• TABLE OF CONTENTS
HIDE
 Front Cover
 Title Page
 Letter of transmittal
 Front Matter
 Table of Contents
 Introduction
 Section I: Traffic via the Panama...
 Section II: Business operation...
 Section III: Administration
 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/UF00097365/00035
 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: United States Government Printing Office
Place of Publication: Washington, D. C.
Publication Date: 1951
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: VID00035
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
        Page 6
    Section I: Traffic via the Panama Canal and canal operation
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
    Section II: Business operations
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
        Page 39
        Page 40
        Page 41
        Page 42
        Page 43
        Page 44
    Section III: Administration
        Page 45
        Page 46
        Page 47
        Page 48
        Page 49
        Page 50
        Page 51
        Page 52
        Page 53
        Page 54
        Page 55
        Page 56
        Page 57
        Page 58
        Page 59
        Page 60
    Section IV: Government
        Page 61
        Page 62
        Page 63
        Page 64
        Page 65
        Page 66
        Page 67
        Page 68
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        Page 70
        Page 71
        Page 72
        Page 73
        Page 74
        Page 75
        Page 76
    Section V: Financial and statistical statements
        Page 77
        Page 78
        Page 79
        Page 80
        Page 81
        Page 82
        Page 83
        Page 84
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    Back Cover
        Page 145
        Page 146
Full Text
ANNUAL REPORT OF THE
Governor of The Panama Canal
FOR THE FISCAL YEAR 1951
IfW/ I95C/5I




ANNUAL REPORT
OF THE
GOVERNOR
OF
THE PANAMA CANAL
FOR THE
FISCAL YEAR 1951
For sale by the Superintendent of Documents, U. S. Government Printing Oitiie Washington 25, D. C. Price 35 cents. (Paper cover)


Digitized by the Internet Archive in 2010 with funding from
University of Florida, George A. Smathers Libraries with support from Lyrasis and the Sloan Foundation
http://www.archive.org/details/annualreportofgo1951 cana


LETTER OF TRANSMITTAL
Balboa Heights, C. Z. December 28, 1951. 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, 1951.
This annual report is the final report submitted for the Panama Canal.
Effective July 1, 1951, the governmental functions previously performed by the Panama Canal were transferred to a new agency designated as the Canal Zone Government. All activities other than of a strictly governmental nature were transferred to the new Panama Canal Company, which also absorbed the Panama Railroad Company. Very respectfully,
F. K. Newcomer, Governor.
in




OFFICIALS OF THE PANAMA CANAL AND PANAMA
RAILROAD COMPANY
The following is a list of the major officials of the Panama Canal and the Panama Railroad Company as of June 30, 1951:
The Panama Canal
Brig. Gen. F. K. Newcomer, U. S. A. (retired), Governor.
Col. Herbert D. Vogel, U. S. A., Lieutenant Governor.
Capt. Robert M. Peacher, U. S. N., Marine Director.
E. C. Lombard, Executive Secretary.
Maj. Gen. George W. Rice, U. S. A., Health Director.
Col. G. K. Withers, U. S. A., ^Engineering and Construction Director.
Capt. John J. Scheibeler, U. S. N., Industrial Director.
L. B. Moore, Supply and Service Director.
Arnold Bruckner, Finance Director.
Col. Richardson Selee, U. S. A. (retired), Civil Affairs Director. H. L. Donovan, Community Services Director. E. N. Stokes, Railroad and Terminals Director. E. A. Doolan, Personnel Director. P. A. Bentz, General Counsel.
B. F. Burdick, Chief of Washington Office and General Purchasing Officer.
Panama Railroad Company
Brig. Gen. F. K. Newcomer, U. S. A. (retired), President. Col. Herbert D. Vogel, U. S. A., Second Vice President. E. N. Stokes, Railroad and Terminals Director.
(New York Office)
W. R. Pfizer, Vice President. J. C. Hughes, Secretary. W. L. Hall, Treasurer
v




REPORTS OF BUREAU DIRECTORS 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 bureau directors and divisions of the Canal organization; the latter, regarded as appendixes to the report of the Governor, are not printed. The annual report of the Panama Railroad is published separately. The reports of the bureau directors and divisions as listed below are on file at the Washington Office of the Panama Canal, and at the office of the Governor at Balboa Heights, C. Z.:
Staff:
Law Division. Management Division. Safety Branch. Pardon Board. Public Defender. Administration:
Personnel Bureau. Finance Bureau. Administrative Branch:
Surveying Officer. Magistrates' Courts:
Magistrate, Balboa. Magistrate, Cristobal. Operations:
Civil Affairs Bureau: Schools Division. Police Division.
Postal, Customs, and Immigration Division.
Fire Division. Health Bureau. Marine Bureau:
Locks Division.
Dredging Division.
Navigation Division.
Aids to Navigation Section. Engineering and Construction Bureau.
Engineering Division.
Electrical Division.
Municipal Division.
Building Division.
Meteorological and Hydrographic Branch. Supply and Service Bureau. Industrial Bureau. Community Services Bureau.
Clubhouse Division.
Housing Division.
Grounds Maintenance Division. Washington Office.
VII




TABLE OF CONTENTS
Page
Introduction______________________________________________________ 1
The Panama Canal____________________________________________ 1
Canal Zone___________________________________________________ 1
Organization__________________________________________________ 1
Operation and maintenance of the Canal_________________________ 2
Operation of auxiliary enterprisesbusiness operations------------- 3
Governmentadministration----------------------------------- 3
Reorganization________________________________________________ 3
Other organizations in Canal Zone_______________________________ 4
Services rendered to shipping by the Panama Canal________________ 4
Net revenues__________________________________________________ 5
Replacements_________________________________________________ 5
Section ITraffic via the Panama Canal and Canal Operation
Statistics on Canal Traffic------------------------------------------ 7
Ocean-going tolls-paying traffic___________________.--------------- 7
Other traffic-------------------------------------------------- 7
Traffic trends_________________________________________________ 8
United States intercoastal trade_____________________________ 8
Trade between east coast United States and west coast South
America________________________________________________ 9
Trade between east coast United States and Asia_ _ 9
Trade between Europe and west coast United States/Canada____ 10
Trade between Europe and Australasia_______________________ 10
Trade between Europe and west coast South America__________ 1 1
Trade between east coast United States and west coast Central
America/Mexico_________________________________________ 11
Trade between east coast United States/Canada and Australasia, 12
Cargo statistics________________________________________________ 12
Tolls receipts_________________________________________________ 12
Nationality of vessels transiting Canal___________________________ 13
Average tonnage, tolls, and tons of cargo per cargo-carrying vessel 13
Steam, motor, and other vessels_________________________________ 14
Frequency of transits of vessels through the Panama Canal--------- 14
Gross tonnage of vessels________________________________________ 14
Principal commodities__________________________________________ 14
Ocean passenger traffic_________________________________________ 15
Transient passengers__________________ _________________ 16
Small tolls-paying vessels transiting Canal________________________ 16
Vessels transiting Canal without payment of tolls__________________ 17
Data in statistical section (sec. V)_______________________________ 17
Canal operation and maintenance____________________________________ 18
Hours of operation___________________ ______________________ 18
Lockages and lock maintenance_________________________________ 18
Operating schedule of locks_________________________________ 18
Lockages______________________.....______________________ 19
Delays to shipping_________________________________________ 20
Maintenance and construction______________________________ 20
Atlantic locks overhaul_____________________________________ 21
ix


X
contents
Page
Canal operation and maintenanceContinued
Power for canal operation-------------L------------------------ 21
Water supply and general weather conditions--------------------- 22
Water supply_____________________________________________ 22
Air temperatures__________________________________________ 23
Winds and humidity_______________________________________ 24
Tides_____________________________________________---.IIV1 24
Seismology__________.----------------------------------------- 24
Marine activities______________________________________________ 25
Harbor activities__________________________________________ 25
Aids to navigation_________________________________________ 25
Accidents to shipping______________________________________ 26
Inspections_______________________________________________ 26
Salvage and towing________________________________________ 26
Operation of tugs__________________________________________ 27
Maintenance of channelother dredging activities_________________ 27
Ordinary channel maintenanceCanal prism dredging---------- 27
Auxiliary dredgingother projects___________________________ 28
Slides________________________________________-__________- 29
Subsidiary Dredging Division activities_______________________ 29
Ferry service__________________________________________________ 30
Section IIBusiness Operations
Panama Canal business operations___________________________________ 31
Mechanical and marine repair work______________________________ 31
Gross revenues___________________ _________________________ 31
Marine repair work________________________________________ 32
Dry docks and marine railways. ___________________________ 34
Shop work_______________________________________.--------- 34
Plant improvement____________________l------------------- 34
Electrical work________________________________________________ 34
Purchases in the United States__________________________________ 35
Storehouses and ship chandlery___________________________------- 36
Obsolete and unserviceable property and equipment--------------- 36
Bulk petroleum products________________________________________ 36
Building construction and maintenance___________________________ 36
Quarters______________________________________________________ 37
Motor transportation__________________________________________ 38
Panama Railroad press_________________________________________ 39
Revenues derived from the rental of lands in the Canal Zone----- 39
Business operations under the Panama Railroad Company-------------- 40
Trans-Isthmian rai lroad________________________________________ 40
Harbor terminals______________________________________________ 41
Coal and oil-handling plants____________________________________ 41
Telephone system_____________________________________________ 42
Commissary division___________________________________________ 42
Sales_____________________________________________________ 42
Purchases_________________________----------------------- 43
Hotels________________________________________________ 43
Panama Line_________________________________________________ 44


contents XI
Section IIIAdministration page
Organization_____________________________________ ------ 45
Office of the Governor-President.....---------------------------- 45
Administrative units------------------------------------------- 46
Operations units----------------------------------------------- 46
Offices in the United States_____________________________________ 47
Proposed reorganization of the Panama Canal and Panama Railroad
Company_______________________________________________________ 48
Changes in administrative personnel--------------------------------- 49
Force employed and rates of pay------------------------------------- 49
Employees paid at U. S. rates--------------------------------------- 50
Additions to and separation from force----------------- --------- 50
Turn-over in force_____________________________________________ 51
Recruiting____________________________________________________ 51
Adjustment in wages and hours of work-------------------------- 51
Performance rating plan---------------------------------------- 52
Employees paid at local rates--------------------------------------- 52
Wages of local-rate employees___________________________________ 52
Cash relief for disabled employees paid at local rates____ 53
Repatriations_________________________________________________ 54
Central labor office________________________________---------------- 54
Long-range housing construction program---------------------------- 55
Safety program____________________________________________________ 55
Grounds maintenance---------------------------------------------- 56
Clubhouses_______________________________________________________ 57
Legislation________________________________________________________ 58
Capital allotments, fiscal year 1951---------------------------------- 60
Section IVGovernment
Area of the Canal Zone_____________________________________________ 61
Population________________________________________________________ 62
Public health________________________________________------------- 62
Vital statistics________________________________________________ 63
Malaria______________________________________________________ 64
Hospitals_____________________________________________________ 65
Quarantine___________________________________________________ 65
Municipal engineering---------------------------------------------- 65
Water system_________________________________________________ 66
Sewer system_________________________________________________ 66
Roads, streets, and sidewalks----------------------------------- 66
Other heavy construction activities------------------------------ 66
Cities of Panama and Colon____________________________________ 67
Miscellaneous activities________________________________________ 67
Public order______________________________________________________ 68
Arrests_______________________________________________________ 68
Principal causes of arrests______________________________________ 68
Coroner's investigations________________________________________ 68
Prisoners_____________________________________________________ 68
Deportations__________________________________________________ 69
Traffic accidents_______________________________________________ 69
Magistrates' courts________________________________________________ 69
Pardons and reprieves______________________________________________ 70
Fire protection______________________________........-------------- 70


xii contents
Page
Public school system_______________________________________________ 70
Enrollments__________________________________________________ 71
Achievement__________---------------------------------------- 71
Curriculum___________________________________________________ 72
Building program______________________________________________ 72
Physical education and recreation_______________________________ 72
Postal system_____________________________________________________ 72
Immigration visas------------------------------------------------- 73
Relations with Panama--------------------------------------------- 73
Customs and immigration------------------------------------------ 74
Shipping commissioner_____________________________________________ 74
Administration of estates------------------------------------------- 75
Foreign corporations_______________________________________________ 75
Insurance_________________________________________________________ 75
Licenses__________________________________________________________ 76
Section VFinancial and Statistical Statements
Accounting system_________________________________________________ 77
Operations of Panama Railrod Company----------------------------- 79
Panama Canal operations------------------- ________________________ 79
Index to tables____________________________________________________ 79
Financial tables___________________________________________________ 79
Shipping tables____________________________________________________ 80
Miscellaneous tables_______________________________________________ 80


ANNUAL REPORT OF THE GOVERNOR OF THE PANAMA CANAL
INTRODUCTION
The Panama Canal
The Panama Canal is a lock-type canal that connects the Atlantic and the Pacific Oceans through the Isthmus of Panama, traversing a distance 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 greatest 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 raised in three steps or lockages 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 chambers 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.
Canal Zone
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 immediately adjacent to these lakes which are below the 100-foot and 260-foot contour lines, respectively, referred to mean sea level. The use, occupation, and control of the Canal Zone have been granted to the United States Government by the Republic of Panama, under treaty agreements, for the construction, maintenance, 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.
Organization
The Panama Canal is an independent agency in the executive branch of the Government, directly under the President, but by delegation of responsibilit3r the Secretary of the Army represents the President in
1


2 report of the governor of the panama canal
the supervision of Canal affairs. Administration and executive authority are vested in a Governor. The Governor is also president of the Panama Railroad Company, a Government-owned corporation that functions as an adjunct of the Canal enterprise.
On January 1, 1950, the President of the United States issued Executive Order No. 10101 (amending Executive Order No. 9746 of July 1, 1946) which delegated to the Governor of the Panama Canal authority to determine the internal organization of the Panama Canal. By virtue of such authority, so far as concerns the organization known as the Panama Canal for the care, maintenance, sanitation, operation, and protection of the Panama Canal and the Government of the Canal Zone, and with the approval of the Board of Directors of the Panama Railroad Company so far as concerns the organization of that Corporation, the Governor, under date of March 13, 1950, directed that the organization of the Panama Canal-Panama Railroad Company be revised effective July 1, 1950, and set forth in coordinated outline the functions and responsibilities of the principal units of the two organizations.
The revised organization consists of the following:
(a) Office of the Governor-President, which includes the Lieutenant Governor of the Panama Canal, who is also Second Vice President of the Panama Railroad Company; an Executive Secretary of the Panama Canal; an Executive Assistant to the Governor-President; and a Military Assistant to the Governor.
(6) Five staff units, namely, a Management Division, a Law Division, a Civil Intelligence Branch, a Safety Branch, and Special Assistants and Boards.
(c) Four administrative units, as follows: Finance Bureau, Personnel Bureau, Administrative Branch, and Magistrates Courts.
id) Eight operations units designated Marine Bureau, Engineering and Construction Bureau, Health Bureau, Supply and Service Bureau, Civil Affairs Bureau, Industrial Bureau, Community Services Bureau, and Railroad and Terminals Bureau.
(e) Two offices in the United States: The Washington Office of the Panama Canal and the New York Office of the Panama Railroad Company.
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 operation of the locks, and the control of traffic through the Canal. Through-


REPORT OF THE GOVERNOR OF THE PANAMA CANAL 3
out 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 supplementary services incidental to shipping. There were no major interruptions of ship traffic during the year.
Operation of Auxiliary EnterprisesBusiness Operations
Second only to the operation of the Canal is the function of supplying necessary services to shipping and the Canal operating force. These services are provided under coordinated and centralized control by the various business units of the Panama Canal and Panama Railroad Company and include oil and coal bunkering plants; storehouses for food, ship chandlery, and other essential supplies; marine repair shops; harbor terminal facilities for passengers and for handling and transshipping cargo; a railroad line across the Isthmus; a steamship line between New York and the Canal Zone; water and electric power systems; and living quarters and retail commissary stores for the operating force. ,
GovernmentAdmi nis tr a tion
The usual functions of government, such as schools, police and fire protection, quarantine, public health, immigration Service, posts, customs, 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 centralization of all governmental actitities under one head is essential to economical and efficient administration.
Reorganization
Effective July 1, 1951, by the terms of Executive Order Xo. 10263 issued June 29, 1951, the organization described above was succeeded by a new organization which is more fully discussed in section III of this report.
Briefly, the Panama Railroad Company was renamed the Panama Canal Company and all activities other than of a strictly governmental nature were transferred to the new company from the Panama Canal. The governmental functions previously performed by the Panama Canal were transferred to a new agency designated as the ('anal Zone Government. On the effective date of the new organization, the Panama ('anal and the Panama Railroad Company ceased to exist under those names.
This annual report is the final report submitted for the Panama Canal.


4
report of the governor of the panama canal
Other Organizations in Canal Zone
In addition to the Canal-Railroad organization, a coordinated organization is maintained 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 Canal-Railroad organization.
Services Rendered to Shipping by the Panama Canal
The principal services rendered to shipping by the Canal and its adjuncts are shown in the following table, which represents a comparison of the activities during the fiscal year 1951 with the 2 years immediately preceding:
Fiscal year
-r 19.51 1950 1949
5, 593 1,113 5, 448 1,185 4, 793 1,275
6,706 1,045 6, 633 1,061 6,068 1,293
7,751 7,694 7,361
6,214 6,383 6,30(1 5,883 6, 116 6, 063 5,371 5,616 5,623
$23, 906,082 $52, 797 $24, 430, 206 $81,507 $20, 541.230 $76, 405
$23, 958,879 $2, 810, 691 $24,511,713 $2,063, 579 $20, 617,635 $2, 487. 792
30,073.022 25,066 1, 183,437 28,872, 293 33, 989 1,468, 700 25,305. 158 31,975 2, 245, 455
31,281,525 30,364, 982 27,582,588
27,180, 425 28,013,236 23,473,236
1.311 1.222 1.270
$0. 716 $0. 737 $0. 708
1.032 1. 332,263 3, 355 12 1.219 1,015, 714 11.566 24 1,219 1, 189.266 15,563 36
11,071,864 2, 509 9, 557,829 2,475 10.389,753 2,328
801 48 814 76 1,135 Hid
$541,059 $143, 521 $561,784 $153,423 $1,029,970 $199,301
TRAFFIC THROUGH THE PANAMA CANAL
Number of vessels transiting the Canal:
Ocean-going tolls-paying vessels______________.........
Small tolls-paying vessels (see p. 16)________________.....
Total tolls-paying vessels_________..........-----------
Vessels exempt from payment of tolls (see p. 17)__________
Total transits....................._________........____
Xumber of lockages during year:
Gatun Locks.....________......_________________________
Pedro Miguel_____________________........-.........-----
Miraflores Locks______..........___________..............
Tolls leviedocean-going vessels____________________.........
Tolls leviedsmall vessels...................____.......-----
Total tolls________.............____....._________......
Value of tolls on vessels entitled to free transit_______________
Cargo passed through Canal, carried by:
Ocean-going tolls-paying vessels (long tons)..............
Small tolls-paying vessels (long tons)__________........
Vessels exempt from payments of tolls (long tons)_______
Total cargo (long tons)................-----------------
Net tonnage (Panama Canal measurement) of ocean-going
tolls-paying vessels.....-........-...........--............
Cargo per Panama Canal net vessel ton (laden ocean-going
tolls-paying vessels only)....................-...........--.
Average tolls per ton of cargo (laden ocean-going tolls-paying
vessels only)...............................................
OTHER SERVICES
Calls at Canal Zoni> ports by ships not transiting the Canal...
Cargo handled and transferred at ports (tons)............____
Coal sales to ships (tons)........_............................
Coalnumber of vessels bunkered.......-----------.........
Fuel oiltotal barrels pumped (both incoming and outgoing),
excluding Panama Canal use____.........------------......
Fuel oilnumber of vessels handled..........--------.....
Repairs to ships other than Panama Canal equipment:
Number of vessels repaired_____.....................----
Number of vessels drydocked :_________...............
Sales to ships (except U. S. Army and Navy):
Provisions (commissary sales).................-----......
Chandlery (storehouse sales)......._____.................


report of the governor of the panama canal
5
Net Revenues
During the fiscal year 1951 the revenues from tolls charged to shipping using the Canal were $23,951,827.98, and miscellaneous receipts amounted to $169,240.28, a total of $24,121,068.26. The net appropriation expenses were $22,731,829.15, resulting in a net revenue of $1,389,239.11. The business operations under the Panama Canal provided a net revenue of $637,867.33. Thus the combined net revenues accruing from the Canal and its business units totaled $2,027,-106.44 during the fiscal year 1951, as compared with $2,830,184.29 in the fiscal year 1950.
Replacements
The past fiscal year marked the close of 37 years of successful operation 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 condition.
The capital assets of the Panama Canal as of June 30, 1951, totaled $706,448,543, which include $121,579,848 in special item projects and additional facilities, $399,024,830 in nondepreciable property such as locks, dams, and other concrete structures, $7,945,333 in defense and excess plant, and $177,898,532 in depreciable property. Against this investment in depreciable property is an accrued depreciation of $89,739,923.
The special item projects, additional facilities, and the nondepreciable property require but little expenditure for upkeep. However, the depreciable property requires systematic and orderly replacement as its economic life is exhausted, and appropriations must be made by Congress for this purpose, as wrell as for the construction of new facilities as need therefor develops.
98383052-2




. Section I
TRAFFIC VIA THE PANAMA CANAL AND CANAL OPERATION
STATISTICS ON CANAL TRAFFIC
Ocean-Going Tolls-Paying Traffic 1
The (rend of traffic through the Panama Canal in fiscal year 1951 continued at approximately the same level as in the previous fiscal year. Though net vessel tonnage, Panama Canal measurement, decreased 3.0 percent from the record high of fiscal year 1950, transits increased 2.7 percent and cargo tonnage, the highest of any fiscal year since 1929, increased 4.2 percent in comparison with the previous fiscal year.
The following is a tabulation of the four principal features of traffic for the fiscal year 1951, together with those in the two fiscal years immediately preceding:
Fiscal year
1951 1950 1949
Number of transits .-..........________............... 5, 593 27,180,425 30,073,022 $23, 906,082 5,448 28,013,236 28, 872,293 $24,430, 206 4,793 23, 473, 236 25,305,158 $20, 541,230
Net tonnage (Panama Canal measurement)---------.......... Cargo (tons of 2,240 pounds).....................-.......... Tolls.......................____..................____.....

