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 ...


This item has the following downloads:

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1r- w sale by the Superintendent of Documents, Washington, D. C. -

Price 25 cents

Summary ------------------------------------------------------- I
Business operations------------------------------------------...... 2'
Net revenue of the canal and its auxiliaries------------------------ 2
Services rendered by the canal to shipping ----------------------- 3


ITraffic in 1931L,------------------------------------------------- 5
Proportion of tanker traffic------------------------------------- 7
Proportion of tank ships to total traffic---------------------- 8
Proportion of tanker tonnage to total tonnage---------------- 9
Proportion of tolls from tank ships to tolls from all vessels ---- 9
Tanker argoes -------------------------------------------_-- 9
Nationality of vessels------------------------------------------ 10
Tons of cargo carried------------------------------------- 11
Commercial traffic through the Panama Canal, by nationality of
vessels--------------------------_-------------------- 11
Net tonnage of vessels----------------------------------------- 11
Vessels entitled to free transit and launches of less than 20 tons net
measurement------------------------------------------ --- 12
Trade routes and cargo ----------------------------.----------- 12
Cargo shipments through the Panama Canal during the past
four fiscal years, segregated by principal trade routes------- -13
Principal commodities--- --------------------------.---------- 15
Commodity movement:
Atlantic to Pacific------------------------------------ 16
Pacific to Atlantic------------------------------------ 16
Classification of vessels---------------------------------------- 19
Laden and ballast ships------------------------------------ 20
Data in statistical section (Sec. V) ------------------ ------- 22
Dual measurement system---------------------------------------- 22
Average tonnage, tolls, and tons of cargo per vessel ------------------- 24
Hoursof operation---------------------------------------------- 25
Operating hours for complete transit---------------------------- 25
Limits for starting on partial transit----------------------- ----- 25
Lockages and lock maintenance ------------------------------------ 26
Gatun Locks------------ ------------------------------ ---- 26
Pacific Locks----------------------------------------------- 27
Power for canal operation------------------. ----------------------- 27
Water supply -------------------------------------------------_____--- 28
Dry season -----------------------_------------------------- ____ ___ 29
Madden Dam project- -------------------------------.----------- 29
General description of project-------------------------- ------- 30
Lands--------------------------------------..-------------- 32
Power transmission line----------------.....---------------.------- 32
Other preliminary work -----------------------------_---- ----- 32
Seismology --------------------------------------------------- ___... 33


Maintenance of channel and improvement projects-------------------- 33
Canal improvement work--------------------..--__---------------________ 34
Project No.l.-- .---------------------------_--- ___----------- 34
Project No. 1-a---------------------------------___-------- 34
Project No. 1-b----------------------------------_-._-------_ 34
Project No. 3 -------------------------..-----------------._____ 34
Project No.4-_--.---------------------------_------------- 35
Project No. 5 (revised)-----------------------------------.... 35
Auxiliary dredging ------------------------------------------__________ 35
France Field fill-----------------------------------------.. 35
Stock pile, United States Army----------------------------- 36
Colon fill --------------------._------------------- -------36
Dredging around grounded vessel --------------------------- 36
Disposition of excavated material-------------------------------.____ 36
Equipment----------------------------------------------- 36
Slides----------------------------------.----------------------- 37
East Cascadas slide------------------------------------------- 37
West Whitehouse slide---------------------------------------- 37
Southwest La Pita slide---------------------------------------- 37
West Lirio slide----------------------------------------------- 37
East Lirio slide----------------------------------------------- 38
East barge repair slide----------------------------------------- 38
East Culebra slide-------------------------------------------- 38
West Culebra slide-------------------------------------------- 38
Cucaracha slide----------------------------------------------- 38
Cucaracha signal-station slide----------------------------------- 38
South Cucaracha slide----------------------------------------- 38
Cucaracha village slide---------------------------------------- 38
Cartagena slide----------------------------------------------- 39
Miscellaneous slides ------------------------------------------ 39
Ferry service----------------------------------------------------- 39
Aids to navigation--- --------------------------------------------- -- 39
Accidents -------------------------------------------------------- 40
Salvage operations-__--------------------------------------------- 41
Rules and regulations--------------------------------------------- 42


Mechanical and marine work--------------------------------------- 43
Amount of work completed------------------------------------- 44
Origin of work completed-------------------------------------- 44
Dry docks and marine work ----------------------------------- 44
Other work --------------------------------------------------- 46
Plant-------------------------------------------------------- 46
Financial------------ -------------------------------------- 47
Coal -------------------------------------------------------- 47
Fuel oil, Diesel oil, gasoline, kerosene-------------------------------- 48
Fuel and Diesel oil-------------------------------------------- 48
Obsolete and unserviceable property and equipment- ------------------ 49
Ship chandlery and other storehouse supplies------------------------ 49
Purchases and sales in the United States----------------------------- 49
Harbor terminals-------------------------------------------------- 50


Commissary division--------------------------------------------- 51
Sales------------------------------------------------------- 51
Purchases--------------------------------------------------- 52
Place of purchase- ---------------------------------------- 52
Manufacturing plants, etc-------------------------------------- 53
Hotels and restaurants-------------------------------------------- 53
Building construction and maintenance----------------------------- 54
Quarters for employees-------------------------------------------- 54
Gold employees. --------------------------------------------- 54
Silveremployees- -------------------------------------------- 55
Lands and buildings---------------------------------------------- 55
Panama Railroad Co. lands and leases--- ----------------------- 55
Licensed agricultural lands in the Canal Zone--------------------- 56
Motor and animal transportation ---------------------------------- 56
Panama Canal Press---------------------------------------------- 56
Farm industries-------------------------------------------------- 57
Plantations-------------------------------------------------- 57
Dairy farm--------------------------------------------------- 57
Cattle------------------------------------------------------ 57
Experimental gardens----------------------------------------- 57
Plants of the year----------------------------------------- 58
Telephones and telegraphs---------------------------------------- 59
Operations with Panama Railroad funds -- --------------------------- 59
Panama Railroad Co---------------------------------------------- 60
Canal Zone for orders----------------------------------------- 60
Panama Railroad Steamship Line------------------------------- 61


Departments -------_--_----------------------------------------- 62
Operation and maintenance----------------------------------- 62
Supply ------------------------------------------------------- 62
Accounting--------------------------------------------------- 62
Executive- ------------------------------------------------. 62
Health----------------------------------------------------- 63
Changes in organization and personnel------------------------------- 63
Force employed--------------------------------------------------- 64
Gold employees ---------------------------------------------_ 64
Recruiting and turnover of force---------------------------- 66
Silver employees _-------------------------------------------- 68
Wage adjustments------------------------------------------------- 68
Gold employees ----------------------------------------------- 68
Alien employees on the silver roll-__--------------------------- -- 70
Complaints board-----------_------------------------------------ 71
Public amusements and recreation----------------------------------- 72
Administrative problems----- _------______---------_------------------ -- 74
General program---------------------------------------------- 75
Work in fiscal year 1931--------------------------------------- 75
Work in fiscalyear 1932--------------------------------------- 75
Estimates for fiscal year 1933----------------------------------- 76
Explanation of immediate needs- ------------------------------- 76
Balboa high school and junior college------------------------ 76
Quarters for employees- ---------------------------------- 77


Administrative problems-Continued.
Explanation of immediate needs-Continued. Page
Quarters for American employees- -------------------------- 77
Quarters for alien employees-------------------------------- 77
Enlargement of dry dock at Cristobal----------------------- 78
Police station and magistrate court at Balboa---------------- 78
Library building at Balboa Heights------------------------- 78
Other improvements--------------------------------------- 79
Retirement and superannuation--------------------------------So..... 80
Capacity of canal--------------------------------------------_ 81
Water supply.--------------------------------------------- 82
Madden Reservoir----------------------------------------- 82
Capacity in net tons ------------------------------------- 83
Ultimate capacity ---------------- ----------------------- 83
Sea-level canal-------------------------------------------- 83
Growth of traffic------------------------------------------ 84
Hours of operation---------------------------------------- 84
Interoceanic Canal Board-------------------------------------- 85
Basis of levy of tolls------------------------------------------- 85
Equity of present tolls----------------------------------------- 91

Population ------------------------------------------------------- 92
Public health--.__---_-------------------------------------------- 93
Vital statistics------------ ---_------------------------------- 93
General death rate ---------------------------------------- 93
Death rate from disease alone- ----------------------------- 93
Birth rates, including stillborn------------------------------ 94
Death rate among children under 1 year of age--------------- 95
Malaria --------------------------------------------------- 95
Trypanosomiasis in animals------------------------------------ 96
Health department dairy--------------------------------------- 97
Garbage disposal---------------------- ------------------------ 97
Hospitals and dispensaries------------------------------------- 97
Quarantine and immigration service--------------------------------- 98
Municipal engineering- -------------------------------------------- 99
Water supply------------------------------------------------- 99
Sewer systems------------------------------------------------ 100
Road construction-------------------------------------------- 100
Thatcher Highway ----------------------------------------- 100
Madden Road-------------------------------------------- 102
Paraiso Road--------------------------------------------- 102
Farfan Beach Road--------------------------------------- 102
Water purification plants and testing laboratory------------------ 102
Public order------------------------------------------------------ 102
Fire protection---------------------------------------------------- 104
District attorney, office of------------------------------------------ 104
Marshal -------------------------------------------------- ---- 105
District court. ----------------------------------------------------------------- 105
Magistrates' courts--------------------------------------------- 105
Balboa----------------------------------------------------- 105
Cristobal... ------------------------------------------------- 106
Public-school system -_------------------------------------------- 106
Proposed high school, Cristobal--------------------------------- 107


Postal system.-------....------------------------------------------ 108
Air mail service---------------------------------------------- 109
Customs--------------------------------------------------------- 110
Movement of vessels------------------------------------------ 110
Merchandise for Republic of Panama--------------------------- 110
Free entry merchandise---------------------------------------- 110
Violations of customs regulations------ ------------------------- 110
Drug traffic------------------------------------------------- 110
Household inspections----------------------------------------- 111
Special customs service ---------------------------------------- 111
Canal Zone for orders----------------------------------------- 111
Prohibited aliens------------------------------------------------- 111
Shipping commissioner--------------------------------------------- 111
Administration of estates------------------------------------------ 112
Licenses and taxes---_-------------------------------------------- 112
Immigration visas---------- --------------------------------------- 113
Relations with Panama-------------------------------------------- 113
Commercial aviation -------------------------------------------- 113
Codification of laws of the Canal Zone -- --------------------------- 114


List of tables:
"A"-Statement of account, the Panama Canal and United States
Treasury-Cash withdrawals and deposits on account of Panama
Canal----------------------------------------------------- 118
General balance sheet and analyses------------------------------ 119
Assets (tables 1 to 11, Inclusive)------------------------------- 119
Liabilities (tables 12 to 18, inclusive)---------------------------- 131
Operations for profit and loss (tables 19 to 23, inclusive)----------- 136
Miscellaneous (tables 24 to 33, inclusive)------------------------ 142
Movement of traffic through canal:
Origin and destination of cargo passing through the canal, fiscal year
1931, Atlantic to Pacific------------------------------------- 152
Origin and destination of cargo passing through the canal, fiscal year
1931, Pacific to Atlantic------------------------------------- 152
Statement showing, by nationality, the number of transits of vessels,
aggregate Panama Canal net tonnage, tolls assessed, and tons of
cargo carried through the Panama Canal from the opening of the
canal, August 15, 1914, to June 30, 1924, and by fiscal years ending
June 30 from fiscal year 1925 to 1931, inclusive---------------- 153

Map of Canal Zone and vicinity, with special reference to the Madden Dam
project and new highways.
Plate 1. United States Navy airplane carrier Saratoga in Pedro Miguel Lock.
2. Electrical division field office- and shops, Balboa.
3. Aerial photographic map.of Madden Dam site.
4. Madden Dam project; transmission line towers, near Quebrada Roque,
looking toward Summit, June, 1931.
5. New ferry boat President Roosevelt on opening trip across canal-Cerro
Paraiso in background.
6. Mindi dairy herd of pure-bred Holsteins.
7. Functional organization chart, the Panama Canal and Panama Railroad
Co., June 30, 1931.
8. Entrance to Gorgas Hospital, with new annex to nurses' quarters on
9. First of two 1,000,000-gallon steel water tanks being erected at Mount
Hope for Atlantic end water supply.
10. New concrete water tanks, 1,500,000-gallon capacity, on Engineers
Hill, south of Corozal, for Pacific end water supply.
11. Thatcher Highway; power drag scrapers making cut near station 315,
April 23, 1931.
12. Architect's model of proposed Cristobal high school.
13. Graph of principal commodities shipped through Panama Canal, fiscal
year 1931.
14. Graph of origin and destination of Pacific-bound cargo, 1931.
15. Graph of origin and destination of Atlantic-bound cargo, 1931.
16. Graph of tonnage of cargo over principal trade routes, fiscal year 1931.
17 Graph of tonnage of cargo passing through the Panama Canal, by fiscal
18. Graph of percentage of cargo carried by ships of United States and
foreign registry.
19. 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.)
20. Graph of number of commercial vessels transiting Panama Canal, by
fiscal years.
21. Graph of tolls collected, by fiscal years.


The material in the annual report of the Governor of the Panama Canal,
published in this volume, is to a large extent a summary of data presented in
annual reports from the heads of departments and divisions in the canal organi-
zation; the latter, regarded as appendixes to the report of the governor, are not
printed. The annual report of the Panama Railroad Co. is published separately.
The reports of the heads of departments and divisions, as listed below, may be
consulted at the Washington office of the Panama Canal or the office of the
governor at Balboa Heights, Canal Zone:
Engineer of maintenance, report of-
Dredging division, report of superintendent.
Madden Dam project, report of designing engineer.
Assistant engineer of maintenance-
Electrical division, report, of electrical engineer.
Municipal engineering division, report of municipal engineer.
Division of lock operation-
Atlantic locks, report of superintendent.
Pacific locks, report of superintendent.
Office engineer, report of.
Section of surveys, report of chief.
Gatun Dam and back fills, report of supervisor.
Marine division, report of superintendent.
Mechanical division, report of superintendent.
Supply department, report of chief quartermaster.
Accounting department, report of auditor.
Health department, report of chief health officer.
Executive department-
Division of civil affairs, report, of chief.
Police and fire division, report of chief.
Division of schools, report of 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.
Land agent, the Panama Canal and Panama Railroad Co., report of.
Purchasing department, report of the general purchasing officer and chief of
Washington office.



September 1, 1931.
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, 1931.
H. BURGESS, Governor.

Traffic through the Panama Canal during the year ending June 30,
1931, was appreciably less than in the three fiscal years preceding,
and both revenues and expenses declined. The services afforded to
shipping were, however, maintained according to the established
The number of transits of commercial vessels during the year was
5,529, as compared with 6,185 in 1930, a decrease of 656, or 10.6 per
cent. Net tonnage of transiting vessels totaled 27,792,146 tons,
Panama Canal measurement, as compared with 29,980,614 tons in
1930, a decrease of 7.3 per cent. Tolls levied during the year on
commercial seagoing vessels amounted to $24,645,456.57 as compared
with $27,076,890.01 for 1930, a decrease of $2,431,433.44 or 9 per
*cent. Cargo carried through the canal during the year amounted'to
25,082,800 long tons as compared with 30,030,232 tons for 1930, a
decrease of 16.5 per cent.
The decrease in the number of commercial transits and the amount
of cargo carried through the canal, occurred among vessels of all the
major trade routes with the exception of that between Europe and
the west coast of the United States and Canada; this route showed a
slight increase in transits with a decrease in cargo tonnage carried.
Details are presented in Section I.
The primary function of the canal is the dispatch of vessels front
ocean to ocean with the maximum safety and the minimum of delay.
Throughout the year the canal force maintained its high standards
of expeditious service, not only in the actual transiting of ships, but
in the various supplementary services to shipping. Included in the


year's traffic but not counted with the commercial vessels were the
transits of the scouting and control fleets of the United States Navy,
from the Atlantic in February and returning in March. These
passages occurred during the time of overhaul of Gatun Locks but
were accomplished without notable accident or interference with
commercial traffic.
Secondary only to the operation and maintenance of the canal is the
function of supplying various services to ships. For doing this, and
also caring for canal plant and equipment and furnishing necessary
services to the personnel engaged in canal operations, the Panama
Canal and the Panama Railroad Co. maintain and operate repair
shops, dry docks, coaling stations, fuel oil handling plants, adequate
terminal facilities for the transshipment of cargo, storehouses for the
sale of ships' chandlery supplies, commissaries for the sale of foodstuffs,
a railroad across the Isthmus, a steamship line plying between the
United States and the Canal Zone to bring supplies and transport
employees, and other essential services. All of these services,
furnished by the Panama Canal and the Panama Railroad, are under
coordinated centralized control, which tends to economy and efficient
operation. Other important functions of administration and govern-
ment 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 systems; hydrographic and meteoro-
logical observations; steamship inspections; aids to navigation;
control of commercial aircraft, etc. The work in many of these
services was less in the fiscal year 1931 than in preceding years but
in others, especially community services, there was no decrease..
Details are presented in the several sections of the report.
The net income from tolls and other miscellaneous receipts known
as canal revenue was $14,847,227.21. This was less than the net
revenues for the fiscal year 1930 by $3,235,224.57, or approxi-
mately 18 per cent. These revenues for the past five years have
been $15,611,093.80 in 1927, $18,224,844.86 in 1928, $17,729,775.01
in 1929, $18,082,451.78 in 1930, and $14,847,227.21 in 1931. With
deduction of $7,512,922.19 as a fixed capital charge, the canal
operations showed a surplus of $7,334,305.02 in 1931. Based on an
interest-bearing capital indebtedness of $535,571,809.48 at the end
of the fiscal year 1931, the net revenue of $14,847,227.21 in 1931 was
equivalent to a return of approximately 24 per cent.


The net profits of auxiliary business operations conducted directly
by the Panama Canal, the most important of which are the electric
light and power system, mechanical shops, material storehouses, and
fuel-oil plants, totaled $562,764.17 as compared with $760,971.66 in
1930, a decrease of $198,207.49, or 26 per cent. These revenues
have been, for the past five years, $876,536.80 in 1927, $736,719.43 in
1928, $737,850.26 in 1929, $760,971.66 in 1930, and $562,764.17 in
1931. With deduction of a fixed capital charge of $836,574.88 in
1931 the business operations showed a deficit of $273,810.71.
The net profits of operations of the Panama Railroad Co., exclusive
of the Panama Railroad Steamship Line, but including commissaries,
docks, coaling plants, cattle industry, and cold-storage plants, were
$991,383.72 as compared with $1,523,874.82 in 1930, a decrease of
$532,491.10, or approximately 35 per cent. These profits in the past
five years have been: $1,644,189.37 in 1927, $1,600,283.61 in 1928,
$1,693,873.17 in 1929, $1,523,874.82 in 1930, and $991,383.72 in 1931.
Total net revenue for the year from all sources (Panama Canal and
Panama Railroad, exclusive of the Panama Railroad Steamship Line)
was $16,401,375.10 as compared with $20,367,297.72 for 1930, a de-
crease of $3,965,922.62, or about 19 per cent. The corresponding
figures for total net revenue for the past five years have been: $18,-
131,819.97 in 1927, $20,561,847.90 in 1928, $20,161,498.44 in 1929,
$20,367,297.72 in 1930, and $16,401,375.10 in 1931.
The aggregate net revenue from all sources was less than that for
any year since 1925. This shortage is due, primarily, to decreased
shipping activities for the year as compared with the preceding five
Considering the capital invested and accumulated interest on the
investment, the present total capital liability is such that the canal is
not as yet earning the annual interest charge at 4 per cent. 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 occasion to consider a reduc-
tion in tolls.

The most important items of the business of the canal and its
adjuncts, covering principal services to shipping, are expressed nu-
merically in the following table, which presents a comparison of the


activities during the fiscal year 1931 with two years immediately


Fiscal year Fiscal year Fiscal year
1929 1930 1931

Transits of the canal by ships paying tolls..................
Free transits.... .........................................

Total transits of ocean vessels.........................
Average daily transits.
Com m ercial tralffic........ .. .... ......................
F ree transit. - -.... ........-- - --. .....

T otal........ . ................................... ..
Transits of dlaunches inol counted in commercial traffic) ....
Number of luckages during year:
G at u n locks. .............-.. -
Pedro M iguel locks... .. ............................ ..
M i rjflores locks.. ....... ......... .. ..............
Average lockages per day:
Gatun locks.....o ..............................
Pedro Miguel locks..
Alirflores locks.. ----

Tolls levied on ocean vessels............. .................
Tolls on launches (not included in above)...................









524, 645,456. 57

27, 127, 376. 91 27, 076,890.01
1,512.39 617.77

Total tolls................. .................... ----------------------------------- 27,128,889.30

Cargo passing through canal (tons).--....................... 30,663,006
Net tonnage (Panama Canal measurement) of transiting
vessels.......................................... ........- 29,837,794
Cargo per net ion of ocean vessels, including those in ballast- 1.0276
Average tolls per ion of cargo, including vessels in ballast... $0. 88469
Calls at canal ports by ships not transiting canal............ 1,089
Cargo handled and transferred at ports (tons)............... 1,559. 311
Coal, sales and issues tions) ............................... 305,434
Coal, number of ships served other than vessels operated by
the Panam a Canal........................................ 935
Fuel oil pumped (barrels) .................................. 12,951,710
Fuel oil, number of ships served other than vessels operated
by the Panama Canal ................................... 2,358
Ships repaired, other than Panama Canal equipment... 1,087
Ships dry-docked, other than Panama Canal equipment.... 1.56
Provisions sold to ships (commissary sales)................. $1,703,986.72
Chandlery sold to ships (storehouse sales).................. 144,937.36



$1, 570,485. 07

5, 529








Commercial traffic through the Panama Canal during the fiscal
year ended June 30, 1931, was less than in any of the three preceding
fiscal years 1928, 1929, and 1930. This is true with respect to all of
the four features usually considered-number of transits, net ton-
nage, tolls, and tonnage of cargo. With respect to cargo tonnage, that
through the canal in the fiscal year 1931 was also less than in the
fiscal years 1926 and 1927; that is, it was exceeded in each of the five
years preceding.
The fiscal years 1928 and 1929 represent peak years so far in the
history of the canal. In 1930 there was a decrease, relatively slight,
but in the year ended June 30, 1931, it was much more pronounced.
The number of transits of commercial vessels through the canal
in 1931 was 5,529, as compared with 6,185 in the preceding year.
This was a decrease of 656, or 10.6 per cent. The average daily
number of transits in 1931 was 15.15, in comparison with 16.95 in
1930. Transits of naval vessels and other public vessels of the
United States, public vessels of the Republics of Panama and Colom-
bia, and those transiting solely for repairs, none of which paid tolls,
numbered 568 during 1931, as compared with 600 for 1930. Com-
bining the two, there were 6,097 transits of seagoing vessels during
1931, as compared with 6,785 in 1930, or daily averages of 16.70 and
18.59, respectively.
The net tonnage, Panama Canal measurement, of the 5,529 com-
mercial vessels transiting in 1931, was 27,792,146, a decrease of 7.3
per cent under 1930.
Tolls levied during the fiscal year 1931 amounted to $24,645,456.57,
and were 9 per cent less than in the fiscal year 1930.
Cargo carried through the canal aggregated 25,082,800 long tons
in 1931, a decrease of 16.5 per cent under that of the fiscal year 1930.
Cargo declined more heavily in comparison with the preceding
year than any other feature. The principal factor in this heavy
decline was a large decrease in the Atlantic-to-Pacific movement,
which is made up principally of various manufactured goods coming
from the United States and Europe. The decrease of cargo ton-
nage in this direction was 2,795,296 tons, or 29.5 per cent, in com-
parison with the previous fiscal year. The cargo movement in the
opposite direction, made up largely of raw materials, showed a smaller
decrease in comparison with 1930-2,152,136 tons, or 10.5 per cent.
Cargo movement declined on all of the major trade routes.
The decreases in numbers of transits of commercial vessels in the
fiscal year 1931, as compared with the preceding year, occurred


among vessels on all of the major trade routes with the exception of
that between Europe and the west coast of the United States and
Canada; on this there was an increase of 46, or 4.5 per cent, in tran-
sits, although there was a decrease of 27.7 per cent in the cargo ton-
nage on this route. There was little change in the trade between
Europe and Australasia, the figures showing one more transit in 1931
than in 1930. In the important United States intercoastal trade
there occurred a decrease of 331 transits (16.3 per cent). The decline
in tanker traffic contributed largely to this decrease, this class of
traffic accounting for 156 fewer transit than in the previous year.
The trade between the east coast of the United States and westcoast
of South America declined 181 transit, or 26.3 per cent, in comparison
with the previous fiscal year; the slump on this route, which is third
in importance of those using the canal, was due largely to lessened
shipmefits of iron ore and nitrate and to the suspension of an important
passenger and cargo line between Chilean ports and New York.
The trade between the United States and the Far East decreased 28
transit, or 6.4 per cent; that between Europe and the west coast of
South America declined 88 transit, or 16.2 per cent; and that be-
tween the United States and Australasia 49 transit, or 37.4 per cent.
The receipts from tolls reported by the accounting department for
the fiscal year 1931 were $24,644,550.39. This figure includes tolls
on launches, which are not included in "commercial traffic" of ocean-
going ships, and has been adjusted in accordance with refunds for
overcharges and supplemental collections in the event of undercharges.
Those items account, for the difference of $906.18 between the account-
ing figure and the figure for tolls levied on commercial traffic as re-
ported in the following studies of traffic, which are based on tolls
levied at time of transit.
Commercial traffic figures for each fiscal year since the canal was
opened to navigation are shown in the table below.

