15.4 849,006 13.0
Other U. S. departments:
Army....----------------------------------------- 628,563 11.2 502,231 7.6
Navy -- -------. ----------------------- ---------- 1,073,287 19.0 491,551 7.5
All others------------------------------------------ 1,994 ---------- 5,411 .1
Commercial.-------. ---------------------------------- 1,582,050 28.0 2,749,461 41.9
T i ..l ------------------------ ---------------------- 5,645,348 100.0 6,558,922 100.0


1larine Repair Work
The decline in the comnmriial work loud duIrinig the past. fiscal year
has eeni a mat teir of grave concern. In addition to the drastic over-
all reduction in work from this source, the flow of such work has been
decidely uneven, resultiniig in periods when it wa, difficult to m.nt all
jobs properly, and other periods when there was no commniircial work
available in the yard. Under such conditions, it was difficult to
mmintiain a proper working force throughout the yuar. With the
exception of the dredge ( nimi'li which cinae to the yard from
Colombia for the express piirpie of ii-ing overhaul iand repair,
the ii majority of the repairs performed could be classified as iiiirgeriy






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


or voyage, although there were 19 calls for service which developed
into jobs of major importance, ez;Ch of which exceeded $10,000 in
billing.
The abnormal increase in work performed for the Navy, which more
than doubled that of the fiscal year 1948, was accounted for largely
by the work entailed in preparing a large floating dry dock for north-
bound transit of the Panama Canal. The successful preparation for
transit, including careening, of the 15,000-ton floating dry dock
AFDM-1 was the outstanding job of the year. This dry dock, which
was too wide by several feet to enter the Canal locks, had to be
careened 900 to a position in which its bottom was perpendicular to
the surface of the water. The unnatural position the dock was to
assume made necessary the removal of all portable equipment, the
bracing of all machinery to prevent excessive stress on foundations
and shafting, and the installation of heavy beam braces to ease the
strain on the wing wall. To prepare the dock for the careening opera-
tion, a thousand Navy pontoons were procured, assembled into units
of 15 each complete with piping, and secured to the wing wall which
had previously been rendered watertight for successful immersion.
The careening operation was accomplished by filling pontoons in
selected groups until the dry dock assumed the desired 900 inclina-
tion, after which it floated on its side in a perfectly stable position.
The entire careening operation was accomplished according to plan
and proceeded without untoward incident.
Before transit of the Canal, the exposed dock bottom was thoroughly
cleaned and painted. Upon arrival at Cristobal, the dock was re-
turned to its normal floating position by a reversal of the careening
operations. The careening equipment was then removed and at the
termination of the fiscal year the dry dock was being prepared, by the
Cristobal shop forces, for towing to the United States.
In addition to the floating dry dock job, numerous locally assigned
Naval craft were dry docked and a considerable amount of cleaning,
painting, and repair work was performed on them. Emergency and
voyage repairs were also made to Naval vessels in transit. Two addi-
tional floating dry docks, the AFDM-3 and AFDM-7, arrived at the
Balboa yard during the latter part of the fiscal year, and are now in the
process of being prepared for Canal transit similarly to the AFDM-1.
The work for the United States Army consisted primarily of the
dry docking and repairing of area craft, and emergency and voyage
repairs to Army transports transiting the Canal. The Army Engineer
dredge James F. Hyde, bound for Florida, was damaged by grounding
off Central America, and required permanent repairs.
The decline in revenue derived from Paniama Canal sources is attrib-
utable to a reduction in work requirements of the marine and dredging







REPORT OF THE GO\ ErlINOR OF THE PANAMA CANAL 31


divisions. Work accomjupli-1shedl for the marine division included the
construction of the boalrdinrg launch Darter and p)assengcr hiiinch
Plover, and the drydocking of the tugs Aln1iijinl I, (Cardei nu, and Gor-
gona II for overilaul and general repairs. Numerous smi;il1r pieces
of harbor equipment \rev also repaired. The usual overhaul and re-
pair work to dredging division eqiipminll Wa i performed d(luring the
year. The tugs 011 bri, G60un, Mariner, and Tr'1iviv;i; the ferryboats
Pr.itid n/ Ripos re lt and Presidente Porras; thle dredge Ci(icaida.-; the
d(riillioat Vulcan; the cnione boat Aja.r; anld numerous barges were dry
docked and repaired.
The following statement shows the number of vessels and the total
"ship days" for each ca tegory of vessels repaired at Balboa and Cristo-
hal for the fiscal year 1949:


Balboa

Number Ship
of ships days I


Cristobal

Number Ship
of ships days I


Total

Number Ship
of ships days I


Commercial .--------. ------------------ 306 1,384 683 1,398 989 2,782
U. S. Army------------.----------------- 40 330 56 392 96 722
U. S. Navy - 30 601 20 355 50 956
Panama Canal-------------------------- 22 332 39 264 61 596
Total, 1949------------.------------- 398 2,647 798 2,409 1,196 5,056
Total, 1948 --------------------- --- 540 4,330 1,027 3,172 1,567 7,502

I Total days consumed in repairing number of ships indicated.

Dry Docks and Marine Railways

The following table summarizes dry dock and marine railway
operations during the fiscal year 1949, with comparative figures for
the two preced(ling years:

Number of vessels dry docked]

Fiscal year 1949 Fiscal year

Category Cristobal
Balboa dry docks Total 1948 total 1947 total
dry docks and marine
railways


U. S. Army....----.....----.............- -
U. S. Navy------------------ -..- .......-
Commercial---------------------........----
Total outside interests. -----------------
Panama Canal --------------------.--...---
Panama Railroad.-----.-...-..-............- -
Grand total ----------------------------


11
13
32
56
15

71


14
3
26
43
7
1
".1


25
16
58
99
22
1


39
19
71
129
23
1


122 15.1


On August 16, 1948, marine railway No. 1 was declared unsafe for
further use and has been returned to the Navy for disposition.


Category


26
16
49
91
7
1






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


Shop Work
Fabrication of six towing locomotives for the locks division, which
was commenced in the fiscal year 1947, was continued through this
fiscal year. The completion of this work was delayed by nonreceipt
of necessary electrical equipment. The usual manufacturing work
for the storehouses was carried on, plus the fabrication of items ordi-
narily required by the dredging division, such as shore pipe, pontoons,
ball joints, etc.
Plant Improvement
The fluctuating workload throughout the year was accompanied
by a reduction of the division overhead expenditures to an absolute
minimum. Plant maintenance work was limited to absolutely
essential items, and the plant improvement program was reduced to
items of the most urgently needed nature. Consequently, much
maintenance and improvement work, which should be accomplished
before long in order to avoid detriment to effective operation of plant,
was deferred during the fiscal year 1949.

Electrical Work

The principal activities of the electrical division are the operation
and maintenance of the electric light and power system, the construc-
tion and maintenance of (electri-iul facilities as required by The
Panama Canal and other government agencies, and the performance
of services for vsst1s undergoing repairs at the Canal terminal.
The 1hu-riil 1 division supervises the operation and mainteiuince of
the telephone, telegraph, electric clock, printing telegrniph and railway
signal systems owned by the Panama Railroad. The responsibility
for the opir-ni inn and maintenance of the railway signal system was
transferred to the Cirnril Al.Mnager, Paiui:na Railrioad, on June 30,
1949.
Following is a comparison of the two principal classes of expenditures
of the electrical division for the past three fiscal years:

Fiscal year
1949 1948 1947
Electrical construction and maintenance work ------------ $1,799,459 $1,417,900 $1,705,888
Maintenance and operation of electrical power system-------- 1,456,618 1,327,370 1,223,204

Among the principal projects of electrical work carried on during
the year were the wiring and installation of electrical facilities for the
occupational high schools at La Boca and Silver City; the installation





REPORT OF THE GOVERNOR OF THE PANAMA CANAL


of electric machine tools and equipment in the vocational school at
La Boca; the wiring and installation of electrir-ii facilities of the newly
constructed quarters of both United States-rate and local-rate em-
ployees; the improvements to the elect rical distribution system at
Silver City and Old Cristobal; improvcmiicnts and extensions to street-
lighting facilities; the continuation of work on improvement of 60-cycle
facilities within the mechanical division areas at Mount Hope and
Balboa; the completion of a new\ duct line bht weii Balboa and Diablo
Heights to provide elect rical services to the ii'\ly constructed( quarters
and the United States Army cold-storage plant; construction of new
duct lines and relocation of elect rical facilities to provide electrical
services for the new- obstetrical and( clinic building at Gorg:-s Hospital;
improvement of telephone service bet 'een Canal Zone and Panama
City by the installation of a new 100-pair, 19-gago telephone cable;
the modernization and rehabilitation of the fire-alarm system in the
Ancon-Balboa-Diablo Heights area, and installation of electrical
facilities for the new Balboa Theatre now under construction.
Information concerning the principal con-truction projects under-
taken and the operation of the power system are given on page 16
of this report, under the general heading of Canal operation. The
expenditures shown in the above table include interdepartmental
transactions.
Purchases in the United States

The principal purchases of supplies for the Panama Canal were
made, as heretofore, through the Washington office of The Panama
Canal; the volume of the purchases is indiivnted by the following table:

Fiscal year

1949 1948 1947
Number of purchase orders placed--------------------------- 8,667 7,857 7,957
Value of orders placed ------------.....----------------------. $8,118,372 $7,341, 563 $7,591,828
Number of disbursement vouchers prepared----------.. -------- 15,769 16,112 15.045
Value of above vouchers.---------------------.------------- $12, 262, 553 $8, '.-'. 247 iy. 5 079
Numzi.-ur of collection vouchers prepared.. ---------.--------- 680 770 557
Value of above vouchers ---.-..---..---------------.. -. -- .. ,898 '.-' 799 .i- 2'. 130
Cash discounts taken --------------. ------ ..---------- $41, 614 $33, 505 i3i4,204


Storehouses and Ship Chandlery

In addition to the main functions of requisitioning, storing and
issuing general supplies for the Canal and Railroad (exclusive of the
merchandising operations of the commissary division), The Panama
Canal storehouses sell ship chandlery and other supplies to coimin-erciiml
shipping, as well as to units of the United States armed -civicrs. The






34 REPORT OF THE GOVERNOR OF THE PANAMA CANAL

following figures indicate the volume of material and supplies cleared
through the stores accounts during the past 3 years:

Fiscal year
General storehouses ----------
1949 1948 1947

Gross revenues, sales and issues.--------. ------------------- $9,835,253 $10,149,528 $9,585,596
Cost of materials, plus operating expense-------------------- 9,545,261 9,600,099 9,486,152
Net revenues-----. ---------------------------------- 289,992 549,429 99,444
Inventory as of June 30 1 ----------------------- --------------- 12,822,149 10,841,644 11,909,611
1 This includes all material and supplies of The Panama Canal, by far the greater part of which is in the
general storehouses.

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 $1,004,130.
Replacemnients were made as necessary.

Bulk Petroleum Products

All deliveries of fuel oil, Diesel oil, gasoline and kerosene to and
from storage tanks, for private companies and for The Panama Canal,
are made through pipe lines and pumping plants owned and operated
by The Panama Canal.
In the fiscal year 1949, a total of 11,140,830 barrels of fuel and
Diesel oil were handled by the oil handling plants, as compared with
12,239,174 barrels in the preceding fiscal year. These plants also
handled 40,924,876 gallons of gasoline and kerosene in the fiscal year
1949, in comparison with 44,236,808 gallons in the preceding fiscal year.
See table No. 47, section V, for further statistics on the oil-handling
plants.
Building Construction and Maintenance

The principal projects of building construction for The Panama
Canal *oinpleted by the building division in the fiscal year 1949 are
shown in the following paragraphs. Unless otherwise specified, the
projects listed are new buildings:
Anciui-Balboa.---Pattern storage building, mechanical division;
rebuilding of one type-104 quarters; alterations and additions to
Ancon laundry; repliceimenit, of elevators in sections B and C, Gorgas
Hospital; construction of foundations for obstetiical building, Gorgas
Hospital.
DiabloIIghyld.s.- Four type-112, 1 type-218, 1 type-321, 2 type-322,
1 type-324 and 1 type-326 masonry type quarters; 3 prefabricated





REPORT OF THE GOVERNOR OF THE PANAMA CANAL


type quarters; conversion of one 12-family type quarters to 3-family
type quarters; compressor buiibling for Diablo dock.
Cocoli.-Addition to commissary; conversion of 1 type-215 quarters
to 2-family type quarters, conversion of 2 type-S121R quarters to
6-family type quarters.
Corfzal.-Nurses' quarters, Coroz/l Hospital.
La Boca.-Unit "A," Pacific bakery.
Red Tank.-Dispensary.
Paraiso.-Two type-127 frame quarters, 1 type-128 frame quarters,
1 type-129 frame quarters; 4 type-135 masonry quarters.
Margarifta.-One type-102R and 3 type-112 quarters.
Silver City.-Vocational school and high school; conversion of 12
canitonment-type buildings to 4-family apartments.
Camp Cin'er.-Three type-127 and 7 types 130-136 masonry
quarters.
In addition to the principal projects listed above which were com-
pleted during the year for The Panama Canal, work was performed
for the Painama Railroad Company, the farmed services, and employees.
The volume of operattion as measured in financial terms totaled
$5,912,405, as compared with $4,217,267 in the fiscal year 1948.
The total volume of work for the past three fiscal years is sum-
marized in the following table:

Fiscal year

1949 1948 1947

For Canal divisions---. ------.-------------------------------- $4,588,590 $3,125,632 $3,659,112
For Panama Railroad Company -------- ----...... -.. 225,615 266,723 417,543
For other departments of the Government, employees and
others---------------------------------------------------- 1,098,200 824,912 483,418
Total-..---------.--------------------------------- 5,912,405 4,217,267 4,560,073

NOTE.-Includes funds spent from capital allotments which in 1949 and 1948 were not taken up in net
revenue appearing in table No. 15, section V.

Quarters

For United Staits-ratc employees.-Replacementiii of quarters was
continued, a total of 37 apartments in 24 houses of one- and two-
family types having been completed during the year in the Balboa
and Cristobal districts. Eighteen of the 24 houses were built by the
building division and 6 under contract. At the close of thlie fiscal
year, 8 additional buildings, comprising 15 apartments, were under
construction at Balboa and Cristobal.
On June 30, 1948, there were 41 applica tions for family quarters
from regular employees in all districts, and on June 30, 1949, 42
applications were on file. These figures represent applications from






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


regular employees for assignment within their official work districts, a
few of whom occupy quarters temporarily elsewhere, and all of whom
are requesting particular types of quarters. In addition there were
593 applications on file for provisional or temporary assignment from
employees of other agencies who are entitled to occupy available
Canal quarters in accordance with assignment rules.
Under existing regu lations employees are required to have an assign-
ment to family quarters before permission is granted for their families
to come to the Canal Zone.
For local-rate employees.-Construction of experimental housing was
continued during the year, with 46 apartnents at Paraiso and Camp
Coiner having brin completed. At the close of the year, work on 35
masonry-type quarters at Camp Coiner was in progress. Conversion
of 18 caii tonment-type buildings to 4-family apartments was carried
forward in Silver City; two 12-family type quarters at Cocoli were
converted to 6-family quarters; and 3 barracks buildings at Balboa
were converted to 78-bed dormitories.
SThe demand for quarters for local-rate employees still greatly
exceeds the supply. As of June 30, 1949, there were 1,077 applications
for family quarters and 770 applications for bachelor quarters, a total
of 1,847, as compared with 1,674 on file June 30, 1948.