Other Traffic
In addition to the 5,593 ocean-going tolls-paying vessels passing through the Canal in the fiscal year 1951, there were 1,113 tolls-paying vessels under 300 net tons, Panama Canal measurement (consisting principally of small banana boats operating in local waters), and 1,045 transits of vessels exempt from payment of tolls, a total of 7,751 transits for 1951, in comparison with a total of 7,694 in the fiscal year 1950 and a total of 7,361 in 1949. The Panama Canal does not compile detailed statistics on small tolls-paying 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 Transiting Canal" and "Vessels Kutitlotl to Free Transit" on pages 16 and 17, the following paragraphs and tables \<>s. 29 through 42, in section V, pertain only to ocean-going tolls-paying traffic.
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.).
7


8
report of the governor of the panama canal
Traffic Trends
Approximately 81 percent of the net vessel tonnage transiting the Canal in the fiscal year 1951 was employed in eight trade routes. As previously stated, total net vessel tonnage through the Canal in the fiscal year 1951 declined 3.0 percent from the total making transit in the previous fiscal year. The principal variations in the main channels of trade occurred in the United States intercoastal movement which was off 1,940,000 net tons (30.1 percent) because of the practical disappearance early in the year of the mineral oil traffic and a gain of 854,000 net tons (31.6 percent) in the trade between Europe and the west coast of United States/Canada. Cargo moving in the latter trade, as in previous years, is predominately from the Pacific to Atlantic, with the movement in this direction in 1951 making up 78 percent of the combined movement in both directions. A total of 3,209,910 long tons moved from the Pacific to the Atlantic in this trade in 1951, a gain of 817,125 tons, or 34.1 percent in comparison with the movement in this direction in 1950, while from the Atlantic to the Pacific there was a total of 806,117 Ions tons in 1951 which more than doubled the Pacific-bound move-ment of the previous year.
The following tabulation presents a comparison of traffic in the eight principal trade routes for the fiscal years 1951 and 1950:
[In thousands of P. C. net tons]
Fiscal year
1951 1950 Increase or (decrease)
United States Intercoastal: Percent
Tankers ______.............-................____ 1,214 3,238 (2,024) (62. 5)
3,287 3,203 84 2.6
Total________......__________________________________ ? 4, 501 6,441 (1,940) (30.1)
East coast United States-west coast South America........ 4,068 4,139 (71) (1.7)
East coast United States-Asia----------.............------- 4,142 3, 738 404 10.8
Europe-west coast United States/Canada------------------- 3,553 2,699 854 31.6
Europe-Australasia____________.....------------........---- 1,842 1,946 (104) (5.3)
Europe-west coast South America __......-------......----- 1,845 1,696 149 8.8
East coast United States-west coast Central America________ 1,369 1, 497 (128) (8. 6)
East coast United States/Canada-Australasia............... 786 827 (41) (5.0)
5,074 5,030 44 0.9
Total............................---------------..... 27,180 28,013 (833) (3.0)
A brief discussion of shipping engaged in these trade routes is given in the following paragraphs:
United States Intercoastal Trade
The United States intercoastal trade ranked first in tonnage among the various routes served by the Panama Canal during the fiscal year 1951. Net vessel tonnage engaged in this trade in the period totaled 4,501,294, a decrease of 1,940,139 net tons from that routed through


report of the governor of the panama canal
1)
the Canal in fiscal year 1950. This decrease in intercoastal tonnage is attributable directly to the disappearance early in the fiscal year 1951 of the mineral oil traffic. This traffic, which in the fiscal year 1950 had accounted for approximately one-half of the intercoastal tonnage, decreased by 62.5 percent in the fiscal year 1951. A gain of 2.6 percent was recorded in the traffic of other than tankers, i.e., dry cargo tonnage. Cargo moving in the United States intercoastal trade in the fiscal year 1951 totaled 5,730,653 long tons, a decrease of 22 percent from that of the previous year. Of this total 2,060,762 long tons were routed from the Atlantic to the Pacific, a gain of 11 percent over tonnage moving in that direction last year; in the opposite direction the cargo movement totaled 3,669,891 long tons, a decrease of 33 percent from the Atlantic-bound movement in the previous fiscal year.
Trade Between East Coast United States and W est Coast South America
The trade between the east coast United States and the west coast South America ranked third in volume of net vessel tonnage in the fiscal year 1951, relinquishing the second place position which it had held in the previous fiscal year. In the fiscal year 1951 a total of 4,067,533 net tons of shipping was employed in the trade, a loss of 71,714 net tons or 1.7 percent in comparison with the fiscal year 1950.
Although net tonnage decreased 1.7 percent in comparison with 1950, cargo exchanged by these two geographical areas, totaling 5,063,336 long tons, increased 9.7 percent. This gain involved movements in both directions; that routed from the Atlantic to the Pacific totaling 790,342 long tons, an increase of 1.5 percent, while that shipped in the opposite direction, amounting to 4,272,994 long tons, increased 11.2 percent from the previous year. This increase was attributable to the heavier shipments of iron ore, nitrate of soda, and bananas during the year.
Trade Betiveen East Coast United States and Asia
The trade between the east coast United States and Asia ranked second among the various trade routes in the fiscal year 1951. In that period a total of 4,141,570 net tons of shipping transited the Canal in the transportation of cargo in this trade, an increase of 10.8 percent in comparison with the total of the previous fiscal year. As has been the case in past years, the volume of traffic in this trade was preponderantly from east to west, with 61.6 percent of the net vessel tonnage and 59.8 percent of the cargo tonnage having transited in that direction in the fiscal year 1951.


10 report of the governor of the panama canal
The combined cargo movement in both directions in this trade during the fiscal year 1951 totaled 4,899,929 long tons, a gain of 690,664 long tons or 16.4 percent over the combined movement of the previous fiscal year. Of this total 2,935,098 long tons were routed from the Atlantic to the Pacific, a gain of 8.0 percent in comparison with the total shipped in that direction in the previous year; from the Pacific to the Atlantic cargo tonnage totaled 1,964,831 long tons, which represents a gain of 473,630 long tons, or 30.7 percent over the Atlantic-bound total in fiscal year 1950. This increase in the Atlantic-bound cargo is attributable primarily to the heavier shipment of sugar from the Philippine Islands over that shipped in fiscal year 1950.
Trade Between Europe and W est Coast Linked States/Canada
Traffic in the Europe-west coast United States/Canada trade ranked fourth among the various trade routes served by the Pan una Canal in the fiscal year 1951, accounting for 3,553,247 net vessel tons of shipping, a gain of 31.6 percent in comparison with the volume of the previous fiscal year. As in the past the west to east movement of cargo in this trade was far in excess of that transiting in the opposite direction, the former accounting for 78.4 percent of the combined movement in both directions.
In the fiscal year 1951 cargo routed from western Canada to Europe totaled 1,882,726 long tons, an increase of 18.7 percent from the west-east movement between these two areas in the fiscal year 1950. In the movement from the west coast United States to Europe cargo tonnage increased from 806,263 tons in 1950 to 1,327,184 tons in 1951, a gain of 520,921 tons, or 64.6 percent. Cargo tonnage in the east-west movement in previous years has been relatively light; however, the combined movement of cargo routed in this direction totaling 886,117 long tons more than doubled the cargo tonnage of the previous fiscal year.
Trade Between Europe and Australasia
A total of 1,841,535 net vessel tons passed through the Canal in the fiscal year 1951 in the Europe-Australasia trade, a loss of 5.3 percent in comparison with that passing through the previous fiscal year. The net vessel tonnage moving from east to west in the fiscal year 1951 was 874,391, a gain of 1.3 percent in comparison with the 862,843 tons passing through in the fiscal year 1950; in the opposite direction there were 976,144 net vessel tons which was a decline of 10.7 percent from the 1,083,082 tons passing from west to east in the fiscal year 1950.
Cargo moving between these two areas in the fiscal year 1951 totaled 1,610,774 tons, a decrease of 6.3 percent from fiscal year 1950. The


REPOHT OF THE GOVERNOR OF THE PANAMA CANAL 1 1
cast-west movement in the fiscal year 1950 amounted to 764,647 long tons against 722,310 long tons in the fiscal year 1950, a gain of 5.9 percent, while that from the Pacific to the Atlantic, totaling 840.127 tons in the fiscal year 1951 was 15.0 percent under the 996,236 tons of the previous fiscal year.
Trade Between Etirbpe and West Coast South America
The trade between Europe and the west coast of South America ranked fifth among the various trade routes operating via the Panama Canal in the fiscal year 1951. In this period this trade contributed 1,844,938 net vessel tons of shipping to Panama Canal traffic, a total which exceeded that of the previous fiscal year by 8.8 percent.
Cargo tonnage moving in both directions between Europe and the west coast South America in the fiscal year 1951 totaled 1,642,209 long tons, a gain of 6.3 percent in comparison with that of the previous fiscal year. Of this total 488,886 long tons were routed from the Atlantic to the Pacific, a gain of 64.0 percent in comparison with the Pacific-bound movement of the previous fiscal year, while in the opposite direction cargo tonnage totaled 1,153,323 long tons, which represented a loss of 7.5 percent from the Atlantic-bound total in the fiscal year 1950.
Trade Between East Coast United States and W est Coast Central A m erica / Mexico
The trade between the east coast United States and the west coast Central America Mexico, which involves almost exclusively shipping engaged in the banana trade] ranked seventh in net vessel tonnage among the various trades served by the Panama Canal in the fiscal year 1951. Net vessel tonnage in this trade totaled 1,368,522, a decrease of 8.6 percent from the 1,496,916 net tons of the previous fiscal year.
The combined cargo tonnage moving between eastern United States and the West coast Central America/Mexico in the fiscal year 1951 totaled 388,848 long tons, a decline of 11.0 percent from the combined movement of the previous fiscal year. Of this total, 340,184 long tons, which comprised 87.5 percent of the combined movement, were routed from west to east, a decline of 13.6 percent in comparison with the east-bound movement of the previous fiscal year; about 93 percent of this cargo movement was made up of banana shipments. In the relatively unimportant movement from east to west in this trade, a total of 48,664 long tons were shipped in the fiscal year 1951, as against 42,691 long tons in the fiscal year 1950, an increase of 14.0 percent.


12 report of the governor of the panama canal
Trade Between East Coast United States/Canada and Australasia
The trade between the east coast United States/Canada and Australasia was in volume the least important of the eight major trade routes covered in this discussion. In the fiscal year 1951 a total of 786,298 net tons of shipping was employed in the trade as compared with 827,280 net tons in the fiscal year 1950, a decrease of 5.0 percent.
The combined tonnage of cargo in both directions between these two areas in the fiscal year 1951 totaled 962,445 which was slightly belowless than 1 percentthe 965,886 long tons of the previous fiscal year. Cargo moving from the United States (i. e., excluding Canadian shipments) to Australasia in the fiscal year 1951 totaled 543,461 long tons, a decrease of 5.8 percent from similar shipments in the previous fiscal year, while those exclusively from Canada, totaling 72,631 long tons, decreased 2.6 percent. In shipments routed in the opposite direction, there were 230,239 long tons destined to the United States and 116,114 long tons to Canada, increases of 13.7 percent and 32.5 percent, respectively.
Cargo Statistics
The combined movement of cargo in both directions through the Panama Canal in the fiscal year 1951 totaled 30,073,022 long tons, a gain of 1,200,729 long tons, or 4.2 percent, in comparison with the cargo tonnage passing through in the fiscal year 1950. This is the highest movement of cargo through the Canal since the fiscal year 1929, when 30,647,768 long tons made passage and the second highest in the history of the Canal. The heavy cargo movement in 1951 was the direct result of a sharp expansion of shipments from the Atlantic to the Pacific which totaled 11,132,472 tons, an increase of 17.4 percent, in comparison with 1950 shipments in this direction. This is the heaviest Atlantic to Pacific movement of cargo in the history of the Canal. The west-east movement, totaling 18,940,550 long tons, decreased 2.3 percent from the high level recorded in fiscal year 1950.
In tables Nos. 39 through 42, in section V, will be found a comparison of cargo tonnage shipped over the various trade routes, together with summaries of the principal commodities comprising these shipments.
Tolls Receipts
Tolls received and reported to the United States Treasury in the fiscal year 1951 were $23,958,878.58, which includes tolls amounting to $52,796.52 on local tolls-paying vessels not included in statistics covering ocean-going tolls-paying traffic. This sum of $52,796.52 accounts for the difference between $23,958,878.58 reported to the United States Treasury and $23,900,082.06 shown in traffic studies in this report.


REPORT OF THE GOVERNOR OF THE PANAMA CANAL 13
Nationality of Vessels Transiting Canal
Twenty-nine nationalities were represented in the ocean-going traffic passing through the Canal in the fiscal year 1951, as compared with 28 in the preceding fiscal year. Vessels of United States registry, accounting for 12,469,276 net tons, Panama Canal measurement, ranked first in volume of net tonnage, as has been the case in almost every year during the 37 years the Canal has been in operation. In the first 4 years of operation, and in the fiscal year 1945, British tonnage ranked first and that of United States registry was second. The volume of net tonnage under United States registry in the fiscal year 1951 decreased 13.5 percent in comparison with the previous years' figures, the greater portion of this decrease occurring in the United States intercoastal trade. Transit of tonnage operating under the British flag in the fiscal year 1951, totaling 5,780,215 net tons, ranked next to the United States in importance; this tonnage increased 12.1 percent over the volume recorded in the previous fiscal year.
United States vessels made up 45.9 percent of the total net tonnage in the past fiscal year; British vessels, 21.3 percent; Norwegian, 8.6 percent; Panamanian, 3.7 percent; Honduran, 3.3 percent; Danish, 2.8 percent; and Swedish, 2.4 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 measurement tonnage, tolls, and tons of cargo per cargo-carrying vessel of 300 net tons and over, Panama Canal measurement, transiting the Panama Canal during the past three fiscal years are shown in the following tabulation:
Fiscal year averages, per vessel: Measured tonnage:
Panama Canal net....................
Registered gross......................
Registered net......................
Tolls......................................
Tons of cargo (including vessels in ballast) Tons of cargo (laden vessels only)_________
Fiscal year
1951 1950 1949
1. 891 5, 163 4, 936
6. 195 6, 872 6.67
3, fi97 4, 104 3, 965
$4. 146 $4, 502 $4.31
5, 5(16 5,324 5, 338
6,387 6,419 6.432
Note.Computation of above averages is based on vessels engaged in normal commerce; craft such as yachts, naval vessels, etc., are not considered.


14 report of the governor of the panama canal
Steam, Motor, and Other Vessels
The following table shows ocean-going tolls-paying vessels transiting during the past three fiscal years, segregated according to method of propulsion:
1951 Fiscal year 1950 1949
Steamers: Oil-burning________............____.......................______ 3, 719 29 1,804 41 3, 773 70 1,580 25 3,164 89 1,488 52
Coal-burning___________........-___..........._.................
Motorships __________________________________ _________________-_______
Not classified 1 ____..........................______
Total..........______________......________________________________
5, 593 5,448 4,793

1 Naval vessels, yachts, etc.
Frequency of Transits of Vessels Through the Panama Canal
During the fiscal year 1951, 1,579 individual ocean-going tolls-paying vessels, representing 29 nationalities, passed through the Panama Canal. In aggregate these vessels made a total of 5,593 transits. The number of transits made by individual ships varied from 1 to 66, and averaged 3.54. The greatest number of transits, 66, was made by the Ecuador, a vessel of Ecuadorean registry, engaged in the banana freight service between the port of Cristobal and Ecuador.
Vessels of British registry led in the number of individual vessels transiting the Canal during the year with 490, but ranked second in the number of transits with 1,004; those of United States registry were second in number of individual vessels transiting with 461, but ranked first in the number of transits with 2,203.
Further information on the frequency of transits of vessels will be found in table No. 34, section V.
Gross Tonnage of Vessels
The 5,593 ocean-going tolls-paying vessels which transited the Canal in the fiscal year 1951 included 5,572 vessels rated on net tonnage and 21 vessels rated on displacement tonnage.
Of the 5,572 vessels rated on net tonnage, 2,143, or 38.5 percent, were vessels ranging between 6,000 and 8,000 registered gross tons. The average registered gross tonnage of all vessels was 6,467 as compared with 6,856 in the previous 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


report of the governor of the panama canal 15
complete 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 countries of origin and destination. These cargo declarations form the basis of the commodity statistics. There is a natural tendency not to list small miscellaneous shipments but to include them under the head of general cargo. Hence, except in the case of commodities commonly shipped in bulk, such as mineral oils carried in tank ships, wheat, lumber, nitrate, etc., aggregate shipments of the various commodities are likely to be in excess of the tonnage reported during the year and shown in the annual summary. Hence, all commodity statistics carried in this report are subject to inaccuracies arising from this source.
The commodity of the greatest volume passing tlnough the Canal from the Atlantic to the Pacific in the fiscal year 1951 was mineral oil, totaling 1,758,830 tons, followed by manufactures of iron and steel, with 1,600,434 tons, and coal and coke, with 866,905 tons. In the opposite direction, leading commodities were ores (various), with 3,722,308 tons; lumber, with 3,574,602 tons; mineral oils, with 1,663,808 tons; wheat, with 1,403,575 tons; nitrate, with 1 371,191 tons; and canned food products, with 1,163,575 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, disembarking and embarking from vessels at Canal Zone ports during the fiscal year 1951, segregated between first-class and all others, with comparative totals for the fiscal years 1950 and 1949:
Passengers disembarking Passengers embarking
First-class Others Total First-class Others Total
July......................._______ 1,481 143 1,624 1,364 84 1,448
August............................... 1,187 104 1,291 1,179 572 1,751
September............................ 1,242 48 1,290 1,616 124 1,740
October............................... 940 111 1,057 1,026 122 1,148
November............................ 756 64 820 486 201 687
December_______..................... 684 104 788 736 98 834
January.............................. 817 117 934 443 134 577
775 84 859 602 117 7111
March____............................ 687 39 726 820 129 949
April................................. 781 68 849 1,102 99 1,201
May.................................. 565 135 700 1,298 231 1,521
June.........._______................. 1,238 71 1.309 1,383 101 1,484
Total 1951...................... 11,159 1,088 12,247 12,055 2,012 14,067
Total 1950...................... 13, 010 2, 999 16,009 16, 925 2,632 19,557
Total 1949...................... 13,627 2, 275 15,902 15,585 1,746 17,331


16 report of the governor of the panama canal
The- following table shows the passenger traffic through the ports of Cristobal and Balboa during the fiscal years 1951, 1950, and 1949:
Port of Cristobal Port of Balboa
1951 1950 1949 1951 1950 1949
Passengers disembarking....._____ ______ Passengers embarking.....____......... 11,273 12, 543 12, 593 15, 765 12, 716 13, 534 974 1,524 3,416 3,792 3,186 3, 797
A further segregation of the passenger movement for 1951 shows that 10,402 incoming and 12,364 outgoing passengers came from or were destined to ports on the Atlantic, and 1,845 incoming and 1,703 outgoing were brought from or were destined to ports on the Pacific.
Transient Passengers
In addition to the figures shown above of passengers disembarking, there were 45,527 transient passengers brought to the Isthmus by vessels calling at Canal ports during the fiscal year 1951. The 1951 figure is a decrease of 4,460 (8.9 percent) from the number recorded in 1950, and a decrease of 14,387 (24.0 percent) from the number passing through in the fiscal year 1949.
The origin and destination of these transient passengers are indicated in the following tabulation:
Fiscal year
1951 1950 1949
Remaining on board vessels transiting Canal: Atlantic to Pacific_______________________.......__________ -...... 19, 505 17, 521 8, 393 108 24, 242 18, 914 6,674 157 23, 220 22, 947 13, 619 128
Pacific to Atlantic ________........________________....._____.....-.
Remaining on board vessels entering port but not transiting Canal: Atlantic to Pacific ______ ___......- _________________________
Pacific to Atlantic________.......____.......__________________________
Total__________________________________________........_____________
45, 527 49, 987 59,914

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 the fiscal years 1951, 1950, and 1949 together with the tonnage, tolls, and the amount of cargo carried, are summarized in the following table:


REPORT OF THE GOVERNOR OF THE PANAMA CANAL 17
Fiscal year 1951 Total, fiscal year
Atlantic to Pacific Pacific to Atlantic Total 1950 1949
Number of transits: Rated on net tonnage ________________ Rated on displacement tonnage ...... Total transits....................... Panama Canal net tonnage................ Displacement tonnage.................____ Tolls ............._______................ 580 1 532 1, 112 1 1, 183 2 1,274 1
581 32, 250 3(50 $24, 860. 52 6, 469 532 32, 122 $27, 936.00 18, 597 1, 113 64, 372 300 $52, 796. 52 25,066 1,185 100, 421 777 $81, 506. 58 33, 989 1,275 94, 497 371 $76, 405. 06 31, 975
Cargo (long tons)......_-............______
Vessels Transiting Canal Without Payment of Tolls
The following classes of vessels were entitled to free passage of the Panama Canal in fiscal year 1951 and prior years. Vessels owned, operated, or chartered by Governments of the United States and Republic of Panama; war vessels of the Republic of Colombia; and vessels transiting solely for the purpose of having repairs made at the Panama Canal shops. Such vessels are not included in the general statistics pertaining to Canal traffic. Effective July 1, 1951, vessels owned, operated, or chartered by the Government of the United States will not be included in this group.
The following table showrs for the fiscal years 1951, 1950, and 1949 the number of transits in each category outlined in the preceding paragraph, and the amount of tolls to which such vessels would have been subject at the prescribed rates if tolls had been charged against them:
Fiscal year 1951 Fiscal year 1950 Fiscal year 1949
Number of transits Tolls value Number of transits Tolls value Number of transits Tolls value
Government of: United States____......... ___LI** $2, 793.811 1,020 $2, 026, 450 1, 265 $2, 461. 617
Colombia......._________ Panama____..........____ Transiting for repairs____..... Total................... 4 11 13, 494 29 3, 357 34 3 4 28, 30b 21 8, 802 21 3 4 15, 444 21 10, 710
1,045 2, 810, 691 1,061 2,063, 579 I, 293 2, 487, 792
Further details on vessels transiting the Canal without payment of tolls will be found in table No. 43, section V.
Data in Statistical Section
Further particulars of traffic through the Canal are presented in section V of this report in the form of tables.


