22 | PANAMA RAILROAD COMPANY. rectifier, storage batteries, and special flush type wall telephones. We also have on order a board of similar type, except that it has two operators’ positions for the Hotel Tivoli; also a complete central office switchboard and equipment for the new Balboa Exchange. One section of No. 9-D switchboard has been removed from Gatun Exchange on account of reduction in business at that point, and is at present being installed in the Ancon Exchange to take -eare of increased business at that end. All of the switchboards, apparatus, lines, and instruments are in good condition, with the exception of the switchboard and appa- ratus at Empire, which is giving the department considerable trouble - to maintain, and has been the cause of a large amount of poor trunk- ing service. It is impossible to rectify this condition wholly with- out completely rewiring and changing the circuits in this board, but this will be done when it is necessary to reinstall this equipment. This department is carrying on numerous experiments with different : types of coils used in telephonic apparatus, both telephone and switchboard, they having been treated in such a manner as to make them yenorpron and increase their life, for it has been found that coils formerly used and accepted in the States and other places as standard are of no use in this climate on account of the humidity, heat, and other climatic conditions. The type of coil we are now testing has been impregnated in insulating compound, and is with- out the customary bookbinder’s cloth covering. Thus far, this is ‘ giving good results. The same trouble of corrosion and leaks in keys and apparatus is distinctly noticeable in all our telegraph apparatus. We are at present trying the experiment of mounting telegraph keys on vulcanized hard rubber, thereby insulating all parts of the key from the desk, substituting mica washers and bush- ings for hard rubber for insulating binding posts and contact points. Standard telegraph relays accepted throughout the United States _as standard have also given us considerable trouble, which we have my ee remedied by adopting the following method: Boil all the coils in insulating compound, treating the wood base on which coils are mounted in the same manner, and, second, by insulating the wires from the binding posts to the coils; also by mounting the coils and all apparatus on a slate base, with all connections concealed. On request of the president of the Panama Railroad, a telephone expert was employed in the States to visit the Isthmus and make a report on the conditions at that time, and also make recommenda- tions for permanent equipment. These reports have been submitted to the president, and in ordering the permanent equipment the specifications and recommendations of the expert have been used. The trunk traffic between the principal exchanges in the system, as recorded on the 10th day of each month, has increased as follows: On June 10, 1912, we had 3,809 completed calls, with 1,080 “‘ busies,”’ during a period of eight hours, with 33 trunks. On June 10, 1913, the same record shows 7,154 completed calls, 2,457 “‘busies,’’ with 41 trunks, showing an increase in our traffic of 3,345 completed calls per day, almost doubling the record of June 10, 1912, but with only 8 additional trunks. : The operation and maintenance of electric cranes on Balboa Dock was turned over to the mechanical division of the Isthmian Canal Commission on February 15, 1913.