ANNUAL REPORT OF THE

GOVERNOR 6F THE

PANAMA CANAL. 1 944

386

P/87
-^- ^M

UNIVERSITY

OF FLORIDA

LIBRARY
f2L<^CUi.>^^ (Ja^^^ ( . C.-T^.^^, .L-r-^

ANNUAL REPORT

OF THE GOVERNOR OF

THE PANAMA CANAL

FOR THE FISCAL YEAR

ENDED JUNE 30

1944

UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1946

For sale by the Superintendent of Document!, U. S. Government Printing Office, Washington 25, D. C. - Price 30 cent«

TABLE OF CONTENTS

Page

Introduction 2 Operation and maintenance of the Canal 2 Operation of auxiliary enterprises—business operations 3 Government—administration 3

Services rendered by the Canal to shipping 3 Net revenues 4 Replacements 4

Section I

Canal Operation and Trade via the Panama Canal

Statistics on Canal traffic 5 Canal traffic by fiscal years 1915 to 1944 9

Traffic by months—fiscal years 1944 and 1943 10 Nationality of vessels transiting Canal 10

Vessels paying tolls on displacement tonnage 11 Cargo shipments by trade routes 11 Total cargo shipments—Atlantic to Pacific 12 Total cargo shipments—Pacific to Atlantic 13 Important commodity shipments over principal trade routes

Atlantic to Pacific 14-15-1

6

Important commodity shipments over principal trade routes

Pacific to Atlantic 16-17-18-19-20

Classification of vessels between laden and ballast traffic 20 Laden and ballast traffic by nationality 23 Average tonnage, tolls, and tons of cargo per cargo-carrying vessel 23 Steam, motor, and other vessels 23 Frequency of transits of vessels through the Panama Canal 24 Gross tonnage of vessels 25 Small commercial vessels transiting Canal 28

Vessels entitled to free transit 28 V Canal operation and maintenance 29 -^ Hours of operation 29 o Lockages and lock maintenance 29

h- Operating schedule of locks 29 ^ Lockages 30 ^ Delays to shipping 31

"P Maintenance 31

' Power for Canal operation 32 ^ Water supply and general weather conditions 32 ^ Water supply 33

Air temperature 35

Li Winds and humidity 36 ^ Tides 36 Q Seismology 37

i Marine activities 37 Harbor activities 37

3 Aids to navigation , ^ ,,,^_,, 38

• m

193316
TV TABLE OF CONTENTS

Section I

Canal Operation and Trade via the Panama Canal—Con. Canal operation and maintenance—Continued Page

Marine activities—Continued

Accidents to shipping 38

Inspections 38

Admeasurement 38

Salvage and towing 39

Operation of tugs 39 Maintenance of channel—other dredging activities 40 Ordinary channel maintenance—Canal prism dredging , 41 Auxiliary dredging—other projects 42 Third Locks dredging . 43

Slides

' 44

Subsidiary Dredging Division activities 44 Equipment 45

Ferry service 46 Third Locks Project - 46

Authorization 46

General program - 47

Designs—plans—specifications 47

Construction 48

Personnel - 48

Section II

Business Operations

Panama Canal business operations 49 Mechanical and marine work 50 Gross revenues—class and source 50 Drydocks 51 Plant improvement 51 Operations 52

Electrical repair work 52 Purchases and inspections in the United States 53

Storehouses and ships chandlery 53

Obsolete and unserviceable property and equipment 54 Bulk petroleum products 54

Building construction and maintenance 54 Quarters for employees 56 Motor transportation 57 Panama Canal press 57

Subsistence 58 Revenues derived from the rental of lands in the Canal Zone 58

Business operations under the Panama Railroad Co 58 Trans-isthmian railroad 59 Receiving and Forwarding Agency 60

Coaling plants 60

Real-estate operations— 61 Telephone system 61 Commissary division 61

Sales 62 Purchases 62

Hotels 63 Mindi Dairy 63
TABLE OF CONTENTS

Section III

Administration

Departments.

Page

64

64 Operation and maintenance

Supply ^4 Accounting r Executive ^^ Health ^^ Panama Railroad Co "^ Changes in administrative personnel 65

Changes in administrative organization 66 Employees ^ Gold employees ^ Recruiting and turn-over of force—gold employees 69 Adjustments in wages and hours of work 70

Silver employees SUver wages

Sick and rest leave Cash relief for disabled silver employees 72

Repatriations Central labor office Safety program t

Purchase of war savings bonds by employees 76 Experiment gardens '^ Clubhouses

78 Legislation

Capital allotments, fiscal year 1945 79 Section IV

Government

CO Area of Canal Zone °^ Population ^^

Public health ^^

Vital statistics

°'* Malaria ^^

Hospitals ^6 Quarantine and immigration 86 Municipal engineering °' Water system °° Expansion of water supply facilities °° Sewer system °^ Roads, streets, and sidewalks °^ Other heavy construction activities 91 Test of Cucaracha rock formation 91

Cities of Panama and Colon 91 Miscellaneous activities. 91QO

Public order ^

Traffic accidents and control 93

Magistrates' courts: Balboa 94

Cristobal 94

Pardons and reprieves 94

Fire protection 95

Public schools system 95Q7 Playgrounds section *"
VI TABLE OF CONTENTS

Section IVGovernment—Continued

Page Postal system 98 Immigrations visas 99

Relations with Panama 99 Customs 100 Shipping Commissioner 100 Administration of estates.' 101 Foreign corporations 101 Insurance 101 Licenses 101 Selective service registration 102 Rationing program 102 Commercial aviation 103 Section V

Financial and Statistical Statements

Accounting system 105 Operation of the Panama Railroad Co 106 Panama Canal operations 106 Index to tables 107

Financial tables 108-190
REPORTS OF HEADS OF DEPARTMENTS AND DIVISIONS

Appendixes Not Printed

The material in the annual report of the Governor of The Panama Canal,

published in this volume, is to a large extent a summary of the data presented

in the annual reports from the heads of departments and divisions in the Canal

organization; the latter, regarded as appendixes to the report of the Governor,

are not printed. The annual reports of the Panama Railroad Co. and the health department are published separately; the latter is compiled for calendar years

only. The reports of the heads of departments and divisions, as listed below, are on file at the Washington Office of The Panama Canal and at the oflSce of the Governor at Balboa Heights, C, Z.

Engineer of maintenance, report of: Dredging division, report of superintendent. Plans section, report of chief. Safety section, report of safety engineer.

Special engineering division, report of supervising engineer. Assistant engineer of maintenance, report of: Civilian Defense Corps, report of director. Electrical division, report of electrical engineer.

Locks division, report of superintendent.

Meteorology and hydrography, section of, report of chief hydrographer.

Municipal engineering division, report of acting municipal engineer.

Ofl^ce engineering division, report of office engineer.

Accounting department, report of comptroller.

Marine division, report of marine superintendent.

Mechanical division, report of superintendent.

Supply department, report of chief quartermaster.

Executive department:

Civil afi"airs, division of, report of chief. Clubhouses, Panama Canal, report of director. General counsel, report of. License bureau, report of chief. Personnel supervision and managen^ent, division of, report of acting

director of personnel.

Police and fire division, report of chief. Real-estate section, report of chief. Schools, division of, leport of superintendent.

Surveying officer, report of. Aeronautics section, report of chief. Collector (acting), report of. Magistrates' courts: Magistrate, Cristobal, report of. Magistrate, Balboa, report of. Pardon board, report of chairman.

Paymaster, report of. Public defender, report of. Washington Office, report of chief of office and general purchasing officer. VII
Digitized by tine Internet Archive

in 2009 with funding from

University of Florida, George A. Smathers Libraries

http://www.archive.org/details/annualreportofgo1944cana
ANNUAL REPORT

OF THE GOVERNOR OF THE PANAMA CANAL

Balboa Heights, Canal Zone,

October 9, 1944.

The Secretary of War,

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, 1944.

The large program of defense construction initiated several years

ago neared completion during the past year, with a consequent

gradual decrease in the demands on The Panama Canal organization

resulting from those construction activities. On the other hand,

there has been a sharp increase in the use of the Canal and its facilities by vessels operated by the United States Government in the prosecution of the war. As a consequence, it has become necessary to make available on a greatly enlarged scale all types of services to transiting ships, includmg hull and machinery repairs and the supplying of oil, water, provisions, and ship chandlery. It is expected that

the number of such vessels will increase still further in the future, and

that the general level of Canal war activities will continue high until

after the cessation of hostilities in the Asiatic theater.

The preponderance of tolls-free vessels over tolls-paying continued

as during the preceding year, with a similar unfavorable ratio of revenue to operating expenses.

For the past 2 years it has been deemed advisable to withhold the

printing and public distribution of the annual report until after the war, because of the confidential nature of the statistical data and

other information contained in the report. The same course will be

followed this year, with your approval.

Effective May 16, 1944, the undersigned, having been appointed

Governor of The Panama Canal by The President of the United States

and having duly qualified on that date, assumed his new duties, vice

Major Gen. Glen E. Edgerton, United States Army, former Governor,

whose tour of duty with The Panama Canal terminated on May 15,

1944.

Respectfully,

J. C. Mehaffey, Governor.

1
2 REPORT OF GOVERNOR OF THE PANAMA CANAL

INTRODUCTION

Administration of the affairs of The Panama Canal enterprises

involves three main elements: (a) Operation and maintenance of the

Canal itself; (b) operation of the auxiliary enterprises necessary to provide adequately for the needs of shipping and of the Canal operating

forces; and (c) government of the Canal Zone, populated by American

civilians, native or tropical workers and their families, and United

States Army and Navy defense forces. In addition to these normal elements, during the past 5 years the

Canal organization has performed very important functions as a supply and service agency for the greatly expanded activities of the

Army and Navy, particularly in their extensive construction program.

While the Canal organization and equipment were not designed for

this duty and are by no means fully adequate, the services rendered

are regarded as very creditable. These services have contributed

materially to the efficiency and economy of the Army and Navy

operations, and will continue to do so for the duration of the war. The immediate supervision of the administration of these various

activities rests with the heads of the nine major departments and divisions. Responsibility and control of the entire organization are centered in the Governor of The Panama Canal who is also the president of the Panama Railroad Co., an adjunct of the Canal enterprise,

organized as a Government-owned corporation.

By Executive order of September 5, 1939, the provisions of section

13 of the Panama Canal Act, approved August 24, 1912, were invoked

as an emergency measure, and since that date the Commanding

General, Panama Canal Department, United States Army, has

exercised final authority over the operation of the Panama Canal and

all its adjuncts, appendants, and appurtenances, including control

and government of the Canal Zone; and the Governor of The Panama

Canal has been subject to that authority and the orders issued under it. Operation and Maintenance of the Canal

The primary function of the Panama Canal is to provide and maintain a waterway by means of which vessels may make the transit from

one ocean to the other, and to handle such traffic as presents itself for transit with a maximum of safety and a minimum of delay.

Essentially this involves the maintenance of the waterway, the operation of the locks, and the control of traffic through the Canal. Throughout the year the Canal force maintained its high standard of expeditious service not only in the actual transiting of ships but in providing

emergency repairs, fuel, supplies, and the various supplementary

services incidental to shipping. There were no interi'uptions of ship

traffic during the year.
REPOIJT OF GOVERNOR OF THE PANAMA CANAL

Opeeation of Auxiliary Enterprises—Business Operations

Second only to the operation of the Canal is the function of supplying necessary services to shipping and the Canal operating force. These services are provided under coordinated and centralized control

by the various business units of The Panama Canal and Panama

Kailroad Co. and include oil and coal bunkering plants; storehouses

for food, ship chandleiy, and other essential supplies; marine repair

shops; harbor terminal facilities for passengers and for handling and

transshipping cargo; a railroad line across the Isthmus; water and

electric power systems; and living quarters and retail commissary

stores for the operating force. Government—Administration

The usual functions of government, such as schools, police and fire protection, quarantine, public health, immigration service, posts,

customs, aids to navigation, steamboat inspection, hydrographic and

meteorological work, water supply, sewers, construction and mainte- nance of streets, and similar activities, which, in the United States

are directed by various officers of the national, vState, and municipal

governments, are entrusted in the Canal Zone to the Governor, and

are executed under his authority and responsibility. This centralization of all governmental activities under one head is essential to economical and efficient administration.

Services Rendered by the canal to shipping

The principal services rendered to shipping by the Canal and its adjuncts are shown in the following table, which presents a comparison

of the activities during the fiscal year 1944 with those of the 2 years

immediately preceding:
REPORT or' GOVERNOR OF THE PANAMA CANAL

TRAFFIC THROUGH THE PANAMA CANAL—Continued Net tonnage (Panama Canal measurement) of ocean-going commercial vessels... Cargo per Panama Canal net vessel ton (laden ocean-going commercial vessels only).. __. Average tolls per ton of "cargo (laden ocean-going commercial

vessels only) OTHER SERVICES

Calls at Canal Zone ports by ships not transiting the Canal... Cargo handled and transferred at ports (tons) Coal sales to ships (tons) Coal, number of vessels bunkered

Fuel oil—total barrels pumped (both incoming and outgoing) excluding Panama Canal use Fuel oil—number of vessels handled.

Repairs to ships other than Panama Canal equipment:

Number of vessels repaired Number of vessels drydocked

Sales to ships (except U. S. Army and Navy):

Provisions (commissary sales) Chandlery (storehouse sales) _.

Fiscal year

6, 073, 457

1,389

$0. 648

813

1, 734, 556

58, 583 213

23, 688, 710

2,431 3,514 418

$1, 596, 608

337, 577

1943

8, 233, 999

1,435

$0. 633

483

2, 018, 377

75, 491 294

20, 546, 768

3,057

2,318 332

$737, 061

101, 843

1942

11,010,004

1,381

$0. 645

2, 508, 421

123, 502

305

11, 620, 913 2,596

1,023

185

$543, 996

77, 325

NET REVENUES

During the fiscal year the revenue from tolls charged to commercial

shipping using the Canal was $5,473,846.30 and civil revenues plus

the postal surplus amounted to $239,393.31. The net appropriation

expenses were $12,634,164.42, resulting in a net deficit from Canal

operations proper of $6,920,924.81. The business operations under

The Panama Canal produced a net revenue of $1,553,294.06. The

combined net deficit resulting from the operation of the Canal and its business units during the fiscal year 1944 was thus $5,367,630.75

as compared to a net deficit of $2,396,497.05 in the fiscal year 1943.

Replacements

The past fiscal year marked the -close of 30 years of successful operation of the Panama Canal. A very important factor contributing to

this creditable record is the care that has been taken to maintain all parts of the Canal structures and equipment in good operating condition.

Of the total capital value of The Panama Canal, approximately

$100,000,000 is the value of property of the transit divisions (which is subject to deterioration). Some of this property, including locks,

dams, and other concrete structures, is still in excellent condition and

requires but little expenditure for upkeep. However, other types of

property, subject to more rapid deterioration, require systematic and

orderly replacement as their economic life is exhausted, and appropriations must be made by Congress for this purpose, as well as for the

construction of new facilities as the need therefor develops.
SECTION I CANAL OPERATION AND TRADE VIA THE PANAMA CANAL

STATISTICS ON CANAL TRAFFIC

Total transits of the Canal in the fiscal year 1944, including tolls- paying commercial vessels and vessels transiting free of tolls nmiibered

5,130 in comparison with 4,372 in the preceding fiscal year, an increase

of 758 transits, or about 17 percent. The following table gives a

segregation of tliis traffic for the past thi'ee fiscal years:

[Number of transits]
6 REPORT OF GOVERNOR OF THE PANAMA CANAL

present time a great number of cargo vessels are carrying supplies

for the Army and Navy as a direct part of the war effort. As these

vessels are exempt from the payment of tolls they are not included in

the traffic statistics, although they now comprise an important amount

of cargo carried through the Canal.

The following data show the total amount of cargo carried through

the Canal since the fiscal year 1939, segregated between that carried

by commercial and by noncommercial vessels:

Fiscal year
REPORT OF GOVERNOR OF THE PANAMA CANAL

in one ship is consolidated into one trade route, and no attempt is made to distinguish between cargo originating in the United States

and in Canada.

The present temporary procedure is not as accurate or complete

as the standard peace-time procedure, but it is considered adequate

for the war period, since the commercial shipping now transiting the

Canal is entirely subject to war conditions, both as to routing and as

to commodities carried, and so is not comparable with commercial

shipping in normal times.

Ocean-going commercial (tolls-paying) traffic.^ —A total of 1,562

ocean-going tolls-paying vessels transited the Canal in 1944, which was a decrease of 260 transits, or 14 percent, from the 1,822 transiting

in the preceding fiscal year. The total of 1 ,562 transits in this category

for 1944 may be considered an all-time low for any full fiscal year of operation s'ince the Canal was opened to traffic; the fiscal years 1915

and 1916 actually had fewer transits than 1944, but the Canal was

only in operation 10^ months in 1915 (having been opened to traffic August 15, 1914), and was closed for approximately 7 months in 1916 on account of slides. The following figures show the principal features

of ocean-going commercial traffic through the Canal in the past three

fiscal years:
8 REPORT OF GOVERNOR OF THE PANAMA CANAL

from the Canal of vessels engaged in the important United States

intercoastal trade.

The combined cargo movement in both directions in 1944 amounted

to 7,003,487 tons, or a decrease of 3,596,479 tons (33.9 percent) from

that in 1943. The Atlantic-to-Pacific movement declined from

4,945,267 tons in 1943 to 3,354,349 tons in 1944 (32.2 percent), while

the Pacific-to-Atlantic movement declined from 5,654,699 tons in

1943 to 3,649,138 tons in 1944 (35.5 percent).

The prmcipal cause of the decrease in traffic moving via the Canal

in 1944 in comparison with the preceding year was the decrease in the

number of vessels transporting cargoes between the east coast of

North America and Asia (India and the Persian Gulf area) and between

the east coast of North America and the east coast of Africa (principally the Suez Canal area). Total cargo shipped to and from these

areas via the Canal in 1944 was less than one-fourth the Sji million tons shipped in 1943. As stated in the report for 1943, the extensive use of the long route via the Panama Canal and the Pacific for shipments of materials between the east coast North America and the

India/Persian Gulf area and Africa was probably influenced by safety

considerations since shorter routes for this trade are via the Mediter- ranean Sea or the Cape of Good Hope. Another route presumably

used for safety reasons in [l943 was that between Europe/east

coast North America and the east coast of South America, via the

Strait of Magellan.' This'^route] was| also' used to some extent in

1944 when a total of 151,407 tons was shipped, as against 367,226

tons in the preceding year. Trade between the east coast United States and the west coast of

South America accounted for the largest tonnage over any single

trade route in 1944, a total of 1,842,339 tons having been exchanged

between these two areas during that period. This represents an

increase of 311,600 tons, or 20 percent, over the preceding year. The Atlantic-to-Pacific movement in this trade, totaling 515,190

tons, more than doubled the shipments of 1943 and constituted the

main factor in the over-all increase in this trade. The movement in

the opposite direction, totaling 1,327,149 tons, was up 1.8 percent over the preceding year. Shipments via the Canal between Europe and Australasia continued

to form an important element in Canal traffic, although the shipments

in both directions in 1944, amounting to 1,202,300 tons, were about

19 percent under those in the preceding year. There was a sharp

increase in cargo shipped between the east coast North America and

Australasia because of the heavy shipments from the Atlantic to the

Pacific, whi(^h totaled 1,221,119 tons in 1944, almost quadrupling the

313,825 tons in 1943; tonnage moving from the Pacific to the Atlantic
REPORT OF GOVERNOR OF THE PANAMA CANAL 9

in this trade was considerably lower, however, totaling but 99,540

tons as compared with 239,484 tons in 1943.

Cargo moving from the west coast United States/Canada to Europe

accounted for 342,681 tons in 1944, which represents a decrease of

about 61 percent from the 882,367 tons in the preceding year. Practically all of this cargo was transported by British vessels built on the

west coast of North America and sailing on their maiden voyages to the United Kingdom.

Further details of individual trade routes and commodities are presented on pages 1 1 through 20 of this report.

The receipts from tolls as reported to the United States Treasury

for the fiscal year 1944 were $5,473,846.30. This figure includes tolls on local tolls-paying vessels amounting to $17,682.98 which are not

included in the Canal statistics covering ocean-going commercial

(tolls-paying) traffic. This item, therefore, accounts for the difference

between the tolls receipts reported to the Treasury and the figure for

tolls levied on ocean-going commercial traffic as reported in the following studies of traffic which are based on' tolls levied at the time of transit. Canal Traffic by Fiscal Years 1915 to 1944

Comparative traffic statistics covering ocean-going vessels for each

fiscal year since the Canal was opened to navigation are shown in the following table:

Fiscal year ended June 30—
10 REPORT OF GOVERNOR OF THE PANAMA CANAL

Traffic by Months—Fiscal Years 1944 and 1943

The ocean-going commercial traffic during each month of the

fiscal year 1944 is summarized in the following table in which are

inserted for comparison the corresponding figures for the preceding

year:

July August

September

October November

December

January

February March

April May

June

Total Average per month,.

Number of

transits

1943-44

131 162

122

120

139

102

129

143

144 140

108 122

1,562

130

1942-43

129

113 120 162

146 168

151 150 125

183

179

196

1,822

152

Panama Canal

net tonnage

553, 901

668, 309

479, 535

433, 307

524, 975 339,018

489, 454

524, 289

499, 661

608, 747

436, 127

516, 134

6, 073, 457

506, 121

1942-43

528, 236

460, 666

591,941 757,410

599, 273 761,032

733, 660 710,943

582, 891

805, 835

853, 676

848, 436

, 233, 999

686, 167

Tons of cargo

1943-44

580,644

781,764

557, 651

536, 964

673, 023

350, 208

564, 602

585, 994

575, 279

775, 593

464, 958

556, 807

7, 003, 487

583, 624

645, 385

567, 302

721.421 1,005,486

846, 889

1.021,.333

962, 567

944, 635

767, 679 1,080,943 1,067,577

968, 749

10, 599, 966

883, 331

Tolls

$487, 843. 56

613, 079. 14

438, 141. 76 391,543.52

466, 229. 60

310, 272. 56

438, 784. 24 461,868.58

451,497.84

542, 748. 12

395, 178. 70

458, 975. 70

5,456,163.32

454, 680. 27

1942-43

$463, 097. 60 411,701.80

525, 664. 44

673, 820. 78

536, 734. 14

685, 880. 40

654, 032. 52

650, 633. 26 524,161.96

720, 445. 60

760. 599. 78 749,912.66

7,356,684.94

613, 057. 07

Nationality of Vessels Transiting Canal

Segregation of the ocean-going commercial traffic ' through the

Canal during the fiscal year 1944, by nationality, is presented in the

following table, which shows transits, measurement tonnage, tolls and

tons of cargo:

Ocean-going commercial traffic^ through the Panama Canal during the fiscal year 1944,

by nationality of vessels
REPORT OF GOVERNOR OF THE PANAMA CANAL 11

Vessels Paying Tolls on Displacement Tonnage

In the Canal traffic statistics, foreign naval vessels such as transports, supply ships, tankers, etc., with a measurement of 300 net tons (Panama Canal measurement) or more, and vessels of war, dredges,

etc., with a displacement of 500 tons or more, are classified as ocean- going commercial tolls-paying vessels. Statistics on these vessels,

except as relate to displacement tonnage, have been included in the

traffic summaries shown on the preceding pages. Displacement

tonnage cannot be combined with net tonnage, and the following table

presents by nationality statistics covering 58 vessels of war which

transited the Canal during the fiscal year 1944 and paid tolls on dis- placement tonnage:

Nationality
12 REPORT OF GOVERNOR OF THE PANAMA CANAL

Total Cargo Shipments—Atlantic to Pacific

[Tons of 2,240 pounds]
REPORT OF GOVERNOR OF THE PANAMA CANAL 13

Total Cargo Shipments—Pacific to Atlantic

[Tons of 2,240 poundsl
14 REPORT OF GOVERNOR OF THE PANAMA CANAL

Important Commodity Shipments over Principal Trade RoutesAtlantic TO Pacific

[Tons of 2,240 pounds]

'
REPORT OF GOVERNOR OF THE PANAMA CANAL 15

Important Commodity Shipments over Principal Trade RoutesAtlantic TO Pacific—Continued

ITons of 2,240 pounds]
16 REPORT OF GOVERNOR OF THE PANAMA CANAL

Important Commodity Shipments over Principal Trade RoutesAtlantic TO Pacific—Continued

[Tons of 2,240 pounds]
REPORT OF GOVERNOR OF THE PANAMA CANAL 17

Important Commodity Shipments Over Principal Trade Routes—

Pacific to Atlantic—Continued

[Tons of 2,240 pounds]

West coast United States/Canada to Cristobal, C. Z.: Mineral oils All other - - - Total this trade route. West coast United States/Canada to West Indies: Canned goods, various - Flour.- Lumber - Mineral oils - Rice

All other and unclassified Total this trade route. West coast United States/Canada to Europe: Borax - -- Canned goods, various Chemicals, unclassified. Cotton

Fruit, dried Grains, other than wheat

Lead, metal Lumber

Phosphates - - --• Wheat... Woodpulp...

Zinc, metal... - .- All other and unclassified Total this trade route. West coast United States/Canada to east coast South America: Lumber.

Metals, copper and lead.. Woodpulp

All other and unclassified . Total this trade route.

Fiscal year

1944

22, 221

8,936

31, 157

25, 42049

1,708 34,205

200,524

12,300 4,076 3,260

13, 020

48, 119

342, 681

1,800

650

West coast United States/Canada to Egypt: Lumber

All other and unclassified Total this trade route- West coast United States/Canada to Africa (other than Egypt): Lumber

All other and unclassified Total this trade route. West coast United States/Canada to Asia: Lumber

All other and unclassified Total this trade route. West coast Central America/Mexico to east coast United States: Bananas

All other and unclassified Total this trade route. West coast South America to east coast United States: Beans, edible Cocoa and cocoa beans

Coffee --- Copper, metal

Lead, metal Mineral oils .- - Nitrate

Ore, iron. - Ore, other than iron

2,450

12,882 2,844

15, 726

9,546

652

10, 198

7,768

2,600

80,801

459, 915

25,920

14,417

416, 211

78, 650

1943

129, 831

12, 456

142, 287

10, 622

10, 891

10, 703 28,665

25, 567 86,448

18, 339 22,358

13, 817 20,429 3,183

10,697

92, 982

435,884

13. Ill 60,334

42, 149

71, 444 77,640

882, 367

7,366

7,366

1,149 10,312 90,628

261, 989

16,764 46,298

607, 496

44,760

149,319

1942

9,351

13,003 22,354

19, 566 2,685

26, 146 9,366

2,427

16, 741 76,831

11, 879

94,320

11,331 9,763 32,124

1,766

80, 573

141, 024

13,688 68,639

24, 069

51, 880

541, 046

15, 095

12, 481 11,128 39,324

78,028

17, 657

3,356

21,013

30, 993

4,994

35, 987

31, 357 16,950 48,307

52,844

1,366 54,210

21,724

4,601 32,594

349, 189 27,468

592, 437

1,204,695

214, 002
18 REPORT OF GOVERNOR OF THE PANAMA CANAL

Important Commodity Shipments Over Principal Trade RoutesPacific TO Atlantic—Continued

[Tons of 2,240 pounds]
REPORT OF GOVERNOR OF THE PANAMA CANAL 19

Important Commodity Shipments Over Principal Trade RoutesPacific TO Atlantic^—Continued

[Tons of 2,240 pounds]

Fiscal year

1942

Australasia to Europe—Continued

Zinc, metal

Zinc, ore

All other and unclassified

> 92, 305

192, 066

10, 153

69, 818

76, 673

10, 861

73, 843 %.265

Total this trade route 998, 930 1, 163, 244

Philippine Islands to east coast United States: Chrome ore. -__ Coconuts - Coconut oil. Copra .- Hemp, unmanufactured Manganese ore Ores, other than chrome and manganese.

Sugar

All other and unclassified. _

1. 403, 106

77, 125

19, 389

59, 370

31, 809

42, 776

22, 467

10, 443

119,024

22, 361 Total this trade route- Asia to east coast United States: Bags and bagging Copra Hemp, unmanufactured

Jute, unmanufactured

Alanganese ore Ores, other than manganese. Rubber, raw. Sago flour .._ Skins and hides

Spices Tea

Textiles .- Tin, metal

Vegetable oils All other and unclassified- __

72, 813 6,657

1,100

212, 691

10, 840

515

112,366

29, 312 3,216

90, 856

251,016

25, 476

20, 809

2,296

16,241"

11,989

1,177

28, 503

12, 245

5,535

64, 549

20, 946

63, 754

Total, this trade route.

Asia to Europe: Copra Nuts, edible Oilseeds

Ores, various Rubber, raw

Sugar Tea

Vegetable oils All other and unclassified.

