Citation
Annual report - Panama Canal Company, Canal Zone Government

Material Information

Title:
Annual report - Panama Canal Company, Canal Zone Government
Portion of title:
Annual report - Canal Zone Government
Creator:
Panama Canal Company
Canal Zone
Place of Publication:
Washington, D.C.
Publisher:
U.S. G.P.O.
Creation Date:
1965
Frequency:
annual
regular
Language:
English
Physical Description:
: ; 23 cm.

Subjects

Subjects / Keywords:
Politics and government -- Canal Zone ( lcsh )
Panama Canal (Panama) ( lcsh )
Genre:
serial ( sobekcm )
federal government publication ( marcgt )
periodical ( marcgt )
Spatial Coverage:
Panama Canal (Panama)

Notes

Summary:
Continues: Panama Canal. Governor. Annual report. and Panama Canal Co. President's report to the board of directors.
Dates or Sequential Designation:
1st- 1952-
Numbering Peculiarities:
Report covers fiscal year.
Issuing Body:
Also issued by Canal Zone Government.

Record Information

Source Institution:
University of Florida
Holding Location:
University of Florida
Rights Management:
This item is a work of the U.S. federal government and not protected by copyright pursuant to 17 U.S.C. §105.
Resource Identifier:
01253695 ( OCLC )
53060088 ( LCCN )
0475-6126 ( ISSN )
AA00006068_00002 ( sobekcm )
23344345 ( ALEPH )
Classification:
J184.5 .P324 ( lcc )
338.39|353.8 ( ddc )
W2 DP3 P2a ( nlm )
CZ 1.1: ( sudocs )

Related Items

Preceded by:
Annual report of the Governor of the Panama Canal
Preceded by:
Annual report of the board of directors to the stockholder
Succeeded by:
President's report to the Board of Directors

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Full Text
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PANAMA CANAL COMPANY
CANAL ZONE GOVERNMENT


ANNUAL REPORT

0


FISCAL YEAR ENDED JUNE 30, 1965


























Digitized by the Internet Archive
in 2009 with funding from
University of Florida, George A. Smathers Libraries














."


http://www.archive.org/detaiIs/annualreportpana1965pana











PANAMA CANAL COMPANY
Balboa Heights, C.Z.
OFFICE OF THE PRESIDENT


December 29, 1965.

To THE STOCKHOLDER OF THE PANAMA CANAL COMPANY:
The story of the Panama Canal throughout the fiscal year
ending June 30, 1965, again demonstrates the importance of
this vital waterway to the industrial growth of the United
States and other nations of the world. A record volume of
78,899,012 long tons of cargo flowed through the Canal during
the year.
Since World War II extensive studies have been made of
the capacity of the Canal to meet the future requirements of
world commerce. On April 18, 1965, President Johnson
appointed a Commission, known as the "Atlantic-Pacific Inter-
oceanic Canal Study Commission," to make a full and com-
plete investigation to determine the feasibility of, and the
most suitable site for, the construction of a sea level canal
connecting the Atlantic and Pacific Oceans. The Commission
is to complete its studies by June 30, 1968.
During the year, the Board deferred action on a number
of major improvementt projects pending completion of the
Commission's studies. However, the Board is continuing a
careful evaluation of the need for improvement projects that
may be req fired to provide adequate service throughout the
remaining tife of the Canal. Such projects include completion

I


11351--1





of the widening of Gaillard Cut to a minimum width of
500 feet, provision of greater channel depth, assurance of
sufficient storage capacity for water required for operation
of the locks as traffic increases, and provision of increased
amounts of electric power required by the Panama Canal
Company and Canal Zone Government.
The Board of Directors has also initiated investigation of
the feasibility of securing certain supporting services from
private sources instead of making further investment of
Company funds in capital plant to provide such services.




ROBERT J. FLEMING, Jr.,
President.














CONTENTS


PANAMA CANAL COMPANY


INTRODUCTION
ORGANIZATION CHART F
THE CANAL-A BRIEF DESCRIPTION .
ORGANIZATION .
TOLLS RATES. .
BOARD OF DIRECTS AND GENERAL OFFICER .
COMPARATIVE TABULATION OF HIGHLIGHTS OF OPERATIONS
SUMMARY: PANAMA CANAL COMPANY OPERATIONS .
Canal Traffic and Cargo Movements .
Financial Review .


CHAPTER I-REVIEW OF CANAL TRAFFIC
OCEANGOING TRAFFIC .
OTHER TRAFFIC .
PRINCIPAL TRADE ROUTES-COMMERCIAL TRAFFIC
NATIONALITY OF VESSELS .
CARGO STATISTICS-COMMERCIAL TRAFFIC
TRANSIT AVERAGES .
DATA IN STATISTICAL CHAPTER .

CHAPTER H-THE WATERWAY
TRANSIT OPERATIONS .
LocKs OPERATION .
CANAL IMPROVEMENT PROGRAM .
WATER SUPPLY .. .
MAINTENANCE OF CANAL CHANNEL
ORIENTATION AND EXCURSION SERVICE
CHAPTER IM-SUPPORTING OPERATIONS
EMPLOYEE SERVICES .
Supply and Community Service Bureau
Supply Division .
Procurement Division .
Community Services Division
TRANSPORTATION AND UTILITY SERVICES .
Railroad Operations .
Motor Transportation .


. 7
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S 12
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S 17
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aces pag


Page
e 1
1
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2
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4
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CONTENTS


Page
Water Transportation Operations 24
Electrical Power System 25
Seismology 25
Communications System 26
Water System .. 26
Vessel Repairs 26
Harbor Terminals Operation 27
Printing Plant 28
PRINCIPAL ENGINEERING AND CONSTRUCTION PROJECTS 28
Canal Widening at Las Cascadas-Bas Obispo Reaches 28
Proposed Trinidad Dam 28
New Locks Towing Locomotives and Cranes 29
Construction, Alterations and Additions to Gorgas Hospital 29
Locks Engineering .. 29
Expansion of Electrical Power System 30
Additional Water Mains to Panama 30
Operations and Capital Construction by Contract 30
Other Projects 31
CHAPTER IV-ADMINISTRATION
PERSONNEL ADMINISTRATION 33
MAJOR ORGANIZATIONAL CHANGES 34
MAJOR PERSONNEL CHANGES 34
FORCE EMPLOYED AND RATES OF PAY 35
FULL-TIME EMPLOYEES PAID AT U.S. WAGE BASE 36
Turnover in Full-Time U.S. Citizen Isthmian Force 36
Turnover in Full-Time Non-U.S. Citizen Isthmian Force 36
Recruitment .. 36
Pay Adjustments 37
Cash Relief for Disabled Employees 37
INCENTIVE AWARDS 38
SAFETY PROGRAM 38
CHAPTER V-FINANCIAL REPORT AND STATISTICAL DATA
Financial Statements and Related Supplementary Reports
NARRATIVE STATEMENT 41
Equity of the U.S. Government 41
Capital Expenditures 41
Automatic Data Processing 42
Financial Tables
TABLE 1.-Comparative Statement of Financial Condition 42
Notes pertaining to financial statements 42
TABLE 2.-Comparative Statement of Revenue and Expenses 45
TABLE 3.-Statement of Changes in Equity of the U.S. Government. 46





CONTENTS


Page
TABLE 4.-Statement of Source and Application of Funds 47
TABLE 5.-Statement of Revenue and Operating Expenses 47
TABLE 6.-Transit Operations-Statement of Revenue and Operating
Expenses 48
TABLE 7.-Supporting Services-Statement of Revenue and Oper-
ating Expenses 49
TABLE 8.-Administrative and Other General Expenses 50
TABLE 9.-Inventories 51
TABLE 10.-Comparative Statement of Fixed Assets 52

Shipping Statistics
TABLE 11.-Ocean Traffic Through Panama Canal, Fiscal Years
1955-1965 54
TABLE 12.-Traffic by Months, Fiscal Years 1965 and 1964 54
TABLE 13.-Canal Traffic by Nationality of Vessel 55
TABLE 14.-Classification of Canal Traffic by Type of Vessel 56,
TABLE 15.-Laden and Ballast Traffic by Nationality of Vessel 58
TABLE 16.-Frequency of Transits of Vessels Through Panama Canal 60
TABLE 17.-Segregation of Transits by Registered Gross Tonnage 62
TABLE 18.-Principal Commodities Shipped Through Canal 63
TABLE 19.-Origin and Destination of Cargo Through the Panama
Canal From Atlantic to Pacific Segregated by Coun-
tries in Principal Trade Areas 65
TABLE 20.-Origin and Destination of Cargo Through the Panama
Canal From Pacific to Atlantic Segregated by Coun-
tries in Principal Trade Areas 68
TABLE 21.-Cargo Shipments by Trade Routes-Atlantic to Pacific 72
TABLE 22.-Cargo Shipments by Trade Routes-Pacific to Atlantic 75
TABLE 23.-Important Commodity Shipments Over Principal Trade
Routes, Atlantic to Pacific 79
TABLE 24.-Important Commodity Shipments Over Principal Trade
Routes, Pacific to Atlantic 93
TABLE 25.-Small Vessels Transiting Canal. 105

Other Statistics
TABLE 26.-Water Supply and Usage. 106
TABLE 27.-Dredging Operations 106
TABLE 28.-Electric Power Generated 107
TABLE 29.-Number of Full-time Employees Paid at U.S. Citizen
Rates 107
TABLE 30.-Number of Full-time Employees Paid at Non-U.S.
Citizen Rates 108






CONTENTS


CANAL ZONE GOVERNMENT


LETTER OF TRANSMITTAL
ORGANIZATION CHART .
INTRODUCTION .
Canal Zone Government
Major Organizational Changes
Major Personnel Changes

CHAPTER I-PUBLIC HEALTH
Sanitation .
Preventive Medicine and Quarantine
Division of Mental Health .
Veterinary Activities
Quarantine .
Hospitals and Clinics .

CHAPTER H-PUBLIC EDUCATION
General Description
Enrollment .
Special Education .
Library-Museum .


CHAPTER III-PUBLIC ORDER AND
Police Activities .
Court Activities .
Advisory Pardon and Parole Board
Fire Protection .
Civil Defense .


Page
S 111
. 112
S 113
. 113
113
. 113


S 115
. 116
S 116
S 117
S 117
. 117


PROTECTION


121
122
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123


125
126
126
127
127


129
130
131


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134
134
134


135
135
136


CHAPTER IV-POSTS, CUSTOMS, AND IMMIGRATION
Postal Service .
Customs, Immigration, and Shipping Commissioner Services .
Visas ... .

CHAPTER V-LICENSES, INSURANCE, AND ESTATES
Licenses .. .
Insurance .
Administration of Estates .
Foreign Corporations .

CHAPTER VI-MUNICIPAL IMPROVEMENTS
Roads and Streets .
Maintenance of Quarters, Hospitals, and Public Buildings .
Sewer System .





CONTENTS


CHAPTER VII-FINANCIAL REPORT AND STATISTICAL DATA
Financial Statements and Related Supplementary Reports
Page
NARRATIVE STATEMENT 137
Invested Capital 138
Capital Expenditures 139
Financial Results 139
TABLE 1.-Comparative Statement of Financial Condition 138
TABLE 2.-Statement of Changes in Equity of the U.S. Government 140
TABLE 3.-Statement of Operations 141
TABLE 4.-Comparative Statement of Fixed Assets 142
STATISTICAL DATA 143
Personnel Data 143
Area of the Canal Zone 144


























































vm










INTRODUCTION


THE CANAL
The Panama Canal is a lock 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 normal depth of 42 feet. The greatest
part of the Canal channel is at the level of Gatun Lake, the surface of which
fluctuates from a high of 87 feet above sea level in the rainy season to a low
of 82 feet above sea level in the dry season. Variation in the level of Gatun
Lake necessitates adjustment of allowable ship draft from a maximum of
39 feet to a minimum of 34 feet. In transiting the Canal a ship is raised in
three steps from sea level to the level of Gatun Lake, and subsequently
lowered in three steps to sea level at the other side of the Isthmus. The six
steps or flights of locks are in duplicate, to enable simultaneous lockage of
two ships transiting in the same direction or of ships passing in opposite
directions.
The past fiscal year marked the completion of 51 years of successful operation
of the Canal. The Canal was opened on August 15, 1914, and has served
world commerce without major interruption since fiscal year 1916, when the
last Canal-closing slide occurred in Gaillard Cut at the Continental Divide.
A total of 359,811 vessels of all types have made the Canal transit, of which
283,921 were oceangoing commercial vessels plying the various routes of
world trade. In addition, the Canal has been of incalculable service to the
United States and her allies in time of war.
ORGANIZATION
The Panama Canal Company Act, which created the Panama Canal
Company and defined its basic purposes, organization, rights, powers, and
obligations, was enacted June 29, 1948 (62 Stat. 1076), as amended by the
act of September 26, 1950 (64 Stat. 1041). This act became effective on
July 1, 1951, pursuant to the provisions of Executive Order 10263 of June 29,
1951. The charter of the corporation was reenacted with only minor modifica-
tions as part of the act revising the Canal Zone Code, approved October 18,
1962 (76A Stat. 1). The charter now appears in two Canal Zone Code
sections, 61-75 and 121-123.
In its capacity as owner of the Company, the U.S. Government is represented
by the Secretary of the Army, referred to as "Stockholder," in his individual
capacity as the personal representative of the President of the United States
for such purpose. The Company operates under the management of a Board
of Directors appointed by the Stockholder. The Company is charged with
the maintenance and operation of the Panama Canal and the conduct of the
business-type operations incident to such maintenance and incident to the
civil government of the Canal Zone.
1


11351--2






INTRODUCTION


The Company and the Canal Zone Government, the independent agency
of the United States charged with the civil government of the Canal Zone,
are closely interrelated in mission, organization, and operations. The com-
bined function of these agencies is the administration of the Panama Canal
enterprise as a whole. The Governor of the Canal Zone, who is appointed by
the President of the United States and who is charged with the administration
of the Canal Zone Government, under the supervision of the Secretary of the
Army, is ex officio a director and President of the Company.
The Panama Canal Company is expected (a) to recover all costs of operation
and maintenance of its facilities, including depreciation; (b) to pay interest
to the Treasury on the net direct investment of the Government in the Company,
and (c) to reimburse the Treasury for (1) the annuity payments to the
Republic of Panama under the convention of 1903 as modified by the treaty of
1936 between the two governments, and (2) the net costs of operation of the
Canal Zone Government, including depreciation on fixed assets. The interest
rate for the fiscal year 1965 as set by the Secretary of the Treasury was 3.457
percent. The Board of Directors is required to appraise, at least annually,
the Company's working capital requirements, together with reasonable fore-
seeable requirements for authorized plant replacements and expansion, and
to pay into the Treasury as a repayment of capital the amount of any funds
in excess of such requirements. All funds other than working balances are
carried with the U.S. Treasury.
The activities of the Company are classified under two major headings;
namely: (a) Transit Operations and (b) Supporting Services. Category
(a) embraces those functions directly related to the waterway and the transiting
of ships and 'to services to shipping, including maintenance of the Canal
channel, maintenance and operation of the locks, and maintenance of a bridge
across the Canal at Balboa. The supporting services include vessel repairs,
harbor terminal operations, a railroad across the Isthmus, a supply ship
operating between New Orleans and the Canal Zone, motor transportation
facilities, storehouses, an electric power system, communication system, a water
system, and service activities that are essential to employees' needs including
the operation of quarters, retail stores, and restaurants.
TOLLS RATES
The rates of Canal tolls remained unchanged during the year. These rates
are as follows:
(a) On merchant vessels, Army and Navy transports, tankers, hospital ships,
supply ships, and yachts when carrying passengers or cargo: 90 cents per net
vessel-ton of 100 cubic feet of actual earning capacity; that is, the net tonnage
determined in accordance with the "Rules for the Measurement of Vessels
for the Panama Canal";
(b) On such vessels in ballast, without passengers or cargo: 72 cents per net
vessel-ton;
(c) On other floating craft: 50 cents per ton of displacement.
Tolls charges for the Canal are at the same level as were imposed on March 1,
1938. They are lower than those charged from the beginning of Canal
operations to 1938.






PANAMA CANAL COMPANY


BOARD OF DIRECTORS AND GENERAL OFFICERS OF THE
PANAMA CANAL COMPANY AS OF JUNE 30, 1965

Board of Directors

Hon. STEPHEN AILES, Stockholder
Washington, D.C.
Secretary of the Army.

Hon. STANLEY R. RESOR, Chairman of the Board
Washington, D.C.
Under Secretary of the Army.

ROBERT J. FLEMING, Jr., President
Balboa Heights, C.Z.
Governor of the Canal Zone; Major General, U.S. Army.


CORNELIUS G. DUTCHER
Phoenix, Ariz.
Investor and Civic Leader.


Hon. J. KENNETH MANSFIELD
Washington, D.C.
Inspector General, Foreign Assist-
ance, Department of State.

C. ROBERT MITCHELL
Kansas City, Mo.
President, First Federal Savings &
Loan Association, Kansas City.

WALTER J. PEARSON
Portland, Oreg.
President, Pearson Insurance Co.,
Portland, Oreg.


Hon. JACK H. VAUGHN
Washington, D.C.
Assistant Secretary of State for Inter-
American Affairs.

JAMES A. WILLIAMS
Boston, Mass.
Vice President, Public Affairs, New
England Telephone & Telegraph Co.

Dr. CHARLES J. ZINN
Washington, D.C.
Law Revision Counsel, U.S. House of
Representatives.

HOWARD C. PETERSEN
Radnor, Pa.
President, Fidelity-Philadelphia
Trust Co.


General Officers

Hon. STANLEY R. RESOR, Chairman of the Board
Maj. Gen. ROBERT J. FLEMING, Jr., USA, President
Col. H. R. PARFrrr, USA, Vice President
PHILIP L. STEERS, Jr., Comptroller
W. M. WHITMAN, Secretary






I INTRODUCTION

COMPARATIVE TABULATION OF HIGHLIGHTS OF OPERATIONS


Number of oceangoing transits:
Commercial ------------
U.S. Government ---...
Free __- __ ___-------------------------
Total--------------------------------
Tolls earnings (including small vessels):
Commercial------------ _
U.S. Government --._.__
Total ------ ------
Total cargo transiting (long tons)----------------
Lockages:
Gatun -----... .---
Pedro Miguel------_______
Miraflores ------------------------------
Terminals operations (tons of cargo handled, transferred,
and stevedored at piers) -----------------------
Oil handling (number of barrels pumped) -----------
Maintenance of channel (cubic yards dredged)-
Number of full-time Company employees (as of June 30):
U.S. citizen---- -------------------------
Non-U.S. citizen --------------------------
Total Company employees --- --- --


Fiscal year
1965 1964
11,834 11,808
284 285
85 91
12,203 12,184


$65,502,769
1,651,890
$67,154,659
78,922,931

10,999
11,925
11,360
2,389,373
36,792,557
3,144,200

2,461
8,979
11,440


$61,146,998
1,399,393
$62,546,391
72,168,690

10,918
11,347
10,841
2,394,453
35,512,392
4,778,800

2,537
8,917
11,454












SUMMARY

PANAMA CANAL COMPANY OPERATIONS

Canal traffic and cargo movements.-During fiscal year 1965, Panama Canal
tonnage climbed to its highest figure in the history of the Canal, topping the
previous high record, 72,168,690, attained in 1964 by slightly over 6.5 million
long tons. The volume of cargo transiting the Canal in 1965 amounted to
78,922,931 long tons which is an increase of 6,754,241 tons, or 9.4 percent,
over last year's volume. Along with this increased cargo movement,
oceangoing transits and tolls also experienced a modest rise.
Oceangoing transits (including free transits) at 12,203 were only 19 above
last year, but tolls income amounting to $67,154,659 was $4,608,268 above
the income for fiscal year 1964. The volume of cargo per net ton on tolls-
paying vessels, or the load factor, was 1.02 tons for the year. During March,
Canal transits established a new high of 1,119 oceangoing transits for a daily
average of 36.1 ships.
Financial review.-Net revenues for 1965 totaled $1.5 million after charges
for interest costs totaling $11.4 million and the net cost of operations of the
Canal Zone Government totaling $18.4 million. The corresponding net
revenue for the previous year was $2.2 million.
Operations during the course of the fiscal year reflect the absorption of wage
increases and related costs in excess of $4 million.
Tolls revenue of $67.2 million and transits of 12,118 tolls-paying ships over
300 Panama Canal net tons set new all-time records. The corresponding tolls
revenue and vessel transits for fiscal year 1964 were $62.5 million and 12,093
ships, respectively.
Capital expenditures amounted to $10.6 million for the year. Improvements
to waterway facilities exceeded $4.2 million. The principal expenditure was
for the replacement of towing locomotives and cranes in the amount of $2.6
million. For supporting services operations the largest expenditure was for
a steam turbine-generator for the electric power system amounting to $2.4
million.
A major change in accounting technique was inaugurated on April 1, 1965,
with the installation of a computer. The first phase, now on the computer, is
that of inventory control. Systems studies and programming are in process
to expand the use of the computer for payroll and personnel procedures.
















Chapter I



REVIEW OF CANAL TRAFFIC

OCEANGOING TRAFFIC 1
During this past fiscal year the increasing growth in Panama Canal traffic
continued for the 13th year. Fiscal year 1965 established the highest year
of traffic since the Canal began operation. A grand total of 12,203 oceangoing
vessels transited the waterway, 284 of which were U.S. Government owned
or controlled vessels and 85 of which were free transits.
A total of 11,834 commercial ships transited, averaging 32.4 per day, and
for the fourth consecutive year exceeded the 11,000 mark. The Panama
Canal Company received $65,442,633 in tolls from commercial ships flying
the flags of 45 nations. Traffic of this type, amounting to 97 percent,
constitutes the bulk of the Company's workload.
Accompanying this rise in number of transits for the year in the oceangoing
commercial vessels was an 8.5-percent increase in cargo tonnage. The
76,573,071 long tons of commercial cargo that passed through the Canal during
fiscal year 1965 represent an average of 210,282 long tons per day. The total
tonnage was 6 million tons above last year's record and 9 million tons above
the previous record set in 1962. Of the 76.6 million tons of cargo, 5.8 million
moved in the U.S. intercoastal trade, 24.4 million tons were U.S. exports, and
19.4 million tons were imports of the United States for a total of 49.6 million
tons moving to or from the United States. This represents 64.8 percent of
the total cargo flow.
With the exception of U.S. intercoastal trade and that of Europe-west coast
United States/Canada, cargo movements to and from all the major geographical
areas of the world increased in 1965. The most significant change occurred
in the flow of cargo to and from the Far East. Other important increases are
shown in trade between the United States and South America. This year
cargo movements to and from the Far East increased 1,815,000 tons and
movements to and from South American ports rose by 4,555,000 tons.
1 Vessels of 300 net tons and over (Panama Canal measurement) for vessels rated on net tonnage,
or of 500 displacement tons and over for vessels rated on displacement tonnage (naval vessels,
dredges, etc.).






REVIEW OF CANAL TRAFFIC


A tabulation of the four principal features of oceangoing traffic for the past
3 years is shown below:
Fiscal year
1965 1964 1963
Number of oceangoing transits ------12,200 12,184 11,408
Net tonnage (Panama Canal measure-
ment) -------------------------77,207,090 71,793,761 66,744,515
Cargo (long tons of 2,240 lbs.) ------ 78,878,276 72,149,451 63,867,919
Total tolls and tolls credits ------------ $67,090,286 $62,493,860 $57,828,354

OTHER TRAFFIC
In addition to the oceangoing vessels, 687 tolls-paying small craft of less
than 300 net tons, Panama Canal measurement (or under 500 displacement
tons on vessels assessed on displacement tonnage), transited the Canal during
fiscal year 1965. Transits of small vessels have but slight effect on workloads
and tolls revenue volume, and are generally excluded from analysis of Canal
operations. Also excluded from the preceding table are statistics on 22 small
vessels, exempted from tolls, of the Government of the Republic of Panama,
war vessels of the Republic of Colombia, and 9 vessels transiting the Canal
solely for repairs at the Panama Canal shops. Further details on this traffic
will be found in table 25, chapter V, page 105.

PRINCIPAL TRADE ROUTES-COMMERCIAL TRAFFIC
The following table shows the eight major Panama Canal trade routes ranked
according to the net vessel tonnage (Panama Canal measurement) moving
over them. The cargo tonnage moving over these routes is also shown with
comparable 1964 statistics and the percentage change.
The net tonnage is the calculated cargo capacity of the various ships whereas
the cargo tonnage is the actual weight of the cargo transported in long tons.
Total net vessel tonnage moving through the Canal increased 7.3 percent
over the previous year. Vessel tonnages moving over the eight main trade
routes increased by 4 percent and the tonnage transported over all the other
routes increased by 17.1 percent.
All eight main routes maintained their status in the lineup of principal trade
routes served by the Panama Canal. Seven of the routes shown reveal
increases in net ship tonnage. Only two of the eight experienced decreases
in cargo tonnage shipped, neither of which is significant.
The most significant change in volume occurred in the top-ranking east
coast United States-Asia route with a vessel tonnage increase of 895,000
measurement tons, or a 5.5-percent gain. The largest percentage increase
took place in the seventh ranking route, the east coast South America to west
coast United States movement. The route increased 30.6 percent, an increase
of 609,000 net tons moving between the two countries. Retaining its eighth
position in importance among the routes, the east coast United States to west
coast Central America/Mexico trade reflects the second highest percentage
gain in net tonnage.







PANAMA CANAL COMPANY


Fiscal year
(in thousands of tons) Percent in-
crease or
1965 1964 (decrease)
Panama Panama Panama
Canal Long Canal Long Canal Long
net tons net tons net tons
Trade route tons cargo tons cargo tons cargo
East coast United States-Asia................ ............... 17,234 22,540 16,339 21,354 5.5 5.6
East coast United States-west coast South America .............. 9,541 7,S24 9,960 7,031 (4.2) 11.3
Europe-west coast South America---------------------.......-...---. 7,751 7,153 7,500 7,073 3.3 1.1
Europe-west coast United States/Canada--------------------........... 6,779 6,882 6,620 7,044 2.4 (2.3)
U.S. intercoastal (including Alaska and Hawaii) ..---.-----------...... 4,920 5,823 4,566 6,088 7.8 (4.4)
Europe-Oceania---------------------------------- ---...... 3,233 2,378 3,148 2,158 2.7 10.2
East coast South America-west coast United States------------....... 2,598 2,838 1,989 2,355 30.6 20.5
East coast United States-west coast Central America/Mexico --.... 1,998 945 1,848 825 8.1 14.5
Subtotal-------------------------------------. 54,054 56,383 51,970 53,928 4.0 4.6
Allotherroutes---------------------------------------- 20,681 20,190 17,663 16,622 17.1 21.2
Total -------------------------------------.......... 74,735 76,573 69,633 70,550 7.3 8.5
The only decline occurring in net vessel tonnage is shown in the east coast
United States to west coast South America route which experienced a drop of
419,000 measurement tons, representing a decline of 4.2 percent. The east
coast South America to west coast United States, retaining its seventh position
in importance among the routes, shows the highest percentage gain in net
tonnage. Two other substantial gains in net tonnage are shown in the fifth
and eighth ranking routes, but the fifth route, U.S. intercoastal trade, took
a drop of 4.4 percent in cargo tonnage.
The total volume of cargo moving through the Canal increased by 8.5
percent, or 6,023,000 long tons. The highest single route increase in volume
of cargo tonnage, 20.5 percent, occurred in the east coast South America to
west coast United States. The gain falls just short of that experienced by the
"all other routes."
A brief description of shipping engaged in these trade routes is given in the
following paragraphs:
East coast United States-Asia.-Although retaining the position of first place
in importance among the various routes served by the Canal the route this year
dropped back to more normal gains in both Panama Canal net tonnage and
volume of cargo moved. From the phenomenal increase of 27 percent last
year the gain in long tons of cargo transiting eased off to 5.6 percent, or 1.2
million tons as compared with a gain of 4.5 million in 1964.
The flow of cargo to and from the Great Lakes area increased substantially
with a gain of 251,000 long tons, contributed almost entirely by the Asian to
United States movement.
Total exports from the east coast United States to Asia rose to 17,611,837
long tons, 190,000 tons under 1964 exports, while Far East exports to the
United States increased to 4,928,259 tons for a gain of 1,186,491 tons, or 5.6
percent over the tonnage moving in fiscal year 1964.
The three most important increasing commodities moving in this trade from
the United States to Asia were coal and coke, phosphates, and soybeans. Other
commodities contributing substantial volumes were sorghum with 208,000 tons,
and rice with an increase of 112,000 tons over the 1964 totals. Exports of
scrap metal declined some 850,000 tons during 1965. In the eastbound move-
ment, shipments of iron and steel products to the United States accounted


11351--3






REVIEW OF CANAL TRAFFIC


for 74.8 percent of the increased tonnage while sugar shipments rose by
some 126,000 long tons. Textiles and lumber shipments rose moderately.
East coast United States to west coast South America.-Although suffering
a modest decline in volume of shipping, this route retained its second place
position in importance. However, the volume of cargo increased by slightly
more than 11 percent.
Cargo tonnage moving over this route consists principally of the flow of
raw materials from South America to the United States. This year ores and
metals moving from South America over the route amounted to 4,196,000
long tons for a gain of 869,000 tons over fiscal year 1964. Iron ore alone
contributed 781,000 tons of this gain, or 89.5 percent of the total increase
over 1964. Sugar exports to the United States increased some 101,000
long tons.
The westbound volume of cargo increased only slightly in comparison with
the eastbound movement, contributing a total of 1,655,000 long tons moving
in this direction.
Europe to west coast South America.-Retaining its position as third-ranking
route of the year, the area experienced a very slight rise in net tonnage and
cargo movements. Trade this year contributed a total of 7,751,000 net vessel
tons of shipping to Panama Canal traffic in comparison with 7,500,000 net
tons in fiscal year 1964, a 3.3-percent rise in volume.
Raw materials, as in previous years, Atlantic-bound for European ports
contributed the principal cargo moving in this direction. During this fiscal
year 84.4 percent of the cargo moved from Pacific to Atlantic.
The flow of cargo from the west coast of South America to Europe increased
by 89,000 long tons, whereas the commodity flow from Europe declined by
9,000 tons.
Movements of bananas, fishmeal, and fish oil registered the most significant
advances, increasing some 434,000 tons in total, with fishmeal alone contribut-
ing 289,000 tons of the increase. These increases were offset to a considerable
extent by decreases in the movement of iron ore, coffee, and sugar in the
commodity flow from South America to Europe.
Europe to west coast United States/Canada.-Recording a modest increase
in the volume of shipping employed this fiscal year, this fourth-ranking route
in importance to the Canal experienced a decline of 2.3 percent in the volume
of cargo transported.
The significant rises in exports of oilseeds, lumber, sulfur, and petroleum
products of some 661,000 long tons to European ports was more than
offset by declining volumes amounting to 874,000 tons in wheat, barley, coke,
and metals.
The principal decrease recorded moving from Europe to the west coast area
was a decline" of 22.5 percent in iron and steel manufactures in comparison
with the fiscal year 1964 figure of 262,000 long tons. Nominal increased
shipments from Europe to the area occurred in automobiles and paper and
paper products.
U.S. intercoastal (including Alaska and Hawaii).-In terms of percentage,
the third highest increase in net vessel tonnage over a single route through






PANAMA CANAL COMPANY


the Canal this year was registered in this fifth-ranking route. The trade con-
tributed 4,920,000 net vessel tons of shipping to Panama Canal traffic this
year in comparison with 4,566,000 net tons recorded in 1964, a 7.8-percent
rise in volume. On the other hand, after a significant rise of 24 percent
registered in cargo volume transiting in 1964 over the 1963 tonnage, the
cargo tonnage declined 4.4 percent, or a total of 265,000 long tons, under 1964.
. Although recording a net gain of some 931,000 long tons in cargo flow in
the westbound movement, 702,000 of which was increased tonnage of petro-
leum products, a total decline of 1,178,000 tons occurred in the eastbound
volume. This is a decrease of 30.8 percent under the volume of 3,820,000
long tons transiting in this direction in 1964.
Sugar, the leading export from Hawaii to the east coast of the United States,
decreased only slightly, 19,000 tons, under the 1964 figure. Canned food
products, also a leading commodity, declined some 52,000 long tons in
comparison with fiscal year 1964 when 260,000 tons were shipped.
The principal decrease suffered in the west coast to east coast movement
was due to decrease shipments of petroleum products which were down
1,158,000 long tons from the 1964 volume, a decline of 59.7 percent.
Europe to Oceania.-Ranking sixth in importance in trade via the Panama
Canal since 1955, the route showed a modest increase of 2.7 percent in net
vessel tonnage employed during 1965, and recorded a substantial increase
of 10.2 percent in cargo transported between the areas.
In this trade the bulk of the commodities flow principally between New
Zealand and Great Britain. This year, of the 2,378,000 long tons of cargo
moving over the route, 1,268,000 tons, or 53.3 percent, was trade between
the two countries.
Principal commodities contributing to the slight gain in the westbound
movement were iron and steel products and machinery with shipments of
iron and steel increasing 25.4 percent. In the eastbound flow substantial gains
were recorded in dairy and meat products, up 113,000 long tons. Fuel oil and
sugar exports also increased by 39.9 and 23.3 percent, respectively.
East coast South America to west coast United States.-This route retained
its position in seventh place and experienced the highest increases in Panama
Canal net vessel tonnage and cargo tonnage of any of the major routes. Net
vessel tonnage was up 30.6 percent and cargo tons rose 20.5 percent. In com-
parison with fiscal year 1964, a gain of some 609,000 net vessel tons and
483,000 long tons in cargo was contributed by the route.
The movement of cargo over this route consists almost entirely of a flow
of petroleum and products from Venezuela to the west coast of the United
States. Of the combined 2,838,000 long tons of cargo passing over the route
this year, 2,610,000 tons were petroleum and products bound for the west
coast of the United States. This is a percentage gain of 26.8 over lasi year's
commodity or some 551,000 long tons in the trade. United States to South
America shipments declined slightly from the preceding year.
East coast United States-west coast Central America/Mexico.-This route
retained its eighth-place position among the major routes served by the Canal,
and recorded the second highest percentage increases in volume of net






REVIEW OF CANAL TRAFFIC


tonnage and cargo tonnage for fiscal year 1965. Net vessel tonnage volume
rose by 8.1 percent while cargo tonnage increased 14.5 percent over last
year's volume.
The bulk of the cargo moving in this trade is bananas, chiefly from Costa
Rica and Panama to the eastern ports of the United States. Banana shipments
this fiscal year rose some 70,000 long tons, while shipments of sugar rose
sharply and contributed an additional 77,000 tons over the volume shipped
in 1964. These two commodities accounted for 77.2 percent of the total cargo
moving in this direction. Moderately increased shipments of phosphate and
paper and paper products occurred in the Atlantic to Pacific movement.

NATIONALITY OF VESSELS
Forty-five nationalities were represented in the oceangoing commercial
traffic passing through the Canal during fiscal year 1965, the same number
as in the previous year.
Transits of U.S. registry, numbering 1,678 with an aggregate net vessel
tonnage, Panama Canal measurement, of 12,197,141 tons, ranked first among
the nations using the Canal. For the fifth consecutive year ships flying the
Norwegian flag attained second place in importance among the various nations
using the waterway. British ships, for the sixth year, ranked in third place.
Germany remained in fourth place. Following these 4 top nations in order of
importance based on number of transits were Liberian, Japanese, Nether-
land, Greek, Panamanian, and Swedish vessels to round out the 10 nations
who accounted for 81.7 percent of the commercial transits.
The 3,303 different commercial vessels made 11,834 transits for an average
of 3.58 transits per vessel, varying from 1 to 165 transits per ship. This year
the Honduran tanker Gulfoba transited the Canal 165 times, 41 transits more
than were made last year, and an all-time high record for a single vessel in a
fiscal year. The Seatown, of Panamanian registry, also a tanker, again placed
second in transiting honors with 114 transits to its credit. Both tankers are on
a shuttle run between Panama's new oil refinery at Las Minas Bay and Balboa.
Of the 11,834 oceangoing commercial transits made during fiscal year
1965, 9,555 were classified as general cargo vessels. This is a decrease of 151
vessels of this type under the number transiting in fiscal year 1964. All other
types of transits declined with the exception of ore vessels which rose to 1,642
transits, an increase of 308 vessels from the previous year.
U.S.-flag vessels decreased by 10 transits with a decline in long tons of cargo.
However, an increase of 141,120 Panama Canal net vessel tonnage is shown
over last year as well as a slight increase in tolls revenue.
An increase of 109 transits occurred in the foreign registry class with
Panama Canal net vessel tonnage increasing 5,014,865 net tons over last year's
volume. An additional 6,684, 429 long tons of cargo transited the Canal in
these ships for an 11.2-percent rise in such tonnage over the volume recorded
in fiscal year 1964.
This year ships of U.S. registry paid 16.4 percent of the total tolls collected
on large commercial carriers. Last year such vessels paid 17.5 percent of the
total tolls.






PANAMA CANAL COMPANY


CARGO STATISTICS-COMMERCIAL TRAFFIC
Cargo flowing through the Canal during fiscal year 1965 established the
highest level attained since the Canal opened 51 years ago. The volume of
cargo transiting this year was 76,573,071 long tons. This is a gain of 6,017,000
tons, or 8.5 percent, over last year's volume, and surpasses the previous record
established in 1962 by 9,048,519 tons.
The Atlantic to Pacific movement of cargo recorded a high of 42,948,996
long tons, for an increase of 4,047,597 tons. Cargo moving in the Pacific to
Atlantic direction contributed a gain of 1,975,384 tons over the volume attained
in fiscal year 1964. Of the 11 commodity groups which have consistently
accounted for approximately 75 percent of the volume of cargo passing through
the Canal, only wheat and canned and refrigerated products declined in ton-
nage with the remaining 9 groups all increasing. Heaviest contributors among
those commodities which increased were iron and steel manufactures, petro-
leum and products, phosphate, and lumber. Iron and steel increased by
49.3 percent for a gain of 1,269,000 long tons; petroleum and products showed
a gain of 7.5 percent for a gain of 1,066,000 long tons. Percentagewise, phos-
phates were second with an increase of 36.9 percent, but contributed
only an additional 875,000 long tons over movements last year. Lumber ship-
ments rose by 12 percent, and sugar gained some 13 percent over fiscal year
1964 tonnages.

Average Tonnage, Tolls, and Tons of Cargo Per Transiting Vessel
The average measurement of tonnage, tolls, and tons of cargo per oceangoing
commercial vessel during fiscal years 1965 and 1964 is shown in the following
table:
Fiscal year
Average per vessel 1965 1964
Panama Canal net measured tonnage--------------------- 6,315 5,910
Tolls ---------------------------------------------- $5,530 $5,175
Tolls per Panama Canal net ton ---------------------------$0.876 $0.877
Tons of cargo per laden transit -----------------------------_ 6,467 7,180
Tolls per ton of cargo (laden vessels only)-------------------- $0.753 $0.772

DATA IN STATISTICAL CHAPTER
Further particulars of traffic through the Canal are presented in chapter V
of this report.
















Chapter II


THE WATERWAY

The efficient and dependable operation of the Panama Canal is of vital
concern not only to maritime interests throughout the world but also to a host
of others whose livelihood and general welfare are dependent to some degree
upon an even flow of world commerce. The process of getting the ships
through the Canal and the performance of certain auxiliary or supporting
functions are grouped under the classification of Transit Operations, for pur-
poses of this report, and are the primary missions of the Marine Bureau and
the Engineering and Construction Bureau. These two bureaus must provide
for the transiting of ships, operation of the locks, vessels repairs, maintenance
of the Canal channel, meteorology and hydrographic work, operation of utility
systems, and the maintenance of all Canal supporting facilities.

TRANSIT OPERATIONS
Traffic control
During fiscal year 1965 there were 12,203 oceangoing vessels transiting
the Canal, 19 more than in fiscal year 1964. These vessels spent an average
of 14.3 hours in Canal Zone waters from time of arrival to departure. There
was an average of 33.4 ships per day with the highest peak in traffic being
reached in March 1965, when 1,119 oceangoing transits were made during
the month. A total of 1,008 vessels were recorded as holdovers during the
year, 318 of which were delayed because they required transit during daylight
hours. The remaining 690 vessels were delayed due principally to reduction
of capacity during periods of locks overhaul.
Tug operations
Certain vessels such as tankers, ore carriers, and those carrying hazardous
cargoes are selectively dispatched so that they will not meet or pass any other
vessel in the narrow sections of Gaillard Cut and are not permitted to proceed
unless they can clear the Cut and the locks during daylight hours. Such ships
are called "daylight clear-Cuts," and during fiscal year 1965 a total of 1,345
of this type transit moved through the waterway in comparison with 1,114
handled during 1964. In addition, there were 985 vessels which did not
require "daylight only" transit, but did require clear-Cut transit compared
with 960 such transits in fiscal year 1964. The total of 2,330 clear-Cut transits






THE WATERWAY


is significant because it means that almost 1 out of every 5 transiting vessels
required special treatment in Gaillard Cut. This fast growing category of
vessels increased 10.5 percent in fiscal year 1965 over the previous year volume.
There was a significant increase in the number of large vessels transiting
during the year. Although vessels continued to be built longer and wider,
their handling has become less difficult due to the completion of approximately
5 miles of widening in the Gaillard Cut channel, thus permitting the classifica-
tion of 1,696 vessels into the partial-clear-Cut category. From 646 in 1964,
a total of 848 vessels transited in 1965 with beams of 80 feet or over, while
vessels of over 575 feet in length increased from 1,036 to 1,325 in 1965.
Seven tugs of the Navigation Division were in service throughout the year-
three at the Atlantic terminal and four at the Pacific terminal. The tugs
operated a total of 19,348 revenue-hours in the servicing and assisting of ships,
in comparison with 18,535 revenue-hours in fiscal year 1964. Dredging Divi-
sion tugboats performed a total of 3,890 hours of service in assistance to
commercial shipping as well as to vessels of the U.S. Army and Navy.
Accidents to shipping
During fiscal year 1965, the Board of Local Inspectors were called upon to
investigate 35 marine accidents which occurred in Canal Zone waters, and to
fix the blame and responsibility for them. Of this total, 13 accidents occurred
at the locks, 5 occurred at other points in transit, and 17 occurred in the terminal
ports. This compares with 29 investigations in fiscal year 1964.
The Panama Canal Company was found wholly responsible for damages
incurred in 17 accidents. Seventeen of the accidents were determined to
have been caused by fault of the vessel or other causes for which the Company
assumed no responsibility, and one case was a divided responsibility between
the ship and Panama Canal Company. There were 407 transits per accident
during 1965, as compared to 487 in 1964.
Admeasurement and boarding party operations
During 1965, 684 new oceangoing vessels were measured and in addition
379 ships with structural changes were remeasured. This compares with
645 new ships and 455 with structural changes in the previous year.
The functions of the boarding party consist of all phases of routine boarding
which includes admeasurement of vessels for tolls assessment, inspection to
insure compliance with customs, immigration, quarantine, and navigation
regulations, and the performance of Deputy Shipping Commissioner duties
for seamen aboard the U.S.-flag vessels. There were 13,108 ships boarded
and inspected during the year as compared with 13,246 in fiscal year 1964.
Aids to navigation
As of June 30, 1965, there were 2,106 navigational aids in service located
in the Canal proper, its approaches and terminal harbors, and the adjacent
coastal areas, all maintained by the Navigational Aids Unit of the Dredging
Division. Included in this total are the electrically operated fluorescent
luminaries which comprise the Gaillard Cut lighting system and the Gatun
and Miraflores approach lighting. Classified according to the type of illumi-
nants used are the following: gas operated, 82; electrically operated, 1,509;






PANAMA CANAL COMPANY


battery operated, 101; and unlighted aids, 414. Outlying navigational aids
were visited for the purpose of inspection and servicing, and all aids were
maintained in good operating condition throughout the year.

LOCKS OPERATION
Gatun Locks near the Atlantic entrance to the Canal forms two continuous
parallel flights of three steps each which raise the ships 85 feet above sea level
and then lower them. The three flights at the Pacific entrance are divided
between Pedro Miguel Locks with one flight and Miraflores Locks with two
flights. Each of the twin chambers in each flight of locks has a length of
1,000 feet, a width of 110 feet, and a depth of 70 feet. Since the flights are
in duplicate, ships may pass in opposite directions simultaneously.
The duration of a lockage depends on many factors, including the size of
the ship, its handling characteristics, and whether the vessel is locked separately
or in tandem. This latter procedure is used to save overall time and water.
The normal lockage intervals are 40, 60, and 80 minutes at Pedro Miguel,
Miraflores, and Gatun Locks, respectively.
The number of large vessels passing through the locks in fiscal year 1965
was greater than ever before. Ten-locomotive lockages increased 12.5 percent
over the previous year, and 10-locomotive tandem lockages decreased 17.6
percent. There were 208 12-locomotive lockages in fiscal year 1965 as
compared with 138 the previous year. Total lockages for 1965 showed an
increase of 1,178, or 3.6 percent.
Lockages-Vessels handled
The number of lockages and vessels handled (including Panama Canal
equipment) is shown in the following table for the fiscal years 1965 and 1964:
Fiscal year
1965 1964
Gatun Locks:
Number of lockages --------------------------- 10,999 10,918
Number of vessels ------------------- 13,506 13,725
Pedro Miguel Locks:
Number of lockages ------------------------------11,925 11,347
Number of vessels ----- ------------------- 15,103 15,008
Miraflores Locks:
Number of lockages ---------------11,360 10,841
Number of vessels ------- ------------------- 14,574 14,514

CANAL IMPROVEMENT PROGRAM
Canal widening program
The Canal widening program is one of several aimed at increasing the
capacity of the Canal by expediting the movement of ships in transit. It is
concerned with increasing the width of the usable channel in Gaillard Cut
from 300 to 500 feet.
The work of removing the nonrocky overburden from that part of the Canal
in Las Cascadas-Bas Obispo Reaches which was to be widened was completed
early in fiscal year 1965. A total of 5,585,337 cubic yards were removed at
a cost of $0.448 per cubic yard.


11351--4






THE WATERWAY


The remaining work required to complete the widening of Gaillard Cut
consists of the removal of 3,870,000 cubic yards, more or less, in Zone I
(material above elevation 90), and 7 million cubic yards in Zone II (below
elevation 90 subaqueous material). If the extra 5-foot depth design is used,
there will be an additional 650,000 cubic yards of this Zone II material.
Locks towing locomotives
New locomotives have been placed in service at all locks, resulting in fewer
personnel being required for lockage crews.
Experience with new locomotives has enabled larger ships to be locked with
fewer locomotives than originally anticipated. The present operation is now
handling larger ships and more lockages with 215 fewer personnel.
Continued improvements have been made in maintenance procedures on
new locomotives, resulting in savings in parts, material, and labor costs. Four
test locomotives are to be returned to Japan to be standardized and returned
to service, windlass and traction units removed for return and standardization.
These units and other usable parts will become spare parts for the 57
locomotives remaining in service.
Four maintenance shelters for servicing the new locomotives were built
under contract during the fiscal year. Two are at the north end each side
of Miraflores Locks, and two are located at the north end each side of Pedro
Miguel Locks.
24-hour locks outage concept
As a part of the 24-hour outage concept, overhaul of two gates was begun
in January 1965. A trial installation of the east wall hollow quoin cofferdam
was attempted, unsuccessfully. The cofferdam was redesigned and will be
altered by the Industrial Division. It is expected that the experimental
overhaul will be resumed in October 1965, at Miraflores Locks.

WATER SUPPLY
The supply of water necessary for the operation of the Panama Canal in
transiting of ships, the generation of electric power, and for municipal use,
is derived from several tributary streams that flow into Madden and Gatun
Lakes which serve as storage and flood control reservoirs of a drainage basin
comprising 1,289 square miles. All inflow from Madden Lake, whether
drawn for hydroelectric power or spilled for lake control, flows into Gatun
Lake and together with the runoff from the area below Madden Dam is used
for lockages, power generation, municipal purposes, or may be spilled to
control the operating level of Gatun Lake.
An average rainfall of 84.57 inches in the Canal Zone during fiscal year
1965 was approximately 11.04 inches below normal. Runoff during the
5-month "dry season," December through April, amounted to 241,069 acre-feet,
which was 70 percent below the 51-year average. This year the dry season
began on December 2, and ended on May 8, 1965, continuing 13 days longer
than the average dry season, and recording the 10th longest season in 51 years.
The total runoff from Gatun and Madden Dam Lake Basin for fiscal year
1965 was 12 percent below normal and amounted to 4,196,763 acre-feet.






PANAMA CANAL COMPANY


Of this amount, 39 percent, or 1,624,541 acre-feet, was derived from the basin
above Madden Dam. A net drawdown on Madden Lake of 32.63 feet and
4.35 feet on Gatun Lake during the December-April period represents a draft
on storage from both lakes of 794,582 acre-feet. After deducting the evapora-
tion losses for both lakes of 527,571 acre-feet, the remaining yield or runoff
amounted to 4,056,589 acre-feet. This remaining yield was expended as
follows: 1,892,172 acre-feet furnished for lockages (average 31.4 per day);
1,535,009 acre-feet used to generate 96,688,200 kilowatt-hours at Gatun
hydroelectric plant; municipal requirements totaling 49,977 acre-feet; leakage
and miscellaneous losses amounting to 19,651 acre-feet; and the spilling of
559,780 acre-feet at Gatun Spillway to control the lake elevation.
Thermal power generation for water conservation began in December 1964
and continued through April 1965. A total of 201,855,700 kilowatt-hours was
produced. Of this amount, 22,939,400 kilowatt-hours were furnished from
December 10, 1964, to April 30, 1965, by Fuerza y Luz through interchange.
Sources and usages of water together with comparable data for the preceding
year are itemized in table 26, chapter V, page 106.

MAINTENANCE OF CANAL CHANNEL
The maintenance of the Canal Channel, its terminal harbors, the adjacent
navigable waterways of the Panama Canal, and special improvement projects
were accomplished during the year with two 15-cubic-yard dipper dredges and
two suction dredges of 28- and 10-inch capacity. Maintenance dredging totaling
3,144,200 cubic yards of material was performed in the Canal prism and
harbors. A total of 20,700 cubic yards of mined material was removed from
Mandinga Flare during the year. The material was used in the construction
of collision dikes at Piers 6 and 7 of the Thatcher Ferry Bridge.
In addition to these activities, it became necessary to remove slide material
moving into the Canal from the Cartagenita slide on the west side of Gaillard
Cut at the south end of Cerro Paraiso. The dredge Mindi removed 19,200
cubic yards of material, and another 35,000 cubic yards were removed by
dry excavation.
In January 1965, removal of the precipitous material above this slide was
begun. A dike is being constructed, with this spoil, across the Rio Grande
River which will provide a large settling basin for the silt to be dredged from
Gaillard Cut and Miraflores Lake.
A summary of dredging operations for the fiscal year 1965 is shown in
table 27, chapter V, page 106.