18 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 front the terminal ports at 6 a. m. and dispatches are made thereafter from each terminus at intervals of from }{ 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 4 p. m.; from Balboa anchorage, first ship at 5:30 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 they can clear Gaillard Cut before dark.
Lockages and Lock Maintenance
Operating Schedule of Locks
Three operating crews were maintained at Pedro Miguel locks and at Miraflores locks throughout the fiscal year. Four operating crews were maintained at Gatun locks until January 6, 1951, when an additional operating crew was assigned in order to provide 24-hour service during the period of the Atlantic locks overhaul. For the period of the overhaul from January 7 to March 26, 1951, five operating crews were maintained. Upon completion of the overhaul, normal operation w7as resumed on March 27, 1951, with four operating crews.
Locks Division force continued to work on the 40-hour week basis during the year except for the period of the Atlantic branch overhaul. On January 7, 1951, personnel of the Atlantic branch, and certain specified employees of the Pacific branch, were placed on a 48-hour week basis. Effective with the week beginning March 25, 1951, all Locks Division employees returned to the normal 40-hour workweek.
The following operating schedules were in effect at the locks on June 30, 1951: Gatun:
Shift No. 1:7a. m. to 3 p. m.8 locomotives. Shift No. IX: 7 a. m. to 3 p. m.6 locomotives. Shift No. 2: 3 p. m. to 11 p. m.8 locomotives. Shift No. 2X: 3 p. m. to 11 p. m.6 locomotives. Pedro Miguel:
Shift No. 1: 8 a. m. to 4 p. m.8 locomotives. Shift No. 2: 9:30 a. iri. to 5:30 p. m.6 locomotives. Shift No. 3: 2 p. m. to 10 p. m.8 locomotives.


REPORT f)F THE GOVERNOR OF THE PANAMA CANAL 19
Mirafiores:
Shift No. 1:7 a. in. to 3 p. m.8 locomotives. Shift No. 2: 9:30 a. m. to 5:30 p. m.6 locomotives. Shift No. 3: 3 p. m. to 11 p. in.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 1951, with corresponding totals for the previous 5 years:
Qatun Fcdro Miguel Mirafiores
Lockages Vessels Lockages Vessels Lockages Vessels
1950
July.......... 577 718 592 726 587 725
August.....-- 555 714 565 726 561 724
September 515 608 535 639 531 637
512 619 518 647 513 641
November ______A..Jill. 481 592 488 602 483 591
December 473 584 479 593 475 591
1951
dJOTjjjl.niitJb 474 618 501 649 489 626
February_____ 468 626 492 643 487 656
March________ 541 712 558 737 549 726
April____..... 527 687 546 718 534 712
May.......... 550 734 557 756 548 736
June__________ 541 733 552 757 543 740
Total 6, 214 7,945 6, 383 8,193 6,300 8,105
Fiscal year:
1946....... 6, 823 9,901 7,139 10,654 7,076 10, 561
1917_______ 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
1949_______ 5, 371 7, 500 6, 616 7,863 5,623 7,890
1950....... 5,883 7,868 6,116 8,339 6,063 8,308
Total lockages for all three locks were 4.4 percent above the number handled in the previous fiscal year. All chambers were available for service with double culvert at all three locks throughout the year except during the period of overhaul at the Atlantic locks. At Gatun the west chamber was taken out of service for overhaul on January 6, 1951, and traffic was confined to the east chamber, using single culvert, until 6:40 p. m. on Feburary 16, 1951. Overhaul activities were then transferred to the east chamber, and the west chamber returned to service using single culvert; overhaul of the east chamber was completed March 22, 1951, and the east chamber was returned to service. The west chamber was again taken out of service on March 23, 1951, in order to make repairs to concrete sills, wood seals, seal angles, and rubber seals on miter gates Nos. 15 and 16. Work was completed on March 27, 1951, and both chambers were returned to normal operation on March 28, 1951.


20 REPORT OF THE GOVERNOR OF THE PANAMA CANAL
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:
Fiscal year Average number of lockages per day Average number of vessels per lockage
Qatun Pedro Miguel Mirafiores Oatun Pedro Miguel Mirafiores
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
1950______ 16.1 16.7 16.6 1. 35 1.36 1.37
1951 17.3 17.5 17.3 1.28 1.28 1.27
As shown in the above table, the trend in the average number of vessels per lockage decreased, while the average number of lockages per day increased as compared with previous fiscal years. This reversal of trend is attributed primarily to the larger proportion of the small commercial, Canal, and Army and Navy vessels being handled as separate lockages rather than as tandem lockages as practised in previous years.
Delays to Shipping
The lock operating machinery functioned smoothly throughout the year except for a few incidents of faulty operation or minor failures of equipment. The following summary includes all delays to vessels while transiting the locks due to the incidents mentioned:
Number of lockages delayed Aggregate delay caused all vessels
Oatun -- ________ ______....._____________....... ______ 66 16 38 120 15 hours 47 minutes. 2 hours 13 minutes. 6 hours 14 minutes. 24 hours 14 minutes.
Pedro Miguel ..............______....._______________.........___
Mirafiores......._____________ --......___.......-.........____
Total -..........______........__________......---

Maintenance and Construction
The modernization of the electrical power and distribution systems of the locks and preparation of plans for the future program were continued. Virtually all of the design work for the Pacific locks has been completed, and the design work for the Atlantic locks, which was begun last fiscal year, is rapidly being brought to completion. At Pacific locks the replacement of cable was approximately 95 percent complete at the end of the year, and 14 new track transformer rooms were in service. Construction was begun on the new transformer houses and tunnel transformer rooms for the Atlantic locks during the year.


REPORT OF THE GOVERNOR OF THE PANAMA CANAL 21
Atlantic Locks Overhaul
A major overhaul was accomplished at the Atlantic locks during the fiscal year. Miscellaneous minor maintenance and repair work was performed concurrently in the unwatered chambers within the limits of available time and personnel.
The major items of work accomplished consisted of the following:
(a) Gates Nos. 13, 14, 15, and 16 were unhinged and all bearing plates, pintle and pintle bushings, yokepins and yoke bushings were renewed. Two lower pintle castings were also renewed;
(6) Removal of 56 rising stem valves and 2 nonoperating valves from pits was made to accomplish repairs to both the valves and pits;
(c) Seal segments and rubber seals on 60 cylindrical valves were renewed or repaired;
(d) Six center-wall culvert bulkheads and all culvert screens *Were removed and repaired;
(e) General repairs were made to miter gates including repairs to gate seals, and gate latching device;
(f) Overhaul of mechanical interlocking control board of control house;
(g) Installation of cathodic protection on north side of miter gates Nos. 1 and 2, and on north and south sides of miter gates Nos. 5 through 20; and testing of installations at the quoin end of miter gate No. 15 and rising stem valves Nos. 226 and 227.
Power for Canal Operation
The table below 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;
[ Kilowatt hours]
Fiscal year
1951 1950 1949
Gross power generated:
Gatun hydro station........___________................. 91,576, 200 96,841,500 99, 534,100
Madden hydro station.................................. 142,917,200 154,592,500 149, 214,900
Diesel stations.......................................... 455,200 608, 700 21,670, 200
Total generated.............................._________ .::!, vis. oiKi 252.042, Tiki 270,419,200
Consumed in station service................................ 2,497,435 2,383,512 2, 799, 235
Net generator output................................. 232,451,165 249,659,188 267,619,965
Distributed to consumers................................... 210, 961,185 225, 776, 281 241,325, 061
Transmission loss:
Kilowatt-hours____..............____................... 21,489,980 23,882,907 26, 294,904
Percent................................................. 9.2 9.6 9.8
Peak load (kilowatts)....................................... 42,000 47,600 48,900
Date.............................. Dec. 19,1950 July 11,1949 Jan. 10,1949

The six Diesel-electric stations were not operated for water conservation purposes during the fiscal year. The gross generated
98383052-3


22 report of the governor of the panama canal
455,200 kilowatt-hours were used for supplying peak demands and for testing ready availability of these plants for emergency service.
The new governor oil system consisting of two pumps,' an air compressor, and control equipment was installed at the Gatun hydroelectric station during the year. Rehabilitation work was performed on generators Nos. 2, 3, 5, and 6.
At Madden Dam lrydroelectric station, generating unit No. 2 was removed from service on April 4, 1951, overhauled, and restored to service May 4, 1951.
The rehabilitation of Balboa substation, which was begun in fiscal year 1949, was completed in fiscal year 1951.
The construction of the new Gamboa substation, begun in the previous fiscal year, was brought to completion in the fiscal year 1951.
During the year service was temporarily interrupted at various substations on six occasions. There were 34 transmission line failures during the year, of which 8 were caused by lightning flashover, 2 by line wire breaks, 15 by animal contact, 1 by faulty operation of protective relays, and 8 from undetermined causes.
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 the Madden and Gatun Lakes, which serve as storage reservoirs for a drainage area of 1,289 square miles. All outflow from Madden Lake, whether spilled at Madden Dam or drawn for the use of the Madden hydroelectric station, flows into Gatun Lake, and, together with the direct inflowT from the area dowmstream from Madden Dam, is available for Gatun Lake uses. The total inflow into Madden and Gatun Lakes during the year ended June 30, 1951, amounted to 260,302 million cubic feet, which is 25 percent above the average inflow for the 37 years since the formation of Gatun Lake. Evaporation losses from Madden and Gatun Lakes totaled 20,165 million cubic feet, leaving 240,137 million cubic feet available for use.
For further details on water supply and expenditures see table No. 44, section V.
Storms and Floods.On July 25, 1950, a severe thunderstorm, with wind velocities ranging from 30 to 50 miles per hour, struck the Pacific side of the Isthmus. There was no material damage caused to Canal structures. Norther conditions prevailed from November 25 to 28, inclusive, which produced heavy runoff conditions in the Gatun Lake Basin, resulting in a runoff of 16 billion cubic feet for the 4-day period. The maximum discharge from Madden Dam during the year was 34,150 cubic feet per second on May 21, 1951.
Dry Season, 1951.The 1951 dry season was of approximately 4 months' duration. It is during this period that the inflow into Madden


report of the governor of tiik panama canal 23
and Gatun Lakes is not sufficient to provide water for evaporation losses from lake surfaces and for Panama Canal uses. The net inflow into Madden and Gatun Lakes during this period was 26,169 million cubic feet, the highest of record since 1915. Water expenditures for the same period amounted to 49,349 million cubic feet, consisting of 39,92.3 million cubic feet for Gatun Lake water use, 9,298 million Cubic feet evaporation loss from lake surfaces and 128 million cubic feet spilled over Gatun Lake spillway. The dry season draft on lake storage amounted to 13,882 million cubic feet of which 13,076 million cubic feet were drawn from Gatun Lake and 806 million cubic feet from Madden Lake. It was not necessary to use any water-saving methods during this period.
Lake Elevations.During the fiscal year ended June 30, 1951, Madden Lake varied in elevation between a maximum of 253.06 feet on December 19, 1950, and a minimum of 239.59 on September 15 and 16, 1950, a total range of 13.47 feet. Gatun Lake varied in elevation between a maximum of 87.27 feet on December 16, 1950, and a minimum of 83.93 feet on April 26 and 27, 1951, a total range of 3.34 feet. Elevations on June 30, 1951, were 241.45 feet for Madden Lake, and 85.20 feet for Gatun Lake.
Rainfall.The rainfall in the Canal Zone during the fiscal year ended June 30, 1951, was generally above normal in most locations. Along the line of the Canal channel, annual totals ranged from 67.22 inches at Balboa Heights at the Pacific terminal to a maximum of 154.38 inches at Cristobal at the Atlantic terminal, 1.87 inches below normal and 24.30 inches above normal, respectively. The month of maximum rainfall was November 1950. The maximum monthly amount recorded during the year was 39.12 inches at Cristobal in November 1950. March was the month of least rainfall. The month of February 1951, normally a dry month, was abnormal in that rainfall at every station wTas above normal and the weighted mean rainfall for the Gatun Lake Basin was 6.14 inches as compared to the 38-year mean of 1.48 inches.
4 ir Ternperatures
There was little variation in air temperatures throughout the year, no monthly mean at any station departing more than 2.3 F. from the annual mean. Annual means and extremes at Canal Zone stations for the fiscal year are given in the following tabulation:
Station 1951 maximum 1951 minimum 1951 mean ( f.) Departure ( f.)
0 f. Date f. Date
Balhoa Heights.................____ Madden Dam....................... Cristobal..............._......... 95 94 91 Apr. 13,1951 May 9,1951 Oct. 3,1950 66 62 70 Jan. 12,1951 Mar. 13,1951 Feb. 4,1951 79.9 79.2 79.2 : -0.4 +0.2 -1.5


24 report of the governor of the panama canal
Annual extremes and means on record at the above stations are as follows:
Station Absolute maximum Absolute minimum Annual mean ( F.)
0 F. Date F. Date
Balboa Heights____________________...........____ Madden Dam. __________________ __________ 97 98 95 Apr. 27,1948 Apr. 13,1920 Oct. 18,1924 63 59 66 Jan. 27,1910 Feb. 4,1924 Dec. 3,1909 80.3 79.0 80. 7
Cristobal_______

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 Heights ranged from 5 miles per hour during September to 9 miles per hour in March. Monthly mean velocities at Cristobal ranged from 6 miles per hour during September to 15 miles per hour during February. The most frequent directions were northwest along the Pacific coast and north along the Atlantic coast. Maximum velocities for 5-minute periods were 29 miles per hour from the northwest on November 28, 1950, at Balboa Heights and 33 miles per hour from the northwest on November 28, 1950, at Cristobal.
The relative humidity averaged 85 percent at Balboa Heights and 84 percent at Cristobal. Monthly means at Balboa Heights ranged from 74 percent in March 1951 to 90 percent in July 1950, and at Cristobal, from 78 percent in March 1951 to 90 percent in December 1950.
Tides
During the fiscal year ended June 30, 1951, absolute tidal ranges at Canal terminals were 20.7 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 10.1 feet above mean sea level, lowest low water 10.6 feet below mean sea level, with the greatest range between consecutive tides 19.5 feet. At Cristobal, the Atlantic terminal of the Canal, the following extremes occurred: Highest high water 1.41 feet above mean sea level; lowest low water 0.89 feet below mean sea level, with the greatest range between consecutive tides 2.00 feet.
Seismology
Nine earthquake shock were felt by Canal Zone re idents during the fiscal year 1951. All were light and caused no damage in the Canal Zone area. The nine shocks felt were rated in the Canal Zone at the following intensities: Two at intensity I; two at intensity II; four at intensity III, and one at intensity V. The first shock of the


report of the governor of the panama canal 25
fiscal year rated at intensity III, occurred on July 7, 1950, at 11:27 p. in. Its point of origin was about 40 miles from Balboa. The second shock, rated at intensity III, occurred on September 15, 1950, at 4:48 a. m., with its epicenter about 90 miles from Balboa. The third shock, rated at intensity I, occurred on October 11, 1950, at 1:57 p. m., with its epicenter about 65 miles from Balboa. The fourth shock, rated at intensity III, occurred on December 7, 1950, at 2 p. m., with its epicenter about 55 miles from Balboa. The remaining five shocks had the same epicenter, being about 140 miles from Balboa off the southern coast of Panama. These five shocks, ranging in severity from intensity I through intensity V, occurred between January 4 and 7, 1951. The heaviest shock occurring on January 6, 1951, at 2:52 a. m., was rated at intensity V, and was the heaviest shock felt in the Canal Zone since May 2, 1943. Including the nine shocks which were felt in the Canal Zone, the seismographs at Balboa Heights recorded a total of 206 disturbances during the fiscal year 1951.
Marine Activities
Traffic tlu-ough the Canal, which reflects to a large extent the volume of wrork performed by the Marine Bureau, is fully discussed earlier in this report under "Statistics on Canal Traffic."
Harbor Activities
The following table shows the number of vessels handled at docks of the terminal ports of Balboa and Cristobal for the fiscal year 1951 as compared with the two previous years:
Cristobal, fiscal year Balboa, fiscal year
1951 1950 1949 1951 1950 1949
Number of vessels docked: Handling passengers and/or cargo................. For all other purposes...............-.......______ Total...................................... 1,489 1,347 1,341 1,134 1,235 1,087 348 396 370 499 343 578
2, 836 2,475 2,322 744 869 921

Aids to Navigation
On June 30, 1951, there were in service in the Panama Canal and its approaches 762 aids to navigation maintained by the Aids to Navigation Section. These were classified as follows: Acetylene gas-operated, 113; electrically-operated, 339; unlighted, 309. Included in the above are two automatic acetylene gas-operated lighthouses, located at Morro Puercos and at Jicarita Island on the coast of Panama in the Pacific approach. Two visits were made to each of these aids during the year for the purpose of inspecting and servicing the equipment.


26
report of the governor of the panama canal
Accidents to Shipping
The Board of Local Inspectors investigated and reported on 26 accidents to shipping in Canal Zone waters during the fiscal year 1951; a summary of which follows together with a comparison of accidents in the two previous years:
Cause of accidents
Collision________________
Ship struck lock wall_____
Groundings_______________
Ship struck by lock gates.
Ship struck dock__________
Ship struck canal bank___
Other causes_______.......
Total.
Fiscal year
1951 1950 1949
26
4
16 2 2 1 1 4
30
21
Inspections
Complete inspections wTere made of the hulls, powTer plants, and equipment of 21 American vessels and 19 foreign vessels, and certificates of inspection wrere issued. Twenty-eight hulls of commercial, Panama Canal and Panama Railroad vessels were inspected in dry-dock. Seventeen steam boilers were inspected and certificates issued. Eighty air tank pressure vessels and 19 carbon-dioxide fire extinguishing systems were inspected. Annual inspections were made and certificates of inspection issued to 311 motor boats.
Salvage and Towing
During the fiscal year 1951, the following towing and salvage work was performed by the U. S. Tahoga for private interests:
On July 13, 1950, the tug Tahoga was dispatched to vicinity of San Jose Island, in the Pacific, to recover anchor lost by the S. S. Triland; on October 24, 1950, while engaged in a sealine repair job for the Texas Petroleum Co. at Puerto Somoza, Nicaragua, the tug Tahoga was dispatched to the assistance of the S. S. Oregonian which had become disabled at sea. The helpless S. S. Oregonian was taken in tow and towed to the port of Balboa; on February 11, 1951, the tug Taboga was dispatched to salvage the S. S. Manabi, which was aground on the Quita Suena shoals off the coast of Nicaragua. After successful salvage operations the Taboga, with the S. S. Manabi in tow, proceeded to Miami, Fla.; en route from Miami, Fla., to Cristobal, the Taboga was ordered to proceed to St. Andrews Island, Colombia, to take in tow the S. S. Sampson. Upon arrival at St. Andrews Island on February 24, 1951, the S. S. Sampson was taken in tow by the Taboga which proceeded to the port of Cristobal.


report of the governor of the panama canal
27
Operation of Tugs
The following statistics summarize the service of tugs used in marine activities (as distinct from dredging) during the past three fiscal years:
Operating hours, fiscal year .lobs handled, fiscal year
1951 1950 1949 1951 1950 1949
Cristobal....._____......_-.........______ 6,624 2,325 5,861 3,326 5,412 3, 708 4,161 1,546 5, 270 2.200 4,829 2, 490
Balboa._______.............-.........____
Total______.........................
8,949 9, 187 9,120 5, 707 7.470 7,319

1 Corrected figure.
The above table does not include statistics for tugs which were occasionally borrowed from dredging service to assist vessels during emergencies.
Maintenance of ChannelOther Dredging Activities
Dredges were operated throughout the year on the maintenance of the Canal channel, terminal harbors, and on various special projects. In the fiscal year 1951 the total material excavated amounted to 7,514,500 cubic yards. This is 15 percent less than the amount removed in fiscal year 1950 and 28 percent less than the amount removed in fiscal year 1949. The percentage of rock excavated in fiscal year 1951 was 13 percent1 as compared with 11 percent excavated in 1950 and 6 percent in 1949. A summary of dredging operations and of equipment employed for the year will be found in tables Xos. 45 and 46 in section V.
Ordinary Channel MaintenanceCanal Prism Dredging
Atlantic District.A total of 1,455,000 cubic yards of material was removed in maintaining the Atlantic entrance of the Canal channel. This dredging was performed by the pipeline.suction dredge Miml'i. which worked ;i total of 64% days removing 1,455,000 cubic yards of material which consisted of 1,203,500 cubic yards of earth and 251,500 cubic yards of unmined rock.
Project No. S.This project involves the widening of the existing channel at the lower end of the Gatun locks, in older to provide additional maneuvering room for ships entering or leaving the locks, and also to increase the facility of discharging water from the locks. A total of 79,500 cubic yards of material was removed in maintaining project Xo. 8. This dredging was performed by the pipeline suction dredge Mirtdi which worked 3# days excavating (58,000 cubic yards of earth and 11.500 cubic yards of unmined rock.


