New York
Piers.

Haitian
Business.

Unadjusted

Accounts.

Temporary

PANAMA RAIL ROAD COMPANY. 27

and the United States of Isthmus employees and their visiting relatives
that could not be accommodated by our own Line. The expense to this
Company of $27,781.65 was unavoidable in order to comply with condi-
tions of employment, avoid labor troubles and prevent hardship for
employees on the Isthmus.

During the year through lack of other available piers in New York
Harbor the Company continued the occupancy of only Piers 65 and 67,
North River, and of Pier 42 as co-tenant with the Royal Mail Steam
Packet Company notwithstanding the fact that permanent and more
adequate berthing facilities were required for the Company’s business
that was materially increased by participation in Haitian traffic. We are
making every effort to secure adequate permanent facilities.

The results obtained by the Company and the mercantile communities
of both the United States and Haiti from the establishment of Port-au-
Prince as our principal port of call in that Island as mentioned in last
year’s report justified the inauguration of a regular service to all of the
most important minor points on the Island both North and South of that
port. A contemplated further extension of the Line to contiguous points
on the entire Caribbean littoral has been authorized by our Board of
Directors.

Long standing open accounts aggregating $24,539.16 against the Owners
of the “‘Portland” and “Mackinaw’’ were closed June 30th through a
compromise payment of $3,500 by the former, and the writing off to
Profit and Loss of the latter as uncollectible.

As a result of the policy adopted of effecting all possible reconstruction —

Assignment and repairs to our steamers on the Isthmus, including the reboilering of
of Superin- §, §. ‘““Ancon” and ‘‘Cristobal’’, it was thought advisable in June, 1918, to

nd ing
Engineer
to the

Isthmus:

Increases
in Pay.

Rental of
Offices.

Isthmus
Coal.

temporarily locate our Superintending Engineer at Balboa Heights in
order to insure effective co-operation between this Company and the
Mechanical Superintendent of the Panama Canal under whose direction
the work is performed.

In order to retain the services of trained and efficient employees and to
adequately recognize the high cost of living the Company at times during
the fiscal year voluntarily allowed justifiable advanées in pay to its agents,
clerical forces and dock employees, and otherwise compulsorily concurred
In advances in pay and improved conditions allowed its marine forces by ~
the Wage Adjustment Commission of the U. 8. Shipping Board and to the
longshoremen, dock laborers and checkers by the National Adjustment
Commission in New York that in the aggregate resulted in a very impor-
tant increase in the Company’s total annual operating expenses.

The increase in the number of employees and in their work in the
Company’s New York Office necessitated the hiring of additional space -
in our present building, which was secured, but at an expense of a 124%
inerease in the rental of the total space occupied.

The policy of steadily increasing shipments of coal to the Isthmus in
anticipation of the prolongation of the war was continued until by October
dist, 1918, a maximum quantity of about 342,000 tons was established;
46,727 tons were sold in excess of receipts during the fiscal year, leaving
170,702 tons on hand June 30th, 1919. Thereafter our difficulties in
procuring cargoes at Tidewater in the United States increased with the
result that our coal pile at the Isthmus was relatively decreased, but at
no time was the danger point reached.

With our two colliers “Achilles” and “Ulysses” supplemented by the