ORIENTATION AND EXCURSION SERVICE
During the year the Company provided two vessels, the launches Las Cruces
and the Reina Manuelita I, for orientation and excursion service through the
Canal. The launch Las Cruces, a 200-passenger vessel, made 414 trips,
carrying a total of 41,082 passengers and the Reina Manuelita I carried
1,803 passengers on 103 trips in partially transiting the Canal. The launch
Anayansi was used on 37 trips in connection with inspections, aids to navigation,
and Interoceanic Canal Studies.






20 THE WATERWAY

The Reina Manuelita I activity increased by 24 trips over fiscal year 1964,
with an increase of 514 passengers carried; the Las Cruces made 4 less trips
and carried 731 fewer passengers.
For the dry season months, January to March, two launches were used for
a total of 72 recreational trips.













Chapter III


SUPPORTING OPERATIONS

In support of the maintenance and operation of the waterway and incident
to the civil government of the Canal Zone, the Company conducts many
auxiliary operations that are essential to the accomplishment of its basic mission.
These include rail, ocean, and highway transportation; public-utility-type
services, the operation of retail stores and housing for employees; and a wide
variety of engineering, supply, and service functions. These services are also
made available to the other Federal agencies in the Canal Zone and, to a limited
extent, to the Republic of Panama.
EMPLOYEE SERVICES
Supply and Community Service Bureau
The principal objectives and responsibilities of the Supply and Community
Service Bureau consist of procurement of supplies and materials, and their
storage; distribution and sales; operation of theaters, restaurants, and bowling
alleys; operation of living quarters for employees; care of public buildings;
care of grounds, collection and disposal of trash and garbage; the operation
and maintenance of the Canal Zone cemeteries, and the operation of Summit
Gardens, Nursery, and Zoo.
SUPPLY DIVISION
Retail Stores, Warehousing, Manufacturing and Allied Operations
The retail stores, warehouses, and related operations make available food
supplies, clothing, general household items, and other essentials to U.S. citizen
employees and their families, to non-U.S. citizen employees residing in the
Canal Zone, and to members and U.S. citizen employees of the Armed Forces.
The retail stores in the Canal Zone include the operation of gasoline service
stations. Manufacturing and processing plants include a bakery, a dairy and
ice cream plant, and a laundry. Improved merchandising methods and
reduction of operation expenses were pursued throughout the year with a view
to eliminating or combining functions to reduce manpower and labor costs
with a minimum loss of service to customers.
The Milk Products Unit used a total of 598,976 gallons of raw milk in the
process of bottling fresh milk and 8,787 gallons in manufacturing other milk






SUPPORTING OPERATIONS


products. The 1,295-gallon daily average milk production this year is 1.7
percent higher than that of fiscal year 1964. The policy of purchasing surplus
fresh milk from approved Panamanian dairies continued throughout the year
at the rate of 3,000 quarts per day, 5 days per week. Milk purchased from
Panama suppliers this year totaled 195,750 gallons, an average of 2,041
quarts daily for the year.
Fifteen calves from the Mindi Dairy Farm were presented to Panama's
Ministry of Agriculture for distribution to various 4-S clubs in November 1964.
In April 1965, two calves were donated as prizes at the Chorrera Agricultural
Fair, and, in June, five were donated to the Divisa School of Agriculture.
Service center operations
The service centers and Tivoli Guest House provide certain essential sales
and recreational facilities for the employees of the Company/Government
organization, their dependents and guests, as well as others authorized to
receive Canal Zone privileges. These functions include cafeterias, soda
fountains, guest accommodations; recreational activities such as theaters,
bowling lanes and related activities; and merchandise sections. In addition,
rental space is conveniently furnished for the use of various licensee shops,
which include barber, beauty, tailor, cobbler, and dressmaking establishments,
and also union organizations.
During the fiscal year continued efforts were made toward maximum
utilization of automatic food and beverage vending machines. At year's end
50 Company-owned machines were in operation and 19 were on hand pending
installation. In addition, 23 machines were being operated in service center
facilities by contractual agreement.
Extensive renovation and improvement work was performed at the Tivoli
Guest House. An additional 29 rooms were air conditioned. Dining rooms
and other spaces were refurnished and redecorated to reflect as much as
possible the historical background associated with the Canal construction
period.
Storehouse branch
The organizational units of this branch include administrative, stock manage-
ment, warehousing, scrap, and salvage operations; excess disposal; and office
furniture and equipment pools. During the fiscal year, a continued program
of improvements and operating economies, realinements and consolidations
was pursued throughout the functional units of the branch. Rewarehousing
of the consolidated Motor Transportation and Storehouse auto parts inventory
in Motor Transportation Division areas was completed in August 1964. New
procedures have eliminated much of the paperwork in this operation.
This year sales of nonferrous metals approximating 494,000 pounds resulted
in a gross margin of approximately $131,000. Bids were opened on June 25,
covering approximately 7,000 tons of ferrous scrap; 5,480 tons were awarded
to two bidders for approximately $113,200. Thirty-eight locks towing
locomotives were converted to scrap during the year.
The new elementary school located at Fort Davis was supplied with equip-
ment and furniture during the first quarter of the fiscal year. Office furniture






PANAMA CANAL COMPANY


for the new Gorgas Hospital in the amount of $46,000 was received in April
and installed by the contractor. The remaining $14,000 of this special
allotment will be obligated in fiscal year 1966. The first shipment of GSA
furniture, specially packed for export, was received in excellent condition.

PROCUREMENT DIVISION
Efforts continued throughout the year to develop new resources in the South
and Southwest to promote savings on inland freight and to permit maximum
use of the Company's supply ship.
The New Orleans Procurement Office placed into effect the direct purchasing
system. Under this system, resale and non-bid merchandise for resale that
was heretofore purchased by the New Orleans office is now purchased directly
from the Isthmus by the Procurement Section of the Supply Division.

COMMUNITY SERVICES DIVISION
Employee housing
An experimental program to determine the feasibility of preventive main-
tenance of employee quarters continued through the year. A 5-year program
to incorporate all employee quarters buildings into the program was budgeted
to commence in fiscal year 1966. At year's end the transfer of responsibility
for custodial service in all Canal Zone Schools from the Schools Division to
the Housing Branch had been accomplished, to be effective July 1, 1965.
As of June 30, 1965, there were 2,507 family units in operation in U.S.
citizen communities, and 1,726 family units in Latin American communities.
Nine additional quarters buildings, representing 32 apartments, were con-
structed in the Pedro Miguel townsite. There was no other new quarters
construction during the year. Quarters presented for retirement consisted
of 14 buildings containing 94 apartments, all in the Latin American towvnsites.

TRANSPORTATION AND UTILITY SERVICES
Railroad operations
The Panama Railroad, connecting the terminal cities of Panama and Colon,
provides transportation across the Isthmus for both passengers and freight. In
addition, it furnishes industrial switching services to the major Company/
Government and Armed Forces warehouses and installations.
The 47-mile mainline is supported by 74 miles of sidings, yard, and industrial
track. Freight and passenger stations, locomotive and car repair shops are
maintained by the Railroad. It serves all Federal Government agencies on
the Isthmus and is a common carrier serving commercial interests in the Canal
Zone and the Republic of Panama. The Railroad also operates the Panama
Local Agency which is responsible for the receipt, delivery, and forwarding
of all railroad freight at the Panama City terminus.
Substantial economies were achieved on the railroad this year due to the
abolishment of positions, consolidations, and overtime reduction. In fiscal
year 1965 the Railroad Division maintained the same high level freight
workload as in the previous year. Canal Zone freight continued at a high level;






SUPPORTING OPERATIONS


however, the Republic of Panama freight over the line declined instead of
increasing as anticipated. The drop in high-revenue freight is attributed to
the slow economic recovery of business conditions in Panama following the
civil disturbances in early 1964, and a longshoremen's strike of 2 months in
the east and gulf ports of the United States.
Passenger business declined from 695,000 in 1964 to 648,000 in fiscal year
1965, a drop of 7 percent which was anticipated as transportation conditions
resumed a more normal trend following the disturbances in 1964.
Freight hauled decreased very slightly, some 2,000 tons under the previous
year. Freight services income improved 5.8 percent, or $65,000, over the
fiscal year 1964 figure due to improved composition and ocean freight rate
increases on through billed cargo effective the last 3 months of the fiscal year.
Comparative workload and income statistics are shown in the following table:
Fiscal year
1965 1964
Passengers carried -------------------------------- 648,000 695,000
Revenue freight tons carried --------------- 196,000 198,000
Passenger service income -------------------------- $451,000 $505,183
Freight service income --------------------------- $1,143,000 $1,080,064
Switching and locomotive service income --------$87,000 $116,578
Net operating deficit -------------- -------------- $89,000 $19,779
Motor transportation
This division operates consolidated motor vehicle repair shops and maintains
a motor vehicle fleet for use of the Company/Government. Supervision is
also exercised over a public bus transportation system operating in the Pacific
area under franchise.
Special operating economies resulted in a reduction of some $49,000 in
labor costs over the year. Transportation workload increased slightly, with
a 3-percent gain in total fleet mileage. Trans-Isthmian pilot runs that had
been curtailed due to the civil disturbances were resumed, dirt hauling and
a fleet increase contributed to the increase in mileage. A daily average of
2,638 schoolchildren of all grades were transported as compared with an
average of 2,554 during 1964.
To meet requirements for furnishing the wide variety of transportation
services, the motor vehicle fleet was maintained at the 624 unit level. During
the year a total of 37 new replacement vehicles were received.
Significant workload indices for the fiscal year in comparison with the
previous year are given below:
Fiscal year
1965 1964
Vehicles in service ----------------------------- 624 595
Vehicle mileage ------------------------------- 7,179,00 6,852,000
Trans-Isthmian freight hauled ------------------------- 13,049 12,925
Schoolchildren transported (average per day) -------- 2,638 2,554
Repair shop services furnished others ----------- $814,393 $771,425
Operating margin (or deficit) -------------------------- ($6,700) $9,710
Water transportation operations
This division operates one combination cargo-passenger steamship of 10,000
tons between the ports of New Orleans, La., and Cristobal, C.Z. This vessel
is restricted to the carriage of U.S. Government cargo and passengers.






PANAMA CANAL COMPANY


Cargo workload increased by 14 percent over fiscal year 1964, while
passenger workload dropped by 2 percent under the previous year.
Shown below is a statistical comparison of the fiscal years 1965 and 1964:
Fiscal year
1965 1964
Number of completed voyages ---------------------------27 27
Tons of freight carried --------- ------------- 108,191 95,187
Average number of tons per voyage ---------------------- 4,007 3,525
Number of passengers carried -------------------------- 6,818 6,938
Average number of passengers per voyage ---------- 252 257
Operating margin------------------------------ $26,000 $12,000
Electrical power system
The Panama Canal Company generates and transmits electric power for
use of the Company/Government, Armed Forces, employees, and associate
activities in the Canal Zone. It operates and maintains hydroelectric and
thermal electric generating stations, substations, switching stations, and
transmission lines and appurtenances.
The workload of the Power Branch, which is reflected by the total gross
power required to supply customer load, was 16.8 percent greater than that
for 1964. This increase was provided for by increased operation of the
system generating units and increased purchases of power from Fuerza y Luz
and the military. Due to a longer dry season and increased load, system
thermal generation was 8.8 percent greater than in 1964.
The total power generated during the year was 6.1 percent greater than
in 1964. A peakload of 75,200 kilowatts, occurring on May 3, 1965, was
the highest on record. Thermal generating plant operation was increased
during the period December 7 through June 30 to permit reduced operation
of the Gatun hydroelectric generators for dry season conservation of water in
Gatun Lake. Full load 24-hour operation of the two new Miraflores gas
turbines, and operation of the Cocoli, Agua Clara, and Coco Solo diesels
as required to supplement this thermal electric generation was accomplished
with the help of loaned labor and temporary employees.
The new transmission line connecting the Panama Canal power system with
that of the Compania Panamefia de Fuerza y Luz was energized on March 25,
1964. This interconnect was used during the dry season to receive power
to assist in our dry season operation. A Service Schedule B was added to our
power exchange contract with this company to permit our purchase of their
available surplus electrical energy.
The combined generated output of the power system for fiscal year 1965
was 444,380,700 kilowatt-hours. A total of 438,442,118 kilowatt-hours was
delivered to consumers as compared with 382,028,039 in the previous year.
Further particulars on electric power generated are shown in table 28,
chapter V, page 107.
Seismology
The seismological observatory at Balboa Heights is an important link in the
worldwide network of seismological stations. Situated in one of the major
earthquake areas of the world, its records are very much in demand. All
original records, after preliminary analysis, are mailed to Washington, D.C.,


11351--5






SUPPORTING OPERATIONS


for final interpretation by computer. There were 223 seismic disturbances
recorded on the Balboa Heights seismographs during fiscal year 1965.
Communications system
The communications system consists of two main exchanges located in
Balboa and Cristobal with small exchanges at Pedro Miguel, Gamboa, Gatun,
and Coco Solo. Their respective distribution systems are connected by one
trans-Isthmian trunk cable and a microwave radio communication system
between Gamboa and Gatun. The system is independent of, but inter-
connected with, the systems in the cities of Panama and Colon, and the military
exchanges on all military reservations. The microwave facilities also provide
radio communications service for the Federal Aviation Agency, Marine Traffic
Control System, Dredging Division, and Meteorological and Hydrographic
Branch.
At the end of fiscal year 1965, there were 9,820 telephones in service as
compared with 9,400 telephones in use at the end of the preceding year, an
increase of 420.
Water system
The Water Branch continued to supply all the filtered water requirements of
the Canal Zone, including sales of water to vessels; Armed Forces installations;
the cities of Colon, Panama, and Cativa; and suburban Panama in the Republic
of Panama.
The Pacific area water system produced a record quantity of water due to
the continued growth of the suburban Panama areas and increased Armed
Forces activity within the Canal Zone. The total year's consumption for the
combined Atlantic and Pacific areas was 2,146.4 million cubic feet, an increase
of 4.3 percent over fiscal year 1964.
Included in the water system organization is a laboratory unit which performs
the necessary tests to assure the production and distribution of safe, potable
water. In addition to this primary function, the laboratory unit also performs
chemical, physical, and bacteriological tests for other Company/Government
units and outside agencies.
The following table shows the consumption of filtered water for municipal
purposes and for sale to vessels for fiscal years 1965 and 1964:
Fiscal year
1965 1964
(millions of cubic feet)
Canal Zone (including Armed Forces) --------------------- 668.6 637.5
City of Panama and suburban Panama --------------------- 1,158.1 1,119.4
Cities of Colon and Cativa------------------------------ 295.8 276.0
Sales to vessels --------------------------------------- 23.9 25.7
Total --------------------------------------- 2,146.4 2,058.6
Vessel repairs
A total of 467 vessels measuring 65 feet or over were repaired in the
Company's shipyard during the fiscal year, accounting for 1,711 ship-days.
Twenty-two vessels were drydocked during the year.
Panama Canal Company and Canal Zone Government sources continued
to provide the major portion of the division's workload throughout the entire






PANAMA CANAL COMPANY


year, with a slight increase percentagewise. The Company/Government
operations and service requirements accounted for approximately 75 percent
of the total volume. Work consisted mainly of the usual floating equipment
overhaul and repairs in the Marine Bureau, the Dredging Division, and the
Locks Division. Of this total, the Marine Bureau provided approximately
30 percent and the Dredging Division 35 percent.
This year commercial work increased, particularly in the last quarter.
Repairs resulting from marine accidents in the Canal comprised a considerable
amount of income for the fiscal year. In most cases repairs amounted to those
necessary to enable the vessel to proceed to a port of call where finished,
permanent repairs could be conducted. Revenues from commercial sources
for ships repaired were $944,763.02 in comparison with $372,319 the previous
year. No major overhauls for the U.S. Navy or for foreign naval vessels
occurred during the year.
Harbor terminals operation
The prime functions of the harbor terminals operation are the movement
of local cargo and in-transit cargo across the Panama Canal Company docks
and piers at the ports of Cristobal and Balboa, and the performance of berthing
services to accommodate vessels requiring bunkers, water, stores, or to embark
and disembark local or in-transit cruise passengers.
The gross tonnage handled, transferred, and stevedored during the year
amounted to 2,389,373 tons, some 5,000 tons under the volume in 1964.
Transshipment cargo showed an increase of 12,128 tons over the previous year.
Local incoming cargo decreased 1,800 tons due to a decline in cargo imported
by the Republic of Panama (some 4,200 tons) offset in part by tonnage
increases of Company/Government and Armed Forces cargo. Local outward
shipments were down some 11,600 tons in 1965 due principally to decreased
exports by the Republic of Panama.
Comparative combined cargo movements in tons of cargo stevedored are
as follows:
Fiscal year
1965 1964
Combined cargo movements between ships and piers 1,172,357 1,173,130
On the piers ------------------------------- 1,217,016 1,221,323
Total (revenue tons) ------------------------ 2,389,373 2,394,453
The marine bunkering operation, the other major function of this division,
increased 1,280,165 barrels, or 3.6 percent over the previous year, 36,792,557
barrels being handled. This is the highest recorded workload experienced by
the marine bunkering section. This increase is attributed chiefly to bunker
deliveries to vessels, up 6 percent over 1964 volume. Bunkering require-
ments increased by 941,894 barrels, or 5.4 percent, resulting in increased
receipts. However, the number of tankers discharging decreased in 1965,
four under the number discharging in 1964. Issues of petroleum products
to the Republic of Panama decreased some 47,300 barrels in 1965 as a result
of direct delivery of Panamanian consumer requirements from the new refinery
located in Panama at Las Minas Bay.






SUPPORTING OPERATIONS


The following comparative workload data is furnished for fiscal years 1965
and 1964:
Fiscal year
1965 1964
(barrels)
Combined receipts (Cristobal and Balboa) -------18,498,416 18,160,145
Combined issues (Cristobal and Balboa) -------------- 18,294,141 17,352,247
Total barrels of products moved --------------- 36,792,557 35,512,392
Tankers discharging (Cristobal and Balboa) ------ 428 432
Vessels bunkering -------------------------------- 4,579 4,416
Printing Plant
The Printing Plant, located at La Boca, C.Z., on the Pacific side of the
Isthmus, is a Government field printing plant under the regulations of the Joint
Committee on Printing, Congress of the United States.
Production continued its steady rise during fiscal year 1965, the total
measured in production units being 8.3 percent higher than in the previous year.
This workload amounted to a total of 73,453,000 production units as compared
with 67,794,000 in 1964. Offset production continued to account for an
ever-increasing share of the printing workload. This year's figures show
offset printing was utilized for 78.6 percent of total production compared to
only 31 percent 6 years ago when the long-range program for modernization
of Plant equipment and conversion from letterpress to offset printing was
inaugurated.

PRINCIPAL ENGINEERING AND CONSTRUCTION PROJECTS
Canal widening at Las Cascadas-Bas Obispo Reaches
The widening of the Canal continued during the year by contract excavation.
This is one of several projects aimed at increasing the capacity of the Canal by
expediting the movement of ships in transit and is concerned with increasing
the width of the usable channel in Gaillard Cut from 300 to 500 feet. During
the past 11 years approximately two-thirds of the 8-mile-long Gaillard Cut has
been widened. The contract for the removal of the softer overburden
materials above elevation 95 feet from the widened area of Las Cascadas-Bas
Obispo Reaches to Mandinga River was completed early in fiscal year 1965.
A total of 5,585,337 cubic yards was removed at a cost of $0.448 per cubic yard.
The remaining work required to complete the widening of Gaillard Cut
consists of the removal of 3,870,000 cubic yards of Zone I (i.e., material above
elevation 90), and 7 million cubic yards of Zone II (below elevation 90
subaqueous) material. If the extra 5-foot-depth design is used, there will be
an additional 650,000 cubic yards of this Zone II material.
Trinidad Dam
At the close of fiscal year 1965, a restudy was being made of the contract
schedule for accomplishment of this project along with the widening of the
Canal through Las Cascadas and Bas Obispo Reaches. Studies were also
underway for relocation of the Guacha-Tern portion of the dam with redesign
of the embankment so as to reduce the quantity of high cost crushed rock for






PANAMA CANAL COMPANY


the filter blanket. During September and October, doubt arose as to the
eventual accomplishment of this project, and no further work was performed
in the study. In June 1965, the Company terminated the contract with
consultants, on the basis that the project was indefinitely deferred.
New locks towing locomotives and cranes
Manufacture and delivery of the locomotives has proceeded about 2 months
ahead of schedule. Fifty-eight locomotives and two cranes were in service
as of May 1965, and the remaining locomotive and No. 3 crane were shipped
from Japan about June 20, 1965.
The new locomotives were installed on both lanes of Pedro Miguel Locks
as of September 19, 1964, and the installation of new machines at Miraflores
Locks was completed January 30, 1965. In general, the new towing locomo-
tives have performed very satisfactorily. They have noticeably speeded up
lockages because of their power and speed advantages over the old machines.
Delays to lockages because of locomotive troubles have been almost negligible.
Under a supplemental agreement with the manufacturer, four of the original
test machines are to be modified, and a change order was executed for
additional locomotive spare parts.
The old locomotives and cranes were retired from service and scrapped.
Four locomotives were retained for display and two were donated to the
National Museum of Transportation and the American Museum of Electricity.
Gorgas Hospital construction
The new Gorgas Hospital building was completed and put in service during
fiscal year 1965. Alterations to the existing plant, and this new 8-story,
air-conditioned hospital building were begun in fiscal year 1962 with the object
of consolidating all Gorgas Hospital activities into four buildings connected
by two pedestrian bridges and a tunnel.
The final phase of the construction of the addition, from April 9 to completion
on October 19, 1964, was performed under a negotiated contract with the
approval of the bonding company after the failure by default of the original
contractor. Liquidated damages, covering 183 days' default, in the amount
of $91,500, was assessed against the defaulted contract.
Locks engineering
This continuous engineering program is to provide improvements to locks
operations. During the year the Corps of Engineers in Buffalo was invited
to inspect the Panama Canal Locks and recommend the feasibility of
modernizing the locks control equipment and/or improving the locks operating
procedure. An official report of their recommendations is to be submitted.
The contract for installation of center wall turntables to turn the new locomo-
tives end to end was completed as well as the construction of nine repair
shelters to be used with the new machines.
In the 24-hour-outage overhaul concept a redesign of the cofferdam became
necessary as the result of an unsuccessful attempt at dewatering. Sketches
and drawings were prepared to show rising stem and cylindrical valve
overhaul schemes.







SUPPORTING OPERATIONS


Expansion of electrical power system
This program, begun in 1961, is designed to provide a system of approxi-
mately 100 megawatts by 1980. In fiscal year 1963 two gas-driven turbine
generators were installed at the Miraflores Power Plant to enlarge the capacity
of this facility.
Upon receipt of plans and specifications for tanks, control room structures,
and the electrical and mechanical installation of work, the awarding of all
major contracts for work on this project was begun. Contracts for the installa-
tion of the steamplant, the turbine generator, the circulating water system, the
fuel storage system, the electrical-mechanical system, the 44-kv. switchyard,
and for miscellaneous building construction were in progress at the end of
this fiscal year. The turbine, generator and condenser were located in place.
The turbine control room addition was approximately 50 percent complete;
the boiler 60 percent complete; the construction of the new tanks approximately
20 percent complete, and the circulating water system construction work was
35 percent complete.
Designs were prepared for two oil storage tanks of 54,165-barrel capacity
and others were started for the interconnection with Panama power system,
Atlantic area. Plans and designs were developed to include additional power
service to Fort Kobbe, and install new oil circuit breakers, switchgear units,
and related appurtenances at other important locations.

Water system improvements
The work of installing a 20-inch waterline from Balboa to Chorillo Hill
and from Balboa Pump Station to the National Avenue manifold in Ancon
was completed during the fiscal year. This work is part of the program aimed
at increasing the potable water supply of Panama City.
New pumps are being installed under contract at the Paraiso Raw Water
Pump Station. These will aid the greatly increased demands upon the Canal
Zone water system.

Operations and capital construction by contract
New contracts awarded in fiscal year 1965 were lower by $621,100 than
those awarded the previous year. Sixty-three contracts covering capital
construction (exclusive of architect-engineering contracts) were awarded for
a total of $5,335,800. Total work accomplished on all capital construction
during fiscal year 1965 amounted to $10,781,300.
Major capital items contracted for during the year were electrical-
mechanical installations for Miraflores Power Plant, $832,500; construction
of building "E" for Curundu Junior High School, $441,200; masonry, tile, and
ceilings for Curundu Junior High School, $335,300; air conditioning Curundu
Junior High School, $292,600; furnishing and erecting storage tanks at Mira-
flores, $274,400; construction of 44-kv. switchyard at Miraflores, $226,900;
electrical work for Curundu Junior High School, $219,600; additional power
service for Howard Air Force Base, $204,800, and approach and exit ramps
for Thatcher Ferry Bridge, $183,700.






PANAMA CANAL COMPANY 31

Other projects
Seven other contracts for account of the Company/Government awarded
for over $100,000 each were construction of play slabs for elementary schools,
$182,200; miscellaneous buildings and structures for Miraflores Power Plant,
$178,800; alterations and additions to Balboa Post Office, $134,200; replace-
ment of refrigeration equipment in Cold Storage Plant, Balboa, $119,000;
technical and procurement services and procurement of equipment and
materials in connection with re-powering of tug, Arraijan, $115,800; floor
coverings for Curundu Junior High School, $113,100; and air conditioning
elementary school at Balboa, $107,100.
















Chapter IV


ADMINISTRATION

PERSONNEL ADMINISTRATION
A plan to reorganize the Canal Zone Civilian Personnel Policy Coordinating
Board was implemented this fiscal year and resulted in a far smoother relation-
ship between the Panama Canal Company/Canal Zone Government and
Department of Defense agencies in the Canal Zone on personnel matters.
In past years, the Board consisted of a member from the Canal agencies,
a member from U.S. Southern Command, and members from each of the local
Army, Navy, and Air Force organizations. A plan to reconstitute the Board
to consist of a representative of the Canal organization and a representative
of the local Department of Defense agencies was approved by the Secretary
of the Army on October 8, 1964. The new organization has been eminently
more satisfactory in terms of meeting the Canal agencies' special needs and
facilitating interagency cooperation.
The third phase of the three-phase Canal Zone Wage Adjustment Program
initiated in April 1962 and the Annual Review of Manual Category positions
based on changes in wages in the nine Naval shipyards in the United States
resulted in increases for all employees in the Manual category and for other
employees, particularly those on a Canal Zone wage base.
In February 1965, the Board of Directors considered a long-range staffing
program to resolve problems likely to be faced by the Canal organization by
retirement attrition of skilled and professional employees during the next
15 years whether or not any decision is made to proceed with the construction
of a sea level canal. In July the Board approved a plan submitted by the
Governor to meet long-range staffing needs. The program proposes three
basic methods of meeting the Canal's long-range staffing needs: (1) a large-
scale, wide spectrum management, professional, and clerical trainee program;
(2) the development of apprenticeships in several new occupational areas, and
(3) a significant expansion of the current apprenticeship program.
Probably the most important personnel management problem in fiscal year
1965 was the reduction and freezing of the 25-percent tropical differential which
had been added to U.S. citizen employees' pay since 1914. The amount of
the differential was reduced to 15 percent and its applicability amended to
cover only heads of household. U.S. citizen employees who were on the rolls

33


11351--6






ADMINISTRATION


of Canal agencies on the effective date of the change in the regulations had
the dollar amount of their differential fixed at the amount of differential they
were receiving on July 20, 1964. This reduction and freezing action of the
differential and the limiting of application to heads of household had a
significant impact both on employee morale in the entire Canal organization
and on pay administration in the Personnel Bureau.
During fiscal year 1965 two important items of employee legislation were
developed for submission. The first (H.R. 5990), amends the Cash Relief
Act of 1937 to increase the gratuity paid non-U.S. beneficiaries by $10 a month
to a maximum pension of $65 per month. The bill also would provide widows
of disability relief beneficiaries with a pension amounting to half that which
would be received by their husbands if still living. At the close of the fiscal
year, this bill had passed the House of Representatives and was pending in
the Senate.
The second legislative proposal would allow the U.S. Government to
participate as an employer in a group health insurance program for non-U.S.
citizen employees and retirees of U.S. Government agencies in the Canal Zone.
At the close of the fiscal year this proposed legislation was still being reviewed
by the Bureau of the Budget.
The Government Employees Salary Reform Act of 1964 provided for upward
adjustments in salaries of General Schedule and Postal employees continuing
the principle of comparability of pay between government and private industry
established by the Federal Salary Reform Act of 1962. The act was admin-
istratively implemented in the Company/Government on August 21, 1964,
effective retroactively to July 5, 1964.
The implementation of the Dual Compensation Act, Public Law 88-448,
enacted August 19, 1964, was approved by the Governor to be effective
December 1, 1964. This act was designed to simplify, modernize, and
consolidate the laws relating to the employment of civilians in more than one
position and the laws concerning the civilian employment of retired members
of the uniformed services. The act places a limitation on the amount of
military retired pay certain retired regular officers may receive while employed
as civilians in the Federal Government without reduction in their civilian pay.

MAJOR ORGANIZATIONAL CHANGES
There were no major organizational changes in the Panama Canal Company
during the fiscal year.

MAJOR PERSONNEL CHANGES
Mr. Theodore C. Henter was promoted to Chief Hydrographer, effective
July 5, 1964, vice Mr. W. Houston Esslinger, retired.
Mr. Frank H. Lerchen was reassigned to Assistant Engineering and Construc-
tion Director effective July 19, 1964, vice Mr. Edward M. Browder, Jr.,
retired.
Lt. Col. Walter W. Fade, USA, was detailed from the U.S. Army as Planning
Engineer (Canal Studies) and Assistant to the Director, Engineering and






PANAMA CANAL COMPANY


Construction Bureau, effective August 2, 1964, vice Lt. Col. William R.
Wray, USA.
Mr. Charles McG. Brandl was reassigned as Chief, Construction Division,
effective September 6, 1964, vice Mr. Harold H. Feeney, retired.
Mr. Ernest W. Zelnick was promoted to Designing Engineer, vice Mr. Frank
H. Lerchen, reassigned, and Mr. Daniel M. Eggleston was promoted to Assistant
Designing Engineer, vice Mr. Ernest W. Zelnick, effective November 22, 1964.
Mr. John E. Fisher was designated as General Auditor effective
November 22, 1964.
Mr. Lawrence L. Jenrich was designated as Chief Accountant effective
November 22, 1964.
Mr. Thomas H. Scott was designated as Chief, Systems Staff, effective
November 22, 1964.
Mr. Elmer G. Abbott, Captain of the Port (Balboa), retired on December 21,
1964.
Mr. Robert Lessiack was promoted to Assistant Comptroller (Chief, Budget
and Rates) effective January 3, 1965, vice Mr. LeRoy B. Magnuson, retired.
Mr. Olen A. Dietz retired as Supervisory Maintenance Engineer (Atlantic)
effective March 29, 1965.
Mr. F. R. Johnson was promoted to Management Analysis Officer (Assistant
Chief, Executive Planning Staff) effective April 11, 1965, vice Mr. Thomas
E. Burrow, resigned.
Mr. Carl J. Browne was promoted to Supervisory General Engineer (Assistant
Engineering and Construction Director) effective May 2, 1965, vice Mr. Frank
H. Lerchen, retired.
Mr. Howard W. Osborn was promoted to Supervisory Maintenance Engineer
effective May 10, 1965, vice Mr. Carl J. Browne, promoted.

FORCE EMPLOYED AND RATES OF PAY
The full-time force employed by the Panama Canal Company on the Isthmus
of Panama as of June 30, 1965, totaled 11,284, an increase of 3 over the
number employed on June 30, 1964.
The full-time U.S. citizen force of the Panama Canal Company on the
Isthmus numbered 2,305 on June 30, 1965, as compared with 2,364 on
June 30, 1964, a decrease of 59, or 2.5 percent. The full-time non-U.S. citizen
force totaled 8,979 as of June 30, 1965, as compared to 8,917 on June 30, 1964,
an increase of 62, or 0.7 percent. The decrease in Company force from 1964
to 1965 resulted largely in the operating units due to reorganizations, reductions
in workload, and force ceiling restrictions. The greatest decreases were
reflected in the Marine Bureau and the Transportation and Terminals Bureau.
In addition to employees on the Isthmus there were 156 U.S. citizens
employed in the Washington and New Orleans offices on June 30, 1965.
Of the 156 in the United States, 4 were in the Washington office, 24 in the
New Orleans office, and 128 officers and crew on the SS Cristobal.
Employments are made under the Canal Zone Merit System, established by
the Canal Zone Wage and Employment Practices Act, 1958, Public Law
85-550 (72 Stat. 405.11 now Canal Zone Code, Title 2, Section 149) assuring






ADMINISTRATION


equal opportunity for citizens of the United States and Panama to obtain
employment in all Canal Zone U.S. Government agencies, in all nonsecurity
positions for which they qualify.
Since the Canal Zone Wage Plan was placed in effect in February 1959,
there has been considerable emphasis placed on training and utilization of
qualified non-U.S. citizen employees in U.S.-based, higher-paying positions.
Since that date, the number of non-U.S. citizens in U.S.-wage-base positions
has increased from 144 to 980, an increase of 836, or approximately 600 percent.
Rates of pay are established regardless of citizenship on a Canal Zone wage
base for occupational categories which can be filled by recruitment on the
Isthmus and on a U.S. wage base for those positions which would normally
be recruited from the United States. The current Canal Zone Wage Plan
contains the following job groups:
Non-manual category-white collar positions, including clerical, professional,
and administrative type jobs.
Manual category-blue collar workers, including laborers, semi and skilled
craftsmen, and related supervisors.
Special category, administrative-includes teachers, policemen, firemen,
postal workers, pilots, and miscellaneous and fee rate group.
Special category, wage board-includes floating equipment, power branch,
printing plant, railroad, apprentices, and learnership group.
Company/Government rate group-includes positions excluded from the
Canal Zone Pay Plan, such as executives, hospital, military, and employees in
the United States.
FULL-TIME EMPLOYEES PAID AT U.S. WAGE BASE1
For several years increasing emphasis has been placed on providing employ-
ment and promotion opportunities in higher paid positions to. non-U.S. citizens.
Since February 1959 the number of non-U.S. citizens in U.S.-base positions has
increased from 144 to 980, an increase of approximately 600 percent. During
fiscal year 1965 an increase of 121 such employment occurred.
Turnover in full-time U.S. citizen Isthmian force
During fiscal year 1965 there were 501 full-time terminations of U.S. citizen
employees (including 7 military) for whom replacement employment were
made. In addition, there were 27 U.S. citizen full-time employees added to
the force. Terminations show a decrease of 40, or 7.4 percent, under the
541 occurring in fiscal year 1964.
Turnover in full-time non-U.S. citizen Isthmian force
Exclusive of student assistants, 1,024 full-time employees were terminated
in the non-U.S. citizen group. All of these were replaced and there were
194 additional employment.
Recruitment
Of the 538 U.S. citizen full-time accessions in fiscal year 1965, only 91, or
about 17 percent, were recruited from the United States, and 447, or 83 percent,
I Statistics in this section cover both Panama Canal Company and Canal Zone Government
employees.






PANAMA CANAL COMPANY


were recruited locally. All of the 1,191 full-time non-U.S. citizen employ-
ments were local recruitments. These additions to the force for fiscal year 1965
represent an accession rate of 14 percent for U.S. citizens and 12 percent for
non-U.S. citizens.
The 91 employees recruited in the United States included 22 teachers for
the U.S. schools system, 12 interns and hospital residents, 18 skilled craftsmen,
and 39 medical and professional employees not available from Canal Zone
or Panama sources.
At the close of the fiscal year, there were 15 U.S. requisitions pending for
which selections had been made and 29 vacancies pending for which no
selection had been made. The 29 vacancies for U.S. recruitment included
positions for teachers, nurses, skilled craftsmen, pilots-in-training, and
pharmacists.

Pay adjustments
Virtually all employees of the Panama Canal Company/Canal Zone
Govenrment received salary and wage increases during fiscal year 1965 in six
different wage adjustments, and the third phase of the three-phase Canal Zone
base adjustment. The total annual cost to the Company/Government of
these adjustments will be approximately $3,369,976. This figure includes
6.5 percent added for retirements costs. In comparison, the annual cost of
pay increases in fiscal year 1964 amounted to approximately $4,400,000
including retirement costs.

Cash relief for disabled employees
Effective October 5, 1958, with the implementation of section 13 of Public
Law 85-550 placing non-U.S. citizen employees under the Civil Service Retire-
ment Act, the Cash Relief Act of 1937 as amended was discontinued prospec-
tively. Beneficiaries on the Cash Relief Act rolls prior to that date continue
to draw Cash Relief Act benefits.
During fiscal year 1965 monthly payments for cash relief averaged $140,328
($130,256 in the Company and $10,072 in the Government). In fiscal year
1964 monthly payments averaged $150,713, about $10,385 more per month.
The total average monthly payment per case remained about $48.
During fiscal year 1965 there were 252 removals from the rolls due to death,
221 for the Company and 31 for the Government. The number of cash relief
beneficiaries as of June 30, 1965, was 2,825 (2,612 for the Company and
213 for the Government).
Now pending in Congress is bill H.R. 5541, which would increase the
maximum cash relief benefit from $55 to $65 per month. This would produce
a new average payment of $58 per month. Included in the bill is a provision
which would entitle widows of cash relief annuitants to an annuity equal to
one-half the rate which the husband would receive if he'were alive. This bill
has passed the House of Representatives and is still pending in Congress.
During fiscal year 1965 there were no former employees eligible for
repatriation under this program.






ADMINISTRATION


INCENTIVE AWARDS1
The Incentive Awards Program for the Panama Canal Company/Canal Zone
Government is designed to encourage, recognize, and reward employees
at all levels for their constructive ideas and meritorious job performances
which result in increased efficiency and economy of operation.
This fiscal year 770 employee suggestions were submitted within the agency,
a decrease of 266 under the 1,036 submitted in 1964. During the year awards
were approved for 180 beneficial suggestions which were adopted. Benefits
were estimated to amount to about $54,790 for these employee suggestions.
Cash awards totaling $43,745 were made for adopted suggestions and 207
performance recommendations. Tangible benefits increased from $454,565
in fiscal year 1964 to $698,248 this year.
Some 212 honorary award nominations were received during the fiscal year,
in comparison with 150 award recommendations in fiscal year 1964.
In addition, a Superior Service Award was granted one employee for initiative
that resulted in an estimated tangible benefit of $360,000.
In observance of the 10th-anniversary year of the Incentive Awards Program,
seven special Presidential certificates were granted to individuals for their
beneficial suggestions resulting in tangible benefits estimated at $141,683.
Prompt processing of all suggestions has been an aid in this program.
Extensive written and pictorial publicity has been secured in Company publica-
tions and in Panama newspapers in both languages, and the presentation of
a series of 35-mm. slides during employee discussions on the program were
utilized to advantage.

SAFETY PROGRAM'
The principal duties of the Safety Branch are to supervise and promote the
application of safety measures in all units of the Panama Canal Company and
the Canal Zone Government, and to develop and improve accident prevention
programs for those organizations, including the coordination of occupational
health, sanitation and fire prevention activities with the overall accident
prevention program.
During the year full-time safety supervisors and safety inspectors, responsible
for handling safety matters in the Marine, Engineering and Construction,
Transportation and Terminals, and Supply and Community Services Bureaus,
continued their activities. The Office of the Comptroller, Personnel, Civil
Affairs, and Health Bureaus utilized the services of employees assigned as
part-time safety assistants, in addition to their other duties, for handling safety
measures.
Membership was continued in the Consejo Interamericano de Seguridad,
the Latin American counterpart and affiliate of the National Safety Council.
Such membership enables the Company/Government to maintain better safety
communication with non-English speaking or reading employees who are more
interested and responsive to such materials when provided in their native
language.
I Statistics in this section cover both Panama Canal Company and Canal Zone Government
employees.






PANAMA CANAL COMPANY


The highlight of the year in safety activities was President Johnson's
inauguration of Mission Safety 70 on February 16, 1965. The goal of the
Mission is to reduce by 30 percent the number of disabling injuries to Federal
workers. It is his desire that this goal be reached by 1970. In compliance
with requirements of the program, a detailed report of a careful and critical
review of the Panama Canal Company/Canal Zone Government safety
program was forwarded to the President on May 10, 1965. As a result of
the review it was found that significant weaknesses in the execution of the
program existed, and in an effort to minimize or eliminate such weaknesses
several additional safety requirements were established in memorandum of
May 24, 1965, to all operating bureau directors.
The existence and goal of Mission Safety 70 has been widely publicized
to all employees and supervisors. The program will receive continuing
emphasis until the goal is reached.
Personnel of the Safety Branch and the Health Bureau are conducting a
feasibility study regarding the first-aid treatment of industrial injuries and
occupational diseases by a separate clinic or industrial health dispensary.
The Industrial Health Branch presently staffed by four physicians appears
to be the logical organization to head up and provide such treatments and
the study is being conducted with this objective in mind.
During the year, the Chief, Safety Branch, as Chairman of the ad hoc
committee appointed by the Governor/President to investigate the need for
and to develop suitable safety regulations to protect the health and safety of
all longshoremen employed aboard vessels in Canal Zone waters, completed
and submitted such regulations to the Office of the General Counsel. They
were published on June 28, 1965, as General Order No. 32, Regulations
Governing Stevedoring.
The Governor/President Safety Trophy, awarded each calendar year to the
bureau achieving the highest percentage improvement in disabling injury
frequency rate over its own previous 3-year average, was not awarded this year
since no bureau met the requirements. During the first half of the fiscal year
the accident rate continued higher than normal as it also was during the last
half of the preceding fiscal year. However, improvement was shown in the
last half of this fiscal year with the number of accidents for the January-June
period totaling 86 as compared to 112 for the January-June 1964 period.
Outstanding safety achievements were as follows: the Canal Zone Division
of Schools earned its ninth consecutive annual award for 100-percent participa-
tion in the National Safety Council School Safety Program which requires a
comprehensive and highly successful safety program throughout the Canal
Zone school system; and the Supply and Community Service Bureau earned
the National Safety Council's "Award of Merit" for outstanding safety
achievement for the period February 10, 1965, to May 23, 1965.
Three fatalities occurred during fiscal year 1965, two in the Transportation
and Terminals Bureau, and a third in the Dredging Division. The fatality
rate this year is equivalent to 1 accidental death for every 4,811 employees, as
compared to the national average of 1 death for every 4,662 workers employed,
as reported for calendar year 1963 by the National Safety Council. There was







ADMINISTRATION


one injury causing permanent partial disability as compared with five injuries
last year and there were no permanent total disability cases this fiscal year.
This year's disability injury frequency rate of 6.08 represents an 18-percent
decrease over last year's rate of 7.42. This is the 10th consecutive year that
the Company/Government frequency rate remained below the national
all-industry average, which in 1964 was 7.94, as reported by the National
Safety Council. This year's disabling injury severity rate of 728 represents
a 55-percent increase over last year's rate of 469. While the total number
of disabling injuries were fewer than in the previous year, the fact that there
were three fatalities as against one in the previous year accounts for the
increase in the severity rate.
Federal property damages were reported in the amount of $52,275 this year
compared to $52,161 last year.

Safety Statistics
Fiscal year


1965


Employee-hours of exposure -------------- 29,125,244
Disabling injuries ----------- ------------- 177
Injuries causing permanent partial disability 1
Injuries causing permanent total disability ------- 0
Frequency rate1 ----------------------------------6.08
Severity rate2---------- ------------- 728
Number of fatalities 3
Days charged ------------------------------ 21,213
1 Disabling injuries per million employee-hours of exposure.
2 Severity rate is the time charged in days, per million employee-hours of exposure.


1964
28,850,835
214
5
0
7.42
469
1
13,521













Chapter V


FINANCIAL REPORT AND
STATISTICAL DATA

FINANCIAL STATEMENTS AND RELATED SUPPLEMENTARY
REPORTS FOR THE YEAR ENDED JUNE 30, 1965
The financial statements of the Panama Canal Company appearing as tables 1
through 10, with the accompanying notes, present the financial position of
the Company at June 30, 1965, and the financial results of its operations for
the fiscal year then ended.
All statements have been examined by the General Auditor of the Panama
Canal Company and are subject to audit by the General Accounting Office.
Detailed audit reports of the General Accounting Office are directed to the
Congress and are presented as congressional documents.
A brief financial review can be found on page 5 of the introduction.
Supplementary information concerning funds, operating results, payments
to the U.S. Treasury, net direct investment of the U.S. Government, and
retained revenue is presented in the tabulations and comments which follow.
Equity of the U.S. Government
The net direct investment (interest-bearing) of the U.S. Government in
the Panama Canal Company was increased in excess of $1 million during the
year primarily as the result of the reversal of excess valuation allowances for
(1) early retirement of 25-cycle plant, $751,150, and (2) possible loss on
obsolete and excess stocks, $337,269. Retained revenue was charged with
$655,000 of abandoned construction projects, the costs of which were incurred
in prior years.
Capital Expenditures
Company capital expenditures amounted to $10.6 million. The budgeted
estimate for the year was $12.5 million. Expenditures in the transit operations
exceeded $4 million, the principal expenditure being $2.6 million for locks
towing locomotives. A total of $2.4 million was expended for purchase and
installation of a steam turbine-generator for the electric power system.

41


11351--7







FINANCIAL REPORT AND STATISTICAL DATA

Table 1.-Comparative Statement of Financial


Assets
CURRENT ASSETS:
Fund balances with U.S. Treasury and cash:
Fund balance in U.S. Treasury checking
account-----------------------
Cash in commercial banks, on hand, and in
transit -----------------

Accounts receivable:
Canal Zone Government and other U.S.
Government agencies -
Republic of Panama ----------
Other-------- --------

Inventories (note 1):
Materials and supplies (principally at
standard cost) less allowances for excess,
obsolete, and inactive stocks of $602,538
in 1964----------------------
Merchandise held for sale (at average cost)-


Other current assets---- --------
Total current assets -
FIXED ASSETS (note 2):
Cost ------------
Less depreciation and valuation allowances-...

THATCHER FERRY BRIDGE:
Capitalized construction costs -
Less allowance for depreciation ------

Fund balance with U.S. Treasury-

DEFERRED CHARGES AND OTHER ASSETS----


1965


$1,439,237
4,787,148
6,226,385

3,481,936
2,391,330
2,297,340
8,170,606



7,221,165
3,821,349
11,042,514

173,008
25,612,513

662,700,296
198,544,696
464,155,600

19,059,518
998,499
18,061,019
138,427
18,199,446
652,422

508,619,981


1964


$3,837,620
5,488,425
9,326,045

1,652,034
2,264,277
1,967,761
5,884,072



6,412,868
4,479,927
10,892,795

133,930
26,236,842

658,591,459
198,103,928
460,487,531

18,751,069
690,374
18,060,695
1,315,340
19,376,035
696,118
506,796,526


Automatic Data Processing
A major change in accounting technique was inaugurated on April 1, 1965,
with the installation of a computer. The first phase, now on the computer,
is that of inventory control. Systems studies in process will shortly result in
use of the computer for payroll and personnel procedures.

NOTES TO FINANCIAL STATEMENTS
1. Inventories. Inventories of operating materials and supplies are stated
principally at standard cost. Inventories of merchandise for sale are stated
at average cost using the retail method for valuation.
Allowance for excess, obsolete, and inactive materials and supplies amounted
to $602,538 at June 30, 1964. During fiscal year 1965 this allowance was
charged with $265,000 for losses on excess, obsolete, and inactive stock. The






PANAMA CANAL COMPANY

Condition June 30, 1965 and 1964


Liabilities and equity
CURRENT LIABILrrIEs:
Accounts payable:
U.S. Government agencies-------_-_.
Other ___________________-____


Due U.S. Treasury.----------
Accrued liabilities:
Employees' leave liability---- -
Salaries and wages----- ___------
Claims for damages to vessels----------
Other ------


Other current liabilities---
Total current liabilities-----------------
RESERVES:
Overhaul of locks--------------------
Maintenance of phannels-_
Non-capital power conversion costs ---------


EQurrY OF U.S. GOVERNMENT (note 3):
Net direct investment, interest-bearing-----
Retained revenue, non-interest-bearing
Thatcher Ferry Bridge, non-interest-bearing-_


1965


$2,375,019
3,566,421
5,941,440
2,010,493

11,317,778
1,486,317
618,180
1,081,919
14,504,194
958,448
23,414,575

1,559,862

178,080
1,737,942


329,830,278
135,437,740
18,199,446
483,467,464
508,619,981


1964


$1,615,239
4,030,337
5,645,576
1,904,532

10,369,027
1,733,976
252,750
863,085
13,218,838
861,117
21,630,063

2,020,548
49,230
178,080
2,247,858


328,812,302
134,730,268
19,376,035
482,918,605
506,796,526


The accompanying "Notes to Financial Statements" are an integral part of this
statement.

balance was closed out to the Company's interest-bearing investment. In the
future, inventory losses, if any, will be charged to operations.
2. Fixed assets. Fixed assets generally are stated at cost, or if acquired from
another Government agency at original cost to such agency. Valuation
allowances have been established in accordance with sections 62 and 412
of title 2 of the Canal Zone Code (1) to offset the cost of defense facilities and
suspended construction projects-principally the partial construction of a third
set of locks abandoned in the early part of World War II-totaling $89.7 million
(both the cost and the valuation allowances have been excluded from the
statement of financial condition) and interest during original construction
aggregating about $51 million and (2) to reduce to usable value the cost of
those fixed assets transferred to the Company from The Panama Canal (agency)
at July 1, 1951. Because of historical practice and a construing of the Canal






FINANCIAL REPORT AND STATISTICAL DATA


Zone Code as not requiring the depreciation or amortization of certain assets,
depreciation or amortization allowances have not been provided on titles,
treaty rights, and excavations of channels, harbors, basins, and other works
costing about $310 million. If these assets were depreciated at the rate of
1 percent per annum, there would be an annual charge against operations of
approximately $3 million. Depreciation allowances on all other fixed assets
are accumulated on a straight-line basis.
3. Equity of the U.S. Government. The equity of the U.S. Government
in the Company consists of the net direct investment, established in accordance
with section 62 of title 2 of the Canal Zone Code, and the retained revenue.
The Company is required to pay interest to the U.S. Treasury on the net
direct investment at a rate established by the Secretary of the Treasury.
The rates for 1965 and 1964 were, respectively, 3.457 and 3.328 percent.
The act of August 25, 1959 (73 Stat. 428), amended section 71 of title 2
of the Canal Zone Code to provide the Company with authority to borrow
funds from the U.S. Treasury not to exceed $10 million outstanding at any
time at interest rates to be determined by the Secretary of the Treasury.
The act of July 23, 1956 (70 Stat. 596), directed the Company to construct,
maintain, and operate a high-level bridge across the Canal at Balboa, for
which funds were appropriated. Because of national policy the costs of
construction and of maintenance and operation are to be treated as extraor-
dinary costs and are not to be related to the operations of the Company.
Maintenance of the bridge for the year amounted to $232,668, the cost of
which was financed from Company cash and the Company's interest-bearing
investment reduced accordingly as authorized by law.
Beginning with fiscal year 1966, the Company will be required to absorb
the cost of maintenance and depreciation on the bridge by general provision
included in the 1966 Public Works Appropriation Act.
4. Contingent and other liabilities. The Company is contingently liable
with respect to certain pending suits and claims. In addition, the Company
has outstanding at all times certain liabilities of indeterminable amounts
which are recognized in the accounts on an as-paid basis. These liabilities
include, principally, monthly relief benefits payable to retired alien employees;
repatriation costs earned by certain employees; benefits payable under provi-
sions of the Federal Employees Compensation Act; and commitments for
construction work, supplies, and services.
The maximum liability which could result from outstanding claims and
lawsuits is estimated to be $2.7 million. The relief payments to be made to
retired alien employees in fiscal year 1966 are estimated at $1.5 million.
Repatriation allowances are payable to certain employees who, after comple-
tion of two years of service, are entitled to such allowances upon termination
of their employment. The maximum liability for payment of repatriation at
future dates is estimated not to exceed $6 million. Commitments under
uncompleted construction contracts and unfilled purchase orders amounted to
$5 million at June 30, 1965.
The Company held at June 30, 1965, negotiable U.S. Government securities
and Republic of Panama securities in the face amount of $1,950,000 deposited







PANAMA CANAL COMPANY


by customers and Panamanian insurance firms to guarantee contract per-
formance and payment of tolls and other charges and, on behalf of the Canal
Zone Government, negotiable securities in the face amount of $543,500 to
guarantee payment of possible judgments against insurance companies
operating in the Canal Zone.

