Gift ofthe Panama Canal Museum

i^'M67-^c-.i)

Vol.1, No. 3 BALBOA, HEIGHTS, CANAL ZONE, NOVEMBER 3, 1950 5 cents

INCORPORATION LAW REQUIRES BASIC ALTERATIONS

FOR CANAL-RAILROAD ORGANIZATION IN JULY 1951

Employee's Actual Income

In Red With Income Taxes

Expenses For Family Of Four With Above Average

Salary Show Deficit After Inexpensive Vacations

In addition to offering the fascinating

game of identifying prominent Zonians

(See page 11), this issue of The Panama

Canal Review offers another game at which most employees can and will while away many an evening in coming

months. It can be played every eve-' ning, once a week, once a month, or at longer intervals. It must be played,

however, once a year. The game piesented below, judged to be about as welcome to the average employee as a fast game of Russian roulette, is known as the Income Tax

Puizle. While the game offers any

number of variations, beginners should

start by trying to match or better each

item in any one of the columns they

may select. More details are given be- low in this chart of figures which repre- sents one actual and two hypothetical

annual budgets of a married Canal or Railroad employee with two children

whose salary is $5,406.25 (GS-7e or GS8b).

Food and household supplies Rent, light, care of grounds, etc Clothing Insurance Retirement (Civil Service)

Transportation (Isthmus only) Personal services (maid, laundry, etc.) Amusements including books, periodicals, entertain- ment, movies, gifts, drinks, tobacco, lottery, hobbies, etc Church, charities, and fraternal Health services Education

Miscellaneous expenses

INCOME TAX.

TOTAL

Adjusted to annual salary of $5,406,

Actual

Budget

Pinch- Penny

Budget

Spendthrift Budget

$1,530 $1,500 $2,000 530 530 530 420 420 750 350 275 275 325 325 325 755 350 500

100 300 600

420 350 750 190 175 50 73 180 180 287 100 280

125 100 300

$5,105 $4,605 $6,540 478 478 478

$5,583 $5,083 $7,018

($177) $323 ($1,612)

The first column presents the actual budget of an employee whose salary

($.5,406.25 a year) is slightly above aver- age for American employees of the Canal

and Railroad. The other two budgets

are fictional and are offered for comparative and argumentative purposes only.

The identity of the employee whose

budget is shown may not be revealed but

the budget he has submitted has been

verified. You may not agres with how

he spends his money. In fact, he might

not agree with how you spend yours. He and his family, his wife, a twelveyear-old son, and a nine-year-old daughter, live in a duplex, Type 103, house. They have no maid and his wife does all her own work. Neither of the couple

smokes, drinks, nor plays the lottery. In explanation of this phenonomen, the budgeteer said: "These three factors may

not be typical of Zonians," a statement

that most readers will agree is honestly

and forthrightly put. Budget is Summarized

The following summary provides a more detailed explanation of the budget;

The food bill shown was based on one month's actual record which came to $3.55 a day.

The clothing listed included: For himself, one suit, eight shirts, six sets underwear, 15 socks, four trousers, three pairs

of shoes, six neckties, and a bathing suit; for his wife, six dresses, six house dresses, $40 worth of underclothes, three pairs of shoes, two nightgowns, and a bathing

suit; for the girl, eight dresses, 12 pieces

of underwear, six pairs of shoes, 12 socks, two nightgowns, a bathing suit, raincoat,

and $20 worth of play togs; for the boy, two shirts, six sweaters, 10 pants, 12

socks, 12 pieces of underwear, four pairs

of shoes, two sneakers, a bathing suit, and a raincoat. Household goods which he purchased,

amounting to $230, were listed as a washing machine, a waffle iron, $20

worth of dishes and kitchen utensils, $50 worth of furniture, a popcorn popper,

four sheets, 10 towels, four pillowcases,

and a set of draperies.

His insurance covers membership

in the M. B. A., $11,000 (See page W)

With a few short months The Panama

Canal with the capital "T" will become

a matter of history.

Whatever good or ill effects the change

may have is still a matter of some conjecture but it will put an end to one

embarrassing situation which few, if any. Canal employees have not at sometime

encountered. They will be able to say who they work for and not be immediately forced into a long explanation.

What Canal employee has not had the misfortune to encounter on one of his return trips home some old friend who

wants to know whom he is working for after all these years? More often than

not the conversation follows this pattern:

"Why, I work for The Panama Canal,"

the employee replies proudly.

"I know," the friend counters condescendingly, "that you work on the Panama

Canal but who do you work for down

there?" Somewhat in anguish the hapless indi- vidual attempts to explain. Moments

later a pitying look comes over the old

friend's face as he suddenly realizes that John has gone a little daft after a few

years in the tropics.

Those who return .to their homeland

after next July 1 need have no fear of being damned by his own words in such

a fashion. They can say, as the case may

be, that they work for the Panama Canal

Company or the Canal Zone Government,

both full, round terms the average American can understand. He may never have ventured far from (See page 3)

Special Features

In This Issue

Fifteen pairs of movie tickets will be given free to the first 15 persons who correctly identify prominent

Canal-Railroad employees. See rules on page 10 and pictures on page 11. The exact amount of money to be taken out ol every paycheck you re- ceive next year is shoNvn on the In- come Tax Withholding Tables published in full on page 9. The most complete and up-todate story on what will take place next July begins on this page. The story of two new towns to be

built on the Pacific side appears on

page 2. Does your salary cover your present

expenses, the Income Tax, and leave enough for a vacation beyond Chorrera? Compare your family budget

with that of an average-salaried

employee who watches his nickels and dimes which appears on this page.
THE PANAMA CANAL REVIEW November 3, 1950

New Towns and New Types of Houses

Are Planned In Zone Building Program

FLOOR PLANS for one of the two new types of masonry houses included in this year's building pro- gram are shown above. The thi-ee bedi'ooms are completely separated from the living quarters by the wide

porch which forms a breezeway for both units. The porch will have a tiled floor and a masonry wall up to window-sill height with screening above to the flat roof. Plans also provide for a rearrangement of the space

to the right of the car-port to provide for maid's quarters. The broken lines indicate the roof extension.

With plans already well formulated for the expenditure of nearly $3,000,000 on

housing replacement by The Panama

Canal this fiscal year, intensive studies

are presently being undertaken to solve one of the primary problems of the $80,000,000 program'.

This problem—how to provide suffi- cient houses to keep ahead of the major

demolition program—is most acute on the

Pacific side where large areas in the towns

of Ancon, Balboa, and La Boca must be

cleared before rebuilding can be under- taken on a large and economical scale.

Present plans call for the development

of two entirely new townsites on the

Pacific side at an early stage of the seven- year building schedule and a major part

of the funds for the fiscal year 1952 will probably be spent on these new towns. The overall quarters construction and re- placement plans as approved call for an

expenditure of nearly $10,000,000 during

the fiscal year 1952.

Since land areas sufficiently extensive and adaptable to large-scale housing de- velopment are at a premium near the Canal's Pacific terminal, the selection of the two new townsites poses many questions of paramount importance. It is presently believed unlikely that any suit- able townsites can be located within five to six miles of the main employment centers in Balboa and Balboa Heights.

According to Col. George K. Withers,

Engineering and Construction Director, the selection of the two new townsites.

one to accommodate those who must be

moved out of La Boca and other local- rate communities and one for U. S.-rate employees who must move ahead of demolition squads, probably will be made

within the next few months. Following

a selection of the areas, detailed surveys

of the terrain and town planning on a comprehensive scale can be undertaken

soon thereafter. Building Sites Are Scarce The necessity of selecting new townsites

at some distance from the Canal terminal

arises from the fact that available land is already preempted by the three military

services. The Canal administration has been unsuccessful in its efforts to obtain

the Albrook Air Force Base area, the old Quarantine area in Balboa now occupied

by the Navy, and some land in existing

Army reservations. As a result, the housing development program will be more

costly because of the duplication of com- munity facilities already available in the Ancon-Balboa section. The two new and unnamed towns, . which will become permanent Canal Zone

communities, not only will have to be

built from the foundations up but they must be provided with such community

facilities as commissaries, schools, club- houses, police and fire stations, and other

finishings of a modern community prior to their settlement by any considerable number of employees. All the facilities and the houses must be completed to a

large extent before any large evacuation can begin from such areas as Balboa Flats,

Ancon, Balboa Heights, and La Boca. Secondary only to the main problem of finding available land for the new towns

will be such questions as the most econ- omical use of the areas in the provision

of such public utilities as roads and

streets, sewer and water lines, and the necessary electrical facilities at the lowest

possible cost. Since both towns will necessarily be located at some distance from the employment centers a comparatively large

segment of Canal-Railroad employees

will become, by Isthmian standards,

commuters between their homes and

places of employment.

142 Houses Will be Built

The development of new residential

sites on the Atlantic side is of major importance in the long-range program but

present plans call for the extension of existing townsites of Margarita, Gatun,

and Silver City during the early stages. Until a sufficient number of new houses

have been provided to accommodate those employees and their families now living in quarters which are to be torn down, the demolition program on both the Atlantic and Pacific sides will be on a moderate

scale. In all, 142 houses are to be built with

funds available this fiscal year. These

will provide 182 apartments for local-rate employees and 77 apartments for U. S.- rate workers. The principal construction

area on the Pacific side will be in Diablo

Heights with two houses to be built in the

old Corral area in Ancon. Practically all of the construction activities on the Atlantic side will be centered in Gatun,

Margarita, and Silver City.

The site preparation for construction planned in the existing towns during the coming fiscal year will require little demolition on the Atlantic side. Two areas have been designated for clearance on the

Pacific side this year, one of which in- volves the removal of the entire block of old-type quarters on Reservoir Road and

along Ancon Boulevard and Chagres

Street to the beginning of the old Corral

residential section. The second and smaller area to be cleared will be the section on Pyle Street and the end of Morgan

Avenue near its junction with Balboa

Road. Demolition of these houses has

already been started.

This Year is a Sample

Most of the quarters in the Pyle Street- Morgan Avenue section have already been vacated but the transfer of the occupants of the Ancon quarters still is to be done and this is now being given

full attention by Housing Division offi- cials since it is planned to have these quarters removed in time for the major

grading and site work during the coming

dry season. A number of houses on Ancon Boule- vard to be demolished have already been

vacated but there are approximately 35

family quarters in the area, mostly along

Chagres Street, which are still occupied

in addition to nearly 25 bachelor employees assigned to the Reservoir Road quarters.The evacuation of the Ancon area is but a sample package of {See page 5)
November 3, 1950 THE PANAMA CANAL REVIEW

Incorporation Law Requires

Basic Alterations For Canal

(Continuedfrom page 1) the bounds of his home county nor have the faintest idea of the location of the Panama Canal but he knows there is a Panama Canal and a Canal Zone and to him it will be only a

logical step forward to understand that

the former is operated by a company and

the latter run by a government.

Organization Lines Clear

Another petard with which the average employee will not be hoist in the future - he will not have to explain to himself or othersthe cliff srances and lines of demarcation among such entities as the Panama

Canal, The Panama Canal, the Panama

Railroad, the Panama Line, and the Pan- ama Railroad Company.

In relation to his work, where he buys

his food, who rents him the house he lives

in, and who furnishes his light and water, the Canal-Railroad employee will learn some new terms. The Canal Zone Police- man can still be called a Canal Zone Cop

in all correctness after next July, but in nine cases out of ten the employee will have a company president as the big boss

instead of a Governor. It is unlikely that

the spoken title of Governor will change

since he will continue as Governor of the Canal Zone but in most cases the written

title in official language will be another

matter. These many inconsequential adjust- ments which employees will experience

in their day-to-day life are by no means

indicative of the profound change which

will come with the incorporation of the Canal-Railroad enterprise.

No piece of legislation since the passage

of the Panama Canal Act of 1912 compares in significance for the Canal and

Railroad with Public Law 841, entitled "An Act to authorize and provide for the maintenance and operation of the Pan- ama Canal by the present corporate ad- junct of The Panama Canal, as renamed;

to constitute the agency charged with the

civil government of the Canal Zone, and

for other purposes."

Technically, the law provides for the

transfer of all functions of the operation

and maintenance of the Canal and any

related business operations to the Panama

Railroad Company, and changes the name of that company to the Panama

Canal Company. The remaining units, those charged with civil government, public health and sanitation, will be consti- tuted the Canal Zone Government.

President Directs Change

Upon his approval of the measui-e which passed both the House and Senate by unanimous vote, President Truman,

on September 26, directed this change to be made effective July 1, 1951. Primarily, the change will affect administrative and fiscal matters, and it appears

unlikely that the incorporation will re- quire any disarrangement or alteration by

the rank and file of employees and their families in their lives or manner of living.

The basic principle upon which the change is hinged is the establishment of a

single, business-type financial and administrative structure for the operation of the Canal and Railroad. The administrative framework for this new structure was

established last July when the reorganization became effective and relatively few

other changes of this nature will be re- quired by the incorporation.

To The Employees . . .

Washington, D. C.:—No Comjress since

the establishment of The Panama Canal

has produced so much Icjislation of far- Teaching consequences to the organization

and of vital interest to the employees as

the 81st. Of the legislation enacted, the three meas2ires of greatest interest and importance

were those providing for the incorporation of

all Canal-Railroad operations except civil govern- ment and public health

services; extension of the Income Tax to the Canal

Zone; and the appropriation of $2,500,000 to initi- ate an $80,000,000honsing

program. Of the three major pieces of legislation, by far the most consequential from

an Administration view- point is the measure for

providing a corporate body

to operate and maintain

the Panama Canal and its various adjuncts. That corporation loill be known as the Panama Canal Company.

