In the first district, between Pedro Miguel Locks and the sea, were removed 5,364,816 cubic yards, of which 3,329,072 cubic were taken from within the canal prism and the balance was iliary work. Of the amount removed from within the canal 1,186,432 cubic yards were of rock. Of the rock excavated, 14 cubic yards were drilled and blasted by the drill barge Tered 60,832 cubic yards were broken by the rock breaker Vulcan. remainder includes rock which had been drilled by well drill blasted in previous years and material which could be handled t dredges without mining. The average cost of prism excavation $0.2578 per cubic yard. Active operations began in Culebra C October 23, 1913, and continued throughout the year; a tot 3,432,363 cubic yards were removed, of which 919,655 cubic J were of earth and the balance rock. The average cost was $0. per cubic yard. Of this amount, 865,015 cubic yards of earth 1,557,360 cubic yards of rock were removed from Cucaracha slid an average cost of $0.4730 per cubic yard. Pipe-line dredges, with assistance of a relay, pumped over the west bank of the canal into Rio Grande Valley 684,514 cubic yards of earth and 77,880 c yards of rock, at an average cost of $0.2773 per cubic yard. C racha slide has been very active since dredging operations star the daily movement averaging about 24 feet. On June 30, 1914, total area of the slide was 60.4 acres, 44.6 acres active and 15.8 ac without motion. Dredging was done during four months of the y in Miraflores Lake, removing 159,817 cubic yards of earth from canal prism, at an average cost of $0.3179 per cubic yard.

In the second district 6,544,192 cubic yards were removed duri of which 3,692,576 cubic yards were removed from with the canal prism, 371,630 cubic yards from old French dump in Lim Ray, and the balance was auxiliary work. The average cost of pris and French dump dredging was $0.1717 per cubic yard. Of t @mcant removed from the canal prism, 158,994 cubic yards were rock Of the total amount taken out, there were removed betwe Dodder, 1914, and February, 1914, 307,195 cubic yards of earth an kore sudio yards of rock from the canal prism just north of Gambo From what was formerly known as Point No. 1.

ones iron with the Atlantic terminals the dredges remove uhin yards of earth and 16,015 cubic yards of rock from th rit of the hides roing the French canal south of the dry dock

ad yards of earth from the approach channel, 275,99 var,do od 19th and 16,360 cubic yards of rock from the new * No 4, 9, and 9, and 181,709 cubic yards of earth and 213,325 Fald yu book cock from the coaling station. The average cost of exCHAEL at the Terminala waa $0.3616 per cubic yard. Seventeen

thousand cubic yards were placed in the fill for the substation and 204411 cubic yards were placed in fills for bridge foundations, coal basins, and yards at the coaling station.

At the Pacific terminals the dredges removed 1,919,003 cubic yards fearth and 7,964 cubic yards of rock, of which 1,831,711 cubic yards dearth were handled by pipe-line dredges and relays and placed in fills for reclaiming swamp land. The average cost of this work was 811655 per cubic yard.

A considerable amount of miscellaneous dredging was also done, king the total removed by the entire dredging fleet, including yardage of sand and gravel reclaimed, 15,341,371 cubic yards. The fat consisted of the seagoing suction dredges Caribbean and Culebra, the seagoing ladder dredge Corozal, the French ladder dredges Badger, No. 1, No. 5, Gopher, Marmot, and Mole (the last abandoned Is worn out on September 20, 1913), the 5-yard dipper dredges rdenas, Chagres, and Mindi, the 15-yard dipper dredges Gamboa and Paraiso, and the pipe-line suction dredges No. 4, No. 82, No. 83, Ta 35, No. 86, and the Sandpiper. In connection with these dredges here were employed 12 tugs, 19 launches, 9 clapets, and 24 dump