28
REPORT OF THE GOVERNOR OF THE PANAMA CANAL
Central District.Gaillard Cut.A total of 604,100 cubic yards of material (exclusive of slide excavation) was moved in maintaining Gaillard Cut. This dredging was performed by the dipper dredges Cascadas and Paraiso as follows:
Equipment Days worked Cubic yardage dredged
Earth Rock Total
Cascadas..........___________.....-.......-- .....___ 110H 63 268, 200 141,000 113,100 81,800 381,300 222,800
Paraiso......-.......___________ ________________________
Total____..............._______.....________.......
173J.6 409, 200 194, 900 604,100

1 Unmined.
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 157,300 cubic yards of material, consisting of 83,800 cubic yards of mined rod', 54,600 cubic yards of unmined rock and 18,900 cubic yards of earth was sluiced into the Canal prism to be removed by regular dredging operations. During the fiscal year 1951 dipper dredges excavated 356,000 cubic yards from the project as follows:
Equipment Days worked Cubic yardage dredged
Earth Rock Total
Cascadas ___._________________________ 51^ 24 54, 300 24, 000 189,100 88,600 243, 400 112,600
Paraiso _________________________ .....___________
Total .........____........-..
751/2 78, 300 1 277, 700 356, 000

1 99,100 cubic yards shoremined; 178,600 cubic yards unmined.
Gatun Lake.A total of 4,000 cubic yards of material was removed in maintaining the Gatun Lake section of the channel. This dredging was performed by the dipper dredge Cascadas, which spent 1 day removing 2,900 cubic yards of earth and 1,100 cubic yards of unmined rock.
Auxiliary DredgingOther Projects
Atlantic District.Cristobal Inner Harbor.The pipeline suction dredge Mindi performed the following inner harbor dredging operations during the year:
Nature of work performed Days worked Cubic yardage dredged
Earth Rock Total
Maintenance, inner harbor----.......... ---------------- Harbor approach......______ -....... 53^ 54 1,024,100 1,3ft?, 800 159,500 71.000 1,183,600 1,434, 800
Total......................_______.................
107' i 2, 387, 900 230, 500 2, 618,400

1 Unmined.


REPORT OF THE GOVERNOR OF THE PANAMA CANAL
29
Derrick barge No. 157, with a 10-inch centrifugal pump mounted on its deck, operated as a pipeline suction dredge 13% days removing 2,500 cubic yards of earth from the submerged end of Marine Railway No. 2 in Cristobal Inner Harbor.
Cristobal Outer Harbor.A total of 2,395,000 cubic yards of material was removed in maintaining the West Anchorage, Cristobal Outer Harbor. This dredging was performed by the pipeline suction dredge Mindi, which worked a total of 71 days in excavating 2,363,000 cubic yards of earth and 32,000 cubic yards of rock.
Slides
There was no slide excavation in Gaillard Cut during the fiscal year 1951. Slide activity throughout the cut was approximately the same as in recent years. Movements were observed in six slides during the year. Numerous small breaks occurred which wTere limited to movements of minor 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, 1951, totaled 52,423,500 cubic yards.
Subsidiary Dredging Division Activities
Sand and Gravel.During the past fiscal year 21,655 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 14,851 cubic yards shipped in the previous year. There was no replenishment of the stock pile at Gamboa during the fiscal year 1951.
The Craneboat Atlas was in service 17 days excavating 15,770 cubic yards of sand at Chame Point, Republic of Panama. This sand was pumped into barges and delivered at dock No. 7, Balboa, for the Supply and Service Bureau.
Hyacinth Control and Other Activities.The Canal and adjacent waters through Gaillard Cut, Mirafiores Lake and Gatun Lake (including all dump areas) were periodically patrolled throughout the year for the purpose of keeping the growth of hyacinths under control. Log booms at the mouth 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 Mirafiores, Pedro Miguel, and Red Tank Lakes. Weekly inspection trips wrere also made of the Canal channel between Gamboa and Gatun.
It is estimated that 55,653,000 hyacinth plants were destroyed during the past year, of which 19,935,000 were pulled and 35,718,000


30
report of the governor of the panama canal
were sprayed; of the plants pulled, 6,907,000 were removed by debris cableway. Ninety-three cords of driftwood were removed by the debris cableway during the past year and in addition 170 cords of driftwood were picked up along the banks of the Chagres, Mandinga, and Cocoli Rivers, Gaillard Cut and Gatun, Mirafiores, Pedro Miguel, and Red Tank Lakes.
Ferry Service
Thatcher Ferry service was continuous throughout the past year with only two minor interruptions, one of 7 hours' duration and the other of 9% hours' duration. During these periods of suspended service, all traffic was routed over Mirafiores Bridge. 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 Presidente Porras, on a daily schedule of two ferries in continuous service.
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
1951 1950 1949
Single trips made ____________......___________.....___....... 51,809 33, 674 53, 793

Vehicles carried:
Panama Canal vehicles____________.........---------......---- 10, 237 9, 422 10, 681
United States military vehicles........---------.........------- 29, 548 22,152 33, 995
Commercial trucks.......---......--........-.......------- 95,008 66,156 101, 928
Commercial passenger cars.......------------------------------- 154,197 103, 601 147,414
Private cars__________________________.........------------------ 301,308 200, 693 255,066
Total vehicles carried ________________________________________ 590, 298 402,024 549,084
Total passengers carried......................------------........ 3,131,095 2, 215,392 2,922, 970


Section II
BUSINESS OPERATIONS
The business enterprises operated by the Panama Canal and by the Panama Railroad Company embrace a number of activities 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 Railroad employees; the handling of cargo and allied operations; the operation and management of a railroad line; and a steamship line between NewT York and the Isthmus.
The Canal and the Railroad are separate organizations, but the administration of both organizations is vested in the Governor of the Panama Canal, who is also president of the Panama Railroad Company.
PANAMA CANAL BUSINESS OPERATIONS
Business operations of the Panama Canal are conducted separately from operating activities pertaining directly to the transiting of vessels and the government and sanitation of the Canal Zone. The annual appropriation acts for the Panama Canal authorize the expenditure 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. During the fiscal year 1951 Panama Canal business operations produced a net revenue of $637,867.
Mechanical and Marine Repair Work Gross Revenues
On the basis of revenues received for work accomplished, there was an over-all decrease of 36.9 percent in the volume of business of the Industrial Bureau in comparison with the fiscal year 1950. This decline in business volume was reflected in all classes of revenues.
31


32
report of the governor of the panama canal
The more important decreases occurred in the reduction in revenues from the United "States Navy and commercial interests, which declined 60.6 and 17.4 percent, respectively, in comparison with the previous fiscal year.
The following table show's the class and source of work for the past two fiscal years:
Fiscal year 1951 Fiscal year 1950
Revenues Percent of total Revenues Percent of total
class Marine -___.................____________________ $2, 032,330 14, 501 180, 588 611,051 71.6 .5 6.4 21.5 $3, 278, 274 336,087 234, 724 645, 868 72.9 7.5 5.2 14.4
Railroad______.........-......________________________
Fabricated stock.............________.................
Other work.....___........-......-.......___________.....
Total ____________________.....-.............._
2,838, 470 100.0 4,494,953 100.0
origin Panama Canal ___....._________..... ___.......___
1, 206, 952 74,850 114,198 514,107 13, 325 255 914, 783 42.5 2.6 4.0 18.1 .5 1, 460, 525 382, 058 232, 849 1,303,243 7,920 400 1,107,958 32.5 8.5 5.2 29.0 .2
Panama Railroad........______.............
Other United States departments: Army_________.........._________________ --.......
Navy______________________......_____________
Air Force________.........................
All other..................-....._________
Commercial ____.....______.......___________....... 32.3 24.6
Total .......________________________
2,838, 470 100.0 4, 494, 953 100.0

Marine Repair Work
The work load for commercial interests continued to follow the declining trend established in the previous fiscal year. This trend, insofar as marine work for private interests is concerned, has resolved into a pattern of having only the minimum essential voyage repairs or the critical emergency or breakdown repairs performed by the Industrial Bureau. Based upon the nature, type, size, and frequency of occurrence of the various jobs of this nature performed during the fiscal year 1951, it is believed that the downward trend in commercial workload will level off and continue at approximately the level obtained in the fiscal year 1951.
The fiscal year 1951 was the first complete year of operation under the consolidation of the Balboa and Cristobal shops at Cristobal, and it is notable that all demands for repairs and services from commercial interests were handled expeditiously, regardless of which side of the Isthmus the work was performed.
The availability of dry dock space at Cristobal shops for commercial use was limited throughout the year due primarily to the large backlog of scheduled repairs to Panama Canal floating equipment and the inactivity of the Marine Railway which was under


REPORT OF THE GOVERNOR OF THE PANAMA CANAL 33
repairs for a period of approximately 4 months. There were no serious requests for the use of dry dock No. 1 at Balboa during the year. On several occasions, due to accidents to vessels, either in Canal transit or at sea, this dry dock could have been used but in all cases repairs of a temporary nature were effected which enabled the vessel to continue its voyage.
The normal work load usually provided by the United States Navy declined during the year. The major job accomplished for the Navy was the completion of the floating dry dock AFDM-9 which had been careened for transiting the Canal in the fiscal year 1950. The work provided by the completion of the AFDM-9 plus the major overhaul to three other naval craft and the routine dry docking for miscellaneous repairs to locally based craft provided a valuable backlog of work during the year.
The work performed for the United States Army declined substantially during the year, providing only 4 percent of the total wrork load. This work, which formerly provided a stable work load for the Industrial Bureau, has declined to such an extent that its importance as a dependable source of work has become quite negligible.
The revenue derived from Panama Canal sources continued to provide the principal support for the Industrial Bureau in the fiscal year 1951. The dry docking, repair and overhaul of Panama Canal floating equipment provided a steady volume of work during the year. The greater part of this work consisted of the dry docking for general repair of the dredge Mindi, the ferryboat Presidente Porras, and numerous barges for the Dredging Division. Balboa Dry Dock No. 1 was used for the dry docking of two spare mitre gates from the Locks Division for cleaning and painting.
The following statement shows the number of vessels and total "ship days" for each category of vessel repaired for the fiscal years 1950 and 1951:
Fiscal year 1951
Fiscal year 1950
Number
of ships
Ship days 1
Number of ships
Ship days 1
Commercial U. S. Army U. S. Navy.
729 9 03 28
1.354 159 391 747
097 55 62 60
1,796 395 923
1,224
Panama Canal
Total
2,651
874
4. 33*
1 Total days consumed in repairing number of ships indicated.


34 report of the governor of the panama canal
Dry Docks and Marine Railways
The following table summarizes dry dock and marine railway operations during the fiscal year 1951, with comparative figures for the two preceding years:
[Number of vessels dry docked]
Fiscal year 1951 Fiscal year
Balboa Drv Dock i Cristobal Dry Docks and Marine Railways Total 1950 total 1949 total
U. S. Army___________________________________________ 9 12 27 9 12 27 18 20 37 25 16 58
U. S. Navy__________________________________________
Commercial____.....- _________________________
Total outside interests..........._____ --
48 20 48 20 75 25 1 99 22 1
Panama Canal........_____.......____....._________
Panama Railroad____________________________________
Grand total____________ ____................
68 68 101 122

' Balboa Dry Dock is maintained on a standby basis.
Shop Work
Shop wTork for the fiscal year 1951 consisted of the usual manufacturing work performed for the storehouse, plus fabrication of shore pipe, pontoons, balljoints, and other miscellaneous castings and forg-ings required by the Dredging Division. For the Locks Division a large number of quoin plates were planed and other miscellaneous parts manufactured for the Atlantic Locks overhaul.
Plant Improvement
The transfer of the various shop machine tools and related equipment which was started in the latter part of the fiscal year 1950 in connection with the consolidation of the Industrial Bureau's shops at Cristobal, was completed in the fiscal year 1951. The steel cradle for the marine railway No. 2, Cristobal shops, was rebuilt and placed in operation during the year. Plant maintenance work was limited to absolutely essential items, and the plant improvement program was reduced to improvements most urgently required.
Electrical Work
The principal activities of the Electrical Division are the operation and maintenance of the electric light and power system, the construction and maintenance of electrical facilities as required by the Panama Canal and other government agencies, and the performance of services for vessels undergoing repairs at the Canal terminals. The Electrical Division operates and maintains the telephone, tel-


REPORT OF THE GOVERNOR OF THE PANAMA CANAL 35
pgraph, electric clock, and printing telegraph systems owned by the Panama Railroad Company.
Following is a comparison of the two principal classes of expenditures of the Electrical Division for the past three fiscal years:
Fiscal year
1951 1950 1949
Electrical construction ami maintenance work____.................. Maintenance and operation of electrical power system.........._____ $1,778. 313 1,239,809 $1,757, 350 1,493,020 $1,799,459 1,456,618
Among the principal projects of electrical work carried on during the year wrere the modernization and rehabilitation of the telephone and electrical facilities of the Pacific Locks; reinstallation of air-raid sirens on both the Atlantic and Pacific sides of the Isthmus; installation and relocation of equipment, and alterations and extensions to the electrical system of the Cristobal shops; the rehabilitation of the electrical distribution and telephone systems of the Gatun Locks; the relocation and protection of electrical facilities in the new construction area in Ancon; the installation and maintenance of electric ranges: the relocation of duct line on Whitlock Street, Cristobal; the rehabilitation and modernization of electrical facilities of Sections A, B, and D, Gorgas Hospital; the improvement of street-lighting systems in the various townsites; the wiring and installation of electrical facilities of the newly constructed quarters for both LT. S.-ratc and local-rate employees.
Information concerning the principal construction projects undertaken and the operation of the power systems are given on page 21 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 indicated by the following table:
Fiscal year
1951 1950 1949
Number of purchase orders placed............................ Value of orders placed___................... 9,440 $14,012, 903 13, 619 $10, 099, 360 300 $650, 292 $35, 577 8,142 $4,800. 013 14,544 $8.232,577 626 $674, 42K $24, 431 8, 667 $8,118,372 15. 769 $12,202,5.53 680 $638,898 $41,614
Number of disbursement vouchers prepared.................. Value of above vouchers......................................
Number of collection vouchers prepared......................
Cash discounts taken.........................................



36 REPORT OF THE GOVERNOR OF THE PANAMA CANAL
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 commercial shipping, as well as to units of the United States armed services. The following figures indicate the volume of material and supplies cleared through the Stores Accounts during the past 3 years:
Fiscal year
1951 1950 1949
general storehouses
Gross revenuessales and issues_____________.........------ $11,243,906 $10, 604, 991 $9, 835, 253
Cost of materials, plus operating expenses----------.......---- 10,888, 390 10, 445,175 9, 545, 261
Net revenues___.............-----.....-......--------- Inventory as of June 30 1_____________......---..............-- 355, 516 159,816 289, 992
11,085, 795 10,442, 482 12,822,149
' This includes all material and'supplies of the Panama Canal, by far'thergreater 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 $901,467. Replacements 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 pipelines and pumping plants owned and operated by the Panama Railroad Company.
In the fiscal year 1951 a total of 11,404,842 barrels of fuel and Diesel oil were handled by the terminal tank farms, as compared with 9,792,523 barrels in the preceding year. The tank farms also handled 57,795,744 gallons of gasoline and kerosene in the fiscal year 1951, in comparison with 41,415,768 gallons in the preceding fiscal year.
See table No. 47, section V, for further statistics on the activities of the terminal tank farms.
Building Construction and Maintenance
The principal projects of building construction for the Panama Canal completed by the Building Division in the fiscal year 1951 are shown in the following paragraphs. Unless otherwise specified, the items listed are new projects:


REPORT OF THE GOVERNOR OF THE PANAMA CANAL
37
Ancon-Balboa.Three type-428, three type-429, four type-430, three type-431, and three type-432 composite quarters, San Juan area; alteration and conversion of one four-family concrete quarters from two-bedroom to three-bedroom type; covered passageways, Balboa high school and junior college; alterations to Balboa commissary, Balboa substation and Civil Affairs building; foundations for clinics-auditorium and obstetrical buildings, Gorgas Hospital.
Diablo Heights.One type-322, one type-323, and one type-324 masonry quarters.
Ijl Boca.Covered passageways, occupational high school; refrigerator room, Pacific Bakery; renovation and repairs, La Boca commissary.
Pedro Miguel.Construct electrical distribution rooms, Pedro Miguel Locks; construct transformer houses and rooms, Pedro Miguel and Mirafiores Locks.
Margarita.Gasoline service station.
Cristobal.Demolish and replace building No. 5067, Motor Transportation Division; saw mill, Industrial Bureau; alterations to service station; manufacture 1,000 pallets, Terminals Division.
Camp Coiner.Eleven type-145, five type-146, ten type-147, nine type-148 composite, and two type-136 masonry local-rate quarters.
In addition to the principal projects listed above which wTere completed during the year miscellaneous work was also performed for the Panama Canal and Panama Railroad Company units, the armed services and employees. The volume of operation as measured in financial terms totaled $3,667,702, as compared with $4,280,785 in the fiscal year 1950.
The total volume of work for the past three fiscal years is summarized in the following table:
For Canal divisions.................................................
For Panama Railroad Company............_____...................
For other departments of the Government, employees and others____
Total...................______............______..............
Fiscal year
1951 1950 1949
$2, 732, 690 226, 466 708, 546 $3,016,532 382,063 882,190 $4, 588, 590 225,615 1,098, 200
3, 667, 702 4, 280, 785 5,912, 405
Note.Includes funds spent from capital allotments which are not taken up in net revenues appearing in table 15, sec. V.
Quarters
For U. S.-rate employees.Replacement of quarters was continued, a total of 29 apartments in 21 houses of 1- and 2-family types having been completed during the year in the Balboa district. During the year an agreement was completed with the Air Force whereby, under a revokable license for a period of 5 years, 22 houses comprising 29
98383052---4


38 report of the governor of the panama canal
apartments were secured for U. S.-rate quarters accommodations on the Atlantic side. At the close of the fiscal year, 67 apartments, 33 in the Cristobal district and 34 in the Balboa district, were under construction in continuation of the replacement program.
On June 30, 1950, there were 27 applications for family quarters from regular employees in all districts, and on June 30, 1951, 33 applications were on file. These figures represent applications from regular employees for assignment within their official work districts, a few of whom occupy quarters temporarily elsewhere, ard all of whom are requesting particular types of quarters. In addition there were 279 applications on file for provisional or temporary assignment from employees of other agencies who are permitted to occupy available Canal quarters in accordance with assignment rules.
Under existing regulations, employees are required to have an assignment to family quarters before permission is granted for their families to come to the Canal Zone.
For local-rate employees.Construction of new housing was continued during the year, with 52 completed family apartments being occupied in the Camp Coiner area. In addition, four 12-family U. S.-rate quarters in Gamboa were transferred to local-rate use. At the close of the year, there were 182 new apartments in duplex houses in Silver City under construction.
The demand for quarters for local-rate employees still greatly exceeds the supply. As of June 30, 1951, there were 808 applications for family quarters and 478 applications for bachelor quarters, a total of 1,286, as compared with 1,380 on file June 30, 1950.
Motor Transportation
The Motor Transportation Division is charged with the operation and maintenance of motor transportation for the units of the Panama Canal and Panama Railroad Company. The centralization of transportation facilities in this Division and the requirement that it be operated on a self-sustaining basis have been 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, for contractors engaged in work for the Government of the Canal Zone, and for other United States Government agencies.
The public transportation system of privately-owned busses operating 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; 63 busses were operating as of June 30, 1951.


report of the governor of the panama canal 39
Revenues of the division during the past year, including motor repair shop activities, totaled $1,829,891, and the expenses, $1,781, 730, leaving a net revenue of $48,161 for the fiscal year 1951.
During the fiscal year 105 cars and trucks were purchased and 50 cars and trucks were retired. At the close of the fiscal year 774 cars and trucks, 31 trailers, and 5 motorcycles were on hand.
Panama Railroad Press
Effective July 1, 1950, the Panama Canal Press became a business unit of the Panama Railroad Company under the title Panama Railroad Press.
The operations of the Panama Railroad 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 connection with the operation of the Panama Canal and the Panama Railroad Company. In addition to regular reproduction and printing work performed for the Panama Canal and the Panama Railroad Company units during the year, the plant supplied printing for the Armed Forces and other Government agencies on the Isthmus.
The following is a summary of the financial operations of the Panama Railroad Press during the past 3 years:
Fiscal year
1951 1950 1949
Gross sales revenues........________ .____........... $412,356 400,428 $667,464 654,319 $630,145 614, 634
Total expenses (including cost of materials used in manufacturing and cost of stationery stores processed)________..................._________
Net revenues...............'........................._........._____ 11,928 13,145 15, 511

Revenues Derived From Rental of Lands in the Canal Zone
Rentals for building sites and oil-tank sites in the Canal Zone totaled $65,902 for the fiscal year 1951-as compared with $61,412 for the fiscal year 1950. Rentals from agricultural land in the Canal Zone totaled $5,572 as compared with $7,415 for the preceding fiscal year. At the close of fiscal year 1951 there were 550 licenses covering 1,114 hectares of agricultural land in effect in the Canal Zone. This is a reduction of 38 in the number of licenses as compared with the previous fiscal year and a reduction of 74 hectares in the area held under licenses. This reduction is largely the result of the policy adopted as a health measure in May 1935, that no more licenses for agricultural land would be issued and that holdings under licenses previously granted may not be transferred.


40
report of the governor of the panama canal
BUSINESS OPERATIONS UNDER THE PANAMA RAILROAD COMPANY
The Panama Railroad Company 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 Panama. When the concessions, rights, and property of the New French Canal Co. were purchased in 1904, ownership of the stock of the Panama Railroad Company wras transferred to the United States Government. On June 30, 1948, the Company was reincorporated pursuant to section 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 terminal 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 oil and coaling plants, hotels, a telephone 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 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 1951 amounted to $1,548,846 in comparison with $1,627,920 for the preceding year. Revenue freight totaled 230,112 tons as compared with 219,541 tons during 1950, an increase of 10,571 tons. This decrease in gross revenues, in face of a gain in revenue freight tons, was the direct result of a reduction in the railroad's proportionate share of through ocean freight. This


report of the governor of the panama canal 41
reduction in tariff, which became effective in the latter part of the previous fiscal year had little effect on the gross revenues of fiscal year 1950, but contributed strongly to the decline in gross revenues in the fiscal year 1951.
Comparative statistics covering the significant features of railroad operations during the past 3 years are presented in the following tables:
Average miles operated, Colon to Panama Oross operating revenues.................
Number of revenue passengers carried:
First class............................
Second class........................-.
Total.........______................
Revenue per passenger-train mile.......-.
Revenue per freight-train mile------......
Passenger-train mileage_______............
Freight-train mileage____.....____________
Work-train mileage________________________
Total train mileage...........-.....
Switch locomotive miles_.................
Fiscal year
1951 19.50 1949
.50. 93 $1, 548, sir, .50. 93 $1,672, 920 ,50.93 $2, 105, 283
120,771 325, 641 96,738 220, 792 126, ,508 270, 2.54
446,412 317,530 396, 762
$2.03 $21. 21 167, 485 47, 463 1. 228 $2. 27 $22. 72 132, 247 49,175 2,643 $2. 67 $27. 49 151,379 53, 304 3,695
216,176 184,065 208, 378
99, 917 102, 480 109,516
Harbor Terminals
The Terminals Division handles the dock and harbor activities of the Panama Railroad Company at the two terminals of the Canal. The following statistics summarize the results of operations for the past 3 years:
Fiscal year
1951 1950 1949
Total revenues ________________.....____.........______......___ $3, 179, 246 $2, 493, 974 $2, 621,919
Total cargo handled and transferred across docks______________...... Cargo stevedored by Panama Railroad Company.............._____ Cargo ships handled. ____....._____________......_______......_____
Tons 1, 332, 263 1, 338, 255 Tons 1,015,714 792, 474 Tons 1,189, 266 552,161
2,442 26 1,755 29 2,455 78
Agency services furnished to vessels.................................
Coal and Oil-Handling Plants
Effective July 1, 1950, the oil-handling plants activities were transferred from the Panama Canal to the Panama Railroad Company, and consolidated with the coaling plant operations of the Panama Railroad Company.


