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STANDARD VIEW MARC VIEW
eeBLO HEIHS CANAL
The Single-J7age Legislation
What it will mean to the average employee; long-range
and immediate benefits; the merit system and its
administration; consolidation into one roll
What will the "single-wage" legislation,
passed last month by Congress and signed
into law by President Eisenhower, mean
to the average Company Government
employee? What will the immediate and
long-range effects of this legislation be for
the approximately 13,500 men and women
who make up the Panama Canal force?
Under this legislation citizens of Pan-
ama will compete on an equal basis with
citizens of the United States for any posi-
tion in the Canal organization, and with
the Armed Services, except those which
are classed as "security jobs."
Under this legislation, the basic rates
of pay for all employees in the same job-
level will be uniform, regardless of citizen-
ship. In keeping with the provisions for
the 1955 Treaty commitments between
the United States and the Republic of
Panama, United States citizens will con-
tinue to receive the overseas pay differ-
ential and certain other benefits, such as
home-leave travel, and an allowance for
the difference in income tax rates between
the United States and Panama.
No one now in service will lose money
-that is, his salary will not be re-
duced-because of the new legislation.
The long-range benefits for both the
employees now on the local-rate and
U. S.-rate rolls will be considerable
when the two systems are integrated
into a single-wage plan before the end
Except for a change in the designation
of his job, the average United States cit-
izen will see little immediate effect. A
very few employees, whose jobs will now
be based on locality rate, will have their
pay frozen. They will continue to receive
their present salaries until they are pro-
moted to some higher position; these
"grandfathered" employees, however, will
receive any legislatively granted pay in-
The average non-U. S. citizen employee
will get a new classification grade, prob-
ably a new job title, and in some few
cases will receive a salary increase.
When the consolidation into a single
wage plan is accomplished and employees
are "slotted" into their new ratings, an
employee whose present pay rate is below
that of the minimum established for the
new grade, pay level, or designation of
his position will have his rate increased
to the new minimum.
If his present pay rate falls between
two step rates on the new schedule, his
pay will be raised to meet the higher of
the two step rates. If his present position
is paid above the maximum established
on the new schedule, he will retain his
existing rate so long as he remains in the
same position or a position of equal or
higher grade or pay level.
While not a part of the single-wage
plan, a fringe benefit which will now
go to all full-time employees on the
present local-rate rolls, approximately
9,500 employees, will be the blanketing
into the Civil Service Retirement Act.
With the exception that the manda-
tory retirement age for non-citizen em-
ployees will be 70 instead of the 62 for
United States citizens, the retirement
provisions will be exactly the same for
Extension of the retirement program
to non-citizen employees will be effective
in October; with the first pay period of
that month, deductions of 6Y2 percent
will be taken from each eligible employ-
ee's pay check as his contribution to the
retirement fund. This will be matched
by a like contribution from the Company-
Deduction of the retirement pay will
result in slightly less take-home pay for
the workers covered. The contribution
each employee makes, however, is "his"
money in that it can be refunded to him
if he leaves the service within a specified
TOTAL EMPLOYEES OF PC.C-C.ZG. IN EACH OCCUPATIONAL
GROUP BEFORE AND AFTER SINGLE SALARY PLAN IS EFFECTED
aF 'q MPLEMENAr.AT:,,
GF SINGLE SALA PFL-11
Data prepared by
Peruoi,.l B1ur Pnam Caal Cpunj
period, or it will later return to him in
the form of a pension. As in the case of
other employees in the retirement pro-
gram, the money paid into the retirement
fund becomes part of his estate on his
Of major importance to practically
all employees of the Canal Zone Gov-
ernment and the Panama Canal Com-
pany is the establishment of the Canal
Zone Merit System. This system will
govern the "selection for appointment,
reappointment, reinstatement, reem-
ployment, and retention with respect
to positions, employees and individuals
under consideration for appointment
to positions," regardless of whether
the employees are citizens of the United
States or of the Republic of Panama.
It will cover all positions except the
following: Officers of the Company-Gov-
ernment and military personnel detailed
for detached duty with the Company-
Government; certain executive and pol-
icy-determining positions; attorneys; ex-
perts and consultants; employees already
with competitive status; and employees
of non-appropriated fund activities.
The Canal Zone Merit System will re-
place the present Civil Service system
but will afford all protections of Civil
Service to all employees working in the
Canal Zone for the United States Govern-
ment. Under the new legislation, all
U.S.-citizen employees will have transfer
rights between the Canal Zone Merit
System and the United States Civil Serv-
ice System; in the past this transfer right
was restricted to those with Civil Service
The merit system and its application
will be reviewed and checked periodically
by the United States Civil Service Com-
The Canal Zone Merit System will be
administered by the new Canal Zone
Civilian Policy Coordinating Board,
which was established last month. It
is composed of a representative and an
alternate for each of the major U. S.
Government agencies in the Canal
Its chairmanship, at present held by
E. A. Doolan, will rotate at six-month
intervals between the representatives of
the Company-Government and of the
Caribbean Command. Its members are:
Mr. Doolan, for the Company-Govern-
ment; Lt. Col. W. A. Franks, Caribbean
Command; Col. W. J. Preston, USAR-
This is a step in the program to
convert the Canal Zone to 60-cycle
electric current, now about half
completed. The great circular ob-
ject is a 54-ton rotor, heart of
a generator. It is being lifted by
crane from the No. 2 generator at
Madden Hydroelectric Plant, a step
in rebuilding the generator for 60-
2 August 1, 1958
Another distinguished visitor sees the Canal
The Canal Zone, which has greeted
Eisenhowers with enthusiasm in the
past, went on display last month for
still another member of this disting-
During a visit to the Isthmus, at
the beginning of a fact-finding mis-
sion to Panama and Central America
for his brother, the President, Dr.
Milton Eisenhower spent part of a
day getting a first-hand look at the
busy Panama Canal.
As the guest of Governor Potter,
Dr. Eisenhower, together with his
pretty daughter Ruth, Mrs. Potter,
United States Ambassador Julian F.
Harrington and Mrs. Harrington,
Capt. W. S. Rodimon, and several
officials of Panama and members of
Dr. Eisenhower's party, visited the
locks at Miraflores and then boarded
the tug "Culebra" for a trip from
Pedro Miguel to Gatun.
The party picked a typically busy
day for their trip through the Canal.
On that particular Monday there
were 28 ships transiting the water-
way, 13 of them northbound and 15
From the tug "Culebra," Dr. Milton Eisenhower, left, saw the workings of the Ca-
nal. With him are Gov. Potter and Panama Comptroller Roberto Heurematte.
CARIB; Edward Kieloch, Caribbean Air
Command; and Cmdr. R. A. Sexton,
15th Naval District.
Gordon M. Frick has been appointed
permanent Executive Secretary to the
Board. His office is in the Personnel
Building in Ancon.
The Board will establish a central em-
ployment office, which will occupy the
present Central Labor Office in Ancon.
All employment for all Federal agencies
Plans are already under way for a golf
tournament to be held in connection
with the United Fund campaign this
fall. Thatcher Clisbee, tournament
chairman, shows the trophy which will
be awarded to the winning golfer.
in the Canal Zone will be processed
through this office, except for recruit-
ments in the United States. Nor will the
central employment office be concerned
with transfers within an organization.
Each agency will continue to handle its
own transfers and its own reduction in
force program; these will be according
to uniform procedure, however.
Another important function of the
new board will be the establishment of
minimum standards for promotion. These
will apply to each local agency.
The integrated single-salary scale
which will be established under the
new legislation is shown in the chart
on page 2. Four major categories have
The first of these is the Non-Manual
category-the "white collar" jobs. This
group will be composed of those in cler-
ical positions and those with the present
GS ratings. In this group also w.vill be
professional, sub professional, and tech-
nical positions in the fields of medicine,
engineering, accounting, etc., and admin-
istrative and supervisory positions in this
Another of the four groups will be the
Service employees. This will include em-
ployees working in sales and food-service
positions and such related trades as
butchers and bakers, messengers, watch-
men, hospital attendants, and personnel in
janitorial and other "housekeeping" jobs.
Third of the four categories is the
Manual group, or the "blue-collar" work-
ers. This group will include unskilled,
semi-skilled and skilled mechanics and
craftsmen, supervisors, and inspectors.
The wage plan for this group will be
based, generally, on the Navy Depart-
ment pay level and wage system with
Last of the four groups is the Special
group, which will be composed of em-
ployees whose wages have been tied,
legally, or traditionally, to similar posi-
August 1, 1958 THE PANAMA CANAL REVIEW 3
tions in the United States. In this group
will be teachers, pilots, postal employees,
hospital interns and residents, floating-
equipment personnel, power system em-
ployees, etc. The employees in this group
will continue under their special formulas
Each major category will be divided
into grade levels, with steps within
these grades. The base rates for the
upper grades or level, for which ade-
quate numbers of employees or re-
quired skills are not available locally,
will be based on rates for similar em-
ployment in the United States. The
base rates for the lower grades or levels,
for which there are available locally ad-
equate employees and required skills,
will be determined on the basis for
rates for similar employment on the
New Military Assistant to the Gover-
nor is Maj. Harvey C. Jones, above.
He came to the Zone from the U. S.
Naval War College, in Newport, R. I.
