PANAMA RAILROAD COMPANY. 28

The company’s berthing requirements in New York Harbor are
still very inadequately provided for, notwithstanding that with the
valuable assistance of Mayor Gaynor and Dock Commissioner Tom-
kins the company secured a temporary lease from the Southern
Pacific Co. of one (Pier No. 52) of its group of five piers on the North
River water front. However, both that pier and pier No. 67, which
is retained, are one-sided piers, and the company is constantly obliged,
at very considerable.expense, to berth its vessels at other piers and
to rehandle ships and cargo at an expense disproportionate to
earnings.

The steamships Ancon and Cristobal having been previously placed
by the Isthmian Canal Commission in the service of the company’s
steamship line without charter hire, subject to a stipulation that
they be maintained in serviceable condition, especially for the trans-
portation of cement to the Isthmus, on November 1, 1910, the two
vessels Colon and Panama belonging to the commission were also
placed in the company’s service without charter hire, this company
agreeing to effect all repairs necessary to their maintenance in the
condition they were at the time the arrangement was made, subject.
only to ordinary wear and tear. The company was thus relieved of
the payment of approximately $120,000 per annum. ‘This allowance
was, however, immediately offset by an arrangement made with the
Isthmian Canal Commission by which an agreed rate of $1.75 per
ton for the transportation of the commission’s cement requirements
to the Isthmus was to be modified by a deduction from the monthly
amount due the company on account of such service of a pro rata
share of the total charter money waived. This has resulted in a

rice to the commission of $1.25 per short ton, as against $1.84 per
long ton paid under contract to foreign vessels employed to transport

Se of cement required beyond the capacity of the Ancon and

ristooal. : ;

The fuel required by the company’s steamers delivered in New
York was increased both in quantity and in cost due to the demon-
strated necessity for the use of a higher grade of coal than had been
purchased under various contracts in the prec@ding two years.

During the year the company suffered the loss by death of Capt.
Edwin Hammond, who had grown up in its service, to the time of
his decease in command of the company’s steamship Colon.

GENERAL REMARKS.

As the result of congressional action the company discontinued all
forms of insurance, and was at the same time relieved of its obligation
to pay an annual indemnity of $250,000 under its contract of con-
cession from the Republic of Panama that had been assigned by
treaty to the United States of America. By subsequent enactment
(sec. 2 of the sundry civil service act, approved Mar. 4, 1911) this
company was released from further payments on account of principal
or interest on account of its indebtedness to the United States Gov-
ernment, for which, however, until further action, the company is
still. accountable, in amount $3,247,332.11. In this connection it
should be noted that the sum represented by this indebtedness was —
applied to the liquidation of the company’s outstanding 4% per cent
funded debt and to extraordinary construction and equipment called
for to facilitate canal operations.