PANAMA RAIL ROAD COMPANY


Pension Fund. They have verified the cash and securities held in New York in the custody of the officers, the Committee of Securities of the Board of Directors, and the Trustees of the Pension Fund; and they have accepted the report of the Auditor of the Panama Canal in the Canal Zone of his verification of the Company's cash on hand at the Isthmus that is held by the Collector and Paymaster of the Panama Canal. The accounts covering the operations of the Company on the Isthmus are based upon monthly reports rendered by the Auditor of the Panama Canal, who is in charge of the auditing of the Isthmus accounts of the Company and of the Panama Canal.

 PANAMA RAIL ROAD STEAMSHIP LINE
 The gross operating revenue of the Steamship Line from the transportation of freight, passengers, and mail during the fiscal year that ended June 30,.1933, was $939,880.67 as compared with $1,231,241.59 during the previous year. There was a decrease of 24,281 tons in the cargo carried, causing a decrease in freight revenue of $212,241.05; a decrease of 996 in the number of passengers carried, causing a decrease in passenger earnings of $44,908.93; and a decrease in mail earnings of $34,210.94, making a total decrease in revenue of $291,360.92.
 Operating expenses, which included charges to depreciation of $125,329.52, amounted to $1,260,365.32, as compared with $1,528,321.50 during the previous year, a decrease of $267,956.18. This resulted in an operating deficit of $320,484.65 as compared with $297,079.91 in 1932.
 Freight traffic of the Panama Canal and other Departments of the United States Government was carried at a reduction of 25% from established tariff rates. Passenger traffic for account of these Government Departments, including Panama Canal employes and their families, was carried at reductions from established -tariff rates that range from 25%7 to 80%. These reductions in freight and passenger charges amounted to $420,642.54. Had the Steamship Line been credited with its tariff rates on this freight and passenger traffic carried for account of the Government, its operations would have resulted in a profit of $100,157.89. The number of passengers carried for account of the Government was
 4,752 adults
 697 children under 12 years of age
 227 inf ants under 3 years of age.

 The Company's steamships have been maintained in good operating condition, and are periodically inspected and approved by the United States Steamboat Inspection Service.