393, 237 671, 665

20, 803

16, 647

8,641 2,570

18, 659

'32,"4i5"

Total, this trade route. 99, 735 East coast South America to east coast United States: Meat, canned

Ores, various. Quebracho extract Skins and hides Wool

All other and unclassified

798

1,000 7,413

10, 631 7,571

68, 439

22, 277

44, 696

28, 4fe& 21,116

22, 576

37, 574

Total, this trade route. 95, 852 East coast South America to Europe: Meat, canned Meat, refrigerated All other and unclassified 363

176, 738

28, 847

58, 088

32,293 Total, this trade route. 119, 228

404, 754

22

40, 743 1,284

62, 492 36,046

452, 318 41,028

4, 592

15,073

15, 048

1,315

55, 885

55, 181

115, 399

896, 42f

73,69

11,114

71, 348

97, 875

9 555 47,027

84, 604

395, 221

' Zinc metal and ore—no break-down for 1944.
20 report of governor of the panama canal

Important Commodity Shipments Over Principal Trade RoutesPacific TO Atlantic—Continued

[Tons of 2,240 pounds]
REPORT OF GOVERNOR OF THE PANAMA CANAL 21

<MCOOOO cc 5i r^ 00C^h-.»O MOOO »0^i O «S Tt< .-• -HI O «dEo

»-• 1-1 o>o< Ol

) h-6? 1-^ i-<c

i-H O -^ 03 CO -^ O S?2iS

I " COQO

CO t^ di 25 00 ^ CC 00 «-H lO

ocoioo ^ooS S2

cniot^i-i

t^ M CO 03C^C<

"co(M«o r-too

:g s

i6 ^ ,-H Tf r^ ^ * - - 1-HCDi-H »o »-* -^ CO cs t>-

C^ iC *

i-H r^ -H

. _ . . lo F-T »0 »-* -^ i-t 1-H

5 0QO

<1

CO Tj< 0000 w t*- ^ ^ O -^ MCOCO 00 ic ^ »o

)05>-l i-l«

W50S O ^H CO ^

* ooo t^(Mi: to 00

5

"go or N »0 CO O OS CO 1—

to »o lO

rj w;0

.»3- -

5 OS 00

4 CO T»" oeo

c^-^ ~-*ai

50 05 O to-<oo

Tt« -^ CO

COC^IOO

Oi CO — OS

, -, 2 03

"3 S-3 Sco 3 §-

o .is a

•3 I- g 5 , o I- 7: u c 3 oj o oj a2

g.S-oC ,00

re::

. ,jis fl ii°S

k. o =; g|^^BgS oj O OS TM ~ 03 O

S$S S2

— ^ H
22 REPORT OF GOVERNOR OF THE PANAMA CANAL

CO (O »0 *n Tj* iO r~i -^

^ t^M* 00

t^ t^ com

CO C0 05 --^ CD looT ^ »0 Tt* O CC CO

OS C^ CD CO

OS »o ic 00 ec

00 00 CM CO ^

IC CO '-< CO »» O ^ CO ^ oco

i-ioeo

»3

«-H CO t^ ^ oo»o ^ i-< CO INNCO"

—< »; c^t^ m

—'i-HO—<oi r^o-Hoo-* ^ <£) Tt* t^ CO ^^^-^oo*

S.H

0000*OCD ^ .-H^ OO »o ^

^"co O CO lO OOCD<NCD

3 ^ TfCO i-< O

«^ SWb^cD lO .-H (^ ^ DO CO t^

f/>

OM* Tt« COOQ CDOO

I lo CO Ci ^ >o i-t r- O Tt<COOS COOi Tj< »o i-t r- oTc^fc^—

COM t^ OS

« CD lO iC )-^ '^ *c^co csoT 00 COQOtTT Cq CO

CCOi-rS* -^ 0> CC C^ OOOOO <DCCOSi-* t^ t^ Ol CO L rr c<i rf^ CO 00

»o 00 r^ ^

59

Is

00 t-< (N CO f—t »0 05 OO OO-^OCO OiiO^ CO

«» ^ W ^ CO 00 CO 00 Og t^M

C^ CO CO CO

cO(?ft-r OoiCO

OOCO-J CO-*

Oosco

-6* .

5 CD "5 * CO M 00

• ^ OOO OS CO <CO^H »0 ^H OS osos t^ ^ --<

^H Tt*

sii

^Se

G Si2 at

CO ^

5SO 3 "32

«So

28

;2s^So

'•goo a a| lis^aj ;o

03
REPORT OF GOVERNOR OF THE PANAMA CANAL 23

Laden and Ballast Traffic by Nationality

In the table below the ships of each nationality have been segre- gated to show separate statistics on vessels which were carrying

cargo and/or passengers at the time of transiting the Canal and those

which transited in ballast:
24 REPORT OF GOVERNOR OF THE PANAMA CANAL

Steamers:

Oil burning.. Coal burning Motor ships Miscellaneous Total

Fiscal year

738

160

593

71

1,562

1943

878

301 613

30

1,822

1942

1,254 332

1,065

37 2,688

Frequency of Transits of Vessels Through the Panama Canal

During the fiscal year 1944, 750 individual ocean-going commercial

vessels, representing 17 nationalities, passed through the Panama

Canal. In the aggregate these vessels made a total of 1,562 transits.

The number of transits made by individual ships varied from 1 to 63,

and averaged 2.08. The greatest number, 63, was made by the small

motor vessel Dido, plying between the Atlantic terminus of the Canal

and the west coast of South America.

The United States was first in the number of individual vessels

during the year with 322, as well as in the number of transits—485;

Great Britain was second in both individual vessels and transits

with 291 and 478, respectively.

The following table shows the number of individual ships, the

number of transits for each ship, the total transits for the year, and

the average number of transits per individual ship, segregated by

nationality:

Vessels making indicated number of transits during fiscal
REPORT OF GOVERNOR OF THE PANAMA CANAL 25

Vessels making indicated nuviber 0/ transits during fiscal year 1944—Continued

Nationality
26 REPORT OF GOVERNOR OF THE PANAMA CANAL

Canal and ports on the west coasts of Central and South America,

carrying goods which are transshipped at Cristobal to or from larger

vessels. There has been much less of a decrease in transit of smaller

vessels than in larger vessels, and so vessels under 2,000 tons now

account for more transits than any other sized vessel. In 1943 and

1942 vessels in the 6,000- to 8,000-ton group comprised the greatest

number, while in the 4 years preceding 1942 the 4,000- to 6,000-ton

group had the greatest number.

The average gross registered tonnage of all vessels paying tolls on

the basis of Panama Canal net tonnage in the fiscal year 1944 was

5,351 as compared with 6,061 for the fiscal year 1943, representing a

decrease of 11.7 percent.

The following tabulation shows the ocean-going commercial vessels,

excluding those paying tolls on displacement tonnage, in groups

according to registered gross tonnage, segregated by nationality, with

average tonnages for 1944 and 1943 and group percentages for the

fiscal year 1944:
REPORT OF GOVERNOR OF THE PANAMA CANAL 27

TO r»>»< OOrH ii-IOT 00 W OS t^

^ Tf O Ml

(M ^ O O ^ C^ Ml .-HO IN IN M OOOa

<Q <D m o q

coo »o -^

CO M (N «D Tf osc^Tos" 00 •VH ocq

CT>r^^ ic o> w

o "^ ^ .-I Met)

OOi-l .-H ^ oc ^ M Tfl •-! CO

r^-^-H o-HO

"oi.tC oS t" oC» 3 So

oOiS

So

00 C-l CO .

OoTo

Tj. r-H I^ Ol CD

»0 CO

IN 1-1 Oi -^ —I >0

—I INCO *'0
28 report of governor of the panama canal

Small Commercial Vessels Transiting Canal

Transits of small cargo-carrying vessels and other small miscellaneous craft of less than 300 net tons (Panama Canal measurement)

or 500 displacement tons are excluded from statistics on ocean-going

commercial traflfic, although the vessels are not exempt from the payment of tolls. Transits of these small vessels during the year, together

with the tonnage, tolls, and amount of cargo carried, are summarized

in the following table:

Transits: Rated on net tonnage Rated on displacement tonnage

Total transits Panama Canal net tonnage Displacement tonnage

Tolls Cargo (tons)

Atlantic

to Pacific

105

4

109 8,882

201

$7, 625. 22

12, 820

Pacific to Atlantic

10422

126 9,133

5,632

$10, 057. 76 4,336

Total

20926

235

18, 015 5,833

, 682. 98

17, 156

Vessels Entitled to Free Transit

Naval and other vessels owned and operated in the Government

service of the United States and Republic of Panama, war vessels of the Republic of Colombia, and vessels transiting solely for the purpose

of having repairs made at the Canal shops, are exempt from the payment of tolls, and such vessels are not included in the general transit

statistics pertaining to Canal traffic. In normal times free transits represent a relatively small part of

the total Canal traffic (less than 9 percent in 1939), but since the entry

of the United States into the war there has been a great expansion in

such traffic, which during the past year amounted to 3,333 tolls-free vessels. This was five times the number of free transits in 1939, and

comprised 65 percent of the total traffic in 1944. Of the 3,333 vessels

transiting free in 1944, 75 percent were routed from the Atlantic to the Pacific.

( "^ The following tabulation shows for the past thi'ee fiscal years the

number of vessels, the measured tomiage, the approximate amount of

tolls to which they would have been subject at the prescribed rates if tolls had been charged agamst them, and the cargo carried by such

vessels:
REPORT OF GOVERNOR OF THE PANAMA CANAL 29

Fiscal year

1944 1943 1942 Number of transits: On net tonnage basis On displacement tonnage basis Total transits Tonnage: Panama Canal net Displacement-- - Approximate value of tolls Cargo (tons) _

2,107

1,226

1,523 850

3,333

5, 303, 061

2, 903, 783

$5, 876, 729

4, 572, 034

2,373

1, 453, 560

1, 007, 351

$1, 739, 410 419,080

1,091 425

1,516

1, 806, 340

765, 779 $1,962,926

566, 637

Full information on combat vessels of the' United States Navy,

including naval supply ships completely manned and operated by the

Navy, is not required by The Panama Canal for handling the ships in transit. For these vessels estimates are made of the, displacement

tonnage or the Panama Canal net tonnage and the consequent value

of tolls. No attempt is made to estimate cargo toimage carried by

naval supply ships, which comprise only a minor part of the total noncommercial cargo-carrying vessels. CANAL OPERATION AND MAINTENANCE

Hours of Operation

Dispatching of ships through the Canal is conducted on schedules.

Vessels awaiting transit begin moving through the Canal from the

terminal ports at 6 a. m. and dispatches are made thereafter from each

terminus at intervals of 1 hour. The following is a summary of

normal arrangements in effect at the end of the fiscal year. From Cristobal Harbor, first ship at 6 a. m., last at about 3 p. m.; from Balboa anchorage, first ship at 6 a. m., last at 2 :30 p. m. Variations often occur in these schedules due to wartime emergencies.

Tankers and vessels carrying hazardous cargoes are dispatched at the discretion of the port captain and normally are not permitted to proceed unless they can clear the locks before dark. Numerous

exceptions are made in these cases in order to avoid delaying war

cargoes. Special precautions and regulations for handhng ships in the locks were continued throughout the year. Lockages and Lock Maintenance

The following was the operating schedule of the locks at the end of

the fiscal year 1944:

Gatun

Shift No. 1 —7 a. m. to 3 p. m.-—8 locomotives.

Shift No. IX^—10 a. m. to 6 p. m.-—8 locomotives.

Shift No. 2—3 p. m. to 11 p. m.—8 locomotives.
30 REPORT OF GOVERNOR OF THE PANAMA CANAL

Pedro Miguel:

Shift No. 1 —8 a. m. to 4 p. m.-—8 locomotives

Shift No. 2—9:30 a. m. to 5:30 p. m.—8 locomotives

Shift No. 3—4 p. m. to 12 m.—8 locomotives

Miraflores Locks:

Shift No. 1 —7 a. m. to 3 p. m.-—8 locomotives

Shift No. 2—10 a. m. to 6 p. m.^—8 locomotives.

Shift No. 3—3 p. m. to 11 p. m.—8 locomotives.

Lockages

Lockages and the number of vessels handled (including Panama

Canal equipment) are shown in the following table by months for the

past fiscal year, with corresponding totals for the past 5 years:

Month

19iS July _ August

September

October November

December 19U

January February March

April May

June

Total

Fiscal year:

1939

1940

1941 1942

1943

Gatun

Lockages Vessels

224 263

211 216

236

250

285

269

287

287 350

389

3,267

6,054 5,302

5,103 4,669

2,796

421 527

411 425

433

516

494 454 468 482

555 660

7,929

7,713 8,018

10, 986

5,236

Pedro Miguel

Lockages

275

291 275

391 295

284

320

300 314

303 455

533 4,036

6,283 5,392

5,018 4,445

3,661

Vessels

516

489

518 965

518 550

511 483

490 496

945

1,151 7,632

8,064

7,643 7,489 8,084 6,672

Miraflores

Lockages

272

295

260 255

287 289

311 294 302

306

365 420 3,656

6,221 5,286

4,943 3,775 3,395

Vessels

532

516

478 479

542

576

512 488

497

512

568

724

7,570 7,410

5,806

5,934

The average number of lockages made daily, and the average

number of vessels handled per lockage, during each of the past five

fiscal years, are shown in the following table

Fiscal year
REPORT OF GOVERNOR OF THE PANAMA CANAL 31

Delays to Shipping

The lock-operating machinery functioned smoothly throughout the

year except for a few incidents due to faulty operation or minor failure

of equipment. The following summary includes all delays to vessels

while transiting the locks due to the incidents mentioned:

Qatun.. Pedro Miguel

Miraflores

Total...

Number of lockages delayed

delay caused

all vessels

3 hours 39 minutes

3 hours 8 minutis

3 hours 48 minutes

10 hours 35 minutes

Maintenance

During the progress of special improvement projects on the locks in

the past several years, regular overhaul periods were impracticable,

and the normal schedule which called for overhaul at Pacific locks in

1941 and the Atlantic locks in 1943 was not adhered to. Miraflores locks had a minor overhaul of both chambers in 1942,

which was intended to last until 1944. Between January 12 and April

21, 1944, both sides of Miraflores were given a first-class overhaul,

except for miter gate rehearing, which was intended to put these

locks in a safe operating condition for at least four more years. The west side of Pedro Miguel had been overhauled between March

1 and July 2, 1943, and the east side was overhauled between August

13 and September 29, 1943. Certain regular overhaul features were

not performed, but sufficient work was done to insure safe operation

until 1948.

Some work had been done on the east side of Gatun locks last year, and the west side was given a minor reconditioning during the past

year. Gatun locks are now considered to be in safe operating condition until 1946, and a major overhaul at Gatun is now scheduled for

that year.
32 REPORT OF GOVERNOR OF THE PANAMA CANAL

Power for Canal Operation

The table below summarizes and gives pertinent data relative to the

electric power generated by the power system of the Canal Zone for

the past three fiscal years:

[Kilowatt hours]
REPORT OF GOVERNOR OF THE PANAMA CANAL 33

Section of Meterorology and Hydrography, copies of which are

available at the Office of the United States Weather Bureau or of

The Panama Canal in Washington, D. C. In the following paragraphs

data for the fiscal year 1944 are presented for water supply and other

subjects where data arc readily available on a fiscal-year basis. Where fiscal-year data are not readily available, data are presented

for the calendar year 1943.

Water Supply

The water requirements of the Panama Canal for hydroelectric

power, lockages, and municipal use are supplied by Madden and

Gatun Lakes which together dram an area of 1,289 square miles.

Water spOled from Madden Lake or drawn for use of Madden hydroelectric station flows into Gatun Lake and remains available for

Gatun Lake uses. The total inflow of water from Madden and

Gatun drainage basins during the year ended June 30, 1944, and the

expenditure of tliis water are itemized in the following table. Comparable data for the preceding year are also given:
34 REPORT OF GOVERNOR OF THE PANAMA CANAL

Storms and Floods

The only noteworthy general storm during the year was the norther

and flood of December 18-20, 1943. This was the most severe storm

of the nortlu^r type to visit the Atlantic coast of the Canal Zone in recent years, and was similar to the storms that were a menace to shipping in Colon Harbor prior to the construction of the breakwaters

in 1915. The wind at Cristobal on December 19 attained a 5-minute

maximum of 35 miles per hour and averaged 25 miles per hour from

the northwest and north for the 24 hours from midnight to midnight.

This is the second highest daily mean wind velocity at Cristobal in a 35-year record, the record of 27 miles per hour having occurred on

April 4, 1915. One ship went aground and others were in distress

in the heavy seas along the Atlantic coast, but no serious damage

occurred inside the protection of the Colon breakwaters. Moderate

to heavy rains were general over the Canal Zone and created floods

in the Gatun and Madden Lake areas. The maximum 24-hour

inflow into Madden and Gatun Lakes combined 'averaged 152,000

cubic feet per second, amounting to about 13 billion cubic feet,

equivalent to slightly less than a 3-foot depth on Gatun Lake. On

December 19-20, 12 gates were open at the Gatun spillway for a period of 28 hours with a maximum discharge of 124,530 cubic feet per second. The rains stopped after 2 days and the storm did not

develop major flood proportions.

Dry Season—1944 The period in the 1944 dry season durmg which the inflow into

Madden and Gatun Lakes was below Panama Canal water requirements extended from January 10 to April 26, a duration of 108 days.

The 1944 dry season was somewhat shorter than usual and the run-off

for the dry season months—January to April inclusive—was 8 per- cent above the 31 -year average for this period. However, on account

of increased water use for electric power the draft on reserve storage

in Madden and Gatun Lakes was the greatest in recent years. The

total inflow into Madden Lake for the 108-day period was 10,404

million cubic feet; water requirements for the generation of power

and other uses totaled 17,812 million cubic feet, and so the draft on Madden Lake storage amounted to 7,408 miflion cubic feet,

lowering the lake level by 15.09 feet—from elevation 250.30 to 235.21

feet. The total inflow into Gatun Lake during this period, induding

all water drawn from Madden Lake, was 21,538 million cubic feet; water requirements for lockages and other uses totaled 37,878 million

cubic feet, and so the draft on Gatun Lake storage amounted to 16,340 million cubic feet, lowering Gatun Lake level by 3.58 feet

from elevation 86.96 to 83.38 feet.
REPORT OF GOVERNOR OF THE PANAMA CANAL 35

Lake Elevations

During the fiscal year ended June 30, 1944, Madden Lake varied in

elevation between a maximum of 256.06 feet on December 19, 1943,

and a minimum of 235.03 feet on April 27, 1944, a range of 21.03 feet. The maximum of 256.06 feet was recorded during the storm of December 18-20, previously discussed, and occurred at a time when Madden

Lake was full to capacity in anticipation of the coming dry season. This was the highest level of Madden Lake on record, the previous

high being 251.40 feet on December 22, 1942. Gatun Lake varied in

elevation between a maximum of 87.00 feet on January 9, 1944, and a minimum of 83.32 feet on April 26, 1944, a range of 3.68 feet. Rainfall

During the calendar year 1943, rainfall in the Canal Zone and

adjacent drainage areas averaged slightly above normal. Along the

line of the Canal, annual totals ranged from 71.37 inches at Balboa,

the Pacific terminal of the Canal, to 126.23 inches at Cristobal, the

Atlantic terminus. At Porto Bello, 20 miles northeast of Cristobal and

just outside of the Canal Zone, 1943 rainfall totaled 178.35 inches.

March 1943, at the height of the dry season, was the month of least

rainfall, with montlily totals at different stations ranging from 0.11 to 4.86 inches. The heavy rains accompanying the norther of December

18-20, 1943, made December the month of greatest rainfall with

month totals at various stations ranging from 8.53 to 28.75 inches.

The greatest 24-hour rainfall during the year was 10.32 inches at Good3^ear in the Gatun Lake area on December 19 and 20. Air Temperaturk

Air temperatures in the Canal Zone for the calendar year 1943 were

very near normal. April was the warmest month ^vith bihourly mean

temperatures of 80.4° F. at Balboa Heights on the Pacific coast,

79.0° F. at Madden Dam in the interior, and 81.4° F. at Cristobal on

the Atlantic coast. November was the coolest month with mean

temperatures of 77.4°, 76.7°, and 79.3° F. at the three stations, re- spectively. Annual means and extremes at Canal Zone stations

during the calendar year 1943 are given in the following table:

station
36 REPORT OF GOVERNOR OF THE PANAMA CANAL

Annual means and extremes on record at the above stations are as

follows:

station
REPORT OF GOVERNOR OF THE PANAMA CANAL 37

Seismology

Two earthquake shocks were felt by Canal Zone residents during

the fiscal year 1944—on August 12 and August 27, 1943. Both shocks were sHght and felt by only a few.

On May 2, 1943 (not mentioned in the annual report for fiscal year

1943), there occurred the heaviest shock recorded on the seismographs

in the Canal Zone since May 6, 1936. The time of the first onset was 12:18:47 p. m., seventy-fifth meridian time. The shock was

generally felt by residents of the Canal Zone and many were alarmed

and ran outdoors. Of seven pendulum clocks in the Administration

Building at Balboa Heights, five stopped and two continued to run. In private residences some dishes and mirrors were broken but

material damage was small. The United States Coast and Geodetic

Survey placed the epicenter in latitude 6.4° N., longitude 80.1° W.,

about 180 miles southward from Balboa Heights on the floor of the

Pacific Ocean.

Marine Activities

Transit operations continued thi'oughout the first 10 months of the

year, with only one side of each pair of locks in use at one time. In

May 1944, however, both sides of all locks became available for use, and were placed in operation. Wartime precautions for safeguarding

the Canal and vessels in transit continued throughout the year. While there was a further decrease from 1943 in the commercial

tolls-paying traffic, this was more than offset by the increase in vessels

transiting free of tolls. Because of changes in the types of vessels

transiting the Canal, it is difficult to make a precise comparison

between the over-all volume of traffic (tolls-paying and free) passing

through last year as compared to the preceding years. All factors

considered, total traffic in fiscal year 1944 was some 25 percent greater

than in the preceding year.Harbor Activities

The table following shows the number of vessels handled at docks

of the terminal ports of Cristobal and Balboa for the fiscal year 1944

as compared with the two previous years
38 REPORT OF GOVERNOR OF THE PANAMA CANAL

Aids to Navigation

On June 30, 1944, there were 767 aids to navigation in service in

the Panama Canal and its approaches, maintained by the hghthouse

subdivision, and classified as follows: Acetylene gas, 110; electric, 343;

unlighted, 314. Included in the foregoing are 2 automatic acetylene

gas operated lighthouses at Morro Puercos and Jicarita Island on

the coast of Panama in the Pacific approach, maintained in the inter- ests of the United States Coast Guard. One visit was made to these

aids during the year by the U. S. S. Favorite, for the purpose of in- specting equipment and servicing the aids.

Accidents to Shipping

The board of local inspectors investigated and reported on 37 accidents in connection with shipping in Canal Zone waters during the

fiscal year 1944, a summary of which follows with a comparison of

accidents in the two previous years:

Cause of accident

Fiscal year

1944

Collision Ship struck lock wall... Ship struck dock

Ship grounded

Ship damaged by tug... Ship struck Canal bank

Other causes.. Total

12

35 28

The only investigation involving the loss of life was that of the

dredging division's tug Chagres which was destroyed by a mine on August 3, 1943, in the Pacific entrance. The master and seven of

the crew were lost. Inspections

Complete inspections were made of the hulls, power plant, and

equipment of 1 1 American and 13 foreign vessels and certificates of

seaworthiness issued. Fifty hulls of commercial vessels and of Canal

and railroad plant were inspected in dry dock. Seventy-three steam

boilers were given annual inspections and hydrostatic tests. Annual

inspections were made and certificates of inspection issued to 268

motorboats.

Admeasurement

During the year the principal features of interest in admeasurement

work continued to be the preponderance of newly constructed sliips

Liberty and other types—arriving for initial measurement; peak

loads in measurement work due to vessels arriving in large convoys;
REPORT OF GOVERNOR OF THE PANAMA CANAL 39

and a large number of vessels requiring corrections in Panama Canal

tonnage certificates already issued, due to structural alterations

occasioned by gun crew accommodations and magazine installations

incident to the war. Salvage and Towing

The U. S. S. Favorite was engaged in salvage and towing operations

during the year, as follows: From September 1 to 7, 1943, in assisting

the S. S. Brisbane Star which ran aground at Mamei Curve in Gatun

Lake; from December 14 to 31, 1943, and from January 3 to 22,

1944, in assisting the S. S. Herma Gorthon which ran aground at Rocas

Negrilla on the west coast of Colombia; and from May 6 to 13, 1944,

in towing a derrick barge and scow to Cartagena, Colombia. The

U. S. Gorgona was engaged in similar operations, as follows: From

July 1 to 12, 1943, in towing a barge from Balboa to Puntarenas,

Costa Rica, for the Pan American Highway; from August 21 to 25,

1943, and from August 27 to September 2, 1943, in towing barges

from Balboa to Golfito, Costa Rica; from December 1 to 2, 1943, in an unsuccessful attempt to pull the small tug Betty off Chame Point,

Republic of Panama, where it had run aground. The U. S. Tavernilla was engaged in towing and salvage operations, as follows: On July

10, 1943, in assisting the S. S. Cape Gaspe from the San Bias region to Cristobal; from July 27 to 31, 1943, in towing Panama Railroad barge

No. 206 from Quita Suena Bank to Cristobal. The U. S. Tavernilla,

together with the U. S. Alhajuela, was engaged on December 19 and

20, 1943, in an attempt to salvage the S. S. James Withycomhe which

had grounded off Fort Randolph, C. Z. The U. S. Alhajuela was

engaged on September 10 and 11, 1943, in assisting to Cristobal the

tug White Shoals which had become disabled.

Operation of Tugs

Because of the great increase in activity at peak periods, four tugs were added to the fleet available for assisting vessels at the Canal

terminals and where necessary through the Canal. At the end of the

year there were three large tugs and one small tug in service at each

terminal of the Canal. The following statistics summarize the ser- vices of tugs used in marine activities (as distinct from dredging)

during the past three fiscal years
40 REPORT OF GOVERNOR OF THE PANAMA CANAL

The above table does not fully reflect the increased demand for tug service at Balboa, since it does not include the statistics for tugs

which were regularly borrowed from dredging service to assist vessels

during peak periods.

Maintenance of Channel—Other Dredging Activities

Dredges worked throughout the year on the maintenance of the

Canal channel and terminal harbors from deep water of the Atlantic

entrance to deep water in the Pacific, as well as on various special

maintenance projects. For the preceding 3 years most of the dredging plant of The Panama Canal had been engaged on various construction and special maintenance projects incident to the war effort and

a minimum of maintenance dredging had been done in the Canal

prism. During the past fiscal year the dredging plant was enabled to perform a normal amount of maintenance work on the Canal prism

in addition to a substantial amount of excavation on the Third Locks

project.

Excavation during the past year is summarized in the following

table

[Cubic yards]

Location Earth Rock Total

CANAL PRISM DREDGING

Atlantic entrance, maintenance.

Gaillard Cut: Maintenance—regular Maintenance—slides Project No. 13 Pacific entrance: Maintenance

Project No. 1 Total Canal prism..

1,402,900

118,800 55,200

379, 800

2, 425, 700

116,300

33, 400

954, 500

1, 519, 200 118,800 88,600

1,334,300

2, 425, 700 2,000

4, 382, 400 5, 488, 600 AUXILIARY DREDGING

Cristobal Harbor: Maintenance Navy dock facilities Marine Railways Dock No. 15extension Balboa Harbor: Maintenance Dry Docks Nos. 2 and 3 Refloating grounded ship, Gatun Lake

Miraflores Lake anchorage Outer anchorage Naos Island dock approach

Subtotal Ghagres River gravel service

403, 000

6,500

174,600

11,400 509,500 6,900

20, 000

11,200 531,800

103, 100

121, 500

5,100

19,900

37, 100 21,600

56, 400

403, 000

128, 000

174,600

16, 500

529, 400

44, 000

41,600

11,200 588,200

103, 100 1,778,000 264,900

2, 039, 600

264, 900 Total auxiliary. 2, 042, 900 261,600 2, 304, 500 THIRD LOCKS DREDGING New channels: New Gatun locks, north approach New Miraflores locks: North approach South approach

Total bypass channels

2, 873, 700

194,200 1,927,900

215, :^oo 448, 300

3,271,100

409, 500

2, 376, 200

4, 995, 800 6, 056, 800 Grand total: Fiscal year U)44. Fiscal year 1943

11,421, 100

9, 339, 400

2, 428, 800

1,149, .WO

1 13,849,900

1 10, 488, 900

' In addition, 88,580 cubic yards of Cham6 sand were produced in fiscal year 1944 and 191,320 cubic yards

in 1943.
REPORT OF GOVERNOR OF THE PANAMA CANAL 41

Dredging operations arc divided into three major districts; the

Atlantic district from contour 42' below mean sea level in the Atlantic

Ocean to Gatun locks; the Central district from Gatun locks to Pedro

Miguel locks; and the Pacific district from Pedro Miguel locks to contour 50' below mean sea level in. the Pacific Ocean. The total excavation in these three areas, exclusive of Third Locks excavation,

is summarized as follows:

[Cubic yards]
42 REPORT OF GOVERNOR OF THE PANAMA CANAL

Cascadas worked four days excavating 17,000 cubic yards of material.

Total excavation to date on this project is 4,790,900 cubic yards and

at the end of the fiscal year 1944 it was 61 percent complete.

Pacific district. —The pipe-line suction dredge Las Cruces worked for 128 days during the past year on maintenance dredging in the Pacific

entrance section of the Canal channel and removed 2,425,700 cubic

yards of material.

Auxiliary Dredging—Other Projects

Cristobal Inner Harbor.—The pipe-line suction dredge Mindi worked

on maintenance dredging in the Cristobal Inner Harbor for 25 days

during the past year excavating 403,000 cubic yards of material.

Navy dock facilities, Cristobal Inner Harbor.—The drill boat Thor was engaged in subaqueous mining for 64 days on this project and

broke 95,500 cubic yards of rock. The pipe-line suction dredge Mindi

worked 18 days on this project removing 128,000 cubic yards of material, most of which was mined rock.

Marine railways, Cristobal Inner Harbor.—The suction dredge

Mindi worked for 19 days excavating 174,600 cubic yards of earth at the site for the marine railways built at the Cristobal shops.

Dock No. 15 extension, Cristobal Inner Harbor.—The dipper dredge

Paraiso worked 4 days and removed 16,500 cubic yards of material on this project.

Balboa Harbor maintenance.—The suction dredge Las Cruces

worked 35 days on maintenance in Balboa Harbor removing 523,500

cubic yards of material, practically all of which was earth. The

dipper dredge Cascadas worked 5 days in this area and removed 5,900

cubic yards of material.

Dry docks Nos. 2 and 3, Balboa Harbor.—The dipper dredge Cascadas

worked 15 days excavating 44,000 cubic yards of material for the two

new dry docks completed during the past fiscal year.

Refloating grounded ship—Gatun Lake.—The dipper dredge Gamboa

worked for 5^ days at a dump in Gatun Lake excavating 41,600 cubic

yards of material in order to refloat a grounded ship.

Miraflores Lake anchorage.—The dipper dredge Paraiso worked 2}^

days excavating 11,200 cubic yards of material for a tie-up station in

Miraflores Lake.

Outer anchorage. Pacific entrance.—The dfill boat Vulcan was

engaged in subaqueous mining for 42 days during the past year on

this project and broke 56,400 cubic yards of rock. The suction dredge

Las Cruces worked 40 days on this project and excavated 531,800

cubic yards of earth. The dipper dredge Paraiso worked 10 days on

this project removing 56,400 cubic yards of mined rock.
REPORT OF GOVERNOR OF THE PANAMA CANAL 43

Naos Island dock approach.—The suction dredge Las Cruces worked

7 days excavating 103,100 cubic yards of material in the approach to

this dock.

Third Locks Dredging

The Panama Canal's dredging division is charged with the perform- ance of practically all of the wet excavation in connection with the

construction of the Third Locks project. During the past year the

following construction dredging was performed in various bypass

c'hamiels for this project:

New Gatun locks, North Approach Channel. —Shore mining with

rotary drills was in progress for 70 days in this area during which

time 75,300 cubic yards of rock were broken. The drill boat Thor was engaged in subaqueous mining for 79 days and broke 102,500

cubic yards of rock. The pipe-line suction dredge Mindi worked for

140 days during the past year on construction in this bypass channel

during which time it excavated a total of 3,271,100 cubic yards of

material, most of which was earth. Total construction excavation

to date on this project is 7,701,700 cubic yards and at the end of the

year it was 92.8 percent complete.

