Shipping.-A Peruvian steamship line has been established with two fast steamers built in England, to run between Peruvian ports and Panama, and the voyage is now made from Calloa to Panama and vice versa in six days, instead of nine as formerly. The advent of this service has had the effect of arousing the British and Chilian companies, who work together under a private agreement, and their service between Panama and Valparaiso has been accelerated, so that it is now possible to make the voyage between these ports in 14 days.

The Pacific Mail Steamship Company of San Francisco is the only regular line of steamers trading between that port and Balboa (Panama), arriving and sailing once a week, about 24 days being occupied on the voyage. Other steamers which arrive from the North Pacific are chartered specially to bring supplies for the Canal Commission, and occasionally a steamer belonging to the Kosmos Line is a visitor.

The National Steamship Line, a native company subsidised by the Panama Government, monopolises the coasting traffic on the Pacific coast of the Republic, and there are now frequent opportunities for communication with the interior provinces.

Port accommodation. Balboa.-The dock at Balboa (the port of Panama, sometimes called Ancon or La Boca) is 2,000 feet long and 80 feet wide, in addition to two railroad tracks. All the merchandise dock is under cover. The least depth of water alongside at low tide is 24 feet 6 inches. Five ships of from 3,000 to 5,000 tons can moor at the docks at one time, and there are lighterage facilities for unloading additional ships in the harbour. At the extreme end of the docks is a 16-ton crane, and along the front of the wharf are 10 14-ton and 8 4-ton movable cranes, all run by electricity. The lumber dock is large enough to make it practicable to unload 150,000 feet a day, but ships for Balboa should be prepared to land lumber or piling with their own gear, as the cranes on the docks will not handle them to advantage. Coal chutes, with a capacity of 1,000 tons a day, are established alongside the lumber dock. The Panama Railroad Company has 8 cargo lighters, with a total capacity of 2,000 tons, 3 coal lighters of 700 tons, and 1 tug boat.

Port charges.-Pilotage, 10 dol. Wharfage, 50 dol. a day for vessels landing and discharging passengers. Where vessels discharge a general cargo the wharfage charge for handling the merchandise ist 80 c. per ton and 10 c. cranage. Stevedoring about 65 c. per ton weight or measurement. Ballast, 1 dol. 50 c. per ton.

Harbour improvements. Balboa.-A commodious inner harbour, or anchorage basin, will probably constitute one of the permanent features of the Pacific end of the Canal. The harbour will have a total area of approximately 246 acres, the greater part of which, outside of the Canal channel, will have to be dredged. When the basin is completed plans will probably be considered for a permanent system of piers, or docks, extending along the east side of the harbour. The harbour, as planned, will afford an absolutely safe anchorage as it will be practically landlocked, with no sea disturbances, except the rise and fall of the tides.

Roads and motor traffic.-There is as yet no road connection between Panama, the towns of the Canal zone, and Colon. The Pacific portion

of the Canal zone highway from Panama to Gorgona, a distance of 20 miles, is under construction in three sections, and over 12 miles have been completed. On the Atlantic side the road from Colon to Gatun, 8 miles long, is completed and open for traffic. On account of the absence of roads, there are less than 20 automobiles in private use, of American make, which have all been imported by the owners. A contract for the establishment of a motor service for passengers between Aguadulce and Santiago, a distance of about 40 miles, has been made by the Government, the autobuses for which are now being constructed in the United Kingdom. It is possible that a service of taximeter cabs in the city of Panama would be profitable. The population of that city is accustomed to riding in cabs, on account of their cheapness and the absence of tramways, and the number of tourists visiting the city in connection with the Canal works, and of transit passengers, is rapidly increasing, and these would readily utilise such cabs for the purpose of seeing the town, visiting the Sabanas or driving to the docks.

Railway from Panama to David.-In November, 1909, the Panamanian Government made definite proposals to the Isthmian Canal Commission for the construction of the projected railroad from the capital to David, which it is considered to be the most important factor in the development of the country, passing as it would through the regions richest in natural resources and most suitable for extensive cattle raising. The Government proposed that the Panama Railroad Company should undertake the survey and ultimately the construction of the railway, utilising as far as possible the railway material to be discarded by the Canal Commission as the work of excavating the Canal progresses, and that the cost of construction should be reimbursed by the Panama Government. In 1893 an American engineer estimated that the length of the railway would be 274 miles and its cost 931,4561. The Panama Government admits that this estimate would have to be exceeded, but taking it as a basis on which to calculate the ability of the country to support the cost of the railway, proposes that the work of construction should extend over 10 years and the cost be met from the sum of 180,000l. voted by the National Assembly for public works in the various provinces during 1909-10, and a similar sum to be appropriated during each of the succeeding biennial periods, leaving the cost of the rolling-stock and material acquired from the Canal Commission to be defrayed from the annual payments of 50,0007. which the United States will commence to make to Panama in 1913 under the Hav-Bunau-Varilla Treaty.

The United States Government has accepted the proposal only so far as to consent to undertake the preliminary survey, which has now been commenced by the Panama Railroad Company. It is contemplated that the railway, if built, will form a link in the proposed PanAmerican railroad.

Progress of the Canal.-On May 3, 1910, the sixth year of American Canal construction ended, and it is confidently anticipated that the Canal will be completed before January 1, 1915. The estimate of the cost of the Canal when completed now stands at 375,000,000 dol., which is largely in excess of the original estimates.

