Annual report of the Governor of the Panama Canal for the fiscal year ended ..

Material Information

Annual report of the Governor of the Panama Canal for the fiscal year ended ..
Running title:
Report of Governor of the Panama Canal
Canal Zone -- Office of the Governor
Place of Publication:
Washington, D.C.
U.S. G.P.O.
Publication Date:
Physical Description:
36 v. : ill. ; 23 cm.


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


Dates or Sequential Designation:
June 30, 1915-June 30, 1951.
Numbering Peculiarities:
Report year ends June 30.
General Note:
Some vols. issued in the congressional series as House document.
General Note:
Reports for 1914/15-1915/16 each accompanied by portfolio of maps and diagrams.

Record Information

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:
02454300 ( OCLC )
15026761 ( LCCN )
2454300 ( OCLC )
30558952 ( ALEPH )

Related Items

Preceded by:
Annual report of the Isthmian Canal Commission for the year ending ...
Succeeded by:
Annual reports of the Panama Canal Company and the Canal Zone Government for the fiscal year ended ...


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Summary---------------------------------------------------------- 1
Business operations ----------------------------------------- 2
Net revenue of the canal and its auxiliaries -- ----------------- 3
Services rendered by the canal to shipping---------------------- 4


Traffic in 1929------------------------------------- 5
Proportion of tanker traffic -------------------------- 7
Proportion of tank ships to total traffic---------------------- 8
Proportion of tanker tonnage to total tonnage------------------ 8
Proportion of tolls from tank ships to tolls from all vessels-- 8
Tanker cargoes---------------------------------------------- 8
Nationality of vessels -------------------------------------- 9
Tons of cargo carried------------------------------------- 10
Commercial traffic through the Panama Canal, fiscal year 1929, by
nationality of vessels -_-- ---------------------- ---- 10
Vessels entitled to free transit and launches of less than 20 tons
net measurement_---------------- ----------------- -------- 11
Trade routes and cargo------------ ------------ ----- ,------- 11
Cargo ,hipments through the Panama Canal during the past four
fiscal years, segregated by principal trade routes-------------- 12
Princiipal commodities ------------------------------------------- 13
Commodity movement-
Atlantic to Pacific--------------------------------------- 14
Pacific to Atlantic -------------------------------- -----------14
Classification of vessels------------------------------------- ---- 15
Laden and ballast ships--------------------------------------- 16
Miscellaneous hibh records--------------------------------------- 17
Data in statistical section (Sec. V)-------------- -------- 19
Dual measurement ste ------------------------------- ------------- 19
Hours of operation--------------------------------------------- 20
Operating hours for complete transit---------------------------- 20
Limits for starting on partial transit----------------------------20
Lockages anid lock maintenance--------------------------------------- 21
Gatun locks ------------------------------------------------ 21
Pacific locks -------------------------------------------- 22
Power for canal operation --------------------------------------- 2
Water supply -------------------------------------------------- 24
Dry season--------------------------------------------- 24
Additional water storage at Alhajuela (Madden Dam)-------------- 25
Organization ---- --------------------------------------- 25
Quarters and equipment ------------------------ __-------- 2
Geological examinations ---------------------------------- 26
Borings------------------------------------------------ 26
Surveying. -)(-j _
Survey ng------------------------------------------
Seismology. ----------------------- --------------------- 2

6 7/72


Maintenance of channel and improvement projects---------------------- 27
Improvement project No. 1---------------------------------------__27
Improvement project No. 2--------------------------------------- 28
Im]iiiprivemenit project No. 9------------------------_--------___-----_______ 28
Future improvement projects------------------------------------ 29
Project No. 3----------------------------------------------- 29
Project No. 3 extension --------------------------------------- 29
Project No. 4-------------------------------------------- 29
Project No. 5------------------------------------------------ 30
Project No. 6----------------------------------------------- 30
Equipment----------------- ------------------------------------ 31
Ferry service ----------------------------------------------------- 31
Slides ---------------------------------------------------- -------- 32
West Lirio slide-------------------------------------- ---------- 32
South Cucaracha slide------------------------------------------- 32
South West La Pita slide-----------------------_ -------- 32
West Culebra slide---------------------------------------------- 32
East Barge Repair slide------------------------------------------ 33
Cucaracha Signal Station slide----------------------------------- 33
Aids to navigation------------------------------------------------ 33
Accidents-------------------------------------------------------- 34
Salvage operations ------------_______- 35
Rules and regulations --------------------------------- ------------- 35


Mechanical and marine work---------------------------------------- 36
Amount of work done-------------------------------------------- 37
Origin of work done---------------------------------------- 37
Dry docks and marine work---------------------- ---- ------ 37
Other work ---------------------------------------------------- 39
Plant------------------------------------------------ -------- 40
Financial----------------------------------------------------- 41
Coal--------------------------------------------------------------- 41
Coal-handling records_-------------------------------- ----- 42
Panama Railroad colliers------------------------------------ 42
Fuel oil, Diesel oil, gasoline, kerosene-------------------------- 42
Generalcomment -------------- ------- 42
Fuel oil------------------------------------------------ 43
Diesel oil----------------------------------- -- 43
Gasoline------------------------------------------------ 43
Kerosene ----------------------------------------------- 44
Ship cltuindrlry and other storehouse supplies-stocks on hand---------- 44
Purchases and sales in the United States-------------------- 44
Native lumber operations----------- --------------------- ---- 46
Harbor terminals--------------------------------------- 46
Commissary division------------------------------------------ 46
Sales------------------------------ --- ---------- 47
Pu n rcha.-s --------------------------------------- -------48
Place of purchase----------------------------------------- 48
la uu fact ling phinuts, etc--------------------------------------- 49
Bakery --------------------------------------------------- 49
C' ft'e -roasting plant ---------------------------------------- 49
Ice-cream and nmiilk-bottliing plant---------------------------- 49


Commissary division-Continued.
Alanufacturing plants, etc.-Continued. Page
Ice plant---------- ------- -------------------------- 49
Sausage factory and pickling department--__- ------------ 49
Industrial laboratory ------------------------------------ 49
Abattoir--------- ------------------------ 49
Laundry ------------------------------------------ 49
Hotels and restaurants-- ---------------------------------------- 49
Building construction and maintenance------------------------------ 50
Quarters for employees-- -------------------------------------- 51
Gold employees ------------ -------------------------------- 51
Silver employees-------------------------------------------- 51
Lands and buildings ----------------------------------------- 52
Panama Railroad Co. lands and leases-------------------------- 52
Leased agricultural lands in the Canal Zone----------------------- 52
Motor and animal transportation------------ ----- -------- 53
Panama Canal press----------------------------------------- 53
Farmnn industries ----------------------------------------- 53
Plantations ------------------------------------------------- 53
Dairy farm ----------------------------------------------- 53
Cattle----------------- ----------------------------- 54
Plant-introduction gardens and experinui ntal station--------------- 54
Telephones and telegraphs ---------------------------------------- 55
Operations with Panama Railroad funds---------------------------- 55
Panama Railroad Co---------------------------------------- 55
Canal Zone for orders---------------------------------------- 56
Panama Railroad Steamship Line------------------------------ 57
Departments------- ---------------------------------------------- 58
Operation and maintenance-------- -------------------- 58
Supply ---------------- ----------------------------------- 58
Accounting ------------------------------------------------ 58
Executive -------------------------------------- ------ 58
Health --------- ----------------------------------------- 59
Changes in organization and personnel----------------------------- 59
Force employed---------------------------------------------- 61
Department of operation and maintenance----------------------- -- 62
Office--- --------------------------------------------- 62
Electrical division--------------------------------------- 62
Municipal engineering division------------------------------ 2
Lock operation------------------------------------ 602
Dredging division------------------------------------------- 62
Mechanical division----------------------------------------- 63
Marine division--------------------------------------------- 63
Fortifications division---------------------------------------- 63
Supply department------------------------------ 63
Quartermaster ---------------------------------------------- 63
Commissary division----------- -------------------------- 63
Motor transportation division----_---------------------- 63
Accounting department-- ----------------------___ -_---_------------- 03
Health department---------------- ------------------------- 63
Executive department----------------------------------------- 4
Police and fire division------------ __--------------------- 04


Force employed-Continued.
Exeeutitiv department-Continued. Page
Schools division-------------------------------- 64
i1'lleous------------------------- 64
Panama Railroad Co---------------- ----------------- ---- (i04
Receiving and forwarding agenicy--------------------4------------
Recruiting and turnover of force------------------ ----------- 65
Gold employees-------------------------------------------------------- 65
Silver employees --------------------------------------- 45
Wavl-!e adjustments-------------------- ------------------------ C
Gold employees-------------------------------- ,1;
Alien employees on the silver roll---------------------------- 7-----
Complaints board--------------------------------------------------- 67
Public amusements and recreation------------------------------------ 68
Administrative problms--------------------------------------------- 70
Capacity of the canal------------------------------------------- 70
Water suppl----------------------------------------------- 71
Madden Reservoir-------------------------------------------- 72
Capacity in net tons------------------------------ ---------72
Ultimate capacity------------------------------------ ------- 72
Growth of traffic----------------------------------------- --- 73
Hours of operation ---------------------- 73
Basis of levy of tolls-----_--------------------------------------- 74
Equity of present tolls------------------- ----------- 74
Additional expenditures------------------------------------------ 76
Proposed highway across Canal Zone----------------------------- 77
Commercial aviation-------------------------------------------- 77

Population------------------------------------------------------ 78
Public health------------------------------------------------------ 79
Malaria-------------------------------------------------------- 79
Canal Zone--------------------------------------------- ------- 80
Pan: ma City--------------------------------------------------- 80
Coon--------------------------------------------- -------------81
Canal hospitals------------------------------------------------- 81
Quarantine and im ain'Ii tin service---------------------------- 81
Municipal eliiieri -------- ------------------------------------------- 83
Water system--------------------------------------------------- 83
Malinrenance----------------------- ------------------------ 84
Construction----------------------------------------------- 84
Sewer system-------------------------------------------------- 84
IMa i renance ------------------------------------------------ 84
Construction----------------------------------------- ------ 85
RTai1b, streets, and sidewalks, maintenance and construction of-- 85
Panama and Colon-------------------------------------
Canal Zone------------------------------------------------- 85
Madden Road------------------------------------------------- 85
Trans-Isthmiian hliihwl.y survey --- ------------------- 87
M iA-ii |;< louis work--------------------------------------------- 88
Brill-r across Mi raflorest* spillway--------------------------------- SO
Water purification plants andul testing laboratory------------------ 89
Public order-------------------- ---------------------------------- 89


District attorney, office of ---------------------------------- 91
District court--------- ---------------------------------------- 91
Marshal ------------------ ------------------------------ 92
Magistrates' courts---------------------------------------------- 92
Balboa_----------- --------------------- ----------------- 92
Cristobal ------------------------ -- ---------------------- 92
Fire protection ------------------------------ ---------------- 92
Public-school system -------------------------------------------- 93
White schools ---------------------------------- 94
Colored schools-------------------------------------------- 95
Postal system --------------------------- -------------- 96
Air-mail dispatches-------------------------------------- 98
Customs---------------------------------------------- 99
Prohibited aliens ------------------------------------------- 100
Shipping commissioner-seamen---------------------------------- 100
Administration of estates ------------------------------------- 101
Licenses and taxes------------ -----------------------------------------101
Immigration visas---------------------------------------- 102
Relations with Panama----------- ------------------------------ 102
Commercial aviation------------- ----------------------------- 102
Military reservation, Bruja Point---------- --------------------- --- 103
Codification of laws of the Canal Zone------- -- ---------------- 103


For list of tables, see page------------------------------------------- 105

Balboa Harbor, Administrative Building at Balboa Heights, Albrook Field and
environs, April 15, 1929. In background, part of Pacific sea-level section of
canal, leading to Miraflores Locks and Lake, right center.
Plate 1. Repair of miter-gate bearings, Pedro Miguel Locks. Gate No. 66
jacked up and resting on rollers, April 26, 1929.
2. Repair of miter-gate bearings, Pedro Miguel Locks. Gate No. 66 im-
mediately after removal of lifting jacks and before rolling out,
April 27, 1929.
3. Repair of miter-gate bearings, Pedro Miguel Locks. Gate No. 67, gen-
eral view from downstream, showing jacking up in process, May 2,
4. Twenty-four inch Diesel-electric pipeline suction dredge Las Cruces,
placed in service February 2, 1929.
5. Gaillard Cut, Panama Canal: Extension of East Barge Repair slide,
June 24, 1929, two dipper dredges excavating.
6. Barraza Fill. View from top of Ancon Hill, April 13, 1929, showing
location of fill, at right, with reference to city of Panama. Fill is
to be completed behind retaining wall, which is seen as an almost
horizontal line at the right, between the buildings and the tidal flat
and extending toward the smokestacks near the right center of the
7. Cristobal shops. New boiler shop, viewed from point near inner end
of dry dock. Roof structure of new machine shop in background.
8. Cristobal shops. New boiler shop on right, machine shop, in course of
construction, on left.
9. New building for Panama Canal Press at Mount Hope and, in back-
ground, warehouse for commissary division.
10. Organization chart, Panama Canal and Panama Railroad Co.
11. Madden Road. Construction camp No. 1, 3/2 miles beyond Summit.
Bunkhouse and office for gold employees on left, bunkhouse for silver
employees on right.
12. Madden Road, station 222. Junction with old Cruces Road, extending
between old Panama and Las Cruces, a section of the old road is
visible directly under the cannon.
13. Madden Road. Rock fill at station 606.
14. Graph of principal commodities shipped through Panama Canal, fiscal
year 1929.
15. Graph of origin and destination of Pacific-bound cargo, 1929.
16. Graph of origin and destination of Atlantic-bound cargo, 1929.
17. Graph of tonnage of cargo over principal trade routes, fiscal year 1929.
18. Graph of tonnage of cargo passing through the Panama Canal, by fiscal
19. Graph of percentage of cargo carried by ships of United States and
foreign registry.
20. Graph of percentage of net tonnage, Panama Canal measurement, of
ships of United States and foreign registry, by fiscal years. (This
graph also Indicates approximately the proportions of tolls paid by
United States and foreign vessels.)
21. Graph of number of commercial vessels transiting Panama Canal, by
fiscal years.
22. Graph of tolls collected, by fiscal years.



Reports for the fiscal year 1929 have been made as follows and may be con-
sulted at the 'Washington office of the Panama Canal or at the ollice of the
governor, Balboa Heights, Canal Zone; the annual report of the Panama Rail-
road Co. is published separately:
Engineer of maintenance-
Dredging division, report of superintendent.
Assistant engineer of maintenance-
Madden Dam investigations, report of assistant engineer of maintenance.
Madden Dam investigations, supplementary report of municipal engineer
and chief of surveys.
Electrical division, report of electrical engineer.
Division of lock operation-
Atlantic locks, report of superintendent.
Pacific locks, report of superintendent.
Municipal engineering division, report of municipal engineer.
Office engineer, report of.
Section of surveys, report of chief of section.
Gatum Dam and backfills, report of supervisor.
Marine division, report of superintendent.
Mechanical division, report of superintendent.
Supply department, report of chief quartermaster.
Executive department-
Division of civil affairs, report of chief.
Police and fire division, report of chief.
Division of schools, report of acting superintendent.
Bureau of clubs and playgrounds, report of general secretary.
Surveying officer, report of.
Magistrate courts-
Magistrate, Cristobal, report of.
Magistrate, Balboa, report of.
District attorney, report of.
District court, report of clerk.
Marshal, report of.
Accounting department, report of auditor.
Land agent, the Panama Canal and Panama Railroad Co., report of.
Purchasing department, report of the general purchasing officer and chief
of Washington office.




August 30, 10A9.
Washington, D. C.
SIR: I have the honor to submit the report of the Governor of the
Panama Canal for the fiscal year ended June 30, 1929.
H. BURGESS, COfc, lor.


Traffic through the Panama Canal during the fiscal year ended
June 30, 1929, set new records for the aggregate tonnaiiue of vessels
transiting, tolls collected, and tons of cargo carried. The number of
transits of commercial vessels was 43 fewer than in the fiscal year
1928, which had established the previous high record, but with the
inclusion of noncommercial traffic (United States Government ves-
sels, a few public vessels of Panama and Colombia, and ships transit-
ing the canal solely for the purpose of receiving repairs at Balboa,
none of which paid tolls) the total transits numbered 7,029, which
exceeded by 70 the record of total transits established in the fiscal
year 1928, a gain of slightly over 1 per cent.
Considering commercial ocean-going traffic only, the number of
transits was 6,413, as compared with 6.456 in the precediIng year, a
decrease of slightly less than seven-tenths of 1 per cent.
Tolls amounted to $27,127,376.91, as compared with $26.944.499.77
in the fiscal year 1928, a gain of $182,877.14, or seven-tenths of 1 per
cent. Including launches, which paid $1,512.39 in 1929 and $1,109.34
in 1928, the grand total of tolls was $27,128,889.30 in 1929 and
$26,945,609.11 in 1928, a difference of $183,280.19.
Cargo carried through the canal in the fiscal year 1929 aggregated
30,663,006 tons, a gain of 1,032,297 tons, or 3.48 per cent over the
previous record, set in the fiscal year 1928.


The continued growth of traffic has emphasized the importance of
providing for a greater future traffic. Substantial work was done
during the past year on the preliminary operations necessary to the
first move for increasing the capacity of the canal, namely, the con-
struction of the Madden Dam at Alhajuela for impounding addi-
tional water storage for lockages and the maintenance of the summit
level during the dry seasons.
It is the duty of the canal administration to make careful studies
of the potential capacity of the canal and of the growth of traffic in
relation to the canal's capacity in order that data may be available
for determination of policy as to future construction. A concise
summary of the factors governing the capacity of the canal and of
probable growth of traffic is presented in section 3 under the subject
of "Administrative problems." Other elements on which future
action is considered include the continued deepening and widening
of parts of the channel; construction of the third flight of locks to
parallel the present twin flights; the transfer of dredging head-
quarters, ships, and moorings to Gamboa to place them on the Gatun
Lake side of possible slides in Gaillard Cut; construction of addi-
tional quarters to house the canal force, a large proportion of which
is now compelled to rent quarters outside of the Canal Zone; a
system of retirement or pensioning which will make possible the
ma niiitenance of a personnel physically well fitted to meet the rather
high requirements involved in the prompt and reliable handling of
traffic and supplying needs in connection therewith; and highway
construction, required not only for the more effective operation of
the canal but as an obligation to the Republic of Panama.

In addition to the maintenance and operation of a passage between
the oceans for vessels, the Panama Canal, working in conjunction
with the Panama Railroad Co., carried on extensive accessory opera-
tions. These included repair facilities; bunker stations; the sale of
foodstuff-, ships' chiandlery, and miscellaneous supplies; the opera-
tion of hotels; the -ervice of a railroad across the Isthmnus; and of
a steamship line plying between the United States and the Canal
Zone for the purpose of bringing supplies and transporting em-
ployees. All of these services are under coordinated centralized con-
trol, which tends to economy and smooth and reliable service to ships.
Otherimportant functions of administration and government are all
embraced under the single organization of the Panama Canal and
under the direct control of the governor, namely, public health;
quarantine; immigration service, customs, post offices; schools; police
and fire protection; construction and maintenance of roads, streets,


and water-supply service; hydrographic and meteorological observa-
tions and steamship inspections, aids to navigation, control of air-
craft, etc.
The net income from tolls and other miscellaneous receipts known
as canal revenue was $17,729,775.01 for the fiscal year 1929, as
compared with $18,224,844.86 for the fiscal year 1928, $15,611,093.80
for 1927, $15,151,668.06 for 1926, and $13,465,924.72 for 1925.
The net profits of auxiliary business operations conducted directly
by the Panama Canal, the most important of which are the mechan-
ical shops, material storehouses, and fuel-oil plants, totaled $737,-
850.26, as compared with $736,719.43 in 1928, $876,536.80 in 1027,
$841,310.29 in 1926, and $765,916.85 in 1925.
The net profits of operations of the Panama Railroad Co., exclu-
sive of the Panama Railroad Steamship Line, but including commis-
saries, docks, coaling plants, cattle industry, and cold-storage plants,
were $1,693,873.17, as compared with $1,600,283.61 for 1928, $1,644.-
189.37 for 1927, $1,347,887.33 for 1926, and $1,525,910.13 for 1925.
Total net revenue for the year 1929 from all sources, exclusive of
the Panama Railroad Steamship Line, was $20,161,498.44, as com-
pared with $20,561,847.90 in 1928, $18,131,819.97 in 1927, $17,340,-
865.68 in 1926, and $15,757,751.70 in 1925.
The aggregate net revenue from all sources (exclusive of the
Panama Railroad Steamship Line) was less by $400,349.46 in 1929
than in 1928, a decrease of 1.95 per cent ($20,161,498.44 compared
with $20,561,847.90). The decrease occurred in the net income in
the account of canal operations and business operations ($10,287,-
109.33 for 1929 compared with $10,835,925.75 in 1928) in the amount
of $548,816.42, which was due principally to increased canal ex-
penses. This decrease was offset in part by greater earnings of the
Panama Railroad activities.
The increase in canal expenses was due principally to the quad-
rennial overhaul of the Pacific locks, at a cost of $680,000. The
Atlantic and Pacific locks are overhauled on alternate odd years,
the Atlantic locks being due for overhaul in 1931 and Pacific locks
again in 1933.
The Panama Canal has gone, through another successful year of
operation and has prospects of continued success if it shall continue
to be managed under the same general principles as have been applied
during its nearly 15 years of service. Considering the capital in-
vested and accumulated interest on the investment, the pre.-ent total
capital liability is such that the canal is not as yet earning the annual
interest charge at 4 per cent, the current borrowing rate of the


TreanilSry of the United States. For this reason and others, including
the necessity of extensive additional expenditures in order to bring
the canal to its highest efficiency, it would appear that at present
there is no justification for reduction in the rates of tolls.


