SIXTIETH ANNUAL REPORT OF BOARD OF DIRECTORS OF PANAMA RAILROAD COMPANY, 1909. PANAMA RAILROAD COMPANY, New York, N. Y., November 10, 1909. To the stockholders of the Panama Rawlroad Company: | I respectfully submit, for your consideration, a report of the com- pany’s financial condition and operations for the twelve months from duly 1, 1908, to’ June 30, 1909. : I call attention to the accompanying exhibits, showing income and profit and loss account, general balance sheet, and statistical tables, which will give you detailed information upon the financial aspects of the company’s business; and, further, to the subjoined reports of op- eration and maintenance of the company’s property. | ©apital stockissue (inchanved!): 2.22. 4 ee Bele os $1; 000; 000. During the fiscal year covered by this report all of the details re- quired to establish the record of the redemption and cancellation of the company’s 44 per cent first-mortgage and 6 per cent subsidy capi- — talization were completed, and at present the company is indebted only for advances made by the United States Government for im- provements and new construction called for to facilitate canal construction operations. The sums heretofore advanced by the United States Government were increased during the current year by $377,331.79; the total of $4,759,596.03 thus established was, however, reduced by payments on August 1, on account of advances for redemption of the company’s. 44 per cent first-mortgage bonds, $100,000, and on June 30 last, on account of advances for new equipment and improvements, $650,000, leaving a total balance due of $4,009,596.03, of which $1,961,378.53 ‘bears interest at 4 per cent per annum and. $2,048,217.50 at 2 per cent per annum. : : 8 The company’s operations for the period covered by this report re- sulted, after meeting the total cost of operation, together with fixed charges aggregating $493,058.11, in net earnings of $1,522,780.45. The net earnings were applied in part, as above stated, to a reduc- tion of our indebtedness to the United States Government, and of the balance, $551,185.68 was applied to new construction, equipment, and improvements. : : Karly in the official year it was deemed advisable to establish the commissary department of the company on the Isthmus upon a sepa- rate basis as to plant, amortization, operation, and revenue results. Maj. EK. T. Wilson was appointed commissary, and the report sub- mitted by him will be found subjoined hereto. During the year Directors Jackson Smith and W. C. Gorgas retired and were succeeded by Maj. EK. Tf. Wilson and Capt. F. C. Boggs. In April the office of second vice-president was reestablished, and Director H. F. Hodges was elected to fill that position on the Isthmus. Respectfully submitted. | : GrorGcE W. GOETHALS, President. 5