Table 2.-Comparative Statement of Revenue and Expenses,
Fiscal Years Ended June 30, 1965 and 1964


REVENUE:
Tolls---------------------------------
Credit for tolls on U.S. Government vessels----
Commodities sold-----------------------
Service sales and rentals-------------------



OPERATING EXPENSES AND OTHER COSTS:
Payroll and related costs-------------------
Material and other operating expenses-
Cost of commodities sold ----------
Depreciation---------------------------
Net cost of Canal Zone Government----------
Interest on net direct investment of U.S. Govern-
ment --------------------


Less payroll and other costs transferred to Com-
pany capital projects and Canal Zone Govern-
ment programs ------------_
Total operating expenses and other costs- _---
Net revenue before recognition of loss on dispo-
sition of fixed assets-----------
Deduct loss on disposition of fixed assets------

NET REVENUE -----------------


1965
$65,502,769
1,651,890
24,310,613
29,735,045
121,200,317


62,807,256
11,396,153
16,589,731
5,948,495
18,443,466
11,375,288
126,560,389


7,754,299
118,806,090

2,394,227
851,788


1964
$61,146,998
1,399,393
23,281,107
27,219,173
113,046,671


58,785,601
9,375,310
15,953,752
5,524,986
16,300,215
10,950,382
116,890,246


6,504,886
110,385,360

2,661,311
499,406


$1,542,439 $2,161,905







FINANCIAL REPORT AND STATISTICAL DATA

Table 3.-Statement of Changes in Equity of the U.S. Government,
Fiscal Year Ended June 30, 1965


Net direct
interest-bearing


EQUITY AT JULY 1, 1964---__-_
Additions:
Net revenues ---------
Reversal of excess valuation
allowances for:
Early retirement of 25-
cycle plant ------
Loss on obsolete and ex-
cess stock-----
Reactivation of plant....----
Loss on retirement of 25-
cycle plant charged to
operations in prior years,
instead of valuation allow-
ance established therefor-
Property transfers, other U.S.
Government agencies, net_

Reductions:
Abandoned capital construc-
tion projects---------
Reclassification of items pre-
viously capitalized ----
Thatcher Ferry Bridge:
Release excess construc-
tion appropriation---
Provision for deprecia-
tion -------
Funded maintenance
costs------------
Municipal facilities, fi-
nanced from bridge
funds, transferred to
the Canal Zone Gov-
ernment ---------


EQUITY AT JUNE 30, 1965 ----


$328,812,302 $134,730,268


Thatcher Ferry
Bridge, non-
interest-bearing
$19,376,035


1,542,439


751,150
337,269
103,248


70,571


58,977
330,062,946


136,343,278 19,376,035


654,982
250,556


850,000
308,125


232,668


232,668 905,538


18,464
1,176,589


329,830,278 135,437,740 18,199,446


Retained revenue,
non-interest-
bearing






PANAMA CANAL COMPANY!

Table 4.-Statement of Source and Application of Funds,
Fiscal Year Ended June 30, 1965


SOURcE OF FUNDS:
Revenues- -------------
Decrease in cash -------------- --.........
Reversal of excess valuation allowance for obsolete
and excess stock------------------- -------------
Proceeds from disposition of fixed assets-----------------


APPLICATION OF FUNDs:
Operating expenses and other costs
Less operating expenses not requiring expenditure
of funds:
Provision for depreciation----------------$5,948,495
Provision for maintenance of channels---- ...3,420,658
Provision for locks overhaul---- ... 987,000
Loss on disposition of fixed assets--- 851,788
Other _....... ..166,235

Capital expenditures_ ----- -----
Channel maintenance expenditures e ... .. ...----
Canal locks overhaul expenditures --------------
Thatcher Ferry Bridge maintenance ------------
Net change in other working capital--------------------


$121,200,317
3,099,660
337,269
101,613
124,738,859


119,657,878





11,374,176
108,283,702
10,614,095
3,469,888
1,447,687
232,668
690,819
124,738,859


Table 5.-Statement of Revenue and Operating Expenses,
Fiscal Year Ended June 30, 1965


Revenue


Operating
expenses


Operating
income


TRANSIT OPERATIONs (table 6) --

SUPPORTING SERVICES (table 7):
Maritime services------
Employees' services ------
Transportation and utilities --
Other supporting services ----


$73,853,079 $32,299,554 $41,553,525


11,155,433
26,277,689
6,571,192
3,342,924
47,347,238
121,200,317


9,290,307
26,215,710
6,365,089
2,999,758
44,870,864
77,170,418


GENERAL CORPORATE EXPENSES:
Net cost of Canal Zone Government--------------------
Administrative and other general expenses (table 8)------
Interest on net direct investment of the U.S. Government ---


NET REVENUE ---------------------


1,865,126
61,979
206,103
343,166
2,476,374
44,029,899


18,443,466
12,668,706
11,375,288
42,487,460

1,542,439








48 FINANCIAL REPORT AND STATISTICAL DATA


Table 6.-Transit Operations, Statement of Revenue and Operating Expenses,

Fiscal Year Ended June 30, 1965


REVENUE:
Canal tolls-------- ----------------_ _--__-_
Credit for tolls on U.S. Government vessels---------------------------
Harbor pilotage, tug, launch, and other services ----------------------
Total revenue ------- __________-__ _-----


OPERATING EXPENSES:
Navigation services and control----
Operation and maintenance of locks
Provision for channel maintenance-
Dredging of channel and harbors-_
Diesel power generation..--------
Provision for periodic overhaul of
locks -- -------
Meteorology and hydrography serv-
ices -- --- -
Locks security force ----. ----
Annuity to Republic of Panama
(repayment to U.S. Treasury)--
Damage to vessels -------
Operation and maintenance of dams,
reservoirs, and spillways ----
Miscellaneous_ ___ ----
Total operating expenses ----


Direct
Expenses
$11,986,397
8,738,022
3,420,658
3,230,958
1,323,426
987,000
686,018
524,088
430,000
429,312
85,889
266,948
32,108,716


$65,502,769
1,651,890
6,698,420
73,853,079


Depreciation
$278,296
1,321,897
367,026


10,760


113,700
6,036
2,097,715


34,206,431


Less charges to other activities --.- ------- 1,906,877
Net operating expenses ---------------


32,299,554


OPERATING INCOME --- --- -------------- ---------------- 41,553,525










PANAMA CANAL COMPANY


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FINANCIAL REPORT AND STATISTICAL DATA

Table 8.-Administrative and Other General Expenses,
Fiscal Year Ended June 30, 1965


EXECUTIVE DIRECTION:
Board of directors
Office of the president-
Information office --------------
Tourist facilities ------ ---
Office of the secretary -
Consultants and advisers
OPERATIONS DIRECTION:
General and special engineering services-
Office of the engineering and construction director-
Office of the marine director -- -----------
Office of the supply and community service
director-___ _
Office of the transportation and terminals director
FINANCIAL MANAGEMENT:
Office of the comptroller-
Annual audit --.......
PERSONNEL ADMINISTRATION:
Personnel bureau ---
Apprentice program
GENERAL SERVICES:
Administrative branch ------ ----
Maintenance of buildings
Public services .........
Miscellaneous ----------
EMPLOYMENT COSTS:
Alien cash relief
Employees' home leave travel-
Recruitment and repatriation -
Leave liability variation _.---- ---
Death and disability compensation -------
Contribution for employees' health benefit associa-
tion ..--....______________________
Medical and other services for alien cash relief
annuitants ------ ---_ ---____ ______
Contribution for employees' group life insurance-
Transportation of employees' vehicles-
Over-distribution of civil service retirement con-
tribution------------- --------
Miscellaneous -------- --
OTHER EXPENSES:
Loss on disposition of fixed assets -
Depreciation ----------------
Law suits and tort claims ----------
Civil disturbances---

LESS REIMBURSEMENTS AND OTHER CREDITS:
Expenses allocated to Canal Zone Government-
Miscellaneous ________-_-__ _-______

NET ADMINISTRATIVE AND OTHER GENERAL EXPENSES-


$19,764
719,168
449,897
70,780
78,723
178,069


$1,516,401


301,501
185,437
105,313


135,628
92,058

3,466,617
61,000

1,099,312
157,183

696,272
416,952
70,166
68,992

1,563,159
993,780
408,314
373,816
193,967
154,433
108,233
80,120
52,009
(38,984)
82,365

851,788
206,022
177,681
11,778


750,000
172,607


819,937


3,527,617


1,256,495




1,252,382


3,971,212




1,247,269
13,591,313


922,607

12,668,706







PANAMA CANAL COMPANY


Table 9.-Inventories, June 30, 1965


MATERIALS AND SUPPLIES:
Storehouse branch:
General materials and supplies--------------------
Petroleum products---- --------------------
Scrap-----------------------------
In transit to Isthmus ------------- ---


Other divisions' stock:
Locks division------- ---------------
Vessel repair----------------- ----------------
Railroad division-------------------
Marine terminals------------------------------
Water transportation ---------------------------
Motor transportation division ---------------
Retail stores and allied operations-----------
Service centers--------------------------------
Printing plant--------------------
Dredging division-------------------
Water system --------------------------------
Power system ---------------------------------
Construction and maintenance activities-


Manufacturing and repair work in progress:
Vessel repair------------------
Other units-------------------------- ------


Total materials and supplies -

MERCHANDISE HELD FOR SALE:
Retail stores and allied operations:
In warehouses and in stores -
In transit----------------------- -------------


Water transportation ---------------------
Service centers-----------------------------------
Tivoli guest house-------------------

Total merchandise held for sale-------------


TOTAL INVENTORIES--------------------


$4,944,686
227,511
138,825
356,408
5,667,430

157,079
63,896
195,214
95,110
59,250
369
131.65-4
53,529
15,049
198,776
67,229
67,245
271,421
1,375,821

176,563
1,351
177,914

7,221,165


3,052,047
497,397
3,549,444
2,129
224,071
45,705

3,821,349

11,042,514











FINANCIAL REPORT AND STATISTICAL DATA


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FINANCIAL REPORT AND STATISTICAL DATA


Table 11.-Ocean Traffic Through Panama Canal-Fiscal Years 1955
Through 1965


Total traffic


1955 -------------------.....
1956...------------------
1957 -----------.. ......
1958 .....----------------
1959-- ---------
1960 -----------... ...
1961-- ---------
1962.---- ---------
1963-..----------------
1964 -----------------
1965.........--------------


1955 ------------------
1956 ------------------
1957 ------------------
1958 ------------------
1959 ------------------
1960 ----------------
1961 .....-----------------
1962 -----------------
1963......---------------
1964 ..--------------
1965 -------------------



1955 -----------------
1956 -----------------
1957 -------------------
1958 ------------------
1959 ------------------
1960 -- ...----------------
1961 --------------------
1962--------------------
1963 ---- -----------
1964------------------
1964 ------------.. -------
1965 .... .. ... .


Number
of
transit


7,997
8,209
8,579
9,187
9.718
10,795
10,866
11,149
11,017
11,808
11,834


296
266
269
279
204
182
18S
191
300
285
284



8,293
8,475
8,84S
9,466
9,922
10,977
11 0 4
11 il
11,317
12u.0'1
12,116


Tolls


Traffic assessed tolls
on net tonnage basis

Tons Number Panama
of of Canal net
cargo transits tonnage


Commercial Ocean Traffic
$33,849,477 40,646,301
36,153,842 45,119,042
38,444,128 49,702,200
41,795,905 48,124,809
45,528,728 51,153,096
50,939,428 59,258,219
54,127,877 63,669,738
57,289,705 67,524,552
56,368,073 62,247,094
61,098,312 70,550,090
65,442.633 76,573,071
Government Ocean Traffic
$1,190,367 838,305
1,215,883 1,150,121
1,117,467 922,173
972,110 791,310
965,643 1,012,S42
813,313 804,581
997,842 1,149,934
1,028,396 1,126,418
1,460,281 1,115,352
1,395,548 1,177,269
1,649,048 1,923,538

Total Ocean Traffic
$35,0329,844 41,484,606
37,369,725 46,269,163
39,561,595 50,624,373
42,768,015 48,916,119
46,494,371 52,1i5,938
51,752,741 .,(),l 2., Iii
5 125 :'721 64,819,672
s 31'.;10 68,650,970
..17,%2,., 54 63,362,446
(.,4' i,.i.i 71,727,359
67,091,681 7S,496,609


7,953
8,157
8,540
9,162
9,682
10,745
10,823
11,096
10,973
11,756
11,777


227
219
199
224
172
148
160
166
213
184
216



8,180
8,376
8,739
9,386
9,854
10,893
10,983
11,262
11. I |'J
11,',40 .1
11,993


38,567,769
41,202,961
43,628,210
47,924,345
52,153,563
58,301,926
61.'26.0sr
65.37 41
64,438,115
69,632,611
74,734,814


1,184,135
1,286,841
1 0-6 5,,4
1,020,267
1,047,674
864,177
1,088,393
1,095,074
1,387,597
1,337,065
1,733,736



39,751,904
42,489,802
44,714,774
48,944,612
53,201,237
59,166,103
62,914,395
66,473,919
65,825,712
70,t -.1.671.
7u,4t. ,'...i


Traffic assessed tolls on
displacement tonnage
basis

Number Displace-
of ment
transits tonnage


136,987
126,233
155,055
78,691
112,609
193,471
140,760
197,390
110,002
134,221
20 .21i'5


341.119
226,813
392,671
219,938
120,562
134,965
130,905
135,236
552,928
493,655
332,827



478,186
353,046
547,726
298,629
233,171
328,436
271,665
332,626
662,930
627,876
541,032


Table 12.-Traffic by Months-Fiscal Years 1965 and 1964


July---------
August ---------.
September ------
October -----------
November- ...- -
December ......-----
January ------........
February.....------
March-------------
April----------
May-------------
June-----------
Total -------
Average per month -


Number of
transit

1964-65 1963-64


1.004
1,034
970
1,018
988
1,021
921
819
1,084
1,052
1,010
943

11,834
986


944
946
923
980
946
958
1,015
997
1,077
1,011
1,012
999

11,808
984


Panama Canal
net tonnage


1964-65
6,069,346
6,273,555
6,088,409
6,251,961
6,231,182
6,425,276
5,691,902
5,196,236
7,106,826
6,723,947
6,537,708
6,138,466

74,734,814
6,227,901


1963-64
5,566,473
5,491,930
5,509,268
5,862,742
5,583,490
5,578,589
5,856,561
5,899,302
6,268,488
5,924,349
6,105,355
5,986,064
69,632,611
5,802,718


Tons of cargo


1964-6.5
6,062,061
6,604,144
6,227,125
6,248,022
6,155,639
6,644,998
5,705,541
5,160,125
7,669,785
6,997,717
6,631,196
6,466,718

76,573,071
6,381,089


1963-64
5,923,878
5,641,432
5,701,689
5,925,018
5,398,696
5,690,973
5,831,527
6,186,786
6,268,912
5,912,355
6,166,497
5,902,327


Tolls

1964-65 1963-64
$5,313,002 $4,897,955
5,497,2;2 4,841,525
5,338,810 4.836,521
5,483,920 5,153,861
5,435,138 4,879,040
5,641,252 4,897,036
4,981,492 5,139,945
4,523,274 5,192,816
6,231,396 5,480,020
5,888,034 5,202,264
5,731,746 5,355,460
5,377,307 5.221,SW9


70,550,090 $65,442,633 $61,098,312
5,879,174 $5,453,553 $5,091,526


NOTE.-The above includes only commercial vessels of 300 net tons and over (Panama Canal measurement), or of 500
displacement tons and over on vessels paying tolls on a displacement tonnage basis. Statistics on these vessels, except
as relates to displacement tonnage, have been included in the table above.








PANAMA CANAL COMPANY


Table 13.-Canal Traffic' by Nationality of Vessel-Fiscal Year 1965
Measured Tonnage


Nationality
Argentinian------ -----------
Belgian --
Brazilian ----
British
Bulgarian -----------
Chilean ----------
Chinese (Nationalist) ----
Chinese (Republic) -- ----
Colombian ----------
Cuban--------------
Danish ---------------
Ecuadorian
Finnish
French-
German ------------
G hanaian ------------------
Greek-------------
Guinean -
Haitian --------------
Honduran _-- --- ----
Icelandic --------------------
Indian ------------
Indonesian -
Irish---------------
Israeli
Italian
Japanese
Korean (South) ----
Kuwait------------------
Lebanese-------------------
Liberian---------- -----
Mexican-----------
Netherlands
Nicaraguan
Norwegian
Panamanian
Peruvian __
Philippine
Spanish
Swedish
Swiss
United States -
Soviet-------------
Venezuelan -------------
Yugoslavian
Total, fiscal year-
1965 -- -----
1964 --------
1963


Panama
Number of Canal
Transits Net
1 ---------
49 264,289
3 11,016
1,339 9,441,036
2 12,988
115 675,192
103 641.259
17 102,439
246 940,690
5 34,393
283 1,892,129
25 117,420
27 166,841
172 863,809
1,186 5,323,945
1 5,393
575 4,199,496
4 28,801
1 6,265
268 327,387
2 18,044
8 113,509
2 6,763
12 90.025
59 407,761
192 1,550,597
804 4,886,276
15 80,381
2 1,904
34 181,007
1,118 9,554.288
42 104,311
618 2,680,774
62 151,273
1.446 10,992,214
518 2,300,996
153 568,942
84 550,848
11 36,452
388 2,621.579
82 141,450
1,678 12.197.141
48 294,.674
17 22.791
17 126.026

11,834 74.734.814
11,808 69.632,.611
11,017 64,438,115


1 Includes only commercial vessels of 300 net tons and over (Panama Canal measurement),
or of 500 displacement tons and over on vessels paying tolls on displacement basis (dredges,
warships, etc.).
NOTE.-In Canal traffic statistics, foreign naval vessels such as transports, supply ships, tankers,
etc., with a measurement of 300 net tons (Panama Canal measurement) and over, and vessels
of war, dredges, etc., with a displacement of 500 tons and over are classified as oceangoing com-
mercial vessels. Statistics on these vessels, except as relates to displacement tonnage, have been
included in the table above. As displacement tonnage cannot be combined with net tonnage the
following table shows statistics covering 57 vessels which transited the Canal during fiscal year 1965
and paid tolls on displacement tonnage:


Nationality
Argentinian
Brazilian --------
British ----------------
Chilean --------------------------
French --.-
German ---- --------------
Greek-----------------
Indonesian ----- -- ------
Mexican -------- ----------
Peruvian ---------------
Spanish ------ -----
Swedish -- -------------
United States --------------
Do ----------------- -----------.
Venezuelan------------------


Type
Naval -----------
Drydock ----______
Naval ---
--do -
--do-
---do -
--do-
-- do
-- do--------
-- do--------
-- do --------
---do -------
Dredge
Barge ----------
Naval------


Displace-
Number of ment
transits tonnage
1 3,051
1 800
11 45,686
3 7,272
15 76,405
1 5,708
1 1,825
1 898
6 9,756
6 27,167
2 4,050
1 4.120
1 2,067
1 2,830
6 16,570
57 208,205 S


Tolls
$1,526
400
22,843
3,636
38,202
2,854
912
449
4,878
13,584
2,025
2,060
1,033
1,415
8,285
104,102


Registered
Gross

301,040
13,852
12,828,431
18,042
878,699
851,515
140,315
1,044,722
48,167
2,186,036
133,425
209,965
1,126,811
5,472,820
7,583
5,552,428
39,875
8,464
532,353
22,976
151,824
7,434
127,278
514,782
2,072,618
6,552,046
108,045
3,020
242,954
12,372,983
138,983
3,554,173
149,880
14,100,471
2,931,317
770,615
799,510
40,702
3,580,852
155,72 L
15,557,083
409,663
35,108
129,542

95,924,123
89,829,766
83,832,893


Tolls
$1,526
217,750
9,323
8,291,824
11,689
606,425
577,133
92,195
844,112
30,954
1,664,459
105,615
149,251
800,476
4,614,242
4,854
3,682,461
25,921
4,511
274,416
14,616
101,041
6,536
79,398
361,870
1,360,631
4,377,156
68,499
1,542
157,977
8,235,514
95,405
2,336,989
135,593
9,588,919
1,912,766
522.107
494,557
33,896
2,308,224
117,796
10,724,351
258,959
27,590
111,564

$65,442,633
61,098,312
56,368,073


Tons of
Cargo

187,124
9,969
8,846,718
22,582
827,651
823,032
134,075
395,192
52,719
1,789,141
40,370
158,873
709,310
3,520,170
8,965
5,734,249
46,518

152,223
15,904
210,758
2,166
139,266
438,729
1,223,355
4,909,656
72,675
565
246,060
13,233,873
118,465
2,612,450
93,580
13,188,315
2,260,665
774,426
347,839
31,346
2,573,845
66,915
9,986,170
388,336
28,291
150,540

76,573,071
70,550,090
62,247,094


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











56 FINANCIAL REPORT AND STATISTICAL DATA



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FINANCIAL REPORT AND STATISTICAL DATA


Table 15.-Laden and Ballast Traffic by Nationality of Vessel
Fiscal Year 1965


N
Nationality tr
Belgian ------------
Brazilian ----
British -------------
Bulgarian ----------
Chilean-
Chinese (Natl.) ---
Chinese (Rep.) --
Colombian ------
Cuban -_-_-_ ...---
Danish
Ecuadorian ---------
Finnish -- --
French ..- _--
German
Ghanaian -----------
Greek __ ------
Guinean------------
Haitian_ ----- ----- --
Honduran
Icelandic --
Indian ----------
Indonesian -
Irish ----
Israeli -------------
Italian -------------
Japanese
Korean (South) -----
Kuwait -- -
Lebanese -- --- ----
Liberian ------- -_-
Mexican ---------.
Netherlands -.-----.
Nicaraguan
Norwegian ----------
Panamanian --------
Peruvian-
Philippine --------
Spanish -___- ___ ---
Swedish ----------
Swiss ___________-
United States ----_.
Soviet _-_-__
Yugoslavian ------___
Venezuelan ---------
Total, fiscal year-
1965-----
1964----
1963------


umber
of
ansits
27
1
1,136
2
108
103
17
236
5
252
24
26
135
931
1
501
4

154
1
7
1
11
55
176
787
11
1
29
893
29
451
60
1,208
325
144
83
8
347
44
1,505
43
16
7

9,905
9,826
9,098


NoTE.-Above table involves
measurement.


only commercial vessels of 300 net tons or over, Panama Canal


Laden


Ballast


Panama
Canal net
tonnage
152,569
5,508
8,174,640
12,988
648,058
641.259
102,- "39
926,750
34,393
1,678,477
117,069
161,809
779,615
4,323,041
5,393
3,655,061
28,801

214,990
9,022
107,304
6,763
81,001
379,347
1,356,674
4,772,428
59,027
952
153,624
7,535,702
85,682
2,260,179
14s.201)
". 3:2.j 14
1,422,498
549,362
544,148
31,257
2,325,706
88,620
10,777,560
259,964
115,698
16,087

64.1';-.379
60,531,787
55,097,940


Tolls
$137,312
4,957
7,357,176
11,689
583,252
577,133
92,195
834,075
30,954
1,510,629
105,362
145,628
701,654
3,890,737
4,854
3,289,555
25,921

193,491
8,120
96,574
6,087
72,901
341,412
1,221,007
4,295,185
53,124
857
138,262
6,782,132
77,114
2,034,161
133,380
8,372,623
1,280,248
494,426
489,733
28,131
2,093,135
79,758
9,699,804
233,968
104,128
14,478

$57,647,322
54,478,608
49,588,146


Number
of
transits
22
1
192

4

10
31
1
1
22
254
73

1
114
1
1
17
4
16
17
4
1
5
225
7
167

238
193
3
1
1
40
38
171
5
1
4

1,872
1,930
1,875


Panama
Canal net
tonnage
111,720
5,508
1,266,396

27,134

13,940

213,652
351
5,032
84,194
1,000,904

544,435

6,265
112,397
9,022
6,205

9,024
28,414
193,923
113,848
21,354
952
27,383
2,018,586
18,629
420,595
3,073
1,689,300
878,498
19,580
6,700
5,195
295,873
52,830
1,419,581
34,710
10,328
6,704

10,682,235
9,100,824
9,340,175


Tolls

$80,438
3,966
911,805

19,536

10,037

153,829
253
3,623
60,620
720,651

391,993

4,511
80,926
6,496
4,468

6,497
20,458
139,624
81,971
15,375
685
19,716
1,453,382
13,413
302,828
2,212
1,216,296
632,519
14,098
4,824
3,740
213,029
38,038
1,022,098
24,991
7,436
4,827

$7,691,209
6,552,593
6,724,926
















FINANCIAL REPORT AND STATISTICAL DATA


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PANAMA CANAL COMPANY 63

Table 18.-Principal Commodities Shipped Through Canal
[Thousands of long tons]
Fiscal year
ATLANTIC TO PACIFIC 1965 1964 1963 1962
Petroleum and products (excludes asphalt)-- 13,914 10,988 10,828 10,228
Coal and coke-------------------------- 6,471 6,184 5,172 6,817
Phosphate ------------------------------3,123 2,212 1,803 1,878
Corn---------------------------------- 2,245 2,274 1,310 1,105
Metal, scrap---------------------------- 2,117 3,047 1,700 3,215
Soybeans------------------------------- 1,653 1,510 1,446 1,196
Manufactures of iron and steel-------------- 1,546 1,440 1,282 1,690
Ores, various---------------------------- 1,195 1,184 771 718
Chemicals, unclassified-------------------- 796 700 565 638
Sugar---------------------------------- 660 536 774 2,105
Wheat---------------------------------- 632 622 468 705
Paper and paper products------------------ 5373 491 340 359
Sulfur ---------------------------------- 472 471 285 387
Machinery ----------------------------- 444 414 422 404
Fertilizers, unclassified-------------------- 441 433 334 396
Automobiles and accessories -------------- 393 385 309 289
Cotton, raw----------------------------- 355 390 341 397
Ammonium compounds -------------------- 306 310 225 484
Metals, various--------------------------- 296 354 299 399
Rice ----------- ------------------- 260 138 145 119
Flour, wheat ------------------------ 226 207 271 237
Chemicals, petroleum--------------------- 220 222 147 N.A.
Canned food products --------------------- 212 219 194 207
Sorghum-------------------------------- 208 215 N.A. N.A.
Cement---------------------------- ---- 182 186 123 111
Asphalt ------------------------ 161 178 167 194
Soda and sodium compounds -------- 158 139 110 138
Asbestos -------------------------------- 151 130 115 134
Tinplate -------------------------------- 143 171 182 259
Resin ----------------------------------- 131 126 85 109
Glass and glassware ------- ------ 124 133 106 109
Pulpwood ----------------------- 124 154 125 104
Clay, fire and china --------112 99 60 57
Oil, vegetable ------------------ 109 116 116 119
Grains, unclassified ------------106 202 159 23
Rubber, manufactured ---- --- -- 104 104 97 87
Liquors and wines ----------------- ------- 94 88 91 91
Agricultural implements--- --- --- 89 71 58 63
Coffee ------------------ -------- 88 75 91 91
Electrical machinery and apparatus ----82 72 77 78
Potash ---------------------- --------- 77 170 144 124
Food in refrigeration ------------ 73 60 63 51
Tallow-------------------- --- --- 58 54 48 37
Salt ----------------------------53 54 47 47
Groceries, unclassified ----------52 56 40 46
Tobacco ------------------- 52 52 41 50
Textiles ------------ ----51 67 67 66
Slag -------------------- 49 53 49 58
Marble and stone -------------- 43 44 38 N.A.
Bricks and tile -------------------------- 42 26 34 38
Lumber ----------------- 41 50 47 38
Wax, paraffin --------------------------- 41 40 39 35
Creosote -------------------------------- 37 13 25 36
Molasses -------------------------------- 33 9 67 146
Cocoa and cacao beans ---------31 25 23 17
Skins and hides --------------29 25 25 26
Carbon black ---------------------------- 25 27 26 37
Railroad materials ------------ 23 42 30 16
Ammunition and explosives --------20 12 16 N.A.
All other ------------------------------- 1,403 1,032 1,024 1,099
Total, Atlantic to Pacific ------ 42.949 38,901 33.086 37,707







64 FINANCIAL REPORT AND STATISTICAL DATA

Table 18.-Principal Commodities Shipped Through Canal-Continued
[Thousands of long tons]
Fiscal year
PACIFIC TO ATLANTIC 1965 1964 1963 1962
Ores, various ---------------------------- 7,418 6,876 7,036 7,760
Lumber --------------------------------- 4,724 4,204 3,833 3,617
Sugar --------------_ --- 2,460 2,223 2,121 2,476
Iron and steel manufactures ---------------- 2,297 1,134 856 478
Fishmeal -------------------------------- 1,475 1,226 1,042 N.A.
Bananas --------------------------------_ 1,319 1,291 1,083 1,082
Wheat __ ----------------------------------- 1,246 1,352 779 1,092
Metdlb, various (including tinplate) ------- 1,241 1,168 1,107 1,218
Petroleum and products (excludes asphalt)----- 1,220 2,340 1,809 1,748
Food in refrigeration (excluding bananas)----- 974 980 950 822
Canned food products -------------------- 913 950 1,011 937
Nitrate of soda --------------------------- 770 730 697 884
Pulpwood ----------------------- 554 525 496 476
Oilseeds -------------------------------- 401 243 305 330
Coffee ---------------------------------- 392 453 432 399
Sulfur -------- ------------------------- 324 122 28 14
Cotton, raw __ __________----------------------------- 272 307 366 294
Borax ----------------------------_____------ 258 239 188 174
Fruit, fresh--- ------------------------- 238 247 194 269
Wool ----------------------------------- 237 259 281 264
Barley -------------------------------- 227 360 438 1,064
Coal and coke _------------------------ 225 379 89 77
Phosphate ------- ------------------------ 222 159 156 150
Paper and paper products ------------------ 218 204 180 197
Chemicals, unclassified -------------------- 208 203 174 189
Molasses ----------------------_ ___---------- 208 222 157 111
Corn__----------------------------------- 205 --_____ 20
Oil, fish ---_------ ____--- _--- 188 94 177 119
Textiles ------ -__ ____ _____------------ 186 132 130 117
Oil, coconut ----------------------------- 180 159 142 95
Copra ---------------__--__------ __ ---------- 170 173 195 169
Rice ---- ____-__----__--- 143 150 215 241
Chemicals, petroleum------ --------------- 127 102 125 N.A.
Porcelainware ---------_____--________ -----------------115 103 83 78
Fruit, dried ------------------------------ 97 104 95 98
Beans, edible ______----------------------_____------ 76 63 68 64
Rubber, crude _____---------------------------________ 72 83 101 105
Machinery----------------------------- 70 65 57 50
Electrical machinery and apparatus -------- 57 48 35 26
Potash _----------------------------------_______ 57 45 20
Vegetables, dry ------------------------- 57 36 51 38
Wines -------------------___---------------________ 57 59 73 71
Peas, dry ---------------------- ___ 56 67 72 69
Skins and hides_______ ____ ------------ 55 60 49 56
Bricks and tile ---------_ ------------------ 54 45 32 27
Infusorial earth --------------------------_________ 54 55 46 43
Grains, unclassified ------------------------______ ____ 52 91 140 72
Oats -------------_____ ________----- 50 174 148 8
Tallow .. ---------------------------------___ __ 44 51 24 44
Seeds, excluding oilseeds ------------------- 43 51 48 33
Cocoa ------ -------------- 32 30 34 27
Glass and glassware ----------------------- 31 24 22 19
Rubber, manufactured------------------ 28 30 39 34
Flour, wheat ----------------------------- 27 41 82 59
nil, whale -------------------- 27 45 34 27
Floor coverings -------------------------- 26 16 18 14
Automobiles and accessories ---------------- 25 18 15 17
Oil, vegetable, miscellaneous --------------- 24 34 34 120
Groceries, unclassified ---------------------_ 23 30 25 42
Hemp. ------------- ----------- 22 22 20 19
Motorcycles and bicycles ------------------ 20 8 4
All other -----------------------------_ 1,033 945 900 1,669
Total, Pacific to Atlantic ---- _--------- 33,624 31,649 29,161 29,817













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72 FINANCIAL REPORT AND STATISTICAL DATA

Table 21.-Cargo Shipments by Trade Routes-Atlantic to Pacific
[Thousands of long tons]
Fiscal yIear
EAST COAST UNITED STATES TO- 1965 1964 1963 1962
West coast United States -- ------- 3,021 2,077 1,447 1,750
West coast Canada --------------- 36 8 7 9
West coast Central America/Mexico--- 306 284 187 142
Balboa, C.Z ------------------- 51 46 25 22
West coast South America ----------- 1,655 1,612 1,398 1,557
Chile ---------------------- 773 665 702 733
Colombia ------------------- 171 235 196 254
Ecuador --------------------- 171 179 85 75
Peru ----------------------- 511 518 411 490
Other-------------------------- 29 15 4 5
Hawaiian Islands -----------------160 192 207 218
Oceania ---------------------- 1,714 1,069 771 741
Australia ------- ---------- 1,257 835 603 521
New Zealand -------------- 428 215 154 199
Other-------------------------- 29 19 14 21
Asia --------------------- 17,612 17,802 13,529 16,397
British East Indies ---------- 34 52 44 39
China ---------- ---------- 25 --- 10
Formosa ------- --------------- 611 381 314 365
Hong Kong ----- ---------- 184 183 123 143
India -------------------- 55 47 19 5
Indochina ----------------- 416 384 207 242
Indonesia ----------------------- 49 121 239 206
Japan -------------------------14,644 14,979 11,483 13,901
Pakistan ------------------ 52 66 24 10
Philippine Islands --------- 432 482 371 512
South Korea ---------------- 805 822 533 753
Thailand ------------------------ 96 108 68 65
Other ---------------- 209 177 104 146
Total ----------------------- 24,555 23,090 17,571 20,836
EAST COAST CANADA TO-
West coast United States ------37 18 121 12
West coast Canada --------------22 13 18 16
West coast Central America/Mexico-- 21 29 12 17
Balboa, C.Z -------------------- -------- ---- 10
West coast South America -------------- 37 34 44 33
Oceania -- --- ---------------- 260 187 193 183
Australia -------------------- 230 158 163 151
New Zealand -------------------- 29 29 30 32
Other ------------------------- 1 -- ------
Asia --------------------------- 592 621 324 689
China ------------------------------------- ---- 89
Hong Kong --------------- 24 26 11 13
Japan ---------------- 495 544 277 555
Philippine Islands ---------------- 21 30 13 13
U.S.S.R --------------------- 19 4
Other --------------------- 33 17 23 19
Total------------------------- 969 902 712 960
EAST COAST CENTRAL AMEIcA/MEXIco TO-
West coast United States -----------16 4 33
West coast Central America/Mexico--- 34 27 29 23
West coast South America ---------- 24 12 6 5
Oceania --------------------------- 88 111 83 79
Australia ---- -------------- 57 78 51 46
New Zealand ------------------ 31 33 32 28
Other-------------------------- 5------






PANAMA CANAL COMPANY 73

Table 21.-Cargo Shipments by Trade Routes-Atlantic to Pacific-Continued
[Thousands of long tons]
Fiscal yewar
EAST COAST CENTRAL AMERICA/MEXICO TO- 1965 1964 1963 1962
Continued
Asia -------------------------------- 85 38 30 50
Japan ------------------------- 63 30 25 36
Formosa ------------------22
Other -------------------------- 8 5 14
TotaL ------------------247 188 152 190
EAST COAST SouTH AMEBICA TO-
West coast United States -------- 2,684 2,177 2,812 2,323
West coast Canada -------------------- 110 56 53 45
West coast Central America/Mexico-- 979 809 472 241
West coast South America-------------- 1,941 1,150 1,227 1,272
Chile -------------------------- 829 388 505 565
Colombia ------------------212 172 23 146
Ecuador ------------------------ 340 280 177 142
Peru --------------540 310 522 419
Other ------------------- 20 --- __--_ ----
Balboa, C.Z -----------------294 252 219 193
Hawaiian Islands ------------ 143 63 89 56
Oceania ---------------------206 325 234 260
Australia 119 153 100 140
New Zealand 84 172 134 119
Other -------------------------- 3 ------------1
Asia------------------------------- 1,480 1,301 1,222 719
Japan---------------- 1,464 1,259 1,199 705
South Korea--------- ------ ------ 10 1
Other --------------------------- 6 32 23 13
Total ------------------------ 7,837 6,133 6,328 5,109
CIUSTOBAL, C.Z., TO-
West coast United States--------------- 17 50 48 33
West coast Central America/Mexico--- 48 52 18 3
West coast South America------------ --- 3
Balboa, C.Z ------------------------- 223 263 183
Asia (Japan)------------------ 28 7
Other territories ----------- ------------- 3 13
TotaL -------- 316 375 252 49
WEST INDIES TO-
West coast United States --------- 1,615 1,147 1,017 1,669
West coast Canada ---------- 425 301 272 250
West coast Central America/Mexico-- 292 265 589 586
Balboa, C.Z ------------------------- 221 208 190 364
West coast South America -------------- 952 1,016 997 1,056
Chile -------------- 596 733 778 825
Colombia -------------9 1 1 3
Ecuador -----------------45 9 41 35
Peru --------------------------- 263 272 176 186
Other -------------------------- 39 1 1 7
Hawaiian Islands --------142 177 103 89
Oceania ---------------------------- 194 269 272 334
Australia------------------------ 72 96 103 101
French Oceania ----- ----1 2 1 1
New Zealand ----------- 103 171 168 214
Other-------------------------- 18 --...._ 18

11351--11






74 FINANCIAL REPORT AND STATISTICAL DATA

Table 21.-Cargo Shipments by Trade Routes-Atlantic to Pacific-Continued
[Thousands of long tons]
Fiscal year
WEST INDIES TO-Continued 1965 1964 1963 1962
Asia ------- -------------------- 1,376 1,164 1,014 2,363
British East Indies --------- 10 16 11 --
China ---------------- 123 212 335 779
Hong Kong -------------- 4 3 9 2
Indochina ----------------------------------- 4 ----
Indonesia ------------- 6 18 7 14
Japan -------------------------- 1,122 860 570 1,152
Philippine Islands ---------- 13 15 20 1
South Korea --------------------------- 5 ---- 70
U.S.S.R__------------------ ------- 98 22 57 344
Other------------------------- 13 1 1
Total------------------------- 5,217 4,547 4,454 6,711
EUROPE TO-
West coast United States --------- 882 853 769 850
West coast Canada ------------------- 260 229 179 196
West coast Central America/Mexico ..- 376 359 317 299
Balboa, C.Z --------------13
West coast South America ---------967 976 1,128 1,170
Chile --------------------------- 299 274 407 400
Colombia ----------- 121 142 157 181
Ecuador ----------109 109 105 78
Peru --------------------------- 394 413 440 480
Other ---------------- -44 38 19 31
Hawaiian Islands --------------------- 12 17 28 23
Oceania --------------------------- 903 879 826 926
Australia ------------------------ 26 27 49 44
British Oceania ------------------ 33 21 18 18
French Oceania ----------- 225 157 103 138
New Zealand ----------577 647 625 654
Other -------------------------- 42 27 31 72
Asia.-------------------------------- 88 109 116 138
Formosa -----------1 2 1 4
Japan -------------------------- 73 98 110 113
South Korea ------------------ --------------- 1 4
U.S.S.R------------------------- 4
Other -------------------------- 10 9 4 17
Other territories ---------------------11 1
Total------------------------ ----3,499 3,422 3,364 3,615
AFRICA TO-
West coast United States -------- 180 151 157 134
West coast Canada ------------ 12 19 7 9
West coast Central America/Mexico --------34 ------------
West coast South America -------- 53 13 42 11
Oceania ---------------------------- 34 14 1 3
Asia ------------- 17 6 33 41
Total ----------------------------- 296 237 240 198

ASIA (MIDDLE EAST) TO-
West coast United States --------------- 12 6 6 34
Asia ------------------------------ 1 1 7
Other territories ------------------ ----- ----------- 5
Total ----------------------------- 13 7 13 39
Total cargo, Atlantic to Pacific-------- 42,949 38,901 33,086 37,707







PANAMA CANAL COMPANY

Table 22.-Cargo Shipments by Trade Routes-Pacific to Atlantic


[Thousands of long tons]


Fiscal year


WEST COAST UNITED STATES TO-
East coast United States------------
East coast Canada------- -----
East coast Central America/Mexico ------
Cristobal, C.Z --------------------
East coast South America-----------
Argentina -------------------
Brazil--- ------------------
Colombia----- -----------
Uruguay------------------
Venezuela------------- --
Other -----------------------
West Indies----------------------
British West Indies -------
Cuba --- --------------
Haiti-Dominican Republic-----
Netherlands West Indies-------
Puerto Rico---------------
Other-----------------------
Europe---------------
Belgium---------------------
British Isles-----------
Denmark ------------
Finland------------------
France---------- -------
Greece ------- -------
Irish Republic ----------
Italy-----------------------
Netherlands
Norway- ... .
Poland
Spain-Portugal-- -----
Sweden ------------
West Germany
Yugoslavia -
Other-----------
Asia (Middle East)-
India. ------------
Israel ------
Lebanon ------------
Syria -------------
Other
Africa- ------
Kenya------
Egypt -- --------
Mozambique -
South Africa-
Tunisia- --- -------
Other
Total
WEST COAST CANADA TO-
East coast United States-
East coast Canada -----------
Cristobal, C.Z----------
East coast South America
Argentina -------------------
Brazil----- -----------------


1965
2,177
12
2
6
155
21
24
6
1
102
1
295
33
20
5
236
1
2,411
108
352
41
15
197
35
11
340
725
29
15
90
63
311
10
69
18
4
8
5
1

97
7
4
13
56
10
7
5,173

1,184
9
1
340
8
44


1964
3,284
38
4
7
179
20
18
17
122
2
253
33
1
9
3
207

2,628
188
453
38
16
191
28
12
345
786
26
91
52
294
7
101
17
13
3
1
108
7
6
9
40
46
6,518

1,255
10
1
194
4
6


1963 1962


2,818
28
4
10
127
11
19
14
1
82

268
31
7
5
221
4
2,404
180
410
31
19
182
13
8
320
550
54
40
16
65
394
9
113
20
14
3
1
2
73
3
14
7
35
14
5,752

1,003
23
2
191
5
3


2,961
31
6
8
122
16
24
17
1
61
3
219
24
4
5
183
3
2,557
132
381
36
16
146
49
12
196
631
32
102
88
56
594
5
81
91
7
24
44
16
257
4
3
10
26
33
181
6,252

1,098
26
2
126
5
6


. i







76 FINANCIAL REPORT AND STATISTICAL DATA

Table 22.-Cargo Shipments by Trade Routes-Pacific to Atlantic-Continued


[Thousands of long tons]


WEST COAST CANADA To-Continued
East Coast South America-Continued
Colombia -------------------
Venezuela--------------------
Other-- -----------
West Indies----------------------
British West Indies ---------
Cuba -----------------------
Haiti-Dominican Republic -----
Puerto Rico -
Other-----------------------
Europe----------------------- --
Albania----------------------
Belgium -------- -------
British Isles ------------
Bulgaria---------------------
France -
Greece -
Irish Republic
Italy
Netherlands -- -------
Norway
Poland
Spain-Portugal -
U.S.S.R ---------------
West Germany-
Yugoslavia ------------
Other ---------------
Asia (Middle East) -
Israel ----- -----
Lebanon -------
Other -------.--- ----
Africa ----------------
Egypt --------------
Mozambique ----
South Africa---- --------
Tunisia_---------
Other ---- ----------
Total---------------
WEST COAST CENTRAL AMERICA/MEXICO TO-
East coast United States
East coast Canada -----------
East coast Central America/Mexico --
Cristobal, C.Z
East coast South America-
West Indies -----------
Europe--------
Belgium --------
British Isles ------ ---
Denmark ---------------
East Germany
France -- -
Italy
Netherlands
Poland- -------------
Spain-Portugal ---------
West Germany
Other-------- ------
Other territories
Total--------------


Fiscal year


1965 1964


286
2
122
28
91
91
2
3,329

109
2,075
79
23
40
210
292
1
82
14
53
215
13
123
37
27
10

269

39
212
12
6
5,291

639
88
8
27
11
912
26
32
25
25
36
57
509
22
159
21

1,685


180
4
103
23
8
67
5
3,333
12
155
1,849
90
63
13
30
113
413
1
136
43
25
270
3
117
28
27
1
199
9
25
127
38
5,123

540
61
11
36
14
407
25
16
22
20
19
34
71
13
147
40

1,069


1963 1962


1
181
1
127
24

10
86
7
2,399

164
1,545
52
2
26
118
242
3
20
11
112
3
101
15
14
1
307

39
224
44
4,067

438
57
10
24
11
368
20
15
24
17
43
68
6
121
54
8
916


5
105
5
142
22
17
25
75
3
2,296

131
1,452
40
1
10
124
144
9
21
26
277
61
21
19
2
176

31
101
44
3,887

517
2
39
8
19
11
296
13
15
30
8
12
59
16
119
24
1
893


- A .