New Miraflores locks, North Approach Channel.—Shore mining was

in progress for 31 days in this area, during which time 12,600 cubic

yards of rock were broken. The dipper dredge Gamhoa worked 35

days removing 176,000 cubic yards of material and the dipper dredge

Paraiso worked 50 days removing 233,500 cubic yards of material on

this project. Total construction excavation to date on this project

is 2,214,300 cubic yards and it was 59.8 percent complete at the end

of the year. New Miraflores locks. South Approach Channel.—Shore mining with

rotary drills was in progress for 156 days during the past year, during

which time 20,600 cubic yards of rock were broken. Subaqueous

mining was carried out by the drill boats Thor and Vulcan and by

rotary drill: The drill boat Thor worked 116 days and broke 73,700

cubic yards of rock; the drill boat Vulcan worked 241 days and broke

134,500 cubic yards of rock, while an additional 15,200 cubic yards

of rock were broken by rotary drill mounted on pontoons and barges.

The dipper dredge Cascadas worked 244 days in this bypass channel,

removing 821,500 cubic yards of material. The dipper dredge Paraiso

worked 86 days in this area, removing 361,000 cubic yards of material,

and the suction dredge Las Cruces worked 90 days, removing 1,193,700

cubic yards of material. At the end of the fiscal year excavation on

this project totaled 5,617,600 cubic yards and it was 45.5 percent

complete.
44 REPORT OF GOVERNOR OF THE PANAMA CANAL

Slides

Excavation from slides in Gaillard Cut from June 30, 1913, to the

beginning of the current fiscal year totaled 51,738,600 cubic yards.

During the past year 88,600 cubic yards were excavated from this area, bringing the total excavation from slides to 51,827,200 cubic

yards as of June 30, 1944. Slide activity throughout the cut was

generally much less than in previous years, being even less than in

fiscal year 1943. Culebra slide (west) continued to be the most

active of all slides. Small movements were observed in seven slide areas during the past year, including small distinct breaks in Lirio

slide (west). Barge Repair slide (east), and Miraflores slide (Cocoli

Hill). Only at Barge Repair slide (east) did any slide material

actually enter the Canal prism. Numerous bank breaks occurred,

but these were all limited to small movements of no consequence.

Daring the past year the dipper dredge Oamhoa worked 14 days in Culebra slide (west) removing 73,600 cubic yards of material. The

dipper dredge Gamhoa worked \% days at Barge Repair slide (east)

removing 15,000 cubic yards of material.

Subsidiary Dredging Division Activities

Sand and Gravel

During the past fiscal year 225,514 cubic yards of sand and gravel

of all classes (both run-of-bank and washed) were shipped from the

gravel stock pile at Gamboa, as compared with 545,591 cubic yards

shipped in the previous fiscal year. The suction dredge Las Cruces,

assisted by relay barge No. 24, worked 42 days producing 264,900

cubic yards of run-of-bank gravel which were pumped into the stock

pile at Gamboa.

The craneboat Atlas was in service for 64 days excavating 88,580

cubic yards of sand at Chame Point, Republic of Panama. This sand was pumped into barges and delivered to the docks at Balboa.

Hyacinth Control and Other Activities

The Canal and adjacent waters through Gaillard Cut, Miraflores

Lake, and Gatun Lake (including all dump areas) were patrolled and

the growth of hyacinths kept under control. Log booms at the mouth

of the Chagres and Mandinga Rivers were maintained to prevent

hyacinths, logs, floating islands, and other obstructions from entering

the Canal channel during freshets, or spilling at Madden Dam.

During the year periodical inspection trips were made in the Chagres,

Mandinga, Frijoles, and Azules Rivers and along the shores of Barro

Colorado Island, Pena Blanca and Gigante Bays, excavation dumps

and Miraflores. Pedro Miguel, and Red Tank Lakes. Weekly inspec-
REPORT OF GOVERNOR OF THE PANAMA CANAL 45

tion trips were also made ot the Canal channel between Gamboa and

Gatun.

It is estimated that 37,044,000 hyacinth plants were destroyed

during the past year of which 20,961,000 were pulled and 16,083,000 were sprayed; of the plants pulled 6,140,000 were removed by the

debris cableway. Ninety-nine cords of driftwood were removed by

the debris cableway during the past year and an additional estimated

664 cords of driftwood were picked up along the banks of the Chagres,

Mandinga, Chilibre, and Cocoli Kivers, Gaillard Cut, and Gatun,

Mirafiores, Pedro Miguel, and Ked Tank Lakes.

Equipment

The more important items of dredging equipment or plant were

operated during the past year as shown in the following tabulation:
46 REPORT 01 GOVERNOR OF THE PANAMA CANAL

ment. The following changes in the tug fleet occurred during the

year: Two large tugs, the San Pablo and the Culebra, built under

contract in the United States, were received and placed in service;

the large tug Chagres struck a mine and sank in the Pacific entrance

the large tug Empire and the small tug Miraflores were temporarily

transferred from dredging to marine activities ; and one small tug, the

Cocoli, was sold. At the end of the year nine large and three small

tugs were engaged in or available for dredging service.

Ferry Service

Thatcher Ferry service was continuous throughout the past year

except for 4}^ days during the month of July 1943 when it was sus- pended because of repairs to the ferry ramps and racking. This ferry

crosses the Canal at the Pacific terminal and connects Balboa on the

east bank with Thatcher highway on the west bank. Service was

maintained by rotating the three ferry boats, Presidente Amador,

President Roosevelt, and Presidente Porras, keeping two of these ferries in continuous service.

Since the opening of the new bridge across the Canal at Miraflores

in May 1942 the ferry traffic has become fairly well stabilized. In

the following table are shown the more important statistics relative

to operations of the Thatcher Ferry for the past three fiscal years:

Single trips made

Vehicles carried: Panama Canal vehicles U. S. Army vehicles Commercial trucks. Commercial passenger cars Private cars Total vehicles carried Total passengers carried.

Fiscal year

1944

54, 639

32, 681 163,723 91,148

92, 723 216,991

597, 266 3,211,690

1943

41, 158

23, 118 122,780

101,795

63, 991

167, 659

479, 343

3, 208, 626

1942

61, 218

33,617

148,210

206, 184

137, 366

466, 821

992, 198

5, 943, 845

Third Locks Project

Authorization

The Third Locks project, providing for the improvement and enlarge

ment of the capacity of the Panama Canal in the interest of defense

and inter-oceanic commerce at a cost not to exceed $277,000,000 was

authorized by act of Congress, Public No. 391, Seventy-sixth Congress,

first session, approved August 11, 1939. The project involves the

design and construction of a new set of locks at some distance from

the existing locks, the excavation of approach channels to connect
REPORT OF GOVERNOR OF THE PANAMA CANAL 47

the new locks with the existing Canal, and the desigr and construction

of appurtenant works.

General Progham

Excavation work on the Third Locks project was started by the

dredging plant of The Panama Canal on July 1, 1940. The entire

program was prosecuted vigorously from that date until May 1942.

On May 25, 1942, the Governor, pursuant to a directive of the Secre- tary of War, issued instructions that construction of the third locks

project be modified in order to bring this project into closer conformity

with the over-all war program.

Under the modified program, dredging in the approach channels was continued but on a lower priority basis. Contracts for excavation

of the New Gatuji and Mu'aflores locks sites were carried to completion. Other features carried to completion were the designs and

specifications, construction of the bridge over existing Miraflores

locks, the relocation of various utilities and construction of emergency

electric power plants.

Among the more important items suspended under the modified

program were the contracts for construction of the locks structures,

furnishing cement and for processing aggregate for the locks structures, the excavation for the Pedro Miguel lock, fabrication of lock

gates, and purchase of equipment for operation of the locks. There had been appropriated for fiscal years 1941, 1942, and 1943

a total of $106,758,800 for the Thhd Locks project. Due to the

modification of the construction program in May 1942 the funds

which had been appropriated were more than sufficient to cany on

the curtailed program through fiscal year 1945. Accordingly, the

War Department Civil Functions Act approved June 26, 1944, re- turned $30,257,572 to the Treasury.

Designs—Plans—Specifications

During the past fiscal year designs were completed and contract

plans prepared for vktually all mechanical and electrical equipment

for the locks. Fmal revision was made of the contract drawings and

maps for locks construction to bring them into conformity with work

performed and with the detailed development of meclianical and

electrical equipment. A great deal of the work of rolocatmg highways, railroads, and transmission lines was completed. Specifications were prepared for numerous features of the lock operating machmery,

equipment, and facilities. A comprehensive report was prepared on

all phases of the design of the Third Locks project for convenient refer- ence when operations are resumed. Engineering studies of foundations and other features were contmued on a limited scale. Labora-
48 REPORT OF GOVERNOR OF THE PANAMA CANAL

tories and other facilities rendered specialized services to other governmental agencies in addition to continuing essential Third Locks work.

Construction

The major construction work accomplished during the past year on

the Third Locks project was the dredging performed in the approach

channels, completion of the excavation contracts, and construction

of the emergency power plants.

A total of 6,056,800 cubic yards was excavated from the Gatun

north and the Miraflores north and south approach channels. Further

details of the dredging work on the Third Locks project are given on page 43 of this report. Final payment was made during the past year

for contract excavation of both the Gatun and Miraflores locks sites. The emergency power plant at (Gatun was completed and turned

over to the electrical division of The Panama Canal for operation and

maintenance eft'ective July 1, 1944. The emergency power plant at Cocoli on the Pacific side was practically complete at the end of the

fiscal year. Owing to the modification of the Third Locks project, it had been

necessary to adjust and cancel portions of various contracts. These

adjustments resulted in the Government's taking over considerable

amounts of plant, equipment and material. During the year practically all of this plant, equipment and material, was disposed of

by sale, mostly to other units of the United States Government.

Among the more important items uncompleted at the end of the

fiscal year were the relocation of the 44-kilowatt power transmission

line at Gatun and, as stated above, the emergency power plant at

Cocoli.

Advice was received that the War Department considered Panama

Canal contracts subject to renegotiation. Delegation to the Governor

of authority to renegotiate Third Locks contracts has been requested.

Personnel

The force working on the project was reduced from 367 at the start of the fiscal year to 88 at the end of the fiscal year. Four consulting

engineers were employed on a contract basis to advise on a special

foundation problem.
SECTION II BUSINESS OPERATIONS

The business enterprises operated b}' The Panama Canal and by the

Panama Railroad Co. embrace a number of activities which in the

United States would normally be carried on by private initiative. They have been developed to meet the needs of shipping passing

through the Canal and of the Canal-Railroad organization and its employees. During the past year, as in the 3 years preceding, these

acti-vities have also served very important needs of the Army and

Navy, and have been expanded and adjusted to meet the requirements of the war effort. The business enterprises include the supply

of fuel, provisions, ship chandlery, and repairs to vessels; the provision

of public utility services; the maintenance of living quarters and the

sale of food, clothing, and other essentials to Canal and Railroad

employees; the handling of cargo and allied operations; and the operation and management of a railroad line. A steamship line between

New York and the Isthmus also was operated prior to the outbreak

of war, but since the steamers of the line wer.e requisitioned for direct

employment in the war effort, this function was inactive during 1944.

The Canal and the Railroad are separate organizations, but the

administration of both organizations is vested m the Governor of The

Panama Canal, who is also president of the Panama Raihoad Co.

PANAMA CANAL BUSINESS OPERATIONS

Business operations of The Panama Canal are conducted separately

from operating activities pertaining directly to the transiting of

vessels and the government of the Canal Zone. The annual appropriation acts for The Panama Canal authorize the expenditure and

reinvestment of all moneys received from the conduct of auxiliary

business activities, with the proviso that any net profit derived from

such business activities shall be covered annually into the Treasury

of the United States.

It is the aim to operate the business activities as a whole on a

self-supporting basis and, in general, to include as a charge against

their operations a fixed capital charge of 3 percent as interest on the

investment. The amount representing charges for interest on investment is a part of the net profits covered into the Treasury and is in effect a reimbursement to the United States for interest paid by it to holders of United States bonds. The investment in business

49
50 REPORT OF GOVERNOR OF THE PANAMA CANAL

activities totaled $46,448,530.57 at the beginning and $46,950,569.31

at the end of the fiscal year (tables 4 and 5, sec. V). The capita:!

charge for the fiscal year 1944 was $1,069,606.10 (table 20, sec. V). The net revenues of $1,553,294.06 exceeded this amount bv

$483,687.96.

Mechanical and Mabine Work

During the past fiscal year the mechanical and marine work per- formed by the mechanical division continued at a high level, the

total volume for fiscal year 1944 actually being somewhat greater

than in the preceding year, thereby establishing a new high for volume

of business. As was the case in fiscal year 1943, charges on work

performed for the United States Navy are not directly comparable

with those of earlier years or with charges to other interests, because

the Navy has continued the practice started in 1943 of supplying

practically all material used for naval work.

There was a further increase of approximately 12 percent in work

for the Navy, and an increase of 65 percent in work accomplished foi- the Army. Work performed for divisions of The Panama Canal

decreased by 25 percent as compared with the preceding year. In

normal times The Panama Canal organization supplies the bulk of the

work load which keeps the mechanical division functioning with

complete ship repair facilities, but during the past year The Panama

Caiiars proportion was reduced to only about one-fifth of the total work load.

The following table shows the classes and sources of work performed

during the past two fiscal years:

Gross revenues—Class and source
REPORT OF GOVERNOR OF THE PANAMA CANAL

Drydocks

51

During the past fiscal year two new small drydoeks were placed in

operation at Balboa and two marine railways were placed in operation

at Cristobal. Drydoeks Nos. 2 and 3 at Balboa began docking operations in March 1944. Marine Railway No. 2 at Cristobal began docking operations in March 1944, and Marine Railway No. 1 at Cristobal was first used in May 1944. These new facilities are in addition to

tlie large (l,044-f()ot) drydock at Balboa and the medium (385-foot)

drydock at Cristobal.

The following table summarizes drytlocking operations at all drydocks and marine railways during fiscal year 1944, with comparative

figures for the two preceding years, in which only the two main

drydoeks were in opei'ation:

Number of vessels drydocked
52 REPORT OF GOVERNOR OF THE PANAMA CANAL

Operations

The work load of the mechanical division, like that of ship repau

yards in general is highly erratic. Because the general irregularity of

local traffic has accentuated the problem of meeting peak demands,

it has been necessary to establish and to enforce strictly a priority

schedule for each type of work undertaken. As in 1943, it has been

necessary to refuse certain classes of work, which would have tied

up the large drydock for long periods of time and thus made it unavailable for the emergency docking of vessels of higher priority.

In each case sufficient repaii's were made to allow the affected vessel to proceed safely to some continental repair yard for the accomplishment of permanent repairs.

To assist in maintaining a reasonably steady work load, the Navy

Department has assigned to the marine repair shops of The Panama

Canal, the construction and outfitting of three floating workshops.

Two of these vessels are to be constructed at Balboa and the third

will be assembled at Cristobal from material fabricated at Balboa.

Keels of all three of these vessels had been laid by the end of fiscal year 1944, and they will be completed some time during the fiscal year 1945.

A salvage depot, including a diving school had been organized as a unit of the mechanical division of the Panama Canal during the

preceding fiscal year. This was placed in full commission on August 2, 1943. During the past year 27 employees of The Panama Canal and 9

enlisted men of the Navy were trained as divers and tenders. Various

minor salvage jobs were completed during the past year using the

personnel and facilities of the new salvage depot.

Electrical Repair Work

The principal activities of the electrical division are: The operation

and maintenance of the power system; the operation and maintenance

of telephone, telegraph, electric clock, fire alarm, printing telegraph,

and railway signal systems; the operation and maintenance of the

street-lighting system; and the installation and maintenance of electrical equipment as required by The Panama Canal and other government agencies, or by vessels undergoing repairs at the Canal terminals. Following is a comparision of the three principal classes of

expenditures of the electrical division for the past three fiscal years:
REPORT OF GOVERNOR OF THE PANAMA CANAL 53

Further information concerning the principal construction projects

undertaken and the operation of the power system are given on page

32 of this report, under the general heading of Canal Operation, while

operating statistics of the telephone system are covered on page 61

under the operations of the Panama Kailroad Co. The expenditures

shown above include interdepartmental transactions. As an example,

maintenance and repairs on the power system are performed by the

electric work unit and the cost of this work is therefore included in

the expenses of both the power system and the electric work units.

There has been a decided decline in the electrical construction and

maintenance work during the past year. This decline may be attri- buted entirely to the completion of many construction and improvement projects on the Canal Zone. During the past year, however,

there has been a sharp increase in the amount of electrical repair work

performed for naval and other ocean-going ships.

Purchase and Inspections in the United States

The principal purchases of supplies for The Panama Canal were made, as heretofore, through the Washmgton Office of The Panama

Canal; the volume of the purchases is indicated by the following table:

Number of purchase orders placed Value of orders placed Number of disbursement vouchers prepared. Value of above vouchers _ Number of collection vouchers prepared Value of above vouchers Cash discounts taken

Fiscal year

1944

8,931

$5, 418, 842

20, 884 $11,352,061

708

$2, 206, 937

$40, 757

1943

13, 373

$13, 265, 404

28,703

$30, 948, 054

484

$3, 822, 004

$90, 566

1942

17, 225

$30, 755, 628

25, 358 $35,011,069

415 $1,370,014

$154, 859 Storehouses and Ships Chandlery

In addition to the main function of requisitioning, storing, and

issuing general supplies for the Canal and Railroad (exclusive of the

merchandising operations of the commissary division) the Panama

Canal storehouses sell ships' chandlery and other supplies to commercial shipping as well as to units of the United States Army and Navy.

The following figures show the material and supplies cleared through

the stores accounts during the past 3 years:

General storehouses
54 REPORT OF GOVERNOR OF THE PANAMA CANAL

Obsolete and Unserviceable Property and Equipment

During the year disposition was made by sale, or by destruction

where the items had no money value, of obsolete or unserviceable

property and equipment which had an original value of $676,259.

Replacements were made as necessary.

Bulk Petroleum Products

All deliveries of fuel oil, Diesel oil, gasoline and kerosene to and

from storage tanks, for private companies and for The Panama Canal,

and some deliveries for the United States Navy, are made through pipe

lines and pumping plants of The Panama Canal. The following table

summarizes the operation of the oil handling plants for the past

3 years:
REPORT OK GOVERNOR OF THE PANAMA CANAL 55

plant, mechanical division; alterations and extension to Ancon theatre

and old chi])house; howling alley huilding; internes' quarters, Gorgas

Hospital; truck and (h'um filling station; additional sheds for motor

transportation (Hvision; luhrlcant stoichoiise; nud theatre, La Boca.

Cristobal. —Shoe iuid tailor shop for clubhouse; silver theater;

splinterproofing of oil storage tanks; dispensary and pharmacy building, ward and cafeteiia building and admitting office, Colon Hospital;

alterations and extension to filter building; electrical division field

office; silver bleachers at Mount Hope stadium; cafeteria, mechanical

division; and foundations and cooling tower, emergency power plant,

Agua Clara.

Pedro Miguel. —Locks storehouse, Paraiso.

Gatun.—Salvage depot; gold clubhouse and theater; two switching

stations; and silver theater.

Corozal.—Eighty- pat lent ward building, office building, and boiler

plant for Corozal Hospital ; and various buildings for q uarantine station.

Cocoli.—Emergency power plant; dismantling and crating construction equipment; and garage for official equipment.

Summit.—Electrical division storehouse.

Diablo Heights, Gamboa, Margarita.—No new buildings.

In addition to the principal projects listed above, which were completed during the year for The Panama Canal and the Panama Kailroad Co., several large projects were completed for the United States

Army and Navy,

Expenditures in connection with the construction and maintenance

of buildings declined about $3,000,000 as compared with the preceding

year. The cost of maintenance and repair work performed during the

past year aggregated $1,183,585, of which $525,297 w^as expended on

maintenance of quarters occupied by gold employees and $183,484 on

maintenance of quarters occupied by silver employees; the balance of

$474,804 was spent on all other maintenance work performed by the

building division.

The total volume of construction and maintenance work for the

past 3 years is summarized below:
56 report of governor of the panama canal

Quarters for Employees

Gold employees.—No new quarters for gold employees were constructed during 1944 and the early bi ilding of additional gold quarters

is not contemplated at this time. The demand for gold quarters has

decreased considerably in the past 2 years because of a reduction in

the number of employees due to the cessation of work on the Third

Locks and the completion of major items of other construction work.

Employees who had not established residence on the Canal Zone for

their families prior to December 7, 1941, are now permitted to bring

their families to the Isthmus.

On June 30, 1943, there were on file in all districts a total of 316

applications for original assignment to family quarters from regular

employees, and on June 30, 1944, there were 283, a decrease of 33 from

the previous year.

It is intended to continue the replacement of old quarters, although

additional construction will be suspended until such time as materials

become more readily obtainable than at present. The old quarters

constructed prior to 1909 show increased deterioration each year, which necessitates mcreased maintenance expense. Several con- demned quarters, the maintenance of which is borne by the occupants,

are still m use. No changes were made in the general regulations governing assignment and rental of quarters to American employees.

Silver quarters.—The operation of silver quarters was continued on

the same basis as in previous years. There were no new silver quarters

constructed during 1944 and, while new construction is contemplated, none has yet been scheduled for the coming year with the exception of

alterations to the buildings at Camp Paraiso, which was transferred by

the United States Army to The Panama Canal on June 1, 1944. After

the completion of these alterations, quarters will be available at that

location for 245 famihes and 120 bachelors.

Repairs were made and plumbing installed in 24 old silver family

quarters, comprising 27 apartments, at Camp Bierd, and the apartments were made available for regular assignment at increased rental

rates. At Gatun one miscellaneous-type quarters building for silver bachelors was converted for occupancy by 24 silver famihes. At

Camp Gatun and Cocoli, the labor barracks were closed due to the completion of construction projects and the consequent repatriation of all Jamaican and the majority of the Latin American contract laborers.

The demand for quarters from silver employees is stiU far in excess

of suppl3^ As of June 30, 1944, there were 2,758 apphcations on file for family quarters and 1,467 apphcations for bachelor quarters, a

total of 4,225, as compared with 3,585 apphcations on file June 30,

1943.
REPORT OF GOVERNOR OF THE PANAMA CANAL 57

Motor Transportation

The motor transportation division is charged with the operation and

maintenance of motor transportation for the departments and divisions of The Panama Canal and Panama Railroad Co. The centralization of transportation facilities in this division and the requirement

that it be operated on a self sustaining basis have been primarily for

the purpose of supplying needed transportation at minimum cost to The Panama Canal and Panama Railroad Co. Repair work is also performed for employees and for contractors engaged in work for the

Government in the Canal Zone. A large amount of heavy hauling in

connection with various building and highway construction projects was accomplished during the year. The public transportation system of privately owned busses under

the supervision and control of the motor transportation division, which was necessitated by gasoline and tire rationing and the resultant

curtailment in the operation of privately owned vehicles, continued to carry employees and their famihes in and between the various towns

in the Canal Zone; 141 busses were operating in this service as of

June 30, 1944.

Revenues of the division during the past year, including motorcar

repair shop activities, totaled $3,008,356 and the expenses $2,951,276,

which left a net revenue of $57,080.

In the fiscal year 1944, 13 cars and trucks, 6 trailers and 2 motorcycles were purchased, and 76 cars and trucks and 2 trailers were

retired. At the close of the fiscal year, 966 cars and trucks, 32 trailers and 8 motorcycles were on hand.

Panama Canal Press

The operations of the Panama Canal Press were continued under

the same poUcies as heretofore. The printing plant carries stocks of

materials, and prints such forms, stationery, etc., as are required on

the Isthmus in connection with the operation of The Panama Canal

and the Panama Railroad Co. This unit also performed some work for

the United States Army during 1944, including the printing of Yank,

the Army weekly newspaper.

The following is a summary of the financial operations of this

plant during the past 2 years
58 REPORT OF GOVERNOR OF THE PANAMA CANAL

f Subsistence

The subsistence section, which was set up on May 1, 1941, to provide meals for contract laborers brought to the Isthmus in con- nection with the large construction program, continued under the same policies as in the previous year. Operations were on a reduced

scale, however, because of the repatriation of the majority of the contract laborers and the residtant discontinuance of the Cocoli and

Gatun messes. The La Boco, Gamboa, and Camp Bierd messes are

still in operation.

In the fiscal year 1944, a total of 6,811,458 meals or 2,270,486

rations were served by this unit, a decrease of 28 percent from the

3,168,992 rations served in the previous year. The decrease that

took place during the past year was actually much greater than is indicated by the decline in total rations for the year; by the end of the

year the number of meals being served was only about one-third of

the number served in the first 6 months. The ration cost was $0,400

in the fiscal year 1944 as compared with $0,416 in the fiscal year 1943.

Revenues Derived From the Rental of Lands in the Canal Zone

Rentals for building sites and oil tank sites in the Canal Zone totaled

$32,165 for the year as compared with revenues of $32,517 for the

fiscal year 1943. Rentals from agricultural land in the Canal Zone

totaled $7,564 as compared with $8,207 for the preceding year. At

the close of the fiscal year 756 licenses were in effect, covering 1,490

hectares of agricultural land within the Canal Zone. This is a reduction of 35 in the number of licenses as compared with the previous

fiscal year and a reduction in the area held under licenses of 67 hectares. This reduction is largely the result of the policy adopted as a health measure in May 1935, that no more licenses for agricultural

land be issued and that holdings under licenses previously granted

shall not be sold or transferred.

BUSINESS OPERATIONS UNDER THE PANAMA RAILROAD

COMPANY

The Panama Railroad Co. was incorporated in 1849 under the

laws of the State of New York for the purpose of constructing and

operating a railroad across the Isthmus. When the concession,

rights, and property of the New French Canal Co. were purchased

hi 1904, the stock of the Panama Railroad Co. became the property
REPORT OF GOVERNOR OF THE PANAMA CANAL 59

of the United States Government, Since the acquisition of the rail- road by tlie United States, its corporate status lias been preserved

and the railroad has continued to function as a common carrier. At the beginning of Canal construction work, by Executive order

of the President of the United States, the Panama Railroad Co. was made an adjunct to The Panama Canal. Its operations are supervised by a board of directors functioning under the direction of the

Secretary of War. As the operations of the railroad complement

those of the Canal, the policy has been for the board of directors to

elect the Governor of The Panama Canal as president of the Panama

Railroad Co. Thus, the Governor of The Panama Canal is the administrative head of the Panama Railroad Co. This practice has insured

complete coordination of the activities conducted by the two or- ganizations.

As the activities of the railroad company are covered in detail in

its annual report, only the major features of operation as they relate

to Canal administration are covered in this section.

In addition to the operation of the trans-istluuian railroad, the

business enterprises conducted by the Panama Railroad Co. include

the following: The loading, unloading, storage, and transfer of cargo

for shipping interests at the terminal ports; the operation of wholesale warehouses, retail stores, and subsidiary manufacturing plants

engaged in the supply of food, clothing, and other essential commodities to governmental agencies and to employees and their families;

and the operation of coaling plants, hotels, a dairy, and a laundry.

Prior to the outbreak of war the company also operated a steamship

line between New York and the Isthmus, but as the vessels of this

line have been requisitioned by the Government, this function was

nactive during 1944.

Trans-Isthmian Railroad

The railroad line operates between Colon, the Atlantic terminus,

and Panama City, the Pacific terminus. In addition to those cities,

the railroad serves all nearby activities of The Panama Canal. Gross

revenues from the operations of the railroad proper (not including

subsidiary business activities) during the fiscal year 1944 amounted

to $3,520,081. Revenue freight totaled 829,355 tons, as compared

with 1,312,189 tons during 1943, a decrease of 482,834 tons.
60 REPORT OF GOVERNOR OF THE PANAMA CANAL

Comparative statistics covering the significant features of railroad

operations during the past 3 years are presented in the following

table
report of governor of the panama canal 61

Real-Estate Operations

Real-estate operations of the Panama Railroad Co. are devoted to the management of the property owned by the company in the cities of Colon and Panama and buildings erected by the company in the

Canal Zone. In pursuance to terms of the agreement concluded in

Washington, D, C, in May 1942 between the Governments of the

United States and the Republic of Panama, and of a Joint Resolution

(Public Law No. 48, 78th Cong.), the Panama Railroad Co., on December 16, 1943, transferred to the Republic of Panama certain of

the company's lands in the Republic of Panama, having an appraised

value of $11,759,956.00. On December 15, 1943, there were in effect 1,641 leases to Panama Railroad Co. property in the cities of Colon

and Panama, of which 1,327 were in Colon and 314 in Panama City.

As of June 30, 1944, there were in effect a total of 7 leases and 14

licenses, nominally covering Panama Railroad Co. interests in both

cities. These figures included 7 licenses to lots located in the Panama

Canal quarters section of New Cristobal, formerly carried as Panama

Canal licenses, and 2 licenses to United States Government property

in Panama City, which are administered by the Panama Railroad.

No Panama Railroad Co. land in Colon or Panama City was dis- posed of by sale during the year. Telephone System

The gross revenues from the operation of telephones, electric clocks,

and electric printing telegraph machines were $366,484.

During the year 1,303 telephones were installed and 1,283 were dis- continued or removed, resulting in a net increase of 20 telephones for

the year. At the end of the fiscal year 1944 there were in service

5,502 telephones, as well as 55 electric clocks and 36 automatic printing

telegraph typewriters. Telephone calls handled tlirough the auto- matic exchanges averaged 141,037 calls per day in 1944 and 155,690

per day in 1943 during the sample days tested. This represents an

average of 25.6 calls per telephone per day in 1944, as compared with

28.4 m 1943.

On March 20, 1944, the new 100-pair trans-isthmian telephone

cable was completed and placed in service. This cable was installed

by Panama Canal forces except for the splicing, balancing, and final testing. These latter operations were performed by employees of the

American Telephone & Telegraph Co. who were sent to the Isthmus

for this purpose.

Commissary Division

The primary function of the commissary division of the Panama

Railroad Co. is to supply at reasonable prices food, clothing, and
62 REPORT Oh GOVERNOR OF THE PANAMA CANAL

household supphes to meet the needs of United States Government

personnel and the various United States Government departments on

the Isthmus. In carrying out this function the division operates

wholesale warehouses and cold-storage plants as well as retail stores

in each of the Canal Zone towns. Sales are restricted to agencies and

personnel of the United States Government, except that ice, cold

storage, food, and other essentials may be purchased by commercial

steamships passing through the Canal or calling at its terminal ports.

Sales

Net sales for the year totaled $39,220,427, compared with $46,-

948,042 for the previous fiscal year. The value of merchandise on hand June 30, 1944, was $5,767,525, compared with $6,168,745 at the close of the fiscal year 1943. The ratio of sales to inventory

indicates a theoretical stock turnover approximately every 8 weeks.