August 1, 1958
THE PANAMA CANAL REVIEW
A MASTER PLAN
All substandard quarters may be
replaced in eight-year program
A "Master Housing Plan," which calls
for the replacement of all sub-standard
housing for the permanent U. S. Citizen
force of the Company-Government organ-
ization within the next eight years, has
come off the planning board. It will com-
pletely revamp present congested areas
and will mark a major rejuvenation of
the Canal Zone.
The Master Plan, which was prepared
by the Executive Planning Staff in co-
operation with the Engineering and Com-
munity Services Divisions, was approved
last month by the Panama Canal Com-
pany's Board of Directors at their quar-
terly meeting in Washington. Now it is
to be submitted to Congress.
New construction under the Master
Plan will be limited to the Pacific side
of the Canal Zone; the recent acquisition
of housing at Coco Solo and France Field
takes care of all housing needs on the
Atlantic side, including the replacement
of all 12-apartment buildings for families.
In general, housing replacements on
the Pacific side will be built within ex-
isting townsites, and no new commun-
ities-in the sense that a community
means stores, post offices, etc.-are in-
cluded in the Master Plan. A large
number of the new quarters, however,
will be built at La Boca where Canal
employees have been housed since the
earliest construction days.
In addition to the La Boca location,
other housing sites will be in Ancon and
Balboa; these will be either where there
is available space, such as certain sections
of Ancon Boulevard, or in the areas where
present obsolete and substandard hous-
ing, like the 12-family quarters in Balboa's
Williamson Place, are to be torn down.
A few replacement quarters will be con-
structed in such locations as the Gamboa
penitentiary area and the Palo Seco Lep-
rosarium for housing the employee per-
sonnel required to reside at these areas.
In drawing up the Master Plan, the
Canal's planning experts have kept in
mind that noisy, dark, crowded housing
is one of the most frequent causes of
While the exact type of houses to be
built under the Master Plan has not been
decided, exacting standards have been
laid down for the new construction:
All of the quarters will be of masonry
or other permanent type construction.
Most of the family units will be in
single or twin houses, with approxi-
mately equal numbers of units in each
category. In multiple family houses,
the families will live side-by-side.
Some apartments will be air conditioned.
.About 45 percent of the family quar-
ters will be two-bedroom units; 35 per-
cent will have three bedrooms; and 20
percent will have four bedrooms.
The new quarters will be spaced at
least 60 feet "end to end" and 75 feet
"back to back" to prevent the normal
noise from one family disturbing an-
All of the new quarters will have
garages, some facilities for servants,
garbage disposal units, and other
"amenities common to modern homes
and tropical living," the Master Plan
All the family housing will be located
handily to neighborhood play areas.
At present, there are still in use in
Canal communities about 77 old frame
quarters which date back to about 1916.
These are off-the-ground cottages and are
generally in poor condition.
Another 150 or so families are living in
four-apartment frame buildings, each unit
having one or two bedrooms. The four-
family quarters are considered inadequate
for families but suitable for bachelor use.
More than 100 families are living in
the 12-family houses built during the late
1930's and early 1940's to house the flood
of construction workers of the Third
Locks and other emergency projects of
the pre-war and early war-year periods..
The 12-family quarters are considered in-
adequate as living quarters for either fami-
lies or bachelors and all will be torn down.
Under the Master Plan, a total of 249
family houses and 60 bachelor units will
be built over the next eight-year period.
Ninety-three of the family quarters will
be in La Boca.
Although not a part of the Master
Plan, 18 units are planned for La Boca
this year, they will replace an equal num-
ber, located in Balboa, which will be torn
down to allow space for the approaches
to the high-level bridge across the Canal
at Balboa. All of the housing in La Boca
should be completed by the end of the
fiscal year 1961.
Construction of the new housing in
La Boca will enable a start to be made
in clearing families from obsolete hous-
ing in other Pacific side sections. By
1961, all families should be out of the
12-apartment quarters in Ancon and
Balboa, and of the one-bedroom four-
apartment quarters in Diablo Heights.
The latter would then be assigned to
The program will be "strung out" for
some time because of the necessity of va-
cating and demolishing present buildings
so that the sites can be used for new
quarters. In fiscal year 1962, all of the
obsolete housing in Ancon should be
razed and construction begun on 40 fam-
ily units and a 30-apartment bachelor
quarters. At the same time, 18 old houses
will be torn down on Plank Street and
Amador Road in Balboa; six of the 12-
apartment buildings on Gavilan Road
and three 12-apartment buildings in Wil-
liamson Place are also slated for demoli-
tion, during the same fiscal year.
During fiscal year 1963, according to
the Master Plan, construction of the big
bachelor apartment building in Ancon
shouldbecompleted. Construction should
then start in Balboa for 27 family units
on Plank Street, Amador Road, Pearson
Street and Gavilan Road. Obsolete fam-
ily quarters on Morgan Avenue will be
torn down that year and another six of
the 12-apartment buildings in Williamson
Place will be demolished. Thirty-two
apartments in four-family quarters in
Balboa and Ancon will be transferred to
bachelors. One single-family house or
duplex will occupy the site of each pres-
During the following year, 27 family
units will be built in Williamson Place
and on Morgan Avenue in Balboa. Three
more of the Williamson Place 12-family
houses will be torn down and 36 apart-
ments in four-family houses transferred
Construction winds up during fiscal
year 1965 with six family apartments in
Williamson Place. As things settle
down to normal, the last of the obso-
lete housing will be demolished; these
sites will be used for playground areas.
Design details for the quarters are now
being worked out. At the present time,
the 30-apartment building slated for
Ancon would have five stories, with
garage space on the ground level and six
apartments to each floor, but specific
plans for it will have to be developed.
A Look Ahead
The proposed layout for the new resi-
dential area at La Boca, together with
two types of obsolete housing which will
be done away with and two types of
modern housing considered adequate for
family use, appear on the facing page.
The La Boca houses are to be located
along a horseshoe-shaped road whose
open ends join La Boca Road and on
dead-end streets leading from this horse-
shoe. The layout is something similar to
that of Los Rios.
In planning the new housing area, an
effort was made to utilize existing streets
and utilities. Planners, however, found
that the present La Boca streets were
designed for "horse-and-buggy" traffic
and were too narrow for modern use.
No acceptable one-way traffic pattern
could be developed which would give
good utilization of the La Boca space.
Of particular interest in the town lay-
out is the number of large play areas.
One of these, at the left of the diagram,
comprises several acres and will be lo-
cated in the area now occupied by the
two school buildings. Another is in the
center of the housing area and a third just
beyond the proposed new gasoline station.
Eventually, some additional housing
may be built on the north side of La
4 THE PANAMA CANAL REVIEW August 1, 1958
4 THE PANAMA CANAL REVIEW
August 1, 1958
When the Master Plan for housing is finished, La Boca would have 93 new family units, laid out like this.
Quarters like these are obsolete and substandard and would be replaced.
August 1, 195
The duplex and
8 THE PANAMA CANAL REVIEW
single-family houses above are considered adequate.
of force now enrolled
Over 9,500 Company-Government em-
ployees, or almost 75 percent of the
eligible Panama Canal force on the Isth-
mus, are now enrolled in the Group
Health Insurance Plan.
The total was boosted by 650 when
membership in the insurance plan was
reopened recently to those who had not
signed up during the initial registration
over a year ago. The new enrollments
were made between April 15 and May 31.
Simultaneous with the announce-
ment that the bulk of the Company-
Government force is now participating
in the first group health insurance plan
to be extended to Canal employees as
a whole, Robert Van Wagner, President
of the Group Health Insurance Board,
disclosed that the first of the new con-
version policies for retired employees
have now been issued. As of mid-July,
20 retired employees had applied for
Only employees who were covered in
the Company-Government active group
as of January 1, 1958, are eligible for the
new conversion policy when they retire.
Under this conversion policy, retired em-
ployees and their dependents receive
benefits of up to $12 per day for hospital
room and board, with a limit of 90 days
for any one illness or accident. They are
also entitled to miscellaneous hospital ex-
pense and surgical expense anywhere in
the world for six months. Thereafter, to
qualify for the insurance benefits, they
must live in the United States, Canada,
Alaska, Mexico, Hawaii, the Zone, the
Republic of Panama or the West Indies.
For this coverage a single retired em-
ployee will pay $50 a year. A retired
employee and one dependent will pay
$125 a year, while the rate for a retired
employee with more than one dependent
will be $175 per year.
News of the increased enrollment in
the insurance plan and of the extension
of the group coverage to retired employ-
ees brought commendations from Gover-
nor Potter to the Insurance Board.
In a letter to Mr. Van Wagner, he
asked that he "extend to the members
of the Group Health Insurance Board
my congratulations and appreciation
for the good work in so successfully
carrying out this program into its sec-
Group health insurance, which provides
coverage of hospital and medical charges
for Canal personnel, got under way in
the fall of October 1956, when several
insurance companies were invited to sub-
mit plans for a group policy. After con-
sidering the various plans offered, the
Insurance Board, which is made up of
employees chosen by their fellow workers
or representing the Civic Councils, se-
lected the Mutual of Omaha Company.
An intensive drive f r members was
started in the spring of 1957. By the
middle of May that year, more than
8,400 employees were enrolled in the in-
surance plan and by last August the figure
had risen to 8,756. In April of this year
the insurance benefits were increased-
one of the increased benefits was exten-
sion of the insurance to employees after
retirement-and a new membership drive
GRAVY ON YOUR TIE?