The most important items of the business of the canal and its
adjuncts, covering principal services to shipping, are expressed
numerically in the following table, which presents a comparison of
the activities during the fiscal year 1929 with the two years immedi-
ately preceding:

Transits of the canal by ships paying tolls.-------------
Free transits ------------------------ -----..
Total transits of ocean vessels----... ............---
Average daily transits:
Commercial traffic ----.-.-.- ..---.--.---.-......--
Free traffic. ------------.. --------.--------
Number of lockages during year:
Gatun Locks.............-----------------------...
Pedro Miguel Locks-------------------------------
r.fl. Locks -------------------...........................
Average lockages per day:
Gatun...--- ...........................------------
Pedro Mignel- ---------------
Tolls levied on ocean vessels -----------------------.
Transits of launches not included above-.-----------
Tolls on launches not included above -------------------
Total tolls----------------------------.-------
Cargo passing rhr'Lruh canal, tons ---------------------
Net tonnage (Panama Canal measurement) of transiting
commercial vessels_-- -------------------------
Cargo per net ton of ocean vessels, including those in
Average tolls per ton of cargo, including vessels in ballast-
Calls at canal ports by ships not transiting canal.. -----.....-
Cargo handled at ports (tons) ---------------.--------
Coal, sales and issues (tons) ------------------------
Coal, number of ships served other than vessels operated
by the Panama Canal-_------------------------
Fuel oil pumped (barrels) --.------ ----------------
Fuel oil, number of ships served other than vessels
operated by the Panama Canal ------. -----------
Ships rn' j., 1, otilt r ri han Panama Canal equipment----
Ship d(lry. -J]ocked, otr hr than Panama Canal equipment.
Provisiini jold tlt l.ip- (commissary sales)........... ------
Chandlery sold to ships (storehouse sales)---.....----

Fiscal year


Fiscal year


Fiscal year


6, 072 6,959 7,029

15.000 17.639 17.570
1. 636 1.374 1. 688
16.636 19.013 19.258

5, 691
$24, 228,830. 11
$1, 235. 18
$24, 230,065. 19
26, 227,815
1. 0579
1, 061
1, 150, 807
16,350, 399
134, 106. 36

18. 1
$26,945,609. 11
1. 0058
1, 123
15,977, 648

6, 325
$27, 127,376.91
$27, 12S, 8i9. 30
29,837, 794
1,559, 309
144,937. 36


Commercial traffic through the Panama Canal during the fiscal
year ended June 30, 1929, established new high records for the
amount of tolls collected, tons of cargo carried, and tonnage of ves-
sels (with the exception of United States net). The increases in
tolls and ship tonnage were rather small, but the amount of cargo
carried increased over a million tons. The increase in cargo tonnage
was directly attributable to a heavy gain in the movement from
Atlantic to Pacific.
The number of commercial vessels passing through the waterway
in the fiscal year 1929 was 6,413. This was 43 less (or the equivalent
of two and one-half days of normal traffic) than the number making
the transit in 1928, which still stands as the record year for the num-
ber of commercial transits. The average daily number of transits in
1929 was 17.57, as compared with 17.63 in 1928. Transits of naval
vessels and other public vessels of the United States, public vessels
of the Republics of Panama and Colombia, and vessels transiting
solely for repairs, none of which paid tolls, numbered 616 during
1929, as compared with 503 in 1928. Combining the two, there were
7,029 transits of seagoing vessels during 1929, as compared with 6,959
in 1928, or daily averages of 19.26 and 19, respectively.
The net tonnage, Panama Canal measurement, of the 6,413 com-
mercial vessels transiting in 1929 was 29,837,794. Tolls levied
amounted to $27,127,376.91, and the cargo carried aggregated 30,663,-
006 long tons.
The majority of the principal trade routes in so far as the number
of transits was concerned showed very little change as compared with
1928. A slight decline occurred in the United States intercoastal
traffic and in the trade between Europe and North America. This
was offset by small increases on the United States-South America,
Europe-South America, and the United States-Far East routes,
Cargo tonnage over these routes was as great as or greater than the
tonnage in 1928, with the exception of the trade between the east
coast of United States and west coast of Canada, which showed a


Commercial traffic figures for each fiscal year since the canal was

opened to navigation are shown in the table below:

r Canal net Tolls Tons of
of transit ge cargo

Fiscal year ended June 30-
1915 1----------------.. --------------------------- 1,075 3,792,572 $4, 367,550. 19 4,888,454
1916 2------------------------------------------- 758 2,396,162 2,408,089. 62 3,094,114
1917--------------------------------------........ 1,803 5,798, 557 5,627,463. 05 7, 058,563
1918----- ---------------------------------... 2,069 6,574,073 6,438,853.15 7,532,031
1919-- ----------------.------------------ 2, 024 6, 124,990 6,172. 828. 59 6,916,621
1920---- ---- ----------------------------- 2,478 8,546,044 8, 513, 933. 15 9, 374, 499
1921.-- -- -------------------------------- 2,892 11,415,876 11,276,889.91 11,599,214
1922-------------------------------------- 2,736 11,417,459 11,197,832.41 10, 884,910
1923----- --------------------------------- 3,967 18,605,786 17,508,414.85 19, 567, 875
1924- ------------------------------------- 5,230 26,148,878 24,290,963. 54 26,994, 710
1925---- ---------------------------------- 4,673 22,855, 151 21,400,523.51 23.958,836
1926.--------- --------------- ------------------ 5,197 24,774,591 22,931,055.98 26,037,448
1927 -------------------------------------- 5,475 26,227,815 24,228,830.11 27,748,215
1928I --------------------------------------- 6,456 29,458,634 26,944,499.77 29,630,709
1929-------------------------------------- 6,413 29,837,794 27,127,376.91 30, 663, 00
Total-------- ---------------------------- 53, 246 233,974,382 220,435,104.74 245,949,205

1 Canal opened to traffic Aug. 15, 1914.
2 Canal closed to traffic approximately 7 months of fiscal year by slides.

Commercial traffic was fairly uniform throughout the year. By
months, the number of transits ranged between 487 in September
and 603 in January, a difference of 116 vessels and of 3.22 in daily
average transits. The 603 transits during January was the greatest
number of commercial transits in any month since the opening of
the canal. The monthly average of transits was 534, as compared
with 538 for the previous year. Monthly transits and tolls, with
daily averages, for commercial vessels only, were as follows:

Total for month Daily averages
Transits Tolls Transits Tolls

July--------------------------------------------- 509 $2, 109,083.19 16.41 $68, 034.94
August ------------------------------------------- 526 2,199,069.31 16.97 70,937.72
September---------------------------------------- 487 2,111,230.56 16.23 70,374.36
October---- -------- ----------------------------- 557 2, 274,945.30 17.97 73,385.33
November---------------------------------------- 527 2,225,937.48 17.57 74, 197.91
December.----------------------------------------- 579 2,443,029.39 18.67 78,807.39
January------ ------------------------------------ 603 2,502,815. 12 19.45 80,735. 97
February.----------------------------------------- 522 2,211,961.20 18.64 78,998. 62
March------------------------------------------- 536 2,343, 865.55 17. 29 75,608. 57
April-------------------------------------------- 540 2,281,087. 27 18.00 76, 036. 24
May --------------------------------------------- 524 2,296,546.57 16.90 74, 0S2. 15
June --------------------------------------------- 503 2, 127, 805.97 16.76 70, 926. 87
Total------------ ------------------------- 6,413 27,127,376.91 17. 57 74,321.5 8


Comparison by months with traffic in the preceding fiscal year is
shown as follows:

Number of Panama Canal net Tons of cargo Tolls
vessels tonnage Tonoargo Tl
1927-28 1928-29 1927-28 1928-29 1927-28 1928-29 1927-28 1928-29

July------------ 509 509 2,406,955 2,318.395 2,450,468 2,291,955 $2,215,515.99 $2,109,083.19
August---------- 643 526 2,513,614 2,437,246 2,429, 947 2,,425,336 2,274,040.55 2,199,069.31
September..------.. 540 487 2,532, 942 2,295,053 2,397,753 2,313,011 2,294,432.34 2,111,230.56
October..-------- 567 557 2,585,752 2,515,380 2,717,646 2,582,477 2,380,115.97 2,274,945.30
November..---- 559 527 2,591,717 2,468,297 2,488,882 2,501,630 2,369,267.99 2,225,937.48
December.... 589 579 2,616,728 2,698,140 2, 573,828 2,714,987 2,398, 459. 75 2,443, 029.39
January.--.------ 640 603 2,422,770 2, 771, 280 2,372,061 2,858,835 2,212,752.50 2,502,815.12
February------- 547 522 2,460,111 2,428,530 2,660,425 2,550,498 2,253, 755.37 2,211,961.20
arch--....-------- 542 536 2,441,077 2,567,961 2,428,662 2,743,768 2.223,370. 57 2,343,865.55
April---------- 531 540 2,384,491 2,488,176 2,473,884 2,719,668 2, 187, 607. 82 2,281.087. 27
May------------ 508 524 2,274,612 2,496,905 2,497, 588 2.536,839 2,118,969.83 2.296,546.57
June------------481 503 2,227,865 2,352,431 2,139,565 2,424,002 2,016,211.09 2,127,805.97
Total-..-- 6,456 6,413 29,458,634 29,837,794 29, 630, 709 30, 663,006 26,944,499.77 27,127,376.91


Tanker transits in 1929 totaled 1,083, as compared with 1,121 for
the previous fiscal year, a decrease of 38, or 3.39 per cent. This class
of traffic comprised 16.8 per cent of the total commercial transit
during the year, made up 19.6 per cent of the total Panama Canal net
tonnage, paid 18.9 per cent of the tolls collected, and carried 17.9
per cent of the cargo which passed through the canal.
As was stated in the annual report last year, tanker traffic through
the canal has declined from the volume of 1924 and 1927 on account
of the development of oil fields on the Atlantic coast of the Americas,
the greater portion of which production reaches its market without
transiting the canal.
Transits of ships engaged in general traffic were five fewer than
the number transiting in 1928. With respect to Panama Canal net
tonnage, tank ships decreased 399,706 tons, while general cargo ves-
sels increased 778,866 tons, a net increase on all traffic of 379,160.
Tolls collected from tank ships decreased $290,804.97, while tolls
collected from general cargo carriers increased $473,682.11, a net
increase on all classes of $182,S77.14.
Omitting transits of public vessels of the United States and other
vessels exempt from the payment of tolls, the number of ocezin-going
vessels transiting the canal daily averaged 17.6 throughout the year.
Of this number tank ships averaged three transits daily, the balance
of 14.6 being made up of general cargo carriers, passenger ships,
warships of foreign nations, etc.
In the tables below the commercial traffic has been segregated to
show the proportion of tanker transits, tonnage, and tolls as com-
pared with the corresponding figures embracing all other classes of
72060-29--- 2


traffic. The figures are for the fiscal years 1923 to 1929, inclusive,
covering the era of the growth and decline of tanker traffic:

Proportion of tank ships to total traffic

Total commercial transits Average daily transits
Fiscal year
Tankers General Total Tankers General Total

1923.----------------.------------------ 913 3,054 3,967 2.5 8.3 10.8
1924----.------------------------------- 1,704 3,526 5,230 4.6 9.6 14.2
1925------------------------------------- 1,079 3,594 4,673 2.9 9.8 12.7
1926---------------------------------- 1,090 4,107 5,197 3.0 11.2 14.2
1927 ----.----------------------------- 1,324 4, 151 5,475 3.6 11.4 15.0
1928----------------------------------1,121 5,335 6,456 3.0 14.6 17.6
July ----------------------------------- 96 413 509 3.1 13.3 16.4
August-------------------------------- 95 431 526 3.1 13.9 17.0
September-..----------------.------ 89 398 487 3.0 13.2 16.2
October----------------------------- 82 475 557 2.6 15.3 17.9
November------- -------------------- 81 446 527 2.7 14.8 17.5
December---------------------------- 81 498 579 2.6 16.0 18.6
January-----.........------------------------- 99 504 603 3.2 16.2 19.4
February---------------- ------------- 82 440 522 2.9 15.7 18.6
March------------------------------- 96 440 536 3.1 14.2 17.3
April-------------------------------- 82 458 540 2.7 15.3 18.0
May-------------------------------- 101 423 524 3.3 13.6 16.9
June-------------------------------- 99 404 503 3.3 13.4 16.7
Total, 1929 -------------------. 1,083 5,330 6,413 3.0 14.6 17.6

Proportion of tanker tonnage to total tonnage

Panama Canal net tonnage Percentage of total net tonnage
Fiscal year
Tankers General Total Tankers General Total

1923..----------------------------- 5,374, 384 13, 231, 402 18, 605, 786 28.9 71. 1 100
1924 ------------------------------ 10,212,047 15,936,831 26, 148,878 39.1 60.9 100
1925--------------------------------- 6,424,622 16,430,529 22,855,151 28.1 71.9 100
1926 .---------- --------------- 6,343,240 18,431,351 24,774,591 25.5 74.5 100
1927 ---.----------------------- ---- 7,624,112 18,603,703 26,227.815 29. 1 70.9 100
1928 --------- ------------------- 6,243,969 23,214,665 29. 4F.634 21.2 78.8 100
1929... ----- ------------ --------- 5,844,263 23,993,531 29,837,794 19. 6 80.4 100

Proportion of tolls from tank ships to tolls from all vessels

Tolls paid by shipping using canal Percentage of total tolls

Tankers General Total Tankers General Total

1923 -------------------- $4,769,324.63 $12,738,874.94 $17,508,199.57 27.2 72.8 100
1924------------------- 9, 071, 835. 65 15, 219, 127. 89 24, 290,963. 54 37.3 62. 7 100
1925 -------------------- 5, 728, 302. 26 15, 672, 221. 25 21, 400, 523. 51 26.8 73. 2 100
1926-.------------------. 5,626, 167.93 17,304,888.05 22,931,055.98 24. 4 75.6 100
1927--------------------- 6, r*'. 806. 90 17, 570. 023. 21 24, 229, 830. 11 27.5 72. 5 100
1928 ------------------- 5, -1.6, 437. 16 21, r0., 062.61 26, 44, 499.77 20. 1 79.9 100
1929-------------------.. 5, 145, 632. 19 21, il1, 744.72 27, 127, 376.91 18.9 81. 1 100


Cargo carried through the canal in tank ships decreased from
5,829,722 tons in 1928 to 5,512,481 tons in 1929, a loss of 317,241 tons,
or 5.44 per cent. Of the 5,512,481 tons, 5,227,709 tons were shipped
from the Pacific to the Atlantic and 284,772 tons from the Atlantic
to the Pacific. Of the aggregate tonnage originating in the Pacific


coast areas, 4,314,841 tons came from California, 717,505 tons from
Peru, and 145.47( tons from Ecuador. The balance of the Pacific-to-
Atlantic tanker cargo consisted of coconut oil and molasses origi-
nating in the Philippine Islands and the Hawaiian Islands.


Twenty-fouir nationalities were represented in the commercial
traffic pa-s-ing through the canal during the fiscal year 1929, as com-
pared with 23 in the preceding year. Vessels of United States regis-
try led in the number of transit, as had been the case during the
preceding 10 years; from 1915 to 1918, inclusive, transit of British
vessels exceeded those of any other country. In all years the greatest
numbers have been either British or United States. Transits of
United States vessels were fewer by 53 in 1929 than in 192S, due to a
decrease of 161 in the passages of tankers flying the Amnwrican flag,
offset in part by an increase of 113 in the transits of United States
general cargo carriers.
Transits of British vessels also decreased in number, there being
1,783 in 1929 as compared with 1,842 in 1928, a loss of 59. British
traffic in 1929 was affected largely by the greatly lessened wheat
movement, the heavy shipments of which in 1928 were respon-ible for
considerable British t ramp tonnage being .routed through the canal.
German traffic, which has been increasing rapidly from year to
year, made the largest gain during the year-from 316 transits in
1928 to 402 in 1929, an increase of 86, or 27.2 per cent. The larger
part of this increase was made over the trade between Europe and
.North Amnerica, although there were small gains in other major
trades in which German shipping is engaged, viz, between Europe
and South America and between the United Stat s and South
Norweg1ian shipping ranked fourth with re-pect to the numbenir of
transit. The tonnage of cargo carried by ve-sels of this roi-istry
was somewhat higher than that carried by German ve-.eI-.
Vessel- of the United States and Great Britain together lni1eC up
about 70 per cent of the total transit. The natioinaliices next in
order, German and Norwegian, formed 6 per cent and 5 per cent,
With respect to cargo carried through the canal. vessels of Unitedll
States registry carried 4.1.9 per cent of the total; British vess-l.
27.2 per cent; Norwegian vessels, 4.9 per cent; German vo.-els, 48
per cent; Japanese vessels, 3.2 per cent; Swedish ve-sels. 2.8 per
cent; Dutch vessels, 2.3 per cent; and French vessels. 1.7 per cent.
Combined, the vessels of these eight nations carried almost 93 per
cent of all cargo that passed through the canal during the past
fiscal year.


Cargo tonnage carried under the United States flag was slightly
less in 1929 than in 1928. Vessels of Great Britain, despite decreased
transits, showed an increase in cargo tonnage carried. Other in-
creases were made by vessels of Norwegian, German, Swedish, and
Dutch registry, while those of Japanese and French registry showed!
The cargo tonnage carried under the flags of the leading maritime
nations contributing to canal traffic during the past five years is.
shown in the following tabulation:

Tons of cargo carried

1925 1926 1927 1928 1929

United States-------------..... --------- 13,080,200 13,710,956 15,242,156 14,248,735 14,075,731
British--------------------------------- 5, 917,058 6, 750,843 6,436, 785 8,075,022 8, 331,221
Norwegian------- ----------------------.......... 842, 708 1,051,276 1,052,453 1,268,124 1, 505,36r8
German ------------------------------- 830, 512 885,007 973, 741 1, 185,421 1,482, 279
Japanese-------------------------------- 946,916 667, 982 1,036, 786 1,041, 166 980,041
Swedish---------------------------------- 282,447 636,266 652, 173 705,154 845, 664
Dutch--------------------------- ---- 619,017 552, 741 571,700 637, 178 695,956
French-------------- --.------------. 7481, 526 398,393 530,026 600,421 530, 763:
Remaining combined ------ -------------- 958, 452 1,383,984 1,252,395 1,869,488 2,215,985
Total-.-----------------....--------- 23,958,836 26,037,448 27,748,215 29,630,709 30,663,000.

The following tabulation shows for the fiscal year 1929 by nation-
ality the transits, vessels' tonnage, tolls, and tons of cargo carried:

Commercial trafflo through the Panama Canal, fiscal year 1929, 'by nationalitIy
of vessels


Nationality Trans- Registered Tolls Tons of
its United cargo
Panama States
Canal, net equivalent Gross Net

Argentine---------- 1 (1) (1) (1) (1) $1,274. 50 ..----
Belgian------------- 17 89, 695 73,360 115,276 68,361 83,757.04 101,419
British--------.---- 1, 783 8,994, 526 6,757,674 11,056,382 6,803,306 8,025,045.81 8, 331,221
Chilean------------- 31 130, 599 97,948 199, 243 109,750 136,663.49 98, 584
Colombian--------- 101 39, 032 34, 725 59, 151 35, 741 41, 652.43 38,262
Costa Rican-------- 1 39 39 78 39 27. 25 .-.--------
Cuban-------------- 1 194 194 176 136 242. 50 20
Danish------------- 101 416,985 315, 372 498,465 314, 726 379, 383.44 518,452
Danzig.------------ 30 1.S7.403 156,651 265,773 150,043 167,731.28 183,844
Dutch ------------- 149 690, 608 485,069 810, 169 484, 182 595, 905.62 695,956
Finnish------------- 7 16,314 14,513 17,733 13,831 16,860.00 25.000
French------------- 115 534, 505 422, 359 676, 780 413,544 532,777.65 530, 763
German..------------ 402 1,405, 385 943, 361 1,649,844 988,903 1, 222,181. 38 1,482, 279
Greek--------------...... 67 261, 540 191,618 298, 205 185, 132 218,427.77 299, 104
Italian-------------- 83 492,472 369, 112 624,404 378,758 446,623. 34 334,483
Japanese-.-------- 155 775,005 661,902 980, 177 649, 152 810,215.74 9S0, 041
Mexican.----- 1 (1) (1) (1) (1) 613.50 ..---------
Norwelian--......... 340 1,280,184 964,441 1,586,118 954,362 1,122,895,34 1,505,366
P rin-----n....-----.... 47 113,097 79,575 142,786 90,748 91,133.63 97,644
Peruvian----------- 48 109, 100 61,774 159,375 82,512 77,183.43 69,573
Spanish------------- 32 117,528 97,902 160,144 98,036 116,720.34 95,405
Swedlih............ 144 618,558 455,728 1,104,826 547,120 520,155.43 845,664
United ftles... 2,700 13,325,753 10,375,012 16, 765.317 10,3456,886 12,299,584.70 14,075,731
Yugoslavian.------- 57 239, 272 185,518 294, 370 186,049 220, 319. 30 354, 195
1929------- 6,413 29,837, 794 22, 793, 847 37,464, 792 22,900,317 27,127,376.91 30,663,006
1928------- 6,456 29,458.634 22,863,796 37,202,874 22,847,689 26,944,499.77 29.630. 709
1927------ 5,475 26, 227,815 20,565,596 33,555,817 20,618,253 24,228,830.11 27,749,215

1 Displacement, tonnage.


Naval and other vessels owned and operated in the Government
service of the United States, Panama, and Colombia, and vessels
transiting the canal solely for repairs at the Balboa shops, are exempt
from the payment of tolls, and such vessels are not included in the
transit statistics in the preceding sections. They accounted for the
following additional transits in the fiscal year 1929: Public vessels
of the United States, 553; public vessels of Panama, 21; public
vessels of Colombia, 2; vessels transiting for repairs, 40; or a total
of 616. These vessels carried a total of 119,143 tons of cargo.
If charges at commercial rates had been made against the 553
public vessels of the United States that transited the canal without
payment of tolls, the revenue from tolls would have been increased
by approximately $1,031,272.17 during the year. Tolls on the 21
Panaman Government and 2 Colombian Government vessels and the
40 transiting for repairs would have amounted to approximately
Launches of less than 20 tons measurement are also excluded from
the statistics of commercial traffic, although they are not exempt
from the payment of tolls. The number of these transiting the canal
during the year was 167, and tolls aggregating $1,512.39 were col-
lected for their passage.

An analysis of the cargo movement during the past fiscal year
indicates, as in previous years, a preponderance of trade to and from
the west coast of North America. In the Atlantic-to-Pacific traffic
approximately 66 per cent of the total cargo through the canal dur-
ing the year originated on the east. coast of North America and
about 45 per cent, was destined to points on the west coast of that
continent. In trade in the opposite direction, 62.G per cent of the
total came from the west coast of North America and about 56 per
cent was destined to the east coast of North America.
As will be noted in the table following, while the cargo tonnage
moving in the United States intercoastal trade increased slightly
during the year, a loss of some 570,000 tons occurred in the move-
ment from the Pacific to the Atlantic over this route, due primarily
to curtailment in shipments of mineral oils and lumber. Heavy
shipments of iron and steel goods were largely instrumental in the
expansion of the trade in the opposite direction on this route.
In the trade between North America (United States and Canada)
and Europe, which has been increasing rapidly from year to year,
only a slight increase in cargo movement occurred during the year


1929. Although the majority of the products constituting the east-
bound movement of this trade, such as canned goods, fresh and dried
fruits, lumber, barley, and mineral oils, showed increases during the
year a loss of some 670,000 tons of wheat, as compared with the
previous year, offset practically all of the increase in shipments of
the other commodities.
The trades between the east coast of the United States and South
America, Europe and South America, United States and Far East,
and Europe and Australasia all showed increases in both directions.
The trade between the west coast of Canada and the east coast
of the United States was the only leading trade which decreased in
cargo tonnage during the year. Although there was a small increase
in the Atlantic-to-Pacific movement that in the opposite direction de-
creased over 140,000 tons, owing to the lightened lumber shipments
between these areas.
In the following table the volume of cargo tonnage moving over 8
of the principal trade routes is shown for the past four years. Ap-
proximately 91 per cent of the total cargo routed through the canal
during the past year passed over these routes:

Cargo shipments through the Panama Canal during the past four fi-,-Il vw.a.*s,
segregated by principal trade routes

Tons of cargo
Trade route
1926 1927 1928 1929

United States intercoastal:
Atlantic to Pacific-* ------------------------------ 2,435, 748 2, 638, 786 2,401, 872 3, 022, 960
Pacific to Atlantic-------------------------------- 7,633, 856 7,921,719 7, 665,520 7, 096, 068
Total------------------------------------10, 0fi9, 604 1. I060, 5U5 I1, 06 7, 3Y2 I 1u, 11'J, 102&
Europe and United States and Canada:
Atlantic to Pacific----.-.-------------------------- 701,986 758,243 831,373 885, 886
Pacific to Atlantic-------.--..----------.--------- 3,013, 325 3,722,957 5,181,619 5,]:., 944
Total---------------------- ------------ 3,715,311 4,481,200 6,012.992 6,040,830

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




423, 730
2,816, 346
3, 240,076

412,835 377,968
2,518.611 2, 840, 510
2,931,446 3,218,478

2,998, 766

tlantic to Pacific---------------..-------- ------- 783, 007 623, 030 787, 214 73. 369
pacific to Atlantic ----------------------------- 1,612,733 1,326,573 2,118,251 2, 123., 72
Total---------------.---.------------------ 2,395,740 1,949,603 2,905,465 3,297, 097
Id States and Far East:
tlantic to Pacific--------------------------------. 1, 421, 214 1, 576, 151 1, 562, 112 1,927,216
pacific to Atlantic -------------------------------- 333, 834 407,313 504, 163 649, 102
Total--------------- ------------.---- ---------. 1, 755, 048 1, 983,464 2, 066, 275 2, 576, 318
pe and Australasia:
tlantic to Pacific. ---.------------------- --------- 543, 825 539,792 4'. 985 600, 190
aciflc to Atlantic--------------------------- ---- 556, 871 493, 425 554, 678 83, 73&
Total----.. ------------------------------ 1, 100, 696 1, 033. 217 1, 150, 60.; 1,192, 923


Cargo shipments through the Panama Canal during the past four fiscal years,
.*C/regated by principal trade routes-Coliltinuel

Tons of cargo

Trade route

United States and Australasia:
Atlantic to Pacific.---..------........---..--.......-----------
Pacific to Atlantic-------------------------
East coast United States and west coast Canada:
Atlantic to Pacific. --.-------.........--...-...--------.....--
Pacific to Atlantic---------------------------
Miscellaneous routes and sailings:
Atlantic to Pacific ----------------------- --------
Pacific to Atlantic--------------.---------------
Total traffic, all routes:
Atlantic to Pacific---------------------------
Pacific to Atlantic.------------..-......-....------------........-

1926 1927 1928 1929

727,406 795,161 580,883 569,119
33.087 33,758 57,927 97,291
hO, 493 82 h, 919 638. h10 666,410

199,175 267,895 216,943 230,902
651, 969 658, 959 514, 233 373, 216

851,144 926,854 731,176 604,118

801,006 971, 434 955,784 1.324,233
1,348,330 2,081, 573 1,883,674 1, 403, 633
2,149,336 3,053,007 2,839,458 2,727,866

8, 037, 097 8, 583, 327 8,310,134
18,000,351 j 19, 1fi4, S88 21,320,575

Total ------------------------------------ 26, 037, 44 27, 74,8 215 29, 630, 709

9,882, 520
20,780, 486
30, 663, 006


Precise statistics of all commodities passing through the canal are
not kept because it is not required that complete manifests of cargo
carried by vessels be submitted at the canal. In lieu of a manifest
the master of each vessel is required to file a briefly itemized state-
ment, listing the principal items of cargo carried, and showing their
ports of origin and destination. These cargo declarations are the
basis of the commodity statistics. Except for commodities commonly
shipped in bulk, such as mineral oils carried in taidk ships, wheat,
lumber, nitrate, etc., shipments of various goods are likely to be in
excess of the aggregate tonnage of those reported during the year
and shown in the annual summary, because there is a natural tendency
not to list small miscellaneous shipments but to include them under
the head of General cargo ; not infrequently no other classification
is made of entire cargoes carried by vessels. Subject to errors aris-
ing from this source, the tonnage of the principal commodities
shipped through the canal during the past four years is shown in
the following table:


