an interesting table showing that although wholesale prices have advanced greatly we have been able to maintain the same low level of prices that obtained in former years.

The magnitude of the commissary's operations is indicated by figures for the past year, which show that the sales and issues to the consumer reached the grand total of $5,754,955.69. The average sales and issues per month during this period were $479,579.64. That this average of almost a half million dollars' worth of merchandise per month be delivered to the consumer on the Canal Zone, it was necessary to maintain an extensive and well-organized plant for the purchasing, receiving, and distribution of supplies. A single item, fresh beef, 24,993 quarters, or about 6,246 head of cattle, which were sold by the commissary during the year, serves to illustrate the quantity necessary to provide for the employees' wants. This beef weighed 4,000,356 pounds, and its value was $326,645.85.

The following table shows the quantity and value of a few of the items carried in cold storage, which were delivered to the consumer during the year.

There was a total of about 38,000 tons of food supplies handled during the year.

A classified statement of merchandise imported during the year shows the distribution of some of the different kinds of merchandise used by employees, and purchased through the commissary.

Lemons

668, 485 42, 958

45, 637

30, 825

62, 608

_dozen__

225, 984

_do___

34, 550

.do.

_do_

6, 848

56, 155

18, 888

-pounds-

29, 480

10, 446

A few of the items from the list showing quantities of food products imported during the year suffice to indicate the vast amount of such products necessary to supply the demand of commissary purchasers. Five articles whose importation ran into millions of pounds were: Peas and beans in bulk, 1,185,071 pounds; sugar, 4,269,394 pounds; evaporated and condensed milk, 2,779,869 pounds; flour, 6,140,126 pounds; rice, 2,069,493 pounds.

Information relative to the scope and intent of the commissary department as a whole is here appended and for purposes of clearness the operations of the department have been divided into various convenient subdivisions.

PURCHASE AND SHIPPING.

Contracts for groceries and staples are made quarterly through the commissary purchasing officer located in New York, and, through him, of purchasing officers located in New Orleans and San Francisco. Requisitions are placed about 60 days prior to the time the first shipment is to be made, thus enabling the purchasing officers to procure the fullest competition from various parts of the United States, to conclude contracts of purchase and make arrangements for shipments in time to protect the commissary's requirements.

This early placing of requisitions enables the commissary to draw from all parts of the United States and makes the merchant of New Orleans, San Francisco, Chicago, or St. Louis an equal competitor with the merchant of New York or territory adjacent thereto. It also gives the commissary opportunity to procure the products of California delivered here at a price which saves transportation across the continent, the goods being delivered on the Isthmus of Panama by water transportation. This has effected a great saving to the employees by enabling them to obtain California food products as cheaply as they can be bought in California.

The line of groceries and staples is required to be equal to a sample which represents the highest grade that can be procured in the United States. This is necessary on account of the difficulty in preserving from deterioration in this climate such goods as do not grade up to a very high standard in preserving and packing. The line of groceries, cigars, tobaccos, etc., is what would ordinarily be found in a high-class store in the States.

The plan of purchasing in lots to cover requirements for a period of three months enables the department to buy in very large quantities and, therefore, at the very lowest figures obtainable in the market. A standing arrangement provides for the purchase of the greater portion of groceries and staples free on board vessel at port of shipment, thus making it possible to pay for the goods at that time and to take advantage of cash discounts. All foodstuffs are furnished under a guaranty that they will keep in this climate for a period of three months, and the contractors are assessed for the value of the spoilage of any goods delivered under this guaranty.

DRY GOODS AND NOTIONS-BOOTS, SHOES, HARDWARE, ETC.

The purchase of dry goods and notions conforms in general to the methods outlined above in the purchase of groceries and staples except that the goods are bought in lots required from time to time instead of in regular quarterly requisitions. Requirements are anticipated about 60 days in advance, so that competition between various firms may give the commissary advantages of price and quality. Owing to the quantities which the commissary purchases, it is enabled, to a large extent, to purchase from the manufacturers direct, thus obtaining goods at factory prices.

