Mr. COLLINS. It looks like you are getting 1 more day on us. Perhaps you have 112 instead of 111. But you do have the 40-hour week.

Governor RIDLEY. For one-third of the employees; two-thirds of them do not. Two-thirds of our employees get 61 days' leave and they get 8 holidays. That is all; 69 days.

Mr. COLLINS. They get 69 days and they get 52 days of half holiday on account of the 40-hour week.

Governor RIDLEY. But two-thirds of them do not.

(NOTE. See statement on leave, holidays, Saturdays, 40-hourweek workers, above. There are about 1,100 40-hour-week workers.) Mr. COLLINS. I am talking about the one-third that do. That gives you 121 days.

In that connection, I am going to ask the same question that I asked with respect to another bill. Will you give us by amount the money that is in this bill that goes for the pay of persons who are employed on the basis of 40-hours a week. You would have to estimate that figure.

Governor RIDLEY. I will insert it.

(The information requested is as follows:)

The amount included in this bill for persons employed on a 40-hour-week basis is $2,182,189. This amount is the difference between $3,319,785, the total to be paid to such persons, and $1,137,595, the amount to be expended by business divisions and not charged to the net appropriations to be made by this bill.

SANITATION, CANAL ZONE AND PANAMA CANAL

Mr. SNYDER. Governor, that brings us to the sanitation item on page 71 of the subcommittee print. The current appropriation is $899,793 and you are asking, for 1938, $918,000. Please insert the details of this item, Governor, and proceed with an explanation of the increases requested.

Governor RIDLEY. A summary of the estimates of net expenses for 1938 under this appropriation, by Budget classification, compared with the allotments made for 1937 and actual expenses for 1936, is stated below:

The net total obligations of $918,000 estimated for 1938 are $11,014 greater than the $906,986 available for 1937. This $11,014, consisting of $8,014 for native labor and $3,000 for material, will be needed to cover the cost of sanitary work at Summit where the new Naval Radio Station is located, and on the west side of the Canal where the Navy Department has an extensive construction program under way.

The Panama Canal administration had no part in the development of these areas by the Navy, but sanitation of the areas is absolutely essential if they are to be habitable, and the sanitary work can be done more efficiently and much more economically for the Government if handled by the Health Department of the Panama Canal, which organization has the necessary supervisory personnel, and a plant for the manufacture of the concrete drains and tiles that will be required for the areas. An increase of $11,014 in the sanitation appropriation for 1938 over 1937, is therefore essential, as no part of this increased cost will be recovered by the Panama Canal.

GARBAGE-DISPOSAL PLANT

Mr. SNYDER. I should like to ask you a question right there. You maintain a garbage-disposal plant in the vicinity of the Navy's radio station at Summit, I believe?

Governor RIDLEY. Yes, sir. That plant we use for disposal of all the garbage on the Pacific end of the Canal.

Mr. SNYDER. It was indicated in the Navy's hearings this year that offensive odors from that plant come in the direction of the Summit station about 10 or 12 percent of the time. Have you had any complaint because of that condition?

Governor RIDLEY. We have not received any complaints from the Navy Department about it.

Mr. SNYDER. Do you have any complaints from other sources? Governor RIDLEY. We have no complaints. We are running the garbage plant. At the time we put it in there we put it in before the Navy put in their station at Summit-they were advised that there might be these odors. Of course, I have never heard of the complaints, but the condition seems to be just about what we predicted, that there would be some of these odors.

The plant is a plat for the burning of garbage in an open grate, and we haul it out there, a trainload of it every day, and burn it. Sometimes the wind is from the south, which would carry the odors into the radio station that they are building at Summit.

Mr. SNYDER. Why should not the Navy bear the cost of the sanitation work necessary to be done in the Summit area?

Governor RIDLEY. The sanitation of an area, of one 'completed area, involves usually going out a mile from the boundaries of the area and seeing that there are no mosquito breeding places available within that district. If the Federal Government says that an area shall be occupied, by whoever it may be on the Canal Zone, we must go out around that area and sanitate it or else it becomes a menace to our own health, even outside the boundary of the area for a mile. Mr. SNYDER. Is that a law, or is it an established custom? Governor RIDLEY. You see, the Health Department of the Panama Canal is in charge of all health matters on the Isthmus and they must take care of any populated area that there is on the Canal Zone. Mr. SNYDER. I appreciate that.

Governor RIDLEY. So they do all of it. Naturally, when the Navy starts a post or a plant of any kind in a new place, we have to extend our sanitation around it.

Mr. SNYDER. And the health department issues orders to that effect?

Governor RIDLEY. Yes.

Mr. SNYDER. Regulations?

Governor RIDLEY. We do it; we have to do it. If we did not do it, this place might become a menace to the remainder of the Canal.

ITEMS OF INCREASE IN ESTIMATE

The following comment covers the detail of the increases as set out in the preceding summary:

Health Department:

Net increase_

Personal services_

$11, 014 21, 803:

Of this amount, $8,014 of the $13,344 increase in native labor as shown on the salaries and wages schedule in the 1938 estimates is for increased sanitary work at Summit and the west side of the Canal as mentioned above. The balance of $5,330 represents the increase in native labor that will be necessary at the new town site in Gamboa, as the full force required at that point in 1938 will not be needed for all of 1937.