Commodity movement


Fiscal year ended June 30-
1929 1928 1927 1926

Long tons Long tons Long tons Long tons
Manufactures of iron and steel----.-------------------- 2,349, 566 1,855, 532 1,971,964 1,525,280
Mineral oils--- ----- .--------------------------- 806,744 717,080 649. 379 721, 817
Cement--- -------------------.. ---------------- 379,968 280,032 222,817 283,328
Cotton----------- ----------------------------- 331,652 259,225 361,241 226,092
Phosphates-------------------------------------- 281,168 198,826 183,521 162,254
Tinplate------- -------. ------------------------ 261,899 143, 610 194, 111 202, 773
Automobiles (exclusive of accessories)------------------ 250,688 124, 553 127,882 125, 820
Railroad material-------------------------------- 239,074 188.561 189,858 150, 993
Sulphur -------------- ------------------------------ 238,231 207. 257 211,625 188,889
Coal and coke-----------------------------------. 227,883 252, 740 1., 522 315,632
Paper..--------- ---------------------------------..... 224,276 183,263 150, 722 101,493
Machinery--------------------------------------...................................... 188,442 215, 334 172, 150 134,411
Sugar. __ __------------------------------------------ 150,402 44,951 282, 912 158, 997
Textiles -----------------------------------------....... 137, 886 124,658 91,967 79, 770
Tobacco--------...................................--------------------------------.... 129,433 78,943 81,457 F5,174
Canned goods (fish, fruit, vegetables, etc.)------------- 121,472 87, 136 44, 192 36, 769
Ammonia--------------------------------------- 108,862 91,776 134,977 108,104
Slag............-------------------------------------------- 96,894 84,797 30,064 55,458
Asphalt-------- --------------------------------- 93,806 82, 350 60, 586 43,458
Iron (metal)------- ------------------------------ 92, 992 40, 109 60, 216 47,490
Automobile accessories----------------------------- 90, 577 49,052 53,064 46,132
Scrap metal...--...............------------------------------------.. 83,829 48,168 23,354 2,632
Flour----................---------------------------------------... 79,351 24. 010 18, 702 41,398
Chemicals---......................................-------------------------------------.... 77, 286 52,493 48,479 41,015
Glass and glassware-- ---------------... --------------- 73, 757 61,434 53,119 44,363
Salt----- ----------------------------------...... 59,643 35,374 34,122 29,561
Agricultural implements--------------.-----..--------- 57, 195 60, 895 52, 438 38,976
Creosote------ ----------------------------------- 56,636 55,682 38,911 38,018
Bananas.--------------...... --------------.--------. 55,979 44,616 7,835 8,359
Coffee------- ---------.----------------..... 55, 002 69, 135 54,018 39, 356
Lumber-----. ---------------.---- ------------ 50,448 33,402 14,608 12,367
Rosin----- -----------------------------------............... 45,129 36,456 28,079 29,212
All other....................__ ................... 2, 386, 350 2, 478, 684 2,748, 435 2, 932, 706
Total------------------------------------ 9, 882, 520 8,310, 134 8, 583,327 8,037,097


Mineral oils------------------------------------- 5,197,813 5,619.076 7,143,165 5,930,716
Lumber---....--------...------------------------ 3,311,875 3, 673, S32 3, 139, 113 3,200,311
Nitrate.......... ------------------------------------- 2, 554,565 2, 565, ,72 1,174,384 1,878,050
Wheat-- ------------- -------------------............. 2, 365,555 3,035,884 1,477,376 1,187,384
Ores (principally iron)..------------- ------------------ 1, 750,548 1,600, 483 1, 648,862 1,622,758
Canned goods (fish, fruit, vegetables, etc.)--...--------- 921, 217 771,793 714,696 595,952
Sugar- --- ----------------.. ------------------- 717,931 577,781 427,035 318,032
Metals, various----------------------------------............ 671.500 626, 683 508,807 449,278
Food products in cold storage --------------.----------- 315,675 288,952 245,520 221,068
Fruit, dried ------------------------------...... ------.. 304. 956 272. 644 200,433 150, 229
Barley------------------------------------------........ 260, 142 237,262 344, 341 313, 535
Fruit, fresh----........--------------------------------211, 93,457 07. 969 63,495
Beans-- ----------------------------------------. 154, 782 127, 168 73, 569 54, 565
Wool ------------------------------------------ 150,712 167,931 129,906 146,092
Coffee---. ------------------------------------- 136,369 132. 82 113, 313 104,739
Copra-- ------------------........--------------------- 119,586 83,143 81, 685 76,223
Rice- ---- ----------------------------------- 113, 606 47, 750 71,870 20,664
Flour----........-------- ------------------------------ 110, 183 112, 191 90,988 64, 391
Cotton----................................---------------------------------- 109,825 95,724 107,311 65,850
Borax--........-------------..----------------------------...................... 74.089 86,933 56,091 51,951
Coconut oil-----. ---------------------------------. N 206 29.862 25.595 10.179
Skins and hides--------------.--------------------- r.. 158 73, 587 58, 976 48,479
Paper..............-------------------------------------------................... 2, 191 49,657 23,549 28,629
Pulp--------------------------------------------.......................................... 49, 623 14,734 3,099 2,100
Oats--------------------------------------------............................ 44,115 64,388 73,515 41,084
All other--------------......-----------------------.................. 937, 410 871,220 1,133,720 1, 354, 597
Total.-----------------------------------.. 20,780,486 21,320,575 19,164,888 18,000,351

I Does not include fresh fruit.

Total cargo from the Atlantic to the Pacific during the year showed
an increase of 1,572,386 tons, as compared with the fiscal year 1928,


and an increase of 816,586 tons over the previous high record for a
year's cargo tonnage passing through the canal from the Atlantic
to the Pacific (calendar year 1928). Of the 17 commodities shown
in the foregoing tabulation having a total of 100,000 tons or more
through the canal in 1929, 15 show increases and 2 decreases. Malanu-
factures of iron and steel, the commodity of the heaviest tonnage
from the Atlantic to the Pacific, increased 4941,034 tons, the larger
part of which gain was in the United States intercoastal trade. Ship-
ments of automobiles increased 126.135 tons, more than doubling the
shipments of the previous fiscal year. The trades contributing to the
larger portion of the increase in automobile shipments were from the
United States to Australasia, from the east coast. United States to
the west coast of South America, and from the United States to the
Far East, in order named. Another heavy increase was that of
sugar-from 44,951 tons in 1928 to 150,402 tons in 1929-the larger
part of which shipments originated in the West Indies, and were
destined to the Far East and Canada.
The Pacific-to-Atlantic cargo movement during 1929 decreased
540,089 tons from that in the previous fiscal year. Shipments of
wheat, mineral oils, and lumber, three items of the heaviest tonnage
for several years, decreased 670,329 tons, 421,263 tons, and 361,957
tons, respectively, in comparing 1929 with 1928. Nitrates also
showed a slight decrease, while ores (principally iron), one of the
five larger commodities, increased some 150,000 tons. Of the 14
Pacific-to-Atlantic commodities ranging between 100,000 and 1,000,-
000 tons in 1929, 12 increased and 2 decreased as compared with the
previous fiscal year. The trade between North America and Europe
absorbed practically all of the loss in wheat, tonnage, while the two
main sources of mineral oils in the Pacific area-California and South
America (Ecuador and Peru)-both contributed to the loss in
mineral-oil shipments. The loss in lumber was primarily in the
United States intercoastal trade, and to a smaller extent in the trade
between the west coast of Canada and the east coast of the United
Of the 6,413 commercial vessels transiting the canal during the fiscal
year, 5,142 were steamers, 1,240 were motor ships, and the remaining
31 were motor schooners, sailing ships, barges, etc. For the past four
years the proportion of each class has been as follows:

1926 1927 128 1929

i Per cent Per cent Per cent Per cent
Steamers...............--------------------------............................--..--.......... 89.2 85.3 84.8 80.2
Motor ships--.-------.. ..-----.....-----. ---.--.---..--....------------ 8.6 11.9 13.8 10.3
Miscellaneous--------... -----------------....-----..--......... -... -------- 2.3 2.8 1.4 .
Total..-----------................... -----.............--....100.0 100.0 100.0 100.0


As will be noted in the above table, the proportion of motor ships
in the traffic through the canal has been increasing from year to
year. The actual number of transits for the past four fiscal years
has been as follows: Fiscal year 1926, 443; 1927, 654; 1928, 890;
1929, 1.240.
Of the 5,142 steamers transiting the canal during the past fiscal
year, 3,293 burned oil, 1,786 burned coal, and 63 were reported as
fitted for either fuel. For the past four fiscal years the proportion
of each class has been as follows:

1926 1927 1928 1929

Per cent Per cent Per cent Per cent
Oil burning-------.......- ---------------.----------------------66. 2 70.8 63. 8 64.0
Coal burning-------------------------------------------- 33.2 28.3 35.7 34.7
Either oil or coal-..--.------------------------------------- .6 .9 .5 1.3
Total......---------------..--------------------------- 100.0 100.0 100.0 100.0

The first transit through the canal of a vessel using pulverized coal
for fuel occurred on January 17, 1929, in the passage of the British
steamship Hororata, bound from London for New Zealand. This
vessel bunkered at the Cristobal coaling plant on January 16, taking
668 tons. On a later voyage she took 2,169 tons of coal at Cristobal
on June 16.

A classification of the traffic during the fiscal year 1929 by laden
ships, those in ballast and tolls-paying vessels which are not of the
cargo type, is presented below:


Tank ships:
Ballast ---------- -------
General cargo ships:
Laden-..-- ----------
Noncargo-carrying ships:
Passenger 1.-.------------
Tugs -------------.-------
Yachts.------.-- -------

Atlantic to Pacific

Pacific to Atlantic

Panama Panama
N is Canal net Tolls Canal net Tolls
f ships tonnage of sips tonnage

41 200,406 $203, 062.40 526 2,845,784 $2,927,369.40
506 2,750,207 1,980, 735. 87 10 47,866 34, 463. 52
2,340 10,810,781 9,962,492.85 2,462 11,148,707 10,488,943.50
424 1, 907, 185 1,374, 455. 30 40 58, 760 42, 258.34
10 ............ 29,126.50 8 ------------ 31,190.50
1 18,874 16,412.50 3 43, 732 32,492. 50
5 468 471.84 6 641 654.27
21 3,209 2,378.49 10 1,174 869.13

3,348 15,691, 130 13,569,135.75

3, 065

14, 146,664

13, 558, 241.16

I Tourist ships carrying passengers only.

A classification of the commercial traffic during the fiscal year
1929 by laden ships and those in ballast, divided between tankers and



general cargo vessels, and showing the ships not designed to carry
cargu, is presented below:

Classificat ion

Tank ships. laden:
Number of transits------....--.-...------.---...-
Panama Canal net tonnage-----..........---.------
T olls................................ ............ ...
Cnr ., tons.------.-...-..--..-....................
Tank striijs, ballast:
Number of transits---------.---...-----.-----.-----
Panama Canal net tonnage---............------- ...
o ......................... ..............
*General cargo ships, laden:
Number of transits------------..----............--
Panama Canal net tonnage-----.----..--------.....
Tolls ---..-----.------------ --. ------
Cargo, tons---.---------------------------------..-
-General cargo ships, ballast:
Number of transits----. --------.-.......-...-......
Panama Canal net tonnage ---..------------------..
Non'arpo-carrying ships:
Number of transits-------------------..-.. -....
Displacement tonnage.-----------------.-...--..
Tolls..--------------------- --.---......
Pa.'senger vessels-
Number of transits -----------.-------.-..-_-_..
Panama Canal net tonnage--.--. -_-.-_--. ...---
Tolls... ------ -----------.. --.....-..-..
N um ber *f Iran il .......................... ....
Panama .'.ai'il nit I 'nuage ................
Tolls... .-.- ..- -------.-......--- _---- ..-...-
Number of iransit-. .................. .........
Panama Canal net tonnage-.-.......----..-....-
Tolls -------------------------.-------.
Total ships, laden:
Number (of transit .............................
Panama Canal net tonnage......................
Ton of care .......................................
Total ships, ballast -
Num ber of transit ................................
Panama Canal net tonnage------..------ -...--..--.
Tolls...-............--- -- .-- ..-- --- ...
Total tank ships:
Number of ships--------------....-----..--........
Panama Canal net tonnage--.......................-
Tolls.--....- --.....------...- -.............- -
Tons of cargo.-----------------------..-------......
Total general cargo ships:
Number of transits------------...-..-..-..-....
Panama Canal net tonnage--.....-----.........
T olls ......... .. ... ....... ................ .
T ons of cargo .. .............................
Total non( rgo,-arrying shipi.
Number of transiIs ...............................
Panama Canal net tonnage----.. --....--..--------.
Displacement tonnage ---------------
Displceme........nt tonnage.........................
Tolls .
Grand totals:
Number of transit .................. .............
Panama Canal net lonr:i-e .........................
Displacement tonnage. .....
Tolls. ......... ............ . ..
Tons of cargo.... .....................

Atlantic to

$203, u;2. 40
2, 750, 207
2., 311
10, S ll', 7 l
$9, 4r62. 1y2. .5i
9, .'.-7, 74,j

1, 907, 185
$1, 374,455.30

:.. 257
$29, 126.50
$16,412. 50
3, 2119
$2, 378.49
$10, 165, 555. 25
4,657, 392
$3,355,191. 17
2, 950,613
$2, 183,798. 27
12, 717,966
$11, 336.941.15
9, 597, 748
.-8, 257
$48. 389. 33
15, 691. 130
58. 257
$13, 59. 1;35. 75
9, Sx2. 520

Pacific to

$2, ;27, 3r9. 40
5, 227, 7)0U
47, 866
11, 148,707
$10,488, 943.50
15, 552, 777
.T. 760
.4N-. 2.-1. 34

$31, 190. 50
43., 732
$32, 1'.2 50

1, 174
$869. 13


2, 893, 650
$2, 961, 832. 92
5, 227, 709

2. 502
10, 207. 467
$10,.531. 201.84
15, 5;M, 777
i'2. .J I
$65, 206.40
13. 146, 664
$13,558.211. 16
20. 70.486


3.046, 190
$3, 13:0,4. 41. 80
5,.512, 481

2, 798. 073
$2,015, 1I9J. 39
21, '.-.! 488
$20,451, 436.35
25, 150, 525
$1,416,713. 64

120. 638
$60, 317. 00
$48, 905.00
$1, 126. 11
$3. 24-7. 62

$23, 51 1,868. 15

4, 764. 018
$3,431, 913.03
5, 844, 263
$5, 145.631.19
5, j12.481
22,925, 433
$21, 868,149.99
25, 150,525
3 20. 638
2b, X.37. 794
$27, 12,.0091


The traffic in January, 1929, established new high records for a
month's commercial transits, measurement tonnage, tolls, and ceirgo.

The following tabulation summarizes those items for January in


comparison with the previous high records, and shows when the
previous record was established:

Commercial traffic January, 1929 Preioushigh Date

Number of transits------------------------------------ 603 589 December, 1927.
Panama Canal net-------------------------------- 2,771,280 2, 698, 140 December, 1928.
United States net-------------------------------- 2, 117,812 2,055, 648 Do.
Registered gross---------------------------------- 3,470,934 3,359, 731 Do.
Registered net--------------------------------- 2, 122, 121 2,056,933 Do.
Tolls collected---------------- ----------------- $2,502,815. 12 $2,443, 029.39 Do.
Tons of cargo------------------------------------ 2, 858,835 2, 717.646 October, 1927.

The Swedish motor ship Svealand. transited the canal on June 29,
1929, with a cargo of 22,146 long tons of iron ore, bound from Cruz
Grande, Chile, to Baltimore, Md. This is the largest cargo carried
through the canal on any ship to date. The previous record was
22,000 tons, made on October 27, 1922, by the tank steamship TVWilhnti
Rockefeller, carrying crude oil. The Svealand established also on
the above transit a new record for low cost of tolls per ton of cargo.
The tolls paid amounted to $4,678.75 or a pro rata cost of $0.2113
per ton of cargo. The previous record of $0.2141 was made by the
Sve(alanit on May 21, 1929. The Svealand is 550.1 feet long, 72 feet
bam n, of 15,339 gross and 4,377 net tons, national registered tonnage
and 4,461 net tons, Panama Canal measurement. The draft of the
ship at the time of transit on June 29 was 34 feet.
A monthly record for tonnage of cargo from Atlantic to Pacific
was established in October, 1928, when 875,641 long tons of cargo
passed through the canal from the Atlantic to the Pacific. During
May, 1929, the record made in October was broken by the transiting
of 920,360 long tons. Increased shipments in the United States inter-
coastal trade and that from the east coast of the United States to
the Far East were the chief reason for the heavy movement.
A record for cargo movement from Pacific to Atlantic in a month
was established by the transiting of 2,099,015 tons in January, 1929.
Of this quantity, 46.3 per cent originated on the west coast of the
United States.
Chilean nitrates are an important element in the traffic passing
through the canal. During the month of January, 1929, 358,600 tons
of Chilean nitrates were carried through. This surpassed the pre-
vious high record of 315,670 tons for the month of December, 1928,
by 42,980 tons. Of the January cargo, 229,810 tons were destined
to Europe, 110,563 tons to the United States, and the balance, con-
sisting of small shipments, to Egypt and the West Indies. -
During the month of October, 1928, 72,530 tons of canned fruit
and 63,305 tons of dried fruit passed through the canal from the


Pacific to the Atlantic, establishing record figures for both of these
items. The previous high mark for canned fruit was set in October,
1925, whNen 63,155 tons were declared, and for dried fruit in Novem-
ber, 1927, when 60,122 tons made the transit. Of the total canned-
fruit shipments through the canal during October all but 1,066 tons
originated on the west coast of the United States; 39,459 tons were
reported as destined to the east coast, of the United States and 27,355
tons to Europe. Of the dried fruit, which also originated on the
west coast of the United States, 24,458 tons were reported as being
destined to the east coast of the United States and 38,446 tons to
Eu rope.
Further particulars of the traffic are presented in section V of
this report in the form of tables and graphs.
Under the present law tolls on commercial vessels using the canal
are levied at $1.20 per ton on laden ships and $0.72 on vessels in
ballast on the basis of tonnage determined by the Panama Canal
rules of measurement. with the proviso that the amount collectible
shall not exceed $1.25 per net ton or be less than $0.75 per net ton
as determined under the rules for registry in the United States. This
requires that tonnage be determined and tolls reckoned on two bases,
and as the United States rules of measurement are considered some-
what arbitrary and are subject to changes, the dual system results in
confusion and annoyance. Occasionally on small vessels, such as
tugs. the United States rules indicate a negative net tonnage, and
such vessels make the transit without the payment of tolls.
The canal administration has advocated consistently the adoption
of the Panama Canal rules as the sole basis of tolls, and in recent
years has suggested that if they be adopted the rates of tolls should
be set at $1 per net ton for laden ships and $0.60 for ships in ballast,
which would return approximately the same revenue as is collectible
now. This plan has met opposition from operators of the United
States general cargo vessels for the reason that it would result in an
increase in the charges against this type of vessel. For the past
fiscal year the adoption of the canal plan would have increased the
total tolls a little over 3 per cent; the additional collections would have
been $863,057.69, as compared with an actual collection of $27.127,-
376.91. For all United States vessels together it would have meant
an increase of $171,902.30. The following table shows the distribu-
tion of increases or decreases among the vessels of the different
nations using the canal during the year:



Tolls actually
collected under
present dual

Tolls that
would have
been collected
under proposed
rates of $1
laden and 60
cents ballast
on basis of
Panama Canal
net tonnage

Argentine-.------------------------------- $1, 274. 50 $1, 274. 50 -_ k-- "-
Belgian--------------------------------- 83,757.04 78,902.20 ----------- $4,854.84
British ------------------------------ 8,025,045.81 8,362, 583. 70 $337, 537.89 ------
Chilean --------------------------------- 136,663.49 144,024.20 8,260.71...........
Colombian------------------------------ 41,652.43 37,304.80 --------------.............. 317. 3
Costa Rican------------------------------. 29.25 23.40 .............. 5.85
Cuban------------------------------- ----- 242. 50 194.00 .-------------- 48.50-
Danish.-------------------------------- -379,383.44 389,431.40 10, 047. 96 I-------
Danzig--------------------------------- 167,731.28 152, 563.40 -------------- 15,167.88
Dutch------------------------------------ 595,905.62 676, 289. 60 80,383.98 -------
Finnish--------------------------------- 16,860.00 15,580.00 ------ 1,280.00
French---------------------------------- 532, 777.65 538, 300. 00 5, 522. 35 ------.----.
German ------ ------------------------- 1,222, 181. 38 1,378, 504.60 156,323.22 ------ .
Greek---------------------------------- 218,427. 77 222,692.40 4, 264.63 -----.
Italian..-------------------------------- 446, 623.34 477, 196. 00 30, 572.66 ------
Japanese ---------------------------------- 810,215. 74 765, 724. 20 --------------- 44,491. 54
Mexican----------------------------------- 613.50 613.50 ------------
Norwegian------------------------------. 1, 122,895. 34 1, 183,979. 20 61,083.86 ---- --
Panaman --------------------------------- 91, 133.63 103, 062.20 11,928. 57 ------.
Peruvian----------- -------------------- 77, 183.43 109,405. 20 32, 221. 77 ---- ---
Spanish -------------------------------- 116,720.34 111,396.70 -------------- 5,323.64
Swedish-------------.------------- -------- 520,155.43 546, 756.40 26, 600. 97 ............------ -
United States------------------ ----------- 12, 299, 584. 70 12,471,487. 00 171,902. 30 ------.
Yugo-Slavian---------------------------- 220,319. 30 222, 246.00 1,926. 70 ------
Total--.----------------------------- 27,127,376. 91 27,990,434.60 938, 577. 57 75, 519.88
Total difference, increase of--------------------------- ----------------- 863,057. 69 ----------.


The dispatching of ships through the canal is conducted on sched-
ules. Vessel ready to leave for transit begin moving through the
canal from each end at 6 o'clock in the morning, and dispatches are
maude thereafter from each end at intervals of about half an hour.
The following is a summary of the arrangements in effect at the
end of the fiscal year:
Operating hours for complete iranisit.-From Cristobal Harbor,
first ship at 6 a. m., last at 2.30 p. m.; from Balboa anrchoragc. first
ship at 6 a. m., last at 2 p. m. This applies to vessels averaging
10 to 12 knots; in case of a vessel capable of 15 knots, departure
may be made up to 3 p. m. from Cristobal, 2.30 p. m. from Balboa.
Limits for starting on pfir0fth d traiNsit.-After the last through ships
have been dispatched, and provided there is no interference with
approaching traffic, ships are started on partial transit from Cristo-
bal Harbor up to 9 p. m. or from Balboa anchorage up to 8 p. m.
Partial-t ran-it ships tie up on reaching the summit level and con-
tinue the following morning, the first leaNving Gatun for the Pacific
at 3.45 a. m., and the first of those bound for the Atlantic leaving
Pedro Miguel at 3.30 a. m., providing the air is sufficiently free of fog
or rain to allow safe navigation.





Tankers with inflammable cargoes are dispatched at the discretion
of the captain of the port and are not permitted to proceed unless
they can clear the cut before dark. Overloaded tankers carrying
gasoline cargo are restricted to schedules leaving at 7, 7.30, and
8 a. m.
Two ships usually, sometimes three, each way, can be given the
benefit of partial transit each day, and under ordinary conditions
they gain from two to three hours. When traffic is heavy it is im-
practicable to use partial transit, as they would then interfere with
the regular schedule.
The present volume of traffic does not make advisable continuous
operation throughout the 24 hours of the day, or even extensive night
operation. Such operation would not only involve greater expense
and increase the difficulties of maintenance of locks and channel but
it is somewhat objectionable from the shipmasters' point of view on
account of the hazards of navigation in restricted channels under
conditions of darkness, made worse by rains and fogs. Fogs over
the cut and lake usually fall before midnight and are dissipated by
8 o'clock in the morning.