Fiscal year ended June 30 rof net tonnage Tolls cargo

19151......---------------.--........--------------------...... 1,075 3,792,572 $4,367,550.10 4,888,454
19162........................................... --------------------------------------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..--........................................ 2,060 6, 574, 073 6,438,863.15 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 19,567,876
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
1928.---...................................... 6,456 20,458,634 26, 944, 499. 77 29,630,709
1929-------------------------------------......................................... 6,413 29,837,794 27,127,376.91 30,663,006
1930.....--..........-...-..........--............ 6,185 29. 980,614 27,076, 890. 01 30,030, 232
1931.--------.......---------..----...--------..--------- 5, 529 27,792,146 24. 645,.456.57 25,082,800
Total--....----------------........----------....... 64,QG60 291,747,142 272,157,451.32 301,062, 237
I Canal opened to traffic Aug. 15, 1914.
3 Canal closed to traffic approximately 7 months of fiscal year by slides


During the fiscal year 1931 the variations in numbers of transit
from month to month were slightly greater than in preceding years.
The range was from the minimum of 400 in June to 517 in October, a
difference of 117 vessels, or 29.25 per cent of the lower number. In
1930 the variation was 86, in 1929 it was 116, and in 1928 it was 108.
In 1931 the daily average number of transits ranged between 16.68 in
October, and 13.33 in June, a difference of 3.35. The monthly
average of transits was 461, in comparison with 515 for the previous
year. Monthly transits and tolls, with daily averages, for commer-
cial vessels only, were:


August...------ ..----.- --------------------------
September.--.- ------------------------------ ...------
November------------------. -------------..........---
January-------------------------------------- ------- -
February-------. ---. --. ---------. -----. -- --------. -
M arch-------------- -..--.. ----. -. ..- ..-- .---.----
April---.-----.. ------ ...- --------------------------
M ay .. ... .- -...-....-- -----.- ---......-. .........
June-----...-----------------... ----------- --.. -

Total for month



Daily averages

Transits Tolls

1 -- .---



2,080, 230.42
2,057,103. 58
2,288, 982.08
2,098, 357.36


15. 74
15. 00
15. 27

14. 16

24,645,456.57 1 15.15

67,104. 21
68, 570. 12

67, 144.97

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


November. --
Total... -

Number of





6, 185 5, 529

Panama Canal net


2, 468, 280
2, 747,949
2. 505,859
2, 479,096



129, 980,614 27, 792, 146

Tons of cargo


2,845, 643
2, 534,631
2,611, 632
2, 558, 238



2, 402, 047
2, 059, 582
2, 263, 200
2,166, 884
1,915, 507




2, 327,437.86
2, 232,763.00

27, 076,890.01


$2, 10, 511. 82
2, 057,103. 58
2, 288,982.08
2,108, 140.42
1, 9064,434.22

I 24, 645,456. 57


Transits of tank ships during the fiscal year 1931 totaled 944, a

decrease of 274 or 22.5 per cent below the 1,218 of the preceding year.
The 1931 transits of tankers were the lowest for any fiscal year since

77272-31- 2


the beginning of the heavy movement of mineral oils from the Cali-
fornia field in the fiscal year 1923. Tanker traffic in 1931 comprised
17.1 per cent of the total commercial transits during the year; made
uip 19 per cent of the total net tonnage (Panama Canal measurement)
paid 19 per cent of the tolls collected; and carried 20.3 per cent of the
cargo which passed through the canal.
Transits of ships engaged in general traffic (all commercial shipping
exclusive of tanker traffic) was 382, or 7.7 per cent, fewer than the
number transiting in 1930. With respect to net tonnage (Panama
Canal measurement) tank ships decreased 1,279,265 tons, or 19.5 per
cent, while general shipping decreased 909,204 tons, or 3.9 per cent,
a net decrease on all traffic of 2,188,468 tons, or 7.3 per cent. Tolls
collected from tank ships decreased $1,086,643.14, or 18.8 per cent,
while tolls collected from general cargo carriers decreased $1,344,-
790.30, or 6.3 per cent, a net decrease on all classes of traffic of
$2,431,433.44, or 9 per cent.
Omitting transits of public vessels of the United States and other
vessels exempt from the payment of tolls, the number of ocean-going
vessels transiting the canal averaged 15.2 throughout the year. Of
this number tank ships averaged 2.6 transits daily, the balance of
12.6 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 compared
with the corresponding figures embracing all other classes of traffic.
The figures are for the fiscal years 1923 to 1931, inclusive, covering
the era during which tanker traffic has been a very large part of the
total movement.
Proportion of tank ships to total traffic

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

1923 ----- ----------- -- ---....--.----- 913 3,0 54 3,967 2.5 8.4 10.9
1924 ..................... ...-- .............. 1,704 3,526 5,230 4.7 9.6 14.3
1925 ............ .........................--- 1,079 3,594 4,673 3.0 9.8 12.8
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 14.0 17.6
1929 ....................................... 1083 5,330 6,413 3.0 14.6 17.6
1930....................................... 1,218 4,967 6,185 3.3 13.6 16.9
July.. ....... ................ -120 368 488 3.9 11.8 15.7
August .......................--.......--- .. 95 370 465 3. 1 11.9 15.0
September.---------- -----------.......--......... 94 364 458 3.1 12.1 15.2
October ......-......................... ----93 424 517 3.0 13.7 1i 7
November........--- ................. 83 396 479 2.8 13.2 16.0
December ............-........--......... 77 418 495 2.5 13.5 16.0
January ............................... 78 398 476 2.5 12.8 15.3
February ............................. 60 371 431 2.1 13.3 15.4
March...........------------------.......-.. ------... 65 374 439 2.1 12.1 14.2
April ........................- ......... 69 384 453 2.3 12.8 151
May. .............--------------------------------.. 61 367 428 2.0 11.8 18.8
June.......- .........-- ..... ..... ..... 49 351 400 1.6 11.7 13.3
Total, 1931----------................--------------- 944 4, 55 5,529 2.6 12.6 15.2


Proportion of tanker tonnage to total tonnage

Percentage of total net
Panamra Canal net tonnage tonnaget t
Fiscal year -______-___________-
Tankers General Total Tankers General Total

1923...-..--------------------- 5,374,384 13,231,40" 18,605, 786 28 9 71. 1 100 0
1924.---------....--.---......----------- 10,212, 047l 15,-936, 931 26, 14R, S78 39. 1 60.9 100.0
1925------------..--....---------- 6,42-1, 622 16,430,529 22, 8.55, 151 28. 1 71. 9 100.0
* 1926........................... 6,343,240 1R, 431.351 24, 7 4,591 25. 5 74.5 100.0
1927------..-----..------------- ........ 7,624, 112 14, 03,703 26,227,815 29. 1 70.9 100.0
1928...------..--.---------------- 60,243, 969 23, 214, 665 29, 4.8, 634 21.2 78.8 100.0
1929.---------...-......-----...----------.. 5,844,263 23, 993, 131 29,837,794 19.6 80. 4 100.0
1930---...---...-------..----..------- 6,564, 138 23,416,470, 29,980,. 14 21.9 78.1 100.0
1931.---------..----...-----..------ 5,264,873 22,507,273 27,792, 146 19.0 81.0 100.0

Proportion of tolls from tank ships to tolls from all vessels

Tolls paid by shipping using cannil Percent-ige of total tolls
Fiscal year
Tankers General Total Tankers General Total

1923---------------...........-.....- $4, 769. 324. 63 $12, 738. 874. 94 $17, 509, 199. 57 27.2 72.8 100.0
1924 ------------------- 9,071,8S35.65 15, 219. 127.S9 24,290,963.54 37.3 Q2 7 100.0
1925-..---.....-..---------.-----. 5,728,302.26 15, 672,221.25 21,400, .23.51 26.8 73.2 100.0
1926 -------------------.5,626,167.03 17, 304, RX8. 05 22, 931, 01.5. 98 24.4 75.6 100 0
1927 ..................... 6,658,806.90 17, 70, 023.21 24,228, 830. 11 27.5 72.5 100.0
1928 -------------------5, 43A. 437. 16 21, 50S, 62. 61 26, 944. 499. 77 20. 1 79.) 100.0
1929. ------------------ 5, 145, F32. 19 21,981,744.72 27,127,376.91 1. 9 81. 1 10.0
1930. ----------.......---..------ 5,78, 963.28 21,307,926.73 27,076.890.01 21.3 78.7 100.0
1931.................... ------------------ 4,682,320. 14 19, 963, 136.43 24,645, 456.57 10.0 81.0 100.0


Cargo carried through the canal in tank ships during the fiscal
year 1931 amounted to 5,102,836 tons, in comparison with 6,071,378
tons in 1930, registering a decrease of 968,542 tons, or 16 per cent.
Of the 5,102,836 tons passing through in 1931, 218,723 tons were
from the Atlantic to the Pacific and 4,884,113 tons from the Pacific
to the Atlantic. The 218,723 tons from the Atlantic to the Pacific
included 31,542 tons of creosote from Europe and Canada with
destinations reported as the United States and Canada, and 187,181
tons of mineral oils from the United States, Mexico, and West Indies,
destined to the United States, Far East, South America, and the
Pacific terminus of the Panama Canal.
The 4,884,113 tong from the Pacific to the Atlantic included
45,911 tons of coconut oil and 12,652 tons of molasses from the
Philippine Islands to the United States; 30,815 tons of molasses from
the Hawaiian Islands to the United States; 12,600 tons of molasses
from the Hawaiian Islands to Europe; and 19,000 tons of whale oil
from Australasia to the United States. Mineral oils from the Pacific
aggregated 4,763,135 tons, of which approximately 81 per cent
originated in California and 19 per cent in Peru and Ecuador; they
were destined as follows: 63.6 per cent to the United States; 24.1 per
cent to Europe; 7.7 per cent to Canada; and the balance, 4.6 per cent


to the West Indies, South America, and the Atlantic terminus of the
Panama Canal.
Of the mineral-oil tonnage carried in tankers through the canal
during the fiscal year 1931, approximately 70 per cent was gasoline,
benzene, and naphtha; 15 per cent crude oil; 13 per cent gas and fuel
oils; and the remainder lubricating oils or kerosene.
Nineteen nationalities were represented in the commercial traffic
passing through the canal during the fiscal year 1931, which was five
fewer than the number passing through in the previous year. Vessels
of United States registry led in the number of transits, as has been
the case during the preceding 12 years. From 1915 to 1918, in-
clusive, transits of British vessels exceeded those of any other country.
In all years the greatest numbers have been either British or United
In the fiscal year 1931 there were 468 fewer transits, or a decline of
16.2 per cent, of vessels of United States registry in comparison with
1930, and British shipping accounted for 146 fewer transits (a decline
of 9.5 per cent) in comparison with the previous year. Transits of
vessels of Danish and Japanese registry made increases of 29 transits
(31.9 per cent) and 30 transits (18.4 per cent), respectively. The
five other leading nationalities (i. e., those contributing to more than
500,000 net tons of shipping during the year) decreased as follows:
Norwegian, 8 transits (2.2 per cent); German, 8 transits (2.1 per cent);
Swedish, 14 transits (11.2 per cent); French, 14 transits (11.3 per
cent); and Dutch, 16 transits (11.3 per cent).
With respect to cargo carried through the canal, vessels of United
States registry carried 47.1 per cent; British vessels, 23.8 per cent;
Norwegian vessels, 6.9 per cent; German vessels, 5.0 per cent; Jap-
anese vessels, 4.4 per cent; Swedish vessels, 2.9 per cent; Danish
vessels, 2.4 per cent; French vessels, 2.0 per cent; and Dutch vessels,
1.9 per cent. Combined, the vessels of these nine nations carried
24,176,896 tons, or over 96 per cent of all cargo that passed through
the canal during the fiscal year.
Cargo carried in the vessels of all the leading nationalities was
low er than in 1930, with the exception of those flying the Danish and
Japanese flags, which showed increases of 19.8 per cent and 9.4 per
cent, respectively. Vessels of Dutch registry showed the largest
proportionate decrease in cargo carried-22.8 per cent under the
preceding year. Cargo carried in British vessels decreased 21.2 per
cent; in United States vessels, 18.6 per cent; in Swedish vessels,
13.3 per cent; in French vessels, 11.9 per cent; in German vessels,
9.1 per cent; and in Norwegian vessels, 4.9 per cent.


Cargo tonnage carried under the principal flags contributing to
canal traffic during the past five years is shown in the following
Tons of cargo carried

1927 1928 1929 1930 1931

United States------- ..-------..------ 15,242,156 14,248,735 14,075,731 14,499,233 11,805,132
British ------------------------- 6,436,785 8,075, 022 8,331,221 7, 572,969 5,971,281
Norwegian ------------ ---------- 1,052,453 1,268,124 1,505,366 1,808,278 1,720,383
German ------------------------- 973,741 1,185,421 1,482,279 1,388,022 1,261,763
Japanese -------------------- 1,036,786 1,041,166 980,041 1, 009,735 1,104,512
Swedish .------------------------- 652,173 705, 154 845,664 832,273 721,945
Danish -------------------------- 261,543 380,240 I 518, 452 505,914 C06,100
French -------------------------- 530,026 600,421 530,763 576,753 508,011
Dutch --------------------------- 571,700 637,178 695,956 618,718 477,769
All remaining.-..--------------------. 990,852 1,489,248 1,697,533 1,218,337 905.904
Total--------------.------ 27,748,215 29,630,7090 30,663,006 30,030,232 25,082,800

Segregation of the traffic through the canal during the fiscal year
1931, by nationality, is presented in the following table, showing
transits, measurement tonnage, tolls, and tons of cargo:

Commercial traffic through the Panama Canal, by nationality of vessels


Chilean- -------
Danzig ----.......--..
Dutch..--....- -
French ...---......--
Greek .--.----
Norwegian ----.--
Peruvian.---...- -
Swedish.... ...
United States....-

ber of


Measurement tonnage


184, 928


432, 486
40, 962


2, 002,601
962, 881
66, 260

Total, 1931... I 529 27,292, 146 20, 595, 189 34, 232, 824

Total, 1930. -
Total, 1929 ---





Tolls Tons of
Registered cargo

95,997 $116,452.51 156,411
5,558,611 6,580,987.70 5,971,281
136,747 166,782.50 99,234
15,036 17,840.61 17,847
439,570 519,535.67 606,100
147,527 165,459.25 185,982
385,968 4;3,269.39 477,769
437,281 523,263.93 508,011
986,522 1, 204,084. 62 1,261,763
21,457 26,342.87 45,273
360,287 404,674. 43 236,570
841,343 1,052,413.33 1,104,512
1,204,848 1, 403, 922.86 1,720,383
50,884 60,204. 86 55,422
5, 788 8,565.60 7,328
17,500 22,053.99 27,030
454,798 424,924.05 721,945
9,567,459 11,425,999.31 11,805,132
40,838 48,679. 09 74,807
20, 768,461 24,645,456.57 25,082,800
22,797,619 27,076,890.01 30,030,232
22, 900,317 27, 127,376.91 30,663,006


Included in the 5,529 commercial vessels transiting the canal dur-
ing the fiscal year ended June 30, 1931, were 10 naval vessels paying
tolls on the basis of displacement tonnage, and 5,519, merchant
vessels, yachts, etc., paying on the basis of net tonnage. Fifty-three
and three-tenths per cent of the 5,519 commercial transits on which
tolls were levied on net tonnage were by vessels of from 4,000 to


6,000 net tons, Panama Canal measurement. Five and five-tenths
per cent were by vessels under 1,000 net tons, and 1.9 per cent by
vessels over 10,000 net tons. The average tonnage of all transits
was 5,036 net tons as compared with 4,862 net tons for the preceding
fiscal year, an increase of 174 tons, or 3.6 per cent.
Vessels of Italian registry averaged the highest net tonnage, 6,989,
with those of Danzig registry second with 6,849 net tons, and those
of French registry third with 5,545 net tons. The lowest recorded
average by nationality was for Colombia with 149 net tons, the
next lowest for Panamanian vessels with 2,301 net tons, and the
next lowest for Spanish vessels with 2,831 net tons.
The German liner Columnbus, of 20,079 net tons, Panama Canal
measurement, was the largest commercial vessel transiting during the


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 1931: Public vessels of
the United States, 544; public vessels of the Republic of Panama, 7;
vessels transiting for repairs, 17; a total of 568. These vessels carried
a total of 131,775 tons of cargo.
If charges at commercial rates had been made against the 544
public vessels of the United States that transited the canal without
the payment of tolls, the revenue from tolls would have been in-
creased by approximately $1,157,853.20 during the year. Tolls on
the 7 Panamanian Government vessels and the 17 ships transiting
for repairs would have amounted to approximately $23,251.29.
Launches of less than 20 tons measurement (Panama Canal net)
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 113, and tolls aggregating
$652.32 were collected for their passage.


As in previous fiscal years, the preponderant movements of cargo
were to or from the two coasts of North America. In the traffic from
Atlantic to Pacific approximately 74 per cent of the cargo originated
on the east coast of North America, and about 54 per cent of all cargo
going through to the Pacific was destined to the west coast of North


America. Of the traffic in the opposite direction, 66 per cent of the
total came from the west coast of North America and about 60 per
cent was destined to the east coast of that continent.
The specific trade routes over which moved the greater part of the
cargo shipped through the canal during the fiscal year 1931 were, in
order of quantity of cargo: Between the Atlantic and Pacific coasts
of the United States intercoastall); between Europe and the west
coast of United States and Canada; between the east coast of the
United States and the west coast of South America; between Europe
and the west .coast of South America; between the east coast of the
United States and the Far East; between Europe and Australasia;
between the east coast of the United States and Australasia; and be-
tween the east coast of the United States and the west coast of
Canada. In the past year the cargo moving over these routes through
the canal aggregated 22,636,044 tons, and was 90.2 per cent of the
total cargo.
The following tabulation shows the aggregate movement of cargo
over these eight principal routes of trade, the sum of miscellaneous
routings, and the total during the past four years:

Cargo shipments through the Panama Canal during the past four fiscal years
segregated by principal trade routes

Tons of cargo
Trade route
1928 1929 1930 1931

United States intercoastal:
Atlantic to Pacific ............................... 2.576, 399 3, 184, 141 3, 16I1, '30 2,379,751
Pacific to Atlantic.........................-- ...... -- 7,t.57, 300 6,992.1.32 7,32,., 34 G, 425,624
Total .....- ..---.. . ........ .- ....-....... 10,233,1699 10.176,773 10. 490 ,004 8.805,375
Europe and west coast of United States and Canada:
Atlantic to Pacific ..... ..... ... 725, 304 797. 856 838, 226 549, 918
Pacific to Atlantic...........----.....-............... 5, 113, 7 .5. 172. 286 4.710.214 4, .31, 157
Total---- ......-...- .- ...............---........ 5,839,092 5.970, 142 5,548,440 5, 1S1, 105
East coast United States and west coast of South
Atlantic to Pacific.....-- ...........-- .......----..... 356. 929 404.928 378, 101 252,363
Pacific to Atlantic- --........--.--.....----...............--. 2, 822. 88 2, 991,043 3, 144,475 2, 10., 298
Total--...--..-------.. ---.-------- ....--.----------- 3. 179.xI5 3,398.971 3.522.576
Europe and west coast of South America:
Atlantic to Pacific------- ------- 761.567 845, 70 881,666 503, 56
Pacific to Atlantic............................... 2, 128,737 2,382.935 1,934,744 1. ,04. 191
Total-- ..... ....... ................---........... 2.890,304 3,228,(95 2,816,410 2.307,757
United States and Far East, including Philippine
Atlantic to Pacific............................... ],;13,898 1,913, 6O3 2,072, 51i1 1,3-.0,772
Pacific to Atlantic..............................----- 493,350 0.38.bIS 818, 184 8 2,053
Total---.........-..--.............................. 2. 109,248 2,.752,281 2.890. 695 2, 222. 825
Europe and Australasia:
Atlantic to Pacific .......-.............-----.........-- .. 549,.959 583, 977 604.326V 441,470
Pacific to Atlantic..................-- .....--......-- .. 552,51.3 :.7.3212 594.930 671,813
Total--..................-- ...................... 1. 102.522 1, 157, 189 1, 199, 195 1, 113, 313


Cargo shipments through the Panama Canal during the past four fiscal years
segregated by principal trade routes-Continued

Tons of cargo
Trade route ---- ---
1928 1929 1930 1931

United States and Australasia:
Atlantic to Pacific............................... 637703 641. 2'9 422,839 202.311
Pacific to Atlantic...........................-- ....--- 10.678 16,74 238 03 166.648
Total............. ... ....... ... .......... --- 744.3S1 806,015 661,642 368.959
East coast United States and west coast of Canada:
Atlantic to Pacific............................... 44,420 3, 220 32, 132 32,345
Pacific to Atlantic...........-.... .. ........... 4 ,'80 377.881 333.717 246.704
Total.................. ... ................. 526,109 416. 101 385,849 279.049
Misr-ellaneous routes and sailings:
Atlantic to Pacific -..... ... ----..---... 1.043,9355 1.472. 70r 1.084,455 957,903
Pacific to Atlantic..................---.........-- ... 1,9 1,5 1. 44. 133 1.430.906 1,488,853
Total-------------------------------------- 3.005,539 2. 936 9 39 2,515,361 2.446.756
Total traffic, all routes:
AlantIic to Pacif.l-( ---.. .-- ---- ..-..... 8 310.134 9.882.J20 9.475.725 6.680,429
P cfic to Atlantic................ ............-- -- 21.320.575 20.780.486 20, 54. 507 18.402,371
Total--..---.-. --- --..---.---.-----.---------- 29.630,709 30,663,006 30,030.232 25,082,800

As will be perceived from the foregoing, the cargo over all the
principal trades decreased in comparison with the previous fiscal
year, although there occurred a gain in the Pacific to Atlantic move-
ment from the Far East to the United States and from Australasia
to Europe. In aggregate there was a decrease of 2,795,296 tons, or
29.5 per cent, in the Atlantic to Pacific movement; a decrease of
2,152,136 tons, or 10.5 per cent, in the Pacific to Atlantic movement;
making a decrease of 4,947,432 tons, or 16.5 per cent, in the combined
movement. In the Atlantic to Pacific movement the decreases
were as follows: In the United States intercoastal trade, 781,779
tons, or 24.7 per cent; in the trade between Europe and United
States and Canada, 288,278 tons, or 34.4 per cent; between the east
coast of United States and west coast of South America, 125,738
tons, or 33.3 per cent; between Europe and the west coast of South
America, 378,100 tons, or 42.9 per cent; between the United States
and the Far East, 711,739 tons, or 34.3 per cent; between Europe
and Australasia, 162,795 tons, or 26.9 per cent; and between the
United States and Australasia, 220,528 tons, or 52.2 per cent. A
slight increase occurred in the trade between the east coast of the
United States and the west coast of Canada.
As stated above, increases occurred in the Pacific to Atlantic
movement over two trades-from the Far East to the United States,
which increased 43,869 tons, or 5.4 per cent; and from Australasia to
Europe, which registered a gain of 76,913 tons, or 12.9 per cent.
Increases in the shipments of sugar, silk, and general oriental goods
were responsible in the case of the former, while heavier shipments


of food products in cold storage and wool contributed principally
to the gain from Australasia to Europe. In the Pacific to Atlantic
movement of the United States intercoastal trade there occurred a
decrease of 902,910 tons, or 12.3 per cent, in comparison with the
previous fiscal year, occasioned, primarily, by reduced shipments of
two important commodities-mineral oils and lumber. In the trade
between United States and Canada and Europe a slight decline of
79,057 tons, or 1.7 per cent, occurred. In this trade gains were made
in the movement of several important food commodities such as
wheat, canned goods, and fresh and dried fruits, but a heavy cur-
tailment in the movement of mineral oils and lumber absorbed the
increases. The cargo movement from the west coast of South America
to the east coast of the United States had the heaviest relative de-
cline of any trade in the Pacific to Atlantic movement during the
year. The decrease amounted to 1,039,177 tons, or 33 per cent, in
comparison with the previous year. Lessened iron ore and nitrate
shipments were the principal factors in this decline.
From the west coast of South America to Europe there was a de-
crease of 130,553 tons, or 6.7 per cent, due principally to reduced ni-
trate shipments. In the Pacific to Atlantic movement of the trade
between Australasia and the east coast of the United States, a de-
crease of 72,158 tons, or 30.2 per cent, occurred. This decrease was
brought about principally by smaller shipments of copra, hardwoods,
hemp, iron ore, and skins and hides. From the west coast of Canada
to the east coast of the United States there was a decrease of 107,013
tons, or 30.3 per cent, due to smaller lumber shipments.