For a long time the danger of carbon
tetrachloride has been recognized and re-
ported. But the public continues to get
poisoned by this "harmless" household
The greatest hazard, the Abbott Lab-
oratories advises us in its publication
What's New, is the people's lack of aware-
ness of the inherent dangers. The great-
est problem is prevention of exposure.
Hairdressing establishments first used
the solvent as a dry shampoo. Maybe it
would still be so used if several young
ladies had not been fatally poisoned by
inhaling its vapor.
Lured by its superior qualities as a
non-flammable cleaning fluid and solvent,
many people still use it in the home.
Now less of an industrial problem, carbon
tetrachloride poisoning is still a real dan-
ger in the home. It can strike anyone
who attempts to use it as a cleaner.
This compound is one of the most pop-
ular synthetic dry cleaning solvents. Act-
ing similarly to chloroform it is a strong
metabolic poison, but much more toxic
(maximum allowable safe vapor concen-
tration is 25 parts per million parts of air),
also more toxic than other commonly-
used cleaning fluids. Because of its low
boiling point it evaporates rapidly even
at room temperature. The vapors are
highly toxic. Most poisonings occur where
ventilation is inadequate This compound
does not give sufficient warning through
causing nausea, etc.; usually it lets the
user pass directly into the toxic stage
with serious kidney and liver damage.
This may follow breathing, drinking or
soaking of the chemical through the un-
broken skin. The dangers may be vaguely
referred to in fine print on the bottle or
can, but the victim seldom thinks to asso-
ciate scant urination with exposure to
the compound because of the time inter-
Supply& Community Service (Honor Roll)
Health.--.-------------. (Honor Roll)
Civil Affairs -----------(Honor Roll)
New York Operations-......(Honor Roll)
Transportation & Terminals .......------
Engineering & Construction -----------
C. Z. Govt.-Panama Canal Company---
val between exposure and symptoms of
The stage of scant urination is followed
by a stage of excessive urination. During
this period depletion of water, salt, po-
tassium, and calcium may develop with
Alcohol which is drunk during or soon
after exposure increases the chances of
kidney damage. Eight patients in a re-
cent study of carbon tetrachloride pois-
oning had been exposed not only to the
chemical but also to alcohol by drinking
beer, whiskey or gin. Severe kidney dam-
age followed in each case.
The case of one of these patients points
to the hazard of accidental drinking of
the chemical. The man was drinking beer
with friends while a practical joker added
carbon tetrachloride to the patient's glass.
After swallowing just a little of his drink
he noticed the prank and became nau-
seated but did not vomit. Acute kidney
failure and death followed. This chemical
is a very dangerous one to have in the
home, especially where it can fall into the
hands of children.
There is no drug that combats carbon
tetrachloride or reduces the damage done
to the kidneys or liver. Treatment is
really helping nature to tide the patient
over until the regenerative power of the
affected liver and kidney cells builds
them back to normal again.
The mortality of carbon tetrachloride
poisoning has reached a high of 90 percent
in the past. Obviously, if used at all, the
chemical has to be handled with extreme
care and adequate control. But as long
as warnings on labels remain something
less than obvious, the public, largely un-
aware of the grim record of the past, will
remain wide open to the hazards. Less
toxic substitutes are available. The best
way to avoid exposure is to shun the
villain among cleaners.
( ) Locks Overhaul Injuries included in total.
6 THE PANAMA CANAL REVIEW
August 1, 1958
Three towns of the Civil Defense Vol-
unteer Corps organized classes during the
past month in "Home Care for the Sick
and Injured." The enthusiasm shown by
these Civil Defense Workers resulted in
an over-subscription by the members.
The classes have been limited to 16 mem-
bers each and so many responded that
it was necessary to organize two classes
in each of the towns.
As a result, the towns of Rainbow City,
Paraiso, and Santa Cruz will have two
classes a week for each of the two groups,
a total of 96 taking the training. The
instructors, who have been certified by
the local chapter of the American Red
Cross, are: For Rainbow City, Mrs. Rosa
Josephs; for Santa Cruz, Miss Violet
Henry;for Paraiso, Miss Janet A. Marshall.
Both Gorgas and Coco Solo hospitals
are cooperating by lending essential
equipment. The Schools Division is
assisting by providing classroom space.
During July, additional communica-
tions equipment for the Control Point
and Control Centers was received and
checked out by the communications staff
of the Civil Defense Corps. One addi-
tional shipment is still needed to equip
the three Control Points and both Con-
trol Centers completely.
The award for the construction of the
Main Control Center was granted during
the month and work will begin on this
important installation this month.
Philip L. Dade, Civil Defense Chief,
will depart for Battle Creek, Mich., this
week for study at the Federal Civil De-
fense Administration Staff College. He
is expected to return on September 1,
after a brief vacation.
AUGUST VOLUNTEER CORPS MEETINGS
Margarita-Aug. 6 at 9:oo a. m., at the Service Center
Rainbow City-every Wed. and Fri. at the School
Santa Cruz-every Mon., Tues., Thurs., and Fri. at
I the School
Paraiso-to be announced
t c-PAk b ..
Official Panama Canal Company Publication
Published Monthly At Balboa Heights, C.Z.
Printed by the Printing Plant, Mount Hope, Canal Zone
W. E. POTTER, Governor-President
JOHN D. McELHENY, Lieutenant-Governor
WILLIAM G. AREY, JR.
Panama Canal Information Officer
J. RUFUS HARDY. Editor
ELEANOR MCILHENNY, Assistant Editor
EUNICE RICHARD, Editorial Assistant
On sale at all Panama Canal Service Centers,
Retail Stores, and The Tivoli Guest House for 10
days after publication date at 5 cents each. Sub-
scriptions, $1 a year; mall and back copies, 10
Postal money orders made payable to the Pan-
ama Canal Company should be mailed to Editor,
The Panama Canal Review, Balboa Heights, C. Z.
August 1, 1958 7
Worth Knowing .
The Livability Programs get a send-off. Some time this month,
residents of Canal communities will receive a notice from the
Community Services Division, calling attention to plans being
considered for the improvement of various types of quarters. The
Community Services people believe that Zone householders, like
others elsewhere, will have some ideas of their own; the letter will
ask for improvement suggestions which, in turn, will be considered
by the committee in charge. Some of the improvements already
under consideration are the addition of jalousies, patios, store-
rooms, roof extensions, and louvres. The cost of these improve-
ments, according to the present program, would be covered by a
slight increase in the monthly rent of the house so improved. The im-
provement program has been worked out through the Civic Councils.
The Coco Solo Retail Store is being enlarged. Work will be started
soon on the renovation of the upstairs section of the Coco Solo
Retail Store. This second floor eventually will house the house-
wares, drygoods, and shoe sections now located in the Cristobal
Store. Plans for the rehabilitation of the building include instal-
lation of drop ceilings, fluorescent lighting, and awning-type win-
dows. With the transfer of these sections to Coco Solo early next
year, all retail store activities, with the exception of the Optical
Shop, will cease in Cristobal. The Optical Shop will continue to
operate during its regular hours in the same location on the ground
floor of the Cristobal Retail Store for the time being.
Another Oldtimer has retired in the States. Vernal R. Brown,
Personnel Representative in the Washington Office of the Panama
Canal Company, ended over 37 years of Canal service the first of
last month. His retirement certificate was presented to him by
Governor Potter, who was in Washington on a business trip at the
time. Except for a short period during the Korean War when he
was with the Office of Price Stabilization, Mr. Brown has been
connected with the Canal's Washington Office since 1919. All of
his work was with personnel.
SUMMARY OF POSTAGE RATES EFFECTIVE AUGUST 1, 1958
CANAL ZONE DESTINATIONS:
Letters and all other first-class mail ----------------------4c per ounce
Postal and post cards ------------------------------------ 3c each
Third-class mail ---------------------------------------- 3c first 2 ounces,
i Y2c each add. ounce
UNITED STATES, ITS TERRITORIES AND POSSESSIONS:
Letters and other first-class mail ------------------------4c per ounce
Postal and post cards --------------------------------- 3c each
Third-class mail ------------ ----------------------- 3c first 2 ounces,
iy c each add. ounce
Not exceeding 8 ounces in weight -----------
Over 8 ounces but not exceeding 70 pounds --
Air postal and post cards -----------------
Letters and letter mail------------------
Printed matter----------------- ...
All Other Countries:
Letters and letter mail ------------------
..------------- 7C per ounce
--------------- 8oc per pound
---------------- 5c each
-------------4c per ounce
------------- 4c first 2 ounces,
2c each add. 2 ounces
-----------8c first ounce,
5c each add. ounce
----------- 5c each
-----------4c first 2 ounces,
2c each add. 2 ounces
Post cards-------------------------------------- 5c each
All other articles -------------------------------. 7c per one-half ounce
Central and South America, Canada, and Caribbean Area:
Post cards------------------------------------- oc each
All other articles -------------------------------ioc per one-half ounce
Post cards .-- ...------------------------------ c each
Air letters (Aerograms) ------------------------- 5c each
Letters, except air letters, and all other articles -- 25c first one-half ounce
2oc each add. one-half ounce
Asia, Africa, Pacific Islands:
Post cards ----------------------------------.i5c each
Air letters (Aerograms) ----..---------------------.. 5c each
Letters, except air letters, and all other articles- -35c first one-half ounce
3oc each add. one-half ounce
New faces in new places
make month memorable
for Canal Zonians
on both sides of Isthmus
A new Judge arrived. Above, Loren B. Hillsinger is sworn in as the new Cris-
tobal Magistrate. From left, Mrs. Hillsinger, the new Judge, Judge E. I. P.