The average number of lockages per day was 17.23 at Gatun Locks,
21.85 at Pedro Miguel, and 21.74 at Miraflores. The total number of
lockages at all locks was 22,197, as compared with 19,533 during the
fiscal year 1928 and 16,941 during the fiscal year 1927. The increase
in the past year was 2,664, or 13.6 per cent.
Gatun Locks.-Both lock chambers were in service and used for
lockages each day during the year. During the period of overhaul of
the Pacific locks double-chamber operation was provided at Gatun
for 16 hours daily. The longest delay to any ship resulting from
machine failure or improper operation was 53 minutes. Thirty-eight
delays were recorded due to the locks, averaging 10 minutes each.
Several new traffic records were made during the year, as follows:
On December 8 a daily record of 32 lockages was made when 22
southbound commercial ships were locked, which constitutes a record
one-way commercial traffic. This was accomplished by making 12
follow-up lockages. There was an average of 41 minutes between
clearing times. The January traffic established three monthly rec-
ords, as follows, the last two being due to the transit of the United
States Fleet: (a) Commercial ships, 607; (b) lockages, 610, and (c)
total vessels, 760.
For the purpose of conserving the water supply in Gatun Lake,
short-chamber lockages and cross filling-were made during the dry


season; the estimated water saving resulting from such operations
amounted to approximately 2,500,000,000 cubic feet. Routine main-
tenance and repairs were made on all machines and equipment, and
there were no serious breakdowns during the year. A concrete struc-
ture was constructed on the end of the south approach wall for the
mounting of an aluminum arrow indicator, and other supports and
rack.- provided for the installation of signal devices, so that ships can
be signaled to approach in the order desired. Decayed tops of piles
driven at the south crib were cut off and the piles were treated with
bitumnstic enamel; and 51 fender timbers were replaced. No fender
cha ins were struck by ships during the year. Extensive painting was
done on four chain-fender machines. In touching up the interior of
lock gates some 4.500 pounds of bitumastic enamel were used, and
approxinm;ttly 30,000 pounds of enamel were applied to the exterior
surface of the gates.
Pacific locks.-The quadrennial overhaul of the Pacific locks was
begun on January 2 and completed on June 14, after a working pe-
riod of 5 months and 10 days. This was longer than the usual over-
haul period of between three and four months and was due to the
additional items of the installation of 59 new cylindrical valves and
the unhinging, inspection, and repair of a pair of miter gates. The
last previous general overhaul had been three years before at Pedro
Miguel and four years at Miraflores.
In general, the underwater equipment was in good condition,
though some miter gates were rather badly pitted, requiring electric
welding to fill the worst, pits, and some of the rising-stenm valves had
nearly lencahed the limit of further operation without repair. A few
of these valves had broken side seals and on most of those at Mira-
flores the roller trains had about reached the point, of collapse; in a
few ca.-es they had collapsed. The 40 cylindrical valves at Mira-
flores and 19 of the 20 at Pedro Miguel were removed and replaced
by new-type valves. One such valve at Pedro Miguel was replaced
in 1926. All valves were equipped with new rubber seals and the
guide liners replaced where necessary, all stems were reconditioned.
and all valves were coated with bitumnstic enamel. Repair and
maint.'nannce work was also done on all risinlr-stem and guard
valve-s, each being thoroughly reconditioned. Four gates at Mirn-
flores lad considerable electric spot welding to fill deep pits. All
gatc'e were reenameled, sills, fenders, and seals being renewed as
necc ^ry. During the overhaul two gates at Pedro Miguel were
unhiiniLedl and rolled out for renewal of the miter and quoin seal
plate and bottom pintles and Lushings. The pintle bearings of
these two rates were equipped with a system of forced lubrication,
which it is thought will prevent wear to a great extent in future.
















r- .. -



All gates, sills, and sections were renewed where necessary, while
on 25 gates bottom fenders were renewed complete and sections were
renewed on three others. Rubber seals were renewed complete on
24 gates; seal angles were renewed complete on 22 and reconditioned
on all others.
Apart from the overhaul, the machinery, equipment, and struc-
tures were maintained in good condition and daily operations con-
tinued as outlined in the report for 1928. During the overhaul
period, when one flight was out of service, the operations for the
transit of vessels were on a continuous 24-hour basis. Some delays
to ships occurred, as was to be anticipated from the conditions.
Lockages during the past five fiscal years are summarized in the
following table:

Gatun Pedro Miguel Miraflores Total

Loclkages Vessels Lockages Vessels Lockages Vessels Lockages Vessels

July................. 501 578 520 623 518 622 1,539 1,823
August..------------......... 515 587 535 615 536 616 1,586 1,818
September........... 475 543 499 579 493 577 1,467 1,699
October----------.......----. 539 612 576 673 569 672 1,684 1,957
November------.......... 517 576 545 627 544 629 1,6C6 1,832
December------....---....---.' 568 672 601 715 590 721 1,759 2,108
January............... 610 760 614 815 563 805 1,787 2,380
February...........-------------. 503 611 515 673 4C6 635 1,484 1,919
March..-------....--.....------ 539 670 530 713 512 714 1,581 2,097
April-------------............... 514 642 507 681 510 686 1,531 2,009
May.........--- ..-------...... 512 605 508 642 504 628 1,524 1,875
June.................----------------- 496 572 523 638 520 629 1,539 1,839
Fiscal year:
1929-------------- 6,289 7,428 7,974 6,473 7, 934 6,325 22,197 20,226
1928-------------- 6,314 7,406 6,642 7, 811 6,577 7,804 19, 533 23,021
1927--------........------..... 5,467 6,641 5,783 6, 96F 5,691 6,941 16,941 20,550
1926-------------- 5,213 6,386 5,398 6,434 5. 359 6,403 15,970 19,223
1925 -------------- 4,644 5,485 4,977 5,703 4, 859 5,689 14,480 16,877


The Gatun hydroelectric station operated throughout the year,
carrying the full load of the power system except at times of peak
load when the Miraflores Diesel electric plant came on the line, and
during the dry season nionths when the water-driven generators at
thile Gatun plant were restricted in operation to 'conserve water in
Gatun Lake, at which time the 1Miraflores plant, assumed the innjor
portion of the load on the system.
The power system was operated throughout the year with a com-
bined generator output averaging 5,143,542 kilowatt-hours per month,
as compared with an average of 4.SG1.333 kilowatt-hiouri pI :- month
during the preceding year. An average of 4,751,70.0 kilowatt-hours
per month was distributed from substations, as compared with a
corresponding figure of 4,484.061 hilowatt-hours per month during


1928. These figures indicate a loss in transmission of 7.61 per cent
during the year, as compared with a corresponding loss during 1928
of 7.76 per cent.
There were 15 interLruptions on the transmission line during the
year, from the following caus-es: Lightning, 6; animals, 4; train
wreck, 1; accidental tripping of circuit breaker, 1; operating errors,
2; defective relay, 1. During the year necessary relays and auxiliary
equipment were purchased and installed for providing duplicate
service over the two transmission lines. This duplicate service will
provide continuous service to the different substations in case one
of the transmission lines fails. This installation, which was com-
pleted at the end of the fiscal year, should greatly reduce the number
of interruptions on the line.
A location survey for the transmission line to the Madden Dam
site at Alihajuela was made from Summit to the Canal Zone bound-
ary, from which point it will be over the same right of way as the
MInadden Road.

Comparative data. showing the inflow of water in Gatun Lake
from all sources, utilization, and losses for the fiscal years 1928 and
1929 are shown in the following table:

Run-offabove.11hajuell............ . ...............
V ichi from land we a blow 11h:s juel .


E v.i p
aii iii
IT,. r

Per cent of total,
fiscal year-

1928 1929

t rainfall on lake surface ------------------------------- 17.6
Total ----.---.---------------------------------- 100.0
or i ion from lake surface--------------------------------- 9.0
1 I. ike lockages.--------.....----------------------------- 19.4
iflectri c power ------.-------------------------------- 19.6
.'v w.i*l........ .. -------------.................-------- 51. 8
,e -innliiiwiial .nd other iijiir minor ue..-------------------- .6
ase or decrease in storage -.------------------------------. -.4
T ........................................ -------- -- -- 100.0

Billion cubic feet,
fiscal year-

1928 1929

38.3 101.15
41. 6 88. 25
20.1 40. 31
100. 0 229. 71
10. 3 20.81
20. 2 44.60
21.0 44.93
50. 6 118.91
.8 1.38
-2.9 -. 92
100.0 229.71

87. 05
209. 39
21. 60
-6. 11


From a water-supply standpoint the past. dry season was of
slightly more than the average duration and 11 pcer cent below the
average in yield; that is, the total yield of the Gatun Lake watershed
over a period of 129 days was 1,574 cubic feet per second compared
with an average of 1,766 cubhic feet per second. The Chagres River
fiurni hled 56 per cent of this total yield. Gatun Lake fell during the
dry sea-ion from elevation 87.02 feet to 82.51) feet, repjresenting a loss
in storage of 20.4 billion cubic feet. Approximately 3,188,000,000


cubic feet were saNved at the Gatun hydroelectric station by making
use from time to time of the Miraflores Diesel plant, and about
2,832,000.000 cubic feet were saved at the locks by the process of
short lockages and cross fillings, the saving approximating 1.32 feet
on Gatun Lake. Had there been no --aving of water the minimum
elevation of Gatun Lake would have been 81.18 feet instead of 8-.50
The conditions making necessary the construction of a storage res-
ervoir at Alhajuela on the Chagres River were outlined in the annual
report for the fiscal year 1028. The appropriation act for the fiscal
year 1929 included an item of $250,000 for commencing construction
of a damn together with hydroelectric plant, roadways, and such other
work as in the judgment of the Governor of the Panama Canal may
be necessary, to cost in the aggregate not to exceed $12,000,000.
Under this appropriation the work initiated at the beginning g of the
fiscal year consisted of construction of camp quarters and,
purchase of floating, core drilling, and surveying equipment, geolog-
ical examinations, core drilling, and surveying. Some preliminary
work has been done in previous years, such as acquiring title to the
22-square-imiile area below the 260-foot contour and monumenting of
boundary, surveying of reservoir area, and general studies on the
various plhases of the propuoed project by a committee of Panama
Canal officials.
By act of Congress of February 28, 1929, the designation of the
water-storage project at Alhajuela was changed to "Madden dam,
lake, plant, and road, in honor of Martin Madden, former chairman
of the Committee on Appropriations of the House of Representa-
Organization.-A. separate force was not organized, and the plan
followed was for each division concerned to cooperate in all phases
of the work and to share jointly the quarters, messes, and transpor-
tation facilities provided. A certain number of positions, with rates,
for employees stationed at Alhajuela was approved at the beginning
and increased from time to time as the work expanded, an(d on June
17, 1929, a designing engineer was appointed, but no change was
made in the method of work for the balance of the fiscal year.
Quarters and equipmenf.-The existing gold quarters at tlie hydro-
graphic station at Alhajuela were enlarged to provide ancommoda-
tions for the American personnel engaged at the dam site. This
structure served not only for quarters but as office, drafting room.
and general headquarters, with a kitchen and mess room on the lower
floor. In addition a quarters and mess building for about 200 silver
employees was constructed on the.'.-ighl btink of thie Chagres River


about 300 yards south of the dam site. For both sets of quarters
sewers and bathrooms were provided and an electric system was
installed for light and power. An oil house for storage of oils and
a building for storage of diamond drill cores were also constructed.
Two diamond drills, 1i-inch and 2-inch cores, were purchased and,
together with a wash drill, were in operation during the greater part
of the year. A power barge, 3 launches, and a number of dug-out
canoes (cayucas) provided the necessary water transportation to
the site.
Geological examrnintions.-Extensive geological examinations were
undertaken during the year, the foundation possibilities of dam sites
1 to 5, inclusive, receiving particular study. In addition to further
developing the geology of the reservoir and dam site these studies
resulted in increased knowledge concerning various problems of
construction, including possible leakages through pores, through
openings by artesian circulation, etc., and furnished data with
respect to the foundations of the various saddle dams and probable
leakage in relation to the height of the main dam. The possibility
of leakages through the Chagres-Madronal and the Azote Caballo-
Chilibrillo ridges indicates that clay blanketing or pressure grouting
may be required.
Borlnqs.-The two diamond drills and one wash drill, operating
during part of the year, made 30 borings to various depths. All
holes solely for geological purposes were completed, with the excep-
tion of one large drill hole which had reached a depth of 683 feet
(elevation minus 570 feet) on June 30, 1929. For engineering pur-
poses extensive borings will be made during the fiscal year 1930.
Surveying.-Levels were run and bench marks were established at
two hydrographic stations established during the year on the Chagres
and Pequeni Rivers. These new stations are equipped with auto-
matic recorder instruments (requiring attention only once in 30
days), and will be the means of establishing freshet ratios of water
levels in the upper rivers some miles above the dam site. Later, as
the work on the dam progrl'-ses, attendants with telephone communi-
cation will give flood warniings to the construction site. During the
year considerable surveying was accomplished, not only in the im-
mediate vicinity of the da1i site but also at various points along
the ridges and saddles which will form the rim of the reservoir;
monuments were set and bench marks established, much topograph-
ical mapping was accomplished, trochas cut for geological examina-
tions, etc.

Sixty-four seismic disturbances were recorded at Balboa Heights
during the fiscal year 1929. Of these about 39 per cent were of local


origin, 31 per cent were of distant origin, and 30 per cent, were so
slight that no estimate could be made of the distance of the epicenter.
No local damage was reported from any of these tremors. In the
preceding fiscal year the number recorded was 44, with no damage
resulting locally.


Dredges were at work throughout the year on maintenance and
improvement work in the Atlantic entrance, Gatun Lake, Gaillard
Cut, Pacific entrance, and Cristobal and Balboa. Harbors and ter-
minals. These dredges excavated 3,460,250 cubic yards of material
from the canal prism, 550,950 cubic yards from Balboa Harbor and
terminal, 52S,100 cubic yards for the naval air station fill at Coco
Solo. and 440,000 cubic yards from borrow pit, Island No. 1, Balboa
Harbor, a total of 1,5.19,050 cubic yards from harbors and terminals,
making a grand total of 4.979,300 cubic yards, as compared with
5,094,550 cubic yards in 1928. The excavation in the past year is
summarized in this table:

Earth Rock Total

From the canal prism:
Atlantic entrance (maintenance)----------------------------.--- 0 0 0
Gatun Lake------------..-----------------------.---------. 0 0 0
Gaillard C'i, project No. 2---.-------------------.--------..--- 37,950 3-.7. 100 395,050
0:.ill.irld Cut, prrd'ijet No. 9-------------------------------. -- .. 19,900 162, 150 1,2, 050
Giill ird Cut, maintenance-------.-------------------------. 11. 3 449, 2M0 68. 600
Pacific entrance (maintenance)----------------------------1,643.3 0 .3, 1, I I'.. 900
Pacific entrance, project No. 1-----.---------- --------------- .,700 211,950 tl7, 650
Total, canal prism---------------------........-------------- 2. 1,234,000 3, 4 f0. o50
Ba;lhin Inner Harbor ,faiiiliiar. W. R. M-839)-.................. 2,000 0 2,000
Balboa Inner Harbor i'm 87,400 17,400 104,800
Balboa Inner Harbor anl remniin:il project N\'. I i.n.iinfenance). 14,700 429,450 444,150
Cristobal Harbor and terminal--------------------------------- 0 0 0
Naval air Sta -ion till. Coco Slo, Canal Zone.-------------------- 493,600 34,'00 .r2. 100
Borrnw pit, Isliand No. 1, .ilhoi Harbor (Z-9161) --------------440, 000 0 4n, 000
Tot-il, harbors and terminals--------------------------- 1,037,700 481,350 1,519,050
Grand total----------------------...------.---..---------- 3, 263, 9,0 1, 71 -,, 3.0 4, '.79, 300

Improvement project No. 1.-The work of deepening the Pacific
entrance channel from Miraflores Locks to the sea buoys and Balboa
Inner Harbor from 45 feet to a ruling depth of 50 feet, mean sea level
datum. known as improvement project No. 1 and begun in July. 1924,
was continued throughout the year as equipment, was avaiilbili i.
Work was carried on by pipe line suction dredges No. GV and Las
Crucecs, handling the softer materials, and dipper dreildg, GCamnl0oa
and Ca.-cadas exasivating rock and hard earth. Tihl suction dredges
excavated 53.800 cubic yards from the channel. c(h;irg'ie to this
project; and the dipper dredges excavated 241,150 cilbiic yard' from
the channel and 444.150 cubic yards from the harbor, classified as
work on the improvement. In addition to this total of 739,100 cubic



yards on the project, the dredges did considerable excavation as
maintenance. Two drill boats, Teredo No. 2 and Terrier No. 2, were
employed 91/2 and 11 months, respectively, on this work during the
year, breaking up 275,080 cubic yards of rock and using 271,522
pounds of dynamite. The total excavation to the end of the fiscal
year on this project was 4,551,700 cubic yards, or about 58 per cent
During the fiscal year, an extension to improvement project No. 1
was authorized, involving the excavation of 530,000 cubic yards of
material from a strip approximately 150 feet wide along the east
prism line of the Pacific entrance from station 2265+00 to station
-:308+00, which will form an easier access to the oil berth along this
sectionn of the canal. Dredge No. 86 removed 322,700 cubic yards of
earth from this portion during the fiscal year. This amount is not
included in the quantities for improvement project No. 1 above.
Improvemintif project No. 2.-This project which was begun in
September, 1927, entails the widening of the channel at Lirio curve,
so as to enable all classes of vessels to pass this sharp turn with ease
and at the same time providing a better range of visibility. Work
was continued throughout the year, the dipper dredges Gamboa and
Paa' removing a total of 395,050 cubic yards of material. In the
shore mining work, 311,127 cubic yards of rock were broken, using
139,158 pounds of dynamite. A drill boat worked two months on
subaqueous mining, breaking 7,410 cubic yards of rock and using
14,363 pounds of dynamite. A hydraulic grader also worked on this
project during the entire year, moving 165,250 cubic yards of material
to the dredges; also air compressor barge No. 27 was Ilsedl throughout
the year for furnishing compressed air for the operation of 10
wagon and 11 tripod drills. The total excavation to the end of the
fiscal year on this project was 1,164,750 cubic yards, and it was about
58 per cent completed.
I/i 'pr'cemeint project No. 9.-This project, which was begun in
June, 1928, consists of widening the channel fronting We-t, Culebra
slide so as to minimize d(ingtr to ships entering Culebra Reach, be-
sides providing a safety basin for retaining slide material in case of
a push from West Culebra slide area. The bnsin is also designed to
minimize the tendency of the material in this area to piish up in the
channel. This project has been given priority over other projects
of lower number for the reason that excavation in this area can
be done in conjunction with periodical clean-up work along the prism
line and at such other times as the dipper dredge regularly assigned
to Gaillard Cut can be spared from routine maintenance work in
the vicinity. During the year the dipper dredges Gainlboa and
Paraiso worked 52 days on this project, removing 182,050 cubic yards,


making the total excavation to date 233,200 cubic yards. At the end
of the fiscal year, this project was about 47 per cent completed.
The following is a brief description of improvement projects Nos.
3, 4, 5, and 6, upon which no work has as yet been accomplished,
but which are scheduled for priority in the order named:
Project No. 3-Gatun Lake; Bas Obispo Reach, Chagrcs Crossing,
and Santa Cruz P. I. Cut-off (west side).-To widen channel at the
entrance to Gaillard Cut and extending northward opposite Gamboa
Bridge, terminating at the south end of Gamboa Reach; starting with
an easement approach curve on the south end at station 1515+00,
joining up with an increased width to the canal channel of 150 feet
at station 1496+00, which additional width extends northward to
station 1461+80, at which point a long approach is provided which
joins up with the original west prism line at station 1439+40 near
beacon No. 28.
This project is considered necessary on account of the narrow and
awkward turn from the lake section into Gaillard Cut at the north
end of Bas Obispo Reach, this point being especially hazardous for
ships to pass one another. The increased width gained through the
Chagres Crossing section is desirable on account of occasional cross
currents set up by freshet discharges from the Chagres River at this
point, a long approach being therefore desirable as a consequence in
order that the entire additional width may be easily accessible, as
well as useful, to navigation at all times.
Project No. 3, tie-up station. or berthing space, Gamboa.-
On March 2, 1928, an extension to improvement project No. 3 was
approved by the governor to provide for a tie-up station or berthing
space at Gamboa. This plan calls for a berthing space 1,800 feet
long by 100 feet wide with a bottom elevation of +40 feet M. S. L.,
2:1 slope paralleling the new proposed prism line of improvement
project No. 3, together with a suitable curve for approach on the
north of 20 14' starting at station 1432+00 and a suitable departure
to the south end terminating at station 1470+00. This project also
calls for nine 13-pile creosoted dolphins, spaced approximately 300
feet apart, to be driven along the new berthing space prism line.
Project No. 4--Catun Lake, Chagres Crossing (east sidc).-To
widen channel opposite Gamboa Bridge, east side, starting at the
south end with an eastment approach curve, station 1483+00, joining
up with a reverse curve 120 feet from and paralleling center line of
Gamboa Bridge at station 1479+00, terminating on the north end
with an easement approach to the project between stations 1469+50
and 1465+ 50, at which point the new prism line runs tangent to the


The ruling width of 120 feet between center line of bridge and pro-
posed new prism line was assumed because that is the present
minimum distance between the center line of tracks at the north and
south approach and the old original prism line at the present time.
The additional width at this point is considered desirable from a
navigation standpoint in order to give a greater maneuvering terri-
tory during the freshet periods of the Chagres River.
Project No. 5--Gaillard Cut, approach to Pedro Miguel Locl-s.-To
widen approach to Pedro Miguel Locks and increase field of vision
along Paraiso and Cucaracha Reaches, including free line of sight
to Cucaracha signal station from west chamber of locks.
(a) Project starts on south end at station 1920+50 and is projected
northward paralleling center approach wall of locks to station
1910+00, at which point an easement approach curve is provided
running tangent to original prism line at station 1904+50, south
tangent. This project removes a point very dangerous to vessels
making the west chamber going south or in straightening up vessels
leaving the west chamber of locks in making Paraiso Reach going
(b) This project also proposes the removal of a ridge on the west
bank to an elevation of +128 feet mean sea level. The accomplish-
ment of project 5 (b) will permit a clear view of Paraiso and Cuca-
racha Reaches as well as Cucaracha signal station from the bridge
of a ship immediately on leaving the west chamber of the locks.
Project No. 6---iraflores Lake-Miraflores Lake channel.-Broad-
ening Miraflores Lake channel from south end of Pedro Miguel Locks
to north end of Miraflores Locks. To widen channel from 500 to 750
feet from station 1957+15 to station 2028+50, with suitable ap-
proaches to the Pedro Miguel and Miraflores Locks wing walls, and
straighten same by running directly from end of approach wall at
Pedro Miguel to end of approach wall at Miraflores. The object
of this project is to do away with the turn in this short reach and
at the same time give additional maneuvering room for ships in
transit lying off approaches to either lock while other ships are being
locked through.
It is planned to commence work on project No. 3 immediately after
completion of project No. 2, and practically the same equipment
and number of men will be required on the former as are now en-
gaged on the Intter. Work on this project will probably start late
in the fiscal year 1929-30 and will require approximately three years
for completion.
Projects Nos. 4 and 5 involve a.considerable quantity of suction-
dredge work, and the time of starting will depend upon availability
of this type of equipment. Some work may be accomplished simul-
taneously with work on project No. 3.

I, I
r .I,





I _


a: r

0 0
I,, I~I





j ' 'j-


0 I~

r -J


2 -



Project No. 6 would ordinarily follow project No. 5, but in view
of a recent recommendation from the marine superintendent that
this project be given priority over other projects, it is possible that
project No. 6 will precede project No. 4 and/or No. 5; however,
inasmuch as necessary equipment can not be released from ordinary
maintenance work before the year 1931, a final decision as to priority
we'll not be made before that time.

Service of excavating equipment during the year was as follows:
Three 15-yard dipper dredges were operated, respectively, 51/2, 9, and
9U, months; one 20-inch pipe line suction dredge was operated 10
months, and during 2% months a relay pump barge was operating in
connection with this dredge; a 24-inch pipe line suction dredge, the
Las Crumces, was placed in service during the last half of the year and
operated 4% months; 1 hydraulic grader was operated 11 months;
2 drill boats, 11 months each; air compressor, 12 months. The fol-
lowing craft were also in commission throughout the year, except as
withdrawn for repairs or overhaul: Two 250-ton floating cranes, 5
large and 2 small tugs, 1 gasoline tug for the ferry across the canal,
and 10 launches.
The most important addition to the dredging equipment made for
a number of years was that of the 24-inch pipe line suction dredge
Las Cmrces, one of the largest and most powerful hydraulic dredges
ever constructed. It is of the Diesel electric type. Four engines,
direct connected to generators, form the main power units, supplying
the electricity for operation of motors driving the main pump and
auxiliaries. The main pump motor is of 2,500 horsepower. The
dredge is capable of pumping through a pipe line over 2 miles in
length and has an excavating capacity of from 500 to 1,000 cubic
yards an hour, depending on the kind of material handled. The hull
is 226 feet long by 50 feet in width and 14 feet in depth and displace-
ment in normal working condition is about 2,500 tons. The agitating
ladder is 90 feet long and capable of digging to a depth of 60 feet.
This dredge was built in Baltimore, left that port on December 15,
1928, in tow of two tugs, arrived at Cristobal on January 11, 1929,
and was placed at work on February 2 in the Pacific entrance. From
April 19 to the end of the year it was supplying fill for Albrook Field.
The vehicular ferry across the canal at the upper end of Pedro
Miguel Locks was operated 365 days during the year, making a total
of 6,242 trips and carrying 40,868 vehicles, as compared with .26,452
vehicles in 1928. By months the number of vehicles transported range


from 1,497 in November to 5,895 in March, with an average of 3,406.
Traffic during the rainy-season months has increased in comparison
'with previous seasons on account of improvement in the roads between
the Canal Zone boundary and Chorrera, Panama, a section which was
very difficult in wet weather.
West Lirio slide.-A slide occurred on August 16, 1928, between
stations 173.S+00 and 1742+00 W. The top of the bank broke back
about 60 feet at elevation 138 feet M. S. L. and material entered the
canal prism a di-tance of 40 feet, resulting in a depth of 36 feet on
the old west prism line. By the end of the imornth the channel east
of the new west prism line had been restored. On the 29th of
November, 19-2S, the rock point between stations 1730+ 50 and 1739+50
W. broke up and pushed across new prism line to the old prism line,
the break line being about 150 feet back from new west prism line
and at elevation 150 feet M. S. L. There was also a settlement dur-
ing November, 1928, between stations 1722+00 and 1726+00 W., and
400 feet back from new prism line. The area between stations
1722+00 and 1726+00 W., continued settling and has shown a general
movement toward canal during remainder of the fiscal year. The
dredges Paraiso and Gamboa worked on West Lirio slide during the
fiscal year, excavating a total of 393,200 cubic yards. The total
excavation to date on West Lirio slide is 2,142,470 cubic yards.
Sou/i1 Cucaracha slide.-On October 18, 1928, a general movement
and settlement occurred between stations 1818+00 and 1823+00 E.,
involving an area of approximately 5 acres. The observation points
in this area moved from 5 to 13 feet toward the canal. During
November, December, January, and June a general surface move-
ment toward the canal continued. The dredge Goinboa removed
44,150 cubic yards from this slide during the fiscal year. The total
excavation to date on South Cucaracha slide is 58,100 cubic yards.
South West La Pita d;ltide.-On Novemter 6, 1928, the high bank
at the south end of the La Pita curve, west side, broke back about
180 feet from the prism line, between stations 1671+00 and 1674+00
W. and fell to the 95-foot berm. A number of larire bowlers lodged
on the berm and were broken up by drilling and blasting in antici-
pation of their entering the channel. The quantity of material
entering the channel was negliirible. There was no further move-
ment of this slide during the year. The total excavation to date on
South West La Pita slide is 1,650 cubic yards.
TWV st Cuilelbra slide.-On November 15, 1928, a movement oc-
curred between stations 1761+00 and 1766+00 W., the bank breaking
back for a distance of 400 feet from the west prism line. The
amount of material entering the canal was small. During the month


of June, 1929, a perceptible movement along the water front oc-
curred between stations 1780+00 and 1794+00 W. A maximum
movement of 16 feet at station 1791+00 and an average movement of
4.3 feet toward the canal was recorded on West Culebra base lines
between above stations. The amount of material entering the canal
was small. The dredge Gam boa removed 2,400 cubic yards of ma-
terial from this slide during the year. The dredges Gamboa and
Paraiso worked in front of this slide at intervals during the fiscal
year on project No. 9, West Culebra Basin.
East barge repair slide.-On June 21, 1929, a slide occurred be-
tween stations 1755+00 and 1760+00 E., involving approximately
250,000 cubic yards of material. The toe of this slide reached a
point 20 feet west of the canal axis at station 1757+50, leaving a
depth of 38 feet, on the center line, while the water edge moved 40
feet into the prism between stations 1757+00 and 1758+00 E. A
channel 40 feet in depth and 150 feet wide was maintained for ship-
ping and at the end of the month the available channel wi., 200
feet wide past this slide. The d redges Paraiso and C(ascadas re-
moved a total of 82,700 cubic yards of material from this slide dur-
ing the month of June, 1929. The total excavation to date on east
charge repair slide is 451,150 cubic yards.
Cacarac1ia Signal Station si'de.-On June 30, 19l29, a bank break
occurred between stations 1819+00 and 12- +50 W., approximately
30,000 cubic yards of rock entering the canal prism and affecting
channel for a distance of 70 feet east of west prism line. Dredge excavated 5,200 cubic yards of material from this slide on
June 30, 1929. There was no other movement of this slide during
the year. The total excavation to date at Cucaracha Signal Station
slide is 129,050 cubic yards.
Several other small breaks occurred at various points in the cut
during the year, but at no time was there any interference with
shipping on account of the slides.
A gas and whistling buoy was established in the fairway off the
Atlantic entrance to the canal. A gas buoy was placed on Coniniis-
sion Rock Shoal, off the Pacific entrance to the canal. The chlarac-
teristics of the South Fraile gas and whistling 1b1oy were changed.
Flamenco Island Light was improved by installing a third-order
lens in a new structure which was painted white for iie as a day-
mark. A fog signal was installed on one of the towers of the
Darien radio station; it consists of a green light of 250 watts, 300
feet above ground, the lighting of which indicates to pilotts the exist-
ence of fog over Gaillard Cut or the narrow waters to the north


of the cut. Material for radiobeacons authorized by the Bureau of
Lighthouses, Department of Commerce, for installation on Ciistobal
Mole and at Cape Mala was received, stored, and delivered to the
sites. Various other aids were installed, adjusted, or maintained.
At the end of the fiscal year the number of aids totaled 522, of
which 121 were lighted by gas, 281 by electricity, and 120 were