Statistics of commodities passing through the canal are not precise
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 "cargo declaration," which is a briefly
itemized statement, listing the principal items of cargo carried, and
showing their ports or country of origin and destination. These cargo
declarations are the basis of the commodity statistics. There is a
natural tendency not to list small miscellaneous shipments but to
include them under the head of "General cargo"; not infrequently no
other classification is made of entire cargoes carried by vessels.
Hence, except in the case of commodities commonly shipped in bulk,
such as mineral oils carried in tank ships, wheat, lumber, nitrates,
etc., shipments of various goods are likely to be in excess of the aggre-
gate tonnage reported during the year and shown in the annual sum-
mary. Subject to errors arising 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-
1928 1929 1930 1931

Long tons Long tons Long tons Long tonal
Manufactures of iron and steel-------....--.----------- 1.855,532 2,349,566 2,128,712 1,320,091
M ineraloils......................................... 717,080 806,744 682,742 485,520
Phosphates.....----............----........- ............... ----- 198,826 281,168 435,994 312,925
Cotton .................................. ..------.....---- 254, 225 331,652 248,345 298,877
Tin plate..............--........................-...... ----143,610 261,899 294.382 224,291
Cem ent ...................... ...................... 280,032 379.968 412,347 206,483
Paper .............................................. 1----------- S53,263 224,276 259,314 202,478
Sulphur........................ ... .....--------------------... 207, 257 238,231 215,831 190,690
Mlachinery.......................................... 215,334 188,442 180,805 139,928
Coal and coke...................................... 252.740 227.$83 224,439 122,179
Tobacco...----.... .....--...--......--..... ------------------ 78,943 129,433 118,322 116,946
Automobiles (exclusive of accessoriesj)............... 124.553 250,688 203,089 104,002
Canned goods (fish, fruit, vegetables, etc.)........... 87,136 121,472 120,373 100,311
TeXtiles......-----------------.. ... ------------ ---------- 124, 658 137,886 120,750 94,254
Sugar ............................................... 44.951 150,402 101,150 87,436
Coffee................ ................-----------------------------------------.. 69,135 55,002 60,103 79,382
Ammonia..----------.. ---.-----------------.------- ....... 91,776 108,862. 153.437 79,100
Railroad material................................... 188,561 239,074 194,578 77,838
Asphalt ------ --------------.-------------------- t42, 350 93,806 97,712 72,388
Slag ------------------------------------------- 84,797 96,894 66,945 71,627
Chemicals.---...------..---------------.... -------------- 52,493 77,286 82,417 66,690
Salt ..........---------------------------------..----------.. 35,374 59,643 54,327 56,002
Automobile accessories.....------------..---------------- 49,052 90,577 84,213 51,768
Glassand glassware----.---..-------.......-...-------...---.------- 61,434 73,757 68,062 47,100
Scrapmetal.-----------..----...-----..----------------- 48,168 83,829 196,676 46,904
Rosin .... .-------------------------------...---------- 36,456 45,129 39,603 39,886
Iron (metal).......-----------------............-----....--------------- 40,109 92,992 76.703 35,896
Lumber ---------------------------------------- 33,402 50,448 48,819 32,924
Creosote. ............-----------------------.---------------- 55,682 56,636 64,844 31,662
Agricultural implements--............ ...--- .... --- 60,895 57,195 51, 517 28,289
Flour ..--------------------------.---------------- 24,010 79,351 49,614 25,122
Bananas ............----------------------------.--...--------- 44,616 55,979 29,502 14,903
Allother.-------....-----------------... ------------- 2,478,684 2,386,350 2,309,968 1,816,537

Total-...---...-----...-------------------------- 8,310,134 9,882,520 9,475,725 6,680,429


Mineral oils .. . ----------------------. .----. .-----
Lumber..........--------------......--.--.-------..--------. -
W heat -- -.. .- . ..- - .--....... -----. .--- ----- -.
Ores (principally iron) -.... ...-.......-----....
Nitrate..----. .-----------------------...-----.------.
Sugar -..... -- - - -- -- ------- -
Canned goods (fish, fruit, vegetables, etc.)........
Metals, various..............-.....-- ... ....... -
Food products in cold storage '--.......--.------....
Fruit, fresh.........------------------....... ---.. -- --.------...
Fruit, dried.. -.- - - - --.. ---------- ----
Barley- ...................................... -------- -- -
Beans..................---................ --
Wool.......... -------------------.... --.... -----..---------.. .
Coffee............----------------------....... ----- --------.
Flour--------..-.. -----....--. --------------------. -
Rice-------- ---..----.--..---------... --------------
Paper .......-........................................ -
Copra. ----------------.---......----......--------.--
Pulp ......- .............-- --- .........-- ................ ..
C otton ....................................... ......-
Cocoanut oil............----------- ...........
Borax .................... .. .. .........-......
Skins and hides .................................... .
A ll other .....--.......................................-

771, 793
73, 587

Total.----...--....---.------........-----..------------ 21,320,575


335, 061
112, 679

20, 780,486 20, 554,507

I Does not include fresh fruit.



___ ___~



As will be noted from the preceding tabulation, a great majority
of the commodities routed from the Atlantic to the Pacific during 1931
decreased in comparison with the previous year, there occurring only
Five increases among the commodities listed in the table. The in-
Screases were in the items of cotton, coffee, slag, salt, and rosin.
Nineteen of the 32 items listed in the Atlantic to Pacific movement
for 1931 were lower in 1931 than in any of the other three years
As in previous years, cargo from Pacific to Atlantic exceeded
greatly that moving in the opposite direction. In 1931 the cargo
from the Pacific was nearly three times that from the Atlantic; in
the previous fiscal year the cargo from the Pacific was slightly over
twice that from the Atlantic. Movement decreased in 1931 in com-
parison with 1930 in both directions but much more heavily in the
shipments from the Atlantic.
There were seven items of cargo exceeding a million tons each in
the past year, as follows: Mineral oils, lumber, wheat, ores (princi-
pally iron), nitrates, manufactures of iron and steel, and sugar.
In 1930 there were six items in the million-ton class, which included
all the aforementioned except sugar. In the movement from the
Pacific to the Atlantic there were 16 commodities (included in the
table above) which showed increases and 9 which showed decreases in
comparison with 1930. Of the 16 increases, 11 were in food products-
wheat, sugar, canned goods, cold storage products, etc. Notwith-
standing the majority of individual increases there was a decrease in
the aggregate tonnage in this direction of over 2,000,000 tons on
account of heavy decreases in the important items of mineral oils,
lumber, ores, and nitrates.
Atlantic to Pacific.-Manufactures of iron and steel, as in the past,
constituted the largest classification of the movement in this direc-
tion, accounting for 19.8 per cent of the total cargo from the Atlantic
to the Pacific, in comparison with 22 per cent of the total in 1930.
In actual tonnage there was a decrease of 808,621 tons, or 38 per cent,
Sin comparison with the previous year. The major decreases were in
the United States intercoastal trade which declined 457,711 tons,
-or 37.2 per cent; 129,831 tons, or 54.2 per cent in the trade between
the United States and Far East (including the Philippine Islands);
and 75,947 tons, or 46.6 per cent, in the trade between Europe and
South America.
SMineral oils from the Atlantic to the Pacific totaled 485,520 tons,
in 1931, a decrease of 197,222 tons, or 28.9 per cent, in comparison
with the previous fiscal year. The most marked decrease was in the
shipments of kerosene which fell off 122,009 tons, or 41 per cent, and
occurred principally over the route from the United States to the
Far East.


Phosphates, the larger portion of which is shipped to the Far East
from the United States, declined 123,069 tons, or 28.2 per cent, in
comparison with the previous fiscal year.
Cotton, with 298,877 tons, increased 50,532 tons, or 20.3 per cent,
over the previous fiscal year. Of the total shipments, 292,769 tons
were reported as en route from the Gulf or South Atlantic ports of the
United States to the Far East. The increase over this route in com-
parison with 1930 was 49,370 tons, or 20.3 per cent.
Pacific to Atlantic.-Since the beginning in the fiscal year 1923 of
shipments of mineral oils on a large scale from the California fields,
this product has been the leading commodity shipped from the Pacific
to the Atlantic. As pointed out in the report of last year, this item
of cargo reached its high point in 1924 with 9,721,446 tons. In 1925
the shipments declined to 5,989,622 tons and in 1926 they were
slightly lower, with 5,930,716 tons. The year 1927 saw an increase to
7,143,165 tons, followed by decreases in 1928 and 1929. In 1930
shipment of mineral oils aggregated 5,700,587 tons, the highest since
1927. In the past. year they decreased to 4,824,338 tons, the lowest
for any fiscal year since 1923 when 4,334,664 tons were reported.
In comparison with 1930 the past year's mineral oil tonnage from
Pacific to Atlantic decreased 876,249 tons, or 15.4 per cent. Of this
decrease 547,455 tons, or 16.2 per cent, occurred in the United States
intercoastal trade, and 436,661 tons, or 31.2 per cent, in the trade
between the United States and Europe. The trade between the
United States and the West Indies showed an increase in this business
of 102,344 tons, or 119.3 per cent, over the preceding year.
Lumber, with 2,747,485 tons in 1931, ranked as the second largest
commodity. It has held second place since 1922 with the exception
of one year (1923), when it dropped to third place in favor of nitrates.
In comparison with 1930 the shipments of this commodity declined
783,394 tons, or 22.2 per cent. Of this decrease 412,471 tons, or 18.7
per cent, occurred in the United States intercoastal trade, 173,377
tons, or 32.4 per cent in the trade between the United States and
Europe, and 97,765 tons, or 29.3 per cent, between Canada and the
United States. Lumber from Canada to Europe did a little better
than hold its own during the year, registering an increase of 9,194
tons, or 5.5 per cent. A little over 65 per cent of the total lumber
shipments during the year were in the United States intercoastal trade.
Wheat, which occupied fifth place in 1930, moved to third place in
1931, surpassing the shipments of both ores and nitrates. The ship-
ments of wheat, which have fluctuated notably during the past 10
years, reached their high mark in 1928 when 3,035,884 tons were
carried through the canal. In 1929 these shipments dropped to
2,365,555 tons and in 1930 to 1,503,035 tons. In 1931 the shipments
increased to 1,862,147 tons, or 359,112 tons (23.9 per cent) greater


than the shipments in 1930. About 80 per cent of the wheat ship-
ments passing through the canal in 1931 went from the west coast of
Canada to Europe.
The shipments of ores (the greater portion of which is iron ore shipped
from Chile to the United States) showed a marked reduction in com-
parison with 1930, decreasing from 2,229,470 tons to 1,436,792 tons,
a decline of 792,678 tons, or 35.6 per cent. The peak for ore ship-
ments from the Pacific to the Atlantic was the 2,229,470 tons in 1930.
Nitrate shipments from the Pacific to the Atlantic, practically all
of which originated in Chile, aggregated 1,375,450 tons in 1931, con-
stituting the lowest tonnage for this commodity since 1927, when
1,174,384 tons were reported as passing through. In comparison
with 1930 the shipments of nitrates declined 535,343 tons, or 28 per
cent. Shipments to Europe (which were 66 per cent of the total
nitrate tonnage in 1931) decreased 242,316 tons, or 21 per cent, and
those to the United States (which were 33 per cent of the total)
showed a decline of 172,298 tons, or 27.5 per cent. Shipments to
Egypt, which were 123,487 tons in 1930, proved a negligible factor
in 1931, that area absorbing only 8,270 tons.
Shipments of sugar, which have been increasing steadily for the
past several years, increased 112,614 tons, or 12.2 per cent, over
1930. These increases occurred principally in five trades, as follows:
United States intercoastal, 16,643 tons, or 15.4 per cent; South
America to Europe, 42,172 tons, or 25.8 percent; Australasia to Europe,
20,796 tons, or 90.5 per cent; Philippine Islands to United States,
25,220 tons, or 4.8 per cent; and Hawaiian Islands to the United
States, 27,167 tons, or 36.4 per cent. Fifty-two and nine-tenths
per cent of the sugar tonnage routed from the Pacific to Atlantic
through the Panama Canal in 1931 was from the Philippine Islands
to the United States; 19.9 per cent from South America to Europe;
12.1 per cent in the United States intercoastal trade; 9.9 per cent
from the Hawaiian Islands to the United States; and 4.2 per cent
from Australasia to Europe.
Of the 5,529 commercial vessels transiting the canal during the
fiscal year, 3,932 were steamers, 1,571 were motor ships, and the
remaining 26 were motor schooners, sailing ships, barges, etc. For
the past five years the proportions of these classes have been as

1927 1928 1929 1930 1931

Per cent Per cent Per cent Per cent Per cen
Steamers....----------..-- ...-------------------......------------.. 85.3 84.8 80.2 76.8 71.1
Motor aShips......------....-------------........------------- 11. 9 13.8 19.3 22.8 28.4
Miscellaneous...----..---------.-------------------. 2.8 1.4 .5 .4 .5
Total....-------.. -----------..-------------.. 100.01 100.0 100.0 100.0 100.0


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 numbers of transits of motor ships in the past five fiscal

years have been as follows: 1927, 654; 1928, 890; 1929, 1,240; 1930,
1,411; 1931, 1,571.

Of the 3,932 steamers transiting the canal during the past fiscal
year, 2,862 burned oil, 1,008 burned coal, and 62 were reported as
fitted for either fuel. For the past five fiscal years the proportions of
each class have been as follows:

1927 1928 1929 1930 1 1931

Per cent Per cent Per cent Per cent Per cent
Oil burning....-..-------------.........------..-.. ----------... -..-....... 70.8 63 8 64.0 72.2 72.8
Coal burning------------...........-........----..........-------.---------.. 28.3 35.7 34.7 26.4 25.6
Either oil or coil.....-- ..------.....----....------..-----...--......... .9 1.3 1.4 1.6

Total...------------------------... 10------------ 100.0 100.0 100.0 100.0 100.


A classification of the traffic during the fiscal year 1931 by laden

ships, those in ballast, and tolls-paying vessels which are not of the

cargo type, is as follows:

Tank ships:
Ballast......... ...............
General cargo ships:
Laden........ ---- ....-..........
Ballast .......................
Noncargo-carrying ships:
N aval ............-.. .. ..--..
Y achts.........................
Launches ......................
Lighthouse tenders......... .
D redges........................


Atlantic to Pacific

Pacific to Atlantic


ber of





Canal net


4 0 0 "




ber of




2,804 14.181,0501 11,965,449.42 2,725

Canal net





755. 28


A classification of the commerical traffic during the fiscal year 1931

by laden ships and those in ballast, divided between tankers and
general cargo vessels, and showing the ships not designed to carry
cargo, is as follows:




Classification Atlanti to Pacific to Total
Pacific Atlantic I

Tank ships, laden:
Number of transits....------------...--------------
Panama Canal net tonnage...--......-....--.---
Cargo, tons---....-------....--------.------------
Tank ships, ballast:
Number of transits--....----..----------......-------....
Panama Canal net tonnage-------- ....---.---.-..--
Tolls-- ........-------...--.........-----..-...-........-----.
General cargo ships, laden:
Number of transits. ----------..- -----------------.
Panama Canal net tonnage-------.--......---------....
Tolls--..------.. -------------.-----...-----------
Cargo, tons ..---.....-------------------..--------.
General cargo ships, ballast:
Number of transits.-------------------------......
Panama Canal net tonnag----o. .-...-......-.....---....
Tolls----......--..------- --. --------------------
Noncargo-carrying ships:
Passenger vessels-
Number of transits.--------.--.------------.. -.
Panama Canal net tonnage..----.--.............
Tolls.. ----...----------.----------------------.
Naval vessels-
Number of transits. .......--- ..--... ...-- -----
Displacement tonnage....--------------------
Tolls--...---....--------....------.-------------.. -
Number of transit. .....----- .-- .-.---.--..-
Panama Canal net tonnage -----...--...-....---
Tolls. ---------- --.. ----. --- -----.. -----------
Number of transit-.. .--------------.-.. -.. --. -
Panama Canal net tonnage.....-....--........-----
Launches- -
Number of transits.............................. .
Panama Canal net tonnage.......----...........
Tolls .--------- ---- --------------------------- -
Lighthouse tenders-
Number of transits. .............-- .... .......
Panama Canal net tonnage--.....--....--....---
Num ber of transits................- ....-....- -
Panama Canal net tonnage......................
Tolls. ---------------... .......-.---..------.-------.
Num ber of transit .............................. .
Panama Canal net tonnage............... .
T olls.......... . . . . . . . ... - -- .



$9, 771,644.95






$293 25





38, 788

63, 628







2.440, 568

$18,560, 111.05

1, 745,472





$43 20





Total cargo ships, laden:
Number of transits.--...-----..-----.------.--------
Panama Canal net tonnage -.... ................-
Cargo, tons...-----------. ----------------------..
Total cargo ships, ballast:
Number of transits....----..........-- ........--...
Panama Canal net tonnage..--.-...-...............-
Total tank ships:
Num ber of transits -.-.....-- -------..------------ ---
Panama Canal net tonnage-..-------.--------.....-
Tolls......------------.---.-..--- --.....---.-----------..
Cargo, tons-------.----..--..-----...----..--------...
Total general cargo ships:
Number of transits --..--.--.--------..-..-...---
Panama Canal net tonnage---------------------..--
T olls................................................
Cargo, tons..--------.---------------....---------
Total nonrargo-rarrylng ships:
Number of transits...---------------..--.--..------...-
Panama Canal net tonnage-----....................-
Displacement tonnage--..--...---------.-...-..- -
Tolls------..........----..-----. --------------..----
Grand totals:
Number of transits........---.----..----..--..--....--......
Panama Canal net tonnage-------------.----..-..-
Displacement tonnage.. ----..-------.. ------------..
Cargo, tons... --.----.-.--..--.-..--......----------.

10, 06S. 096






13,43S, 551

$74,770. 84

2.729, 172

10, 813.197

$79,399. 76



4, 186, 040
$3,022,316 00

5.284, 873
$4, 682. 320.14



$24, 645,456. 57



Further particulars of the traffic through the canal are presented in
Section V of this report in the form of tables and graphs.
Tolls on commercial vessels using the canal are levied on the basis
of $1.20 per net ton, on net tonnage as determined under the Panama
Canal rules of measurement, for laden ships, and $0.72 per net ton,
measured under the canal rules, for ships in ballast, with the limitation
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 measure-
ment for registry in the United States.
The effect of this is, generally, that tolls on laden vessels are usually
paid on the basis of $1.25 times the United States net tonnage and
tolls on ballast vessels at $0.72 times the Panama Canal net tonnage.
In a few cases the product of $1.20 times the canal net is slightly less
than $1.25 times the United States net, and tolls are paid on the canal
basis; there are other cases of ships in ballast in which the Panama
Canal net tonnage times $0.72 is in excess of $1.25 times the United
States net, in which case the latter figure is the amount collectible.
Such vessels pay less than $0.72 per net ton, canal measurement, for
transit either in ballast or laden. On small vessels such as tugs the
United States rules sometimes indicate negative net tonnage, and such
vessels make the transit without payment of tolls.
This dual basis is complex and unsatisfactory, frequently inequit-
able, and the canal administration has recommended repeatedly the
adoption of the single Panama Canal basis. The reasons for the
change are set forth at more length in Section III of this report, under
the head of "Administrative problems."
The use of rates of $1.20 for laden ships, and 72 cents for ships in
ballast, times the net tonnage as determined under the Panama Canal
rules, would have the effect of increasing heavily the charges on traffic;
and in order that approximately equal revenue might be obtained, the
canal administration has proposed that if the canal rules be adopted
the rates should be set at approximately $1 per net ton for laden ships
and $0.00 for vessels in ballast. However, the plan has met opposi-
tion from American operators of general cargo vessels for the reason
that it would in most cases increase the charges against general cargo
ships when laden. On the other hand, the proposed basis would re-
duce the charges on vessels making the transit in ballast. Hence, as
applied to the total traffic using the canal the effect of adopting the
canal rules and proposed rates, in comparison with revenues now de-
rived, may vary according to the composition of the traffic.


In the discussions of the proposed adoption of the Panama Canal
basis there have been statements to the effect that the change would
impose undue burdens on United States vessels. The following is a
comparison of the increases in tolls which would have been paid by
United States vessels and by all vessels other than those of United
States registry in the past five fiscal years:

Tolls which Increase
Tolls actually would have ___________
Fiscal year collected been collected
on proposed Actual Per cent

1927---------.. -... ------------... ------------- $12,720, 447.95 $12, 601,622. 60 $118,825.35 I 0.93
1928-...........----------------------------------- 12, 645, 880.20 12,662,378.60 16,498.40 .13
1929----------...... -------...... --------.....------- 12,299,584.70 12,471, 487.00 171,902.30 1.40
1930--...--------..--------.---------------- 13,220,662.70 13,537,324.60 316,661.90 2.40
1931---..--- ---..-. ---------------.---------- 11,425,999.31 11, 883,318. 60 457,319.29 4.00
Total for 5 years-...------- ..--------. ---- 62,312,574.86 63,156,131.40 843,556.54 1.35


1927-.- -----. -- --..... --------..--------------....... $11,508,382.16 $11,720,617.30 $212,235.14 1.84
1928---.......---------------.---------.------- 14, 298, 619.57 14,583,094.40 284,474.83 1.99
1929------........----------------------------.................... 14, 827, 792.21 15,518,947.60 691,155.39 4.66
1930------- .- -------- -----------.--------- 13, 856, 227. 31 14,795,367.00 939,139.69 6.78
1931 -.---------------.------------------- 13,219,457.26 14,264, 637.30 1,045, 180.04 7.91
Total for 5 years.....-----------...-------.....--......- 67,710,478.51 70,882,663.60 3,172,185.09 4.68

I Decrease.

In the following table are shown, for the fiscal year 1931, the tolls
paid by the vessels of various nationalities using the canal, in com-
parison with the tolls which they would have paid on the proposed
basis. There is also shown the pro rata per net ton, Panama Canal
measurement, of the actual tolls on laden and ballast vessels. For
example, the laden Japanese ships paid tolls equivalent to an average
of $1.042 per net ton of capacity as determined under Panama Canal
rules and on ballast traffic the equivalent of $0.729 per Panama
Canal net ton. British vessels, while paying essentially the same
ballast equivalent, averaged $0.90 per canal net ton on laden ships.
It will be noted that for vessels in ballast the prevailing charge was
close to 72 cents per Panama Canal net ton, with the exception of
the Chilean vessels. Wider variations occurred in the charges on the
laden vessels; the average rate per Panama Canal net ton ranged
from $0.727 for Panamanian vessels to $1.208 for Peruvian vessels, a
variation of $0.481. On the assumption that the Panama Canal
rules for the determination of net tonnage are an accurate basis for
the just levy of canal dues, it is obvious that the present use of the
United States rules is resulting in inequities and injustices, since the
ships are not paying at equal rates on net tonnage as determined
77272-31- 3


under the canal rules of measurement. A Belgian average, for
example, is 16.1 cents higher than the Dutch. The United States
average is 10.5 cents under the Japanese but higher than the British
by 3.7 cents, than the German by 7.6 cents, etc. The table follows:

Tolls that Pro rata per Panama
would have Difference Canal net ton of
been collected tolls actually col-
Tolls actually under pro- elected
collected posed rates of ___________ _________
Nationality under present $t laden and
dual system 60 cents bal-
last on P basis Increase Decrease Laden Ba- Total
of Panama last 0
Canal net

Belgian.------..-------..------- $116,452.51 $115,513.80 .....-----..--------... $938.71 $0.983 $0.720 $0.936
British-----.........----..-- -------- 6,580,987.70 7,004,853.80 $423,866. 10 -.----.---. 900 .721 .869
Chilean -------------------- 166,782.50 184,834.40 18,051.90 --.----- .894 .512 .894
Colombian.....---------...--..------- 17,840.61 15,157.20 -------------... 2,683.41 1.175 .732 1.149
Danish..---------..........--..----------. 1 519, 535. 67 559,392.80 39,857.13 -----------.. .887 .713 .850
Danzig --------------------- 165,459.25 151,918.00 ------------....... 13,541.25 1.036 .720 .809
Dutch ...---------------...------ 473,269.39 568,885.20 95,615.81 ........... 822 .720 .818
French. ......---------....-----. --- 523,263.93 590,884.60 67,620.67 ........... .870 721 858
German-------------------- 1.204,084.62 1,377,118.40 173,033.78 -----------. .861 .721 .853
Greek- .-------- --- 26,342.87 27,876.60 1,533.73 ----------- .894 .720 .851
Italian..... ...------------.--.------- 404,674.43 458,732.60 54,058.17 ---------......- .872 .728 864
Japanese -----------------. 1,052,413.33 1,006,620.80 .---------.....--- 45,792.53 1.042 .729 1.032
Norwegian. --------------- 1,403,922.86 1,579,366.40 175,443.54 ----------- .831 .714 .803
Panamanian -----------------... .... 60,204.86 79, 951. 0 19,746.94 --------.... ---. .727 .721 .727
Peruvian ..---------------.----- 8,565.60 7,068.00 -.-----....--..----- 1,477.60 1.208 ..------- 1.208
Spanish.....--------.--.----..------- 22,053.99 21,001.70 ------------- 1,052.29 1.004 .720 .901
Swedish ..----------------- 424,924.05 466,158.00 41,233.95 ........... .839 .722 .804
United States..------------ 11, 425,999.31 11,883, 318. 60 457,319.29 ------..----- .937 .723 .907
Yugoslavian.-----..-----....------- 48,679.09 49.283.20 604.11 ------ 938 .720 .877
I ___________ _I .91 1 88
Total ..-----------....... 24,645,456.57 26,147,955.90 1, 567, 985. 12 i 65,485.79 .913 .721 .884
Total difference, increase of. --------------------------.. 1,502,499.33 !--------. ----.--- ----

A bill to remedy these inequalities has been introduced in Congress.
This is discussed under the heading of Administrative Problems,
Section III.