PANAMA CANAL COMPANY 77

Table 22.-Cargo Shipments by Trade Routes-Pacific to Atlantic-Continued
[Thousands of long tons]
Fiscal year
WEST COAST SOUTH AMERICA TO- 1965 1964 1963 1962
East coast United States---------- 6,169 5,419 5,669 7,219
East coast Canada -------------------- 103 212 268 256
East coast Central America/Mexico--- 43 38 24 10
Cristobal, C.Z ------------------------ 6 4 6 6
East coast South America -------- 42 32 37 45
Brazil--------- 9--------------- -------------- 9 16
Colombia -----------18 8 8 6
Venezuela ------------- 23 22 19 20
Other --------------------------1 2 1 3
West Indies ------------------------ 33 33 45 73
British West Indies --------------- 1 7
Cuba--------------------------- 5 14 47
Netherlands West Indies -------1 1 2------
Puerto Rico ----------------------- 27 32 28 18
Other ------------------------------------ 1
Europe----------------------------- 6,186 6,097 5,803 4,927
Belgium -------------- 542 539 324 381
British Isles 517 825 988 770
Denmark ---------------------- 59 54 48 33
East Germany ----- ----- 24 3 14
France ----------------463 441 430 192
Greece --------------- 6 21 1 3
INetaly-----------.. 359 686 835 363
Netherlands ---- ----- 1,730 1,481 1,265 1,493
Norway ----------------- 6 11 21 20
Poland_ ---------- ------ 75 74 47 22
Rumania ------------------------ 6 5
Spain-Portuga -------------- 207 197 165 157
Sweden --------.-.. 102 111 111 87
West Germany- 1,722 1,312 1,294 1,225
Yugoslavia ------- 68 49 35 19
Other ------------------------ 300 288 225 162
Asia (Middle East) ---- --------28 15 9 46
India --------------- 17 9-----
Israel---- 2 ---- ------
Lebanon ------ -------- 8 5 9 46
Other--------------- 1 1 ____________
Africa--------------------------- --- 10 18_____
Total ---------------------------- 12610 11,860 11,879 12,582
BALBOA, C.Z., TO-
East coast United States- -----25 11 12 7
East coast South America------- 3 8 3
Europe ---------------------------------- 2 1
Other territories --------------------- ---- --- 1 1
Total --------------------------- 28 21 16 9
HAWAIIAN ISLANDS TO-
East coast United States ----------------_ 465 536 438 633
East coast Canada ----------4 9 9 3
Europe ---------------------------- 27 37 30 24
British Isles--------------------- ---- 2
Netherlands --------------------- 2 10 7 7
Spain-Portugal------------------- ----- 5---- ---
West Germany------------ 7 11 8 5
Other -------------------------- 18 11 13 12
Other territories -----------------.. 3 3 2 3
Total----------------------------- 499 585 479 663







78 FINANCIAL REPORT AND STATISTICAL DATA

Table 22.-Cargo Shipments by Trade Routes-Pacific to Atlantic-Continued
[Thousands of long tons]
Fiscal year
OCEANIA TO- 1965 1964 1963 1962
East coast United States --- ------ 721 781 729 615
East coast Canada -------------- 201 175 215 189
East coast Central America/Mexico -- 15 10 7 7
Cristobal, C.Z --------------------- 4 2 2 2
East coast South America -------------- 12 22 22 12
West Indies ------------------------ 72 60 46 40
British West Indies --------- 67 59 40 36
Netherlands West Indies --------2 1 2 1
Other ------------------------ 3 ---- 4 3
Europe ----------------------- 1,476 1,279 1,206 1,200
Belgium ------ ------------ 27 21 27 25
British Isles ---------------------- 1,195 1,031 942 984
France ------------------------- 80 81 97 77
Netherlands --------------------- 26 23 27 24
West Germany -------51 42 48 31
Other -------------------------- 97 81 65 59
Other territories ---------------------- ------ ---- ------1
Total --------------------------- 2,501 2,329 2,227 2,066

AsIA TO-
East coast United States ----------4,928 3,551 3,255 2,956
East coast Canada -------- 147 92 75 77
East coast Central America/Mexico--- 19 5 6 5
Cristobal, C.Z ------------------------- 35 38 39 38
East coast South America -------- 369 222 237 198
Argentina -------------- 41 27 28 54
Brazil ---------------------- 38 37 75 38
Colombia ----------------------- 62 42 38 27
Netherlands Guiana--------- 4 8
Venezuela --------------- 202 99 81 78
Other ---- ---------------- 22 9 15 1
West Indies ------------------210 155 158 138
British West Indies -------- 25 23 20 16
Cuba --------------------------- 122 82 102 96
Haiti-Dominican Republic -------16 16 13 6
Puerto Rico ------------ 38 26 16 16
Other --------------------------9 8 7 4
Europe ----------------------127 80 55 53
Belgium ------------------8 7 6 5
British Isles ------------- 28 14 19 14
Netherlands --------------------- 60 33 17 17
West Germany ------------ 13 16 12 14
Other ---------------- -18 10 1 3
Africa -------------------2 1
Total ------------5,837 4,144 3,825 3,465
Total cargo, Pacific to Atlantic -------- 33,624 31,649 29,161 29,817







PANAMA CANAL COMPANY 79

Table 23.-Important Commodity Shipments Over Principal Trade Routes
Atlantic to Pacific
[Thousands of long tons]
Fiscal year
EAST COAST UNITED STATES TO WEST COAST ,14 1
UNITED STATES: 1965 1964 1963 1962
Bauxite ----------------------- 217 230 42 ---
Canned food products ---------1 4 6 5
Cement ---------------- 27 42 14
Chemicals:
Petroleum ---- --------- 127 99 76 N.A.
Unclassified ------------------- 137 114 103 185
Confectionery---------------------------- 1------
Electrical machinery and apparatus---- 2 2 3 4
Floor coverings ----------------- ----- ----- 1 1
Groceries, unclassified ----------------- 5 5 2 2
Iron and steel manufactures --------609 476 442 660
Liquors ------------------------ 1 1 3 9
Machinery ------------------------- 1 2 3 3
Metals, miscellaneous ------------------ 26 4 2 20
Paints and varnishes_------------ ---- 1 1 3 4
Paper and paper products -------------- 1 2 1 6
Petroleum and products:
Crude oil ----------------------- ------------ ----- 47
Fuel-diesel oi ------------------- 61 39 --- 14
Gasoline ----------------------- 830 522 326 374
Kerosene ----------------------- 295 33 --- 37
Lubricating oil------------------- 272 219 266 217
Other and unclassified ------------ 86 29 22 12
Pharmaceutical products ---------------2 2 2 5
Phosphate ---------------- 74 38 1
Soap and soap products ---------------5 1 3 ------
Soda and sodium compounds ----------- 48 18 13 39
Sulfur ----------------------- ------------ ----- 40
Vegetable oil, miscellaneous ------------- 1 8 28 18
Al other and unclassified -------------- 192 185 86 47
Total----------------------------- 3,021 2,077 1,447 1,750
EAST COAST UNITED STATES TO WEST COAST
CANADA:
Canned fruit------------------------- ------ 1 2 3
Phosphate --------------------------- 28 -- ---- ---
Rice ------------------------------- 5 7 6 6
Soda and sodium compounds ------ 3-----------
All other and unclassified -------- ------ ------ ----- ----
Total ----------------------------- 36 8 _8 9
EAST COAST UNITED STATES TO WEST COAST
CENTRAL AMERICA/MEXICO:
Ammonium compounds ---------------- 10 15 6------
Chemicals, unclassified ---------------- 14 13 15 13
Canned food products --------------- 15 13 8 1
Corn------------------------------- 16 18 11 16
Fertilizers, unclassified -------- 18 25 21 10
Iron and steel manufactures -------13 6 8 2
Lime ---------------------------- 1 --- 1
Machinery ---------------------- 7 7 6 5
Paper and paper products -------------- 55 38 19 5
Petroleum and products:
Lubricating oil ------------------- 11 10 6 6
Other and unclassified------- 5 4 5 5
Phosphate -------------------------56 26 8 4
Potash----------------------------- 5 16 2 1
Rice -------------------6 11 6 3
Wheat ------------------- ------ 11 20 5 35
All other and unclassified ---- --_- __ 63 62 60 37
Total ------------------ ----------- 306 284 187 143







80 FINANCIAL REPORT AND STATISTICAL DATA

Table 23.-Important Commodity Shipments Over Principal Trade Routes
Atlantic to Pacific-Continued


[Thousands of long tons]


Fiscal year


EAST COAST UNITED STATES TO WEST COAST
SouTH AMERICA:
Agricultural implements----- ------
Ammonium compounds-------------
Asphalt-----------------------
Automobiles and accessories-------
Bricks and tile ----------------
Canned food products-----------
Carbon black--------------------
Chemicals, unclassified -- -------
Clay, fire and china----------------
Coal and coke--------- --------
Corn---------------------------
Cotton, raw-------------------
Electrical machinery and apparatus ---
Fertilizers, unclassified ---------
Flour, wheat -------------
Grains, unclassified-----------------
Groceries, unclassified--------------
Iron and steel manufactures -
Machinery-----------------------
Marble and stone ---------------
Metals:
Miscellaneous ---------------
Scrap-----------------------
Paper and paper products----- ---
Petroleum and products:
Gasoline----------- ----
Lubricating oil----------------
Other and unclassified -
Phosphate---------------------
Potash----------------- ----
Resin ---------------------------
Rice---------------------------
Rubber, manufactured -
Soda and sodium compounds
Sulfur--------------------------
Tallow--------------------------
Tinplate------------------------
Vegetable oil, miscellaneous------
Wax, paraffin------------
Wheat--------------------------
Woodpulp-----------------------
All other and unclassified-
Total------------
EAST COAST UNITED STATES TO HAWAIIAN
ISLANDS:
Automobiles and accessories-
Canned food products ----------
Chemicals, unclassified
Corn--------------- ------------
Electrical machinery and apparatus ----
Grains, unclassified------ ---
Iron and steel manufactures -
Liquors --- ----------
Machinery-----------------------
Metals, miscellaneous .----
Paper and paper products -------
Phosphate-----------


1965 1964 1963 1962


20
17
9
47
15
46
9
48
8
176
16
5
14
12
89
12
4
77
76
23
6
41
56

60
6
116
15
10
46
15
10
29
19
10
40
16
293
10
134
1,655


3
3
2
8
2
25
3
5
2
1
22


12
19
8
44
10
49
8
45
5
164
41
9
13
26
98
11
10
69
75
25
7
18
73
2
56
5
104
8
9
43
13
16
16
22
17
37
15
276
16
118
1,612


3
4
4
14
5
3
28
3
7
1
2
22


9
5
15
44
14
30
6
45
5
143
13
6
9
5
84
1
5
65
59
22
10
14

1
53
3
108
8
6
9
14
16
18
19
15
25
19
369
17
89
1,398


5
5
3
32
4
27
3
6
1
2
16


15
15
10
49
10
30
5
39
6
159
62
6
10
7
78
8
7
92
66
N.A.
11
12

1
70
4
66
1
8
11
14
13
11
21
19
41
16
419
20
125
1,557


2
4
3
32
4
2
33
3
9
1
3
16







PANAMA CANAL COMPANY


Table 23.-Important Commodity Shipments Over Principal Trade Routes
Atlantic to Pacific-Continued


[Thousands of long tons]
Fiscal year


EAST COAST UNrTED STATES TO HAWAIIAN
ISLANDS-Continued
Soybeans ------------------------
Textiles------------------------
Tinplate--------------------
All other and unclassified --
Total----------------------
EAST COAST UNITED STATES TO OCEANIA:
Agricultural implements----- --
Ammonium and compounds-------
Automobiles and accessories ------
Bauxite----------------
Bricks and tile------------
Carbon black ------------
Chemicals:
Petroleum --------------
Unclassified -
Clay, fire and china -
Coke ---
Cotton, raw --------------
Electrical machinery and apparatus ---
Fertilizers, unclassified ------
Glass and glassware-- ------
Iron and steel manufactures
Machinery--- -- ---
Metals, miscellaneous -
Ores, miscellaneous----------
Paper and paper products --------
Petroleum and products:
Gasoline ----------
Kerosene -
Lubricating oil
Other and unclassified-
Phosphate -
Potash -----------------
Resin--------
Rice_ ---
Rubber, manufactured-
Soda and sodium compounds ---
Soybeans -
Sulfur -----
Tobacco ------
Vegetable oil, miscellaneous ---- ----
Wax, paraffin -------_._
Woodpulp_ --------- --
All other and unclassified
Total-------------
EAST COAST UNITED STATES TO AsIA:
Agricultural implements -------
Ammonium compounds --------------
Ammunition and explosives -------
Asphalt --- ------------
Automobiles and accessories-
Barley-
Beans, edible----------
Canned food products--- ------
Carbon black--- -----


1965

1
1
36
46
160

32
5
42
41
6
4

7
61
30
3
18
5
12
8
26
63
14
7
23


83
11
720
20
18
7
13
8
9
258
11
11
6
7
125
1,714

7
77
9
15
47
10
11
90
10


2
3
36
54
191

25
6
46
80
2
4

7
34
30
24
4
1
8
28
50
8
6
17


C


12
2
49
40
207

16
1
23
48
2
5
14
31
20
11
15
6
3
6
25
49
11
5
14


34 4
2
108 117
10 7
47 13
18 16
14 13
7 6
16 15
5 2
8 9
297 174
12 12
6 5
6 5
7 7
94 59
)69 771


7
112
2
19
54
6
95
14


5
38
3
7
34
11ii
68
14


11351--12


1964 1963 1962


7
2
42
55
218

13
2
19

1
6
N.A.
47
11

16
4
1
4
12
37
14
11

1
128
10
2
23
13
3
17
1
5
241
14
5
1
4
76
742

3
267
N.A.
28
37

6
75
24







82 FINANCIAL REPORT AND STATISTICAL DATA

Table 23.-Important Commodity Shipments Over Principal Trade Routes
Atlantic to Pacific-Continued


[Thousands of long tons]
EAST COAST UNITED STATES TO ASIA-Con-
tinued: 1
Cement------------------------
Chemicals:
Petroleum-------------------
Unclassified-------------------
Clay, fire and china ----------------
Coal and coke-----------------------
Cocoa and cacao beans --------
Corn---------------------------
Cotton, raw------------
Electrical machinery and apparatus ---
Fertilizers, unclassified
Fishmeal------------------------
Flour, wheat --------------
Glass and glassware --------
Groceries, unclassified ---------
Grains, unclassified
Iron and steel manufactures-
Lumber
Machinery
Metals:
Miscellaneous ----- ------
Scrap ----------------------- 1
Ores, miscellaneous -
Paper and paper products --------
Petroleum and products:
Gasoline -
Kerosene -
Lubricating oil -----------
Other and unclassified-
Pharmaceutical products
Phosphate----------------- 1
Potash ------- ----------
Rags and waste -------------
Railroad materials -
Refrigerated food products --------
Rice- -------------------
Resin -- ----
Rubber, manufactured -
Skins and hides--------------------
Soda and sodium compounds ------
Sorghum ------------
Soybeans ------------------------ 1
Sugar ----------
Sulfur -----------------
Tallow --
Textiles -- -------------
Tinplate -------- ----___
Tobacco -------------
Vegetable oil, miscellaneous ------ -
Wheat_
Woodpulp -----------
All other and unclassified-
Total ------------------------- 17
EAST COAST UNITED STATES TO BALBOA, C.Z.:
Corn ---------------
Wheat
All other and unclassified _-
Total


Fiscal year
965 1964 1963 1962
7 8 3 2


78
283
54
3,280
9
J,189
316
15
79
5
107
6
9
71
134
9
92
39
,910
7
66
31
1
381
44
6
,997
7
7
1
19
180
83
53
19
29
208
,515
67
33
19
64
37
41
304
60
365
,612

2
23
26
51


101
261
49
6,004
6
2,162
348
15
85
5
83
5
13
167
151
22
93
60
2,760
55
55
14
363
49
4
1,893
16
9
13
13
68
87
51
16
22
N.A.
1,408
29
27
30
99
34
43
294
77
326
17,802


23
23
46


53
158
28
5,002
5
1,253
302
12
16
142
4
7
145
141
14
127
85
1,603
32
38
15
1
324
17
4
1,515
14
13
2
7
117
58
51
19
25
N.A.
1,399
6
26
24
75
25
31
83
60
268
13,529


7
18
25


N.A.
108
29
6,553
3
982
359
11
95
N.A.
108
4
7
4
147
12
124
139
2,853
38
57
30
309
41
5
1,655
12
N.A.
1
8
94
77
42
18
24
N.A.
1,182
1
11
11
20
127
33
38
149
53
381
16,397

1
21
22






PANAMA CANAL COMPANY


Table 23.-Important Commodity Shipments Over Principal Trade Routes
Atlantic to Pacific-Continued


[Thousands of long tons]
EAST COAST CANADA TO WEST COAST UNITED
STATES: 1
Asbestos-------------------------
Petroleum and products: Gasoline-
Paper and paper products --------------
Ores, miscellaneous ----------
All other and unclassified ---------
Total------------------
EAST COAST CANADA TO WEST COAST CANADA:
Bauxite-------------------------
Chemicals, unclassified ---------
All other and unclassified
Total------------------------
EAST COAST CANADA TO WEST COAST SOUTH
AMERICA:
Asbestos --------------- ------
Chemicals, unclassified----------------
Iron and steel manufactures ------
Metals, miscellaneous---------------
Paper and paper products --------
Woodpulp-----------------------
All other and unclassified
Total-----------------------
EAST COAST CANADA TO WEST COAST CENTRAL
AMERICA/MEXICO:
Iron and steel manufactures -
Petroleum and products: Gasoline-------
Railroad materials ----------
Total -----------
EAST COAST CANADA TO OCEANIA:
Asbestos -
Automobiles and accessories-
Chemicals, unclassified
Iron and steel manufactures-
Machinery ---------------
Metals, miscellaneous-
Paper and paper products --------
Tinplate ----------------
Woodpulp ------------
All other and unclassified-
Total
EAST COAST CANADA TO ASIA:
Asbestos---- --------- ---
Chemicals:
Petroleum -----------
Unclassified -
Coal------- -------------
Corn --------------
Grains, unclassified
Metals:
Miscellaneous
Scrap -------------
Ores, miscellaneous ----------
Paper and paper products -------
Resin------------------------------
Rubber, manufactured -


1
1

3

1
2
]

C-
~4


1
3


1
_]


7 3
1 -
1
.8 13
1
36 18

6 ----
4 11
2 2
122 13


9 8
1
1 1
4 3
9 12
1 2
3 7
37 34


9 10
11 19
20 29


23
13
22
10
4
6
114
14
4
50
260


17
13
11
8
7
8
82
2
4
35
187


86 82 69 88


2
5
14
5
18
145
55
66
9
6


24
236
72
36
9
7


Fiscal year
65 1964 1963 1962


111
1
8
1
121

5
4
8
17


9
1
1
6
15
1
11
44




11
11

16
18
8
7
4
26
78
10
5
21
193


2
5
5
12


10
7
17


8
1
2
3
11
1
7
33



17

17

16
7
3
5
3
28
94
14
2
11
183


N.A.
8
14


42
326
25
13
6
2


7
2


10
87
49
16
3
2







84 FINANCIAL REPORT AND STATISTICAL DATA

Table 23.-Important Commodity Shipments Over Principal Trade Routes
Atlantic to Pacific-Continued


[Thousands of long tons]


Fiscal year


EAST COAST CANADA TO ASIA-Continued:
Slag---------------------------
Soybeans------------------------
Wheat --------------------------
Woodpulp--------------
All other and unclassified -
Total------------------
EAST COAST CENTRAL AMERICA/MEXICO TO
WEST COAST UNITED STATES:
Molasses -
Ores, miscellaneous
Petroleum and products:
Fuel-diesel oil ------------
Gasoline
All other and unclassified -
Total -------------------
EAST COAST CENTRAL AMERICA/MEXICO TO
WEST COAST CENTRAL AMERICA/MEXICO:
Iron and steel manufactures -
Petroleum and products:
Fuel-diesel oil-
Gasoline ------
Kerosene ---------
Railroad materials --- --------
Sulfur
All other and unclassified -
Total -

EAST COAST CENTRAL AMERICA/MEXICO TO
OCEANIA:
Sulfur
All other and unclassified
Total-------------
EAST COAST CENTRAL AMERICA/MEXICO TO
ASIA:
Ammonium compounds -
Fertilizers, unclassified ---------
Metals:
Miscellaneous
Scrap -
Ores, miscellaneous -
Petroleum and products: Gasoline ---- -
Phosphate
Sulfur ----------
All other and unclassified-
Total--------- ---------
EAST COAST SOUTH AMERICA TO WEST COAST
UNITED STATES:
Bones and bonemeal -
Canned food products -----
Coffee------------------
Iron and steel manufactures-
Ores:
Bauxite ---- ---------
Manganese ---------


1965
35
121

3
22
592


1964
25
88
4
7
23
621


7
8
1
16


1963
25
20
8
26
324



3




4


1962
24

100

41
689


2
33


1 3


29


16


5 8
3
----__ 3
34 27


88 111

88 111


5
8
3
1
4
7
29


15

3
2
23


80 79
3 --
83 79


-- --- 9
4 __- -----


5


2

8




1

3
1


1 10 15
0 17 9
7 ---------_
7 ----
3
2 -- 1
5 3 5
5 37 30


2
.1

4
5


3
26

41
40


26
8



7
50


5
4
37
8


2
29
2


42 44


I







PANAMA CANAL COMPANY


Table 23.-Important Commodity Shipments Over Principal Trade Routes
Atlantic to Pacific-Continued


[Thousands of long tons]


EAST COAST SOUTH AMERICA TO WEST COAST
UNITED STATEs-Continued:
Petroleum and products:
Crude oil-------------------
Fuel-diesel oil---------------
Gasoline --------------
Kerosene------- ----------
Other and unclassified ------
All other and unclassified------------
Total-------------------------
EAST COAST SOUTH AMERICA TO WEST COAST
CANADA:
Coffee------------------------------
Ore, bauxite-------------------------
Petroleum and products: Fuel-diesel oil-
All other and unclassified --------
Total-------------------------
EAST COAST SOUTH AMERICA TO WEST COAST
CENTRAL AMERICA/MEXICO:
Ammonium compounds ---------
Asphalt----------------
Cement-------------------------
Chemicals:
Petroleum --------------------
Unclassified-------------------
Petroleum and products:
Crude oil -
Fuel-diesel oil-----------------
Gasoline_ -------------
Other and unclassified-
All other and unclassified -
Total -------------
EAST COAST SOUTH AMERICA TO WEST COAST
SOUTH AMERICA:
Ammonium compounds -
Bauxite -.....--------------
Cement ----------------
Fertilizers, unclassified -
Petroleum and products:
Crude oil-------------
Fuel-diesel oil-----------
Gasoline-------------
Kerosene------------
Lubricating oil -----------
Other and unclassified-
Salt-----------------
Wheat__ -----------------
All other and unclassified-
Total-
EAST COAST SOUTH AMERICA TO BALBOA, C.Z.:
Petroleum and products:
Fuel-diesel oil -
Gasoline
Kerosene ------------
Other and unclassified-
All other and unclassified -------
Total--------------


Fiscal year


1965
2,257
121
111
121
12
2,684


1
27
77
5
110


21
27

1
5
789
56
18
59
3
979


8
7
22
20

951
645
159
43
13
34
11
28
1,941


279
1

3
294


1964 1963 1962


1,810
61
70
105
13
8
2,177


5
51


56


3
25
12


2,339
49
216
121
12
2,812


3
47
3
53


3
20
5


3 ----
6 6


599
77
23
55
6
809



6
16
11

743
169
130
32
8
12
12
5
6
1,150


234
14
2
2

252


213
206
15
3
1
472


8
1
2


1,801
348
59
8
9
2,323


4
39
2
45


19
3
N.A.

18
186
14
1

241



5
15


716 642
445 458
31 93
22
-- --- -


11
13

1,227


11
26
1,272


178 160
35 24
4 7
1
1 1
219 192


__







86 FINANCIAL REPORT AND STATISTICAL DATA

Table 23.-Important Commodity Shipments Over Principal Trade Routes
Atlantic to Pacific-Continued


[Thousands of long tons]


EAST COAST SOUTH AMERICA TO OCEANIA:
Chemicals, unclassified ---------
Petroleum and products:
Crude oil ---
Fuel-diesel oil ------------
Gasoline-------------
Kerosene ---------- --
Lubricating oil -----------
All other and unclassified-
Total ---------------
EAST COAST SOUTH AMERICA TO HAWAIIAN
ISLANDS:
Petroleum and products:
Fuel-diesel oil
Lubricating oil -
Kerosene -
All other and unclassified-
Total ------------------
EAST COAST SOUTH AMERICA TO ASIA:
Corn------- -
Cotton, raw----------------
Grains, unclassified -
Metal, iron -
Ores:
Bauxite -
Iron
Manganese
Tin
Petroleum and products:
Crude oil------------
Fuel-diesel oil------------
Gasoline
Lubricating oil------------
Other and unclassified-
Sugar
Wool
All other and unclassified
Total------------
CRISTOBAL, C.Z., TO WEST COAST UNITED
STATES:
Coffee-
Petroleum and products:
Fuel-diesel oil ----------
Gasoline --------------
All other and unclassified
Total -
CRISTOBAL, C.Z., TO WEST COAST CENTRAL
AMERICA/MEXICO:
Petroleum and products:
Fuel-diesel oil ---------
Gasoline
Kerosene -- ---- ---
Other and unclassified-
All other and unclassified-
Total -----_--


1965


9
170
11
13
3




8

134
1
143


14
14
69
36
78
63

346
767
15
28
28
2
20
1,480


12
17 20
270 150
1
31 49
3
325 234




18 89
45 89


63 89 56


38
92
7
6
315
629
51

5
27
1,301


10
106


252
674
60
6
7
24
1,222


1


17


17


16
20
7
5

48


49

50


13
33
5


51


48

48


5
10
3


18


Fiscal year
1964 1963 1962
6


102
20
119
17
2
260



7
49


1
14
1
20

50
156


181
245
13
13
12
8
6
720


33

33


3
3







PANAMA CANAL COMPANY


Table 23.-Important Commodity Shipments Over Principal Trade Routes
Atlantic to Pacific-Continued


[Thousands of long tons]


Fiscal year


CluSTOBAL, C.Z., TO BALBOA, C.Z.:
Petroleum and products:
Fuel-diesel oil-----------------
Gasoline--------------------
Kerosene---------------------
All other and unclassified-
Total---------------------
CRISTOBAL, C.Z., TO ASIA:
Petroleum and products: Fuel-diesel oil-
All other and unclassified-------
Total -----------------------
WEST INDIES TO WEST COAST UNITED STATES:
Coffee------------------------------
Molasses---------------
Ore, bauxite--------------
Petroleum and products:
Crude oil-------------
Fuel-diesel oil -----------
Gasoline--------------
Kerosene -------------
Other and unclassified-
All other and unclassified-
Total---------------
WEST INDIES TO WEST COAST CANADA:
Bauxite
Petroleum and products:
Fuel-diesel oil ----------
Kerosene
All other and unclassified-
Total --------------
WVEST INDIES TO WEST COAST CENTRAL
AMERICA/MEXICO:
Ammonium compounds---------
Chemicals, unclassified -
Petroleum and products:
Crude oil--------------
Fuel-diesel oil----- ------
Gasoline ---.-----------
Kerosene -- -------------
Lubricating oil -----------
Other and unclassified-
All other and unclassified
Total ------------
WEST INDIES TO WEST COAST SOUTH AMERICA:
Asphalt -- --------------
Fertilizers, unclassified
Petroleum and products:
Crude oil------------
Fuel-diesel oil
Gasoline -----------
Kerosene ---------- __
Lubricating oil-
Other and unclassified
Salt -. -----------
Sugar -_
All other and unclassified-
Total-----------------


1965 1964 1963 1962


180 232
36 24
5 6
1 1
222 263

28 7

28 7


8
401J

73
676
622
160
7
29
1,615

337
76
8
4
425


1i


43
4 i5
442
130
18


11
,147

301


301


97
54
32

183





5


30
621
295
60


6 11
1,017 1,669

252 220


20


272


16
3 -


43
124
63
31
4
6
292


11
75
90
53
15
2
265


266
218
87
3
12
3
589


2 18 28
5 --- ---


626
181
72
10
14
3
6
951


891
63
34
10
1
3
5
2
1,016


704
91
52
11
14
2
101
4
997


5
4
2
2
13


198
980
376
71


18
12
250


13
261
205
88
6
8
5
586


17
672
119
64
11
1
1
141
2
1,056







88 FINANCIAL REPORT AND STATISTICAL DATA

Table 23.-Important Commodity Shipments Over Principal Trade Routes
Atlantic to Pacific-Continued


[Thousands of long tons]


WEST INDIES TO BALBOA, C.Z.:
Petroleum and products:
Fuel-diesel oil------------------
Gasoline---- -------------
Kerosene----------------------
Other and unclassified-
All other and unclassified -------
Total------------------------
WEST INDIES TO HAWAIIAN ISLANDS:
Petroleum and products:
Fuel-diesel oil------------
Gasoline-----------------------
Kerosene---------------------
Total --
WEST INDIES TO OCEANIA:
Asphalt-----------------------
Petroleum and products:
Fuel-diesel oil------------
Gasoline ------------
Kerosene--------------
Lubricating oil -----------
Other and unclassified
Sugar-------------------------
All other and unclassified -
Total
WEST INDIES TO ASIA:
Ammonium compounds --------
Fish, refrigerated -
Machinery---- -----------
Metals:
Iron
Scrap-
Molasses
Ores:
Bauxite
Copper
Petroleum and products:
Crude oil
Fuel-diesel oil
Gasoline
Kerosene
Lubricating oil --
Sugar --___ --------------
All other and unclassified
Total _-___ ------
EUROPE TO WEST COAST UNITED STATES:
Ammonium compounds ---...
Asbestos .__.__.
Automobiles and accessories-
Beer ..____ __ __
Canned food products -
Chemicals, unclassified ----- ---
Creosote
Electrical machinery and apparatus ---
Fertilizers, unclassified _____
Food in refrigeration ---.- ____


Fiscal year


1965 1964 1963 1962


188
29
3
1

221



2
140
142


168
31
3
3
2
207


16
161
177


211
109
21
23

364


17
72
89


151
29

10
190


11


92
103


31 68 64 66


45
32
11
32
17
18
8
194


42
75
15
41
23
5
269


9
125
18
27
2
22
5
272


60
123
31
40

10
4
334


19
8 8
1


28
610
3
44
607
2
1,376

20
8
119
9
11
29
24
7
58
9


454
24
51
45
487
4
1,164

21
9
104
8
9
32
12
5
65
9


123
10
122
44
602
16
1,014

19
10
89
7
12
26
12
5
62
12


21
108

15
10

197
34
69
23
1,851
7
2,363

26
7
69
5
16
25
29
4
55
5







PANAMA CANAL COMPANY


Table 23.-Important Commodity Shipments Over Principal Trade Routes
Atlantic to Pacific-Continued


[Thousands of long tons]


Fiscal year


EUROPE TO WEST COAST UNITED STATES-
Continued:
Glass and glassware ---------
Groceries, unclassified-------------
Iron and steel manufactures ------
Lumber--------- ------------
Liquors and wines-----------
Machinery ---------------
Marble and stone------- -----
Metals, miscellaneous --------
Nitrate of soda------------------
Paper and paper products -------
Rope and twine------------
Soda and sodium compounds
Woodpulp---------------------__
All other and unclassified ---------
Total -------------------
EUROPE TO WEST COAST CANADA:
Asphalt------------------------
Automobiles and accessories ------
Chemicals, unclassified--------------
Clay, fire and china----------------
Creosote--------- --------
Glass and glassware----------------
Iron and steel manufactures ------
Liquors and wines-----------------
Machinery-----------------------
Metals, miscellaneous ---------
Ore, zinc------------------------
All other and unclassified -------
Total-------------------------
EUROPE TO WEST COAST CENTRAL AMERICA/
MEXICO:
Ammonium compounds -
Automobiles and accessories-------
Canned food products ---------
Cement ----------------
Chemicals, unclassified-- ------
Fertilizers, unclassified---- ---
Glass and glassware -----------
Iron and steel manufactures -
Machinery ---------------
Metals, miscellaneous ----------
Paper and paper products -------
Petroleum and products: Fuel-diesel oil-
Phosphate -------------
Potash -------------
Soda and sodium compounds -
All other and unclassified-
Total ----------
EUROPE TO WEST COAST SOUTH AMERICA:
Agricultural implements --------
Ammonium compounds --------
Ammunition and explosives -
Automobiles and accessories
Barley--------------
Bricks and tile ------------


1965 1964 1963 1962


54
7
111
10
53
31
13
35
10
103
5
2
2
152
882

41
13
6
6
12
13
92
8
10
12
7
39
259


45
7
7
5
24
129
7
61
13
4
9
8
7
3
47
376

11
71
4
20
5
5


57
7
175
14
52
22
13
32
2
82
9
2
4
108
853

37
12
6
5
12
87
7
12
12
39
229


47
7
6
25
21
101
6
45
8
8
9
26
3
5
42
359

9
59
4
19
8
3


40
7
155
11
45
21
12
37
7
60
4
1
2
113
769

29
9
6
3
12
13
44
7
8
3
45
179


54
6
6
16
17
85
4
38
7
7
9
21
1
4
42
317

9
89
8
19
14
4


48
8
228
7
44
18
N.A.
50
66
N.A.
2
8
130
850

25
16
5
7
5
7
65
9
9
4
44
196


55
5
5
15
12
84
4
41
7
9
6
12

5
39
299

14
75
N.A.
24
8
3


11351--13







90 FINANCIAL REPORT AND STATISTICAL DATA

Table 23.-Important Commodity Shipments Over Principal Trade Routes
Atlantic to Pacific-Continued


[Thousands of long tons]


Fiscal year


EUROPE TO WEST COAST SOUTH AMERICA-
Continued:
Canned food products------------
Cement -------------------
Chemicals, unclassified -- -----
Coal------------ -------------
Coke .----------
Electrical machinery and apparatus -----
Fertilizers, unclassified------ ----
Flour, wheat- ------
Glass and glassware -------------
Grains, unclassified ----------------
Groceries, unclassified ---------
Iron and steel manufactures ------
Machinery __ -- -------
Metals:
Iron------------------------
Miscellaneous ----------------
Oats-----------------
Paints and varnishes---------------
Paper and paper products----------
Petroleum and products: Other and un-
classified-----------------------
Phosphate---------------------- -
Potash--------------------------
Railroad materials -
Rice---------------------------
Slag ------ ------------
Soda and sodium compounds ----
Sugar ---- ----
Textiles--- ----------------
Vegetable oil, miscellaneous-
Wax, paraffin----------
Woodpulp __----------
All other and unclassified-
Total------------------
EUROPE TO HAWAIIAN ISLANDS:
Fertilizers, unclassified
Ores, miscellaneous
Sand ------
All other and unclassified
Total -------------------
EUROPE TO OCEANIA:
Agricultural implements
Ammonium compounds -
Asphalt
Automobiles and accessories-
Beer ----------- -------
Bricks and tile --------------
Canned food products ----------
Cement
Chemicals, unclassified
Clay, fire and china -
Coke ----------------
Electrical machinery and apparatus ---
Fertilizers, unclassified-
Flour, wheat -------------
Floor coverings


1965 1964 1963 1962

18 16 37 40
16 21 27 17
85 71 75 64
4 5 2 2
4 9 1 35
17 14 18 22
61 84 117 118
9 9 22 19
12 15 12 12
5
9 9 8 8
182 193 182 206
69 66 70 64


33
6
5
4
47
3
33
5
7
8
1
32
11
5
5
11
27
122
967


18
8
4
6
59
5
32
13
3
5
37
4
5
4
10
26
123
976


21
5


4 3
59 57
11 9
8 4
10 7
33 32
43 72
5 5
11 6
9 9
18 6
110 141
1,128 1,170


9 5 11
14
3 12 3
12 17 28


9
13
6
74
3
6
8
66
52
11
12
14
10
5


6
6
4
78
3
4
5
56
46
3
10
12
11
4


5
14
4
23

12
8
7
54
7
12
12
47
38
1
43
11
6
11
5




Full Text

PAGE 1

XI / %§ V PANAMA CANAL COMPANY CANAL ZONE GOVERNMENT ANNUAL REPORT FISCAL YEAR ENDED JUNE 30, 1965

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Digitized by tine Internet Archive in 2009 with funding from University of Florida, George A. Smathers Libraries http://www.archive.org/details/annualreportpana1965pana

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PANAMA CANAL COMPANY Balboa Heights, C.Z. OFFICE OF THE PRESIDENT December 29, 1965. To The Stockholder of the Panama Canal Company: The story of the Panama Canal throughout the fiscal year ending June 30, 1965, again demonstrates the importance of this vital waterway to the industrial growth of the United States and other nations of the world. A record volume of 78,899,012 long tons of cargo flowed through the Canal during the year. Since World War II extensive studies have been made of the capacity of the Canal to meet the future requirements of world commerce. On April 18, 1965, President Johnson appointed a Commission, known as the "Atlantic-Pacific Interoceanic Canal Study Commission," to make a full and complete investigation to determine the feasibility of, and the most suitable site for, the construction of a sea level canal connecting the Atlantic and Pacific Oceans. The Commission is to complete its studies by June 30, 1968. During the year, the Board deferred action on a number of major nprovement projects pending completion of the Commission's studies. However, the Board is continuing a careful evaluation of the need for improvement projects that may be req lired to provide adequate service throughout the remainin*^ life of the Canal. Such projects include completion a I 11351 — 1

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of the widening of Gaillard Cut to a minimum width of 500 feet, provision of greater channel depth, assurance of sufficient storage capacity for water required for operation of the locks as traffic increases, and provision of increased amounts of electric power required by the Panama Canal Company and Canal Zone Government. The Board of Directors has also initiated investigation of the feasibility of securing certain supporting services from private sources instead of making further investment of Company funds in capital plant to provide such services. Robert J. Fleming, Jr., President.

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CONTENTS PANAMA CANAL COMPANY INTRODUCTION Page Organization Chart Faces page 1 The Canal— a Brief Description 1 Organization 1 Tolls Rates 2 Board of Directors and General Officers .... 3 Comparative Tabulation of Highlights of Operations . 4 Summary: Panama Canal Company Operations ... 5 Canal Traffic and Cargo Movements 5 Financial Review 5 CHAPTER I-REVIEW OF CANAL TRAFFIC Oceangoing Traffic 7 Other Traffic 8 Principal Trade Routes— Commercial Traffic ... 8 Nationality of Vessels 12 Cargo Statistics— Commercial Traffic .... 13 Transit Averages 13 Data in Statistical Chapter 13 CHAPTER n-THE WATERWAY Transit Operations 15 Locks Operation 17 Canal Improvement Program 17 Water Supply 18 Maintenance of Canal Channel 19 Orientation and Excursion Service 19 CHAPTER m-SUPPORTING OPERATIONS Employee Services 21 Supply and Community Service Bureau .... 21 Supply Division 21 Procurement Division 23 Community Services Division 23 Transportation and Utility Services 23 Railroad Operations 23 Motor Transportation 24 in

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CONTENTS Page Water Transportation Operations 24 Electrical Power System 25 Seismology 25 Communications System 26 Water System 26 Vessel Repairs 26 Harbor Terminals Operation 27 Printing Plant 28 Pkincipal Engineering and Construction Projects . . 28 Canal Widening at Las Cascadas-Bas Obispo Reaches 28 Proposed Trinidad Dam 28 New Locks Towing Locomotives and Cranes ... 29 Construction, Alterations and Additions to Gorgas Hospital 29 Locks Engineering 29 Expansion of Electrical Power System 30 Additional Water Mains to Panama 30 Operations and Capital Construction by Contract . 30 Other Projects 31 CHAPTER IV-ADMINISTRATION Personnel Administration 33 Major Organizational Changes 34 Major Personnel Changes 34 Force Employed and Rates of Pay 35 Full-Time Employees Paid at U.S. Wage Base ... 36 Turnover in Full-Time U.S. Citizen Isthmian Force . . 36 Turnover in FuU-Time Non-U.S. Citizen Isthmian Force . 36 Recruitment 36 Pay Adjustments 37 Cash Relief for Disabled Employees 37 Incentive Awards 38 Safety Program 38 CHAPTER V-FINANCIAL REPORT AND STATISTICAL DATA Financial Statements and Related Supplementary Reports Narrative Statement 41 Equity of the U.S. Government 41 Capital Expenditures 41 Automatic Data Processing 42 Financial Tables Table 1.— Comparative Statement of Financial Condition . . 42 Notes pertaining to financial statements ... 42 Table 2.— Comparative Statement of Revenue and Expenses . . 45 Table 3.— Statement of Changes in Equity of the U.S. Government . 46 IV

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CONTENTS Page Table 4.— Statement of Source and Application of Funds . . 47 Table 5.— Statement of Revenue and Operating Expenses . . 47 Table 6.— Transit Operations— Statement of Revenue and Operating Expenses 48 Table 7.— Supporting Services— Statement of Revenue and Operating Expenses 49 Table 8.— Administrative and Other General Expenses ... 50 Table 9.— Inventories 51 Table 10.— Comparative Statement of Fixed Assets .... 52 Shipping Statistics Table 11. -Ocean Traffic Through Panama Canal, Fiscal Years 1955-1965 54 Table 12.-Traffic by Months, Fiscal Years 1965 and 1964 . . 54 Table 13.-Canal Traffic by Nationality of Vessel .... 55 Table 14.-Classffication of Canal Traffic by Type of Vessel . . 56 Table 15.-Laden and Ballast Traffic by Nationality of Vessel . 58 Table 16.— Frequency of Transits of Vessels Through Panama Canal 60 Table 17.— Segregation of Transits by Registered Gross Tonnage . 62 Table 18.— Principal Commodities Shipped Through Canal . . 63 Table 19.— Origin and Destination of Cargo Through the Panama Canal From Atlantic to Pacific Segregated by Countries in Principal Trade Areas 65 Table 20.— Origin and Destination of Cargo Through the Panama Canal From Pacffic to Atlantic Segregated by Countries in Principal Trade Areas 68 Table 21.— Cargo Shipments by Trade Routes— Atlantic to Pacific . 72 Table 22.— Cargo Shipments by Trade Routes— Pacific to Atlantic . 75 Table 23.— Important Commodity Shipments Over Principal Trade Routes, Atlantic to Pacific 79 Table 24.— Important Commodity Shipments Over Principal Trade Routes, Pacific to Atlantic 93 Table 25.— Small Vessels Transiting Canal 105 Other Statistics Table 26.— Water Supply and Usage 106 Table 27.— Dredging Operations 106 Table 28.— Electric Power Generated 107 Table 29.— Number of Full-time Employees Paid at U.S. Citizen Rates 107 Table 30.— Number of Full-time Employees Paid at Non-U. S. Citizen Rates 108

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CONTENTS CANAL ZONE GOVERNMENT Page Letter of Transmittal . . Ill Organization Chart 112 Introduction . 113 Canal Zone Government 113 Major Organizational Changes 113 Major Personnel Changes 113 CHAPTER I-PUBLIC HEALTH Sanitation 115 Preventive Medicine and Quarantine 116 Division of Mental Health 116 Veterinary Activities 117 Quarantine 117 Hospitals and Clinics 117 CHAPTER H-PUBLIC EDUCATION General Description 121 Enrollment 122 Special Education 122 Library-Museum 123 CHAPTER m-PUBLIC ORDER AND PROTECTION Police Activities 125 Court Activities 126 Advisory Pardon and Parole Board 126 Fire Protection 127 Civil Defense 127 CHAPTER IV-POSTS, CUSTOMS, AND IMMIGRATION Postal Service 129 Customs, Immigration, and Shipping Commissioner Services . 130 Visas 131 CHAPTER V-LICENSES, INSURANCE, AND ESTATES Licenses 133 Insmance 134 Administration of Estates 134 Foreign Corporations 134 CHAPTER VI-MUNICIPAL IMPROVEMENTS Roads and Streets 135 Maintenance of Quarters, Hospitals, and Public Buildings . . 135 Sewer System 136 VI

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CONTENTS CHAPTER Vn-FINANCIAL REPORT AND STATISTICAL DATA Financial Statements and Related Supplementary Reports Page Narrative Statement 137 Invested Capital 138 Capital Expenditures 139 Financial Results 139 Table l.-iComparative Statement of Financial Condition . . , 138 Table 2.— Statement of Changes in Equity of the U.S. Government . 140 Table 3.— Statement of Operations 141 Table 4.— Comparative Statement of Fixed Assets .... 142 Statistical Data 143 Personnel Data 143 Area of the Canal Zone 144 vn

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s O u < < < < Ql

PAGE 11

INTRODUCTION THE CANAL The Panama Canal is a lock 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 normal depth of 42 feet. The greatest part of the Canal channel is at the level of Gatun Lake, the surface of which fluctuates from a high of 87 feet above sea level in the rainy season to a low of 82 feet above sea level in the dry season. Variation in the level of Gatun Lake necessitates adjustment of allowable ship draft from a maximum of 39 feet to a minimum of 34 feet. In transiting the Canal a ship is raised in three steps from sea level to the level of Gatun Lake, and subsequently lowered in three steps to sea level at the other side of the Isthmus. The six steps or flights of locks are in duplicate, to enable simultaneous lockage of two ships transiting in the same direction or of ships passing in opposite directions. The past fiscal year marked the completion of 51 years of successful operation of the Canal. The Canal was opened on August 15, 1914, and has served world commerce without major interruption since fiscal year 1916, when the last Canal-closing sHde occurred in Gaillard Cut at the Continental Divide. A total of 359,811 vessels of all types have made the Canal transit, of which 283,921 were oceangoing commercial vessels plying the various routes of world trade. In addition, the Canal has been of incalculable service to the United States and her allies in time of war. ORGANIZATION The Panama Canal Company Act, which created the Panama Canal Company and defined its basic purposes, organization, rights, powers, and obligations, was enacted June 29, 1948 (62 Stat. 1076), as amended by the act of September 26, 1950 (64 Stat. 1041). This act became effective on July 1, 1951, pursuant to the provisions of Executive Order 10263 of June 29, 1951. The charter of the corporation was reenacted with only minor modifications as part of the act revising the Canal Zone Code, approved October 18, 1962 (76A Stat. 1). The charter now appears in two Canal Zone Code sections, 61-75 and 121-123. In its capacity as owner of the Company, the U.S. Government is represented by the Secretary of the Army, referred to as "Stockholder," in his individual capacity as the personal representative of the President of the United States for such purpose. The Company operates under the management of a Board of Directors appointed by the Stockholder. The Company is charged with the maintenance and operation of the Panama Canal and the conduct of the business-type operations incident to such maintenance and incident to the civil government of the Canal Zone. I 11351 — 2

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2 INTRODUCTION The Company and the Canal Zone Government, the independent agency of the United States charged with the civil government of the Canal Zone, are closely interrelated in mission, organization, and operations. The combined function of these agencies is the administration of the Panama Canal enterprise as a whole. The Governor of the Canal Zone, who is appointed by the President of the United States and who is charged with the administration of the Canal Zone Government, under the supervision of the Secretary of the Army, is ex officio a director and President of the Company. The Panama Canal Company is expected (a) to recover all costs of operation and maintenance of its facilities, including depreciation; {h) to pay interest to the Treasury on the net direct investment of the Government in the Company, and (c) to reimburse the Treasury for (1) the annuity payments to the Republic of Panama under the convention of 1903 as modified by the tieaty of 1936 between the two governments, and (2) the net costs of operation of the Canal Zone Government, including depreciation on fixed assets. The interest rate for the fiscal year 1965 as set by the Secretary of the Treasury was 3.457 percent. The Board of Directors \s required to appraise, at least annually, the Company's working capital requirements, together with reasonable foreseeable requirements for authorized plant replacements and expansion, and to pay into the Treasury as a repayment of capital the amount of any funds in excess of such requirements. All funds other than working balances are carried with the U.S. Treasury. The activities of the Company are classified under two major headings; namely: (a) Transit Operations and {h) Supporting Services. Category (a) embraces those functions directly related to the waterway and the transiting of ships and to services to shipping, including maintenance of the Canal channel, maintenance and operation of the locks, and maintenance of a bridge across the Canal at Balboa. The supporting services include vessel repairs, harbor terminal operations, a railroad across the Isthmus, a supply ship operating between New Orleans and the Canal Zone, motor transportation facilities, storehouses, an electric power system, communication system, a water system, and service activities that are essential to employees' needs including the operation of quarters, retail stores, and restaurants. TOLLS RATES The rates of Canal tolls remained unchanged during the year. These rates are as follows: (a) On merchant vessels. Army and Navy transports, tankers, hospital ships, supply ships, and yachts when carrying passengers or cargo: 90 cents per net vessel-ton of 100 cubic feet of actual earning capacity; that is, the net tonnage determined in accordance with the "Rules for the Measurement of Vessels for the Panama Canal"; {h) On such vessels in ballast, without passengers or cargo: 72 cents per net vessel-ton; (c) On other floating craft: 50 cents per ton of displacement. Tolls charges for the Canal are at the same level as were imposed on March 1, 1938. They are lower than those charged from the beginning of Canal operations to 1938.

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PANAMA CANAL COMPANY BOARD OF DIRECTORS AND GENERAL OFFICERS OF THE PANAMA CANAL COMPANY AS OF JUNE 30, 1965 Board of Directors Hon. Stephen Ailes, Stockholder Washington, D.C. Secretary of the Army. Hon. Stanley R. Resor, Chairtnan of the Board Washington, D.C. Under Secretary of the Army. Robert J. Fleming, Jr., President Balboa Heights, C.Z. Governor of the Canal Zone; Major General, U.S. Army. CoRNELros G. DtrrcHER Phoenix, Ariz. Investor and Civic Leader. Hon. J. Kenneth Mansfield Washington, D.C. Inspector General, Foreign Assistance, Department of State. C. Robert Mitchell Kansas City, Mo. President, First Federal Savings & Loan Association, Kansas City. Walter J. Pearson Portland, Oreg. President, Pearson Insurance Co., Portland, Oreg. Hon. Jack H. Vaughn Washington, D.C. Assistant Secretary of State for InterAmerican Affairs. James A. Williams Boston, Mass. Vice President, Public AflFairs, New England Telephone & Telegraph Co. Dr. Charles J. Zinn Washington, D.C. Law Revision Counsel, U.S. House of Representatives. Howard C. Petersen Radnor, Pa. President, Fidelity-Philadelphia Trust Co. General OflBcers Hon. Stanley R. Resor, Chairman of the Board Maj. Gen. Robert J. Fleming, Jr., USA, President Col. H. R. Parfitt, USA, Vice President Philip L. Steers, Jr., Comptroller W. M. Whitman, Secretary

PAGE 14

4 INTRODUCTION COMPARATIVE TABULATION OF fflCHLIGHTS OF OPERATIONS Fiscal year Number of oceangoing transits: ^^^^ ^^^^ Commercial 11834 11,808 U.S. Government Free. 284 285 85 91 Total 12,203 12,184 Tolls earnings (including small vessels): Commercial $65,502,769 $61,146,998 U.S. Government 1,651,890 1,399,393 Total $67,154,659 $62,546,391 Total cargo transiting (long tons) 78,922,931 72,168,690 Lockages: S^j^'^ATr— ^ 10,999 10,918 Pedro Miguel 11^925 11^347 Miraflores ___ ir-rri 7— v 11>360 10,841 1 erminals operations (tons of cargo handled, transferred, and stevedored at piers) 2,389,373 2,394,453 Oil handling (number of barrels pumped) 36,792,557 35,512,392 Maintenance of channel (cubic yards dredged) 3,144,200 4,778,800 Number of full-time Company employees (as of June 30): U.S. citizen 2,461 2,537 Non-U.S. citizen 8,979 8,917 Total Company employees 11,440 11,454

PAGE 15

SUMMARY PANAMA CANAL COMPANY OPERATIONS Canal traffic and cargo movements.— During fiscal year 1965, Panama Canal tonnage climbed to its highest figure in the history of the Canal, topping the previous high record, 72,168,690, attained in 1964 by slightly over 6.5 million long tons. The volume of cargo transiting the Canal in 1965 amoimted to 78,922,931 long tons which is an increase of 6,754,241 tons, or 9.4 percent, over last year's volume. Along with this increased cargo movement, oceangoing transits and tolls also experienced a modest rise. Oceangoing transits (including free transits) at 12,203 were only 19 above last year, but tolls income amounting to $67,154,659 was $4,608,268 above the income for fiscal year 1964. The volume of cargo per net ton on tollspaying vessels, or the load factor, was 1.02 tons for the year. During March, Canal transits established a new high of 1,119 oceangoing transits for a daily average of 36.1 ships. Financial review.— Net revenues for 1965 totaled $1.5 million after charges for interest costs totaling $11.4 million and the net cost of operations of the Canal Zone Government totaling $18.4 million. The corresponding net revenue for the previous year was $2.2 million. Operations during the course of the fiscal year reflect the absorption of wage increases and related costs in excess of $4 million. Tolls revenue of $67.2 million and ti-ansits of 12,118 tolls-paying ships over 300 Panama Canal net tons set new all-time records. The corresponding tolls revenue and vessel transits for fiscal year 1964 were $62.5 million and 12,093 ships, respectively. Capital expenditures amounted to $10.6 million for the year. Improvements to waterway facilities exceeded $4.2 million. The principal expenditure was for the replacement of towing locomotives and cranes in the amount of $2.6 million. For supporting services operations the largest expenditure was for a steam tmbine-generator for the electric power system amounting to $2.4 million. A major change in accounting technique was inaugurated on April 1, 1965, with the installation of a computer. The first phase, now on the computer, is that of inventory control. Systems studies and programming are in process to expand the use of the computer for payroll and persormel procedures.