The board of local inspectors conducted investigations and sub-
mitted reports on 96 accidents to vessels in transit through the canal
or in its terminal ports. The number of accidents in which the
(stinmlted damages amounted to $1,000 or more w;s- 21, as compared
with 14 in the preceding fiscal year. A classification of the acci-
dents Rhows the following: Collision between ships, 13; grounded in
canal, 3; struck bank of canal, 9; struck lock wnlls, 21; other acci-
dents in locks, 15; incidental to assistance by tugs, 6; docking acci-
dents, 19; miscellaneous, 10.
Following is a brief summary of the more serious accidents, in
chronological order:


July 25,1928

Aug. 14,1928

Sept. 8,1928
Sept. 14,1928
Oct. 5,1928

Oct. 6,1928

Jan. 4,1929
Jan. 17,1929
Jan. 20,1929
Jan. 22,1929
Jan. 23,1929
Feb.- 1,1929
Feb. 8,1929
Feb. 15, 1929
Mar. 14,1929



Cuba Maru ------.. -

Steel Navigator-------
Hadnot ..------------
Pacific Grove---------


I. S. S. Texas.--------
U. S. S. Richmond----
Gig of U. S. S. Whit-
U. S. S. Detroit --...-
Baralt. -----------
Chinese Prince--------
Sun..---....------- --.

Apr. 12,1929 Amsterdam__.-----.---
Mxla. 15,1929 Ballena -----------. 17,1929 i .-1s mppi............
Do---.--- U. S. Cascadas.-------
May 24,1929 Viirlil,...........
June 27,1929 Hlan CitO ............

Nature of accident

Rammed barge in G(.iillhrl Cut
whill' mInanciierinp to break sheer.
I In cinnjng ri iir. l:k caused 'lamqees
to wharf and oil pipe line to ihe
extent of.
Vessel dented plate -------.............
Took up :L'.in't west bank lir-.uigh
failure of port anchor to let go.
In coming to dock came i nr r.l1li1i.rjn
with the wharf structure.
Grounded in Gatun Lake through
failure of port engine to operate in
accordance with signals received
from the '. iil.e.
Touched east bank as the result of
pi..'r nianeiln1e;inie when heavily
li.-ll \ it I elni-ne stopped.
Proleller 1.rnlen \ihicn struck by
i i l a h irT'e in ow Iof lug.
D.irla:prdl lliier .l-. il n- on port side
by iir.uthing n ine \ ill of lock.
Heni propeller by touching knuckle
of lock wing wall.
Sunk; collrilel with Panama Canal
Starboard forward prop eller t. uclihe
center lock wall.
Took sheer in cut; hit bank. -------
Panama Canal fuel oil line burst
Ful led fender chain when leaving
Struck lock nppr.icli wall---..----
In collision wifh srteimship George
W. Barnes.
Struck concrete wall of lock ------
Clililedl with Ashby at dock-------
Collided with Pn:in]i C.ini:l 'lredge
Cascadas, due to faulty pil..lige.
Rammed by Mississippi.---------
Took sheer and struck bank of canal-
Collided with center wall of locks..-.



2, 700


2, 500

7, 000



IPanama Canal.


Do. iiii.' Canal.
Panama Canal.
Piniriia Canal.
Pa'.1 -l n ia Canal.
Panama Canal.


No investigation was made of the grounding of the steanmship
President Adams on a reef outside of the wvc-t breakwater at Cristo-
bal in the early morning of January 11, 1,921L, for the reason that the
master of the vessel advised the canal authorities that the Punama
Canal was in no way responsible for the accident.
Continuaiince of the policy of requiring overdraft v to-.-lc to have
the aist tance of a tug during transit nec'rssitiated furnishing this
service to 130 vessels during the year. Such overdraft vessels ( onsi-t
almost entirely of ore carriers arriving from the wxa-..t coast of South
America and tankers, mostly from the west coast of the United
States; only one overdraft, vessel in transit from the Atlantic to the
Pacific required tug assistance during the year. In a few instances
among the 135 vessels from Pacific to Atlantic the an-sintainic of tug
was nece-sitated by poor maneuvering qualities rather than over-
Commercial salvage companies have been operating in the areas
adjacent to the cnal since li-02, and upon the establishment of this
arranguemnent the Panama Canal adopted a policy of not undertaking
salvage operations in other than canal waters except where lives are
endangere'1l or great emergency exists. The only salvage operation
undertaken during the fiscal year 1929 was the fl';linj of the steam-
ship PresidTnt AdTam.l of the Dollar Eine, which went ashore off
Toro Point on January 11. The Panama Canal salvnr: tug Fiioritei'
brought the ship to dock at Cristobal in the miorningl of Janiur111 12.
On the night of June 14 the Fiecor-ite pro-ceeded to sea under
orders to bring in the steaunship Wank/, ashore in the San Bias
region of Panama; this ship. however, freed it elf and canmr to Cris-
tobal without assi-tance. The canal tug TriinrifJad made a trip of
391", hours to sea in assistance to the Army transport Can filrt in
November, and on December 6 towed the disabled >teanmship Lena
Luckcenbcach into Balboa.
The rules and regulations for the navigation of the Panama Ca;nal
and adjacent waters effective January 1, 1926, issued under Execu-
tive order of September 25, 1925, were supplemented or anenilcil
during the year by five supplements referring to the following sub-
jects: Vessels carrying volatile crude oil products; fre-h water in
Gatun Lake; loaded oil tankers passing through Gaillard Cut lduIring
darkness; undesirable persons; and the loand and trim of ves els
navigating the canal.


A detailed statement of the expenses (including depreciation),
revenues, and profit or loss on the various subsidiary business opera-
tions conducted by the Panama Canal will be found in Table No. 23,
Section V, of this report. The total net profit on these operations was
$737,850.26, as compared with $736,719.43 in the preceding year and
$876,536.80 in the fiscal year 1927.
The 1 business operations of the Panama Railroad Co. on the Isth-
mus yielded an additional profit of $1,693,873.17. In 1928 this reve-
nue was $1,600,283.61,1 and in 1927 it was $1,644,189.37. Details per-
taining to the major business units of both the Panama Canal and the
Panama Railroad are discussed briefly in the following paragraphs:
During the past fiscal year the volume of work handled was ap-
proximately the same as in the preceding year. At both the Cristo-
bal and the Balboa mechanical plants there has been a considerable
force variation from month to month. At the end of the year 1,447
men were employed, approximately 10 per cent more men than were
engaged at the end of the preceding year; but due to constructive
planning in advance and the cooperation of other departments and
divisions this volume of work was at all times well balanced. The
heaviest item of work undertaken during the year was in connection
with the overhaul of the Pacific locks. Approximately a year in
advance, the mechanical division was given a great quantity of spare
parts to nman ufacture for the locks' overhaul, and about six months
in ad vance, the locks division.arranged to borrow from the shops the
lnecesary mechanic s to do the overhaul work. On the day scheduled
in advance by the locks division this force was transferred to form
an already organlized, locally experienced force for the overhaul.
Normally there would have been no work for these men upon com-
pletion of the overhaul, but the authorities of the Navy then co-
operated and advanced their program of heavy submarine repairs
sufficiently so that work was provided to bridge the gap, and no
reduction in personnel became necessary. The end of the fiscal year
1 The 1928 annual report showed the figure $1,659,750.53. Of this amount, however,
$.9,460.92 was set aside as the 1-tlhiin41i employees' proportion of Panama Railroad
Co.'s contribution to pension, fund.


finds assured work ahead for the full force for about six months,
with promising outlook beyond. The volume in sight is about the
same as on the corresponding date last year, but a greater proportion
this year is marine repair work.
The value and class of work done, and the source of the same, for
1929, as compared with the two preceding years, are shown in the
following table:

1927 1928 1929

Marine .------------------------------------- $1,619,815.30 $2,320,712.23 $1,768,321.50
Railrna...----------------................... -------------------------- 612,276.46 534,711.38 620,390.50
Sundries.---------- ----------- ---------------- 476, 821.34 420,665. 14 3'7, 7T\. WU
Stock materials--------------------------------------- 358,814.90 263,596.27 484, 44..51

Total--------.----- -------------------
Individuals and companies I.-----------------------------
The Panama Canal ------------------ ----------------
The Panama lTailroad Co--------------.---------
Other departments of United States Government --------

3,067,728. 00 3,539, 685.02 3,260,740.50

764,619.46 814,249.09 810, 335.67
1,324,896. 56 1,774, 184. 85 1, 350, 375. 87
671,940. 06 603,832.40 668,010.21
306, 271 92 347, 418.68 432,018.75

Total --------------------------------------- 3,067,728.00 3,539,685.02 3,260,740.50

1 Inliurles Panama Railroad steamship line.


A total of 198 vessels were dry-docked during the year, 116 at
Balboa and 82 at Cristobal. A classification of these vessels follows.

Balboa Cristobal Total

Panama Canal equipment------------------------------------------ 35 7 42
U. S. Navy vessels ------------------------------------------------ 14 10 24
U. S. Army vessels -------------- ---------------------------------- 6 2 8
Other United States Government vessels------------------------------ 1 1 2
Panama Railroad vessels---.--------------------------------------------------- -------
Commercial line vessels-------------------------------------------- 60 62 122
Total----------------------------------------------------- 116 82 198

The average tonnage of commercial vessels docked at Balboa was
3,072 and at Cristobal 648. The days in which there were no vessels
in dry dock at Cristobal numbered 33, at Balboa 7.
In the annual report for 1928 it was stated that revised plans had
been prepared for extending the Cristobal Dry Dock to a usable
length of 475 feet, with a clear opening of 65 feet at the entrance
and a depth of 30 feet over the sill. No appropriation to cover this
work has yet been asked for, inansmuch as it is thought advisable
to make further studies of the entire subject of dry docks and marine
railways required at both ends of the canal before attempting to
undertake any alterations of existing facilities.
The United States Navy submarines stationed at the Coco Solo
submarine base were dry-docked and overhauled, and Navy ships


of the Special Service Squadron and various ships of the United
States fleet present in these waters during the last fleet concentration
were givin running repairs. In addition, two cruisers and four sub-
marines of the Peruvian Navy were dry-docked and overhauled.
Various repairs were made during the year to United States Army
tugs, mine planters, launches, etc.
A total of 17 oil tankers from various companies operating on
Lake Ma racaibo, Venezuela, came during the year to the Balboa
shops for their annual repairs, and this class of business was as heavy
as during the preceding year, with applications on hand at the close
of the fiscal year for the dry-docking of five more of this type of
vessel during the month of July.
The dry dock at Balboa, with its length of 1,000 feet, is the only
one south of the United States sufficiently large to dock some of
the larger vessels. Its use must, therefore, be regarded in the light
of a utility of importance to shipping generally, and rather than to
deprive shipping of the use of this dock for possible emergencies it
is a matter of policy to perform only temporary repairs to vessels
which, if thorough repairs were undertaken, would occupy the.dry
dock for an extended length of time. The U. S. Army transport
Cambrai, for instance, after grounding near Corinto, Nicaragua,
was plankedU in this dry dock for temporary repairs to enable her to
proceed to New York for permanent repairs. The Army authorities
inquired as to the ability of the mechanical forces of the Panama
Canal to undertake permanent repairs, but were informed that with-
out two dry docks it wias inadvisable for the Panama Canal to
undertake, other than temporary repairs, inasmuch as a survey of
the ship's bottom indicated that about 35 days would be required
for a thorough repair job. In this connection unconfirmed report
is that the amount paid for repairs to this vessel in New York in
the dead of winter was $333,000. The estimate at the canal for
repihs, considered liberal, was $175,000. If additional dry-docking
facilities had been available at the canal, there might accordingly
have been a considerable saving to the Army on permanent repairs
in addition to the $17,000 expended for temporary repairs necessary
for the continuance of the voyage. On other occasions it has been
neces-sairy to consider the length of time during which the dry dock
might be tied up, but there has been, of course, no refusal to allow
the use of the dock for whatever time might be necessary to assure
the safety of the ship before its proceeding.
The steanm-hijp /i.s.s;.4;1,1'; was ;ndamagedil so badly in collision with
the dredge Cascviais tlint it w-;s ncce-anry to dry-dock her and renew
14 shell plaitr--, together with supporting frames and longitudinals.
This work was comipletuil in seven dry-docking days. Considering
the abl'ence of a labor market in the Canal Zone, this compares very


favorably with the repair of the steamship Crivtobal-Colon, requir-
ing renewal of 13 plates, recently accomplished in five dry-docking
days in New York City, which was advertised in shipping journals
as an unusually speedy repair.
Three Ellis Channel barges of 200 tons dead-weight gross capac-
ity were erected at the Balboa shops for fruit interests. A 60-foot
Diesel-engined tender was commenced for the dredging division and
remodeling work was done on three barges, one of which was com-
pleted during the year. In addition, routine overhauls and repairs;
were made on floating equipment belonging to the marine division,
and three launches were constructed; for the municipal division a
specially designed flat-bottomed motor boat for use on the rapids
of the Chagres River was constructed, together with one hull of 19
feet and one V-bottom work boat of 20 feet for the yacht, Illyhra.
A large quantity of spare parts, to be used for locks' overhaul,
was made during the first half of the fiscal year, this being a con-
tinuation of work undertaken during the fiscal year 1928. The
largest item of this work consi-ted of 59 cylindrical valves, which
were used to replace worn-out valves which had been in service at
the locks since the completion of the canal. During the period of
the locks, overhaul much incidental work was performed, including
the reconditioning of parts and the manufacture of apparatus for
use in removing and replacing lock gates. The niantufactiure of
four new towing locomotives was begun.
In anticipation of the arrival of the new Diesel electric dredge-
Las Ciuces her discharge pipe was manufactured, and there were
also made 70 lengths of pontoon pipe 24 inches by 40 feet, 327 lengths
of shore pipe 24 inches by 16 feet, and 120 pontoons for rafting the
pontoon pipe, together with a variety of special dredge pipe con-
itections. In addition, a quantity of 20-inch dredge pipe was manu-
factured. Four submarine salvage pontoons were undertaken for
the Navy and to a large part completed before the close of the fiscal
year. Welding was used, instead of riveting, on the dredge-pipe
work and pontoons.
Work was begun for the Panama Railroad on the conversion of two,
additional locomotives from saturated to superheated steam, and two.
locomotive boilers were rebuilt. One of the four additional passenger
cars begun in 1928 was completed and another brought to the point
of erecting the framing. The work of rebuilding the refrigerator
cars on cut-down steel flat-car frames continued; and all cars of the
Panama Railroad not already so equipped are being fitted, as oppor-
tunity offers, with inside-hung brake beams.


The equipment and buildings at the Balboa and Cristobal shops
have been maintained in satisfactory condition. The actual amount
spent for repairs and maintenance thereof during the year was
$97,172.17, compared with $94,283.07 expended during the previous
year. The amount in reserve for repairs at the end of the fiscal
year 1929 was $6,912.51 greater than at the beginning of the year.
A new corrugated asbestos roof was installed on the instrumnent-
repair shop at Balboa, and the skylight fitted on this building at the
same time is of a type new to the Isthmus; the supporting members
are protected from corrosion by an extruded lead covering and the
flashing is of sheet lead. The lead-clad skylight was acquired partly
for trial and partly on account of the acids and chemicals in the
plating room underneath. A small installation for chromium plat-
ing was placed in the plating room and chromium plating is now
being successfully done in a small way.
At Cristobal the new boiler shop was completed during the year.
The shop is in full use, but the installation of new tools and modern-
izing of old tools retained is not yet wholly complete. The steel-
work for the new machine shop was fabricated and erected; other
material for the shop was placed on order, and roofing was begun by
the end of the fiscal year. Columns for the combined sheet metal,
pipe, and forge shop have been fabricated, also some of the other
steel framework, and roofing and other material and equipment are
on order. The building will be erected during the next dry season.
Plans are being developed for the air-compressor house, looking
toward the building of one-half of the ultimate structure; and at any
lime later the remaining portion could be constructed to house the
proposed dry-dock pumping plant. The main needs for the fiscal
year 1930 are incident to rebuilding the shops at Cristobal and
modernizing their equipment. Some of the lathes in use date back
to 1906 and 1908.
Improvements made and additions to the equipment during the
fiscal year 1929 included an electric arc brass melting furnace, of the
oscillating barrel type, the substitution of steel shot for crushed
quartz as a cleansing agent in the sand-blasing of castings, which
proved both economical and highly satisfnctory, the extension of use
of electric rivet, heaters, the installation at Balboa of a large bevel
rotary shear for cutting circula;r plate and irregular contours and
fitted with 12-foot jogrling rolls, and the purchase and installation
at Cristbihal of an additional 18-foot joggling roll. These rolls are
used to take the heaviest ship plating, the lihets being rolled up in
coip.let.e circles and removed endlwise. Use was made of this ma-
chine in manufacturing the considerable amount of dredge pipe work

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turned out during the year. A new automatically operated air com-
pressor has been installed in the railroad yard at Panama for air-
brake testing and the air line from the Balboa shops to that point
was abandoned. It had corroded until it was no longer serviceable.
In addition, an aftercooler has been installed just outside the air
plant, at Balboa to remove moisture from the compressed air.
In the annual report for the fiscal year 1928 reference was made
to the proposed acquisition of a new oil-burning 40-ton crane for ves-
sel repairs at Balboa and a new 30-ton locomotive crane for Cristo-
hal. Bids received from the United States indicated so great a rise, in
cost of such equipment as to discourage their purcll;as'. In conse-
quence, cranes Nos. 71 and 72, which had been in czinal service for
years, were rebuilt, and one new crane of compromise type of 40-ton
lifting capacity, and of chlleaper price was purchased as a ,taniidby for
crane No. 72, instead of a full duplicate, of that crane to super-eilde it.
I'lThe full duplicate would have cost $29,000. The compromi-se -crne
cost $20,000, and rebuilding No. 72 cost $12,000, so virtually two cranes
were secured by the process at the cost of one. Rebuilding cra ne No.
71 cost $11.000. It is of interest to note that when bids were received
for locomotive cranes to duplicate cranes Nos. 71 and 72 it was found
that present-day prices for the same article are 250 per cent of the
prices prevailing before the World War. Nearly the same ratio pre-
vails for high-grade imnchiine tools (240 per cent to be exact), although
it does not necessarily prevail for lower-grade tools such as those
which run to weight rather than precision. However, nearly all of
the purchases for the shops are of the character that encounters the
high ratio. For this reason, it is found good economy to spend heavy
sums rebuilding tools which several years ago would have been re-
placed instead.
The mechanical division earned net revenues of $49,219.86 during
the year, after providing funds sufficient to increase the reserve for
renewals and repairs to machinery, equipment, and buildings to
$360,969.27, in which is included $191.236.88 for improvements to
the Cristobal shops. Local reserves as of June 30, 1929, for replace-
ments of machinery and equipment, Cristobal Dry Dock. repairs to
equipment and buildings, depreciation, reroofing Balboa, shops, im-
provements to Cristobal shops, and gratuity for employees' leave
totaled $628.381.60, as compared with $774,071.39 for the same items
at the end of the fiscal year 1928.
The sales of coal from the plants at Cristobal anl I;alboa totaled
305,434 tons during the year, as compared with 340,774 tons during
the year 192.8 and 372,641 tons during 1927. In continuation of


the policy of filling Navy coal requirements from the dry-coal stock
of the Panamna Railroad on the Isthmus, 20,000 tons were transferred
to the Navy during the year at the cost in pile to the railroad. Of
the 305,434 tons sold during the year, 280,427 tons were sold to 935
commercial vessels other than Panama Railroad, as against 299,861
tons sold to 964 commercial vessels during the year preceding. The
selling price of coal to commercial vessels was stabilized at $8 per
ton at Cristobal and $11 per ton at Balboa during the last part of
the preceding fiscal year and was continued without change through-
out 10f).
The total receipts from the sale of coal and charges for extra
handling during the year amounted to $2,491,784.77. The cost of
sales, including operating expenses, amounted to $2.233,768.07, leav-
ing a net profit of $258,016.70, as compared with $405.312.96 last
year, a decrease of $147,296.26 for the year.
Deliveries of coal from the United States continued to be made
by vessels of the Ore Steamship Corporation, en route to Chile for
iron ore, under the contract running five years from January 1,
1927, and 31 cargoes of coal wetre unloaded from the corporation's
vessels during the past year.
Coal 1Aind7;1, i r ,cori1..-The I rge(st cnrgo of 1.-'al ever to arrive
at a port of the canal, and a coal unloadiinig record by the coaling
plant, were jointly e-t;bli-lied with the arrival at Cristobal from
Norfolk on May 8, 1929, of the steaiiwsliip Chilo, c, of the above-
mentioned line, bearing 20,010; tons of coal, which is believed to be
the Inrge4t cargo of coal ever shipped. In handling the coal from
the Clil.'re the Cristobal coaling plant discharged this cargo in 22:
hours 45 minute>, a record in handling coal from this particular ves-
sel. The fastest rate of dischanrge yet attained from any vessel, how-
ever, was on January 8, 1929, when 8,586 tons of coal were unloaded
there in 8 hours 50 minutes from the steamship Bt-tihoi e.
Panama Railroad collicr*..-The colliers Achilles and UI7ls'es,
used for coaling needs of the Panania Railrolad and the Panama
Canal prior to the beIginning of the contract with the Ore Steamship.
Corporation, were withdrawn from that service in 1927 and various
nei'otiation 4 were entered into for placing them under charter in
other trades. Three colliers were offevrel for sale during the year,.
no arrangements for their charter having been feasible, but at the
close of the fiscal year they were undisposed of and renilin moored
in Gat tin Lake.
Grn'eral oa -oment.-The handling of mineral oil products resulted
in net profits of $163,194.86 after deduction of operating expenses;
and fixed capital charges.