Motor Transportation

The motor transportation division is charged with the opera t ion and
maintiiii nce of motor transportation for the departments and divisions
of The Panama Canal and Panama Railroad Company. The centrali-
zation of transportation facilities in this division and the requirement
that it be operated on a self-sustaining basis; have been primarily for
the purpose of supplying needed transportation at minimum cost to
The Panama Canal and Panama Railroad Company. Repair work is
also performed for employees and for contractors engaged in work for
the Government of the Canal Zone.
The public transportation system of privI'a ly owned busses opera t-
ing under the supervision and control of the motor transportation
division continued to carry employees and their families in and between
the various towns of the Canal Zone; 127 busses were operating as of
June 30, 1949.
Revenues of the division d(luring the past year, including motor
repair shop activities, totaled $1,862,544, and the ex)pen(;e, $1,816,205,
leaving a net, revenue of $46,339 for the fiscal year 1949.
During the fiscal year, 79 cars and trucks were purcliased and 79
cars and trucks were retired. At thie close of 4 he fiscal year 755 cars
and trucks, 34 trailers and 5 motorcycles were on hand.






REPOW1 OF' THE GOVE NOR OF THE PANAMA CANAL


Panama Canal Press

The operations of the Panama Cn inal press were continued under
the same policies as heretofore. The printing plant carries stocks of
materials, and prints such forms, stationery, etc., as are required in
(111connl iiin with the operation of The Pununiim Canal and the Panama
Railroad Company.
The printing facilities of The Panama Canal were consolidated into
one unit with the transfer of the reproduction plant at Diablo Heights,
formerly operated by the special engineering division, to the super-
vision of the Panama Canal press.
The following is a summary of the financial operations of this plant
during the past 3 yeoirs:

Fiscal year
1949 1948 1947

Gross sales revenues --------------------------------------------- $630,145 $528,192 $481,833
Total expenses (including cost of materials used in manufacturing
and cost of stationery stores not processed) ------------------------ 614, 634 510,076 459,393
Net revenues------------------------------------------------- 15,511 18,116 22,440

Revenues Derived From Rental of Lands in the Canal Zone
Rentals for building sites and oil-tank sites in the Canal Zone
totaled $64,957 for the year as compared with $55,931 for the fiscal
year 1948. Rentals from agricultural land in the Canal Zone totaled
$6,943 as compared with $6,624 for the preceding year. At the close
of the fiscal year 611 licenses were in effect, covering 1,229 hectares of
agricultural land within the Canal Zone. This is a reduction of 15 in
the number of licenses as compared with the previous iscal year and
a reduction in the arei held under licenses of 24% hectares. This
reduction is hi rgely the result of the policy adopted as a health meas-
ure in May 1935, that no more licenses for agricultural land would be
issued and that holdings under licenses previously granted may not
be sold or transferred.

BUSINESS OPER kTIONS UNDER THE PAN.ALMA RAIL-
ROAD COMPANY

The Pann.imna Railroand Comnpany 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 of PaRiinaa. When the con-
ces-sions, rights, and property of the New French C;iandl Coimpa-iny
were purchased in 1904, own'er-hipj) of the stork of the Panama Rail-
589907-50---4






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


road Company was transferred to the United States Government.
On June 30, 1948, the Company was reincorporated pursuant to sec-
tion 304 (b) of the Government Corporation Control Act, comprising
sections 245 to 256 of title 2, Canal Zone Code. The Governor of
The Panama Canal is by statute the President of the Company.
Since the operations of the Railroad complement those of the Canal,
the designation of the Governor of The Panama Canal as President
of the Panama Railroad Company 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 included in this section.
In addition to the operations of the trans-Isthmian railroad, the
business enterprises conducted by the Panama Railroad Company
include the following: A steamship line operating between New York
and the Canal Zone; the loading, unloading, storage, and transfer of
cargo for shipping interests at the terniinail ports; the operation of
wholesale warehouses, retail stores, and subsidiary manufacturing
plants engaged in the supply of food, clothing, and other essential
commodities to governmental agencies and to Government employees
and their families; and the operation of a coaling plant, hotels, a tele-
phone system, 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, the railroad
serves all activities of The Panama Canal and of the armed forces
located between the two terminal cities. Gross revenues from the
operations of the railroad proper (not including subsidiary business
activities) during the fiscal year 1949 amounted to $2,106,283 in com-
parison with $2,496,067 for the preceding year. Revenue freight
totaled 291,183 tons, ais compared with 386,733 tons during 1948, a
decrease of 95,550 tons.
Comparative sth t ist is covering the significant feat i.ures of railroad
operations during the past 3 years are presented in the following
table:

Fiscal year
1949 1948 1947
Average miles operated, Colon to Panama -------------------- 50.93 50.93 50.93
Gross operating revenues--------. ------------------------ $2,106,283 $2,496,067 $2,708,167
Number of passengers carried:
First class ----------------------------------------------- 126,508 182,043 234,409
Second class------------------------------------------- 270,254 319,062 381,840
Total.-------------------------------------------------- 396,762 501,105 616,249







REPORT OF THE G)VEII-NOR OF THE PANAMA CANAL


Revenue per .n'ii'.r-tr in-mnile ......... .
Revenue per fr'igiht-r.iin-iiiil... .. ..
P.Ri-ricur train mileage---------------------
I-'Fre'iphli train ini .KLg .. ....... .. .
W'urk train imileAge........ .. ... . . .
Total train mileage-------------------
Switch locomotive miles--------------------


S $2.67 $3.34
$27.49 $28.36
I '.1.379 ll-. 268
53,304 69, 248
- 3,695 2,032
208, 378 219,548
lIn*, -il I1.1', 411 }


Receiving and Forwarding Agency

This division handles the dock and harbor a'tivithvs of the Panama
Railroad Company at the two terminals of the Canal. The following
statistics suinniarize the results of operations for the past 3 years:

Fiscal year


ToIt il revenue----------------------------------------

Total cargo handled and transferred across docks --------
Cargo stevedored by Panama Railroad Company --. --
Cargo ships handled -----------------------------------
Agency services furnished to vessels-. -----.-------.


Coaling Plants


The volume of coaling plant operations at Criitobal and Balboa for
the past three fiscal years is shown in the following table:


Fiscal year

1949 1948 1947

Cristobal Cristobal and Balboa
only

Gross revenues--.------------------------------------------- $418,415 $468,856 $605,236
T'ons Tons Tons
Coalsold .-------------------------------------------------- ----- 16,001 1. .;:.7 29,688
Coal purchased....- --------------------------------------------- 19,828 1ii, 11. 30,775


Effective July 1, 1948, operations at the Balboa coaling plAInt w-ere
discontinued. By the end of the fiscal year 1949 the Balboa plant,
with the exception of one bermi criiine and one unlou(ler tower, had
been scrapped.


Fi;cal year

1949 1948 1947


$4.25
$27.15
144,802
66,020
4,864
215,686
15',2, lJu






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


Telephone System

Gross revenues from the operation of telephones, electric clocks,
and electric printing telegraph niachiinis totaled $367,257, as com-
pared with receipts of $371,873 for the preceding year.
During the year 1,456 telephones were iiinstalled and 1,241 were
discontinued or removed, resulting in a net increase of 215 telephones
for the year. At the end of the fiscal year 1949, there were in serv-
ice 6,141 telephones, as well as 56 electric clocks and 37 automatic
printing telegraph typewriters. Telephone calls averaged 108,639
calls per day in 1949 and 98,495 per day in 1948 duriniig the sample
days tested. This represents an average of 17.7 calls per telephone
per day in 1949, as compared with 16.6 in 1948.

Commissary Division

The primary function of the commissary division of the Panama
Railroad Company is to supply at reasonable prices food, clothing,
and household goods to meet the nuords of United States Governiiiient
personnel and the various United States Goveiirnment departments on
the Isthmus. In carrying out this function the division operates
wholesale warehouses, cold-storage plants, a laundry and a dairy, as
well as retail stores in each of the Canal Zone towns. Sales are re-
stricted to agencies and personnel of the United States Government
and others residing in the Canal Zone, except that ice, food, and other
essentials may be purchased by coiniiil'il steamships p Csing
through the Canal or calling at its terminal ports.
Sales
Net sales for the fiscal year 1949 totaled $32,841,765, compared
with $33,140,846 for the previous fiscal year. The value of merchan-
dise on hand June 30, 1949, was $5,538,041 compared with $7,070,127
at the close of the fiscal year 1948. The ratio of sales to an average
monthly inventory of $8,152,711 indicat-; a theornti-ial stock turn-
over of once in 12.9 weeks. The distribution of sales for the past
three fiscal years is shown in the following table:

Fiscal year

1949 1948 1947

United States Government (Army and Navy)------------- -- $2,182,868 $1.,685.068 $1,775,569
The Panama Canal - ------ -- 3,772,976 3,490.455 3,479,516
Panama 10iir....l Company -------------------------------- 503,501 553.073 359,517
Individuals and companies -- ---------------------------- 1,195, 550 1,199, 869 1,137, 669
Commercial ships .------------------------------------------- 1,029,970 1,244. 759 1,221,529
Employees----------- ---- --------------------------------- 25,102,830 25,820,816 25,251,773
Gross sales ---------- ---------------------------------- 33,787,695 33,994,040 33,225,603
Less discounts, credits, etc ---- ------------------------------ 945,930 853,194 947,140
Net sales ---------------------------------------------- 32,841,765 33,140,846 32,278,463






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


Purchases
PurcLhases during the year aggregated $24,989,483, a decrease of
$3,610,900 from the previous year. The following tabulation shows
the value of the various past 3 years:

Fiscal year

1949 1948 1947

Groceries ---. ------------------------------------------------ $8, 770. 902 $8,241,152 $8, 428, 747
Candies and tobacco-----------------------------------------. 1,007,349 1,225,249 1,0:53. 100
Housewares------------------------------------------------ 1,678,455 2,139,608 1, 7'.,', 954
Drygoods --.------------------- ---------------------. 3,137,466 5,412,270 5,326.586
Shoes ----------------- ----------------------------------. 513 1,088,431 1. 4 ,260
Cold ti.r,i > .... -------- --- --4.-.3. ,643 4,655,911 5, 1 t.,441
Raw material -- --------------------------------------------- I, 197 1,921,722 1, i1.3S 3
Cattle -------------------------------------------------------- 665,807 562,591 4,2.A3
M ilk and cream -...--. .- .--- .. --- ---------- .-.------. ...- 152,262 180, 599 -".1I. l:l
Dairy products -- ..----------- --------- ..- ........-- ..... 2,406,725 3,011,555 2,749,131
Dairy farm herd.-------------------------------------------- 135,164 161,295 20,237
Total--------------------------------------------------- 24,989,483 28,600,383 28,308,129


Hotels

The Hotels Tivoli and Washiniigton were operated by the Panaiima
Railroad Company without ihanige of policy during the year. These
hotels are an e-rntial adjunct to the C.in;al, providing necessary
accommodations for employees, visiting Government officials, and
other-.
The gross revenue from hotels \\ ;i. S1Si4,680, as compared with
$891,689 in 1948, and the number of guest days was 85,025 compared
with 95,077 in 1918.
Panama Line

The gro-s operatingiig revenue of the Panama Line for thie fiscal year
1949 was $5,448,012, and the gross operating expenses totaled
$5,223,982, resulting in a net profit of $224,030.
Freight carried during the year totaled 239,577 tons, and passengers
carried numbered 13,868. Freight for account of The Paiiiunia Canal
and oilither departmenils of the United States Governiment in the Canal
Zone was carried at tariff rates, but p;)rng.ers were carried at reduc-
tions from tariff rates ranging from 25 to 75 perei-int.
The program of recondiitioning of the Company's three vssels, the
Ancont, Crsthbal and Painnui, was completely by June 1948, and weekly
service of the line between Ne\- York and the Canal Zone was main-
tained(l throughout the fiscal year.













Section III


ADMINISTRATION

DEPARTMENTS

The organization of The Panama Canal on the Isthmus embraces
five principal departments, namely, Operation and Maintenance,
Supply, Finance, Executive, and Health. In addition, an office of The
Panama Canal is maintained in Washington, D. C. The Panama
Railroad Company, a Goverinment-owned corporation operating a
steamship line between New York and the Canal Zone and a railroad
as well as other business enterprises on the Isthmus, is a distinct unit,
but it is closely affiliated with and operated(l as an adjunct to The
Panama Canal.
Operation and Maintenance

The Department of Operation and Maintenance includes the man-
agemenIt functions and those directly involved in the operation and
maintenance of the Canal as a waterway, including the dredged chan-
nel, locks, dams, aids to navigation, accessory activities such as shops
and dry docks, vessel inspection, electrical and water supply, sewer
systems, roads and street,, hydrographic observations, surveys and
estimaiites, and miscellaneous construction other than the erection of
buildings. Construction of the Third Locks, now in a suspended status,
and recent studies concerning investigation of means of increasing the
cipnicity and security of the Panama Canal, as provided by Public Law
No. 280, approved December 28, 1945, also were included in this
department.
Supply
The Supply Department is charged with the acquisition, storage,
and d(list r ibution of riiateriils and supplies for The Panama Canal and
Railroad; the maintenance and construction of buildings; the assign-
ment of living quarters; care of grounds; the operation of storehouses,
oil handling plants, an experimental garden, and a printing plant; the
supplying of nimotor-traii deportation facilities for the various depart-
ments and divisions of the Canal and Railroad organizations; and the
performance of land-rental functions.






REPORT OF THE GOVEIINOR OF THE PANAMA CANAL .


Finance

The Department of Finance is responsible for the collection and
disbursement of funds; the adjustment and setil'mient of claims; the
administrative audit of fiscal accounts; the correct record(ling of
financial transactions of the Canal and Railroad; cost accounting for
the Canil and Railroad; and the preparation of estimate-; for
appropriate ( ions.
Executive

The Executive Department embraces the civil-govenunent functions
including the administration of police and fire protection, postal
service, customs, shipping commissioner duti-, estates, schools, and,
in addition, the general correspondence and records of The Panama
Canal and Panama Railroad Company, personnel admini-tration, wage
adjustments, general information, relations with Panama, and the
operation of clubhouses, restaurants, and moving-picture theaters.

