28 PANAMA RAIL ROAD COMPANY.

7 Cristobal, July 19, 1917.
THe CHIEF QUARTERMASTER, |
BauBoa Huicuts, C. Z.

Sir: In accordance with your letter of June 22, I submit herewith the
following report and data with reference to the operations of the Commis-
sary Division,.for consideration in connection with the Annual Report for
the year ending June 30, 1917.

The following statements are enclosed herewith:

First—Comparative Statement of Manufactured Articles at the
various plants, for the years 1915-1916, and 1916-1917.

Second—List showing quantities of certain staple articles purchased
during the fiscal year ending June 30, 1917, as compared
with the previous year.

Third—Statement of Retail Selling Prices as of July 1, 1917, as _
compared with prices in effect July 1, 1916.

Fourth—Statement showing quantities of the more important
articles purchased by the Products Buyer in Costa Rica, and
the total value of all such purchases made during the year.

(1) In connection with Statement No. 1, attached, your attention is
invited to the large increase in the output of the manufacturing plants.
With the exception of the Laundry and Ice Cream Plants, all branches of
the manufacturing operations showed an increase, the largest increase
being in the production of Native Beef. The value of this item increased
from $446,882.69 to $927,551.06. The increase in the number of pounds of
Native Beef consumed, as shown on statement No. 2, indicates that the
consumption increased from 3,843,377 in 1916, to 7,117,613 pounds in 1917,
while a decided decrease is noted in the amount of fresh beef purchased in
the United States, this item decreasing from 3,237,598 pounds in 1916 to
1,832,714 pounds in 1917.

(2) There is a decrease in the amount of potatoes, onions and cabbage
used during the past year, due, no doubt, to the high cost of these vege-
tables and an increase in the amount of yams, which would indicate that
at least part of the American population is adopting native products.

(3) Statement No. 3—Comparison of Retail Selling Prices as of July 1
1917 and July 1, 1916: This shows a steady increase in prices of all food
stuffs during the current year.

(4) Statement No. 4 shows the quantities of supplies purchased in
Costa Rica.

The Costa Rica Agency was established early in 1916, and as the native
production of that country had to be stimulated, there was very little
fruit and vegetables purchased until the fall of 1916. The records indicate
that during the last fiscal year a total of $113,523.12 worth of supplies were
purchased in Costa Rica, $65,000.00 of which was coffee and sugar, the
‘ remaining amount being fruit and vegetables.

The shipments of fruit and vegetables from Costa Rica have been
somewhat interrupted during the last two months on account of difficulties
in transportation. Arrangements were recently made for a regular
schedule to Port Limon by the Panamanian Steamship “San Blas,” and so
long as this arrangement is in effect, no more ey) in transportation
should be experienced.