All deliveries to and from tanks, for private companies as well as
for the Panama Canal and the United States Navy, continued to be
handled during the year through the pipe lines and pumping plants
of the Panama Canal at Balboa and Mount. Hope (Cristobal). There
was no tank construction at the Balboa oil tank farm during the
year. Installations were made, however, of 4,120 feet of 12-inch pipe
line from Dock 7 to Dock 15, with lateral lines on Docks 15 and 16,
and 3,720 feet of 10-inch pipe line was run from building 9 to Dock
18 and cross connected to a 12-inch line at Dock 16. At Mount Hope
the West India Oil Co. eredts 1 a 10,000-barrel steel gasoline storage
tank and installed 5,037 feet of 6-inch line from tblis tank to Dock 13.
At the. close, of the year the total storage capacity on the Isthmus for
gasoline was 3,562,000 gallons; and for fuel and Diesel oil the storage
capacity remained as reported last year, that is, 2,361,040 barrel';-
1,246,540 barrels at Balboa andl 1,114,500 barrels at Mount Hope.
Plans were begun for the const ruction, during the. fiscal year 19030, of
a new oil crib at Cristobal. which is urgently needed to improve oil-
inoi facilities at that terminal. A similar improvement is required
at Balboa and study was begun to determine whether Dock 4 at
Balboa can be iwed for oil handling; if it can not be used it will be
necessary to construct a new crib. These improvements are to be
made from funds accumulated for repair and extensions of the oil
Fuel oil.-The volume of fuel oil handled, including receipts,
issues, and miscellaneous transfers, is shown by the following

Balboa o Total

Barrels Barrels Barrels
Received by iho Panama Canal...................----------... --.. -- 134.463 -------- ---- 134.463
Used by the Pn i anal.---------...........-------...-....-.....--------..--------. 222,993 Si. 754 31:-, 747
Pumped for iiiidua nnl comni-------.........................----------------.... 5,630,137 6,733,923 12,364,060
Sold by the Panmi Cal--------------......................--------...---....---....----......1 8,910 9, 847 1. 757
Miscellaneous ir.arsfers.......------------------------..............---.-----..----.----- 60,627 65, 056 125,683
Total------.-.------------------------------------ 6,057, 130 6, 894, 580 12,951, 710

The number of ships handled in connection with receipts and issues
of fuel oils totaled 2,447, of which 89 were Panama Canal craft.
Diesel oil.-Sales of Diesel oil to vessels by the Panama Canal
totaled 7,001 barrels, and sales made by the various private comI)palnies
aggregated 1,006.387 barrels.
Gasoline.-During the fiscal year 2,225,588 gallons of gasoline were
received for bulk storage; of this, 753,360 gallons were stored in
tanks at Mount Hope and 1,472,228 were stored in tanks at Balboa.
Bulk gasoline was not sold to vessels during the year.


Kerosene.-Kerosene shipments received in bulk aggregated 538,-
839 gallons; of this amount, 186,623 gallons were stored at Mount
Hope and 352,216 gallons at Balboa.
The operation of the storehouses was continued under the same
policy as during the preceding fiscal year. Storehouse forces were
maintained at the minimum required for efficient operations, and
inventory values were held down to the lowest possible figure. The
value of stock on hand at all storehouses at the end of the year, ex-
clusive of scrap and obsolete materials, was $4,715,916.09, and in
the hands of canal and business divisions $201,031.77, or a total value
of $4,916,947.86 (as shown in Table No. 8-a, Section V). Unusual
construction activities were responsible for reducing gravel storage
from material valued at $157,652 at the end of the fiscal year 1928 to
$T 3,50 on June 30, 1929, and the quantity of building materials
handled was in excess of ordinary requirements. The total value of
all materials received on requisition from the United States during
the year was $5,016,359.36; of that amount $4,095,225.60 worth was
placed in storehouses for withdrawal as needed and $921,133.76 worth
was delivered direct to divisions. Local purchlaes we're. made to the
value of $7T22,505.49. Scrap and obsolete stocks reining on hand
at the end of the year were valued at $80,474.05; and during the year
5,910 net tons of American scrap iron were sold and delivered, of
which 1231/ net tons were sold in the local market.
The general storehouse at Balboa (including the medical store-
hoiM-), and the branch storehouses at Paraiso and Cristobal handled
a total of 177,230 requisitions and foremen's orders during the year.
The value of all issues for the year was $5,455,812.23. Material and
supplies sold to steamships, employees, and others aggregated $1,064,-
741.20 and involved 89,438 separate sales.
One iadiiiini.-trative change of importance was made at the end of
the fiscal year and taking effect July 1, 1929, when the purchase and
sales bureau of the chief quartermaster's office was abolished. The
functions of this bureau were consolidated with the office of the
general storekeeper. This arrangement will show for the fiscal year
1930 a reduction of clerical expense, and the work can be handled
more expedlitiously.
As heretofore, the principal puri.haese of supplies have been made
by the Washington office. Branch offices in charge of assistant pur-
chasing agents were continued at New York, New Orleans, and San
Francisco, and the personnel at these offices also acted as receiving


and forwarding agents for materials forwarded to the Isthmus from
their respective ports.
The large majority of purchases are made for delivery on the
Isthmus, in accordance with the long-establi-shed policy of permitting
competition for the canal's requirements on even terms in all sec-
tions of the country. Inspection of materials has been continued,
as heretofore, by a corps of inspectors in the field, a-sisted as
occasion requires by officials of technical branches of the Govern-
ment. The number of orders placed, 7,489, was less by 275, or 3.5
per cent, than in the fiscal year 1928. The total value of orders
placed during the year was $5,010,001.04, as compared with $4,769,-
8093.30 during the fiscal year 19S, an increase of $240,107.74 in value.
Included in this total were requisitions for medical and hospital
supplies handled, as in the past, by the Washington office through
the medical section, New York general intermediate depot, United
States Army, Brooklyn. The grand total for the purchase of ma-
terials and supplies by orders placed in the United States by and
under the direction of the Washington office since 1904 aggregates
$204,240,079.65. The force of the purchasing organization in the
United States was not increas.--ed during the year and at times was
taxed to capacity to take care of the volume of work, with con-
siderable overtime required.
In the assistant auditor's office 12,743 claims were handled and
correspondence was conducted relative thereto, including 117 which
remained over from th.n prec.eding year. This indicates an increase
over 102S of 231 claims received, while there were examined and
passed for payment 219 more claims than during the preceding year.
During the year 11,480 disbursement vouchers, amounting to $5,-
420,925.61, were prepared, representing a decrease of 144 vouchers
and of $1,170,321.12 in disbursements as compared with 1o2S and
collections totaling $303.140.24 were made on 552 accounts, this being
140 more collections and $101,874.30 more in proceeds therefrom
than for 1928.
During the year 71 contracts were prepared(, amounting to $2,-
315,939.67, being 3 more contracts than for 1928 and an increase
of $279,986.83 in amount.
The sale of surplus ;ian;al material by the purchasing department in
Washington during the fiscal year 1929 amounted to $102.556.84,
based on 13 sale orders, as compared with $16,418.18 during the
preceding year, based on 4 sale orders.
In representing the Panama Canal in the United States, the Wash-
ington office handled extensive correspondence and maintained repre-
sentation on various Government boards and' coordinating com-
mittees, in addition to contacts with other governmental departments
and business interests with reference to canal activities.



Native hardwood lumber operations were continued as during the
preceding year, and 99,939 board feet of logs were purchased as com-
pared with 225,051 board feet during 1928. In addition, 284 hard-
wood railroad crossties were purchased from local contractors, as
compared with 2,587 during the preceding year.


The total revenue from harbor terminal operations during the
fiscal year amounted to $1,859,551.58; the operating expenses were
$1.454,758.42, leaving a net revenue of $404,793.16, as compared with
$331,686.64 last year, an increase of $73,106.52 for the year. There
were 1,936,270 tons of cargo stevedored and transferred this year, as
compared with 1,666,903 in 1928, an increase of 269,367 tons for the
year; 3,516 cargo ships and 1,053 banana schooners were handled, and
agency service was furnished to 277 commercial vessels. At the close
of the year an additional reserve of $50,000 was set up to cover future
extraordinary repairs and dredging.
A comparison of cargo tonnage handled, gross and net revenue
from terminal activities, etc., for the past three years is given in the
tabulation below:

1927 1928 1929

Tons of cargo stevedored------------------------------- 305, 506 330, 392 376, 959
Revenue per ton stevedored ---------------------------- $0.3888 $0. 3775 $0.3070
Cost per ton stevedored-------------------------------- $0. 2248 $0. 2623 $0.2028
Tons of cargo handled and transferred------------------ 1, 150, 807 1,336,511 1,559,311
Revenue per ton handled......-------------------.. ------------ $0.9580 $0.9316 $0.8608
Cost per ton handled --------------------------------- $0.7894 $0.7801 $0.7618
Gross i Ier aI iir revenue.------------------------------- $1,423, 357.77 $1,603, 266. 98 $1,859,551.58
Gross operating expense---------------------------$1, 147, 809,90 $1,271, 580. 34 $1,454, 758.42
Net revenue-------------------------------------- $275, 547. 87 $331, 686. 64 $404, 793.16
Per cent of expense to gross revenue-----.--------------- 80.64 79.31 78. 23

The distribution of blu iincss between the Cristobal and Balboa
terminals is indicated below:

Cristobal Balboa

Numbihcr of vessels discharging or taking on cargo-------..-.------------------------ 2,188 1,328
Tons of cargo received. --------------------------------....... ------------------- 795,663 105,726
Tins of cargo dispatched.--.---------.----------------------------------------- 590,137 27,478
Tons of cargo rehandled -- ___------ --........-..... --.. .---- -------. 20,860 19,449
Ton% of cargo stevedored by Panama It. R-----------...... ------------------------ 308,951 68,008


The operations of the coimuissary division were continued along
the same lines as in previous years, and the general organization
remained the same. A new concrete warehouse, checking-in shed,
and general manager's office were completed during the year at
Mount Hope. This project included the installation of a new bakery,


a new coffee-roasting plant, and a packing department. These have
been in operation for some time now and have proved very successful.
In general it is the policy to pur-hlase all food supplies in the
United States, if at all practicable, and of the total purchases made
,only a small percentage goes to foreign producers. A careful analy-
sis was made of all articles custoumnrily purchased in foreign markets
with a view of determining if any such items could be obtained in
the United States. The result of the study indicated, however, that
so far as practicable all articles that could be supplied in the United
States were being purchased there. On account of the distant loca-
tion of the Canal Zone from the United States, the peculiar local
conditions, and the fact that about 75 per cent of the employees on
the canal are West Indians, it is necessary for the commissaries to
stock certain items of foreign production for which these people
express a definite preference. Several foreign commodities of widely
advertised brands are also specifically demanded by foreign vcs.sels
usincr the canal.
Most of the beef is punr-hnscd locally from cattle raisers in Panama
who depend on the sale of their stock to the canal, as has been done
for a number of years. Supplemental supplies of beef were pur-
chased from Argentina and New Zealand. Beef obtained from these
sources is sold at much lower prices than those prevailing in the
United States. It would be practically impossible to import, beef
from the United States and sell it here at the prices which would
necessarily have to be charged.
Every effort was made to restrict sales in the commis:.aries to indi-
viduals or organizations regularly entitled to buy in the stores. A
special circular notice on this subject was issued by the governor
under date of May 15, 1929, copies of which were distributed to all
employees of the Panamann Canal and Panama Railroad, given to the
press, and posted conspicuously. All infractions discovered during
the year were of a relatively minor nature, and were promptly cor-
rected, the guilty per.-ins being cautioned or punished as found
advisable. Total coinnin'-iary sales and services during the ve;ar
amounted to $10,479,.)71.21, as compared with $9,671,497.69 luring
the preceding year, an increase of $808,073.52, and representing an
increase of $1.338.ts:M.8 olibove the fiscal year 1927. Sales to ve-sels
amounted to $1,70:,980.72, as compared with $1,429.647.3.5 during
the preceding ycar, an increase of $274,339.37. Of the aggregate sales
to vessels, $.)I41.344.18, or approximately 32 per i ent, represents pur-
chases by vessels of the United States Navy.
The gross receipts from the sale of commissary supplies during the
year were $808,073.52 in excess of sales during the preceding year


and the net profits were $550,201.96 as compared with $455,721.25
during the preceding year, or an increase in net profits of $94,480.71.

The distribution of sales as compared with the two preceding years

was as follows:

United States (G-vernmernt. Army and Navy.--.-.---
The Panama Canal -------------.--------------------
Commerei-.1 Stu.imnships...
Panama R.iilri ii ,.-'i-rnihip ................
Individuals and companies.. ---------------------------
Employees ---------------------------------------------
Gross sales--------------------------------------
Less dlai-oLUrnt, credits, etc ----------------------------
Revenue from sales-------------------------------

Supplies for expense and equipment:
Retail commissaries and warehouse-----------------
Plants.-.------- --------------.---------
Total.---------------- ----.---------.

Loss by condemnation, pilferage, shrinking, clerical
errors, etc.- --------------------------------------.
Grand total-------------------------------------

697,522. 98
794,689. 06

681,812. 45
5,857, 279. 24

$1, 515,100.29
852, 548. 25
1, 134,886.75
713,041. 23
6, 431, 718.85

9, 527, 739. 23 10,090,387. 54 10,934, 685. 54
399, 159. 13 408, 146. 76 455, 114.33
9, 128, 580. 10 9, 682, 240. 78 10,479, 571. 21

47,017. 90 45, 170. 25 43,467.34
1,089. 78 1, 257. 79 1, 669. 27
20,571. 66 20,387.43 33, 515.51

68,679.34 66,815.47 78,652. 12

207, 196. 15 207, 120. 76 188,043. 15

9,404,455. 59


10,746, 266.48


Purchases during the year aggregated $8,004,007.87, an increase

of $702,596.71 as compared with the preceding year. Supplies to

the value of $1,720,112.17 were on hand at the close of the year.

The following tabulation shows the value of the various items pur-

chased as compared with the preceding years:

$1, 672, 887. 79
565, 982. 22
1, 174,818.42
32N. 489. 83
1,47.0.016. 76
3's, 654. 36
4 1., S.2. 08
I '', "'3. 55
230, 689. 73
321, 082. 08
1?:. 821. 11
.i, 585. 22
224, 234. 33

Groceries---.------ ----.. -------.-------
Candies ---.---.--------...- -.............--.--...----.
Dry goods--.. ................-------- ......-.......--..
Shoes-..-..-. ..- -------------------------
Cold storage ------------------------.-----.
Cattle and hogs--.---------------------------.----.
Milk and cream.------------.----..-------...--------___
Eggs --....---.--------.--.- -- ---------
Butter ------.-.- -------.-...------.....
Raw material-.-..-.-..--....-..-.....-....--.......-..
Toys-..... ...................................
Dressed beef ------------..................................
Total -----------------...- ---------...
United States.-- -- ------------------ -----------
Eurupe and Orient-------.-.-----------.-.----------
Central and South America..---..---.....-..-..........
Cattle industry..--..--..- ..- ---......-....---......- ..-
Panama Canal............ .....----.............---

Total-----------... ----------.....-----------------. 7,356,407.48

1 C. ndit-s included in groceries prior to Jan. 1, 1929.


$1, 618,591. 99
1,140,098. 53
290,738. 75
1,603,080. 53
a-'.. 128. 68
l'.1, 035. 06
36,415. 29
152,049. 84


$1,688,256. 48
494, 128.65
1, 262,837. 68
359, 760. 31
1, 733, 549. 20
538,486. 59
254, 327. 01
303, 233. 36
521, 515. 42
34, 125. 36

7, 356, 407. 48 7,301,400.96 8, 004, 007.67

5, 313. 970. 34 5, 2' 402. 25 5, 613,245.70
1, 11 i, 279. 83 947,319.00 1,109,002.78
-''., 702.01 323,911.19 .7Is, 743. 13
440, 150. 12 468, 524. 32 620,837.40
112, 612. 75 90.890. 65 108,445. 59
183,692.43 1 %7,353. 55 173,733.07

7, 301, 400. 96


NOTE.- Purchases for 1928 were reported in the 1928 annual report as $9,334,407.43, as the result of having
used retail instead of cost figures.


The output. of the various manufacturing plants and laundry had
a total value of $2,296,999.29, as compared with $1,959,914.60 in the
preceding year, an increase of $337,084.69. The principal products
of the major plants and their value are sunumnarized as follows:
Bakery.-The output of the leading items baked included 4,663,-
732 loaves of bread, 2,082,324 rolls, and 222,936 pounds of soda
crackers, with cakes, pies, and doughnuts; the total value was
Coffee-roa.ftin plant.-Amn ing the products handled were 234,210
pounds of coffee, corn meal, peanuts, and almonds, with a combined
value of $110,460.06
Ice-cream and milk-bottling plant.-The principal output con-
sisted of 45,856 gallons of ice cream, 453,606 quarts of milk, 17,703
quarts of cream, and 327,072 Eskimo pies, with a combined value of
Ice plant.-Ice manufactured totaled 35,414 tons, valued at
Sausage factory and pickling department.-An aggregate of
1.209.371 pounds of meat products was turned out, valued at
I,idustr-ial alboratory.-Products manu fact ured totaled $234,018.93
in value.
ABlmt/inrf'.-The abattbir turned out 4,155,872 pounds of dressed
beef. with a total value of $.147,124.29. By-products, consisting of
hide-, horns, tankage, etc., to the value of $81,032.65, were shipped
to the United States.
Laundry.-The number of pieces of laundry handled was 6,637,026,
and receipts aggregated $250,416.62.
The restaurants and silver messes continued to be operated under
contract during the year, except in construction camps, etc., and
service was rendered at fair prices.
The Hotel Tivoli at Ancon and the Hotel Washington at Colon are
essential adjuncts to tie canal in affording suitable accommodaitions
to persons having business to transact. with the cnnal, foreign visitors,
tourists. visiting Government officials, and others. During the
tourist season the cnplcity of both hotels is frequently taxedl to the
limit. The Hotel Tivoli, formerly operated under the Panama
Canal. was transferred to the Panama Railroad at the close of the
fiscal year. This was done with a view to bringing about more
unified operation and control of both hotels and is expected to result
in improved service. The supply department will continue, as dur-
ing the preceding year, to operate both hotels.


The cost of operating the Hotel Tivoli during the year was $238,-
276.46, and the profits amounted to $20,925.72, or $10.99 less than for
the preceding yea'r. The cost of operating the Hotel Washington
during the year was $203,062.05, the profits amounting to $14,468.75,
or $382.78 less than for the preceding year.
A large volume of new construction work was done during the
year, and all necessary maintenance work on buildings of the Pan-
ama Canal and of the Pananama Railroad was accomplished. The
principal projects of construction consisted of the following: A
lar re warehouse and office for the commissary division at Mount
Hope, which was completed; a new administration building at Cris-
tobal, 84 per cent completed; a new printing-plant building at Mount
Hope, 80 peir cent completed; thirty-three 2-family houses at New
Cristobal, 95 per cent completed; and 40 type 1 cottages for gold
employees at Balboa, of which 10 were practically completed and the
balance well under way at the close of the fiscal year. Work was
also continued on the ten 12-family silver quarters at Cristobal, and
at the close of the year a total of $93,320.50 had been expended out of
the $102,000 authorized for this work.
In order to release a valuable area on the Atlantic side for the
erection of additional quarters for gold employees, the Colon radio
station of the United States Navy was dismantled and removed to a
location near Fort Davis, this work being 55 per cent completed at
the end of the year. An 8-room school for colored children at
Paraiso was begun, and at the end of the year it was 60 per cent com-
pleted; an 8-room colored school at Cristobal was completed, and in
quarters for colored employees at Gatun work was begun on the in-
stallation of additional plinimbing, at an estimated cost of $25,700,
which work was 30 per cent completed at the end of the year. In
addition, extensive building work on behalf of the United States
Army and Uniteld States Navy was undertaken during the year.
There is an equal or even greater volume of work ahead for the
fiLcal year 19;')0, including the erection of a new commni;sary building
for silver employees at Ciri-tobnl, at an estimated expenditure of
$150,000, and the construction of ten 12-family silver quarters at La
Boca at the Pacific entran, e to the canal, work on these two projects
having just started. Plans outlined call for the conunenceiment of
con traction during the coming months of a new storeliniihsd at Cris-
tobnl, at an estimated cost of about $120.000, which amount is cov-
ered by accumulated reserve funds; an addition to the nurses' quar-
ters at Gorgas Hospital, estimated at $80,000; and various heavy pro-
grams of construction for the two branches of the military service.


Gold employees.-The demand for family quarters continued to be
greater than the supply. At the close of the fiscal year 1928 there
were 239 accepted applications for family quarters on file in all
districts, and on June 30, 1929, there were 165 applications on file.
This reduction was due to the completion and assignment of new
quarters during the year and to the fact that a number of alien white
employees were required to vacate gold family quarters when they
could be accommodated elsewhere. The applications on file at the
close of this fiscal year were distributed as follows: Ancon-Balboa
district, 92; Pedro Miguel, 30; and Cristobal, 43. There is no pros-
pect that the demand for quarters will decrease, in view of the in-
creasing business of the canal, with accompanying expansion of
necessary operations, and particularly in view of the force increase
which will soon be necessary for the construction work to be under-
taken on the Madden Dam project.
The available funds for the maintenance of quarters were used to
best advantage and most of the buildings are in good condition. The
greater part of the Americann employees, however, live in wooden
buildings which have been in -ervice 20 years or more, and there are
some structures which should be abandoned as rapidly as possible.
Among these are a number of old frame buildings which were. con-
structed by the French canal companies, in the previous century.
These quarters have deteriorated greatly, due to decay of timber and
to the attacks of white ants. Maintenance expense on such buildings
has been reduced to absolute necessities, and on some buildings no
repairs whatever are being made. The program for replacing quar-
ters no longer fit for repairs contemplates an annual expenditure of
$500.000 for buildings and furniture, until completed.
Silver employees.-The demand for silver quarters has always been
in excess of the supply, and at the close of the year about 1,400 col-
ored families were on the waiting list for vacancies which may occur
from time to time in silver quarters, distributed by district as fol-
lows: Ancon-Bialbca;, 641; Pedro Miguel, 142; Gatun, 46; and Cris-
tobal, 571. At the end of the fiscal year approximately 10,000 of the
colored employees of the Panama Canal and Panama Railroad Co.
were renting quarters in the terminal cities of Colon and Panama,
under very crowded conditions, and are compelled to pay higher rents
than would be charged for canal quarters if available. However, to
furnish canal quarters to all silver employees who want them would
probably require at least 3,500 more apartments.
The cost of maintaining and operating silver quarters during the
year exceeded the rents collected, this deficit. being covered. as in
previous years, by an appropriation of $0..000. During the year


improvements were made by the installation of additional plumbing
in silver quarters at Gatun, at an estimated cost for completion of
$25,700, which work was 30 per cent completed at the close of the
Panama Railroad lands in the cities of Panama. and Colon and
public lands in the Canal Zone are administered by a joint land
Pai4mla Rai/load Co. lands andl leases.-During the Ifical year
2,526.88 square meters of Panama Railroad land in the city of Pan-
ama were sold for $07,233.74, making a total revenue from land
sales since the Panama Railroad Co. adopted the policy of selling its
real-estate holdings of $574,180.36.
There were in effect at the close of the fiscal year 1,402 leases and
7 licen-,es covering the use of Panama Railroad properties in the
cities of Panama and Colon. The income derived by the railroad
company from these during the past fiscal year was $220U,;.:37. This
represents an increase in revenue over the year 192"7-28 of $21.7'29.59,
which was due to the issuance of 53 new leases and to the increased
Ienitals charged on lease renewals, as a considerable number of leases
expired during the year and were renewed at increas-ed rentals. All
of the impratveidl property of the company is now held under lease.
Business conditions in the cities of Panama and Colon showed great
improvemlentl during the fiscal year, which has enh:trced to a con-
siderable extent the value of real-estate holdingiis of the Panama
LeJvied agi ;eidtural lands in the Canal Zone.-A total of 2,1-2..
licenses, covering 6,082 hectares of agricultural land in the Canal
Zone, were in effect on June 30, 1929. The rental from these lands
for the year ag.regated $'2,578.79, of which amount $873 was out-
standing at the close of the fiscal year. The average holding under
these licenses was 2.8 hectares (6.92 acres) per licensee. The area
held under license shows a reduction of 384.5 hectares (950.1 acres)
from the preceding year, while the number of licenses .-hows an in-
crease of 84. This was due to a continuation of the policy of re-
licensing and apportioning to small cultivators some of the larger
The gross revenuie realized from all real-estate operations handled
by the joint aInn office amounted to $348,649.40. This figure includes
the amount derived from sales of property, and also includes rentals-
on the oil-tank sites at Mount Hope and Balboa and rentals on sites
held under license in the Canal Zone by individuals and comnpa nies
on which office buildins anr d residences are Imainita;inei. There
is not included therein, however, rental for quarters occupied by
employees of the canal and railroad.