The distribution of sales for the past three fiscal years is shown in the following table:
REPORT OF GOVERNOR OF THE PANAMA CANAL 63

Hotels

The hotels Tivoh and Washington were operated by the Panama

Radroad Co. without change of pohcy during the year. These hotels

are an essential adjunct to the Canal, providing necessary accommodations for foreign visitors, American tourists, visiting Government

officials, and others.

The gross revenue from hotels was $957,374, compared with

$843,478 in 1943, and the number of guest days was 101,823, compared with 91,059 in 1943.

MiNDi Dairy

The operation of the Mindi Dairy continued as in previous years. Milk production for the year was 441,910 gallons, compared with

425,077 gallons in the preceding year, an increase of 16,833 gallons.

Fresh milk is furnished to the hospitals and, on doctors' prescriptions,

to persons having preference, such as invalids, infants, and nursing

mothers. The surplus remaining after these needs are met is supplied to employees, units of the Canal and Railroad organizations,

and Army and Navy units stationed on the Isthmus.
SECTION III ADMINISTRATION

DEPARTMENTS

The organization of The Panama Canal on the Isthmus embraces

five principal departments, namely, operation and maintenance,

supply, accounting, executive, and health. In addition, an office of The Panama Canal is maintained in Washington, D, C. The Panama

Railroad Co., a Government-owned corporation conducting business

enterprises on the Isthmus, is a distinct unit, yet it is closely affiliated with the Canal organization.

Operation and Maintenance

The department of operation and maintenance embraces functions

related to the actual use of the Canal as a waterway, including the

dredged channel, locks, dams, aids to navigation, accessory activities

such as shops and drydocks, vessel inspection, electrical an-d water

supply, sewer systems, roads and streets, hydrographic observations,

surveys and estimates, and miscellaneous construction other than

the erection of buildings.

Supply

The supply department is charged with the acquisition, storage, and

distribution of materials and supplies for The Panama Canal and Eailroad; the maintenance and construction of buildings; the assignment

of living quarters to employees and care of grounds; the operation

of storehouses, fuel-oil plants, an experiment garden, and a printing

plant; the supplying of motor transportation facilities to the various

departments and divisions of the Canal and Railroad organizations;

and the operation of messes for silver-roll contract labor.

Accounting

The accounting department is responsible for the correct recording

of financial transactions of the Canal and Railroad; the administrative

auditing of vouchers covering the receipt and disbursement of funds

preliminary to the final audit by the General Accounting Office; cost keeping of the Canal and Railroad; the 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.

64
REPORT OF GOVERNOR OF THE PANAMA CANAL 65

Executive

The executive department embraces the office of the Governor and

all general administrative activities. In this department are included

the administration of police and fire protection, postal service, customs,

shipping-commissioner duties, estates, schools, playgrounds, general

correspondence and records of The Panama Canal and Panama Railroad Co., personnel records and management, wage adjustments,

general information, relations with Panama, and the operation of

clubhouses, restaurants, and moving picture theaters.

Health

The health department has jurisdiction over all matters pertaining

to sanitation and public health within the Canal Zone and the cities of Panama and Colon, the operation of hospitals and dispensaries, and

the enforcement of quarantine regulations.

Panama Railroad Company

The operations of the Panama Railroad Co. on the Isthmus are

related closely to those of The Panama Canal. As the Governor of

The Panama Canal is also president of the Panama Railroad Co., the

heads of all departments, both of the Canal and Railroad organizations, 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 the

business divisions of the Canal organization are billed for their proper

shares of the general overhead expense.

CHANGES IN [ADMINISTRATIVE PERSONNEL

Appointments in official positions during the fiscal year 1944 were

as follows:

Maj. Gen. Joseph C. Mehaffey, United States Army, was appointed

Governor of The Panama Canal on May 16, 1944, vice Maj. Gen.

Glen E. Edgerton, United States Army, relieved from duty with The

Panama Canal.

Col. Francis K. Newcomer, Corps of Engineers, United States

Army, was appointed engineer of maintenance on May 16, 1944, vice

Maj. Gen. Joseph C. Mehaffey, United States Army, appointed

Governor of The Panama Canal.

Brig. Gen. Henry C. Dooling, United States Army, was appointed

chief health officer on March 1, 1944, vice Maj. Gen. Morrison C.

Stayer, United States Army, relieved from duty with The Panama

Canal.
66 REPORT OF GOVERNOR OF THE PANAMA CANAL

Mr. Lew W. Lewis was appointed chief quartermaster, The Panama

Canal and Panama Railroad Co., on July 22, 1943, vice Mr. Roy R.

Watson, deceased.

Col. James G. Steese, Corps of Engineers, United States Army, was

appointed assistant to the Governor on May 16, 1944.

Col. Albert C. Foulk, Air Corps, United States Army, was appointed

chief, aeronautics section, on March 20, 1944, vice Col. Charles

Sonmiers, Air Corps, U^nited States Army, relieved from duty \vith

The Panama Canal.

Col. "William C. Dreibelbies, Medical Corps, United States Army,

was appointed superintendent, Gorgas Hospital, on March 25, 1944,

vice Brig. Gen. Henry C. Dooling, United States Army, appointed

chief health officer. Mr. Lewis B. Moore was appointed first assistant chief quartermaster, The Panama Canal and Panama Railroad Co. on July 26,

1943, vice Mr. Lew W. Lewis promoted to chief quartermaster.

Maj. Charles V. Sanders, Coast Artillery Corps, Army of the United

States, was appointed assistant to the Governor on April 29, 1944.

Mr. William M. Whitman was appointed assistant general counsel on August 1, 1943, vice Mr. Ronald S, Hazel, resigned.

Lt. Comdr. Fred R. Draper, United States Naval Reserve, was

appointed assistant to the superintendent, mechanical division, on

July 2, 1943, vice Lt. William J. O. Prinsloo, United States Naval

Reserve, relieved from duty with The Panama Canal.

Mr. John F. Phillips was appointed production superintendent,

mechanical division, on January 1, 1944.

Mr. A. Oren Meyer was appointed chief, police and fire division, on July 1, 1943, vice Mr.. Guy Johannes, retired.

CHANGES IN ADMINISTRATIVE ORGANIZATION

Safety section.—Effective July 1, 1943, the safety section was trans- ferred from the organization of the special engineering division and

set up as a separate section in the department of operation and maintenance, under the supervision of the engineer of maintenance, reporting directly to the military assistant to the Governor.

EMPLOYEES

The force employed by The Panama Canal and the Panama Railroad

Co. is composed of two classes which for local convenience have been

designated "gold" and "silver" employees. The terms "gold" employees and "silver" employees originated during the construction

period of the Canal from the practice of paying common laborers and

other unskilled or semiskilled workers employed in the Tropics in

silver coin, >vhile skilled craftsmen and those occupying executive,
REPORT OF GOVERNOR OF THE PANAMA CANAL 67

professional, and similar positions were paid in gold coin, the latter group being recruited largely from the United States. Although all employees are now paid in United States currency, the original terms

used to designate the two classes of employees have been retained for convenience. The terms "gold" and "silver" are applied also to quarters, commissary, clubhouse, and other public facilities. The gold employees—that is, those carried on the gold pay roll

comprise those employees who are engaged in the skilled trades and

in the executive, supervisory, professional, subprofessional, clerical,

and other positions where education, training, and special qualifications are required. The force of silver employees is composed almost

entirely of natives of the Tropics, a considerable number of whom are Panamanians. They are employed principally as laborers, helpers,

and semiskilled workers on work which does not require the services

of specially trained or qualified persons. Responsibility for persomiel administration in The Panama Canal is vested in the division of personnel supervision and management,

executive department. The division's activities are separated into

"gold" and "silver" subdivisions in accordance with the customary

classification of employees of The Panama Canal.

GOLD EMPLOYEES

Starting in May 1944 the regular monthly force reports of The

Panama Canal and Panama Railroad Co. have been compiled as of

the last working day of the month. Prior to that they had been compiled as of the first Wednesday of the month. The distribution of

the gold personnel on June 30, 1944, and on June 2, 1943, is shown in the following tabulation:
68 REPORT OF GOVERNOR OF THE PANAMA CANAL

THE PANAMA CANAL—Continued

Special engineering division Supply Department:

Offices, chief quartermaster

Building division..

District quartermasters Experiment gardens Motorcar repair shop Motor transportation division. Oil-handling plants Panama Canal Press Storehouses

Subsistence section Total, The Panama Canal. Net decrease PANAMA RAILROAD CO. Railroad proper Receiving and forwarding agency

Commissary division Dairy farm

Hotels

Real-estate section Total, Panama Railroad Co.

Total force Net decrease, total force.

June 30, 1944

86

24

16342

14 107

10345

13 122

7

6,337

133

120 356

5176 637 6,974

June 2, 1943

380

28

23546

27

105

192

4117 170

17 7,554

186 172

412

6

19

803

8,357

Increase

151

Decrease

294

472

4

13

1,368 1,217

1, 534 1.383

In line with the reduced heavy-construction activitj'^ throughout

1944, the gold force of the Canal-Railroad organization decreased by

1,383 employees (16.5 percent) from June 2, 1943 to June 30, 1944.

The reduction in force was accomplished gradually and, where necessary, employees immediately affected were transferred to other

divisions, thereby reducing the recruiting and employment problems.

The divisions which showed the largest numerical declines were the

special engineering division, the municipal engineering division, and

the dredging division, in which an over-all decrease of 722 employees,

one-half of the total decrease, was recorded. However, ten other

divisions registered decreases of 20 percent and upward. Five units

recorded increases during the year, but only two of these were of real

significance. The electrical divi'sion force, which declined 19 percent

in the fiscal year 1943, continued to decline through February 1944.

In March, however, the division began to expand rapidly because of an increase in marine electrical work, and by the end of the year had

a net increase of 14.3 percent over June 2, 1943. The mechanical

division, which had expanded more rapidly than any other division

in the preceding year because of the heavy work load of marine repair

and other work involving skilled craftsmen, continued to be very active

throughout 1944, and showed an increase of 4 percent in force as compared with June 2, 1943,
REPORT OF GOVERNOR OF THE PANAMA CANAL 69

Recruiting and Turnover of Force—Gold Employees

The following table shows additions to and causes of separations

from the gold forces of The Panama Canal and the Panama Railroad

Co. during the past year:

Additions.

Separations: Resignation - -- To enter military service Reduction in force Termination of temporary employment or reassignment

Removal for cause -

Retirement: Age -. - Disability Optional Disability—not qualified for retirement — Inefficiency -- Transfer (to otlaer departments of Government) -- Disqualified in trial period Death

Total separations

Net separations.-.

Panama

Canal

1,451

1,165

117

10639

22

17

206

7320 2,618

1,167

Panama

Railroad

92

107

7119

2

231

139

Total

1,543

1,272 879

307

119 11244

3123

219

7

4

21 2,849

1,306

Note.—The above figures do not include 133 employments made on a part-time basis and 92 terminations

of part-time and irregular employees; neither do they include 8 employments and 8 terminations of American

citizens on the silver roll.

Based on an average aggregate gold force of 7,459 for the period

covered, the 2,849 separations from all causes shown in the foregoing

table represent a turnover of 38.2 percent. This is slightly lower than

the 39.1 percent rate of turn-over in 1943 which was beheved to be

the highest rate experienced by the Canal-Railroad organization since

the original construction period. When separations by reason of reassignment or expiration of temporary employment are excluded

the turn-over rate is 36.6 percent for 1944 as compared with 37.8

percent for 1943; and when the separations due to reduction of force are also excluded, the rate for 1944 is 32.5 percent as compared with

32.1 percent for 1943.

A factor which probably had the effect of keeping turn-over in force at a high figure in 1944 was the application during 1944 of selective

service registration to male citizens residing in the Canal Zone. A

total of 879 employees terminated their services specifically to join

the military forces in 1944. While many employees no doubt resigned

for this purpose in 1943, the exact number is not known; but it is believed that the number was considerably lower than in 1944.

Employment.—During the past year recruitment in all divisions of

the Canal-Railroad organization was necessary primarily for replacement purposes, particularly to replace losses to the military service.

The principal recruitments were for the mechanical and electrical
70 REPORT OF GOVERNOR OF THE PANAMA CANAL

divisions and these were necessary to maintain an adequate organization to handle marine repair work.

At the beginning of the fiscal year the War Manpower Commission

issued orders restricting recruitment in the United States by individual

Federal agencies, which implied that all agencies thereafter would

place requisitions for necessary personnel with the United States Civil

Service Commission, and that selections would be made by the

Commission. However, in view of the employment conditions

peculiar to the Canal organization, the War Manpower authorities

authorized The Panama Canal to recruit through its own representatives in the field in cooperation with the United States Employment

Service.

Although an attempt was made to maintain high qualifications

standards, versatility of experience, and employment of persons with more than minimum requirements, the effect of the war on conditions

in the labor market forced a lowering of recruitment standards in most occupational categories. It has been necessary to resort in- creasingly to the employment of male applicants in the higher age

brackets and to the replacement of younger males by females. Recruitment in the field by Panama Canal representatives has assisted

greatly in securing new employees of the highest possible qualifications under conditions prevalent in the labor market.

During the fiscal year all employees were transported to the Isthmus

by airplane through embarkation ports of Brownsville, Miami, and

New Orleans.

ADJUSTMENTS IN WAGES AND HOURS OF WORK

During the past year the rates of pay of postal employees with the

exception of postmasters in the larger post offices, were adjusted

following comparable adjustment in the rates of pay of employees of the Post Office Department in the United States. There were no

other major changes in the rates of pay or hours of work of gold

employees during the fiscal year. SILVER EMPLOYEES

As stated previously, force reports of The Panama Canal and Panama

Railroad Co. are now compiled as of the last working day of the month,

whereas formerly they were compiled as of the first Wednesday of the

month. The granting of sick and rest leave to silver employees has

also made it desirable to effect some changes in the report pertaining

to silver employees. Originally the force report data included only

employees at work on the day the force count was made, the purpose

of these figures being to determine the size of the actual working
REPORT OF GOVERNOR OF THE PANAMA CANAL 71

force. As revised, the force report figures for silver employees now

show all employees carried on the pay roll, including those temporarily

not working. This change in the manner of compiling data materially

effects force report figures in divisions having work of a fluctuating

character, such as the receiving and forwarding agency, which employs a large force of laborers intermittently engaged in loading and

unloading vessels at the dock.

Subject to the above qualifications the following table shows a comparison between the silver force of The Panama Canal and Panama

Railroad Co. on June 30, 1944, and June 2, 1943, the figure for the

receiving and forwarding agency on June 2, 1943, being an approximation of the total silver force on that date.

THE PANAMA CANAL

Accounting department. - Dredging division Assistant engineer of maintenance:

Electrical division Locks division Municipal division

Office engineering division Meteorology and hydrography section. Executive department:

Executive offices Bureau of posts

Civil affairs and customs

Clubhouses

Magistrates' courts Paymaster

Police section Schools and playgrounds Health department Marine division Mechanical division

Special engineering division... Supply department:

Offices, chief quartermaster Building division

District quartermasters Experiment gardens Motorcar repair shop Motor transportation division Oil-handling plants ._ Panama Canal Press _.. Storehouses

Subsistence section Total, The Panama Canal. Net decreasePANAMA RAILROAD CO. Railroad proper Receiving and forwarding agency. Commissaries Dairy farm

Hotels Real estate.- Total, Panaitia Railroad Co. Net decrease Total force Net decrease, total force.

June 30, 1944

6 1,811 543 924

1,758

1072580

42

2 1,748

2

355 206

1,759 896 2,28562

4 1,678 638

160

130 40085

128 479

143

16, 168

550 2,693 3,233

126 267

3 6,872

23, 040

June 2, 1943

2,510

575 815 3,408

119

24

7842

4

1,723

2

262

234 1,880

613 2,268

6 2,735 692

455

137 512

67

154 798

20, 408

699 3,283 3,415

107 242

3 7,749

Increase

109

283

17

500

Decrease

1 699

32

1, 650

12

7 28

121

16

2 1,057

54 286

7 112

26 319

265 4,696

4,240

149 590

182

921 877 5,617 5,117 As in the case of the gold force, decreased construction activity

during 1944 resulted in substantial decreases in force in the majority
72 REPORT OF GOVERNOR OF THE PANAMA CANAL

of the luiits employing silver workers. The over-all decrease in

comparison with 1943 was 18.2 percent. The largest numerical declines were in the municipal engineering division, the dredging division, and the building division, although important decreases also occurred in other units of the supply department. Substantial gains

in the silver force were recorded in only two divisions. The increase

of 283 in the marine division was brought about by increased Canal

traffic which necessitated the employment of additional tugs and an

increase in the number of men required for handling lines of vessels

transiting the Canal. The locks division silver force was higher by

109 than in the previous year, which was due to a holdover for cleanup purposes of employees used on locks overhaul, additional men

required for painting emergency dams, handling heavy lines on large

ships passing through locks, and performing rehabilitation work on dams and backfills following the completion of construction projects

by the Army and municipal engineering division.

SILVER WAGES

Wages of employees on the silver roll bear no direct relationship to wages of corresponding classes of workers in the United States. As

silver roll employees are for the most part natives of the Tropics, their

wage scales are established at levels based on wages prevailing for tropical labor in the Caribbean area. There were no important

changes in silver wage rates during the past fiscal year.

Sick and Rest Leave

Rest leave for silver employees was authorized by regulations issued

June 12, 1942. The former regulations governing sick leave allow- ances were amended to authorize the granting of rest leave to alien

employees not otherwise entitled to vacation leave priviliges, providing they have 5 years or more of continuous service and an excess

of 30 days sick leave to their credit. Sick leave is earned at the rate

of 1}4 days per month. A total of 22,668 sick leave payments were

authorized during the fiscal year as compared with 25,050 during the

previous fiscal year. A total of 3,259 rest leave payments were

authorized in 1944 as compared with 1,783 in the previous year. Cash Relief for Disabled Silver Employees

• Applications for relief under the act of Congress of July 8, 1937,

averaging 19 per month, were received during the fiscal year 1944.

The original regulations estabUshed during the latter part of the

fiscal year 1938 for administering this relief were continued without

material change.
REPORT OF GOVERNOR OF THE PANAMA CANAL 73

The tables below show the disposition of all applications from

employees of both The Panama Canal and the Panama Railroad Co.

during the fiscal year 1944. The average cost per case and the

monthly payment as of June 30, 1944, are also indicated.

Panama

Canal PanamaRailroad Total

Applications on hand, July 1, 1943.

Applications received during period. Total

9

160 169 74 Applications approved for payment.

Applications suspended for various reasons Applicants died before relief approved

Applications rejected for various reasons Applicants ineligible because of limitations of the act Applications not complete but in various stages of progress, June 30, 1944

1174

2

Total

169 74

12 231

243

1768

2

2

45

10

243

Note.—Removal from the rolls on account of the death or subsequent reemployment of cash relief re- cipients: Panama Canal, 51; Panama Railroad, 13.
74 REPORT OF GOVERNOR OF THE PANAMA CANAL

Central Labor Office

The Contra! Labor Office program of The Panama Canal provides

for eligibility control over applicants seeking employment with government agencies and private contractors operating on the Isthmus.

The general decrease of employment activities is demonstrated by the

comparative figures presented below, showing the total numbers of

silver employees carried on the rolls of the various organizations as of

Jmie 1944 and June 1943:

Panama Canal and Panama Railroad Co. Panama Canal contractors Panama Canal Department (Army)

Army service exciianges Division engineer (Army)

Division engineer contractors U. S. Xavy

U. S. Xavy contractors _._ Miscellaneous

Total.

June 1944

23, 040

5, 570

1, fiSe 7,506 407

5,448

145 662

44,314

June 1943

28, 339

158 5,248 985

11,410 2,235

3.026

7,432

124

58, 957

Because of the insufficient supply of qualified labor on the Isthmus,

recruitment of contract workers from foreign countries continued

through September 1943 and then was discontinued. All workers

brought to the Isthmus during the past year were recruited in El

Salvador, whereas in the previous year workers were also imported

from the Republic of Colombia and from Jamaica, British West

Indies. The only foreign recruitment office in operation, largely to handle repatriations, during the fiscal year 1944 was in El Salvador,

and it was closed on June 30, 1944.

From the inception of the foreign recruiting program in 1940, a total of 19,675 contract workers have been brought to the Isthmus. Of

this number 16,465 have been repatriated, leaving, as of June 30, 1944,

a total of 3,210 still on the Isthmus. The following table shows figures

for the different areas from which the workers were recruited:
REPORT OF GOVERNOR OF THE PANAMA CANAL 75

promote the application of safety measures in all subdivisions of The

Panama Canal-Panama Railroad organization, and to develop and

improve the programs of accident prevention for the organization as a

whole. This is accomplished by various activities such as periodic

inspections of field conditions, investigations of accidents, recommendations pertaining to safety matters, holding safety committee meetings in various divisions of the organization and interesting supervisory

and other employees in the subject of accident prevention.

Normal experience has shown that during a period of expanding

activities the increase in the number of injuries might be expected to be proportionately greater than the increase in hours worked. This

would be a natural result of taking on large numbers of new and inexperienced workers unfamiliar with the hazards of their work, and to whom immediate working conditions are strange. Thus, it might

have been anticipated that the accident rate for the Canal-Railroad

organization would increase sharply during the recent period of ex- panded activity. However, because of the safety program launched

near the start of the increase in work, the Canal-Railroad organization was able not only to prevent an increase but to effect a decrease in the

rate of accidents.

The following statistics cover the accident rates for the CanalRailroad organization for the four full fiscal years since institution

of the safety program:

Year
76 REPORT OF GOVERNOR OF THE PANAMA CANAL

Approximately two-thirds of the compensation payments now cover

accidents that occurred in previous fiscal years and so the amount of

such payments will not decrease during the next few years in proportion to the anticipated decrease in work load. Accordingly, because

of the recent period of expanded activity the amiual compensations

and rates may be expected to be high for the next several years but

these payments would have been materially higher had it not been

for the great improvement in accident prevention evidenced by the

data shown above.

The worst accident in the past fiscal year was the sinking of the

tug Chagres in the Pacific entrance on August 3, 1943. Eight men

were killed in this accident, which accounted for nearly half of the

17 fatalities during the past year. Purchase of War Savings Bonds by Employees

The pay-roll deduction plan for the purchase of War Savings bonds was continued with great success throughout the year, the deductions

for gold employees for the fiscal year 1944 amounting to $3,993,772.25,

as compared with $2,855,300 in the preceding year. Employees

responded substantially to the Third War Loan Drive (September

9 to October 2, 1943), the Fourth (January 18 to February 15, 1944),

and the Fifth (June 12 to July 8, 1944), all of which were conducted

during the fiscal year 1944. The Panama Railroad Co. and The

Panama Canal led all Government agencies in the purchase of war

bonds by the pay-roll deduction method and have been listed on the

Interdepartmental War Savings Bond Committee's honor roll, the

Panama Railroad Co. leading all other agencies and The Panama Canal

being second. Percentage of employee-participation at the close of

the year was 95.83 for the Railroad and 90.54 for the Canal employees,

while percentage of the gross pay roll subscribed was 21.05 and 16.93,

respectively.

By circular dated October 19, 1943, the pay-roll deduction method

for the purchase of war bonds was extended to the silver employees,

effective December 1, 1943, and as of June 30, 1944, a total of 2,456

silver employees were subscribing for bonds, the total amount of

monthly deductions being $17,531.25. The silver employees' plan

is limited to monthly deductions in the amounts of $6.25, $12.50,

and $18.75.

EXPERIMENT GARDENS

The Canal Zone plant introduction gardens and experimental station were established in June 1923. The gardens, which include greenhouses, nurseries, and experimental plantings, embrace approximately

125 acres of land, and are devoted to the propagation and cultivation

of a wide variety of useful and ornamental plants from aU parts of the
REPORT OF GOVERNOR OF THE PANAMA CANAL 77

world, primarily for the purpose of determining their adaptability

and value under local soil and climatic conditions, for general propagation on the Isthmus. This unit also designs and supervises all landscape work for The Panama Canal and Panama Railroad Co.

The volume of work handled by the landscape section of the gardens was considerably less in 1944 than it had been in the three preceding

years. This was due principally to completion of the large program

of landscape work in new Canal Zone towns and in Army and Navy

reservations, as well as the practical completion of camouflage work

for the Army and of soil erosion work.

During the year the regular long-range experimental work was

continued. Experimental plantings were made of several new varieties of tomatoes, lima beans, sweet corn, cucumbers, and muskmelons

with results indicating their adaptability to this climate. The operations of the nursery as a separate and self-supporting department of

the experiment gardens has proved to be one of the important services

which the gardens can render. Each year thousands of plants of

species previously tried out under Isthmian conditions and found

worthy of further propagation find their way into different parts of

the Canal Zone, Panama, and neighboring countries. Dm-ing the past

year the demand for various varieties of citrus and avocado plants

far exceeded the supply, and the nurseries are being enlarged to take

care of the anticipated demands for next year.

Sales continued good at the Balboa sales store where the garden's

products were made conveniently available to the public. Items

sold included sweet corn, string beans, lima beans, okra, tomatoes,

bananas, grapefruit, limes, lemons, mangoes, mangosteens, and such

other products as were available.

CLUBHOUSES

The Panama Canal clubhouses, which are now operating on a self- supporting basis, comprise activities designed to provide at reasonable

rates restaurant, motion picture, and other recreational facilities for

Government personnel and their families. These activities have

undergone considerable expansion during the current period of

increased activity on the Isthmus. Since a large percentage of the

personnel brought to the Isthmus in the past several years have

necessarily come without their families, the problem of feeding them

has devolved largely upon the clubhouses. Further, the clubhouse

facilities are used extensively by members of the armed forces sta- tioned on the Isthmus.

All of these factors produced much overcrowding in all the clubhouses, particularly in the larger ones located in the terminal areas
78 REPORT OF GOVERNOR OF THE PANAMA CANAL

of Balboa and Cristobal. To meet this situation it became necessary

to undertake a major program of expansion of the clubhouse facilties. The most important addition to the clubhouse plant last year was

the construction of a new gold clubhouse at Gatun. The former gold

clubhouse at Gatun was a very old, large, frame building located on

a hill near the Gatun locks. This building constituted a hazard to the defense of Gatun locks, and so was torn down very soon after the entry of the United States into the war in December 1941, except

for a small part specially protected to house the restaurant. The

town of Gatun did not have gold clubhouse facilities from that time

until the new plant was opened on April 1, 1944.

During the past year several other improvements, planned or begun

in prior years were completed. One of these was the new Balboa

Bowling Center opened in September 1943. The Ancon motionpicture theater was enlarged, remodeled, and placed back in service

in September 1943. New silver theaters were built in La Boca,

Cristobal, and Gatun, as replacements for the silver theaters formerly

located in the old frame clubhouse buildings in those towns, which

had been fire hazards for some time.

During the fiscal year 1944 the business and revenues of the clubhouses remained at nearly the same level they had reached during

the previous year, which has been a record high. Activity of the

clubhouse chain is still six or seven times prewar levels. LEGISLATION

Among the laws enacted by the Congress during the fiscal year

1944 which relate to or apply to the Canal Zone or affect The Panama

Canal and which are of importance or interest are those described

below.

An act approved May 29, 1944. providing for the recognition of the services of certain civilian officials and employees, citizens of the

United States, engaged in and about the construction of the Panama

Canal.

An act approved April 4, 1944, amending the act of June 11, 1940,

making it a misdemeanor to stowaway on vessels. An act approved March 4, 1944, making it a misdemeanor to stowaway on aircraft and providing punishment therefor.

Legislation relating to the Canal Zone introduced during tliis fiscal year and still pending in Congress includes:

A bill (S. 1115) to provide for the exercise by the United States of

certain jurisdiction over persons within areas in the Republic of

Panama, the temporary use of which for defense purposes is granted

to the United States.
REPORT OF GOVERNOR OF THE PANAMA CANAL 79

A bill (H. R. 3952; S. 1644) for the relief of the families of certain

employees of The Panama Canal who were killed in the marine accidents involving the tugs Alhajuela and Chagres.

A bill (H. R. 4307) to amend the Canal Zone Code retirement provisions so as to provide for the retirement at age 55 of an employee

with 30 years' service on an immediate annuity having a value equal

to the present worth of a deferred annuity beginning at the age of 60

years. A bill (H. R. 3646) to amend section 42 of title 7 of the Canal Zone

Code by increasing from 4 to 8 years the terms of the United States

district attorney and of the United States marshal, was approved

July 1, 1944.

CAPITAL ALLOTMENTS, 'FISCAL YEAR 1945

The appropriations for 1945 carried $1,311,500 for improvements

and betterments and for the replacement of worn-out or excessively

deteriorated facilities as follows:

Auxiliary raw water supply, Pacific side $325, 000

Launch for Marine division 25, 000

Dredging division dock, Balboa 830, 000

Locomotive repair shelters, Gatun and Pedro Miguel-- 70, 000

Sanitation building, Ancon 27, 000

Equipment for central dental laboratory 17, 500

Infirmary, Corozal Hospital 17,000

Total 1, 311, 500

Auxiliary raw water supply, Pacific side.—This project covers the

installation of 14,000 lineal feet of 30-inch, cement-lined, cast-iron pipe

from Paraiso pump station to the Miraflores filter plant. It will provide the facility for delivering an additional amount of raw water to the Miraflores filter plant and permit increasing the output of that

plant from the present maximum of ^3,000,000 g. p. d. to 28,000,000

g. p. d. The new pipe line will permit independent operation of the

two sources of supply (Chagres River and Gaillard Cut) which will give better operating characteristics, lower pressures, and lower pumping costs. Since it will follow a new route it will provide protection

against an interruption to the Pacific-side water supply in the event of a break in the present raw water main on the narrow Panama Railroad

causeway across an arm of Miraflores Lake, which might be washed

out be a large flood. Launch for marine division.—This appropriation has been provided

to cover the cost of one Diesel-powered launch, 50 feet long, for

parties boarding ships at harbor terminals. The new launch is to re- place one that is 26 years old and which cannot be reconditioned to secure the essential dependability.
80 REPORT OF GOVERNOR OF THE PANAMA CANAL

Dredging division dock, Balboa.—^Approximately 2,500,000 cubic

yards of material are dredged each year from the Canal south of

Miraflores locks and from the port of Balboa, The drill boats and

dredges performing this work require the services of approximately 50

auxiliary craft such as tug boats, oil and water barges, dump scows,

pipeline tenders, watch boats, and launches. All these craft are serviced and dispatched from an inadequate makeshift mooring station

north of Balboa inner harbor. In February 1941, the expanding demand for the existing permaneat dock facilities by ocean-going vessels

loading, and discharging cargo, and requiring wet-dock repairs, prohibited the further use of any part of these docks by the dredging

division and necessitated the establishment of a temporary mooring

station for the use of that division until the necessary appropriation

could be obtained and the construction of a permanent dock with

suitable auxiliary equipment completed. The dock to be built under

this appropriation will be 500 feet long by 50 feet wide with reinforced concrete deck, a barge repair shed 100 feet long by 25 feet wide, and a

field ofiice 40 feet long by 20 feet wide, the two latter structures to be

erected on the dock proper. Access to the dock will be provided by the

construction of a road 520 feet in length. With the construction of

these facilities the equipment of the dredging division in the Pacific

entrance and Balboa inner harbor areas will be provided with adequate

mooring and dock space. Locomotive repair shelters, Gatun and Pedro Miguel.—This appropriation was made to cover the cost of building concrete shelters over

existing towing locomotive repair pits at Gatun and Pedro Miguel

locks. The Canal is equipped with 64 of these towing locomotives, 40

of which were acquired in 1914 and the remaining 24 added from time

to time as the need developed. Prior to the outbreak of the war all necessary replacements and additions were constructed by the mechanical division. However, under present war conditions, the need

for conserving materials and the difficulty of securing them, together

with the very heavy work load on the mechanical division, precludes

the construction of new locomotives and makes it necessary to continue to depend upon the present locomotives. To meet these conditions it has been necessary to make more extensive use of the exist- ing repair pits and provide shelters for such of the pits as are not now

equipped for protection against bad weather conditions.