Although nFederalGovcrnment corporation,

it will operate as a strictly business enter- prise within certain statutory limits. The

key requirement will be that the new Company pay its own way. The proposed change from a Government

agency to a corporation has long been advocated for the Canal by the Bureau of the Budget. The enabling legislation was intro- duced in the 81st Congress at the instance

of the President who has now directed that

the change be made effective.July 1, 1951. The transformation will require a complete change in our adtninistrative and fiscal processes. Fortunately, as a result of the Canal- Railroad reorgariization last July,

the change will be of a routine natiire for

the vast majority of our employees and I anticipate no serious adverse effects to the welfare and general living conditions of our

employees as a group or individually.

It will be a matter of some months yet until the full pattern of this intricate pro- cedure has been determined. Even at this

stage, however, I am fully confident that no

existing rights of Canal- Railroad employees

will be abrogated or materially altered, or

that any new or undue burden icill be placed

unnecessarily upon them. I feel equally sure that the change, when it is effected next July, will bring no perceptible alteration to the pattern of our lives in the CanalZone.

Undoubtedly, the Income Tax measure

has been received with the least equanimity

of the three pieces of legislation. This is understandable since it represents an out-of- pocket expense of considerable magnitude to the employees. The dampening news of the passage of this measure was further aggravated by the retroactive feature of the legis- lation.

The application "of income 'tax to the Canal Zone has been a matter of concern to Congress (and budgetary officials) over a

period of many years and it was to be ex- pected that, sooner or later, such a step would be taken. As for the provision of the new law providing for a payment of the tax retroactively

to the beginning of 1950,

the Canal administration has voiced its strongest dissent. Legislation is being introduced to eli- minate this unjust feature and any proper means

will be taken to have its provision stricken. Adequate and comfortable hotisingfor all of our employees has been a

matter of grave concern to

the Canal administration

over a period of many

years. Congress has now

authorized funds to initiate a comprehensive program designed to end this serious problem. Apparently, only

a worsening of world conditions will prevent

the uninterrupted prosecution of this pro- gram. I have no doubt that every employee

shares my feeling of deep satisfaction that

the solution appears at hand. Perhaps partly as a result of the drastic changes being required loithin our com- munity within a short period and partly by

reason of world tensions generally, an unreasoning and mass feeling of impotence

and fear seems to have gripped many employees and with them their families. Evidence of this condition has been the many completely unfounded rumors which

have been circulated. I can not too strongly

condemn participation in this practice. It constitutes a serioiis impediment to the Canal administration and serves only to stampede many into hasty action which

they othenoise might not take. However much our daily lives on the Isthmus may be affected by actions of local importance, it must be recognized that world

events, already shaped, are of such serious consequence that none of us, ichether we live on the Isthmus of Panama, in the United

States, or in any other part of the world where free people live and democratic principles prevail, can shirk a burdensome re- sponsibility for many years to come. The

financial and economic conditions our country is now facing mean that the normal pattern of our lives will be altered regardless of our individual will in the matter. It has become increasingly apparent that only })y these sacrifices may we and future generations escape more dire circumstances.

7V(.

Governor

The fiscal framework—who is going to pay how much to whom for what—still

is to be erected. As Governor Newcomer

told a press conference shortly before he

left on his present visit to Washington,

this will be a complicated problem. Most

of those who have delved into the subject

will agree that this is an understatement

of the first magnitude. It is unlikely that

the average reader could follow, without

weeks of study, the tortuous financial and

accounting trails which will lead to the

final answer. Needless to say, it is causing more midnight oil to be burned by

the highest administrative officers of The

Panama Canal than is consumed by any

like number of GS employees wrestling

with their income taxes. Canal Must Pay Its Way

The law providing for the incorporation

establishes the fundamental principles

and basic formulas for the change. Of

primary importance, it calls for the new company to pay its own {See page 19)
THE PANAMA CANAL REVIEW November 3, 1950

Zone School System Will Observe 45th Birthday

In February With Many Ail-Time Peaks in View

The Canal Zone school system which

celebrates its 45th birthday next Januarv

2 is presently well into one of the peak

years of its history.

While the school system of today compares favorably with the best in any metropolitan area in the United States, it had

its beginning on January 2, 1906, as a one-room affair at Corozal with about

seven pupils, some borrowed desks and

chairs, and a few sample textbooks. This year's total enrollment from kin- dergarten through junior college will about equal or slightly exceed the high

record set last year, according to Dr. Lawrence Johnson, Superintendent.

The one-room schoolhouse of 45 years ago has now grown to a plant worth about

$3,500,000 with 16 kindergartens, 17 ele- mentary schools, seven junior high schools four senior high schools, and two junior

colleges. The few borrowed desks and

chairs of 45 years ago have been changed

for modern educational equipment valued atover $500,000 and consisting not only of desks, chairs, and textbooks, but of specialized machinery for vocational training,

gymnastic and playground equipment,

visual education aids, reference libraries, equipment for military training, and a vast store of other materials required in the modern schoolroom. September Enrollments High

Although the September enrollment in the schools was approximately equal to that of last school year, the figures were from four to five hundred less than ex- pected. The decrease in anticipated enroll- ment was caused chiefly by the transfer

of service units and their families away

from the Isthmus and a continued moderate decline in the civilian population of the Canal Zone. The September enrollment in the white

schools this year was 5,182, or 310 less than September 1949, according to Doctor Johnson. Comparative figures on the September enrollment of the colored

schools, which include the La Boca Junio:

College this year, showed an increase of 246 students, with a total of 4,042 enrolled in September of this year which is a new high record.

It had been expected that approximately 5,600 pupils would be enrolled in the white schools this year. The estimate

of school officials of the number of stu- dents in the colored schools was approximately correct. Decreased enrollments for September

of this year as compared with September

1949 were shown in the elementary, junior and senior high schools, and the junior college, while there was a slight increase in the number of kindergarten

pupils of the white schools. As a result

of major shifts among service personnel

during the past year, some changes in school districts, and other factors, there were wide fluctuations shown in the en- rollment at various schools. Aside from the fact that this year's enrollment is approximately equal to the

all-time record set last year, the Canal Zone school system will inaugurate several major changes and improvements

during its 45th year of existence.

r. SCHOOL'OPENIXG, alike the world over, presented this scene early in September in front of Balboa

elementary school when children and parents gathered for the big'day. As usual, confusion reigned as pupils

got their classroom assignments and slyly judged the temper of their new teachers. More than 5,000 pupils

from kindergarten through junior college, a near record, entered school on the opening day.

CANDID.\TES for La Boca Junior College are shown above on the opening day, bu^\ with registrations and consultations with teachers. Forty-eight of the 100 candidates examined were admitted to the junior

college which opened for the first time this year. Up to this school term, educational facilities were available

in local-rate communities only through the twelfth-grade level.

Perhaps the least publicized but most

important among the advancements this year is the continuation of the curricula

revision inaugurated three years ago. This program, originally designed as a three-year study and change, has been

altered to a continuing, departmentalized

modernization of school methods and curricula. The basic work originally planned

has been completed and in the future the

studies will be confined annually to special phases of the school program, such

as history, science, languages, and oth'^r subjects. Under this plan every principal bracket of educational work in the Canal Zone schools will be brought under critical study at least once every seven years. Many Important Changes

Several changes of major importance

have occurred this year, among these being the opening of Fort Kobbe school

for elementary students on the west side

of the Canal; inauguration of the La Boca

Junior College; establishment of a Junior

ROTC unit at Cristobal High School; and the opening of a kindergarten in Ancon. Only six classrooms have been opened

up to now in the modern school building

at Fort Kobbe with first and sscond

graders being enrolled. It is expected that

five additional classrooms for students up

through the sixth grade will be opened by

the first of the year. Repairs and equipment for the building, first erected in 194

1

but never used as a school building until

this year, were delayed by late deliveries

of materials. Forty-eight students, selected by examination from approximately 100 applicants, were enrolled in the La Boca Junior College which was opened early in September. Formarly, educational facili- ties were provided in th^ local-rate communities only through the twelfth-grade

level. This included normal training for teachers in addition to the specialized

training provided in the occupational

high schools. The opening of the junior

college will provide general education and

terminal courses for those students who

wish to complete their formal education

in two years of work beyond high school

level, or to prepare students for entrance

in accredited colleges for additional traini'lS- ROTC Organized in Cristobal

- The organization of a cadet corps for Junior ROTC training at Cristobal High

School was made possible when the mini- mum requirement of at least 100 eligible

male students enrolled was met. The

Balboa High School unit was organized two years ago and both units will be under the command of Major Wayne L. Bart, Professor of Military Science and

Tactics at Balboa High School. Highlight of the extra-curricular activities in the Canal Zone (See page S)
November 3, 1950 THE PANAMA CANAL REVIEW

Bulldog Starters Against Miami High

SPUPiTri SPECTACLE of the year for Canal Zone

football fans is scheduled for Friday night. Xovember

24. when BalHoa Hiffh meets Miami Jackson High, of Miami. Fla.. in the &st intersectiona! scholastic event

ever held in the Canal Zone. The Balboa team ha? rnn^ up an amazin? record

of victories since tackle football was introduced in Zone schools last year. Coach -John Fawcstt will

have his charge- in tip-top condition for th« Thanksgiving game in Balboa Stadium which is expected to be packed to capacity. Tickets are now on sale for $2 each and no seats will be reserved. Coach Fawcett presently plans to u.se the players shown above in the starting lineup. In the back row, Ufl to right, are: Coach Fawcett; Ray Nickisher, quarter; James May, half; Sam And Their Helpers

nil, ^1 \l( 1 i 1!^ ui th Balliua-Mumi fame mM Imm ' i' " ' i

i <nch naitmg to gel uito the game. T hese members of the varsity squad have had plenty of experience in interschclastn games this yea-

.

In the back row above, left to right, are: Frank Mayo. Student Association President; T. F. Hotz. Principal of Balboa High School; Paul Jamesson. half; Dave Schorr, half; Bob Morris, full: Charles Updike, quarte,

;

Bob Preacher, half; and Elmer Powell, financial adviser to the ,?tudent association. Front row. left ta right, are: Ray Davidson, end; Kenneth Garrison, tackle; Frank Bryan, guard; Ed Coe,

center; Bill Riley, guard; Jay Troup, tackle; Bob Blakely, tackle; and Lee Brooks, end.

ZONE SCHOOL SYSTEM WILL

OBSERVE 45lh BIRTHDAY

New Towns and New Types of Houses

Are Planned in Zone Building Program

(Continued from pays J,) schools this year

will be the first interscholastic athletic competition between a Canal Zone high

school and one from the United States in

a major sport. This will take place at Balboa Stadium on November 24 when

the Balboa High School football team

meets the Miami Jackson High School team from Miami, Florida. This is only

the second year in which interscholastic tackle football has been played at the

local high schools, but it has already

attracted the largest crowds of any school

sports program and the Thanksgiving game, with its international flavor, has

already centered public interest in the outcome and is expected to attract the

largest crowd ever to see any scholastic contest held in the Canal Zone.

{Continued from page 2) the problem

which must be solved before any extensive areas may be cleared of residents when the building program is in full swing.

Much attention is being centered at the

outset of the housing construction pro- gram on the types of houses to be erected. To effect the greatest possible savings

both in design work and construction it is planned to confine the entire building pro- gram to relatively few "types" of houses. The U. S.-rate quarters construction program for this fiscal year will include two entirely new types. Reproduction of the floor plans and measurements of one

of the new houses are carried in this issue

of The Canal Review. The other new

house plans are for a two-bedroom, masMaphis, full; Dick Johnson, half; Walter Nolan,

backfield coach; and Master Sergeant George Wood,

line coach. Front row, left to right, are: Leon Herring, end; Cad Meissncr, tackle; Dick Dillman, guard; Ralph

Hulls, center; Irwin Frank, guard; Clair Godby,

tackle; and Bill Forbes, end.

onry cottage which embodies new ideas

in the utilization of floor space.

In addition to these two new types, of which only a few are to be built the first year, it is planned to confine the U. S.- quarters construction this year to the onestory, two-apartment mason -y houses now in use in Diablo Heights and Margarita, and to the composite one-family

cottages and duplexes built this year in the San Juan area in Ancon.

Present plans for local-rate quarters are

for theconstruction of only masonry buildings at grade level. Standardized floor plans of the most desirable types already

developed in the Camp Coiner and Paraiso masonry houses will be used. Composite and Masonry Houses

Forty-seven of the units to be built this

fiscal year for U. S.-rate p3rsonnel will be composite-type houses. Eleven of these houses will be one family cottages and the

others will b? twin-apartment buildings.

Five of the houses will be located on Rains Street, Diablo Heights; two on Guayacan Terrace in the old Corral area

in Ancon; five in Gatun in a residential area to b? developed south of Schoolhouse

Road; and 16 on First and Sixth Streets

in Margarita. Nine of the composite-type

houses in Margarita and two of those in Gatun will be one-family cottages and all the others will be duplexes.

All of the U. S.-rate masonry houses to be built this year will be located on Morrison and Endicott Streets in Diablo

Heights. These will include four twofamily buildings, five of the new one-family cottages with the breezeway between

the living and sleeping quarters, and nine

of the recently developed two-bedroom

cottages.

All of the 182 family units for local-rate employees scheduled for construction this year will be located in Silver City in the unoccupied area roughly paralleling the Colon Corridor. All the buildings will be

two-family structures. Thirty of the

buildings will have four-bedroom apartments, 30 will have three-bedroom units, 22 will be two-bedroom apartment buildings, and 10 will have only one bedroom

in each apartment.
THE PANAMA CANAL REVIEW November 3, 1950

''Lefs have another

cuppa cawfee!''