42
report of the governor of the panama canal
The volume of coal and oil plant operations for the past two fiscal years is shown in the following table:
Gross revenues.
Coal sold (tons)........---------------
Coal purchased (tons)--------.....
Petroleum products handled (barrels) -
Fiscal year
1951
$873, 934
3,814 9, 493 14,208, 682
1950 i
$294, 330
11,860 8, 089
1 Does not reflect Oil Handling Plant operations.
Telephone System
Gross revenues from the operation of telephones, electric clocks, and electric printing telegraph machines totaled $364,620, as compared with receipts of $368,360 for the preceding fiscal year.
During the fiscal year 1951, 1,892 telephones were installed and 1,795 were discontinued or removed, resulting in a net increase of 97 telephones for the year. At the end of fiscal year 1951, there were in service 6,184 telephones, as well as 41 electric clocks and 28 automatic printing telegraph typewriters. Telephone calls averaged 119,861 calls per day in the fiscal year 1951 and 104,975 calls per day in the fiscal year 1950 during the sample days tested. This represents an average of 19.3 calls per telephone per day in the fiscal year 1951, as compared with 17.2 in the fiscal year 1950.
Commissary Division
The primary function of the Commissary Division of the Panama Railroad Company is to supply food, clothing, and household goods to meet the needs of United States Government personnel and various Government departments on the Isthmus. In carrying out this function the Division operates wholesale warehouses, cold-storage plants, a laundry, gasoline service stations, and a dairy, as well as retail stores in each of the Canal Zone towns. Sales are restricted 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 commercial steamships passing through the Canal or calling at its terminal ports.
Sales
Net sales for the fiscal year 1951 totaled $22,015,043, compared with $24,998,523 for the previous fiscal year. The value of merchandise on hand June 30, 1951, was $3,979,177 compared with $3,498,633 at the close of the fiscal year 1950. The ratio of sales to an average monthly inventory of $5,357,800 indicates a theoretical


report of the governor of the panama canal 43
stock turnover of once in 12.7 weeks. The distribution of sales for the past three fiscal years is shown in the following table:
U. S. Government (Army and Navy)
The Panama Canal...................
The Panama Railroad Company_____
Individuals and companies...........
Commercial ships_____................
Employees............................
Gross sales......................
Less discounts, credits, etc.......-----
Net sales....................
Fiscal year
1951 1950 1949
$700, 397 3,051,3(15 217, 790 058,200 541,059 17,635, 215 $1,654,425 3,158,531 263,269 689,576 561,784 19,562,560 $2,182,868 3, 772,976 503,501 1,195, 550 1,029,970 25,102,830
22, 803, 906 788,923 25,890,145 891,622 33,787,695 945,930
22,015,043 24, 998,523 32,841,765
Purchases
Purchases during the year aggregated $17,176,276, an increase of $405,028 over the previous fiscal year. The following tabulation shows the value of the various classes of merchandise purchased for the past three fiscal years:
Fiscal year
1951 1950 1949
Groceries.. ___________________...............________________ $5,592,614 826,876 1,653,094 2,752,817 884, 298 1,886,259 1,186,073 348,699 19, 785 1,248,288 $5,907, 799 925,405 1,070,504 2,429,162 798,099 2, 409,429 1,187,560 438,895 68,870 1,482, 537 52,988 $8, 770.902 1,007,349 1,678,455 3,137,406 848,513 4,338,643 1,848,197 665,807 152,262 2,406, 725 135,164
Candies and tobacco ____......._____________________________
Housewares _________________________________________________
Drygoods____________________________................_________
Shoes_____________________________________________......_____
Cold storage ____________________....._______________________
Raw material _________________________________......._____
Cattle........................................................
Milk and cream. _________________________________.....______
Dairy products......._______________________________________
Dairy farm herd ________....._______________________________
Gasoline and oil __________________________________________ 777,473
Total.......................___________________________
17,176, 276 16, 771, 248 24,989,483

Hotels
The Hotels Tivoli and Washington wrere operated by the Panama Railroad Company throughout the year. Effective January 15, 1951, the Hotel Tivoli ceased catering to the general public in accordance with treaty agreements with the Republic of Panama and became a Guest House. Its services are now offered only to those persons having Canal Zone privileges and their guests. These hotels are an essential adjunct to the Canal, providing necessary accommodations for employees, visiting Government officials, and others.
The gross revenue from hotels wyas $667,507, as compared with $857,998 in 1950, and the number of guest days was 56,243 compared with 77,612 in 1950.


44 REPORT OF THE GOVERNOR OF THE PANAMA CANAL
Panama Line
The gross operating revenue of the Panama Line for the fiscal year was $4,917,753, and the gross operating expenses totaled $5,130,434, resulting in a net loss of $212,681.
Freight carried during the year totaled 198,929 tons and passengers carried numbered 12,004. Freight for the account of the Panama Canal and other departments of the United States Government in the Canal Zone was carried at tariff rates, but passengers were carried at reductions from tariff rates ranging from 25 to 75 percent.


Section 111
ADMINISTRATION
The Panama Canal organization was established, effective July 1, 1950, by the Governor of the Panama Canal by circular No. 760 under powers delegated to him by Executive Order No. 10101 of January 31, 1950, to determine the internal organization of the Panama Canal. By the same circular various functions of the Panama Railroad Company were assigned to Canal units and others to specific company units with the approval of the Board of Directors.
The organization of the Panama Canal which was in effect throughout fiscal year 1951 comprised the Office of the Governor-President, including staff units; four administrative units, namely, Finance Bureau, Personnel Bureau, Administrative Branch and Magistrates' Courts; seven operations units, namely, Civil Affairs Bureau, Health Bureau, Marine Bureau, Engineering and Construction Bureau, Supply and Service Bureau, Community Services Bureau, Industrial Bureau; and the Washington Office of the Panama Canal. The Panama Railroad Company, a Government-owned corporation operating a steamship line betwTeen NewT York and the Canal Zone and a railroad as well as other business enterprises on the Isthmus, was a distinct agency, but wras closely affiliated with and operated as an adjunct to the Panama Canal. Two units of this corporation, the Railroad and Terminals Bureau on the Isthmus, and the New York office, were parts of the combined organization.
Office of The Governor-President
By law the Governor of the Panama Canal was President of the Panama Railroad Company. His principal assistant was the Lieutenant Governor, who was also the Second Vice President of the Panama Railroad Company. The Lieutenant Governor was responsible for securing efficiency and economy in the management of all activities of the Panama Canal and as Second Vice President had like responsibilities for the Isthmian activity of the corporation.
This office included an executive secretary with administrative responsibilities in external relations of the two agencies; an executive assistant with administrative responsibilities pertaining to internal administration and coordination; a military assistant, aide to the Governor for liaison with the Armed Forces; and five staff groups for management, legal, safety, and civil intelligence functions.
45


46 report of the governor of the panama canal
Administrative Units
There were four administrative units in the revised organization as follows:
Finance Bureau.The Finance Bureau was responsible for matters relating to accounting, auditing, budget preparation, collection and disbursements, settlement of claims and property and inventory control for the Panama Canal and the Panama Railroad Company.
Personnel Bureau.The Personnel Bureau was responsible for the administration of personnel functions and practices of the Panama Canal and the Panama Railroad Company, and acted as a liaison agency in personnel matters between the Canal-Railroad organizations and the Civil Service Commission.
Administrative Branch.The Administrative Branch was responsible for the administration of general office functions, including communications and records, and office services of the Panama Canal and the Panama Railroad Company.
Magistrates' courts.The magistrates' courts, which are established by law in the Canal Zone for preliminary hearings, and limited civil and criminal actions.
Operations Units
The operations units of the combined Canal-Railroad organization were comprised of eight bureaus designated as follows:
Civil Affairs Bureau.The Civil Affairs Bureau was responsible for the administration of the police and fire protection units, the Canal Zone schools system, the postal service, the shipping commissioner functions, the immigration service, the public libraries, the public administrator function, the laws and regulations respecting foreign corporations and respecting sales of securities, and the issuance of designated types of licenses.
Health Bureau.The Health Bureau was responsible for safeguarding health and providing medical and dental care and treatment to authorized persons; supervision and control pertaining to sanitary affairs of the Canal Zone and the maritime sanitation and quarantine in the ports and waters of the Canal Zone; and the administering of health and sanitary matters in the cities of Panama and Colon in conformity with existing treaties and other agreements between the United States and the Republic of Panama.
Marine Bureau.The Marine Bureau of the Panama Canal was responsible for the transiting of ships through the Canal, the handling of maritime traffic of the terminal ports and all maintenance facilities of the Canal used by shipping; the operation and maintenance of the locks and related installations and facilities; the dredging, maintenance and improvement of the Canal channel, the terminal harbors


report of the governor of the panama canal 47
and adjacent waters; offshore marine salvage; the establishment and maintenance of buoys and other aids to navigation, and the operation and maintenance of ferries.
Engineering and Construction Bureau.The Engineering and Construction Bureau was responsible for the design, const met ion, inspection, and maintenance of buildings and' structures, and roads, streets and sidewalks; the construction, installation, operation, and maintenance of public utilities, including water, sewerage, and electric power systems; and the telephone system on the Isthmus.
Supply and Service Bureau.The Supply and Service Bureau was responsible for the procurement, storage, and distribution of supplies and materials; the operation of warehouses and other issue and service facilities; the operation of central garages and repair shops for motor vehicles; the operation of commissaries, including procurement, warehousing, sales and service; the operation of gasoline service stations, hotels, printing and binding facilities; and the procurement and sale of coal.
Community Services Bureau.-The Community Services Bureau was responsible for the housing of employees, care of public buildings and grounds, clubhouses, the operation of garbage, trash collection, and street-cleaning facilities; the administration and maintenance of cemeteries; the operation of the Experiment Gardens; and transactions relating to the use and occupancy of real estate in the Canal Zone and for certain United States lands in the Republic of Panama.
Industrial Bureau.-The Industrial Bureau wTas responsible for all matters pertaining to the design, construction, and repair of ships and floating plant; heavy machine work; manufacture of gases; manufacture, inspection, and repair of instruments, machines and equipment of all units requring the use of mechanical or marine shop, drydock, or repair-wharf facilities.
Railroad and Terminals Bureau.The Railroad and Terminals Bureau was responsible for the operation of the Panama Railroad, including the maintenance of roadway and rolling stock; operation of cargo piers and docks; marine bunkering; the conduct of steamship agency functions as Canal Zone agent for the Panama Line and for other steamship lines; and the handling of the Company's real estate.
Offices in the United States
The two offices in the United States were as follows: ]Yashington Office, the Panama Canal.- The Washington Office, the Panama Canal, had charge generally of all duties and functions relating to the business of the Panama Canal in the United States, including governmental and other liaison work; the purchase and inspection of materials and supplies and procurement of services; and the recruitment of personnel in the United States.


48
report of the governor of the panama canal
New York office.The New York office of the Panama Railroad Company was under the supervision of the Vice President, who wras responsible for the administration, management, and operation of the Panama Line, and the procurement, in the United States, of materials and supplies for the Panama Railroad Compny, including the commissaries and other units on the Isthmus.
PROPOSED REORGANIZATION OF THE PANAMA CANAL AND PANAMA RAILROAD COMPANY
Legislation to govern future operations of the Canal and Railroad was enacted in Public Law No. 841, Eighty-first Congress, which provides for the maintenance and operation of the Panama Canal by the present corporate adjunct of the Panama Canal, as renamed; and reconstituting the agency charged with civil government of the Canal Zone. Effective July 1, 1951, under the terms of Public Law No. 841, and upon the promulgation of Executive Order No. 10263, dated June 29, 1951, the revised organizations are to consist of the Panama Canal Company and the Canal Zone Government. Briefly, the revised organization will be as follows: The Panama Canal Company.The Panama Canal Company is the corporation through which all functions other than those of a strictly governmental nature will be performed. The activities of the Company are to be grouped into three main categories, as follows: (1) Canal activitieswhich will consist of the functions directly related to the Canal as a waterway and to transiting of vessels, including the marine operations, maintenance of Canal channel, operation and maintenance of the locks, and other similar services. (2) Commercial activities-which will consist of the various subsidiary functions serving the Canal activities, employees, and other interests in the Canal Zone. These include all the functions of the present Panama Railroad Company, together with those transferred from the Panama Canal, such as the Canal's supply and service activities, utilities (electric power and water), general repair and construction activities, clubhouse operations, etc. (3) Housing activitywhich will furnish housing to employees of the Company and Canal Zone Government in the Canal Zone.
Canal Zone Government.The Canal Zone Government will include the usual functions of government and public health, such as civil affairs, schools and physical education, police and fire protection, hospitals and other health services, highways and sewers, postal system, and all capital items pertaining to this group of functions.


REPORT OF THE GOVERNOR OF THE PANAMA CANAL 49
CHANGES IN ADMINISTRATIVE PERSONNEL
Mr. Edward A. Doolan was appointed Personnel Director on July 1, 1950, vice Mr. Seymour Paul, retired.
Mr. Henry L. Donovan was appointed Community Services Director on July 1, 1950.
Col. George K. Withers, United States Army, was appointed Engineering and Construction Director on July 7, 1950, vice Col. Howard Ker, United States Army, relieved from duty with the Panama Canal.
Mr. Edward N. Stokes was appointed Railroad and Terminals Director on August 1, 1950, vice Mr. Lyle A. Prather, retired.
Mr. Forrest G. Dunsmoor was appointed Executive Assistant to the Governor-President on February 1, 1951, vice Mr. Ernst A. Erbe, ret ired.
Mr. Jerome F. Prager was appointed Superintendent of Storehouses on February 8, 1951, vice Mr. Walter A. Smith, retired.
Mr. Richard Sullivan was appointed General Manager, Commissary Division, on March 4, 1951, vice Mr. Vincent J. Clark, transferred to the New York office.
Mr. Lewis B. Moore was appointed Supply and Service Director on March 4, 1951, vice Mr. Lew W. Lewis, retired.
Capt. Marvin J. West, United States Navy, was appointed Chief, Navigation Division, on June 1, 1951, vice Capt. Robert S. Bertschy, United States Navy, relieved from duty with the Panama Canal.
FORCE EMPLOYED AND RATES OF PAY
The force employed by the Panama Canal and Panama Railroad Company continued to decrease. A total of 18,792 persons was employed by these 2 agencies as of June 30, 1950, wdiile the force report of June 30, 1951, recorded a total of 18,735, a reduction of 57, or 0.3 percent.
The highly diversified activities of the Canal-Railroad organization include scores of different functions, and almost every conceivable employment category will be found in the organization. For many years only citizens of the United States wrere eligible for employment in executive, supervisory, professional, subprofessional, and clerical positions. For several years past, however, properly qualified citizens of the Republic of Panama have been eligible for appointment to these positions, in which special educational, training, or other high qualifications are a requisite. The rates of pay for positions in these categories are based on equivalent or closely similar rates prevailing in the Federal service in the United States, plus, normally, 25 percent differential. Effective October 1, 1950, however, payment of the 25 percent differential was discontinued to persons not citizens of the


50 report of the governor of the panama canal
United States. Positions such as those occupied by semiskilled workers, helpers, laborers, and other positions not requiring the services of highly skilled workers or those requiring special training or other qualifications are included in another group. The rates of pay for employees within the latter 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 a scattering of nationals of many other countries will be found in these positions.
EMPLOYEES PAID AT U. S. RATES
The force of the combined organizations of the Panama Canal and Panama Railroad Company, numbered 4,216 on June 30, 1951, as compared with 4,322 on July 1, 1950, a decrease of 106, or 2.5 percent. The number in each organization at year end is shown in the following tabulation:
As of June 30, 1951 As of July 1, 1950 Difference
The Panama Canal ........ 3,637 579 3, 746 576 -109 +3
Panama Railroad Company.......__________________......... Total .....____________.....____.....______________
4, 216 4, 322 -106

1 Reorganization was effected July 1, 1950, under authority of Executive Order No. 10101.
The number of full-time employees paid at U. S. rates is shown according to function in table No. 48, section V.
Additions to and Separations from Force
The following table for the Canal-Railroad organization gives a summary of the additions to and separations from the force paid at U. S. rates for the fiscal year 1951:
Additions-
Separations:
Resignations.......-.......-...........----.........- -.........-.....
To enter military service.......------............--..................
Reduction in force----.......-----------.............................
Termination of temporary employment or reassignment--------.....
Revoval for cause________.....----------.............-----......------
Retirement:
Age..............-..............-.....-.........-...............-
Disability......-------.........-...........-.............-......
Optional or voluntary..........................................-
Separationdisability...............................................
Disqualification......................................-...........-----
Transfer (to other departments of Government)......................
Termination (administration policy of Panama Canal, 5 years service, age 62).................--.........----.................----.....-
Death........................................-...................
Other................................................-..............-
Total separations. Net separations. ..
Panama Canal
821
674 1 6
131
3
28 31 32
923
102
Panama Railroad
117
92
0 1 1
6 9 5 1 1 1
1
3 0
121
Total
938
766 1 6
132 4
34 40 37 8 1 2
1,044 100
Note.In addition to these figures, there were 154 additions and 92 separations of employees on a part-time or irregular basis.


report of the governor of the panama canal 51
Turnover in Force
Based on an average aggregate force of 4,287 and 1,044 terminations for the year, exclusive of part-time and irregular emplo3rees, the total turnover rate for 1951 of this group of employees was 24.4 percent, as compared with a turnover rate of 19.3 percent for the fiscal year 1950. Voluntary terminations for fiscal year 1951 totaled 805, a rate of 18.8 percent, as compared with 8.8 percent in fiscal year
1950. Involuntary terminations for 1951 totaled 239, a rate of 5.6 percent, as compared with 10.5 percent for 1950.
Recruiting
Of the total full-time additions to the force during the fiscal year
1951, 254, or about 27 percent, were effected through United States recruitment, and 684, or about 73 percent were employed through local recruitment. On the basis of 938 full-time employments, the recruitment of this group of employees in the fiscal year 1951 represents an accession rate of almost 22 percent. Including the 154 part-time employees who were added, the accession rate was slightly more than 25 percent, as compared with slightly more than 11 percent for the previous fiscal year. This increase in recruitment may be accounted for, in general, by the replacements necessary as the result of higher turnover among employees.
At the close of the year there were requisitions pending in the Washington Office for 218 employees. Of these, 51 positions were for the Locks Division, 42 for the Engineering Division, 39 for the Schools Division, 32 for the Health Bureau, 18 for the Electrical Division, 15 for the Industrial Bureau, and the remainder to fill miscellaneous vacancies.
Adjustment in Wages and Hours of Work
Revisions in United States rates of pay used as bases for similar positions in the Canal-Railroad organization resulted in one upward revision for policemen; one for postal employees; one for raliroad operating personnel; one for railroad nonoperating personnel; two for the floating-equipment group; one for the Panama Railroad Press craftsmen; and six for craft and supervisory employees. A new base was developed for Panama Canal pilots and Power System employees, which resulted in higher rates for these groups.
A more liberal schedule of rates for teachers and kindergarten assistants was approved by the Governor during fiscal year 1951, although not effective until July 1, 1951.


52
REPORT OF THE GOVERNOR OF THE PANAMA CANAL
Performance Rating Plan
The Performance Rating Plan, effective December 29, 1950, superseded the Uniform Efficiency Rating in accordance with the Performance Rating Act of 1950. The plan is uniformly applicable to all U. S.-rate personnel within its scope, both craft and classified, and performance ratings are made annually on March 31 for both groups of employees. The three official performance ratings are "Satisfactory," "Unsatisfactory," and "Outstanding."
EMPLOYEES PAID AT LOCAL RATES
The employee force of the combined organizations of the Panama Canal and Panama Railroad Company, as of June 30, 1951, numbered 14,519, as compared with 14,470 as of July 1, 1950, an increase of 49.
The number of local-rate employees of the Canal-Railroad organization as of June 30, 1951, and July 1, 1950, with the differences, is shown in the following tabulation:
As of June 30, 1951 As of July 1, 1950 i Increase or decrease
The Panama Canal___________________________________ ______ 9, 002 5, 517 9, 277 5,193 -275 +324
Panama Railroad Company_________________________________ Total______________________________________.............
14, 519 14, 470 +49

1 Reorganization was effected July 1, 1950, under authority of Executive Order No. 10101.
The number of local-rate employees, by function, will be found in table No. 49, section V.
Wages of Local-Rate Employees
The minimum and maximum rates of this group of employees were 31 cents and $1.45 per hour, respectively, with a weighted average of 53 cents for hourly rated employees, as of June 30, 1951. Within-grade increases were received by 2,317 local-rate employees in July 1950 and by 2,625 local-rate employees in December 1950; and in February 1951, 274 employees with 10 years continuous service, who were ineligible for promotion due to their pay rate being in excess of the maximum of their grade, were granted increases. In April 1951, the Governor approved a general increase in the local-rate schedule of 5 cents an hour. He also approved, to be effective December 1951, the addition of a new within-grade step to the various grades of the present local-rate wage schedule, and provisions for granting automatic annual within-grade increases to certain categories of employees, thus eliminating the former system of making semiannual merit promotions.


report of the governor of the panama canal 53
Cash Relief for Disabled Employees Paid at Local Rates
New applications for relief under the act of Congress of July 8, 1937, averaged 49 per month during the fiscal year 1951, as compared with 74 per month in the fiscal year 1950. The regulations established during the latter part of the fiscal year 1938 for administering this relief were continued without material change.
The table below shows the disposition for relief benefits from employees of both the Panama Canal and the Panama Railroad Company during the fiscal year 1951:
Panama Canal Panama Railroad Total
On hand Julv 1, 1950 .. .........._______...............__________________ 23 428 12 162 35 590
Received during fiscal year 1951_______________.........___________________
Total...........................................________..........
451 174 625
Disposition: Approved for payment______1_________.............._.................
408 41 2 148 26 0 556 67 2
Rejected or found ineligible.....________________......................
Pending..............................................._____..........
Total..................._____........................................
451 174 625

Note.Removal from the rolls on account of death or subsequent reemployment of cash relief recipients: The Panama Canal, 119; Panama Railroad Company, 48; Panama Railroad pensioners, 4.
Total and amiual costs per month during the fiscal year 1951 were as follows:
Number of cases Monthly average payment per case Monthly average payments
Panama Canal rolls_____...........................____............. 2, 063 771 63 $22.31 21.15 13. 73 $46, 020. 50 16, 303. 25 865.00
Panama Railroad rolls..............................................
Panama Railroad pensioners 1.......____________...................
Total..................____...............
2,897 21.81 63,188. 75

1 Superannuated employees granted cash relief prior to July 8, 1937.
Expenditures 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.
During the fiscal year 1949, studies were completed looking toward the amendment of the act of July 8, 1937, commonly referred to as the Cash Relief Act. As a result, legislation was requested, as outlined in the annual report for fiscal year 1949, and at the end of fiscal year 1951 this legislation was still pending.
98383052-5


54 REPORT OF THE GOVERNOR OF THE PANAMA CANAL
Repatriations
In 1934 an appropriation of $150,000 was provided for the repatriation of former local-rate employees (and their families) who have rendered at least 3 years service to the United States Government or the Panama Railroad Company on the Isthmus. During the fiscal year 1951, $17,603 was expended for the repatriation and rehabilitation of 175 former employees. To the end of the fiscal year 1951, the original $150,000 had been spent in its entirety, plus an additional $7,624 from other funds allocated for that purpose.
CENTRAL LABOR OFFICE
The Central Labor Office program of the Panama Canal provides for eligibility control over applicants seeking employment with Government agencies and private contractors operating on Government work in the Canal Zone. A slight increase in local-rate force of the agencies served by the Central Labor Office is indicated by the comparative figures presented in the following table, showing the total number of employees paid at local rates of pay carried on the rolls of the various organizations as of June 1951 and June 1950, the increase in total force being 4.65 percent:
June
Panama Canal and Panama Railroad Company
U. S. Army_____......____________..............
U. S. Air Force.....______.......................
U. S. Navy____________________....._____________
Government contractors and miscellaneous______
Total...................__________.........
1951 1950
14, 519 14,470
3, 232 3,045
408 335
1,445 973
1,169 1,027
20, 773 19, 850
Note.The figures in this table are based on reports submitted by the various cooperating agencies, which form the basis for prorating the expense of the Central Labor Office.
Because of the insufficient supply of qualified labor on the Isthmus to handle the heavy construction program carried on during the war emergency, the Panama Canal was forced to resort to recruitment of contract laborers from the Republic of Colombia, Jamaica, Costa Rica, and El Salvador. With the diminishing need for outside labor after the cessation of hostilities, most of these wwkers 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 22,191 have been returned to their native countries, leaving as of June 30, 1951, a total of 74 remaining on the Isthmus.


report of the governor of the panama canal 55
LONG-RANGE HOUSING CONSTRUCTION PROGRAM
The long-range housing construction program, submitted by the Governor in the previous fiscal year, and approved by the Bureau of the Budget and Congress, proposed the construction of new units to replace the existing deteriorated and unsatisfactory living quarters for the Panama Canal and Panama Railroad employees in the Canal Zone.
Briefly, the program covers the replacement of all dwelling units in old frame buildings erected during the period of construction of the Canal and into World War I years, and in temporary frame buildings erected during World War II, all of which conform to construction-camp rather than reasonably modern, permanent standards.
To provide sufficient and adequate sites for quarters it will be necessary to develop two new townsites on the Pacific side and to extend and enlarge the existing townsites of Margarita and Paraiso. The entire program including public facilities and community services such as commissaries, clubhouses, schools, etc., is presently estimated to cost $80,000,000.
In the fiscal year 1951, an appropriation of $2,500,000 was made to initiate this program by expenditure for site preparation and quarters construction within the existing towmsites on both sides of the Isthmus. In the fiscal year 1952 it is proposed to construct 205 U. S.-rate apartments in the towns of Ancon, Balboa, Diablo, Gatun, and Margarita, and 316 local-rate apartments in the towns of Silver City and Paraiso.
SAFETY PROGRAM
The principal duties of the Safety Branch are the development, improvement, and supervision of adequate safety programs in all functions of the Canal-Railroad organization; to seek out and eliminate the causes of accidents; and through safety education, safety engineering, and the enforcement of safe operating procedures, to reduce the frequency, severity, and cost of accidents. The frequency rate for the fiscal year 1951 showed a 9 percent improvement over the frequency rate of last year, but was 2 percent greater than the lowest rate established in 1949. For the first time in the history of the organization there were no fatalities occurring in the performance of duty. On the basis of the 1950 national average of 1 occupational fatality for every 3,704 workers employed, as reported by the National Safety Council, this is the equivalent of 5 lives saved. During the fiscal year 1951 there wras 1 injury resulting in permanent total disability and 13 injuries which caused permanent partial disability. A severity rate of 0.75 established a new low severity rate for the Canal-Railroad organization, which is a 40 percent improvement over the previous low established in fiscal year 1948.