Sanitary building, Ancon. —This appropriation was made to cover

the cost of a new one-story building to bo used for centralizing and

providing additional space for the garbage collection and disposal

activities of the health department. In common with all other municipal services, the volume of garbage handled has more than doubled

as a result of the general expansion in the Canal Zone, and the growth
REPORT OF GOVERNOR OF THE PANAMA CANAL 81

of the population in Panama. The present facilities for cleaning, re- pairing and maintaining the garbage cans and other refuse receptacles are located in a 20- by 15-foot open shed, while the office for timekeeping, checking, and dispatching duties is located in a small struc- ture of reclaimed lumber under the wooden garbage loading platform

at Ancon, These structures are of a makeshift nature and inadequate

for continued use. Equipment for central dental laboratory.—This appropriation was made to defray the cost of equipment required to establish a central

dental laboratory, which will permit the Canal Zone dentists to provide prompt and adequate dental service to the public. Space for the

laboratory is already available in an existing building and funds were

appropriated only for the purchase and installation of the necessary

equipment. Under the present arrangement the district dentists

have small work shops in their offices which are inadequately equipped,

and a large part of the laboratory work must, in the end, be sent to laboratories in the United States for completion, with consequent

delays, increases in cost, and frequent errors in manufacture. The

establishment of the laboratory will permit the dentists to provide

special dental appliances as required, and will improve the quality and

quantity of the dental work performed and reduce its cost. The vol- um.e of work to be handled by the laboratory is expected to remain at a high level indefinitely, so that revenues derived from the work will enable the laboratory to meet its operating costs. Infirmary, Corozal Hospital.-—Corozal Hospital is primarily an in- stitution for the care and treatment of the mentally disturbed, but at present approximately 100 of the inmates are senile, chronics, or

cripples, most of whom are suffering from organic diseases which re- quire special care and attention from time to time. Inasmuch as the

hospital is designed for mental cases no facilities for the treatment of

other than mental ailments are available for these patients and they

must therefore be transferred to Gorgas Hospital whenever the necessity arises for ordinary medical treatment. The addition of these

cases to the already greatly over-crowded wards of Gorgas Hospital

further strains the facilities of that institution and the movement

adversely affects the patients. As the majority of the cases are of a, nature that could be adequately treated at Corozal if proper facilities were available, an infirmary for that purpose will be provided by enclosing the space under the wing of an existing ward building. This

project will afford space for 32 patients, as well as for nurses' and at- tendants' offices.
SECTION IV

GOVERNMENT

The civil government of the Canal Zone is conducted as prescribed

in the Panama Canal Act of August 24, 1912, and subsequent acts and Executive orders applicable to the Canal Zone. Whenever

practicable, governmental functions have been assigned to departments in the organization established for the operation and maintenance of the Canal. Complete cooperation and increased efficiency are derived from such coordination of functions.

Date on expenses and revenues of various features of Canal operation and government are contained in the financial and statistical statement in section V of this report.

AREA OF THE CANAL ZONE

The total area of the Canal Zone,' with areas segregated for ^ arious

purposes, is shown as of eTune 30, 1944: LAND AREA

Military and naval reservations (inclusive of revocable license areas)

^i'""'^ ^'^^ Military reservations ., 87. 23 Naval reservations '- 12. 02

Total 99.25

Canal Zone townsites and areas m active use 15. 69

Miscellaneous assigned land areas: Barro Colorado Island 5. 71 Forest preserve 5. 47

Cattle pastures 41. 80 Commercial leases -44

Third locks project .72

Total . 54. 14 Remaining usable land i 177. 77 Swamps 15. 16

Total land area of the Canal Zone 362. 01 WATER AREA

Total water area of the Canal Zone (inclusive of Madden Lake to the

260-foot contour) 1 90. 94

Total area of the C'anal Zone _ _ 552.96

' Xot inclusivfi of noncontiguous areas, with the pxcoption of Paitilla Point Military Reservation. 82
REPORT OF GOVERNOR OF THE PANAMA CANAL 83

POPULATION

A house-to-house canvass of the civil population of the Canal Zone was made by the police force during the month of March 1944. This

canvass included civilian employees of the Army and Navy, and

members of families of Army and Navy personnel, but omitted commissioned, warrant and enlisted personnel. In past years the canvass had been made during the rainy-season month of June, but in 1944

it was decided to make future canvasses during the dry-season month

of March, to afford the enumerators easier access to the outlying

areas. Further, in normal times the March canvass will be more

accurate, since during the summer months many employees and their

families are absent from the Isthmus on vacation.

The following is a summary of the population by districts:
84 REPORT OF GOVERNOR OF THE PANAMA CANAL

VITAL STATISTICS

The morbidity and mortality rates from diseases and injuries,

together with other vital statistics relating to the populations of the

Canal Zone and the cities of Panama and Colon, are set forth in

detail in the calendar year report of the health department, which is published annually in booklet form. For this reason, the data

herein pertaining to vital statistics are limited to a brief resume of the

most important information.

General death rate.—T\\e death rate for the Canal Zone is artificially

low because employees generally leave the Isthmus after retirement.

Moreover, prior to 1941 a large number of relatively young soldiers were included in the population figures on which the rates were computed. Below are shown death rates by yearly periods for the past

five years:

Death rate per 1,000 population—all causes
REPORT OF GOVERNOR OF THE PANAMA CANAL 85

can obtain quarters in the Canal Zone. The birth rates for both

classes in the calendar years 1943, 1942, and 1941 are not directly

comparable with those shown in the table below for earlier years

because the population base for white births has omitted Army and

Navy personnel since 1940, and because the colored population has

been inflated by the influx of laborers without their families, imported

for construction work.

The following table shows the birth rates in the Canal Zone and the

terminal cities of Panama and Colon for the past 5 years:

Live birth rate per
86 REPORT OF GOVERNOR OF THE PANAMA CANAL

There was one death from malaria among employees during the

calendar year 1943.

HOSPITALS

The number of patient days in Panama Canal hospitals for the

past three fiscal years was as follows:
REPORT OF GOVERNOR OF THE PANAMA CANAL 87

Immigration and departure control offices were installed in the new

Canal Zone air terminal building during the year, to facilitate the

handling of air traffic in the Canal Zone.

The following is a summary of transactions for the fiscal year 1944,

together with the figures for the two preceding years:

Vessels inspected and passed

Vessels granted pratique by radio. Total. Crew passed by quarantine Crew passed by radio Passengers passed at quarantine.

Passengers passed by radio. Total

Airplanes inspected and passed

Crew of airplanes inspected and passed Passengers of airplanes inspected and passed. Total

Vessels detained in quarantine Crew detained in quarantine on board of ship Passengers detained in quarantine on board of ship Passengers admitted to station on account of quarantine laws Number of detention days at station on account of quarantine laws. Immigration cases admitted to station Number of immigration detention days -. Persons held for investigation and released Persons deported under immigration laws Supplementary sanitary inspection of vessels Vessels fumigated...

Fiscal year

3,568

3,568

53, 134

238, 080

2,656

11,345 36,912

48, 257

3 175

55

2, 946

35, 399

114 3,533

4,695

107

2,844

2,844

146, 537

50, 823

197, 360

2,525

11,090

33, 623

2 105

1

1 5, 331

73, 75196 4,819 3,560

68

3,923

36 3,959

205, 136

7,251 112,196

375

324, 958

1,619

6,601

20, 837

27, 438

6,256

60, 739

655 5,798 3,337

45

MUNICIPAL ENGINEERING

Municipal work carried on during the year included the construction and maintenance of roads, streets, and sidewalks; the mainte- nance and operation of water and sewer systems; and miscellaneous

construction jobs. In the past few years, a considerable amount of construction work has been performed by the municipal engineering

division of The Panama Canal for the United States Army and the

United States Navy, private contractors, and the divisions of The

Panama Canal and the Panama Railroad Co. Only the major items

of this work are commented upon in this report, although the value

of the large number of smaller items aggregates several hundreds of thousands of dollars.
88 REPORT OF GOVERNOR OF THE PANAMA CANAL

WATER SYSTEM

Consumption of water for municipal uses and for sales to vessels

during the past three fiscal years was as follows:

[Thousands'of gallons]
REPORT OF GOVERNOR OF THE PANAMA CANAL 89

This project on the Atlantic side of the Isthmus was completed

during the fiscal year 1944 with the installation of (a) two 5,000-

gallon-per-minute pumps, together with necessary switchgear, piping

and meter in Mount Hope pump station, to serve Fort Gulick

Reservoir; (6) the completion of the enlarged Mount Hope filter plant, which involved the construction of four new filters for increasing

the capacity of the plant to 14,400,000 gallons per day, modification

of existing buildings, and the construction of a lean-to; and (c) the

installation of a new 30-inch raw water Ime from Gatun Lake, near Fort Gulick, to the Mount Hope filter plant. This new raw water

line, which roughly parallels and is cross-connected to the original

30-inch water line, is 14,600 feet long, and consists of cement-lined,

cast-iron pipe. The carrying capacity of the new line is approximately

16,000 gallons per minute, and for the two lines approximately 24,000

gallons per minute. The new facilities were necessitated by the

increased use of water on the Atlantic side. SEWER SYSTEM

In addition to the regular maintenance work performed on the sewer

system, considerable improvements were made to the Old Cristobal

sewage pumping station. The latter project involved the removal of

old pumps, reconstruction of the sump to provide a dry pit on the

pump side, and the installation of new pumps and necessary auxiliaries.

ROADS, STREETS, AND SIDEWALKS

Regular maintenance work was performed on roads, streets, and

sidewalks in the Canal Zone. Asphaltic macadam streets in the

Ancon-Balboa area, most of which are 30 years old, had deteriorated

to such an extent, because of their age and to the exceptionally heavy

traffic in the past 5 years, that special surface treatment was required.

Funds were not available for reconstruction and, accordingly, a surface

treatment of cut-back asphalt and stone chips was applied to the roads

in the worst condition. This treatment has been successful as a temporary measure and will be continued during the fiscal year 1945.

Other projects completed during the year included widening by

9 feet a section of Roosevelt Avenue extending from Corozo Street to Gorgona Road; widening to 40 feet a section of Balboa Road extending

-from the Balboa cold-storage plant to Roosevelt Avenue; resurfacing

with rock-asphalt the 24-foot section of road from the Balboa coldstorage plant to Balboa circular drive in front of the commissary;

and the reconstruction of a 750-foot section of Roosevelt Avenue in

the vicinity of the Sosa Hill rock-crushing plant.

683299—46 7
90 REPORT OF GOVERNOR OF THE PANAMA CANAL

SPECIAL ROAD PROJECTS In addition to the regular improvement work performed under

Panama Canal allotments, described above, the following special

projects were carried forward with funds provided by other agencies

of the Government:

Gaillard Highway improvement project. —This project consists of

rebuilding or widening portions of Gaillard Highway to provide a minimum width of 24 feet over a section extending from Tivoli crossing

to Paraiso junction and a minimum width of 22 feet from the Paraiso

junction to Madden junction (new Gamboa Road). Funds for the

project were provided by the Bureau of Public Roads.

The section from Tivoli crossing to Diablo crossing, 2 miles in

length, was widened by a minimum of 6 feet, which necessitated

lengthening the decks of the bridges over Rio Curundu and the Rio

Alaria Sala. Work on this section was started in March 1944, and was 80 percent complete by the end of the year. The improvement of the section between the northern end of the

Fort Clayton bypass and the junction of Paraiso Road included the

relocation of a large part of the highway over Miraflores Hill, and

required the excavation of 110,000 cubic yards for a cut at the top of

the hill. This section will consist of a 24-foot wide, 8-inch thick,

reinforced concrete pavement for a distance of 2.6 miles. The work

was 45 percent complete at the end of the year. The section of Gaillard Highway, 3.5 miles in length, from the

junctions of the highway and Paraiso Road to the beginning of

Madden Road, is being widened to 22 feet. At the end of the fiscal year 1944, 27 percent of this work had been completed,

Bruja Road improvement.—That part of Bruja Road extending from

Miraflores Bridge to Nicobar Avenue, Cocoli, having a total length

of 1 .4 miles, was repaved. A temporary section of the road, approximately 0.3 mile long, crossing the site of the proposed new Miraflores

locks, was repaired with rock asphalt, while the balance was paved

with 8-inch reinforced concrete to a width of 30 feet. This project was financed jointly by the United States Army and The Panama

Canal,

Widening Gaillard Highway from Corozal to Cardenas Biver bridge.—

This project consisted of widening to 30 feet the existing 20-foot wide

portion of Gaillard Highway from the Corozal cooks and bakers school

to the beginning of the 530-foot lock asphalt section just south of

Cardenas River bridge, and the replacement of this rock asphalt

section with a 27-foot wide reinforced concrete pavement. The funds

for this project were provided by the United States Army.

Brojects started last year.—The 30-foot wide, 4,100-foot long, express

highway between Ancon and Balboa, and the reconstruction of
REPORT OF GOVERNOR OF THE PANAMA CANAL 91

Randolph and Diversion Road, on which work was started in 1943, were completed during; the fiscal y^ar 1944. Descriptions of these

projects were included in the 1943 report.

OTHER HEAVY CONSTRUCTION ACTIVITIES

The 335-foot extension to dock No. 15, Cristobal, which started in

fiscal year 1943, was completed and placed in service in June 1944.

TEST OF CUCARACHA ROCK FORMATION

A test for the Third Locks project was initiated during the year to determine the safe bearing pressures on Cucaracha rock of the type

found north of the existing Miraflores locks. The test, which is still under way, involves excavating to the rock formation, constructing

a 40- by 50- by 10-foot concrete block, and loading the latter with armor plate. Plates have been placed at a maximum rate of 547

tons per day.

CITIES OF PANAMA AND COLON

Regular maintenance work was performed on the water and sewer systems and the streets during the year. Several construction projects were completed, the principal ones being the repaving of 4 blocks

of Justo Arosemena Avenue, Panama; the constiTiction of a 3-by3-foot box culvert and necessary connections on Forty-sixth Street,

between Venezuela and Balboa Avenues; and the removal of the

tramway line in Forty-sixth Street, Panama.

MISCELLANEOUS ACTIVITIES

Sosa Hill quarry and rock crushing planf. —Rock crushed chiring the

fiscal year 1944 and sold to various departments and divisions of

The Panama Canal, Panama Railroad Co., United States Army and

Navy, Republic of Panama, and United States Government contractors and individuals totaled 240,875 cubic yards. This plant also produced 9,348 tons of asphaltic mixtures for resurfacing old roads

and for the construction of new roads and streets. Central mixing plant. —During the year 43,291 cubic yards of

ready-mixed concrete and 2,691 cubic yards of dry batch (sand and

rock) were produced and sold. Concrete pipe plants.— -Flsmts at Ancon and at Cristobal were

operated for the manufacture of concrete pipe and half-section drain

tile. During the year 17,970 lineal feet of pipe of various sizes, and

8,406 lineal feet of 14-inch reinforced half-section drain tile, were

manufactured. This pipe is used chiefly by the municipal engineering

division for sewer and drain pipe, but a considerable quantity was

sold to the United States Army, the United States Navy, the Republic

of Panama, and local concerns.
92 REPORT OF GOVERNOR OF THE PANAMA CANAL

PUBLIC ORDER

There was a decrease in the force of the Canal Zone poHce during

the past year, corresponding to the general decline in activity in the

Canal Zone. Police substations at the following areas under the

Division Engineer, United States Army, were closed: Camp Escobal,

Camp Butler, Camp Pina, Curundu, Camp Chiva, and Camp Harrison. There was a reduction of 103 men, or about 25 percent, in the

police organization, the majority of whom were inducted into the

armed forces. Two-way radio telephone equipment was purchased during the

past year, and a license for its operation was obtained from the Federal

Communications Commission. Fifty-watt central station trans- mitters and receivers will be installed in the Balboa and Cristobal

police districts, and 13 motorcars will be equipped with mobile trans- mitter and receiver units for use by patrolmen.

During the fiscal year 1944, 8,525 persons were arrested, a decrease

of 13)^ percent, as compared with the previous year. Statistics

covering these arrests, with corresponding figures for the previous

year, are given in the following table:

Male

Female.

Total

Arrests made with warrants — Arrests made without warrants

Total -. Residents of the Canal Zone

Residents of Panama

Transients - TotaL -

Fiscal year

1944
REPORT OF GOVERNOR OF THE PANAMA CANAL 93

Homicides.—Ten cases of homicide were investigated by the coroner during the year, 6 of which were the result of motor vehicle accidents.

Of the 10 offenders, 6 were charged with involuntary manslaughter, 1 with voluntary manslaughter, 2 with second-degree murder, and 1 with

murder. One defendant was sentenced to 1 5 years in the penitentiary

1 to 18 months in the penitentiary; 1 to 6 months in jail; and 3 to pay fines ranging from $175 to $500. Two of the defendants were found not guilty; the remaining 2 cases were pending at the end of

the year.

Suicides, and other investigations by the coroner.—The coroner

investigated 6 cases of suicide during the past year, of which 4 were by hanging, 1 by poisoning, and the other by shooting. Coroner's

investigations were made in a total of 110 cases of deaths during the

year, of which 18 were from veliicle injuries; 23 from accidental drowning; 26 from natural causes, and the remainder from other causes. Prisoners.—A daily average of 103 prisoners served sentences in the

jails of the Canal Zone during the year, and those physically able were employed on municipal work. In July 1943 there was a daily

average of 144 prisoners as compared with 68 in June 1944.

Seventy-eight convicts were committed to the Canal Zone Penitentiary during the year, a decrease of 13 as compared with the preceding

year. Sentences imposed on these convicts totalled 111 years and

7 months. Seventy-one convicts were discharged, leaving 122 in

custody at the end of the year. Computed at standard rates of pay

for common labor, the value of the labor performed by convicts during

the year amounted to $57,235. Of this, 23 percent represented the

value of work performed in the operation, maintenance, and improvement of the penitentiary buildings and grounds, 53 percent on the

penitentiary farm, and the remaining 24 percent on outside municipal

work.

Deportations.—By order of the Governor, 56 persons were deported

from the Canal Zone during the fiscal year, of whom 27 were convicts

who had served sentences in the penitentiary and 29 were persons

whose continued residence in the Canal Zone was regarded as undesirable.

Traffic Accidents and Control

There were 764 traffic accidents reported during the year, or an

average of 64 per month, compared with an average of 87 per month

during the previous year. These accidents resulted in the deaths of
94 REPORT OF GOVERNOR OF THE PANAMA CANAL

13 persons and injuries to 355 other persons. Following is a classi- fication of the causes of these accidents for the past three fiscal years:

Cause
REPORT OF GOVERNOR OF THE PANAMA CANAL 95

PARDONS AND REPRIEVES

The pardon board, consisting of 5 members appointed by the

Governor, acts in an advisory capacity in the consideration of requests

submitted by prisoners for executive clemency. During the past

year the board submitted recommendations to the Governor on 46

appHcations for executive clemency, including pardons, commutation

of penitentiary and jail sentences, and withholding and revocation of

orders of deportation. The Governor extended clemency in 14 of

these cases. On March 7, 1944, Brig. Gen. H. C. Dooling was appointed to the pardon board to succeed Maj. Gen. M. C. Stayer, who

was transferred from the Isthmus to other duty. No other changes

in the membership of the board were made during the year. FIRE PROTECTION

During the past fiscal year, the number of fire stations operated

by the Canal Zone fire section remained unchanged ; those in operation

included the 11 new emergency fire stations established in the fiscal year 1943.

During the past year 288 fires, 28 false alarms, and 17 emergency

calls were reported. The following table classifies the owners who

suffered property losses during the year, as compared with previous

years:
96 REPORT OF GOVERNOR OF THE PANAMA CANAL

Enrollments in the white elementary and secondary schools have

remained at a fairly stable level for the past 2 years. February

enrollments are normally used for purposes of comparison, since

February usually represents the enrollment peak. In February 1944,

2,992 pupils were enrolled in the white elementary and secondary

schools, and kindergartens, as compared to 2,921 in February 1943.

Enrollment in the colored schools in February 1944 numbered 3,015

including 64 normal school students, as compared with 3,016 in 1943.

Free school privileges are granted to children of alien employees of

The Panama Canal and Panama Railroad Co. only when such employees reside in the Canal Zone.

For the past 5 years the average daily attendance has been as follows:
REPORT OF GOVERNOR OF THE PANAMA CANAL 97

exigencies of the war period, was continued. Eni-ollments were

affected somewhat by students vohmteering for service in the armed

forces and by the extension of the Selective Service Act to the Canal

Zone. During the year 26 high-school students and 21 junior-college

students left school to join the armed forces. Canal Zone white children continued to achieve above, and colored

children below. United States norms provided for the standard tests used in the schools. In grades 2 to 8, on the basis of standard achievements tests administered, the average white pupil was 10.7 school

months above and the average colored pupil was 6.2 school months

below the average child of the United States. In the white high

schools the median pupil scored at the sixty-second percentile on norms provided for the tests whereas in 1943 the median Canal Zone

white high school pupil scored at the sixty-ninth percentile.

PLAYGROUND SECTION

The activities of the playground section, in addition to the physical

and athletic curricula of the schools, include supervised play and

recreational activities for the employees of the Canal Zone and for

military and naval personnel stationed on the Isthmus. This section,

maintained by appropriated funds, promotes and supervises such

activities as physical education, playground activities, baseball,

basketball, handball, football, tennis, boxing, fencing, archery,

athletic meets, and other phases of recreational activity.

The appropriation for playground activities covers the salaries of

physical directors and dhectresses, kindergarten teachers, and playground attendants, and also provides funds for the maintenance of

playgrounds, playsheds, baseball and softball diamonds, tennis courts,

running tracks, and similar facilities, and for the purchase of playground and physical education equipment. Some of the recreational

activities are partially self-supporting, but they cannot be made

wholly so without greatly curtailing their scope and thus lessening the

benefits now being derived thi'ough their more extensive use. In addition to the physical education program, the physical in- structors and other personnel employed in the playground section

conduct kindergartens for children of Government employees and

furnish active leadership and guidance to such organizations as the

Boy Scouts, Girl Scouts, Sea Scouts, etc. The recreational facilities provided by the playground section are used extensively, not only by the civilian employees and theii' families,

but also by the United States defense forces stationed on the Isthmus.

Practically all facilities are now utilized to their capacity at all times.

The cost of these physical and recreational facilities is more than repaid

in increased efficiency and morale of the organization and in improved
98 REPORT OF GOVERNOR OF THE PANAMA CANAL

general welfare and health of the entire Canal Zone population.

There is ample justificaion for the continuation of reasonable expenditures such as have been made in the past.

POSTAL SYSTEM

Eleven post offices were in operation by the Canal Zone Postal

System at the end of the fiscal year 1944, as compared with 12 at the end of 1943. A new post office was opened at Curundu on September 1, 1943; while the post office at Camp Chiva was closed on May 31, 1944, and the one at Chagres (located in the silver section

of Gatun) on June 30, 1944.

Operations for the past year are summarized and compared with

the two previous years in the following table:
REPORT OF GOVERNOR OF THE PANAMA CANAL 99

effect a saving of $6,000 a month to the Canal Zone Postal System,

but this is insufficient to cover local expenses of handling air mail.

The rate of $4.45 a pound is still greatly in excess of actual trans- portation payments made to commercial airlines by the United

States Post Office Department for handling Canal Zone air mail. The

system will continue to show a deficit from operations, unless a

further substantial reduction is made in the air-mail transportation

rate of $4.45 a pound or unless the bulk of postal business reverts from

air mail to regular mail.

Statistics relative to the operation of the Canal Zone Postal System

for the past three fiscal years are covered in the following table:

Registered and insured articles dispatched:

Official letters and parcels registered free Foreign registered letters Foreign registered parcels Domestic registered letters. Domestic registered parcels Insured parcels Total registered and insured articles dispatched

Registered and insured articles received: Registered articles Insured parcels Foreign parcel post Total registered and insured articles received... Dispatches of mail by steamer—Cristobal: Dispatches made to the United States Dispatches made to foreign countries Total dispatches made byjsteamer

Dispatches received from United States Dispatches received from foreign countries Total dispatches received by steamer

Dispatches of mail by steamer—Balboa: Total dispatches made -. Total dispatches received Dispatches of mail by air—Balboa: Total dispatches made

Total dispatches received -

1944

57, 930

46, 400

194

27, 878

534

11,054

143, 990

85, 655

49, 026

1,974

108

747

855

119 522

666

838

13, 887

14, 271

73, 690

67, 100 218

32, 016

250

10, 755

184, 029

119, 120

81, 256 2,077

81 490

571

439

745

16, 633

14, 896

78, 038

52, 950 440

51, 993

147

18, 748

202, 316

157, 223

171, 779 2,860

331, 862

266

1,131

1,397 339

883

1, 105

1, 106

1,5, 181 11,519 IMMIGRATION VISAS

During the fiscal year 1944, 193 visas were issued by the executive

secretary to alien residents of the Canal Zone traveling to the United

States. Of these, 19 were quota immigration visas; 112 were non- quota immigration visas; 57 were nonimmigrant visas; and 5 were

transit certificates. Fees collected for visas amounted to $1,330.00.

RELATIONS WITH THE REPUBLIC OF PANAMA

During the year, correspondence and discussions were conducted

between the Governments of the Canal Zone and the Kepublic of Panama with reference to various matters of local joint interest
100 REPORT OF GOVERNOR OF THE PANAMA CANAL

arising from the relations of the two Governments and the proximity

of their respective areas. The estabhshment by the Panamanian

Government in the Ministry of Foreign Relations of a Department of Relations with the Canal Zone, in charge of Mr. Eduardo Valdes, has

been of great assistance in the prompt and efficient handling of these matters. CUSTOMS

Since the entrance of the United States into war, the Bureau of

Customs of the Canal Zone has been charged with responsibility for

the enforcement of the many additional restrictions placed upon

travel and the movement of cargo, mail, and currency. It has also been assigned the duties of enforcement in the Canal Zone of many

restrictions which in the United States are handled by the Department

of the Treasury.

The following is a statistical summary of the more important items

regularly handled by the customs during the past fiscal year, with

corresponding figures for the two preceding years:

Item
REPORT OF GOVERNOR OP THE PANAMA CANAL 101

missioners. The migos, moneys, and effects of three American

seamen, two of whom died in the Canal Zone and the other at sea, were handled by the shipping commissioner, and remitted to the

proper courts in the United States for disposition.

ADMINISTRATION OF ESTATES

The public admmistrator takes charge of all estates within the

Canal Zone which require administration and are not handled by

others legally entitled to administer them. In the case of estates with total assets exceeding $1,000 in value, the public administrator

charges the regular commissions fixed by law, which are paid into the

Treasury of the United States. Commissions amounting to $3,409 were collected during the fiscal year. The estates of 321 deceased or insane persons, with cash assets of $79,057, were settled during the

fiscal year. FOREIGN CORPORATIONS

Foreign corporations doing business in the Canal Zone are required

to secure licenses, and 120 such corporations, the majority of which

were steamship Imes, steamship agencies, and Government contractors, were licensed during the fiscal year 1944. Fees amounting

to $1,200 were collected. INSURANCE

The license fee for insurance companies doing business in the Canal

Zone is $10 per year plus a tax of IK percent on premiums collected.

At the end of the fiscal year 20 insurance companies were licensed to write insurance in the Canal Zone. Life-insurance companies reported

that as of December 31, 1942, a total of 1,629 policies were in force.' Durmg the calendar year 1943, 223 policies were issued and 98 canceled, leaving 1,754, having an aggregate face value of $6,295,007 in

force as of December 31, 1943. Premium collections on life-insurance

policies during the calendar year 1943 totaled $224,557.

During the calendar year 1943 the premiums received by miscellaneous insurance companies, including accident, automobile

liability, fire, surety, fidelity, etc., but excluding life insurance,

amounted to $542,772. Losses paid durmg the year totaled $184,266.

The tax of l}i percent on premiums by all classes of insurance

companies amounted to $12,355 for the calendar year 1943, as compared with $15,326 during the previous year. LICENSES

The number of motor-vehicle licenses and transfers during each of

the past 3 years and the aggregate fees collected therefor are sum-
102 REPORT OF GOVERNOR OF THE PANAMA CANAL

marized below. These include licenses for official vehicles for which

no charge is made:

Vehicle licenses issued

Motor vehicle transfers Total

Fees collected

Fiscal year

16, 753 7,213

23, 966

$94, 789

20, 235 9,512

29, 747

$103, 741

1942

25, 696

34, 542

$121, 501

In addition to the vehicle licenses covered above, several other types

of licenses were issued, such as chauffeur's licenses, peddler licenses,

etc. SELECTIVE SERVICE REGISTRATION

By virtue of the President's proclamation of October 26, 1943, registration for selective service was required of male citizens of the United

States outside the continental United States, Alaska, Hawaii, and

Puerto Rico, who had not previously registered for selective service

and who had attained on December 31, 1943, or thereafter attamed

their eighteenth birthday but had not attained their forty-fifth

birthday. Registration of persons from 18 to 44 years of age was

required to be accomplished during the period November 16 to December 31, 1943.

The executive secretary of The Panama Canal, was designated

chief registrar and was charged with the responsibility of carrying

out selective-service registration in the Canal Zone.

Two main registration offices were established at Balboa and

Cristobal. Registration facilities were also provided in certain industrial areas and for the civilian employees of the United States Army,

the United States Navy, and Government contractors residing in isolated communities. A total of 2,993 persons were registered

during the period November 16 to December 31, most of the registrations being accomplished during the first week. Facilities continue

for the registration of Canal Zone residents as they attain their

eighteenth birthday.