The Wise Owl says:

"That's where the money goes

OTHER EXPENSES 23%

SUPPLY AND BREAKAGE 3%

CREAM 14% AND SUGAR

COFFEE 30%

LABOR 30%

The above invitation is almost the

national chant in the United States,

whether one be in New York or California, North Dakota or Louisiana. It is true

that coffee differs in consistency in vari- ous parts of the country, some communities preferring one blend and some

another, but most Americans drink coffee,

whether it be a daily ration of one cup of

hot milk slightly flavored with coffee or

the 30 to 60 cups of black coffee con- sumed daily by Oscar Levant, the famous

pianist. With this in mind, we hope that you will be interested to learn a little about what it costs the Clul)house I])ivision to place a cup of fragrant, steaming-hot coffee before >'ou.

Like everything else, the cost to produce a cup of coffee has risen and is still rising. For

instance, the coffee urn that cost $276 in 1940 costs $610 today: the Glendale cup and saucer

that cost 39 cents in 1940 costs $1.17 today; the pound of coffee that cost 22 cents in 1941 has

increased in price to 76 cents; a can of evaporated milk from 9 cents to 14 cents; 5 lbs. of sugar

from 18 to 54 cents. Labor costs have risen locally in excess of 200% since 1940.

The only price that has remained the same over the years is the

FIVE CENTS paidfor a cup of coffee at yourfavorite Clubhouse

The composite figures below are based on what it costs the

Clubhouse Division to produce a cup of coffee:

MATERIALS: Cost per cup

Coffee, 50 cups per lb. @ .6732 per lb 1.346)^

2| gallons heated water __. .007/

Sugar @ .0742 lb. and evaporated milk @, .1284

per can, 1 oz. portion, assuming that 20% of

patrons drink black coffee .722."' 2.075/

Shrinkage and waste amount to 7% 145^'

Material cost per cup 2.220,^

LABOR COSTS:

Preparing coffee .153(^

Serving coffee 1 .044;^' Bussing, washing and

handling cup and saucer _ .292/

Labor cost per cup 1.489^

SUPPLY AND BREAKAGE COSTS;

Washing supplies .060/

Breakage pro-rata .099/

Supply-breakage cost per cup .159/

Cost of one cup of coffee, labor, materials, etc. 3.868/

Left to cover such items as cost of maintenance, depreciation, and general supervision, which are omitted as being

essentially a burden rather than controllable cost elements 1.132?

YOUR CUP OF COFFEE Cents

This page is devoted exclusively to news of the Clubhouses and Theaters prepared by the Clubhouse Division
November 3, 1950 THE PANAMA CANAL REVIEW

The "Chief Quartermaster" Leaves

An Official Panama Canal Publication

Published Quarterly at BALBOA HEIGHTS, CANAL ZONE

Printed by the Panama Railroad Press Mount Hope, Canal Zone

F. K. NEWCOMER

Governor HERBERT D. VOGEL

Lieutenant Governor

E, C. LOMBARD

Executive Secretary

J. RUFUS HARDY

Editor On sale at commissaries, clubhouses

and hotels in the Canal Zone at five cents a copy.

The printing of this publication has

been approved bv the Director of the Budget on March 9, 1950. LETTERS TO THE EDITOR

Letters containing inquiries, suggestions, criticisms or opinions of a general nature will be accepted. In all cases

possible, letters to the Review will be

answered individually. Those of suffi- cient general interest will be published

in this paper. Letters must be authentic and be signed although signatures

will not be published unless requested

and names of authors will be kept confidential. Return address should be

given but the Review will not undertake to return correspondence of any

nature.

Canal Review Envelopes

and Binders Now on Sale

Special envelopes for mailing The

Panama Canal Review are now on

sale in all commissaries, clubhouses,

and the two hotels. Three different Canal Zone scenes are used for your

choice. The use of the attractively

printed envelopes permits the mailing

of the Canal Review for three cents

a copy to any address in the Postal Union. The envelopes sell for three cents each or two for five cents. Fold your copy once, insert in envelope with

string fastener, and mail unsealed. Copies of The Review mailed to your family or friends save much letter writing.

Binders for your permanent file of The Canal Review are now available

in the larger commissaries and club- houses for 40 cents each. Speciallymade imitation leather or genuine

leather with your name in gold leaf may be ordered direct from the Pan- ama Railroad Press. The imitation

leather binders cost $2 each and genuine leather binders may be obtained

for $6 each.

SUBSCRIPTIONS

Mail subscriptions for four issues of "The Panama Canal Review" will be

accepted at 40 cents each.

If subscriptions are to include this issue they must be received no later than November 15. Subscriptions should be mailed to the Editor, "The Panama Canal Review," Balboa Heights, Canal Zone.

Postal money orders included with the

order should be made payable to the

Treasurer, The Panama Canal.

L. W. LEWIS, Supply and Service Duector, shown in a familiar pos3 at his office at Balboa Heights,

leaves this week following his retirement at the end of October. He and Mrs. Lewis will make Hendersonville. North Carolina, their future home. Known to thousands of Isthmians for the past 36 years as "Duke."

Mr. Lewis is the last Bureau Dii'ector of the Canal-Railroad organization who entered the service during the Canal construction period. One of the outstanding achievements of his 36-year service with the Canal was

the successful prosecution of the $80,000,000 housing program which is being initiated this fiscal year.

THE EDITOR'S MAIL

Three letters of more than passing interest to Canal-Railroad emplo>-ees and Canal Zone residents generally, giving helpful

suggestions or criticisms, are presented in this issue of The Can.\l Review. Two free tickets to their favorite Clubhouse theaters

will be sent to each of the three letter- writers. Their letters follow;

Sir: There are many small parks or grassy plots

in the Canal Zone which lend themselve..? admirably

to the planting of colorful native shrubs and flowering plants. Among those which come to mind are those

in front of Ancon Commissary, in front of Balboa

Clubhouse, the parkway along La Boca Road, the

circular plot around the flagpole in Pedro Miguel, and many others. Why not demonstrate a little civic pride and beautify these areas?—.'\. L. T.

.\. L. T.: The Grounds Maintenance

Division has alread\- begun the beautilication of the parkwa>' in front of .\ncon

Commissary and undoubtedly others will be done as you suggest. —Ed.

Sir: Could not The Panama Canal adopt a system

of cooperation between its schools and the Health Department for the benefit of parents and which has worked to advantage in many States communities? When children are exposed to contagious diseases in

schools, their teachers give them mimeographed slips

of paper which read somewhat like this: Your child

ha.:, been e.xposed to (name nf disease). The probable

dat« of exposure was (date). The incubation period

is from '

) to ' ) days. A brief description, prepared by medical authorities, is given of the symptoms of the parti,;ular disease.—P. A. 0.

Sir: Why. oh, why, can't the commissaries devise some better pricing system? With the present system

of jacking prices up and down, mostly up, every day

it is impossible for me or anyone else to kaep any

kind of family budget. On my last visit to one well- known commissary, I had a can of vegetables rudely snatched from my hands by the clerk and the price upped two cents liefore I could protest. I appealed to the Manager and you know how much good that did me. It seems to me that prices could be changed

once a month or once a week and done outside of business hours. I know the commissaries do not buy

a new suppiv of canned beans or what have you every day.—L. A.' M.

Editor's Note—Both of the above suggestions have been referred to the proper Canal-Railroad authorities and steps have

already been initiated to efTect the changes

suggested.

Three letters from former well-known

Canal officials, recently received, are quoted

in part below:

"I want to thank you for sending me The Review

and to say how much I appreciated reading it through. Those of us who are retired but who still retain the

greatest interest in everything about the Canal will appreciate this renewed contact. I congratulate everyone concerned in the initiation and production

of tliis excellent publication."

Maj. Gen. Clarence S. Ridley, Retired Carmel-by-the-Sea, California. Governor, The Panama Canal, 1936-40

"The .\ugust 4, 19.50, issue of The P.\n.\ma Canal

Review wjiich you so kindly sent me has been

received. Thank you very much. I have found it most interesting and informative."

A. R. Lang, Dean of Administration Fresno State College, Fresno, Cal. Former C. Z. Schools Superintendent.

"It was a real pleasure to read this publication and

to note the changes in the Canal organisation. I am

in search of a loophole under which I could purchase and have forwarded to me copies of The Panama

Canal Review. If such is practicable, I would appreciate very much hearing from you as to the proper

procedure. Raymond C. Judd

2625 Ripley Street Davenport, Iowa. Former P. C. Planning Engineer.
THE PANAMA CANAL REVIEW November 3, 1950

Passengers Feel At Home On S. S. Cristobal

Crew Resembles Happy Family Aboard Liner

With Homelike Atmosphere For Travellers

An officer of the S. S. Cristobal called her "a happy ship." "Some are born that way," he said.

If the character is a birthright, it probably was inherited from the crew, several of whom have been aboard since the

Cristobal came out from the Fore River

Yards in 1939 and on the former Crixtobal and other Panama Line ships before that. Captain Erik J. Eriksen, full of conversation and pride in his ship and family,

counted off some of the Panama Line old- timers on the Cristobal. Mrs. Louise Kirchner, Stewardess, now

73 and the great grandmother of five, is "the most important person on the ship,"

according to the Captain. She and the

other Cristobal Stewardess, Mrs. Frances

Daniels, a comparative newcomer, take

care of the women passengers and the

children. Other crew members characterized Mrs. Kirchner as "everybody's

mother" and "the Pied Piper of Pier 64 and Cristobal docks" because of her habit

of feeding the cats, dogs, and pigeons on

both ends of the run. William M. Jones, long-time Cristobal Room Steward, was described as "the

perfect Jeeves" with a "Cunard Line

personality" because of his habit of "knowing what passengers want before they know they want it." Then there is the popular Chief Deck

Steward, Henry Kenny, who is "full of stories and wrong information for the

children," according to shipmates.

Many Old -Timers in Crew

Other old-timers who contribute to the

Cristobal'^ composite personality are: Manuel Coutinho, Carpenter, whose service dates back to 1931; August Mannonen, Quartermaster, who has been with

the line for 31 years; Dave Hook, Room

Steward, another veteran of 26 years;

I

HIGHEST PRAISE for his corps of old timers in the crew of the S. S. Cnsluhal is voiced by Captain

Eriltsen on frequent occasions. Most of them have

been '^ith the ship throughout its peacetime service

since it was launched. Several crew members have more than 25 years of service with the Panama Line.

Martin Bugalski, Second Assistant Engineer, whose service began in 1924; and

Joseph Carl Volk, Steward Department

Storekeeper, who is Mrs. Kirchner's

brother and joined the Panama Line soon after her. Captain Eriksen first went to sea at the age of 14 on a Norwegian barkentine. He

has been with the Panama Line since 1927 when he began his service as First Officer on the S. S. Guayaquil.

The other officers are: First Officer Charles L. Foley, who

came to the Cristobal in February 1947 from the Trial Board Section of the U. S. Maritime Commission.

Chief Engineer Edward Carlson, origi- nally from Sweden, has been with the Panama Line 23 years. He says the captain's Norwegian blood and background

cause no trouble between them.

Purser Helped Build Ship

Chief Purser Lambert W. Gustafson,

like the Cristobal, was born at Quincy,

Massachusetts. He obtained his first sea- going job on the maiden voyage of the present Cristobal after working on construction of the ship while employed in the Fore River Yards of the Bethlehem

Steel Corporation.

Chief Steward Marcello Facchina was

employed in 1939 to standardize the food and service on the three Panama Line

ships, all of which were new at the time. He came to the Panama Line after the war following a year-and-a-half vacation

taken to recuperate from the wartime

tribulations of managing the La Salle du

Bois Restaurant in Washington, D. C. Chief Cook William G. Mauss, who has

"revolutionized the hors d 'oeuvTcs department and is a first-rate baker," came to the Cristobal in April following his retire- ment as Chief Commissary Officer at the

?*>>*'^*'* U>)^

The officers and crew of the "happy ship" provide a homelike atmosphere for the passengers, some of whom even say "home was never like this." In the above picture, left to right, arc: Mrs. Louise Kirchner, stewardess and great grandmother of five, who is called the most important person aboard ship by the

Captain Erik -I. Eriksen

Merchant Marine Academy at Kings

Point, New York.

In design and mechanics, the Cristobal

is nearly identical to her sister ships, the Ancon and Panama. Designed for cargo and passenger service between New York

and Cristobal, the vessels cost $5,000,000

each, are 492 feet long with a beam of 64 feet, have a maximum speed of 22

knots, and displace 14,200 tons. Author

of the vessel's sleek, modern design was Raymond Loewy, one of the foremost

United States industrial designers.

Many Served During War

Captain Eriksen and several other

present members of the Cristobal crew remained on the ship throughout her four years and five months of service as an army transport during World War II. One

of her last Army assignments (See page 18)

1

]

!

Captain; William G. Mauss, Chief Cook; Manuel

Coutinho, Carpenter; August Mannonen, Quartermaster; William M. .Jones, Room Stewa,-d; .Joseph Carl Volk, Steward Department Storekeeper; and

Martin Bugalski, Second -Assistant Engineer.
November 3, 1950 THE PANAMA CANAL REVIEW

Canal Administration Backs Fight On Taxes

In 1950 As Employees Figure 1951 Budget

The Canal Zone resembled nothing less than a well colonized ant hill with the

entire top suddenly removed on September 22 when residents read the startling headlines in the daily press that they

already owed Uncle Sam sums ranging up

into the hundreds of dollars as income tax

for 1950. Lulled by assurances that "Congress

can't do this to us," the news came as a shock of the first magnitude to the aver- age Government worker who was already

scratching his head over the problem of

his 1951 income taxes. Angry nonconstit- uents gathered in knots and tight circles throughout the day to discuss the situation. Action was not long delayed. Before the ink was barely dry on the

first newspaper to carry the news, Governor Newcomer dispatched a radiogram

to Washington strongly protesting the

action. Meanwhile, he instructed the General Counsel's Office to prepare legis- lation for introduction in Congress to

strike the retroactive provision of the tax measure.