/ WAbill W




Motor and animal transportation for all departments and divisions
was supplied by the transportation division, this centralization of
activities having been found to be most efficient. The work of this
division, which is required to operate on a self-sustaining basis, in-
creased considerably during the year on account of additional haul-
ing required in connection with the Madden Road construction, the
heavy hauling for new building projects, and work on the extension
of streets done iby the municipal engineering division in Panama and
Forty cars and trucks were purchased and 21 were retired during
the year. Equipment on hand at the close of the fiscal year con-
sisted of 298 cars and trucks, 10 trailers, 24 motor cycles. 10 rowing
machines and rakes, and 11 imule-. Itevenues exceeded expenditures
for the fiscal year by $13,637.19, as compared with an excess of
$32,699.26 for the fiscal year 1928.
The printing plant carries in stock and manufactures such neces-
sary stationery, forms, etc., as arc required on the Isthmus in con-
nection with canal and railroad operations. It is the established
policy to curtail all classes of printing work as much as possible
so as to avoid the printing of excessive quantities of any item. Dur-
ing the year effort was made to keep the working forces and inven-
tory stock down to the minimum. The manufacturing output of the
plant was valued at $154.13)0.74, but the figures for 1929 do not in-
clude $24,000 worth of labor and material expended on commissary
books to be delivered early in the fiscal year 1930. Issues and sales
from the stationery section ainoounted to $125,695.92, making a com-
bined total of $279,835.66, as compared with a total of $303,762.89
during the preceding year. The inventory value of all stock on hand
at the close of the year was $77,926.67, which is the lowest for the
past three years.
The new printing-plant building at Mount Hope was nearly com-
pleted, and will probably be occupied within the first quarter of the
fiscal year 1930.
PlJa.taf;ons.-All plantations were operated under contract during
the fiscal year, with the exception of the citrus-fruit farm at Juan
Mina, consisting of some 50 or 60 acres. The net loss from the oper-
ation of this farm during the year was $1,779.44, as compared with
a net loss of $2.877.19 for the preceding year.
Dairy farm.-The operation of this unit continued along the lines
of the previous year and made the best showing since its inception,


resulting in a net profit for the fiscal year of $10,856.74, as compared
with $1,765.95 for the preceding year.
Cattle.-The operation of the cattle industry continued as before,
except for some curtailment. At the beginning of the fiscal year
4,358 head of stock were in the pastures. During the year 6,176
henad were purchased and 3 calves were born. There were 398
deaths from various causes, 51 transfers, and 8,666 head were
slaughtered, leaving on hand in the patituires at the close of year
1.422 head of stock. The loss of 398 head by death was due mainly
to the Dermatobio hominis grub, which during the preceding year
had killed 900 head and rendered approximately 3,000 more unfit
for slaughter. This grub was not so prevalent during the past
fiscal year, due to the energetic measures undertaken to bring about
snme measure of control. To this end and in an effort to eliminate
the pest reeloaring and burning of pastures were carried on from
November to June, some 7,500 acres of pasture land being burned
over. The total expended for clearing and burning pastures was
-lihtly in excess of $8,000, or a net cost of about $1.08 per acre.
The gross revenue from the sale of cattle during the fiscal year
amounteld to $546,685.09 and the cost of operations was $550,027.68,
resulting in a loss of $3,342.59, as compared with a loss of $6',556G.46
during the preceding year.
P7blt I0f,lirfution grIi'icns l iand experimental station.-Plant intro-
duction and culture during the year added much to the potential
value of the work carried on under the direction of the agronomist
at the experimental gardens at Summit, which were first laid out in
June, 1923. Increasing emphasis is laid upon efforts to introduce
-and grow plants which may prove to be of permanent value, not
only to the Canal Zone but to Pannina in general and all tropical
Anwericn. As an int;anv're, mention may be made of the introduction
and propagation of different varieties of sugar cane. The sugar
industry of Paiamna. is at present suffering much from the Mosaic
disease and froni other pests. There is need of varieties of cane
resistant to this dii ease, and also of higher sugar-yielding capacity.
There have been introduced in the experimental gardens many varie-
ties, including a nummI'er that. have proved sati factory in other
countriesi. For further example, Panama imports large quantities
of rice, a ciin-mnodity which, it would seem, should be produced more
abundantly in the Republic. The experimental gardens have in-
trodliced and are experimenting with many varieties, from the
Philippines and elsewhere, especially of upland rice.
During the year about 1,000 rubber plants were. grown from se-
lected el*lling. of Hevea br;ziliensi.-, many different, varieties of
pineapple, mnango, avocailo, papaya, banana, and other fruit-bud
sticks and seedlings were receiveil, ;s1 well as many Iunldreidls of ornn-


mental shrubs and flowering plants. Acknowledgment is due the
various experimental stations and many private individuals for
numerous plant donations and much helpful assistance.
The gross revenue from the operation of telephones, electric clocks,
and electric-printing telegraph machines amounted to $230,939.56 and
the operating expenses were $199,300.42, leaving a net revenue of
$31,639.14 as compared with $30.958.93 for the preceding year.
During the year 1,121 telephones were installed and 989 removed,
making a net increase of 132 telephones for the year, exclusive of
those in the Hotel Tivoli and Hotel Washington. A total of 16
nut(omatic typewriters, or electric-printing machines, were in use at
the end of the year; 12 are in use by Panama Canal departments, 2
by the commissary division of the Panama Railroad, and 2 by the
United States Navy, with 2 additional machines held in reserve. Five
additional electric clocks were installed, making a total of 84 in serv-
ice at the end of the year.
Many of the business activities on the Isthmus connected with the
canal are conducted with the funds of the Panama Railroad Co. In-
clhided in these are the wharves and piers at the harbor terminals,
the commissary system, coaling plants, and various minor activities,
as well as the Panama Railroad itself. In this report only the major
features of these operations are noted in their relation to the canal
administration as a whole. Details are given in the annual report of
the Panama Railroad, which is published separately.
The operations of the railroad proper,.harbor terminals, coaling
plants, stables, and baggage transfer were continued throughout the
year under the direction of the superintendent of the railroad; the
telephone system under the electrical engineer of the Panama Canal;
renting of land and buildings under the land agent; and the commis-
saries, hotels Washington and Tivoli, plantations, dairy farm. and
cattle industry under the chief quartermaster of the Panama Canal.
The gross revenues during the fiscal year 1929 from the operations
of thePanama Railroad proper (not including subsidiary business
activities) amounted to $1,832,260.67; the gross operating expense;
were $1.493,591.950, resulting in a net revenue of $338,6GS.72, ais com-
pared with $329,768.74 last year, an increase of $8,899.0S for the year.
During the fiscal year 1 new 61-foot first-class passenger con;ilh. 3
refrigerator cars, and 2 tank cars were constructed andl put into


service; 1 additional motor car was purchased and authority was
issued for the construction of 2 additional first-class and 2 second-
class coaches. The 12-stall concrete roundhouse at Cristobal was
completed. Tonnage of commercial freight transported during the
year aggregated 383,323 tons, as compared with 341,349 tons during
1928, an increase of 41,974 tons.
The following table presents statistics covering various phases of
operations during the past three years:

1927 1928 1929

Average miles operated, Colon to Panama-------------- 47.61 47.61 47.61
Gross operating revenue ----.----------------------- $1,638,753.66 $1,709,095.79 $1,832,260.67
Operating expenses------------------------- ------ $1, 306, 843.29 $1,379,327.05 $1,493,591.95
Net operating revenue--------------------------------- $331, 910.37 $329, 768.74 $338, 668.72
Per cent of expense to revenue-- ------------------------ 79.75 80.71 81.51
Gross revenue per mile of road----------------------- $34,420.37 $35,897. 83 $38,484.79
Operating expenses per mile of road -------------------- $27, 448. 92 $28,971. 37 $31, 371. 39
Net revenue per mile of road---------------------------- $6,971.45 $6,926.46 $7,113.40

Number of passengers carried:
T ir 1- l i .......................... .... ....... .
1..... ...........................................
Passenger revenue:
Second-class --------------------------------------
Total. ----- ---------- ------ -------

184,430 188,796 208,503
311,343 328,460 437,379
495,773 517,256 645,882

$249,061.03 $239,498. 24 $260,513.84
$189, 206. 66 $214, 006. 06 $216, 082. 59
$438, 267. 69 $453, 504. 30 $476, 596.43

Revenue per passenger train-mile-.------ -------- $5.20 $5.34 $4.24
Revenue per freight train-mile ------------------..-- -- $11.28 $11.99 $11.47
Total revenue train mileage-------.-----------.-------- $179,258.00 $183,858.00 $201,774.00
Railroad revenue per train-mile ------------------------- $9.14 $9.29 $9.08
Railri i'1 .-.1. i ie Li- expenses per revenue train-mile.. ----- $7. 29 $7.50 $7.40
Net I.ilr ir1 1 1- fu.l: per revenue train-mile ------.. -- $1.85 $1.79 $1.68
Frl. ILilil ]I-I'n ,-c .i.l' sY.itb 1. t1 ... ln li. e ilt IL ....... 294,994 303, 496 332,419
\'.rk.i j iu L -IIIL r i...................................... .1,992 2,392 112,343
Pa... ri I i. 1 i[i l I ................................. 103,135 105,697 112,488
Friclciir Ir rii mileage-----------------------------------........... 76, 123 78, 161 89,286

I Th< I !c.- increase in work-train mileage was occasioned by the nrD.F-Lity for running 3 round-trip work-
trains .1 il.. Irom Panama to Miraflores during the extended overhaul period of the Pacific locks.


The system of shipping cargo to the Canal Zone ports subject to
the orders of the consignor or consignee after arrival, which was
established on Ma vch 17, 1925, continued in increasing use. Under
this system iercihandlise may be shipped to Canal Zone terminal
ports to be held there for orders, the Panama Railroad Co. acting
as warehouseman. Such cargo, or integral parts of it, may be with-
drawn and delivered locally or forwarded as the consignor or con-
signee may deQsire, except that goods for use in the Canal Zone or
the Republic of Panama, by others than those entitled to the free-
entry privileges, are released only upon the presentation of satis-
factory evidence of the payment of the proper duty to the Republic
of Pana;ma. Nearly 100 different commodities were handled in this
way during the past fiscal year and the quantity of this cargo re-


ceived was 39,533 tons, as compared with 26,864 tons in the pre-
ceding year.
Following is a summary of the business during the fiscal year 1929,
made up of that at the Atlantic terminal, Cristobal, and the Pacific
terminal, Balboa, with a comparison of the total with the totals
for 1928 and 1927.

1928 1927
Cristobal Balbni Total

Number of receipts issued-.......................... 957 346 1.303 1.072 602
Number of withdrawals. -..-...- ................... 5,599 2,760 8,359 5.839 3,641
Tons received------ -------------------------- 35,733 3,798 39,533 26, '64 8, 200
Tons withdrawn--.. -----------------------------.... 29,735 3,325 33,060 28,087 6. 125
Packages received................................... 98,591 48,110 146,701 94,782 76,316
Packages withdrawn------------------------ 88,148 45, 635 133, 783 92,207 77, 885

The gross operating revenue of the steamship line for the fiscal
year ended June 30, 1929, amounted to $2,137,267.83, and the gross
operating expenses amounted to $2,090,411.45, leaving a net revenue
of $46,S56.38. This net operating revenue of $46,856.38, as compared
with the revenue of $101,513.40 for the fiscal year ended June 30,
1928, shows a decrease of $54,657.02.
For the year ended June 30, 1929, the tonnage carried by the steam-
ship line amounted to 253,682 tons, as compared with 247,068 for the
previous year, an increase of 6,514 tons.
The steamship line carried all freight and passengers for account
of the Panama Canal and other departments of the Government of
the United States at material reductions from tariff rates, which
amounted to the important sum of $508,114.46. Had regular tariff
rates been received by the steamship line for such freight and passen-
ger service performed for the Panama Canal and other Government
departments, its operating profit of $46,856.38 would have been in-
creased to a net profit of $554,970.84.



The work of the canal on the Isthmus is divided into five principal
departments, namely, operation and maintenance, supply, account-
ing. executive, and health.


Operation and main tenance.-The department of operation and
maintenance embraces functions related to the actual use of the canal
as a waterway, including the dredged channel, locks, and aids to
navigation; and accessory activities, such as shops and dry docks,
vessel inspection, electrical and water supply, sewer systems, roads
and streets, hydrographic observations, surveys and estimate, and
miscellaneous construction, other than the erection of buildings.
Supply.-The supply department is charged with the necu n lla.-
tion, storage, and distribution of materials and supplies for the canal
and Pan;i ma Railroad; the operation of commissaries, hotels, cattle
pastures, and dairy; the maintenance and construction of buildings;
the assignment of quarters and care of grounds; and the sale of pro-
visions and other supplies, except coal and water, to ships. It also
operates corrals and motor transportation, mannufactuiring plants,
bakeries, ice plants, abattoirs, the Panama Canal Press, and other
related activities.
Accounting.-The accounting department is responsible for the
correct recording of financial transactions of the canal and railroad,
the administrative auditing of vouchers covering the receipt and
disbursement of funds preliminary to the final audit by the general
accounting office, cost keeping of the canal and railroad, the check-
ing of timekeeping, the prepay ration of estimates for appropriations
and the allotment of appropriations to the various departments and
divisions, and the examination of claims. The collector and pay-
master are attached to the accounting department.
E.ecuti'e.-The executive department embraces the general office
business of the governor, adininistrativ e activities invested by execu-
tive order within the authority of the executive secretary, and, for
purposes of administration of material business needs only, the


courts, marshal of the Canal Zone, and office of the district attorney.
Under this department come the administration of police and fire
protection, postal service, customs, shipping commissioner work, es-
tates, schools, general correspondence, and records for the organiza-
tion of the canal and the Panama Railroad, personnel records, time-
keeping, wage adjustments, statistics of navigation, information and
publicity, relations with Panama, and the operation of clubs and
Health.-The health department is charged with all sanitary mat-
ters within the Canal Zone and the cities of Panama and Colon,
the operation of the hospitals and dispensaries, the enforcement of
quarantine regulations, and the compilation of vital statistics in the
Canal Zone and in the cities of Panama and Colon.
As the Panama Railroad on the Isthmus is essentially a part of
the canal, all work on the Isthmus is handled as though in one organ-
ization, the heads of departments of the Panama Canal reporting
to the governor, and the superintendent of the Panama Railroad
reporting to the president of the railroad, the incumbent of both
offices being the same official. The general administration is centered
in the executive office, and the accounting work in the accounting
department; the Panama Railroad and other divisions of the general
organization being billed for their proper share of the general over-
head work.
Upon the expiration of his 4-year term as governor on October
15, 1928, Brig. Gen. M. L. Walker, United States Army, was relieved
from duty with the Panama Canal and the present incumbent was
appointed to fill the vacancy, effective October 16, 1928. The position
of engineer of maintenance, thus vacated, was filled by the appoint-
ment of Lieut. Col. Julian L. Schley, Corps of Engineers, United
States Army, who had been assigned to. duty with the canal, with
that idea in view, as assistant to the governor on September 23, 1928.
The engineer of maintenance is next to the governor in the canal
organization, and by Executive order is designated as the official to
assume the responsibilities of the governor during the latter's absence
or disability.
The most important change in organization during the fiscal year
was the beginning of the organization of the designing engineer sec-
tion for the Madden Dam and power plant. Mr. E. S. Randolph,
office engineer, was appointed designing engineer on June 17 and
began at once the formation of his organization.
The development of commercial aviation to and from the Canal
Zone made desirable the services of an adviser who would be in


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direct contact with this feature. On request of the governor for
the designation of such a person, Lieut. R. T. Zane, Air Corps, was
as-signed to this duty on June 15, 1 929, in connection with service
with the air forces on the Isthmus. Under this arrangement no new
position was added to the canal rolls.
Mr. Roy R. Watson, superintendent, was appointed chief quarter-
master on September 18, 1928, vice Mr. R. K. Morris, resigned. Ef-
fective the same date, ,M\r. J. H. K. Humphrey, superintendent, was
appointed assistant chief quartermaster.
On detached service from the municipal engineering division, "Mr.
0. E. Maisbury was appointed on December 15, 1928, assistant en-
gineer in charge of the trann-isthnmian highway survey.
Lieut. Col. Joseph F. Siler, Medical Corps, United States Army,
was appointed chief heIalth ffibcer on June 16, 19)29, relieving Col.
W. P. Chamberlain, Medical Corps, United States Army.
lMr. L. W. Lewis was appointed office engineer on June 17, succeed-
ing Mr. E. S. Randolph, transferred to the Madden Dam organiza-
Capt. Roy W. Ryden, United States Navy, was appointed assistant
to the governor on June 19, 1929, and on June 20 he was appointed
superintendent of the mechanical division, relieving Capt. William
McEntee, United States Navy. This is Captain Ryden's second
term in this position.
The Hon. James J. Lenihan, under Executive order of the Presi-
dent, dated February 12, 1929, was appointed judge of the district
court of the Canal Zone, relieving Judge G. H. Martin.
Plate 10 shows an outline of the organization of the Panama Canal
as of June 30, 1999.

The supervisory, technical, higher clerical, and highly skilled
mechanical employees, consisting primarily of American citizens but
including a few aliens, is carried on the gold roll; the rest of the
force, principally aliens but including a few American citizens on
low-paid work, are designated "silver" employees. These terms are
a heritage from the tropical practice of paying the Americans and
Europeans in gold, required because of its stability, while the native
or tropical labor was paid in the local currency, based on silver.
During the fiscal year the gold force increased 187, or 6.16 per
cent. The silver force increased 1,603, or 14.73 per cent. The com-
bined force increased 1,790, or 12.87 per cent. These figures are based
on the last force reports for each year, as of the third Wednesday
in June. The following tabulation shows the distribution of the gold
personnel on those days:



Operation and maintenance:
( ti(e.......... ---...-- ---------------------------------------- -- --- division------------.------------------ --------- ------
Municipal engineering division--------------------------------------
Lock operation ---------------------------------------------
Dredging division-------- -------------- ---------------------
Mechanical division.------------------------------------------------
Marine division-- -------. ------------------------------------------
Fortifications-------------------- -------------------------------
Supply department:
Quartermaster .-----------..----------------------- ------------ --
Subsistence.----------------------- ------------- --------------
Commissar.\ division.-----------------------------------------------
Cattle indusri y..------------------------------------------------------
Hotel Washington .----- ------------ ---------------- ---------
Transportation --------------------------------------------------------
Accounting department --------------------------------------------------
Health department------- ---------------------------------------------
Executive department.......................................---------------------------------------------------
Panama Railroad:
Receiving and forwarding agent--------------------------------------
Coaling stations-----------------------------------------------------
Total...------.--------- ------------------------------

I Decrease.

force on
June 20,

force on
June 19.


41 45 : 4
153 1541 I
81 108 27
226 253 27
185 194 9
416 446 30
211 213 2
26 28 2
197 205 8
8 8 --------
216 230 14
5 4 11
8 8-----.
54 66 12
193 203 10
272 277 5
497 522 25
50 49 1 I
66 66 ------.
84 97 13
49 49 ------...
3,038 1 3,225 189

The force employed varies from day to day, according to the work
to be performed, seasonal opportunities for construction, etc. In-
creases in one class of work may be offset, in part or wholly, by de-
creases in the force engaged on other kinds of work. A few positions
vacated by aliens were filled with American citizens and transferred
to the gold roll. The following is a summary of the more important
increases in positions:


Ofice.-Increased road surveying and construction projects and de-
signing work on the Madden Dam necessitated additional positions;
of these one was a subclerical job reallocated from the silver roll.
Electrical division.-Two permanent positions of wireman were
authorized on account of increased work in this division.
Mzrmicipal engineering dihision.-During the year 44 positions -were
authorized to handle the increased construction work at various
points in the Canal Zone and Panama City, the Madden Road con-
struction, and preparatory work for the Madden Dam. Of these,
32 will be required through the fiscal year 1930.
Lock operation..-Fourteen additional locomotive operators were
required, and will be retained until the end of the calendar year 1929,
because of the need to relieve regular staff employees whose vacation
leave had accumulated during the 5-month overhaul job on the
Pacific locks; and other temporary positions were occasioned by the
locks overhaul.
Dredging dicision.-Upon the placing in service of the new Diesel
electric dredge Las Cruces in January, a picked crew of 13 gold men


was required, resulting consequently in the addition of nine positions
to the organization of this division. This increase in force will be
permanent throughout the fiscal year 1930.
Mechanical dit'Mhon.-The gold force was larger by some 30 men
at the end of the year, this increase having been occasioned by the
general increase in ship work, the extra work caused by the Pacific
locks overhaul, and the program of submarine overhaul for the
United States Navy. This submarine work will extend well into
the fiscal year 1930, and obviates any prospeirt of an appreciable
decrease in force.
Marine division.-The force was not increased except for tempo-
rary positions to furnish relief for vacations.
Fortifications division.-Increased construction and office work
made necessary a slight addition to the permanent force, as well as
several temporary positions.
Quart emna.ter.-Expansion of business operations and building
con-truction required some changes in the organization, the abolish-
ment of some positions and the addition to the organization of several
other positions, including that of assistant chief quartermaster. The
appropriations for the fiscal year 1930 indicate the retention of prac-
tically the present organization.
Commissary division.-A marked increase in business activities
and sales necessitated the addition of a few permanent positions to
the organization. The increased personnel is necessary to give
adequate attention to the volume of work.
Motor transportation division.-Increased hauling in connection
with the Madden Road and other construction features necessitated
10 additional permanent positions. There is no present prospectof a
decrease in force.
During the year two new positions were authorized on account
of increased work and one silver employee was transferred to the
gold roll. The remainder of the apparent increase was due to
natural fluctuation of the force at the end of the year, there having
been fewer vacant positions at the commencement of the year than at
its close. The total force was less than that authorized for this
Requirements at Gorgas Hospital added to the staff during the
year the new positions of cardiologist, head nurse, nurse at the dental
clinic, and some temporary positions. The number of internes car-
ried on the rolls varies from year to year, due to the failure of some
to accept duty in the Canal Zone.



Police and fire division.-Police supervision at the new Mount
Hope plant of the commissary division required the addition of seven
permanent positions to the organization.
Schools division.-The teaching force was increased by 7 perma-
nent and 2 temporary positions at the beginning of the school year,
which was necessary to relieve overcrowded conditions in practically
all of the grades, and to take care of normal increase in enrollments.
JMiscellaneous.-Four permanent and four temporary positions, in
addition to those mentioned for the police and fire division and
schools division, were made necessary during the year on account of
increased work in the division of posts and in various bureaus and
Receiving and foirwarding agency.-The increase of 13 to the force
is explained by authorizations for 16 new positions during the year,
made necessary to care properly for the greater volume of business.
The turnover in gold personnel results in large measure from
temporary positions, created to cover special work or to furnish
vacation relief for permanently employed personnel. The following
table shows additions and separations from July 1, 1928, to June 30,
1929. Separations are classified by causes. This table covers a
slightly different period from that covered by the force reports of
June 20, 1928, and June 19, 1929.

ndte Executive Supply Health A unt- nama Total

Employed or reemployed in
United States...............----------------. 85 51 10 52 2 4 204
Employed or reemployed on
Isthmus----------------------..................... 205 54 41 32 34 98 464
Total additions-.......... 290 105 51 84 36 102 668
Resigned----------------------................ 75 55 21 67 15 34 267
Retired----------..... --------------- 9 4 2 3 .--..----- 3 21
Died--------------------------........................ 7 1 4 4 3 4 23
Reduction of force-------------- 9 -......-_- 2 1 -------.-- 4 16
Expiration of temporary em-
ployment-..--.........--..... 51 6 4 9 5 15 90
Released for cause. 5---------- 15 2 2 1 1 7 28
Transferred to silver roll........ 1 .............----------------------...---------------- 1 2
Insane-------------------------- 1 ----------.......---------------------------------------.......... 1
Completion of apprenticeship...- 2 ---.---------------.--. ----------. ........-------- 2
Disability-----......----------------------.......... 1 .......... 1 .......... 1 3
Not qualified or adapted to
duties of position ------------- --- 1 -------------------.......... 1 2
Failureto report back fromleave-.......... ..-........ .......... 1 ------------------- 1
Unable to pass medical exami-
nation...----------- --- ----------------------------- -.. --------- -------......... 1 1
Total separations......... 170 69 36 87 24 71 457

Additions, Panama Canal---------.--.------ 566 .Addittions, Panama Railroad---------------.. 102
Separations, Panama Canal------------------ 386 Separations, Panama Railroad.............. -------------71
Net additions--------..........------------- 1180 Net additions--------...........--..--....--------- 131
1 This table and the one shown above are based on slightly different periods.




The number of persons above the grade of laborer tendered em-
ployment through the Washington office of the Panama Canal dur-
ing the year was 388, of whom 213 accepted and were appointed,
covering 46 different kinds of positions. Acceptances and appoint-
ments were 54.8 per cent of the tenders. In the previous year the
tenders numbered 455 and appointments 210, making the percentage
of acceptance 46.1, and in the fiscal year 1927 the corresponding.
figures were 495 and 261, or a percentage of 52.7. In addition to theft
213 employment in the United States there were 464 on the Isthmus,
making a total addition to the gold roll during the year of 677. Sep-
arations numbered 457, of which 21 were due to retirement. Based
on a force of 3,038 gold employees at the beginning of the year, 457
separations make a turnover of 15 per cent from all causes, as com-
pared with 13.4 per cent during the previous year.
When an additional employee is needed efforts are made to fill the
position by promotion from the force already employed or by trans-
fer to it of an employee whose work in another department is about
to terminate. This tends to reduce employment of people unused
to Canal Zone conditions, to reduce recruiting costs, and to give the
organization the benefit of the employee's accrued experience in local
conditions. It has a further value in strengthening the morale of the
force through giving the employees a reasonable expectation of con-
tinued employment as long as their services are satisfactory, which
builds up loyalty to the canal. Of the 677 gold-roll employment
made during the past year, practically 33.5 per cent were reemploy-
Three thousand and twenty-two persons (2,709 from New York,
152 from New Orleans, and 161 from Pacific-coast ports), including
new appointees, employees returning from leave of absence, and mem-
bers of their families, were provided transportation from the United
States to the Isthmus. The total was an increase of 466 over the
previous year's total.

No figures are available concerning the number of separations and
employment among the alien personnel composing the silver roll,
but no serious difficulty was experienced in maintaining an adequate
force, and the percentage of turnover was low for this class of labor.
At times there were shortages of artisans, but not sufficiently serious
to retard the work.