RATIONING PROGRAM

The general administration of the rationing program in the Canal

Zone is conducted by the Canal Zone Rationing Board, which handles

tires, automobik's, and bicycles, and by the Canal Zone Gasoline

Rationing Board, which handles matters pertaining to gasoline.

Each board has three members representing, respectively. The Panama

Canal, the United States Army, and the United States Navy.
REPORT OF GOVERNOR OF THE PANAMA CANAL 103

During the fiscal year the following gasoline rations were issued:

Automobiles:

Basic A books 13, 054

Supplemental B books : 1, 064

Motorcycles

Basic E books 456

Supplemental E books 1 Nonhighway E books 276

Certificates of authority to acquire gasoline 277 At the close of the fiscal year, 8,096 A books and 335 B books for passenger automobiles were in effect. A total of 960 applications for supplemental gasoline rations were received, of which 858 were approved and 102 rejected.

The following statistics summarize the rationing of other articles during the year:

Passenger car tires {new, obsolete and used) 5,245

Truck and tractor tires 3 ,006

Passenger car and truck recaps 5 ,192

Tubes authorized 4,207

Automobile certificates issued 1 Bicycle certificates issued 239

The rationing of typewriters was discontinued by the Office of Price

Administration effective April 22, 1944.

COMMERCIAL AVIATION

After the entry of the United States into the war, commercial

aviation activities were transferred, at the request of the United States

Army, from the Atlantic side of the Isthmus to the Pacific side. These activities have continued to be centered on the Pacific side

with the exception of a temporary seaplane service which, because

of operational difficulties and increased unit capacity was operated

during the last 6 months of the fiscal year 1944 between Cristobal

(on the Atlantic side of the Isthmus) and Miami, Fla. A new service between the Canal Zone and New Orleans was

established during the early part of the fiscal year 1944. The net

effect of this new service was merely a redistribution of the former

available passenger accommodations. The air carrier involved was

required to distribute its four-engine equipment between two separate

routes now existing, instead of the one which existed prior to the

establishment of this service. No actual increase resulted in the

available seats between the Canal Zone and the United States. The new Canal Zone Air Terminal and its appurtenances, adjoining

Albrook Field, constructed by the Corps of Engineers, United States

Army, was turned over to The Panama Canal for operation during

the early part of the fiscal year.
104 REPORT OF GOVERNOR OF THE PANAMA CANAL

Tabulated below is a statistical summary of commercial aviation

activities in the Canal Zone for the fiscal year 1944 as compared with

1943, 1942, 1941, and 1940:

A'umber of passengers carried by regularly scheduled airlines
SECTION V

FINANCIAL AND STATISTICAL STATEMENTS

Financial statements of major interest relative to the operation of

The Panama Canal are presented in this section. These statements

are abstracted from the annual report of the accounting department

of The Panama Canal.

ACCOUNTING SYSTEM

Accounts are maintained in accordance with statutory rules and

regulations and accepted principles of appropriation and fund accounting prescribed for governmental bodies. However, the activities

being of a quasi-business nature, the accounting system has been

adapted to conform as nearly as practicable to the principles and

practices approved by the Interstate Commerce Commission and

State boards regulating public utilities as well as to procedures followed

by comparable industries in the corporate field. For purposes of evaluating the investment, July 12, 1920, the

date on which the Canal was formally declared open to commercial

traffic by Presidential proclamation, was fixed as the close of the construction and development period of the Panama Canal.

Interest on the United States Treasury funds advanced up to July

12, 1920, amounting to $128,991,063; the treaty payment of

$10,000,000 to the Republic of Panama in 1904, and the annual

treaty payment aggregating $2,000,000 to the Republic of Panama

from 1913 to 1920 are considered as being construction cost and are so

reflected in the capital investment account. Additions to the capital

investment account are made from time to time by the inclusion of the cost of new capital additions ; deductions are made of the amounts

of assets withdrawn through sale and retirement of depreciated items.

Obligations for treaty payments of $250,000 annually to the

Republic of Panama are reflected in the operating accounts beginning

with the fiscal year 1921. A pjrovision in the Treaty of 1936 with the

Republic of Panama increased the annual payments to $430,000,

retroactive to the fiscal year 1934, and operating accounts have been

adjusted to reflect the increase payment.

Depreciation of depreciable property and equipment is charged to operations at accepted rates, the amounts so charged being accrued

in offsetting valuation or depreciation reserve accounts. Using

account balances as of the beginning of the fiscal year, accrued depre683299—46 8 105
106 REPORT OF GOVERNOR OF THE PANAMA CANAL

ciation is deducted from gross capital to establish the investment

upon which interest return is calculated.

Subsequent to the fiscal year 1920, a potential capital interest re- turn of 3 percent has been considered as an unrecorded charge to ex- penses in determining computed surplus or deficit, while net revenues

before interest charges have been used to calculate the actual rate of return on net capital investment.

Based on the foregoing, the gross capital investment at the beginning

of the fiscal year 1944 was $688,551,762.17 which, after deducting

depreciation of $43,725,109.16, and Canal defense property and

additional facihtics (Third Locks) amounting to $128,706,472.10, leaves a net capital investment of $516,120,180.91, There was a net deficit of $6,920,924.81 from operations of the Canal and a net revenue of

$1,553,294.06 from business operations, or a combined net deficit of

$5,367,630.75.

OPERATIONS OF THE PANAMA RAILROAD COMPANY

The results from the operations of the railroad proper and its various

business units on the Isthmus are shown in detail in the accounts of

the Panama Railroad Co. The detailed statement of revenue, ex- penses, and statistics for all railroad industries, changes in the capital

account, and the results from operations of the steamship line appear

in the annual report of the Panama Railroad Co. A review of these

activities is presented in section II of this report under the heading

"Business operations under the Panama Railroad Co."

PANAMA CANAL OPERATIONS

The major financial results of Panama Canal operations are pre- sented hereinafter in tables Nos. 1 to 28, with supplementary comments

and explanations.

The following is a list of all of the tables and bureau reports contained

in the annual report of the accounting department. The tables and

reports Nos. 29 to 58, inclusive, are not printed because they are con- cerned principally with details of operations which lack general interest, and their publication would be an unwarranted expense. The

complete report for the accounting department, as well as those of

the other departments and divisions, is on file at the office of the Governor or at the Washington Office of The Panama Canal. For purpose

of reference, the complete list of tables and reports for the accounting

department is printed below. Following the list are presented the

major tables, Nos, 1 to 28 inclusive, with various notes of explanation.
REPORT OF GOVERNOR OF THE PANAMA CANAL 107

INDEX TO TABLES

Table No.

1. General balance sheet.

2. Canal general property.

3. Floating plant.

4. Business fixed property.

5. Business equipment.

6. Capital assets, depreciable and nondepreciable.

7. Public works, Republic of Panama.

8. Cash receipts and disbursements, appropriated funds.

9. Cash receipts and disbursements, custodial funds.

10. Accounts receivable registered and outstanding.

11. Stores (material and supplies).

12. Work in progress.

13. Deferred charges,

14. Capital investment.

15. Accounts payable.

16. Depreciation reserves.

17. Reserve for repairs.

18. Reserve for leave.

19. Deferred credits. 20. Income, expenses, and net revenues (current).

21. Revenues, expenses, and computed surplus.

22. Capital refundments (miscellaneous receipts and Canal appropriations).

23. Balance of revenues and refundments.

Details of Operation for Profit and Loss

[Summaries on tables 20 and 21] 24. Canal revenues.

25. Canal earnings, expenses, and net expenses.

26. Business expenses, revenues, and profit or loss. Miscellaneous

27. Balances in appropriation and fund accounts.

28. Funded reserves. Addenda Not Published

29. Cost of dredging.

30. Cost of electric current.

31. Cost of water.

32. Postal service—Revenues, expenses, and surplus.

33. Postal service—Money-order funds balance sheet.

34. Postal service—Money orders issued and paid, 1907 to 1944, inclusive.

35. Clubhouse, postal money order and savings funds.

36. Panama Canal clubhouses—Balance sheet.

37. Panama Canal clubhouses—Income and expenditures.

38. Audited Isthmus pay rolls. 39. Pay-roll deductions.

40. War Savings bond sales—Pay-roll deductions and cash.

41. Silver quarters statistics. 42. Health department bills and miscellaneous bills. 43. Recapitulation of pay-roll deductions (silver employees).

44. Rent collections (gold quarters) from nonemployees.
108 REPORT OF GOVERNOR OF THE PANAMA CANAL

Addenda Not Published—Continued

Table No.

45. Commissary coupons issued, sold, and honored.

46. Accounts payable registered—Panama Canal.

47. Accounts payable registered—Panama Railroad.

48. Personal injury claims.

49. Injuries and deaths, Panama Canal and Panama Railroad.

50. Injuries and deaths—Payments under various acts. 51. Damages to vessels.

52. Freight and cargo claims.

53. Shipments under "Government Losses in Shipment" Act.

54. Report of Canal accounting bureau.

55. Report of Railroad accounting bureau.

. 56. Report of commissary accounting bureau.

57. Report of claims bureau.

58. Report of pay-roll section, claims bureau.

59. Report of auditing bureau.

60. Report of coupon accounting bureau.

61. Report of general bureau (mail, files, and employees' bonds).

62. Report of inspection bureau.

Table No. 1.

General balance sheet, June 30, 1944

ASSETS

Capital assets: Canal general property (table No. 2)... $499, 438, 393. 76 Floating plant (table No. 3) 9, 750, 190. 12 Canal defense property 66, 575, 181. 74

Additional facilities (third set locks) _.. 73, 368, 963. 55

Business fixed property (table No. 4)__ 42, 039, 681. 55 Business equipment (table No. 5) 4, 910, 887. 76

Total capital assets (table No. 6) $696, 083, 298. 48 Reimbursable capital expenditures: Public Works, Republic

of Panama (table No. 7) 754, 384. 01 Custodial funds:

Special deposit funds: Clubhouse funds $1, 193, 292. 02

Money-order funds 9, 635, 226. 58 War Savings bonds funds 49, 708. 91 Security deposit funds 2, 328, 772. 77

Total special deposit funds (see contra) $13, 207, 000. 28 Revenue due U. S. Treasury. 183, 016. 35

Total custodial funds (table No. 9) 13, 390, 016. 63 Working assets: Appropriated funds

With U. S. Treasury $21, 788, 593. 51 With fiscal ofl^cers 11, 461, 826. 37

Total appropriated funds (table No. 8) 33, 250, 419. 88
REPORT OF GOVERNOR OF THE PANAMA CANAL 109

Table No. 1.

General balance sheet, June SO, 1944—Continued

ASSETS—Continued

Working assets—Continued

Accounts receivable (table No. 10) $4, 988, 049. 74

Stores (table No. 11) 10, 834, 535. 84

" Work in progress (table No. 12) 1, 345, 858. 68

Total working assets .$17, 168, 444. 26

Deferred charges (table No. 13) 1, 937, 623. 43

Total assets 762, 584, 186. 69 LIABILITIES

Capital investment:

Net appropriations by Congress $572, 541, 619. 49

Interest during construction 128, 991, 063. 00

Total capital investment (table No. 14) $701, 532, 682. 49

Special deposit accounts (see contra) 13, 207, 000. 28 Accounts payable (table No. 15) 3, 813, 969. 21 Reserve for repairs (table No. 17) 445, 615. 64 Reserve for leave (table No. 18) 2, 858, 648. 84

Deferred credits (table No. 19) 4,492, 760. 78 Revenues and refundments

Net revenues to June 30, 1943 $280, 006, 071. 46

Prior years' adjustment (table No. 32).

_

59, 127. 21

Net revenues to June 30, 1943, as adjusted 280,065, 198. 67 Operating deficit fiscal year 1944 (table No. 20) 5,367,630. 75

Total net revenues (table No. 21) 274, 697, 567. 92 Canal depreciation (table No. 16) 26, 627, 656. 01 Plant depreciation (table No. 16) 19, 109, 549. 56

Total 320,434,773. 49

Less capital refundments (table No. 22) . 284, 201, 264. 04

Balance revenues and refundments (table No. 23) 36, 233, 509. 45

Total liabilities 762,584, 186. 69 The terms and arrangement of the foregoing balance sheet follow

closely the generally accepted principles of corporate accounting, ex- cept as to the last item "Revenues and refundments." The statutes require that receipts for tolls, civil revenues, and net profits on business

operations shall be covered into the United States Treasury, and

relinquished from control of The Panama Canal.

Funds for current operating expenses and capita] construction are appropriated by the Congress, and for accounting purposes are con-
110 REPORT OF GOVERNOR OF THE PANAMA CANAL

sidered as provided from the tolls and other receipts covered into the

Treasury. Practically all receipts other than those cited above are repayable to Canal appropriations, and may be reexpended, but as the

Canal is deprived of tolls revenue, its principal source of income, the

reexpendable receipts are insufficient to provide for operation and

maintenance, thus requiring the Canal to submit its expenditure program annually to the Congress.

Total net revenues, appearing under the caption "Revenues and

refundments," represent the accumulated operating earnings of the

Panama Canal before capital interest charges. This net revenue, however, has been covered into the United States Treasury in the form

of tolls and other receipts. It therefore follows that net capital re- fundments and net revenues earned will always be approximately the

same, except for the fluctuation of unexpended appropriated cash and

other working capital items.

These various fund requirements leave The Panama Canal balance

sheet without an equivalent for the usual corporate "Surplus ac- count," since any surplus is included in the tolls covered into the

Treasury, by law. However, the equivalent for "Surplus account" is shown on table No. 21, which compares "Total net revenues" of

$274,697,567.92, appearing on the balance sheet, with the computed

interest on the net capital investment, by fiscal years, beginning with

1921, but no interest charge against the Canal is actually made by the

United States Treasury.

Table No. 2.Canal general property, fiscal year 1944
REPORT OF GOVERNOR OF THE PANAMA CANAL 111

Table No. 2.

Canal general property, fiscal year 1944—Continued
112 REPORT OF GO\TERNOR OF THE PANAMA CANAL

Table No. 2.Canal general property, fiscal year 1944—Continued
REPORT OF GOVERNOR OF THE PANAMA CANAL 113

Table No. 4.

Business fixed property, fiscal year 1944
114 REPORT or GOVERNOR OF THE PANAMA CANAL

Table No. 4.Bvsiness fixed properly, fiscal year 1944'—Continued

Building division ._ Gold quarters. . New quarters: Ancon

Balboa

Corozal Furniture

Alterations and improvements

Transferred to silver quarters (Gatun)

Old quarters retired

Ancon (demolished) Ancon (sold) Cristobal (demolished)

Silver quarters

Alterations and improvements

Conversion Army buildings, Paraiso Transferred from gold quarter (Gatun)... Old quarters retired: Cristobal Gatun La Boca.

District quartermasters' supplies Clubhouse business structures Ancon Theater, old (retired) Total, business fixed property

Balance July 1, 1943

$83. 018. 21

14, 430, 421. 22

1, 419, 360. 43

48, 480. 69

783, 759. 80

41, 534, 449, 14

Additions and transfers

$2, 463. 51

100, 658. 70 2.60

38, 638. 50

47, 619. 12

15, 295. GO

8, 435. 48

72, 891. 68

901, 564. 43

Retirements and transfers

$42, 564. 68

72, 891. 68

1, 400. 00

• 1,100.00

3, 600. 00

100.00 800.00

100. 00

16, 302. 62

396. 332. 02

Balance .June

30, 1944

83, 018. 21 $14, 498, 247. 29

1, 514, 982. 59

48, 480. 69

767, 457. 18

42.039,681.55

Table No. 5.

Business equipment, fiscal year 1944

Electric power system

Electric work

Municipal work

Mechanical shops

General storehouses _ Mot or transportation Mot or car repair shops Building division Panama Canal Press

District quartermasters' supplies Total, business equipment.

Balance July 1, 1943

$328, 682. 90

9,981.85

467, 222. 67

2, 372, 834. 36

168, 241. 55 1,210,214.79

51,819.97

172, 184. 69

130, 397. 73

2, 500. 92 4,914,081.43

Additions and transfers

241,741.59

Retirements and transfers
REPORT OF GOVERNOR OF THE PANAMA CANAL 115

Table No. 6.Capital assets, depreciable and nondepreciable, fiscal year 1944—Con.

Canal general property—Continued

Dispensaries Palo Seco Colony

Quarantine stations Other health department buildings Playgrounds

Post offices -- Schoolhouses

Fire stations. Police stations Prisons Courthouses Other buildings and structures. Permanent townsites Roads, streets, and sidewalks Sewer system

Street-lighting system^

Interest during construction period

Total, Canal General Property (table No. 2).. Floating plant (table No. 3) Canal defense property (incomplete) Construction, additional facilities (incomplete) Business fixed property (table No. 4) Business equipment (table No. 5) Total, capital assets.

Depreciable

$284,

187,

()5, 130, 272,

. 238,

2, 577,

121, 284,

57, 187, 635,

308. 27

183. 66

392. 70

720. 64

683. 87

468. 34

266. 11 749. 77

387. 98 871.45

732. 73 446.91

106, 855, 931. 78

9, 750, 190. 12

42, 039, 681. 55

4, 910, 887. 76

Nondepreciable

$2, 226, 482. 64

5, 781, 987. 20

910, 866. 01

239, 672. 06

128, 991, 063. 00

392, 582, 461. 98

66, 575, 181. 74

73, 368, 963. 55

Balance June 30, 1944

163,556,691.21 532, 528. 607. 27

$284,

187,

65, 130, 272,

238,

2, 577,

121, 284,

57, 187, 635,

2, 226, 5,781,

910,

239, 128,991,

308. 27

183. 66

392. 70

720. 64

683. 87

468. 34

266. 11 749. 77

387. 98

871.45

732. 73

446. 91

482. 64 987.20

866. 01

672. 06

063. 00

499, 438, 393. 76

9, 750, 190. 12

66, 575, 181. 74

73, 368, 963. 55

42, 039, 681. 55

4, 910, 887. 76

696, 083, 298. 48

1 Channels, harbors, basins, breakwaters, and municipal assets are maintained at original values from

current operating expenses. Other nondepreciable property includes excavation and earth fills at locks, dams, and dry docks, and earth saddles at Madden Dam; also certain projects which were incomplete at the close of the fiscal year. Table No. 7.

Public works in cities of Panama and Colon, fiscal year 1944
116 REPORT OF GOVERNOR OF THE PANAMA CANAL

Table No. 7.

Public works in cities of Panama and Colon, fiscal year 1944—

Continued
REPORT OF GOVERNOR OF THE PANAMA CANAL 117

^ . (-,1—1

Ol CO 1^ Oi -^ QO CO OOOCMM

Tj' C^ O -H .-H 00 » Tf fC O CO CO __. _5»ooioao osoocooi-H COOi(NOiOiOC^ COTr<£.GOt^

t^

»-< rt<

Tt< t^»c

CO O 00 O OO »o o »o O OO

^•4* Oc^ CO

CO CO

r- O 00 »o OO

»0 o o o OO O C^ O O »0 00 oo

00 "-T CO GO O ':OOi oT »o CO <** CI 05 00 lO -^ -^ (M

<M »0 ^ CD i--»

00 05 O CO Tj< ^OSO IM r-H Oi r-J CO 00 .-H —< t^C^ b-O

COOi OiM O

W OO O ^ »0 r-H rlCM

CO 1—I IC O ^-co ooa>

CS 00 Tt* ^

Oi-HCOOO

CO i-H

Tt< (N (^ O •**< OOOC^C^J »-H OOC^COi-I

C^ CO OOOOi

CO W t^ CO o

T-Tio odio o O T-H 00 -^ I-H

-J'^.

CO OOCO C^ C^I t- O O CO O (N O Tt< CO O CO CO

op OOOCOOl -—

•^ CO -^ CO 00 CO

lo' occ'oo"tCo

r-i OOCOtMC^

00 Oi O CO 0(N

05 -^ CO O CO* CO

CO Oi 00 CO O >—

iO CO Tf CO 00 CO

Oi o CO 00 r^ o CD 00 00 ^ -^

o

5? c« 5£S ' St3~ " c a

c8 g 5 a Pi ri: =3

o

S — 3

03 9 2? o '-^ -2 9 o

a p ^ o 3 I .9>>>.

t- 03 M— o

s ^o

o

" go

C3 03 PhS

-03 2 o

gog gggo

sis S8SS

^* •-' cj »o «o o o O QO (N >0 »0 .-H CO

OO

OOO o OO

OOO

—< too t^ 1

* g a

a 03 s 03 a S — o. C 03 03 O C3 C3

So W!--i3 O "S-" "5 Of mO

a a>r^ o <^ - w be w Cm o

^ t^ *c303i2p;z;S

S S £ M "^ C3 >- "O goHoo=;~;B

S .Em'-'03Mo

oj H y— " '^ " "-5

03 O > O p3

•i: "

;g2

OOO CO COtj«CO

1^ OS CO

CO t^ .-( GOio'tC cDiO r^ Oi Tt^ CD

lo'co't-T CO

O)

iN

-^ , 03

03 a g 5

O 03 03 •2&-E «

trt - 03 ^ gga <p

0) H c3 ^J

a>

t^ a m -^ O^ a Jr' a _- "r: =

•3a> «^
118 REPORT OF GOVERNOR OF THE PANAMA CANAL

^c^ ooo Oi ^ OOO

oi ^ O O-^ t^iO O 00 t^ t-* CD r- o ^irT o -^ ^'' OC^ O 00 uo

1— -i^ -(f CD CO

Tt< Oi OS (N O

00 r^ 00 Oi o W t^ CO Ol ^

eooo OOO

OCS '-'

»C CO o * c^ O •-' 00 Oi ^

CD CO ^* Oi CC

t-- .—' CO t^ ^

-rf oi CO r- CO OS CD <N -^ »0 CO OCVI 0(M

(N t^ t^ ^ Tf

CD CO

OO O OO ooo

O OO o o o o o o O O •-' oco—*ic" o O »C -^ iO o t^ O "^ CO c^

Ot^ OO o oco ooo

oos ocJ-^ O lO oooo O 1-^ CD t^ CO u^^ O '^'<*^ lo o ooo lO

O OC^ lO CO t^-^o c^ o

lO CD oi OS OO

1-" CO 00 OS 1^

CD "^ CO OS OS t-T-'^i^t^co

CM O O O 00 o ^ o t^ *o OCM i-H

UO CD O -^ C^ o^ooos —

CO CO '** OS CO

t- r^ror- —

"^ OS lO t- CD oTco --H co"»o CD lO 00 '<*' <N lOcOfN Ir-Cl o^"

'^OO'JtiOO

CO CS »0<N »0

i-H 1—r coos O t^ b- -^t* OS r^

b- lO o o o

coco --« cocs

»o o r^os o 1:^ CD <N O 1—

OOOCO '^ t^ CO rt« CO OSCO

CO CO -^ '** Os' t— OS CO O lO CD t- o t^ rCO O t^ CO o oscocs r- 1-H

o»^ ooo OO

O f-H O '<*<'** lO O 00 lO CO ^ Tf CD CO

be fl

5.S

ooo t^o»o

COCD-^OtJ* ^Oi O OCD

t^ »-. lO OS 00 O'—'o^-^'co O Id —I 1—( M

»C OO t~* O lO

Tf CO ^ o -^

c<i OS o ic cd' o w o t-- >o 00^ »o ooo

CD ^

oT s

a

I oa

1 <

o . w m Is

o c E S' '^ N o rt .Si's "^ a- c: f; 13 g

a-^ wS ®

w o a g -3 o

•d .2 a 2 ° 2 § b' 2 O. u.

22 S o cfl

:o

aOn

S-Sa

M " t3

_:o.

(i(

e«SaCu

a o: 2 c8 a> - - goS

a 03 c3 42--e8 o plh a *" o a cet«3 o

~< — *j a^

S 2 a a-g gog -^

a - t-T! « 9 S «

a.2 >.a

CI, C1.0S

ax!

ce « 5 ^ a o" 3

03

ti €^ c6

s —

icO a 5

iC 05 cd S

<N a c^ a

-•^ I i

.a « f, -a S5Ph^

>'e3*j" a o a t.*.? S..2-<.5

.S a-^

xr-e o-a

"> 03 03 „- » c

a.S o -J ^

fH ^

20

=^03 si

pq

So a a

.S a a_h o m a o a "= a

Q
REPORT OF GOVERNOR OF THE PANAMA CANAL 119

• <£i(N OO^C

t^ ^" O (TO OC lO CO ^ 00 O CO t-

< O (TO OC lO CO Ol C

D CO r-H lO OS 1-H Ol 00 oo

; lO O r>- -^ C^ CO »o t^ o S CO GO fC 05 CN CO o I 00 (M (N ^ CO CO rj.

ec CO M t-* r-( 00 ^ CO c^ 00

--H O O 00 Tt* CO CO CO o o

Tiji Tf o CO 00 CO <iO Oi ty^ Oi CD CO OO r^ CO Oi OC TT Cfi 00

CO iC CO I>- to CO i--« Oi 00 CO coioor^Tfco co»ot^o

Oi CO 00 00 00 C^l CD cO

t-H 00 CM CO .-I coco CO

OCOOOh-1-HO 1-H CD (N 00

CO 'Tp CO ^ -^ y-i CO CO O O

t- 00 (N Oi 00 O COC5CO<M O --H .-I no CO CD 00 '^ Oi 00

CO CD t-- CO »0 CSI 1—' OS OO CO *-(Trt^co"^os co»oi>.o ^ O -^ 00 »0 CS CD CD ^ CO IM CO Ol coco CO

1^ 05 t^ CD CO 00 to

i-H Tj< CO ^ I> »0 CO »0 O r-t »O00Ot^W00cD 00-^00 tOI-^t^00»OOt'- OCCr-H O 00 O t- »0 to 05 00 00 Oi

) Tt" CO W 00 to c

I^ Tt* Tt^ Oi O 00 OS

to 00 O f- O to CO

CO CO t^* CD O oo' O 00 (N CO CD O 0I- •—I t^ O O to O

to ^''rjJ ^^ OCD*" O

o to CO r^ CO

CD CD CO CO t^

o6 '*' CO o cs CD to CO CS to o r* CO t^ to

oo" to" oToT to

-^ ^ CO 00 t^CO to o

o OS r^ to

00 CN CO on

O CO t^ CO CO

cs to i-H CO rCD o i>^ CO* cm' OS 00 CO CM to GO CO CO CM to

OS .—I Tt< i-<

CD OS O -^ CD to O-M

to* 00 *' 00 O OCD 1-1 OS 00 00 OS

00 -rf-CO -^

'^ to CM CO

OS ,-( T—1 1-H

^ OS o-^ ''J^ to O 1-1 O CO -tJh'oO OS O CO 1-H O GO 00 OS O" -^ CO Tt'' t^ tO CM CO

u

1

! o ^

• •

; fto

"? ! >*^

S a « a

S fc- r1 fl (£ a§^

2

*-" ca o

'*^ w"— '^

tuj 4) ^ t- .SgS£

O c6

CO O Tt< o 00 CO CD CO

CD "0 t^ r^ lO -^CD -H CO 02 o^ -^ cvfoof * lO CO CO

-'^, js-a-s^g <S S C fi Oh « a5«5„-f^

^ -3— e CO* C ca 2 c8 S S (2a§'s=si3

a g ^ m XJ o C3

£ g c o tc S O tH COS) c O C3 ON .a^.^g

a rS-oo.og

=3 9 fe cs-sg-2§5.2 3^

« c > M o. g 5

I^ -^ 00 ^

o

2

"^ Pc-i

>2 =^ 5

ftco o

>> QJ &

c«'~ 0! 3

fc. r- O C a 3 ^a

Ti 'ca'2'O

03 N G -H p^.3 a

_'0, ill

ar135 - .p^

a g rf, wT3 o 'o s Hcac3^a^a.,cc:r^ 2ggo^d§a|Sa

<5

s^

O Or

oN ca .-„^_„

goS^rcogcS^ga r^ -n':3o*^.o0^_2o

SSo<-.--n3a"SS S ffl ^—' is o '^ •" « o "S Sa>sg"8go a

i_,ca-HO»irtO^ ten Eh

o >

I. o

O tas

ft-? 3 5-
120 REPORT OF GOVERNOR OF THE PANAMA CANAL

Table No 9.

Custodial funds—Receipts and disbursements, fiscal year ended June SO, 1944

Disbursing clerk, Washington, D.C.

ACCOUNTABLE BALANCE

JULY 1, 1943 Revenue due U. S. Treasury

Secuiity deposits Clubhouse funds Monev-order funds War Savings bonds

funds.

$23, 210. 21

Total.- KECEIPTS Revenue due U. S. Treasury

Security deposits ... — Clubhouse funds Money-ord t funds War Savings bonds

funds..

Total. Total to be ac- counted for Transfer to U. S. Treasury:Clubhouse funds.... Money-order funds. War Savings bonds

funds

Total cash debits.. COVERED INTO THE

U. S. TREASURY

Revenue due U. S. Treasury

23, 210. 21

4, 502. 86 271,041.46

275, 544. 32

298, 754. 53

298, 754. 53

Paymaster, Canal Zone

$538, 394. 72

538, 394. 72

33.65

15,300,957.71

15,300,991.36

15,839,386.08

TRANSFERS AND

REFUNDS

Security deposits DISBURSEMENTS

Clubhouse funds Money-order funds War Savings bonds Funds

Total. ACCOUNTABLE BALANCE

JUNE 30, 1944 Revenue due U. S. Treasury -.. Security deposits Clubhouse funds Money-order funds War Savings bonds

funds -

4, 502. 86

238, 581. 33

60, 173. 20

Total..-- Total cash credits.60, 173. 20

Collector, Canal Zone

$106, 289. 71

1, 835, 315. 26

37, 741. 43

48, 231. 42 25.00

2, 027, 602. 82

5, 754, 198. 98

16, 906, 371. 82

5, 814, 224. 93

9, 449, 644. 91

1, 427, 634. 06

39, 352, 074. 705

41, 379, 677. 52

(5, 835. 763. 53)

(8, 999, 606. 45)

(1, 427, 634. 06)

15,839,386.08

33.65

15, 602, 325. 65

25,116,673.48

15, 602, 359. 30

237, 026. 78

237, 026. 78

298, 754. 53 15,839,386.08

Total

$100, 289. 71

2, 396, 920. 19 37,741.43 48,231.42

25.00

2, 689, 207. 75

5, 758, 735. 49

32, 478, 370. 99

5, 814, 224. 93

9, 449, 644. 91

1, 427, 634. 06

4, 928, 610. 38

57, 517, 818. 13

(5, 835, 763. 53)

(8, 999, 606. 45)

(1,427,634.06)

U. S. Treas- ury

$1,445,021.77

10, 200, 432. 70

70, 602. 95

11,716,057.42

101, 645. 61

101, 645. 61

11,817,703.03

Total

$106, 289. 71

2, 396, 920. 19

1, 482, 763. 20

10, 248, 6611

70, 627. 95

14, 305, 265. 17

5, 758, 735. 49

32, 478, 370. 99

5, 814, 224. 93

9, 551, 290. 52

1, 427, 634. 06

55, 030. 255. 99

69, 335, 521. 16

41,254,814.09 28, 080, 707. 07

5, 820, 425. 34

16, 710. 114. 29

5, 824, 961. 85

32, 546, 518. 41

438, 650. 00

22. 969, 189. 63

40, 063. 35

2,031,572.79

16, 202. 83

59, 619. 88 25.00

2, 147, 483. 85

25, 116, 673. 48

438, 650. 00

38, 810, 130. 26

40, 063. 35

2, 328, 772. 77

16, 202. 83

59, 619. 88 25.00

5, 835, 763. 53

8, 999, 606. 45

1, 427, 634. 06

6,103,696.11

9, 726, 078. 06

1, 448, 553. 10

17,278,327.2:

2, 444, 683. 83

41, 254, 814. 09

1,177,089.19

9, 575, 606. 70

49, 683. 91

9, 335, 521. 16

5, 824, 961. 85

32,546,518.41

6, 103, 696. 11

10, 164, 728. 06

1, 448, 553. 10

56, 088, 457. 53

10, 802, 379. 80

28, 080, 707. 07

40, 063. 35

2, 328, 772. 77

1, 193, 292. 02

9, 635, 226. 58

49, 708. 91

2 13, 247, 063. 63

9, 335, 521. 16

( ) Denotes deduction. . ^, „ ^ „t ^ ^ »or.n nnn

1 Includes $1,7,'JO,000 invested in U. S. Treasury Bonds; $3,500,000 in U. S. Treasury Notes; and $300,000

in War Savings bonds, total .$8,550,000, a decrease of $458,092.13 in U. S. Treasury Bonds; an increase of

$1 2r^) 000 in U. S. Treasury Notes, and $200,000 in War Savings bonds over the previous year, federal farm Loan Bonds in the amount of $290,262.26 were sold during the year.

