20 REPORT OF THE PANAMA RAILROAD COMPANY.

the Peruvian Government to run between Peruvian ports and
Panama. That line was admitted to through billing privileges on
the basis of strict equality with all other lines.

Other lines having arranged to connect with our railroad on the
Pacific side at Balboa in competition for traffic on the Pacific coast
both north-and south of Panama, the practice of dividing unrouted
cargo (that is, cargo not specially directed to a final carrier by
bill of lading) between the vessels of the different lines on berth
for same destination, has been adopted, in order to insure all lines
equality of treatment. “

It is interesting to note a modification in the view heretofore
generally maintained concerning the necessity that replacement
and construction work now being or to be done for account of the
Panama Railroad should be temporary in character, so that it is
now regarded by those competent to judge that most of the under-
takings should look to a contimuance of the railroad’s efficiency
beyond the completion of canal construction. Warrant for this
opinion is based upon a recognition of the fact that any increase in
transportation facilities is almost invariably followed by enlarged
traffic demands upon them.

Respectfully submitted.

K. A. Drake, Vice President.

DrEcEMBER 15, 1910.

Following the closing of the above report for the fiscal year end- —
ing June 30, 1910, and prior to the completion of the supplementary
report to November 1, hereto attached, certified public accountants
employed pursuant to a resolution of the board of directors to audit
the books and accounts of the company, and to certify the reports
of cash in hand, and under control of and in the custody of the
treasurer, to July 1, 1910, submitted reports now on file in the com-
pany’s office that fully substantiate the verity of the details sub-
mitted, and are in all respects satisfactory. They embody various
suggestions of modification in the company’s methods of accounting,
which are receiving the fullest consideration with a view to their
adoption. 3

EK. A. Drake, Vice President.

 

PANAMA RAILROAD Co., COMMISSARY DEPARTMENT,
Cristobal, Canal Zone, July 31, 1910.
Col. Gzo. W. GoETHALS,
President Panama Railroad Co.,
- Culebra, Canal Zone.

sir: I have the honor to submit herewith annual report of the
operation of the commissary department for the fiscal year ending
June 30, 1910.
_ In addition to the usual information and statistics embraced in the
report, I have included information relating to the scope and intent
of the department as a whole. |

For the purpose of clear description, I have divided the operation
of the department under four separate heads, as follows: (1) Pur-
chase and shipping, (2) receiving and distribution, (3) method of
selling to employees, (4) manufacturing. |