~~

: Steamship
Line.

Wages of
Officers
and Crew.

Reboilering
S.§

“Colon”’
and
“Panama.”

PANAMA RAIL ROAD COMPANY. Ry

GENERAL REMARKS.

The operations of the Panama Rail Road Steamship Line during the
fiscal year ending June 30, 1922, although more favorable than for the
preceding year, resulted in a deficit. of $087,332.45 after charging to
operating expenses $358,429.44 account of depreciation and general and
extraordinary repairs. The primary cause for loss was the continued
world-wide depression in business, with its consequent heavy decrease in
tonnage transported; the marked lowering of rates of freight owing to the
severe competition of direct lines operating between South Pacific and
Hast Coast Colombian Ports and New York; the unsettled exchange
situation, which with the curtailment of credits previously granted by
American merchants to South American merchants, compelled the latter
to buy and sell in Europe instead of as formerly buying and selling in the
United States and the continued high cost of foodstuffs, stores and material.

In pursuance of the Company’s policy all freight and passengers carried
for account of the United States Government during the year were charged
for at material reductions from regular tariff rates. Had the Steamship
Line received tariff rates for such services its deficit of $587,332.45 would
have been reduced to approximately $125,000.00.

The total revenue from all sources was $2, 862,898.57, a decrease of
$2,293,548.27 from 1921.

The total expenses amounted to $3,450,231.02, a decrease of
$2,407,026.04 from 1921.

The number of sailings outward from Noe York was reduced during
the year to fifty-five (55) with a total of 117,023 tons carried; as against
sixty-five (65) departures with a total of 178, 811 tons during the previous”
year; a decrease of 34.55 percent. in tonnage.

The sailings to New York were reduced to fifty-five (55) with a total of
135,843 tons, as against (65) sixty-five sailings with a total of 236,348 tons
during the previous year, a decrease of 42.53 percent. in tonnage.

The reduction in deficit of $113,477.77 as compared with the previous
year—despite the large falling off in tonnage transported—was due to
the policy of retrenchment that was rigorously enforced.

Several steamers were laid up intermittently during the year because
of small cargoes offering. The ‘“‘Cristobal”’ continued in the coal trade
between Norfolk and Cristobal in order to avail of her passenger accom-

modations for Government employees. The “General O. H. Ernst” and

“ Advance” operated in the service between New York and the West Coast
of South America via Haiti and the Panama Canal and the “ Panama,”’
“Colon” and “General W. C. Gorgas” in the New York-Cristobal Service.

The wage agreement with the Deck Officers Association expired July 31,
1921, and the anticipated reduction of fifteen percent. in wages, mentioned
in the last Annual Report, became effective August 1, 1921. A later
conference between the Shipping Board and representatives of the Masters
and Mates and Engineers Associations resulted in a further reduction of
fifteen percent. in wages that became etfective February 6, 1922.

In June, 1921, the 8S. S. ‘‘Panama,”’ as mentioned in last Annual
Report, was dispatched to the Isthmus for installation of new boilers and

general overhaul by the Mechanical Division of the Panama Canal. The

work was completed on December 2, 1921, at a cost of $472,244.49, in-
cluding the cost of boilers.

The reboilering of the 8. S. “Colon,” that was contemplated in the
latter part of current fiscal year, has been deferred for later decision.