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 Company on the Isthmus
are carried on as an adjunct to The Panama Caial. As the Governor
of The Panama Canal is also President of the Puanama Railroad Com-
pany, the heads of all departments, both of the Canal and Railroad
organization, report to him.

PROPOSED REORGANIZATION

A detailed plan for a revision of the organization of The Panama
Canal was submittedil in June 1949. The proposed revised organiza-
tion was the result of detailed studies made throughout the year and
grew out of the need for a general reorganization of The Panama Canal
to meet more adequately the present-day opera Iing conditions and the
complexities that have developed in the conduct of Governmienit
business.
The general objectives sought to be aceomnplished by the proposed
revision of The Panama Canal organization may be slated briefly
as follows: To establish a clear line of distinction between the general






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


governmental and administrative functions and the operating function
of the organization; to delegate, to the greatest possible extent, author-
ity and responsibility for operatioiial functions to the heads of the
several large subordinate units with general policy controlled and coor-
dinated at top staff level; and to secure a more logical grouping of
related functions.
The revised organization would establish a more effective control
and coordination of policies, reorganization and management of the
numerous diversified activities of the various units both at thie top
and at lower administrative levels.

CHANGES IN ADMINISTRATIVE PERSONNEL

Dr. Howard C. Rufus, United States Public Health Service, was
appointed chief quarantine and iminigra tiun officer on August 2,
1948, vice Dr. John P. Turner, United States Public Health Service,
relieved from duty with The Panama Canal.
Col. Howard Ker, United States Army, was appointed assistant
engineer of maintenance on August 15, 1948, vice Col. Richardson
Selee, United States Army (retired).
Col. Richardson Selee, United States Army (retired), was appointed
Assistant to General Maniger, Panama Railroad Company, on August
15, 1948, vice Mr. LeRoy A. Kane, resigned.
Mr. August C. Medinger was appointed superintendent, dredging
division, on October 1, 1948, vice Mr. John G. Claybourn, retired.
Capt. Robert S. BertW-hiy, United States Navy, was appointed
captain of the port, Cristobal, on October 17, 1948, vice Capt. Myron
E. Thomas, United States Navy, relieved from duty with The Pia inma
Canal.
Mr. Wilson H. Crook was appointed director of clubhouses on Janu-
ary 5, 1949, vice Mr. Richard G. Taylor, retired.
Mr. Roy C. Stockham was appointed superintendent, Locks Divi-
sion, on January 9, 1949, vice Mr. Ellis D. Stillwell, retired.
Mr. Eugene C. Lombard was appointed executive secretary on
March 20, 1949, vice Mr. Frank H. Wang, appointed Adviser to the
Governor.
Mr. Frank H. Wang was appointed Adviser to the Governor on
March 20, 1949.
Mr. Floyd R. Johnson was appointed second assistant chief quar-
teriii;ister on March 20, 1949.
Col. ClI;s. G. Holle, United States Army, was relieved from duty
as Engineer of Maintenance on June 2, 1949. (Note.-Col. Herbert
D. Vogel, United States Army, was appointed to fill this vacancy,
effective July 1, 1949.)





REPORT OF THE GOVERNOR OF THE PANAMA CANAL


Maj. Gen. George W. Rice, United States Army (M. C.), was
appointed chief health officer on June 16, 1949, vice Col. Samuel D.
Avery, United States Army (M. C.), relieved from duty with The
Panama Can il.

CHANGES IN ADMINISTRATIVE ORGANIZATION

Department of Finance

By approval of the President under date of May 19, 1948, all fiscal
functions of The Panama Canal on the Isthmus of Panama, embracing
the Accounting Department, the Paymaster's Office, and the Collec-
tor's Office, were authorized to be consolidated, effective July 1, 1948,
into a Department of Finance, bhended by a Director. Accordingly,
on that date, the designation of the Accounting Department and the
title of Comptroller were changed to the Department, of Finn nce and
Director of Finance, respectively. The offices of the paymaster and
collector were consolidated into the new office of treasurer, The
Panama Canal, on the same date.

Special Engineering Division

Effective June 30, 1949, the Special Engineering Division was abol-
ished, and such of the operations performed by that unit which were
to be continued in the interest of The Panama Canal were transferred
to, or absorbed by, other departments and divisions of The Panama
Canal.

FORCE EMPLOYED AND RATES OF PAY
The force employed by The Panizima Canal and Panama Railrond
Company continues to recede from the peak reaelhed during the war
period. A total of 22,736 persons was employed by these two agencies
as of June 26, 1948, while the force report of June 30, 1949, indicated
a total of 21,338, a reduction of 1,398, or 6.1 percent.
The highly diversified activities of the Canal-Railroad orgainizition
include scores of different functions and many hundreds of employ-
ment categories will be found in the organizaiion. The rates of pay
for executive, supervisory, professional, subprofessionil. clerical, and
other positions in which special educational training or otlier high
qualifications are a requisite are based on equivalent or closely similar
iratvs prevailiing for corresponding positions in continecitil United
States. In a -eoind group are included such positions as tho.e
ocenipid by sinii-killd workers, helpers-. laborers, 11ssunger.s, a (nd
other positions not requiring the services of highly skilled workers or






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


those requiring special training, technical, or other high qualifications.
The rates of pay for employees within this group are based generally
upon local prevailing rates. The positions in this group are filled
mostly by natives of the areas adjacent to the Canal, although some
nationals of many other countries will be found in these positions.
The rates of pay of those persons within the first group referred to
in the preceding paragraph are termed "U. S." rates, while the rates
of pay for the second group are designated as "local" rates. These
designations supersede "gold" and "silver" rates used in last year's
report.
Personnel administration in The Panama Canal and Panama Rail-
road Company on the Isthmus is exercised by the Division of Per-
sonnel Supervision and Management.

EMPLOYEES PAID AT U. S. RATES

The force of U. S.-rate employees, including the combined organiza-
tions of The Panama Canal and Panama Railroad Company, as of
June 30, 1949, numbered 4,779, in comparison with 5,020 as of June 26,
1948, a decrease of 241, or 4.8 percent. The largest numerical decline
occurred in the mechanical division, which dropped from 689 last year
to 528 on June 30, 1949; this decline was due to a decrease in repair
work performed for commercial shipping interests. While most
functions reported slightly smaller forces than in the previous year,
greater work loads or transfer of functions from one unit to another
made small increases necessary in a few of the units.
The number of U. S.-rate employees of The Panama Canal and
Panama Railroad Company as of June 30, 1949, and June 26, 1948,
with the differences, is shown in the following tabulation:

As of June As of June Decrease
30,1949 26,1948
The Panama Canal------------------------------------------- 4,180 4,392 212
Panama Railroad Company---------.----------------------------- 599 628 29
Total..------------------------------------------------- 4,779 5,020 241

The number of employees paid at U. S. rates, by function, will be
found in table No. 48, section V.

Additions to and Separations from Force

The following table gives for the Canal-Railroad organization a
summary of the additions to and separations from the force paid at
U. S. rates for the fiscal year 1949:






REPORT OF THE COV ERNOR OF THE PANAMA CANAL 47


Panama Panama Total
Canal Railroad

Additions-------------------------------- ------------------- 646 77 723
Separations:
Resignation-------------------------------------------------- 474 74 548
To enter military service-.-------------------------------------- I ------------ 1
Reduction in force-----.--.--------------------------------- 66 8 74
Termination of temporary employment or reassignment ....--- 137 1 138
Removal for cause---------------------------------------- 5 1 6
Retirement:
Age--------------------------------------------------- 33 4 37
Disability----------------------------------------------- 19 7 26
Optional------------------------------------------------ 9 1 10
Voluntary----- ------------------.---- 4 -------- 4
Disability-not qualified for retirement------------------------- 3 -- ----- 3
Displacement----------------------------------------------- 14 2 16
Disqualification---------------------------------------------- 4 2 6
Inefficiency---------- ------------------------------ 1 1
Transfer (to other departments of Government) ---------------- 6 -------- 6
Termination (administration policy of Panama Canal, 5 years'
service, age 62)------ -------------------------- 3 ------ 3
Death---------------------------------------------------7 2 9
Total separations------------------------------------------ 786 102 888
Net separations---------------------------------------------- 140 25 165

NOTE.-The above figures do not include 81 employees on a part-time or irregular basis, two United States
citizens paid at local rates, or 16 aliens on the U. S.-rate roll.

As the figures of net separations in the table above were taken from
the weekly personnel reports, which usually lag about 2 weeks behind
the actual termination dates, there is a difference of 76 in the number
of net separations and the net decrease in force as shown in the pre-
ceding paragraphs under the caption of "Employees Paid at U. S.
Rates."
Turn-Over in Force

Based on an average aggregate force of 4,950 and 888 terminations
for the year, exclusive of part-time and irregular employees, the
total turn-over rate for 1949 of this group of employees was 17.9
percentt, as compared with a turn-over rate of 22.3 percent for the
fiscal year 1948. Excluding 138 separations by termination of tem-
porary employment or reassignmentt, the turn-over rate is 15.2 percent
for the fiscal year 1949 as against 18.4 percent for the fiscal y ear 1948.
Further excluding 74 separations due to reduction in force, the turn-
over rate is 13.7 percent, as compared with 17.4 percent for the fiscal
year 1948.
Recruiting

Of the total additions to the force during the fiscal year 1949, 167,
or about 23 percent, were effected through United States recruitment,
and 556, or about 77 percent, were employed through local recruitment.
On the basis of 723 full-time and part-time employment in this group
of employees, the recruitment in the fiscal year 1949 represents an
accession rate of approximately 15 percent, as compared with accession
rate of approximately 16 percent for the previous fiscal year. This






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


decrease in recruitment may be attributed to the general decline in
force and the greater utilizaitioni of in-service employees in transfer or
reassigirnmenit.
At the close of the year there were requisitions pending in the
Washington Office for 84 employment. Of these, 35 positions were
for the schools division, 29 for the Health Department, and the
remainder to fill miscellaneous vacancies.

Adjustment in Wages and Hours of Work
As a result of passage of the Postal Rate Revision and Federal
Employees Salary Act of 1948, base pay increases were granted to
classified employees and certain groups of related(-to-classified employ-
ees. Revisions in other United States rates of pay used as bases for
similar positions in the Canal-Railroad organization resulted in three
upward revisions for craft and craft-supervisory employees, one each
for floating equipment and railroad nonoperating employees, two for
railroad operating personnel, one for Panama Canal Press craftsmen,
one for postal employees, and one for teijchers, instructors, and super-
visors. No changes in the hours of work were made during the fiscal
year 1949

EMPLOYEES PAID AT LOCAL RATES

The force of employees paid at local rates, including those of The
Panama Canal and Panama Railroad Company, as of June 30,
1949, numbered 16,559, in comparison with 17,716 as of June
26, 1948, a decrease of 1,157, or 6.5 percent. A general decrease
of activity resulted in substantial reductions of force in several of the
functions, as well as reductions of lesser significance in many others.
In contrast to this general development, there were a few increases,
the most significant of which were in the schools division, municipal
work, electrical work, and sanitation, all due to increased work loads.
The number of local-rate employees of the Canal-Railroad organ-
ization as of June 30, 1949, and June 26, 1948, with the differences, is
shown in the following tabulation:

As of June As of June nt,.
30,1949 26,1948 D Trn
The Panama Canal. ------------------------------------- --- 10,811 11,548 737
Panama Railroad Company --------------------------------------- 5,748 6,168 420
Total... ----------------------------------- -------------- 1, 559 17,716 1,157






REPORT OF THE GOVERNOR OF THE PANAMA CANAL 49

The number of local-rate employees by function will be found in
table No. 49, section V.

Wages of Local-Rate Employees

On September 26, 1948, the wage struql lire for local-nirle employees
was increased from 13 to 15 grades, each with 5 in-grade steps. The
minimum and maximum rates tliihat resulted were 26 cents and $1.40
per hour, respectively. The average hourly rate was 47 cents on
June 30, 1949.
Sick and Rest Leave

The leave regulations applicable to employees paid at local rates
were amended May 1, 1949, as follows: To credit sick and vacation
leave at the rate of 1 hour for every 10 hours of service in the basic
work week, not to exceed( 4 hours leave credit in any 1 week; the max-
imum allowable accumulation to be 416 hours; previous sick-leave
credits, not in excess of 240 hours, to remiiin available for use as sick
leave only until May 1, 1950; compensation to be palid(l in a lump sum
for all accumulated leave (other than sick-leave credits earned prior
to May 1, 1949) when an employee is separated from the service.
The number of hours of leave for which payment was made during
the fiscal year 1949 was 2,541,000.

Cash Relief for Disabled Employees Paid at Local Rates

New applications for relief under the act of ConigresS-; of July 8, 1937,
averaged 42 per month during the fiscal year 1949, as compared with
12 per month in the fiscal year 1948. The regulate ions established
during the latter part of the fiscal year 19i- for administering this
relief were continIued without material chiiige.
The table below shows the disposition of all applications for relief
benefits from employees of both The Pinaiima Canal and the Panama
Railroad Company during the fiscal year 1949:
Applicati, Panama Panama Total
Canal Railroad

Onhand July 1, 1948 ---..------------- .-- .-----------------.-------- 21 7 28
Received during 1949 ...---------------------------------------- 377 129 506
Total-.. ---------.-.-----.--.------- -------- -- .. ..---- 398 136 534
Disposition:
A.Iiro.-ed for payment -------------.----------------------- 340 110 450
Found ineligible ------------------------- ------------- -.. -.. 50 20 70
Pending.----.. -----. --.--.---..-- .----------.---------------- 8 6 14
Total --------------------- -- .------- ------- - 398 136 534

NOTE.-Removal from the rolls on account of the deaLth or subsequent rv.irployuii t -.,f cash recipients:
The Panama Canal, 90; the Panama Railroad Company, 30; Panama itailruad pen-i ii Ers, 8.







REPORT OF THE GOVERNOR OF THE PANAMA CANAL


Total and average costs per month during the fiscal year 1949 were
as follows:

Monthly Monthly
Number of average aver
cases payment payments
per case

Panama Canal rolls------------------------------------------------ 1,392 $21.72 $30,233.50
Panama Railroad rolls---------------------------------------------- 457 20.17 9,218.75
Panama Railroad pensioners I ------.---- --------------------- 72 13.43 967.00
Total ---------------------. --------------- --------------- 1,921 21.04 40,419.25

1 Si p iiii W I n l employees granted cash relief prior to July 8,1937.

Expenditinres on behalf of The Panama Canal cash relief program
are paid from annual appropriations for that purpose, while those of
the Panama Railroad Company constitute a continuation of the former
plan of granting cash relief to the superannuated employees of that
company and are paid by the Panama Railroad Company.
Because of the general increase in the cost of living, the value of
benefits to annuitants under the act of July 8, 1937 (commonly
referred to as the Cash Relief Act), has become progressively smaller;
for this reason, legislation has been requested to supersede the cash-
relief procedure, other than for the present beneficiaries, and to provide
for a simple retirement plan for local-rate employees.