The average measurement tonnage, tolls, and tons of cargo per
vessel transiting the canal during the past three fiscal years are shown
in the following tabulation:


Measured tonnage:
Panama Canal net.-------.--------------------------------
United States equivalent.------..---.----.-------..----------..
Registered gross------------ ..-----------------------------------
Registered net----- -----------------------------------
Tolls.------------ -- -- --------------------------------------
Tons of cargo (including vessels In ballast)........-..---..........------.-
Tons of cargo (laden vessels only)---.---------------------------

Fiscal year, Fiscal year,
1929 1930


$4, 377.83

It will be noted from the above that there have been increases in
the average measurement tonnage and average tolls in the past three
years, which have been due to the gradual addition of new and larger
vessels to several lines plying through the canal. The increase in

Fiscal year,



the average net tonnage, Panama Canal measurement, of vessels
transiting in 1931 in comparison with 1930 was 3.7 per cent and in
comparison with 1929, 8 per cent, while the average United States
equivalent net tonnage per vessel increased only 1.6 per cent and 4.8
per cent, respectively, over 1930 and 1929. The increase in the
average tolls per vessel was 1.8 per cent over 1930 and 5.4 per cent in
comparison with 1929.
The average cargo per vessel transiting (including in the "total the
vessels which made the transit in ballast) decreased in the fiscal year
1931 to the extent of 6.5 per cent in comparison with the preceding
year and 5.1 per cent in comparison with 1929. Considering the
laden vessels only, the average cargo per vessel decreased in 1931 by
5.4 per cent of the average in 1930 and the same percentage with ref-
erence to 1929, as the average for 1929 and 1930 varied by only 1 ton.

Dispatching of ships through the canal is conducted on schedules.
Vessels ready to leave for transit begin moving through the canal
from each end at 6 o'clock in the morning, and dispatches are made
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.
From Cristobal Harbor, first ship at 6 a. m., last at 2.30 p. m.;
from Balboa anchorage, 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. mn. from Cristobal or
After the last through ships have been dispatched, and provided
there is no interference with approaching traffic, ships are started on
partial transit from Cristobal Harbor up to 9 p. m. or from Balboa
anchorage up to 7 p. m. Partial-transit ships tie up on reaching the
summit level and continue the following morning; the first of those
bound for the Pacific leaves Gatun at approximately 3.45 a. m.,
and the first of those bound for the Atlantic leaves Pedro Miguel at
3.30 a. mn., providing the air is sufficiently free of fog or rain to allow
safe navigation.
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 transits, as they would then interfere with
the regular schedule


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 Gaillard Cut before dark. Overloaded tankers carry-
ing gasoline cargo are restricted to schedules leaving at 7, 7.30, and
8 a. inm.
The volume of traffic at present is not such as to 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 dis-
sipated by 8 o'clock in the morning.
The average number of lockages per day was 15.26 at Gatun Locks,
15.96 at Pedro Miguel, and 15.84 at Miraflores. The total number at
all locks was 17,178, as compared with 18,909 during the fiscal year
1930 and 19,087 during the fiscal year 1929. The decrease during the
past year was 1,731, or 9.2 per cent.
The quadrennial overhaul of Gatun Locks was begun on January
7 and completed on April 10, after a working period of three months
two and one-half days. In addition to the routine work performed
during the overhaul, eight miter gates were jacked up and rolled out
from wall for renewal of pintles, bushings, and all bearing plates.
Nineteen new cylindrical valves and bodies were installed in the
upper level of the center wall, which completes the replacement of
the old type valve. The new type cylindrical valves installed in
1927 showed no particular wear, neither did the bronze seat rings
installed in 1924 and 1927.
All rising stem valves, except the guard valves, were removed and
necessary repairs were made. New front wearing pads and roller
train track wearing plates were installed on 48 valves. Side seals
were renewed on all valves. New design roller trains were installed
with all valves. All gates were reenameled, sills, fenders, and seals
being renewed where necessary. In general the condition of the
underwater equipment was good, considering a 4-year run.
Apart from the overhaul, the machinery, equipment, and struc-
tuires were maintained in good condition and daily operations con-
tinued as outlined in previous reports. During the overhaul period
when one flight was out of service, the operations for the transit of
vessels were 'on -- contini6ous 24-hour basis. Some delays to ships
occurred. as was to be anticipated from the conditions.











The operation of the Pacific Locks continued on the same basis
as heretofore, except that during the period of the Gatun Locks over-
haul Pedro Miguel Locks were manned by double crew shifts from
7 a. m. to 10.40 p. m. Routine maintenance and repairs were per-
formed on all machines and equipment during the year, electric cable
being renewed as found necessary. A new power cable was installed
through the lower crossunder at Miraflores and necessary oil switches
and bus work were installed in order to make the necessary changes to
switch the lighthouse circuit to Miraflores substation, with an auxil-
iary feed from Miraflores Locks.
Lockages and vessels handled, by months, during the past fiscal
year are shown in the following table, to which is appended for conm-
parison a statement of the totals during the past five fiscal years:

Gatun Pedro Mliguel MAliraflores Total

Lockages Vessels Lockages Vessels Lockages Vessels Lockages Vessels

July----------------. 480 559 503 576 501 583 1,484 1.718
August--------------- 470 536 495 554 410 553 1,455 1,643
Beptember--.--.---.. 457 530 473 522 471 519 1,401 1,571
October...----- ....--------- 521 583 534 592 531 585 1,586 1.760
November-----------.. 481 546 48 567 497 568 1,476 1,681
December------------.. 486 548 509 562 510 561 1,505 1,671
January-.------. ----- 479 576 504 617 Sn1 614 1,484 1,807
February------------.. 452 541 473 559 466 562 1,391 1,662
March..-----..---..------- 474 597 501 592 495 593 1,470 1,782
April----------------- 445 535 468 546 463 540 1,376 1,621
May----------------- 425 478 444 517 441 511 1,310 1,506
June-----.--------.-- 401 448 422 463 417 462 1,240 1,373
Total.-------.. 5,571 6,477 5, 824 6,667 5,783 6,651 17, 178 19.795
Fiscal year:
1927-----.....--------- 5,467 6.641 5,783 6,968 5,691 6,941 16,941 20,550
1928--------------.. 6,314 7,406 6,642 7,811 6,577 7,804 19, 533 23,021
1929--------------... 6,289 7,428 6,473 7,994 6,325 7, 934 19, 087 23,356
1930--------------6, 135 7, 164 6,436 7,430 6,338 7.431 18, 909 22,025
1931------------- 5,571 6,477 5,824 6,667 5,783 6,651 17,178 19,795

The number of vessels locked per lockage in the fiscal year 1931
averaged as follows: Gatun, 1.163; Pedro Miguel, 1.145; Miraflores,
1.150. The average for the total of 17,178 lockages was 1.152 vessels.
For the four previous years, from 1927 to 1930, inclusive, the corre-
sponding ratios have been, respectively, 1.213, 1.179, and 1.165.


The power system was operated throughout the entire year with
an average combined generator output of 5,497,708 kilowatt-hours
per month, as compared with an average of 5,442,508 per month for
the previous year. An average of 5,120,672 kilowatt-hours per
month was distributed from substations, as compared with a corre-
sponding figure of 4,937,522 kilowatt-hours per month last year, an
increase of 183,150 kilowatt-hours, or 3.7 per cent. Transmission


and distribution loss was 6.82 per cent this year, as compared with a
corresponding loss during 1930 of 9.27 per cent.
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 station came in on the line
and during the dry-season months when the water-driven generators
at this station were restricted in their operation to conserve water in
the lake. This began on January 10, 1931, when one engine unit at
Miraflores was placed on the system under full load. The second
unit under full load was placed on the system on February 17, and
2-engine load was carried until March 15, when one engine was taken
off. The remaining engine was shut down on March 24, from which
date the station resumed regular stand-by and peak-load relief service.
In the three months, January to March, inclusive, the output
of the hydroelectric station totaled 11,390,050 kilowatt-hours, and
that of the Diesel station 6,263,400 kilowatt-hours. In the month
of greatest transference of load, February, the output of the hydro-
electric station was 2,990,200 and of the Diesel station 2,458,600
kilowatt-hours. Water consumption by the hydroelectric station in
February was 2,287,408,336 cubic feet as compared with its normal
consumption under full load of over 4,000,000,000 cubic feet per
There were eight interruptions to transmission-line service during
the year from the following causes: Lightning, 2; animals, 2; train
wreck, 1; operating error, 1; and 2 from causes undetermined.
Operation and maintenance of the spillway of Gatun Lake are
performed by the electrical division. During the year there were 302
gate operations, of which 180 were for lake regulation, 2 for exhibitions,
72 for sanitation, 16 for photographs, and 32 for maintenance pur-
One thousand one hundred and sixty-three electric ranges were
received during the fiscal year and 945 of this number installed in
quarters throughout the various districts.
General maintenance work in connection with the telephone sys-
tem, distribution and maintenance of lines and appliances, fire-alarm
signal system, and railway signal system were carried on during the
The inflow of water into Gatun Lake from all sources and the
utilization and losses of the water in the lake are summarized in the
following table. There are also shown the percentages which each
item formed of the total yield or total consumption. The data are
presented for the fiscal years 1930 and 1931, the former for com-
parison; each year covers 12 months, ending June 30, and thus embraces
the cycle of both dry and rainy seasons:


Billion cubice feet Per cent of total
fiscal year fiscal year

1930 1931 1930 1931

Run-off above Alhajuela....----------. ---..... --------------------.......... 63.52 61.38 40.1 41.8
Yield from land area below Albajuela--------------------...................... 61.24 60.17 38.6 34.1
Direct rainfall on lake surface------------------------------.............................. 33.78 35.40 21.3 24.1
Total yield-...- ..----------------... ---------------------.... 158.54 146.95 100.0 100.0
Evaporation from lake surface-----------------------------................................. 20.72 21.55 13.1 14.6
Gatiun Lake lockages ---.....---------------------------.. -------... 40.04 38.79 25.2 26.4
Hydroelectric power --- ..------. ---.. -------------......------------.. 45.45 45.38 28.7 30.9
Spillway waste---....-----------. ----------------.......-----------.... 53.83 32.83 33.9 22.3
Municipal, leakage, ete. ------.. ----.. ---....-----.----------------.... 1.60 1.69 1.0 1.2
Change in volume in storage--....--..- ----------------------... -3.10 +6.71 -1.9 +4.6
Total uses and losses.--------------------.... ------------ 158.54 146.95 100.0 100.0

NOTE. - indicates decrease in storage, + an increase.


The 1931 dry season, from a water-supply standpoint, began De-
cember 16, 1930, and ended May 13, 1931. The total duration was
149 days. This is 24 days longer than the average dry season, which
begins about January 1 and ends about May 5. During the past
24 years there have only been four dry seasons of longer duration,
those of 1912, 1920, 1921, and 1926. The net yield of the Gatun
Lake watershed was 717 cubic feet per second compared with an 18-
year average of 832 c. f. s., or 14 per cent below the average. The
total yield of the lake's watershed was 1,522 c. f. a., of which the
Chagres River furnished 58 per cent.
Gatun Lake fell from elevation 87.03 feet to 82.14 feet. This drop
of 4.89 feet represented a loss from storage of 22.3 billion cubic feet.
One unit at the Miraflores Diesel electric plant was operated for 46
days and two units for 27 days, saving approximately 0.90 feet of
water on Gatun Lake. Water saving at the canal locks amounted to
approximately 0.45 feet on the lake. The total water saved during
the dry season was thus about 1.35 feet. The momentary elevation
of the lake on May 13, 1931, was 82.08 feet, so that had the above
saving not been made the lake would have dropped below elevation
81 feet.

Investigations, tests, and explorations were concluded during the
first six months of the fiscal year and reports covering this work were
furnished the consulting engineers, Mr. R. F. Walter, chief engineer,
and Mr. J. L. Savage, chief designing engineer, Bureau of Reclama-
tion. On recommendation of the consulting engineers the services of
Dr. Frederick L. Ransome, consulting geologist of Pasadena, Calif.,
and Mr. A. J. Wiley, civil engineer of Boise, Idaho, were secured.
Allilof these gentlemen visited the Isthmus from December 24, 1930,


to January 3, 1931, and a report setting forth their conclusions and
recommendations was submitted to the governor under date of
January 8, 1931.
After a careful study of the consultants' report and consideration
of all data collected on the project, it was decided that the main dam
should be a straight gravity type concrete dam, and that the working
level of the reservoir would be elevation +240 feet above mean sea
level, with the extreme high-water level reaching elevation +263.
It was further decided that work on the design and specifications for
the project would proceed more rapidly if it were performed in the
office of the Bureau of Reclamation at Denver, Colo., with the assist-
ance of the bureau's staff. Funds were transferred to the Bureau of
Reclamation for the expense which would be incurred; and in Feb-
ruary, 1931, the designing engineer of the Panama Canal organization
for the project proceeded to Denver, accompanied by three assistants,
to assist in the design and to represent the governor.
The designs and specifications for the main dam, the left ridge
dam, the saddle dams, and the power plant were completed in June,
and the work was advertised June 15, 1931, for bids to be opened
September 1, 1931.
Design of the power-plant machinery and equipment progressed
satisfactorily, but was not completed by the close of the fiscal year.
However, contract drawings for the power-generator equipment and
specifications for the purchase of the machinery were completed and
Designs and specifications for construction plant were begun, for
use in the event that none of the bids for construction of the project
should prove acceptable and it should become necessary to execute
the work by forces of the Panama Canal.

The principal features of the Madden Dam project will comprise
the main dam across the Chagres River, the power plant, the left
ridge dam, and 13 saddle dams.
The main dam will consist of an overflow spillway section across
the river and the left and right abutment sections. It will be about
950 feet long on the crest and about 220 feet in height at the maxi-
mum section from the lowest point of the foundation to the top of
the roadway. The dam is to be built in sections about 56 feet in
length, formed at the ends to key them together, and the resulting
contraction joints will be provided with systems of pipes for pressure
grouting after shrinkage has taken place in the concrete.
Excavation for the base of the dam is to be carried well into solid
rock, and a cut-off trench will be excavated below the upstream heel.
Grout holes spaced not less than 5 feet are to be drilled in the bottom


of this trench to depths varying from about 20 to considerably over
100 feet, and after concrete has been placed in the trench and to a
depth of at least 8 feet over the adjacent foundation of the dam,
grout will be applied under pressure. An earth blanket will be placed
on the stripped bedrock on the upstream side of the dam for almost
the full width of the spillway section and for a distance of 150 feet
upstream. Concrete aprons will be constructed on the bedrock
immediately upstream from the abutment sections, these varying
in length from 150 feet, where they join the earth blanket, to 30 feet
at the ends of the abutments.
The spillway will be divided into four 100-foot openings by three
concrete piers, and structural-steel drum gates 18 feet high will be
installed on the concrete crests in these openings. The bridge over
the spillway will consist of flat concrete arches spanning the gate
openings. Six rectangular conduits through the base of the spillway
section will serve as sluice outlets, three plate-steel power penstocks
and an additional opening for a future power penstock and two plate-
steel discharge pipes for operation outlets will be embedded in the
left abutment section at the power-plant location. The opening for
the future power penstock will be closed by a reinforced concrete
bulkhead on the upstream face of the dam and by a reinforced con-
crete wall on the downstream slope of the dam. Each conduit through
the spillway section will be controlled by two 5-foot 8-inch by 10-foot
hydraulically operated slide gates arranged in tandem. The flow
through each of the discharge pipes in the abutment section will be
regulated by an 84-inch needle valve installed at the outlet end in
the power house. Each needle valve and power turbine will be pro-
tected by a 132-inch remote-controlled, motor-operated, emergency
butterfly valve installed in the respective discharge pipe or power
penstock at about the axis of the dam. The inlet ends of all conduits
through the dam, including power penstocks, will be protected by
concrete and structural-steel trash racks.
The power plant will be located immediately downstream from the
river end of the left abutment section. The power plant will consist
eventually of three units, each of about 8,000 kilowatts capacity, but
only two units will be installed now. The power house will be con-
structed by the contractor and the power penstocks will be installed
by him, but the hydraulic and electrical machinery in the power plant
will be installed by the Government.
The left ridge dam is to be practically a continuation of the Mad-
den Dam on the south, and will have a length of about 3,300 feet and
a maximum height of approximately 44 feet on the axis. It will
consist of earth and gravel and rock fills. The upstream face will
be protected by concrete paving. A counterforted concrete retain-
ing wall will support the fills at the right end of this dam.


Saddle dams Nos. 5 and 8 will consist of earth and gravel and rock
fills, and the upstream faces will be protected by a 2-foot thickness of
dumped igneous rock riprap over 12 inches of gravel. Saddle dam
No. 5 will be approximately 430 feet long and will have a maximum
height of 53 feet on the axis, while saddle dam No. 8 will be approxi-
mately 900 feet long, with a maximum height of about 42 feet. Con-
crete core walls will be constructed from anchorages in the impervi-
ous rock below the bases of the dams to elevations above the water
level. The 11 other saddle dams will be of earth and gravel and rock
fill, without core walls and without riprap on the upstream slopes.
The maximum height on the axes of these dams will vary from 3 to
25 feet. Trenches filled with earth core material will be extended
down to the impervious material below the bases of all but one of the
smaller dams.
The survey of additional land to be acquired for the project was
completed. Formal notification to the Government of the Republic
of Panama of the necessity to acquire an area of 1,981.8 acres, or
802 hectares, on the left bank of the Chagres River, and an area of
506.6 acres, or 205 hectares, on the right bank of the river, was given
by the United States Minister to Panama on November 10, 1930, and
jurisdiction was assumed over this area on' April 15, 1931.

For the purpose of supplying electric power for construction pur-
poses and later to provide for the transmission of power generated
at the Madden Dam power house, when completed, it is necessary to
construct a high-voltage transmission line from Summit to the dam
site. Erection of the 84 towers necessary to carry the line was nearly
completed at the end of the fiscal year. The line runs parallel to
the Madden Road, on its west side. The towers are designed to
carry 66,000 volts on two 3-wire circuits of No 2-0 stranded copper
wire, although for present construction purposes it is intended to
transmit at 44,000 volts. The existing substation at Summit was
being moved at the end of the fiscal year to the junction of the pres-
ent trans-Isthmian transmission line and the Madden Road to
accommodate the line at that point, and a temporary substation was
being constructed near the dam site to provide electric power during
the construction period of the project.

Other preliminary work necessary to construction was carried out
during the year, such as road construction, installation of telephone
lines, surveying and mapping of the reservoir area and adjacent

. L&A 2

.i,.~ ~





territory, clearing and grubbing of dam site, left ridge and principal
saddles, and the construction of quarters for the Government inspec-
tion forces.

Forty-five seismic disturbances were recorded on the seismographs
at Balboa Heights during the year ending June 30, 1931, as compared
with 28 in the fiscal year 1930 and 64 in the fiscal year 1929. Of the
45 disturbances recorded in 1931, 9 were of comparatively close
origin, the distance to the epicenter being estimated at less than 100
miles. Two of these, occurring on July 30, 1930, and March 7, 1931,
were generally felt locally and the walls of several buildings were
cracked but no material damage was done. Of the quakes of rela-
tively close epicenters, that which was recorded on Mlarch 31, 1931,
as within the 500-mile radius, was the shock which destroyed the
city of Managua, Nicaragua.


Dredges were at work throughout the year on maintenance of the
canal channel in the Atlantic and Pacific entrances, Gatun Lake,
Gaillard Cut, and Balboa inner harbor; auxiliary dredging in Folks
River for France Field fill and stock pile for the Army, and for Colon
fill. Excavation during the fiscal year is summarized in the following

Location Earth Rock Total

From canal prism:
Atlantic entrance (maintenance). ---.-------------------------. 281,000 0 281,000
Gatun Lake (maintenance)----------------.-----------------......... 10,850 1,450 12,300
Project No. 3, Gatun Lake section---------------------------......................... 83,200 45,400 128,600
Project No. 3, Gaillard Cut section............................. --------------------------126,700 406,250 532.950
Project No. 4, Gatun Lake section----------------------------.......................... 9,050 36,600 45,650
Project No. 4, Gaillard Cut section---.------......-------------------......... 1,250 4,400 5,650
Project No. 5, Gaillard Cut section....---------------------------..................... 45,400 218,800 264,200
Gaillard Cut (maintenance including slide). --------------------..... 179,650 399,450 579,100
Projects Nos. I and 1-B (Pacific entrance) -------------------............. 1,087,750 649,700 1,737,450
Pacific entrance (maintenance)---.-------..-..--.....---------------........ 3,628,700 44,950 3,673,650
Total, canal prism------------------------------------........................................... 5,453,550 1,.807,000 7,260,550
Project No. 1-A (Balboa inner harbor) -------....----------------......... 144,900 108,550 263,450
Balboa inner harbor (maintenance).------------------------- 2,040,400 51,100 2,091,500
Dock 4 (Pacific entrance).------------------------------------- 600 1,200 1,800
France Field and Army stock pile--------------------------- 280,000 0 280,000
Colon fill.---------------.....---------------...----------------.......... 788,100 0 788,100
Gatun Lake (M. 8. Lochmonar)-----------------------------............................... 15,750 15,700 31,450
Total, auxiliary.------------------....--------------------...................... 3,269,750 176,550 3,446,300
Grand total-----------------------------------------.........................-.... 8,723,300 1,983,550 10,705,850

Dredging operations at the canal are recorded by three major
districts: The northern district, from the contour 42 feet below mean
sea level in the Atlantic Ocean to Gamboa; the central district,
;Gaillard Cut, from Gamboa to Pedro Miguel Locks; the southern


district, from Pedro Miguel Locks to contour 50 feet below mean sea
level in the Pacific Ocean. Excavation in these three districts is
summarized as follows:

Canal prism Auxiliary Total

Earth I Rock Total Earth Rock Total Earth Rock Total

Northern.... 384,100. 3, 450 4F.7, 550 1,083,850 15,700 1,099,550 1,467,950 99,150 1,567,100
Central...... ------ 3.13,000 1,028,900 1,381,900 0 0 0 353,000 1,028,900 1,381,900
Souihern.... 4,71i,450 694,650 5,411,100 2,185,900 160,850 2,346,750 6,902,350 855,500 7,757,850
Total.. 5,453. 550 1, 807,0007, 2,0, 550 3,269,750 176,550 3, 446, 300 8,723,300 1,983,55010,706,850

In addition to the excavation outlined in the foregoing, 26,331
cubic yards of sand were excavated from the beach near Chame,
Panama, and delivered at Balboa.