Tatelman, who occupied the Cristobal bench for 28 years, Judge John E.
Deming, who serves as Magistrate in Balboa, and Mrs. Deming.
.*,,0... ".', "I..;,. ,I.- .. W -" -j-;1 "
July was a busy month for Atlantic
siders. Above, Scouts raise the flag
on July 4 at Margarita; below, voung-
sters help open Coco Solo Theater.
PRR men, both: G. M. Smith, Panama Railroad manager
who left this week to return to the Pennsylvania Railroad
and R. E. Pinkham, of the Pennsylvania, who succeeds him.
A new Lieutenant Governor arrived July 9. Above, Col. and Mrs. John D. McElheny, with Phyllis Ann and Bruce
Daniel, aboard the SS "Cristobal." Col. McElheny succeeds Col. H. M. Arnold who left the Canal Zone July 12.
At Gorgas Hospital, officials met
with Dr. Edwin L. Crosby, second from
left, Director of the Joint Commission
on Accreditation of Hospitals. Clock-
wise, from left: Col. J. R. Vivas, then
Acting Director of Gorgas; Dr. Crosby;
Ray Amberg, President-elect of the
American Hospital Association; Wal-
ter Allen, Assistant Director; Maj. R.
L. Hughes, Training Officer; and Ron-
ald H. Wilson, Administrative Intern.
Stock control and other supply matters
were being studied last month by rep-
resentatives of the A. T. Kearney &
Co., consultants to the Supply Division.
Two retail store men and an account-
ant are working with them. From left:
Charles Latham, L. M. Favrot, the two
consultants Jan Fortune and J. Russell
Heritage, and C. J. O'Sullivan.
7- It 71 71
If you were rummaging around in your
attic-or the Canal Zone equivalent
thereof-and happened upon a certain
old Canal Zone stamp, you might discover
that you were suddenly worth $2,000 more
than you had been a few minutes earlier.
The possibility of finding a genuine
one-cent Vasco Nufiez de Balboa stamp
of the 1909-21 series, with its center and
Canal Zone overprint inverted, is so un-
likely, however, that stamp experts do
not recommend a rush on all attics.
In the first place, there were very few
of these freak stamps printed and, in the
second place, so many early Canal Zone
stamps have been counterfeited-illegal
reproductions and overprints made-that
it is very difficult to have a rare early-day
stamp authenticated. Andwithout authen-
tication the stamp is practically worthless.
This particular Canal Zone stamp is
the most valuable of the local stamps
listed in Scott's Standard Postage
Stamp Catalogue, which describes it-
self as "The Encyclopedia of Philately."
Next most valuable of the Canal Zone
stamps-it is cataloged at $1,250-is a
five-cent, two-color Panama stamp of the
1909-21 series, which has the head from
the two-cent in the center. This is prob-
ably the most sought after Canal Zone
error. Less than a dozen are known to
exist. Like the one-center, it is hardly
likely to be found or, if found, authenti-
cated. All have been cancelled.
Age has little to do with the value of
stamps, Canal Zone or otherwise. One
of the old stamps, a "bistre-brown" 50-
cent Panama stamp issued in 1905 with
the overprint "Canal Zone" on the map
of Panama on its face, is sufficiently rare
to be cataloged at $75, according to
Scott. But another, a one-center of the
same year, is listed at only ten cents today.
In all, Scott lists 148 different Canal
Zone stamps of the "regular" or "boat-
mail" variety, 25 airmail stamps, 20 air
post official stamps, 29 postage due
stamps, and 8 official stamps. This does
not mean that 230 separate issues of
stamps have been made in the 54 years
that the Canal Zone has been in the
stamp business; the catalogue refers to
individual stamps within an issue, or gen-
The 1939 series of "before and after"
stamps would count as one issue, but
contained 16 stamps in various denomi-
nations, each listed by Scott.
The first Canal Zone stamps went on
sale June 25, 1904, the day after the
Canal Zone Postal Service was estab-
lished. These were Panama stamps
with the words "Canal Zone" hand-
stamped on the face and were obtained
from Panama. In this first issue there
were 5,000 two-cent stamps, the same
number of 10-cent stamps, and 8,000
of the five-cent variety. Not all of these
were sold, however, since the unused
stamps were burned on July 18, 1904,
when they were replaced by United
States postage stamps with the Canal
Zone-Panama overprint. These had
been prepared in the United States.
On December 11, 1904, in conformity
with the so-called Taft Agreement which
had been signed in Panama eight days
earlier, millions of the overprinted United
States stamps were withdrawn and later
burned. They were replaced on Decem-
ber 12, 1904, by Panama stamps with
the Canal Zone overprint placed on the
stamps by the Panama Canal Press.
On May 28, 1924, President Calvin
Coolidge, acting under authority of a
joint resolution of Congress, abrogated
the Taft Agreement. The first of July
that year United States postage stamps,
the first issue of which was overprinted
locally with the words "Canal Zone,"
were placed on sale. It was not until
October 1, 1928, however, that the first
Canal Zone permanent issue stamp, a
two-cent stamp bearing the picture of
Col. George W. Goethals, was available.
Today the only vestige remaining of
the old overprinted United States stamps
is the two-cent postal card.
The first permanent series of airmail
stamps went on sale November 18, 1931.
They bore the picture of a freighter trans-
iting Gaillard Cut with a trimotor plane
Stamp collectors who are up to date
on things philatelic could probably de-
scribe in detail any issue made here
since 1904, but the average stamp pur-
The Canal Zone desires to estab-
lish a permanent exhibit of Canal
Zone stamps in the Museum and
needs single stamp and plate blocks
of these issues. Credits will be given
in the display to those who help
make this exhibit possible.
10 THE PANAMA
chaser would be hard put to tell much
more about the airmail stamp he has
been buying for the past seven years
than that it is brown and has a winged
globe on it. He does not realize that
below the winged globe is the outline
of the Caribbean shoreline.
Just about every conceivable category
of subject has been covered in Canal
Zone stamps of the past 54 years. There
were stamps with the pictures of Spanish
heroes of days long gone, like Francisco
Hernandez de Cordoba and Vasco Nufiez
de Balboa. There were stamps with pic-
tures of more modern Panamanian polit-
ical figures like Jose de Obaldia, Jose de
Fabrega, and Tomas Herrera.
There were members of the Isthmian
Canal Commission: Goethals-the only
Zonian ever to appear on stamps of two
series and two different denominations,
two- and three-cent, Gorgas, Hodges,
Gaillard, Jackson Smith, Rousseau, Black-
burn, and Sibert.
Canal Zone stamps have borne histor-
ical pictures: Balboa taking possession of
the Pacific Ocean (as it is described by
Scott) and the Gold Rush series. There
have been Canal Zone scenes galore: The
Locks, the Cut, the Balboa drydock, the
SS Panama in the Cut, the SS Cristobal
in Gatun Locks, and the whole 25th an-
niversary series of before and after pic-
tures of Balboa, the Cut, Gatun Locks,
Gatun Spillway, etc.
There have been special commemora-
tive stamps: the West Indian Com-
memorative stamp of 1951, the Railroad
Centennial Stamp, and the more recent
Gorgas Hospital stamp.
Airmail stamps have kept pace with
the development of air transportation.
The first airmail stamp bore the pic-
ture of a trimotored plane. A later issue
carried a picture of a DC-3 over Sosa
Hill, and a whole series showed "clipper"
planes-the good old amphibians of the
pre-war and early war years. The clip-
pers were flying over (See page 12)
CANAL REVIEW August 1, 1958
Earl F. Unruh, Director of Posts, looks over a collection of
miscellaneous Canal Zone stamps, some old, some new.
Employees who were promoted or trans-
ferred between June 15 and July 15 are
listed below. Within-grade promotions are
CIVIL AFFAIRS BUREAU
Sylvan A. Welty, from Substitute Win-
dow Clerk, Postal Division, to Policeman,
Edward L. Brady, from Air Hoist Oper-
ator, Locks Overhaul, to Substitute Win-
dow Clerk, Postal Division.
Jo Anne Sorrell, from Student Assistant,
Office of the Comptroller, to Clerk-Stenog-
rapher, Police Division.
Mrs. Jean A. Liebner, from Substitute
Teacher to Recreation Assistant, Division
Walton P. Sellers, from Towing Locomo-
tive Operator, Locks Overhaul, to Police-
man, Police Division.
OFFICE OF THE COMPTROLLER
Gilberto Young, Accountant, from Meth-
ods and Relief Staff to General Ledger and
Edgar R. McArthur, from Supervisory
Storekeeper, Locks Overhaul, to Time,
Leave, and Payroll Clerk, Accounting Di-
vision, Payroll Branch.
Mrs. Mercedes A. Borrell, from Tabu-
lating Equipment Operator to Tabulation
Project Planner, General Ledger and Pro-
ENGINEERING AND CONSTRUCTION
John H. Slattery, from Machinist, Locks
Overhaul, to Pumping Plant Operator,
Water and Laboratories Branch.