Repatriations

In 1934 an appropriation of $150,000 was provided for the repatri-
ation and rehabilitation of former local-rate employees (and their
families) who have rendered at least 3 years of service with the
United States Government or the Panama Railroad Company on the
Isthmus. During the fiscal year 1949, $22,531 was expended for the
repatriation and rehabilitation of 247 former members. To the end
of the fiscal year 1949 a total of $128,678 has been expended from this
appropriation.
CENTRAL LABOR OFFICE
The central labor office program of The Panama Canal provides
for eligibility control over applicants seeking employment with
Govniiruent agencies and private contractors operating on Govern-
ment work in the Canal Zone. A general decrease of employment
activities is indicated by the comparative figures presented in the
following table, showing the total numbers of local-rate employees






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


carried on the rolls of the various organizations as of June 1949 and
June 1948, the decrease in total force being 12.1 percent:

June

1949 1948

Panama Canal and Panama Railroad Company-..-----------------------..- 16,559 17,716
U. S. Army--------------..---. ..-----.---------..------------------------ 3,590 7,472
U. S. Air Force-------------------------------------------------------------- 1,871 --------------
U. S. Navy---------------------------------------------------------------- 2,425 2,788
Government contractors and miscellaneous.. -------------------------------- 1,625 1, 686
Total ---------------------------------------------------------- 2'..070 29,662

NOTE.-Ti'i filiirv* in this table are based on rprits submitted 1:. the various cooperating agencies,
which form the basis for prorating the expenses of the central labor nilth..

Because of the insufficient supply of qualified labor on the Isthmus
to handle the heavy construction program cairriedl on during the war
emergency, The Panama Canal was forced to resort to the recruit-
ment of contract laborers from the Republic of Colombia, Jamaica,
Costa Rica, and El Salvador. With the diminiiishing need for outside
labor after the cessation of hostilities, most of these workers have
been repatriated to their native countries. From the inception of
the foreign recruiting program in 1940, 22,265 contract workers were
brought to the Isthmus, of which 22,180 have been returned to their
native countries, leaving as of June 30, 1949, a total of 85 remaining
on the Isthmus.

SAFETY PROGRAM

The principal duties of the safety section are the development,
improvement, and supervision of adequate safety programs in all
functions of the Canal-Railroad organization; to seek out and elimi-
nate the causes of accidents; and through safety education, safety
engineering, and the enforcement of safety operating procedures to
reduce both the frequency and severity of accidents.
A new low frequency rate was achieved in the fiscal year 1949,
representing an improvement of 30 percent in comparison with that
in the previous year. The improvement trend of the safety program,
started April 26, 1940, has been unbroken except for a slight reversal
in 1947. However, during the past fiscal year, 1 permanent total
disability case, coupled with an increase of from 13 to 19 in the
number of injuries causing permanent partial disability, had the
effect of producing a 16-percent increase in severity rate over tlhe
previous low, attained during fiscal year 1948.







REPORT OF THE GOVERNOR OF THE PANAMA CANAL


The following statistics cover the accident rates for the Canal-
Railroad organization for the eight full fiscal years since the in-
auguration of the s-afity program:

Year Man hours Lost-time Frequency Time Severity Fatalities
worked injuries rate I charges rate 2

1941 --------------- 72,725,000 5,750 79 214,170 2.94 21
1942 ---- ------------------ 92,429,000 4,978 54 238,628 2.58 27
1943 ---------------------94,325,000 3,585 38 230,914 2.45 28
1944---------------------- 80,499,000 2,770 34 158,770 1.97 17
1945 -------------- 70,108,000 2,347 33 90,159 1.29 6
1946 -------------------- 61,510,000 1,440 23 81,007 1.32 8
1947 ---- ------------------51,696,000 1,252 24 79,821 1.54 4
1948 ---- ------------------ 45,338,000 1,058 23 56,225 1.24 4
1949-------------------------- 40,505,000 663 16 58,479 1.44 4

1 Frequency rate is the lost-time injuries per million man hours worked.
2 Severity rate is the time charges, in days, per thousand man hours worked.

The following table shows injury and death compensation benefits
for the Canal-Railroad organization for each of the 9 years since the
inauguration of the present safety program, compared with the annual
average for the preceding 23 years:

Injury Compensation
Yearly average completion per $1,000
pay roll

23 years 1918 to 1940--------------------------- --------------------- $51,886 $3.31
Fiscal year:
1941 ---------------------------------------------------------- 86,290 2.55
1942 -------- -------------------------------------------------- 98,830 2.21
1943 -------------------------------------------------------- 104,550 2.17
1944------------------- --------------------------------------- 120,037 2.58
1945----------- -------------------------------- 107,585 2.56
1946-------- ----------------------- ---- 109,658 2.78
S1947---------------------------------------------------------- 110,899 2.75
1948. -- ----------------------------- 116,238 3.04
& 1949..--------------------------------------------------------- 106,080 2.70


Thus, the cost of injury and death benefit payments, per $1,000 of
pay-roll expenditures, decreased from $3.04 in the fiscal year 1948 to
$2.70 in the fiscal year 1949, and is appreciably below the 23-year
average of $3.31. Approximately 90 percent of the compensation
payments for 1949, as compared with 81 percent for the previous
fiscal year, were for injuries and fatalities occurring in prior fiscal
years. Payments on many of these prior cases will continue for
several years and, therefore, the compensation rate cannot be expected
to decrease during the next few years in proportion to the anticipated
decrease in work load. These payments would have been materially
higher except for the progress in accident prevention resulting from
the inauguration of an effective safety program.

EXPERIMENT GARDENS

The Camial Zone plant-introduction gardens and experiment, station
were e-tIablished in June 1923. The gardens, which include green-





REPORT OF THE GOVERNOR OF THE PANAMA CANAL


houses, nurseries, and experiiiimeniital plant iniigs, emibraei approxi-
mately 125 acres of land, and are devolted to the propaigaionii and culti-
vation of a wide variety of useful and ornamental plaints fromni all parts
of the world, primarily for the purpose of determiningig their adapita-
bility and value under local soil and climiatic condition>, for general
propagation on the Isthmus. This unit also de-igniis and supervi-es all
landscape work for The Puuanim Canal and the Panama Railroad
Coinpany, and also does landscape work for other goveriniimInt agen-
cies on the Canal Zone. The lainid-cape section was engaged in 39
projects during the year. Plant introduction work was of minor sig-
niiificaiice during the year, with less than 50 sessions recorded. A
few items were purchliased from cominreial nur-,eries- in the United
States for distribution by the iinursery unit. The experiment garden,
in order to help meet the demand( for freshI vegetables, maintains a
small, self-supporting vegetable garden.

CLUBHOUSES

The Panama Canal cluibihouses unit operates restaurant, motion-
picture, bowling, and other ireeat tional facilities for United States
Government personnel, their families and guests. The clubhouses
are self-supporting and for a number of years no appropriations have
been required for these activities.
On April 4, 1949, the Balboa Shops cafeteria, after undergoing
extensive alterations and the installation of new equipment, was
opened to employees for breakfasts and hot lunches. Previously only
sandwiches, pastries, ice cream, and cold drinks were served in this
unit.
Complete struck iiral renovations and the installation of iiimany new
items of equipment were effected during the year at the Camp Bierd
clubhouse. Extensive alteration work providing additional sIpace in
the dish-washingi section and beneficial changes in other sections of
the Ancon clubhouse also were completed during the year, as was the
work in coiiinnection with installation of new large walk-in refrigerators
and improvemen-i ts of kitchen area at the Cristobal clubhouse.
Upon the coiiimp)letion of extensive alter itlioins the new Paeirlic club-
house was opened for business in whliat was forierly the Tivoli USO
building Public response to the restaurant service and recreational
facilities offered at this clubhouse hlias been iiiore than satisf4actory.
Construction of thlie new air-conditioned Balboa theater was well
under way at the end of the year and its eomiplIelioni is scheduled for
January 1950.
A diiiiiiiiniiig volume of business necessitilled the closing of the
Diablo Heights clubhouse dininiiig iroom; the former custiiiiers are now


S5ti9i.i7-50- 5






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


furnished meals at the Diablo Heights restaurant. Further economies
were effected by closing the kitchen of the Gamboa, Gatun, Chagres,
Paraiso, Red Tank, and Santa Cruz clubhouses, and discontinuing
the cafeteria activity of the La Boca restaurant. Prepared food now
sold at these clubhouses is being furnished by the Margarita clubhouse
on the Atlantic side and by the Diablo Heights restaurant on the
Pacific side.
A general decrease in the volume of business has necessitated, the
curtailment of certain services, the more important of which are
enumerated in the preceding paragraphs, enabling a force reduction
of full-time employees, and other economy measures.

LEGISLATION

Among the laws enacted by the Congress during the fiscal year 1949
which relate to or apply in the Canal Zone or affect The Panama Canal
and which are of importance and interest are those described below:
An act approved July 3, 1948, to provide for permanent postal rates
and to provide pay increases for Government employees.
An act approved June 9, 1949, to regulate subsistence expenses and
mileage allowances of civilian officers and employees of the Govern-
ment.
A House resolution, agreed to February 28, 1949, authorizing the
Committee on Merchant Marine and Fisheries or a subcommittee
thereof to make a full study of the financial operation of The Panama
Canal.
Legislation relating to or of interest to the Canal Zone introduced
during this fiscal year and still pending in Congress on June 30, 1949,
includes:
A Senate resolution (S. Res. 65) to investigate the Panama Canal
and interoceanic canals generally.
A bill (H. R. 327) to increase the amount authorized to be appro-
priated for the erection of a suitable memorial to Maj. Gen. George
W. Goethals within the Canal Zone.
Two bills (S. 498 and H. R. 1689) to increase the compensation of
the heads of executive departments and independent establishments,
including the Governor of The Panama Canal.
Six bills (S. 590, H. R. 1398, H. R. 2140, H. R. 3446, H. R. 4243,
and H. R. 5461) to extend the benefits of the Panama Canal construc-
tion service annuity law of May 29, 1944, as amended.
A bill (H. R. 990) to amend the Internal Revenue Code so as,
among other things, to extend the Federal income tax to Government
employees in the Canal Zone.






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


Two bills (S. 1136 and H. R. 3159) to amend the Canal Zone Code
in several respects, principally for the purpose of enacting substantive
legislation in support of certain appropriation Act provisions.
Two bills (S. 1137 and H. R. 3158) to amend the Canal Zone Code
in reference to several varied subjects.
A bill (S. 1168) to exempt the Panama Railroad Company from the
provisions of the Federal Tort Claims Act.
A bill (H. R. 1227) to extend social security and unemployment
compensation benefits to certain employees of the Panama Railroad
Company.
Two bills (S. 1359 and H. R. 3445) to merge the Canal Zone and
Alaska retirement laws with the Civil Service Act as amended.
A bill (S. 1489) authorizing a review of the report on the inter-
oceanic canal across Nicaragua contained in a document published
by the Seventy-second Congress.
Three bills (S. 1744, H. R. 2277, and H. R. 3107) to amnend the
Canal Zone Code to provide for a minimum wage.
A bill (S. 1917) to authorize the conversion of the Panama Canal to
a sea-level waterway.
Three bills (S. 2061, S. 2072, and H. R. 5172) to create a commission
to make studies of the overseas administration of the Federal Gov-
erunment.
Two bills (S. 2008 and H. R. 5182) to consolidate certain hospital,
medical, and public health functions, including Panama Canal hos-
pitals, dispensaries, and health services, into a United Medical
Administration.
A bill (H. R. 2212) to change the names of Gatun Locks, dam and
town to "Sibert Locks," "Sibert Dam," and "Sibert," respectively, in
memory of Maj. Gen. William L. Sibert.
A bill (H. R. 2511) to permit vessels engaged in the coast wise trade
of the United States to pass through the Panama Canal without pay-
ment of tolls.
A bill (H. R. 3191) to amend the Federal Employees' Compensation
Act of September 7, 1916, as amended.
A bill (H. R. 4121) to extend the coverage of the Canal Zone Retire-
mnent Act to alien and intermittent employees.
A bill (H. R. 4354) to amend the Nationality Act of 1940 to provide
for the furnishing of certificates of citizenship with respect to United
States citizens born on the Isthmus of Panama.
A bill (H. R. 5219) to provide for the construction of a sea-level
ship canal through the Isthmus of Telihuantepec, Mexico.














Section IV


GOVERNMENT

The government of the Canal Zone is conducted as prescribed in
the Panama Canal Act of August 24, 1912, and subsequent acts and
Exi'iutive orders applicable to the Canal Zone. Whenever practica-
ble, governmental functions have been assign--d to departments in the
organization established for the operation and maintenance of the
Canal. Complete cooperrition and iiireasdl efficiency are derived
from such coordination of functions.
Data on expenses and revenues of various features of Canal opera-
tion and government are contained in the financial and statistical
statement in section V of this report.

AREA OF THE CANAL ZONE

The total area of the Canal Zone 1 as of June 30, 1949, with areas
segrega ted for various purposes, is shown in the table below:
Land area:
Military and naval reservations (inclusive of licenses and
assignments): .,.
Military reservations------------------------------- 84. 21
Naval reservations --------------------------------- 11. 60

Total------------------------------------------------- 95.81
Canal Zone townsites and areas outside of townsitcs in active
use ------------------------------------------------------ 13. 61
Ii-vellan t*us assigned land areas:
Barro Colorado Island --- -------------------- 5. 71
Forest preserve (excluding Miadldii Pin])_------_ 5. 38
Cattle pastures ---__--------------------------- 39. 90
Commercial licenses-------------------------------- 4. 97

Total ------------------------------------------ ------ 55.96
Swamps----------------------------------------------------- 15. 16
Rt filing usable land---------------------------------------- 191.95

Total land area of the Canal Zone---------------------------- 372. 49
2Excludes small tracts (total area 0.83 square mile) which arc noncontiguous to main Canal Zone.
56






REPORT OF THE Gil l-INOR OF THE PANAMA CANAL


Square
Water area: miles
Fresh water- 1------------------------ -- ------- I 07
Tidewater (Atlantic and Pacific within 3-mile limits) 45

Total----------------------------------------------------- 275. 52

Total area of the Canal Zone--------------------------------- 648. 01

POPULATION

By compiling infoiiniati ii ob0iiinird from the chief quaritu'ri-im; er,
the land section, the Army, Air Forrr, and Navy authorities, and by
making a house-to-house canvass of pierisons employed(l by commercial
interests, an estii;imte was madle in March 1949 of the population of
the Canal Zone. The estimate population figures include civilian
employees of all governmental agencies and their families, and members
of the Army, Air Force, and Navy personnel re;diniig in the Canal
Zone, but omit uniformed perionnimel of these services.
The following is a suiimnary of the population by districts:

Americans All others
-__ Total
Men Women Children Men Women Children

Balhoa district---------------------- 4,622 6,065 6,187 4, 837 3, 516 5, 665 30, 892
Cristobal district--------------------- 1,223 2,261 2,472 3,209 2,183 4,221 15,569
Total, 1949--------------------- 5. 845 8. 326 8, 659 8,046 5,699 9, 886 46, 461
'I ,I 1. 1948 -------------------- 6, 094 ,3988,, 295 8, 709 5, 897 10, 069 47 462
Total, 1947 --------------------- 6,319 8,414 7. i'i 9,250 5,696 I( 111 47,352


The total population as of March 1949 showed a decriv-ev of 1,001,
or 2.1 percent from that of the previous year.
In addition to the population figures shown above, the records
indicated that in March 1949 there were 1,514 Americans (466 men,
492 women, and 556 children) residinig in United States Government
quarters in New Cristobal, Republic of Panama.

