22 REPORT BOARD DIRECTORS PANAMA RAILROAD COMPANY.

During the fiscal year fuel oil was used for various purposes, con-
suming 2,730,000 gallons, which when transposed to coal would
amount to 16,250 tons.

STEAMSHIP LINE.

In view of the depression which prevailed during the year in all
lines of commercial business, and especially in maritime circles, the
result of operations of the company’s steamship line for the fiscal year
may be regarded as satisfactory. ?

The earnings amounted to $1,448,355.31, a decrease of $10,198.97,
or 0.70 per cent, as compared with the previous year, while operating
expenses decreased $295,005.62, or 18.01 per cent. Of that reduction
$90,299.06 was due to lessened charter-hire expenses.

The net earnings for the year ended June 30, 1909, were $104,995.98,
as against a loss for the previous year of $179,810.67, a total gain of
$284 806.65. oo

That result was accomplished while operating on the lowest com-

etitive basis of rates for all classes of transportation that has ever

een made effective between the United States and the Isthmus of
Panama, and attention is respectfully called to the resulting effect
upon the cost of canal construction and to the paramount benefit that
accrues to the United States Government through owning and oper-
ating a well-equipped steamship line with which to guard against
high rates during the progress of that work.

Further, there was a reduction of sailings from a five to a six day

_ schedule in December last, made necessary by an accident to the

5.5. Finance, that vessel having proved a total loss as the result of a
collision with the 8S. S. Georgzc in the Bay of New York on November
26, 1908. Responsibility for the accident is in process of deter-
mination by the admiralty courts. In view of all the circumstances
it is confidently expected that full value will be recovered from the
owners of the colliding 8S. 8. Georgie. © ay

The repairs to 8. S. Colon, referred to in the report of last year,
- were completed and similar repairs effected on 8S. S. Panama. Both
are subsequently to be equipped, at the expense of the commission,
with enlarged refrigerating space in order to take over cold-storage
traffic heretofore diverted, for want of such space, to the vessels of the
Royal Mail Steam Packet Company.

During the month of September, 1908, shortly after S. S. Colon had
been restored to the line, she encountered at sea a hurricane of excep-
tional force, when her total loss was threatened, but she was able to
reach port with damages costing $38,000 to repair, which outlay the
company expects to recover out of the fund set aside by congressional —
enactment to cover such risks. | :

Availing of a congressional appropriation made for the purpose,
two 12,000-ton vessels, viz, S. 5. Shawmut and Tremont, were pur-
chased by the Government for operation in Panama Railroad Steam-
ship Line in transporting cement to the Isthmus for account of the
Isthmian Canal Commission. They were renamed Ancon and Cris-
tobal, respectively. Repairs necessary to adapt them to that service
were made under this company’s supervision, and Cristobal sailed
June 25 on a preliminary voyage. Both vessels have since made |
monthly trips as a part of the company’s itinerary. |