The Montgomery advertiser., 1905-02-18
AFFAIRS OF PANAMA ROAD Its Capitalization, Assets and Indebtedness. FACTS ARE BROUGHT our Investigation of House Sub
 Committee. chairmsn Hspburn's Rapid Firs aues- itiOns to Director nrswn---Aa-
 miraI walker Explains His
 Holdings.
FACTS ARE BROUGHT OUT

Washington, Feb. 17.-~The Panana Railroad Company ia capitalized ak 100000. Its gross assets arc $t6y&8Qs- 900. of which $12,62S.00o is the vasuo of the road. real estate, equipmentss terminals and ateamships. the balance being cash and treasury assets. The bonded indebtedness of the property ts $s,159.0OO Of which the company owns $sS7.000. The gross earnings of tho company for the past eleven months were S2,S61,35s. The expense of opaz~ ation was $i,s40.s94 fixed charges, which includes $2so.Ooo. the annual payment to Colombia; interest on mortgages s92,000; acquisition ek ing balance of s5S3.s7f to be applied to dividends.
 This statement was presented today to the sub-committee of the House on Interstate and Foreign Commercs. charged with an investigation of the affairs of this company. Other infoT- nation developed at the hearing was anna Canal Company who have been elected directors oe the company re- ceive the regular compensation of cth CT directors, namely $25 for attendanca On the bi-monthIy board meetings. and Commissioner Parsons &10 for attend ance on the bi-weelIly meetings of the Executive Committee. Each one nf these rector-commissioner is credit ed with one share of tha stock uf tho company on the books and draws tlie dividends declared on the same. Add miral Walker. Chairman Of the Com~ mission, Is credited with 100 shares ok the stock on the books of the cona~ pany. 6S
 The investigation today was partlc- ipated in by the full committee and Dt- rector V. H. Brown and vice-Presi- dent B. A. Drake were examined. William Nelson Cromwell. general counsel for the company. was present.
 Interesting FeatuEe A feature of the session u Questioning Of Director D a Chairman Hepburn of the c
 With the declaration, T woul Ike | see how much the officers of tnse eans l. pany know about it's i5usineas A l gan n rapld-fire interrogation.
 ..What is the total cost Of rnalnte nance of the New York ohiceg
 T should say 1t was less than Sl00.- oOO a year." replied Mir. Brown. "What are the salaries paid T do not carry the details in my head. could not answer"
 'sWhat Is your position?'
 T am a director"
 What is your salaryY'
 T have no salary.
 "No compensation" T have a compensation of $10 upon attending the meetings twice week 1 Of the executive committee and S@s upon attending the meetings twice month of the Board of Directors. 'What other salaries are there7
 '-rhe presidents salary Is sl0.0o0 year; the vice. president has salary 1 of about Si6.O00. Then there is the | salary of the secretary, an auditor, traffic manager. purchasing agents and various others."
 can you tell what they aggrssatsT
 .what change has been made in the salaries of these oficers in recent yearsT"
 The Expense Account.
 "Is 1t not true that the expense ac- count paid by the Panama Railroad Company last year in the City of New York for its business there aggregatea about s20O.000?'
 T could not answer that"
 What percentage of the gross rec | ceipts of the Panama Railroad Com pany are expended for salaries. ofiiee rent and similar expenses in the City of New York2'
 hand"
 Committee?"
 "Yes, sir what were the gross receipts of the Panama Railroad Company last year3 T don't carry those figures in my | mind, sir. and 1t is impossible for ma | to answer any such questions. As l say I am not one of the managing of hcers of the company and those who l are are here suppose prepared to give you that information.'
 what 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 ST. OOo."
 HOW many directors and rnembera of the Executive Committee ara | there?
 "rhere are. five members of the Ex- ] ecutive Committee and thirteen mem bers of the Executive Board" MT. Brown was allowed to give way 1 on the stand to Yice-President Drake. Mir Hepburn asked Mir. Drake to sub init later the amount paid each direc- tor for attending meetings during the year 1904. MT. Drake replied he would | do 1t, that he could now give the total amount for the first eleven months Of that year. being $500, showing. he added, ''that all the directors did not draw the full amount possible.g Mr. Townsend asked, Did the Canal Commissioners, acting as directors. re- eeive the fees of directors?" They did after the first meeting. ROosevelt's Letter. | Mr. Drake explained that the ques- | tIon was raised by Mir. Grunswy and that the directors decided that It would l invalidate the payment of salaries to all directors should the commissioners directors not receive pay. Tt was de- cided that President Roosevelts letter was not to inveigh against the practice of the railway company" he added. but he did not explain what letter was meant.
 The first election of directors under the ownership of the United States ia to take place April next l The last statement made by Mir. ! Drake was that Admiral Walker had | xs..,-.y,k q .ron sharaa oF Nta afs.a1r isr 4ka