PUBLIC HEALTH

The health of the Canal Zone populace continued relatively good
during the year. Excluding malaria and venereal disease, the average
number of reportable di-easrs per month for the year was 36 as com-
pi red with 42 during the previous fi;ial year, and 72 per month during
the fi-dal year 1947. Pneumoniiia, chicken pox, and tuberculosis
constituted 67 percent of the total number of cases reported during






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


the fiscal year 1949, with tuberculosis constituting 10 percent of the
total number.
For Panama City, the avenirage number of new cases of communicable
diseases per month reported to the chief health officer for the fiscal year
1949 was 27 as compared with 26 per month for the previous fiscal
year and 76 per month for the fiscal year 1947. The city of Colon
had an average of 6 cases of reportable diseases per month for the
fiscal year 1949 compared with 4 and 19 cases, respectively, for the
years 1948 and 1947. Chicken pox accounted for 63 percent of the
total number of cases reported from Panama City during the year
while this same disease accounted for 43 percent of the total number
of cases reported from the city of Colon. As many cases of pneu-
monia, tuberculosis, and whooping cough outside the Canal Zone are
not reported unless death occurs, the above comparative figures for
reportable diseases of residents of the cities of Panama and Colon
exclude these diseases as well as malaria and venereal disease.
The malarial rate for employees of The Panama Canal and Panama
Railroad Company for the fiscal year 1949 was 4.6 per thousand as
compared with 7.2 for the fiscal year 1948, and 13.3 for the fiscal
year 1947.
There were 9 cases of poliomyelitis admitted to Panama Canal
hospitals during the fiscal year, one of which subsequently died, as
compared with 30 cases in 1948, and 10 cases in 1947. The increase
in poliomyelitis in the Canal Zone during the past several years has
paralleled the increase in the United States and it continues to be
felt that fast, modern transportation between the Isthmus and com-
munities in which the disease is known to be prevalent, constitutes a
factor in the occurrence of this disease on the Isthmus.
During the latter part of January 1949, the Health Department was
apprised of five deaths due to jungle fever yellow which occurred
during the months of November and December 1948 in the vicinity
of the town of Pacora, in the interior of the Republic of Panama.
Immediate steps were taken to investigate the epidemiological aspects
of this yellow fever outbreak and, as a result of this investigation, a
long-term yellow fever control program was formulated. This pro-
gram called for (1) the protective immunization against yellow fever
by vaccination of the populations, both urban and rural, throughout
the Canal Zone and the Republic of Punnnmn, (2) the development of
a program for the complete eradication of the Aedes aegypti mosquito
from the Canal Zone and the Republic of Panama, and (3) the estab-
lishment of an epidemiological service to study the presence of en-
demic centers and the spread of the disease.






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


Both the Governments of Panama and of the United States have
joined in a coordinated effort, under the supervision of the Health
Department, to carry out this program. Since the outbreak was first
reported until June 30, 1949, approximnlately 425,000 vaccinations
were performed with an estimated 55,000 vacciiiations, principally in
the more remote and outlying sections of the Republic of Panama,
remaining to be accomplished. Ad(es a g]ypti iiinspections have been
made and are being continued throughout the entire Canal Zone and
Republic of Panama and wherever foci of breeding a-e found the
towns or villages in the area are treated with a residual of 90-percent
wet table powder DDT spray. In order to prevent the reintroduction
of the Aedes aegypti mniosquito, all coastal shipping is inspected( and
the boats are sprayed at regular intervals.
Laboratory tests are being made of human blood, as well as that
of monkeys and other tree animals, for evidence of the presence of
yellow fever. Viscerotomy posts have been established to obtain
liver specimens from people who have died of an uindiagnosed febrile
illness lasting 10 days or less. Wherever several jungle or rural
deaths of a suspicious nature are reported, a complete epidemiological
investigation is made.
Vital Statistics

The morbidity and mortality rates from diseases and injuries, to-
gether with the other vital statistics relating to the population of the
Canal Zone and the cities of Panama and Colon, are set forth in
detail in the report of the Health Department for the calendar year,
which is published annually in booklet form. For this reason, the
data herein pertaining to vital statistics are limited to a brief resume
of the important information.
General d(afh rates.-The death rate for the Canal Zone is artificially
low in comparison with Panama City and Colon, because residence
in the Canal Zone is largely restricted to a selective group, i. e.,
Government employees and members of the armed forces and the
immed(liate members of their families; and because ex-employees
generally leave the Isthmus after retirement. No large-scale epi-
demics occurred(l in the cities of Panaima and Colon. The greater
public enlightenment in regard to public health measures and the
long-range effect of the over-all sanitation program, together with
the development of chemotherapy and(l the newer antibiotic drugs
have been factors in further lowering the abnormally low deathrates








REPORT OF THE GOVERNOR OF THE PANAMA CANAL


in these t%-wo cities. Below are shown death rates by yearly periods
for the past five calendar years:

Death rate per 1,000 population-all causes

Calendar year

1948 1947 1946 1945 1944

Canal Zone 1 _- -----.----- -------- 6.19 6.00 6.31 5.12 6.13
Panama City----------------------------- 7.51 7.96 9.44 9.42 10.57
Colon --- -------- ----------- --- 9.54 9.47 12.00 12.32 11.55

I Omits Army, Air Force, and Navy uniformed personnel.

Prhin'/(ip1 causes of draik.-The principal causes of death in each of
the groups of population, together with the rate per thousand popula-
tion, were as follows:

Number of deaths and annual rate per 1,000 population-calendar year 1948


Canal Zone:
Tuberculosis ------------------
Or.' ii diseases of the heart---
Cancer, all types -------------
Pneumonia ------------------
Nephritis -------- ----
Diseases of the arteries ---------
Panama City:
Tuberculosis ----------------
Organic diseases of the heart-
Cancer, all types ---------------
Pneumonia -----------------
Nephritis----------------------
Apoplexy --------------------
Colon:
Tuberculosis --------------
Organic diseases of the heart -
Cancer, all types--------------
Nephritis --------------------.
Apoplexy --------------------.
Diarrhea and enteritis----------


Number


Rate per
1,000


0.231
1.032
.695
.177
.177
.421
1.348
.873
.684
.684
.363
.405
1.314
.971
.609
.704
.704
.704


Birth rate.-In the Canal Zone a cliaiingi in the birth rate, as dlistinet
from the number of births, has only limited significance because of the
peculiar situation which exists with regard to the population on which
the rnite is calciiulaited(. For the past 8 years, population figuiires have
excluded uniformed personnel of the armed forces, but included
members of their families, and children born to armed forces flNuilies
are included in the total ntiiiiuber on which the rate is calculated.
A factor which depresses the birth rate concerns local-rate personnel
in the Canal Zone. Canal Zone quarters are generally available only
to such employees who have more than average leInglhi of service and
they and their wives are, therefore, predominately in the older-age
brackets.


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







REPORT OF THE GOVERNOR OF THE PANAMA CANAL


The following table si the birth ratei( in the C(inial Zone and the
terminal cities of PNnina and Colon for the paIst 5 years:

Birth rate per 1,000 population


Cale

1948 1947


Canal Zone: I
White ------------
Colored ------...


Combined----------------------------------
Panama City-- ..-.---...----------------------
Colon.---------------------------------------------


53. 2:3
22.41
37.20
29. 08
38.49


ndar year

1946


1945


55. 92 44. 69 32. 23
19.17 18.92 18.47
36.32 29. 42 23. 74
29. 26 32.52 32.62
37.47 38.47 38.81


1944


32.65
19.07
24.11
34.03
37.45


I Canal Zone rates are based on civilian population in each group.


Do tilhi /Iaes aminlg c41i1dn under 1 year of age.-The following table
shows the infant mortality rates per 1,000 births for the past 5 years:

Death of infants under 1 year of age per 1,000 live births


Canal Zone:
White -------------------------------------------
Colored ----- .....-------------------------------
Combined -------------------------------------
Panama City-----------------------------------.
Colon---...---..-----------------------------------


1948


19
47
27
61
65


Calendar yeF

1947 1946


14
45
23
58
56


17
63
34
67
71


1945 1 1944


24
44
34
72
94


Malaria


The rates for malaria among employees only for the past 10 years

are shown below:


Calendar year


1939 -----------------------------------
1940... ----------------------------...
1941-...---...- ----------------- -..-
1942 -..- .....................- ......
1943... --------.---..-.. --------------


Rate per
thousand


Calendar year


1944......-
1945.... ...
1946. --.
1947..- .----
1948.........


There was one death from niiliria among employees during the

calendar year 1948.


17
43
30
70
84


Rate per
thousands

13
13
12
12
6


---







62 REPORT OF THE GOVERNOR OF THE PANAMA CANAL

Hospitals

The number of patient days in Painama Canal Hospitals for the
past three fiscal years was as follows:
Patient days

Fiscal year

1949 1948 1947

Gorgas Hospital -- -------------------------- 204,786 224,610 234,616
Corozal Hospital:
Insane-------------------------------------------------------- 94,078 92,565 89,600
Cripples and chronic medical and surgical cases .---------------- 37,285 35,012 34,938
Colon Hospital------ -------------------------------- 55,762 47,228 52,711
Margarita Hospital----------------- .---------------------------- (1) 17,282 21,722
Palo Seco Leper Colony------------------------------------------ 41,628 40,666 41,349
Total.------------------------------------------------ 433,539 457,363 474,936

1 Closed.

Quarantine and Immigration

During the fiscal year 1949 inspection was made of 4,623 vessels
and 4,455 airplanes as compared with 6,325 vessels and 4,821 airplanes
in the previous year.
On September 1, 1948, new quarantine rules and regulations were
placed in effect whereby vessels or aircraft are exempt from quarantine
inspection if, in the current voyage, they have not touched at any
port other than those under the control of the United States or in the
Republic of Panama. Also, vessels or aircraft are exempt from
quarantine inspection if in advance of arrival they have transmitted
a duplicate of a free pratique received at a port under control of the
United States. Thus under the revised procedures 678 vessels were
exempt from quarantine inspection between September 1, 1948, and
the close of the fiscal year.
No cases of quarantinable diseases (plague, typhus, yellow fever,
smallpox, and cholera) on arriving vessels or airplanes were reported
or detected, but constant vigilance was maintained against the in-
troduction of these diseases. On July 4, 1948, a vessel was placed in
quarantine because 2 days prior to its arrival at the Isthmus a case
of poliomyelitis was removed at Curagao, and a patient was aboard
with a fever of unknown origin. After transiting the Canal the vessel
was released from quarantine at sea after diagnosis of the patient
removed at Cristobal established that his illness was not caused from
a quarantinable disease.
Immediately on receiving the report of several cases of jungle
yellow fever in the Republic of Paiaiimi, special precautions were
instituted to prevent transmission of the disease to other countries.






REPORT OF THE GOVERNOR OF THE PANA\MA CANAL


Planes were d(lisinsected(l immediately prior to leaving the Canal Zone
air terminal, and no passengers from the Pacora area were allowed(l to
embark from the air terminal.
A suniniary of quarantine and immigration activities will be found
in table 50, section V.

MUNICIPAL ENGINEERING

Municipal work carried on during the year included the construction
and maintenance of roads, streets, and sidewalks, and the operation
and maintenance of the water and sewer systems in the Canal Zone,
including reservoirs, filter plants, and pump stations. The mainte-
nance of the water system, sewer system, and the streets in the cities
of Panama and Colon, and the furnishing of filtered water to these
municipalities, were also handled by the municipal engineering
division. Construction work was performed and services ren(ldered
for .departments and divisions of The Panama Canal, the armed
forces, the Government, of the Republic of Panama, and for various
individuals and companies. Only the major items of this work are
conmmnented upon in this report.

Water System

Consinumption of filtered water for municipal uses and for sales to
vessels during the past three fiscal years is given in the table below.
The cities of Panama and Colon, Republic of Panama, used 44 per-
cent of the total amount consumed.
[Thousands of cubic feet]

Fiscal year

1949 1948 1947

Canal Zone ------------------------------------------------ 889,562 913,162 939. 250
City of Panama 3-- 1------------ A.5.31 544,053 4 71-1
Cii ofColon --------------------- ------------------------- 1 Ii.Ji 171,222 170,935
Sales to vessels--------------- ------------------------------------ 18,446 20,550 18,872
Total--------------------- -------------------------------- 1,627,634 1, i4', 987 1,584,771

Regular maintenance work was performed on the pipe lines, reser-
voirs, filtration plants, and pumping stations during the year. In
addition, a number of special projects were completed or in process of
completion during the year. The more important items included the
replacement of 1,950 linear feet of 6-inch water line from building No.
42 at section "I," Balboa, to the 6-inch water line near building No.
5711, Diablo Heights, with 1,078 linear feet of 8-inch main and 872







REPORT OF THE GOVERNOR OF THE PANAMA CANAL


linear feet of 10-inch nimain; the installation of 350 linear feet of 8-inch
cast iron main at Balboa Heights; and the replacement of 8-inch un-
lined water line on Barneby Street, Balboa, with 1,540 feet of 8-inch
cement-lined pipe, the latter project including the connection to the
new main of 19 house service lines and 8 distribution lines.

Sewer System

Regular sewer maintenance, consisting of cleaning and flushing
lines, cutting tree roots, replacing defective pipe, etc., was accomp-
lished during the year.

Roads, Streets, and Sidewalks

Regular maintenance work was performed on the Canal Zone roads,
streets, and sidewalks during the year. In addition to this work, there
were a number of special road projvvts, the more important involving
the reconstruction of Heights Road and Gorgas Road from the Ad-
ministration Building, Balboa Heights, to the Gorgas Laboratory,
Ancon; a 1,500-foot extension of Limon Road with a 22-foot wide
concrete pavement from the mechanical division area to the garbage
dump area, Cristobal; and the widening by 2 feet of Bolivar Highway,
from Wilson Street to Diversion Road, Cristobal.

