6 PANAMA RAIL ROAD COMPANY


 OPERATIONS OF NEW YORK OFFICE
 GENERAL ADMINISTRATION

 On November 14, 1932, the Board of Directors accepted the resignation of Brig. General H. Burgess as President and as Director of the Company, and adopted resolutions expressive of their appreciation of the valuable services rendered by him for the past eight years during an especially trying period of business depression when his wise counsel contributed in no small measure to the successful operation of the corporation.
 On November 14, 1932, Lt. Col. J. L. Schley was elected President; and on the same date, Lt. Col. C. S. Ridley was elected a Director in place of General Burgess, and Second Vice-President in place of Col. Schley.


 It was with sincere regret that the Directors learned of the sudden death of General Burgess on March 18, 1933, following a major operation.


 On May 8, 1933, the resignation of Mr. John Taber as a Director was accepted; and the Board of Directors adopted resolutions expressive of their appreciation of the valuable services he had rendered to the Company.
 In last year's report, reference was made to the declaration by the Board of Directors at its meeting held June 28, 1932, of a dividend in cash equal to the proceeds of $2,800,000. par value 31% United States Government bonds of 1946-49. The amount realized from the sale of these bonds, at an average price of 99-26/32, was $2,794,718.75. On April 3, 1933, an additional dividend of $5,281.25 was declared so as to make the total payment $2,800,000.; and on May 23, 1933, final payment was made on account of this dividend, amounting to 40%7 upon the capital stock of the Company.
 Since 1904, when the United States Government secured control of the Company, dividends, aggregating 125%7 upon the capital stock, have been declared by the Directors, and dividend payments amounting to $8,744,905. have been deposited with the Treasury of the United States. During the same period, the 'capital assets of the Company have increased from $11, 421,117.93 to $35,390,896.79 through the employment of part of the earnings of the Company for the purchase of locomotives and other rolling stock, the construction of concrete docks, commissary buildings, plants, and necessary equipment, the installation of modern telephone system throughout the Canal Zone, and similar improvements necessary for the economical and efficient conduct of the Company's business.
 Salary adjustments of the personnel afloat and ashore have been made in accordance with the provisions of the Economy Bill passed by Congress.
 Following the usual practice, Haskins & Sells, Certified Public Accountants, have audited the general books and accounts of the Company that are kept in New York, as well as the accounts of the Trustees of the