Improvement project No. 1. -Work of deepening the Pacific entrance
channel from Miraflores Locks to the sea buoys and the Balboa inner
harbor from -45 feet to a ruling depth of -50 feet, mean sea level
datum, known as improvement project No. 1, was begun in the harbor
in July, 1924, and in the Pacific entrance in November, 1924. Work
has been carried on continuously since that time as equipment has
been available. During the past fiscal year work on this project was
performed by the pipe-line suction dredges No. 86 and Las Cruces,
handling the softer materials, and by the dipper dredges Gamboa. and
Cascadas, excavating hard earth and rock.
Project No. 1-A involves widening the channel to the eastward to a
straight line connecting the southwest corner of Dock 6 with the
northwest corner of Dock 4; dredge area between east prism line and
within 15 feet of face of Dock 4; widen channel to eastward to a line
extending southward from the face of Dock 4 to station 2263+00,
and. from this station deflected to intersect the east prism line at
station 2280 + 00, all to a ruling depth of 50 feet, mean sea level.
Project No. 1-B.-On the west side, widen the channel to the
westward by 300 feet between station 2251 + 25 and station 2281 + 50
with appropriate easements into the present channel, starting on the
north end at the intersection of the west prism lines at the P. I.,
station 2243 + 30, and on the south end at station 2300 + 00 to a ruling
depth of 50 feet, mean sea level.
Total excavation to date on improvement project No. 1 is 6,976,250
cubic yards, of which 2,340,700 cubic yards are anticipated fill and
398,500 cubic yards from project No. 1-B.
Project No. 3.-This project consists of widening the channel at the
north entrance to Gaillard Cut and extending northward, terminating



at the south end of Gamboa Reach; it also provides a tie-up station
opposite Gamboa, as an extension of the original plan.
The dipper dredge Paraiso, with auxiliary equipment, worked six
months on this project during the year, excavating 532,950 cubic
yards of material in the Gaillard Cut section and 128,600 cubic yards
of material from the Gatun Lake section. The total excavation on
this project to the end of the fiscal year was 753,900 cubic yards of
material. At that time the excavation on the project was 42 per
cent completed.
Project No. 4.-This project consists of widening the channel
opposite Gamboa bridge on the east side, starting at the south end
with an easement 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
old. Total excavation to date on this project is 51,300 cubic yards.
At the end of the fiscal year the excavation was 54 per cent completed.
Project No. 5 (revised).-This project consists of widening the
Gaillard Cut approach to Pedro Miguel Locks; eliminating reverse
bend from Paraiso Reach into Cucaracha Reach to increase the field
of vision along Paraiso and Cucaracha Reaches, including free line of
sight to Cucaracha signal station from the west chamber of the locks.
Project starts on south end at station 1920+50 and new west prism
line is projected northward paralleling center approach wall of locks
to station 1913 + 23, at which point a 1 -2' curve continues to station
1900+00, thence continuing in a straight line to station 1868+50,
being tangent to old west prism line at this station. The project also
involves the removal of a ridge to an elevation of plus 128 feet, mean
sea level. This will permit a clear view of Paraiso and Cucaracha
Reaches, as well as Cucaracha signal station, from the bridge of a ship
immediately on leaving the west chamber of Pedro Miguel Locks.
Work was started on this project in December, 1930. The dredge
Gamboa, with auxiliary equipment, worked for four months on this
project, excavating 264,200 cubic yards of material. At the end of
the fiscalyear the excavation on this project was 29 per cent completed.
During the year the following auxiliary work was performed in
addition to canal improvement and maintenance work:
France Field fill.-Suction dredge No. 86, working three months
and assisted by relay pump barge for 54% days, excavated a total of
262,000 cubic yards of sand, coral, and silt from Folks River borrow
pit,; in making a hydraulic fill of approximately 82.5 acres on this
project. Of the total yardage excavated, 191,800 cubic yards were


put on the field during the fiscal year and 21,200 cubic yards in the
preceding fiscal year, making a total fill in place of 213,000 cubic
yards covering 90.5 acres.
Stock pile, United States Army.-Suction dredge No. 86 excavated
18,000 cubic yards of coral and sand from the Folks River borrow pit
which was placed in a stock pile for the United States Army at France
Colon jill.-Preliminary work on this fill, which extends from Ninth
to Eleventh Streets, and from G Street to Shore Road, Colon, was
continued from the previous year. Excavation was begun with
suction dredge No. 86 in November, 1930, and the fill was completed
in April, 1931. A total of 788,100 cubic yards of sand, coral, and
blue clay were excavated from Folks River borrow pits for this work.
The area of the completed fill was 37 acres.
Dredging around grounded vessel.-At about 2 p. m., March 31, 1931,
the motorship Lochmonar of the Royal Mail Steam Packet Co., a
vessel of 9,412 gross tons, 485.5 feet long, 62-foot beam with a mean
authorized draft of 29 feet 6 inches, ran aground in the canal in San
Pablo Reach, north of Buoy 67, during northbound transit, due to
an error in executing order from canal pilot. In order to refloat the
vessel the dipper dredge Paraiso excavated a 40-foot channel the full
length of the vessel on both sides. With the assistance of four tugs
the vessel was refloated at 6 p. m., April 7, 1931. A total of 31,450
cubic yards of material was excavated by the dredge in refloating
the vessel.
Canal prism and auxiliary material dredged during the year was
deposited on the following dumps and fills: 1,599,900 cubic yards on
dumps located in Gatun Lake north of Gamboa; 2,985,300 cubic
yards on the Pacific sea dumps; 1,444,800 cubic yards in area C,
Corozal; 1,411,200 cubic yards in areas E and F on west side of canal;
1,286,850 cubic yards on Piquero fill, west of Balboa; 114,600 cubic
yards in the Rio Grande north of Balboa Harbor; 7,000 cubic yards
north of mole, Dock 13, Balboa; 508,100 cubic yards on right-of-
way of Thatcher Highway; 281,000 cubic yards in Limon Bay west of
channel; 280,000 cubic yards on France Field fill and stock pile;
788,100 cubic yards on Colon fill. In addition, 26,331 cubic yards of
Chame beach sand were delivered alongside dock at Balboa in barges
for canal uses.
The following floating equipment was employed during the fiscal
year: Three 15-yard dipper dredges, operated for 334 days, 229 days,
and 149 days, respectively; one 20-inch pipeline suction dcredge,*354
days; one 24-inch pipeline suction dredge, 305 days; 1 hydraulic


grader, 210 days; one relay pump barge, 240 days; two drill boats,
300 days each; one air compressor, 330 days; crane boat La Valley,
entire year; the 250-ton floating cranes Aiax and Hercules were
operated alternate months except when calls for extra service required
the commissioning of both cranes; five large tug boats were operated
during the year, one or two of the five in turn being under repairs or
held in reserve; and miscellaneous small craft were used in auxiliary
On the dredge Gamboa the single three and one-quarter inch main
hoist cable was changed to twin two and one-quarter inch cables. The
superiority of this arrangement over the old single main-hoist split
dipper stick was evidenced both in smooth operation and reduced
operating costs.
While drill boat Terrier No. 2 was laid up for general overhaul,
the old middle tower and drill were removed and a new 75-foot tower
was installed. The drill was replaced with an improved hammer type
pneumatic drill together with necessary auxiliary equipment, portable
air compressor, etc., for test purposes. At the end of the fiscal year
tests had not been completed but results obtained indicated the great
superiority of this drill over the old piston type now in use.
Slides in the banks of Gaillard Cut were fairly active during the
year but at no time caused interference with shipping. The following
summarizes the slide movements during the fiscal year:
East Cascadas slide.-A slight movement occurred on the water-
front during July, 1930, between stations 1596+00 and 1597+00 E.
Total excavation to date from this slide is 50,145 cubic yards.
West Whitehouse slide.-There has been no movement of this slide
during the year. The dipper dredge Paraiso excavated 2,200 cubic
yards of material remaining in this area from a slide which occurred
the previous year. Total excavation to the end of the year on this
slide is 158,960 cubic yards.
South West La Pita slide.-With the exception of a slight surface
movement over this area during the period from July to September,
1930, this slide has been quiescent during the year. The dipper dredge
Paraiso excavated 5,400 cubic yards of material from this area. Total
excavation to the end of the year from this slide is 38,850 cubic yards.
West Lirio slide.-On July 26 and August 25, 1930, breaks occurred
on this slide between stations 1735+00 and 1740+00 W. This slide
extended from 200 to 400 feet back from the new prism line at eleva-
tions from 60 to 100 feet above the lake level. Material pushed
over the west prism for 80 feet with depths of 20 to 30 feet on the
prism line. There has alto been a general settlement along the water's
edge between stations 1721 + 00 and 1725 + 00 W. Theldipper dredge


Paraiso worked 453r days on the slide, removing 171,750 cubic yards
of material. The surface movement continued over the slide until
December, 1930. There has been no further movement since that
date. Total excavation to June 30, 1931, on this slide is 2,409,270
cubic yards.
East Lirio slide.-No movement occurred during the year. Total
excavation to the end of the year on this slide is 399,912 cubic yards.
East barge repair slide.-On July 10, 1930, part of the Lirio culvert,
head wall, and apron broke down and 25,000 cubic yards of material
entered the canal. This material pushed out over the east prism
line for 65 feet between stations 1746 + 00 and 1749 + 50 E. The dipper
dredge Paraiso worked 8 days on this slide, excavating 26,950 cubic
yards of material. There was no further movement during the year.
Total excavation to the end of the year on this slide is 624,800 cubic
East Culebra slide.-There was no movement on the East Culebra
slide during the year.
West Culebra slide.-There has been a slow continuous movement
of this slide during the year. The reference points on this slide
showed only a slight movement. The dipper dredges Paraiso and
Gamboa excavated 65,600 cubic yards of material from areas fronting
this slide. Total excavation to the end of the year on both the East
and West Culebra slides is 29,443,860 cubic yards. Some new
breaks developed on the south slope of Zion Hill from 900 to 1,400
feet west of stations 1791 + 00 and 1797 + 00 W.
Cucaracha slide.-No movement occurred during the year. Total
excavation to the end of the year from this slide is 9,299,752 cubic
Cucaracha signal station slide.-A general surface movement
occurred over the old area of this slide during October and Novem-
ber, 1930. In May, 1931, the 95-foot berm, consisting of hard rock,
broke away between stations 1828 + 00 and 1830 + 50 W. and came
into the prism, shoaling out beyond the west prism line for about
50 feet. The dipper dredges Paraiso and Gamnboa excavated 44,350
cubic yards of material at this point. Total excavation to June 30,
1931, from this slide is 235,700 cubic yards.
South Cucaracha slide.-There was a slight surface movement
over this slide in October and November, 1930. The dredge Paraiso
excavated 14,300 cubic yards of material between stations 1717+00
and 1725+00 E. Total excavation to the end of the year on this
slide is 142,350 cubic yards.
Cucaracha village slide.-There was no movement of this slide
during the year. The dredge Paraiso cleaned up 4,000 cubic yards
of material from a previous slide at this point. Total excavation
to the end of the year on this slide is 110,800 cubic yards.


Cartagena slide.-Eight observation points were placed on this
slide and observed daily during May and June, 1931. This area,
covering 5.6 acres, showed a slow settlement during these months.
The dredge Gamboa excavated 62,400 cubic yards of material from
this slide during the year. Total excavation to June 30, 1931, on
this slide is 108,650 cubic yards.
Miscellaneous slides.-There were many small breaks at various
points throughout the cut during the fiscal year, but these, like the
major slides, caused no interference with shipping.
The vehicular ferry across the canal at the north end of Pedro
Miguel Locks, between the east and west banks of the canal, was in
daily operation throughout the year, making a total of 16,190 trips
and carrying 75,939 vehicles, as compared with 60,287 in 1930,
40,868 in 1929, and 26,452 in 1928. By months the number of
vehicles transported ranged from 4,341 in June to 10,365 in April
with an average of 6,328. The 10,365 vehicles carried in April
were the largest number transported during any month since the
operation of the ferry was assumed by the Panama Canal, on October
8. 1927. This service was operated on a continuous schedule be-
tween the hours of 6 a. m. and 9 a. m., and from 5 p. m. to 9 p. m.,
and hourly round trips were made between the hours of 9 a. m. and
5 p. m.
The Diesel-engined ferry boats built by the mechanical division
are to be used at Pedro Miguel until the opening of the Thatcher
Highway, and at the end of the year it was expected that the Presi-
dent Roosevelt, the first to be completed, could be placed in opera-
tion about August 1, supplanting the steam tug and barge and
giving more efficient and economical service.
The lighthouse subdivision, in addition to the regular mainte-
nance work on the lights, buoys, and beacons in the canal and adja-
cent waters, effected the following installations, changes, and addi-
tions to the aids to navigation during the year: Improvements were
made on the Taboguilla Light, and a new standard tank house was
erected in connection with it. A green light was installed on the
center line target midway between front range No. 27 and rear
range No. 28 at the north end of Bas Obispo Reach. The west
breakwater beacon at the Atlantic entrance to the canal was rebuilt,
being replaced by a more modern light of the same characteristics.
A new standard tank house was installed at the east breakwater
beacon, Atlantic entrance to the canal. The two green lights at the


southwest and northeast corners of the oil dock in Balboa were dis-
continued and a red light was established in the center of the dock,
about three feet. above and facing the canal. Four lights were
established on the west lighthouse circuits in the Pacific entrance at
stations Nos. 2125, 2140, 2171, and 2190; these lights are on single
piles driven in line with beacons 5 and 9 and are approximately 50
feet west of the west prism line and show a fixed white light approxi-
mately 6 feet above spring tides. South Fraile Light was changed
from flashing white to flashing red. A new standard steel tank house
was erected at, the San Jose lighthouse in the Perlas Islands and
new pipe lines were installed. Sun relays were installed on the
electric lines feeding the beacons on the east and west banks of the
canal north of Gatun Locks, eliminating manual operation from the
control house of the locks.
Overhead transmission lines on the east and west banks of the
canal at Balboa were replaced by a submarine cable. In the Siri
Grande arm of Gatun Lake, 1 % miles of channel were cleared and
An act of Congress, approved February 25, 1929, authorized the
Secretary of Commerce, subject to the consent of the Republic of
Panama and suitable diplomatic arrangements for protecting the
interests of the United States, to establish and maintain aids to navi-
gation on Jicarita Island and on Morro Puercos in the approaches to
the Panama Canal from the Pacific Ocean. After the necessary
negotiations were made the work of erecting lights at these two
points was performed for the Department of Commerce by the
Panama Canal. This included the erection of towers and placing of
lights. The work was begun at Morro Puercos on September 15,
1930, and at Jicarita Island on November 5, 1930, and the lights
were placed in operation on November 2 and 22, respectively.
The board of local inspectors conducted investigations and sub-
mitted reports on 73 accidents to vessels in transit through the canal
or in its terminal ports. The number of accidents in which the esti-
mated damages amounted to $1,000 or more was 17, as compared
with 17 in the fiscal year 1930. A classification of the 73 accidents
shows the following: Struck lock walls or fenders, 23; struck wharves
or wharf piling, 19; collision between ships, 6; damaged by canal
tugs while being assisted, 5; grounded, 4; broke checks in locks, 3;
struck canal bank, 3; damage to ships' hawsers and rat-guards caused
by speed of passing vessels, 2; propeller fouled by lock locomotive
cable, 2; damaged through carrying away of fuel oil line while refuel-
ing, 1; tug lost mainmast while assisting ship, 1; vessel fouled by lock
chain, 1; alleged damage while docking (not proven), 1; fuel-oil


handling equipment damaged when lines parted, 1; and buoy in canal
fouled by vessel, 1.
Following is a brief summary of the more serious accidents, in
chronological order:

Esti- Responsibility
Date Vessel Cause of accident mated a buo
damage a to-

July 23 Jason----.........------ Struck float at Dock 17, Balboa.------------ $3,825 Vessel.
26 Armadale.------- Struck by canal tug Gorgona-----.......-..--------- 1,500 Panama Canal.
Aug. 14 Vancouver City.. Struck wing wall, Miraflores Locks -...--..- 4,300 Do.
Oct. 6 Castilla.-------- Struck by steamship Damsterdyk while 1,325 Do.
undocking with canal tug assisting.
26 Losmar---------- Struck center wall, Pedro Miguel Locks.---. 1,200 Vessel.
Nov. 27 Napier Star------ Struck west bank of canal-----..----.-------- 1,600 Do.
Dec. 1 Willboro.---..----- Collision with steamship Benvorlich in Gall- 11,300 Panama Canal
lard Cut.
Benvorlich.------ Collision with steamshipWillboro in Gaillard 32,000 Do.
Jan. 20 Agwiworld------..- Struck wing wall, Miraflores Locks.......... ----------3,850 Vessel.
Feb. 2 Robt.Luckenbach. Struck soft nose, Gatun Locks-------------.....- 1,300 Do.
23 H. M. S. Nelson.. Struck chamber wall, Gatun Locks-..--------- 1,400 Panama Canal.
28 --do.-----..----- Struck lock wall, Miraflores Locks..----------- 1,200 Do.
Mar. 1 Sun------------ Struck by canal supply boat No. 2..-----------....... 1,400 Do.
20 Pennsylvala.---- Struck lock wall, Gatun Locks-----------.. --- 1,200 Do.
31 Lochmonar I--... Grounded in San Pablo Reach..----..--..-------- (2) Vessel.
Apr. 10 Empress of Aus- Struck wing wall, Pedro Miguel Locks....... -------2,500 Do.
June 11 Pacific Cedar....- Struck center wall, Qatun Locks.--..---------- 2, 500 Do.

1 Such interior examination of the Lochmonar as was possible, and exterior examination by diver, Indi-
cated that the vessel had sustained no damage as a result of grounding. Canal charges for salvage opera-
tions, dredging, lightering, tug service, etc., in refloating the vessel amounted to 310,103.34. The vessel
was delayed at the canal 10 days as a result of the grounding.
I Undetermined.

Under the established practice of requiring overdraft vessels to
have the assistance of a tug in transit through the canal, tug service
for this reason was furnished to 74 vessels bound from the Pacific
to the Atlantic and to 2 bound from the Atlantic to the Pacific, a
total of 76.

Commercial salvage companies have been operating in the areas
adjacent to the canal since 1926, and upon the establishment of this
arrangement the Panama Canal adopted a policy of not undertaking
salvage operations in other than canal waters except where lives are
endangered or great emergency exists. Canal equipment was not
required for any salvage operations outside of canal waters during
the fiscal year 1931. The Panama Canal tug Favorite, operated
principally as a salvage vessel and lighthouse tender, towed the
dredge Peru from Callao, Peru, to Cristobal for dry docking and
thence to Cartagena, Colombia, under contract for the Gahagan
Construction Co. The tow was accomplished without incident.
Other minor tows, incident to traffic, were handled by this tug during
the fiscal year.


The rules and regulations for the navigation of the Panama Canal
and adjacent waters effective January 1, 1926, issued under Executive
order of September 25, 1925, were supplemented or amended during
the year by three supplements referring to the following subjects:
Maintenance and return to the United States of sick or injured
American seamen; load and trim of vessels; partial transit through the
canal; pilotage; insulated towing gear for vessels used for carrying
liquids or solids giving off highly inflammable gases; vessels carrying
explosives consigned to the canal; forward and after lights for self-
propelled vessels from 26 to 65 feet in length; radio communication
from vessels approaching from the Pacific on passing Cape Mala;
routing of radio dispatches; passports or other identification papers
for Chinese seamen; and modifications of the general information
presented in Chapter XV of the rules and regulations.


A statement of the expenses (including depreciation), revenues, and
profit or loss of various subsidiary business operations of the Panama
Canal is presented in Section V of this report, Table No. 23. There
are also shown in the table, for comparison, fixed capital charges at
3 per cent per year, except on public works in the cities of Panama
and Colon, where the rate is figured at 2 per cent, in accordance
with contract. These charges are not actually made against the
several units of the organization but are calculated on the basis of
the capital invested in them as a criterion to indicate their profits or
losses in comparison with the standard of a return of 3 per cent on
the capital.
The total net profit on these operations during the year was
$562,764.17 as compared with $760,071.66 in the fiscal year 1930, a
decrease of $197,307.49, or 26 per cent. In 1929 the net profit was
The fixed capital charges at 3 per cent totaled $836,574.88, indi-
cating a discrepancy between the actual profits and the arbitrary
standard of $273,810.71. Based on the capital invested the net profit
of $562,764.17 showed a return on the investment of approximately
2 per cent.
The business operations of the Panama Railroad Co. on the Isthmus
yielded an additional profit of $991,383.72. In 1930 this figure was
$1,523,874.82. The decrease in 1931, in comparison, was $532,491.10,
or 35 per cent.
The activities of the major business units during the year are dis-
cussed briefly in the following paragraphs:
The volume of work performed for the Panama Canal, which is
the principal item in the work of the mechanical division shops,
increased slightly over that during the preceding fiscal year, due
principally to work for the locks and on dredging equipment and to
the construction of two ferry boats. Work for other departments
of the Government and for the Panama Railroad Co. both decreased
in comparison with the fiscal year 1930. .Work for individuals and
companies, including that on ships transiting the canal or calling at
the terminal ports, showed a slight increase but continued below the
normal for years prior to 1930. For the five fiscal years 1925 to 1929,
inclusive, the value of work for individuals and companies averaged
approximately $925,000 a year. Compared with this, the amount in
1930 and 1931 was about two-thirds of normal work.


The total volume of work for all interests decreased slightly in
the past year in comparison with 1929 and 1930 and some reductions
of force and furloughs without pay were made. The gold force has
decreased about 5 per cent. Work in sight at the end of the fiscal
year was sufficient to occupy the present force for the summer, but
the outlook for the fall indicated further reduction of force.
The value and class of work done and the source of the same for
1931, as compared with the two preceding years, are shown in the
following table:

1929 1930 1931

Marine.----------....-..----------------------------..................... $1,768,321.50 $1,964,834.47 $1,713,789.06
Railroad.--..-...-----------------------------------------........................................ 620,390.50 648,139.44 633,279.48
Stock materials..---------.----------..------------------............. 484,449.51 309,803.58 307,117.44
Sundries...-------------------------------------------........... 387, 578. 99 456,468. 14 678, 025. 66
Total-------------------------------------........................ 3, 260, 740.50 3, 379, 245.63 3,332,211.64
Individuals and companies -------------1--------------- ---- 810,335.67 614,458.01 632,378.02
The Panama Canal ---------------..--------------- 1,350,375.87 1,408, 778. 89 1, 518,041. 62
Panama Railroad Co..------------------...........---------------- 668,010.21 758,293.95 676, 367.39
Other departments of United States Government...---------- 432,018.75 597,714.78 505,424.61
Total ----------------------------------------3,260, 740. 50 3,379, 245.63 3, 332,211.64

1 Includes Panama Railroad steamship line


A total of 165 vessels were dry-docked during the year, 73 at Balboa
and 92 at Cristobal. A classification of these vessels follows:

Balboa Cristobal Total

Panama Canal equipment--------------------------------------------- 26 4 30
United States Navy vessels--------.--.---------------------------------- 17 11 28
United States Army vessels.----------------........---------------------------- 0 6 6
Other United States Government vessels----------------------------------- 0 2 2
Panama Railroad vessels ..--.....------------------------------------------- 0 6 6
Commercial line vessels-------...--------------------------------------- 30 63 93
Total--- ---.---------------------.-------------------------- 73 92 165

The usual run of emergency and voyage repairs was carried out for
commercial vessels both at Balboa and Cristobal during the year.
In addition to these three, large hull damage jobs were successfully
carried out at Balboa. The first of these was the steamship Benvor-
lich, where the port bow, including the deck and hull plating in way
thereof, was ripped away in a collision with the steamship Willboro
in Gaillard Cut. This job involved removal of both anchors and
chain, removal of anchor windlass, casting and renewing of one hawse
pipe and repairing the other, besides extensive renewal of the involved
hull and deck plates. The work was completed in 18 days at a total


cost of $23,000. This record could not have been made because of
the lack of mechanics had not the division been engaged in the con-
struction of two ferry boats. The next was the steamship Condor
of the Grace Line, damaged in a collision off the Peruvian coast.
This job entailed complete renewal of the starboard side of the hull in
way of Nos. 1 and 2 hatches. It was completed in 31 days at a cost
of $49,000. The superintending engineer of the Grace Line stated
that both time and money had been saved by having the work
performed at the canal, and that the quality of the work could not be
had in a commercial shipyard. Third was the renewal of the bottom
(almost complete) of the steamship Yornachichi, a Shipping Board
vessel, operated by the Roosevelt Steamship Co., which went aground
on Cape Maysi, Cuba. This work was completed in 45 days at a
cost of $111,000.
As a part of the annual fleet maneuvers and for the purpose of
testing the availability of the Panama Canal as a docking place for
battleships, the U. S. S. West Virginia was successfully dry-docked
for cleaning, painting, and under-water work. The only deficiency
noted was the inability to furnish the vessel with an adequate supply
of direct-current electricity from shore. The available equipment can
supply only 25 kilowatts. While the Panama Canal can not be
expected to supply the large quantity of direct current required by a
battleship, adequate equipment can be installed to care for merchant
ships and small warships.
Besides the usual overhauls and repairs to dredging division floating
equipment, the conversion of the dipper dredge Gamboa from a single
to a double hoist was completed during the year. The alteration
proved very successful, so much so, in fact, that plans were made for
similar conversion of the dredges Cascadas and Paraiso. The altera-
tions were in accordance with plans furnished by the builder of the
The usual annual overhaul of marine division floating equipment
was carried out and in addition a new class C launch, of a new pat-
tern, specially designed for boarding parties, was built for that
The ferries President Roosevelt and Presidente Amador were built and
launched during the year and are now nearing completion. It is ex-
pected that the President Roosevelt will be ready for service by August
1, 1931. These ferries, designed to serve as a crossing of the canal in
Balboa Harbor for vehicular traffic between Panama City and the
national highway system over the western half of the Republic of
Panama, will each have a capacity of 30 passenger automobiles.
They are 125 feet long, 38 feet wide over the guards, and draw slightly
under 7 feet of water. The hull proper is 122 feet long between end
posts, is of 30 feet molded beam, and has a molded depth of 10 feet


9 inches. The hull is powered with a 375-horsepower, direct-connected,
8-cylinder reversible Diesel engine manufactured in the United States.
Two rectangular-hold barges 84 feet long, 24 feet beam, 7 feet depth,
with a rated capacity of 225 tons, were built for the Panama Railroad
Co. during the year for use by the receiving and forwarding agency at
Cristobal as cargo lighters.

The remaining two towing locomotives, of the four reported in the
last annual report, were completed and turned over to the locks divi-
sion. The manufacture of three more towing locomotives has been
begun and has reached a point where all the castings have been made
ready for machining. The nineteen 76-inch cylindrical valves, re-
ferred to in the last annual report, were completed and installed.
The installation of these valves completed the replacement of all of
the 120 old-type cylindrical valves with this new pattern which are
fitted with renewable bronze seats and wearing shoes.
Work on the erection of one of the 1,000,000-gallon steel water tanks
at Mount Hope was started at the end of the fiscal year. Two of
these tanks are to be erected with a combined capacity of 2,000,000
gallons as additional provision for the water-supply system at the
Atlantic end of the canal. These new tanks are made necessary by
the increased population of the Cristobal-Colon district, particularly
the Army and Navy posts, and the need of a large water reserve which
can be called upon in the event of an emergency. The development
will give a reserve and pressure storage of 2,000,000 gallons, as com-
pared with the existing reserve of 500,000 gallons. The tanks are
elevated, their bottoms about 154 feet above sea level, their tops
approximately 35 feet higher.
Erection was also started at Mount Hope of a 13,600-barrel gasoline
storage tank for the Texas Oil Co. This tank was fabricated in the
United States and is being erected by the mechanical division.
The last of the four new passenger cars for the Panama Railroad, re-
ferred to in the last annual report, was completed during the year.