56 report of the governor of the panama canal
The following statistics cover the accident rates for the Canal-Railroad organization for the 11 full fiscal years since the inauguration of the safety program:
Year .Man hours Disabling injuries Frequency rate 1 Time charges Severity rate Number of Fatalities
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
1950________......_________........ 36, 492,000 670 18 46,868 1.28 3
1951_______________________________ 36,174,000 604 17 27,059 0.75 0
1 Frequency rate is the disabling injuries per million man hours worked.
2 Severity rate is the time charges, in days, per thousand man hours worked.
The annual injury and death compensation rates per $1,000 payroll, as reported in previous fiscal years, are no longer comparable in view of the added benefits, including increases from $116.66 to $525 in monthly maximum compensation payments and certain retroactive features, provided by Public Law No. 357, Eighty-first Congress, approved October 14, 1949, amending the Federal Employees Compensation Act. Total direct costs for the fiscal year 1951 were $274,-215.35; however, 72 percent of this amount was for injuries and fatalities that occurred in prior fiscal years, as shown in the following table:
Fiscal year Compensation Leave and other Medical and hospital Total
All prior....................__________________ $182,927,84 24,490. 63 $1,830.65 12,329. 49 $11,620.10 41,016.64 $196,378. 59 77,836. 76
1951_____................._________________.....
Total_____..............................
207,418.47 14,160.14 52,636. 74 274,215. 35

Payments in many of these prior cases will continue for several years; however, these payments would have been materially higher except for the progress that has been made in accident prevention since inauguration of an effective safety engineering program.
GROUNDS MAINTENANCE
The Grounds Maintenance Division,, established July 1, 1950, as a unit of the Community Services Bureau, performed the municipal function of trash and garbage collection, street cleaning, care of grounds, and maintenance of cemeteries. The consolidation of these duties in one unit resulted in much closer supervision of their performance with a corresponding improvement in service.


REPORT OF THE GOVERNOR OF THE PANAMA CANAL 57
lr.j:p( rhmnt gardens.- The Canal Zone plant introduction gardens and experimental station, established in June 1923, operated as a unit of the Grounds Maintenance Division during the fiscal year. The gardens, which include greenhouses, nurseries, and experimental plantings are devoted to the propagation and cultivation of a wide variety of useful and ornamental plants from all parts of the world, primarily for the purpose of determining their adaptability and value under local soil and climatic conditions, for general propagation on the Isthmus. This unit also designs and supervises all landscape work for the Panama Canal and the Panama Railroad Company, and does landscape work for other Government agencies on the Canal Zone. The landscape section was engaged in 43 projects during the fiscal year 1951. The principal projects undertaken by this section were preparation, sodding, and planting of Panama Canal quarters building sites.
CLUBHOUSES
The Panama Canal clubhouse unit operates restaurants, motion picture, bowling, and other recreational 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.
Several changes were made in clubhouse units during the fiscal year in interest of operating economy and efficiency. The more important of these changes were alterations to the dining room of the Diablo Heights clubhouse for cafeteria use, and additional interior changes which provided space for a dance and party room, second floor library space, and the renovation of other public areas; removal of the soda and luncheonette section in the Cristobal clubhouse and alteration of the dining room to provide cafeteria service; relocation of the clubhouse activity in a portion of the present post-office building at Pedro Miguel and demolition of the old clubhouse building; the innovation of combining the activities of clubhouse units with those of the commissaries in the same building, in the interest of securing a more economical and efficient use of space, was effected with the consolidation of the Chagres and Gatun clubhouses and commissaries in this manner.
Plans were approved during the year for the relocation of the general manager's office from the Ancon theater building to the Diablo Heights clubhouse upon the closing of the Ancon theater. At the close of the fiscal year the removal of the general manager's office and the transfer of the concessionaires was underway.
The Division continued to work very closely with the Canal Zone Recreational Committee to assure the success of the summer recreation program for children of the Canal Zone. Various live stage


58 REPORT OF THE GOVERNOR OF THE PANAMA CANAL
shows were booked for presentation at clubhouse theaters for the purpose of raising money for the program. Through this medium funds were raised for use by the committee in the purchase of supplies and equipment.
The volume of business of the Division as a whole decreased 8.6 percent from the preceding year. This decline in business necessitated a sharp reduction in force, as wTell as the institution of other economies such as reducing hours of operation, curtailing services, etc.
LEGISLATION
Among the laws enacted by the Congress during the fiscal year 1951 wrhich 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 August 9, 1950, authorizing the control of the anchorage and movement of foreign-flag vessels in United States wraters, and the safeguarding of vessels, harbors, ports, and waterfront facilities, when the national security is endangered.
An act approved August 26, 1950, to protect the national security by permitting the summary suspension of employment of civilian officers and employees.
An act approved August 28, 1950, the Social Security Act amendments of 1950, which, among other things, extended the old-age and survivors insurance system to certain Government employees.
An act approved September 8, 1950, the Defense Production Act of 1950.
An act approved September 23, 1950, the Revenue Act of 1950, to amend the Internal Revenue Code so as, among other things, to extend the Federal income tax to Government employees in the Canal Zone, effective as of January 1, 1950.
An act enacted September 23, 1950, over veto, the Internal Security Act of 1950.
An act approved September 26, 1950, to authorize and provide for the maintenance and operation of the Panama Canal by its corporate adjunct, renamed the Panama Canal Company; and to reconstitute the agency, renamed the Canal Zone Government, charged with the civil government of the Canal Zone.
An act approved September 30, 1950, the Performance Rating Act of 1950.
An act approved February 21, 1951, the Renegotiation Act of 1951, concerning the renegotiation of national defense contracts.
Legislation relating or of interest to the Canal Zone introduced during this fiscal year and still pending in Congress on June 30, 1951, includes:


REPORT OF THE GOVERNOR OF THE PANAMA CANAL 59
Four bills (H. R. 94, H. R. 533, H. R. 936, and S. 1287) to extend the benefits of the Panama Canal construction service annuity law of May 29, 1944, as amended.
Five bills (H. R. 242, S. 433, H. R. 1172, H. R. 3604, and H. R. 3804) to eliminate the retroactive application of the income tax to Government employees in the possessions, including the Canal Zone.
Three bills (S. 1140, If. R. 3305, and H. R. 3688) to create a Department of Health and to transfer to such department certain hospital, medical, and public health functions, including Panama Canal hospitals, dispensaries, and health services.
Two bills (S. 1208 and H. R. 4116) to provide for the administration and sale of certain lands held by the United States in the Republic of Panama.
A bill (S. 1271) to permit employees of the Canal Zone Government and the Panama Canal Company to appeal decisions under the Federal Employees .Compensation Act to the Employees Compensation Appeals Board.
A bill (S. 1440) to exclude certain teachers, policemen, and firemen in the service of the Panama Canal from the Federal Employees Pay Act of 1945, as amended.
A bill (S. 1680) to amend the Cash Relief Act of July 8, 1937, and to provide for the retirement of certain noncitizen employees of the Panama Canal and the Panama Railroad Company on the Isthmus.
Two bills (S. 1758 and H. R. 4486) to provide for a cost-of-living increase in the rates of compensation of policemen and firemen employed by the Panama Canal.
Two bills (S. 1759 and H. R. 4416) to extend certain special provisions of the Civil Service Retirement Act to fire fighting and fire-prevention personnel, with specific reference to the Canal Zone.
A bill (H. R. 1771) to amend the Canal Zone Code in reference to survival of causes of actions.
A bill (H. R. 2434) to make the Classification Act of 1949 applicable to the Panama Railroad Company or its successor.
A bill (H. R. 2798) to save certain causes of actions affected by the act of July 12, 1949, which excluded the Panama Railroad Company from the Federal Tort Claims Act.
A bill (H. R. 3630) to permit vessels engaged in the coastwise trade of the United States to pass through the Panama Canal without payment of tolls.
A bill (H. R. 4105) to provide that in the application of reduction-in-force regulations under the Veterans' Preference Act of 1944 to locomotive engineers, of the Panama Railroad Company, service performed in other civilian positions shall be disregarded.


60 REPORT OF THE GOVERNOR OF THE PANAMA CANAL
CAPITAL ALLOTMENTS, FISCAL YEAR 1951
The appropriation for the fiscal year 1951 carried $3,149,900 for improvements and betterments and for the replacement of worn-out or excessively deteriorated facilities as follows:
Quarters for employees________________________________________ $2, 500, 000
Sewerage disposalPacific side_________________________________ 482, 400
Extension of cell block, Canal Zone Penitentiary_________________ 10S, 500
Road and street replacements__________________________________ 34, 000
Miscellaneous minor improvements----------------------------- 25, 000
Total_________________________________________________ 3, 149, 900
Brief comment on these projects is given below:
Quarters for employees.This appropriation is to be expended on quarters for both U. S.-rate and local-rate employees. The dwelling units for which replacements are being provided under this program are in old dilapidated frame buildings, most of which date from the construction period of the Canal. The arrangement and facilities of the best quarters of this group were designed for minimum construction-camp requirements of almost 40 years ago. Some are in buildings originally erected for other purposes and since remodeled into dwellings because of the pressing need for accommodations.
Sewage disposalPacific side.This appropriation is to be expended for the provision of adequate, coordinated sewage disposal and collection facilities on the Pacific side. The existing problem arises from the practice of collecting all sanitary and storm drainage in a combined sewer and carrying off by gravity to the nearest body of water. Because of the prevailing flat grades and high intensity of rainfall, it was necessary to have many large outfalls along all water courses and along the ocean and harbor frontage. This has resulted in a number of open sewers and wide-spread pollution of water front and unsatisfactory functioning of the combined sewers. Through an over-all coordinated sewage collection system, all sewage will be separated and the sanitary sewage will be collected at central locations for disposal.
Extension of cell block, Canal Zone penitentiary.This appropriation was used to provide additional cells to relieve the overcrowded conditions which have prevailed in the Canal Zone penitentiary, and to permit safe and humane confinement of prisoners serving penitentiary sentences.
Road and street replacements.This appropriation wras used in connection with a long-range program for modernizing the narrow and deteriorated streets and roads of the Canal Zone. The majority of these streets and roads were built to pre-1924 standard, and are not suited for the weight, volume, and higher speed of traffic now using them.


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 Executive orders applicable to the Canal Zone. Whenever practicable, governmental functions have been assigned to departments in the organization established for the operation and maintenance of the Canal. Complete cooperation and increased efficiency are derived from such coordination of functions.
Data on expense and revenues of various features of Canal operation 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, 1951, with areas segregated for various purposes, is shown in the table below:
Land area:
Military and naval reservations (inclusive of licenses and
assignments): Square miles
Military reservations_______________________________ 91. 00
Naval reservations_________________________________ 11. 47
Total_________________________________________________ 102.47
Canal Zone townsites and areas outside of townsites in active use___ 13. 59
Miscellaneous assigned land areas:
Barro Colorado Island_____________________________ 5. 71
Forest preserve (excluding Madden Road)____________ 5. 38
Cattle pastures____________________________________ 39. 90
Commercial licenses________________________________ 4. 67
Garden plots______________________________________ 12
Total______________________________......_____________ 55.78
Swamps_____________________________________________________ 15. 16
Remaining usable land________________________________________ 185. 49
Total land area of the Canal Zone____________________________ 372. 49
Water area:
Fresh water___________________________________________ 186. 07
Tidewater (Atlantic and Pacific within 3-mile limits)_______ 89. 45
Total water area of the Canal Zone___________________________ 275. 52
Total area of the Canal Zone_________________________________ 648. 01
Excludes small tracts which are noncontiguous to the main Canal Zone.
61


62 REPORT OF THE GOVERNOR OF THE PANAMA CANAL
POPULATION
By compiling information obtained from the Housing Division, the Real Estate unit, the Army, Air Force, and Navy authorities, and by making a house-to-house canvass of persons employed by commercial interests, an estimate was made in March 1951 of the population of the Canal Zone. The estimated population figures include civilian employees of all governmental agencies and their families and members of the families of Army, Air Force, and Navy personnel residing in the Canal Zone, but omits uniformed personnel of those services.
The following is a summary of the population by districts:
Americans All others Tota
Men Women Children Men Women Children
Balboa district______________________ 3,445 937 5,069 1,181 5,791 1,660 4,032 3,347 3,495 2,087 5,821 4, 221 27, 653 13,433
Cristobal district...............------ Total, 1951...............______
4,382 6,250 7,451 7,379 5,582 10,042 41,086
The total of 41,086 represents a decrease of 5,375, or 11.6 percent, in comparison with the number reported in the house-to-house canvass of March 1949. A complete census was taken in April 1950 as part of the seventeenth decennial census of the United States. Since this census did not segregate civil and military population, no direct comparison can be made with the canvass of the civil population taken in March 1951.
PUBLIC HEALTH
The health of the Canal Zone populace continued relatively good during the fiscal year 1951. Excluding malaria and venereal disease, the average number of reportable diseases per month for the fiscal year was 100 as compared with 153 during the previous fiscal year, and 36 per month during the fiscal year 1949.
The malarial rate for employees of the Panama Canal and Panama Railroad Company for fiscal year 1951 was 1.5 per thousand, as compared with 2.2 per thousand in fiscal year 1950, and 4.6 per thousand for the fiscal year 1949. Malarial-control measures in contiguous areas of the Republic of Panama, that may affect our rates, were seriously disrupted because of changes of administration and lack of insecticides at the beginning of the rainy season. The pasturing of cattle in approximately 1,000 acres of swampy lands in Mindi Dairy has created a difficult malaria sector control problem on the Atlantic side. House flies at landfills for garbage, both at Mount Hope and Old Panama, have developed marked resistance to currently available insecticides such as DDT, Benzene Hexachloride, Dieldrin, and Chlordan. Serious consideration is being given to converting


REPORT OF THE GOVERNOR OF THE PANAMA CANAL 63
the garbage landfills into conventional sanitary fills, especially the one located at Mount Hope, where ample cover is available.
No Aedes aegypti mosquito breeding was found in the Canal Zone or the terminal cities during the past year.
A smallpox vaccination campaign was conducted by the forces of the respective health officers in the terminal cities during March, April, and May 1951. The results are given in the following table:
Estimated population Vaccination Percent of population vaccinated
Panama City _______________________________________________ 121,400 50,000 8, 750 4,267 1,934 1,586 2,270 77, 715 31,409 7,225 2,624 1,811 1,128 2,037 64 63 83 61 94 71 90

Canal Zone, Atlantic flocal rate)------...........------.............
Red Tank ...........--.....................---



Vital Statistics
General death rates.-The death rate for the Canal Zone is artificially low 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 immediate members of their families, and because ex-employees generally leave the Isthmus after retirement. Below are shown death rates by yearly periods for the past five calendar years:
Death rate per 1,000 populationall causes
Calendar year
1950 1949 1948 1947 1946
Canal Zone 1 ________________________________________________ 6.47 5.83 5.60 6.00 6. 31

' Omits Army, Air Force, and Navy personnel. Corrected figure.
Principal causes of death.The principal causes of death in the Canal Zone, together with the rate per thousand population, were as follows:
Number of deaths and annual rate per 1,000 populationcalendar year 1950
Number Rate per 1,000
Organic diseases of the heart____________..........____________..................____ 28 14 34 17 25 14 0. 681 .341 .827 .414 .608 .341
Tuberculosis_______________________..............._____________________.....________
Cancer___________________....................._______......___________________......
Nephritis..._____________________________________________________.....______________
Diseases of the arteries....._____.............................________________________
Pneumonia_______________________......_________.........___________________________



64 REPORT OF THE GOVERNOR OF THE PANAMA CANAL
Birth rate.In the Canal Zone a change in the birth rate, as distinct from the number of births, has only limited significance, because of the unusual situation which exists with regard to the population on which the rate is calculated. For the past 10 years, population figures have excluded uniformed personnel of the Armed Forces, but have included members of their families. Children born to Armed Forces families therefore are included in the total number on which the rate is calculated.
A factor which depresses the birth rates concerns local-rate personnel in the Canal Zone. Canal Zone quarters are generally available only to such emploj'ees who have more than average length of service and they and their wives are, therefore, predominantly in the older age brackets. The following table shows the birth rates in the Canal Zone for the past 5 years:
Firth rate per 1,000 population 1
Calendar year
1950 1949 1948 1947 1946
White.........________......................-......___________ 51.71 23.08 50.81 21.29 53.23 22.41 55. 92 19.17 44.69 18.92
Colored_______.....--.........._______........________________
Combined ____________________________________________
35. 66 35. 79 37. 20 36.32 29.42

1 Canal Zone rates are based on civilian population in each group.
Death rate among children under 1 year oj age.The following table shows the infant mortality rates in the Canal Zone per 1,000 births for the past 5 years:
Death of infants under 1 year of age per 1,000 live births
Calendar year
1950 1949 1948 1947 1946
White__________......______.................________________ 22 49 11 40 19 47 14 45 17 63
Colored________...............________________.............___
Combined _____________________________......_________
32 20 27 23 34

Malaria
The rates for malaria among employees only for the past 10 years are shown below:
Calendar year Rate per thousand Calendar year Rate per thousand
1941.................................... 14 25 15 13 13 1946................................... 12 12 6 3 1
1942........ 1947...................................
1943..... 1948...................................
1944....... 1949 ..................................
1945.......... 1950...................................



REPORT OF THE GOVERNOR OF THE PANAMA CANAL
65
There were no deaths from malaria among employees during the calendar year 1950.
Hospitals
The number of patient days in Panama Canal hospitals for the past three fiscal years was as follows:
[Number of patient days]
Fiscal year
1951 1950 1949
Gorgas Hospital.................________....._____
Corozal Hospital:
Insane_____________________....................
Cripples and chronic medical and surgical cases
Colon Hospital........................____________
Palo Seco Leper Colony______.....................
Total....................____________________
173,310
93, 539 36, 919 34, 699 43, 139
203, 210
95, 778 37,062 47, 879 41,264
381, 606
425,193
204, 786
94,078 37,285 55, 762 41,628
433, 539
Quarantine
During the fiscal year 1951 inspection was made of 7,304 vessels and 1,409 airplanes, as compared with 6,893 vessels and 4,600 airplanes in the previous year.
No cases of quarantinable diseases (plague, typhus, yellow fever, smallpox, and cholera) on arriving vessels were reported in advance of arrival or detected at quarantine inspection. One vessel wTas detained at the port of Cristobal for 3 days because of an epidemic of influenza during its current voyage.
Airplane inspection was limited to planes arriving in the Canal Zone and carrying nonmihtary passengers. Planes arriving at Tocumen airport in the Republic of Panama were not inspected by Canal Zone quarantine authorities.
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 maintenance of the water system, sewer system, and the streets in the cities of Panama and Colon, and the furnishing of filtered water to thesr municipalities, were also handled by the Municipal Division. Construction wrork was performed and services rendered for units 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 commented upon in this report.


66
REPORT OF THE GOVERNOR OF THE PANAMA CANAL
Water System
The consumption 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 approximately 50 percent of the total amount consumed.
[Thousands of cubic feet]
Fiscal year
1951 1950 1949
684,822 548,115 155, 268 18, 618 795, 748 544, 274 158, 812 18, 070 889, 562 553, 323 166, 303 18, 446
City of Panama _________________________________________
City of Colon _____________________________________
Sales to vessels ______________________________________________
Total..........................................---...........
1, 406,823 1, 516, 904 1, 627, 634

Regular maintenance work was performed on the pipelines, reservoirs, filtration plants, and pumping stations during the year.
Sewer System
In addition to the regular sewer maintenance, consisting of cleaning and flushing lines, cutting tree roots, replacing defective pipe, etc., renovation and repairs were made to the concrete box sewers along Barneby Street and Amador Road to protect the structural strength and to correct the poor flow conditions that were brought about by deterioration of the concrete invert.
Roads, Streets, and Sidewalks
Regular maintenance work was performed on the Canal Zone roads, streets, and sidewalks during the year. In addition there were a number of minor paving projects, the more important involving the resurfacing of Frangipani Street from Ancon Boulevard to Gorgas Road, Ancon; the resurfacing of Gorgas Road from Herrick Road to Mamei Place; and the construction of a parking area in the rear of the Balboa Post Office, Balboa.
Other Heavy Construction Activities
The work which was begun in the fiscal year 1950 on the construction of the steel cradle for marine railway No. 2, Cristobal shops, replacing the existing wooden cradle, was substantially completed during the year.
Work was begun on the laying of the 72-inch interceptor sewer and connections in the Balboa area; this work consisted of the excavating, shoring, and installation of the 72-inch reinforced-concrete pipe and lesser size connecting pipe and was under way at the close of the year.


