The San Francisco call., 1905-01-14
Ak FALLS
ON CANAL
BUILDERS
President Puts Work
Under the War
Department.
Board to Consist Of Three
or Five, One to Be Gov
ernOr and Minister.
Bristow Of the Postal Service Named
to Make Inquiry Into Affairs Of
the Isthmian Railway.
Special Dispatch to The Cain.

WASHINGTON Jan. 13.--Important
| action with reference to the Panama
canal was taken to-day by the admin
| istration. The entire work was placed
by the President under the supervision
of the Secretary of War, and the Presi-
dent in message to Congress advo-
| Gated cutting down the commission
from seven to three or five members.
One of these members was named as
administrative officer of the canal strip,
and he will have combined with his du-
ties that of United States Minister to
Panama.
The Presidents action was taken be-
cause of the recommendations made by
Secretary Taft, whom the President as
signed to visit the isthmus and make
an investigation into the operations of
the commission. The Secretary found
that a commission of seven under the
plan of organization was clumsy and
; not elastic.
A plan was mapped out by the Presi-
dent in his message under which the
engineer in charge is to be advised by
other engineers, but is not to be ham,
pered in his plans by the commission.
The commission, as revised by act Of
Congress, is to have charge Of the work
of auditing, ETC., but will not be per-
mitted to interfere with the engineer
Or. or consulting si,gineers The REesident
be not limited to the engineerscerps OF
the army and navy.
Secretary Taft in his report to the
President deals with the Panama Rail-
road which is owned almost entirely
by the United States Government.
This railroad has contract with
the Pacific Mail Company, the ma
fAf h ste Il ~
Southern Pacific Company, under
which it issues through bills of lad
ing and regulates freight rates so that
they do not interfere with the trans
continental railroads. This places the
United States in the position of being
in a combination which wipes out
competition. The Secretary says that
he believes that this contract is illegal
under the laws of Panama, that it is
against the public good for the United
States to be a party to such a con-
tract and advises that the United
States give the Pacific Mail six months
notice of its intention to withdraw
from it.
Joseph L. Bristow. Fourth Assist
ant Postmaster General, to-day ten
dered his resignation to the President,
to tack effect on January 20. BY an
executive order issued late this after
neon President Roosevelt designated
Bristow as a special commissioner to
make an investigation into the present
trade conditions and freight rates be-
tween the Atlantic and Poetic coasts
and between the west coast of South
America and the east coasts of the
United States and of Europe to deter
mine the best policy of managing the
Panama Railroad.
The announcement came at the con-
clusion of an extended conference to-
day of the President, Secretary Taft,
Bristow and Senator Long of Kansas.
The order issued by the President says
in addition to the foregoing:
He is authorized to employ for this
purpose a stenographer at not exceed
ing So day and his actual and neces-
sary expenses and to take evidence of
all persons whose knowledge of trade
conditions or rates will assist In
reaching the necessary conclusion.
Until his report is forthcoming the
Commissioner will be allowed his
actual expenses and SIS day. The
President will :, finally fix his entire
compensation. The Isthmian Canal
Commission is directed to provide the
funds needed in the execution of this
order"
After the conference at the White
House Senator Long said that the
transfer of Bristow from the Postoffice
Department to work in connection with
the proposed isthmian canal had been
under consideration for long time.
Secretary Taft" said the Senator,
desired to utilize Bristows s services in
connection with the work of construct
ing the canal, and has had the idea in
mind of appointing him commissioner
to investigate the trade and freight con-
ditions ever since he returned from the
isthmus of Panama. The President
readily acceded to Secretary Taft's
suggestion, and as the work will be
entirely congenial Bristow has ac-
cepted the new position"
Bristow has had interviews with the
President and Secretary Taft regard
ing the affair. but his final determine
tion was not reached until to-day. His
decision to accept the special commits
sionership was hastened, 1t is said, by
the transfer yesterday of the division
of postoffice inspectors from the bureau
of the Fourth Assistant Postmaster
General to the direct control of the
Postmaster General himself
Bristow regarded the issuance of the
order to transfer the division as a re-
Election on him. That the order as to
the Inspectors division was not issued
with the idea of humiliating Bristow
is evidenced by the Presidents action
to-day.
PANAMA, Jan. 13.-The suggestion
that the governorship of the Panama
canal zone be combined with the Amer
ican legation at Panama has created a
feeling of disappointment among PAN
anfans, who would be disposed to
regard such condition as slight to
this Government.