PANAMA RAIL ROAD COMPANY. - 15 a 4-way duct and the transfer of cables. Also a 600 ft. section of this duct line was rebuilt at mile post 38, new cable installed, and the overhead cable removed at this point. The principal items of work performed by the telephone department include the installation of a new cable in the trans-Isthmian duct line for the Central and South American Cable Company, the installation of one private branch exchange at Quarry Heights, and a second at the submarine base; and the installation of a complete 14 station interphone system at the Balboa radio station. Central office improvements included the installation of additional switchboard sections consisting of two operating positions at: Cristobal exchange; two positions at Pedro Miguel exchange, and one position at Balboa Heights exchange. The question of new telephone equipment for the Chieropal exchange is being investigated to determine the best type of apparatus to install. Those under consideration are the improved type of manual with’ auto- matic listing and ringing, semi-automatic, and full automatic. RAILWAY SIGNAL SYSTEM. There were a few changes made on the railway signal system during the year on account of track changes; at Gamboa a new spur track was connected to the main line; Gamboa passing track was extended 50 feet. south, making it necessary to move one train order signal and two auto- ~ matic signals; minor track changes at Monte Lirio required some changes in signal system; the power operated train order signals at Frijoles were taken out of service on account of discontinuing this as an operating station; railway switch at Rio Grande was removed and switch signals — removed. The overhead signal cable at slide near mile post 38 was taken down and cable installed in rebuilt duct line around this slide. Also new piece of cable cut in at north end of Bohio siding on account of threatened slide, new duct line having been built. Two highway crossing bells were installed at Cristobal street crossings. All signals were thoroughly adjusted for kick off and trouble from this cause has been practically eliminated. Derails were installed at several places on hand thrown switches. There were 2,404,176 registered arm movements with 131 responsible signal interruptions compared with 2,474,210 arm movements and 115 signal interruptions of the previous year. This gave an average of 18,352 arm movements per signal failure for 1918, and 21,515 arm movements per failure for year of 1917. ‘There were 556 train minutes delay in 1918, as compared with 431 train minutes delay for 1917. There was an average ot 4.2 minutes for each delayed train on account of flagging. There was one reported false clear aspect on the 120 automatic, 16 semi-automatic, 14 power operated, 12 mechanical and 11 train order signals, for the 2,404,176 arm movements. ‘This lone failure occurred in November, 1917, and was caused by broken down insulation in cable splice. | There was an average of 46 train minutes delay and 10.9 responsible signal failures per month. ; There were three derailments at the interlocking plants as compared with nine for the preceding year; one in February at the Pontoon Bridge caused by lift rail not being properly seated; second in March at Balboa Heights, caused by error in operation by leverman i in cabin; the third in