Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-02-17
MAK[St'GD0D PROFIT
} - f,
Investigations of the Panama
= III
Railroad.
RI - ---
neutrality-suspicious. Ut
HEARING BY A HOUSE suBcoM-
I m11fstrHp.
Chairman Hepburn Asks About the
Cost of Running the Office
in New York.
neutrality-suspicious.

The Panama Railroad Company is cap
itaiized at $l,000,00O. Its gross assets are
slo,s5o,OOO, of Which s12, 62s. 600 is the value
OF the road, real estate, equipment, ter
minals and steamships. the balance being
cash and treasury assets. The bonded in
deotedness of the property is s., $4,000, OF
which the company, owns sSs7,OOO.
Inc gross earnings of the company for
the past eleven months were 50 ,S61. 1853. The
expense of operation was $3.50, 9S4 fixed
charges. which include $3.50 600 the annual
payment TO Colombia; interest on mort
gage, S92OOo; acquisition of bonds by the
company, $4,000; leaving a balance of
SoSS.34 to be applied to dividends.
rms statement was presented today to the
subcommittee of the House committee on
interstate and foreign commerce, charged
with an investigation of the affairs of this
company.
Other information developed at the hear
ing was the fact that the members of the
fanama canal commission who have been
elected directors in the company, receive
Inc regular compensation of other
directors, namely, $25 for attendance
~ III; Inc seml-monthy board meet
llss ana Commissioner Parsons $40
for attendance on the > semi-weelsIy
meetings. OF the executive committee. Each
one Of these commissioners is
o t,n' with one share of the stock of the
company on the books and draws the divi-
dends declared on the same Admiral wal
ker, chairman of the commission is cred
ited with 100 shares of the stock on the
oooks OF the company,
Examining Director.
The Investigation today was participated
IN by the full committee and Director " H.
Brown and Vice President E. A. Drake
were examined William Nelson Cromwell.
general counsel for the company was pres
ent. .,s
"A feature of the session was the ques-
tloning OF Director Brown by Chairman
Hepburn OF the committee. With the dec
laratlon Il would like to see how much
the officers of this company know about its
business he began a rapid-fire interroga-
ton.
what is the total cost of maintenance of
the New York office?Y
- should say it was less than 100000 a
year" replied Mr. Brown
What are 3he salaries paid?"
Il do not carry the details In nv head
l could not ahswer5
Can you come within fifty thousand dol
lars of it?"
u don't care to guess"
What Is your aposition?"
II am a Director"
What is yIpur salary?"
Il have no, salary.
NO compensatfon?"
Il have compensation of $40 upon at
tending the meetings twice week, of the
executive committee, and $25 upon attend
ing the. meetings twice a month of the
board of DIRECTORS.
"Then there are; tWenty-four and 1o4
meetings a, year to- be. attended Are these
meetings pretty generally tulip
Reasonably Welt attended" >
What other;s saiapes are there?"
The vice pf1sidehtl Has a salary Of about nl
$1,000. Then,thers h "a seeretary's salary,
and an auditor. traffic manager. purchasing
agents and various Others"
oil
Il cannot
What change has been made in the SAL
aries of these officers in recent years.
None that I know off,
rs IT not true that the expense ac
count paid by, the Panama Railroad Com
pany last year in the city Of New York for
its business there aggregated about
$200.0OO?"
Seeking for Details.
II could not answer that
Gould you approximate t?'
NO SIR" s5,ffE
What percentage of the gross receipts
of the Panama Railroad Company are ex-
pended for salaries, office rent and similar
expenses in the city of New York;
Il can not answer that question off,
hand" t.--
Can you approximate it?"
''No. SIR
Are you a member of the executive com.
mittee?"
II have BEEN
Are you not now?''
Yes. SIR
What Were the gross receipts of the
Panama Railroad Company last Year,"
Il don't carry those figures In my mind
sir. and it Is impossible for me to answer
any such questions. AS say, 1 am not
one OF the managing officers of the com
pany, and those who are, are here 7 SIM
pose. prepared to give you that informa-
tion.'
w nat was the gross amount of fees (you
call them fees) received by you from the
Panama Railroad Company last year?''
Something less than, or about, 81. 900"
How many directors and members of
the executive committee are there?',
There are five members of the execu-
tive committee and thirteen members of
the executive board.'' ~
Mr.. Brown was allowed to give way on
the stand to Vice President Drake, who
was questioned by members of the SUBJ
committee at length as to dataiIS of ~