The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1905-02-19
DIRECTORS FEES
CAUSE RJCT|ON
More Panama Troubles Be
fore House Committee.
SAYS THE PRESIDENT KNEW
One of the Government Officers Tells
of White House Conference-Grun-
sky Explains His Position.

Eyaitf GrunslSy. one of the members
OF the Isthrnian Canal Commission. has
consistently declined to receive fees Tor
his attendance director at the
meetings OF the directorate of the Fan
anna Railroad Company others OF the
commission have been equally consist
ent in accepting these fees. For justin
cation they adduce the words OF the
President tc Admiral Waikar Chairman
of the commission.
This very decided difference of opinion
was brought out al the hearing before
the House Committee on Interstate anu
Foreign Commerce yesterday, ana at
the executive session that followed.
Letters were read from Commissioner
Grunsl1y and Commissioner Tarred' ana
in the meantime 4 statement had peeh
given the public by Admiral Walker,
through the columns of The Times
Mr.. Grunsly's letter showed very CON
t,lusively he had suffered TO recent
change of heart, but that ms views W
the propriety of accepting fees Tor ser
vices as a director had never varied
His letter was addressed to Chairman
Henburn of the committee and referred
at the outset to the testimony given De
fore the committee On Friday as 10 the
receipt Of fees by the directors
His Letter.
This fact had been the subject or CON
siderable adverse criticism. As an eVi-
dence of his own position Mr.. Grunsky
sncloses a carbon copy of a letter writ
ten bv him on September 13 last TO e. A
Drake. secretary OF the company SO
far as it relates 10 the SUBJECT OF
fees. this letter is as follows;
Enclosed [ hand you. unopened, an
envelope that was handed TO me at the
close of the first and only directors
meeting, July g. which I have atte1'oea-
II contains, suppose, the ATTENDANCE zee
to which the directors are enti1ied uiider
the company's bylaws.
II did not insist upon declining ms
fee at the time it was handed me IN
order TO avoid possible embarras sfnen NJ
~ my associates and because l desired
to read again the President s letter,
which makes our services on the hoa"o
of directors a part of our official duties
for which we are otherwise conapeh-
stated. =.
81 cannot construe the attendance lee
other than compensation. and, therefore
must deeiine TO accept any such Zee
for attendance at meetings
The remaindt; of the letter is on other
subjects.
President Informed.
The letter from Commissioner Harrod
In Chairman Hepburn was also read al
The executive session OF the committee.
He says:
vour committee yesterday CONCERNING
the acceptance by members of the 18TH
milan Canal Commission of fees for at
tendance at meetings of the board OF
directors of the Panama Railroad Com
many. [ beg that you will submit TO your
<,o1nu,ittee the following extracts from
the minutes of tie commission or Octo-
Der II:
The commissioners were also IN
formed by the chairman that at a re-
cent conference with the President the
rnatter of the attendance fee paid to the
directors attending MEETINGS provided
for by the bylaws o. the Panama Riiii-
road Company was referred to and that
the President desired the commission &c
be informed that his order f1xing tbs
CONDENSATION of the com missioners WAS
not intended To prevent the acceptance
Of suci. & fee.
MY connection with the board as 9
director was subsequent TO the settle
rnent Of the question as above cited
Two Witnesses.
Mr.. Drake and William Nelson Camp
bell, attorney for the Pane ma Railroad
Company and various other Panama en-
crprises-including the republic itself
we're the oEIy witnesses before the COM
niittee They gave evidence on lines
similar 20 those followed at the hear
ings on Friday. save that Mr.. Cron1-
well entered upon an extended dis
eussIon Of the value of the property ant
the exceeding upwisdom of its consign'
ment to the scrap heap.
Both Mr.. Cromwell and Mr.. Drake
conteHded the construction OF the cana
would not destroy the value or the use
fuiress OF the road, but that it would
continue and increase in prosperity "a
long as the canal lasts.
Searching Examination.
Ia the examination Of MIR. Drake
Chairman Hepburn was exceedingly
searching IN his efforts to secure infor
matioa as to the attendance of member.
of the canal commission upon meeting.
of the directorate of the railroad com
pany. and the receipt by them OF fee.
for such attendance. MIR. Drake sale
ne did not have exact information OF
the subject, at hand, but that If coulc
be easily Obtained and he would fur
nisl1 ii 20 the committee
The examination CT witnesses and tn
investigation of the subject as yet ha
been hut well begun. The member
OF the committee are manifesting a Wig
orous interest in the matter and seen
determined to gain all the information
needed TO enable them 10 reDort legisla
ton that will cover the subject.
SERVING DOUBLE PURPOSE.