The new machine shop and the combined forge, sheet metal, and
pipe shop at Cristobal are now in regular use, having been entirely
completed with the exception of one corner of the machine shop, where
completion is obstructed by the temporary retention of the old power
plant. The remaining portions of the old wooden buildings have
been completely demolished. Of the new power plant, four bays, to
house the electrical plant and air compressors, have been completed
and temporary closure provided at the uncompleted end. Comple-

w o

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-4 0


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tion of the remaining two bays, which will house the pumping plant
for the enlarged dry dock, will await reconstruction of the dry dock,
although the steelwork has been fabricated and closure and roofing
materials are on hand. Installation of electrical equipment and air
compressors is proceeding in the newly built power plant. The con-
crete building formerly occupied by a section of the Cristobal store
has been vacated by the storekeeper and turned over to the mechanical
division. It is being remodeled into a paint shop, rigging loft, mold
loft, and sail loft, with space at the end for marine electricians. With
this remodeling completed the old wooden buildings formerly used for
these purposes will be demolished. Along with other work at the
Cristobal shops, considerable filling and regrading, relocation of rail-
road tracks, and reconstruction of underground utilities has been
The mechanical division earned net revenues of $49,999.84 after
making deductions for Cristobal shop improvements. Local reserves
as of June 30, 1931, for repairs to equipment and buildings and for
replacements of machinery and equipment, improvements to Cristobal
shops, and gratuity for employees' leave totaled $556,605.77, as com-
pared with $531,818.46 at the end of the fiscal year 1930.
The sales of coal from the plants at Cristobal and Balboa totaled
169,504 tons during the year, as compared with 282,569 tons during
the year 1930 and 305,434 tons during 1929. The total revenue from
|the sale of coal and charges for extra handling during the fiscal year
amounted to $1,319,552.74. The total cost of sales, including oper-
ating expenses, was $1,458,569.10, resulting in a net loss of $139,016.36,
as compared with a net profit of $258,748.68 for the preceding year.
The decrease in coal sales in 1931 as compared with 1930 was
approximately 40 per cent. The decrease in coal-burning ships
transiting the canal was approximately 20 per cent (from 1,257 such
ships in 1930 to 1,008 in 1931). The greater relative decrease in coal
sales was due primarily to the fact that during the time of light
cargoes many of the ships have been using vacant cargo space to
carry extra bunker coal, loaded at ports in Europe or the United
States where coal is cheap; this decreases the amount of bunkers to
be loaded while on the voyage.
In continuation of the policy of filling Navy coal requirements
from the dry-coal stock of the Panama Railroad on the Isthmus,
10,000 tons were transferred to the Navy during the year at the cost
in pile to the railroad.
The selling prices of coal were reduced on December 2, 1930, from
$8 to $7.25 per ton at Cristobal and from $11 to $10.25 at Balboa.



During the fiscal year there was purchased and received on the
Isthmus 323,952 barrels of fuel oil, of which 249,429 barrels were
stored in tanks at Balboa and 74,523 barrels in tanks at Mount Hope.
The total fuel oil handled by the Balboa and Mount Hope fuel-
handling plants amounted to 12,120,522 barrels for 2,161 vessels,
both receipts and issues. There is storage space available on the
Isthmus for 2,441,040 barrels of fuel or Diesel oil, 1,246,540 barrels at
Balboa and 1,194,500 barrels at Mount Hope.
Gasoline received during the year amounted to 3,722,951 gallons,
1,086,794 at Mount Hope and 2,636,157 at Balboa. There is storage
space available on the Isthmus for 4,029,000 gallons of gasoline or
kerosene, 1,272,000 at Mount Hope and 3,757,000 at Balboa.
There were also received on the Isthmus during the fiscal year
939,047 gallons of kerosene in bulk; 357,502 gallons were stored at
Mount Hope and 581,545 gallons were stored at Balboa.
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).


The business in fuel and Diesel oils during the fiscal year 1931 is
summarized in the following tabulation:

Balboa Mount Total

Service to ships:
Fuel oil sold to ships by Paamaanama Canal, barrels---..-------------. 3,254 3,024 278
Fuel oil sold to ships by companies, barrels------------------... 1,203,673 2,750,300 3,953,973
Total sales to ships-----------------..........----.--------.------ 1,206,927 2,753,324 3,960,251
Number of ships bunkered by Panama Canal.------------------ 4 6 10
Number of ships bunkered by companies----------------------- 475 874 1, 349
Total ships supplied-..--------------------------------------. 479 880 1.359
Diesel oil sold to ships by Panama Canal, barrels... -..-----..--------- 717 142 859
Diesel oil sold to ships by companies, barrels-----...------------.. 1,325,623 319,131 1,644,754
Total sales to ships. ----...--------------.. ------------------ 1,326.340 319,273 1,645,613
= I
Number of ships supplied by Panama Canal---------------.----.. 4 6 10
Number of ships supplied by companies---.-----...------..---------- 440 142 582
Total ships supplied.--------------------------------------- 444 148 692
Number of Panama Canal craft handled---------..--.--------------- 57 60 117
Number of other ships handled--------------.. ------------------. 979 1,065 2,044
Total vessels handled---------..-----.......-----..------------------ 1,036 1, 125 2,161
Aggregate handling of fuel and Diesel oil, barrels:
Received by Panama Canal (fuel oil) --------.. ----.---.--------- 249,430 74,744 324,174
Used by Panama Canal.------------------------------------ 209,054 97,850 306,904
Pumped for individuals and companies.--..-...----------..--------. 5,178,530 6,180,553 11,359,080
Sold by Panama Canal-..----------.------------ ...--------------. 9,255 15,883 25,138
Transfers between tanks-------..----..------------------------ 35,369 69, 848 105,217
Total barrels pumped..------------------------....---------. ,.681,.644 6,438,878 12,120,522

During the year disposition was made of $472,274.94 worth of
obsolete and unserviceable property and equipment by sale, or by
destruction where the items had no money value. Replacement was
made in all cases where conditions warranted.
The operation of the storehouses was continued under the same
policy as during preceding years, and inventory values were held
down to the lowest practicable figure. The value of stock on hand
at all storehouses at the end of the year, exclusive of scrap and
obsolete materials, was $4,959,523.22, and in the hands of canal and
business divisions $61,101.87, or a total of $5,020,625.09. The total
value of all materials received on requisition from the United States
during the year was $4,638,435.33. Local purchases were made to
the extent of $555,658.43. Scrap and obsolete stock remaining on
hand at the end of the year were valued at $59,259.33.
The general storehouse at Balboa (including the medical store-
house) and the branch storehouses at Paraiso and Cristobal handled
a total of 155,829 requisitions and foreman's orders during the year.
The value of all issues for the year was $4,674,615.64. Material and
supplies sold to steamships, employees, and others aggregated
$1,149,276.94, and involved 69,680 separate sales.
Native hardwood lumber operations were continued, as during the
preceding year, and 425,076 board feet of logs were purchased, as
compared with 326,069 board feet during 1930. In addition 4,179
hardwood crossties were purchased from local contractors.
As in the past, the principal purchases of supplies during the year
were made by the Washington office. Branch offices in charge of
assistant purchasing agents were continued at New York, New
Orleans, and San Francisco. While these offices have not been called
upon to make any purchases during the year, they have acted as
receiving and forwarding agencies for materials which have been
purchased through the Washington office for forwarding to the
Isthmus through their respective ports.
The large majority of purchases are made for delivery on the
Isthmus, in accordance with the long-established policy of permitting
competition for the canal's requirements on even terms in all sections
of the country. Inspection of materials has been continued, as
heretofore, by a corps of inspectors in the field, assisted as occasion
requires by officials of technical branches of the Government. The
number of orders placed, 7,260, was 743 less than for the fiscal year


1930. The total value of orders placed during the year was $3,763,-
504.71, as compared with $5,552,614.83 for the fiscal year 1930, a
decrease of $1,759,050.12 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 depot, United States Army, Brooklyn.
In the assistant auditor's office 12,341 claims were handled and
correspondence conducted relative thereto. This indicates a decrease
over 1930 of 889 claims received, while there were examined and
passed for payment 816 less than during the preceding year.
During the year 10,726 disbursement vouchers, amounting to
$4,821,085.15, and 577 collection vouchers, amounting to $321,-
583.91, were prepared. In addition to the collection vouchers 19
collections, amounting to $40,168.31, were made by transfer of
appropriations through the General Accounting Office, making the
total amounts collected $361,752.22 on 596 accounts. There was a
decrease of 988 in the number of disbursement vouchers, with a
decrease in disbursements of $1,326,432.84 as compared with the
last fiscal year. There was an increase of 50 in the number of collec-
tions, with a decrease of $21,656.27 in the amount collected.
During the year 49 contracts were prepared, amounting to
$1,452,368.14. This is a decrease of 31 contracts and a decrease
of $1,147,723.19 in amount as compared with 1930.
In representing the Panama Canal in the United States, the
Washington office handled extensive correspondence and maintained
representation on various Government boards and coordinating
committees, in addition to contacts with other Government depart-
ments and business interests with reference to canal activities.
The gross revenue from harbor terminal operations during the
fiscal year amounted to $1,456,570.55; the operating expenses were
$1,128,602.13, leaving a net revenue of $327,968.42, as compared
with $331,937.45 last year, a decrease of $3,969.03 for the year.
There were 1,501,302 tons of cargo stevedored and transferred this
year, as compared with 1,686,464 tons in 1930, a decrease of 185,162
tons for the year; 3,675 cargo ships and 1,284 banana schooners
were handled, as compared with 3,801 and 995, respectively, in 1930.
Agency service was furnished to 266 commercial vessels, as com-
pared with 278 last year.


The operations of the commissary division were continued along
the same lines as in previous years, and the general organization
remained the same. The policy of confining purchases to the
United States was continued as far as practicable. Due to local
conditions, and the fact that a large percentage of the employees
are West Indian negroes, it is necessary for the commissary division
to stock a certain quantity of foreign products for which these people
express a definite preference. In addition to this, a great many
foreign vessels transiting the canal and making purchases while
en route demand certain well known and widely advertised commniodi-
ties of foreign manufacture.
The greater portion of the fresh beef supply for the past year was
purchased locally from cattle raisers in Panama who depend more
or less on the canal as a market for their stock. One thousand nine
hundred and eighty-one head of fat steers were purchased from cattle
raisers in Cuba. This was a very fine lot of beef stock averaging
100 to 200 pounds per head heavier than the Panama native steers
and when slaughtered yielded a considerably higher dressed weight
percentage. It is not practical 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 commissaries to
individuals or organizations regularly entitled to buy in the stores.
The majority of the infractions were of a more or less minor nature
and promptly corrected. Total gross receipts from commissary sales
and services during the year amounted to $10,068,200.60 as com-
pared with $10,791,489.91 reported last year, a decrease of $723,289.31
or 6.7 per cent. Sales to commercial vessels decreased more markedly
than any other class of sales; the total in 1931 was $789,365.78 which
was less by $309,605.34 than in 1930, the decrease being approxi-
mately 28 per cent. This was occasioned by reduced traffic, a
tendency toward reduced purchases, and lower prices. Sales to
Naval vessels, amounting to $499,969, showed an increase of
nearly 9 per cent, due to fleet concentrations at the Isthmus. Retail
sales, principally to employees, showed a decrease of over 3 per
cent, due primarily to a smaller force of employees and to reductions
in prices.


The distribution of sales as compared with the two preceding
years was as follows:

1929 1930 1931

United States Government (Army and Navy)----------. $1, 515, 100. 29 $1.435, 118.26 $1,455,011.66
The Panama Canal----------------------------- ----- 852,548.25 811, 113.30 701, 334. 5
Commercial ships.....--------..----------------------- 1,134,886.75 1,098.971.12 789,365.78
Panama Railroad...----..--------.----------------------- 287, 390. 17 372, 686.30 299, 81816
Individuals-and companies -....------------------------- 713,041.23 693,724.76 685,067.17
Employees--.-------.--.----------------------------- 6, 431, 718.85 6,820,568.75 6,546,485.93
Gross sales..-------------------------------- 10,934, 685. 54 11,232, 182. 49 10,477,083. 64
Less discounts, credits, etc..--------....--.----------------- 455, 114. 33 440,692. 58 408,883.04
Revenue from sales-----------------.. ... ---------10,479,571.21 10,791,489.91 10,068, 200.60
Supplies for expenses:
Retail commissaries and warehouses------------.---- 43, 467.34 49, 123.67 47, 912.84
General.------------...----------------------------- 1,669.27 4,152.68 4,376.65
Plants -------------------------------------------- 33, 515.51 30,579.70 32,796.89
Total---------------------------------------- 78,652. 12 83,856.05 85, 086. 38
Loss by condemnation, pilferage, shrinkage, clerical
errors, etc..---------.--- -------- -------------- 188,043.15 249,754.72 215,794.35
Grand total..-------------. ------------------- 10,746, 266.48 11, 125, 100. 68 10,369,081.33


Purchases during the year aggregated $7,273,816.74, a decrease of
$920,903.62, or 12.5 per cent, as compared with the preceding year.
The following tabulation shows the value of the various items pur-
chased and the markets from which purchased as compared with the
preceding years:

1929 1930 1931

Groceries .-------.-------------------------------- $1,688,256.48 51,690,265.72 $1,548,080.12
Candies I------------------------------------------------.. 30,931.49 62,363.08 67,331.34
Tobacco -----------------.--.----------------------- 444,995.94 440,278.68 424,311.36
Hardware ------------------------------------------ 494.128.65 494,546.27 535,034.71
Dry goods..----------- --- ----- -------------- --- 1,262,837.68 1,378,259.34 1,096,416.14
Shoes ---------------------------------------------- 359,760.31 379,506.00 299,364.78
Cold storage. --------------------------------------- 1,733,549.20 1,764,695.41 1,548,791.97
Toys.------------------------------------------------ 34,125.36 43,049.80 46,825.28
Stationery2 ------------------------------------------------------------ ---------------- 47,717.63
Raw material ---------------------------------- 521,515.42 508,427.37 437,442.08
Cattle and hogs.---.---- ---..-- ...----------------------- 538,486.59 601,400.36 640,918.70
MUk and cream ----------------------------------------- 149,813.60 170,243.06 178,507.92
Eggs --------------------------------------------- 254,327.01 318,811.26 201,109.50
Butter --------------------------------------------..... 303,233.36 166,747.96 195,428.906
Dressed beef ................................----------------------------..-----------.. 188,046.58 176, 126.05 6,536.25
Total--------------- -------------------.. ----. 8,004,007.67 8, 194, 720.36 7,273,816.74
United States-----..-...------------------------------------ 5,613,245.70 5,727,148.66 6,171,322.77
Europe and Orient ------------------------.. 1,109,002.78 966,916.57 777,96.&8
Central and South America-.- -------------- 378, 743. 13 512,790.51 259,255.91
Cattle industry ------------- .------------------------ 620,837.40 696,071.26 750,313.47
Panama Canal ------------------------------------- 108,445.59 110,470.94 90,871.54
Local -------------------------------------------- 1-73,733.07 181,32n142 224,08&647
Total-..-..-------. ----------------------------- 8,004.007.67 8,194,720.36 7,273,816.74

I Candies included in groceries prior to Jan. 1, 1929.
2 Stationery included in dry goods prior to Aug. 1, 1930


The output of the various manufacturing plants and laundry had
a total value of $2,317,052.72 as compared with $2,318,030.55 for the
preceding year, a decrease of $977.83. The principal products of the
major plants and their value are summarized as follows:
The output of the bakery included 5,461,573 loaves of bread,
2,175,602 rolls, and 381,347 pounds of soda crackers, together with
cakes, pies, and doughnuts to the total value of $324,628.30. The
number of loaves of bread was greater than in any of the preceding
10 years.
The coffee roasting plant turned out 228,160 pounds of coffee, corn
meal, peanuts, and almonds to the total value of $83,509.97.
The principal output of the ice cream and milk-bottling plant con-
sisted of 44,891 gallons of ice cream, 725,392 quarts of milk, and 26,237
quarts of cream with a combined value of $252,887.37.
The ice manufactured during the year totaled 33,022 tons, valued
at $260,677.49.
The value of products manufactured in the industrial laboratory
totaled $251,945.45.
The abattoir turned out 4,987,116 pounds of dressed beef and by-
products to the total value of $640,918.70.
The number of pieces of laundry handled was 7,208,634 and re-
ceipts aggregated $273,933.52.
The hotels Tivoli and Washington, at the two ends of the canal,
are operated as essential adjuncts to afford suitable accommodations
to persons having business to transact with the canal, foreign visitors,
visiting officials, etc. Frequently during the dry season they are
filled to capacity with tourists but this condition did not occur this
year, passenger traffic having fallen off along with other business
during the depression.
The cost of operating the Hotel Tivoli during the year was $233,-
262.79, which was $31,457.41 more than the revenue derived. The
cost of operating the Washington was $190,519.75, which was $32,929
more than the revenue derived. Operating expenses at both hotels
included increases in unexpended reserves. These were $16,771.21
for the Tivoli and $21,167.05 for the Washington, a total of $37,938.26.
The restaurants and silver messes continued to be operated under
contract during the year, with the exception of messes for both gold
and silver employees in construction camps, etc.


The principal projects of construction consisted of the following:
Supply department storehouse and office building, Cristobal; silver
commissary, Mount Hope; 45 new family quarters; 10 ordnance
magazines for the United States Army; 1 barracks building for
United States naval radio station, Balboa; 6 officers' quarters, 6 chief
petty officers' quarters, 1 garage and storeroom for the Inited States
Navy at Coco Solo and naval radio station at David, Republic of
Panama. At the close of the year the following were the principal
projects on which construction work was incomplete: New ward at
Corozal hospital, electric storehouse at Balboa, construction of main
building at Gamboa penitentiary, storehouse for spare miter look
gates, 28 family quarters at Cristobal, and 11 family quarters at
Maintenance of existing structures was continued as heretofore.
Plans outlined for 1932 include the commencement of construction
of new high school at Cristobal, elementary school at La Boca,
nurses' quarters at Colon Hospital, and fire stations at Pedro Miguel
and Gatun.
The following family quarters for American employees, for which
funds were provided by the Panama Railroad Co., were under con-
struction at the end of the fiscal year: At Cristobal, 3 official, type-106
houses, 3 apartments; 12 type-103 houses, 24 apartments; 2 type-104
houses, 4 apartments; and 11 type-101 houses, 11 apartments; at
Balboa, 11 type-103 houses, 22 apartments, and one converted 2-story
2-family house, 2 apartments.
The family quarters situation for the entire Zone is easier at present
than it has been for several years due to the completion of new quar-
ters under the 1931 building program which provided quarters for
the majority of applicants. Practically all gold family apartments
authorized for 1932 and 1933 will be in the nature of replacement of
old quarters which are of no further service and beyond economical
repair. With the completion of the 40 family apartments now under
construction at Cristobal, there will be left for future replacement 110
apartments. A similar condition exists at Gatun where it will be
necessary to replace some 50 family houses and 2 bachelor houses
during the next two or three years. In the Ancon-Balboa district
there are approximately 376 family and 450 bachelor apartments
and in Pedro Miguel district approximately 143 family and 60
bachelor apartments which should be replaced as soon as funds can
be made available.


At the close of the fiscal year there were 44 applications on file for
family quarters, distributed as follows: Ancon-Balboa district, 27;
[ Cristobal district, 6; Pedro Miguel, 9; and Gatun, 2. New houses
under construction at Balboa will provide 24 additional family apart-
ments in the near future which will reduce the waiting list accord-
ingly. All quarters were maintained in as good condition as available
funds would permit. A considerable number of old frame quarters
were disposed of by sale, after advertising, to make room for new
houses on the same sites, but there are still several of these which
should be abandoned. Maintenance expenses on such buildings are
kept down to the absolute minimum.
During the year 41 houses or 70 family apartments were con-
structed and occupied at Balboa and 4 houses or 4 apartments at
The demand for silver quarters is still far in excess of the supply.
At the close of the fiscal year there were 1,801 applications for silver
family quarters on file in all districts, distributed as follows: Ancon-
Balboa, 910; Pedro Miguel, 126; Cristobal, 730; and Gatun, 35. Over
50 per cent of the silver employees are required to live in Panama
and Colon where rental rates are considerably higher than charged
by the canal for quarters in the Canal Zone. Construction of addi-
tional quarters for these employees should be continued to enable
them to live near their work and place them on a more economical
basis. The cost of operation and maintenance of silver quarters
exceeded the rents collected.
Panama Railroad lands in the cities of Panama and Colon and
public lands in the Canal Zone are administered by a joint land office.
During the fiscal year 80.49 square meters of Panama Railroad land
in the city of Panama were sold for $2,414.70, making a total revenue
from land sales since the Panama Railroad Co. adopted the policy of
selling its real estate holdings of $690,485.44.
There were in effect at the close of the fiscal year 1,456 leases and
14 licenses covering the use of Panama Railroad properties in the
cities of Colon and Panama. The income derived from these during
the fiscal year was $322,978.54. This represents an increase in
revenue over the year 1929-1930 of $48,584.76 which was due to the
issuance of five new leases and to the increased rentals charged on
lease renewals, as a considerable, number of leases .expired during the
year and were renewed at increased rentals.


All of the improved property of the Panama Railroad in Panama
and Colon is now held under lease. Many new buildings were erected
during the year by lessees of lands previously not occupied by im-
provements, and a considerable number of old wooden buildings have
been demolished and replaced by modern buildings of fire-proof
A total of 1,927 licenses, covering 4,916 hectares (12,147.93 acres)
of agricultural land in the Canal Zone, were in effect on June 30, 1931.
The rental collected for licenses on these lands aggregated $26,886.35.
This is a reduction in the number of licenses over the fiscal year 1929-
30 of 175, and a reduction of the area held under license of 886 hectares
(2,189.39 acres). The average holding under these licenses was 2.55
hectares (6.30 acres) per license.
The gross income from all real estate operations handled by the
land office during the fiscal year was $402,009.59, made up as follows:
Rentals on property in the cities of Colon and Panama, $322,288.54;
rental of agricultural lands in the Canal Zone, $26,886.35; rentals of
building sites and oil tank sites, $50,420; sale of property in the
city of Panama, $2,414.70.
Motor and animal transportation for all departments and divisions
continued to be supplied by the transportation division under the pool
system. The division is charged with the operation and maintenance
of all transportation equipment and is required to operate upon a
self-sustaining basis. There was a considerable decrease in hauling
operations with the completion of the Madden Road, but with the
resumption of work on the Thatcher Highway during the dry season
of 1931-32, a temporary increase is expected.
Eighty-four cars and trucks were purchased and 77 were retired
during the year. Equipment on hand at the close of the year con-
sisted of 326 cars and trucks, 6 trailers, 16 motor cycles, 9 mowing
machines, and 10 mules. Revenues exceeded expenditures for the
fiscal year by $12,027.97, as compared with an excess of $53,372.33
for the preceding year.

The printing plant carries in stock and manufactures such necessary
stationery, forms, etc., as are required on the Isthmus in connection
with the canal and Panama 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, and to keep
the working force and inventory stock down to the minimum. The


manufacturing output for the fiscal year amounted to $170,386.47
as compared with $189,834.25 for the previous year, a decrease
of $19,447.78. The inventory value of material on hand at the end
of the year was $79,605.30. Three automatic presses and one
automatic ruling machine were installed during the year by way of
All plantations continued to be operated under contract under
the same general conditions as for previous years.

The operation of the dairy farm continued along the same lines as
for the previous years, and milk production exceeded that of any other
year since its inception. The total milk production was 148,059
gallons, a gain of 12,891 gallons over last year. The health depart-
ment dairy at Corozal was closed down during the year and 54 head
of the stock from that dairy were taken over by the supply depart-
ment. One hundred head of grade Jersey dairy cows and 15 head of
purebred Holstein heifers were purchased in the United States and
added to the herd during the year. Five purebred Holstein bulls
were sold during the year to private parties. At the close of the fiscal
year the herd numbered 634, including 76 bulls and calves, as com-
pared with 515, including 140 bulls and calves, at the close of the
previous fiscal year.
At the beginning of the fiscal year the cattle in pastures numbered
356 head. As stated in last annual report the use of pastures has
been abandoned to a large extent and the practice adopted of pur-
chasing fat cattle for slaughter shortly after delivery. During the
year 1,981 head of fat cattle were purchased in Cuba and 7,388 in
Panama. Contract was entered into on June 24, 1931, for the pur-
chase of 5,000 head of fat cattle from Alfredo Infante, of Holguin,
Cuba, for delivery between September 1, 1931, and September 1, 1932.
Deaths from stock during the year were 34 fat cattle, 8 breeding
stock, and 34 dairy stock.