REPORT OF THE GOVERNOR OF THE PANAMA CANAL
67
Grading, clearing, and preparing of areas for the U. S.-rate and local-rate townsites were performed, as well as service work in connection with the new quarters construction during the year. The most important of these projects included the grading of Margarita Extension and the Ancon Boulevard-Chagrcs Street area involving 135,000 and 157,272 cubic yards respectively of earth and rock excavation.
Cities of Panama and Colon
Regular maintenance work was performed on the water and sewer systems, and on the streets during the year. The principal improvement projects undertaken during the year were the repaving of La Iseca and "A" streets in the vicinity of the National Stadium, Panama City; the replacement of water lines on Forty-third, Forty-fourth, and Forty-fifth Streets, Panama City; the complete paving of Thirteenth Street from Roosevelt Avenue to Gorgas Drive and Gorgas Drive from Twelfth to Thirteenth Streets, Colon; and the installation of curbs for street intersections in the Colon Fill development.
Miscellaneous Activities
Sosa Hill quarry and rock-crushing plant.-Rock crushed during the fiscal year 1951 and issued to various units of the Panama Canal, Panama Railroad Company, units of the Armed Forces, the Republic of Panama, and to individuals and companies, totaled 42,650 cubic yards. In addition, this plant produced approximately 3,990 tons of asphaltic mixtures for placement on street surfaces.
Central mixing plants.-During the year 29,887 cubic yards of ready-mix concrete were produced.
Concrete pipe plants.These plants manufactured 2,234 linear feet of various sized concrete pipe, both plain and reinforced, in addition to varying quantities of concrete valve boxes, valve box covers, and cement blocks.
Testing laboratories.The Mirafiores laboratory made tests throughout the year as required, including chemical and bacteriological analyses of water, concrete tests, hydrocarbon tests, and chemical analyses and physical tests on various materials, to determine their suitability for Panama Canal use. Tests were also conducted to determine the presence or absence of ^asphyxiating, explosive, or deleterious gases in the holds of ships and oil tanks. This laboratory also conducts soil tests and analyses.
The materials-testing laboratory for special projects was transferred to the Engineering Division, effective October 1, 1950. For the period of the fiscal year that the laboratory was connected with this Division the program of protective coatings and material corrosion studies was continued.


68 REPORT OF THE GOVERNOR OF THE PANAMA CANAL
PUBLIC ORDER Arrests
During the fiscal year, 5,798 arrests were made, a decrease of 32.2 and 27.4 percent in comparison with fiscal years 1950 and 1949, respectively. Statistics covering these arrests, with corresponding figures for the two previous years, are given in the following table:
1951 1950 1949
Male ___-- _________________________________________________________________ 5, 267 531 7,854 699 7, 366 619

Total ...........-.-......_____...................________________________
5, 798 8, 553 7,985
Arrests made with warrants ___..... ___________________ --.....--.....
718 5, 080 1,105 7,448 1,047 6,938
Arrests made without warrants ________________________________________________
Total ..........__________________...........................____
5, 798 8, 553 7,985
Residents of the Canal Zone. ....._______ ........._______________________
1,948 3, 629 221 2,910 5,294 349 2, 739 4,838 408
Residents of Panama _____________ _____________________ ___________
Transients ___. _________________ _____________....._____________________
Total .........______........._________.......-.......___________________
5,798 8, 553 7, 985

Fiscal year
Principal Causes of Arrest
There were 6,107 charges filed against persons arrested during the fiscal year 1951, of which 5,891 were misdemeanors and 216 were felonies, the latter representing 3.5 percent of the total offenses charged. The following were the principal causes of arrest:
Cause of arrest (charge)
Fiscal year
1951 1950 1949
3, 458 6,134 5,043
569 614 584
337 266 337
288 350 563
216 266 248
213 276 302
176 160 212
134 182 154
116 127 171
600 769 824
6,107 9,144 8,438
Violation of traffic regulations
Trespassing..................
Petit larceny..................
Loitering...................
Intoxication...................
Vagrancy.........-.....------
Fugitive from justice..........
Disturbing the peace..........
Battery...............________
All others.............________
Tota].............._____
Coroner's Investigations
A total of 77 deaths wrere investigated by the coroner during the fiscal year 1951. Of these 21 required formal reports of inquest which established that 16 were accidental, 1 homicidal, 3 suicidal, and 1 was undetermined.
Prisoners
During the year the number of prisoners serving sentences in the Canal Zone jails averaged 50.5 per day. All physically able prisoners were employed in useful work.


REPORT OF THE GOVERNOR OF THE PANAMA CANAL 69
There were 54 convicts committed to the Canal Zone penitentiary, a decrease of 2 from the number committed in the preceding year. Sentences imposed upon convicts totaled 151 years. Seventy-nine convicts were discharged leaving 92 in custody at the end of the year. Computed at standard rates of pay for common labor, the value of labor performed by convicts during the year amounted to $65,908. Of this amount, 66 percent represented the value of work performed in the operation, maintenance, and improvement of the penitentiary buildings and grounds; 21 percent on the penitentiary farm; and the remaining 13 percent on outside work.
Deportations
By order of the Governor, 21 persons were deported from the Canal Zone during the fiscal year, all of whom had served sentences in the penitentiary and whose continued residence in the Canal Zone was regarded as undesirable.
Traffic Accidents
A total of 572 traffic accidents was reported during the fiscal year 1951, as compared with 741 in the previous fiscal year. The most common causes of accidents in the fiscal year 1951 were "reckless driving," "failure to use caution meeting and passing," "failure to exercise caution when backing," and "following too closely," these accounting for 60 percent of the total. Four persons were killed and 204 injured in traffic accidents during the fiscal year 1951, compared to 11 persons killed and 207 injured during the fiscal year 1950.
MAGISTRATES' COURTS
The following is a summary of the business transacted at the magistrates' courts for the subdivisions of Cristobal and Balboa for the fiscal year 1951, together with comparative figures for the fiscal year 1950:~
Cristobal Ralboa Total
1951 1950 1951 1950 1951 1950
Cases handled: Criminal......._______............................ 2,109 14 2,452 8 3, 605 39 5, 950 36 5, 714 53 8,402 44
Civil_____.........................................
Total...........................................
2, 123 2,460 3,644 5,986 5,767 s. 416
Disposition of criminal cases: Conviction_______________________________________
1, 924 55 100 30 2,299 58 54 48 3, 235 70 228 72 5, OS0 115 75 82 5, 159 125 328 102 7,979 173 129 130
Acquittal________________________________________
Dismissal_________________..................______
Held for district court...........................
Total........................................... ._ |
2, 109 2, 459 3,605 ; 5,952 5.714 8,411
Convictions in which execution of sentences was suspended and defendants placed on probation...... Rearrested for violating terms of probation............ Revenues_____________________________________.....___
113 7 $17,812 101 2 $22, 429 122 10 $32,376 125 $54,444 235 17 $50. lVi 226 9 $76, 873

9s3s3052-6


70 REPORT OF THE GOVERNOR OF THE PANAMA CANAL
PARDONS AND REPRIEVES
The Pardon Board, consisting of five members appointed by the Governor, acts in an advisory capacity in the consideration of requests submitted by prisoners for executive clemency. During the fiscal year 1951, the Board considered 80 applications for executive clemency, 75 of which were for commutation of pentientiary and jail sentences and 5 for revocation of orders deporting persons following service of sentences and imprisonment. Recommendations for or against clemency were submitted to the Governor in each of such cases, and clemency was extended in 13 of these cases.
Effective March 1, 1951, Dr. Lawrence Johnson was appointed a member of the Board to succeed Mr. E. A. Erbe, retired; Dr. George E. Hesner was appointed alternate for General Rice, succeeding Dr. K. L. Courtney, resigned; Mr. A. C. Medinger was appointed general alternate in lieu of Dr. Lawrence Johnson; and Mr. F. G. Dunsmoor was appointed general alternate to succeed Mr. W. R.^Etounsaville, resigned.
FIRE PROTECTION
During the year 216 fires were reported involving property valued at $2,642,367, with damage estimated at $55,790. In addition to the fires reported, the Fire Division responded to 53 false alarms and 33 emergency calls, 14 of which involved saving of lives.
The following table classifies the owners who suffered property losses during the year, as compared with the previous year:
The Panama Canal_________
Panama Railroad Company
U. S. Army_________________
U. S. Navy.................
U. S. Air Force_____________
Private (including ships)____
Total.................
Total property involved.....
Fiscal year 1951
Number of fires
103 20 13 4 1 75
Property loss
$2,096 380
53,314
216 55,790
$2, 642,367
Fiscal year 1950
Number of fires
163 19 3 5
43
Property loss
$14, 451 57, 739 140 70
17,874
233
$9,044,980
$90, 274
PUBLIC SCHOOL SYSTEM
The public school system for white children includes nine kindergartens; eight elementary schools, grades 1 through 6; one elementary school, grades 1 through 5; two junior high schools, grades 7 through 8; two senior high schools, grades 9 through 12; an apprentice school; and a junior college. Public schools for colored children include six kindergartens; seven elementary schools, grades 1 through 6; four 3-year junior high schools, grades 7 through 9; two occupational high schools, grades 10 through 12; and a junior college.


report of the governor of the panama canal 71
Enrollments
The schools for white children operate on a 9-month basis, while the schools for colored children are open 10 months each year. February enrollments are used for purpose of comparisons, since they usually represent the enrollment peaks. In February 1951, 4,368 pupils were enrolled in the white elementary and secondary schools, grades 1 through 12, and 3,592 in the colored schools, grades 1 through 12, compared with 4,511 and 3,412, respectively, in February 1950. The kindergarten enrollments were 569 white and 354 colored in February 1951, as compared with 514 and 291, respectively, in February 1950.
For the past 3 years the average daily attendance has been as follows:
Fiscal year
1951 1950 1949
White schools_____.....______________......___________.........________......___ 4,171 3, 377 4, 335 3,245 4,244 3,104
Colored schools_________________________________________________________________

Note.Junior college and kindergartens not included.
February enrollments of day-time students in the Canal Zone Junior College numbered 149 as compared with 206 in February 1950. The extension division of this school offered adult classes during three terms, viz, October 1950 through January 1951; February 1951 through May 1951; and June 1951 through August 1951. The extension division served a total of 855 individuals, not including duplications, about 316 less than were enrolled in the 3 sessions of the previous year. There was no summer session at Cristobal. The courses offered at the Balboa center numbered 23, 21, and 7, respectively, for the three terms; those at Cristobal numbered 2 for the two regular terms.
Achievement
The achievement tests which have been administered to the pupils of grades 1 through 8 in white and colored schools for many years and have been used as a means of comparison between Canal Zone pupils and those in the United States, were given in September in the colored schools and in October in the white schools. On the basis of the standard achievement tests administered, the average eighth grade white pupil was 7 months above United States norms. In the cooperative tests in senior high school subjects administered at the close of the second semester, the median pupil in 23 tests scored at a point equivalent to the fifty-ninth percentile, as compared with the sixtieth percentile in the previous year.


72
REPORT OF THE GOVERNOR OF THE PANAMA CANAL
Curriculum
The general curriculum revision program begun in 1948 was continued through the year. Work in curriculum revision was continued in the fields of arithmetic and the social studies. A general planning committee for the revision of courses of study in arithmetic drew up an outline, including grade replacement, for the introduction of the various skills and suggestions as to teaching procedures. This general plan will guide revision in arithmetic next year. Revision in the social studies progressed to the point where study units for teacher use were in preparation. A workshop course was set up in the summer institute for colored teachers for the purpose of completing study units at all grade levels. It is expected that these units will be drawn together into teaching manuals by committees in the white schools during the coming year.
Building Program
The boys' gymnasium at Balboa was repaired and partly remodeled providing a new hardwood playing floor, bleacher seats, an amplifying system, and an electric scoreboard. Covered passageways to permit student movement from class to class during the rainy season were constructed between the junior high school and junior college building at Balboa; between the high school and shop buildings at La Boca; and between the junior and senior high schools at Silver City
Phvsical Education and Recreation
Physical education classes for both white and colored pupils are conducted by the Physical Education and Recreation Branch. 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.
The Summer Recreation program which had formerly been the joint responsibility of the Physical Education Branch and the Clubhouse Division was assigned to the Physical Education and Recreation Branch of the Division of Schools.
POSTAL SYSTEM
Twenty post offices were in operation by the Bureau of Posts during the fiscal year 1951. Of these, 11 were in civilian localities, 5 in Army localities, 1 in an Air Force Base, and 3 on naval reservations.
Operations for the past 3 years are summarized in the following table:


REPORT OF THE GOVERNOR OF THE PANAMA CANAL
73
Receipts:
Sale of airmail postage..............-........----------.....
Sale of other postage stamps, postal cards, stamp books, etc.
Money order fees............................................
Box rents collected..........................................
Handling mailother agencies................._______......
Other receipts..........................-------------.......
Total receipts.........................-----...............
Expenses:
Transportation charges for air mail..........................
All other charges and expenses..............................
Total expenses............................................
Net surplus (deficit)........................_______.............
Transferred from postal savings interest account............
Reported surplus (deficit)................................
Fiscal year
1951 1950 1949
$288,357 199, 061 53,220 36,157 13, ,500 340 $301,346 213.743 58,617 45,453 13,500 372 $381,394 218,743 52,134 49,650 13,500 473
590,635 633,031 715,894
140,321 653,820 137,081 656,234 168,705 664,951
794,141 793,315 833,656
(203,506) 125,000 (160,284) 200,000 (117,762)

' (78,506) 39,716 '(117,762)
i This operating deficit was absorbed by reserve funds.
Statistics relative to the operation of the Canal Zone postal system
for the past three fiscal years are covered in the following table:
Fiscal year
1951 1950 1949
Registered and insured articles handled:
Sent.................................................................. 107,343 114,234 141.392
Received____________________________________......________.....____ 136,594 146, 736 175,231
Dispatches of steamship mail handled:
Cristobal:
Nunber sent......._______.........._____......................... 2,510 3,379 3,214
Number received___............................................ 2,854 3,571 3,059
Balboa:
Number sent..................................................... (') (') (')
Number received.............................._____.............. 171 121 135
Dispatches of air mail handledBalboa:
Sent.................................................................. 14,756 16.216 19,864
Received_________.............._____.......__________________________ 16,354 17,952 21,419

1 Effective Oct. 1, 1947, the dispatching of mail for South and Central America from Balboa was discon tinued and that function transferred to the Cristobal exchange office.
IMMIGRATION VISAS
During the fiscal year 1951, 273 visas were issued by the Executive Secretarv to alien residents of the Canal Zone traveling to the United States. Of these, 11 were quota immigration visas, 168 nonquota immigration visas, 73 were nonimmigrant visas, and 21 were transit certificates. Fees collected for visas amounted to $1,817.
RELATIONS WITH PANAMA
Because of the close relations existing between the Governments of the Canal Zone and the Republic of Panama and the proximity of the areas, numerous matters of mutual interest arise continually. During the year, correspondence and discussions pertaining to the


74 REPORT OF THE GOVERNOR OF THE PANAMA CANAL
transaction of matters of this kind were conducted between representatives of the Panama Canal and the Panamanian Government. The majority of these matters related generally to such subjects as customs, immigration, repatriation of aliens, municipal improvements, public health, postal service, and extradition.
CUSTOMS AND IMMIGRATION
On July 1, 1950, the immigration function, which in prior years had been performed by the Health Bureau, was transferred to the Civil Affairs Bureau as a part of the Postal, Customs, and Immigration Division. The work load of the immigration function was divided into two distinct operational segments. The first involving the immigration inspection of passengers and passenger documentation was delegated to the Customs. The second concerning matters of immigration control was delegated to the newly created Immigration Control Section. This section is also charged with the operation of the immigration detention station at Corozal.
The following is a statistical summary of the more important,items handled by the Customs during the fiscal year 1951, together with corresponding figures for the two preceding years:
Fiscal year
1951 1950 1949
Vessels entered.................._____....................________________ 14,148 14,149 (') 0) 11,709 673 (2) P) (?) 13,553 13, 547 834 i 843 9,686 1,167 62 33 2,545 12,558 12,574 3,824 3,825 7,710 1,380 137 20 1,051
Vessels cleared ___________________________________________ ____________
Aircraft entered_________________________________________....._____________
Aircraft cleared ____________________________________________________ ____
Customs releases on shipments consigned to Panama____............... Invoices certified for shipments to United States__________________________ Chinese passengers arriving____.....____________........__________________
Chinese admitted to Panama________________________........______......
Vessels with Chinese crews checked_______________________.....___________

1 Commercial air activities transferred to Tocumen National Airport, Republic of Panama, September 1949.
2 Provision of Executive Order No. 4214, excluding Chinese from Canal Zone, revoked October 1950.
Canal Zone customs officers have been stationed at the National Airport in the Republic of Panama since the transfer of commercial air activities to that airport from the Canal Zone on September 21, 1949, to inspect baggage of passengers destined for the Canal Zone, and to release air express consigned to the Canal Zone.
SHIPPING COMMISSIONER
The shipping commissioner and his deputies have the same authority with respect to United States seamen as shipping commissioners in the United States ports and United States consuls in foreign ports. There were no sick or destitute seamen maintained or returned to the United States at Government expense during the year, but 129 were


REPORT OF THE GOVERNOR OF THE PANAMA CANAL 75
signed on vessels as workaways, and returned to the United States without expense to the Government.
The total wages earned by seamen who were discharged at Canal Zone ports amounted to $145,077 and the total approved for deduction on account of advances, allotments, fines, slopchest account, etc., was $62, 591. The balance of $82,486 was either paid to seamen under the supervision of the Deputy Shipping Commissioners or received on deposit for the seamen by the Deputy Shipping Commissioners. The wages, money, and effects of four American seamen who died in the Canal Zone were handled by the Shipping Commissioner during the year. Their personal effects, and cash amounting to $231. 67 were remitted to the proper courts for disposition.
ADMINISTRATION 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 cases of estates with total assets exceeding $1,000 in value, the public administrator charges the regular commissions fixed by law, wdiich are paid into the Treasury of the United States. Commissions amounting to $3,086 were collected during the fiscal year. The estates of 106 deceased or insane persons, with cash assets of $63,716 wTere settled during the fiscal year.
FOREIGN CORPORATIONS
Foreign corporations doing business in the Canal Zone are required to have licenses, and 132 such corporations, the majority of which are steamship lines, steamship agencies, and government contractors, were licensed during the fiscal year 1951. Fees amounting to $1,320 were collected.
INSURANCE
The license fee for insurance companies doing business in the Canal Zone is $10 per year plus a tax of lK percent on premiums collected. At the end of the fiscal year 29 companies were licensed to write insurance in the Canal Zone.
Life-insurance companies reported that as of December 31, 1949, 3,219 policies were in force. During the calendar year 1950, 827 policies were issued and 909 were canceled, leaving 3,137 with an aggregate value of $11,176,527 in force as of December 31, 1950. Premium collections on life insurance during the calendar year 1950 totaled $291,587. Claims settled during the year totaled $48,743.
During the calendar year 1950 premiums received by miscellaneous companies, including accident, automobile, liability, fire, surety, fidelity, etc., but excluding life insurance, amounted to $671,888. Losses paid during the year totaled $206,656.


