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U.S. S. Saratoga and H. M. S. Despatch in Miraflores Locks, Panama Canal Feb. 7, 1928— The Saratoga, 888 Feet Long,—107.9 Foot Beam, Largest Vessel to Go Through 1: $8,250,000 to be applied to wipe out the deficit of previous years. The greatest amount of tolls earned in any one month has been $2,398,- 459.75, in December, 1927. For the ealendar year 1927 the surplus or profit was $10,463,565.24. A general statement of results for the year is shown in tabulated form on page 79. Future Expansion is Anticipated American business vision looks to the future. Obviously the canal is busy and prosperous at present. What of the future? The canal is operat- ing now at about 40 per cent of its year around capacity: In the present form of the canal the capacity is not the same throughout the year be- cause every year toward the end of the dry season there is a threatened shortage of water. If this shortage were to go to extremes it might so reduce the depth of the canal in the lake and Gaillard cut sections and over the sills of the emergency dams and for the upper gates of the locks at Gatun and Pedro Miguel as to make difficult or dangerous the pas- sage of deep draft vessels. The normal elevation of the Gatun lake surface is about 85 feet above sea level. The bottom of Gaillard cut is 40 feet above sea level. The sills of the upper gates of Gatun and Pedro Miguel locks are 37.33 feet above sea level. Near the be- ginning of the dry season in the latter part of December it is cus- tomary to allow the surface of the lake to rise to slightly over 87 feet above the sea. This provides a stor- age of water for consumption during the dry season when the runoff from the watershed is less than the loss of water. It is estimated that the canal could be operated with the lake at elevation plus 80 feet, or 7 feet below the maximum level. Dur- ing the years of operation the lowest stage yet reached by Gatun lake has been 81.39 feet. With the increase in traffic, it is possible that with a prolonged or extremely dry season the surface of the lake might fall to or below the line of 80 feet. To ob- viate this danger the canal adminis- tration proposes to construct a sup- plementary reservoir on the upper reaches of the Chagres river, above the edge of the present Gatun lake. The reservoir is to be constructd by building a concrete dam about 170 feet high, with its top at approxi- mately 260 feet above sea level, across the river between rock cliffs at Alha- juela. This will add about 23 billion cubic feet of storage to the present storage of 32 billion cubic feet which exists in Gatun lake between eleva- tions 87 and 80 feet. It will elim- inate for many years the concern for an adequate water supply. Next Step Additional Locks After this improvement the traffic through the canal could be double its present rate without endangering the ability of the waterway to handle it without delay. In case the traffic should continue to grow, the next step for enlarging the capacity would be the construction of a third set of locks. The present locks are twin Gatun Locks from Atlantic End. 80 Gatun Lake in Background. MARINE REVIEW—April, 1928 Gatun Dam at Upper Right