The stock of dry goods and notions is varied and covers everything a man or woman would require for wearing apparel or personal use in this climate. Boots and shoes, which are purchased under the same plan as dry goods and notions, cover a full line of shoes for women and children and a full line of both work and dress shoes for men. Under the same plan hardware is purchased. It includes a full line of cutlery, chinaware, glassware, furniture, and household equipment.

GOODS REQUIRING REFRIGERATION.

A contract for fresh meat is made annually on a basis of a percentage above or below a basing price determined from the bona fide sale of live animals in the Chicago stock yards as reported in the 5 o'clock edition of the Drover's

Journal of Chicago. For all meats, except veal, the bsing price is computed from the sales on Monday, while the sales on Tuesday determine the price of veal, these two days being the respective market days.

The commissary's specifications contemplate the delivery of only the highest class of meat under the grades specified. Considering the great distance shipped and the problems of keeping fresh meat in this climate, results obtained are remarkable. The losses from spoilage of fresh meat do not exceed 20 pounds per year, and the tons of fresh meat shipped to the commissary every week are delivered to consumers in as palatable a condition as if the purchaser had selected it at a first-class meat market in the United States.

Both in assortment and quality of meat handled, the commissary compares favorably with the best markets anywhere. Fresh meats and poultry carried in stock are beef, pork, mutton, lamb, venison in season, poultry, game in season, etc.

Other goods requiring transportation and storage in refrigeration are purchased on cable requisitions placed about 10 days in advance of the sailing of the vessel in plenty of time for the goods to be procured and shipped in either the New York or New Orleans market, whichever offers the more favorable price. The six ships of the Panama Railroad Steamship Line are equipped with cold-storage facilities, and four of them are scheduled so as to provide for an arrival here every six days. In addition to this service, a ship equipped with refrigeration space leaves New Orleans weekly.

DISTRIBUTION OF GOODS.

A careful system of accounting which is both simple and thorough has reduced the commissary losses to a minimum. So great is the accuracy obtained under it that the losses unaccounted for during the fiscal year were less than fourtenths of 1 per cent of the value of all goods sold. This included losses from all sources-i. e., clerical errors, pilfering, shrinkage, etc. At the larger stores the departmental plan and cash registers are in operation, the stores being divided into eight departments. Each department is in charge of a bonded assistant storekeeper who is required to account to the storekeeper for the goods placed in his charge. At all stores the standard departmental system is employed; the salesman makes out a sales slip for each purchase, the purchase is checked and wrapped by a wrapper and checker, and the coupons are paid to a cashier.

A train of 21 cars leaves Cristobal daily to distribute goods to the various stores. This train includes 11 refrigerator cars for the handling of meats, ice, and other perishable goods. Tugs are employed in transporting goods to Porto Bello and Toro Point. A delivery system is maintained at all points and employees have their purchases brought to them in the same way goods are delivered in the States. One delivery of ice, one of groceries, and one of cold storage are made daily in a manner that is as satisfactory as could be obtained.

METHOD OF SELLING GOODS.

Stores for the sale of goods to employees are maintained at the following points: Cristobal, Gatun, Camp Totten, Monte Liro, Tabernilla, Gorgona, Las Cascadas, Bas Obispo, Empire, Culebra, Rio Grande, Paraiso, Pedro Miguel, Miraflores, Corozal, Ancon, Balboa, Porto Bello, and Toro Point. Goods are sold in exchange for coupons which are procured by employees from their timekeepers or to the Government and Panama Railroad on invoices. Order clerks call at the quarters of employees daily and take orders for goods to be delivered on the following day; order clerks are also employed in the stores and purchasers may leave orders with them.

To serve employees at places where there are no stores, a mail order department is maintained at Cristobal. Customers forward their coupon books, which are placed to their credit. Paid orders are drawn against the mail order department by the order clerk, who is a bonded employee. One copy of this paid order is forwarded with the goods to the customer in an envelope attached to the package; and should an order be drawn for goods not in stock, the storekeeper in charge of the mail order department places a credit note in an envelope, which is attached to the package. The whole system is so arranged as to reduce the method of purchase to the lowest minimum of trouble to the purchaser consistent with safe business methods.