These gardens continue to grow more deeply into the life of the
community. The purposes are coming to be more clearly understood
in the introduction, testing, establishing and disseminating of valu-
able plants; in the conducting of experimental work with plants and
in fostering plant life in every way possible as a factor in community


betterment and development. To this end the gardens maintain
exchanges of seeds and plants with botanic gardens, agricultural
departments, experiment stations and individuals in many parts of
the tropics and subtropics. The number of local visitors is increasing
and each year brings a larger quota of visitors from abroad. Each
year witnesses the coming to maturity of some plants not seen before
in this part of the world. Since water is now being made available for
use during the dry season, many plants that have been awaiting
opportunity are now being set out. The inflow of new introductions
that are expected to be of value is maintained by exchanges through
correspondence and by a policy of active personal collection in foreign
countries as opportunity offers.
Among the plants that have become sufficiently established to
attract special attention during the year are:
Mangosteen (Garcinia mangostana).-This is one of the most highly
prized fruits of the Oriental tropics, and is native of Malay and the
East Indies. It was introduced into the Isthmus by Dr. David
Fairchild, then chief of the office of foreign plant introduction of the
United States Department of Agriculture. Two or three of the first
trees were planted at Frijoles and have produced some fruit for
several years. The progress of those at the experiment gardens has
been watched with deep interest. The trees have made excellent
growth, and, while only 6 years old, several have yielded a few fine
fruits. This is considered rather precocious for mangosteen trees
and, together with their vigorous, healthy, and undisturbed growth,
gives much promise for the future.
Hawaiian cooking bananas. -This cooking banana, as it is com-
monly called in Hawaii, is like the plantain in its culinary uses but
entirely different in appearance and quality. There are several
varieties of these, some of the more important being classed as the
Maoli group. Three or four varieties of this group were introduced
from Hawaii early in 1929 and some of these have fruited. If per-
mitted to become thoroughly ripe, even to the degree of the blacken-
ing of the skin, this variety when baked is a most delicious food used
either as a vegetable, like baked plantain, or with cream and
sugar as a dessert fruit.
Pineapple, variety Cayenne (HFlawaiian).-In the latter part of
October, 1929, about 3,000 slips and suckers of Cayenne pineapple
were received from Hawaii. This is the variety upon which the Ha-
waiian pineapple-canning industry is founded and because of the
leading place which Hawaii has taken in pineapple canning and the
prominence which it has given this pineapple, the variety is often
spoken of as Hawaiian. The recognized name, however, is Cayenne.


The plants were set out promptly when received, which was less than
two months before the end of the wet season, hence they had only
two months of good growing weather before they were overtaken by
the dry season. No irrigation water was applied. Nevertheless the
plants made good growth and began to ripen fruit in June, 1931,
20 months after planting. This result is about the same as that
experienced from October plantings in Hawaii. In flavor, texture,
and general appearance the Cayenne pineapples grown at Summit
do not appear to be inferior in any way to the high standards of
excellence that have been attained in Hawaii. It will be possible to
disseminate a considerable number of plants during the comining year.
Solo papaya.-This papaya, another introduction from Hawaii,
has been found to be superior in flavor and texture to any other
papaya so far introduced.
Sugarcanes.-Several of the many varieties of sugarcanes that
have been introduced and held under test have proven to be very
promising for this region and are being disseminated for trial under
plantation conditions.
The gross revenue from the operation of telephones, electric clocks,
and electric-printing telegraph machines amounted to $246,053.48
and the total expenses were $199,858.77, leaving a net revenue of
$46,194.71, as compared with $39,342.41 for the preceding year, an
increase of $6,852.30 for the year.
During the year, 1,218 telephones were installed and 1,155 re-
moved, making a net increase of 63 telephones for the year. At the
end of the year the total number of telephones installed numbered
2,999 as compared with 2,936 for the preceding year. A total of 22
automatic typewriters, or electric printing telegraphs, were in use
at the end of the year; 14 are in use by the Panama Canal depart-
ments, 2 by the Panamanian Government, and 6 by commercial
enterprises. Electric clocks in service numbered 74.
The principal telephone change during the year was the replace-
ment of the worn out and inadequate manually operated system at
Gorgas Hospital by dial phones as a part of the automatic system.
The shift to the new system was made on November 16, 1930.
Many of the business activities on the Isthmus connected with the
operation of the canal are conducted with funds of the Panama
Railroad Co. Included in these are the wharves and piers at the
harbor terminals, the commissary system, coaling plants, hotels, 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 Co., 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 lands and buildings under the land agent; and the com-
missaries, hotels Washington and Tivoli, plantations, dairy farm,
and cattle industry under the chief quartermaster of the Panama

The gross revenues during the fiscal year 1931 from the operations
of the Panama Railroad proper (not including subsidiary business
activities) amounted to $1,685,607.81; the gross operating expenses
were $1,528,555.62, resulting in a net revenue of $157,052.19, as
compared with $302,355.73 last year, a decrease of $145,303.54 for
the year.
Tonnage of revenue freight transported during the year aggre-
gated 323,476 tons, as compared with 441,461 tons during 1930, a
decrease of 117,985.
Statistics covering various features of the railroad operations dur-
ing the past three years are presented in the following table:

1929 1930 1931

Average miles operated, Colon to Panama---.....------------ 47.61 47.61 47.61
Gross operating revenue--------------..--------------- $1.,832,260.67 $1, 766,478.92 $1,685.607.81
Operating expenses---------------.............----------------- $1.493.591.95 $1,464,123.19 $1,528,555.62
Net operating revenue ...------------------------------- $338,668.72 $302,355.73 $157,052.19
Per cent of expense to revenue..------------------------- 81.51 82.88 90.68
Gross revenue per mile of road ...------.... -----.... $38,484.79 537,103.11 $35,404.49
Operating expenses per mile of road ..-..-------------..----- $31,371.39 $30,752.43 $32,105.77
Net revenue per mile of road.---.......-- .....---------- $7,113.40 $6.350.68 $3,298.72
Number of passengers carried:
First class.. .-------------------------...............----.--.--------- 208,503 210.024 200,559
Second class.........-----------------...---------------------- 437,379 392.818 298,687
Total ..............---------------------------..............------.--------- 645,882 602,842 494,246
Revenue per passenger train-mile-------.----------------- $4.24 $4.89 54.77
Revenue per freight train-mile ----. ----------------. --- $11.47 $10.92 $11.18
Total revenue train mileage------------------..----------- 201.774 205,770 196,651
Railroad revenue per train-mile ---------.....--------------. $9.08 $8.58 $8.57
Railroad operating expenses per revenue train-mile --.-- $7.40 $7.12 $7.77
Net railroad revenue per revenue train-mile-...------------. $1.68 $1.47 $0.80
Freight, passenger, and switch locomotive mileage------ 332,419 338,401 323,501
Work-train mileage --..----..-------....----------------------- 1 12,343 5,990 110,394
Passenger-train mileage -----..----------...----------------- 112,488 114,668 111,718
Freight-train mileage.----------------------------------- 89,286 91,102 84,9033

I Overhaul of locks occurred in these years.


As an aid to the distribution of goods to areas served by steamship
lines using the Panama Canal or its terminal ports, there was estab-
lished, under a circular issued March 17, 1925, the arrangement known


as Canal Zone for orders. Under this system merchandise is shipped
to Canal Zone ports (Cristobal or Balboa) to be held there in ware-
houses of the Panama Railroad Co. for orders. Such cargo, or integral
parts of it may be withdrawn and delivered locally or forwarded as
the consignor or consignee may desire, 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 pre-
sentation of satisfactory evidence of the payment of the proper duty
to the Republic of Panama. Many different commodities were han-
dled in this way during the year, and the total of cargo received under
the arrangement was 24,200 tons. This was a decrease of about 37
per cent from the tonnage received during the preceding year. The
number of packages received decreased approximately 29 per cent,
but the total receipts issued for cargo increased about 22 per cent.
The total business for the past three years is summarized in the fol-
lowing table, with the 1931 activities also shown by each of the
terminal ports:

1929 1930
Cristobal Balboa Total

Number of receipts issued........................... -------------------------1,303 1,495 1,431 482 1,913
Number of withdrarals...------.--------.. ------------....... .... 8,359 10,053 8,571 2,889 11,460
Tons received....................................... ---------------------------------39, 533 38,136 19.502 4,698 24.200
Tons withdrawn ................................. 33,060 36,799 19,911 4.317 24,228
Packages received................................... --------------------------146.701 169,520 83,619 36,.636 120.255
Packages withdrawn.----------.. ----.. ----------......... 133,783 156,366 83,589 37,994 121.583


The gross operating revenue of the steamship line for the fiscal year
ended June 30, 1931, amounted to $1,518,483.49, and the gross
operating expenses amounted to $1,763,179.42, resulting in a net
deficit from operations of $244,695.93. The operating deficit com-
pared with the net loss for the fiscal year ended June 30, 1930, of
$152,967.82, shows a decrease in the net revenue of $91,728.11.
For the year ended June 30, 1931, the tonnage carried by the steam-
ship line amounted to 163,464 tons, as compared with 217,263 tons
for the previous year; a decrease of 53,799 tons.
The steamship line carried 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 $505,980.76. Had regular tariff rates been
received by the steamship line for such freight and passenger service
performed for the Panama Canal and other Government departments,
its operations for the year would have resulted in a profit of


The organization of the Panama Canal on the Isthmus embraces
five principal departments. namely, operation and maintenance,
supply, accounting, executive, and health.
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 activi-
ties, such as shops and dry docks, vessel inspection, electrical and
water supply, sewer systems, roads and streets, hydrographic obser-
vations, surveys and estimates, and miscellaneous construction, other
than the erection of buildings.
The supply department is charged with the accumulation, storage,
and distribution of materials and supplies for the canal and Panama
Railroad; the operation of commissaries, hotels, cattle pastures,
dairy and experiment gardens; the maintenance and construction of
buildings; the assignment of quarters and care of grounds; and the
sale of provisions and other supplies, except coal and water, to ships.
It also operates corrals and motor transportation, manufacturing
plants, bakeries, ice plants, abattoirs, printing plant, and other
related activities.
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 checking of timekeeping, the
preparation of estimates for appropriations and the allotment of
appropriations to the various departments and divisions, and the
examination of claims. The collector and paymaster are attached to
the accounting department.
The executive department embraces the general office business
of the governor, administrative activities invested by Executive 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, estates, schools,
general correspondence, and records for the organization 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 playgrounds.
The health department is charged with all sanitary matters 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.
The operations of the Panama Railroad Co. on the Isthmus are
generally related closely to the work of the canal, and the railroad
organization is in effect a part of the canal organization. The
governor is president of the Panama Railroad; the heads of depart-
ments in the canal organization and of the railroad report to him.
The general administration of the composite organization is centered
in the executive office, and the accounting work in the accounting
department; the Panama Railroad and other divisions of the general
organization are billed for their proper share of the general overhead
There were no changes in the organization during the fiscal year.
The few changes in supervisory personnel are covered in the following
Capt. C. H. Woodward, United States Navy, was relieved from duty
as marine superintendent on June 6, 1931, having finished his tour of
duty. His successor, Capt. William Ancrum, United States Navy,
had not reported for duty at the end of the year.
Commander Guy C. Barnes, United States Navy, was appointed
captain of the port, Balboa, July 4, 1930, vice Commander S. A.
Taffinder, United States Navy, relieved from duty with the Panama
Dr. Paul Preble, United States Public Health Service, health officer
of Panama City, died on July 13, 1930. Dr. J. L. Byrd was trans-
ferred to the position from his previous position of health officer of
Cristobal-Colon, and Dr. D. G. Sampson was transferred from his
previous position of district physician at Pedro Miguel to be health
officer of Cristobal-Colon, temporarily, effective November 1, 1930.
Mr. J. J. McGuigan was appointed district attorney, effective
October 23, 1930, vice Mr. C. J. Riley, who had resigned on April 15,
Mr. H. A. A. Smith was appointed assistant auditor in the Washing-
ton office, effective October 23, 1930, vice Mr. Noble Moore, who died
on October 7, 1930.



The supervisory, technical, higher clerical, and highly skilled me-
chanical employees, consisting primarily of American citizens but
including a few others, are employed on what is known as the gold
roll; the rest of the force, principally aliens but including a few Ameri-
can citizens on low-paid work, are designated silver employees.
These terms are a heritage from the tropical practice of paying Ameri-
cans and Europeans in gold because of its stability, while the native
or tropical labor was paid in the local currency, based on silver.
Based on the last force reports in June of each year, the gold force
decreased from 3,344 as of June, 1930, to 3,276 in June, 1931, a de-
crease of 6S, or 2.03 per cent. The silver force decreased from 11,780
to 10,624, a decrease of 1,156 or 9.81 per cent. The combined force
decreased from 15,124 to 13,900, a decrease of 1,224 or 8.09 per cent.
The force report shows all gold employees in service on the date of the
report, including those on leave, but not including the few who, newly
employed in the United States, are in transit to the Isthmus at the
time of the report. For silver employees, the force report shows only
those who worked on the day of the report.


The distribution of the gold personnel near the ends of the two fiscal
years is shown in the following tabulations:

Gold force
Department or division June 18, June 17, Decrease Increase Net do-
1930 1931
Operation and maintenance:
Office....---------- --..............------.......-------..-...-------------- 55 55 ----------.-------- .-------
Electrical division..............-- .----...............-- 158 170 .......... 12 ..........
Municipal engineering division.................. ------------------88 89 ......-.-- 1 --....-------
Lock operation.................................. '239 236 3 ---------- .....- ....-
Dredging division..............------------------..........--... ----------198 194 4 -.-...-- .......-
M adden Dam project ........................... 50 26 24 .......... ..........
Mechanical division....-----.-----------------------........ 504 475 29 ....--..- ..--.....-
M arine division ................................. 203 196 7 -.....- .. ..--.. ..-
Fortilicatinns.--..-----------.------........--------------- 24 18 6 .......... ..........
Total, operation and maintenance............. ------------- 1,519 1,459 73 13 60
Supply department:
Quartermaster............................... .. 225 203 22 --------- -- ------
Com missary division............................ 228 249 .......... 21 ..........
Cattle industry. --..............---.- ...- ..--..... 2 2 .......... .......... ..........
H otel Tivoli..................................... 8 ......... ...--------- ----------..... ----------
Hotel Washington--.....------...----- ----------- 9 9 .......---------. ......--- -----------
T ransportation.................................. 74 72 2 .......... ..........
Total, Supply department-------------------....................-- 546 543 24 21 3
Accounting department-..................-.......... 204 206 .......... 2 ......---
Health department.................................. ----------------------------293 290 3 ....................
Executive department...-------...-..------...-....-.------------ 537 A53 .......... 16 .......---
Total, three departments...................... ---------------------1.034 1,049 3 18 15
Panama Railroad:
Superintendent.-...------...----..------.--------------- 50 44 6 ----- --.......... ..........--
Transportation..----------.--------------.-------- 64 61 3 .......... ........
Receiving and forwarding agency. --..-------------- 88 78 10 .......... ..........
Coaling stations-..-------.....---.--------------------- 43 42 1 .......... ..........
Total, Panama Railroad.....-----------------------............. 245 226 20 .......... 20
Grand total..------........---..----.------------------ 3,344 3,276 120 52 68
I Increase.



The decreases in force were due essentially to completion of parts
of the work or to lessened activities in other branches. The increases,
occurring in 5 of the 22 units of the organization, were due to the
following causes: Electrical Division increase was caused by the
unusual amount of work performed on United States Navy sub-
marines, consisting of the installation of electrical safety devices,
which necessitated the employment of two shifts on this work through-
out the year; and to moving the Summit substation and beginning the
transmission line work incidental to the Madden Dam project. The
municipal division increase of one man is attributed to the construc-
tion of the Thatcher Highway; near the middle of the fiscal year the
division's force was greater than at either the beginning or the
ending. The increase of 21 in the gold force of the commissary division
was due to the employment of a commissary manager at the new
Silver City commissary, additional employment of two apprentice
meat cutters, one checker, one clerk and one sales clerk, and the
filling of vacant positions, principally of six foremen and eight sales
clerks to speed up the service, and that of buyer for the wholesale
dry-goods section. The accounting department added a new posi-
tion of accountant and three positions of operatives, but these in-
creases were offset by reducing elsewhere, making the net increase
of gold force two. The increase in the executive department was due
to seven new positions in the schools, two new positions of clerk, one new
position of aeronautical inspector and one of customs guard, and the
filling of several vacancies, including the position of district attorney.
The following table shows additions to the gold force and separa-
tions from it in the fiscal year from July 1, 1930, to June 30, 1931,
inclusive. Employments are classified as made in the United States
or on the Isthmus and separations are classified by cause. This table
covers a slightly different period from that between the force reports
of June 18, 1930, and June 17, 1931:

and main Ei"e Supply Health Acaunt- Totala
tenanre ing Railroad
Employed or reemployed in United
States............................... 65 32 2 29 1 1 130
Employed orreemployedon Isthmus.. 103 33 20 26 11 41 237
Total additions.................. I--1 65 22 55 12 45 367
Resihned.............................. .3 23 12 b1 4 21 164
Retired...... ........... .............. If 3 3 1 2 5 30
D ied......... ........................ 9 3 1 2 .......... 4 19
Reduction of force.... ................. 37 ........ 7 2 ......... 2 4
Expiration of temporary employment.- 102 6 15 i 2 13 144
Discharged for cause--......-----...------. ----. 10 3 ..--.... 2 2 1 18
Insane ................................. I ......--------. ....--------. ...--------..... ..... -------------------- 1
D isability................... ......... 7 ........ ........ 1 1 4 13
Failure to report hack from leave------ ........... ........ ........ 1 .......... .......... I
Transferred to silver roll.--------.. ----. --- --------..... 3 ........ .......... .......... 3
Total separations.----..------------ 235 38 41 66 11 50 441
Separations, Panama Canal.....---------------- 391 Separations, Panama Railroad.--------------............. 60
Additions, Panarra Canal.................... -----------------322 Additions, Panama Railroad.---------------.......-. 45
Net separations---------------------.................... 69 Net separations-..-...-------..-----..-------- 5


The number of persons tendered employment through the Wash-
ington office of the Panama Canal, all above the grade of laborer,
during the fiscal year was 255, of whom 145 accepted and were ap-
pointed, covering 30 different kinds of positions. Acceptances and
appointments were 64.4 per cent of the tenders. In the preceding
year the tenders numbered 455, acceptance and appointments 217,
and the latter were 47.7 per cent of the tenders.
The number of persons added to the rolls on the Isthmus during
the fiscal year by employment or reemployment in the United States
on requisitions is reported by the personnel bureau as 130. The
variation from the figures reported by the Washington office is
attributed to some appointments made without requisitions and to
difference in time between acceptance and actual entry on the rolls.
Counting 130 as the employment or reemployments actually entered
on the rolls and 237 as those employed or reemployed on the Isthmus,
the total additions were 367. The separations from the gold roll
during the year totaled 441, making a net decrease of 74.
Based on a gold force of 3,331 at the beginning of the fiscal year,
as shown on the force report for July 2, 1930, the 441 separations
make a turnover rate of 13.2 per cent for the year, from all causes.
For the fiscal year 1930 the rate was 15.4 per cent.
When an additional employee is needed efforts are made to fill the
position by promotion from the force already employed or by transfer
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
continued employment as long as their services are satisfactory,
which builds up loyalty to the Canal. Of the 367 gold-roll employ-
ments during the past year, approximately 42 per cent were reem-
ployments; 109 were reemployed on the Isthmus and 45 in the United
At the end of the year the applications on file from residents of
the Isthmus for employment on the gold roll numbered approximately
Three thousand and twenty-eight persons (2,794 from New York,
121 from New Orleans and 113 from Pacific coast ports), including
new appointees, employees returning from leaves of absence, and mem-
bers of their families, were provided transportation from the United
States to the Isthmus. The total was an increase of 248 over the
previous year's total.



The distribution of the silver personnel near the ends of the two
fiscal years is shown in the following tabulation:

Department or division June 18, June 17, Decrease Increase Net de-
1930 1931 crease

Operation and maintenance:
Office...... .-...--------.....------------- ... 85 49 36 ...-..............-- ------
Electrical division.-------. --..-----------...------- 177 205 .......... 28 --........----.
Municipal engineering division ---....--.------------- 674 771 ...-----. 97 -...-------
Lock operation--------....----------... ..... 702 682 20 ..-------.---------
Dredging division -----------------------------. 981 931 50 .................----
Madden Darn project-------...-----------------....... 619 237 382 -...---------... ..-------
Mechanical division------- ----------------- 84 90 .----------........ 24 -........--
Marine division ---....---------------------------...... 9 564 32 .----------.. ------
Fortifications...---------------------------------...................... 141 56 85 -------. ---------
Total, operation and maintenance----.-------. 4,859 4,403 605 149 4511
Bupply department:
Quarter master....-------------- ..---------------- 1,979 1, 650 328 .--...--------.------
Commissary division -----.---------...----------1,324 1,305 19 --------.---
Cattle industry------ --------------------------9. 89 9 .-..-..........-------....
Hotel Tioli....... ..... ....................... ----------------------------108 103 5 .-------...-------- -
HoLel Washinaton.----. -----.. ...---.----------. 95 92 3 ------- -..-------
Transportation--.-------..-----.----------------- 251 228 23 .......--- -..--..--......
Total, supply department-----...-------------- 3,854 3,467 387 .-..-.... 387
Acounting department--------.....------------------.. 6 6 .----...--..- --..--.------------
Health department. ---------------- ---------------. 862 822 40 -......----.. -.--.....
Executive cepartment.-.----.------.-------------.-- 328 333 .....-. 5 ..--------
Total three departments -...------------------- 1,196 1, 161 40 5 35
Pananniq hailrnad:
Superintenent..------------ -------..------------. 252 235 17 ---.-..... .-..--....
Transportation.......... ----------------------------. 121 116 8 ...------.. ------ ---
Reeiving and torwaruing agency.--..-.- --.-.. 1,289 1,074 215 --------- ...---..-----
Coaling stations---...-..------------....--------------- 206 1'i8 38 -.--------. ----.....--.-
Total, Panama Railroad----......---....------------- 1,871 1,593 2-8 ....... 278
Grand totl..------------- --------------... 11,70 10,6f24 1,310 154 1,156

The silver force, performing lower-paid work, is more variable than
the gold force of supervisory and other more highly paid employment,
and detailed figures as to employment and separations on the silver
roll are not available. In general, decreases were due to curtailment
of work, apd the increases to more or less temporary fluctuations.
No serious difficulty was experienced in maintaining an adequate
force, and the percentage of turnover was low for this class of labor.
At the end of the year there was a surplus of labor available for prac-
tically all kinds of work performed by silver employees, and extensive


The Panama Canal act provides that salaries or compensation fixed
thereunder by the President, or by his authority, "shall in no instance
exceed by more than 25 per cent the salary or compensation paid for
the same or similar services to persons employed by the Government


in continental United States." Concurrently 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 limitations of appropriations and subject to
the preservation of coordination within the organization.
The work of bringing the grades of employees coming under the
classification act of 1923, as amended by the Welch Act of 1928 and
the Brookhart Act of 1930, into conformity with the class specifica-
tions issued by the Personnel Classification Board in Washington, was
practically completed. Revised lists of positions with their alloca-
tions were issued as of December 1, 1930, and allocations so designated
have remained in effect. The automatic increases under the Brook-
hart Act were made effective July 3, 1930. An adjustment of rates
for employees carried in positions designated as subclerical and not
coming within the classification schedules was made effective October
An adjustment of rates of pay of employees on floating equipment,
including pipe-line and dipper dredges, towboats, floating cranes and
craneboat, hydraulic grader, drill boats, supply boats, and certain
types of motor boats, which had been under discussion from the pre-
ceding fiscal year, was terminated by a decision of the governor on
October 29, 1930. This established the rate of pay for master of 20-
inch pipe line suction dredge directly on the basis of the pay for such
service under the Corps of Engineers of the Army in the United States,
and fixed for other positions in the canal service on the designated
vessels a schedule of rates in coordination with the rate for master of
20-inch suction dredge. The basic reason for doing this is the diffi-
culty in determining equitable rates for equipment for which there is
no prototype in Government service in the United States, and in pre-
serving coordinate pay among related positions by any other means
than an adjudication of their relative requirements, responsibility, etc.,
under the conditions on the Isthmus.
The wage board, consisting of the assistant engineer of maintenance
and a representative selected by the organizations of employees and
approved by the governor, held 10 meetings during the year.
The salary board, composed of the heads of the nine major depart-
ments and divisions of the Panama Canal and Panama Railroad, held
three meetings during the year in connection with the adjustment of
rates for classified positions referred to above and various matters of
rates and working conditions. Both the wage and salary boards are
merely advisory to the governor, who is charged with the fixing of all
rates of pay.



