30 PANAMA RAILROAD COMPANY.

reduction in the total tonnage to be handled by our vessels may be
expected. Owing to the uncertain tenure of occupancy of the com-
pany’s piers at New York, the necessity for permanently adequate
accommodations for theline becomes amatter for serious consideration.

 GenerAL REMARKS.

The sum of $244,694.92, representing the total of losses incurred by
the company since March 4, 1910, of a character ordinarily recover-
able under fire and marine insurance, but by congressional enact-
ment not so underwritten since that date, has been, by authority of
the board of directors, carried to the debit of the company’s profit
and loss account. |

The company’s indebtedness to the United States Government
remains unchanged.

At the close of the fiscal year the company’s funds in bank amounted
to $2,520,216.13, and in addition there was held in the reserve fund
established September 12, 1911, savings-bank securities purchased
at a cost of $1,590,234.75, an increase of $96,771.25 due to a rein-
vestment of accumulated interest.

The construction of the substructure of the company’s new terminal
docks at Cristobal Point has been practically completed, and mate-
rial progress has been made in the erection of the superstructure.
The amount expended under the authority of the board of directors
to June 13, 1913, in connection with the work was $2,127,332.15,
and at this writing careful consideration is being given to the neces-
sity for constructing an additional adjoining dock to replace the
company’s wooden Piers Nos. 1, 2, and 4 in Colon, condemned
by ie department of sanitation for ultimate demolition or rebuild-
ing of concrete on account of their imsanitary construction, and
because the cost of maintaining them is out of proportion to their
revenue-earning capacity. The estimated cost of such a new pier
is approximately $1,000,000. An adequate return upon such an
investment is almost assured by the extensive preparationsin progress
by domestic and foreign lines to avail of all terminal facilities afforded
by ue Panama Railroad Co. at the Atlantic entrance to the Panama
Canal. | :

There are multiplying evidences that the activities of the Panama
Railroad in the handling of local and through traffic will continue
after the opening of the canal and allowing a limited period for
adjustment to new conditions on a progressively increasing scale.
For that reason the course adopted by the board of directors, con-
curred in by. the owners, in planning future operations and providing
that all new construction and equipment work be permanent in
character is fully warranted.

Rapid progress is being made toward the completion of the new
passenger station in Panama, which it is expected to open for gen-
eral use by the public by November 1, 1913.

Important reductions in expenses on the Isthmus materialized
prior to and have developed since May last, due to a gradual reduc-
tion of forces hitherto engaged in the construction and transpor-
tation departments. On June 30, 1912, there were employed by the
railroad 6,165 men; on June 30, 1913, the number totaled 4,358