SIXTY-FOURTH ANNUAL REPORT OF THE BOARD OF DIRECTORS OF

THE PANAMA RAILROAD CO, JUNE 30, 191s.

PANAMA RAILROAD Co.,
New York, N. Y., November 1, 1918.

To the stockholders of the Panama Raulroad Co.:

I respectfully submit, for your consideration, a report of the com-
pany’s financial condition and operations for the 12 months from
July 1, 1912, to June 30, 1913.

In this connection I call to yoursparticular attention the subjoined
reports of operation and maintenance of the company’s property, to
the details of the accompanying exhibits, showing income and profit
and loss account; general balance sheet and statistical tables, which
furnish complete information concerning the financial aspect of the
company’s business, together with the report of the commissary
concerning the operation and financial results of his department.

The status of the company’s indebtedness to the United States
Government referred to in my report of last year remains unchanged.

Regarding the future policy of the company as related to the open-
ine of the Panama Canal to commerce, the board of directors, after
mature consideration of the topic in conference with the Secretary

of War, the company’s principal shareholder, decided to continue to

operate the railroad and steamship line as at present except for such
modification of existing practices as may be expedient from time to
time to meet changed conditions. |

By Executive order of December 5, 1912, all land and land under
water within the limits of the Canal Zone was declared to be neces-
sary for the construction, maintenance, operation, protection, and
sanitation of the Panama Canal, and the chairman of the Isthmian
Canal Commission was directed to take possession, on behalf of the
United States, of all such lands and extinguish by agreement, when

‘practicable, all claims and_ titles thereto. Consideration of the

question of compensation for any of this company’s land taken over ~
under said Kxecutive order, as well as for all property, material, etc.,
exchanged by the respective interests in the course of canal con-
struction, has been postponed until a final adjustment which will

_ serve as a basis for a complete revision of the company’s inventory

and accounts to meet the situation created by the opening of the

canal to commerce. | ,
The company’s operations for the period covered by this report,

after meeting the total cost of operation, together with fixed charges

£f

ageregating $113,585.39, and charges for depreciation of rolling stock,
floating and plant equipment, »mounting to $268,942.62, resulted in
net income of $2,179,175.50. | :
During that period $2,275,905.70 was expended for additions and
betterments of plant and equipment. |
Respectfully submitted.
Gro. W. GoETHALS, President.

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