PANAMA RAIL ROAD COMPANY. : 29

Agreement = All of the Company’s vessels that had been chartered to the War
| s, ee _ Department for overseas service completed their voyages and were returned
ments for to US, and an agreed cost for re-conditioning S. S. “Ancon” repaid this
re-condi- Company by the War Department, but there is pending a question for,
tioning _— final decision by the Comptroller of the Treasury regarding the authority -
ey ® © high War Department Officials had to bind the Department. to pay this
Reseed to Company agreed lump sums aggregating approximately $300,000 for
War De- reconditioning the four ex-German steamers in our service, title to them
partment having been vested in United States Shipping Board by Executive Order —
We erseas NO 2601, and that Board prohibited from charging the War Department
eo. lor any ship service rendered. This Company’s Officers, properly qualified
_ thereto, made the arrangement with the War Department Officials in good
faith, and Panama Rail Road Company being dependent upon its earnings _
for: support, is least able to bear the cost, but the final decision will in any
ease affect the disposition of United States Government moneys.

Purchase As the Company had already made heavy expenditures to repair and
Seren adapt the four ex-German vessels to our service in which they had become
e€amers. . ° ° : ° :

’ increasingly valuable and necessary, negotiations for their purchase from
the United States Shipping Board were by authority of the Board of
Directors and with the approval of Owners, concluded in January last
at a cost of $750,000, which in view of their condition, varied capacity,
the state of the charter market at the time, and of the important outlays —
yet to be made to them, was regarded as an equitable price for the four

_ ships that are now the sole property of this Company.
Transporta- § Owing to a marked falling off generally in the volume of commercial
tion of traffic, and especially that between South and Central America and the
Nitrates. United. ‘States, in which our ships are chiefly employed, opportunity was
offered to conclude charter arrangements for the diversion of several
Company vessels for six voyages to cover the transportation of nitrate —
cargoes at remunerative rates of $15 to $17 per gross ton from Chili to
United States ports via the Canal. |
New York _ ‘The Company’s arrangement with the Royal Mail Steam Packer
Hoe ‘Company for part occupancy of Pier 42, North River, was terminated, -
_and thereafter, in addition to Piers 65 and 67, North River, the Company’s
requirements were provided for by a lease from the War Department
for five years from December 6, 1919, of their Pier 1, Hoboken, which,
though larger than was immediately required, was procured i in -anticipa-
tion of our vacating Pier 65, North River.

_ Increases In December, 1919, to meet the continued high cost of living, a further
in Pay. — advance 1 in pay was allowed the Company’s clerical force in New York.
cae of Because of the prevailing shortage in office space, a change in owner-

ship and a demand for increased rental for the Company’s general office -
at 24 State Street, a compromise arrangement as to period and price, was
concluded at an advance to $3,000 per month for five years from May 1,
1920.

Installation = The Colliers ‘Achilles’ and “ Ulysses’’ were converted at. New York

ee q irom coal to oil burners at an individual cost of |
Towing For _ Achilles”. SRR eo aa . $138,300.62, ane
Machines For “Ulysses’”’ foe dO 807.40

on Colliers

“Achilles” While the colliers were in nay dock fe ee purpose, their layup of about

and — 60 days each was availed of to construct foundations and install thereon

"Ulysses. ” towing machines to haul the 7,500-ton barges “Darien” and ‘‘Mamei’’
at a separate cost of $39,000, a ship, and to correct a developed struc-

, ee