John W. Acker, from Automotive Ma-
chinist, Motor Transportation Division, to
Pneumatic Tools and Magneto Electrician
II, Maintenance Division.
Thomas F. McCullough, from Usher,
Motion Picture Unit, to Apprentice (Elec-
trician), Dredging Division.
William J. Nickisher, Jr., Kenneth R.
Atkinson, from Apprentice Wireman to
Wireman, Electrical Division.
Leslie W. Croft, Jr., from Powerhouse
Operator Apprentice to Powerhouse Oper-
ator, Electrical Division.
Margaret P. Fessler, from Time and
Leave Clerk, Locks Overhaul, to Clerk
(Typing), Electrical Division.
Douglas C. Schmidt, from Air Hoist Op-
erator, Locks Overhaul, to Pumping Plant
Operator, Water and Laboratories Branch.
Carl T. Tuttle, from Apprentice Plumber
to Plumber, Maintenance Division.
Charles A. Sherry, from Apprentice to
Electronics Mechanic, Electrical Division.
Dr. Roland N. Icke, from Hospital Res-
ident to Medical Officer, Gorgas Hospital.
Mrs. Eletheer B. Catron, from Staff
Nurse, Gorgas Hospital, to Public Health
Mrs. Gertrude F. Mager, from Head
Nurse, Locks Overhaul, to Staff Nurse,
Medicine and Surgery, Gorgas Hospital.
Dr. Edwin J. Tanquist, Dr. Francis V.
Schloeder, Jr., Dr. John H. Beggs, Dr.
Richard M. Wahl, from Intern to Hospital
Resident, Gorgas Hospital.
Yolanda C. Orsini, Medical Technician,
from Division of Sanitation to Coco Solo
Dr. William T. Bailey, from Hospital
Resident to Medical Officer (Internal Med-
icine), Gorgas Hospital.
Martha R. Podbielski, from Clerk-Sten-
ographer, Executive Planning Staff, to Sec-
retary, Administrative Section, Health Bu-
Martha E. Mastellari, from Clerk-Sten-
ographer to Clerk-Typist, Gorgas Hospital.
George J. Kredell, from Machinist, Pa-
cific Locks Overhaul, to Lock Operator
Machinist II, Atlantic Locks.
Lowell H. M. Brentner, from Guard,
Locks Overhaul, to Towing Locomotive
Operator, Atlantic Locks.
Charles A. Smith, from Apprentice Pipe-
fitter to Pipefitter, Industrial Division.
Henry E. May, Jr., from Apprentice
Refrigeration Machinist to Marine Ma-
chinist, Industrial Division.
James L. Rinehart, from Apprentice Ma-
chinist to Marine Machinist, Industrial
Justin L. Bonanno, from Towboat Mas-
ter to Pilot-in-Training, Navigation Di-
Carleton P. Hallett, Jr., from Guard,
Locks Security Branch, to Towing Locomo-
tive Operator, Locks Division.
Charles J. Roth-Roffy, Jr., from Lead
Carpenter Foreman, Locks Overhaul, to
Towing Locomotive Operator, Locks Di-
Mrs. Margaret E. Murphy, from Chief,
Non-Manual Branch, Wage and Classifica-
tion Division, to.Salary and Wage Analyst,
Office of the Personnel Director.
Mrs. Margaret A. Fabjance, Clerk-Typ-
ist, from Employment and Utilization Di-
vision to Office of the Director.
Charles A. Garcia, from Personnel Assist-
ant to Placement Officer, Employment and
SUPPLY AND COMMUNITY SERVICE
George S. McCullough, from Foreman to
Lead Foreman, Buildings and Equipment,
TRANSPORTATION AND TERMINALS
Mrs. Helen E. Chisholm, from Account-
ing Assistant to Cost Accounting Clerk,
Motor Transportation Division.
George A. Black, Jr., from Tabulation
Projects Planner, Accounting Division, to
Cost Accounts Supervisor, Motor Transpor-
Gordon R. Deuermeyer, James A. Dor-
sey, William H. Anderson, from Lead Track
Foreman II to Lead Railroad Track Fore-
man, Railroad Division.
James J. Belcourt, Carl W. Warner,
from Lead Yard Foreman III .to Lead Rail-
road Yard Foreman, Railroad Division.
Promotions which did not involve change
in title follow
Mrs. Jeanne W. Pierce, Physical Thera-
pist, Gorgas Hospital.
Murray Klipper, Richard Swearingen,
Construction Representative, Power Con-
Dr. Gabriel Kourany, Dr. Rogelio Arose-
mena, Medical Officer, Gorgas Hospital.
Dr. Stephen J. Plank, Medical Officer,
Coco Solo Hospital.
George R. Downing, Marine Inspection
Assistant, Navigation Division.
John S. Pettingill, Supervisor, Division
Retirement certificates were presented
the end of July to the following employees
who are listed alphabetically, together with
their birthplaces, positions, years of Canal
service, and their future addresses:
Prank 0. Bryan, Texas; Lockmaster,
Locks Division; 31 years, 3 months, 22
Stonewall J. Bull, Virginia; General Me-
chanical Foreman III, Locks Division; 30
years, 2 months, 9 days; Florida.
Harry F. Cody, Pennsylvania; General
Foreman, Water System, Maintenance Di-
vision; 33 years, 8 months, 15 days; Zephyr
Gustaf A. Peterson, New York; Power-
house Operator-Dispatcher, Electrical Di-
vision; 28 years, 4 months; St. Petersburg,
Mrs. Mildred M. Stone, New York; Tel-
ephone Operator, Electrical Division 32
years, 16 days; Jamestown, N. Y.
August 1, 1958 THE PANAMA CANAL REVIEW
PROMOTIONS AND TRANSFERS
June 15 through July 15
Ancon -.---------------------August 6
Cristobal .-------------------. August 16
Ancon -----------------------.. August 23
FROM NEW YORK
Cristobal -------------------August 8
Ancon ----------------------- August 15
Cristobal ---------------------August 26
Southbound ships which leave New York Friday
are in Haiti the following Tuesday. Those which sail
from New York Tuesday spend Saturday in Haiti.
Northbound, the ships stop in Haiti two days after
clearing Cristobal: Monday for those which sail from
Cristobal Saturday, and Friday for those which clear
Of the four well-known Zonians who
rounded out 30 years of government service
last month, William P. Mornhinweg, Jr.,
leads July's list of anniversaries by virtue of
the fact that he has nine days more service
than his closest runner-up, Paul A. Bentz.
Mr. Mornhinweg (whose name is pro-
nounced as if it were spelled Morningway)
has been with the Pacific Locks ever since
he joined the Canal organization in April
1929. He has held a number of locks posi-
tions-Towing Locomotive Operator, Jun-
ior Control House Operator, Assistant Sup-
ervisor, Lockmaster, and Electrical Super-
visor-and is now Chief Foreman of Locks
Operations at Pedro Miguel.
Born in Port Chester, N. Y., he served
during the first World War as an Army
Mr. Bentz, second on the 30-year list in
point of service, is General Counsel of the
Panama Canal Company. A native of
Salem, Neb., he holds a law degree from
the University of Nebraska. He began his
Canal connection in 1928 when he was ap-
pointed to make the first codification of the
Canal Zone's laws, a job he started here
and finished in the States. He has been a
Zonian since 1933.
George 0. Lee, Science Instructor at the
Canal Zone Junior College since 1936, came
to the Canal Zone 30 years ago to teach
science at Balboa High School. He is well
known internationally for his knowledge of
the natural science not only of the Isthmus
but neighboring parts of Central and South
America. He comes from Minneapolis.
Russel J. Jones, Chief of the Rates and
Analysis Branch of the Budget and Rates
Division, was born in Scranton, Pa., but
has been an Isthmian since he was six years
old. His father, S. B. Jones, was with the
Electrical Division for many years. "Rusty'
Jones held student-assistant jobs with the
Canal when he was a boy but has been in
accounting work for the past 28 years, or
all of his adult service.
For half a dozen Company-Government
employees, July was Silver Anniversary
month. Alphabetically they are:
Harry F. Butz, Supervisory Sanitary En-
gineer for the Atlantic side section of the
Maintenance Division's Water and Labora-
tories Branch. Born in Ancon, he is a
second-generation employee. All his service
has been with the Maintenance Division.
Jack Campbell, Auditor in the Internal
Audit Branch. He was born in Camden,
N. J. Mr. Campbell has worked with a
number of Canal units, including the Spe-
cial Engineering Division, and has been in
accounting work since 1938.
James 0. Catron, a member of the Police
Division on duty at the Gamboa Peniten-
tiary. Born in Virginia, in a poetically-
named town called Rural Retreat, he came
to the Canal Zone with the Second Field
Artillery in the mid-1930's and has been on
the Police force since 1940.
Guy R. Lord, Chief Senior Towboat En-
gineer in the Navigation Division's Ferry
Service. Orange, Vt. was his birthplace and
he has been an Isthmian since 1935. He
shuttles back and forth across the Canal on
the ferryboat Presidente Porras.
Richard G. Nichols, Police Lieutenant
assigned to the Cristobal Police District.
A native of Dobson, N. C., "Nick" has
been on the Canal Zone Police force since
August 1, 1958
THE PANAMA CANAL REVIEW
7:15 a. m. to 4:15 p. m., workdays .
Julio Best, of Paraiso, leads a double life.