76 report of the governor of the panama CANAL
The lax of 1% percent on premiums paid by all classes of insurance companies amounted to $14,466 for the calendar year 1950 as compared with $14,770 during the previous year.
LICENSES
The number of motor-vehicle licenses and transfers issued during each of the past three fiscal years and the aggregate fees collected therefor are summarized below. These include licenses for official vehicles for which no charge is made:
Fiscal year
1951 1950 1949
Vehicle licenses issued____________________........._______________ ______ 16,045 6,182 27,913 8,375 27, 958 7,744
Motor vehicle transfers __________.........-....._______________________
Total................._______......________________...............
22, 227 $74,495 36,288 $131,336 35, 702 $134,562
Fees collected_______....._________________________________________________



Section V
FINANCIAL AND STATISTICAL STATEMENTS
Financial statements of major interest relative to the Panama Canal abstracted from the annual report of the Finance Bureau, are presented in this section. Also included are tables concerned with traffic through the Canal, and other features of Canal operation.
ACCOUNTING SYSTEM
Public Law 841, Eighty-first Congress, changed the name of the Panama Railroad Company to the Panama Canal Company and authorized the Company to "maintain and operate the Panama Canal." Public Law 808, Eightieth Congress (the act incorporating the Panama Railroad Company) made provision whereby assets could be transferred from other Government agencies to the Panama Railroad Company.
The effect ot these laws has been to authorize the transfer of the primary activities of the Panama Canal to the corporate organization known as the Panama Canal Company and the transfer was accomplished by Executive Order No. 10263, dated June 29, 1951, effective July 1, 1951. This reorganization will entail a major change in the accounting and in the accounting procedures heretofore followed in the Panama Canal.
During the course of fiscal year 1951, many phases of the pending change were reviewed, and prospective procedures worked out m order to permit the change-over effective July 1, 1951, as expeditiously as possible. Probably the greatest amount of work was devoted to valuation of the capital assets of the Panama Canal for transfer to the Panama Canal Company. For this purpose a survey was carried on throughout the year to appraise the value and utility of the Panama Canal's assets as measured by the capital and depreciation records.
In all cases wherein the worth of a given asset to the company is determined to be less than its net book value (capital less accrued depreciation), the loss in value is reflected by an "economic valuation reserve." The economic valuation reserve plus the accrued depreciation on a given asset reduces the net carrying value of the asset to a figure approximating its appraised worth or utility. In the case of plant that is entirely surplus and hence not used at all, the net carrying value is reduced to zero.
77


7S REPORT OF THE GOVERNOR OF THE PANAMA CANAL
As a result of the extensive capital survey, a great number of adjustments were made during fiscal year 1951 in the capital account of the Panama Canal. Following are four of the more important entries in terms of dollar value; these are representative to a certain extent of the great number of other adjustments made during the year:
(a) Write out of capital account for "Special Item Projects"
expenditures no longer representing assets of tangible
value______________________________________________ $17, 090, 822. 93
(b) Additional depreciation on Canal locks__________________ 14, 499, 200. 52
(c) Provide economic valuation reserve for surplus U. S.-rate
quarters built during the war period but temporarily retained in use_______________________________________ 4, 389, 830. 96
(d) Provide economic valuation reserve for Balboa Dry Dock
(representing residual value of Balboa Dry Dock for transfer to defense and excess plant)_______________________ 2, 681, 006. 34
During the past year a firm of public accountants was employed by the Panama Railroad Company in a consulting capacity to advise on capital values of assets. It made a review of the historical record of Panama Canal assets and recommended certain major adjustments to provide a reasonable basis for transferring the assets to the Panama Canal Company. As a result of the review made to date, it appears desirable for the Panama Canal Company to make a further study, including a physical inventory and appraisal of all its assets. As proposed and approved by the Board of Directors of the Company, this appraisal will take several years and will indicate additional adjustments in the stated capital value for transfer to the Panama Canal Company.
In addition to the many adjustments in capitalization and depreciation, numerous principles involved in changing from the accounting for the Panama Canal to that of accounting for the Panama Canal Company were reviewed. Essentially, the accounting of the Panama Canal has been carried out in conformance with regulations and requirements for control over governmental funds and appropriations. These have been adapted to the extent possible to commercial accounting principles in order that the Panama Canal could produce operating statements comparable to those used by commercial concerns. There are, however, many features of Government fund accounting which are dissimilar to those used in commercial accounting, and the necessary changes to be effective July 1, 1951, were planned to the extent possible.
Accounts for fiscal year 1951 were closed and operating statements were compiled according to the concepts followed by the Panama Canal. Post-closing adjustments will be reflected in the first report of the Panama Canal Company. Examples of the post-closing adjustments to be made in the Panama Canal accounts are as follows: Establish full estimated value of leave, liability due all employees


report of the governor of the panama CANAL 79
of the Company (Panama Canal accounts had reflected funds reserved for leave for employees in only those cases where full value of an employee's service was included in the stated cost of a construction or repair job); establish inventory reserves against certain stock items to assure against the Company's taking over inventories which might become obsolete, and which accordingly would not be purchased by a new organization at stated inventory prices; provide a reserve for deferred maintenance to be accomplished during future overhauls of the locks.
OPERATIONS OF THE PANAMA RAILROAD
COMPANY
The results from the operations of the Panama Railroad Company's various business units on the Isthmus are shown in detail in the accounts of the Panama Railroad Company. The detailed statement of revenues, expenses, and statistics for all railroad industries, changes in the capital account, and the results from operations of the steamship line appear in the annual report of the Panama Railroad Company. A review of these activities is presented in section II of this report under the heading "Business operations under the Panama Railroad Company."
PANAMA CANAL OPERATIONS
The major financial results of Panama Canal operations are presented hereinafter in tables Nos. 1 to 28, with supplementary comments and explanations. Data on Canal traffic and other features of Canal operation are found in tables Nos. 29 to 49.
The complete report for the Finance Bureau, including tables and reports not printed herein because they are concerned principally wTith details of operations which lack general interest, is on file at the office of the Governor and at the Washington office of the Panama Canal.
INDEX TO TABLES
Table FINANCIAL.
No. Page
1. Comparative balance sheet______________________________________ 81
2. Appropriated funds, receipts, and disbursements____________________ 83
3. Accounts receivable____________________________________________ 85
4. Materials and supplies__________________________________________ 85
5. Work in progress_______________________________________________ 86
6. Deferred debits________________________________________________ 86
7. Custodial funds, receipts and disbursements_______________________ 87
8. Depreciable assetsbuildings and structures (general)______________ 80
9. Depreciable assetsfloating plant________________________________ 90
10. Depreciable assetsbusiness operations structures_________________ 91


80 report of the governor of the panama canal
FinancialContinued
Table
No. Pa*e
11. Depreciable assetsbusiness operations equipment----------------- 92
12. Accrued depreciation___________________________________________ 92
13. Nondepreciable assets__________________________________________ 94
14. Accounts payable______________________________________________ 94
15. Business operations: Revenues, expenses, and profit and loss------ 95
16. Unliquidated obligations________________________________-------- 96
17. Deferred credits________________________________________________ 97
18. Obligated balancesfor repairs: Floating plant and business equip-
ment________________________________________________________ 97
19. Obligated balancesfor replacement: Business operations plant------ 97
20. Obligated balances for accrued leave------------------------------ 98
21. Working capital________________________________________________ 98
22. Capital investment_____________________________________________ 99
23. Consolidated statement of income, expenses, and net revenues------- 101
24. Revenues, expenses, and computed surplus------------------------ 101
25. Capital refundments.:__________________________________________ 103
26. Canal revenues________________________________________________ 104
27. Canal earnings and expenses_____________________________________ 105
28. Balances in appropriations and funds----------------------------- 107
Statistical Canal traffic
29. Ocean-going tolls-paying traffic for fiscal years 1915 to 1951_________ 108
30. Traffic by months, fiscal years 1951 and 1950______________________ 108
31. Canal traffic by nationality of vessels_____________________________ 109
32. Classification of Canal traffic by type of vessel--------------------- 110
33. Laden and ballast traffic by nationality of vessel___________________ 112
34. Frequency of transits of vessels through Canal_____________________ 113
35. Segregation of transits by registered gross tonnage of vessels_________ 114
36. Principal commodities shipped through Canal_____________________ 115
37. Origin and destination of cargo through CanalAtlantic to Pacific___ 117
38. Origin and destination of cargo through CanalPacific to Atlantic___ 119
39. Cargo shipments by trade routeAtlantic to Pacific________________ 122
40. Cargo shipments by trade routePacific to Atlantic________________ 123
41. Important commodity shipments over principal trade routesAtlantic
to Pacific___________________________________________________ 124
42. Important commodity shipments over principal trade troutesPacific
to Atlantic__________________________________________________ 130
43. Vessels transiting Canal free of tolls______________________________ 136
All other
44. Water supply and expenditures__________________________________ 137
45. Dredging operations____________________________________________ 137
46. Principal equipment operated by Dredging Division________________ 138
47. Activities of terminal tank farms_________________________________ 139
48. Number of employees paid at U. S. rates__________________________ 139
49. Number of employees paid at local rates__________________________ 141


report of the governor of the panama canal
SI
Table No. 1.
-Comparative balance sheet ASSETS
Current assets:
Cash (table No. 2).............______
Accounts receivable (table No. 3) Materials and supplies (table No. 4). Work in progress (table No. 5)......
Total current assets...............-...........----
Deferred debits (table No. 6).......................-----
Custodial funds (per contra) (table No. 7)...............
Postal operating funds and 1952 license fees (table No. 7).
Capital assets:
Depreciable assets:
Buildings and structures (general) (table No. 8).
Floating plant (table No. 9).....................
Business operations structures (table No. 10)____
Business operations equipment (table No. 11)...
Total depreciable assets................
Less: Accrued depreciation (table No. 12).
Net depreciable assets.........
Nondepreciable assets (table No. 13).
Subtotal........._______.....______
Special item projects.................
Additional facilities..................
Defense and excess plant......______
Total capital assets. Total_______........
June 30, 1951
$11,452,049. 24 2,198,510. 79 11,085, 795.37 16,505.49
24, 752, 866.89
92, 978. 94
11,178, 721.33
560, 864. 83
105, 992,069.06 15, 218,489. 78 51,928,642.55 4,759, 330.27
177. S!ts. 89, 739,
531.66 923. 43
88,158, 399, 024,
tins. 23 vj'.l. M
187, 1*3. 51, 587, 69, 992, 7,945,
438.04 629.47 21 s. 91 333. 20
616,708,619.65
653, 294,051.64
June 30, 1950
$15, 702, 354.52 1,524,276.68 10, 442,482.28 69,009. 42
27, 738,122.90
112,848. 05
12, 847, 535. 71
114.413.405.11 14,180,679.08 53,930, 726.31 6, 774,854.57
189,299,665.07 61,163,080.62
128,136, 584.45 3%, 895,146. 02
525,031,730. 47 67,512,840.90 70,417, 571.30
662, 962,142. 67
703, 660,649. 33
LIABILITIES
Current liabilities:
Accounts payable (table No. 14)......._____
Profits of business operations (table No. 15). Unliquidated obligations (table No. 16)_____
Total current liabilities.
Deferred credits (table No. 17). Custodial funds (per contra)...
Total liabilities.
$3,184,313.75 (3,697, 215. 35) 232,966. 84
(279, 934. 76)
145,808. 73 11,178, 721.33
11,044,595.30
$4, 390, 964. 22 667,219.19 1,816, 003.83
6. S71. 1ST. 21
211,659.96 12, 847, 535. 71
19,933,382. 91
EQUITY OF U. S. GOVERNMENT
Obligated balancesappropriated funds:
For repairs: Floating plant and business operations equipment (table
No. 18)............................................................
For replacement: Floating and business operations plant (table No.
19).
For accrued leave (table No. 20).....................
For current operations and incomplete construction. For postal operations..........................._____
Total obligated balancesappropriated funds
Capital investment:
Net capital investment (tables 8 to 13). Working capital (table No. 21).........
Subtotal________..................................................
Special item projects, additional facilities, and defense and excess plant...........................................................
Total capital investment (table N'o. 22). Total...................................
$517,055.80
9,220,684.15 778,407.83 5, 005,695. 32 18,993.59
15, 540,836.69
487.183,438. 04 10,000,000.00
497,183,438.04 129,525,181.61
626, 708,619.65
653,294,051.64
$576, 368. 34
5, 757,199. 53 816, 240. 22 3, 517, 815.39 97, 500. 27
10, 765,123. 75
525,031,730.47 10,000,000. 00
535,031,730.47 137, 930, 412.20
672,962,142.67
703,660,649. 33


82
REPORT OF THE GOVERNOR OF THE PANAMA CANAL
The foregoing balance sheet conforms closely to the generally accepted presentation of corporate balance sheets. This balance sheet presents the equity of the United States Government, consisting of the capital investment, including working capital, and the obligated balances of appropriated funds. The equivalent of the item captioned "Balance, Revenues and Refundments" on the balance sheet in prior years is reflected in the accounts mentioned above as well as in the current liabilities and custodial funds contra account.
The statutes require that receipts for tolls, civil revenues, and net profits on business operations shall be covered into the United States Treasury and relinquished from control of the Panama Canal. Funds for current operating expenses and capital construction are appropriated 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 principal source of income, the reex-pendable receipts are insufficient to provide for operation and maintenance, thus requiring the Canal to submit its expenditure program annually to the Congress.
These various fund requirements leave the Panama Canal balance sheet without an equivalent for the usual corporate "Surplus Account," since any surplus is included in the tolls covered into the Treasury by law. However, the equivalent for "Surplus Account" is shown on Table No. 24, which compares "Net Revenues" of $272,-964,017.93, representing the accumulated operating earnings of the Panama Canal before capital interest charges, with the computed 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.


Table No. 2.Appropriated funds, receipts, and disbursements, fiscal year ended June SO, 1951
Disbursing Clerk, Washington, D. C. Treasurer, Canal Zone Collecting agents, Canal Zone Total U. S. Treasury Total
accountable balance july 1, 1950, by appropriations and funds Maintenance and operation, Panama Canal_____.............______...................... Sanitation, Canal Zone, Panama Canal______________.................................... Civil government, Panama Canal and Canal Zone....................................... Postal funds, Canal Zone (special funds)_____.......................................... Repatriation of unemployed aliens, Panama Canal_______________________________________ $761,078.81 34,220.08 7,846. 73 11,897. 52 $3, 715,896.45 531,544.00 149,596. 97 128,176. 95 10,104.14 $14,647. 44 3,432.25 340. 65 4,694.16 $4,491,622.70 569,196. 33 157, 784. 35 144, 768.63 10,104.14 $8,934,451.79 224,415. 70 400,497.41 385,575.01 $13,426,074.49 793,612. 03 558,281.76 530,343.64 10,104.14 156,508. 58 227,429.88
Memorial to Maj. Gen. George W. Goethals____.......................................... 156,508.58 50,663.55
Construction, additional facilities, Panama Canal_______________________________.....____ 21,182.89 155,583.44 176,766.33
Total..............................................................................
836,226. 03 4,690,901.95 23,114. 50 5,550,242.48 10,152,112.04 15, 702,354. 52
appropriations, fiscal year 1951 Maintenance and operation, Panama Canal...........___________......___...........
14,761,700.00 3,390,000.00 3,849,000.00 14,761,700.00 3,390,000.00 3,849,000.00
Sanitation, Canal Zone, Panama Canal............_____________.......................
Civil Government, Panama Canal and Canal Zone_________________________________.....
Total............................................................................
22,000, 700. 00 22,000, 700.00
transfers between fiscal officers Maintenance and operation, Panama Canal............_________......._______.....____
9,000,000.00 310,000.00 150,000.00 17,301,672. 52 3,435,437.31 4,114,686.44 328,645.17 156,508. 58 51,023.55 26,301,672. 52 3, 745,437. 31 4,264,686. 44 328,645.17 156,508.58 51,023.55 20,982.63 37,248. 74 26,322,655.15 3, 782,686.05 4,264,686.44 606,479.44 156,508.58 51,383.55
Sanitation, Canal Zone, Panama Canal..........________....................._________
Civil government, Panama Canal and Canal Zone.....................................
Postal funds, Canal Zone (special fund)______________......_____...................... 277,834. 27
Memorial to Maj. Gen. George W. Goethals......................................______
Construction, additional facilities, Panama Canal........................................ 360.00
Total............................................................................
9,460,000.00 25,387,973. 57 34,847,973. 57 336, 425. 64 35,184,399.21
collections repayable to appropriations Maintenance and operation, Panama Canal....................__________................ Sanitation, Canal Zone, Panama Canal..........................._______.......______
330,468.42 195,248.16 2,241.50 4,125.00 2,007.34 17,515, 780. 72 1,457,136. 97 433,733. 25 197,367. 49 18.81 71,158.09 47,111.14 15,345.09 23,951.01 17,917,407. 23 1,699,496. 27 451,319.84 225, 443. 50 2,026.15 5,693.66 17,923,100.89 1,699,496.27 451,319.84 225,443. 50 2,026.15
Civil government, Panama Canal and Canal Zone______.....________........___.........
Postal funds, Canal Zone (special fund)......_______________.......................___
Construction, additional facilities, Panama Canal..........____............______........
Total...............................................................
534,090. 42 19,604,037.24 157,565.33 20, 295,692. 99 5,693.66 20,301,386.65

10,830,316.45 49,682,912. 76 180,679.83 60,693,909.04 32,494,931.34 93,188,840.38



Table No. 2.Appropriated funds, receipts, and disbursements, fiscal year ended June SO, 1961Continued
X 4-
Disbursing Clerk,
Washington D. C.
Treasurer, Canal Zulu'
Collecting
agents, Canal Zone
covered into the u. s. treasury
Business net revenues, fiscal year 1950, maintenance and operation, Panama Canal
transfers between fiscal officers
Maintenance and operation, Panama Canal........
Sanitation, Canal Zone, Panama Canal............
Civil government, Panama Canal and Canal Zone.
Postal funds, Canal Zone (special fund)............
Memorial to Maj. Qen. Qeorge W. Goethals________
Construction, additional facilities, Panama Canal..
Total.
transferred to custodial funds (tarle 7) 1
Postal funds, Canal Zone (special funds)____.........................
disbursements
Maintenance and operation, Panama Canal________
Sanitation, Canal Zone, Panama Canal......._____
Civil government, Panama Canal and Canal Zone.
Postal funds, Canal Zone (special funds)...........
Repatriation of unemployed aliens, Panama Canal. Construction, additional facilities, Panama Canal..
Total.
accountable balance june 30, 1951
Maintenance and operation, Panama Canal........
Sanitation, Canal Zone, Panama Canal...........
Civil government, Panama Canal and Canal Zone.
Memorial to Maj. Gen. George W. Goethals________
Construction, additional facilities, Panama Canal..
Total...............
Total accounted for.
$20,982. 63 37,248. 74
4,125.00
'""360.66'
62, 716. 37
8,195.81
9, 1s5.ss2.09 460,203.62 141,007.54 3,701.71
3,307. 55
10,094,162. 51
584,682. 51 42,015.88 19,020.69
19,522.68
665, 241.76
10,830,316. 45
$667,219.19
2,500,000. 00 50,000. 00
273,709. 27
2,823,709. 27
60. 901.23
25, 910,518.00 4,780,891.27 4,307,017.12 319,579.11 10, 104, 14 30,349. 22
35,358,458. 86
9,455, 612.50 593, 227. 01 390, 999. 54 156,508. 58 176,276. 58
10, 772, 624. 21
$78,889. 49 43, 772.87 15,189.03 28,645.17
Hit',, 496. 56
6,916.04 6, 770.52 496. 71
Total
$667,219.19
2,599,872.12 131,021.61 15,189.03 306, 479. 44
300. 00
3,052,922. 20
69,097. 04
35,396, 400.09 5,241,094.89 4,448,084.66 323,280. 82 10,104.14 33,650. 77
45,452,621.37
U. S. Treasury
$23, 722, 783.03 3,651,604. 44 4,249, 497.41 300,000. 00 156,508. 58 51,023.55
Total
$667,219. 19
32,131,477. 01
363,409. 28
45.05
45. 05
10,047,211.05 642,013.41 410,516.94 156,508. 58 195,799. 26
14,183.27 11,452,049.24
49,682,912. 76
180,679.83 60,693. 909.04
32,494,931.34
26,322,655.15 3, 782,686.05 4,264,686. 44 606,479. 44 156,508.58 51,383.55
35,184, 399. 21
432,506. 32
35,396,445.14 5,241,094.89 4,448,084.66 323,280.82 10,104.14 33,656. 77
45,452, 660. 42
10,047,211.05 642,013.41 410,516. 94 156,508. 58 195,799. 26
2 11,452,049. 24
93,188,840.38
Postal funds transferred from appropriation to special funds (custodial) status effective November 1951 accounts in compliance with Comptroller General decision A-48650, Nov. 11, 1950.
2 Balances in U. S. Treasury withdrawn by accountable fiscal officers in May 1951 accounts in compliance with accounting systems memorandum No. 15, Apr. 16, 1951.


report of the governor of the panama canal
85
Table No. 3.Accounts receivable
REGISTERED DURING THE YEAR
Fiscal year 1951 Fiscal year 1950
$15,539, 546. 57 $16,141,566. 70
Miscellaneous receipts: Tolls ......................................................
23, 960, 266. 92 463.23 24,513,126.36 130. 68
Other .............--......................._______
Total .............____...................._________
23,960, 730.15 21.513.257.01
Total accounts receivable registered..........-................
39, 500,276. 72 40,654,823. 74
36,836 41,082

ACCOUNTS RECEIVABLE END OF FISCAL YEAR
Audited bills._..............................----.......
Hospital certificates....................-----...........
Claims against carriers and contractors------------------
Drums, carboys, reels, and cylinders teturned for credit.
Bills for rent and related charges....................-----
Payroll deductions.............----..........-----.....
Bills for collection in hands of collecting agents......
Total
$2,133, 070. 74 42, 272. 79 3, 564.67 2,855. 50 10, 833. 68
5,919.41
2,198,516. 79
$1.419.916. 73 45, 355. 98 1,039. 05 1,975.50 896.91 55,092. 51
1,524,276.68
Table No. 4.Materials and supplies
June 30,1951
June 30,1950
Stock on hand:
General storehouses: Balboa:
General........
Medical.........
Cristobal____.......
Oil-handling plants.
$3, 887, 856.25 205, 619.41 1,470,190.61 1,920, 509. 34
$4,840, 335. 86 261,374. 38 1,196, 208.80 672, 789.48
Total storehouse stock.
7. 1M. 177 01
6, 970. 708. 52
Other supplies and materials:
Dredging division.....____
Dredge pipelines.........
Locks division............
Panama Canal Press.....
Gamboa gravel pile.......
Municipal work..........
Building division.........
Other...........____.....
1.201,518. 70 744,013.52 702,841.47
102,823.50 234, 686. 09 180. 339. 39 435, 397.09
1,028, 760.09 754,670.42 697,201.93
' 168,045.02 114,084.36 291,194.37 151,872.47 265,945.10
Total other supplies and materials. Book value, stock on hand........
3.601,619. 76
3,471, 773. 76
11,085, 795.37
10, 442,482. 28
General storehouses stock transactions: Sales, issues, and transfers:
Net issues......................
Net sales.......................
Stock transfers.............____
4,910, 322.63 1,289,073. 84 > 206,932. 56
4,559,680. 14 1,708,241. IX 1,594,085. 61
Total
6, 406, 329.03
7, 862,006.93
Stock receipts:
United States and local purchases. Local production..................
7,133,932.08 380, 522.41
4,512. 351.69 408, 790. 27
Total.
7, 514,454.49
Net change..............................
Surveys and miscellaneous adjustments.
Stock change during fiscal year........
1,108,125.46 (594,658. 37)
4.921. 141. 96
(2,940.864.97) (585.425.01)
513,467.09 (3,526,289.98)
( ) Indicates reduction.
1 Panama Canal Press transferred to Panama Railroad Company effective July 1, 1950.
1 Transfer of all spare parts for floating craft stocked for Navigation Division to Dredging Division at cost.
9 s3 83052-7


86
REPORT OF THE GOVERNOR OF THE PANAMA CANAL Table No. 5. Work in progress
June 30, 1951 June 30, 1950
$210.96 358. 44 57, 710. 96 1,037.09

Industrial bureau ______________.....____________ $24,850. 71 1, 924.04 (10, 269. 26)
Motor transportation division _______________________________
Building di%'ision __________________________
9,691.97
Total work in progress_____.....____________________________________
16, 505.49 69,009. 42

This account covers the amounts expended on uncompleted jobs, and will ultimately be cleared to operating expenses of the division indicated, with corresponding credits to their revenues after application of authorized charges to cover division overhead expenses.
Table No. 6.Deferred debits
Balance June 30, 1951
Balance June 30, 1950
Office engineering division..............
Port captain, Balboa...................
Aids to navigation subdivision.....____
Dredging division______________________
General accounts suspense_____________
Water system......________.............
Municipal work___.......______........
Building division.............._________
General storehouses....._________......
General storehouses, sundries suspense.
Industrial bureau......................
Customs and immigration..............
Civil intelligence................_______
Gorgas Hospital........................
Colon Hospital.........................
Corozal Hospital.........______........
Palo Seco Leprosarium_____......._____
Total.
$56,091.21
I, 368. 46 9, 549. 33
14, 440. 74
II, 179.20
350. 00
92,978. 94
$200.00 90'.). 00 380.10 5, 540. 75 3, 491.42 101.04 411.97 8, 935. 23 19, 653.42 15,140.49 47, 327. 69 63.20
"6,"561."i9 3,111.75 986, 40 34.40
112, 848.05
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 cleared as soon as values are consumed.


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