Other Heavy Construction Activities

Considerable work including the relocation, extension, and removal
of water, sewer, and electric lines, and the relocation and repairing of
roads, streets, and sidewalks in connection with the construction of
the clinics-auditorium building, Gorgas Hospital, Ancon, was aecom-
plished during the year.
Preparatory work was performed on the improvements scheduled in
1950 for the Thatcher Ferry slips. Work carried forward included the
installation of a storage and assembly yard, construction of a timber
and pile temporary trestle, and the erection of temporary buildings at
the wr-;t ferry slip.
Work was completed during the year on a section of Boyd-Roosevelt
Highway, extending from Escondido Bridge to Randolph Road, near
Cristobal, and measuring 1,150 feet in length and 24 feet in width.

Cities of Panama and Colon

Regular maintenance work was performed on the water and sewer
systems, and on the streets and sidewalks during the year. Several
improvement projects were completed or in process of completion
during the year, the principal ones involving the excavation, grading,






REPORT OF THE GOVERNOR OF THE PANAMA CANAL 65

and filling of the Colon stadium arem; the installation of sanitary and
storm sewers, streets, curbs, and gutters onl Avenida Roosevelt, Calle
Santa Isabel, Calle "A", Calle 13, and Calle 14, Colon; and the exten-
sion of the Melendez A venue storm-drainage systemN, Panama City.

1Miscellaneous Activities

Sis1 Hill piarl y and rock crihliinj jiltni.-Rock crushed during the
fiscal year 1949 and issued to various departments and divisions of
The Panama Cmuiil, Panama Railrimd Company, units of the airiid
services, the Republic of Paniaiii, and to individuals and companies,
totaled 91,016 cubic yards. lin addiction, this plant produced approxi-
mately 5,016 tons of i-jphliltic mixtures for pl'riiient on street sur-
faces.
C& tral mixing plant.-During the year 15,553 cubic yards of ready-
imixed concrete were produced.
Coincriet( pipe pjulits.-These plants manufactured 2,986 linear feet
of various sized coniicrete pipe, both plain and reinforced, in ad(ldition
to varying quantities of concrete valve boxes, valve box covers, and
cement blocks.
Te.titg lvbiumrifry.-The laboratory continued to make tests as re-
quired, inclwingiiz the making of chemical and bacteriological analyses
of wa t er, chemical analyses of different ma t eriils, concrete tests, tests
for determiniiing the suitability of materials and supplies for Canal use,
tests to determine the presence or absence of deleterious gases in the
holds of ships and oil tanks, soil and permeability tests, etc.

PUBLIC ORDER

During the fiscal year, 7,985 arrest-; were made, a decrease of about
one percent in comparison with the previous year, and a devriase of 10
percent in coiimparison with the fiscal year 1947. Statistics covering.
these arrests, with corresponding figures for the two previous years, are
given in the following table:

Fiscal Year

l'iesn I'll-ui' PerHT

1 r ll.l .. : i I'.: ..U
I ilil
.rrn l. inm lic without warrants. 6, 938 7.126 7.662

Residents of the Canal Zone ---.. --.-.--.--.----------------------- '. .' 7 .
Residents of Panama ------------.. .-------..-----.----.--.---. i ', -' 71
Tial s1ii0 rs....... 40 370 381
T otal --------- -------- ------- -------------------------- 7 i7' 9'% '17






66 REPORT OF THE GOVERNOR OF THE PANAMA CANAL

There were 8,438 charges filed against persons arrested during the
fiscal year 1949, of which 8,158 were misdemeanors and 280 felonies,
the latter representing 3.3 percent of the total offenses charged. The
following were the principal causes of arrest:

Fiscal year
Cause of arrest (charge) -
1949 1948 1947

Violationof traffic regulations ----------------------------------- 5,043 4. 4 5,299
Loitering------------------ ----------------------------------- 563 61 704
Trespassing-- -------------------------------------------------- 584 542 699
Petit larceny-------------------------------------------------- 337 486 466
Intoxication --- ------------------------------------------- 248 234 295
Disturbing the peace------------ -------------------------------- 154 178 247
Battery -------------------------------------------- -- 171 161 236
Fugitive from justice ------------------------------------------- 212 202 222
Vagrancy-- ------------- ---- -------------------------- 302 228 191
All others- --------------------------------------------------- 824 898 1,058
Total------------------ ------------------------------ 8,438 8,446 9,417


Coroner's investigations.-A total of 90 deaths were investigated by
the coroner during the fiscal year 1949. Of these 29 required formal
reports of inquests which established that 22 were accidental, 2 homi-
cidal, and 5 suicidal.
Prisoners.-During the year the number of prisoners serving sen-
tences in the Canal Zone jails averaged 67.3 per day. All physically
able prisoners were employed on useful work.
One hundred and twenty-five convicts were committed to the Canal
Zone penitentiary, an increase of 84 as compared with the preceding
year. Sentences imposed on these convicts totaled 241 years. Sixty-
six convicts were discharged, leaving 145 in custody at the end of the
year. Computed at standard rates of pay for common labor the value
of the labor performed by convicts during the year amounted to
$74,410. Of this amount, 26 percent represented the value of work
performed in the operation, maintenance and improvement of the
penitentiary buildings and grounds; 60 percent on the penitentiary
farm; and the remaining 14 percent on outside work.
Di poi tvtion.i.-By order of the Governor, 33 persons were deported
from the Canal Zone during the fiscal year, of whom 24 were convicts
who had served sentences in the penitentiary and 9 were persons whose
continued residence in the Canal Zone was regarded as undesirable.

Traffic Accidents

A total of 773 traffic accidents were reported during the fiscal year
1949, as compared with 768 in the previous fiscal year. The most
common causes of accidents in the fiscal year 1949 were "reckless
driving" and "failure to exercise care and caution in meeting and
passing," these accounting for 33 percent of the total. Thirteen






REPORT OF THE GOVERNOR OF THE PANAMA CANAL 67

persons were killed and 264 injured in traffic accidents during the
fiscal year 1949.
A total of 2,635 tra ffic viola tons were disposed of by the traffic
violations blureiu, which was established in fiscal year 1948.

MAGISTRATES' COURTS

The following is a summary of business transacted at the magis-
trates' courts for the subdivisions of Cristobal and Balboa for the
fiscal year 1949, together with comparative figures for the fiscal year
1948:

Cristobal Balboa Total

1949 1948 1949 1948 1949 1948

Cases handled:
Criminal ----------.------------- 2,228 2,068 5,400 5,634 7,628 7,702
Civil------------------------------- 1 15 bw 29 30 30 45
Total------------------------------- 2.,229 2,083 5,429 5,664 7,658 7,747
Disposition of criminiaiil o-*is.
C..n ti n .----------- 2,076 1,885 5,098 5,272 7,174 7,157
Acquittal.-----------.---------------- 48 52 74 94 122 146
Dismissal- -------------------------- 46 58 140 122 186 180
Held for district court -. -- -- 58 73 88 146 146 219
Total----------------------------2,228 2,068 5,400 5,634 7,628 7,702
Convictions in which execution of sen-
tences was su poi'n ill' and dependents
placed on probation ------------ ---- 94 158 199 219 293 377
Rearrested for violating terms of proba-
tion .------------------.--------------- 7 11 15 10 22 21
Revenues ----------------------------- $22,629 $20,269 $46,687 $44,690 $69,316 $64,959


PARDONS AND REPRIEVES

The Pardon Board, consisting of five members appointedI by the
Governor, acts in an advisory capacity in the consideration of requests
submitted by prisoners for executive clemency. During the fiscal
year 1949 the Board considered 40 applications for executive clem-
ency, 34 of which were for commutation of penitentiary and jail sen-
tences and 6 for revocation of orders deporting persons following
service of sentences and imprisonment. Recommendations for or
against, clemency were submitted to the Governor in 39 cases and
clemency was extended in 4 of these cases.
Nine other cases were considered by the Board at its meeting on
June 29, 1948, and recommendations for or against clemency in con-
nection therewith were submitted to the Governor after the end of
the fiscal year 1948. The Governor extended clemency in three of
these cases.
Effective March 24, 1949, Mr. E. C. Lombard was relieved from
duty on the Board and Mr. F. H. Irwin, who had served as general






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


alternate, was appointed a member of the Board to succeed Mr.
Lombard. On the same date Mr. Paul M. Ruinnestrand was ap-
pointed as alternate for Mr. Paul A. Bentz, Dr. K. 0. Courtiney was
appointed as alternate for Col. S. D. Avery, and Mr. W. R. Rounsa-
ville was appointed as general alternate. Effective June 16, 1949,
Col. S. D. Avery was relieved from duty with The Panama Canal,
and at the end of the fiscal year the vacancy thus created in the mem-
bership of the Board had not been filled.

FIRE PROTECTION

During the year 334 fires were reported involving property value
of $27,258,213, and caused damage estimated at $99,698. In addition
to the fires reported, the fire section responded to 42 false alarms, 18
elnergenZIry calls, 17 alarms at which the fire had been extinguished
before the arrival of the fire department, and 2 requests from the
Army to cover-in at an Army fire station during the absence of the
Army fire equipment.
The following table classifies the owners who suffered property
losses during the year, as compared with the previous year:

Fiscal year 1949 Fiscal year 1948

Number Property Number Property
of fires loss of fires loss

The Panama Canal---------------------------------------- 208 $4,426 247 $26,010
Panama Railroad Company ------------------------------ 45 921 21 569
U. S. Army------------------------------------------------ 8 2,168 6 575
U. S. Navy -- ---------- --- .---- ---- 1 -.------ ------- ----------
Private (including ships)-..--------------------------------- 72 92,183 45 211,132
Total ------------------------------ -------- -- 334 99,698 319 238,286
Total property involved---------------------------- $27,258,213 $13,094,242


PUBLIC SCHOOL SYSTEM

The public-school system for white children includes 8 kindergartens;
9 elementary schools, gridles 1 through 6; 2 junior high schools, grades
7 and 8; 2 senior high schools, grades 9 through 12; an apprenltice
school; and a junior college. Public schools for colored children
include 6 kindergartens; 7 elementary schools, grades 1 through 6;
five 3-year junior high schools, grades 7 through 9; 2 occupational
high schools, grades 10 through 12; and a 2-year normal training school.
The schools for white children opera te on a 9-month bai., while
the schools for colored children are open 10 months each year. Febru-
ary enrollments are used for purposes of comparison, since they
usually rvpr-eiiet the enrollment peaks. In February 1949, 4,509
pupils were enrolled in the white elementary and secondary schools






REPORT OF THE GOVEItNOR OF THE PANAMA CANAL


and 3,277 in the colored ~c1hool, coniirpi-ed with 4,219 and 2,973,
respectively, in Febrnairy 1948. The kindergarten enrollments were
691 white and 274 colored in Februiary 1949, as compared with 549
and 206, respectively, in Febriiiary 1948.
For the past 3 years the avvnrigi daily attendance has been ias
follows:

Fiscal year
1949 1948 1947

White schools.. -- ------------------------------------------------- 4.244 3,978 3.625
Colored schools--------------------------------------------------------- 3,104 2,846 2,791
NOTE.-Junior college and kindergartens not included.

February enrollments of d(lay-time students in the Canal Zone Junior
College numbered 195 as compared with 173 in February 1948. The
extension division of this school offered adult courses during three
terms, viz., October 1, 1948, through January 31, 1949; February 1,
1949, through May 31, 1949; and June 13, 1949, through August 4,
1949. This division served a total of 1,807 individuals, not including
duplications, or about 800 more than enrolled in any previous year.
During the school year the white schools, not including the appren-
tice school, WTere in session 178 days and the colored schools 200 days.
At the close of school in June 1949, 184 white te.ichvirs, including 10
Junior College instructors and 8 supervi 'ing tenwioers in the occupa-
tional high sviinols, and 121 colored teachers, including 2 teacher-
clerks, wVere in regular employment in these schools.
The achievement tests which have beeni administered in Marchi or
April to pupils of grades 1 through 8 in white and colored schools for
many years and which have been used as a means of cinpari-;on
between Canal Zone pupils and those in the United States, were post-
poined until September in the colored schools and October in the white
schools. It is believed that this cliinge will (1) leIn the influence of
test materials on the courses of study, (2) remove unfavorable ten-
sions, and (3) have the further advntTiig' that any serious schti li 1ic
deficiency's disclose by these tests will be inlade known to the tchelier
at the beginniing rather than near the end of the school year.
In the white high schools the median pupil scored at the 64th
perceintile on United States norms provided for the tests. Thie coin-
parnative scoring last fiscal ye;ir -wis at the 67th percentile.
TlIe gI ineiI curriculluim-revision proI riii beguii ini 1948 was con-
tiiined. All teachers in both white and colore( -ciools were 'iariized
into Study groups for the purpose of acquaint iniL themselves with
modern educational thought in the fields of edii ilional psycholo gy,
859907-50----6







70 REPORT OF THE GOVERNOR OF THE PANAMA CANAL

sociology, philosophy, and of school practice. Each group made a
study of three outstanding books in the above fields and recorded its
recommendations for curriculum revision. These recommendations
will be considered as aims and procedures come under study in suc-
ceeding steps in the program.
Work was begun but not completed during fiscal year 1949 on the
construction of study-hall buildings at the Silver City and La Boca
occupational high schools. Six additional classrooms, made necessary
by expanding enrollments, were under construction in the basement
area of the Silver City occupational high school at the close of this
fiscal year.
Physical education classes for both white and colored pupils are
conducted by the personnel of the physical education and recreation
section. In addition, personnel from this section provide leadership
and guidance for the Boy and Girl Scout organizations on the Isthmus
and supervise such sports and recreational activities as baseball,
basketball, handball, football, tennis, boxing, fencing, archery,
athletic meets, swimming, and water safety.

POSTAL SYSTEM

Twenty-three post offices were operated by the Bureau of Posts
during the fiscal year 1949. Of these 11 were in civilian localities, 6
in Army localities, 3 in Air Force bases, and 3 in Naval reservations.
Operations for the past 3 years are sumiinmnarized in the following table:

Fiscal year

1949 1948 1947

Receipts:
Sale of air mail postage-----------.--------------------------- $381,394 $353,742 $441,696
Sale of other postage stamps, postal cards, stamp books, etc ---- 218,743 182,236 206, 526
Moneyorderfees----------------------------------------- 52,134 40,908 42,770
Box rents collected--------------------------------- 49,650 46,115 35,287
Handling mail-other agencies ------------------------------ 12,300 12,300 12,300
Otherreceipts..--- ----------------------------- ---------- 1,673 1,512 1,317
Totalreceipts--------------------------------------------- 715,894 636,813 739,896
Expenses:
Transportation charges for air mail-------------- ------------ 168,705 161,989 210,026
All other charges and expenses---------- -------------------- 664,951 608,994 630,334
Total expenses -- ------------------------------------- 833,656 770,983 840,360
Net surplus (deficit)---------------------------------------- (117,762) (134,170) (100,464)
Transferred from postal savings interest account ------------------------- 200,000 ----------
Reported surplus (deficit)-------------------------- ------------- 1(117,762) 65,830 1(100,464)

I These yearly operating deficits were absorbed by reserve funds.