2 Total per balance sheet, table No. 1, $13,390,016.63 includes $142,953 of bOls m process of collection.
REPORT OF GOVERNOR OF THE PANAMA CANAL 121

Custodial funds cover cash transactions which are controlled byseparate fiscal regulations from those which govern the expenditure of

appropriations made by Congress for maintenance and operation of

the Panama Canal.

Revenue due United States Treasury covers collections for deposit

as miscellaneous receipt of the United States Government which form

no part of the working cash of The Panama Canal, as these funds must

by law immediately be covered mto the United States Treasury and

relinquished from control of The Panama Canal. These collections

consist mainly of tolls, licenses, court fees and fines, and amortization

of public works in Panama and Colon.

Security deposits cover cash received by Canal fiscal officers from

banks, individuals, and companies to guarantee payment of bills rendered by The Panama Canal and the Panama Railroad Co., and to guarantee fulfillment of contracts. Disbursements of these funds

represent transfers to revenue due United States Treasury on this

table, collections repayable to appropriations on "the preceding table,

and the return of unexpended balances to depositors.

Special deposit funds cover certain activities conducted by the Canal

Zone Government separately from appropriations, principally postal

money order funds, and transactions of Panama Canal clubhouses

maintained exclusively for employees.

Table No. 10.

Accounts receivable REGISTERED DURING THE YEAR
122 REPORT or GOVERNOR OF THE PANAMA CANAL

The balance at the end of the fiscal year includes all accounts due

The Panama Canal except items of utility service, principally from

employees, which are not credited to earnings until collected usually

by pay-roll deductions.

Table No. 11.

Materials and supplies

Stock on hand, first of year: Balboa store

ISfedical store Administration building store Gambna store Cristobal store Locks store Fuel-oil plants Panama Canal Press Sand and eravel pile. Division stores Total stock card value Reserve for inventory adjustments Book value of stock on hand

Receipts of material: Purchases for stock Purchases for divisions Local production Book value of receipts Total charges to stock

Issues and sales of material:

Issues to business divisions

Issues to Canal divisions Variation in division stores Total issues Sales -- Total issues and sales... _ Stock on hand, end of year: Balboa store... Medical store .Administration building store Gamboa store. .-- Cristobal store .-. T,ocks store Fuel-oil plants Panama Canal Press Sand and eravel pile... Division stores Total stock card value Reserve for inventory adjustments Book value of stock on hand

Fiscal year 1944

958, 997. 40

560, 410. 13

71, 904. 91

006, 106. 86

824, 235. 49

667, 584. 51

70, 844. 65

277, 180. 75

90, 481. 72

972, 297. 08

14, 500, 043. 49

1, 065, 083. 16

13, 434, 960. 33

9, 908, 864. 50

1, 848, 082. 84 3,251,627.64

15, 008, 574. 98 28,443,535.31

8, 622. 245. 93

2, 460, 315. 16

(257, 032. 16)

10, 825, 528. 93

6, 783, 470. 54

17, 608, 999. 47

259, 265. 64

391, 934. 81 51,946.11

390, 336. 81 512,204.45

710, 644. 89 310,380.46

382, 774. 06

157,447.08 715,264.92

12, 882, 199. 23

2, 047, 663. 39

10, 834, 535. 84

Fiscal year 1943

$4,833,401.94

279, 093. 36

51, 493. 98

544, 798. 46

1,209,910.91

539, 676. 87

40, 4S4. 34

103, 188. 21

59, 6.38. 16

856, 668. 38

8, 518. 354. 61 407,946. 11 8,110,408.50

18, 494, 485. 40

5, 980, 808. 30

3, 787, 558. 29

28, 262, 851. 99

36, 373, 260. 49

14, 289, 525. 37

3, 867. 104. 20

(115,628.70) 18,041,000.87

4, 897, 299. 29

22, 938, 300. 16

8, 958, 997. 40

560, 410. 13

71, 904. 91

1, 006, 106. 85 1.824,235.49

667, 584. 51

70, 844. 65

277, 180. 75

90, 481. 72

972, 297. 08 14,500,043.49

1,065,083. 16

13, 434, 960. 33

In the foregoing table, the values of stock on hand at the beginning

and end of the year and receipts and issues of material are shown at invoiced cost plus a procurement surcharge to cover United States

inland freight, ocean freight, and purchase and inspection expense.
REPORT OF GOVERNOR OF THE PANAMA CANAL

Table No. 12.—Work in progress

123

Electrical division .. Municipal division.. Shops and drydociss. Building division Panama Canal Press Total

Fiscal year 1944

$2, 979. 22

2, 696. 62

1, 332, 388. 82 1,605,23

6, 188. 79 1,345,858.68

Fiscal year 1943

$2, 602. 87

5, 938. 94

1, 094, 138. 30

30. 630. 35 6,271.67

1, 139, 582 13

This account covers the amounts expended on uncompleted jobs,

and will ultimately be cleared to operating expenses of the division

indicated, with corresponding credits to their revenues after application of authorized surcharges.

Table No. 13.

Deferred charges

Fiscal year

1944

Fiscal year

1943

Health department

Office engineer

District quartermaster: Balboa

Cocoli

Cristobal Port captain, Cristobal. Dredging division Experimental gardens

General accounts, suspense

Electric power system

Electric work

Water system Municipal work

Shops and dry docks

Fuel-oil plants Motor transportation Building division Gold quarters

Silver quarters

District quartermasters' supplies. Public works: Panama

Colon

$8.31

3, 265,

4, 213,

2,2,9, 232,

1,

27.50

7.50

155. 75

718. 51 904.06

271.78

15.38 512.20

003. 00

583.15

054. 58

549.21

188.58 111.30

654,

523,

523. 87

246. 81 Total. 1,937,623.43

$16. 62

1,351.87

222, 527. 11

6, 057. 91

62, 371. 15

636. 52

13, 302. 88

4, 968. 31 47,661.45

294, 806. 73

1 , 099. 74

8, 466. 13

70, 875. 76

12. 500. 00 21,200.00 3,101.32

614,891.15

390, 304. 32 1,776,138.97

This account covers expenses incurred for account of divisions

indicated, but which are not chargeable to operating accounts of the

current year. These amounts are cleared as soon as values are consumed.

Table No. 14.

Capital invcshnent

Appropriations for Canal construction to June 30, 1921 (detail in annual report for 1924, table No. 3) $386, 910, 301. 00

Deduct value of capital stock of the Panama Railroad Co 7, 000, 000. 00

Net construction appropriations 379, 910, 301. 00 Annual payments to the Republic of Panama, 1913 to 1920

(State Department) 2, 000, 000. 00
124 REPORT OF GOVERNOR OF THE PANAMA CANAL

Table No. 14.Capital investment—Coutiuued

Additional construction funds, July 1, 1921, to June 30, 1944.. $190, 631, 318. 49

Total cash investment 572, 541, 619. 49

Interest on construction funds (compounded annually) 1904 to 1920 128, 991, 063. 00

Total capital investment 701, 532, 682. 49 The capital investment account covers the following assets, showing

the total as of June 30, 1943, the increase for the current fiscal year, and the total as of June 30, 1944.
REPORT OF GOVERNOR OF THE PANAMA CANAL 125

The above table covers all current obligations of The Panama Canal,

except deposits to guarantee payment of bills, and special deposit

funds, all of which are covered by table No. 9, custodial funds.

Table No. 16.

Depreciation reserves, fiscal year 1944

CANAL DEPRECIATION

Balance July

1, 1943 Accruals Retirements Balance June

30, 1944

Locks --- Madden Dam

Spillways Aids to navigation Wharves and piers Dry docks

Coaling plants Dredging division plant Ferry plants -.- Office buildings.- Oorgas Hospital -- Corozal Hospital Colon HospitalDispensaries Palo Seco Colony

Quarantine stations Other health department structures. Playgrounds

Post offices Schoolhouses

Fire stations

Police stations Prisons Courthouses Other buildings and structures Contingent reserve

548, 610. 01

439, 739. 75

596, 974. 56

428, 260. 05

826, 013. 22

943, 906. 63

609, 022. 30

542, 265. 17

259, 621. 27 515,737.28

446, 852. 14 115,961.22 91,631.46

66, 519. 35

49, 169. 91

65, 392. 70

39, 185. 48

96, 137. 00

11,991.15

310, 335. 08

39, 454. 89

33, 705. 21

8, 250. 00

99, 926. 60

276, 462. 76

229, 461. 56

$493, 604. 89

55, 085. 09

21, 320. 52

11,629.61

144, 324. 60

42, 657. 93

147, 506. 06

32, 664. 17

124, 506. 04

25, 916. 27 18,814.35

6, 722. 72

4, 942. 78

3, 595. 68

4, 346. 30

$7, 983. 02

3, 862. 96

3, 580. 09

2, 959. 89

6,735.14

2, 967. 31

24, 403. 88

2, 541. 34

6, 262. 05

1, 864. 86

3, 754. 65

13, 237. 48

I (2,363.61)

8, 019. 04

1,100.00

2 308, 385. 63

$14, 034,

494,

618,

439,

2, 970,

986,

3, 756,

574,

384, 541,

461,

122,

96,

70, 49,

65,

42,

94,

14, 334,

41,

39, 10

103, 288,

(11.

231. 88

824. 84

295. 08

889. 66

337. 82

564. 56 528.36

929. 34

127.31

653. 55

803. 53

683. 94

574. 24 115.03

936. 12

392. 70

145. 37

853. 10

958. 46

738. 96

996. 23

967. 26 114.86

681. 25

600. 24

287. 68)

Total , Canal depreciation 25, 760, 586. 75 1, 200, 000. 00 332, 930. 74 26, 627, 656. 01 PLANT DEPRECIATION

Floating plant: Tugs and craneboats-

Launches

Dredges Dump scows Machine barges

Lighters Launch repair barges. Anchor barges Total floating plant . Business fixed property:

" Electric power system

Electric work

Water system Municipal work

Mechanical shops

Fuel-oil plants General storehouses Motor transportation Motorcar repair shops

Building division Gold quarters..

Silver quarters Clubhouse business structures

District quartermasters' suppliesAdjusted

balance July 1, 1943

$1,235,211.92

318, 507. 46

1, 786, 230. 00

1, 140,930.79

431, 186.65

170, 232. 24

696. 00

5, 082, 995. 06

Total, business fixed property 10,395,669.02

614, 692. 95

61, 531. 24

239, 134. 48

16, 105. 43

037, 147. 02

107, 803. 21

656, 988. 05

36, 820. 14

27, 660. 32

18, 196. 99

757, 982. 50

501, 207. 57

302, 338. 67

18, 060. 45

Accruals

$89, 045. 00

59, 373. 64

83, 790. 00

43, 140. 00

54, 920. 00

18. 078. 00

1, 392. 00

1, 170. 00

350, 908. 64

170, 233. 32

7, 797. 36

147, 721. 00

2, 886. 00

63, 213. 58

73, 519. 28

46, 241. 00

5, 478. 00

4, 356. 00

1,679.00 319,917.93

17, 831. 46

2, 189. 25

863, 063. 18

Retirements

$181,866.92

17, 150. 74

68, 003. 30

267, 020. 96

4, 542. 50

722. 48 114,205.02

6, 100. 00

1, 000. 00

16, 302. 62

151,056.94

Balance Juno 30, 1944

$1, 142, 390. 00

360, 730. 36

1, 870, 020. 00

1,116,067.49

486, 106. 65

188, 310. 24

2, 088. 00

1, 170. 00

5, 166, 882. 74

2, 784,

69,

1, 382,

18,

1, 099,

1, 067,

703,

42,

23,

19, 3,071,

500, 303,

20,

926. 27

328. 60 312.98

991.43

638. 12 117.47

229. 05

298. 14

832. 00

875. 99

800. 43

207. 57

867. 51

249. 70

11, 107,675.26

1 Includes $46,822.88 for silver quarters. , . „ ., 2 Includes $128,133.08 for the tug Charges, $171,756.40 for the tug Alhajuela, and miscellaneous charges amounting to $8,496.15.
126 REPORT OF GOVERNOR OF THE PANAMA CANAL

Table No. 16.-

Depreciation reserves, fiscal year' 1944—Continued

Business equipment:

Electric power system.

Electric work

Municipal work Mechanical shops

General storehouses Motor transportation Motorcar repair shops Building division Panama Canal Press

District quartermasters' supplies Total, business equipment

Total, business fixed property and

equipment

Total, plant depreciation

Adjusted

balance July 1, 1943

131,

7, 332,

1, 194,

90, 579,

36, 99,

61,

2,

098. 46

669. 87

683. 67

973. 90

248. 02

861. 57 454.24

313. 64

576. 80

Of.8. 90

2, 535, 949. 07

12, 931, 618. 09

18,014,613. 15

Accruals

18, 972. 00

264. GO

57, 800. 89

238, 372. 74

9, 100. 16

190, 596. 22

2, 604. 89

12, 097. 88

7, 454. 16 60.00

537, 322. 94

1, 400, 386. 12 1,751,294.76

Retirements

73, 396. 24

88, 532. 09

76, 352. 12

238, 280. 45

389, 337. 39

656, 358. 35

Balance June 30, 1944

150, 070. 46

7, 933. 87

317, 088. 32

1, 344, 814. 55

99, 348. 18

694, 105. 67

39, 059. 13 111,411.52

69, 030. 96

2, 128. 90 2,834,991.56

13, 942, 666. 82

19, 109, 549. 56 SUMMARY

Adjusted bal- ance July 1, 1943 Canal depreciation Plant depreciation Total depreciation

$25, 760, 586. 75 18,014,613.15

43, 775, 199. 90

Accruals Retirements

$1, 200, 000. 00

1, 751, 294. 76 2,951,294.76

$332, 930. 74

656, 358. 35

989, 289. 09

Balance June

30, 1944

$26, 627, 656. 01

19. 109, 549..56

45, 737, 205. 57 The accrued balance as of June 30, 1944, or $45,737,205.57, applies

to depreciable capital assets shown on tables Nos. 3, 4, 5, and 6, amounting to $163,556,691.21.

Adjusted balance as of July 1, 1943, of $18,014,613.15 as compared

to $17,964,522.41 as shown in the 1943 annual report, making a

difference of $50,090.74, is made up as follows:

Transfer from repair reserves to cover write-off of tug Chagres $8, 851. 92 Adjustment of depreciation accruals for prior years on frequency

changer transferred from distribution system to substations t, 125. 00 Adjustment of depreciation accruals for prior years on fire protection, Cristobal and Balboa fuel-oil plants, in order to provide sufficient depreciation reserves to absorb the write-off of this capital value-- 40, 113. 82

50, 090. 74 Table No.
REPORT OF GOVERNOR OF THE PANAMA CANAL 127

Adjusted balance as of July 1, 1943, of $484,724.69 as compared

to $493,576.61 as shown in the 1943 annual report, making a differ- ence of $8,851.92, is a transfer to the depreciation reserve of the

tug Chagres.

Table No. 18.Retserve for leave
•128 REPORT OF GOVERNOR OF THE PANAMA CANAL

This account covers expenses accrued or estimated which have been

charged to operating accounts, but for which it was impracticable to institute corresponding payments at close of the accounting period.

These amounts are cleared as soon as corresponding charges are passed for payment, or contingent expenses arise. Table No. 20.

Consolidated statement of income, expenses, and net revenues

Canal operations: Canal revenues:

Tolls Postal surplus Other miscellaneous receipts Total Canal revenues (table No. 24)... Canal earnings (table No. 25) Total revenues Canal expenses: Executive offices Playgrounds

Accounting department

Washington oiTice Civil government

Postal service Health department

Office engineer _ . _ Meteorology and hydrography

Public buildings and grounds Marine division Locks operation and maintenance Locks overhaul Dams and spillway Dredging d i vision Municipal expenses Experimental gardens

Recruiting and repatriating employees.

Transportation of employees on Isthmus. Damage to vessels Miscellaneous general expenses Depreciation on Canal general property. Annual payment to Republic of Panama

Total expenses Net Canal revenues (table No. 25) Fixed capital charge.. Surplus or (deficit)... Business operations: Business revenues

Business expenses Net business revenues Fixed capital charge Surplus or (deficit) Combined operations: Revenues.

Expenses Net revenues. Fixed capital ch arge at 3 percent Surplus or (deficit). Net capital investment (table No. 14). Combined net revenues Percent of capital return _

Fiscal year 1944
REPORT OF GOVERNOR OF THE PANAMA CANAL 129

A summary comparison of net revenues and capital interest, by- years, from 1921 to date, is shown on table Mo. 21, following, together

with a brief description of accounting policy governing charges to operating expenses.

Table No. 21.^

Revenues, expenses, and computed surplus

Fiscal year
130 REPORT OF GOVERNOR OF THE PANAMA CANAL

The above table summarizes by classes the revenues received by Tiie

Panama Canal by fiscal years from 1921 and shows the net results from operations after deducting therefrom the net current expenses

chargeable to appropriations and the current interest charge on the

capital investment. The interest rate of 3 percent has been used in

making computations a great many years. The use of this rate received the approval of two organizations which investigated Panama

Canal matters and was formally adopted when the present accounting

system was established in 1932. It has been considered a fair and

reasonable rate, as the Government at various times has paid much

higher rates for the use of money.

Interest chargeable to operations is not included on the balance

sheet and no interest charge against the Canal is actually made by

the United States Treasury.

Total revenues on the foregoing statement represent receipts which

must be covered into the United States Treasury and relinquished

from control of The Panama Canal. Earnings repayable to Canal

appropriations, and reexpendable by the Canal, are deducted from

gross operating expenditures, in order to present a comparison of

funds covered into the Treasury with funds chargeable to operating

account, exclusive of capital additions.

The absence of tax charges is compensated for by the inclusion in

Canal operating accounts of the direct costs of civil government,

health and welfare activities. Neither capital nor operating expenses

of The Panama Canal include the cost of the military and naval

establishments on the Isthmus; however, all important exchanges of

services with these interests are covered by cash settlements, or

reciprocal allowances.

By including in the accounts all revenues properly applicable to Canal activities and by charging against the total revenue the net

appropriation expenses including cl^arges for depreciation and interest at 3 percent on the capital invested by excluding any charge to amortize the investment, there has accumulated as of June 30. 1944, as shown by the above table, a deficit of $88,457,408.25.

The total deposits covered into the United States Treasury from

the beginning of Canal construction, with minor adjustments to reconcile changes in accounting process, amount to $551,831,782.97,

and deducting therefrom net appropriations for operation and in- complete construction amounting to $267,630,518.93, as shown above

produces the net capital refundment balance of $284,201,264.04.

Deposits covered into the Treasury consist principally of the earned

revenues cited in table No. 21, which total $543,459,821.83, the

balance being made up of sales of property, principally during the

construction period, and return of appropriation balances.
REPORT OF GOVERNOR OF THE PANAMA CANAL 131

00 00

(M CO

o

(N CD

d 3 H-^

0^0 E

PhTJ

3 O

o3 (^

o
132 REPORT OF GOVERNOR OF THE PANAMA CANAL

o

«

Pio

tf

fa

IX, <O

g

<!

faO

1^o

w

v4&

Q

wU

o

a

a 2 -I

is

lOOOOOOOOOOOOGOOOOO

t-^— -- —* re ^5 •— c^'r^'c^'co tc ^"ictCoo oi" 't^.—lOOCS^OOOOCCOOOC^^'^'^cCOi—'-—OLCCCr^OC o ^ ^ ^ ^ ,-, i-i^i-t(MiOCOOi?5 ooooooooooooooooo

o-^

oo

ooo o o ooooooooooooooo

_ OOOOOQOOOOOOOOOO ooooooooooooooooo — -^ooooooooooooooo

lOiOCOCCCOCOCCCOCOCOCCfOCO ooooooooooooo

ooooo oo o o o oco o

oo oo

O OQC »0

.-H CO »C CO OOOOOOOOOOOOOOOOO

oooooioo6»Oi--c5otoc<i^b-'coo ("'-oooiooor^coooioociO'—''—'i^o •^^ Ot—'OOC^O>OOt--COCCOOCO'-H

OC^'— iCi—'OOC IC^CO'-Ht-OC^^COOC

_- JC^t-COOOOOSOOiM ^!N(NCOCOC^t^OO-—ir-4^.-H(NOC^

• O Cl »0 O CO o c

^SQQ^ooooooooc^ooo 50000000000000000

!2Q^^^^^^cooo»ococooo ^OOOCCiOCNO'—'OOOCOOC-lOO' 'OOO'-HC0'^»O';Ct--OG0»OC0C^00O

l" ^P CO C^f lO od 00 •^*" CT 00 CO -rt^' to lO" of ^^ 'Mc^tooo»oai:ct^Oi'—"coo-^coo-—

3l>'OOI>-t~*l^OI>-OOOOOOSOOOCDOO

SS222S'="^^<^'=*oooooo OOOOOOOOOOOOOOOOO

'—'Ooocci-^ooo'-^oor^r^or^o

;^22trS!Z'^'^^'^'=='<=oC'^oocoo CJOO'^OOOt^'^OCSOOOOC^-^O

Sp" ^f o' c^' oT ^cm" —' o' o Oi cT co' cs" lo (n o" C^COO'-CiOOt^t^OTt-^'tjHCNOiOiO^ OOOOO'—'COCO'—•OO'-iiOi—lOOtMiO'—'O M O GO O oT w i-T '^^ CO CT 00 00 C^ 00 Oi" O CD CO rH i-H ^ CMCO(N-^

O^'MCO-^iC'tDI^OOOJO^CMCO'^ C2COCOCOCOCOCOCOCOCO-«^'*'*-^r}4

2 a °

^'^

« o

^^,

^'--
REPORT OF GOVERNOR OF THE PANAMA CANAL 133

Although above table shows a net cash refundment of $284,201,-

264.04, such refundment is not deductible from net capital investment

as shown in table No. 14, which is considered as measuring the value

of the Panama Canal as an instrument of public utility upon which

a perpetual return should be earned; furthermore, annual interest on

net asset valuation chargeable to operating account is not included

in cash transactions with the United States Treasury. Such interest at 3 percent from 1921 to 1944 would have amounted to $363,154,-

976.17, as shown in table No. 21, and would have extinguished all capital refundments to date, if such interest charges had been assessed

against Canal revenues. Table No. 23.

Balance of revenues and refundments DEBITS

Revenue due U. S. Treasury (table No. 9) $183, 016. 35 Appropriated cash in U. S. Treasury (table No. 8) 21, 788, 593. 51 Appropriated cash with fiscal officers (table No. 8) 11, 461, 826. 37 Accounts receivable (table No. 10) 4, 988, 049. 74

Stores (table No. 11) 10, 834, 535. 84 Work in progress (table No. 12) 1,345, 858. 68

Deferred charges (table No. 13) 1,937,623.43

Total debits 52, 539, 503. 92

CREDITS

Accounts payable (table No. 15) 3, 813, 969. 21 Reserve for repairs (table No. 17) 445,615.64

Reserve for leave (table No. 18) 2, 858, 648. 84

Deferred credits (table No. 19) 4, 492, 760. 78

Total credits 11,610,994. 47

Net current accounts 40, 928, 509. 45

Less proportion under capital investment 4, 695, 000. 00

Balance 36,233,509. 45 A revolving fund now fixed at $4,695,000 is set up in Canal accounting for working capital, and is credited to capital investment account

in addition to funds used for construction and equipment, the total constituting the base for capital interest computations. Net working capital in excess of the revolving fund is considered as a temporary advance of Treasury funds, but is usually less than appropriated funds not withdrawn from the Treasury. Working capital

investments are in constant process of accrual and liquidation for account of the United States Treasury.

Due to war emergency, the debit balances under working capital are abnormally large.
134 REPORT or GOVERNOR OF THE PANAMA CANAL

Table No. 24.

Canal revenues
REPORT OF GOVERNOR OF THE PANAMA CANAL 135

Table No. 25

Canal earnings
136 REPORT OF GOVERNOR OF THE PANAMA CANAL

Table No. 25

Canal earnings and expenses—Continued

Municipal expenses—Continued Sewer system

Thatcher Ferry

Total- Miscellaneous general expenses: Recruiting and repatriating employees

Repatriating alien ex-employees

Transportation on the Isthmus Damage to vessels Depreciation on Canal general property.. Annual payment to Republic of Panama.

Cash relief to alien ex-employees Net Canal expenses.

Expenses

547, 143. 37

15, 598. 87

4, 483. 67

143. 507. SO 11,682.17

1. 200, 000. 00

430, 000. 00

94, 890. 88

26, 325, 918. 50

Earnings

$13, 691, 754. 08

Net expenses

$13, 909. 31 306,041.45

547, 143. 37

15, 598. 87

4, 483. 67

143, 507. 80

11,682. 17

, 200, 000. 00

430, 000. 00

94, 890. 88

12, 634. 164. 42 SUMMARY
REPORT OF GOVERNOR OF THE PANAMA CANAL 137

Table No. 26.

Business expenses, revenues, and profit or loss

Expenses Revenues Profit (ir I^oss E lectric power system

Electric work

Telephone, telegraph, and signal work. Water system

Municipal work

Shops and dry docks Wharfage (P. R. R. rental) Rental, Hotel TlvoU (P. R. R. Co.)...

Fuel-oil plants General storehouses. - Motor transportation Motor car repair shops.. Building division Panama Canal Press Gold quarters

Silver quarters Subsistence section District quartermasters' supplies Sand and gravel operations _ .

Public works: Panama

Colon

Total.

$1, 039, 388. 14

2, 863, 306. 25

266, 423. 94 810,961.62

7, 037, 743. 88 17,062,175.35

35, 642. 17

1, 179, 789. 26

16, 997, 995. 15

2, 114, 075. 50

837, 200. 37

5, 889, 601. 82

486, 730. 19

1, 151, 286. 18

530, 149. 10

906, 148. 79

435, 836. 38

233, 068. 93 641,339.41

344, 207. 75

60, 863, 070. 18

$1,651,

2, 878,

266, 1,019,

7, 052,

17, 169,

84,

3, 1,548,

17, 040,

2. 130, 878,

5, 905,

492,

1, 155, 530, 906,

436,

240,

383. 31

855. 45

423. 94

888. 70 591.64

502.81 000.00

000.00

701.49

251. 71

227. 61 128.54

697.41 781.83 313.69

149. 10

148. 79

624. 07

576. 75

666, 225. 00

359, 892. 40

62, 416, 364. 24

$611,995.17

15, .549. 20

208, 927. 08

14, 847. 76

107, 327. 46

48, 357. 83

3, 000. 00

36H, 912. 23

42, 256. 50

16, 152. 11

40, 928. 17

16, 095. 59

6, 051. 64 4,027.51

787. 69

, 507. 82

24, 885. 59 15,684.65 1,553,294.06

The profit on business operations as above, amounting to $1,553,-

294.06 compares with profits in 1943 of $1,492,542.70.

Profits on pubUc works, Panama and Colon, amounting to $40,570.-

24 represent interest which has been currently reported for coverage

into general funds of the United States Treasury. The balance of the

total profits, amounting to $1,512,723.82 will be immediately covered

into the Treasury as miscellaneous receipts. United States revenues,

in accordance with regulations.

Business operations of The Panama Canal are conducted separately

from operating activities pertaining directly to the transiting of vessels, and government of the Canal Zone. The annual appropriation

acts for The Panama Canal authorize the use of appropriated funds

for the conduct of auxiliary business activities, provided that funds

so advanced are recovered through earnings, and with further proviso

that any net profit derived from such business activities be covered

annually into the United States Treasury.

683299—46- -10
138 REPORT OF GOVERNOR OF THE PANAMA CANAL
REPORT OF GOVERNOR OF THE PANAMA CANAL 139

This table shows the status of Panama Canal working capital by

the various appropriations and funds by wliich it is separately ac- countable under existing laws and Treasury regulations.

A revolving fund of $4,695,000 is set aside in Canal accounting to cover the net investment in current accounts, which sum is included

in the capital investment account (table No. 14).

The following table shows the detail of the funded reserves stated

in the foregoing table as $9,950,769.91.

Table No. 28.Funded reserves, fiscal year 1944

Balance July

1, 1943 Accruals Expend!

tures Balance June30, 1944

Marine division: Tugs

Alhajuela, reconstruct . Launches

Toucan II

Frigate Skate Machine barges Launch repair barges Total. Dredging division: Tugs and crane boats. Launches

Dredges Dump scows — Machine barges

Lighters Anchor barges —

Total

Total, transit divisions.

Electrie power system:

Hydroelectric plant, Gatun

Diesel electric plant, Miraflores. Substations Transmission system.. Madden Dam system

Electric ranges Total.

Electric work:

Fixed property

Equipment

Total. Water system: Pump station buildings... Pump stations machineryFilter plant buildings

Filter plant machinery

Reservoirs and tanks Pipe lines—Large mains... Balboa

Pipe lines—Distribution.

Ancon

Balboa

Total. Municipal work:

Fixed property. Equipment

Total.