Five days a week, between 7:15 a. m.
and 4:15 p. m., he is an office helper in
the Machine Accounting Section of the
Accounting Division. In its busy room
in the basement of the Administration
Building, he does general office work and
is learning to operate key-punch and
But after he gets home he slips into
a sport shirt, puts on a big coverall-
apron and sets to work turning out
rated cakes for wedding and christening
and birthday celebrations.
Young Julio-he is only 22-isn't in the
cake-decorating business professionally;
his productions go to friends and relatives
His step-grandmother taught him to
make the cake-a basic fruitcake-which
is the foundation for all his creations; he
learned some of the tricks of decoration
when he was working at the Balboa
Theater as a porter three years ago. He
devoted whatever spare time he had to
watching the professional decorators in
Early this year he spent three evenings
as a guest at a cake-decorating class in
Panama. The instructor invited him to
enter a cake in the contest which took
place when the class graduated. He did-
and walked off with the first prize and
There's a lot more to making fancy
cake decorations than the uninitiated
might suspect. Mixing the icing, which
is a concoction of confectioners sugar,
egg whites, and lime juice, is the most
difficult part, especially when the icing
is to be colored. It is hard to get exactly
the same tint twice, and on rainy days
the icing melts before it can be shaped.
Julio has rigged up a couple of con-
traptions to help fight the humidity, but
only quantity mixing takes care of the
color problem. On a damp night he sur-
rounds the cake with three 100-watt light
bulbs to keep the icing dry; he has also
fitted a foil-lined wooden box with a
heater and uses this to store the leaves,
flowers, and fruit which he shapes with
tiny cellophane tubes.
It takes him about two weeks of even-
ing work to make the decorations for a
wedding cake. After these are all done
after work, and on weekends
it takes another two days to put them
in place and tie them together with loops
and swirls and bowknots of icing. One
of the trickiest and most time-consuming
of the decorations, which is done right
onto the cake itself, is what Panamanians
know as punta perdida and what Amer-
icans call lace-work.
The young cake-artist office-helper
was born in Colon and is a graduate of
La Boca High School. His father,
Douglas C. Best, is an illustrator work-
ing at the Balboa Theater, where he
does most of the posters and other
signs the theater needs. Julio has been
working at the Administration Build-
ing since October 1956. He was trans-
ferred to his present job from the mes-
senger station outside the Governor's
1940. During the 1953 visit to the Isthmus
of Britain's Queen Elizabeth II, he was one
of the men who played a major part in her
William G. Rowe, Chief Senior Towboat
Engineer in the Navigation Division. He
comes from Long Island and is now serving
aboard the tugboat Gatun.
Of the seven men and one woman who
completed 20 years of Government service
last month, three have unbroken Canal
service. They are:
Capt. Elmer G. Abbott, Assistant Port
Captain at Balboa. A native of Oakland,
Calif., he served 15 years as a Canal pilot
before he was appointed to his present posi-
tion in 1953.
David W. Hawthorne, Supervisory Coffee
Specialist in the Supply Division. Born in
St. Stephen, New Brunswick, Canada, he is
the man who knows how much of which of
the various coffee blends go together to
make a tasty brew.
J. Rufus Hardy, Chief of Press and Pub-
lications and Editor of THE PANAMA CANAL
REVIEW. He comes from Sycamore, Ga.,
an anyone can plainly tell; all of his Canal
service has been in the Press office. He
founded and has edited THE REVIEW since
its beginning eight years ago.
Other 20-year employees, as of June, are:
Charles E. Chase, who was born in San
Jose, Costa Rica, and is a Foreman Crib-
tender in the Terminals Division. He is one
of the comparatively few employees to hold
a dual rating-he is also a Relief Collector
on Panama Railroad trains.
John W. Dwyer, a native of Boston,
Mass. He is a Fire Sergeant, who rotates
among the Margarita, Gatun, and Fort
Malcolm Gathedral, Chief Engineer of
the SS Ancon. Born in Edinburg, his service
with the Panama Line was interrupted only
by World War II. He has been assigned
continuously to the Ancon.
Capt. Francis DeS. Gorman, Master of
the SS Cristobal: A native Brooklynite, he
joined the Panama Line in 1936 and has
served on all of the Panama Line's ships.
During the war he was in the Navy with
the rank of Lieutenant Commander.
Mrs. Anita Hudson McKeown, File Clerk
in the Administrative Branch and the only
native Zonian in the group. Born at Gor-
gona, she is the daughter of H. H. Hudson,
the Canal's Claims Officer for many years.
Nineteen employees of the Company-
Government completed 15 years of Gov-
ernment service last month. Those whose
Canal service is unbroken (although in some
cases they have additional service with
other federal agencies or in the armed
Mrs. Fronia Fender, Staff Nurse, Coco
Solo Hospital; Frank E. Hirt, Postal Clerk,
Balboa Heights Post Office; William J. Kil-
gallen, Position Classifier, Wage and Class-
ification Division; C. B. Ocheltree, Towing
Locomotive Operator, Pacific Locks; Mrs.
Manuelita 0. O'Sullivan, Disability Relief
Officer, Personnel Bureau; R. P. O'Connor,
Jr., Customs Inspector, Balboa Customs
Office; Mrs. Mildred L. Randall, Cash Ac-
counting Clerk, Motor Transportation Di-
vision; Mrs. Anna B. Rheney, Medical
Radiology Technician, Gorgas Hospital;
Donald B. Tribe, Supervisory Analytical
Chemist, Water and Laboratories Branch,
Maintenance Division; Tracy P. White,
Signal Maintainer, Railroad Division; and
Leon S. Willa, Supervisory Dairy Manu-
facturing Technologist, Supply Division.
Other 15-year employees are: Mrs. Doris
C. Etchberger, Statistical Clerk, Division of
Schools; Boyd W. Ferry, Head Foreman
Sheetmetal Worker, Maintenance Division;
Mrs. Kathryn C. Hummer, Clerk (Typing),
Reproduction Plant, Administrative Branch;
Thomas P. Hunt, Liquid Fuels Gauger,
Terminals Division; Mrs. Armella R.
Hutchings, first grade teacher at Balboa;
Mrs. Vera E. Jones, fourth grade teacher
at South Margarita School; Thomas C.
Lear, Funeral Director, Gorgas Hospital;
and Thomas S. McKibbon, Supervisory
Electrical Engineer, Engineering Division.
STAMPS OF THE CANAL ZONE
(Continued from page 10) Fort Amador, over
the Cut, at Cristobal Harbor, and coming
in for a landing. The current airmail
series is planeless.
When Scott's Catalog comes out next
year it will have to do considerable
updating on Canal Zone issues. Several
new stamps are scheduled between now
and the end of the year. There will be the
new denominations of airmail winged-globe
issue; there will be the new stamped en-
velopes and a Canal Zone postal card to
replace the overprinted U. S. postal card;
and there will be the Roosevelt centennial
stamp. All of these were described in
recent issues of THE REVIEW.
12 THE PANAMA CANAL REVIEW
August 1, 1958
SHIPS AND SHIPPING ,
ANOTHER BANNER YEAR IN TRANSITS AND TOLLS
AS LARGE COMMERCIAL SHIPS EXCEED 9,000
When final figures were in for the fiscal
year which ended June 30, Panama Canal
statisticians found that the waterway had
set two new all-time records, had chalked
up its seventh consecutive record year for
transits, and had collected over $3 million
more in tolls than in any previous year
in its history.
The year's record for ocean-going com-
mercial shipping was 9,187 vessels; this
was the first time that commercial ship-
ping in the ocean-going category had
exceeded 9,000. It brought to 206,734
the grand total of large commercial ves-
sels to use the Panama Canal since the
SS Ancon made the first commercial
transit on August 15, 1914.
Last October, the Grace liner Santa
Mercedes made the 200,000th commercial
transit of the waterway, less than eight
years after the SS Nevadan of the Amer-
ican Hawaiian Line became the 150,000th
Totals for fiscal year ---
customer, on April 26, 1951, and 19 years
after the Isthmian Steamship Line's Steel
Export made the 100,000th transit, on
October 10, 1938.
At the rate that Canal traffic is in-
creasing, the 250,000th transit should
be made by at least 1963 and the 300,-
000th commercial ship should go
through the Panama Canal by 1969.
Indicative of the way in which Canal
traffic has been increasing steadily in the
past decade is the following, from the
PANAMA CANAL REVIEw for August 1950:
"Transits by commercial vessels of
more than 300 net tons totaled 5,448
last year, the highest number since the
fiscal year 1940 and the only year in that
10-year period when these transits ex-
During the past fiscal year, Canal tolls
totaled $42,834,000, a new record. This
figure was higher by $3,180,000 than tolls
CANAL TRANSITS -COMMERCIAL
U. S. Government vesse
Total commercial and U. S.
MONTHLY COMMERCIAL TRAFFIC AND TOLLS
Vessels of 300 tons net or over
(In thousands of d
AND U. S. GOVERN
I Fiscal Year
L -- _
*Vessels under 300 net tons or 500 displacement tons.
**Vessels on which tolls are credited. Prior to July 1, 1951, Government-operated
for the previous year. Of the $42,834,000,
$41,843,000 was received from commer-
cial shipping and $991,000 represented
credits for transits of government ships.
In addition to setting up a new all-
time record, the past fiscal year was
the first time that tolls for commercial
shipping had exceeded $40 million.