PAGE 17

Chapter I REVIEW OF CANAL TRAFFIC OCEANGOING TRAFFIC ^ During this past fiscal year the increasing growth in Panama Canal traffic continued for the 13th year. Fiscal year 1965 established the highest year of traffic since the Canal began operation. A grand total of 12,203 oceangoing vessels transited the waterway, 284 of which were U.S. Government owned or controlled vessels and 85 of which were free transits. A total of 11,834 commercial ships transited, averaging 32.4 per day, and for the fourth consecutive year exceeded the 11,000 mark. The Panama Canal Company received $65,442,633 in tolls from commercial ships flying the flags of 45 nations. Traffic of this type, amounting to 97 percent, constitutes the bulk of the Company's workload. Accompanying this rise in number of transits for the year in the oceangoing commercial vessels was an 8.5-percent increase in cargo tonnage. The 76,573,071 long tons of commercial cargo that passed through the Canal during fiscal year 1965 represent an average of 210,282 long tons per day. The total tonnage was 6 million tons above last year's record and 9 milhon tons above the previous record set in 1962. Of the 76.6 million tons of cargo, 5.8 million moved in the U.S. intercoastal trade, 24.4 million tons were U.S. exports, and 19.4 million tons were imports of the United States for a total of 49.6 milhon tons moving to or from the United States. This represents 64.8 percent of the total cargo flow. With the exception of U.S. intercoastal trade and that of Eiu-ope-west coast United States/ Canada, cargo movements to and from all the major geographical areas of the world increased in 1965. The most significant change occiured in the flow of cargo to and from the Far East. Other important increases are shown in trade between the United States and South America. This year cargo movements to and from the Far East increased 1,815,000 tons and movements to and from South American ports rose by 4,555,000 tons. ' Vessels of 300 net tons and over (Panama Canal measurement!) for vessels rated on net tonnage, or of 500 displacement tons and over for vessels rated on displacement tonnage (naval vessels, dredges, etc.).

PAGE 18

8 REVIEW OF CANAL TRAFFIC A tabulation of the four principal features of oceangoing traflBc for the past 3 years is shown below: Fiscal year 1965 1964 1963 Number of oceangoing transits 12,200 12,184 11,408 Net tonnage (Panama Canal measurement) 77,207,090 71,793,761 66,744,515 Cargo (long tons of 2,240 lbs.) 78,878,276 72,149,451 63,867,919 Total tolls and tolls credits $67,090,286 $62,493,860 $57,828,354 OTHER TRAFFIC In addition to the oceangoing vessels, 687 tolls-paying small craft of less than 300 net tons, Panama Canal measurement (or under 500 displacement tons on vessels assessed on displacement tonnage), transited the Canal dming fiscal year 1965. Transits of small vessels have but slight effect on workloads and tolls revenue volume, and are generally excluded from analysis of Canal operations. Also excluded from the preceding table are statistics on 22 small vessels, exempted from tolls, of the Government of the Republic of Panama, war vessels of the Republic of Colombia, and 9 vessels transiting the Canal solely for repaii's at the Panama Canal shops. Further details on this traffic will be found in table 25, chapter V, page 105. PRINCIPAL TRADE ROUTES-COMMERCIAL TRAFFIC The following table shows the eight major Panama Canal trade routes ranked according to the net vessel tonnage (Panama Canal meastuement) moving over them. The cargo tonnage moving over these routes is also shown with comparable 1964 statistics and the percentage change. The net tonnage is the calculated cargo capacity of the various ships whereas the cargo tonnage is the actual weight of the cargo transported in long tons. Total net vessel tonnage moving through the Canal increased 7.3 percent over the previous year. Vessel tonnages moving over the eight main trade routes increased by 4 percent and the tonnage transported over all the other routes increased by 17.1 percent. All eight main routes maintained their status in the lineup of principal trade routes served by the Panama Canal. Seven of the routes shown reveal increases in net ship tonnage. Only two of the eight experienced decreases in cargo tonnage shipped, neither of which is significant. The most significant change in volume occurred in the top-ranking east coast United States-Asia route with a vessel tonnage increase of 895,000 measurement tons, or a 5.5-percent gain. The largest percentage increase took place in the seventh ranking route, the east coast South America to west coast United States movement. The route increased 30.6 percent, an increase of 609,000 net tons moving between the two countries. Retaining its eighth position in importance among the routes, the east coast United States to west coast Central America/Mexico trade reflects the second highest percentage gain in net tonnage.

PAGE 19

PANAMA CANAL COMPANY 9 Fiscal year (in thousands of tons) Percent in^ crease or 1965 1964 (decrease) Panama Panama Panama Canal Long Canal Long Canal Long net tons net tons net tons Trade route tons cargo tons cargo tons cargo East coast United States-Asia 17,234 22,540 16,339 21,354 5.5 5.0 East coast United States-west coast South America 9,541 7,824 9,960 7,031 (4.2) 11.3 Europe-west coast South America 7,751 7,153 7,500 7,073 3.3 1.1 Europe-west coast United States/Canada... 6,779 6,SS2 6,620 7,044 2.4 (2.3) U.S. intercoastal (including Alaska and Hawaii) 4,920 5,823 4,566 6,088 7.8 (4.4) Europe-Oceania 3,233 2,378 3,148 2,158 2.7 10.2 East coast South America-west coast United States 2,598 2,838 1,989 2,355 30.6 20.5 East coast United States-west coast Central America/Mexico 1,998 945 1,848 825 8.1 14.5 Subtotal. 54,054 56,3S3 51,970 53,928 4.0 4.6 All other routes 20,681 20,190 17,663 16,622 17.1 21.2 Total 74,735 76,573 69,633 70,550 7.3 8.5 The only decline occurring in net vessel tonnage is shown in the east coast United States to west coast South America route which experienced a drop of 419,000 measurement tons, representing a decUne of 4.2 percent. The east coast South America to west coast United States, retaining its seventh position in importance among the routes, shows the highest percentage gain in net tonnage. Two other substantial gains in net tonnage are shown in the fifth and eighth ranking routes, but the fifth route, U.S. intercoastal trade, took a drop of 4.4 percent in cargo tonnage. The total volume of cargo moving through the Canal increased by 8.5 percent, or 6,023,000 long tons. The highest single route increase in volume of cargo tonnage, 20.5 percent, occurred in the east coast South America to west coast United States. The gain falls just short of that experienced by the "all other routes." A brief description of shipping engaged in these trade routes is given in the following paragraphs: East coast United States-Asia.— Alfhough retaining the position of first place in importance among the various routes served by the Canal the route this year dropped back to more normal gains in both Panama Canal net tonnage and volume of cargo moved. From the phenomenal increase of 27 percent last year the gain in long tons of cargo transiting eased off to 5.6 percent, or 1.2 million tons as compared with a gain of 4.5 million in 1964. The flow of cargo to and from the Great Lakes area increased substantially with a gain of 251,000 long tons, contributed almost entirely by the Asian to United States movement. Total exports from the east coast United States to Asia rose to 17,611,837 long tons, 190,000 tons under 1964 exports, while Far East exports to the United States increased to 4,928,259 tons for a gain of 1,186,491 tons, or 5.6 percent over the tonnage moving in fiscal year 1964. The three most important increasing commodities moving in this trade from the United States to Asia were coal and coke, phosphates, and soybeans. Other commodities contributing substantial volumes were sorghum with 208,000 tons, and rice with an increase of 112,000 tons over the 1964 totals. Exports of scrap metal declined some 850,000 tons during 1965. In the eastbound movement, shipments of iron and steel products to the United States accounted 11351 — 3

PAGE 20

10 REVIEW OF CANAL TRAFFIC for 74.8 percent of the increased tonnage while sugar shipments rose by some 126,000 long tons. Textiles and lumber shipments rose moderately. East coast United States to west coast South America.— Although suffering a modest decline in volume of shipping, this route retained its second place position in importance. However, the volume of cargo increased by slightly more than 11 percent. Cargo tonnage moving over this route consists principally of the flow of raw materials from South America to the United States. This year ores and metals moving from South America over the route amounted to 4,196,000 long tons for a gain of 869,000 tons over fiscal year 1964. Iron ore alone contributed 781,000 tons of this gain, or 89.5 percent of the total increase over 1964. Sugar exports to the United States increased some 101,000 long tons. The westbound volume of cargo increased only slightly in comparison with the eastboimd movement, contributing a total of 1,655,000 long tons moving in this direction. Europe to west coast South America.— Retaining its position as third-ranking route of the year, the area experienced a very slight rise in net tormage and cargo movements. Trade this year contributed a total of 7,751,000 net vessel tons of shipping to Panama Canal trafiic in comparison with 7,500,000 net tons in fiscal year 1964, a 3.3-percent rise in volume. Raw materials, as in previous years, Atlantic-bound for European ports contributed the principal cargo moving in this direction. During this fiscal year 84.4 percent of the cargo moved from Pacific to Adantic. The flow of cargo from the west coast of South America to Europe increased by 89,000 long tons, whereas the commodity flow from Europe declined by 9,000 tons. Movements of bananas, fishmeal, and fish oil registered the most significant advances, increasing some 434,000 tons in total, with fishmeal alone contributing 289,000 tons of the increase. These increases were offset to a considerable extent by decreases in the movement of iron ore, coffee, and sugar in the commodity flow from South America to Europe. Europe to west coast United States/ Canada.— Recording a modest increase in the volume of shipping employed this fiscal year, this fourth-ranking route in importance to the Canal experienced a decline of 2.3 percent in the volume of cargo b-ansported. The significant rises in exports of oilseeds, lumber, sulfiu", and petrolevun products of some 661,000 long tons to European ports was more than offset by declining volumes amounting to 874,000 tons in wheat, barley, coke, and metals. The principal decrease recorded moving from Europe to the west coast area was a decline of 22.5 percent in ii'on and steel manufactures in comparison with the fiscal year 1964 figure of 262,000 long tons. Nominal increased shipments from Emope to the area occurred in automobiles and paper and paper products. U.S. intercoastal (including Alaska and Hawaii).— In terms of percentage, the third highest increase in net vessel tonnage over a single route through

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PANAMA CANAL COMPANY 11 the Canal this year was registered iii this fifth-ranking route. The trade contributed 4,920,000 net vessel tons of shipping to Panama Canal traflSc this year in comparison with 4,566,000 net tons recorded in 1964, a 7.8-percent rise in volume. On the other hand, after a significant rise of 24 percent registered in cargo volume ti"ansiting in 1964 over the 1963 tomiage, the cargo tonnage declined 4.4 percent, or a total of 265,000 long tons, under 1964. Although recording a net gain of some 931,000 long tons in cargo flow in the westbound movement, 702,000 of which was increased tonnage of petroleum products, a total decline of 1,178,000 tons occurred in the eastbound volume. This is a decrease of 30.8 percent under the volume of 3,820,000 long tons transiting in this direction in 1964. Sugar, the leading export from Hawaii to the east coast of the United States, decreased only slighdy, 19,000 tons, under the 1964 figure. Canned food products, also a leading commodity, declined some 52,000 long tons in comparison with fiscal year 1964 when 260,000 tons were shipped. The principal decrease suffered in the west coast to east coast movement was due to decrease shipments of petroleum products which were down 1,158,000 long tons from the 1964 volume, a decline of 59.7 percent. Europe to Oceania.— Ranking sixth in importance in trade via the Panama Canal since 1955, the route showed a modest increase of 2.7 percent in net vessel tonnage employed during 1965, and recorded a substantial increase of 10.2 percent in cargo transported between the areas. In this trade the bulk of the commodities flow principally between New Zealand and Great Britain. This year, of the 2,378,000 long tons of cargo moving over the route, 1,268,000 tons, or 53.3 percent, was trade between the two countries. Principal coramodities contributing to the slight gain in the westbound movement were iron and steel products and machinery with shipments of iron and steel increasing 25.4 percent. In the eastbound flow substantial gains were recorded in dauy and meat products, up 113,000 long tons. Fuel oil and sugar exports also increased by 39.9 and 23.3 percent, respectively. East coast South America to west coast United States.— This route retained its position in seventh place and experienced the highest increases in Panama Canal net vessel tormage and cargo tonnage of any of the major routes. Net vessel tonnage was up 30.6 percent and cargo tons rose 20.5 percent. In comparison with fiscal year 1964, a gain of some 609,000 net vessel tons and 483,000 long tons in cargo was contributed by the route. The movement of cargo over this route consists almost entirely of a flow of petroleum and products from Venezuela to the west coast of the United States. Of the combined 2,838,000 long tons of cargo passing over the route this year, 2,610,000 tons were petroleum and products bound for the west coast of the United States. This is a percentage gain of 26.8 over last year's commodity or some 551,000 long tons in the trade. United States to South America shipments declined slightiy from the preceding year-. East coast United States-west coast Central America/Mexico— This route retained its eighth-place position among the major routes served by the Canal, and recorded the second highest percentage increases in volume of net

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12 REVIEW OF CANAL TRAFFIC tonnage and cargo tonnage for fiscal year 1965. Net vessel tonnage volume rose by 8.1 percent while cargo tonnage increased 14.5 percent over last year's volume. The bulk of the cargo moving in this trade is bananas, chiefly from Costa Rica and Panama to the eastern ports of the United States. Banana shipments this fiscal year rose some 70,000 long tons, while shipments of sugar rose sharply and contributed an additional 77,000 tons over the volume shipped in 1964. These two conmiodities accounted for 77.2 percent of the total cargo moving in this direction. Moderately increased shipments of phosphate and paper and paper products occurred in the Atlantic to Pacific movement. NATIONALITY OF VESSELS Forty-five nationalities were represented in the oceangoing commercial traffic passing through the Canal during fiscal year 1965, the same number as in the previous year. Transits of U.S. registry, numbering 1,678 with an aggregate net vessel tormage, Panama Canal measurement, of 12,197,141 tons, ranked first among the nations using the Canal. For the fifth consecutive year ships flying the Norwegian flag attained second place in importance among the various nations using the waterway. British ships, for the sixth year, ranked in third place. Germany remained in fourth place. Following these 4 top nations in order of importance based on number of transits were Liberian, Japanese, Netherland, Greek, Panamanian, and Swedish vessels to round out the 10 nations who accounted for 81.7 percent of the commercial transits. The 3,303 different conrniercial vessels made 11,834 transits for an average of 3.58 ti-ansits per vessel, varying from 1 to 165 transits per ship. This year the Honduran tanker Gulfoba transited the Canal 165 times, 41 transits more than were made last year, and an all-time high record for a single vessel in a fiscal year. The Seatotvn, of Panamanian registry, also a tanker, again placed second in transiting honors with 114 transits to its credit. Both tankers are on a shuttle run between Panama's new oil refinery at Las Minas Bay and Balboa. Of the 11,834 oceangoing commercial transits made during fiscal year 1965, 9,555 were classified as general cargo vessels. This is a decrease of 151 vessels of this type under the number transiting in fiscal year 1964. All other types of transits declined with the exception of ore vessels which rose to 1,642 ti-ansits, an increase of 308 vessels from the previous year. U.S. -flag vessels decreased by 10 transits with a decline in long tons of cargo. However, an increase of 141,120 Panama Canal net vessel toimage is shown over last year as well as a slight increase in tolls revenue. An increase of 109 b'ansits occurred in the foreign registry class with Panama Canal net vessel tonnage increasing 5,014,865 net tons over last year's volume. An additional 6,684, 429 long tons of cargo transited the Canal in these ships for an 11.2-percent rise in such tonnage over the volume recorded in fiscal year 1964. This year ships of U.S. registry paid 16.4 percent of the total tolls collected on large commercial carriers. Last year such vessels paid 17.5 percent of the total toUs.

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PANAMA CANAL COMPANY 13 CARGO STATISTICS-COMMERCIAL TRAFFIC Cargo flowing through the Canal during fiscal year 1965 established the highest level attained since the Canal opened 51 years ago. The volume of cargo tiansiting this year was 76,573,071 long tons. This is a gain of 6,017,000 tons, or 8.5 percent, over last year's volume, and surpasses the previous record established in 1962 by 9,048,519 tons. The Atlantic to Pacific movement of cargo recorded a high of 42,948,996 long tons, for an increase of 4,047,597 tons. Cargo moving in the Pacific to Atlantic direction conbibuted a gain of 1,975,384 tons over the volume attained in fiscal year 1964. Of the 11 commodity groups which have consistently accounted for approximately 75 percent of the volume of cargo passing through the Canal, only wheat and canned and refrigerated products declined in tonnage with the remaining 9 groups all increasing. Heaviest contributors among those commodities which increased were iron and steel manufactures, petroleum and products, phosphate, and lumber. Iron and steel increased by 49.3 percent for a gain of 1,269,000 long tons; peti-oleum and products showed a gain of 7.5 percent for a gain of 1,066,000 long tons. Percentagewise, phosphates were second with an increase of 36.9 percent, but contributed only an additional 875,000 long tons over movements last year. Lumber shipments rose by 12 percent, and sugar gained some 13 percent over fiscal year 1964 tormages. Average Tonnage, Tolls, and Tons of Cargo Per Transiting Vessel The average measurement of tonnage, tolls, and tons of cargo per oceangoing commercial vessel during fiscal years 1965 and 1964 is shown in the following table: Fiscal year Average per vessel 1965 1964 Panama Canal net measured tonnage 6,315 5 910 Tolls $5,530 $5,175 Tolls per Panama Canal net ton $0,876 $0,877 Tons of cargo per laden transit 6,467 7,180 Tolls per ton of cargo (laden vessels only) $0,753 $0,772 DATA IN STATISTICAL CHAPTER Further particulars of bafiBc through the Canal are presented in chapter V of this report.

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Uiapter II THE WATERWAY The eflBcient and dependable operation of the Panama Canal is of vital concern not only to maritime interests throughout the world but also to a host of others whose livelihood and general welfare are dependent to some degree upon an even flow of world commerce. The process of getting the ships through the Canal and the performance of certain auxiliary or supporting functions are grouped under the classification of Transit Operations, for purposes of this report, and are the primary missions of the Marine Bureau and the Engineering and Construction Bureau. These two bureaus must provide for the transiting of ships, operation of the locks, vessels repairs, maintenance of the Canal channel, meteorology and hydrographic work, operation of utility systems, and the maintenance of all Canal supporting facilities. TRANSIT OPERATIONS Traffic control Ehiring fiscal year 1965 there were 12,203 oceangoing vessels transiting the Canal, 19 more than in fiscal year 1964. These vessels spent an average of 14.3 hours in Canal Zone waters from time of arrival to departure. There was an average of 33.4 ships per day with the highest peak in traflSc being reached in March 1965, when 1,119 oceangoing transits were made during the month. A total of 1,008 vessels were recorded as holdovers during the year, 318 of which were delayed because they required transit during daylight hours. The remaining 690 vessels were delayed due principally to reduction of capacity during periods of locks overhaul. Tug operations Certain vessels such as tankers, ore carriers, and those carrying hazardous cargoes are selectively dispatched so that they will not meet or pass any other vessel in the narrow sections of Gaillard Cut and are not permitted to proceed unless they can clear the Cut and the locks during daylight hours. Such ships are called "daylight clear-Cuts," and during fiscal year 1965 a total of 1,345 of this type transit moved through the waterway in comparison with 1,114 handled during 1964. In addition, there were 985 vessels which did not require "daylight only" transit, but did require clear-Cut transit compared with 960 such transits in fiscal year 1964. The total of 2,330 clear-Cut transits 15

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16 THE WATERWAY is significant because it means that almost 1 out of eveiy 5 transiting vessels required special treatment in Gaillard Cut. This fast growing categoiy of vessels increased 10.5 percent in fiscal year 1965 over the previous year volume. There was a significant increase in the number of large vessels ti'ansiting during the year. Although vessels continued to be built longer and wider, their handling has become less difficult due to the completion of approximately 5 miles of widening in the Gaillard Cut channel, thus pennitting the classification of 1,696 vessels into the partial-clear-Cut categoiy. From 646 in 1964, a total of 848 vessels transited in 1965 with beams of 80 feet or over, while vessels of over 575 feet in length increased from 1,036 to 1,325 in 1965. Seven tugs of the Navigation Division were in service throughout the yearthree at the Atlantic terminal and iour at the Pacific terminal. The tugs operated a total of 19,348 revenue-hours in the servicing and assisting of ships, in comparison with 18,535 revenue-hours in fiscal year 1964. Dredging Division tugboats performed a total of 3,890 hovurs of service in assistance to commercial shipping as well as to vessels of the U.S. Army and Navy. Accidents to shipping During fiscal year 1965, the Board of Local Inspectors were called upon to investigate 35 marine accidents which occurred in Canal Zone waters, and to fix the blame and responsibility for them. Of this total, 13 accidents occurred at the locks, 5 occurred at other points in transit, and 17 occurred in the terminal poi-ts. This compares with 29 investigations in fiscal year 1964. The Panama Canal Company was found wholly responsible for damages incurred in 17 accidents. Seventeen of the accidents were detennined to have been caused by fault of the vessel or other causes for which the Company assumed no responsibility, and one case was a divided responsibility between the ship and Panama Canal Company. There were 407 transits per accident during 1965, as compared to 487 in 1964. Admeasurement and boarding party operations During 1965, 684 new oceangoing vessels were measured and in addition 379 ships with sb-uctural changes were remeasured. This compares with 645 new ships and 455 with structural changes in the previous year. The functions of the boai'ding party consist of all phases of routine boarding which includes admeasurement of vessels for tolls assessment, inspection to insure compliance with customs, iramigration, quarantine, and navigation regulations, and the performance of Deputy Shipping Commissioner duties for seamen aboard the U.S.-flag vessels. There were 13,108 ships boarded and inspected during the year as compai'ed with 13,246 in fiscal year 1964. Aids to navigation As of June 30, 1965, there were 2,106 navigational aids in service located in the Canal proper, its approaches and terminal harbors, and the adjacent coastal areas, all maintained by the Navigational Aids Unit of the Dredging Division. Included in this total are the electrically operated fluorescent luminaries which comprise the Gaillard Cut lighting system and the Gatun and Miraflores approach lighting. Classffied according to the type of illuminants used are the following: gas operated, 82; electrically operated, 1,509;

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PANAMA CANAL COMPANY 17 battery operated, 101; and unlighted aids, 414. Outlying navigational aids were visited for the purpose of inspection and servicing, and all aids were maintained in good operating condition throughout the year. LOCKS OPERATION Gatun Locks near the Atlantic entrance to the Canal forms two continuous parallel flights of three steps each which raise the ships 85 feet above sea level and then lower them. The three flights at the Pacific entrance aie divided between Pedro Miguel Locks with one flight and Miraflores Locks wdth two flights. Each of the tv^n chambers in each flight of locks has a length of 1,000 feet, a Avidth of 110 feet, and a depth of 70 feet. Since the flights are in duplicate, ships may pass in opposite directions simultaneously. The duration of a lockage depends on many factors, including the size of the ship, its handling characteristics, and whether the vessel is locked separately or in tandem. This latter procedure is used to save overall time and water. The normal lockage intei-vals are 40, 60, and 80 minutes at Pedro Miguel, Mii-aflores, and Gatun Locks, respectively. The number of large vessels passing through the locks in fiscal year 1965 was greater than ever before. Ten-locomotive lockages increased 12.5 percent over the previous year, and 10-locomotive tandem lockages decreased 17.6 percent. There were 208 12-locomotive lockages in fiscal year 1965 as compared with 138 the previous year. Total lockages for 1965 showed an increase of 1,178, or 3.6 percent. Lockages— Vessels handled The number of lockages and vessels handled (including Panama Canal equipment) is shown in the following table for the fiscal years 1965 and 1964: Fiscal year 1965 1964 Gatun Locks: Number of lockages 10,999 10,918 Number of vessels 13,506 13,725 Pedro Miguel Locks: Number of lockages 11,925 11,347 Number of vessels 15,103 15,008 Miraflores Locks: Number of lockages 11,360 10,841 Number of vessels 14,574 14,514 CANAL IMPROVEMENT PROGRAM Canal widening program The Canal widening program is one of several aimed at increasing the capacity of the Canal by expediting the movement of ships in transit. It is concerned with increasing the width of the usable channel in Gaillard Cut from 300 to 500 feet. The work of removing the nonrocky overburden from that part of the Canal in Las Cascadas-Bas Obispo Reaches which was to be widened was completed early in fiscal year 1965. A total of 5,585,337 cubic yards were removed at a cost of $0,448 per cubic yard, 11351 4

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18 THE WATERWAY The remaining work required to complete the widening of Gaillard Cut consists of the removal of 3,870,000 cubic yards, more or less, in Zone I (material above elevation 90), and 7 million cubic yards in Zone II (below elevation 90 subaqueous material). If the extia 5-foot depth design is used, there will be an additional 650,000 cubic yards of this Zone II material. Locks towing locomotives New locomotives have been placed in service at all locks, resulting in fewer personnel being required for lockage crews. Experience with new locomotives has enabled larger ships to be locked with fewer locomotives than originally anticipated. The present operation is now handling larger ships and more lockages with 215 fewer persoimel. Continued improvements have been made in maintenance procedures on new locomotives, resulting in savings in parts, material, and labor costs. Four test locomotives are to be returned to Japan to be standardized and returned to service, windlass and ti-action units removed for return and standardization. These units and other usable parts will become spare parts for the 57 locomotives remaining in service. Four maintenance shelters for servicing the new locomotives were built imder contract during the fiscal year. Two are at the north end each side of Miraflores Locks, and two are located at the north end each side of Pedro Miguel Locks. 24-hour locks outage concept As a part of the 24-hour outage concept, overhaul of two gates was begun in January 1965. A trial installation of the east wall hollow quoin cofferdam was attempted, unsuccessfully. The cofferdam was redesigned and will be altered by the Industrial Division. It is expected that the experimental overhaul will be resumed in October 1965, at Miraflores Locks. WATER SUPPLY The supply of water necessary for the operation of the Panama Canal in transiting of ships, the generation of electric power, and for municipal use, is derived from several tributary streams that flow into Madden and Gatun Lakes which serve as storage and flood control reservoirs of a drainage basin comprising 1,289 square miles. All inflow from Madden Lake, whether drawn for hydi'oelecbic power or spilled for lake control, flows into Gatun Lake and together with the runoff from the area below Madden Dam is used for lockages, power generation, municipal purposes, or may be spilled to control the operating level of Gatun Lake. An average rainfall of 84.57 inches in the Canal Zone during fiscal year 1965 was approximately 11.04 inches below normal. Runoff during the 5-month "dry season," December through April, amounted to 241,069 acre-feet, which was 70 percent below the 51-year average. This year the dry season began on December 2, and ended on May 8, 1965, continuing 13 days longer than the average dry season, and recording the 10th longest season in 51 years. The total runoff from Gatun and Madden Dam Lake Basin for fiscal year 1965 was 12 percent below normal and amounted to 4,196,763 acre-feet.

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PANAMA CANAL COMPANY 19 Of this amount, 39 percent, or 1,624,541 acre-feet, was derived from the basin above Madden Dam. A net drawdown on Madden Lake of 32.63 feet and 4.35 feet on Gatim Lake dming the December-April period represents a draft on storage from both lakes of 794,582 acre-feet. After deducting the evaporation losses for both lakes of 527,571 acre-feet, the remaining yield or runoflF amounted to 4,056,589 acre-feet. This remaining yield was expended as follows: 1,892,172 acre-feet furnished for lockages (average 31.4 per day); 1,535,009 acre-feet used to generate 96,688,200 kilowatt-hours at Gatim hydroelectric plant; municipal requirements totaling 49,977 acre-feet; leakage and miscellaneous losses amounting to 19,651 acre-feet; and the spilling of 559,780 acre-feet at Gatun Spillway to control the lake elevation. Thermal power generation for water conservation began in December 1964 and continued through April 1965. A total of 201,855,700 kilowatt-hours was produced. Of this amount, 22,939,400 kilowatt-hours were furnished from December 10, 1964, to April 30, 1965, by Fuerza y Luz through interchange. Sources and usages of water together with comparable data for the preceding year are itemized in table 26, chapter V, page 106. MAINTENANCE OF CANAL CHANNEL The maintenance of the Canal Channel, its terminal harbors, the adjacent navigable waterways of the Panama Canal, and special improvement projects were accomplished during the year with two 15-cubic-yard dipper dredges and two suction dredges of 28and 10-inch capacity. Maintenance dredging totaling 3,144,200 cubic yards of material was performed in the Canal prism and harbors. A total of 20,700 cubic yards of mined material was removed from Mandinga Flare during the year. The material was used in the constniction of collision dikes at Piers 6 and 7 of the Thatcher Ferry Bridge. In addition to these activities, it became necessary to remove slide material moving into the Canal from the Cartagenita slide on the west side of GaiUard Cut at the south end of Cerro Paraiso. The dredge Mindi removed 19,200 cubic yards of material, and another 35,000 cubic yards were removed by dry excavation. In January 1965, removal of the precipitous material above this slide was begun. A dike is being constructed, with tliis spoil, across the Rio Grande River which will provide a large settling basin for the silt to be dredged from Gaillard Cut and Miraflores Lake. A summary of dredging operations for the fiscal year 1965 is shown in table 27, chapter V, page 106. ORIENTATION AND EXCURSION SERVICE During the year the Company provided two vessels, the launches Las Cruces and the Reina Manuelita I, for orientation and excursion service through the Canal. The launch Las Cruces, a 200-passenger vessel, made 414 trips, carrying a total of 41,082 passengers and the Reina Manuelita I carried 1,803 passengers on 103 trips in paitially transiting the Canal. The launch Anayansi was used on 37 trips in connection with inspections, aids to navigation, and Interoceanic Canal Studies.

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20 THE WATERWAY The Reina Manuelita I activity increased by 24 trips over fiscal year 1964, with an increase of 514 passengers carried; the Las Cruces made 4 less trips and carried 731 fewer passengers. For the dry season months, January to March, two launches were used for a total of 72 recreational trips.

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Chapter III SUPPORTING OPERATIONS In support of the maintenance and operation of the waterway and incident to the civil government of the Canal Zone, the Company conducts many auxiliary operations that are essential to the accomphshment of its basic mission. These include rail, ocean, and highway transportation; public-utility-type services, the operation of retail stores and housing for employees; and a wide variety of engineering, supply, and sei^vice functions. These services are also made available to the other Federal agencies in the Canal Zone and, to a limited extent, to the Republic of Panama. EMPLOYEE SERVICES Supply and Community Service Bureau The principal objectives and responsibihties of the Supply and Community Service Bureau consist of procurement of supplies and materials, and their storage; distribution and sales; operation of theaters, restam-ants, and bowling alleys; operation of living quarters for employees; care of public buildings; care of groxmds, collection and disposal of trash and garbage; the operation and maintenance of the Canal Zone cemeteries, and the operation of Summit Gardens, Nursery, and Zoo. SUPPLY DIVISION Retail Stores, Warehousing, Manufacturing and Allied Operations The retail stores, warehouses, and related operations make available food supplies, clothing, general household items, and other essentials to U.S. citizen employees and their famihes, to non-U. S. citizen employees residing in the Canal Zone, and to members and U.S. citizen employees of the Armed Forces. The retail stores in the Canal Zone include the operation of gasoline service stations. Manufacturing and processing plants include a bakery, a dairy and ice cream plant, and a laundry. Improved merchandising methods and reduction of operation expenses were pursued thi-oughout the year with a view to eliminating or combining functions to reduce manpower and labor costs with a minimum loss of service to customers. The Milk Products Unit used a total of 598,976 gallons of raw milk in the process of bottling fresh milk and 8,787 gallons in manufacturing other milk 21

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22 SUPPORTING OPERATIONS products. The 1,295-gallon daily average milk production this year is 1.7 percent higher than that of fiscal year 1964. The poUcy of purchasing surplus fresh milk from approved Panamanian dairies continued throughout the year at the rate of 3,000 quarts per day, 5 days per week. Milk purchased from Panama supphers this year* totaled 195,750 gallons, an average of 2,041 quarts daily for the year. Fifteen calves from the Mindi Dairy Farm were presented to Panama's Ministry of Agriculture for distribution to various 4-S clubs in November 1964. In April 1965, two calves were donated as prizes at the Chorrera Agricultural Fair, and, in June, five were donated to the Divisa School of Agriculture. Service center operations The service centers and Tivoli Guest House provide certain essential sales and recreational facilities for the employees of the Company/Government organization, their dependents and guests, as well as others authorized to receive Canal Zone privileges. These functions include cafeterias, soda fountains, guest accommodations; recreational activities such as theaters, bowling lanes and related activities; and merchandise sections. In addition, rental space is conveniently fiunished for the use of various licensee shops, which include barber, beauty, tailor, cobbler, and dressmaking establishments, and also union organizations. During the fiscal year continued eflForts were made toward maximum utilization of automatic food and beverage vending machines. At year's end 50 Company-owned machines were in operation and 19 were on hand pending installation. In addition, 23 machines were being operated in service center facilities by contractual agreement. Extensive renovation and improvement work was performed at the Tivoli Guest House. An additional 29 rooms were air conditioned. Dining rooms and other spaces were refvunished and redecorated to reflect as much as possible the historical backgi-ound associated with the Canal construction period. Storehouse branch The organizational xmits of this branch include administrative, stock management, warehousing, scrap, and salvage operations; excess disposal; and oflBce furniture and equipment pools. During the fiscal year, a continued program of improvements and operating economies, realinements and consolidations was pursued throughout the functional units of the branch. Rewarehousing of the consolidated Motor Transportation and Storehouse auto parts inventoiy in Motor Transportation Division areas was completed in August 1964. New procedures have eliminated much of the paperwork in this operation. This year sales of nonfeiTous metals approximating 494,000 pounds resulted in a gross margin of approximately $131,000. Bids were opened on June 25, covering approximately 7,000 tons of ferrous scrap; 5,480 tons were awarded to two bidders for approximately $113,200. Thirty-eight locks towing locomotives were converted to scrap during the year. The new elementary school located at Fort Davis was supplied with equipment and furniture during the first quarter of the fiscal year. Office furniture

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PANAMA CANAL COMPANY 23 for the new Gorgas Hospital in the amount of $46,000 was received in April and installed by the contractor. The remaining $14,000 of this special allotment will be obligated in fiscal year 1966. The first shipment of GSA furniture, specially packed for export, was received in excellent condition. PROCUREMENT DIVISION Efforts continued throughout the year to develop new resources in tlie South and Southwest to promote savings on inland freight and to permit maximum use of the Company's supply ship. The New Orleans Prociu-ement Office placed into effect the direct purchasing system. Under this system, resale and non-bid merchandise for resale that was heretofore purchased by the New Orleans oflBce is now purchased directly from the Isthmus by the Procurement Section of the Supply Division. COMMUNITY SERVICES DIVISION Employee housing An experimental program to determine the feasibility of preventive maintenance of employee quarters continued through the yeai*. A 5-year program to incorporate all employee quarters buildings into the program was budgeted to commence in fiscal year 1966. At year's end the transfer of responsibility for custodial service in all Canal Zone Schools from the Schools Division to the Housing Branch had been accomplished, to be effective July 1, 1965. As of June 30, 1965, there were 2,507 family units in operation in U.S. citizen communities, and 1,726 family units in Latin American communities. Nine additional quarters buildings, representing 32 apartments, were constructed in the Pedro Miguel townsite. There was no other new quarters construction during the year. Quarters presented for retirement consisted of 14 buildings containing 94 apartments, all in the Latin American townsites. TRANSPORTATION AND UTILITY SERVICES Railroad operations The Panama Railroad, connecting the terminal cities of Panama and Colon, provides transportation across the Isthmus for both passengers and freight. In addition, it furnishes industrial switching services to the major Company/ Government and Armed Forces warehouses and installations. The 47-mile mainline is suppoi-ted by 74 miles of sidings, yard, and industrial track. Freight and passenger stations, locomotive and car repair shops are maintained by the Railroad. It serves all Federal Government agencies on the Isthmus and is a common carrier serving commercial interests in the Canal Zone and the Repubhc of Panama. The Railroad also operates the Panama Local Agency which is responsible for the receipt, delivery, and forwarding of all railroad freight at the Panama City terminus. Substantial economies were achieved on the raikoad this year due to the abolishment of positions, consolidations, and overtime reduction. In fiscal year 1965 the Railroad. Division maintained the same high level freight workload as in the previous year. Canal Zone freight continued at a high level;

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24 SUPPORTING OPERATIONS however, the Repubhc of Panama freight over the hne dedined instead of increasing as anticipated. The drop in high-revenue freight is attributed to the slow economic recovery of business conditions in Panama following the civil disturbances in early 1964, and a longshoremen's strike of 2 months in the east and gulf ports of the United States. Passenger business declined from 695,000 in 1964 to 648,000 in fiscal yeai1965, a drop of 7 percent which was anticipated as transportation conditions resumed a more normal trend following the distinrbances in 1964. Freight hauled decreased veiy slightly, some 2,000 tons tmder the previous year. Freight services income improved 5.8 percent, or $65,000, over the fiscal year 1964 figure due to improved composition and ocean freight rate increases on through billed cargo eflfective the last 3 months of the fiscal year. Comparative workload and income statistics are shown in the following table: Fiscal year 1965 1964 Passengers carried 648,000 695,000 Revenue freight tons carried 196,000 198,000 Passenger service income $451,000 $505,183 Freight service income $1,143,000 $1,080,064 Switching and locomotive service income $87,000 $116,578 Net operating deficit $89,000 $19,779 Motor transportation This division operates consohdated motor vehicle repair shops and maintains a motor vehicle fleet for use of the Company/Government. Supervision is also exercised over a public bus transportation system operating in the Pacific area under franchise. Special operating economies resulted in a reduction of some $49,000 in labor costs over the year. Transportation workload increased slightly, with a 3-percent gain in total fleet mileage. Trans-Isthmian pilot runs that had been curtailed due to the civil disturbances were resumed, dirt hauling and a fleet increase contributed to the increase in mileage. A daily average of 2,638 schoolchildren of all grades were transported as compared with an average of 2,554 during 1964. To meet requirements for furnishing the wide variety of transportation services, the motor vehicle fleet was maintained at the 624 tmit level. Dxiring the year a total of 37 new replacement vehicles were received. Significant workload indices for the fiscal year in comparison with the previous year are given below: Fiscal year 1965 1964 Vehicles in service 624 595 Vehicle mileage 7,179,00 6,852,000 Trans-Isthmian freight hauled 13,049 12,925 Schoolchildren transported (average per day) 2,638 2,554 Repair shop services furnished others $814,393 $771,425 Operating margin (or deficit) ($6,700) $9,710 Water transportation operations This division operates one combination cargo-passenger steamship of 10,000 tons between the ports of New Orleans, La., and Cristobal, C.Z. This vessel is restricted to the carriage of U.S. Government cargo and passengers.

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PANAMA CANAL COMPANY 25 Cargo workload increased by 14 percent over fiscal year 1964, wliile passenger workload dropped by 2 percent under the previous year. Shown below is a statistical comparison of the fiscal years 1965 and 1964: Fiscal year 1965 1964 Number of completed voyages 27 27 Tons of freight carried 108,191 95,187 Average number of tons per voyage 4,007 3,525 Number of passengers carried 6,818 6,938 Average number of passengers per voyage 252 257 Operating margin $26,000 $12,000 Electrical power system The Panama Canal Company generates and transmits electric power for use of the Company/Government, Armed Forces, employees, and associate activities in the Canal Zone. It operates and maintains hydroelectric and thermal electric generating stations, substations, switching stations, and transmission lines and appurtenances. The workload of the Power Branch, which is reflected by the total gross power required to supply customer load, was 16.8 percent greater than that for 1964. This increase was provided for by increased operation of the system generating imits and increased purchases of power from Fuerza y Luz and the military. Due to a longer dry season and increased load, system thermal generation was 8.8 percent greater than in 1964. The total power generated during the year was 6.1 percent greater than in 1964. A peakload of 75,200 kilowatts, occurring on May 3, 1965, was the highest on record. Thermal generating plant operation was increased during the period December 7 through June 30 to permit reduced operation of the Gatun hydroelectric generators for dry season conservation of water in Gatun Lake, Full load 24-hour operation of the two new Miraflores gas turbines, and operation of the Cocoli, Agua Clara, and Coco Solo diesels as required to supplement this thermal electric generation was accomplished with the help of loaned labor and temporary employees. The new transmission line connecting the Panama Canal power system with that of the Compania Panameiia de Fuerza y Luz was energized on March 25, 1964. This interconnect was used during the dry season to receive power to assist in our dry season operation. A Service Schedule B was added to oiu: power exchange contract with this company to permit our purchase of their available surplus electrical energy. The combined generated output of the power system for fiscal year 1965 was 444,380,700 kilowatt-hours. A total of 438,442,118 kilowatt-hours was delivered to consumers as compared with 382,028,039 in the previous year. Further particulars on electric power generated are shown in table 28, chapter V, page 107. Seismology The seismological obsei-vatory at Balboa Heights is an important link in the worldwide network of seismological stations. Situated in one of the major earthquake areas of the world, its records are very much in demand. All original records, after preliminary analysis, are mailed to Washington, D.C., 11351 — 5

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26 SUPPORTING OPERATIONS for final interpretation by computer. There were 223 seismic disturbances recorded on the Balboa Heights seismographs during fiscal year 1965. Communications system The communications system consists of two main exchanges located in Balboa and Cristobal with small exchanges at Pedro Miguel, Gamboa, Gatun, and Coco Solo. Their respective distribution systems are connected by one trans-Isthmian trunk cable and a microwave radio commtmication system between Gamboa and Gatun. The system is independent of, but interconnected with, the systems in the cities of Panama and Colon, and the military exchanges on all militaiy reservations. The microwave facilities also provide radio communications service for the Federal Aviation Agency, Marine Trafiic Control System, Dredging Division, and Meteorological and Hydrographic Branch. At the end of fiscal year 1965, there were 9,820 telephones in service as compared with 9,400 telephones in use at the end of the preceding year, an increase of 420. Water system The Water Branch continued to supply all the filtered water requirements of the Canal Zone, including sales of water to vessels; Armed Forces installations; the cities of Colon, Panama, and Cativa; and suburban Panama in the Republic of Panama. The Pacific area water system produced a record quantity of water due to the continued growth of the subinrban Panama areas and increased Armed Forces activity within the Canal Zone. The total year's consumption for the combined Atlantic and Pacific areas was 2,146.4 million cubic feet, an increase of 4.3 percent over fiscal year 1964. Included in the water system organization is a laboratory unit which performs the necessary tests to assure the production and distribution of safe, potable water. In addition to this primary function, the laboratory unit also performs chemical, physical, and bacteriological tests for other Company/Government units and outside agencies. The following table shows the consumption of filtered water for municipal purposes and for sale to vessels for fiscal years 1965 and 1964: Fiscal year 1965 1964 (millions of cubic feet) Canal Zone (including Armed Forces) 668.6 637.5 City of Panama and suburban Panama 1,158.1 1,119.4 Cities of Colon and Cativa 295.8 276.0 Sales to vessels 23.9 25.7 Total 2,146.4 2,058.6 Vessel repairs A total of 467 vessels measuring 65 feet or over were repaired in the Company's shipyard during the fiscal year, accounting for 1,711 ship-days. Twenty-two vessels were drydocked during the year. Panama Canal Company and Canal Zone Government sources continued to provide the major portion of the division's workload throughout the entiie

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PANAMA CANAL COMPANY 27 year, with a slight increase percentagewise. The Company/Government operations and service requirements accounted for approximately 75 percent of the total volume. Work consisted mainly of the usual floating equipment overhaul and repairs in the Marine Bureau, the Dredging Division, and the Locks Division. Of this total, the Marine Bureau provided approximately 30 percent and the Dredging Division 35 percent. This year commercial work increased, particularly in the last quaiter. Repairs resulting from marine accidents in the Canal comprised a considerable amount of income for the fiscal year. In most cases repairs amounted to those necessary to enable the vessel to proceed to a port of call where finished, permanent repairs could be conducted. Revenues from commercial sources for ships repaired were $944,763.02 in comparison with $372,319 the previous year. No major overhauls for the U.S. Navy or for foreign naval vessels occurred during the year. Harbor terminals operation The prime functions of the harbor terminals operation are the movement of local cargo and in-transit cargo across the Panama Canal Company docks and piers at the ports of Cristobal and Balboa, and the performance of berthing services to accommodate vessels requiring bvmkers, water, stores, or to embark and disembark local or in-transit cruise passengers. The gross tonnage handled, transferred, and stevedored during the year amounted to 2,389,373 tons, some 5,000 tons under the volume in 1964. Transshipment cargo showed an increase of 12,128 tons over the previous year. Local incoming cargo decreased 1,800 tons due to a decline in cargo imported by the Republic of Panama (some 4,200 tons) oflFset in part by tonnage increases of Company/Government and Armed Forces cargo. Local outward shipments were down some 11,600 tons in 1965 due principally to decreased exports by the Republic of Panama. Comparative combined cargo movements in tons of cargo stevedored are as follows: Fiscal year 1965 1964 Combined cargo movements between ships and piers 1,172,357 1,173,130 On the piers 1,217,016 1,221,323 Total (revenue tons) 2,389,373 2,394,453 The marine bunkering operation, the other major fimction of this division, increased 1,280,165 bairels, or 3.6 percent over the previous year, 36,792,557 barrels being handled. This is the highest recorded workload experienced by the marine bunkering section. This increase is attributed chiefly to bunker deliveries to vessels, up 6 percent over 1964 volume. Bunkering requirements increased by 941,894 barrels, or 5.4 percent, resulting in increased receipts. However, the nvunber of tankers discharging decreased in 1965, four under the number discharging in 1964. Issues of petroleum products to the Republic of Panama decreased some 47,300 barrels in 1965 as a result of direct deliveiy of Panamanian consumer requirements from the new refinery located in Panama at Las Minas Bay.

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28 SUPPORTING OPERATIONS The following comparative workload data is furnished for fiscal years 1965 and 1964: Fiscal year 1965 1964 (barrels) Combined receipts (Cristobal and Balboa) 18,498,416 18,160,145 Combined issues (Cristobal and Balboa) 18,294,141 17,352,247 Total barrels of products moved 36,792,557 35,512,392 Tankers discharging (Cristobal and Balboa) 428 432 Vessels bunkering 4,579 4,416 Printing Plant The Printing Plant, located at La Boca, C.Z., on the Pacific side of the Isthmus, is a Government field printing plant under the regulations of the Joint Committee on Printing, Congress of the United States. Production continued its steady rise diu-ing fiscal year1965, the total measured in production units being 8.3 percent higher than in the previous year. This workload amounted to a total of 73,453,000 production units as compared v^dth 67,794,000 in 1964. Offset production continued to account for an ever-increasing share of the printing workload. This year's figures show offset printing was utilized for 78.6 percent of total production compared to only 31 percent 6 years ago when the long-range program for modernization of Plant equipment and conversion from letterpress to offset printing was inaugurated. PRINCIPAL ENGINEERING AND CONSTRUCTION PROJECTS Canal widening at Las Cascadas-Bas Obispo Reaches The widening of the Canal continued during the year by contract excavation. This is one of several projects aimed at increasing the capacity of the Canal by expediting the movement of ships in transit and is concerned with increasing the width of the usable channel in Gaillard Cut from 300 to 500 feet. During the past 11 years approximately two-thirds of the 8-mile-long Gaillard Cut has been widened. The contract for the removal of the softer overbiu-den materials above elevation 95 feet from the widened area of Las Cascadas-Bas Obispo Reaches to Mandinga River was completed early in fiscal year 1965. A total of 5,585,337 cubic yards was removed at a cost of $0,448 per cubic yard. The remaining work required to complete the widening of Gaillard Cut consists of the removal of 3,870,000 cubic yards of Zone I (i.e., material above elevation 90), and 7 million cubic yards of Zone II (below elevation 90 subaqueous) material. If the extra 5-foot-depth design is used, there will be an additional 650,000 cubic yards of this Zone II material. Trinidad Dam At the close of fiscal year 1965, a restudy was being made of the conti'act schedule for accomplishment of this project along with the widening of the Canal through Las Cascadas and Bas Obispo Reaches. Studies were also underway for relocation of the Guacha-Tern portion of the dam with redesign of the embankment so as to reduce the quantity of high cost crushed rock for

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PANAMA CANAL COMPANY 29 the filter blanket. During September and October, doubt arose as to the eventual accomplishment of this project, and no further work was perfonned in the study. In Jvme 1965, the Company terminated the contract with consultants, on the basis that the project was indefinitely deferred. Islew locks towing locomotives and cranes Manufactvire and deliveiy of the locomotives has proceeded about 2 months ahead of schedule. Fifty-eight locomotives and two cranes were in service as of May 1965, and the remaining locomotive and No. 3 crane were shipped from Japan about June 20, 1965. The new locomotives were installed on both lanes of Pedro Miguel Locks as of September 19, 1964, and the installation of new machines at Miraflores Locks was completed January 30, 1965. In general, the new towing locomotives have performed very satisfactorily. They have noticeably speeded up lockages because of their power and speed advantages over the old machines. Delays to lockages because of locomotive troubles have been almost negligible. Under a supplemental agreement with the manufacturer, four of the original test macliines are to be modified, and a change order was executed for additional locomotive spai^e parts. The old locomotives and cranes were retired from service and scrapped. Four locomotives were retained for display and two were donated to the National Museum of Transportation and the American Museum of Electricity. Gorgas Hospital construction The new Gorgas Hospital building was completed and put in service dm'ing fiscal year 1965. Alterations to the existing plant, and this new 8-story, air-conditioned hospital building were begun in fiscal year 1962 with the object of consolidating all Gorgas Hospital activities into four buildings connected by two pedesti-ian bridges and a tunnel. The final phase of the construction of the addition, from April 9 to completion on October 19, 1964, was performed imder a negotiated contract with the approval of the bonding company after the failure by default of the original contractor. Liquidated damages, covering 183 days' default, in the amoimt of $91,500, was assessed against the defaulted contract. Locks engineering This continuous engineering program is to provide improvements to locks operations. During the year the Corps of Engineers in Buffalo was invited to inspect the Panama Canal Locks and recommend the feasibility of modernizing the locks control equipment and/or improving the locks operating procedure. An oflBcial report of their recommendations is to be submitted. The contract for installation of center wall turntables to turn the new locomotives end to end was completed as well as the construction of nine repaiishelters to be used with the new macliines. In the 24-hour-outage overhaul concept a redesign of the cofferdam became necessary as the result of an unsuccessful attempt at dewatering. Sketches and drawings were prepared to show rising stem and cylindrical valve overhaul schemes.