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


Statistics relative to the operation of the Canal Zone poslnl system
for the past three fiscal years are covered(l in the following table:

Fiscal year

1949 1948 1947

Registered and insured articles handled:
Sent---- --------------- --------.--------------- ---141,392 148, 937 194,261
Received-.. --- --- .----. ----------------------.. --- 175,231 175,820 199,318
Dispatches of steamship mail handled:
Cristobal:
Number sent- -----------..--.---..---.------------------- 3,124 1,943 2,233
Number received_ .------.-------------------------------- 3,059 973 1,668
Balboa:
Number sent ----------------------- ------------------ ------------ 173 957
Number received-..----.----------.------------------------ 135 240 825
Dispatches of air mail handled-Balboa:
Sent---------------------------- ----------------- 19,864 21,702 19,924
Received ---------- .------ --- .----------------------------- 21,419 21,646 20,478

NOTE.-Effective October 1, 1947, the dispatching of surface mail for Central and South America from
Balboa was discontinued and that function transferred to the Cr ist obal e xchan ge police.

IMMIGRATION VISAS

During the fiscal year, 247 visas were issued by the executive secre-
tary to alien residents of the Canal Zone traveling to the United States.
Of these, 8 were quota immigration visas, 129 were nonquota immigra-
tion visas, 68 were nonimmigrant visas, and 42 were transit certificates.
Fees collected for visas amounted to $1,408.

RELATIONS WITH PANAMA

Because of the close relations existing between the Governments of
the Canal Zone and the Republic of Panama and the proximniity of the
two areas, numerous matters of mutual int erest, arise continually.
During the year, correspondence and discussions pertaining to the
transaction of matters of this kind were conducted between repre-
sentatives of The Panama Canal and the Panamanian Governmient.
The majority of these matters related generally to such subjects as
customs, immigration, repatriation of aliens, municipal improvements,
public health, postal service, letters rogatory and extradition.






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


CUSTOMS

The following is a statistical summary of the more important
items handled by the Customs during the fiscal yeitr 1949, together
with corresponding(ii figuire- for the two proclingii years:

Fi.-.l year
Item.
1949 1948 1947

Vessels entered..------------------------------------------------- 12,558 12,204 10. 574
Vessels cleared------------------------------------------------------ 12, 574 12. 205 10.557
Aircraft entered ------------------------------------- ------- 3.824 4,344 5,123
Aircraft cleared--------------------- ------------------------------ 3,825 4,346 5,120
Customs releases on shipments consigned to Panama--- ---------- 7,710 8,491 6,420
Shipments of household goods of employees, inspected and sealed for
shipment to United States-------- ------ ---------------------- 2 4 68
Invoices certified for shipment to United States--------------------- 1,380 1,073 1.061
Chinese passengers arriving --------------------------------------- 137 1 84 14
Chinese admitted to Panama--------------------------------------- 20 42 7
Vessels with Chinese crews checked--------------------------------- 1,051 894 682

1 Corrected figure.

SHIPPING COMMISSIONER

The shipping commissioner and his deputies have the same authority
with respect to United States seamen as shipping commissioners in
United Staits ports and United States consuls in foreign ports.
Eight sick or di-stitute seamen were maintained and returned to the
Unitedl States at the expense of the appropriation for the relief of
d(i-titute Aiierivlii seamen, and 152 were signed on vessels as work-
aways, and returned to the Unit1d States without expiins( to the
Government.
The total wages earned by seamen who were discharged at Canal
Zone ports amounted to $203,761, and the total approved for deduc-
tions on account of advances, allotments, fines, slop-chest account,
etc., was $81,291. The balance of $122,470 was either paid to seamen
under the supervision of the deputy shipping commissioners or
received on deposit for the seamen by the deputy shipping commis-
sioners. The wvage-, money, and effects of two American seiinwn,
one of whom died in the Canal Zone and one at sea, were lihandled by
the shipping commissioner during the year. Their personal effects
and cash, amounting to $256, were remitted to the proper courts for
disposition. The unclaimed wages of one seaman were deposited with
the treasurer, The Panama Canal, as provided by law.






REPORT OF THE GOVI-.KINOR OF THE PANAMA CANAL


ADMIINISTRATION OF ESTATES

The public administrator takes charge of all estates requiring
administration within the Canal Zone that are not handled by others
legally entitled to administer them. In the case of estates with total
assets exceeding $1,000 in value, the public administrator chaL.rI's
the regular commissions fixed by law, which are paid into tlie Treasury
of the United States. Conmmnissions amounting to $5,360 were
collected during the fiscal year. Thle estates of 188 deceai-rd or
insane persons, with cashli assets of $152,811, were settled during thef
fiscal year.
FOREIGN CORPORATIONS

Foreign corporations doing business in the Canal Zone are required
to have lirii- cs. and 144 such corporations, the majority of which
were steamship liineii-;, steamship giiie, and Government con-
traictors, were licensed during the fiscal year 1949. Fees amounting
to $1,440 were collected.

INSURANCE

The license fee for insurance companies doing business in the Canal
Zone is $10 per year plus a tax of 1% percent on premiums collected.
At the end of the fiscal year 27 insurance companies -werc li'in1-rd to
write insurance in the Canal Zonie.
Life-insurance companis- reported that si- of Dcrciiieber 31, 1947,
2,079 policies were in force. During the calendar year 1948, 1,192
policies were issued and 299 canceled, leaviiing 2,972 with an aggregate
face value of $9,684,542 in force as of December 31, 1948. Premium
collections on life-insurance policies during the ealicidiair year 1948
totaled $284,172. Claims settled duriniig the year totaledi $88,170.
During the calendar year 1948 the premiums received by miscel-
Ianeous insurance companies, including accident, automobile liability,
fire, surety, fidelity, etc., but excluding life IlIurance, amounted to
$592,914. Losses paid during the year totaled $133,933.
The tax of 1M prcn Iit on premiums collected by all classes of
insurance companies amounted to $13,156 for the *;iliznd-ir y"ear 1948,
as compared with $8,949 during the previous year.






74 REPORT OF THE GOVERNOR OF THE PANAMA CANAL

LICENSES

The number of motor-vehicle licenses and transfers issued during
each of the past three fiscal years and the aggregate fees collected
therefore are summarized below. These include licenses for official
vehicles for which no charge is made:

Fiscal year
1949 1948 1947
Vehicle licenses issued------- .------------------------------------- 27,958 24,674 22,007
Motor-vehicletransfers--------------------------------------------- 7,744 7,311 6,940
Total-------------------------------------------------- 35,702 31,985 28,947
Fees collected- ...-------------------.------------------------- $134,562 $128,741 $118,166

In addition to the vehicle licenses covered above, several other
types of licenses were issued, such as chauffeurs' licenses, peddlers'
licenses, etc.
COMMERCIAL AVIATION

During the fiscal year 1949, practically all of the civil aviation
within the Canal Zone was confined to aircraft of the United States
scheduled air carriers. During the first half of the year the numbers
of aircraft and passengers utilizing the Canal Zone air terminal
remained fairly steady with a slight increase occurring during the
second quarter. In the latter half of the year there was a slight
decrease in the number of aircraft, but an increase in the number of
passengers, caused by the use of larger aircraft on scheduled operations.
This resulted in some consolidation in the frequency of schedules but
also increased the passenger load factor.
Throughout the year the air lines continued their policy of scheduling
a high percentage of through flights between South America and the
United States, thereby weakening to some extent the traditional
position of the Canal Zone as the cross roads for Latin American air
travel. Although these factors caused a change in the physical
handling of aircraft, passengers, mail and cargo, the actual volume
remained as great as during the previous fiscal year.
During the latter part of the year a bilateral civil aviation agreement
was consummated between the United States and the Republic of
Panama, which provides for the transfer of all civil aviation within
the Canal Zone to the Republic of Panama at some future date.







REPORT OF THE GOVERNOR OF THE PANAMA CANAL


Tabulated below- is a statistical summary
activities in the Canal Zoune for the fiscal year
the two previous years:


of commercial aviation
1949, as compared with


NLINlIlER OF PASSENGERS CARRIED BY REGULARLY SCIIEDI. I.1- Ii AIRLINES

Fiscal year

1949 1948 1947

Incoming.---------. ----------------..... ..... -.........- -.. .- 65,603 61,583 68,743
Outgoing...---------------.............-.....---- ..--------------- .. '. .' 71,912
Total.------------------------------------------.------ 129,995 120,909 140,655

AIR EXPRESS AND MAIL 1
[Thousands of pounds

Entered.. -. ------------------------------------------- -------- 3.318 2,524 3,114
Cleared--------------------------------------------- 2, 91) 2,356 2,846
Total------------------------------------------------. 6,308 4,880 5,960

1 Includes transshipped cargo which entered and cleared; excludes weight of transfer mail which does not
reach or pass through Canal Zone post offices.

NUMBER OF AIRCRAFT ENTEREDl OR CLEARED


Entered---------------- -- --------------....--
Cleared------------------------ ------------------------..-----


3,824 4,344
3,825 4,346


5,123
5,120











Section V


FINANCIAL AND STATISTICAL
STATEMENTS

Financial statements of in ijor int rest relative to The Panama Canal,
abstracted from the annual report of the Department of Finance, are
presented in this section. Also included are tables concerned with
traffic through the Canal, and other features of Canal operation.

ACCOUNTING SYSTEM
Accounts are maintained in accordance with accepted principles of
appropriation and fund accounting for governmental bodies. How-
ever, the activities being of a quasi-business nature, the accounting
system has been adapted to conform as nearly as practicable to the
principles and practices approved by the Interstate Commerce Com-
mission and State boards regulating public utilities as well as to
procedure followed by comparable industries in the corporate field.
For purposes of evaluating the investment, the close of the construc-
tion and development period of The Panama Canial was fixed as July
12, 1920, the date on which the Cainal was formally declared open to
commercial traffic by Presidential proclamation.
Considered as properly chargeable to construction costs, and so
reflect red in the capital investment account, are interest amounting to
$128,991,063 on United States Tre.isury funds advanced up to July 12,
1920, and the treaty payments to the Republic of Panamaa consisting
of a $10,000,000 payment in 1904 and annual payments of $250,000
totaling $2,000,000 for the period 1913-20. Subsequent annual
paymnients a re reflected in the opera ting accounts. A provision in the
Treaty of 1936 with the Republic of Panama increi.id the annual
payment to $430,000 retroactive to 1934.
Subsequent to the fiscal year 1920, a potential capital interest
return of 3 peren-et, has been considered as an unrecorded charge to
expenses i in determining computed surplus or deficit, while net revenues
before interest charges have been iusedtl to calculate the actual rate of
return on net capital invr-.l mnwiit.
Based on the foregoing, the gross capital investment, at the begin-
ning of the fiscal year 1949 was $724,872,211.22, which, after deducting






REPORT OF THE GOVH1NOR OF THE PANAMA CANAL


depnweiition of $55,852,266 and special item projects and additional1
facilities (third locks) amountiiing to $146,063,787.50, leaves a net
capital investment of $522,956,157.72. For the fiscal year 1949 there
was a net deficit of $472,5S4.33 from open ions of the Canal and a net
reviienuie of $1,006,959.04 from business operations, or a net reviinie on
combined operations of $534,374.71.

OPERATIONS OF THE PAN \M \ RAILROAD COMPANY

The results from the operations of the Paiiiinii Railroad Company's
various business units on the Isthmus are shown in detail in the
accounts of the Panama Itailroad Company. The detailed state-
mien t of reveni]ij-, expenses, and statistics for all railroad industries,
ch;i nIe in the capital account, and the results from operations of the
steaniihiiip line appear in the annual report of the Pantaimai Railuroad
Compiiny. A review of these activities is presoiited in section II of
this report under the heading "Business operations under the Pana ma
Railroad Company."

PANAMA CANAL OPERATIONS

The major financial results of Pa n mua Canal operate iions are pre-
sented hereinaifter in tables Nos. 1 to 28, with supplementary com-
ments and explain nations. Data on Canal traffic and other features of
Canal operation are found in tables Nos. 29 to 50.
The complete report for the Department of Finance, includingi
tables and reports not printed herein because they are concerned
prin-ipilly with details of operations which lack general intrre-t, is
on file at the office of the Governor and at the Washiing-ton office of
The Piiinainia Caii:ial.














INDEX TO TABLES

FINANCIAL
Table
No.
1. Comparative balance sheet.
2. Appropriated funds, receipts, and disbursements.
3. Accounts receivable.
4. Materials and supplies.
5. Work in progress.
6. Deferred debits.
7. Custodial funds, receipts and disbursements.
8. Depreciable assets, buildings and structures (general).
9. Depreciable assets, floating plant.
10. Depreciable assets, business operations structures.
11. Depreciable assets, business operations equipment.
12. Accrued depreciation.
13. Nondepreciable assets.
14. Accounts payable.
15. Business operations: Expenses, revenues, and profit or loss.
16. Unliquidated obligations.
17. Deferred credits.
18. Obligated balances, for repairs: Floating plant and business equipment.
19. Obligated balances, for replacement: Floating and business operations plant.
20. Obligated balances, for accrued leave.
21. Working capital.
22. Capital investment.
23. Consolidated statement of income, expenses, and net revenues.
24. Revenues, expenses, and computed surplus.
25. Capital refundments.
26. Canal revenues.
27. Canal earnings and expenses.
28. Balances in appropriations and funds.






REPORT OF THE GOVERNOR OF THE PANAMA CANAL


STATISTICAL

Canal traffic
Table
No.
29. Ocean-going tolls-paying traffic for fiscal years 1915 to 1949.
30. Traffic by months, fiscal years 1949 and 1948.
31. Canal traffic by nationality of vessels.
32. Classification of canal traffic by type of vessels.
33. Laden and ballast traffic by nationality of vessels.
34. Frequency of transits of vessels through Canal.
35. Segregation of transits by register'ed gross tonnage of vessels.
36. Principal commodities shipped through Canal.
37. Origin and destination of cargo through Canal-Atlantic to Pacific.
38. Origin and destination of cargo through Canal-Pacific to Atlantic.
39. Cargo shipments by trade route-Atlantic to Pacific.
40. Cargo shipments by trade route-Pacific to Atlantic.
41. Important commodity shipments over principal trade routes-Atlantic to
Pacific.
42. Important commodity shipments over principal trade routes-Pacific to
Atlantic.
43. Vessels transiting Canal free of tolls.

All other

44. Water supply and expenditures.
45. Dredging operations.
46. Principal equipment operated by dredging division.
47. Activities of oil-handling plants.
48. Number of employees paid at U. S. rates.
49. Number of employees paid at local rates.
50. Quarantine and immigration activities.










