PANAMA RAIL ROAD COMPANY. Be

visions the Company was required to take out a policy under the Insurance : |
Department of the State of New York or to establish to the satisfaction —

of that Department its ability to carry its own insurance secured by a

deposit with the Commission of an amount in cash or savings bank securi- |

ties relative to the total payroll risk assumed by the Company. The
Company was later so authorized and deposited with the Commission
$1,092.00 in cash and $11,000.00 in bonds that were procured from the
Committee on Securities for the purpose as security for the performance
of its obligations under the Act.

The indebtedness of the California-Atlantic Steamship Company to

this Company of $191,905.67 has as was expected by last year’s report

been reduced through the collection from the American Surety Com-
pany of the full amount of its bond of $40,000.00.

The suit instituted against the Company by the Pacific Mail Steam-
ship Company to recover $800,000.00 on account of the loss of the S. 8S.

‘“Newport’’ at our terminal at Balboa on August 27, 1912, has not come ~

to trial.

The operation of the Hotel Washington at Colon has been transferred —

to the Subsistence Department of The Panama Canal.

Upon application by the Republic of Panama to this Company, as
required by the terms of Article 1 of the contract of concession, this Com-
pany’s consent was given to the construction on the Isthmus of Panama
of a rail road eastward in the direction of Panama City from David, in the

Province of Chiriqui, and also of one from the coast inland in the Foye

of Los Santos.

The resignation of General Superintendent J. D. Patterson was ac-
cepted, effective October 28, 1913, and Lieutenant Frederick Mears was
appointed to the position on December 1, 1918, which he held until he

resigned to serve with the Alaskan Railway Commission and was suc- .

ceeded on May 22, 1914, by Mr. Charles H. Motsett, under the title of
Superintendent.
During the year the Company suffered the loss through death on

December 5, 1913, of Director Lieutenant-Colonel D. DuB. Gaillard, —

3

Uo A ite vacancy in the Board occasioned thereby and those re- —

sulting from the retirement of Directors W. L. Sibert and EH. T. Wilson,

were filled by the election at the Annual vieeiing held in New York ¢ on

April 6, 1914, of H. Rodman, R. H. Wood and W. H . Rose.

Respectfully submitted,

EK. A. DRAKE,
Vice-President.