As noted in the previous annual report, a contract was made with e Bucyrus Co. for the construction of two 15-yard dipper dredges ad their delivery at tidewater in the United States. The first was be ready for towing to the Isthmus on December 1, 1913, and the erond on January 1, 1914. The first dredge was accepted at Port chmond, N. Y., on February 16, reached the Isthmus on March and was placed in operation on April 4, 1914. The second dredge as accepted at Port Richmond on April 13, reached the Isthmus May 22, and went into commission at Cucaracha slide on June 1914. Due to a failure of the buckets, which were not suffitly strong to do the work, an additional delay was caused. The are to meet the stipulated dates of delivery resulted in very serily handicapping the work at Cucaracha slide and delayed securchannel sufficiently deep and wide to permit the canal to be lized for the passage of commerce before the close of the year. The sum of $2,000 was authorized to be expended in the construcon of temporary dikes on the west side of the channel where it is through at the head of Limon Bay, to determine the effect upon esion that was occurring, due to the waves created by the trade nds. The results were so satisfactory that it has been decided to ake these dikes permanent.

For further particulars, attention is invited to Appendix C.

63399°-143

MECHANICAL DIVISION.

The mechanical division was in charge of Mr. A. L. R until July 19, 1913, when he resigned from the service. Sub to that date and until March 6, 1914, Lieut. Col. T. C. D United States Army, performed the general duties relating ganization and personnel, while the operation of the shop under the supervision of Mr. John J. Eason as assistant s tendent. On January 26, 1914, Mr. D. C. Nutting, United Navy, reporting for duty, was assigned as superintendent an over all the duties performed by Col. Dickson in connection this division.

The establishments under operation by the division consis the Balboa shops (including roundhouse and car shops), the tobal shops and dry dock, Paraiso shops, Cristobal roundhous small hoisting establishments at Gatun, Empire, and Paraiso the car inspecting establishments at Cristobal and Balboa.

The Cristobal shops and dry dock have been charged wit repairs to floating equipment; as this dock was the only one able when a dry dock was necessary, it was in practically contin use throughout the year. For the purpose of docking the five marines which are on duty on the Isthmus and for docking Cere the upper lock of the east flight at Gatun was used. Paraiso shops were reestablished on October 22, 1913, to take of repair work on the dredging equipment operating in Cul Cut. The hostling of four engines operating in this vicinity turned over to these shops on May 25, 1914, and is performed u the foreman machinist. The Cristobal roundhouse was turned to the mechanical division on April 1, 1914, and all hostling at north end of the canal was concentrated there. The establishm in addition to the roundhouse, comprises a small boiler plant twit nit compressors with a combined capacity of about 2,000 for minuts The plant supplies air for hostling purposes and for work on the new piers of the Panama Railroad. A small hostl idant was published at Empire, in the shops vacated, March With Po pokallishment of the electrical division on April 1, 19 His plectrical plants at Empire, Miraflores, Gatun, and Balboa, p rigely igorated by the mechanical division, were turned over Hot dieblon and, as these plants contained air compressors, the a bedojdiende were likewise turned over to the electrical divisio The odd shopewaye shops at the Pacific entrance, formerly occupi by Hus dracing division, were turned over to the mechanical div sion on October 25, 1914, and so continued until they were torn dow in March and April The machine shops and engine house at Gatu were operated for work in connection with the installation of lock ma

chinery and caring for locomotives engaged in that vicinity. They were abandoned April 1, 1914, and the work transferred to Balboa and Cristobal. The Pedro Miguel engine house was abandoned on September 15, 1913, and the greater portion of the equipment moved to the Gold Hill engine house and the buildings turned over to the quartermaster's department and torn down. An engine house was established at Gold Hill in September, 1913, to care for the equipent employed in dry excavation north of Gold Hill. The engine Boase continued in operation until completion of the excavation work and was discontinued on March 31, 1914. The air-compressor plant at Rio Grande, which had been in operation since 1905, was shut down in October 15, 1913, and such compressed air as was required in the strict previously supplied by Rio Grande was furnished by the ant at Empire. The Cristobal car shops were in operation until March 7, 1914, when they were abandoned and all car work contrated at the Balboa shops. When the Balboa roundhouse was at into service on April 1, 1914, the Panama roundhouse of the Panama Railroad was placed out of use.