The entire length of the Canal from deep water in the Atlantic to deep water in the Pacific is about 50 miles. A vessel entering from the Atlantic will follow a dredged channel, 500 feet in width, for 7 miles to Gatun, where it will enter a series of three locks in flight and be lifted 85 feet to a lake of 164 square miles in area, created artificially by damming the Chagres River and other streams, effected by means of the Gatun dam, an earthwork nearly 1 miles long, half a-mile wide at its base, and about 100 feet wide at the top. The vessel will be able to move at full ocean speed through Gatun Lake in a channel varying from 1,000 to 500 feet in width, for a distance of about 24 miles to Bas Obispo, at which place it will enter the Culebra Cut, where the continental divide has been pierced by excavation. The channel through the cut is 300 feet wide at bottom, and extends 9 miles to Pedro Miguel, where the vessel enters a lock and is lowered 30 feet, reaching sea level again through two locks in series at Miraflores, whence it passes out into the Pacific through a channel about 8 miles in length.

The total excavation as originally planned was estimated at 103,795,000 cubic yards, in addition to the excavation by the French companies, but changes in the plan of the Canal increased the amount to 174,666,594 cubic yards. Active excavation work on a large scale did not begin until 1907, and up to the end of 1909 94,969,387 cubic yards had been removed. The building of the locks at Gatun and Pedro Miguel was begun during 1909 and the construction of the dam is steadily proceeding. The labour employed on the Canal is nearly 39,000, of whom some 5,000 are Americans, 5,000 are European labourers, mostly Spaniards, and of the remainder 28,000 are West Indians, almost entirely British subjects.

Panama Railroad.-The United States Government is the sole owner of the entire 70,000 shares of the capital stock of the Panama Railroad, but it is still worked as a company under the laws of the State of New York. The following table shows the freight (in tons) carried during the fiscal years ended June 30, 1907, 1908 and 1909, with countries of origin and destination:

The effect of the competition of the Tehuantepec route is evident in the foregoing figures. The through freight traffic for 1909 was 32 86 per cent. of the total tonnage as compared with 35 50 per cent. in 1908. Coal, including that of the company, comprised 52 63 per cent. of the traffic from Colon to Panama. The number of passengers carried, both first and second class, showed large increases in 1909 as compared with 1908, due almost entirely to local traffic. The gross revenue receipts were 853,4327. in 1909 as compared with 908,2877. in 1908, a decrease of 54,8551., but the working expenses were considerably less, namely, 471,2647. in 1909 compared with 566,2287. in 1908.

Oil fuel.-Oil has been substituted for coal on the passenger locomotives, and the change has been very satisfactory, both on the grounds of efficiency and comfort. The conversion of the burners costs about 681. There is a saving of about 2s. per 100 miles, passenger service, and 11s. 8d. freight service in favour of oil. The engines are giving far better service with the fuel burners, as the maximum amount of steam can be had at all times, ensuring a higher tonnage and no delays for want of steam.

Relocation. As the present railroad runs through the site of the Canal lakes and also intersects the Canal, it has become necessary to rebuild the road at a higher level and following the line of hills. The relocated line is 46.2 miles long, or about 1 mile shorter than the old line, and its estimated cost is 1,445,000l. It is almost completed and will be ready for use, if necessary, during the autumn wet season of

1910.

Sanitation. The United States Army Medical Corps has sanitary jurisdiction over the towns of Panama and Colon as well as in the Canal zone, and the improvement every year in health conditions is most marked, as the following table of death-rates shows :

COLON AND CRISTOBAL.

Mr. Acting Vice-Consul Filliter reports as follows:—

Population. The population of Colon was on May 31, 1909, estimated at 17,000; the inhabitants include every nationality, but from 80 to 90 per cent. are British subjects; this great majority is for the most part composed of natives of Barbados, Jamaica, Trinidad and the other West Indies, besides many natives of India. The Chinese community is still large and controls much of the retail trade, but under the existing immigration laws no further additions will be possible from outside.

Labour. The largest employers of labour are the Isthmian Canal Commission and the Panama Railroad Company; the docks also give occupation to many.

Skilled labour cannot be obtained locally; the supply of unskilled labour, though abundant, is said sometimes to fall short of the demand. There is from time to time a small demand for seamen, but this is irregular and uncertain, and no British ships open articles in this port.

Public works.-A road, 9 miles in length, from Colon to Gatun, has been built within the last year by the Isthmian Canal Commission, who are engaged now in clearing the adjoining land of the trees and jungle covering it, the trees being cut down and the scrub removed by burning.

Labour for public works is largely furnished by convicts.

Local products. From an agricultural point of view the Atlantic coast of the Isthmus is in a very backward condition; a joint stock company has, however, been recently formed, and is expected soon to commence operations in the neighbourhood of Colon with a view to developing the country's agricultural resources.

A considerable coasting trade is carried on, chiefly with the native Indians, who bring their products by sea to Colon.

Cocoanuts. First in importance come cocoanuts; New York absorbs the entire supply.

Ivory nuts, or tagua, grow wild, and are shipped to New York and Hamburg, the former offering a somewhat better market; they are extensively used for the manufacture of buttons, studs, &c.; the larger nuts are as a rule sent to New York. The export to the United Kingdom is comparatively small owing to the low prices offered on the

London market.

Tortoise and turtle shell are exported in about equal quantities to London, Hamburg and New York; the shell of the axe-bill turtle is exported and the meat sold locally, its value as a food product being insufficient to justify the risk of shipping the turtle alive.

The green turtle, whose meat fetches high prices, is exported alive to the United Kingdom.

Rubber. The wild trees are tapped for rubber, and both slab rubber are exported.

scrap

and

Balata was discovered some five years ago; it is cultivated for export, but might be more fully developed.

Hides. A number of hides are cured and exported annually.