Compare this with the following from
the August, 1950, REVIEW:
"The amount of tolls, $24,230,000, was
the highest collected in any fiscal year
since 1931, this amount having been ex-
ceeded in only four years of the Canal's
Cargo tonnage during fiscal year 1958
failed by 3.2 percent of achieving the
record volume of the previous fiscal year.
In fiscal year 1958, 48,124,809 long tons
of commercial cargo moved through the
Panama Canal. This was sufficient to
place fiscal year 1958 in second place in
the Canal's history.
The volume of cargo moving from
the Pacific Ocean to the Atlantic Ocean
through the Canal did, however, estab-
lish a new record by some 1,010,000
long tons. Cargo moving in the oppo-
lollais) site direction was down by some 2,588,-
1938 000 long tons from the previous year.
---- The decline in the Atlantic-Pacific
$2,030 movement is attributed to a sharp re-
2,195 duction in shipments to Japan which
1,981 were down by some 2,240,000 long tons
1,893 from the previous year. A large part of
1,845 this decline was in shipments of scrap
2,016 New records were set during the past
1,961 fiscal year by a number of commodities
1,887 shipped through the Canal. Fiscal year
1,801 1958 was a record year for shipments of
$23,170 iron ore. Figures for the fiscal year just
concluded were higher by some 950,000
tons than for the previous year. Most
MENT of the iron ore was in shipments from the
west coast of South America to the east
coast of the United States and to Europe.
1938 These figures are particularly interest-
ing in view of the recession in the United
Banana shipments through the
--- Canal also reached an all-time high,
5,524 and exceeded the one million figure for
931 the first time. During the past fiscal
--- year, a total of 1,082,000 long tons of
6,455 bananas moved through the Canal.
This figure was approximately 212,000
441 long tons higher than the previous fis-
----- cal year when banana production had
been curtailed because of bad blow-
6,896 downs. Most of the banana shipments
were made from the west coast of
ships South America to the east coast of
ps the United States.
Despite a sharp drop-off during the
13 second half of the fiscal year, shipments
August 1, 1958
THE PANAMA CANAL REVIEW
of coal and coke through the Canal estab-
lished a new fiscal year record. Included
in the past year's figures were coal ship-
ments of about 69,000 tons from Peru to
Petroleum shipments through the Pan-
ama Canal were higher during fiscal year
1958 than for the previous fiscal year but
failed to reach the record set in 1956.
There were marked declines in two
major commodities. Even with large
movements of sugar from Cuba to Vladi-
vostok, sugar tonnage was well below
that of the past three fiscal years. It
was the "worst sugar year" for the Canal
since 1952, according to statisticians.
Wheat shipments were also down, a
decline of about 660,000 tons from the
previous year, which had been an all-time
record. During that record year, how-
ever, France had a wheat-crop failure and
turned to Canada to supply this need. .
There was no marked change in ship-
ments over the main trade routes through
the Panama Canal. Some increases were
shown in the United States intercoastal
trade; in the trade between the west coast
of South America and the east coast of
the United States, largely due to the in-
crease in iron-ore shipments; in the trade
between Europe and Canada, because of
lumber shipments; and in the trade route
between the west coast of Central Amer-
ica and the east coast of the U. S.,
because of record banana shipments.
BRIGHT RED SHIPS
Canal workers rubbed their eyes and
reached for their dark glasses last week
when, not one-but two-bright red
ships started the northbound transit.
The two vessels, painted fire-engine
red, arrived in Balboa July 22 from the
west coast of South America. One was
the "Arabian Reefer," bound for Ant-
werp, and the second the "Mama Dan"
bound for New York. Both are oper-
ated by the J. Lauritzen Company of
The practice of painting all Company
vessels bright red was started only re-
cently although the nine Dan ships,
which are built for the polar trade
have been this brilliant hue for some
time, Fernie and Company, agents for
the line, here stated.
The bright color was found to in-
crease visibility and was adopted as a
safety factor especially for those vessels
which traveled through the thick fogs
found near the snow- and icebound
For collectors of interesting facts on
shipping in the Panama Canal, THE RE-
vIEW presents the following:
Since 1951, there has been a significant
trend in the number of clear-Cut and
daylight clear-Cut transits. This is of
great importance because of its effect on
the capacity of the Canal. From fiscal
year 1955 through fiscal year 1958, the
number of vessels with a beam of 79 feet
or over has increased by over 500 percent,
and by over 25 percent when fiscal year
1958 is compared to fiscal year 1957.
Since 1955, the percentage of ships
with beams of 86 feet or (See page 15)
Ores, various ----------------------
Canned food products ------------------
Nitrate of soda -----------..------------
Metals, various ------------------------
Petroleum and products (excludes asphalt)---
Food products in refrigeration (except fresh
Cotton, raw ------------------------
Fruit, fresh ---------------------------
Petroleum and products (excludes asphalt) --
Coal and coke ------------------
Iron and steel manufactures -----------------
Cotton, raw -------------------
Paper and paper products -------- ----
Metals, various ----------------
Automobiles and parts -----------------
Costa Rican ------
Dominican Rep. -
Soviet (USSR) --
Yugoslavian ---- -
9,187 48,124,809 8,579 49,702,200
14 THE PANAMA CANAL REVIEW
Principal commodities shipped through the Canal
(All figures in long tons)
PACIFIC TO ATLANTIC
I Fiscal Year
ATLANTIC TO PACIFIC
Canal Commercial Traffic by Nationality of Vessels
I _Fiscal Year
August 1, 1958
50 Years Ago
"I doubt if there is any piece of work
undertaken on behalf of the American
people in recent years where the Amer-
ican people have more reason to be proud
than of the work done on the Panama
Canal," President Theodore Roosevelt
said 50 years ago this month as he pre-
sented to Congress a report made by a
special committee appointed to investi-
gate labor and other conditions on the
Isthmus of Panama. "The success has
literally been astounding. Five years ago
when we undertook the task no sane man
would have dared hope for the results
which have already been achieved."
Work on the Canal was proceeding at a
record rate. Again in August 1908, all
previous rainy season excavation records
were broken when 3,252,506 cubic yards of
rock and soil were removed, all but 100,035
of these from the Canal prism. Because
steam shovels working in the Cut were be-
ginning to run into a greater proportion of
rock than they had encountered before, ICC
forces began experimenting with a special
four-yard rock dipper, similar to those used
on 95-ton shovels on the Mesabi iron range.
This proved so successful that all of .the
Canal's 95-ton shovels were so equipped.
A slide involving the south slope of the
hill through which the Miraflores Tunnel
was excavated carried away the timber
lining of the earth section. Construction
forces suspended concreting of the inside
center section until they could build a
retaining wall at the foot of the slide.
Rainfall at Bohio on August 7, 1908, set
an Isthmian record for a single shower,
and washed away part of the railroad road-
bed between Bohio and Frijoles. Between
noon and 9:45 p. m. the almost continuous
downpour totaled 8.82 inches, 7.42 inches
of this between 2:30 and 5:30 p. m.
25 Years Ago
Gov. J. L. Schley was formally notified
that National Industrial Recovery Act
funds included $1 million for The Pan-
ama Canal with the Canal administration
having final say as to how it would be
Individuals and organizations inter-
ested in helping to make the Canal Zone
observance of Theodore Roosevelt Cen-
tennial Year the most significant tribute
possible are being urged to submit their
suggestions to the local Committee at
The Memorial Committee appointed
by Governor Potter already has made
considerable progress in its overall plan-
ning of an appropriate program for such
an occasion and will welcome all con-
structive ideas, whether a specific activity
which should be included in the Novem-
ber 9 to 15 program or some part a par-
ticular organization would like to play
in the week-long observance, or otherwise.
Preparations are being made for a series
of events which will emphasize the role of
President Roosevelt in the building of the
Panama Canal and which is expected to at-
tract a number of distinguished visitors
spent. With these funds, the Canal ad-
ministration decided to start work on the
Balboa High School-Junior College build-
ing, quarters in Gatun, and Docks 14
and 15 in Cristobal.
The work-week for these projects was to
be 30 hours in order to provide employment
for as many workers as possible. No one
was to be brought from the United States
for the NIRA jobs.
The Panama Canal announced that as
of September 1 rates on electricity pro-
vided its employees would be reduced
about 11 percent. This would mean about
65 cents off each monthly bill.
The first of 20 shipments of steel to be
used on the Golden Gate Bridge transited
the Panama Canal 25 years ago this month
aboard the SS "Portmar" of the CalmarLine.
10 Years Ago
In a speech before the American So-
ciety of Civil Engineers, meeting in
Seattle, the Society's Executive Secretary
urged that the Panama Canal be con-
verted to a sea-level canal which, he said,
could not be closed by bombing.
And in a press conference on the Isthmus,
Panama's President Enrique A. Jimenez
forecast the shutdown of Canal Zone hotels
to all tourist or commercial trade as soon
as the new Hotel El Panama was com-
pleted. He said that the new hotel, for
which the Export-Import Bank had granted
a $2 million loan, would provide adequate
hotel service for the Isthmus.
Fifty employees of the Mechanical Di-
vision's Boiler Shop went on furlough
during August, 10 years ago, as a result
of continued lack of work. Earlier in the
month a smaller number from the same
shop had been furloughed.
