PANAMA RAIL ROAD COMPANY.

New York, November 1st, 1922.
To THe SrocKHOLDERS: | ey
I respectfully submit for your consideration a report of the Company’s

business and resulting financial condition for the twelve months from July.
ist, 1921, to June 30th, 1922, both inclusive. :

Tn that connection T call your particular attention to the subjoined fully ~—

detailed statements that cover the operation and maintenance -of the
~ Company’s property.

The unfavorable outcome of operating the Rail Road and its appurte-
nances jointly with the Steamship Line for the fiscal year as compared with
the results of preceding years is attributable primarily to the large decrease
in tonnage transported, because of the continued world wide depression
in business; the considerable reduction in rates for ocean transportation,
and to the marked writing down in value of stock on hand, of coal; com-
missary supplies, etc., which with other contributing causes are referred to
in detail elsewhere.

The outcome of the Company’s business of every character for the
period covered by this report, after meeting costs of operation, allowing
for charges to Income aggregating $32,221.00, inventory adjustments above
mentioned amounting to $552,375.40, and for depreciation on rolling stock, _
floating and pam equipment of ei. 093,028. 7 7, shows a net cout of >

$1,297,634. 39.

Respectfully submitted,

JAY J. MORROW,
President.