Representatives of the various labor

SOCIAL SECURITY

EXTENDED TO C.

Social Security benefits will be ex- tended to about 400 Canal-Railroad

employees effective January 1 as a

result of the provisions of the Social Security Act Amendments of 1950. Employees to be affected are generally those United States citizens who are not included in other gov- ernment retirement systems, in- cluding part-time and temporary

personnel, those who are paid on a contract or fee basis and other small

groups excluded by other legislation. As in the case of deductions for re- tirement, the deductions for Social Security will be in addition to the income tax withholdings.

The Social Security tax to be paid

by these employees after January 1 will amount to 1 '^ percent on the

first $,?,600 of salary received and will be paid by payroll deduction. The

employer contributes an equal

amount. The rate of I'i percent

applies thiough the calendar year

of 195.^ after which it increases to

2 percent through the calendar

year 1959.

and employee groups met the following

day to discuss strategy and plan concerted

action. News was also received that day

that Senator Edwin C. Johnson, of Colorado, had introduced a measure before the

recess of Congress to kill the retroactive

feature. With the issue of the 1950 taxes in the

lap of Congress and hopes alternately

rising and falling, the average Canal Zone

worker has by now steadied himself to determine what to do about his paychecks next year which will be docked for the first time in January in amounts ranging from 30 cents up to more than one hundred dollars. The full picture of how paychecks or receipts will look after the withholding

tax deductions have been made is given

in the adjoining columns of The Canal

Review.

All Canal and Railroad employee

citizens of the United t.Se3 page tS)

INCOME TAX WITHHOLDING TABLES FOR EMPLOYEES PAID BIWEEKLY

Employees concerned with the amount of money

to be taken from their check every pay period may

uje the income tax withholding tables shown below

if they are paid biweekly, as are the great majority

of Canal and Railroad employees, or they may compute their own withholdings by the percentage method. The -computation by the percentage method can

be made by the following process: Subtract from

the annual salary the number of exemptions multiplied by $667.00. The annual amount to be withheld for the entii-e year will be 18 percent of this amount, ivhich can be divided on a weekly, biweekly.

semi-monthly, or monthly pay period basis. Canal

employees paid semi-monthly, for example, would

divide the result obtained in the computation by 24

to obtain the correct result.

It is to be noted that this method of computing

the income tax withholdings and the table given be- low for those paid on a biweekly basis are both

based on the assumption that no more than about

10 percent of an employee's salary is spent for those

items which may be deducted in the final mcome tax

returns, such as contributions for charity, interest,

taxes, casualty losses, medical bills, and other such

items.

If the wages are

And the number of withholdmg exemptions claimed is— .

At

least

But

less

1 2 3 4 5 6 7 8 9

10 or more

than The amount of income tax to be withheld shall be—

$104 $106 $18.90 $14.30 $9.70 $5.10 $.40 $0 $0 $0 $0 $0 $0

106 108 19.30 14.60 10.00 5.40 .80

108 110 19.60 15.00 10.40 5.80 1.20

110 112 20.00 15.40 10.70 6.10 1..50

112 114 20.30 15.70 11.10 6.50 1.90

114 116 20.70 16.10 11.50 6.90 2.20

116 118 21.10 16.40 11.80 7.20 2.60

lis 120 21.40 16.80 12.20 7.60 3.00

120 124 22.00 17.30 12.70 8.10 3.50

124 128 22.70 18.10 13.40 8.80 4.20

128 132 23.40 18.80 14.20 9.60 4.90 .30

132 136 24.10 19.50 14.90 10.30 5.70 1.00

136 140 24.80 20.20 15.60 11.00 6.40 1.80

140 144 25.60 20.90 16.30 11.70 7.10 2.50

144 148 26.30 21.70 17.00 12.40 7.80 3.20

148 152 27.00 22.40 17.80 13.20 8.50 3.90

152 156 27.70 23.10 18.50 13.90 9.30 4.60

156 160 28.40 23.80 19.20 14.60 10.00 5.40 .70

160 164 29.20 24.50 19.90 15.30 10.70 6.10 1.50

164 168 29.90 25.30 20.60 16.00 11.40 6.80 2.20

168 172 30.60 26.00 21.40 16.80 12.10 7.50 2.90

172 176 31.30 26.70 22.10 17.50 12.90 8.20 3.60

176 180 32.00 27.40 22.80 18.20 13.60 9.00 4.30

180 184 32.80 28.10 23.50 18.90 14.30 9.70 5.10 .50

184 188 33.50 28.90 24.20 19.60 15.00 10.40 5.80 1.20

188 192 34.20 29.60 25.00 20.40 15.70 11.10 6.50 1.90

192 196 34.90 30.30 25.70 21.10 16.50 11.80 7.20 2.60

196 200 35.60 31.00 26.40 21.80 17.20 12.60 7.90 3.30

200 210 36.90 32.30 27.70 23.10 18.40 13.80 9.20 4.60

210 220 38.70 34.10 29.50 24.90 20.20 15.60 11.00 6.40 1.80

220 230 40.50 35.90 31.30 26.70 22.00 17.40 12.80 8.20 3.60

230 240 42.30 37.70 33.10 28.50 23.80 19.20 14.60 10.00 5.40 .80

240 250 44.10 39.50 34.90 30.30 25.60 21.00 16.40 11.80 7.20 2.60

250 260 45.90 41.30 36.70 32.10 27.40 22.80 18.20 13.60 9.00 4.40

260 270 47.70 43.10 38.50 33.90 29.20 24.60 20.00 15.40 10.80 6.20 1.50

270 280 49.50 44.90 40.30 35.70 31.00 26.40 21.80 17.20 12.60 8.00 3.30

280 290 51.30 46.70 42.10 37.50 32.80 28.20 23.60 19.00 14.40 9.80 5.10

290 300 53.10 48.50 43.90 39.30 34.60 30.00 25.40 20.80 16.20 11.60 6.90

300 320 55.80 51.20 46.60 42.00 37.30 32.70 28.10 23.50 18.90 14.30 9.60

320 340 59.40 54.80 50.20 45.60 40.90 36.30 31.70 27.10 22.50 17.90 13.20

340 360 63.00 58.40 53.80 49.20 44.50 39.90 35.30 30.70 26.10 21.50 16.80

360 380 66.60 62.00 57.40 52.80 48.10 43.50 38.90 34.30 29.70 25.10 20.40

3S0 400 70.20 65.60 61.00 56.40 51.70 47.10 42.50 37.90 33.30 28.70 24.00

IS percent of the excess over $400 plus—

$400 and

over 72.00 67.40 62.80 58.20 53.50 48.90 44.30 39.70 35.10 30.50 25.80
10 THE PANAMA CANAL REVIEW November 3, 1950

Empioyee's Actual Income

In Red With Income Taxes

{Continued from page 1) insurance for himself, $1,000 for his wife, and policies of $250 each for the children. His transportation costs, which may

appear high to the average employee, were figured in detail as follows: Depreciation, $500; operation, $177; insurance,

$75; and licenses, $7. He stated that he buys an expensive-make car every two

years, and figures the depreciation at $500 annually.

Health and Education

Most families would be extremely lucky

or healthy, or both, to escape with an

annual health bill for four of only $73.

His medical services included $18 for Xrays, $J5 for medicine, $32 for dental

bills, and $7.50 in dispensary fees. The money he spends for "education"

includes the cost of violin lessons for both

children, cornet lessons for the boy, and

dancing lessons for the girl. Some families undoubtedly spend more than $287

for lessons outside of normal school activity but the majority probably spend

much less. The employee and his family spend

$210 of the amount listed under enter- tainment for gifts within the family and

to outsiders, in about equal proportions.

The remainder is divided as follows: Movies, concerts and plays, $100; hobbies of stamps and photography, $65;

and periodicals, $45. The family subscribes to a local daily newspaper, the Reader's Digest, American Home, Holi- day, Alumni Bulletin, Good Housekeeping, National Geographic, and Coronet.

Listed by him under the item of miscellaneous expenses was $75 for interest on car and personal loans. Vacation Budget in Red

It will be noted that he listed nothing

for vacation. He submitted a separate

budget and statement on this. He and

his family take a vacation every two

years, visiting their families in New York

and Boston with only a few side trips. These vacations cost: Transportation,

$280; automobile freight, $180; travel in the States, $300; luggage, $75; and tips, $30, a total of $865.

'

His budget showed that he has about

$300 a year difference (-Se? page IS)

15 Pairs Of Free Movie Tickets Offered

By Clubhouses In Novel Identity Contest

Here's an opportunity to test your knowledge of the Canal-Railroad organi- zation and your acquaintance with the men and women who help run the Canal

and Railroad. Here is also an opportunity to win two

free tickets to your favorite Clubhouse

theater.

Fifteen pairs of free tickets to any reg- ular movie program are being offered by

the Clubhouse Division to the first 15 pensons to identify the 21 well-known

Canal and Railroad employees whose pic- tures are carried on the opposite page, and tell where they work.

The contest is open to everyone with

Panama Canal Clubhouse privileges,

young and old, U. S.-rate and local-rate employees and their families, both men

and women. Two tickets good for any

regular Clubhouse movie program will be mailed to each of the first 1.5 to identify the employees and name the bureau, division, or branch in which they are employed.

The contest will close at midnight

Thursday night, November 9, and no

entries postmarked after that hour will be considered. All entries must be mailed

at a Canal Zone post office since the time

of mailing will be the determining factor

in cases of ties. Here's how to fill out your entry: Suppose No. 10 is John W. Doe (which it

isn't) and he is employed in the Communications Branch of the Electrical Division, Engineering and Construction Bureau. Enter the name, John W. Doe, as indicated and immediately below write Communications Branch, Electrical Division, or Engineering and Construction Bureau. It is necessary to name only one of the three units and it will not help your score to name more than one. The rules of the contest are simple. Here they are:

1. Use the opposite page of this issue of the Canal Review as your

entry blank. None others will be

considered. Write your name and

mail address in the upper left-hand corner where indicated and fill in the

numbered spaces to correspond with

the pictures.

2. Typewrite or print your answers

in ink. Those entries with illegible

writing will be automatically elimi- nated.

3. Mail your entry or entries to the Contest Editor, The Panama Canal

Review, Balboa Heights, Canal Zone.

Entries will not be accepted unless mailed at a Canal Zone Post Office.

4. Mail your entry before midnight

of Thursday, November 9. The

earlier you send your answers the

better will be your chance for winning two free movie tickets, since only the

first 15 correct or most nearly correct answers will win.

5. Anyone may send more than

one entry but only two tickets will be awarded any one contestant.

6. Either given names or initials may be used in identifying the employees whose pictures are shown.

Names must be spelled correctly. If

initials are used, both initials must

be used. The correct answer in the example given above would be John

Doe, John W. Doe, or J. W. Doe. However, the answer of J. Doe or W. Doe would be marked as incorrect unless it so happened that John

Doe had no middle initial.

7. Identify the unit for which the employee works on the line immediately below his or her name. Use

the bureau, division or branch, but

not more than one. It is as important to have the name of the unit

correct as it is to have the name of the employee correct.

8. For scoring purposes each correct name will be scored two points

and each correct unit will be scored one point.

9. Winners will be decided on the

total number of points and ties will be decided by the hour of mailing or the time stamp used when received.

10. No changes will be permitted

in entries after they have been mailed

and the decision of the Contest Editor will be final.

College Crowd Sails Aboard S. S. Cristobal

THE GAYEST trips aboard the Panama linerg are when the "college crowd" is on its way to or from college. Two of the liners were well filled with college students on their northbound trip this year. This picture was taken aboard the S. S. Cristobal on

its last trip in September shortly before sailing hour

as the students and their friends gathered on the deck. Shown above, left to right, are: Rodrigo Lopez

Fabrega, Calvin Stemple, William Simpson, John

Mayles, Herbert Dawson, Joanne Dougan, Lawrence Sulc, Peggy Sylvestre, Betty Scheibeler, Bob

Irwin, Elaine Lombard, seated forward, Gloria Ives, Virginia Ryter, seated forward, Barbara Wells, and Roger Maduro.
November 3,1950 THE PANAMA CANAL REVIEW

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16
t2 THE PANAMA CANAL REVIEW November 3, 1950

NEWS OF YOUR COMMISSARY STORES

TIIANKSGIVINfl DAY is traditionally a day for a bountiful feast to

celebrate, as our ancestors did, the reaping of a harvest sulScient to provide an

existence until the approaching winter had passed and new crops would again be- come available. In keeping with our heritage, although we

are far from home and with no har\'est to place in barn and cellar, most of ns nevertheless pause on that day to re- count our blessings and to partake generously of the good

food" 30 closely associated with the old-time New Kngland

harvest. All of the ti'aditional foods have been ordered

and, as November 23d approaches, the shelves in the commissaries will be found to be literally bulging with delectable foods, the very names of which occasion nostalgic mouth-watering. First, of crarse, in any

planned Thanksgiving Day menu, is that noblest member of the feathered

Sir THOMAS

kingdom, Sir Thomas Turkey, and to fill the spots around him on the festive board, olives, pickles, and relishes, fresh crispy celery and lettuce, cranberry

sauce (either out of a convenient tin, or the old-fashioned kind made with

fresh berries), fresh, frozen or canned vegetables, fruits of a great variety, pumpkin and mincemeat for the

pies (or delicioub pies fresh from the oven in our Pastry

Sections), fruit cakes, cheeses, mints, and other candies and nuts. Topping off with a cup of your favorite TURKEY '''^"'' "^ freshly roasted and ground Commissary coffee, you will have consumed a meal from your own kitchen that will be un.-ivalled by any that the goiu-met monarcbs of an earlier day

could have assembled.

