The leader., 1904-12-10
A STARTLING DISCLOSE
MADE TO CONGRESSIONAL COM.
MITTEE SENT TO PANAMA.
GOVERNMENT DEFRAUDED OF Si5O.OOO
job Perpetrated by French Stock.
doIders-Members Assert That Estl.
mates Of the Cost Of the Canal Are
Absolutely Worthless, and That u
May Cost Many Millions More Thar
as First Supposed.

1 4 i
Washington, DC, Dec. 5.-Repre
sentative Shackelford, Of Missouri.
member of the house committee on in.
terstate and foreign commerce, viii
throw a bomb into the house Of the
hfty-eighth congress tomorrow in the
form of a resolution. The explosives
in the bomb were gathered while the
committee was in Panama looking
over the great Isthmian canal property
at close range.
The resolution to be introduced to
morrow will ask congress to empower
the committee on interstate and
foreign commerce to investigate the
affairs of the Panama Railway Com.
pany, going into every detail of man,
agement, operation, condition of prop
erty, franchises and to ascertain if
dividends have been paid to any stock.
holders not authorized by law. The
committee also desires to ascertain If
the Panama Railway Company has en-.
tered into a contract with any steam.
ship company or companies to monop.
olize traffic in restraint of trade. The
resolution will set forth that the
United States is the owner of SO per
cent of the shares of capital stock OF
the Panama Railway Company, and
that congress should have knowledge
of it's affairs.
It is understood that the proposed
resolution of Representative Shackel
ford is based upon sensational dis
closures made to the committee on IN
terstate and foreign commerce while
inspecting conditions in Panama. II
is understood that the United States
suffered to- the extent OF $l5O.O0u IN
the purchase of the Panama Railway
and that the loss thus sustained was
the result of job perpetrated upon
This government by certain French
stockholders. It is claimed that after
the United States had negotiated TOT
the purchase of the railway IN ques
ton, the old company declared dlvl
dends in excess of the gross receipts
to the extent of about $15O,OO0. This
is understood to be one of the dis
closures which the committee pro-
poses to show by its investigation.
That the whole Panama canal prof.
ect has been fearfully handled up to
this time is practically the opinion OF
Representative F. C. Stevens, Re
publican, of Minnesota, member OF
the committee on interstate and
foreign commerce. His statements
are sensational He claims that the
estimates furnished up to date are not
worth the paper they are written on;
that no man can determine at this
stage of procedure what it will cost
the United States to dig the canal
Anything like an intelligent idea Of
the vastness of the undertaking and
the necessary expenditures, in Repre-
sentative Stevens opinion, cannot be
arrived at until Chief Engineer Wal
lace and Gen. Davis make their report
He thinks the canal is just as liable
to cost million million as it is $780,,
100000 He thinks that the Isthmian
Canal Commission as at present or
ganized is failure, save as to Chief
Engineer Wallace and Gen. Davis.
He thinks the commission should be
recognized with view to better ser.
vice.
In the opinion of the Minnesota
representative there has been too
much sitting around. in Washington
in dress suits, while the real exigen.
cies of the canal situation were al
lowed to suffer for lack of earnest of
fetal attention. In contradistinction
to this program he would have Pana-
ma divided into five districts, and
place one member of the commission
in charge of district This arrange
ment, he thinks, will facilitate the
work of Strengthening out the tangle
in the canal zone.