One Year Ago
Ocean-going commercial shipping using
the Panama Canal set a new record a
year ago this month when 812 ships of
300 tons or over passed through the
waterway. The August record was four
higher than the previous record, set in
from the United States as well as present
and former Canal employees.
The Zone's Theodore Roosevelt Com-
mittee, which is coordinating its arrange-
ments with the Theodore Roosevelt Cen-
tennial Commission appointed in the
United States by President Eisenhower,
is headed on the Pacific side by Mrs. C.
S. McCormack, of Ancon, and on the
Atlantic side by Gerard K. Schear, of
Margarita, with plans being coordinated
through William G. Arey, Jr., Panama
Canal Information Officer.
Members of the Committee appointed
by the Governor included C. W. Chase, Jr.,
Fred DeV. Sill, James D. MacLean, the late
B. G. Sanders and Mrs. Sanders, M. M.
Seeley, Frank Y. Thompson, Thomas L.
Sellers, Henry T. Carpenter, Mrs. Frances
Whitlock, Ellis Fawcett, Philip L. Steers,
Jr., Edward A. Doolan, Robert Risberg,
and Lt. Col. Robert D. Brown, Jr.
August 1, 1958 THE PANAMA CANAL REVIEW
(Continued from page 14) greater has
increased even more. In fiscal year 1955,
there were 13 such ships; in fiscal year
1956, 26; in fiscal year 1957, 71; and dur-
ing the fiscal year just concluded, 109.
There has been a marked increase in the
past four years of large passenger ships re-
quiring daylight clear-Cut transits. By fis-
cal years, these large passenger ships were:
1955, 15; 1956, 26; 1927, 34; and 1958, 42.
Meanwhile, the number of smaller pas-
senger ships transiting the Canal is de-
creasing. By years: 1955, 39; 1956, 41;
1957, 48; and 1958, 27.
Aside from the increasing number of
large ore carriers, there has been an
increase in the past three years in the
number of smaller ships which are
being used to carry ore through the
Canal. These are Liberty ships, or
others of that size. In fiscal year
1956, there was one such ship; in fiscal
year 1957 the number had increased to
12; and during the past fiscal year
there were 28 transits by these small
The number of new ships making the
Panama Canal transit has increased
slightly over 65 percent in the past three
years. In fiscal year 1956, a total of 364
new ships were measured for transit; in
fiscal year 1957, the new ships totaled
514; and during the fiscal year just ended,
there were 602 new ships making their
first Panama Canal transit.
The increasing size of ships using
the Panama Canal is bringing increas-
ingly large tolls per transit. In fiscal
year 1952, the average amount collected
per transit was $4,127; during the fiscal
year just concluded, this per-transit
average had increased to $4,549.
Cargo per transit, has not increased
to this extent, largely because of the
great number of ships in ballast which
have gone through the Canal during
the past 12 months. In fiscal year 1952,
the average cargo per transit was 5,152
tons; during the past fiscal year this
figure was 5,238 tons. In fiscal year
1957, however, when there were fewer
ships in ballast, the cargo tonnage per
transit was 5,793 tons.
Capt. Gaddis Wall of Balboa Police
District will leave early next month to
attend a 12-week advanced course in
police science at the Southern Police
Institute of the University of Louisville.
August 1, 1958
THE PANAMA CANAL REVIEW
, SHIPS AND SHIPPINGa _
TRANSITS BY OCEAN-GOING
VESSELS IN JUNE
Commercial ------------ 775 710
Government ------------ 28 14
Total ---------- 803 724
Capt. Hugh S. Knerr, USN
Both the Chief and the Assistant to
the Chief of the Industrial Division are
scheduled to leave the Isthmus this
month for transfer to new stations in the
Capt. Hugh S. Knerr, USN, who has
been Chief of the Industrial Division for
the past two years, will sail with his fam-
ily August 28 for his new station at the
Brooklyn Navy Yard, and Lt. (jg) Ken-
neth Shelley, his assistant, is due to leave
August 7 for San Diego where he will be
on the staff of the Commander of the
Amphibious Forces, Pacific.
A native of Fort Casey, Wash., Cap-
tain Knerr is a graduate of the U. S.
Naval Academy, Class of 1934, and also
of the Massachusetts Institute of Tech-
nology. He has been stationed at the
Naval Shipyard at Portsmouth, N. H.,
New Feeder Service
A Central American feeder service to
handle cargo trans-shipped to Cristobal
and destined to Central America has been
started by the United Fruit Company
with the 1,500-ton Texita, a ship char-
tered from the Inter-American Maritime
Co. No stranger to the Canal, the Texita
has been making regular Canal transits
since 1954. On her present run she makes
a round trip from Cristobal to the west
coast of Central American ports as far as
San Juan de Guatemala every two weeks.
The Furness-Withy Line's steamer Pa-
cific Envoy, newest addition to the Line's
regular Manchester-Pacific Coast service,
made the return trip on her maiden voy-
age between Manchester and the West
Coast in July. The vessel, which made
the northbound transit July 13, was built
by Vickers-Armstrong, Ltd., and joins
her sisters Pacific Fortune, Pacific Unity,
Pacific Reliance, and Pacific Northwest, all
of which use the Canal regularly on this
service. The ship carries general cargo, has
refrigerated space, and accommodations
for 12 passengers. Her agents here are
the Pacific Steam Navigation Company.
New Japanese Ship
The new Japanese motor vessel Yama-
waka Maru of the Yamashita Line made
the Canal transit northbound July 16 on
Lt. Kenneth Shelley, USNR
the Navy Department's Bureau of
Ships in Washington, D. C., the Naval
Shipyard at Charleston, S. C., and the
Radiological Defense Laboratory in San
Francisco. Before coming to the Canal
Zone in 1956, he spent two years as assist-
ant Inspector General at the Navy De-
partment Office in Washington.
Captain Knerr will be succeeded here
by Capt. Geoffrey Thompson, USN, who
will arrive on the Isthmus by plane Aug-
gust 8. He is coming here from San Diego
where he served on the staff of the Com-
mander of the Amphibious Forces, Pacific.
Lieutenant Shelley is a graduate of the
University of Virginia and the Officers
Candidate School at Newport, R. I. He
has been on the Isthmus since May 1957.
He will be accompanied to the States by
his wife and three children.
her maiden voyage from Yokohama to
New York. With her entry into service,
the line will begin direct sailings from
New York to Yokohama on a monthly
service with four other cargo ships. On
the inbound voyage, the vessels call at
west coast ports. A sister ship, the Yam-
akimi Maru, is now nearing completion
and is due to enter service in October.
She will make her maiden trip to New
York in November. The Yamawaka Ma-
ru was built by the Hitachi Shipbuilding
and Engineering Co. at Osaka and has
a service speed of 19 knots. She is
equipped to carry 12,718 tons of cargo.
Total --$3,638,104 $3,350,992
*Includes tolls on all vessels, ocean-going and small
CARGO (long tons)
Commercial .--- 4,523,432 3,912,379
Government ---- 76,879 34,012
Total 4,600,311 3,946,391
Reina del Pacifico Scrapped
One of the Canal's best-known custom-
ers, the Pacific Steam Navigation Com-
pany's MS Reina del Pacifico, was retired
from service recently and has been sold
for scrap. The retirement and scrapping
of the well-known vessel took place this
spring after the vessel returned home fol-
lowing her final voyage to Valparaiso in
April. She made her last trip through
the Canal March 31. The Reina made
regular transits through the Canal-ex-
cept during World War II-for the past
25 years. When she was built, the vessel
was considered revolutionary from a ma-
rine engineering standpoint and is the
prototype of several much larger motor
liners. During the last war, the vessel
traveled more than 350,000 miles and
carried approximately 150,000 troops or
passengers without mishap. Recently the
Reina del Pacifico was joined on the Liv-
erpool to Valparaiso run by the Reina
del Mar, one of the most modern of the
passenger ships operated by the Pacific
Steam Navigation Co. This luxury pas-
senger liner will continue the west coast
of South America service, together with
a fleet of modern freight-passenger ships.
Floating Fair Due In Balboa
Balboa will be one of the ports of call
for the Japanese OSK Line's Atlas Alaru
which will become Japan's Floating Fair
this winter and will make a round-South
America and Caribbean cruise. The ship
is scheduled to leave Japan in October
to display all types of Japanese merchan-
dise at Central, South American, and
Caribbean ports. tIt is due to arrive at
Balboa in March 1959, and will remain
in port for two or three days. The gen-
eral public will he admitted on board to
.visit the fair.
TRAFFIC MOVEMENT OVER MAIN TRADE ROUTES
The following table shows the number of transits of large, commercial vessels (300
net tons or over) segregated into eight main trade routes:
1958 1957 1938
United States Intercoastal ...----------. 563 531 1,172
East Coast of U. S. and South America--------------- 2,252 2,037 486
East Coast of U. S. and Central America ----------- 523 307 71
East Coast of U. S. and Far East ------------ 1,469 1,536 698
U. S./Canada East Coast and Australasia --- __-- 174 177 170
Europe and West Coast of U. S./Canada -- -------- 931 826 987
Europe and South America ...----... ..-------- 947 835 549
Europe and Australasia ------------------------ ..374 479 215
All other routes----- ------------------- --------- 1,954 1,851 1,176
Total Traffic --.--- ------- 9,187 8,579 5,524
. L Ad
THE PANAMA CANAL REVIEW
August 1, 1958