HOME MAKERS HOLIDAY

1 hu liiK" of Royal Hacger table lamps which we have been carrying has met with such favorable reaction from our customers who

are interested in fresh, modern styles at budget prices, that we

have continued to reorder in additional smart designs and colors. Naturally the home-maker who is first to see the new selections when they arrive will be accorded the best choice, but the late- comer is likewise certain to find one or a matched pair that will be exactly right for brightening up the living room. The wise shopper will keep a close watch on the housewares

section of her commissary for items now on sale or expected in the near future, such as: Delfibre textured rugs; .-^Idon quality-crafted cotton rugs with the .Manized non-skid backing which is guaran

teed for the life of the rug. Of special interest, and expected soon, are new Simmons lounges and matching upholstered club chairs, beautifully tailored and luxuriously comfortable.

In ihe drygoods departments, watch for new chenille and woven

bed-spreads, new curtain materials, damask linen table sets, and a

special purchase of printed lightweight plastic material, suitable for making curtains, table covers and light duty upholstery purposes.

Prices of the last-named material, which comes in .36-inch and

54-inch widths, have not been set yet but will be astonishingly low. The representatives of our drygoods and housewares departments

have just recently returned from their buying trips to the New

York markets, and are enthusiastic in their reports of the comprehensive selections of special gift merchandise which have been

purchased for the approaching holiday season, and at such reason- able prices. A few of the outstanding lines we'll be able to offer

in the near future are: boxed jewelry for men, women, and teenagers, dresser sets, atomizers, toiletry sets of nationally advertised brands and the new fashion accessories. We believe our women

customers will be pleased with our seleclion of lingerie, purchased

just before recent price increases. In our efforts to improve our

lines of women's and girls' dresses in ample time before the holi- days, we are pressing manufacturers for delivery of selections made

from the holiday lines, which contain styles and materials suitable

for our perpetual hot climate.

In this connection, possibly many of our customers have in the past overlooked the fact that many manufacturers of better dresses do not make summer-types of dresses throughout the year, the remainder of the year being devoted to making heavier weight and

darker garments which would be unsuitable locally. The problem

is that we wouldn't care to take one large lot of the same style of dress for sale for an entire year due to the certainty that styles

will change within a shcrt time. Then, when we go back into the

market- for further supplies, we confirm our knowledge, gained

over a period of many \cars, that we either have to select from

the so-called cruise lines, accept limited assortments or, as has happened in the past during difficult times, do without fresh stocks.

GOOD NEWS FOR REFRIGERATOR BUYERS

Distribution to proud owners of the new VVestinghouse electric refrigerators was begun about three weeks ago, and is continuing

as rapidly as our Service Mechanics can make installations. Originally priced attractively, the first purchasers were very agreeably

surprised to be informed a little later that there was a reduction in price and that those who had already acquired (and paid for) the boxes were to receive a refund. Those who arranged for the deferred payment plan will find monthly payroll deductions proportionally

smaller than had been anticipated. Reason for the reduction is that the supplier found his manufacturing costs to be less than had been previously calculated, thereby enabling us very happily to pass on the saving to our

'customers.

CHRISTMAS IS IN THE OFFING ONCE AGAIN

Santa's first official visit to the Zone this year, on October 22d, was an outstanding success with the youngest generation of Zonians, who had been eagerly anticipating his arrival, and again convinced not a few slightly skeptical elementary school children

that this business about there being a Santa Claus might not be

as much of a myth as they perhaps thought. From the quantity

of toys purchased two days later at the Toy Sale, it can be ex- pected that all Zone children will have as merry and complete a Christmas this year as they have ever had.

Lionel trains and accessories, which were not offered with the

general and complete line of toys last month, will be placed on

sale on Tuesday, November 14, and will consist of many items

of interest to local operators of "tin-plate" railway systems, as

well as to the children and their parents. Christmas cards and

gift wrapping materials will go on sale the same date as the model

trains and accessories. On December 5th, a complete assortment

of Christmas tree oi"naments and Yule-tide decorations will be

offered for sale. Christmas trees, the large natural kind that smell so Christmas-y

and the miniature chemi-colored table size in both green and sil- ver, have long since been ordered and will be on hand in plenty

of time for the decorating to be completed a few days before Christmas. Detailed announcements with regard to dates of taking tree orders, and delivery to Canal Zone residences, will appear in the bi-weekly trade circular at a later date.

INDUSTRIAL LABORATORY

Although the Commissary Division operates a number of manufacturing plants, such as the Bakery, Coffee-Roasting Plant, Ice Cream Plant, Sausage Factory, and Ice Plant, the Industrial Laboratory, which is one of the group, is po.ssibly the most unusual because of the multiplicity of operations which are conducted by

its Chemist. The more than 200 items which are presently made

or repackaged there under the Commissary label, UMially cause

the Laboratory to be considered the home of Connnissary products.

The lines include foodstuffs, pharmaceuticals, insecticides, cosmetics, polishes, cleaning compounds, and others too numerous to

itemize. By purchasing high qualit\ commodities in bulk and repacking

in our Plant, man\ items can be sold at a substantially lower price than if purchased from the supplier in retail size packages. Moreover, by buying raw materials and making our own finished products, savings are passed on to the consumer because of the follow- ing factors: lack of advertising costs, the use of inexpensive containers and labels, and inexpensive hand-operated machinery for many i)roducts. F.xperimental and development work is constantly under way

to produce new items for sale as Commissary products, or to improve those which are now being made. Recent new additions

to the line have been the Creme Shainpoo, non-flammable Paint and Varnish Remover, Comsy Cola, and Liquid lai!ndr>- Bluing,

al! of which have proven to be popular with the trade. Changes

have recently been made in the formtdas for Borymol and our DDT Insecticide, both of which have resulted in superior products.

With few exceptions, our raw materials are purchased from

States sources of supply. Our biggest problems arise with the ordering of bottles, the scheduling of deliveries, and storage after

arrival on the Isthmus. It is not practicable for a number of

reasons for us to carr\ individual slocks of containers for specific items; instead we try to use inexpensive containers that can be adapted to more than one item. In the eyes of most glass manufacturers, our requirements of bottles are relatively small and in many instances less than the minimum quantities that will be

accepted for delivery. While it may not be possible to alter our

style of bottles to a material extent, we nevertheless have a pack- age improvement plan under way at present to improve the general appearance of all our products. The most noticeable change

so far is the replacement of the black metal caps with closures made

of white plastic. Several of the newh designed labels have already

made their appearance on the shelves of >our commissaries and more will follow periodicalh until the change is complete.

All old-time Zonians are thoroughly familiar with Commissary

products and will consider no substitute for a rather considerable number of them, such as Borymol oral antiseptic, Bocas mouthwash, Cree-Mee brushless shave, Athlene liniment, and Menticol

cooling lotion. The last-named product was developed years ago

in our Laboratory and appears to be unique and much sought after by persons who have used it here, then moved away. We regularly

receive letters from former residents, and occasionally purchaseorders for wholesale quantities for resale in other countries, asking

that we ship Menticol to them, however, because the regulations under which we operate do not permit of the exportation of merchandise generally, we are compelled to decline all such requests. Newcomers who are not familiar with the full extent of our Laboratory products, and who are interested in seeing their ptir- chasing dollar spread as widely as possible, will find it to their budgetary advantage to use regularly the Industrial Laboratory

products. We're certain that they will then learn that THE LABEL IS TRULY A GUARANTEE OF QUALITY'

This page is devoted exclusively to news of the Retail Stores prepared by the Commissary Division
November 3, 1950 THE PANAMA CANAL REVIEW 13

Repatriations Bring Painful Separations

Repatriation, whether to New York

City, Kokomo, Indiana, St. Kitts, or Guadeloupe, is much the same for the

individuals concerned. The last few days or weeks, depending

upon the orderliness of those leaving, are usually spent in packing and crating

household furnishings, sorting out mementos accumulated over the years, saying goodbye to long-time friends, and

otherwise painfully severing the ties of a

half a lifetime of work.

The Panama Canal has long maintained a general policy, first established at the beginning of the Canal construction, of returning its employees to their homeland free of charge upon retirement

unless they desire to make their future home on the Isthmus and comply with

the necessary formalities. Repatriation has always been provided for employees

under contract when they leave the service whether they were employed in the United States or elsewhere. Less publicized than the return of American employees and their families to

their former homes in the United States

are the hundreds of repatriations in recent years among local-rate workers after re- tirement. Two groups of repatriates left the Isth- mus during August and September for their homes in the West Indies and

another group of about 25 will sail this month on the S. S. Reina del Pacifico for Jamaica.

Repatriation to West Africa

Among the group leaving this month is perhaps the most unusual case among re- patriates ever handled by the Canal. The

individual concerned is Joseph Allen who

found his way to the Isthmus in 1906 from his native home in Sierra Leone,

West Africa. According to the story related to Personnel Bureau officials, Allen, now 66

years old, was employed on a ship on a run between Freetown, West Africa, and

Bridgetown, Barbados. He left his ship

upon its arrival in Bridgetown and either stowed away or paid his own passage on

a ship coming to the Isthmus with thou- sands of natives of Barbados then being

recruited for Canal work.

His trip will be one of the longest ever made by a repatriate from Government

service on the Isthmus. A typical group of local-rate employees

and their families left the Isthmus early

in September to return to their former

homes in various parts of the West Indies. A picture of one of these old-time employees and his wife is shown at the right.

The group sailed on the S. S. Leme for Barbados but ten different islands were

listed as the homes of the 37 repatriates.

Among the island destinations listed were

Barbados, Jamaica, Trinidad, Antigua,

British Guiana, St. Vincent, Grenada,

St. Lucia, St. Kitts, and Montserrat.

Repatriations Began in 1904 The policy of furnishing free transportation back to their homes for both skilled and unskilled workers engaged in the Canal construction was established when

the United States undertook the work in 1904. At first repatriation was provided

only for those workers brought under contract but this was extended during the

latter part of the construction period to

all those who had migrated to the IsthTYPICAL of the average Catial-Railroad emplnj eo upon packing for the trip home, after retirement aie Bernard Paul and his wife who \yere among the group

repatriated to the West Indies in September. Both

were engaged in packing when they were visited by

the Official Photographer. The couple, who lived in Caledonia, were in a welter of boxes, packing cases, scattered household goods, and keepsakes gathered

during their many years on the Isthmus. They will make their home in St. Lucia where Mrs. Paul was

born.

mus on their own responsibility and who

could show a period of service equal to that stipulated in labor contracts. Of the 4.5,000 contract laborers brought

to the Isthmus between 1904 and 1914,

by far the largest group, approximately

20,000, were natives of Barbados. The

second largest group came from Spain.

Mostly European labor was imported

after the first few years of the Canal work

and nearly 12,000 were brought under

contract from Spain, Italy, Greece, and

France. Despite the comparatively large per- centage of West Indians now on the Isth- mus who claim Jamaica as their native home, less than 50 contract workers were

contracted in Jamaica for the Isthmian

Canal Commission during the construction period.

The repatriation program for local-rate workers practically ceased soon after the Canal was opened primarily because of the stability of the force and the availability of local labor. Problem Restudied in 1934 The problem of repatriation of nonU. S.-citizen employees of the Govern- ment on the Isthmus was restudied during the depression of the early 1930's. Subsequently, Congress appropriated

$150,000 for the repatriation of these employees with their families. Between 1934, when the repatriation

legislation was passed, and the outbreak

of World War II a large number of for- mer employees and their families were

furnished free transportation.

The original fund has since been practically depleted and an appropriation of

$")0,00() was made thi^ liscal year for a contmuation of the program.

Repatriation is voluntary on the part

of U. S.-rate and local-rate employees and

many of both groups prefer to make their home on the Isthmus after so many years because of family ties and other reasons. In the case of local-rate employees, a

liberal weight allowance is made for the

free transportation of their household

goods. They are also generally granted

a cash allowance at the time of their return to help them get reestablished in their homeland. Governor Newcomer re- cently authorized the increase of this cash allowance from $25 to $40 for each employee. The first group to receive the

increased allowance was those who sailed

in September aboard the S. S. Le7ne.

Employee's Actual Income

In Red With Income Taxes

(Continued from page W) between his Salary

and living expenses for vacation, which

leaves his budget $265 in the red every

other year. With the income tax he will be about

$180 short of meeting his budget every

year without a vacation. The Pinchpenny and Spendthrift budgets shown in the two columns at the right are based on the same factors as the Canal employee who submitted an actual budget, the same house and rent, the same salary, and the same number of dependents. The two budgets, however,

are composed entirely of arbitrary figures

for the purpose of argument.

The C.\nal Review will be glad to publish in the next issue the best two or three letters of criticism of any one or all three of the budgets and will send a

pair of Panama Canal Clubhouse theater

tickets to their authors. As an editorial starter for such letters,

it may be noted that none of the budgets

provides any sum, savings or otherwise,

for emergencies of any nature, college education for the children, or money to buy

and equip a home after retirement.
14 THE PANAMA CANAL REVIEW November 3, 1950

World Famous Listed as Washington Guests

The Washington Hotel at Colon

recently underwent a minor face

lifting. Its potential tourist lure was

reassessed and a modest advertising

campaign, the first since 1938, was

started to acquaint the traveling

public with some of the facts about

this long-standing Isthmian institution. The old Hotel Washington signs on the porte-cochere have been re- gilded and matched by a new sign over the entrance gate from Second

other movie star members of USO

troupes who entertained troops in the Canal Zone during World War

II.