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30 SUPPORTING OPERATIONS Expansion of electrical power system This program, begim in 1961, is designed to provide a system of approximately 100 megawatts by 1980. In fiscal year 1963 two gas-driven turbine generators were installed at the Miraflores Power Plant to enlarge the capacity of this facility. Upon receipt of plans and specifications for tanks, control room structures, and the electrical and mechanical installation of work, the awarding of all major contracts for work on this project was begun. Contracts for the installation of the steamplant, the turbine generator, the circulating water system, the fuel storage system, the electrical-mechanical system, the 44-kv. switchyard, and for miscellaneous building construction were in progress at the end of this fiscal year. The turbine, generator and condenser were located in place. The turbine control room addition was approximately 50 percent complete; the boiler 60 percent complete; the construction of the new tanks approximately 20 percent complete, and the circulating water system construction work was 35 percent complete. Designs were prepared for two oil storage tanks of 54,165-barrel capacity and others were started for the interconnection with Panama power system, Adantic area. Plans and designs were developed to include additional power service to Foil Kobbe, and install new oil circuit breakers, switchgear units, and related appurtenances at other important locations. Water system improvements The work of installing a 20-inch waterline from Balboa to Chorillo Hill and from Balboa Pump Station to the National Avenue manifold in Ancon was completed during the fiscal year. This work is part of the program aimed at increasing the potable water supply of Panama City. New pumps are being installed under contract at the Paraiso Raw Water Pump Station. These will aid the greatly increased demands upon the Canal Zone water system. Operations and capital construction by contract New contracts awarded in fiscal year 1965 were lower by $621,100 than those awarded the previous year. Sixty-three conti-acts covering capital construction (exclusive of architect-engineering contracts) were awarded for a total of $5,335,800. Total work accomplished on all capital construction during fiscal year 1965 amounted to $10,781,300. Major capital items contracted for during the year were electricalmechanical installations for Miraflores Power Plant, $832,500; construction of building "E" for Curundu Junior High School, $441,200; masoruy, tile, and ceilings for Cumndu Junior High School, $335,300; air conditioning Curundu Junior High School, $292,600; furnishing and erecting storage tanks at Miraflores, $274,400; constiuction of 44-kv. switchyard at Miraflores, $226,900; electrical work for Curundu Junior High School, $219,600; additional power service for Howard Air Force Base, $204,800, and approach and exit ramps for Thatcher Ferry Bridge, $183,700.

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PANAMA CANAL COMPANY 31 Other projects Seven other contracts for account of the Company/Government awarded for over $100,000 each were construction of play slabs for elementaiy schools, $182,200; miscellaneous buildings and structures for Miraflores Power Plant, $178,800; alterations and additions to Balboa Post Office, $134,200; replacement of refrigeration equipment in Cold Storage Plant, Balboa, $119,000; technical and procurement services and procurement of equipment and materials in connection with re-powering of tug, Arraijan, $115,800; floor coverings for Curundu Junior High School, $113,100; and air conditioning elementary school at Balboa, $107,100.

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Chapter I V ADMINISTRATION PERSONNEL ADMINISTRATION A plan to reorganize the Canal Zone Civilian Personnel Policy Coordinating Board was implemented this fiscal year and resulted in a far smoother relationship between the Panama Canal Company/Canal Zone Government and Department of Defense agencies in the Canal Zone on persormel matters. In past years, the Board consisted of a member from the Canal agencies, a member from U.S. Southern Command, and members from each of the local Army, Navy, and AiiForce organizations. A plan to reconstitute the Board to consist of a representative of the Canal organization and a representative of the local Department of Defense agencies was approved by the Secretan' of the Army on October 8, 1964. The new organization has been eminently more satisfactory in terms of meeting the Canal agencies' special needs and facilitating interagency cooperation. The third phase of the three-phase Canal Zone Wage Adjustment Program initiated in Api-il 1962 and the Annual Review of Manual Category positions based on changes in wages in the nine Naval shipyards in the United States resulted in increases for all employees in the Manual category and for other employees, particularly those on a Canal Zone wage base. In February 1965, the Board of Directors considered a long-range staflSng program to resolve problems likely to be faced by the Canal organization by retirement attrition of skilled and professional employees during the next 15 years whether or not any decision is made to proceed with the construction of a sea level canal. In July the Board approved a plan submitted by the Governor to meet long-range staflBng needs. The program proposes three basic methods of meeting the Canal's long-range staffing needs: (1) a largescale, wide spectrum management, professional, and clerical trainee program; (2) the development of apprenticeships in several new occupational areas, and (3) a significant expansion of the current apprenticeship program. Probably the most important personnel management problem in fiscal year 1965 was the reduction and freezing of the 25-percent tropical differential which had been added to U.S. citizen employees' pay since 1914. The amoimt of the differential was reduced to 15 percent and its applicability amended to cover only heads of household. U.S. citizen employees who were on the rolls 33 11351 — 6

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34 ADMINISTRATION of Canal agencies on the effective date of the change in the regulations had the dollar amount of their differential fixed at the amount of differential they were receiving on July 20, 1964. This reduction and freezing action of the differential and the limiting of application to heads of household had a significant impact both on employee morale in the entire Canal organization and on pay administration in the Personnel Bureau. During fiscal year 1965 two important items of employee legislation were developed for submission. The first (H.R. 5990), amends the Cash Relief Act of 1937 to increase the gratuity paid non-U. S. beneficiaries by $10 a month to a maximum pension of $65 per month. The bill also would provide widows of disability relief beneficiaries with a pension amounting to half that which would be received by their husbands if still hving. At the close of the fiscal year, this bill had passed the House of Representatives and was pending in the Senate. The second legislative proposal would allow the U.S. Government to participate as an employer in a group health insurance program for non-U. S. citizen employees and retirees of U.S. Government agencies in the Canal Zone. At the close of the fiscal year this proposed legislation was still being reviewed by the Bureau of the Budget. The Government Employees Salary Reform Act of 1964 provided for upward adjustments in salaries of General Schedule and Postal employees continuing the principle of comparability of pay between government and private industry established by the Federal Salary Reform Act of 1962. The act was administratively implemented in the Company/Government on August 21, 1964, effective retroactively to July 5, 1964. The implementation of the Dual Compensation Act, Public Law 88-448, enacted August 19, 1964, was approved by the Governor to be effective December 1, 1964. This act was designed to simplify, modernize, and consolidate the laws relating to the employment of civilians in more than one position and the laws concerning the civilian employment of retired members of the imiformed services. The act places a limitation on the amount of military retired pay certain retired regular ofiicers may receive while employed as civilians in the Federal Government without reduction in their civilian pay. MAJOR ORGANIZATIONAL CHANGES There were no major organizational changes in the Panama Canal Company during the fiscal year. w MAJOR PERSONNEL CHANGES Mr. Theodore C. Renter was promoted to Chief Hydrographer, effective July 5, 1964, vice Mr. W. Houston Esslinger, retired. Mr. Frank H. Lerchen was reassigned to Assistant Engineering and Construction Director effective July 19, 1964, vice Mr. Edward M. Browder, Jr., retired. Lt. Col. Walter W. Fade, USA, was detailed from the U.S. Army as Planning Engineer (Canal Studies) and Assistant to the Director, Engineering and

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PANAMA CANAL COMPANY 35 Construction Bureau, efiFective August 2, 1964, vice Lt. Col. William R. Wray, USA. Mr. Charles McG. Brandl was reassigned as Chief, Construction Division, efiFective September 6, 1964, vice Mr. Harold H. Feeney, retired. Mr. Ernest W. Zelnick was promoted to Designing Engineer, vice Mr. Frank H. Lerchen, reassigned, and Mr. Daniel M. Eggleston was promoted to Assistant Designing Engineer, vice Mr. Ernest W. Zelnick, efiFective November 22, 1964. Mr. John E. Fisher was designated as General Auditor efiFective November 22, 1964. Mr. Lawrence L. Jenrich was designated as Chief Accountant efiFective November 22, 1964. Mr. Thomas H. Scott was designated as Chief, Systems Staff, efiFective November 22, 1964. Mr. Elmer G. Abbott, Captain of the Port (Balboa) , retired on December 21, 1964. Mr. Robert Lessiack was promoted to Assistant Comptroller (Chief, Budget and Rates) effective January 3, 1965, vice Mr. LeRoy B. Magnuson, retired. Mr. Olen A. Dietz retired as Supervisor)' Maintenance Engineer (Atlantic) effective March 29, 1965. Mr. F. R. Johnson was promoted to Management Analysis Ofificer (Assistant Chief, Executive Planning Staff) effective April 11, 1965, vice Mr. Thomas E. Burrow, resisined. Mr. Carl J. Browne was promoted to Supervisory General Engineer (Assistant Engineering and Construction Director) effective May 2, 1965, vice Mr. Frank H. Lerchen, retired. Mr. Howaid W. Osbom was promoted to Supervisory Maintenance Engineer effective May 10, 1965, vice Mr. Carl J. Browne, promoted. FORCE EMPLOYED AND RATES OF PAY The full-time force employed by the Panama Canal Company on the Isthmus of Panama as of June 30, 1965, totaled 11,284, an increase of 3 over the number employed on June 30, 1964. The full-time U.S. citizen force of the Panama Canal Company on the Isthmus numbered 2,305 on June 30, 1965, as compared with 2,364 on June 30, 1964, a decrease of 59, or 2.5 percent. The full-time non-U. S. citizen force totaled 8,979 as of June 30, 1965, as compared to 8,917 on June 30, 1964, an increase of 62, or 0.7 percent. The decrease in Company force from 1964 to 1965 resulted largely in the operating units due to reorganizations, reductions in workload, and force ceiling restrictions. The greatest decreases were reflected in the Marine Bureau and the Transportation and Terminals Bureau. In addition to employees on the Isthmus there were 156 U.S. citizens employed in the Washington and New Orleans ofiBces on June 30, 1965. Of the 156 in the United States, 4 were in the Washington ofiBce, 24 in the New Orleans ofiRce, and 128 oflficers and crew on the SS Cristobal. Employments aie made under the Canal Zone Merit System, established by the Canal Zone Wage and Employment Practices Act, 1958, Public Law 85-550 (72 Stat. 405.11 now Canal Zone Code, Tide 2, Section 149) assuring

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36 ADMINISTRATION equal oppoitunity for citizens of the United States and Panama to obtain employment in all Canal Zone U.S. Government agencies, in all nonsecurity positions for which they qualify. Since the Canal Zone Wage Plan was placed in effect in February 1959, there has been considerable emphasis placed on training and utilization of qualified non-U. S. citizen employees in U.S. -based, higher-paying positions. Since that date, the number of non-U. S. citizens in U.S. -wage-base positions has increased from 144 to 980, an increase of 836, or approximately 600 percent. Rates of pay are established regardless of citizenship on a Canal Zone wage base for occupational categories which can be filled by recruitment on the Isthmus and on a U.S. wage base for those positions which would nonnally be recruited from the United States. The current Canal Zone Wage Plan contains the following job groups: Non-manual category— white collar positions, including clerical, professional, and administrative type jobs. Maniml categonj—blue coUar workers, including laborers, semi and skilled craftsmen, and related supervisors. Special category, administrative— includes teachers, policemen, firemen, postal workers, pilots, and miscellaneous and fee rate group. Special category, wage fooard!— includes floating equipment, power branch, printing plant, raihoad, apprentices, and leamership group. Company /Government rate growp— includes positions excluded from the Canal Zone Pay Plan, such as executives, hospital, military, and employees in the United States. FULL-TIME EMPLOYEES PAID AT U.S. WAGE BASE^ For several years increasing emphasis has been placed on providing employment and promotion opportunities in higher paid positions to. non-U. S. citizens. Since February 1959 the number of non-U. S. citizens in U.S. -base positions has increased from 144 to 980, an increase of approximately 600 percent. During fiscal year 1965 an increase of 121 such employments occurred. Turnover in full-time U.S. citizen Isthmian force During fiscal year 1965 there were 501 full-time terminations of U.S. citizen employees (including 7 military) for whom replacement employments were made. In addition, there were 27 U.S. citizen full-time employees added to the force. Terminations show a decrease of 40, or 7.4 percent, under the 541 occurring in fiscal year 1964. Turnover in full-time non-U. S. citizen Isthmian force Exclusive of student assistants, 1,024 full-time employees were terminated in the non-U. S. citizen group. All of these were replaced and there were 194 additional employments. Recruitment Of the 538 U.S. citizen full-time accessions in fiscal year 1965, only 91, or about 17 percent, were recruited from the United States, and 447, or 83 percent, ' Statistics in this section cover both Panama Canal Company and Canal Zone Government employees.

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PANAMA CANAL COMPANY 37 were recruited locally. All of the 1,191 full-time non-U. S. citizen employments were local recruitments. These additions to tlie force for fiscal year 1965 represent an accession rate of 14 percent for U.S. citizens and 12 percent for non-U. S. citizens. The 91 employees recruited in the United States included 22 teachers for the U.S. schools system, 12 interns and hospital residents, 18 skilled craftsmen, and 39 medical and professional employees not available from Canal Zone or Panama sources. At the close of the fiscal year, there were 15 U.S. requisitions pending for which selections had been made and 29 vacancies pending for which no selection had been made. The 29 vacancies for U.S. recruitment included positions for teachers, nurses, skilled craftsmen, pilots-in-ti-aining, and pharmacists. Pay adjustments Virtually all employees of tlie Panama Canal Company /Canal Zone Govenrment received salary and wage increases during fiscal year 1965 in six different wage adjustments, and the third phase of the three-phase Canal Zone base adjustment. The total annual cost to the Company/Government of these adjustments will be approximately $3,369,976. This figure includes 6.5 percent added for retirements costs. In comparison, the annual cost of pay increases in fiscal year 1964 amounted to approximately $4,400,000 including retirement costs. Cash relief for disabled employees Effective October 5, 1958, with the implementation of section 13 of Public Law 85-550 placing non-U. S. citizen employees under the Civil Service Retirement Act, the Cash Relief Act of 1937 as amended was discontinued prospectively. Beneficiaries on the Cash Relief Act rolls prior to that date continue to draw Cash Relief Act benefits. During fiscal year 1965 monthly payments for cash relief averaged $140,328 ($130,256 in the Company and $10,072 in the Government). In fiscal year 1964 monthly payments averaged $150,713, about $10,385 more per month. The total average monthly payment per case remained about $48. Dvu-ing fiscal year 1965 there were 252 removals from the rolls due to death, 221 for the Company and 31 for the Government. The number of cash relief beneficiaries as of June 30, 1965, was 2,825 (2,612 for the Company and 213 for the Government) . Now pending in Congress is bill H.R. 5541, which would increase the maximum cash relief benefit from $55 to $65 per month. This would produce a new average payment of $58 per month. Included in the bill is a provision which would entitle widows of cash relief annuitants to an annuity equal to one-half the rate which the husband would receive if he were alive. This bill has passed the House of Representatives and is still pending in Congress. During fiscal year 1965 there were no former employees eligible for repatriation under this program.

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38 ADMINISTRATION INCENTIVE AWARDS! The Incentive Awards Program for the Panama Canal Company/Canal Zone Government is designed to encourage, recognize, and reward employees at all levels for their constructive ideas and meritorious job performances which result in increased efficiency and economy of operation. This fiscal year 770 employee suggestions were submitted within the agency, a decrease of 266 under the 1,036 submitted in 1964. During the year awards were approved for 180 beneficial suggestions which were adopted. Benefits were estimated to amount to about $54,790 for these employee suggestions. Cash awards totaling $43,745 were made for adopted suggestions and 207 performance recommendations. Tangible benefits increased from $454,565 in fiscal year 1964 to $698,248 this year. Some 212 honorary award nominations were received during the fiscal year, in compaiison with 150 award recommendations in fiscal year 1964. In addition, a Superior Service Award was granted one employee for initiative that resulted in an estimated tangible benefit of $360,000. In observance of the lOth-anniversary year of the Incentive Awards Program, seven special Presidential certificates were granted to individuals for their beneficial suggestions resulting in tangible benefits estimated at $141,683. Prompt processing of all suggestions has been an aid in this program. Extensive written and pictorial publicity has been secured in Company publications and in Panama newspapers in both languages, and the presentation of a series of 35-mm. slides during employee discussions on the program were utilized to advantage. SAFETY PROGRAM 1 The principal duties of the Safety Branch are to supervise and promote the application of safety measures in all units of the Panama Canal Company and the Canal Zone Government, and to develop and improve accident prevention programs for those organizations, including the coordination of occupational health, sanitation and fire prevention activities with the overall accident prevention program. Dm-ing the year full-time safety supervisors and safety inspectors, responsible for handling safety matters in the Marine, Engineering and Construction, Transportation and Terminals, and Supply and Community Services Bureaus, continued theii' activities. The Office of the Comptroller, Personnel, Civil Affairs, and Health Bureaus utilized the services of employees assigned as part-time safety assistants, in addition to their other duties, for handling safety measures. Membership was continued in the Consejo Interamericano de Seguridad, the Latin American counterpaii; and affiliate of the National Safety Council. Such membership enables the Company/Government to maintain better safety communication with non-English speaking or reading employees who are more interested and responsive to such materials when provided in their native language. I Statistics in this section cover both Panama Canal Company and Canal Zone Government employees.

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PANAMA CANAL COMPANY 39 The highlight of the year in safety activities was President Johnson's inaugui-ation of Mission Safety 70 on February 16, 1965. The goal of the Mission is to reduce by 30 percent the number of disabling injuries to Federal workers. It is his desire that this goal be reached by 1970. In compliance with requirements of the program, a detailed report of a careful and critical review of the Panama Canal Company/Canal Zone Government safety program was forwarded to the President on May 10, 1965. As a result of the review it was found that significant weaknesses in the execution of the program existed, and in an effort to minimize or eUminate such weaknesses several additional safety requirements were established in memorandum of May 24, 1965, to all operating bureau directors. The existence and goal of Mission Safety 70 has been widely publicized to all employees and supervisors. The program will receive continuing emphasis until the goal is reached. Personnel of the Safety Branch and the Health Bureau are conducting a feasibility study regarding the first-aid treatment of industrial injuries and occupational diseases by a separate clinic or industrial health dispensary. The Industrial Health Branch presently staffed by four physicians appears to be the logical organization to head up and provide such treatments and the stLidy is being conducted with this objective in mind. During tlie year, the Chief, Safety Branch, as Chairman of the ad hoc committee appointed by the Governor/President to investigate the need for and to develop suitable safety regulations to protect the health and safety of all longshoremen employed aboard vessels in Canal Zone waters, completed and submitted such regulations to the Office of tlie General Coimsel. They were published on June 28, 1965, as General Order No. 32, Regulations Governing Stevedoring. The Governor/President Safety Trophy, awarded each calendar year to the bureau achieving the highest percentage improvement in disabling injury frequency rate over its own previous 3-year average, was not awarded this year since no bureau met the requirements. During the first half of the fiscal year the accident rate continued higher than nonnal as it also was during the last half of the preceding fiscal year. However, improvement was shown in the last half of this fiscal year with the number of accidents for the January-June period totaling 86 as compared to 112 for the JanuaryJime 1964 period. Outstanding safety achievements were as follows: the Canal Zone Division of Schools earned its ninth consecutive annual award for 100-percent participation in the National Safety Council School Safety Program which requires a comprehensive and highly successful safety program throughout the Canal Zone school system; and the Supply and Conmiunity Service Bureau earned the National Safety Council's "Award of Merit" for outstanding safety achievement for the period February 10, 1965, to May 23, 1965. Three fatalities occurred during fiscal year 1965, two in the Transportation and Terminals Bureau, and a third in the Dredging Division. The fatality rate this year is equivalent to 1 accidental death for ever)' 4,811 employees, as compared to the national average of 1 death for every 4,662 workers employed, as reported for calendar year 1963 by the National Safety Coimcil. There was

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40 ADMINISTRATION one mjuiy causing permanent partial disability as compaied with five injuries last year and there were no permanent total disability cases this fiscal year. This year's disability injury frequency rate of 6.08 represents an 18-percent decrease over last year's rate of 7.42. This is the 10th consecutive year that the Company/Government frequency rate remained below the national all-industry average, which in 1964 was 7.94, as reported by the National Safety Council. This year's disabling injury severity rate of 728 represents a 55-percent increase over last year's rate of 469. While the total number of disabling injuries were fewer than in the previous year, the fact that there were three fatalities as against one in the previous year accounts for the increase in the severity rate. Federal property damages were reported in the amount of $52,275 this yearcompared to $52,161 last year. Safety Statistics Fiscal year 1965 1964 Employee-hours of exposure 29,125,244 28,850,835 Disabling injuries 177 214 Injuries causing permanent partial disability 1 5 Injuries causing permanent total disability Frequency ratei 6.08 7.42 Severity rate^ 728 469 Number of fatalities 3 1 Days charged 21,213 13,521 1 Disabling injuries per million employee-hours of exposure. 2 Severity rate is the time charged in days, per milhon employee-hours of exposure.

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Ckaptex V FINANCIAL REPORT AND STATISTICAL DATA FINANCIAL STATEMENTS AND RELATED SUPPLEMENTARY REPORTS FOR THE YEAR ENDED lUNE 30, 1965 The financial statements of the Panama Canal Company appearing as tables 1 through 10, with the accompanying notes, present the financial position of the Company at June 30, 1965, and the financial results of its operations for the fiscal year then ended. All statements have been examined by the Ceneral Auditor of the Panama Canal Company and are subject to audit by the Ceneral Accounting OflBce. Detailed audit reports of the Ceneral Accounting OflSce are directed to the Congress and are presented as congressional documents. A brief financial review can be found on page 5 of the introduction. Supplementary information concerning funds, operating results, payments to the U.S. Treasury, net direct investment of the U.S. Covemment, and retained revenue is presented in the tabulations and comments which follow. Equity of the U.S. Government The net direct investment (interest-bearing) of the U.S. Covemment in the Panama Canal Companv was increased in excess of $1 million during the year primarily as the result of the reversal of excess valuation allowances for (1) early retirement of 25-cycle plant, $751,150, and (2) possible loss on obsolete and excess stocks, $337,269. Retained revenue was charged with $655,000 of abandoned construction projects, the costs of which were incurred in prior years. Capital Expenditures Company capital expenditures amounted to $10.6 million. The budgeted estimate for the vear was $12.5 million. Expenditures in the transit operations exceeded $4 million, the principal expenditure being $2.6 million for locks towing locomotives. A total of $2.4 million was expended for purchase and installation of a steam turbine-generator for the electric power system. 41 11351 — 7

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42 FINANCIAL REPORT AND STATISTICAL DATA Table 1.— Comparative Statement of Financial AsseU 1965 1964 CxjRRENT Assets: Fund balances with U.S. Treasury and cash: Fund balance in U.S. Treasury checking account $1,439,237 $3,837,620 Cash in commercial banks, on hand, and in transit 4,787,148 5,488,425 6,226,385 9,326,045 Accounts receivable: Canal Zone Government and other U.S. Government agencies 3,481,936 1,652,034 Republic of Panama 2,391,330 2,264,277 Other 2,297,340 1,967,761 8,170,606 5,884,072 Inventories ( note 1 ) : Materials and supplies (principally at standard cost) less allowances for excess, obsolete, and inactive stocks of $602,538 in 1964 7,221,165 6,412,868 Merchandise held for sale (at average cost)3,821,349 4,479,927 11,042,514 10,892,795 Other current assets 173,008 133,930 Total current assets 25,612,513 26,236,842 Fixed Assets (note 2): Cost 662,700,296 658,591,459 Less depreciation and valuation allowances 198,544,696 198,103,928 464,155,600 460,487,531 Thatcher Ferry Bridge: Capitalized construction costs 19,059,518 18,751,069 Less allowance for depreciation 998,499 690,374 18,061,019 18,060,695 Fund balance with U.S. Treasury 138,427 1,315,340 18,199,446 19,376,035 Deferred Charges and Other Assets 652,422 696,118 508,619,981 506,796,526 Automatic Data Processing A major change in accounting technique was inaugurated on April 1, 1965, with the installation of a computer. The first phase, now on the computer, is that of inventory control. Systems studies in process will shortly result in use of the computer for payroll and personnel procedures. NOTES TO FINANCIAL STATEMENTS 1, Inventories. Inventories of operating materials and supplies are stated principally at standard cost. Inventories of merchandise for sale are stated at average cost using the retail method for valuation. Allowance for excess, obsolete, and inactive materials and supplies amounted to $802,538 at June 30, 1964. During fiscal year 1965 this allowance was charged with $265,000 for losses on excess, obsolete, and inactive stock. The

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PANAMA CANAL COMPANY ^ Condition June 30, 1965 and 1964 Liabilities and equity 1965 Current LiABrLixiES: Accounts payable: U.S. Government agencies $2,375,019 Other 3,566,421 5,941,440 Due U.S. Treasury 2,010,493 Accrued liabilities: Employees' leave liability 11,317,778 Salaries and wages 1,486,317 Claims for damages to vessels 618,180 Other 1,081,919 14,504,194 Other current liabilities 958,448 Total current liabilities ._. 23,414,575 Reserves: Overhaul of locks '. ^ 1,559,862 Maintenance of channels Non-capital power conversion costs 178,080 1,737,942 Equfty of U.S. Government (note 3): Net direct investment, interest-bearing 329,830,278 Retained revenue, non-interest-bearing 135,437,740 Thatcher Ferry Bridge, non-interest-bearing 18,199,446 1964 $1,615,239 4,030,337 5,645,576 1,904,532 10,369,027 1,733,976 252,750 863,085 13,218,838 861,117 21,630,063 2,020,548 49,230 178,080 2,247,858 328,812,302 134,730,268 19,376,035 483,467,464 482,918,605 508,619,981 506,796,526 The accompanying "Notes to Financial Statements" are an integral part of this statement. balance was closed out to the Company's interest-bearing investment. In the future, inventory losses, if any, will be charged to operations. 2. Fixed assets. Fixed assets generally are stated at cost, or if acquired from another Government agency at original cost to such agency. Valuation allowances have been established in accordance with sections 62 and 412 of title 2 of the Canal Zone Code (1) to offset the cost of defense facilities and suspended construction projects— principally the partial construction of a third set of locks abandoned in the early part of World War II— totahng $89.7 million (both the cost and the valuation allowances have been excluded from the statement of financial condition) and interest dming original construction aggregating about $51 million and (2) to reduce to usable value the cost of those fixed assets transferred to the Company from The Panama Canal (agency) at July 1, 1951. Because of historical practice and a construing of the Canal

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44 FINANCIAL REPORT AND STATISTICAL DATA Zone Code as not requiring the depreciation or amortization of certain assets, depreciation or amortization allowances have not been provided on titles, treaty rights, and excavations of channels, harbors, basins, and other works costing about $310 million. If these assets were depreciated at the rate of I percent per annum, there would be an annual charge against operations of approximately $3 million. Depreciation allowances on all other fixed assets are accumulated on a straight-line basis. 3. Equity of the U.S. Government. The equity of the U.S. Government in the Company consists of the net direct investment, established in accordance with section 62 of title 2 of the Canal Zone Code, and the retained revenue. The Company is required to pay interest to the U.S. Treasury on the net direct investment at a rate established by the Secretary of the Treasury. The rates for 1965 and 1964 were, respectively, 3.457 and 3.328 percent. The act of August 25, 1959 (73 Stat. 428), amended section 71 of title 2 of the Canal Zone Code to provide the Company with authority to borrow funds from the U.S. Treasury not to exceed $10 million outstanding at any time at interest rates to be determined by the Secretary of the Treasury. The act of July 23, 1956 (70 Stat. 596), directed the Company to construct, maintain, and operate a high-level bridge across the Canal at Balboa, for which funds were appropriated. Because of national policy the costs of construction and of maintenance and operation are to be treated as extraordinary costs and are not to be related to the operations of the Company. Maintenance of the bridge for the year amounted to $232,668, the cost of which was financed from Company cash and the Company's interest-bearing investment reduced accordinglv as authorized by law. Beginning with fiscal year 1966, the Company will be required to absorb the cost of maintenance and depreciation on the bridge by general provision included in the 1966 Public Works Appropriation Act. 4. Contingent and other liabilities. The Company is contingently liable with respect to certain pending suits and claims. In addition, the Company has outstanding at all times certain liabilities of indeterminable amounts which are recognized in the accounts on an as-paid basis. These liabilities include, principally, monthly relief benefits payable to retired alien employees; repatriation costs earned by certain employees; benefits payable under provisions of the Federal Employees Compensation Act; and commitments for construction work, supplies, and services. The maximum liability which could result from outstanding claims and lawsuits is estimated to be $2.7 million. The relief payments to be made to retired alien employees in fiscal year 1966 are estimated at $1.5 million. Repatriation allowances are payable to certain employees who, after completion of two years of service, are entitled to such allowances upon termination of their employment. The maximum liability for payment of repatriation at future dates is estimated not to exceed $6 million. Commitments under uncompleted construction contracts and unfilled purchase orders amounted to $5 million at June 30, 1965. The Company held at June 30, 1965, negotiable U.S. Government securities and Republic of Panama securities in the face amount of $1,950,000 deposited

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PANAMA CANAL COMPANY 45 by customers and Panamanian insurance firms to guarantee contract perfomiance and payment of tolls and other charges and, on behalf of the Canal Zone Government, negotiable securities in the face amount of $543,500 to guarantee payment of possible judgments against insurance companies operating in the Canal Zone. Table 2.— Comparative Statement of Revenue and Expenses, Fiscal Years Ended June 30, 1965 and 1964 Revenue: ^9®^ ^^®^ Tolls $65,502,769 $61,146,998 Credit for tolls on U.S. Government vessels 1,651,890 1,399,393 Commodities sold 24,310,613 23,281,107 Service sales and rentals 29,735,045 27,219,173 121,200,317 113,046,671 Operating Expenses and other Costs: PayroU and related costs 62,807,256 58,785,601 Material and other operating expenses 11,396,153 9,375,310 Cost of commodities sold 16,589,731 15,953,752 Depreciation 5,948,495 5,524,986 Net cost of Canal Zone Government 18,443,466 16,300,215 Interest on net direct investment of U.S. Government 11,375,288 10,950,382 126,560.389 116,890,246 Less payroll and other costs transferred to Company capital projects and Canal Zone Government programs 7,754,299 6,504,886 Total operating expenses and other costs 118,806,090 110,385,360 Net revenue before recognition of loss on disposition of fixed assets 2,394,227 2,661,311 Deduct loss on disposition of fixed assets 851,788 499,406 Net Revenue $1,542,439 $2,161,905

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46 FINANCIAL REPORT AND STATISTICAL DATA Table 3.— Statement of Changes in Equity of the U.S. Government, Fiscal Year Ended June 30, 1965 Net direct Retained revenue, Thatcher Ferry investment, non-interestBridge, noninterest-bearlng bearing interest-bearing Equity at July 1, 1964 $328,812,302 $134,730,268 $19,376,035 Additions: Net revenues 1,542,439 Reversal of excess valuation allowances for: Early retirement of 25cycle plant 751,150 Loss on obsolete and excess stock 337,269 Reactivation of plant 103,248 Loss on retirement of 25cycle plant charged to operations in prior years, instead of valuation allowance established therefor70,571 Property transfers, other U.S. Government agencies, net58,977 330,062,946 136,343,278 19,376,035 Reductions: Abandoned capital construction projects 654,982 Reclassification of items previously capitalized 250,556 Thatcher Ferry Bridge: Release excess construction appropriation 850,000 Provision for depreciation 308,125 Funded maintenance costs 232,668 Municipal facilities, financed from bridge funds, transferred to the Canal Zone Government 18,464 232,668 905,538 1,176,589 Equity at June 30, 1965 329,830,278 135,437,740 18,199,446

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PANAMA CANAL COMPANY .^ . , _;^,-, . . ^ ,i ^..^ Table 4.— Statement of Source and Application of Funds, Fiscal Year Ended June 30, 1965 Source of Fxjnds: Revenues $121,200,317 Decrease in cash 3,099,660 Reversal of excess valuation allowance for obsolete and excess stock 337,269 Proceeds from disposition of fixed assets 101,613 124,738,859 Application of FtTNDS: Operating expenses and other costs . 119,657,878 Less operating expenses not requiring expenditure of funds: Provision for depreciation $5,948,495 Provision for maintenance of channels 3,420,658 Provision for locks overhaul 987,000 Loss on disposition of fixed assets 851,788 Other 166,235 11,374,176 108,283,702 Capital expenditures , 10,614,095 Channel maintenance expenditures 3,469,888 Canal locks overhaul expenditures 1,447,687 Thatcher Ferry Bridge maintenance 232,668 . Net change in other working capital 690,819 124,738,859 Table 5.— Statement of Revenue and Operating Expenses, Fiscal Year Ended June 30, 1965 TRANsrr Operations (table 6). SuppoRTiNG Services (table 7): Maritime services Employees' services Transportation and utilities.. Other supporting services Revenue

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48 FINANCIAL REPORT AND STATISTICAL DATA Table 6.— Transit Operations, Statement of Revenue and Operating Expenses, Fiscal Year Ended June 30, 1965 Revenue: Canal tolls $65,502,769 Creclit for tolls on U.S. Government vessels 1,651,890 Harbor pilotage, tug, launch, and other services 6.698,420 Total revenue 73,853.079 Operating Expenses: Navigation services and control Operation and maintenance of locks Provision for channel maintenanceDredging of channel and harbors Diesel power generation Provision for periodic overhaul of locks Meteorology and hydrography services Locks security force Annuity to Republic of Panama (repayment to U.S. Treasury) Damage to vessels Operation and maintenance of dams, reservoirs, and spillways 85,889 113,700 Miscellaneous 266,948 6,036 Total operating expenses 32,108.716 2,097,715 34,206,431 Less charges to other activities 1,906,877 Net operating expenses 32,299,554 Operating Income , 41,553,525 Direct Expenses

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PANAMA CANAL COMPANY 49 s c a a> 3 C I ^ -^ cc o »r3 CO QO io»oeo CO '<*' •— ' -cc o WD Tt* c: t^ lO (M 00 -H ,— . lO CO OO O O Ot-^ O iO »0 -— O t^ lO C5 ^ I I _^ .e !ij (MO 5 § K o"o" » *i O '^ ;.^ coo • -"Tli 0-«^ > » coo O CO a^o GO-H O »r5 CC OSC^ »— (gS ? I o '-< »o lO w o r^ t-C^ CO OZ' JO CN CO •^J O t^ CO iC lO iC O t^ as ic •— C5 -H "5 00 CO CO ' 5iO -^Ji CO I^ iO 00 CO CO oo CO I ^ 2 I ^*" as 05 r"O t^ oo"^ IS Is •—I iM *t^ CO ^ OD (N Tf C^ ^f tM CO l>Oi M 1— 1 .— I lO iC CO l>CO O t-^ — ' CO 05 '— ^^ un .q C. CO I Tf -^ O as oo t-^ CO lO iC ^iC 00 CO 00 O CO t-t-^ t-. CO r}< CO CD CM -"Ji t^ CO ^^ 1— 'CMCO-^ ^H Oi -^ »0 O CO CC ^ -^ '^ O Ol GO ^*^ O 00 O C^ lO ^ N ^ ctj -^ c; o CO c ^-^ t^ O c:> c ''f O lO O 1--M i. Tf 00 O CO roo ^ (M f-^ s> ...2 J i .2.2 3 "C3 O lO Oi CO OC oo CO -— ' CO »o t^ — ' t-O CO ^ Tp CO i— ' QO »0 — CO CO »o I I — 1 o

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50 FINANCIAL REPORT AND STATISTICAL DATA Table 8.— Administrative and Other General Expenses, Fiscal Year Ended June 30, 1965 Executive Direction : Board of directors $19,764 Office of the president 719,168 Infonnation office 449,897 Tourist facilities 70,780 Office of the secretary 78,723 Consultants and advisers 178,069 $1,516,401 Operations Direction: General and special engineering services 301,501 Office of the engineering and construction director185,437 Office of the marine director 105,313 > Office of the supply and community service director 135,628 Office of the transportation and terminals director92,058 819,937 Financial Management: Office of the comptroller 3,466,617 Annual audit 61,000 3,527,617 Personnel Administration: Personnel bureau 1,099,312 Apprentice program 157,183 1,256,495 General Services: Administrative branch 696,272 Maintenance of buildings 416,952 Public services 70,166 Miscellaneous 68,992 1,252,382 Employment Costs: Alien cash relief 1,563,159 Employees' home leave travel 993,780 Recruitment and repatriation 408,314 Leave liabihty variation 373,816 Death and disability compensation 193,967 Contribution for employees' health benefit association 154,433 Medical and other services for alien cash relief annuitants 108,233 Contribution for employees' group life insurance 80,120 Transportation of employees' vehicles 52,009 Over-distribution of civil service retirement contribution (38,984) Miscellaneous 82,365 3,971,212 Other Expenses: Loss on disposition of fixed assets 851,788 Depreciation 206,022 Law suits and tort claims 177,681 Civil disturbances 11,778 1,247,269 Less Reimbursements and Other Credits: Expenses allocated to Canal Zone Government Miscellaneous Net Administrative and Other General Expenses750,000 172,607 13,591,313 922,607 12,668,706

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PANAMA CANAL COMPANY 51 Table 9.-Inventories, June 30, 1965 Materials and Supplies: Storehouse branch: General materials and supplies $4,944,686 Petroleum products 227,511 Scrap 138,825 In transit to Isthmus 356,408 5,667,430 Other divisions' stock: Locks division 157,079 Vessel repair 63,896 Railroad division 195,214 Marine terminals 95,110 Water transportation 59,250 Motor transportation division 369 Retail stores and allied operations 131,654 Service centers 53,529 Printing plant 15,049 Dredging division 198,776 Water system 67,229 Power system 67,245 Construction and maintenance activities 271,421 1,375,821 Manufacturing and repair work in progress: Vessel repair 176,563 Other units 1,351 177,914 Total materials and supplies 7,221,165 Merchandise Held for Sale: Retail stores and allied operations: In warehouses and in stores 3,052,047 In transit 497,397 3,549,444 Water transportation 2,129 Service centers 224,071 Tivoli guest house 45,705 Total merchandise held for sale 3,821,349 Total Inventories 11,042,514

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52 FINANCIAL REPORT AND STATISTICAL DATA S o <» e S e S o 3 C005^(M-*00

PAGE 63

PANAMA CANAL COMPANY 53 wot00 00(MOt>OO lOrtOOOOOOOO O rH O * 05 C-l 05 CO i> CD i-H i-H in CO o_roco_^ooTf cnco iccoo'cTcorHCo" C5 tM> CI 00 1-1 00 -'I'

PAGE 64

54 FINANCIAL REPORT AND STATISTICAL DATA Table ll.-Ocean Traffic Through Panama Canal-Fiscal Years 1955 Thiough 1965 1955. 1956. 1957. 1958. 19591960. 1961. 1962. 1963. 1964. 19G5. 1955. 1956.. 1957.. 195S_. 1959-. I960.. 1961-. 1962.. 1963.. 1964.. 1965.. 1955.1956.. 19571958.. 1959_. I960.. 1961.. 1962.. 1963.. 1964.. 1905-.

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PANAMA CANAL COMPANY 55 Table 13.-CanaI Traffic^ by Nationality of Vessel-Fiscal Year 1965 Measured Tonnage Number of Transits 1 _. 49 3 1,339 ! Nationality Argentinian Belgian Brazilian British Bulgarian 2 Chilean 115 Chinese (Nationalist) 103 Chinese (Republic) 17 Colombian 246 Cuban 3 Danish 283 1 Ecuadorian 23 Finnish 27 French 172 German 1,186 5 Ghanaian 1 Greek 573 4 Giiinean 4 Haitian 1 Honduran 268 Icelandic 2 Indian 8 Indonesian 2 Irish 12 Israeli 59 Itahan 192 1 Japanese 804 4 Korean (South) 13 Kuwait 2 Lebanese 34 Liberian 1,118 9 Mexican 42 Netherlands 618 2 Nicaraguan 62 Norwegian 1,446 Panamanian 318 Peruvian 153 Phihppine 84 Spanish 11 Swedish 388 Swiss 82 United States 1,678 Soviet 48 Venezuelan 17 Yugoslavian 17 Total, fiscal year— 1963 11,834 74, 1964 11,808 69 1963 11,017 64 Panama Canal Net Registered Gross 10 264,289 11,016 ,441,036 12,988 675,192 641,259 102,439 940,690 34,393 ,892,129 117,420 166,841 863,809 ,323,943 3,393 ,199,496 28,801 6,265 327,387 18,044 113,509 6,763 90,025 407,761 ,330,597 ,886,276 80,381 1,904 181,007 ,554,288 104,311 ,680,774 151,273 ,992,214 ,300,996 568,942 530,848 36,432 ,621,579 141,450 ,197,141 294,674 22,791 126,026 734,814 632,611 ,438,113 301,040 13,832 12,828,431 18,042 878,699 831,315 140,315 1,044,722 48,167 2,186,036 133,425 209,965 1,126,811 3,472,820 7,583 5,552,428 39,875 8,464 532,353 22,976 151,824 7,434 127,278 514,782 2,072,618 6,352,046 108.045 3,020 242,954 12,372,983 138,983 3,554,173 149,880 14,100,471 2,931,317 770,615 799,510 40,702 3,580,852 133.721 13,537,083 409,663 35,108 129,542 95,924,123 89,829,766 83,832,893 TolU $1,526 217,750 9,323 8,291,824 11,689 606,425 577,133 92,195 844,112 30,954 1,664,439 103,615 149,251 800,476 4,614,242 4,854 3,682,461 23,921 4,511 274,416 14,616 101,041 6,336 79,398 361,870 1,360,631 4,377,156 68,499 1,542 137,977 8,235,514 95,403 2,336,989 135,593 9,588,919 1,912,766 522,107 494,337 33,896 2,308,224 117,796 10,724,351 258,939 27,590 111,564 $65,442,633 61,098,312 56,368,073 Tons of Cargo ~~ 187,124 9,969 8,846,718 22,582 827,651 823,032 134,075 393,192 32,719 1,789,141 40,370 158,873 709,310 3,320,170 8,965 5,734,249 46,518 "~Y5~2~223 15,904 210,758 2,166 139,266 438,729 1,223,355 4,909,656 72,675 563 246,060 13,233,873 118,465 2,612,430 93,580 13,188,315 2,260,665 774,426 347,839 31,346 2,373,845 66,915 9,986,170 388,336 28,291 150,540 76,573,071 70,550,090 62,247,094 1 Includes only commercial vessels of 300 net tons and over (Panama Canal measiurement ) , or of 500 displacement tons and over on vessels paying tolls on displacement basis ( dredges, warships, etc. ) . Note.— In Canal traffic statistics, foreign naval vessels such as transports, supply ships, tankers, etc., with a measurement of 300 net tons (Panama Canal measurement) and over, and vessels of war, dredges, etc., with a displacement of 300 tons and over are classified as oceangoing commercial vessels. Statistics on these vessels, except as relates to displacement tonnage, have been included in the table above. As displacement tonnage cannot be combined with net tonnage the following table shows statistics covering 57 vessels \\hich transited the Canal during fiscal year 1963 and i)aid tolls on displacement tonnage: DisplaceNumber of ment Nationality Argentinian Naval Brazilian Drvdock_. British Naval _ Chilean do__ French do-_ German do ._ Greek do__ Indonesian do-_ Mexican do Peruvian _do-_ Spanish do Swedish . do United States Dredge__. Do Barge Venezuelan Naval Total Type nsits

PAGE 66

56 FINANCIAL REPORT AND STATISTICAL DATA W5 CO OS H ,o es u en es U I es H / ----.no

PAGE 67

PANAMA CANAL COMPANY 57 CO ?D I— ' t-05 eo — ^t^cO»«(M O UDC003C0 C«i— "iO o 1-H Tt« QO C^ CO CS ''f t Oi UO-^ lO ! CO i~"^ o t 1— ' CO cs -^ rGO ^* t^ ^ '"' Ci O C^ *^ t^ I>1~o6 ^CD en =Cco lO CO CD Tt* CC — ' CO co»o c^ — »o c^ roo u5 ai -^ o lO GO Oi O "^ O t^ — fM lO t^ CD CD ^' CO CO CO CO r^co o co Oi CO CD CO (M GO WO) co-^ C^ ^ bCi CO CO CM CO CO -^ coco CO C^ —4 lO ro "X) o '-< CD CO (M O O t^ CO OO CO rCOO — CO 00 t^ O o — lO CO — -^ O O lO Ci Ci -<»< O O 05 •«** o CD OO ^: ic d CD : O »0 -^
PAGE 68

58 FINANCIAL REPORT AND STATISTICAL DATA Table 15.— Laden and Ballast Traffic by Nationality of Vessel Fiscal Year 1965 Laden Ballast Number of Nationality transits Belgian 27 Brazilian 1 British 1,136 Bulgarian 2 Chilean 108 Chinese (Natl.) 103 Chinese (Rep.) 17 Colombian 236 Cuban 5 Danish 252 Ecuadorian 24 Finnish 26 French 135 German 931 Ghanaian 1 Greek 501 Guinean 4 Haitian Honduran 154 Icelandic 1 Indian 7 Indonesian 1 Irish 11 Israeli 55 Italian 176 Japanese 787 Korean (South) 11 Kuwait 1 Lebanese 29 Liberian 893 Mexican 29 Netherlands 451 Nicaraguan 60 Norwegian 1,208 PanamanianPeruvian Philippine Spanish Swedish Swiss United States _ Soviet Yugoslavian Venezuelan_ 325 144 83 8 347 44 1,505 43 16 7 Total, fiscal year— 1965 1964 1963 Panama Canal net tonnage 152,569 5,508 8,174,640 12,988 648,058 641,259 102,439 926,750 34,393 1,678,477 117,069 161,809 779,615 4,323,041 5,393 3,655,061 28,801 ""214,990 9,022 107,304 6,763 81,001 379,347 1,356,674 4,772,428 59,027 952 153,624 7,535,702 85,682 2,260,179 148,200 9,302,914 1,422,498 549,362 544,148 31,257 2,325,706 88,620 10,777,560 259,964 115,698 16,087 9,905 64,052.579 9,826 60,531,787 9,098 55,097,940 Tolls $137,312 4,957 7,357,176 11,689 583,252 577,133 92,195 834,075 30,954 1,510,629 105,362 145,628 701,654 3,890,737 4,854 3,289,555 25,921 193,491 8,120 96,574 6,087 72,901 341,412 1,221,007 4,295,185 53,124 857 138,262 6,782,132 77,114 2,034,161 133,380 8,372,623 1,280,248 494,426 489,733 28,131 2,093,135 79,758 9,699,804 233,968 104,128 14,478 $57,647,322 54,478,608 49,588,146 Number of transits 22 "l 192 10 "31 1 1 22 254 73 1 114 1 1 1 4 16 17 4 1 5 225 7 167 2 238 193 3 1 1 40 38 171 5 1 4 1,872 1,930 1,875 Panama Canal net tonnage 111,720 5,508 1,266,396 ~ "2~7~i34 13,940 ~"2T3~,652 351 .5,032 84,194 1,000,904 "~5~4~4",435 6~,265 112,397 9,022 6,205 ~~~~9,024 28,414 193,923 113,848 21,354 952 27,383 2,018,586 18,629 420,595 3,073 1,689,300 878,498 19,580 6,700 5,195 295,873 52,830 1,419,581 34,710 10,328 6,704 10,682,235 9,100,824 9,340,175 Tolls $80,438 3,966 911,805 '19,536 10,037 "Y5~3l829 253 3,623 60,620 720,651 " •91" 993 4~5ii 80,926 6,496 4,468 '"M97 20,458 139,624 81,971 15,375 685 19,716 1,453,382 13,413 302,828 2 212 1,216^296 632,519 14,098 4,824 3,740 213,029 38,038 1,022,098 24,991 7,436 4,827 $7,691,209 6,552,593 6,724,926 Note.— Above table involves only commercial vessels of 300 net tons or over, Panama Canal measurement.

