ANNIVERSARY NUMBER 1919 



117 



PACO STATION. MANILA. 



and roadbeds involving a large outlay of 

 money. Also a considerable part of the rol- 

 ling stock had been wrecked and station build- 

 ings burned along the entire line. Of the 

 improvised station buildings some still remain 

 to be constructed. Heavy indemnity claims 

 were filed with the United States Govern- 

 ment to cover the damages sustained as a 

 result of the war. These were finally adjust- 

 ed through the granting of additional fran- 

 chises and government guarantees that help- 

 ed to restore the company's financial equi- 

 librium. Following this an extensive con- 

 struction program was financed and from 1906 

 to 1913 the company extending its lines both 

 north and south. This activity resulted in 

 the present system of 1,000 kilometers of 

 road now in actual operation. It developed, 



however, that large sections of the new kil- 

 ometerage were not highly productive in 

 revenue, although it is now apparent that 

 this condition will not prevail for long. In 

 view of the rapid economic development of 

 the country, it is safe to predict that prac- 

 tically all of the completed lines wj^I be ope- 

 rating on a dividend-paying basis in the near 

 future. 



With the advent of the European war and 

 other adverse conditions the company again 

 found itself financially embarassed and after 

 extensive negotiations the road eventually 

 passed into the hands of the Philippine Gov- 

 ernment. When the Government acquired 

 ownership in January, 1917, it took over a 

 deficit of one and one-half million pesos. 

 This indebteness has been liquidated to the 



extent of over one million pesos through the 

 net earnings of 1917 and 1918. 



The outstanding stock with a par value of 

 PI 1,567,000 was purchased by the Philip- 

 pine Government for F8,000,000. The 

 obligations taken over include a long-term 

 funded debt of 1*53,900,000, represented by 

 4 per cent and 5 per cent bonds and an un- 

 funded debt of P9, 127,000, representing Gov- 

 ernment loans. 



The directorate under Government owner- 

 ship has recognized the necessity for an im- 

 mediate betterment of the yards, station 

 buildings, and equipment and the necessity 

 for a further extension of its lines as an aid 

 to the economic development of the country. 

 A number of the most important station build- 

 ings were extensively repaired during the 



BICOL EXPRESS LEAVING PACO STATION 



