PANAMA RAIL ROAD COMPANY. : Si (19) A representative of the department was recently sent to South America to investigate the possibility of purchasing supplies on the West Coast. Purchases amounting to $31,581.52 were made. Under normal conditions there 1s apparently an abundant supply of peas and beans in these countries at reasonable prices, also great quantities of rice and fresh vegetables. Since the above-mentioned purchases were made, most of the countries have prohibited the exportation of food stuffs, and we can, therefore, secure no effective relief from this source under present con- ditions. (20) Plantations: The following data and comments are submitted in connection with the plantation operations for the last fiscal year: We have spent, and are now spending, a large amount of money in plantation developments. ‘This expenditure is justified and made neces- sary at this time on account of the high prices and scarcity of food supplies in the United States. It was also necessary to determine definitely whether or not food supplies could be grown successfully on the Isthmus. There are a number of features which tend to increase the cost of farming on the Isthmus. One of the greatest drawbacks is the inefficiency of West Indian labor. ‘There is nothing more discouraging than to attempt to teach West Indian labor the use of labor saving machinery. This class of labor also requires a large amount of supervision. This difficulty will be overcome wherever possible by having the work performed by Chinese. The principal item of expense is the high cost of cleaning the land. It is no exaggeration to state that there are almost as many roots below the surface of the soil as there is jungle above it, which have to be grubbed out by hand before the land can be plowed and properly cultivated. The cost of this grubbing ranges from $75.00 to $150.00 per acre. It has to be done only once, however, and after the ground is once put in condition, it can then be cultivated economically for all time. That certain crops can be grown on the Isthmus has been demonstrated, and although the initial cost. will be high and discouragements and failures many, the prospects of the plantations eventually becoming self-supporting commercially are good. Up to the end of the last fiscal year, twelve plantations and farms had been turnéd over to the Supply Department, which were named and numbered as follows: No. 1—Pena Guapa No. 2—Enmiliani No. 3—Manawa No. 4—Mindi No. 5—Sweetwater No. 6—Bracho No. 7—Frijoles No. 8—Davis Place No. 9—Las Guacas No. 10—Juan Mina No. 11—Las Cascadas No. 12—Venado During the same year the following plantations have been started by the Commissary Division: No. 13—Chilibre No. 14—Limon No. 15—New Culebra. No. 1—Pena Guapa: This place has been continued on the contract basis as outlined in previous report. No. 2—Emiliani: This grove is being operated. by the department and 1S furnishing enough cocoanuts to justify its continuance.