PAGE 70

60 FINANCIAL REPORT AND STATISTICAL DATA c<» cc ^ 3 C.2, l-tl.2 3 KKOOOC i|: •;: =a S c B %a a « § 5 S fc-= £'5 ^ ,— -^ "^ c^i 00 (M C^ «*< CO c^ ^ M< (M CO C ^ CO ^" c^ I c^ O »« C^ I I CO ^ QO "O I ;— CO COo-. CO.^(M-* ICO — -O" g I 3^ cc co'***o^»-t'^os"*T-"Cjr^c«iocO'-^co _tC.r-<
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PANAMA CANAL COMPANY 61 •*** o) t--5 ^ H H^^)(M^--^30C^O:Z>Ori:Ci'-'M:Ci-2r > c~r:, -j3 c^ o * ^o — f^ r^ ^ =^ -JH CO ^ CO CO c^ rt 5: ^ -g Jj~S-t^-c >i

PAGE 72

62 FINANCIAL REPORT AND STATISTICAL DATA •., f, ^. eo «c c »c c M en f-Tt »o •— c<» Ci ic ir? ci ic cc CO ' Oi oc t c^ cr CO oC' »r? — — o »c 0-. lO cc r^ r* w o: lo »r to ' CC iC "O O"^ .— " I o^ lO o r^^ CC « * O C<» (>? ci o -r O -M O^. (M t^ O CO 'Xcot-o-^crr-^r-»no— 'Occo •— '— CC CC (M '-^ ^ (MfTC c
PAGE 73

PANAMA CANAL COMPANY 63 Table 18.— Principal Commodities Shipped Through Canal [Thousands of long tons] Fiscal year Atlantic to Pacific 1965 1964 1963 Petroleum and products (excludes asphalt )___ 13,914 10,988 10,828 Coal and coke 6,471 6,184 5,172 Phosphate 3,123 2,212 1,803 Corn 2,245 2,274 1,310 Metal, scrap 2,117 3,047 1,700 Soybeans 1,653 1,510 1,446 Manufactures of iron and steel 1,546 1,440 1,282 Ores, various 1,195 1,184 771 Chemicals, unclassified 796 700 565 Sugar 660 536 774 Wheat 632 622 468 Paper and paper products 573 491 340 Sulfur 472 471 285 Machinery 444 414 422 Fertilizers, unclassified 441 433 334 Automobiles and accessories 393 385 309 Cotton, raw 355 390 341 Ammonium compounds 306 310 225 Metals, various 296 354 299 Rice 260 138 145 Flour, wheat 226 207 271 Chemicals, petroleum 220 222 147 Canned food products 212 219 194 Sorghum 208 215 N.A. Cement 182 186 123 Asphalt 161 178 167 Soda and sodium compounds 158 139 110 Asbestos 151 130 ' 115 Tinplate 143 171 182 Resin 131 126 85 Glass and glassware 124 133 106 Pulpvvood 124 154 125 Clay, fire and china 112 99 60 Oil, vegetable 109 116 116 Grains, unclassified 106 202 159 Rubber, manufactvued 104 104 97' Liquors and wines 94 88 91 Agricultural implements 89 71 58 Coffee 88 75 91 Electrical machinery and apparatus 82 72 77 Potash 77 170 144 Food in refrigeration 73 60 63 Tallow 58 54 48 Salt 53 54 47 Groceries, unclassified 52 56 40 Tobacco 52 52 41 Textiles 51 67 67 Slag 49 53 49 Marble and stone 43 44 38 Bricks and tile 42 26 34 Lumber 41 50 47 Wax, paraffin 41 40 39 Creosote 37 13 25 Molasses 33 9 67 Cocoa and cacao beans 31 25 23 Skins and hides 29 25 25 Carbon black 25 27 26 Railroad materials 23 42 30 Ammunition and explosives 20 12 16 All other 1,403 1,032 1,024 Total, Atlantic to Pacific 42.949 38,901 33,086 1962 10,228 6,817 1,878 1,105 3,215 1,196 1,690 718 638 2,105 705 359 387 404 396 289 397 484 399 119 237 N.A. 207 N.A. Ill 194 138 134 259 109 109 104 57 119 23 87 91 63 91 78 124 51 37 47 46 50 66 58 N.A. 38 38 35 36 146 17 26 37 16 N.A. 1,099 37,707

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64 FIXAXCIAL REPORT AND STATISTICAL DATA Table 18.— Principal Commodities Shipped Through Canal— Continued [Thousands of long tons] Fiscal year Pacific to Atlantic 'j965 1964 1963 1962 Ores, various 7,418 6,876 7,036 7,760 Lumber 4J24 4,204 3,833 3,617 Sugar 2,460 2,223 2,121 2,476 Iron and steel manufactures 2,297 1,134 856 478 Fishmeal 1,475 1,226 1,042 N.A. Bananas 1,319 1,291 1,083 1,082 Wheat 1,246 1,352 779 1,092 Metals, various (including tinplate) 1,241 1,168 1,107 1,218 Petroleum and products (excludes asphalt) 1,220 2,340 l'809 1,748 Food in refrigeration (excluding bananas) 974 980 950 822 Canned food products 913 950 1,011 937 Nitrate of soda 770 730 697 884 Pulpwood 554 525 496 476 Oilseeds 401 243 305 330 Coffee 392 453 432 399 Sulfur 324 122 28 14 Cotton, ravi^ 272 307 366 294 Borax 258 239 188 174 Fruit, fresh 238 247 194 269 Wool 237 259 281 264 Barley227 360 438 1,064 Coal and coke 225 379 89 77 Phosphate 222 159 156 150 Paper and paper products 218 204 180 197 Chemicals, unclassified 208 203 174 189 Molasses 208 222 157 111 Corn 205 20 Oil, fish 188 94 177 119 Textiles 186 132 130 117 Oil, coconut ISO 159 142 95 Copra 170 173 195 169 Rice-„_ 143 150 215 241 Chemicals, petroleum 127 102 125 N.A. Porcelainware 115 103 83 78 Fruit, dried 97 104 95 9S Beans, edible 76 63 68 64 Rubber, crude 72 83 101 105 NIachinery 70 65 57 50 Electrical machinery and apparatus 57 48 35 26 Potash _ 57 45 20 Vegetables, dry 57 35 51 38 Wines 57 59 73 71 eas, dry 56 67 72 69 Skins and hides 55 60 49 56 Bricks and tile 54 45 32 27 Ii-ifusorial earth 54 55 45 43 Grains, unclassified 52 91 140 72 Oats 50 174 145 8 Tallow 44 52^ 24 44 Seeds, excluding oilseeds 43 51 43 3S Cocoa 32 30 34 27 Glass and glassware 31 24 22 19 Rubber, manufactured 28 30 39 34 rionr, wheat 27 41 82 59 Hi], whale 27 45 34 27 Floor coverings 26 16 18 14 Automobiles and accessories 25 18 15 17 Oil, vegetable, miscellaneous 24 34 34 120 Groceries, unclassified 23 30 25 42 Hemp 22 22 20 19 Motorcycles and bicycles 20 8 4 All other 1,033 945 900 1,669 Total Pacific to Atlantic 33,624 31,649 29,161 29,817

PAGE 75

PANAMA CANAL COMPANY 65 CO 05 a Q CC Ph < cc ** »o loc^cococ^'^osaji OSCOt— ^O0GO^*U5< «oc
PAGE 76

66 FINANCIAL REPORT AND STATISTICAL DATA CD a W) a CTi r»c to «— OiC^ kO -^ CO t>>— ' CO oo I— t^U5(NC^ CO o

PAGE 77

PANAMA CANAL COMPANY 67 csi lO CO ^ c5 ^ ^-1 a S ^ coof^co I --U CO 55 .». ^ -T3 CO c!5 t ;3 C C l^ — c 2cO^.M "" 06000*^0 ^"CO^-l_^ C O_oo 5 CO 5 CO ° =»." c° S, s'^f" ," oS;:: S-^^Ico • oo CO a^O CO loo—" 1 3" -13 .C t^eOoo<^oo ^ — 00^ co-^ ?» — -oimOco § c -^r oo co'^co O 05 O CO "^ CO S CCco oi£2co o *0 C4 CO o ^ "30 **< 00 O ^ M Cfl O lo C*» O CO -^ '-' CO lo -^ *^ "* oo '^ « CO co^ "5 tZcoxsoS-^. lO ^00 O C5 Oi ccQ

PAGE 78

68 FINANCIAL REPORT AND STATISTICAL DATA feX) G S Q "33 < ai ro c i '— -^ . O OCI M IC »»• CO C>) ^-^ e4 cc CO I OS 2 ^c^ ^*' t^ — lO or c^ M (^ t^ ,_,— t^ Ol CO o »c ^^ cc coec — CO knoscot^oi'^co'-' m^»*'-'oor-r-cDeo--^—^^_^ (d 'i(J< O C^ CO >o«ocooocooso t~ U5 1^ coo •«»• CO oooS'"""^ r'CO OO lO ^ c^ 4) 13 « u s es Ph '5 !« £^ V 'B s 3 O u J cooo -COO w:>co ooco^ 05COO _. W3 — t^ CO «^cc to— ^ CO «C(M O kO — (M C<1 OOC^ liO W l>. CO CO -t^ QO-^ CO CO t^O O CO cow^oocoQO ' CO CO ' tCO 00 »0 Ol »0 CO ^ "^ COC^ CO CO CiCOO-^ OO CO lO o Ci I's "^ c*a OOCOiO c^ c^ Oi C^ coo O I;— CO OS lO O 03 .£3 o *" tj CO f~CO •— ' 1— " < ~ a t~o 05 CO CI »o 1— "^ ~ eoco-°2osc — C^ Clc*^05^^'^t^'^u^ Cfl o »o — < CC t^ -^ 00 e^ 'I c^' CDCOt^00W5^t^(X'»'^ 0^**COOCDcocD^-CD O ^^ OS 1-' '-^ O •-* O " Si i^S o O^ O S 3^ C 3 a. O PlCQ SCO'S H S"Mi-5 g ^ S e •? CO cc c^ OS CO • OSII ^-"^ cooo M* CT> CO C^ t--^ OO C^ CO 00 I c^ CO** 00»0 Oi CD ift o'c^'co t^CO (M CO^ 00 •^ 05 OS cri ^OO OOlO
PAGE 79

PANAMA CANAL COMPANY * C0 «0 -"J* OT 00 C-kO ICO 00 II OO CO -1 rII op; o II -^^ r^oo o . Jg < 3J H oS

PAGE 80

70 FINANCIAL REPORT AND STATISTICAL DATA -T W i« 1-H Ud CO Irt CO 00 CD CO CO COO CO •-* CO booea QO Oa t^ 05 •J a S g'.g La S CT> I to II OO t>. I u? 1] COC4 ^ II lO^ L-"^ ^ "a'S.s jmOfeW,S£5-4Sp:3£2H-<

PAGE 81

PANAMA CANAL COMPANY 71 — C CO lo CO t-* as CO OS CO 0> CQ UD CO '^ 00 ^ C^ O CO o coco-fl* o ro •O CO OS »ft OS ^^ CO CO -ca o OS csieoM t-cs m c^ o 00 to CS U^ CO O CO -^ t-^ -^ oo r-l c^ CZ)C0 CO »— ' C<) OS CO OS cocsost— t--ccost^cocot^N^ OSOSOt^OS-^f-^M— 'COC<>«5cO coocOoscaoco
PAGE 82

72 FINANCIAL REPORT AND STATISTICAL DATA Table 21.— Cargo Shipments by Trade Routes— Atlantic to Pacific [Thousands of long tons] East Coast United States to— West coast United States West coast Canada West coast Central America/MexicoBalboa, C.Z West coast South America Chile Colombia Ecuador Peru Other

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PANAMA CANAL COMPANY 73 Table 21.— Cargo Shipments by Trade Routes— Atlantic to Pacific— Continued [Thousands of long tons] East Coast Central America/Mexico toContinued Asia Japan Formosa Other Fiscal year 1963 1962 TotalEast Coast South America to— West coast United States West coast Canada West coast Central America/Mexico_ West coast South America Chile Colombia Ecuador Peru Other Balboa, C.Z Hawaiian Islands.. Oceania Australia New ZealandOdier AsiaJapan South KoreaOdier TotalCristobal, C.Z., TO— West coast United States West coast Central America/MexicoWest coast South America Balboa, C.Z Asia ( Japan ) Other territories TotalWest Indies to— West coast United States West coast Canada West coast Central America/MexicoBalboa, C.Z West coast South America Chile Colombia Ecuador Peru Other Hawaiian Islands Oceania Australia French OceaniaNew Zealand Other 85

PAGE 84

74 FINANCIAL REPORT AND STATISTICAL DATA Table 21. -Cargo Shipments by Trade Routes— Atlantic to Pacific— Continued [Thousands of long tons] West Indies to— Continued Asia British East Indies. China Hong Kong Indochina Indonesia Japan Phihppine Islands. South Korea U.S.S.R Other TotaL EUROPE TO— West coast United States West coast Canada West coast Central America/MexicoBalboa, C.Z West coast South America Chile Colombia Ecuador Peru Other Hawaiian Islands Oceania Australia British OceaniaFrench OceaniaNew Zealand_. Other Asia. Formosa Japan South KoreaU.S.S.R Other Other territories.. Total Fiscal year 1965 1,376 10 123 4 1964 1,164 16 212 3 1962 2,363 """779 2 14 1,152 1 70 344 1 5,217 4,547 4,454 6,711 6 1,122 13 98 18 860 15 5 22 13 1963 1,014 11 335 9 4 7 570 20 57 1 882 260 376 853 229 359 769 179 317 967 299 121 109 394 44 976 274 142 109 413 38 12 903 17 879 26 33 225 577 42 27 21 157 647 27 88 1 73 109 2 98 1.128 407 157 105 440 19 28 826 49 18 103 625 31^ 116 1 110 1 4 10 850 196 299 13 1,170 400 181 78 480 31 23 926 44 18 138 654 72 ~I38 4 113 4 11 3,499 9

PAGE 85

PANAMA CANAL COMPANY 75 Table 22.— Cargo Shipments by Trade Routes— Pacific to Atlantic [Thousands of long tons] Fiscal year West Coast UNrrED States to— East coast United States East coast Canada East coast Central America/MexicoCristobal, C.Z East coast South America Argentina Brazil Colombia Uruguay Venezuela Other West Indies British West Indies Cuba Haiti-Dominican Republic. Netlierlands West Indies — Puerto Rico Other EuropeBelgitun British Isles Denmark Finland France Greece Irish Republic_ Italy Netherlands Norway Poland Spain-Portugal_ Sweden West Germany. Yugoslavia Other Asia (Middle East). India Israel Lebanon Syria Other Africa Kenya Egypt MozambiqueSouth Africa. Tunisia Other Total. West Coast Canada to— East coast United States East coast Canada Cristobal, C.Z East coast South America. Argentina Brazil 1965 2,177 12 2 6 155 21 24 6 1 102 I 295 33 20 5 236 1 1964 3,284 38 4 7 179 20 18 17 ^'122 2 253 33 1 9 3 207 1963 2,818 28 4 10 127 11 19 14 1 82 268 31 7 5 221 4 108 352 41 15 197 35 11 340 725 29 15 90 63 311 10 69 1,184 9 1 340 1962 2,961 31 6 8 122 16 24 17 1 61 3 219 24 4 5 183 3 2,411 2,628 2,404 2,557 188

PAGE 86

76 FINANCIAL REPORT AND STATISTICAL DATA Table 22.— Cargo Sliipments by Trade Routes— Pacific to Atlantic— Continued [Thousands of long tons] West Coast Canada to— Continued East Coast South America— Continued Colombia Venezuela Odier West Indies British West Indies Cuba Haiti-Dominican Republic Puerto Rico Other Fiscal year 1965 1964 286 2 180 4 122 103 28 23 1963 1 181 1 127 24 1 91 2 67 5 10 86 7 1962 5 105 5 142 22 17 25 75 3 Europe Albania Belgium British Isles Bulgaria France Greece Irish RepublicItaly Netherlands Norway Poland Spain-PortugalU.S.S.R West Germany. Yugoslavia Other Asia (Middle East)— Israel Lebanon Odier 3,329 3,333 2,399 2,296 109 2,075 79 23 40 210 292 1 82 14 53 215 13 123 _37 27 10 Africa_ Egypt Mozambique South Africa Tunisia Odier Total West Coast Central America/Mexico toEast coast United States East coast Canada East coast Central America/Mexico Cristobal, C.Z East coast South America West Indies Europe Belgium British Isles Denmark East Germany France Italy Netlaerlands Poland Spain-Portugal West Germany Other 269 12 155 1,849 90 63 13 30 113 413 1 136 43 25 270 3 117 28 27 164 1,545 52 2 26 118 242 3 20 11 112 3 101 15 14 39 212 12 6 5,291 639 540 438 27 11 912 26 32 25 61 11 36 14 407 25 16 22 20 57 10 24 11 368 20 15 24 Other territoriesTotal 131 1,452 40 1 10 124 144 9 21 26 277 Jl _21 19 1 199

PAGE 87

PANAMA CANAL COMPANY 77 Table 22.— Cargo Shipments by Trade Routes— Pacific to Atlantic— Continued [Thousands of long tons] West Coast South America to— East coast United States East coast CanadaEast coast Central America/Mexico. Cristobal, C.Z East coast South America Brazil Colombia Venezuela Otlier

PAGE 88

78 FINANCIAL REPORT AND STATISTICAL DATA Table 22.— Cargo Shipments by Trade Routes— Pacific to Atlantic— Continued [Tbotisands of long tons] Oceania to— East coast United States East coast Canada East coast Central America/MexlcoCristobal, C.Z East coast South America West IndiesBritish West Indies Netlierlands West IndiesOther Europe. Belgium British Isles France Netherlands West Germany Other Other territoriesTotal 72 67 2 3 Fiscal year 1965

PAGE 89

PANAMA CANAL COMPANY 79 Table 23.-Important Commodity Shipments Over Principal Trade Routes Atlantic to Pacific [Thousands of long tons] East Coast United States to West Coast United States: Bauxite Canned food products Cement Chemicals : Petroleum Unclassified Confectionery Electrical machinery and apparatus Floor coverings Groceries, unclassified Iron and steel manufactures Liquors Machinery Metals, miscellaneous Paints and varnishes Paper and paper products Petroleum and products: Crude oil Fuel-diesel oil Gasoline Kerosene Lubricating oil Other and unclassified Pharmaceutical products Phosphate Soap and soap products Soda and sodivim compounds Sulfur Vegetable oil, miscellaneous All other and unclassified Total East Coast United States to West Coast Canada : Canned fruit Phosphate Rice Soda and sodium compounds AU other and unclassified Total East Coast United States to West Coast Central America/Mexico: Ammonium compounds Chemicals, unclassified Canned food products Com Fertilizers, unclassified Iron and steel manufactures Lime Machinery Paper and paper products Petroleum and products: Lubricating oil Other and unclassified Phosphate Potash Rice Wheat All other and unclassified Total Fiscal year 1965 217 1 27 127 137 1964 1963 230 42 4 6 42 14 99 114 1 0. 76 103 5 609 1 1 26 1 1 5 476 1 2 4 1 2 3 1 2 442 3 3 2 3 1 61 830 295 272 86 2 74 5 48 39 522 33 219 29 2 38 1 18 326 266 22 2 3 13 1 192 8 185 28 86 28 5 3 36 1962 N.A. 185 4 1 2 660 9 3 20 4 6 47 14 374 37 217 12 5 1 39 40 18 47 3,021 2,077 1,447 1,750 10

PAGE 90

80 FINANCIAL REPORT AND STATISTICAL DATA Table 23.— Important Commodity Shipments Over Principal Trade Routes Atlantic to Pacific— Continued [Thousands of long tons] East Coast UNirED States to West Coast SoxJTH America: Agricultural implements Ammonium compounds Asphalt Automobiles and accessories Bricks and tile Canned food products Carbon black Chemicals, unclassified Clay, fire and china Coal and coke Corn Cotton, raw Electrical machinery and apparatus Fertilizers, unclassified Flour, wheat Grains, unclassified Groceries, unclassified Iron and steel manufactures Machinery Marble and stone Metals: Miscellaneous Scrap Paper and paper products Petroleum and products: Gasoline Lubricating oil Other and unclassified Phosphate Potash Resin Rice Rubber, manufactured Soda and sodium compounds Sulfur Tallow Tinplate Vegetable oil, miscellaneous Wax, paraffin Wheat Woodpulp All other and unclassified Total East Coast United States to Hawaiian Islands: Automobiles and accessories Canned food products Chemicals, unclassified Com Electrical machinery and apparatus Grains, unclassified Iron and steel manufactures Liquors Machinery Metals, miscellaneous ^ Paper and paper products Phosphate

PAGE 91

PANAMA CANAL COMPANY 81 Table 23.— Important Commodity Shipments Over Principal Trade Routes Atlantic to Pacific— Continued [Thousands of long tons] East Coast United States to Hawaiian Islands— Continued Soybeans Textiles Tinplate All other and unclassified Total 1965 East Coast United States to Oceania: Agricultural implements Ammonium and compounds Automobiles and accessories Bauxite Bricks and tile Carbon black Chemicals : Petroleum Unclassified Clay, fire and china Coke Cotton, raw Electrical machinery and apparatusFertilizers, unclassified Glass and glassware Iron and steel manufactures Machinery Metals, miscellaneous Ores, miscellaneous Paper and paper products Petroleum and products: Gasoline Kerosene Lubricating oil Other and unclassified Phosphate Potash Resin Rice Rubber, manufactured Soda and sodium compounds Soybeans Sulfur Tobacco Vegetable oil, miscellaneous Wax, paraffin Woodpulp All other and unclassified Total East Coast United States to Asia: Agricultural implements Ammonium compounds Ammunition and explosives Asphalt Automobiles and accessories Barley Beans, edible Canned food products Carbon black 1 1 36 46 160 32 5 42 41 6 4 7 61 30 3 18 5 12 8 26 63 14 7 23 83 11 720 20 18 7 13 8 9 258 11 11 6 7 125 7 77 9 15 47 10 11 90 10 Fiscal year 1964 2 3 36 54 191 25 6 46 80 2 4 7 34 30 24 4 1 8 28 50 8 6 17 34 108 10 47 18 14 7 16 5 8 297 12 6 6 7 94 7 112 2 19 54 6 95 14 1963 12 2 49 40 207 16 1 23 48 2 5 14 31 20 11 15 6 3 6 25 49 11 5 14 4 2 117 7 13 16 13 6 15 2 9 174 12 5 5 7 59 1,714 1,069 771 5 38 3 7 34 11 68 14 1962 7 2 42 55 218 13 2 19 1 6 N.A. 47 11 16 4 1 4 12 37 14 11 1 128 10 2 23 13 3 17 1 5 241 14 5 1 4 76 742 3 267 N.A. 28 37 75 24 11351 — 12

PAGE 92

82 FINANCIAL REPORT AND STATISTICAL DATA Fiscal year 67 33 19 64 37 41 304 60 365 29 27 30 99 34 43 294 77 326 6 26 24 75 25 31 83 60 268 1962 N.A. 108 29 6,553 3 982 359 11 95 N.A. 108 4 7 4 147 12 124 139 2,853 38 57 Table 23.— Important Commodity Shipments Over Principal Trade Routes Atlantic to Pacific— Continued [Thousands of long tons] East Coast United States to Asia— Continued : Cement Chemicals : Petroleum Unclassified Clay, fire and china Coal and coke Cocoa and cacao beans Corn Cotton, raw Electrical machinery and apparatus Fertilizers, unclassified Fishmeal Flour, wheat Glass and glassware Groceries, imclassified Grains, unclassified Iron and steel manufactures Lumber Machinery Metals: Miscellaneous Scrap Ores, miscellaneous Paper and paper products Petroleum and products: Gasohne Kerosene Lubricating oil Other and unclassified Pharmaceutical products Phosphate Potash Raffs and waste Railroad materials Refrigerated food products Rice Resin Rubber, manufactured Skins and hides Soda and sodium compounds Sorghum Soybeans Sugar Sulfur Tallow Textiles Tinplate Tobacco Vegetable oil, miscellaneous Wheat Woodpulp All other and unclassified Total East Coast UNrrso States to Balboa, C.Z.: Corn Wheat All other and unclassified Total 1965 78 283 54 6,280 9 2,189 316 15 79 5 107 6 9 71 134 9 92 39 1,910 7 66 31 1 381 44 6 1,997 7 7 1 19 180 83 53 19 29 208 1,515 1964 101 261 49 6,004 6 2,162 348 15 85 5 83 5 13 167 151 22 93 60 2,760 55 55 14 ~"363 49 4 1,893 16 9 13 13 68 87 51 16 22 NA. 1,408 1963 53 158 28 5,002 5 1,253 302 12 16 '"142 4 7 145 141 14 127 85 1,603 32 38 15 1 324 17 4 1,515 14 13 2 7 117 58 51 19 25 NA. 1,399 30 309 41 5 1,655 12 N.A. 1 8 94 77 42 18 24 NA. 1,182 1 11 11 20 127 33 38 149 53 381 17,612

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PANAMA CANAL COMPANY 83 Table 23.— Important Commodity Shipments Over Principal Trade Routes Atlantic to Pacific— Continued [Thousands of long tons] East Coast Canada to West Coast United States: Asbestos Petroleum and products: Gasoline Paper and paper products Ores, miscellaneous All other and unclassified Total East Coast Canada to West Coast Canada: Bauxite Chemicals, unclassified All other and unclassified Total East Coast Canada to West Coast South America : Asbestos Chemicals, unclassified Iron and steel manufactures Metals, miscellaneous Paper and paper products Woodpulp All other and unclassified Total Fiscal year 1965 1964 East Coast Canada to West Coast Central America/Mexico: Iron and steel manufactures Petroleum and products: Gasoline Raihoad materials Total East Coast Canada to Oceania: Asbestos Automobiles and accessories Chemicals, unclassified Iron and steel manufactures Machinery Metals, miscellaneous Paper and paper products Tinplate Woodpulp All other and unclassified Total East Coast Canada to Asia: Asbestos Chemicals: Petroleum Unclassified Coal Com Grains, unclassified Metals: Miscellaneous Scrap Ores, miscellaneous Paper and paper products Resin Rubber, manufactured 7 11 18 36 16 4 9, 22 1 4 9 1 13 37 11 20 23 13 22 10 4 6 114 14 4 50 260 86 2 5 14 5 1 13 1 18 11 2 13 10 29 17 13 11 82 2 4 _35 187 82 4 4 J 963 111 1 8 1 121 17 11 11 16 18 8 7 4 26 78 10 5 21 193 69 1962 12 10 7 8

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84 FINANCIAL REPORT AND STATISTICAL DATA Table 23.— Important Commodity Shipments Over Principal Trade Routes Atlantic to Pacific— Continued [Thousands of long tons]

PAGE 96

86 FINANCIAL REPORT AND STATISTICAL DATA Table 23.— Important Commodity Shipments Over Principal Trade Routes Atlantic to Pacific— Continued [Thousands of Ion? tons] Fiscal year East Coast South America to Oceania: Chemicals, unclassified Petroleum and products: Crude oil Fuel-diesel oil Gasoline Kerosene Lubricating oil All other and unclassified Total 1965 1964 9 170 11 13 3 17 270 1 East Coast South America to Hawaiian Islands: Petroleum and products: Fuel-diesel oil Lubricating oil Kerosene All other and unclassified Total 206 134 1 143 East Coast South America to Asia: Corn Cotton, raw Grains, unclassified Metal, iron Ores: Bauxite Iron Manganese Tin Petroleum and products: Crude oil Fuel-diesel oil Gasoline Lubricating oil Other and unclassified Sugar Wool All other and unclassified Total 14 14 69 36 78 63 346 767 15 28 28 315 629 51 2 20 5 27 Cristobal, C.Z., to West Coast United States : Coffee Petroleum and products: Fuel-diesel oil Gasoline All other and unclassified Total 17 1 '49 17 50 Cristobal, C.Z., to West Coast Central America/Mexico : Petroleum and products: Fuel-diesel oil Gasoline Kerosene Other and unclassified All other and unclassified Total 16 20 7 5 196; 12 20 150 252 674 60 6 7 24 1,480 1,301 1,222 48 48 13 5 33 10 5 3 1962 102 20 119 31

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PANAMA CANAL COMPANY &7 Table 23.— Important Commodity Shipments Over Principal Trade Routes Atlantic to Pacific— Continued LThousands of long tons] Cristobal, C.Z., to Balboa, C.Z.: Petroleum and products: Fuel-diesel oil Gasoline Kerosene All other and unclassified Total

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88 FINANCIAL REPORT AND STATISTICAL DATA Table 23.— Important Commodity Shipments Over Principal Trade Routes Atlantic to Pacific— Continued [Thousands of long tons] Fiscal year West Indies to Balboa, C.Z.: Petroleum and products: Fuel-diesel oil Gasoline Kerosene Other and unclassified All other and unclassified Total 1965 1964 West Indies to Hawaiian Islands: Petroleum and products: Fuel-diesel oil Gasoline Kerosene Total West Indies to Oceania: Asphalt Petroleum and products: Fuel-diesel oil Gasoline Kerosene Lubricating oil Other and unclassifiedSugar All other and unclassifiedTotaL West Indies to Asia: Ammonium compoundsFish, refrigerated Machinery Metals: Iron Scrap Molasses Ores: 188 29 3 ' 1 168 31 3 3 9. 221 207 2 140 142 31 68 194 269 10 5 11 27 4 10 6 9 26 1963 151 29 10 190 1962 211 109 21 23 16

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PANAMA CANAL COMPANY 89 39 229 Table 23.— Important Commodity Shipments Over Principal Trade Routes Atlantic to Pacific— Continued [Thousands of long tons] Europe to West Coast United States — Continued: Glass and glassware Groceries, unclassified Iron and steel manufactures Lumber Liquors and wines Machinery Marble and stone Metals, miscellaneous Nitrate of soda Paper and paper products Rope and twine Soda and sodium compounds Woodpulp — AU other and unclassified Total Europe to West Coast Canada: Asphalt Automobiles and accessories Chemicals, unclassified Clay, fire and china Creosote Glass and glassware Iron and steel manufactures Liquors and wines Machinery Metals, miscellaneous Ore, zinc 7 All other and unclassified 39 Total 259 Europe to West Coast Central America/ Mexico: Ammonium compounds 45 Automobiles and accessories 7 Canned food products 7 Cement 5 Chemicals, unclassified 24 Fertilizers, unclassified 129 Class and glassware 7 Iron and steel manufactures 61 Machinery 13 Metals, miscellaneous 4 Paper and paper products 9 Petroleum and products: Fuel-diesel oil 8 Phosphate 7 Potash Soda and sodium compounds 3 All other and unclassified 47 Total 376 Europe to West Coast South America: Agricultural implements 11 Ammonium compounds 71 Ammunition and explosives 4 Automobiles and accessories 20 Barley 5 Bricks and tile 5

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90 FINANCIAL REPORT AND STATISTICAL DATA Table 23.— Important Commodity Shipments Over Principal Trade Routes Atlantic to Pacific— Continued [Thousands of long tons] Fiscal year 1965

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PANAMA CANAL COMPANY 91 Table 23.— Important Commodity Shipments Over Principal Trade Routes Atlantic to Pacific— Continued [Thousands of long tons] Europe to Oceania — Continued: Glass and glassware Iron and steel manufactures _ Liquors and wines Machinery Metals, miscellaneous Paper and paper products Petroleum and products: Fuel-diesel oil Gasoline Lubricating oil Other and unclassified Phosphate Potash Rice Salt Slag Soda and sodium compounds. Sugar Sulfur Textiles Tinplate Woodpulp All other and unclassified Total 1965 16 178 16 62 10 16 18 1 24 1 3 4 38 7 9 6 11 4 11 178 Europe to Antarctica: Petroleum and products: Fuel-diesel oilAll other and unclassified Total 902 10 Fiscal

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92 FINANCIAL REPORT AND STATISTICAL DATA Table 23.— Important Commodity Shipments Over Principal Trade Routes Atlantic to Pacific— Continued [Thousands of long tons]

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PANAMA CANAL COMPANY 93

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94 FINANCIAL REPORT AND STATISTICAL DATA Table 24.— Important Commodity Shipments Over Principal Trade Routes Pacific to Atlantic— Continued [Thousands of long tons] Fiscal year West Coast United States to East Coast South America— Continued: Wheat Woodpulp All other and unclassified Total West Coast United States to Cristobal, C.Z.: Lumber Paper and paper products All other and unclassified Total West Coast United States to West Indies: Beans, edible Canned food products Fish, refrigerated Lumber Paper and paper products Rice Soda and sodium compounds Vegetables, drv Wheat All other and unclassified 1965 1964 1963 1962 TotalWest Coast United States to Europe: Asphalt Barley Beans, edible Borax Canned food products Chemicals, unclassified Coal Coke Copra Corn Cotton, raw Flour, wheat Food in refrigeration Fruit: Dried Fresh (excluding bananas) Grains, unclassified Groceries, unclassified Honey Infusorial earth Lumber Machinery Manufactures of iron and steel Metals: Aluminum Copper Scrap Other and unclassified Oats Oilseeds Ore, mangarjese

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PANAMA CANAL COMPANY 95 Table 24.— Important Commodity Shipments Over Principal Trade Routes Pacific to Atlantic— Continued [Thousands of long tons]

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96 FINANCIAL REPORT AND STATISTICAL DATA Table 24.— Important Commodity Shipments Over Principal Trade Routes Pacific to Atlantic— Continued [Thousands of long tons] Fiscal year West Coast Canada to East Coast South 1965 1964 1963 1962 America : Flour, wheat Paper and paper products 5 Potash 33 Sulfur 27 Wheat 253 Woodpulp 16 All other and unclassified 6 Total 340 West Coast Canada to West Indies: Flour, wheat 8 Lumber 108 Wheat Woodpulp 1 All other and unclassified 5 Total 122

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PANAMA CANAL COMPANY 97 Table 24.— Important Commodity Shipments Over Principal Trades Routes Pacific to Atlantic— Continued [Thousands of long tons] West Coast Canada to Africa — Continued: Woodpulp All other and unclassified Total West Coast Canada to Asia ( Middle East ) : Lumber Sulfur Wheat All other and unclassified Total West Coast Central America/Mexico to East Coast United States: Bananas , CofFee Food in refrigeration Lumber Molasses Oilseeds Ores: Iron Manganese Sugar All other and unclassified Total West Coast Central America/Mexico to East Coast Central America/Mexico: Wheat All other and unclassified Total West Coast Central America/Mexico to East Coast South America: Beans, edible Copra Food in refrigeration Lumber Oilseeds All other and unclassified Total West Coast Central America/Mexico to Cristobal, C.Z.: Coffee Cotton, raw Lumber All other and unclassified Total West Coast Centr-\l America/Mexico to West Indies: Barley Chemicals, unclassified Food in refrigeration Lumber All other and unclassified Total 79 196 9 639 86 2 88 Fiscal year 1965

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98 FINANCIAL REPORT AND STATISTICAL DATA Table 24.— Important Commodity Shipments Over Principal Trade Routes Pacific to Atlantic— Continued [Thousands of long tons] Fiscal year West Coast Central America/Mexico to Europe : Bananas Coffee Corn Cotton, raw Fertilizers, unclassified Honey Lumber Oilseeds Petroleiun and products: Fuel-diesel oil — Rice Sugar Tobacco Wheat All other and unclassified Total West Coast Central America/Mexico to Africa: Rice All other and imclassified 1965 1964 1963 TotaL West Coast South America to East Coast United States: Ammonium compounds Bananas Canned food products Chemicals, unclassified Cocoa and cacao beans Coffee Cotton, raw Fertilizers, unclassified Fishmeal Food in refrigeration Fruit, fresh (excluding bananas) Guano Iron and steel manufactures Lumber Metals: Copper Iron Lead Zinc Other and unclassified Molasses Nitrate of soda : Oil, whale Ores: Antimony Chrome Copper Iron Lead Manganese Tin Zinc Other and unclassified Potash 16 61 196 121 79 3 43 86 7 130 7 3 52 70 20 4 341 14 6 51 9 912 407 573 5 9 13 191 3 213 7 29 2 50 306 14 17 16 3 86 375 5 4 21 39 3,583 5 7 17 59 105 1 62 175 5 31 59 23 368 1962 15 99 4 32 65 12 296 5

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PANAMA CANAL COMPANY 99 Table 24.— Important Commodity Shipments Over Principal Trade Routes Pacific to Atlantic— Continued [Thousands of long tons] Fiscal year West Coast South America to East Coast 1965 1964 1963 1962 United States — Continued: Soda and sodixim compounds 7 Sugar 388 287 488 653 All other and unclassified 24 23 23 31 Total 6,169 5,419 5,669 7,219 West Coast South America to East Coast Canada : Coffee 3 5 6 4 Lumber 3 2 4 3 Metal, zinc 10 11 Ores: Iron 91 189 244 228 Zinc 14 3 All other and unclassified 6 2 4 6 Total 103 212 268 255 West Coast South America to East Coast Central America/Mexico: Fishmeal 21 19 13 N.A. Nitrate of soda 10 9 9 7 Paper and paper products 9 5 1 All other and unclassified 3 5 13 Total 43 38 24 lo West Coast South America to Cristobal, C.Z.: Beans, edible 112 Molasses 1 Ore, antimony . 1 All other and unclassified 5 3 2 Total 6 4 6 West Coast South America to East Coast South America: Fertilizers, unclassified 15 Fishmeal 19 17 16 N.A. Lumber 112 1 Oil, fish 12 4 3 Potash 2 Rice 3 Nitrate of soda 6 9 All other and unclassified 10 10 8 17 Total 42 32 37 45 West Coast South America to West Indies: Beans, edible 3 8 12 Fish, refrigerated 27 31 25 17 Canned food products 2 Fishmeal 2 N.A. Metal, copper 2 Petroleum and products: Fuel-diesel oil_— 4 Rice 33 All other and unclassified 3 2 6 7 Total 33 33 45 73

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100 FINANCIAL REPORT AND STATISTICAL DATA Table 24.— Important Commodity Shipments Over Principal Trade Routes Pacific to Atlantic— Continued [Thousands of long tons] Fiscal year West Coast South America to Europe: 1965 1964 1963 1962 Ammonium compounds 5 16 4 Bananas 431 373 259 269 Beans, edible 22 19 17 15 Canned food products 7 8 9 8 Coal 34 Cocoa and cacao beans 11 10 12 12 Coffee 103 121 107 91 Cotton, raw 57 76 88 86 Fertilizers, unclassified 2 3 8 762 Fishmeal 1,220 931 869 N.A. Fruit, fresh ( excluding bananas ) 25 25 19 13 Lumber 25 11 7 5 Metals : Copper 340 321 353 381 Iron 1 1 2 21 Lead 35 43 30 49 Tin 7 14 Zinc 33 34 15 16 Other and unclassified 3 4 11 Molasses 13 26 Nitrate of soda 364 352 318 374 Oils: Fish 169 82 169 117 Whale 1 15 7 Oilseeds . 61 59 54 69 Ores: Copper 90 126 96 48 Iron 2,700 2,786 2,814 2,096 Lead 42 49 34 42 Tin 40 50 50 56 Zinc 79 129 117 102 Other and unclassified 42 19 21 18 Petroleum and products: Crude oil 172 187 189 190 Rice 5 9 7 4 Sugar 4 127 1 Vegetables, dry 28 10 26 16 Wine 7 8 9 3 Wool 4 12 12 10 All other and unclassified 52 47 41 46 Total 6,186 6,097 5,803 4,927 West Coast South Amemca to Africa: Rice 17 Sugar 10 All other and unclassified 1 Total 10 18 West Coast South Amemca to Asia ( MmoLE East): Cotton, raw 4 3 Metals, miscellaneous 4 6 Nitrate of soda 15 4 9 44 All other and unclassified 6 2 2 Total 29 15 9 46

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PANAMA CANAL COMPANY 101 Table 24.— Important Commodity Shipments Over Principal Trade Routes Pacific to Atlantic— Continued [Thousands of long tons] Fiscal year Balboa, C.Z., to East Coast United States: CoflEee Fish, refrigerated Machinery Sugar All other and unclassified 1965 1964 1963 Total25 11 Hawaiian Islands to East Coast Unfted States : Canned fruit Sugar All other and unclassified Total Hawaiian Islands to East Coast Canada: Canned fruit All other and unclassified TotalHawauan Islands to Europe: Canned fruit All other and unclassifiedTotal Oceania to East Coast United States: Barley Canned food products Dairy products, refrigerated Iron and steel manufactures Meat, refrigerated Metals: Iron Lead Molasses Ores: Zinc Other and unclassified Sand Skins and hides Sugar Sulfur Wool All other and unclassified TotalOcEANiA TO East Coast Canada: Barley Canned food products Fruit, dried Iron and steel manufactures Meat, refrigerated Ores, miscellaneous Sugar Wool AU other and unclassified 2 25 1 19 156 267 30 58 39 32 118 I 20 219 100 3 22 212 71 21 63 23 721 781 12 14 10 12 Total26 18 119 7 5 201 32 9 103 5 4 175 12 5 19 11 281 12 44 65 11 18 170 75 18 729 6 14 9 27 2 148 4 5 215 1962 208

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102 FINANCIAL REPORT AND STATISTICAL DATA Table 24.— Important Commodity Shipments Over Principal Trade Routes Pacific to Atlantic— Continued [Thousands of long tons] Oceania to East Coast Central America/ 1965 Mexico: Wool All other and unclassified Total Oceania to East Coast South America: Copra All other and unclassified Total Oceania to West Indies: Canned food products Dairy products, refrigerated Flour, wheat Iron and steel manufactures Meat, refrigerated Tallow All other and unclassified Total Oceania to Europe: Canned food products 50 Cocoa and cacao beans 2 Copra 71 Dairy products, refrigerated 262 Fruit, fresh ( excluding bananas ) 47 Groceries, unclassified 1 Meat, refrigerated 370 Metals: Lead 15 Other and unclassified 6 Oil, coconut 18 Ores: Zinc 9 Other and unclassified 3 Petroleum and products: Fuel-diesel oil — Phosphate 214 Seeds, excluding oilseeds 5 Skins and hides 21 Sugar 189 Tallow 21 Wool 136 All other and unclassified 36 Total 1,476 Asia to East Coast United States: Automobiles and accessories 12 Bricks and tde 45 Canned food products 115 Chemicals, unclassified 24 Coffee 5 Copra 33 Electrical machinery and apparatus 42 Fibers, miscellaneous 12 Fish, refrigerated 10 Floor coverings 21 Glass and glassware 22 Groceries, unclassified __» 10 Fiscal year 1964 1963 1962 12

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PANAMA CANAL COMPANY 103 Table 24.-Important Commodity Shipments Over Principal Trade Routes Pacific to Atlantic— Continued [Thousands of long tons] Asia to East Coast United StatesContinued: Hemp, unmanufactured Iron and steel manufactures Jute Lumber Machinery Metals, miscellaneous Molasses Motorcycles, bicycles, and partsOils: Coconut Vegetable, miscellaneous — Whale Ores: Chrome Manganese Other and unclassified Porcelainware Rubber: Crude Manufactured Spices Sugar Textiles Tobacco All other and unclassified Total Asia to East Coast Canada: Canned food products Iron and steel manufactures. Lumber Textiles Ore, chrome Porcelainware All other and unclassified Total Asia to East Coast Central America/ Mexico: Copra Iron and steel manufactures Rubber, crude All other and unclassified Total Asia to East Coast South America: Chemicals, unclassified Copra Creosote Electrical machinery and apparatus Iron and steel manufactures Machinery Metals, miscellaneous Porcelainware Railroad materials Textiles Tinplate Woodpulp AU other and unclassified Total 19 3 42 1 4 209 7 10 3 11 6 24 49 369 Fiscal year 1965

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104 FINANCIAL REPORT AND STATISTICAL DATA Table 24.— Important Commodity Shipments Over Principal Trade Routes Pacific to Atlantic— Continued [Thousands of long tons] AsL\ TO Cristobal, C.Z.: Iron and steel manufactures. Jute Lumber Rubber, crude Textiles All other and unclassified TotaL Asia to West Indies: Beans, edible Bricks and tile Canned food products Chemicals, unclassified Cement Coal Electrical machinery and apparatusFish, refrigerated Glass and glassware Iron and steel manufactures Lumber Machinery Meat, refrigerated Paper and paper products Porcelainware Rice Soybeans Textiles Tinplate Woodpulp All other and unclassified Total Asia to EtmoPE: Canned food products Chemicals, unclassified Food in refrigeration Iron and steel manufacturesLumber Oils: Coconut Whale Paper and paper products All other and unclassified Total 1965 4 2 1 2 3 23 35 1 3 2 1 4 23 4 7 4 21 46 4 13 8 5 19 3 6 36 210 10 21 2 10 12 32 9 4 27 Fiscal year 1964 4 2 3 2 3 24 38 3 27 2 10 1 17 23 9 10 10 4 5 6 7 9 9 5 25 1963 3 4 3 3 6 20 39 1 8 4 1 10 1 3 1 11 58 3 4 26 J 962 4 25 38 11 2 1 1 1 8 33 2 3 4

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PANAMA CANAL COMPANY 105 Table 25.— Small Vessels^ Transiting Canal Fiscal year 1965 Atlantic to Pacific to Fiscal year ^ 1 / „ . \ Pacific Atlantic Total 1964 Commercial ( tolls-paymg ; : Number of transits: Assessed on net tonnage 288 283 571 622 Assessed on displacement tonnage 2 7 9 5 Total, transits 290 290 580 627 Panama Canal net tonnage 30,022 32,883 62,905 57,587 Displacement tonnage 403 2,497 2,900 2,092 Tolls $25,056 $28,873 $53,929 $48,686 Cargo (long tons) 11,526 9,172 20,698 19,202 Government (tolls credit): Number of transits: Assessed on net tonnage 12 12 24 23 Assessed on displacement tonnage 45 39 84 96 Total, transits 57 51 108 119 Panama Canal net tonnage 354 259 613 969 Displacement tonnage 5,380 2,322 7,702 6,291 Tolls $2,945 $1,347 $4,292 $3,844 Cargo (long tons) Combined Commercial/Government: Number of transits: Assessed on net tonnage 300 295 595 645 Assessed on displacement tonnage 47 46 93 101 Total, transits 347 341 688 746 Panama Canal net tonnage 30,376 33,142 63,518 58,556 Displacement tonnage 5,783 4,819 10,602 8,383 ToUs $28,001 $30,220 $58,221 $52,530 Cargo (long tons) 11,526 9,172 20,698 19,202 1 Includes vessels under 300 net tons ( Panama Canal measurement ) , or under 500 displacement tons for vessels assessed on displacement tonnage. This tra£5c is not included in any of the summaries of oceangoing traffic. 11351 15

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106 FINANCIAL REPORT AND STATISTICAL DATA Table 26.— Water Supply and Usage Fiscal year 1965 1964^ Madden and Gatun Lake Water Sxn>PLY: (Acre-feet) Total runoff, Madden Lake Basin 1,624,541 1,826,262 Evaporation from Madden Lake 45,363 44,444 Available for Madden Lake uses 1,579,178 1,781,818 Total runoff, Gatun Lake (area below Madden) 2,572,222 2,859,527 Subtotal 4,151,400 4,641,345 Evaporation from Gatun Lake 482,208 478,834 Available for Gatun Lake uses 3,669,192 4,162,511 Madden Lake Water Usage: Madden hydroelectric power 1,520,363 1,508,425 Madden spillway discharge 91,850 313,705 Total, Madden Lake usage 1,612,213 1,822,130 Madden Lake volume 336,249 369,284 Gain or loss in storage -33,035 -40,312 Gatun Lake Water Usage: Gatun hydroelectric power 1,535,009 1,453,719 Gatun and Pedro Miguel lockages 1,892,172 1,880,854 Municipal and other uses 69,628 68,044 Subtotal 3,496,809 3,402,617 Gatun spillway discharge 559,780 776,951 Total, Gatun Lake usage 4,056,589 4,179,568 Net annual runoff, Gatun Lake Basin 3,669,192 4,162,511 Gatun Lake volume 3,935,813 4,290,174 Gain or loss in storage -354,361 +23,255 Percent of usage, fiscal year 1965 1964 94 6 38 46 2 86 14 100 83 17 100 100 35 45 2 82 18 100 Table No. 27.— Dredging Operations, Fiscal Year 1965 [Cubic yards] Location Earth Rock Canal Prism Dredging: Atlantic entrance maintenance 317,700 Pacific entrance maintenance Gatun Lake and Gaillard Cut maintenance1,097,400 153,000 Harbors maintenance 1,575,000 1,100 Total, Canal prism 2,990,100 154,100 AUXILL\RY AND CONSTRUCTION DrEDGING: Empire Reach and Mandinga Flare Cut widening project 200 20,500 Total, Canal dredging 2,990,300 174,600 Grand total, fiscal year 1965 2,990,300 174,600 Grand total, fiscal year 1964 4,413,600 566,500 Total 317,700 i~25~0~,400 1,576,100 3,144,200 20,700 3,164,900 3,164,900 4,980.100

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PANAMA CANAL COMPANY 107 Table 28.— Electric Power Generated [ Kilowatt-hours] Fiscal year Gross Power Generated: 1^65 1964 Gatun Hydro Station 96,688,200 88,102,100 Madden Hydro Station 178,405,500 174,858,900 Diesel Stations, Panama Canal 169,287,000 155,644,800 Total, generated 444,380,700 418,605,800 Consumed for station service 4,321,915 4,008,862 Net generator output 440,058,785 414,596,938 Received from military diesel units 294,300 Received from Fuerza y Luz (net) 31,133,400 4,902,000 Total 471,486,485 419,498,938 Distributed to consumers 438,442,118 382,028,039 System Losses: Kilowatt-hours 37,366,282 41,479,761 Percent 7.9 9.8 Peakload (kilowatts) 75,200 67,300 Date May 3, 1965 May 19, 1964 System load factor 72.2 71.6 Table No. 29.-Number of Full-Time Employees Paid at U.S. Citizen Rates As of June 30, 1965 1964 ADMINISTRATrVE AND GENERAL: OflBce of the President 44 42 Information OflBce 16 17 Oflfice of the Secretary 4 4 Comptroller's OflBce and StaflE 223 220 Personnel Bureau 62 56 Administrative Services Division 50 50 Supply and Community Service Director 11 9 Marine Director 7 6 Engineering and Construction Director 11 12 Industrial Training 6 6 Transportation and Terminals Director 5 5 Subtotal, Administrative and General 439 427 Operating Organizations: Marine Bureau: Navigation Division 309 296 Locks Division 415 454 Locks Overhaul Industrial Division 133 143 Floating Equipment Inspector 1 i Subtotal, Marine Bureau 858 894 Transportation and Terminals Bureau: Railroad Division 63 67 Harbor Terminals 101 107 Water Transportation Division I33 137 Motor Transportation Division 48 55 Subtotal, Transportation and Terminals Bureau 345 3^7

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108 FINANCIAL REPORT AND STATISTICAL DATA Table No. 29.-Number of FuU-Time Employees Paid at U.S. Citizen Rates— Continued As of June 30, Operating Organizations— Continued: 1^^^ -J^fi^ Supply and Cominunity Service Bureau: Housing Branch 18 16 Grounds Branch 11 11 General Manager's OflBce 49 46 Retail Store Branch 46 51 Service Center Branch 28 27 Tivoli Guest House 4 4 Storehouse Branch 22 22 Procurement Division 18 31 Subtotal, Supply and Community Service Bureau 196 208 Engineering and Construction Bureau: Canal Studies 1 Sea Level Canal Support 3 Meteorology and Hydrography 9 10 Dredging Division 122 135 TraiEc Management 1 1 Water System 44 42 Power System 73 71 Communications Branch 37 36 Maintenance Work 131 119 Electrical Work 97 107 Engineering 54 64 Construction Division 34 38 Subtotal, Engineering and Construction Bureau 606 623 Other: CZCPPCB and CEO 16 17 Annuitant Welfare Program 1 1 Subtotal, other 17 18 Subtotal, Operating Organizations 2,022 2,110 Total, full-time Company, Canal Zone 2,305 2,364 Total, full-time Company, United States 156 172 Total, full-time Company, Japan 1 Grand total, Panama Canal Company 2,461 2,537 Table No. 30.— Number of Full-Time Employees Paid at Non-U.S. Citizen Rates As of June 30. 1965 1964 AOMINISTRATrVE AND GENERAL: OfBce of the President 3 3 Information OfBce 8 8 OfBce of the Secretary Comptroller's Office and Staff 143 118 Personnel Bureau 50 34 Administrative Services Division 99 95 Supply and Community Service Director 1 Marine Director 1 Engineering and Construction Director 1 1 Industrial Training Transportation and Terminals Director Subtotal, Administrative and General 304 261

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PANAMA CANAL COMPANY 109 Table No. 30— Number of Full-Time Employees Paid at Non-U.S. Citizen Rates-Continued As of June 30, Operating Organizations: 1965 1964 Marine Bureau: Navigation Division 1,156 1,133 Locks Division 827 880 Locks Overhaul Industrial Division 309 330 Floating Equipment Inspector Subtotal, Marine Bureau 2,292 2,343 Transportation and Terminals Bureau: Railroad Division 192 202 Harbor Terminals 1,703 1,707 Water Transportation Division Motor Transportation Division 413 418 Subtotal, Transportation and Terminals Bureau 2,308 2,327 Supply and Community Service Bureau: Housing Branch 160 152 Grounds Branch 447 434 General Manager's Office 92 92 Retail Store Branch 921 933 Service Center Branch 303 311 Tivoh Guest House 75 69 Storehouse Branch 206 192 Procurement Division Subtotal, Supply and Conmiunity Service Bureau 2,204 2,183 Engineering and Construction Bureau: Canal Studies Sea Level Canal Support Meteorology and Hydrography 22 22 Dredging Division 647 730 Traffic Management Water System 65 67 Power System 95 95 Communications Branch 22 22 Maintenance Work 721 582 Electrical Work 164 152 Engineering 108 107 Construction Division 7 5 Subtotal, Engineering and Construction Bureau 1»851 1,782 Other: , . , . CZCPPCB and CEO 14 14 Annuitant Welfare Program 6 7 Subtotal, other 20 21 Subtotal, Operating Organizations 8,675 8,656 Total, full-time Company, Canal Zone 8,979 8,917 Total, full-time Company, United States Total, full-time Company, Japan Grand total, Panama Canal Company 8,979 8,917

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CANAL ZONE GOVERNMENT Balboa Heights, C.Z. OFFICE OF THE GOVERNOR December 29, 1965. The Honorable The Secretary of The Army, Washington, D.C. My Dear Mr. Secretary: I have the honor to submit the fourteenth annual report of the Governor of the Canal Zone reviewing the fiscal year ended June 30, 1965. Very respectfully. Robert J. Fleming, Jr., Governor. Ill

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112 IUJ "Z. 01 Ul > o CD LU z: o M -J < <

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Sntroduction CANAL ZONE GOVERNMENT The Canal Zone Government is an independent agency of the executive branch of the Government, directly under the President of the United States, but by delegation (of responsibility) the Secretary of the Army represents the President in the supervision of Canal Zone Government afiFairs. Administrative and executive authority is vested in a Governor who is also ex officio President of the Panama Canal Company. The Governor is appointed by the President of the United States with the approval of the Senate. The Canal Zone Government encompasses the usual functions of government and public health, including civil aflFairs, schools, libraries, postal service, magistrates' courts, police and fire protection, hospitals and other health services, and highways and sewers. The Panama Canal Company, with which the Canal Zone Government is closely interrelated in purposes, organization, and operations, provides administrative, accounting, and personnel management and other seivices to the Canal Zone Government on a reimbursable basis. MAJOR ORGANIZATIONAL CHANGES There were no major organizational changes in the Canal Zone Government during this fiscal year. MAJOR PERSONNEL CHANGES Lt. Col. Otis Bridgeford, USA, was detailed from the U.S. Army to serve as Superintendent, Coco Solo Hospital, effective July 11, 1964, vice Col. Charles L. Lynch, USA. Col. Roosevelt Cafarelli, USA, was detailed from the U.S. Ai-my as Assistant to the Governor effective July 25, 1964, and was reassigned as Health Director eflFective August 18, 1964, vice Col. Robert J. Kamish, USA, reassigned as Assistant to the Governor effective August 18, 1964. Colonel Kamish was relieved from duty with the Canal Zone Government effective August 21, 1964. Mr. William E. LeBrun was promoted to Assistant Chief of Internal Security effective August 2, 1964, vice Mr. Ivan D. Hilliard, retired. Col. Harry D. Offutt, Jr., USA, was detailed from the U.S. Army to sen^e as Director, Gorgas Hospital, effective August 5, 1964, vice Col. Edward Sigerfoos, USA, relieved from duty. 113 11351 — 16

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114 INTRODUCTION Dr. Charles L. Latimer, Jr., was promoted to Assistant Director of Schools (Deputy Superintendent of Schools) eflFective August 13, 1964. Mr. David A. Speir was promoted to Director (Secondary U.S. Schools) effective August 15, 1964, vice Mr. Theophil F. Hotz, promoted to Assistant Superintendent and Director, U.S. Schools, effective May 10, 1964. Dr. Donald W. Skinner was appointed Dean (Canal Zone College) effective August 23, 1964, vice Dr. Charles L. Latimer, promoted. Mr. Robert S. Herr was promoted to Director of Posts effective October 11, 1964, vice Mr. Earl F. Unruh, retired. Dr. Renate M. Schaeffer was employed as Superintendent, Corozal Hospital, effective January 11, 1965, vice Dr. Stuart W. HoUingsworth, resigned. Col. H. R. Parfitt, USA, was appointed Lieutenant GovernorVice President effective June 26, 1965, vice Col. David S. Parker, USA, relieved from duty.