80 REPORT OF THE GOVERNOR OF THE PANAMA CANAL


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IIEPOrT OF THE GOVEAKNOR OF THE PANAMA CANAL


The foregoing N1.lance sheet conforms clow-Ely to the generally
accepted presentation of corpo rate balance shooeets. This bal an I'e
sheet presents the equity of the United States Government, con i 1ingi
of the capital invest ini1nt, inhcldingL working capital, and the obli-
gated balances of appropri-ited funds. The equivalent of the item
captioned "Balance, Revenues and Refiunhlmenits" onil the b1d;i nce sheet
in prior years is reflected in the accounts mentioned above aI; well as
in the current liabilities aund custodial funds contra account.
The statutrs require that receipts for tolls, civil revenues, and net
profits on bu)iinrs; operations shall be covered into the United States
Trasnry and relinquished from control of The Panama Ca n:l Funuds
for current operating expienset-, and capital construction are appropri-
ated by the Congress, and for comparative purposes are considered
as provided from the tolls and other receipts covered into the Treasury.
Practically all receipts other than those cited above are repayable to
Canal appropriations and may be reexpended, but as the Canal is
deprived of tolls revenue, its prin able receipts are insufficient to provide for operation and ainaiinnance,
thus requiring the Canal to submit its expenditure progra-iin annila lly
to the Coniigre..
Tlnhe various fund requirements leave The Panariun Canal hbal nce
sheet without an (equivalent for the usual corporate"Surplus Account,"
since any surplus is included in the tolls covered into the Treasu;nry by
law. However, the equivalent for "Surplus Account" is shown on
table No. 24, which compares "Net Revenues" of $273.906,731.30,
representing the eunirumlated operating earnings of The Panama
Canal before capital interest charges, with the comnputed interest on
the net capital investment, by fiscal years, beginning with 1921, but
no interest charge against the Canal is actually made by the United
States Treasury.











REPORT OF THE GOVERNOR OF THE PANAMA CANAL


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REPORT OF THE GOVERNOR OF THE PANAMA CANAL


TABLE No. 3.-Accounts receivable

REGISTERED DURING FISCAL YEAR-


Repaid to 1.ir'.jiri:i in,
Panam -- ;,tilri.l C.i ri.:iy.-------------- ---- - .- ---...
Other l.i ir iii. int- of the United States Government.. ------------.
Individuals and companies ----------------------------------

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

Miscellaneous receipts:
Tolls ------------------------------------ -----.. -- -
Other---------------------------------- ---- ----- -- - -

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

Total accounts receivable registered ----------------..

Number of bills registered ---------------- ------


$3,396,380.94
188,028.80
15,350, 873.70

18,935,283.44


20,618,718.00
5,291.06

20,624,009.06

39,559,292.50

46,341


ACCOUNTS RECEIVABLE END OF FISCAL YEAR-


Audited bills --------- $1, 920, 213. 79 $2,234,006.52
Hospital certificates-- ----------------------------- -.........-------- -_ 33,997.20 71.182.41
Injury compensation ---------------------------------------- 10, 195.48
Drums, carboys, reels, and cylinders returned for credit ----------------- 696.00 4,689.81
Bills for rent and related charges-_-------------------------------- ----- 654.57 225.73
Pay roll deductions... ----------------------------------------- 93,604.84 --------------

Total ----------------------- --------.------ -- 2,049,166.40 2,320,299.95



TABLE No. 4.-Materials and supplies


Fiscal year 1949 Fiscal year 1948


Stock on hand, first of year:
Balboa store-------------------------------
Medical store ----------------------------
Administration Building store-------------
Gamboa store -----------------------------
Cristobal store .-..----- ------------ --
Locks store.... --------------------------------
Oil-handling plants------------------------
Panama Canal press ------ -----------
Sand and gravel pile ----------------------
Division stores ------------ --------------
Total stock value ------------------------
Reserve for inventory adjustments --------
Book value of stock on hand -------------
Receipts of material:
Purchases for stock------------------------
Purchases for divisions -------------------
Local production -------------- -----
Book value of receipts ..------- --------


Total charges to stock --- --------- .---.----
Issues and sales of material:
Issues to Canal divisions ----------------------------------------
Issues to business divisions ----------------------------------------
Less: Returns to stock ---------------------------------------------
Returns for resale to outsiders ---------------------------.-
Net issues to divisions. --------------------------------------------
Sales ..-------------.. --------.- ------------- --- ----------- .-
Total issues and sales---------------------------------------------

Price adjustments _-....---- ..--- .----------------- --- ...-
Inventory adjustments.----------------.------- --------------------.-
Variation in division stores .------..----------------------------------
Variation in reserve for inventory adjustments ------------------------
Total credits to stock -..------------------------.....


Note.--Figures in parenthesis denote deduction.


$5,064,761.41
308.298.03
52, 740.64
1. ,1".. 604.38
1,244,879.53
627,059.00
432, 898. 64
374,757.45
135,324.80
1, 747, 690. 86
11, 754, 014.74
912,370.55
10,841, 644.19

9, 079,040.09
3,088, 876.13
720.053.36


$6,051,966.45
320,504.38
60, 776. 65
1,807,676.37
1,451,136.36
.564,456.43
656, 158.97
307,591.68
33,546.87
1,758,788.34
13,012,602.50
1, 102,991.16
11,909, 611.34

6, 957, 766.13
2,957, 447.04
752,150.77


12. 887,969.58 10, 667, 363. 94

23, 729,613.77 22,576,975.28

2, 714, 569.73 3, 685,035. 88
6, 333, 996. 05 4, 958,166.07
(113,131.57) (157, 090. 'I
(221, 898. -.'.i (380,399.72)
8. 71 535.55 S, 105, 711.95
2,680,604.78 3, 703. 526. 53


11,394,140.33

(2,505.17)
(126, 376.77)
(46,047.32)
(311, 746. 65)
10,907,464.42


11,809,238.48

105, 615.74
- - - - -
11,097.48
(190, 620.61)
11,735,331.09


$3, 699,052.66
313,355.69
15, 596,825.22

19,609,233.57

20,022,377.70


20,022,377.70

39,631, 611.27

53,267


- - - -
- - - -







REPORT OF THE GOVERNOR OF THE PANAMA CANAL


TABLE No. 4.- Materials and supplies-


Stock on hand, end of year:
Balboa store.....------ ----
Medical store. ---------------
Administration building store---.
Gain boa store-------------------
Cristobal store.. ---.----.-.....
Locks store ----------------------.
O)l-halndlli plants. -----.--......
I'.iain i I'aii.il press....------..- ---
Sand and gravel pile.. -.---. ---....
Division stores.-...-..----------....

Total stock value-----------------
Reserve for inventory adjustments-

Book value of stock on hand -----


-Contiinued

Fiscal year ll' |


$5, 803. 415. 63
371, 466. 51
46, 576. 67
1, 82,041.44
1,367, 547.48
70, 034. 29
1, i'", 950. 77
I. 195.40
121, 81.88S
1, 793, 738.18

13, 422, 773.25
600, 623.90

12,822,149.35


i c-.i year 1948


$5, O4, 7f1.41
in 1. 298.03
52,740. 64
1,765,604.31
1,244,879.53
t27. 059.00
4 ...898.64
374,757.45
135,324.80
1, 747,690.86

11,754,014.74
912,370.55

10,841,644.19


In the foregoing table, the values of stock on hi lnd at the beginning

and end of the year and receipts and issues of material are shown at

invoiced cost plus an amount for procuremen(t to cover United States

inland freight, ocean freight, and purchase and inspection expense.

TABLE No. 5.-Work in pr. ri


.El Ie r c-il division --------------------------.---------.-. ..-.-.... .-
Municipal division --------.-..------------------------------------
Slhop.- and dry docks -----------------------..----....-------
N t i 'r transportation division --- ------- ------_- ----
Building division --..---------------------------------------- --
Panama Canal press..-------------------- ---.-.... ---.. -

Total work in progress-------------------------------------------.


June 30, 1949 June jll. 1948

$531.63 $1,500. 56
- --- ---- ---- -- 88.80
267,887.24 311,606. 19
13,784.74 5,075.75
355.37 (244. 41
16,837.78 11,881.35

299,396.76 329,907.81


NOTE.-Figures in parentheses denote credit balance

This account covers the amounts expended on uncompleted jobs,

and will ultimately be cleared to op-r I(iiig expenses of the division

indicatied, with correspomling credits to their revenues after applica-

tionll of authorized ch;ages to cover division overlheiad expense.


TABLE No. 6.-D, i I.1 debits




Office of eiiiie '.-r of maintenance ----- ---- -- -.. ......... ... .--..-----.
Pacific locks -----------. ------.----. -.-.- ----- ---. -..----.-... ------
Porte iptaiii. B.lb t ... .
Aids I i et in . .i
D iT alrin d in i-ion . ..----. .--..-- -- ----------------------- -. --. I
T ran-pol I.Lliin *if r*niipliivrr' on 11] tl ii r' li ti ...-.......-. -.... .. --
O< llH 1, in II IllIr .-1 I 0i .. ------------------- --. ---
General accounts, suspense ..----..--- -----------.-----.---.--.-
Gorgans lopil . .I
('nlin H u'l|iH il .
Corozal Hospital .... ---------------------- ---------- -- --
Palo Seco Leprosarium .. .- ..-- ------------- ---.-... ... ..-...-
Quarantine and immigration ---.-----..- ..... --...... .....-- .....-
Sanitation-...--- ---------- --------- ------..-.--
Schools -- ------- ---------- ----- ------------------ ..----
Special engineering division..---- ---------...
Electric powersystem ....-- ......-.- .. -....- -...-..-. .-- ...
Water system.........--------.-----..------ --.-...-.........-- ------
M unicipAl work ---------. -----..-- ..... -.. -----------. .
.lech in II division. ------- ----- ----------------- -. -. .
i. l- i.rili irii I pl.il -------- ---- -------- ---- -. .. ... ... ......
Ut-rner.kl lonrrhoti-i-r ---- -- -- ----------------- ---- --
General storehouses, sundries suspense e........ -..--........
59-907-5O----7


June 30. 1949

$479.97
787.."'
658.73
3,8-46..55
2, 059.07
3,492.42.
15,512.*.*i
*1, 730.01

104.80
154.00
1.30. 00
Jil "1

13( No
309. so
6i35.14
820.'4i1
(. 997.3 1
--- -. -.--

17,1.732 '.1


June 30, 1948


$6,"407.'50

5,'540. 27
(1,325."7
17.33
3,491.42
26.03



541i.28

2, ()02 54
31, su.55
1.,294.10
"5.076. 8
612.833.58
(803.08)
.1I1. 48)
, l0.'0'i5 44








REPORT OF THE GOVERNOR OF THE PANAMA CANAL


TABLE No. 6.-Deferred debits-Continued

June 30, 1949 June 30, 1948

Motor transportation division ----------------------------- -------- -------------- ($4.96)
Building division------------------------------------------------ $16,871.25 23,005.44
U. S.-rate quarters------------------------------------------------------- ---------------- 2,962.53
Total---------------------------------------------------- 316,170.52 153,470.68

Figures in parentheses denote credit balance.


This account covers expenses incurred for account of divisions
indicated, but which are not chargeable to operating accounts of the
current fiscal year. These amounts are charged as soon as values
are consumed.

TABLE No. 7.-Custodial funds, receipts and disbursements, fiscal year ended
June 30, 1949

Disbursing
clerk, Treasurer, Total United States Total
Washing- Canal Zone I Treasury
ton, D. C.


Accountable balance, July 1, 1948:
Revenue due U. S. Treasury -
Security deposits--- ------
Clubhouse funds --------
Money order funds-----------
Total ----------------
Receipts:
Revenue due U. S. Treasury--
Security deposits-------------
Clubhouse funds--------------
Money order funds-----------
Total------. ---.--.--
Total -----------------
Transfer to U. S. Treasury:
Clubhouse funds-------
Money order funds--------
Total to be accounted for-
Covered into U. S. Treasury:
Revenue due U. S. Treasury -
Transfers and refunds: Security
deposits--- ----------------
Disbursements:
Clubhouse funds -- ---- -
Money order funds-----------
Total ---------- --
Accountable balance, June 30,
1949:
Revenue due U. S. Treasury.. -
Security deposits---------...
Clubhouse funds------------
Money order funds-- - ----- -
Total---...-.....- -......- -

Total accounted for------


$42,136.91
- - - -
- - - - -


$10,671.14
2,547,989.89
13, 621. 79
23,336.63


$10,671.14
2,590,126.80
13,621.79
23,336.63


$1, 881, 221.'75
10,267,780.59


$10,671.14
2,590,126.80
1,894,843.54
10,291,117.22


42,136.91 2,595,619.45 2,637,756.36 12,149,002.34 14,786,758.70

233.38 20,884,236.88 20,884,470.26 1,259.60 20,885,729.86
152,557.43 38,857,507.11 39,010,064.54 ------------- 39,010,064.54
------- 4,798,657.77 4,798,657.77 -------------- 4,798,657.77
-------- 7,464,680.60 7,464,680.60 -------------- 7,464,680.60
152,790.81 72,005,082.36 72,157,873.17 1,259.60 72,159,132.77
194,927.72 74,600,701.81 74,795,629.53 12,150,261.94 86,945,891.47
------------ (4,812,279.56) (4,812,279.56) 4,812,279.56 ---------
------------ (6,844,057.23) (6,844,057.23) 6,844,057.23 ----------
194, 927.72 62,944,365.02 63,139,292.74 23,806, 598. 73 86,945,891.47

233.38 20,877,014.37 20,877,247.75 1,259.60 20,878,507.35
177,703.29 39,440,068.12 39,617,771.41 ------------- 39,617,771.41
---------- -------------- ------------ 5,080,497.06 5,080,497.06
--------. 643,960.00 643,960.00 7,109,292.99 7,753,252.99
----------- 643,960.00 643,960.00 12,189,790.05 12,833,750.05


---------- 17,893.65 17,893.65 -------------- 17,893.65
16,991.05 1,965,428.88 1,982,419.93 -------------- 1,982,419.93
------------ ------------ -- ---------- 1,613,004.25 1,613,004.25
---------------- ---------- ------------- 10,002,544.83 210,002, 544.83


16, 991.05 11,983,322.53


194,927.72


62, 944,365.02


2, 000, 313. 58 111, 615, 549.08


63,139,292.74


23,806,598.73


313,615,862.66
86,945,891.47


Figures in parentheses denote deduction.
1 Former functions paymaster, Canal Zone, and collector, Canal Zone, were consolidated under treasurer,
Canal Zone, effective July 1948.
2 Includes $5,950,000 invested in United States Treasury Bonds; $3,000,000 in United States Treasury
Notes; and $400,000 in United States Savings Bonds; a total of $9,350,000.
9 Total per balance sheet, table No. 1, in the amount of $13,841,321.48, includes $225,458.82 of bills in
process of collection.




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