.A i^rominent name in Isthmian

circles was added to the register in F"ebruar\' 1916 when Captain C. B. Fenton checked into Room 323, one

of the three suites in the hotel,

which he has occupied ever since. Charles S. Hardy, who recently

returned as Manager following several years of previous service with

Above

Below

Vincent Astor was first gia-sl. The Hotel's famed entrance.

HOTEL WASHINGTON

COLON. Re»>uaLto or i«anam*

P-tNAM.V R\IL RaA» COMPANY MP.^RTMEVT W HOTELS \M> B\(HKOR «}l'\RT|.Rs

Street to encourage passersbys to come in and sample the hospitality.

Inside the garden wall separating

the hotel grounds from the City of Colon, the lawns and gardens have

been resceded and before long, bougainvillca will enclose three sides of the lawn, the so-called "city, church,

and ocean sides."

The stately coconut palms along

the sea wall on Manzanillo Bay,

battered by near-constant trade

winds, and the orchids on the hotel

grounds, collected and nurtured by

a former employee, now provide

justification for the belief of the origi- nal planners that the Washington's

park-like grounds would offer one of the hotel's main attractions.

Tennis and handball courts near

the hotel swimming pool, recently

acquired from the Army, have been

readied for use by hotel guests. The

interior of the building has been

repainted, some new furniture has

been added and several small refine- ments in service have been made.

The roof of the building, recently

furnished with walkways, will be

opened to guests who want a rooftop

view of the area around the hotel. Known to Generations

Known to several generations of

local residents who have vacationed,

partied, dined, and married there,

the Washington also counts among

its acquaintances guests from all over the world who have stopped

there since the original Washington was opened to the public in 1910.

The first guest at the present

hotel registered on a date that might

be considered unfortunate, March

13, 1913, but fortune had smiled

broadly on Vincent Astor, the young

man who supplied the first signature.

About a year before he had inherited

the largest sum of money in American history when he became head

of the American house of Astor. Other famous names which dot

the hotel's register include David

Lloyd George, former British Prime

Minister, Will Rogers, President

Warren G. Harding, Edward Arnold,

Bob Hope, Al Jolson, and many

the Washington, and H. O. Granberry, Assistant Manager, are newcomers as compared with Captain

Fenton, who likes to reminisce about

the changes in the ph\sical plant

and social customs which have

taken place in the %-ears of his resi- dence.

"First Class" Hotel

He recalls the time Captain

Fenton questioned Major W. H.

Grove, former Chief Quartermaster,

as to the reasons for higher rates at the Washington than at the Tivoli, across the Isthmus. Major Grove

informed him stiffly that "the Washington is a first class hotel."

The hotel staff consists of about

90 emploNces headed by Mr. Hardy

and I\Ir. Cranberry. One of the employees whose efforts are of first interest to guests is the chef, Herbert

Thompson, known best for his planked steaks and implicit belief in the teachings of Louis Ruhlman,

from whom the chef learned many

of his hotel lessons. Mr. Ruhlman,

of New York, formerly visited both

the Washington and the Tivoli during the tourist season to instruct

employees as to new and old tricks of the hotel trade. The number of parties at the hotel

has now decreased to about three to

five a week, but it was not long ago

that four parties turned up when

only three were expected. On that

occasion, a golden wedding anniversary celebration went on in the golddecorated main dining room, known

to employees as the "a la carte room"; a high school party was held

in the grand ballroom; a large tea party was held in the lounge; and

another smaller group gathered in the Fountain Room, off the main

dining area.

First Built in 1870 The original Washington Hotel,

built about 1870 as a residence for Panama Railroad Company employees, differed very little from

several other quarters buildings in the same area, all of which were named for Unitetl States [presidents.

Two of the latter, the McKinley and

Garfield Houses, are still in use as women's bachelor quarters.

Originalh' a two-story building,

the old Washington Hotel was in- creased considerabh' in size about

1905 when a third floor was added.

In 1908, the Washington was taken

over by the Isthmian Canal Commission and in Ma\' 1910, sleeping

accommodations there were opened

to the public. The following year, the ground floor of the Bennington

House which adjoined the old Washington was also turned into rooms

for transient guests.

"The lack of suitable hotel accommodations in the vicinit>' of the

.Atlantic terminus of the Canal" was

brought to the attention of President

William Howard Taft when he spent

three days on the Isthmus in November 1910 and he subsequently

authorized the construction of a

suitable fireproof hotel on the site of the old Washington. The hotel was to be built b\- the Panama Railroad both to supph' the need for hotel facilities and as a source of revenue. He specified that it would

be built in Spanish colonial style

modified to fit local conditions,

would be located on Colon Beach,

and would cost no more tlian $500,000.

Taft Chose Architects

The architects chosen by the Presi- dent were Cram, Goodhue, and Fer- guson of New ^'ork, who were then

engaged in work at the United States

.Military Academy at West Point.

Mr. Goodhue, in charge of the

Washington construction, had specialized in Spanish architecture. The

President's belief in the architectural

skill of this firm was justified by at

least one well-known architect who

visited the hotel in later years. .According to Captain Fenton, the

visitor termed the structure, "an

architect's dream"

The old Washington Hotel was moved across the street to make way

for construction of the new hotel

and remained in service in its new

location bv Christ Church by-thcSea until March 23, 1913, when the

present Hotel Washington was for- mally opened to the public. The

old structure was razed in the early

1930's.
November 3, 1950 THE PANAMA CANAL REVIEW 15

PEOPLE YOU KNOW

GROWN-UP CANAL ZONE BOYS

In the Canal-Railroad organization of today there are many local boys and

girls who grew up and received most

of their education on the Isthmus. Not

only is their influence felt in the business and community life, but they form a liv- ing link with the colorful and stirring events of the Canal construction period. In the second appearance of the feature People You Know, the pictures and bio- graphical sketches are presented of three

of the several hundred grown-up Canal Zone boys who now help run the Canal

and Railroad. They are:

Phil Thornton, leading hotelman of the Isthmus, who has catered to the whims of the traveling public from royalty on down the social ladder for the past 25

years. It was not long after he had grown

enough to see over the hotel counter that he took his first job as a clerk at the Hotel Tivoli which he now manages. He

was first employed in September 1924 but

left a year later to enter the University of Pennsylvania for a course in accounting

at the Wharton School of Business and

Finance. He returned to his old job after a year at the university but has since furthered his formal education as a hotel executive by courses at Cornell University.

Phil was born in Haymarl et, Virginia,

and came to the Isthmus when five years

old with his mother and his sister, Frances, who now live in Curundu, to join his father, the late S. G. Thornton who

was employed as an accountant through- out most of the construction period. Phil attended grade school first atGorgona and was graduated from Balboa High School

in the class of 1924. His rise to the top in hotel business in the Canal Zone has been

steady and has included several years at both the Hotel Washington and Hotel

Tivoli. He became Manager of the Hotel Washington in 1945 where he served until

last August when he was transferred back

to the Pacific side to take over the management of the Tivoli.

Alton White was a classmate of Mr.

Thornton in the Balboa High School

class of 1924. He was born at Pascagoula, Mississippi, on the Gulf Coast,

which probably accounts for the fact that both he and his father became marine

engineers. His father, D. P. White, who

now lives in California, was employed

from 1910 until his retirement in 1943 in the Dredging Division, much of the time

as Chief Engineer of the dredge Gamhoa.

Alton arrived on the Isthmus just in time to enter first grade in Gatun. He,

too, started working for the Canal soon

after leaving high school. He was employed for about five months as a helper

in the Mechanical Division before joining the Dredging Division as a recarder. He

has made steady progress since that time. For the past 15 years he has b-^^-n follow- ing in the footsteps of A. C. "Gus" Medinger as the latter moved progressively to bigger jobs. Alton was promoted to Assistant Supervisor in the Dredging

Division in 1935, to Supervisor in 1940,

to Assistant Superintendent in 1948, and

to Superintendent (now Chief) of the

Division last Julv.

lames ('. Wood, Balhcu i u^icim-; nnid

Jlm Wood is a graduate of Cristobal High School in the 1932 class. He was

an Atlantic side resident for much of his

life up to about 15 years ago when he

joined the Canal Zone Police force and was assigned to the Balboa District. His

father, E. L. Wood, now living on the Isthmus, was employed for many years

as machinist in the Commissary Division. Jim was only four years old when he

arrived on the Isthmus from his native home in Mobile, Alabama. His elementary and high school education was re- ceived in Cristobal. After graduating

from high school he was employed as a

civilian with the Army for about two

years before joining the Canal organization. He was first emploved on a temporary job before joining ths Zans Police. He transferred to the Balboa Customs

Office in August 1939. He was promoted

to Customs Inspector in 1942 and to Boarding Officer in March 1943. Jim is reputed to have the best knowledge of

ships of almost any person on the Isthmus. Once a ship becomes a Canal customer, he tags it in his memory for possible future use and can later recognize it in war paint or full dress.
16 THE PANAMA CANAL REVIEW November 3, 1950

July August September

40 Years Ago 10 Years Ago This Year

The work of building the Panama Canal

had reached a crescendo forty years ago and new records were being set, but the work was going so smoothly that a slide

at Cucaracha was about the most conse- quential news item of the months of July,

August, and September, 1910.

Road biiildiny wax occupyinci much attention at that time and there was serious talk

of the trans-isthmian highway. This kind

of talk was etujendered principally by the opening of the link between Empire and

Paraiso and the initiation of the work on a

paved hightcay beticeen paraiso and Pedro

Miguel' The'traveling public was informed

that a person would be able to drive about

halfway across the Isthmus, as far as Gorgona, when the Corozal-Pedro Miguel

stretch was finished. Impatient transcontinental travelers were to wait more than 30

years before they could drive with ease

across the Isthmus.

An important Canal Zone publication

made its first appearance 40 years ago.

It was the Commissary Bulletin, first

issued monthly, with shopping news of

general interest to housewives and other customers.

There were 39 churches in the CanalZone

in 1910. Of these, the Isthmian Canal Commission owned 26 buildings and the others

were the property of various denominations. Church work was first authorized by the

I. C.C. in October 190Jt and the first church,

a Catholic chapel in the Ancon {now Gorgas) Hospital grounds, icas approved the

following year. Many of the chaplains

serving Canal Zone churches 40 years ago were directly employed by the Commission.

The work of building the Canal was

.six years old but restrictions on the amount of ice a family could buy were

not lifted until August 1910.

Prime rib roast of beef could be bought

for 20 cents a pound in September 1910

while sugar-cured ham sold for 27 cents a pound, fresh eggs for 29 cents a dozen, and

sliced bacon at 31 cents a pound.

The first monotype equipment, said to do the work of several compositors, was

installed at the Panama Canal (Railroad)

Press at Mount Hope.

Four laborers were killed in a premature dynamite explosion at the Ancon Hill quarry. They were buried under tons of rock which were loosened when a charge was set off unexpectedly and workmen

toiled several hours to extricate them

from the mass of broken rock.

Much of an important address by Theodore Roosevelt at Omaha, Nebraska, in September 1910, was devoted to the Panama

Canal and its future. In his address he made the important pronouncement in re- gard to the fortification of the Canal. He

also issued one of his most-quoted statements about the Canal workers when he said: "Colonel Goethals and the men working

under him are rendering a service to this country which can only be paralleled in our

past history by some of the services rendered

in certain wars."

Colonel Glen Edgar Edgerton, now a

retired Major General, took the oath of

office early in July 1940 as eighth Governor of The Panama Canal. He succeeded

Brigadier General Clarence S. Ridley, also now a retired Major General. Among

those witnessing the brief ceremony were

Colonel M. C. Stayer, Chief Health Officer, F. H. Wang, Executive Secretary,

Roy R. Watson, Chief Quartermaster,

and Wilson H. Kromer, Comptroller.

The third quarter of the calendar year 1940 was one of the busiest periods in the Canal's history. Appropriations for the fiscal year which became available in July

amounted to more than $U,000,000, the

highest mark since 1912. The major part of

the money was appropriated for S. I. P.

{Special Item Projects or Canal protedive

works) and the Third Locks project. Actual

construction work on the Third Locks project was inaugurated that month although

the work had been in the planning stage for more than a year. An announcement was made that the Export-Import Bank had granted a $2,-

000,000 loan for the construction of the long-awaited Transisthmian highway.

The last of the new concrete road between Arraijan and Chorrera loas poured, the completion of the important highway project being witnessed by Panama President

Augtisto S. Boyd and members of his cabinet.A sign of the times 10 years ago: The

Panama Railroad Company raised the ocean freight rates for employees' private

cars from $45 to $51.75 one way bstween

New York and Cristobal.

The smallpox vaccination campaign for the Canal Zone and the terminal cities of Panama and Colon was in full swing

throughout the quarter.

George R. Goethah, II, and Thomas Goethals, grandsons of the famous Canal builder were visitors to the Canal Zone for several days and were given every opportunity to

see the work of their famed forebear.

The first major step toward expanding

the hospital and medical facilities to care

for the greatly increased population was

the plans to build Section E, of Gorgas

Hospital. The buildings, located on Gaillard Highway, have since been abandoned

as hospital units.

Engineers of the Third Locks project

announced that plans were well advanced

for a swing-bridge across the lower end of

Miraflores Locks.