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CJtaptei' I PUBLIC HEALTH SANITATION Malaria eradication continued utilizing bi-y early insecticide residual applications at land licensee sites, maintaining drainage ditches and larviciding throughout the 50 square miles of sanitated areas surrounding the 15 Canal Zone townsites. Blood smear surveys completed in coordination with this activity were all negative. This year malaria incidence showed an increase of 26.7 percent in the number of new cases reported. Of the total of 19 cases for the fiscal year, 7 were determined to have originated in the Republic of Panama. Comparative figures for fiscal year 1964 are 15 cases, with 7 of these originating in Panama. Control of other pest insects, particularly pest mosquitoes, is a concurrent activity with the eradication of malaria mosquito vectors. Spot checks were made during the year for the presence of Aedes aegypti, the yellow fever mosquito, and for the presence of plague infection in rats as well as for the rat flea, Xenopsylla cheopsis; all were reported negative. On the Atlantic side, Telfers Island, an area of over 900 acres dominated by mangrove trees, continued to provide a mosquito breeding problem, due to the impounding of water during dredging operations and the resultant deep cracks in dried mud after the pumping operation. Control has been maintained by larviciding the impounded water and extensive ditch digging and maintenance to provide effective drainage in the low areas. The Gamboa area has a higher total mosquito indice compared with other areas in the Canal Zone. A small number of Anophelene mosquitoes, malaria vectors, and Ciilex mosquitoes, encephalitis vectors, are included in the weekly totals. However, the majority of recorded mosquitoes are the Mansonia species, pest mosquitoes which develop on aerated roots of aquatic vegetation in the Chagres River and the stream inlets into the Canal. In early 1963, one of the possible mosquito control improvements considered for this ai-ea was the use of manatees. At the end of fiscal year 1965, a total of 10 manatees had been established in the Chagres River; 5 are free in the river, and 5 have been penned in a small lagoon for observation of aquatic vegetation removal. No definitive results are apparent as yet in this experiment. 115

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116 PUBLIC HEALTH PREVENTIVE MEDICINE AND QUARANTINE During fiscal year 1965, the general health of the residents in the Canal Zone as reflected by available mortality and morbidity indices continued good. The infant and matemal mortality rates have long been considered sensitive indices to the effectiveness of a community's health resources. There were no maternal deaths recorded during 1965. For calendar year 1964, die infant mortality rate for white children under 1 year per 1,000 live births decreased to 1.08 from 2.01 in 1963. For the non-white group the Canal Zone infant mortality rate is 20.97, giving an overall rate of 14.4 per 1,000 which is lower than in the United States. The mortality of Canal Zone residents, reflected in specific death rates and principal causes of deaths, shows a predominance of deaths due to those chronic illnesses which usually affect the older adult population. During calendar year 1964, 40.6 percent of the Canal Zone resident deaths were caused by heart disease, cancer, vascular lesions affecting the central nei-vous system, while 22 additional deaths were attributed to pneumonia. There were no quarantinable diseases introduced into the Canal Zone during fiscal year 1965, although heavy baffic existed between foreign areas heavily infected and endemically seeded with quarantinable diseases. Similarly, no epidemics were reported, nor were tliere outbreaks of any serious communicable diseases introduced by way of foreign shipping or aircraft. For the third straight year, the Zone has been free of diphtheria and poliomyelitis. Eleven cases of hepatitis occurred, up slightly from the previous year. Among the communicable diseases which rose in incidence during the year were venereal diseases, hepatitis, measles, mumps, streptococcal infections, tuberculosis, typhoid fever, and scarlet fever. Declines in incidence were reported for amebiasis, chickenpox, and malaria, DIVISION OF MENTAL HEALTH During its second year of operation, the Division of Mental Health moved closer to the achievement of the long-range goals of a full mental health program for the Canal Zone including the establishment of a Community Mental Health Center, accreditation of Corozal Hospital, and the establishment of a psychiabic residency training program. Corozal Hospital remains the primary inpatient treatment facflity in the Canal Zone. The Psychiatric Service workload at Gorgas Hospital this year showed an encouraging trend, resulting from the increased emphasis on "preventive" psvchiatrv and care on an outpatient rather than inpatient basis. As a result, the monthly average admissions dropped from 31 in 1964 to 19 in 1965. In conjunction with the planning for a full mental health program, a portion of the old Gorgas Hospital Administration Building will be utilized as a community mental health center. The pm'pose of the Community Mental Health Center will be to provide care facilities in the Canal Zone of the type and quality consistent with the recommendations of the Federal Government for communities of similar size in the United States and will include day-care facilities.

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CANAL ZONE GOVERNMENT 117 VETERINARY ACTIVITIES Neither canine nor feline rabies were reported during fiscal year 1963. However, bat rabies, first detected on the Isthmus in 1959, continued to pose a hazard to the health of the Canal Zone residents. Surveillance over its incidence was maintained during the year by routine sampling of bat populations. A total of 4.6 percent of the 480 bats examined at the Veterinary Public Health Laboratory during the year demonstrated rabies virus. Although this represents a decline from the previous year experience of 7.4 percent, the potential risk is still of significance. The Mindi Dairy herd remains free from brucellosis. Eradication was accomplished in fiscal year 1964. The program in the approved dairies in the Republic, operating under the direction of Panama's Ministiy of Agriculture, was accelerated during the year and produced gratifying results. At Mindi Dairy 843 animals were skin tested with tuberculin during fiscal year 1965 with no positive reactors found. Tuberculosis in Panamanian herds supplying milk to the Canal Zone is also controlled by the test and slaughter method. Rigid contiol was exercised over the importation of animals into the Canal Zone, and through the Canal Zone into the Republic of Panama, to prevent the introduction of diseases of agricultural or public health significance. Foot-and-mouth disease was not detected in animals examined aboard vessels arriving in the Canal Zone during the year. No cases have been found since fiscal year 1955 when 38 were observed in a shipment of cattle from Colombia. The workload at the Animal Quarantine Station-Hospital declined approximately 30 percent in animal confinement days during the year, reflecting the eflEect of the reduction in the period of quarantine imposed upon imported dogs and cats, from 120 to 30 days. Outpatient visits to the clinic increased slightly, 0.6 percent over the previous year. A total of 29,762 hospital and quarantine confinement days and 8,375 visits to the outpatient clinic were reported for the year. QUARANTINE The Quarantine Section is concerned with the prevention of the inti'oduction and dissemination of communicable diseases and especially the six quarantinable diseases (smallpox, yellow fever, cholera, plague, typhus, and relapsing fever) and their vectors into the Canal Zone or adjacent areas by vessels or aircraft aniving in the Canal Zone. No noteworthy disease incidence was evident during the year. Two trends, over a 5-year period, are of interest: a decrease in upper respiratory infections, and a gradual increase in venereal disease, reflecting the same pattern being recognized on a worldwide basis by the World Health Organization. Over the last 4 years there has been a substantial reduction in the number of unvaccinated persons who must be held in surveillance when they arrive in the Canal Zone. From a high of 14,498 people arriving without a valid vaccination in 1962, this group has declined to 4,659 in 1965. HOSPITALS AND CLINICS Corozal Hospital is the only hospital in the Canal Zone charged with the institutional care and tieatment of mental illness. In January 1965, Corozal

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118 PUBLIC HEALTH began admitting patients on a 7-day-a-week, 24-hour-a-day basis. Direct admissions began to be taken from all medical facilities in the Canal Zone. Previously, all admissions were transferred from Gorgas Hospital. Remarkable strides in the treatment of acute episodes of psychiatiic diseases were evident in year-end statistics. While admissions rose 43 percent (from 212 in fiscal year 1964 to 304 in fiscal year 1965) , discharges kept pace. The result was an average of 201 inpatients per day, compai'cd with an average of 207 in fiscal year 1964. The average period of hospitalization for patients admitted dming fiscal year 1965 was only 3 weeks. During March 1965 the new Gorgas Hospital annex was opened. The new annex provides a tremendous improvement in patient care facilities; inpatient bed accommodations are now almost entirely private or semi-private. The improved accessibility of the business and general offices to the clinics, medical records, and admitting office has simplified coordination and administrative procedures and control. Health insurance processing has been simplffied; patient processing has improved materially, accompanied by an elimination of many complaints and an improvement in community relations. Associated with the move into the annex was extensive procurement of new equipment, office furniture, and furnishings. Vigorous action has been taken to strengthen both the residency and internship training programs. The goal is to provide top-quality medical care for the Canal Zone population and to enhance Gorgas Hospital's image as a medical center for Latin America. A consultant group from the United States conducted a review of the resident and intern training programs at Gorgas Hospital dm'ing November 1964. The group was invited to evaluate the entire Gorgas teaching program for interns and residents, prompted by placement of the surgery and ophthalmology services residency programs on probation. By the end of the fiscal year most recommendations to improve the teaching program had been put into efi^ect and new positions had been authorized and/or filled to complete the professional staff. A total of 20 residents wei"e trained during the year in the specialty areas of surgery, orthopedics, medicine, obstetrics, ophthalmology, pathology, and pediatrics. The hospital received 14 interns under the National Intern Matching Plan, 4 more than employed in the previous year. Coco Solo Hospital is the health center on the Atlantic side of the Isthmus for U.S. Government employees and their dependents, members of the Armed Forces and their dependents, beneficiaries of the Veterans' Administration, personnel and passengers of vessels in transit, residents of the Canal Zone, and others entitled to hospital privileges. In general, a continuous gradual increase in workload has been recorded in the hospital over the past 4 years, particularly in the clinics. The average daily census decreased slightly to 89 in fiscal year 1965 in comparison with 91.3 during fiscal year 1964. Inpatient admissions and average bed occupancy declined fractionally in 1965. Clinic visits, on the other hand, were up appreciably in medicine, by 31 percent; surgery and orthopedic, 35 percent;

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CANAL ZONE GOVERNMENT 119 ear-nose-throat, 47 percent; eye, 16 percent; pediatiic, 7 percent; and general outpatient, 10 percent. During the year a program of cataract surgery for selected cases among the disability retirees was initiated. At year's end, 20 patients had achieved improved visual acuity. The death rate from all causes for the Canal Zone population, including employees and non-employees, was 3.229 per 1,000 population in calendar year 1964 as compared to 2.57 in 1963. The live birth rate for the Canal Zone was 14.45 per 1,000 population in calendar year 1964 as compared to 12.75 per 1,000 population in 1963. Palo Seco Hospital is the facility in the Canal Zone charged with the institutional care and treatment of Hansen disease. During fiscal year 1965 three Palo Seco patients were discharged back to their community under the control of a new rehabilitation program conducted by the Republic of Panama. This action offers increased hope to many of the patients and also presages the possibility of eventually closing out the Palo Seco facility. The patient census declined from 103 at the begiiming of the year to 101 patients at the close. Of the remaining patients, 97 are the responsibility of the Republic of Panama and 4 are the responsibility of the Canal Zone Government. During the fiscal year two discharges, one death, and one readmission occurred. The number of adult patients and patient days in Canal Zone Government hospitals for the fiscal years 1965 and 1964 are presented in the following table: Fiscal year 1965 1964 Number of adult patients admitted: Gorgas Hospital 8,612 8,573 Goco Solo Hospital 2,838 3,044 Average length of adult patient stay: Gorgas Hospital (patient days) 11.5 12.9 Coco Solo Hospital (patient days) 9.7 9.6 Adult patient days: Gorgas Hospital 95,419 96,433 Coco Solo Hospital 32,517 33,305 Corozal Neuropsychiatric and Domiciliary Hospital 73,187 75,884 Palo Seco Hospital 36,149 37,337

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Chapter II PUBLIC EDUCATION GENERAL DESCRIPTION The Division of Schools operates schools in English for U.S. citizens as follows: 12 kindergartens; 13 elementary schools, grades 1 through 6; 2 junior high schools, grades 7 and 8; 2 senior high schools, grades 9 through 12; and a Canal Zone College, grades 13 and 14 with certain courses at the third-year college level. Schools are operated in the Spanish language for pupils of Latin nationalities as follows: 3 kindergartens; 4 elementary schools, grades 1 through 6; 3 jtmior high schools, grades 7 and 8; and 2 senior high schools, grades 9 through 12. A program of special education is offered for mentally retarded, physically handicapped, blind or partially blind, deaf or partially deaf, speech defective children, and those needing remedial reading. Enrollments in all schools, kindergarten through college, for the 1964-65 school year totaled 13,813, a decrease of 1.1 percent under the previous school year. Enrollments in the U.S. schools increased by 0.5 percent, while enrollments in the Latin American schools decreased 5.6 percent. The Canal Zone College enrollment increased from 903 in the previous year to 1,053 diuing 1964-65, an increase of 150 students, or 16.6 percent. A tabulation of October 15th day-school enrollments of Canal Zone College for the past 4 years indicates that enrollments have risen from 343 pupils in 1961-62 to 1,053 in 1964-65. This is an increase of 710 students, or 207 percent, during this 4-year period. The College curriculum has been expanded to include third-year college courses. The State Department provided 11 scholarships at the Canal Zone College for students from the Republic of Panama during the school year. The associate in arts degree was awarded to 60 graduates of the College at the close of the school year. Major College building projects completed or underway at the end of this fiscal year included additional dormitory facilities at the College at an expenditure of $130,000 and library and classroom additions, $566,000. In the U.S. elementary schools curriculum studies were carried forward in handwriting, mathematics, and music. Work in language arts and elementary physical education will be emphasized next school year. In the U.S. secondary schools, curriculum committees were actively studying the fields 121 11351 — 17

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122 PUBLIC EDUCATION of industrial arts, home economics, art, music, speech-dramatics, health, boys' physical education, girls' physical education, driver education, and vocational guidance. With the exception of the work of the music and speech-dramatics committees, which will be continued next year, these committees completed a 3-year cycle of cm-riculum study in which all of the secondary level courses were reviewed. This work resulted in new curriculum guides for texts in many courses and the modification or addition of courses in each field. Selected classes were designated as advanced achievement sections in Balboa High School, Cristobal High School, Diablo and Cristobal Junior High Schools, and in gi^ades 4, 5, and 6 of the elementary schools. The first regular summer school for the U.S. schools was held. Enrollment was limited to students who failed a course in the regular year. Nine teachers taught 25 classes of English, social studies, and mathematics. For the first time an in-sei-vice course in teaching elementary physical education was offered in conjunction with Canal Zone College. A total of 17 teachers, specialists, and assistants participated in the course. During February and March 1965, tu'o committees from the Middle States Association of Colleges and Secondary Schools visited the Isthmus to conduct the formal 10-year evaluation for continued accreditation of both Canal Zone high schools and the Canal Zone College. ENROLLMENT Enrollments in kindergarten through college in the U.S. schools increased 53 students, or 0.5 percent, from October 15, 1963, to October 15, 1964. For the corresponding period in the Latin American schools, enrollments in kindergarten through grade 12 decreased by 205 students, or 5.6 percent. Full-time students enrolled in special education classes increased by 12. The total number of tuition students enrolled in U.S. schools decreased from 720 to 696; Panamanian tuition students decreased from 255 to 252; tuition students of other nationalities increased from 48 to 55. There were no tuition students in the Latin American schools. The following table shows total enrollment for 1964-65 school year compared with the previous year. As of October 15th 1964 1963 U.S. citizen schools 10,353 10,300 Latin American schools 3,459 3,664 Total 13,812 13,964 SPECIAL EDUCATION In its eighth year of operation the Special Education Ser\dces provided 3,789 individual examinations for children. A total of 230 children were enrolled in full-time special education classes; 1,423 were enrolled in part-time classes conducted by itinerant teachers. Twenty-one children were confined to their homes or the hospital for an extended period of time and were provided with the services of a visiting teacher. In the U.S. schools, there were 26 special education teachers, and in the Latin American schools, there were 12 special education teachers, plus a full-time teacher at the Palo Seco Hospital and 3 half-time teachers at the Gaturi Juvenile Prison and Gamboa Penitentiary.

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CANAL ZONE GOVERNMENT X23 Classroom instruction for juvenile prisoners was continued at the Gatun Juvenile Prison with five youngsters receiving instruction five times weekly. Classes were also conducted for children at the Palo Seco Hospital. Classes for illiterate and semi-literate convicts at the Gamboa Penitentiary were continued and 40 inmates received instruction. LIBRARY-MUSEUM The Panama Canal Library was established in 1914 by order of Gen. George W. Goethals for the purpose of providing official reference services for the Panama Canal. Small community libraries, also initiated in the Canal Zone by the foresight of General Goethals, grew rapidly and in 1918 became part of the Panama Canal Library. With the re-organization in 1951, the Panama Canal Library became the Canal Zone Library-Museum. The library system consists of 1 1 units— the main library, 3 branches, 4 circulating libraries, 3 job-site libraries, and extension services furnished to the Gorgas Hospital patients' library and to the U.S. elementary schools in the Canal Zone. The workload increased in all measm-able areas during the year. The circulation of materials rose to an all-time high of 515,000 compared to 440,400 in fiscal year 1964. Reference questions answered increased to 24,200, or 9.5 percent, as compared with the volume of 22,100 during fiscal year 1964. A significant development during fiscal year 1965 was the implementation of the Federal Depository Documents Program which became fully operational. The service provides easy access to a mass of materials published by the Federal Government and improves the facilities of the library as a center of information in many areas and on many levels.

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Qiapter III PUBLIC ORDER AND PROTECTION POLICE ACTIVITIES The organized strength of the Police Division was increased from 272 to 339 during fiscal year 1965. Five police privates assigned to the pier gate at Cristobal were relieved by Terminals Division security guards and reassigned to police duties. During the year four armored trucks and two personnel carriers were placed in service for possible use during civil distm^bances. Three trucks and one personnel carrier are stationed at Balboa and one of each at Cristobal. Major additional improvements and changes in the administration and operation of the penitentiary were made during the year. These include the additional assignment of three patrolmen, increased supeiA^ision of prisoners by custodial personnel, initiation of an incentive pay program for inmates, improvement in the serving of hot meals to inmates, installation of mercury vapor lights around the entire compound, installation of sanitary facilities in both towers, completion of the penitentiary chapel, and the start of construction on a new fence alanii system. The number of Part I ofiFenses ( serious oflFenses such as burglaries, larcenies, robberies, felonious assault, etc.) reported to police increased from 1,548 in fiscal year 1964 to 1,638 in fiscal year 1965. The number of traflBc accidents increased from 981 to 1,086, and the number of these accidents involving personal injury or fatality decreased from 248 to 236. Statistics relative to the Police Division during fiscal year 1965, in comparison with figures for fiscal year 1964, are presented in the following table: Fiscal year Classification of Arrests 1965 1964 Male 5,492 4,484 Female 571 403 Total 6,063 4,887 Arrests made with warrants 133 121 Arrests made without warrants 5,930 4,766 Total 6,063 4,887 125

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126 PUBLIC ORDER AND PROTECTION Fiscal year Classification of Arrests 1965 1964 Residents of the Canal Zone 2,207 1,661 Residents of Panama 3,728 3,046 Transients 128 180 Total 6,063 4,887 Charges for traffic violations 4,862 3,800 Charges for misdemeanors 1,277 1,159 Charges for felonies 130 145 Total 6,269 5,104 COURT ACTIVITIES The Magistrates' Courts are judicial units of the Canal Zone Government with duties and functions prescribed by law. The Courts are under the administrative supervision of the Executive Secretary of the Canal Zone. This fiscal vear Court activities increased in both criminal and civil cases for a total rise of 26 percent over last fiscal year. Civil actions handled increased by 77 cases, or 82.8 percent, while additional criminal cases amounted to 1,249, or a 24.9-percent increase over the previous fiscal period. Fines, costs, and forfeitures increased by 27.2 percent. A summary of activities at the Magistrates' Courts, Cristobal and Balboa, during fiscal year 1965, in comparison with figures for fiscal year 1964, is shown in the following table: CristobaJ Balboa Total Cases handled: 1965 1964 1065 1064 1065 1964 Criminal.-1,207 1,454 5,058 3,562 6,265 5,016 Civil 162 36 8 5" 170 93 Total 1,369 1,490 5,060 3,619 6,435 5,109 Disposition of criminal eases: Conviction 1,120 1,385 4,702 3,209 5,822 4,594 Aquittal 38 27 145 122 183 149 Dismissal 21 24 133 153 154 177 Held for District Court 28 18 78 78 106 96 Total 1,207 1.454 6,058 3,562 6,265 5,016 Convictions in which execution of sentence was suspended and defendants placed on probation -_ 123 164 342 312 465 476 Rearrested for violating terms of probation 15 14 12 7 27 21 Fines imposed $14,464 $14,585 $47,826 $34,391 $62,290 $48,976 ADVISORY PARDON AND PAROLE BOARD The Advisory Pardon and Parole Board is appointed by the Governor. Under the provisions of section 1.1 of the Governor's Regulations Governing the Granting of Pardons, Commutations of Sentences, and Parole, efiFective January 2, 1963, the Board consists of five members. The Advisory Pardon and Parole Board acts in an advisory capacity to the Governor in regard to applications for pardon and commutation of penitentiary sentences and with respect to requests for revocation of deportation orders. Subsequent to January 2, 1963, the Board became authorized under the provisions of Executive Regulation No. 23 to make recommendations to the Governor on applications for parole submitted under the provisions of the

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CANAL ZONE GOVERNMENT 127 revised Code which estabhshed a parole system for Canal Zone oflFenders (6 C.Z.C. sees. 6621-6625). During the year the Board considered 25 applications for parole, reviewed 10 cases in which parole had previously been denied, and considered 4 applications for pardon after sei"vice of sentence. The Board submitted recommendations to the Governor in each of these cases. The Governor granted parole in seven cases and pardons in all fomcases. The Board also considered and submitted recommendations on seven applications for revocation of orders deporting persons from the Canal Zone following sei"vice of sentences of imprisonment. The Governor revoked deportation in four cases, and revoked three paroles. FIRE PROTECTION The Fire Division is responsible for firefighting in all civilian and military areas of the Canal Zone including ships in Canal waters, brush, ammuntion and chemical storage areas, missile sites and aircraft crash rescue firefighting at Fort Sherman air strip. This Division is also responsible for rescue and certain emergency lifesaving operations in all areas of the Canal Zone, which consist mainly of first aid, resuscitation, and release of trapped persons. The Air Force and the Army are responsible for aircraft crash rescue firefighting at Albrook and Hov, ard Air Force bases only. Two new fire companies were added to the Division during the fiscal year, one in the Balboa District and one in the Cristobal District. At the end of the fiscal year 1965, there were six stations and seven companies in operation on the Pacific side, and four stations and five companies on the Atlantic side. The two new companies increased the personnel of the Fire Division by 22 employees and established a total force of 151 for the year in comparison to 129 for fiscal year 1964. Comparative general statistics on firefighting operations are presented in the following table: Fiscal year 1965 Fiscal year 1964 Ntirnber Property Number Property of fires loss of fires loss Panama Canal Company/Canal Zone Government 326 $8,612 371 $376,178 Armed Forces 310 394,255 282 3,920 Federal Aviation Agency 4 1 Private (including ships) 88 41.426 107 198,785 Total 728 3444,293 761 $578,883 Calls for emergency aid 246 215 Value of property involved in fires $34,064,973 $35,343,819 CIVIL DEFENSE During August 1964, field work was completed for the National Fallout Shelter Survey Updating Program. The data indicate that there presently are 68,740 existing shelter spaces in the Canal Zone having acceptable protection factors. A study is being conducted to determine how best to match people with usable shelter space. Shelters in the Canal Zone stocked with Federal fallout shelter supplies were increased from 20 to 81 percent during the year. This is based on the 1962 survey of 38,107 spaces of which 31,128 are now stocked.

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128 PUBLIC ORDER AND PROTECTION At year's end the construction of the Balboa Emergency Operations Center at Sosa Hill was practically complete. The station is being furnished to the Canal Zone Government by the Office of Civil Defense, Department of Defense, under authority of Federal Civil Defense Act. All remaining material for the National Communications System radio station was supplied during the year. The station, when completed in September 1965, will be under the operational control of the Canal Zone Government acting through Chief, Civil Defense, and will be maintained by USARSO Signal Section. The station is being installed in the new Balboa Emergency Operations Center.

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Chapter IV POSTS, CUSTOMS AND IMMIGRATION POSTAL SERVICE At the close of the fiscal year 19 postal units were in operation. There were 10 post offices or branch post offices in operation in civilian communities, 5 on Army reservations, 2 on Naval reservations, and 2 on Air Force bases. A mail handling unit was in operation at the Civil Affairs Building, Ancon. During the year an airmail set of stamps and a souvenir folder commemorating the 50th anniversary of the opening of the Panama Canal were placed on sale at the Balboa Post Office. Besides the regular force of 5 philatelic order fillers, 10 student assistants were also utihzed in processing the large number of orders requested by philatelists. This anniversary issue was the largest in orders and revenues received for any one issue. In conjimction with the 50th anniversary, two postal service personnel officially represented the Panama Canal at the New York World's Fair. Sales of the anniversary stamps, souvenir folders, and 50th anniversary books were made at the Fair, With the continuing increase of the military population and their dependents, the amount of mail handled, both dispatched and received, increased substantially over the previous yeai*. The increase in mail handled over the previous year amounted to 9.2 percent. Work force increased by three regular employees as a result of this increased workload. Operations for the past 2 fiscal years are summarized in the following tables: Fiscal year Receipts: 1965 1964 Sale of postage stamps, stamped paper, box rents, permit mailings $1,117,039 $1,001,421 Interest on investments of Postal Savings and money order funds 99,764 110,132 Money order fees collected 72,115 68,407 Other receipts 35,707 14,729 Total receipts $1,324,625 $1,194,689 Statistics relative to the physical volume of the operations of the Canal Zone Postal Service for the past 2 years are covered in the following table: 129 11351 — 18

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130 POSTS, CUSTOMS, AND IMMIGRATION Fiscal year o , , 'SSS 1964 Registered, certified and insured articles handled: Number sent 99,146 107,522 Number received 133,378 146,982 Dispatches of surface mail handled: Number sent 2,405 2,789 Number received 2,821 2,810 Dispatches of airmail handled: Number sent 18,447 18,655 Number received 35,874 33,287 CUSTOMS, IMMIGRATION, AND SHIPPING COMMISSIONER SERVICES In addition to customs, this division also is responsible for immigration, shipping commissioner, and contraband control activities. Custom sei-vices continued to enforce export conti'ol regulations of the Department of Commerce or Department of State on exportations of material from the Canal Zone, including transshipments of cargo and bunkering of vessels at Canal Zone ports. On Jmie 11, 1965, while outside Canal Zone waters, the Norwegian vessel Nidareid was involved in a collision with the Cuban vessel Aracelio Iglesias, causing extensive damage to the Cuban vessel. Canal Zone immigration authorities were alerted and preparations were made to house the 55 crew members of the Cuban vessel. However, the vessel was brought to Pier 14 in Balboa, and pumping operations eflFectively eliminated the danger of sinking and the crew was permitted to remain aboard. The matter of immigration controls on persons previously admitted and the enforcement of immigration regulations in the Canal Zone is delegated to the Immigration Sei-vice of this division. This service is also charged with the operation of the Immigration Station at Corozal. IXuing the fiscal year, the Station handled 1,720 cases involving a total of 5,668 detention days, or an average census of 15.4 daily, as compared with 1,609 cases, 5,050 detention days, and a 13.8 daily average census during the previous fiscal year. The Shipping Commissioner and his deputies have the same authority with respect to U.S. merchant seamen as Commissioners in the U.S. ports and U.S. consuls in foreign ports. During fiscal year 1965, 984 crew-list visas were issued and $1,658 in fees collected at Balboa and 941 crew-list visas issued and $1,642 in fees collected at Cristobal as compared with 1,080 crewlist visas and $1,912 fees collected at Balboa and 992 crew-list visas and $1,788 fees collected at Cristobal during the previous year. The following is a statistical summary of the more important items handled by the Customs Division during fiscal year 1965, together with comparable figures for fiscal year 1964: Fiscal year 1965 1964 Vessels entered from sea 13,578 13,422 Passengers disembarked, vessels 9,566 10,308 Passengers disembarked, aircraft 28,169 21,993 U.S. seamen discharged or signed on 334 299 Other seamen discharged or signed on 4,947 4,970 Number of detention days. Immigration Station 5,668 5,050 Contraband irregularities investigated 414 350

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CANAL ZONE GOVERNMENT 131 VISAS Duiing fiscal year 1965, visas were issued by the Executive Secretary to alien residents of the Canal Zone traveling to the United States. Of these, 3 were quota immigrant visas, 253 were nonquota immigrant visas, and 277 nonimmigrant visas. Fees collected for visas amounted to $6,490,

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Chapter V LICENSES, INSURANCE, AND ESTATES LICENSES The mission of the License Section is to issue, administer, and eflFect collection of the appropriate fees for vehicular, land, and miscellaneous licenses and permits in conformity with all existing laws, tieaties, regulations, policies, and tairffs. The Canal Zone Government policy to gradually depopulate the Canal Zone of agricultural land licensees by attrition was carried out as it has been since its inception in 1951. Fifteen agricultural land licenses, covering a total of SSVa hectares of land, were terminated; 8 by reason of death of the licensee, and 7 were terminated due to need of the land for militaiy purposes. As of June 30, 1965, there were approximately 57,000 licenses and permits in force. Issuance of a new type land license was inaugurated, eflFective July 1, 1964. This new license covers the assignment of an area of land and water for boat recreational purposes in the Gamboa area. To date 51 recreational sites have been issued at an annual rate of $12 each. As a result of a comprehensive economic review, new rental rates for lands in the Canal Zone have been established and approved, eflFective April 1, 1965. Requirements for the licensing of cats became eflFective for the first time during the fiscal year. A total of 266 cat licenses were issued. Principal types of licenses handled during fiscal year 1965 in comparison with the corresponding figures for fiscal year 1964 are shown in the following table: Vehicle licenses Motor vehicle operator licenses and permits. Vehicle registrations transferred Dog licenses Land licenses in force at year's end Annual revenue Fiscal

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134 LICENSES, INSURANCE, AND ESTATES INSURANCE The license fee for insurance companies doing business in the Canal Zone is $10 per calendar year with a tax of IV2 percent on insurance premiums collected. At the end of calendar year 1964, 43 companies were licensed to write insurance in the Canal Zone. Life insurance companies reported that, as of December 31, 1964, 7,828 ordinary life policies were in force having an aggregate value of $37,132,323. Premiums collected on life insurance (ordinary and group) during calendar year 1964 totaled $1,438,816. Claims settled during the year amounted to $81,780. During calendar year 1964, premiums received by miscellaneous insurance companies including accident, automobile, liability, fire, surety, fidelity, etc., but excluding life insurance, amounted to $2,320,061. Claims paid during the year totaled $3,618,337. The tax of IV2 percent on premiums paid by all classes of insurance companies amounted to $57,767 for fiscal year 1965. ADMINISTRATION OF ESTATES The estates of 16 persons, with total assets of $11,846, were settled by the Public Administrator as compared with 9 estates settled last year. At the close of the year there were being handled 10 estates of deceased or insane persons with assets on hand of $66,052 on June 30, 1965, as compared with 15 estates and $71,222 on June 30, 1964. FOREIGN CORPORATIONS The licensing of foreign corporations to do business in the Canal Zone is shown below. Insurance companies, steamship lines and agencies, contractors, and other corporations are included in this group. Fiscal year 1965 1964 Foreign corporations licensed 219 216 Licenses and filing fees collected $2,190 $2,160

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Ckaptet V I MUNICIPAL IMPROVEMENTS ROADS AND STREETS A combined length of 144.37 miles of streets and highways within the Canal Zone was maintained during the year. Maintenance included all types from minor grass cutting and cleaning of ditches to major replacement of concrete and asphalt paving. MAINTENANCE OF QUARTERS, HOSPITALS, AND PUBLIC BUILDINGS The regular maintenance of quarters was continued throughout the year. Maintenance work included small individual jobs, on inspection and call basis, covering minor plumbing repairs, interior painting, roof repairs, masomy patch work, drilling masonry walls for termite treatment, touch-up painting and carpentry repairs due to deterioration and termite damage. The experimental program of preventive maintenance was continued on the group of 38 houses (57 apartments) in the Ancon area which was started in fiscal year 1964. This fiscal year the experimental program of preventive maintenance was started on a group of 23 houses (54 apartments) in the Paraiso area. In addition, in the Margarita area 26 houses (61 apartments) were begun in August 1964, and 12 more houses (48 apartments) were added to the program in January 1965. Routine maintenance work was performed on the buildings and equipment at the hospitals. Steamplants were operated and overhauled. Miscellaneous repairs involving masonry, plumbing, refrigeration, air conditioning, icemakers and water coolers, cai-pentry, painting, sheetmetal, roofing, and steam lines were also performed during the year. Miscellaneous services were furnished the Federal Aviation Agency in its local activities. These are a continuing service: miscellaneous on-call repairs to quarters at Cardenas, maintenance of storm sewers, sanitary sewers, water system, electrical distribution system; streets including sb-eet lighting and traffic signals; and maintenance of key equipment and associated communication system in the new Air Route Traffic Control Center/International Flight Service Station building, service furnished on a 24-hour basis. In addition, microwave links were rented to the FAA to serve their various installations on the Isthmus. 135

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136 MUNICIPAL IMPROVEMENTS Maintenance of the Thatcher Ferry Bridge during the fiscal year consisted of spot painting approximately 40 percent of the bridge with two coats of red lead and two coats of aluminum paint. In addition, 36 bolts were replaced in expansion joints. SEWER SYSTEM The length of sanitary sewers and storm di'ains maintained by the Maintenance Division is 204.57 miles. The work performed included maintenance of sewer pump stations in Balboa, Gamboa, Paraiso, Rainbow City, Cristobal, Margarita, Fort Davis, Coco Solo, and France Field; comminutor at Pedro Miguel and Sewage Treatment Plant in Rainbow City.

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Ckaptet VII FINANCIAL REPORT AND STATISTICAL DATA FINANCIAL STATEMENTS AND RELATED SUPPLEMENTARY REPORTS FOR THE YEAR ENDED JUNE 30, 1965 Presented herewith are tlie financial statements of the Canal Zone Government for the year ended June 30, 1965. These statements with their related notes which appear as tables 1 through 4 present the financial position of the agency at June 30, 1965, and the financial results of its operations for the fiscal year then ended. The accompanying statements have been examined by the General Auditor of the Panama Canal Company and are subject to audit by the General Accounting Ofiice. Activities of the agency are initially financed by congressional appropriations. Operating appropriations are available for obligations only in the yeai' for which the appropriations are made. Capital appropriations are available until expended. The agency's operating accounts are kept on an accrued cost basis, including depreciation of fixed assets, in accordance with generally accepted accounting principles, while the status of appropriated fimds is determined on an obligations incurred basis in accordance with Government requirements. The agency's revenues are derived from charges to individuals and other Government agencies using its services. All revenues thus received are remitted to the U.S. Treasury as miscellaneous receipts. The excess of total accrued costs, including depreciation, over revenues (net cost of Canal Zone Government) is payable to the U.S. Treasury by, and treated as an expense of, the Panama Canal Company in accordance with the requirements of section 62 of title 2 of the Canal Zone Code. All operating and capital funds expended by the Canal Zone Government are thus eventually returned to the U.S. Treasury, with no cost to the U.S. taxpayer. The agency also operates a postal savings and money order system. Funds on deposit in the postal savings account are invested in U.S. Government securities at rates of interest to cover the 2 percent interest paid to depositors and expenses of the service. 137 11351 — 19

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138 FINANCIAL REPORT AND STATISTICAL DATA Table 1.— Comparative Statement of Financial Assets 1965 1964 Current Assets: Fund balances with U.S. Treasury and cash: Fund balances in U.S. Treasury checking account $10,894,874 $10,027,281 Cash on hand and in transit 212,914 253,983 11,107,788 10,281,264 U.S. Treasury bonds and notes at cost 3,600,000 4,100,000 Accounts receivable: U.S. Government agencies 406,157 795,784 Republic of Panama 984,585 771,950 Other 503,263 537,417 Accrued interest receivable on postal fund investments 15,076 16,847 1,909.081 2,121,998 Inventory of hospital supplies 220,624 206,209 Other current assets 19,880 12,867 Total current assets 16,857,373 16,722,338 Fixed Assets ( table 4 ) : Cost , 69,097,065 63,760,403 Less depreciation and valuation allowances 22,616,999 21,283,824 46,480,066 42,476,579 63,337,439 59,198,917 Invested Capital Invested capital consists of fixed assets and inventories of materials and supplies less allowances for depreciation and obsolescence of fixed assets, and less the potential liability for employees' accrued leave, which under the law is not an obligation against appropriated funds until paid. Certain fixed assets amounting to $281,000, which represents defense expenditures by the Department of Defense and excess facilities transferred to the Canal Zone Government, have been eliminated from these statements. Table 2 shows the status of this fund and appropriated funds at the beginning and end of the year, and summarizes the changes which occurred during the year.

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CANAL ZONE GOVERNMENT 139 Condition, June 30, 1965 and 1964 Liabilities and equity 1965 1964 Cui\RENT Liabilities: Accounts payable: Due U.S. Treasury $2,796,226 $2,853,723 Panama Canal Company and other U.S. Government agencies 2,779,929 1,155,841 Postal money orders payable Less advance deposits with U.S. Post OflBce Department 5,576,155

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140 FINANCIAL REPORT AND STATISTICAL DATA Table 2.— Statement of Changes in Equity of the U.S. Government, Fiscal Year Ended June 30, 1965 Operating Capital Invested Eqiiiry AT JuLy 1, 1964: ^"'^^ /""'^« •''«"'*' '^"P''"' Unobligated funds$5,857,583 $5,857,583 Obligated funds 1,466,287 $182,337 1,283,950 Invested capital: Fixed assets, net 42,476,579 $42,476,579 Inventories 206,209 206,209 Unfunded liability for employees' accrued leave (2,365,420) (2,365,420) 47,641,238 182,337 7,141,533 40,317,368 Increases in Equiry: Appropriations by the Congress __34,781,000 29,960,000 4,821,000 Municipal facilities financed from Thatcher Ferry Bridge funds, transferred to Canal Zone Government. 18,464 _ — 18,464 Building 7029 transferred from the Panama Canal Company for use as fire station 55,490 55,490 34,854,954 29,960,000 4,821,000 73,954 Decreases in EQurry: Net cost of (5anal Zone Government (table 3): Accrued funded operating expenses 29,068,761 29,068,761 Depreciation 1,394,033 1,394,033 Plant adjustments, net.. 60,356 60,356 Increase in liability for employees' accrued leave. .. 224,233 224, 233 30,747,383 29,068,761 1,678,622 Less recovery of costs 12,303,917 12,303,917 Net cost for year _ _ 18,443,466 16,764,844 1,678,622 Other decreases: Recovery of costs coverable into U.S. Treasury: From regular operations 12,303,917 12,303,917 From disposition of fixed assets 5,089 5,089 Building 1004 Cristobal transferred to the Panama CanalCompany for use by the Personnel Division 12,130 12,130 Unobligated operating funds withdrawn by U.S. Treasury, net of restoration of $3,371.00 822,844 822,844 13,143,980 13,126,761 17,219 Total decreases 31,587,446 29,891,605 1,695,841 TiuNSPERS Between Funds: Capital expenditures (5,397,726) 5,397,726 Removal cost of plant retirements (3,415) 3,415 Increase in inventories (14,415) 14,415 (14,415) (5,401,141) 5,415,556 Net increase or (decrease) .. 3,267,508 53,980 (680,141) 3,793,669 Equity at June 30, 1965: Unobligated funds_ 4,849,074 4,849,074 Obligated funds 1,948,635 236,317 1,712,318 Fixed assets, net 46,480,066 46,480,066 Inventories 220,624 220,624 Unfunded liability for employees' accrued leave (2,589,053) (2,589,653) Total.... 50,908,746 236,317 6,561,392 44,111,037

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CANAL ZONE GOVERNMENT 141 Table 3.-Statement of Operations, Year Ended June 30, 1965 CrviL Functions: Office of director Customs and immigration. Postal service Police protection Fire protection Judicial system Education _-. — Public areas and facilities. Library Internal security Civil defense Licenses and other fees Health and Sanitation: Office of director Hospitals and medical services: Gorgas Hospital and clinics. Coco Solo Hospital and clinics Corozal Hospital Palo Seco Hospital Public health centers Other public health services: Sanitation Garbage collection Preventive medicine and quarantine School health unit Veterinarian services Cemeteries, operation and maintenance Operating Expenses Other Accrued non-fund Funded Deprecharges costs ciation and credits Total $126,808 $180 $126,988 604,690 756 605,446 1,347,447 5,903 ._ 1,353,350 2,949,414 43,413 2,992,827 1,116,086 30,913 $879 1,147,878 107,828 1,741 109,569 8,055,331 380,576 8,435,907 1,250,400 629,499 1,879,899 218,125 684 218,809 185,641 _. 185,641 32,287 4,884 37,171 44,750 228 44,978 16,038,807 1,098,777 879 17,138,463 143,402 143,402 5,997,177 115,132 6,112,309 2,076,861 71,118 2,147,979 1,021,340 29,671 76 1,051,087 202,011 7,426 98 209,535 193,920 193,920 436,890 3,211 43 440,144 157,000 157,000 188,089 1,425 189,514 71,435 --. 71,435 172,539 2,942 175,481 73,679 996 74,675 Net cost of operations borne by Panama Canal Recoveries Company $126,988 $31,898 573,548 1,324,815 28,535 22,416 2,970,411 582,965 564,913 63,109 46,460 4,809,540 3,626,367 1,879,899 6,390 212,419 185,641 37,171 169,053 (124,075) 7,010,186 10,128,277 1,640 141,762 3,577,135 1,082,114 77,093 214,106 17,684 6,186 54,975 20,485 2,535,174 1,065,865 973,994 (4,571) 176,236 433,958 157,000 189,514 71,435 120,506 54,190

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142 FINANCIAL REPORT AND STATISTICAL DATA Table 4.— Comparative Statement of Fixed Assets, June 30, 1965 and 1964 1965 1964 DepreciaDepreciation and tion and valuation taluation Cost allowances Cost allowances Permanent TowNsiTES $7,657,120 $3,214,209 $7,484,414 $3,072,615 Roads, Streets, Sidewalks, Street Lighting, Sewer SysTEM AND Public Areas and Facilities: Roads, streets, and sidewalks 12,866,894 7,257,922 12,743,615 6,963,342 Sewersyst«m -6,247,988 2,087,732 0,178,361 1,944,368 Public areas and facilities 332,151 57,196 288,758 48,061 Street lighting system 1,145,434 504,535 1,139,915 467,221 Fire hydrant system 227,646 110,277 227,761 104,592 20,820,113 10,017,662 20,578,410 9,527,584 Supporting and General Facilities: Health bureau 14,370,400 3,130,925 8,754,746 2,929,283 Schools division 16,089,070 3,341,545 15,315,114 2,966,321 General offices and other buildings 2,498,760 1,303,907 2,398,541 1,258,293 Police di vision _ -.-. -762,541 295,296 704,113 269,203 Postal service. 194,952 51,143 194,963 45,240 Customs and immigration 218,197 212,878 218,197 212,122 Fire division .724,780 356,746 569,744 283,935 Magistrates' courts71,721 31,328 58,002 29,586 Miscellaneous equipment 848 848 848 848 Experimental gardens _. 36,217 10,580 31,818 9,404 License section. -3,274 1,313 3,274 1,085 Civial affairs director 96,619 19,953 69,159 26,438 Library section. 13,667 1,596 12,517 912 35,081,046 8,758,058 28,331,036 8,032,670 Construction Work in Progress 3,561,008 5,282,660 Retirbments IN Progress 2,546 2,335 67,981 33,485 Facilities Held FOR Future Use 1,975,233 624,735 2,015,902 617,470 Total 69,097,066 22,616,999 63,760,403 21,283,824

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CANAL ZONE GOVERNMENT 143 STATISTICAL DATA Personnel data The number of U.S. citizens employed by the Canal Zone Government as of Jmie 30, 1965, was 1,365 as compared to 1,307 on June 30, 1964. The non-U. S. citizen force numbered 1,454 as of June 30, 1965, as compared with 1,353 on June 30, 1964. The number of full-time employees of the Canal Zone Government organization paid at U.S. citizen rates and non-U. S. citizen rates is showTi in the following tables : Number of Full-time Employees Paid at U.S. Citizen Rates As of June 30, 1965 1964 Office of the Governor , 6 6 Civil Affairs Bureau: Director (including Civil Defense and License Section) 16 14 Schools Division 442 421 Police Division 247 207 Fire Division 39 38 Customs Division 49 49 Library Section 15 11 Land Licenses 2 2 Postal Division 87 97 Recreation Program 1^ 1 Total, Civil Affairs Bureau 898 840 Health Bureau: Director's Office 6 8 Gorgas Hospital 275 283 Coco Solo Hospital 92 91 Corozal Hospital 27 24 Palo Seco Hospital 5 4 Preventive Medicine and Quarantine (including other Public Health Service) 23 18 Sanitation 8 8 Veterinary Medicine 6 5 Total, Health Bureau 442 441 Other: Internal Security Office 13 15 Magistrates' Courts 5 5 Social V^ork 1^ Total, other 19 20 Total, full-time Government 1,365 1,307

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144 FINANCIAL REPORT AND STATISTICAL DATA Number of Full-time Employees Paid at Non-U. S. Citizen Rates As of June 30, 1965 1964 Office of the Governor 2 2 Civil Affairs Bureau: Director (including Civil Defense and License Section) 1 1 Schools Division 351 345 Police Division 71 44 Fire Division 111 90 Customs Division 13 12 Library Section 8 7 Land Licenses Postal Division 11 Recreation Program Total, Civil Affairs Bureau 566 499 Health Bureau: Director's Office 1 Gorgas Hospital 445 422 Coco Solo Hospital 142 139 Corozal Hospital 131 126 Palo Seco Hospital 17 17 Preventive Medicine and Quarantine (including other Public Health Service) 13 13 Sanitation 121 120 Veterinary Medicine 11 10 Total, Health Bureau 881 847 Other: Internal Security Office Magistrates' Courts 2 2 Social Work 3 3 Total, other 5 5 Total, full-time Government 1,454 1,353 Area of the Canal Zone The total area of the Canal Zone as of June 30, 1965, with areas segregated for various purposes, is shovvoi in the following table: Land area Square Miles Air Force, Army and Navy reservations (inclusive of licenses and letters of permission): Air Force 24.52 Army 107.62 Navy 22.08 Federal Aviation Agency 0.96 155.18 Canal Zone townsites and areas outside of townsites in active use — 13.07 Miscellaneous assigned land areas: Barro Colorado Island 5.71 Madden Forest Preserve (excluding Madden Road) 5.38 Commercial licenses (agricultural leases and garden plots and cattle pasture) 3.68 14.77 Swamps 15.14 Remaining usable land (largely mountain or jungle) 174.16 Total land area of the Canal Zone 372.32 Water area Freshwater 185.52 Tidewater (Atlantic and Pacific within 3-mile limit) 89.45 Total water area of the Canal Zone 274.97 Total area of the Canal Zone 647.29

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UNIVERSITY OF FLORIDA 3 1262 08507 9589


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