Under the Panama Canal act it is provided that salaries or com-
pensation fixed thereunder by the President, or by his authority,
"shall in no instance exceed by more than 25 per cent the salary or
compen-ation paid for the same or similar services to persons em-
ployed by the Government in continental United States." Concur-
rently with this limitation it has been the policy to pay generally to
United States citizens employed on the gold roll the full 25 per cent
above pay for similar work in the United States, within the limita-
tions of appropriations and subject to the preservation of coordina-
tion within the organization; however, there are numbers of em-
ployees in lower-grade clerical positions who are paid at rates c-tab-
lished locally without reference to United States rates; and their pay,
being on a par with or lower than the pay for similar positions under
the Government in the United States, does not include any incirement
for tropical service.
During a number of years appropriations have been insufficient to
allow the full 25 per cent to employees of the civil government. In
the fiscal year 1929 they were paid 22 per cent over rates for similar
services in the United States, and arrangements were made for pay-
ing the full 25 per cent during the fiscal year 1930.
The wage matter that occupied the most attention during the year
was that of bringing the grades of employees coming under the clas-
sification act of 1923, as amended by the Welch Act of 1928, into
conformity with the grades established for similar positions in Gov-
ernmient zsenvice in the United States. In the first half of the fiscal
year a committee from the Isthmus visited Washington to assist the
Personnel Classification Board in the revision of the tentative speci-
fications drawn up by the board and in the allocation of some 1,021
Panama Canal positions to services and grades in accordance with
the specifications. The tentative allocation of Panama Canal posi-
tionI. except for the nom enelature and in a few case-, the grading,
was made effective in May, 1929. The committee was directed to
make a study of the exceptions and of certain positions which the
canal administration con-idered to have been graded too low and to
return to Washington for further conferences with the Personnel
Classification Board.
The more important of the other changes in rates of pay made
during the past fiscal year were those of employees in mechanical
trades based on the annual adjustment in the navy yards in the
United States, effective January 1; the bimonthly adjustments of
rates for building trades crafts; and adjustment of rates for dredg-
ing and marine employees.


The wage board, consisting of the assistant engineer of main-
tenance and a representative selected by organizations of employees,
held 30 meetings during the year.
The salary board, composed of the heads of the nine major de-
partments and divisions of the Panama Canal and Panama Rail-
road, held a number of meetings during the year chiefly in connec-
tion with the grading of classified posit.iqns referred to above.
Both the wage and the salary boards function merely in an ad-
visory capacity to the governor, who is charged with the fixing of
all rates of pay.


The board on silver rates of pay, consisting of the heads of 17
departments and divisions of the Panama Canal and Panama Rail-
road, held meetings in November and May. As with the boards on
gold rates of pay this board acts in an advisory capacity to the
The basic rate of 20 cents per hour for unskilled labor, with the
proviso that 21 or 22 cents may be used as the entrance rate if de-
sired by the foreman in charge, remained in effect during the year.
There were no considerable changes in the schedule of rates of pay,
though a few changes were authorized for designated crafts.
The average rates paid to alien employees as of October 1, 1928,
when the last general survey was made, as compared with preceding
years, were as follows:

A. errige earninvI Average earnings

Mintlil.t H 0irly Monthly Hourly
empl(icc' r-]ipl"o ees employees employees
pernjnill Iper hlurn (permonthi' (per hour)

Nio 1. .2.. . '7 2 .12 Nov. 1. 1926. .. ...... $55.40 $0.2395
N o. 1. 19241 74 .2.'(' Oct. 1. 127T......... ... 54. .411
N 1. 1I'25... ........ . 38h5 (et 1, 1928-................ Z- 6.44 .2496

During the five years, approximately, covered by the foregoing
table there have been increases of $1.17 per month in the average pay
of monthly emplbvccisi and 1.86 cents per hour in the pay of hourly
(employees. Duriingi tilis aime period the index of the cost of living,
based on weighted prices in the coirmmissalry stores, with July, 1914,
;is 100, declined frniii l-1I(L. as of October 1, 19L2:. to 13).sil ;as of
May 1, 1929. This index advanced 2.71 points during the past fiscal

This bonrd is composed of the assistant engineer of maintenance.
the head of the department or division in which the specific com-


plaint originates, and two representatives of the employees who are
nominated by the central body of the employees' associations and
approved by the governor. Three cases were handled by this board,
as compared with two in the fiscal year 1928 and three in 1927. The
mall number of cases brought before this board is indicative of the
generally satisfactory conditions of employment that exist under the
Panama Canal and Panama Railroad.
The clubhouse and playgrounds system continued in operation dur-
ing the year with no change in policy although with a somewhat
broadened scope, and many features of entertainment and recreation
for the employees and their families were carried on. Community
activities within the Canal Zone center in large measure around the
clubhouses, which are open daily between the hours of 7 a. m. and
11 p. m.
Ten clubhouses are operated, of which five are for the white and
five for the 'colored employees; during the year, in addition, a club-
room for colored employees was opened at Gamboa. Fourteen con-
crete and several grass tennis courts are maintained, as well as various
athletic fields and ball parks, and for the small children playgrounds
are operated where kindergarten activities and supervised play may
be carried on. Three swimming pools are maintained and are well
patronized. A boathouse is also kept open near Fort Amador, where
tra nsporta t ion is available to visit Farfan Beach on the opposite side
of the -anal. This beach has been put in condition recently as a
part of the playground system and is maintained under supervision.
The auditoriums of the clubhouses continued in use during the
year for concerts or vaudeville performances by traveling troupes,
dramatic and other entertainments given by high-school students or
other local talent, school commencement exercises. etc. Card parties
were also held frequently and did much to engender a social atmos-
phere. Military 1>iands from various garrison posts, gave concerts
regularly at clubhouses of the larger towns; and the boys' bands of
Balboa and Cri.ttc1al were active in furnishing concerts.
In addition to the entertainment needs provided from their own
funds for the Army and Navy forces and by the Army and Navy
Y. M. C. A.'s, the personnel of the Army and Navy, as well as tran-
sient visitors to the Canal Zone, have the privileges of the Canal
Zone clubhouses. During the visits of the United States Fleet in
canal waters the clubs and playgrounds at the terminal towns are
crowded by the Navy personnel.
Facilities offered at cliubhoumses include reading rooms, branch li-
braries, billiard and pool tables, bowling alleys, sales counters, offer-
ing tobacco goods and candies, magazines, souvenirs, etc., a refresh-


ment service ranging from soft drinks to light lunches, and free
checking of parcels. Motion pictures were regularly shown in all of
the clubhouses; in addition, films were furnished free of charge for
weekly picture programs at the Palo Seco leper colony, Corozal Hos-
pital, and Gamboa Penitentiary. Approximately 168 reels of special
educational pictures were run in connection with regular motion-
picture programs.
At the colored clubhouses a special effort was made to offer help-
ful educational attractions and to foster interest in classes covering
health, social, commercial, industrial, and other self-help features,
both for adults and for children. Selected films were furnished to
the various colored clubbouescs for regular picture programs; and
once a month a free picture show was given to children at the various
colored schools.
Urgent repairs and improvements were made at several of the club-
houses and playgrounds during the year, as funds became available.
Most of the clubhouses are old, in bad condition physically, and ex-
tensive repairs are needed to keep them in a usable condition. This is
particularly true of the old frame buildings at Ancon and La Boca,
where new buildings are badly needed, while at Balboa the building
is not only old but is far too small. A new clubhouse and an athletic
and baseball field are also needed at New Cristobal. The baseball
field at the Atlantic end has been located in Colon and is to be taken
over for the erection of buildings. It is important that other grounds
be provided, and plans are being made to erect a new clubhouse and
baseball grand stand at New Cristobl l on part of the ground recently
made available by the removal of the Colon radio station to another
site, as soon as funds become available. A swimming pool at Gatun
for white employees is one of the most urgent needs; and swimming
facilities at the four colored towns of Gatun, Paraiso, Red Tank, and
La Boca are also urgenitly nc'dedl. as well as playsheds at those com-
nmunities for the 'i nall children. The playsheds for small white
children at Balboa and Critobal are too small, and while an exten-
sion will be provided for the playshed at Balboa, the congestion at
Cristobal can not be relieved until a new clubhouse is constructed.
The average attendance at kindergarten during the year was about
293 children per day. Larger children from the schools have access
to the playgrounds during the noon hour, after school, and on
The activities of the bureau of clubs and playgrounds during the
year were carried on with a force consisting of 42 gold and 134 silver
full-time employees. In supervising the many-featured activities
which were a part of this system the part-time services of 106 otliwrs
were utilized, in iuch duties as motion-picture operator, music.-ian.


relief cnshier and saleswoman, playground assistant, etc. The opera-
tion of the system as a whole is not at a profit, and the deficit must
be made up from appropriations. The justification for appropria-
tions for necessary improvements lies in the fact that the clubhouses
are social centers for the Canal Zone population, both white and
colored, and in the absence of other facilities for a like purpose they
have proved indispensable to satisfactory community life in the
Canal Zone. Clubhouse finances for the fiscal year are taken up in
the section on business operations. Contributions by the Government
amounted to $125,000, an increase of $5,000 over the preceding year,
due to increases in salaries under the Welch Act. Additional ex-
penses defrayed from gross revenues were $551,154.46, leaving a net
income from the various activities of $31,632.97.
In connection with the operation of the canal attention must be
given to future needs and to questions of policy which may affect
the enterprise. On the following pages are brief discussions of
some of the more important of such matters.

It is considered to be the special duty of the canal administration
to make close studies of the traffic and to report on it each year, so
that all possible information will be available for the guidance of
the President and Congress in considering and ultimately deciding
the matter of the construction of a third set of locks. For that
reason there is presented here a resume of the essential points govern-
ing the capacity of the canal now and with the third flight of locks.
The capacity of the canal is dependent on the rate at which ships
can be passed through the locks and on a -water supply sufficient to
miaiiitain a working depth of water in the lock and lake section-.
The present canal can handle 48 complete lockages a day of 24
hours, except during the biennial-overhaul periods, when one side
of one set of locks must be out of service for repairs for about 90
days. During such overhaul the capacity of Gatun Locks is re-
duced to 28 lockaiees a day; the Pacific Locks under overhaul can
accomplish 30 locikages, a day.
There are variations in the numbers of ships arriving for transit.
Pe;ak days occur. Experience has shown that these peaks exceed by
about 50 per cent the prevailing average per day. Hence when the
average of 32 lockages per day shall have been reached there may
be anticipated peak days of 48 lockages, reaching the full c:iplziity
of the present. twin-lock canal. When an average of 28 lockages is
reached peiak loatl. will exceed the capacity of the locks during over-


haul. As approximately one lockage per day is needed for the
handling of noncommercial vessels (Army and Navy ships, vessels
of Panama and Colombia, etc.) an average of 27 commercial lock.
ages represents capacity during Gatun Locks overhaul. When this
average is reached the third flight of locks should be available for
It is planned to build the third flight of locks directly alongside
the existing locks. No estimate has been made of the cost. A rough
guess indicates it to be between $75,000,000 and $100,000,000 and that
in the interest of economy it would be advisable to extend the con-
struction period over 10 years. That is, work should be begun when
the growth of traffic shall indicate that an average of 27 commercial
lockages per day will be attained about the end of the tenth year
following. The new locks will contain improvements and require
a shorter period for overhaul than the present ones, approximately
30 days as compared with about 45 days for each side of the present
twin locks.
After the third locks are completed the minimum lockage capacity
will occur during the quadrennial overhaul of Gatun Locks and while
the new flight is under repair. Capacity will then be the same as
the present normal maximum capacity, 48 lockages per day. In view
of the short time the third lock will be out of service, and of the fact
that conservative figures were taken for the limiting capacity of the.
existing locks, it does not c-eem unreasonable to assume that the daily
lockage capacity during overhauls will be 56 after the third set of
locks has been completed.
Water supply.-The critical periods for water for lockages are
toward the end of dry seasons of exceptional length and dryness.
The drv season of 1920 shows the lowest water supply of any year
since the construction of Gatun Dam, and is taken as typical. The
length of the season during which it was necessary to use storage
water from Gatun Lake was 158 days. The lake had in storage the
water from 87 feet to 80 feet elevation above sea level, and consider-
ing yield from the watershed, minus the losses through evaporation.
leakage, and municipal supply, there was available in this time for
lockage an aggregate of 31.02 billion cubic feet of water. Under
practical operating conditions the transit of a single ship or p;iir < f
ships involves the use of from five to six million cubic feet. Based
on 6.000,000 cubic feet, the water supply for the dry season of 1920
would have been sufficient. for 32) lockages per day during the 158
days in which stored water would have been needed. Since the third
flight of locks should lie built liy the the time cniinercial traftic re-
quires an average of 27 lockages per dany it is sron hllit thfe pr1-pm
water supply is sufficient for the operation of li9 evxi-tii i lju1k-. I)o-
7261, i'44-'. -f;


vided the electric load is shifted from the hydroelectric station to the
Diesel plant.
Madden rcserzvo'ir.-While the additional water supply to be pro-
vided by the construction of the Madden Dam. at Alhajuela may not
be necessary for lockages until the third set of locks is in service, it
is desirable to have it now to increase dry season water supply so as
to prevent the depth of Gaillard Cut from being less than 42 to 43
feet; to control exceptional floods, like that of October, 1923; and to
reduce the cost of operating the Diesel electric plant during the dry
season. The first of these reasons is the most important.
It is in connection with the third set of locks that the Madden
Dam storage will be most useful. Details of the dam have not been
determined, but the storage will be between a minimum of 13,000,-
000,000 and a maximum of 22,000,000,000 cubic feet. Assuming it
to be not more than 18,000,000,000 cubic feet, its addition to the stor-
age in Gatun Lake would provide, for a dry season like that of 1920,
a combined storage of 49,000,000,000 cubic feet; and if, as seems likely,
the crest of the dam is to be at 240 feet above sea level and the stor-
age 22,000,000,000 cubic feet, the combined supply would amount to
53,000,000,000 cubic feet. The third locks will make possible a more
economical use of water and the amount then needed per lockage
may be e-tiinated conservatively at 5.5 million cubic feet. Using this
figure, the combined storage, based on 18,000,000,000 cubic feet in the
Madden reservoir, would suffice for 56 lockages a day through the
dry season, and based on 22,000,000,000 cubic feet in the Madden
reserve would suffice for 60 lockages a day. The supply will, there-
fore, be sufficient to operate the three sets of locks at their limiting
practicable capacity, considered to be 56 lockages per day.
Capcflrfy in net tons.-The average number of net vessel-tons,
Panama Canal measurement, handled per commercial lockage during
the period of the past, five fiscal years was 5,000. This average could
have been increa-ed greatly if conditions had demanded greater use
of tandem lockages; and studies have shown that it is practicable to
raise the average at least to 6,400 net tons per lockage.
Twventvy-iven lockagges per day at 5,000 tons per lockage allows an
annual traffic of 49,000,000 net tons; at 6,400 tons per lockage this
would be ';,8 00000,000 it tons. It is safe to state that the present ca-
pnacity of the Canal is 60,000,000 to 65,000,000 Panama Canal net tons
per year.
Ultiimate capacity.-Following the completion of the third locks
there will be a period of about one month, during the overhaul of the
Atlantic locks, when the lockage capacity will be 48 per day and for
about three months additional (balance of dry season) the lockage
capacity will be 56 per day, the water supply being sufficient for at


least 56 daily lockages. The minimum lockage capacity on the Pacific
side during overhaul will be 50 per day.
Based on 48 lockages per day with 6,400 net tons per lockage the
-capacity with the third set of locks would be 112,000,000 tons per
year, and at 7,000 tons per lockage it would be 122,000,000 tons. For
56 lockages a day the average of 6,400 tons per lockage would mean
130,000,000 a year and 7,000 tons would mean 143,000,000 a year. It
is believed the increasing size of ships transiting the canal will
bring the average of tons per lockage to 7,000 by the time the daily
average number of lockages reaches 48.
Growth. of traffic.-The average number of lockages per day is
now about 17, the Panama Canal net tonnage of transition ships
about 30,000,000 tons per year. It seems a fairly safe prediction
to estimate the growth of traffic as not over 10,000,000 Panama Canal
net tons per decade, and to estimate that the third locks will be
required in from 30 to 35 years. This would be approximately
1960 to 1965, and on such basis work should begin about 1950.
Estimates or prophecies of the extent of traffic in the future can,
from the nature of things, have very little accuracy except through
accidental coincidence. Many unforeseeable factors affect the traffic,
which might be greatly retarded or expanded by such divergent
things as general business conditions in the United States, Europe,
South America, or eastern Asia, relative output of oil fields, demand
for nitrates, the routing of shipments of grain, national customs
tariffs, etc. Hence the importance of careful recording of current
traffic and at least annual reports on its extent and development, to
afford the best possible data for the determination of steps to be
taken to assure that the capacity of the canal shall be adequate to
commercial and naval needs. It is clear that there will be a con-
tinuing increase of traffic through the Panama Canal, but it is im-
possible to predict the rate of this increase with any degree of ac-
curacy, and hence it is a very apparent and important duty of the
governor of the canal to study the growth of traffic from year to
year, so that lie may be able to give to Congress 10 or 12 years'
notice of the time when the third set of locks is likely to be needed.
Hours of operatin,.-ThC use of the present canal has not as yet
reached a point at which operation throughout the 21 hours of the
day is necessary in order to handle the traffic. The canal nowv oper-
ates from approximately 6 a. mn. to 11 p. m. Vessels are dispatched
through the canal from morning until such time in the afternoon
as it is impracticable for the ships to pass through Gaill:rd Cut
before dark. Ships arriving too late for through transit are given
partial transit; that is, locked from the Atlantic to Gatun Lake or
from the Pacific to the Pacific end of Gaillard Cut, there to be


tied up for the night in readiness for an early start the following
morning. From time to time there have been suggestions that the
canal should put into effect a schedule of full 24-hour operation.
However, upon explanation that pri-ent traffic does not warrant
employment of additional force necessary for such operation and
that there is an element of danger in passing thrulghll Gaillard Cut
at night, those who have made the suggestions have apparently been
satisfied that the present operating arra n ge inllts are suitable for
the present traffic.
Under the present law, tolls on commercial vessels using the canal
are levied at $1.20 per net ton on laden ships and $0.72 on vessels
in ballast on the basis of tonnage determined by the Panama Canal
rules of measurement, with the proviso that the amount collectible
shall not exceed $1.25 per net ton or be less than $0.75 per net ton
as determined under the rules for registry in the United States.
This requires that tonnage be determined and tolls recluiiLnd on two
bases, and as the United States rules of measurement are considered
somewhat arbitrary and are subject to changes, the dual system
results in confusion and annoyance. Occasion ally on small vessels,
suchli as tugs, the United States rules indicate a negative net toilnnage,
and such vessels make the transit without payment of tolls.
The canal administration has advocated consistently the adoption
of the Panama Canal rules only as the basis of tolls, and in recent
years has suggested that if they be adopted the rates of tolls should
be set at $1 per net ton for laden ships and $0.60 for ships in ballast,
which would return approximately the sa me revenue as is collectible
now. This plan has met opposition from operators of United States
general cargo vessels for the reason that it would result in a slight
increase in the charges against this type of vessel.

In connection with the proposal to adopt Panama Canal rules of
Iniea-uirement as a single basis of tolls it has been suggested by -tearm-
ship opera tors that if this basis were adopted the rates should be
reduced to 80 cents per net ton for laden vessels with a conrI-pond-
ing reduction in the rate for vessels in ballast. Other operators have
suggested a m11xinnmi limit on the amount of tolls collected from any
one vessel, either for a single transit or for its :!ggreitt;ie transit
during a year.
The United Staitcs is obligated to the treatment of ve.-1- of all
nations on teri mi- of ent ire equality and some of the propoial- which
have been made would, if adopted, be discriminatory. However,
there is no tblig-at ion against an even-lhanded reduction or increase in


tolls if it should be found advisable from the viewpoint of national
economy to make a change.
It is alleged that the canal is earning a handsome monetary re-
turn on the investment, and it is pertinent to examine whether this
is the case. The form of financial statement in use, which was not
devised by the can;il adindii irnti'in. is susceptible of misinterpreta-
tion. The financial statements have wholly disregardedl interest dur-
ing the construction and developineiit periods, as well as the excess
cost of operation over earnings for the earlier years, and have
considered a divi.-ion of the construction cost between the so-called
commercial and defense in\e-t iiinnts. This division gives the
"L mniii' rcial capital inve-t mnt at $273,273,818.51 and the na-
tional defense capital investmn't at $113,127,337.73, or a total of
This form of fiinanciald statniiicnt for the purpose of determining
the it di-i egards almost half of the investment. Taking the so-called
coninijIviral capital ilmn.-t ient as mentioned above, there is, of
course, a 'atisfactory rate of interest being earned, but on the true
investment the cominmerial warning :rire approximately 3 per cent
only.' At the curriient borrowing rate for the Treasury, which is
ahbouut 4 per cent, the canal is not yet earning the annual interest
ch iarge.
It is to be noted that the preVc-nt toll rates were fixed by the
Pananma Canal act of Augii.t ;24. 1124 and the President's procla-
mation of November 13 of that year. Thle rates have not been in-
crea -ed to conform to the reduced purchasing power of the dollar,
whereas costs of operation and maintenance and (presumably)
ocean freight, rates have increa-ed in conformity to the reduced
dollar. It may therefore be .tated that in effect the tolls have
actually been reduced by about 40 per cent since the canal was
opened to commerce. It may be here stated, as of interest in this
connection, that the tolls collected at the Suez Canal, which were
revised downward ion Jaiuiary 1, 1929, exceed even now those of
the Panama Canal approximately 33 per cent for loaded vessels and
approximately 21 per cent for ve .sels in ballast, in spite of the fact
that the older canal cost less than one-third the sum invested in the
American canal.
Ilie agitation for l\\er rat'-- has come entirely from United
States operators of vr.-els and representations have been made that
lower tolls would be an aid to American shipping. For the calen-
dar year 1928 foreign ships paid A.4.8 per cent of the tolls collected
SA statement of thvi account of the IPanama Canal with the Treasury of the United
-States is prrivrntl"'f in Sec. V, T:nile 59.


by the Panama Canal, noncoastwise United States ships 12.6 per
cent, and intercoastal vessels of the United States 32.6 per cent.
A. lowering of the canal tolls below the value of the service ren-
dered should be considered in the nature of a subsidy to shipping,.
and each million dollars of tolls reduction would represent a sub-
sidy of $548,000 to foreign shipping, of $326,000 to United States
shipping not in competition with foreign shipping, and of only
$126,000 to those ships of the United States which are in competi-
tion with foreign flags. It is seen that as far as United States
shipping is concerned the greatest reduction would be to vessels
engaged in the intercoastal trade of the United States. These ves-
sels are protected against competition by foreign lines and their
competition is with the railroads of the United States. As a mat-
ter of national policy the effect of lower canal tolls on the railroads
should be given careful consideration.

The Panama Canal is in need of additions and extensive improve-
ments. Two of the most important of these have already been ini-
tiated, viz, the building of the Madden Dam at Alhajuela, and the
widening or deepening of the present canal channel where necessary
for the better handling of traffic.
When the canal was opened to navigation a building program was
under way which contemplated the gradual replacement of the tem-
porary type wooden buildings used for residences, schools, police
stations, etc., by houses of a more permanent type and more suitable
for permanent occupancy. When the war began in 1917 the in-
terest of the United States was naturally diverted to more impor-
tant matters, and this program was discontinued; and the policy of
economizing in national expenditures which has prevailed since the
war ended has not permitted the resumption of work on this pro-
gram for building replacements except on a very small scale..
It is highly important that this replacement, program should be
more actively pursued in the future, as it will be difficult, even with-
ample annual appropriations, to replace the buildings at a rate-
which will conform to the deterioration of the existing buildings.
Another important improvement which has been contemplated for
some yea rs, and which will be undertaken when the funds become-
available, is the removal of the dredging organization's repair plant
and mooring station from Paraiso to Gamboa. At its present loca-
tion it is a danger to shipping, and is itself exposed to danger from
shipping, and, furthermore, it is established on the wrong side of the
sliding area in the cut. It may be mentioned that the dredging
organization is occupying at Paraiso construction-day shops and


Another item of importance which is necessary for consideration
by Congress is the adoption of a system of retirement for employees
better adapted to the conditions of tropical service than is the present
national retirement law. The present law neither provides annuities
sufficient to care for old people who have to seek new homes on their
forced departure from the Canal Zone nor allows employees to retire
at an age advantageous to themselves or the canal. Employees tend
to remain in the service beyond the time of their greatest usefulness
and when they should be replaced by younger personnel, better fitted
for doing work with the vigor and promptness required by commerce.
These needs have been. or will be, amplified in special reports, but
their importance is such as to warrant mention in the annual report,
especially in connection with the subject of expenses and commercial
returns from the canal.


The Republic of Pannma has constructed improved highways in
the western portion of the Republic up to the Canal Zone line;
between such improved highways and the capital of the Republic,
the city of Panama, there is no adequate highway connection. It
would seem incumbent, upon the United States, as a moral obligation
to the Republic of Panama, to provide as speedily as possible a suit-
able highway across the zone, with ferry service across the canal, in
order to give land connection between the two parts of the Republic
which have been separated by the Canal Zone. The road, ferry, and
ferry slips are estimated to cost. $1,000,000. This is a separate mat-
ter from the proposed trans-Isthmiam highway to connect Panama,
Colon, and Porto Bello, all of which lie on the east side of the canal
and are not separated as a result of its construction.
The proposed ferry and highway to the border will be links in the
eventual Pan American Highway. It is important that the United
States do promptly its part in that improvement.


The establishment of commercial air mail, passenger and express
services to and from the Canal Zone during the past fiscal year, cou-
pled with projected developments of further services, was the most
important occurrence in the year. For the present these services are
using canal harbors, Army fields, or fields in Panama. It is to be
presumed that with the growth of this business the United States
will make adequate provision for the needs of commercial aircraft,
and investigations as to sites. equipment, etc., are under way.

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