Rumors which seem to thrive in times of

stress caused a near riot on the Pacific side 10 years ago. The story, which grew with

the telling, was that an explosion had occurred at the Pedro Miguel Locks. Several hundred residents visited the locks and it was several hours before the rumor, completely unfounded, was scotched.

The S. S. Washington, of the United

States Line, transited the Canal for the

first time on a tourist run between New

York and the West coast.

Canal Zone residents had so many

things outside their bailiwick to occupy

their attention during the third quarter

of this year that they may have over- looked many events on the Isthmus which

normally would have attracted much

more attention. Korea and Washington, D. C, held the

spotlight throughout July, August, and

September. Most Zone residents centered most of their attention on what was happening in Washington because much of what was occurring there was happening

to them pjrsonally. No session of Congress had ever before brought forth so many big packages for the Canal Zone

people as the income tax, the Canal incor- poration legislation, and the initial appropriation for the $80,000,000 housing pro- gram, not to mention the heavy cuts in Canal appropriations for this fiscal year.

Some of the things right here at home

were important and newsworthy, too. A formal start on a civilian defense pro- gram was made by the appointment of Melvin W. Walker, Assistant General Manager

of the Clubhouse Division, to take charge oj plans on a full-time basis . . .J. P. Smith,

Jr., left for a radiological health training course of the U. S. Public Health Service

in Cincinniti, and was followed a few days

later by Mr. Walker for a study' of the program in the United States . . . cigarette prices went up a penny a package . . .

the Electrical Division received 850 new

electric stoves for replacements in Canal

quarters ... a unit of the Junior R. 0.

T. C. was organized at Cristobal high

school . . . La Boca Junior College opened

September 7 with 1,8 students, 15 of whom

were women . . . Isthmian Constructors,

Inc., was awarded a contract to modernize Balboa sicimming pool.

Because of the large number of reserve members of the armed forces who are Canal and Railroad employees, a general

policy statement was issued late in July

relative to their entry on active duty. An

important change in the former policy was

the Canal will not request the reassignment of officers entering the military services for duty with the Canal and Railroad.

The Canal Zone Police had a full inning

at bat in the news during the three-month

period. At the outset they changed bosses from Major A. 0. Meyer to Major George Herman. A few days later they and Canal Zone school teachers got fat checks for retroactive pay increases authorized in October 1949. Lt. B. A. Darden was promoted to Captain and placed in command of Balboa

Police District while Sergeant Gaddis Wall

teas promoted to Lieutenant and assigned as Assistant District Commander in Cristobal. Late in August, the Atlantic side force solved

a notorious murder case at the Cristobal Army and Navy Y. M. C. A. One of the

biggest news items for the Zone Police generally was the announcement that Governor Newcomer had approved a 40-hour ivork

u-eekfor all members of the force.
Novembers, 1950 THE PANAMA CANAL REVIEW 17

STATISTICS ON CANAL TRAFFIC

For the purpose of comparison between pre-war and post-war tarffic through the Panama Canal, statistics for the fiscal year 1938 are used in this section, as being more nearly normal for peace-time than those for 1939.

AMERICAN BUREAU OF SHIPPING residence on La Boca Road, Balboa. This attractive building, home of the American Bureau of Shipping Surveyor in the Canal Zone, was completed in 1939. It was

one of the fii-st of such permanent-type residence built in this area by private organizations.

Many Outside Activities Help In Canal Work

American Bureau of

Shipping Performs

Important Work In C.Z.

Many important activities closely related to the main business of the Panama Canal—that of shuttling ships between the Atlantic and Pacific Oceans

are carried on day-by-day in the Canal Zone and

are little known to the genera! public or to a majority of Canal employees. Tucked away in a corner of the second floor of the Terminal Building in Balboa is an office which is the headquarters for one such activity, the American Bureau of Shipping. The average resident of the Isthmus, except those immediately engagea in ship- ping activities, would be surprised to learn that this

office and the work of its staff have been in existence

in the Canal Zone for the past 27 years. The American Bureau of Shipping, with headquarters in New York City and branches in the

principal ports throughout the world, established the Balboa office in 1923 when traffic through the Canal

reached such proportions that it became desirable from the standpoint of shipowners and underwriters

for a Biu-eau Surveyor to be permanently stationed

at this focal point to conduct surveys for "mainte- nance of class" of vessels suffering marine damage. War Increased Work The work of the American Bureau of Shipping in Canal waters increased tremendously in amount and

importance during World War II when maritime

traffic reached a peak and Balboa Harbor became

the home port of more than a hundred tankers operating in the Pacific. During that period it became

necessary to open a branch office in distobal and

keep Surveyors on constant duty in both terminal

ports. Since the end of the war the Cristobal office has been closed and al' of the ship survey work locally

is now handled by Laurence HI. B.'eece, Surveyor, of the Balboa office. Mr. Breece was assigned to the

local office in 1945 following his release fiom active duty with the U. S Naval Reserve, succeeding Ralph

C. Christensen who was assigned to the Newport

News, Virginia, office. The Balboa Survey District also includes the ports

of Barranquilla and Cartegena, Colombia, where an

Acting Surveyor does the Bureau ship survey work.

First Organized In 1860 The American Bureau of Shipping had its incep

tion in the American Shipmasters' Association, which was first organized in 1860 and incorporated two

years later by the State of New York. The corporate name was changed to its present form m 189S and

since that time its activities have been greatly ex- panded by acquiring or consolidating with other regulatory bodies of the shipping industry. The Bureau,

as presently constituted, was officially recognized by

the United States Government in the Merchant

Marine Act of 1920 which directed that all depart- ments, boards, bureaus, and commissions of the Govei-nment recognize the American Bureau of Shipping

as their agency m the classification of vessels. In addition to the United States, other nations which have granted the Bureau authority to issue load lines to \ essels of their registry include Belgium, Denmark, Finland, Norway, Sweden, Greece, Pan- ama, Honduras, Canada, Brazil, Liberia, Pakistan,

the Philippine Republic, the Dominican Republic, The Netherlands, Portugal, and Israel. To those acquainted with the complexities of the

shipping industry the American Bureau of Shipping

is a "classification society." To the outsider, the

functions of the Bureau somewhat resemble those of a self-appointed policeman of the shipping industry.

Functions of Burea u

It is a function of the Bureau not only to see that

ships are built to certain standards but that they are maintained in a seaworthy condition at all times.

It is upon these main premises that insurance rates are established both for ships and cargoes, aside from

the many other factors which may determine insur- ance rates. A classification society, such as the American Bureau of Shipping, is not an insurance

firm. It acts solely as a self-governing body to regulate its members in the building and operation of

ships. Among other things, it detennines whether a ship * Vessels under 300 net tons or 500 displacement tons,

has adequate structural strength and reliable machin- ** Exclusive of Panama Canal equipment.

ery. This is done by surveyors W'hile the ship is still in the blueprint stage and while it is under construction. When the complicated shipbuilding factors have been determined to be satisfactory and the ship

is ready to put to sea, it is given a certificate to this

efJect and thus becomes what is known as a "classed"

vessel. After a ship leaves its home port on its maiden

voyage and throughout its entire service life, the Bureau maintains a close watch to determine that it

is kept "in class" or in a seaworthy condition. This

is done by periodic inspections of the hull and machinery by qualified surveyors. Damages Require Inspections

Inspections are also required when a ship suffers damage to its hull or machinery or when structural changes or major refittings are made. Ship owners and builders may also request -special technical investigations relating to the structural design, construction, and maintenance of merchant vessels. Most of Mr. Breece's duties in the Canal Zone pertain to injuries to vessels. In most mstances periodic surveys, which are made about once a year, are made

by Bureau surveyors in a vessel's home po't because

of the delays required and the consequent increase in cost to the shipowner to have a routine survey made

elsewhere. In those cases where vessels come into one of the Canal terminal port: with damages suffered en route,

it becomes Mr. Breece's duty to determine the extent

of the damage and the amount of repair work neces- sary to permit the vessel to proceed. In instances where a vessel has been grounded in Canal waters or en route to the Canal, it often becomes necessary to have an underwater inspection made of the hull by

expert divers. When a vessel has been damaged it is said to be "out of class" after reaching a port where the extent

of its damages can be determined by a surveyor. This means the classification status of the vessel can

only be restored to "class" by being surveyed and

having such repairs done as may be necessary. Until that has been done such items aj marine insurance,

charters, etc , become liable to suspension or cancelL. M. Breece, Survevor

lation. In some cases only mmor repairs may be

requu-ed; in others, temporary repau-s may be authorir.ed for the vessel to proceed to its next port of call, or at times a surveyor may determine that permanent

repairs requiring the drydocking of the ship are neces- sary before a certificate can be issued. The Surveyor often issues temporary certificates which will permit a ship's continued operalion until

its next regular drydocking schedule.

Full-Scale Inspections Made

.Aside from the inspection of ships which have been damaged, Mr. Breece is occasionally called on to make a full scale periodic inspection of a vessel. These periodic inspections usually are required for ships which are on little-used trade routes and do

not touch at major ports elsewhere. In addition to the principal duties of surveying

ships classed by the Society, the American Bui-eau

also represents locally the United States Salvage

Association, Inc., Norwegian (See page 20) CANAL TRAFFIC—TOLLS PAYING AND FREE

July—August—September

1950 1949 1938

Atlantic

to

Pacific

Pacific to Atlantic Total Total Total

Tolls paying vessels: 693 719 1,412 1,219 1,335

*Small 131 132 263 291 227

Total, tolls-pa\ ing 824 851 1,675 1,510 1,562

257 71 328 301 129

Total, tolls-paying and free 1,081 922 2,003 1,811 1,691
18 THE PANAMA CANAL REVIEW November 3, 1950

Passengers Feel At Home on S. S. Cristobal

nv. ?''*T^'i^^?- '^'J?^ "CRISTOBAL," left to right, are Chief Steward Marcello Facchina; First Officer Lharie., L Foley; Chief Purser Lambert W. Gustafson; and Chief Engineer Edward Carlson All four have had several years of service with the Panama Line.

{Continued frnm page S) was Service in the

bride and diaper trade, following her partial reconversion in January 1946. Brides

and children of 17 different nationalities were brought to their new homes in the United States from England, France, Egypt, and Germany on the Crisiobal. Captain Eriksen was born in Norway

and spent his first five years at sea on Norwegian and British sailing ships. He

obtained his chief mate's and master's

licenses after attending the oflicial Norwegian government navigation school. Starting late in 1913, he spent 18 months

in the Norwegian Navy, after which he shipped out on vessels carrying munitions

and war supplies between United States and Europe.

He joined the United States Army in 1918 and became a citizen ten days after entering service. "In a private^ out a

private six months later," he says of his World War I career. He then obtained

his United States master's licen.se and

served one year as first officer and seven

years as master of American Cuban Line

ships.

His Panama Railroad service began on

the S. S. Guai/aquil in the New York-west

coast South America trade started after the first Woi-ld War with German ships interned in the Canal Zone. Captain Eriksen was made master of the Guayaquil in 1930 and was transferred

to the old Cristobal as captain in 1935. He became captain of the Panama when

she came out April 20, 1939, and remained

on that ship until June 1941 when the Panama was taken over by the U. S. Army Transport Service. He was then

transferred to the Cristobal as captain and

has remained there since that time. Taken altogether, the people, the service, and the ship itself explain why tourists, Canal-Railroad employees, most numerous among Panama Line passengers, service personnel and other govern- ment employees seem to find no fault with the Cristobal. According to Chief

Steward Facchina, most of them say or imply, "home was never like this."

CANAL ADMINISTRATION

BACKS FIGHT ON TAXES

(Conimiedfwm page !)) States will be required

to compute their own income taxes and

file returns prior to March 1.5, 1951, on

their taxable income for this year unless

the retroactive feature of the recent legis- lation is removed by Congress prior" to that date. In this case, employees will owe the full sum of their 1950 taxes next March 15, the date of filing returns, since the withholding tax provision of the new

law does not become effective in the Canal Zone until January 1 of ne.xt year and no

deductions will have been made from sal- aries in payment of the 1950 income

taxes. An announcement will be made at a

later date on the possible requirement

that certain employees file by January 1 5, 1951, a dsclaration of their estimated tax- able income for 1950. Since an eight-foot bookshelf doesn't beginto hold all the books in fine print

containing the laws, rules, regulations,

and explanations of income tax, it is obviously impossible to give in brief form more than a few salient points of the complicated subject.

Perhaps the most salient feature to remember is the provision for severe penalties for evasion of the tax. On this point, employees have been reminded that The Panama Canal is required by law to

file complete information about the tax- able wages of every employee with the

Internal Revenue Service. The first formal action to be taken bv

employees with regard to their 1951 taxes

will be the completion of withholding ex- emption certificates (Form W-4). These

csrtificates have been furnished to all employees and the completed forms must be returned to the Finance Director no later than December 1 in order that the proper

payroll computations may be made for employees individually.

These cjrtificates show the number of exemptions claimed and the amount of money to be withheld from each employee will be computed on this information. The Canal is not required to determine whether an employee has claimed

the correct number of exemptions. However, the regulations state that an employer should inform the Collector when

there is cause to believe an employee has claimed an excessive number of exemptions. The withholding exemption certificates carry the necessary instructions for completing the forms together with pertinent

information as to who may be claimed as dependents and the requirements for filing new certificates when changes in the number of exemptions occur. They also carry the following warning:

"Penalties are imposed for willfully supplying false information or willful failure to supply information which would reduce

the withholding exemption."