An additional dentist at $3,250 per annum is estimated for 1938 to take care of American children; his services, however, will be charged for.

Lapses and administrative furloughs are $5,209 greater in 1937 than in 1938, as the permanent force will not be needed at Gamboa for the full year in 1937. The $21,803 increase in personal services, is therefore made up as follows:

Native labor for increased sanitary work.

Increase in native labor at Gamboa__.

Additional dentist_

Difference in lapses (permanent force at Gamboa)

Total increase.......

Supplies and material____

$8, 014

5, 330

3,250

5, 209

21, 803

3,000

To cover the cost of the concrete drains and tiles that will be required to properly sanitate the new naval areas at Summit and the west side of the Canal, all of this $3,000 will be charged to the appropriation.

Increase in revenue, offsetting part of the increase in expenses... –

$13, 789

Of the total increases amounting to $24,803, it is estimated that $13,789 will be recovered in additional revenue at the hospitals, and from the service rendered by the additional dentist, leaving $11,014 chargeable to the appropriation.

CIVIL GOVERNMENT, PANAMA CANAL AND CANAL ZONE Mr. SNYDER. Your third and final item, "Civil government”, appears on page 74 of the subcommittee print. The estimate here is $1,131,760, which is an increase of $57,810 over the current year. Will you insert the break-down, please, and tell us why this item needs to be increased?

Governor RIDLEY. Yes, sir.

A summary of the estimates for net expenses for 1938 under this appropriation, by Panama Canal classification, compared with the allotments made for 1937 and actual expenses for 1936, is stated below:

The net total obligations of $1,131,760 estimated for 1938 are $51,559 in excess of the allotment of $1,080,201 for 1937. This increase of $51,559 is summarized as follows:

INCREASES IN ESTIMATE FOR 1938

Explanation of the reason for the foregoing increases and adjustments follows: Civil affairs and customs: Additional customs inspector.

$2, 628. Due to greatly increased traffic at Canal ports, one additional customs inspector at $2,628 per annum is requested. This position should have been filled in 1936, or 1937 but funds were not available, with the result that the present force must postpone vacations until such time as the additional inspector is available for relief. This is not a satisfactory situation as it is essential that employees in tropical countries take vacations in a temperate climate if they are to retain their efficiency.

Supplies and material___

$223

A small but essential increase to cover additional license plates for privately owned motor vehicles, as the revenue received from the sale of these plates is turned into the United States Treasury as "Miscellaneous receipts" (licensed motor vehicles are increasing at the rate of approximately 500 per year, all Panama cars having to carry a Canal Zone license); official license plates that will be required in 1938; forms and supplies in connection with increase in the issuance of motor vehicle licenses; forms covering inspection of commercial vehicles using Canal Zone roads, which inspection commences December 1, 1936; and forms covering the administration of estates, as the volume of such work is increasing each year. Division of schools: Personal services._.

$6, 027

With 40 pupils attending the Gamboa white elementary school in 1938, and no reduction possible in the Pedro Miguel School, 2 additional teachers at $1,996 each per annum will be required at a total cost of $3,992. A native janitor will also be required for this white school, at a cost of $42.50 per month for 11 months, or $467.50 for the year.

The Gamboa native school will require 12 teachers in 1938 as compared with 8. for 1937. There will be a reduction, however, of 2 teachers in the Paraiso native schools, which will make a net increase of 2 teachers for 1938 at $784 each per annum or $1,568 for the two additional native teachers.

Material..

$1,500

There will be 146 white pupils and 640 native pupils to take care of at Gamboa and Pedro Miguel in 1938 as compared with 106 and 570, respectively, in 1937, an increase of 40 white and 70 native pupils. It is estimated that books, supplies, and equipment for these pupils will cost $1,500.

Miscellaneous expenses-

$1,002

These expenses will consist of such items as janitor supplies $150; water $70; electric current $90; care of grounds $160; disposal of garbage $75; and maintenance and repair of plant, etc., $457.

Reduction in revenue (resulting in an increase in net expenses as covered

by appropriation).

$13, 752 This is to restore part of an amount eliminated lsat year by the Bureau of the Budget on account of tuition for children of American citizens not resident in the Canal Zone and not employed by the United States or its agencies. Such children had been theretofore given free schooling and $22,122 was eliminated under the assumption that this amount could be obtained from revenue by charging tuition, but this has not proved practicable. Moreover, since the children are distributed through all the various schools and classrooms, it is not practicable to reduce expenses proportional to the number of pupils attending. The amount now estimated should therefore be restored to the schools appropriation.

In accordance with the apparent intention of the Bureau of the Budget last year, tuition charges were instituted for the present school year. The rates established, however, have resulted in considerable reduction in attendance. The institution of these charges brought about considerable protest by the American citizens concerned, who state that many are not able to afford such rates, and with no American schools available in Panama, they have to have their children attend Panamanian (Spanish speaking) schools, or forego school education. They also maintain that it is a very good policy for the United States to provide free schooling for their children inasmuch as no American schools are available and they are American citizens engaged in promotion of commerce in this part of the world and South America to the advantage of the United States.

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