DAE 7 PANAMA RAIL ROAD COMPANY.

GENERAL REMARKS.

Steamship Subject to United States Naval regulations that were continued during

Line. the closing months of the war, and only gradually withdrawn thereafter,
the vessels of our Line were kept j in active employment during the fiscal
year in their regular Isthmus traffic and otherwise in more extended |
service as called for by United States Government emergency requirements
with no accidents that our own ships were directly responsible for. The
regularity of their movements on schedule was intermittently interfered
with by labor disputes that occasioned losses to both employer and labor
until they were temporarily compromised with a prospect of subsequent
revival.

The Company’s policy affecting its Steamship Line has been continued
in the direction of establishing and maintaining reasonable rates, advances
being made only as justified by materially increased operating expenses.
The rates from New York have, as far as practicable, been framed and
maintained with a purpose to place American shippers on a footing of
equality, at least as far as rates are concerned, with shippers from Europe
to the identical destinations; effort has consistently been made to give to
our shippers and patrons a service so satisfactory as to warrant them in
continuing to avail of the Company’s facilities during the existing and
more competitive periods that are within sight.

The net revenue derived from the operations of the Steamship Line
was $3,125,812.24, an increase of $1,766,604.24, as compared with the
previous year.

The operating revenue was $9,835,184.68, an increase of $4,185,455.00
over 1918. The percentage of operating expenses to revenue was 68. 227;
as against 75.94%, a decrease of 7.72% as compared with 1918.

Reboilering The 8.5. “Cristobal” went out of commission at the Isthmus in April,

-Ancon and 1918 for reboilering and incidental repairs authorized by a Congressional

Cristobal. A bpropriation of $720,000 to cover identical work on the sister ships
 Ancom and =Cristobal.”

$256,258.21 was actually expended by this Company on the “’Ancon,”’
first under repair, in excess of her proportion of the appropriation for the
reason that although .the ships are the property of and registered in the
name of the Panama Canal they are contractually allocated to this Com-
pany’s service, and thus because of lack of available funds elsewhere
it was concluded that this Company was obligated to and should assume
responsibility for such excess outlay. A. like conclusion was reached
regarding an estimated excess expenditure of $586,000 required to complete
the authorized work upon the ‘‘Cristobal”’ and to cover as well an important
enlargement in her passenger accommodations to cost $116, 000 and of her
conversion from coal to oil burning at an expense of a7(), 000, a change
approved by our Directors as well in respect of the colliers “Achilles” and
“Ulysses” and our S. 8. ‘‘Ancon.’’ In view of the resulting increase in
value of the ‘‘Cristobal’”’ as enlarged, the Board deemed the above. men-

_ tioned expenditure warranted, and have in contemplation the outlay
required to increase the passenger accommodations of the ‘‘Ancon’”’ (the
installation of oil burning equipment having been effected during her
lay-up in New York for repairs necessitated by her service as a United
States troop ship) when opportunity offers to withdraw her at the Isthmus
from commission a sufficient length of time to fit her out in all respects as
a sister ship of the ‘“‘Cristobal.’’ |