PANAMA RAIL ROAD COMPANY 1


$170,769.40, resulting in a net loss of $60,518.92 for the year as compared with a net loss of $61,571.39 for the previous year. Operating expenses include increases in unexpended reserves totalling $11,325.60.

 Details of revenue and expenses are shown in Table No. 16.

 The operation of this hotel by the Panama Rail Road during the past four years shows a gross difference of expenses over revenues of $190,833-.63. However, included in the charges to expenses for this period were $30,000.00 annually or a total of $120,000.00, paid to The Panama Canal for amortization of The Panama Canal building and equipment and $54,713.83 in unexpended reserves, leaving a total of $174,713.83 for the expenses, as charged, still in the possession of the Government, so that the actual cash operating outlay during the four years was $16119.80 more than the gross revenue for the same period.
 Hotel Washington: The gross receipts from the operation of this hotel for the fiscal year were $85,288.00. The operating expenses were $128,656.12, resulting in a net loss of $43,368.12 as compared with a net loss of $48,590.52 for the previous year. The operaing expenses included a charge of $11,106.86 as a reserve for the replacement of buildings and equipment. Statement of revenue and expenses is shown in Table No. 17.

 The decrease in revenues from both hotels was caused by the general business depression and the decrease in tourist travel. As the hotels are considered essential adjuncts to the canal and railroad in affording suitable accommodations to people having business with the canal or railroad, foreign visitors, tourists, visiting Government officials, and others, their continued operation under the present policy seems justified.


 TELEPHONE AND ELECTRIC CLOCK OPERATIONS

 Gross revenue from telephone and electric clock operations, including the rental from telegraph printing machines, amounted to $242,089.20. Operating expenses were $185,810.23, resulting in a net profit of $56,278.97, as compared with a net profit of $50,042.89 for the fiscal year 1932, an increase of $6,236.08.

 During the year 980 telephones were re-connected or installed and 1,163 were discontinued or removed, resulting in a net decrease of 183 telephones for the year. At the close of the fiscal year there were 2,766 telephones, 64 electric clocks and 26 printing telegraph machines in service.
 Statement of revenue and expenses is shown in Table No. 18.


 STABLE OPERATIONS

 The gross revenue from the stable operations for the fiscal year was $16,539.34. Operating expenses were $15,452.16, leaving a net profit of $1,087.18 as compared with a net profit of $3,159.90 for the previous fiscal year. Details are shown in Table No. 19.


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