The silver wage board, consisting of the heads of 13 departments
and divisions of the Panama Canal and Panama Railroad, held meet-
ings in November and May. As with the boards on gold rates of pay,
this board acts in an advisory capacity to the governor.
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, remained
in effect during the year. There was no considerable change 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, 1930,
when the annual general survey was made, as compared with preceding
years, were as follows:

Average rat es Average rates

Monthly Hourly Monthly Hourly
employees employees employees employees
(per (per (per (per
month) hour) month) hour)

Nov. 1, 1923.----..-- ...--------- $55.27 $0.2312 Oct. 1, 1927..--...---.---------- $54.88 $0.2411
Nov. 1, 1924--......-------.....-- 54.74 .2323 Oct. 1, 1928......---------------- 56.44 .2496
Nov 1, 1925.----....--...--------- 55.28 .2385 Oct. J, 1929................ ----------------55.37 .2450
Nov. 1, 1926--------------- 55.40 .2395 Oct. 1, 1930--....-------------- 57.09 .2500

The average rate per month, combining the monthly rates with the
hourly rates on the basis of 208 hours of working time per month, was
$55.13 for a total of 11,472 positions. At the time of the preceding
annual survey this average was $52.83 for 12,976 positions, and for
the survey of October, 1928, it was $54.18 for 11,210 positions.
The average pay of the silver employee tends to fall with increases
of force. Individuals of long employment and satisfactory service
advance to the top of the pay schedule of the craft, and are more
likely to be retained when reductions of force occur. New employees
enter service at the lower rates. However, the variations in averages
are not wide. The difference between maximum and minimum aver-
ages for monthly employees as tabulated above for 8 annual surveys
is $2.35, or 4.29 per cent of the minimum. For the hourly rates, the
difference is 2.48 cents, or 10.73 per cent.
Following the rise in the cost of living after the outbreak of the
World War in 1914, the schedule of silver rates of pay was adjusted
from time to time with reference to the rise, and subsequent fall, of
an index based principally on weighted prices in the commissary
stores, with those in July, 1914, as 100. The last decrease in the
schedule of rates of pay was made on July 1, 1922, following the drop
of the index from 155.46 as of April 1, 1922, to 150.04 for July.
Computation of the index has, however, been continued for each


regular semiannual meeting of the silver wage board as a matter of
information. With reference to the foregoing tabulation, showing
average rates from November 1, 1923, to October 1, 1930, it is noted
that the index has lowered from 148.69 as of October 1, 1923, to
137.90 as of June 1, 1930, and 125.69 as of June 1, 1931. This index
lowered 12.21 points during the past fiscal year.
On recommendation of the silver wage board at its meeting in
November, 1930, the "average rule" affecting promotions was abol-
ished. This rule had been that if the range of pay between minimum
and maximum in the schedule for the craft was $15 or more, the
average paid by the department or division should not be higher than
the figure determined by subtracting $7.50 from the maximum rate
in the schedule for the craft, but where the range was less than $15
no such restriction would be imposed. Corresponding provisions
were made for the hourly roll and promotions were allowed in excep-
tional cases. The purpose of the rule was to provide approximately
equal pay throughout the organization for similar services. The
majority of heads of departments, however, regarded it as interfering
with the best administration and the rule was dropped.
The board discussed at both semiannual meetings the matter of
rest or vacation leave for silver employees, and considered data
relative to the subject collected from American consuls and various
employers in the Caribbean area. The recommendation of the
board was that no rest leave be granted for silver employees under
present conditions. Sick leave was already in effect.
The committee on superannuated alien employees, appointed on Jan-
uary 8, 1929, continued to function throughout the year. During the
year this committee held seven meetings, two of which were for con-
sideration of plans to obtain extension to Panama Canal employees
of the plan of pensioning followed for the Panama Railroad alien
employees. During the year there were 15 additions to the Panama
Railroad pension roll and 18 separations, leaving 31 pensioners on the
roll at the end of the year; 2 others were given lumps sums and re-
patriated during the early part of the year. Twelve Panama Canal
alien employees were placed on reduced rates, established in the fiscal
year 1930 by supplement No. 4 to the schedule of silver rates of pay
for superannuated aliens unable to perform in a reasonably satisfac-
tory manner the usual service expected of an able-bodied employee.
Others were given or offered domiciliary care at Corozal Hospital.
The complaints board is for the purpose of investigating and
reporting on complaints of employees about working conditions and
administrative actions, etc., referred to it by the governor. It is
composed of the assistant engineer of maintenance, the head of the


department or division in which the specific complaint originates, and
two representatives of the employees who are nominated by the central
body of the employees' associations and approved by the governor.
One case was handled by this board, as compared with two in the
fiscal year 1930, and three in 1929.
Activities of the bureau of clubs and playgrounds are supported in
part by appropriations as an aid to canal administration because of
the service of such activities in promoting health and recreation and
maintaining morale among the employees and their families. Oppor-
tunity for diversion in the Canal Zone is limited. The community
is not self-governing and lacks political interests. There is no indus-
trial activity outside of the canal work, and initiative and ambition
find little outlet but in the day's work. The employees live in houses
owned and controlled by the Government and can not develop per-
manent and personally owned homes in the Canal Zone. The even-
ing amusements in territory adjacent to the Canal Zone are prin-
cipally automobile drives, moving pictures, boxing, clubs, and saloons.
Such environment, within and without the Canal Zone, is not con-
structive and the activities of the bureau of clubs and playgrounds
aim at furnishing wholesome community interest. The annual
appropriation, $120,000, averaging approximately $10,000 for each
of the 6 gold and 5 silver clubhouses and 1 silver clubroom, is about
one-fifth of the total cost of their operation; the other four-fifths are
collected from patrons in the form of charges for services rendered.
Clubhouses for gold employees are operated at Ancon, Balboa, Cris-
tobal, and Gatun, with an annex in New Cristobal; for silver employ-
ees at Cristobal, Gatun, La Boca, Paraiso, and Red Tank, with a club-
room at Gamboa.
The work was continued essentially as in previous years. The
most important development in the year was the installation of
sound-picture apparatus in the gold clubhouses at Ancon, Balboa,
Cristobal, and Gatun and the silver clubhouses at Cristobal and La
Boca. These installations increased attendance at the moving pic-
tures beyond expectations, with the effect of stimulating other club-
house business. Receipts from all sources at those clubhouses show-
ing sound pictures aggregated about 30 per cent more than in the
preceding fiscal year. Silent pictures continued to be shown at the
gold clubhouse at Pedro Mliguel and the silver clubhouses at Gatun,
Paraiso, and Red Tank, but with the decrease in available silent films
it will be necessary eventually to discontinue shows at these club-
houses or install equipment for sound projection. As in previous
years, films were furnished free of charge for picture shows at Palo
Seco leper colony, Corozal Hospital for the Insane, and the Canal
Zone penitentiary at Gamboa.


In addition to the moving pictures, the clubhouses provide bowl-
ing, pool, reading rooms, and branch libraries, and limited refresh-
ment and restaurant service and are centers for community enter-
tainments and athletic enterprises. They are open daily from 7 a. m.
to 11 p. m. As related activities, 16 concrete and 5 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.
The average attendance at kindergarten was about 250 per day.
Two swimming pools are maintained and a boathouse is also kept
open near Fort Amador, where transportation is available to visit
Farfan Beach on the opposite side of the canal.
Plans for the development of Farfan Beach are under way. Be-
cause of the relative difficulty of access by boat, a macadam road
to connect the beach with the new Thatcher Highway is under
construction. The channel of the Farfan River is being diverted
so as to improve the beach. An area including the water front from
the Palo Seco Reservation to the Thatcher Highway, opposite Balboa,
and extending inland approximately a mile, was set aside during the
year as a recreational area. A part of it is to be used as a target
range by the Canal Zone police and the Balboa Gun Club.
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
continued to be popular at most of the clubhouses. Military bands
from various garrison posts gave concerts regularly at clubhouses of
the larger towns; and the boys' bands of Balboa, Cristobal and Gatun
were active in furnishing concerts.
Child Health Day was observed on May 1, 1931, for the first time
in the Canal Zone, with programs of exercises, discussions, etc., con-
ducted under the joint supervision of the health department, the
division of schools, and the bureau of clubs and playgrounds.
The personnel of the Army and Navy stationed on the Isthmus
have the privileges of the clubhouses, in addition to the entertainment
provided for them by the two services and by the Army and Navy
Y. M. C. A.'s. The clubs and playgrounds at the terminal towns
are used extensively by Navy personnel during the visits of vessels,
and this is especially the case at times of fleet concentrations at the
canal. Transient visitors to the Canal Zone, who are not Government
employees, have the privileges of the clubhouses except for the pur-
chase of dutiable merchandise.
In the silver clubhouses for colored employees motion pictures are
the principal entertainment and other features are literary clubs,
local entertainments, community nights: consisting of educational or


ordinary motion pictures shown without charge, talks on education,
child-welfare work, dances, etc. Graduation exercises for the eighth
grade of the colored schools were held at all the silver clubhouses on
June 26. Various forms of athletics, indoor and outdoor, enlist.
extensive participation, and some of the clubhouses are used by teach-
ers of shorthand, typewriting, and other subjects.
A new grandstand was built at Pedro Miguel during the year, at a.
cost of approximately $1,250. Including this, approximately $35,000
was spent on repairs of the buildings, which are in general in poor
physical condition. Only such repairs are made as are necessary, in
view of the expectation that the houses will be replaced by new
structures as soon as funds can be procured. New clubhouses are
needed at Ancon, Balboa, New Cristobal, and La Boca. A swimming
pool at Gatun for white employees and swimming facilities at all
colored communities are urgently needed, as well as playsheds for the
small children. Small playgrounds equipped with some apparatus,
such as swings, baseball back stops, volley-ball courts, but without.
immediate supervision, are needed at various points in Ancon and
Balboa where children can play when it is not convenient to go to the
larger playgrounds. New playground equipment is needed at all
playgrounds. Band stands are needed at Ancon, Balboa, Pedro
Miguel, and New Cristobal.
The astronomical obsdrvatory established last year near the Mira-
flores filtration plant through the initiative of the Canal Zone Astron-
nomical Society and the use of $1,750 from clubhouse funds for the
erection of the observatory, was opened to the public on July 21,
1930, and continued in use throughout the year. The bureau of
clubs and playgrounds expended small sums for maintenance of the
plant. Monday evenings were set aside for parties of enlisted men of
the Army, and beginning on January 13, 1931, Tuesday evenings were
devoted to a series of lectures, at first on astronomy and later on other
subjects of general interest, in so far as authorities could be secured
to deliver them. These lectures were given through several months
and were abandoned with the approach of the rainy season. The
prevalence of clouds during the rainy season, embracing two-thirds
to three-fourths of the year, interferes considerably with the use of the
telescope but on clear evenings the observatory is visited by numbers
of interested persons, including a gratifying proportion of school
One of the major duties of the governor and hiis assistants is planning
improvements, both in present administration and facilities and in
provision for future needs. Brief discussions of some of the more
important matters affecting operations are presented herewith.


In anticipation of future needs the canal administration has pre-
pared a program of work to be carried on during the next 10 to 15
years, perhaps later. For the more immediate needs it has developed
a 5-year program, for which a total of about $15,000,000 is required,
at the rate of $3,000,000 per year. This is exclusive of the Madden
Dam construction. The decrease in national revenues resulting from
the current depression has led to some deviation from this plan for
the purpose of diminishing appropriations; the tentative estimates
submitted for the fiscal year 1933 for such betterments under the
5-year program call for the appropriation of approximately $2,346,000.
In addition to projects to be paid for by special appropriations certain
of the supply department and Panama Railroad activities will be paid
for by the Panama Railroad Co., replacements and developments in
various divisions will be charged to accumulated reserves, and minor
items will be included in the regular appropriations.

In line with the program of replacements and betterments the
:appropriations for the fiscal year 1931 included $200,000 for a
new ward for male patients at Corozal Hospital for the insane and
*cripples; $132,000 for towing locomotives at the locks; $32,000 for
.crib fenders at the Pacific locks; and several minor items, which, with
the foregoing, brought the total to $406,400. In addition there
were the appropriations of $2,000,000 for the Madden Dam and
$500,000 as the first half for the Thatcher Highway from the west
bank of the canal at Balboa to the boundary near Arraijan, and the
two ferryboats for crossing the canal. These brought the total of
special appropriations to $2,906,400. The work for which these
appropriations were made has largely been accomplished, but some
portion of this construction was carried over into the ensuing fiscal
Appropriations made for the fiscal year from July 1, 1931, to June
.30, 1932, include continuation of Madden Dam, $1,000,000, with
authority to enter into contracts for work involving expenditure of
$11,250,000 more; completion of the Thatcher Highway and ferry,
$500,000; high school at Cristobal, $825,000; colored elementary
school at La Boca, $125,000; nurses' quarters and alterations, Colon
Hospital, $100,000; fire stations, Pedro Miguel and Gatun, aggre-
gating $35,000; and buildings and improvements at the locks aggre-
gating $83,350; the total for all being $2,668,350 without inclusion
of the amount which may be obligated by contracts for the Madden
Dam work.


The tentative estimates for the fiscal year 1933, subject to change,
are to include $4,500,000 for continuation of the Madden Dam
project and $2,346,000 for various betterments. The latter include
$625,000 for the Balboa high school and junior college, which is
one-half of the total estimate; $500,000 for permanent quarters for
American employees; $400,000 for the enlargement of the dry dock
at Cristobal; $190,000 for police station and magistrate court at
Balboa; $180,000 for library building at Balboa Heights; $120,000
for quarters for alien employees; $80,000 for widening La Boca Road;
$66,000 for filling ground to be occupied by supply department and
municipal division activities; $50,000 for a private ward for white
patients at Corozal Hospital; $50,000 for home at Corozal Hospital
for superannuated alien employees; $50,000 for widening streets in
the southern district, etc.; $25,000 for new roads in Corozal Cemetery;
and $10,000 for additional roads around existing buildings at Silver
The 5-year and 15-year programs have been explained in some
detail in special reports to the Secretary of War, the Director of the
Bureau of the Budget, and members of the appropriations committees
of Congress. It is not practicable to repeat these details within the
limits of the annual report, but the following facts with regard to
major projects, for which appropriations are requested for the fiscal
year 1933, are believed to be of general interest:
Balboa high school and junior college.-The present Balboa school
main building (for white children) was constructed in 1917, when the
enrollment was 528. No permanent additions have been built
since that time, although the enrollment has increased to 1,338 in
1931, and the normal growth will be increased by several hundred
pupils upon the completion of the Albrook Field project. At present
only 25 of the 43 teachers at Balboa are housed in the main building;
the 18 others are in 5 separate wooden buildings converted for school
use. All of the more than 700 high-school pupils are crowded into
the main building, and no satisfactory accommodations are available
for science laboratories, library, manual training shops, and house-
hold arts rooms. The situation is one of crowding and of inadequate
equipment. As a remedy it is proposed to construct a new building
at a cost of approximately $1,250,000 to house the high school and,
with some expansion, to serve also as a junior college. Moving the
high school from its present building will release the latter for use of
the elementary schools following alterations estimated to cost
$70,000. This will make it practicable to assemble there the classes ,
now scattered in temporary wooden buildings and will make for


Much more effective school work in addition to releasing those
Temporary wooden buildings for other uses.
Quarters for employees.-Provision of quarters on the Canal Zone
has always been inadequate. The situation calls for relief. At the
time of completion of canal construction and the gradual change from
construction conditions to those of permanent operation and mainte-
nance, the United States was concerned primarily with the World
War, and canal appropriations were held down so strictly that no
allowance was made for building quarters. This situation continued
after the war and it was not until the fiscal year 1927 that appropria-
tions were made for more quarters. In the meantime the deteriora-
tion of old buildings, some of which have been in service from the
days of the French canal companies, has been such that many had to
be abandoned. The matter of quarters is extremely important in the
operation of the canal. With insufficient quarters a considerable
portion of the force has to seek housing in the cities of Panama and
Colon, where rents are high, accommodations generally inadequate,
and conditions of environment less satisfactory than in the Canal
Zone. For the satisfactory operation of the canal and the better
maintenance of discipline and morale it is desirable for the employees
to be housed fairly close to their places of work and under American
Quarters for American employees.-Following the close of the con-
struction period, no appropriations were secured until the fiscal year
1927 when $384,278 was allotted; in 1928 the appropriation was
$499,943; in 1929 and 1930 it was $400,000 each year. For 1931 and
1932 no appropriation was made and the governor was directed to
use $400,000 of Panama Railroad funds for quarters. The long period
without any new building has made it necessary to do extensive
building now as a matter of replacement. The program adopted calls
for $500,000 for gold quarters each year and $600,000 or $700,000
would be better. At $500,000 per year it will take about 24 years
to replace the present old quarters. Due to the severe conditions of
the Tropics the canal will have practically a continuous program of
replacement of wooden buildings. A type of building using concrete
for a basement and supporting pillars and lumber for the superstruc-
ture has been found to be the best adjustment between initial cost and
Quarters for alien employees.-The combined force of alien employees
of both the canal and Panama Railroad is now approximately 12,000,
of whom about 4,000 are quartered in the Canal Zone, the balance
residing in Panama and Colon, where they are subjected to relatively
higher rentals and extraneous influences that make for instability
of force. It has been the aim of the canal administration ultimately
to provide quarters in the Canal Zone for about 50 per cent of all


alien employees. The superior housing facilities and surroundings
promote a more effective force, under better control, and have valu-
able effect on morale. Privileges of quarters are highly prized, and are
forfeited with great reluctance. The expense of expansion of alien
quarters for the past several years has been borne by the Panama
Railroad Co. and with the completion of authorized expenditures its
investment will amount to over $750,000, or somewhat more than
half the value of all alien quarters, whereas the railroad's portion of
the combined alien force is only about 25 per cent. It is proposed to
expend $120,000 annually to provide quarters in the Canal Zone for
silver employees, the greater part of whom are now living in Panama
and Colon.
Enlargement of dry dock at Cristobal.-The present dry dock was
acquired by purchase from the second French canal company and is
about 40 years old. It is nearly obsolete and is too small to take the
larger dredges belonging to the canal, as well as some of the sub-
marines and other small craft that are dry-docked and overhauled by
the mechanical division. Its enlargement will enable a more efficient
balancing of work between the Cristobal and the Balboa shops,
provide additional emergency facilities and obviate the necessity
of using the large Balboa dry dock for small craft that could be
dry-docked advantageously on the Atlantic side. The present dry
dock measures 316 feet in length, 50 feet in width, and 13% feet in
depth over the sill. It is proposed to increase the size to 390 feet in
length, 58 feet in width, and 22 feet in depth. The estimate of $400,000
covers the cost of enlarging the dry dock, providing a floating caisson
gate, construction of a pump house, purchase and installation of
pumping machinery, and provision of the customary dry-dock
equipment. The present wooden miter gates have deteriorated to
such an extent that they must be replaced in the near future; the
expense of this work would be considerable and would be entirely
lost if done before the enlargement of the dry dock.
Police station and magistrate court at Balboa.-The building now
occupied was originally erected at Empire in 1907 and was transferred
to Balboa in 1915. It is insufficient in size and the building has de-
teriorated with age and the ravages of termites. It is proposed to
erect a modern concrete building suitable in dignity and service.
Library building at Balboa Hleights.-The Panama Canal library now
occupies the ground floor of the right, wing of the administration build-
ing, exclusive of the L. This space is needed for canal offices, and is
also inadequate for the library, which is much crowded and is without
storage room for books or documents used infrequently. It is pro-
posed to erect a separate library building on the slope opposite the
south wing of the administration building to be convenient for the,


community and readily available for reference in official work. The
cost of the building is estimated at $180,000.
Other improvements.-The necessity for widening the La Boca Road
arises from the fact that it is one of the principal thoroughfares for
traffic between Balboa, including the docks, and Panama City and
traffic will be increased greatly with the opening of the Thatcher
Highway presumably in April, 1932; the road will then carry the
greater part of the load between the interior of Panama and the Canal
Zone-Panama City area.
The filling of ground to be occupied by supply department and
municipal division activities is a first step in the development of what
is known as the Corundu project which is to involve a total of $1,067,-
500 expended over five years. With the building of Albrook Field
the Gaillard Highway will be relocated between the Tivoli crossing
and Diablo, to the south and west of Albrook Field and to the north
and east of the Panama Railroad. It is proposed to develop the
area between Albrook Field and the Panama Railroad along this road
for use in its eastern part as an industrial area, where will be the
motor car repair shops and garage, the district quartermaster's shops,
the constructing quartermaster shops, and the municipal division
shops and storage; and in the western part as a recreational area, to
be occupied by a stadium, ball grounds, etc. This composite reclama-
tion is known as the Corundu project. The removal of shops to the
industrial area will give them better facilities, will center related
work, and will allow clearing away obsolete and uneconomical build-
ings. The space thus freed can be used for quarters or other purposes.
Establishment of the recreational grounds in the western or Balboa
part will liberate space needed for the schools.
At Corozal Hospital, which is for the insane, cripples, and super-
annuated alien employees, there is an urgent need for a small ward
for white patients to house some 20 male and 10 female patients. At
present patients of all classes, colored, foreign, enlisted personnel of
the Army and Navy, and Panama Canal employees and members of
their families, must be cared for without adequate separation. Another
special building is required as a home for superannuated alien em-
ployees. The number of alien employees unfit for further service is
increasing with the passage of the years. While it is possible to care
for some of them with the present equipment at Corozal Hospital,
the facilities are inadequate to meet the need and the erection of a
special building is considered the best answer to the problem.
Appropriations for widening of streets are required principally
because the streets in question were laid out on a money-saving basis
prior to the development of automobile traffic. The streets are in-
adequate to handle the traffic in their present condition and widening
is sought as a means of relieving congestion and reducing traffic



The passage of the Denison Retirement Act, approved March 2,
1931, to be effective July 1, 1931, established improved provisions for
the retirement of Panama Canal and Panama Railroad employees on
the Isthmus who were citizens of the United States, superseding the
provisions of the national law of May 22, 1920, as amended, and of
the pension plan of the Panama Railroad Co. The law of March 2,
1931, increases the pay-roll deduction for retirement purposes from
312 to 5 per cent; provides automatic retirement at age 62 after at
least 15 years of service on the Isthmus; optional retirement at 60
years after at least 30 years of service; and voluntary retirement on
a reduced annuity at age 55, after at least 25 years of service, with a
provision for voluntary retirement at age 55 without reduction of
annuity for those employees who have rendered at least 30 years of
service of which not less than 3 years were between May 4,1904, and
April 1, 1914. The law includes also provisions for disability and
involuntary separation from the service after certain ages. The
annuities payable are based upon length of service, the annuity pur-
chasable by the sum of the employee's payments into the retirement
fund, and the amount of service rendered during the construction
period, between May 4, 1904, and April 1,1914; in general, other than
for the employees with construction service they may be said to be
about 25 to 30 per cent higher than the annuities under the national
law of May 22, 1920, as amended. Salary deductions under the canal
retirement law are approximately 43 per cent higher than under the
general law.
Experience will possibly show the need of changes in the law of
March 2, 1931. It is, however, considered a distinct improvement on
the prior law and a means of contributing both to the proper care of
employees after years of service in the tropics and to the maintenance
of an effective force for the operation of the canal and its adjuncts.
With respect to the alien employees, the situation is less satis-
factory. There is no legislative provision for taking care of those
who through superannuation or other physical inability are unable
longer to perform full duty and should be removed from the working
force. Such employees of the Panama Railroad Co. are given pen-
sions ranging from $7 to $30 per month, but there is no authority to
do this with employees of the Panama Canal. All that can be done
for them now is to offer them care at Corozal Hospital, where there
are no accommodations for their families, or to carry them on the
rolls at reduced pay, at rates from $15 to $35 per month, to perform
such work as they can. It would be much better to pension them
outright and let them remove from the sphere of canal work.
To secure some degree of relief there has been included in the esti-
mates for 1933 the sum of $10,000 for payment of cash relief to dis-


abled alien employees, of not exceeding $30 per month, under such
regulations as may be prescribed by the President.
With the cooperation of the Bureau of Efficiency data are being
compiled for the purpose of determining as nearly as possible the
extent and cost of pensioning alien employees under a retirement
law, yet to be prescribed, with definite provisions as to age, length
of service, maximum and minimum annuities, etc. For the present,
however, only the simpler provisions are desired, as set forth in the
preceding paragraph.
A study of the capacity of the Panama Canal for transiting ships,
both with the present twin flights of locks and with the proposed
third flight, was presented in the annual report of the governor for
the fiscal year 1929, pages 70 to 74. The decrease of traffic ensuing
from the present business depression has pushed further into the
future the need of greater capacity, but it is to be expected that there
will be a renaissance of activity. It is desirable to have available
all possible information for the guidance of the President and Con-
gress in considering and ultimately deciding the matter of the con-
struction of a third set of locks. Studies made during the past fiscal
year have led to some revision of estimates, and revised data are set
forth as follows:
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 maintain a working depth of water in the lock and
lake sections.
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 reduced to 27 lockages a day; the Pacific Locks under overhaul
can also accomplish 27iockages a day.
There are variations in the numbers of ships arriving for
transit. Peak 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 capacity of the present twin-lock canal. When
an average of 27 lockages is reached peak loads will exceed the
capacity of the locks during overhaul. 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 26 commercial lockages represents capacity
during locks overhaul. When this average is reached the third
flight of locks should be available for use.


It is planned to build the third flight of locks directly along-
side the existing locks. It is estimated that the cost will be ap-
proximately $140,000,000 and that in the interest of economy it.
would be advisable to extend the construction period over 10
years. That is, work should be begun when the growth of traffic
shall indicate that an average of 26 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 every two years during the period of overhaul
of 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.
Water supply.-The critical periods for water for lockages are
toward the end of dry seasons of exceptional length and dryness.
The dry 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 considering
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 a pair
of ships locked tandem involves the use of approximately 6,500,000
cubic feet. Based on this requirement, the water supply for the dry
season of 1920 would have been sufficient for 29 lockages per day
during the 158 days in which stored water would have been needed.
Since the third flight of locks should be built by the time commercial
traffic requires an average of 26 lockages per day it is seen that the
present water supply is sufficient for the operation of the existing
locks, provided the electric load is shifted from the hydroelectric
station to the Diesel plant.
MAladden Reservoir. -While the additional water supply to be
provided 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 water in 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 two of these reasons are very important.
It is in connection with the third set of locks that the Madden Dam

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