80 PANAMA RAIL ROAD COMPANY.

cost of The Panama Canal and this Company had so far progressed to
completion that it was opened under management of the Rail“Road to

regular operation for commerce about September Ist, 1916, and shortly
thereafter the discharge of one of the colliers’ cargo of 12: 500 tons was

- completed in less than 36 hours.
ae On account of the Company's obligation to pay $1,000,000 towards ©
the total cost of constructing the permanent coal plant ‘at Cristobal
_ $475,000 has already been paid and material and floating equipment

contracted for at a cost of approximately $200,000, leaving a balance due

: Soy to be liquidated.

The new coaling plant at Balboa performed its first coaling operation

in the nature of a preliminary test on December 6th. It is expected that

regular operating tests can begin about February Ist, 1917, and the

: plant be in full operation by March Ist next.

‘The sales price of coal at the Isthmus was further advanced on Ocober

‘1st to $7.50 at Cristobal and $9 at Balboa, and again, effective December

Ist, to $8 at Cristobal and $9.50 at Balboa, due to the increased cost of

¢ ™~

coal delivered to our colliers at Norfolk and of its transportation by

them at the Isthmus. —

_ Paragraph 5, page 31 of last year’s report predicted an: Improvement

upon results already achieved in the operation of the colliers ‘‘Achilles”’
and “ Ulysses’? and further stated. “‘unless commercial tonnage could ,
be more readily and reasonably obtained it would become imperative
- that additional colliers be procured by purchase or construction in order

to maintain our supply of coal at the Isthmus to meet expected demands

when anything like normal conditions were restored.’”
Greater efficiency and reduced costs have resulted in operating the

— colliers but rates for commercial tonnage have nearly doubled, while not
merely the advisability but an imperative necessity for increasing our

coal transportation facilities has been established. Accordingly applica-

ty

tion was made to Congress for an appropriation to cover the estimated .—

cost of constructing two additional colliers of like design and dimen-
sions to the ‘Achilles’ and “Ulysses,” but to be equipped with coal
handling appliances. The Sundry Civil Appropriation Act approved
July 1, 1916, authorized the construction of two such colliers at a total
cost not exceeding $1,300,000 each, or a total of $2,600,000, and of this
_ amount $1,100,000 was made available for expenditure during the fiscal
— year 1917. ‘In the meantime advances in cost of labor and material and
_ the attitude of shipbuilding concerns made it apparent that the amount

authorized would be inadequate, and authority was obtained in the

_ Deficiency Appropriation Act approved September 8, 1916, to increase

the total amount authorized for each collier to $1, 500, 000, or a total of
$8, 000,000.

| Requests for bids were subsequently issued by The jPanama Canal
but none were received and it became increasingly evident by esti-

mates thereafter furnished by shipbuilding concerns on request that
- even the amended appropriation would have to be increased nearly 70%
or to approximately $2,600,000 per collier. It was not deemed either
_ hecessary or advisable to urge such action on the Appropriation Com-
 mittees of Congress, especially as no one of the shipbuilding concerns has

yet intimated a possibility of delivering completed vessels prior to 1918-

- 1919, by or before which time prevailing labor and-cost conditions may

he very materially moderated:

ane Congress has been, pai to repeal ‘the provision aul-