Throughout the year, while the shops were in operation, two shifts were regularly worked at Gorgona, Empire, Paraiso, and Balboa. addition to the double shift, emergencies continually arose which ecessitated large amounts of overtime work, in order that equipat might be kept in condition for use and to prevent delay in the k of other divisions.

For further details, as well as a statement showing the amount of *rk done during the year by the various shops, attention is invited to Appendix D.

DIVISION OF TERMINALS.

The division of terminal construction was organized on April 1, **14, under Mr. H. H. Rousseau, United States Navy, as engineer of terminal construction. The division embraces the forces of the mer second division, chief engineer's office engaged in the design, spection and construction of the dry docks, shops, coal and fuel- plants, floating cranes, docks and other terminal facilities; conaction transportation by rail; the road, street and sewer work der the landscape architect; and the breakwater construction at Atlantic terminal.

Dry docks. The general description and principal dimensions of Dry Docks No. 1 and No. 2, at Balboa, were given in the previous al report. On account of the condition of funds, it was decided to defer the construction of Dry Dock No. 2, but such of the dock ture as serves as an entrance pier for Dry Dock No. 1, and as permit the future completion of Dry Dock No. 2 in the dry Thout especial increase in cost will be built now. The cofferdam,

which was begun on April 1, 1913, to protect the entrance of Dock No. 1, Dry Dock No. 2, the entrance basin, and coal-pock cavations, was completed by placing 103,116 cubic yards of mat Difficulty was experienced through a portion of the doubletrestle giving way and moving outward after dumping from i commenced, but this was overcome by reinforcing the outer t dumping material from barges and the cofferdam was comp The leakage through it is relatively small and can be controlle pumps. In excavating for Dry Dock No. 1 and Dry Dock No. coal pockets and entrance basin, the old Balboa machines forced the work to be confined to the center and south sides November, when they were demolished and the last obstacle t cavation was removed. The total amount taken out from the si Dry Dock No. 1 during the year was 358,282 cubic yards, 48,838 vards of which were classified as earth and the balance as rock, 1 ing a total of 466,975 cubic yards excavated from this area up t close of the year. The division cost for the year was $1.0250 cubic yard, and the average division cost of the total was $0.9946 cubic yard. From the site of Dry Dock No. 2, which is located north of the entrance of Dry Dock No. 1, there were removed du the year 41,548 cubic yards of earth and 52,129 cubic yards of r at an average division cost of $0.8129 per cubic yard. Steam-sh operations deepened the excavation from -13.5 to the final gı for the entire area of the approach basin inside of the cofferdam, a total of 331,333 cubic yards were removed at a division cos $1.0230 per cubic yard. The area required for the storage of and for the travel of unloading towers measures 800 feet in len and about 400 feet in width, measured from the outer edge of quay wall. The total amount of excavation during the year 166,104 cubic yards, 79.837 cubic yards of which were earth and balance rock. The average division cost was $0.7984 per cubic ya The material excavated from the site of the dry docks, entrance ba and coal pocket was removed by means of steam shovels, three which were worked 8 hours a day until February, 1914, when on 5th of that month the shovels were placed on a 12-hour basis a another shovel added. These shovels worked on split shifts, hours a day, continuously to the end of the year: one shovel was moved in June. The contract entered into October 12, 1912, for d pair of steel miter-gate leaves and fixed irons was completed duri the fiscal year, and the material is stored on the Isthmus awaiti erection. The moving machines for operating the leaves, togeth with motors, controls, and covers, are also delivered.

Balboa coaling station.-Upon completion of the excavation f the coaling plant, work was begun on masonry for the crane runw supports, which extend east and west through the center of t