See tootnotes at end of table.

$178, 613. 93 $39, 250. 00

2, 813. 45 36, 884. 64

$31, 846. 98

12, 910. 91

696. 00 116.001, 392. 00

1, 646. 65

3, 486. 23

1, 934. 86

$186, 016. 95

'"'32," 630.' 35"

13, 026. 91

2, 088. 00

195, 034. 29 77, 642. 64 38, 914. 72 233, 762. 21

1 373, 368. 49

44, 985. 61

609, 370. 00

323, 279. 58

2 (96, 571. 35)

2 (20, 468. 60)

49, 795. 00

22, 489. 00

83, 790. 00

43, 140. 00

54, 804. 00

18, 078. 00

1, 170. 00

423, 163. 49

67, 474. 61

693, 160. 00

366, 419. 58

2 (41, 767. 35)

2 (2, 390. 60) 1,170.00

1, 233, 963. 73 273, 266. 00 1, 507, 229. 73

1, 428, 998. 02 350, 908. 64 38, 914. 72 1. 740, 991. 94

289, 781. 95

465, 361. 32

' 229, 453. 98

185, 838. 27

154, 849. 37

151, 425. 80

32, 520. 00

46, 824. 00

36, 109. 32

23, 520. 00

31, 260. 00

18, 972. 00

322,301.95

512, 185. 32

265, 563. 30

209, 358. 27

186, 109. 37

170,397.80

1, 476, 710. 69 189, 205. 32 1, 665, 916. 01

42, 565. 68

6, 286. 15

7, 797. 36

264. 00

50, 363. 04

6, 550. 15

8, 061. 36 56, 913. 19

• (19,151.47)

20, 673. 71

164, 399. 73

57, 981. 73

129, 923. 80

193, 290. 93

6, 112. 00

30, 509. 00

25, 548. 00

12, 484. 00

12, 252. 00

24, 960. 00

35, 116. 12 35, 856. 00

34, 563. 96

2 (13,039.47)

51, 182. 71

189, 947. 73

70, 465. 73

142, 175. 80

183, 686. 97

60, 325. 24

17, 058. 17

(6,411.29)

147, 721. 00 111, 947. 37

12, 660. 10

85, 276. 82

2, 886. 00

57, 800. 89 15,951.73

618, 008. 18

15, 546. 10

127, 125. 98

97, 936. 92 60, 686. 89 15, 951. 73 142, 672. 08
140 REPORT OF GOVERNOR OF THE PANAMA CANAL

Table No. 28.Funded reserves, fiscal year 1944—Continued
ALPHABETICAL INDEX

Accidents: Page

Marine 38

Traffic . 93-94

General 75-76

Accounts, payable (financial table No. 15) 124 Accounts, receivable (financial table No. 10) 121 Accounting department

Accounting system _^_^ 1 05-1 06

Financial, including tables 108-140

Functions , 64 Accounting system 105-106

Admeasurement of vessels 39

Administration:

Administrative organization, changes in 66 Administrative personnel, changes 65-66

General 2,3,64-65

Organization 64-65

Administration of estates 101

Agriculture, experiment garden activities 76-77

Aids to navigation, lights, buoys, beacons, etc 38

Air service, commercial, to and from Canal Zone 103-104

Air temperature 35-36

Air terminal, completion of 103

Air transportation 103-1 04

Aircraft

Commercial aviation 103-104

Customs activities 100

Airmail, postal system 98-99

Aliens. {See Employment and employees.)

Allotments

Capital, 1945 79-81

Financial tables 108-140

Amusement and recreation 77, 97, 98

Ancon-Balboa, construction at 54-55

Appointments, personnel 65-66

Appropriated funds (financial table No. 8) 117

Appropriations

Capital allotments*. 79-81

Financial tables • 1 08-140

Third locks project 46

Areas in the Canal Zone 82

Army, services rendered to 2

Arrests, statistics 92

Assets, capital (financial table No. 6) 115

Athletics 97

Attendance, public schools 96-97

Automobiles

Death by accidents 93-94

License statistics : 101-102

Rationing of gasoline and tires 102-103

Auxiliary enterprises of Canal (business operations) 3-49

Average size of transiting vessels 23

141
142 ALPHABETICAL INDEX

Page

Aviation, commercial 1 03- 1 04 Balance of revenue and refundments (financial table No. 23) 133 Balance Sheet (financial table No. 1) 108-109

Balance in appropriations and funds (financial table No. 27) 138

Balboa, construction at 54-55

Ballast traffic 23 Barro Colorado Island, area of _._ 82

Betterments, work in progress (financial table No. 12) 123

Betty, assistance rendered to 39

Birth statistics 84-85

Boiler inspections 38

Bonds, war, purchases by employees 76

Botanical gardens operations 76-77

Bowling center, construction of 78

Brisbane Star, assistance rendered to 39 Bruja Road, improvements 90

Buildings:

Capital allotment, fiscal year 1945 79-81

Construction, repair, and maintenance 54-55

Expenditures in connection with construction and repair of 55

Financial tables 1 08-140

Quarters for employees 56 Bulk petroleum products 54 Business expenses, revenues and profits or loss (financial table No. 26) 137

Business operatioos:

Panama Canal:

Building construction and maintenance 54-55

Bulk petroleum products 54

Electrical repair work 52 Explanatory remarks 3, 49

Financial statements 108-140 Investment in 49, 114 Mechanical and marine work 50-52

Motor transportation 57

Obsolete and unserviceable property and equipment 54

Oil handling 54 Panama Canal Press 57

Purchases and inspections in the United States. 1 53

Quarters for employees 53 Revenues from land rentals 56 Ship chandlery and other storehouse supplies 53

Subsistence 58 Panama Railroad: Coaling plants 60

Commissary 61-62

Dairy operations 63 Explanatory remarks 58-59

Hotels 63 Land and leases 61 Railroad 59 Real estate operations 61 Receiving and Forwarding Agency 60 Telephone system 61
ALPHABETICAL INDEX 143

Page

Cable, telephone, installation of 61 Camouflage work 77

Canal. (See Panama Canal.)

Canal earnings and expenses (financial table No. 25) 134-135

Canal revenues (financial table No. 24) 134 Canal traffic. (See Traffic.) Canal transits, frequency of transits of vessels _^j___ • 24 Canal Zone: Area ,___.i 82 Population 83

Vital statistics 84-85

Capital allotments, 1945 79-81

Capital assets (financial table No. 6) 114-115

Capital investment 49, 106, 123-124

Capital refundment (financial table No. 22) 131-132

Capitalization, depreciation, and maintenance (financial tables) 108-140

Cargo ships 20-22

Cargoes:

Average tonnage, tolls, and tons of cargo per cargo-carrying vessel 23

Ballast traffic. . 23 Commodities shipped in various trade routes 14-20

Hazardous, dispatching of 29 Laden traffic 23

Principal commodities 1 5-20

Receiving and forwarding agency, Panama Railroad operations 60 Shipments in various trade routes 11-13

Statistics, general 5-29

Tons of transiting Canal, by fiscal years 6

Traffic in 1944 (general statistics) 5-29

Cash relief for disabled employees 72-73

Central labor office 74

Central mixing plant 91 Census of Canal Zone, March 1944 83

Chagres, destruction of 38

Chandlery, ships' 3, 53 Changes In administrative organization 66 Changes in administrative personnel 65-66

Channels, maintenance of, and special projects 41-42

Atlantic entrance 41

Cristobal inner harbor, maintenance 42

Gaillard Cut (maintenance exclusive of slide excavation) 41

Gaillard Cut (project No. 13) 41

Pacific entrance, maintenance 42

Slides 44 Third locks dredging:

New Gatun locks north approach channel 43 New Miraflores locks north approach channel 43

New Miraflores locks south approach channel 43

Auxiliary dredging:

Balboa Harbor, maintenance 42

Cristobal inner harbor, maintenance 42 Dock No. 15, extension, Cristobal 42
144 ALPHABETICAL INDEX

Channels, maintenance of, and special projects—Continued Page

Auxiliary dredging—Continued

Drydock Nos. 2 and 3, Balboa 42 Marine railway, Cristobal 42

Miraflores Lake anchorage 42 Naos Island dock approach 43 Naval dock facilities, Cristobal 42

• Outer anchorage, Pacific entrance 42

Refloating grounded ship 42

Civil affairs, division of, activities 98-102

Civil government, explanatory notes 82

Classification of vessels between laden and ballast 20-22

Clubhouses, Panama Canal, functions and activities 77-78

Coal-burning vessels, transit of 24 Coaling plants, activities 3, 60

Cocoli, construction at 55

College, junior, activities 95-97

Colon, municipal improvements 91 Commanding General, Panama Canal, authority of 2 Commercial aviation 1 03-104

Commercial traffic, canal. (See Traffic, Canal)

Commissary division operations 61-62

Commodities, principal, through Canal 14-20

Compensation, injury 75-76

Concrete mixing plant 91 Concrete pipe plant 91 Consolidated statement of income, expenses and net revenues (financial table No. 20) 128 Construction and repair, building and quarters 51, 54-56, 78-82, 89 Contract laborers 58, 73

Convicts. (See Prisoners.) Coroner's investigations 93

Corozal, construction at 55 Corozal Hospital, infirmary for 79, 81

Corporations, foreign, licenses 101

Cost, capital investment 49-50, 106, 123

Credits, deferred (financial table No. 19) 127

Cristobal, construction at 55 Cucaracha rock formation, test of 91 Culebra reach, Gaillard Cut, widening of 41 Custodial funds, receipts and disbursements (financial table No. 9) 120 Customs operations 100

Dairies, milk production 63 Deaths:

Accidents, general 75 Administration of estates 101

Principal causes of 84

Suicides _ 93

Vehicle traffic accidents 93-94

Vital statistics ._. 84-85

Deferred charges (financial tal)le No. 13) 123 Deferred credits (financial table No. 19)._. 127

Deficit from operations 4
ALPHABETICAL INDEX 145

Page

Delays to shipping 31 Dental laboratory, equipment for 79, 81 Departments, Panama Canal, explanatory notes 64-65

Deportations:

Convicts 93

Repatriations of unemployed aliens 73

Depreciation, financial tables 108-140

Diablo Heights, construction at 55

Dido, greatest number of transits made by 24

Diesel-electric station operations 32

Diesel oil, receipts and issues. {See Oil.) Disabled silver employees, cash relief for 72

Diseases. (See Vital statistics.) Dispatching ships through Canal, hours of operation 29 Displacement tonnage, vessels paying tolls on 11, 21-23

Disturbances, seismic 37

Dock No. 15, Cristobal, construction of 91 Dock, Balboa, for dredging division 79-80

Docks, vessels handled at 37

Dooling, Brig. Gen. Henry C, appointed chief health officer 65

Draper, Lt. Comdr. Fred R., appointed assistant to superintendent, mechanical division 66

Dredging, special projects, channels, etc 41-42

Dredging division:

Activities 40-44

Auxiliary dredging 42-43

Canal prism dredging 41 Dock, new construction of 79-80

Driftwood, disposal of, from Madden Lake area — 44-45

Ferry service 46

Floating equipment employed 45

Floating obstructions, including water hyacinths, removal of 44-45

Sand and gravel operations 44

Slides 44

Subsidiary activities 44 Third locks dredging- 43

Dreibelbies, Col. William C, appointed superintendent, Gorgas Hospital-- 66

Driftwood, disposal of, from Madden Lake area — 44-45

Drydocks:

Activities 4, 51 Dredging in connection with 42

Financial tables 1 08-140

New construction 51 Dry season, 1944, water supply 34

Earnings:

Business operations, Panama Canal and Panama Railroad Co 59-63

Coaling plants 60 Commissary division operations 61-62

Financial tables 108-140

Hotels 63 Land rentals, Panama Canal 58 Mechanical and marine work 50
146 ALPHABETICAL INDEX

Earnings—Continued Page

Motor transportation 57 Net deficit, 1944 1 28

Oil handling plants 54 Panama Canal Press 57 Railroad 59 Receiving and forwarding agency 60

Storehouses and ships' chandlery 53 Telephones, electric clocks, and electric printing telegraph machines. 61 Earthquakes 37

Education, public school system 95-97

Electric clocks 61

Electric lights. {See Electric Power.)

Electric Power:

Canal operations, power for 32

Financial tables 108-140

Hydroelectric stations, operations 32

Electrical division, activities and general remarks .32,52-53

Electrical repair work 52-53

Elevations, lakes " 35 Employees:

Adjustment in wages and hours of work 70 Cash relief for disabled employees . 72 Contract laborers 74 Force employed, including distribution, recruiting and turnover 69-74

General remarks 66 Gold personnel, distribution of 67-70

Hours of work, adjustment in 70 Quarters for 56 Recreational facilities for 77, 97

Recruiting and turn-over of force 69-70

Repatriation of 73 Sick and rest leave, silver employees i'j'Jllj^ 72

Silver personnel, distribution of 71-72 Turn-over of force 69-70

Wage adjustments 1 70 Wages, silver 72 War bonds, purchases by employees ':__LiL'' 76 Employment:

Central labor office 74

Recruitingandturn-over,includingforcedistribution and force employed 69-70

Repatriation of unemployed aliens 73 Enrollment, schools 96-97

Equipment (except floating and rolling)

Business equipment (financial table No. 5) 114 Dental laboratory 79-81

Obsolete property and equipment, disposal of 54 Equipment, floating:

Canal equipment (financial table No. 3) 112 Dredging division, employed by 45 Marine division, employed by 39-40

Estates, administration of 101 Executive department, functions 65
ALPHABETICAL INDEX 147

Page

Expansion of water supply facilities 88-89

Expenses and revenues. {See Revenue and expenses.)

Experiment gardens, botanical operations 76-77

Ferry service and statistics 46

Filtration plants:

Construction 89

Increase in capacity of plants 89 Maintenance 88

Financial and statistical tables and statements 107-140

Fire losses 95

Fire protection 95

First aid stations 83

Floating equipment. {See Equipment, floating.)

Floating obstructions, removal of 44-45

Floods 34

Food supplies, commissary division operations 61-62

Force employed, including distribution and turn-over 69-74

Foreign corporations, licenses 101 Foreign naval vessels using Canal 11, 21 Forest preserve, area of 82

Faulk, Col. Albert C, appointed chief, aeronautics section 66 Free transits 3,5,28-29

Frequency of transits of vessels through Canal 24-25

Fuel oil. {See Oil.) Fuel oil plants _. 54 Fumigation, ships 86 Funded reserve (Financial table No. 28) 139-140

Funds (financial tables) 104-140

Gaillard Cut: Channel excavation 41

Special project No. 13 41

Gaillard Highway, improvements - 90

Gamboa, construction at ^ 55 Gardens, experiment 76-77

Gasoline: Rationing 102-103

Receipts. {See Oil.) Gatun, construction at 55 Gatun hydroelectric station, operations 32

Gatun Lake:

Elevation 35 Water supply 33 Gatun locks, hours of operation 29 Generating unit, new, installment of 32 Generator output, power system 32 Gold personnel, general. {See Employees.)

Government 2-3,82

Gravel plant, Gamboa, sand and gravel stock 44

Gross tonnage of transiting vessels 26-27

Harbors:

Improvement and maintenance of Balboa and Cristobal Harbors 40-42

Vessels handled at docks 37
148 ALPHABETICAL INDEX

Page

Harbor terminals, operations 60 Hazardous cargoes 29 Health department:

Dental laboratory, equipment for 79-81

Functions of department 65

Health conditions on Isthmus 83-86

Infirmary, Corozal hospital, construction of 79-81 Quarantine and immigration service 86-87

Sanitation building, construction of 79-80 Herma Gorthon, assistance rendered to 39 Highways. {See Roads.)

Homicides 93

Hospitals

Corozal Hospital, infirmary for 79-81

Patient days 86

Hotels, operation 63 Hours of work 70 Hours of operation of Locks 29 Housing for employees. {See Quarters.)

Humidity 36 Hyacinths, water, removal of from cut and Lakes 44-45

Hydroelectric stations, operations 32 Hydrology. {See Water supply.)

Immigration

Service operations 86-87

Visas 99 Income. {See Revenues.)

Infants, vital statistics 85

Infirmary, Corozal Hospital, construction of 79-81

Injury compensation 75-76

Inspection:

Boilers, by marine division ^^ 38

Purchases and inspections of materials in the United States 53

Vessels, by marine division ^ 38

Insurance companies, licenses and statistics 101 Interruptions to transmission line service 32

Introduction, explanatory and general statistics on operation of the Canal. 2-3

James Withycornhe, assistance rendered to 39

Kerosene, receipts. {See Oil.) Kindergartens 95-96

Labor. {See Employees, employment.)

Laden traffic 20-22

Lakes. {See each, as Gatun Lake, Madden Lake, etc.) Land:

Areas in the Canal Zone 82 Barro Colorado Island, area of 82 Commercial leases, area of land devoted to 82

Forest preserve, area of 82

Licenses in the Canal Zone 58

Military reservations, area of 82 Naval reservations, area of 82 Panama Railroad leases 61
ALPHABETICAL INDEX 149

Land—Continued Page

Pastures, area of 82

Rentals revenues 58 Third locks, project, area of land devoted to 52

Townsites, area of 82

Transfer of certain Railroad lands to Panama 61 Landscape work 76-77

Ijaunch for marine division 79 Laws, Canal Zone: Enforcement, police division activities 92-94

Legislation enacted during fiscal year 1944 78-79

Magistrates' courts, activities 94

Leases, land, Panama Railroad operations 61 Leave, sick and rest, silver employees 72

Legislation enacted which relates to or applies in Canal Zone 78-79

Lewis, Lew W., appointed chief quartermaster 66

Liabilities, financial tables 108-140

Licenses: Foreign corporations 101 Insurance companies 101 Land licenses in force in the Canal Zone 58

Peddlers 102

Vehicle 101-102

Lines, water, new construction 79, 88-89

Lights and lighthouses 38

Locks:Lockages 30

Maintenance 29-3

Operation, hours 29 Gatun locks 29 Pedro Miguel locks 30

Miraflores locks 30 Limited use of 37 Maintenance and construction at 31, 79-80

Precautions, special, for handling ships at 29-37

Overhaul 31

Shelters for locomotives, construction of 79-80

Third set, construction of 46-47

Lockages and lock maintenance 29-31

Locomotive repair shelters at locks, construction of 79-80

Locomotives used at locks 29-30

Madden hydroelectric station, operations 32

Madden Lake:

Elevation 3f Source of water supply 33

Magistrates' courts, activities 94

Mail, postal system in the Canal Zone 98-99

Maintenance of Canal channel 40-42

Malaria 85

Margarita, construction at , 55 Marine division: Accidents to shipping 38

Activities 37-40
150 ALPHABETICAL INDEX

Marine division —Continued Page

Aids to navigation 38 Launch for 70

Salvage and towing operations 39

Tugs, operations of 39-40

Marine railways, construction of 51 Marine work, repair to vessels 3, 50-51 Material and supplies: Financial table No. 11 122

Obsolete property and equipment, disposal of 54 Purchase and inspections in the United States 53

Ships' chandlery 3, 58 Mechanical division: Drydock activities ^^ 4,51

Financial 50

Operations 50, 52 Plant improvement 51 Revenues 50

Vessels, repairs 4, 51 Work other than repairs . 51, 52 Mechanical work 50-52

Mehaffey, Maj. Gen. Joseph C, United States Army, appointed Governor. 65 Milk production 63 Meyer, A. Oren, appointed chief, police and fire division 66

Military and naval reservations in Canal Zone, area of 82 Mindi dairy operations 63

Miraflores Diesel-electric station operations 32

Miraflores Lake, excavation statistics 42

Miraflores locks, hours of operation 29 Mixing plant, concrete 91 Moore, Lewis B., appointed first assistant chief quartermaster 66 Morbidity and mortality rates 84 Motor transportation 57 Motor vehicle licenses 101-102

Motor vessels, transit of 23 Municipal engineering division, activities 87-9

Nationality of vessels using Canal 10-23

Naval reservations in the Canal Zone, area of 82 Naval vessels, foreign, transit of 11, 21, 28

Navigational aids 38 Navy, services rendered to 2 Net revenues. {See Revenues.)

Newcomer, Col. Francis K., appointed engineer of maintenance 65

Obsolete and unserviceable property and equipment _. 54

Obstructions to navigation, removal of 44, 45

Oil: Barrels pumped _ 4, 54

Fuel, Diesel, gasoline and kerosene, receipts and issues 54

Oil handling plants, financial results of operations 54

Oil-burning vessels,, transit of 24

Operation and maintenance of Canal:

Auxiliary enterprises 2, 3, 49, 59
ALPHABETICAL INDEX 151

Operation and maintenance of canal—Continued j^ap.. Business operations 3, 49-59

Explanatory remarks 3, 69-70

Financial tables 108-140

Operations and maintenance, department of, functions 64-65

Order, public, police division activities 92-94

Ore ships 20-21

Organizations. {See also under each)

Appointments 65-66

Changes in personnel 65-66

Force employed, including distribution and turn over 69-74

General remarks 64-65

Panama Canal:

Auxiliary enterprises 2, 3, 49, 59

Business operations 2, 3, 49, 59 Capital investment 49-50, 106-123

Financial tables 108-140 Hours of operation '. 29

Operations, general remarks 106 Operations and maintenance 3, 29 Operation and trade (see also under each subject) 5, 29 Panama Canal Press, operations 57 Panama City, municipal improvements 91 Panama Railroad Co:

Business operations 58-65, 106 Functions of organization 65 Panama, Republic of, relations with 99 Pardon board, activities 95

Passenger ships 20-22

Passengers, aviation 103-104

Pasture areas in the Canal Zone- 82

Pay, rates of 70

Peddler licenses 1 ]02

Pedro Miguel, construction at 55 Pedro Miguel locks, hours of operation 30

Personnel: Appointment of officials 65-66

Force employed, including distribution, recruiting, and turn-over 69-74

Wage adjustments 70 Petroleum products, bulk 54

Phillips, John F., appointed production superintendent, mechanical

division 66

Physical education . 97

Pipe lines (water), maintenance 88

Pipe plant, concrete 91 Plant improvements, mechanical division 51 Plant introduction gardens 76 Playgrounds 97

Police and fire division activities 92-95

Poliomyelitis . 86 Population of Canal Zone, March 1944 83

Posts, division of, actiWties ._. 98-99

Post office, new 98
152 ALPHABETICAL INDEX

Page Postal system in the Canal Zone 98-99

Power. {See Electric power.)

Precipitation. {See Rainfall.)

Premiums, msurance 101 Printing plant operations 57

Printing telegraphs 61 Prisoners

Committed to penitentiary 93

Deportations 93 Labor 93

Magistrates' courts, activities 94 Pardons and reprieves 95 Serving sentences 95

Profits, financial tables 108-140

Property

Business fixed property (financial table No. 4) 113-114

Canal general peoperty (financial table No. 2) 110-111

Damage by fire 95

Obsolete property and equipment, disposal of 54 Value in transit divisions 4 Provisions sold to ships 3, 62

Public Health, conditions of Isthmus 83

Public order, police division activities 92, 94

Public school system, Canal Zone 95, 97

Public Works, Panama and Colon cities (financial table No. 7) 115-116

Pumping stations: Maintenance 88 New construction 89 Purchases and inspections of material in the United States 53

Purchases, commissary supplies 6 1-62 Quarantine service 86-87

Quarry and rock crushing plant, Sosa Hill 91 Quarters

American employes 56 Native employees 56 Radio telephones, Pohce division, installation of 92

Railroad. {See Panama Railroad.)

Railway signals 52

Rainfall 35 Randolph and Diversion Road, reconstruction of 91 Rationing:

Gasoline 102-103

Tire 103 Typewriters lO** Real estate operations:

Panama Canal 58 Panama Railroad "1 Receiving and forwarding agency, activities 60

Recreation 77-78, 97

Recruiting and turnover of force, including forced employed 74 Recruitment of foreign labor 74

Registered mail, Canal Zone postal system ,-,--- 99
ALPHABETICAL INDEX 153

Pagp

Registration, selective service 102

Relations with Republic of Panama 99

Relief, cash, for disabled employees 72-73

Rents. {See Lands.)

Repairs:

Buildings and quarters 56

Electrical -=> , : 52 Mechanical division work for Canal and Railroad divisions 50

To vessels 3-4,51-52

Repatriation of unemployed aliens 73 Replacements, general 4 Reports, financial tables 108-140

Reprieves 95

Reserves: For repairs (financial table No. 17), 126

• For replacement (financial table No. 16) 125-126 For vacation pay (financial table No. 18) 127

Reservoirs, maintenance 88 Rest leave, silver employees 72

Restaurants, activities 77 Revenues and expenses: Building construction and maintenance (expenses) 56

Business operations . 4, 49-63

Coaling plants (gross revenues) 60

Commissary operations (gross revenues) 62

Electrical repair work (expenses) 52

Financial tables 108-140

General 4

Hotels (gross revenues) 63 Land rentals. Canal (gross revenue^ 58 Mechanical division (gross revenues) 50

Motor transportation 57

Obsolete and unserviceable property and equipment (gross revenues)-- 54

Oil handling plants 54

Panama Canal press 57

Railroad (gross revenues) 60

Receiving and Forwarding agency (gross revenues) 60

Revenue and expense, computed surplus (financial table No. 21) 129 Storehouse operations 53

Telephones, electric clocks, and electric printing telegraphs (gross

revenues) 61 Roads:

Bruja Road improvement 90

Gaillard Highway improvements 90

Maintenance 89 Randolph and Diversion Road, reconstruction of 91

Special projects 90

Rock-crushing plant 91 Rock, Cucaracha, test of 91 Safety program 74-75

683299—46 11
154 ALPHABETICAL INDEX

Sales: I'age Commissary supplies 4, 62 Experiment gardens 76, 77

Sliips' chandlery 3, 53

Salvage operations, marine division 39

Sand and gravel operation 44

Sanders, Maj. Charles V., appointed assistant to the Governor 66

Sanitation building, construction of 79-80

Sanitation, health conditions on Isthmus 83-86

Schedule, operating, at locks 29

Schools, activities of public-school system 95-97

Seamen, shipping commissioner operations 100 Seismology 37

Selective service registration 102

Services to shipping, general 3-4

Sewers

Maintenance, repairs and renewals 89 Panama and Colon improvements 91

Shelters, locomotive repair, construction of 79-80

Ship, accidents. {See Accidents, marine.)

Ships' chandlery 3, 53 Shipping commissioner, activities 100

Shocks, earthquake 37

Sickness. {See Public Health.) Sick and rest leave, silver employees 72

Sidev.'alks, maintenance 89

Silver personnel, general. {See Employees.)

Size of transiting vessels 25-27

Slides 44

Small commercial vessels transiting Can^l 28 Smallpox 86 Sosa Hill, quarry and rock crushing plant 91

Spinal meningitis 86

Statistics: Canal traffic, general 3, 5-24

Financial tables 108-140

Temporary change in basis for compiling 6-7

Steam vessels, transit of 23-24

Store, experiment gardens 77

Steese, Col. James G., appointed assistant to the Governor 66

Storehouses 53 Storms and floods 34

Streets. {See Roads.)

Subsistence, for contract laborers 58

Suicides 93 Summit, construction at 55 Supply department, functions 64

Swamps, Canal Zone, area of 82

Tank ships 20-22

Tavernilla, salvage and towing operations of 39 Telegraphs 52, 61 Telephone cable, new installation 61 Telephone system 52, 53, 61
ALPHABETICAL INDEX 155

Page

Temperature, air 35-36

Thatcher ferry 46

Theaters, operations of 78 Third lock project 46-48 Area of land devoted to project 82

Authorization 46

Appropriation 46

Construction 48

Contracts, cancellation of 48

Designs—Plans—Specifications 47 Dredging 41,43,47

General program 47

Modification 47

Personnel 48

Tides 36

Tires, rationing 102-103

Tivoli Hotel operations 63

Tolls:Canal traffic, general 5, 24

Variation in 9 Tonnage of vessels 5, 28 Towing operations, marine division 39 Townsites in Canal Zone, area of 82 Trade routes, traffic by 11-20

Traffic accidents 93-94

Traffic, Canal: Average tonnage, tolls, and tons of cargo per cargo carrying vessel. ._ 23 By fiscal years 3, 9-10

By months, fiscal years 1944 and 1943 10

Classification of vessels by laden and ballast 20-22

Cargo carried 3, 6-29

Coal-burning vessels 24 Commodities, principal 14-20

Delays to shipping 31 Displacement tonnage 11, 26-27

Foreign naval vessels 11, 12 Free transits 3, 5, 28-29

Frequency of transits of vessels 24-25

Government 3, 5, 28-29

Harbor activities 37

Laden and ballast ' 20-22

Nationality of vessels: Ocean-going vessels, tonnage and tolls 10, 23

Oil-burning vessels 24

Principal commodities 14-20

Services rendered to 3

Size of vessels 27

Small commercial 3, 5, 28

Statistics, general 3, 5-28, 37

Steam, motor and other vessels 24 Temporary change in basis for compilation of shipping statistics 6-7
156 ALPHABETICAL INDEX

Traffic, Canal—Continued Page

Tolls 3,5-23

Tonnage, general 3, 6-23

Tonnage, gross, of vessels 25-26

Trade routes 1 1-20

Transit frequency of vessels 24-25

Transfer of Panama Railroad Co. lands to Republic of Panama 61 Transformer, new, installation of 32

Trans-Isthmian railroad 59-60

Transportation, Motor Transportation, operations 67 Tugs, operation of 39-40

T3^phus fever 86

Typewriters, rationing 103

Variation in tolls figures 9

Vegetables, experiments in growing of 76-77

Vessels

Accidents 38

Customs activities 100 Drydocked 4, 51 Entitled to free transit 5, 28-29

General transit statistics 6-24

Handled at docks 37

Quarantine and immigration, activities 86-87

Repairs 3-4, 51 Shipping Commissioner, activities 100

Visas, immigration 99

Vital statistics .- 84-85

Wage adjustments, gold employees 70 Wages, silver employees 72 War bonds, purchases by employees 76 War cargoes carried through Canal 5 Washington Hotel, operation of 63 Washington office, purchases and inspection by 53 Water areas in the Canal Zone i 82

Water lines, maintenance 88

Water supply:

Consumption 88

Dry season, 1944 34

Expenditures of 33 Gatun Lake source 33

General 32-33

Madden Lake 33 Panama and Colon public works (financial table No. 7) 115-116

Pumped 88 Storms and floods 34

System, including maintenance 86 Water system, expansion of supply facilities 79,88-89

Weather conditions 32-36

White Shoals, assistance rendered to 39 Whitman, William M., appointed assistant general counsel 66 Winds and humidity 36 Work in progress (financial table No. 12) 123 o
UNIVERSITY OF FLORIDA

3 1262 08300 708 7

SCI-HSSL