12 REPORT OF THE PANAMA RAILROAD COMPANY.

PANAMA SAND BEACH.

The old Panama sand beach, extending along the shore of Panama
Bay to the east of the city limits, was abandoned as a sand pit the
early part of the‘calendar year. The operations of the commission
in furnishing sand in large quantities for their concrete work made
it possible to secure a better grade of sand from the commission.

NEW DOCK 12.

Work on preliminary investigation and fillmg for proposed new
Dock 12, started in the last fiscal year, was continued. Borrow
pits were opened up-and-material hauled to fill in the swamps extend-
ing from our Cristobal yard to the*proposed site of the new dock.
This work was all suspended in the month of December, pending
further investigation. During the year there was about $40,000
expended in drilling, surveying, and filling in this site.

PANAMA GCVERNMENT RAILROAD SURVEY.

In the month of March the Panama Railroad entered into con-
tract to survey a route for a railroad from Empire, in the Canal
Zone, to David, in the western part of Chiriqui Province. This line
. is some 300 miles long, and on the Ist of April, five complete locating
parties were put in the field, each being given a territory of about
60 miles. Work on these preliminary surveys has been progressing
satisfactorily, and it is expected that a preliminary report will be
rendered in the month of October. A map has been prepared show-
ine the general line which it is expected will be followed, although
there is not enough information at hand to determine even an approx-
imate location of the line over all sections.

MAINTENANCE OF EQUIPMENT.

The expenses of this department show an increase of $193,432.31,
or 64.13 per cent. |

Effective July 1, 1909, the interstate-commerce accounting rules
regarding depreciation and renewals of equipment were placed in
effect, and as a result there was charged off, on this account,
$164,866.09 in excess of the charge made during the year ending
June 30, 1909. The remainder of the increase is due to heavy
repairs made necessary by climatic conditions.

_ During the year the following additional equipment was received,
erected complete, and placed in service: Six first-class coaches and
four refrigerator cars. :

At the shops of the railroad company there have also been erected
for the Isthmian Canal Commission one hundred 12-yard western
dump cars, two 25-ton Browning cranes, and fifty-nine 19-yard Oliver
dumpicars.4

TRANSPORTATION EXPENSES.

' The expenses of this department decreased $35,472.84 as compared
with the last fiscal year, or 3.55 per cent, while the freight tonnage
handled shows an increase of 111,913 tons, or 9.65 per cent, and the
mileage of this tonnage an increase of 2,281,139 ton-miles, or 5.44
per cent. —