Those who fail to file withholding ex- emption certificates will be presumed not

to claim any exemption and the with- holding tax will be so computed. When

a husband and wife are both employed,

he may claim both exemptions but the

wife is then not entitled to an exemption

for herself on her salary. Since the amount of money to be de- ducted is dependent on the number of e.xemptions claimed, employees have been

cautioned to read carefully the instruc- tions on the subject which are printed on

the back of each withholding exemption

certificate. In cases where employees are in doubt

as to an exemption to be claimed, the matter should be submitted to the Collector of Internal Revenue in Baltimore,

Maryland, for decision since his office is the collection agency for income taxes from the Canal Zone. Other questions of a complicated or doubtful nature should

also be referred to that office for final decision. No further action about their income

taxes for the calendar year 1951 will be

retiuired of employees until next March

15 when those in certain categories will be required to file declarations of their estimated income for 1951. Those re- quired to do this are the ones who have

an income outside of their salaries of more than .$100 for such sources as rents, interest on savings bonds, etc., and those whose income from wages exceed .$4,500 a year after substracting their total ex- emptions at $600 each. If, for example, an employee is married and has no de- pendents other than his wife and his outside income did not exceed $100, he would determine whether he was required

to file the declaration by subtracting two

exemptions, or a total of $1,200 from his annual salary. If the result came to over

$4,500, he would be required to file the

declaration by March 15. The forms for a declaration of estimated

income will be available well in advance

of the date for filing and a public an- nouncement will be made as to where

they may be procured.

Employees not required to file a decla- ration of estimated taxable income will have no further action to take about their income taxes for the calendar year 1951

after filing their exemption claims until the time for filing their income tax returns

for the year. They must be filed no later than March 15, 1952. At the end of 1951 all employees will be furnished withholding statements by

the Finance Director. These are made in triplicate and will show the total wages

for the year and the total amount of Federal income tax withheld. (.Se; page 19)
November 3, 1950 THE PANAMA CANAL REVIEW 19

Incorporation Law Requires Basic Alterations

(Cont-.ntied from page 3) way, a condition which the Senate report termed unique

in Government annals.

Unlilie the pre.sent unwieldy method of operating th? Canal on appropriated funds and returning tolls and other reve- nue into the Treasury, the new company

will be p?rinitted to use the income it receives from Canal and other operations

to meet its current expenses. The ex- penses of the new company, as provided

in the law, will include not only those for curr3ntop?rations, including depreciation,

but the interest on the net direct invest- ment, the annuity payments of .$4-30,000 to the Republic of Panama, and the net

costs of the Canal Zone Government.

In effect, the change next July will be

much the same as if some company were formed to purchase and operate the Canal

and Railroad as a purely business enterprise. Without finances, it would borrow

the money to make the purchase—in this case about $150,090,000 -and agree to pay 2.3 percent interest on the loan which will amount yearly to approximately $10,350,000.

As a part of the bargain, the new company would agree, in lieu of ta.xes, to furnish police and fire protection, schools, health services, and other governmental

necessities of a normal comnumity.

These additions to operating expenses do not mean that an entirely new burden must be met by revenues since not all these items are new factors. Under nor- mal opsrating conditions the Canal-Rail- road has always paid its own way, which

has included the cost of civil government,

and has returned to the Treasury some

profit in the way of interest on the capital

investment.

Current Income Insufficient However, under the new fiscal arrange- ments, revenues from tolls at current

rates, and business operations will not be

sufficient to pay all operating costs, net

costs of civil government, the annuity

payments, and interest on the capitalized

investment. Plans for future operations must be made to meet these n3w conditions pre- scribed by law. These are the plans which the Governor

termed complicated. They are now in the

course of being formulated and it now

seems unlikely that even the foundations

for the new fiscal structure will be in place for several more weeks.

Public Law S41 makes provision for the adjustment of tolls to meet the expenses and for the first time prescribes a formula

by which this may be done. Among the important provisions relating to tolls is that which will permit the Panama Canal

Company to take credit, perhaps by

bookkeeping procedure, for tolls on vessels which now transit the Canal free of charge.

A major point on which much of the

discussion and final decisions will hinge

is that part of the legislation which pro- vides that proportionate shares of the net

costs of civil government be met by tolls and by income from business operations.

Actually, it is expected that this particular point will require the greatest detailed study in the final settlement of the

fiscal plans for future operations.

This problem is further complicated by

the provision that the Panama Canal

Company pay for any services it obtains from other agencies and other agencies

pay the Canal Company for services it renders to them, including those of civil government. Since the Panama Canal is, in a large measure, a service agency, it now provides many services to other agencies, primarily the Army, Navy, and Air

Force. Charges are made for some of these while others are rendered free since

costs are presently met by appropriated

funds.

Costs To Be Proportionately Shared

It will be necessary to determine first what the proportionate share of the agencies may be for such services. In some

instances, schools as an example, this can

be determined with fairness and with

comparative simplicity by the use of a

per capita formula. The answer will be

far less simple in the case of questions as to what will be a fair proportionate cost to be assessed for police and fire protection,

sanitation, and other similar services ren- dered on a blanket community-wide basis Having solved this knotty problem,

those charged with preparing the new

fiscal plan will come to the meaty part

of the main question-how much of the remaining costs of civil government must

be borne by Canal tolls and how much

must be shouldered by business operations. The law makes only general provisions for the determination of these fac- tors and a detailed study is now in progress to arrive at an equitable division of these costs.

It will be only after these factors have

been determined that new tolls can be computed since they must be established

at rates to pay their proportionate share

of these expenses. The Governor has announced that it will probably be about

the first of the coming fiscal year before the new tolls rates have been determined

and a public hearing can be called for all interested parties. Toll Rates To Be Set The conclusions reached on the new

rate of tolls as a result of the public hearing will be presented to the Board of Directors of the Panama Canal Company

who will submit their recommendations

to the President of the United States for

final approval.

Two other formal steps are to be taken

between now and the next July 1 with

regard to the incorporation. Legislation has been prepared and will be introduced

into Congress containing the ten sections

of the original legislation which were dropped during passage of Public Law

841. These deal principally with technical details required to establish proper

authority of the new company to conduct

its business. The other formal action to be taken is the issuance of, an Executive Order by

the President making the legal transfer

of the various properties and functions to the company. It is expected that the Executive Order will be issued some weeks

prior to July 1, 1951.

Principal commodities shipped through the Canal

(All figures in long tons)

Figures in parenthesis in 1938 and 1949 columns indicate

relative positions in those years ATL.\NTIC TO PACIFIC

Commodit\-

Mineral oils Manufactures of iron and steel Raw cotton Ammonium compounds

Paper and paper products

Sulphur

Phosphates

Automobiles and parts Metals, various Machinery

Tinplale

Canned food products

Fertilizers Cement

Chemicals, unclassified

All others

Total

Third Quarter, Calendar Year

1950

368,019

355,337

137.827 112.463 90,189

90,130

67,963

64,310

45,353

43,305

39,332

38,766

37,941 34,846

33,204

697,131

2,256,116

1949

(1)

(3)

(9)

(4)

(5)

(8)

470,474

346,622

16.848 198.913 103,099

105,807

124.121 (32) 39.696 (13) 22.724 (6) 61.200 (10) 51,407 (11) 36.286 (14) 15,723 (28) 36,320 (16) 23.562 (12) 906,440

2,559,442

1938

225.362 (3) 336,634 (1) 57,694 (13) 11,976 (22)

(5)

(7)

(6) (9)

(4)

108,492

53,868

6,435 48,161 100,895

31,778 (10) 28,887 (8) 31,935 (15)

1,891 (41) 29,326 (11) 26,736 (17) 754,978

1,855,048

PACIFIC TO ATLANTIC

Commodity

Third Quarter, Calendar Year

1950 1949 1938

Mineral oils 1.207,428 919,960

874,990

338,633

297,372

280,143 241.749

167.146

126.950

1 1 1 ,806 62,896

51,103

47,694

46,325

33,866

601,061

172,609 (11) 992.974 (1) 658,646 (2) 228,228 (5) 347,649 (4) 320,735 (3) 97,282 (6) 127,599 . (7)

127,.?42 (8) 102,4.54 (9) 65.932 (12) 31.104 (23) 23,406 (15) 50,698 (13) 20,046 (19) 564,968

780,126 (1) 497,627 (3) 706,187 (2) 313.906 (6) 171.632 (7) 254,890 (5) 344,233 (4) 159,361 (8)

89,037 (10) 11,441 (29) 42,507 (16) 7,595 (27) 73,151 (12) '21,890 (21) 32,920 (20) 834,247

Lumber

Wheat - Nitrate _ - Sugar

Aletals, various

Refrigerated food products (ex- cept fresh fruit)-

Coffee Rice Dried Fruit _ . - Wool

Raw Cotton

.\ll others

Total 5,409,122 3,931,672 4,340.750
20 THE PANAMA CANAL REVIEW November 3, 1950

Familiar Flag In Canal Waters

^ ^^ftB««b^'

0) =OS00 =

WIS

l>0 = -4"

a>~

Xo liiid flag is better known among the steady fluw

of ships tlirough the Panama Canal than the familiar blue and yellow flag of the Johnson Line. Latest ship to fly the flag in Isthmian waters was

the motorship Liom Gate which returned through

the Canal, October 12, on its maiden voyage between Europe and north Pacific ports. It was appro.\lmately the 1,300th voyage of Johnson Line ships through

the Canal, the first trip having been made October

18, 1914, two months afttr the waterway was opened, by the Krovprimessin Margareta en route to Malmo

CANAL ADMINISTRATION

BACKS FIGHT ON TAXES

(Continu'J from page IS) One of theS3

copies will be furnished the Collector of Internal Revenue in Baltimore. Two copies are furnished employees, one for their personal receipt and one which must be attached to the income tax return when

it is filed. Those employees who termi- nate their services will be furni.shcd with- holding statements showing the amounts

of deductions up to the date of their termination. The withholding tax table in this issue

is based on the premise that po more than

about 10 percent of the income shown is spent for charitable contributions, interest, taxes, casualty losses, medical expenses, and other allowable miscellaneous

items. The table, therefore, is indicative

of the total amount of income tax which

must be paid only by those employees in this category.

Those employees claiming more than

10 percent of their income as exempt ex- penditure and those with outside incomes

of more than $100 in 1951 must show

these differences on their income tax re- turns. In these cases, they must compute

their own taxes. Generally, those employees with salaries of $5,000 or less and no outside income

may file the so-called short form of the income tax return and the Collector will compute the tax and make any refund or present a bill for any amount due.

Many Outside Activities Help in Canal Work

(Continued from page /7) Veritas, and French Bureau \"eritas. Since a ship is likely to limp into one of the Canal

terminals at any hour of the day or night with damage of some nature, Mr. Breece ij subject to call for duty 24 hours a day and seven days a week. Almost invariably these calls are of an emergency

nature even though the damages to the vessel are not serious since any delay in port is costly to ship- owners and operators. Despite the fact that the .American Bureau of Shipping maintains only one Surveyor and a clerical assistant in the Canal Zone, its functions are closely related to and highly important in the smooth functioning of the Canal since the work of the Surveyor

is designed to avoid delays to the thousands of sea- going vessels which use the Canal or its facilities.

fiom Chile with a load of nitrates. The present service of the Johnson Line was established two months

later when the Kronprinz Gustaf Adolf transited on

a run between San Francisco and Swedish ports with

general cargo. The Lions Gate, shown above in Balboa Harbor, is the fourth of a new series of fast, modern motor

vessels built especiallv for the trade. The others, M. S. Golden Gate, M. S. Seattle, and M. S. Us Angeles

entered the service since the war. The ships make

nearly 20 knots on their fortnightly runs. The Johnson Line vessels have long been popular « ith Isthmian

travelers to the West Coast ports for their hixurious passenger accommodations and excellent cuisine. The Lions Gate and it« sister ships have a gross tonnage of 6,900 tons and belie their size by the trim, yacht-like lines. The Lions Gate is named for the Port of Vancouver, British Columbia, entrance which

is also sometimes referred to as the "First Narrows." Agent for the Johnson Line on the Isthmus is the Panama Agencies Company.

MONTHLY COMMERCIAL TRAFFIC AND TOLLS

Vessels of 300 tons net or over By fiscal years

Month

Transits

(In thoi

Toils sands of dollars)

1951 1950 1938 1951 1950 1938

July _ 513 430 457 $2,373 $1,891 $2,030

.\iigust 453 388 505 2,093 1,733 2 195

.September 446 -401 444 1,982 1,795 1,936

October __ _ . 440 461 1,985 1,981

November _ 439 435 1,964 1,893

December. . _ _ 488 439 2,185 1,845

January 483 444 2,207 1,838

February . 457 436 2,121 1,787

March 522 506 2,327 2 016

April, 459 487 1,959 1,961 May.- .. 488 465 2,170 1,887

June _ 453 445 2,093 1,801

Totals for first three months

of each fiscal year 1,412 1,219 1,406 $b,448 $5,419 $6,161

TRAFFIC MOVEMENT OVER MAIN TRADE ROUTES

The following table shows the number of transits of large, commercial vessels (300

net tons or over) segregated into eight main trade routes:

July—August—September

1950 1949 1938

United States Intercoastal 287 155 279

East coast of U. S. and .South .\mer'ca 274 235 108

91 106 16

East coast of U. S. and Far East -' _, 156 168 116

U. S./Canada east coast and .Australasia 36 39 39

Europe and west coast of U. S./Canada 129 112 289

Europe and South .\merica -- 91 76 137

Europe and .Australasia 64 65 52

/\1I other routes , , 284 263 299

Total Trafinc. .. . 1,412 1,219 1,335