_ Extension
of Service
to East
Colombian
Ports. |.

\ ,
Increase in
- Passenger
and Freight
~ Rates.

Bunker
Coal.

ats

Accident
to Steamer.

| Accident
on Board

“Colon”.

—>
-

240 | PANAMA RAIL ROAD COMPANY.

ports of the West Conse as far south as Guayaquil, and has since been
continued on approximately a monthly sailing basis.

Congestion of cargo in the Custom House at Atlantic eclenaan ports
so delayed our steamers in discharging freight as to seriously upset the
schedules of our regular Cristobal service, and the direct steamers to
Cartagena and Puerto Colombia were, therefore, withdrawn from those
ports and a transhipment service substituted, by use of the 8. 8. “Car-
ribean’”’ by which vessel, in addition to the carriage of cattle to the
Canal zone, a considerable quantity of Colombian freight was transported
to Cristobal, for transhipment to New York. —

On September 4, 1920 because of increased operative costs, our freight
rates between New York and the Canal Zone were increased by ten (10%)
per cent., plus Cristobal transfer charges which had theretofore been
absorbed out of this Company’s rate: the result proving unsatisfactory.
On November 9, 1920 our old freight rates were restored, but with Cristobal
transfer charges added.

Effective August 28, 1920 our long standing passenger rate of $75. per

capita between New York and the Canal Zone was increased to $100.

In April 1920 contract was conditionally concluded at New York with

J. H. Weaver & Company for the bunker requirements of our steamers for
twelve (12) months ensuing from May 1, 1920 at $8.917 per gross ton
alongside, based on a cost of $4.70 per gross ton at the mines; in February
1921 the price was reduced to $8.45 per gross ton and in May 1921 that rate
was by agreement reduced to $8.00 per gross ton alongside with further
reduction in prospect. |
- On September 21, 1920 while transiting the Canal, the Company’s
Collier “Achilles” collided with the bank in Gailliard Cut with the result-

ing damages that cost—$14,850.35 to repair.

On January 31, 1921 a number of longshoremen employed by the

-Company’s stevedores, engaged in placing covers in the hatch opening of

No. 2 Hold of our 8. §. “Colon”’, fell with the hatch covers into the hold
resulting in the death of four of them and the serious injury of another.
This Company was absolved from all lability and responsibility, accepted

in toto by the Fidelity and Casualty Company under their policy held by

Reimburse-
ment of
Cost of -
Recondi-
tioning
-Company’s
Vessels
assigned to
* War Dept.

the Company’s Contracting Stevedore.

On the occasion, in January 1920, of the purchase from the United
States Shipping Board of the four ex-German steamers for $750,000
that had with others been requisitioned by the War Department for over-
seas service and subsequently upon their return had been reconditioned by
this Company at an estimated cost of approximately $235,000, (but which
cost was subsequently reduced by negotiation to 8180, 000. ) no con-
sideration was had or allowance made in fixing the price, on account of the

for Overseas outlay to recondition as our claim upon the War Department for reim-

e6Et vice.

bursement on that account was regarded as a perfectly valid one. Sub-
sequently, on June 20th, or six months after the purchase this Company
was notified by the Chief of Transportation that the War Department
neither recognized nor assumed any responsibility for the cost of. recon-
ditioning said ships and referred the Company to the United States Ship-
ping Board as the owner of the vessels, for relief. ‘This Company declined
to accept that ruling and appeal was taken to the Auditor of the War
Department to whom all supporting documents were submitted on which

at the close of the fiscal year his decision was awaited. (Nor: an adverse
decision was subsequently received based upon a conclusion that “no con-