The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-02-18
GRAFT FOR CANAL
BOARD REVEALED
Members Draw Fees for Services
as Directors of Panama
.-'t
Railroad.
Committee of House of Represen-
tatives investigates Rail
road Officia Testifies.
New York Sun Special Service.

Washington, Feb. lS.-Members OF
the isthmian canal commission, in add
ton to drawing salaries of $4,000 a
year, and a liberal allowance for ex-
penses while on the isthmus, drew sala-
ries as directors of the Panama Railway
company, and also accepted the divi-
dends on the shares of stock, with
which they were credited in order to be
eligible as directors.
This fact was brought out in the in
vestigation of the affairs of the Pana
ma Railway company, Of which the gov
eminent owns SO per cent Of the stock,
by the committee on interstate and for
eign commerce. 49,
Money was paid the canal commits
sioners for attending meetings Of the
board Of directors and executive COM
mittee of the railway company.
These little extra payments for serv.-
ices with the railway company Melted
Commissioner Parsons $500 a year in
addition to his salary and allowances,
and the other commissioners 5000 each
year, in addition to their salaries and
allowances.
More Peruuisites.
These were not all the perquisites at
tached to the canal commission. Rear
Admiral Walker, the president of the
commission, bought in open market 100
shares of the stock of the Panama
given the other six members Of the com
mission in order that they might quail
ify as directors: The remaining nine
railway company in the name Of rAd-
miral Walker. The stock was all pur-
chased with government money. =
Admiral Walker and the canal COM.
missioners received the dividends on
the stock they hold, altho the stock was
paid for with the government money.
What Walker Says. -. ~
Admiral Walker, chairman Of the
isthmian canal commission, said today:
One hundred shares of stock In the Pan
ANA railroad were bought by the canal
commissioners in order that we might
have representation on the board. Ninety
four shares are held in my name, and one
share each in the names of the other COM
missioners. This stock was bought by tho
direction Of the administration and after
legal advice had been sought. The diyi-
dends have been paid over to the war de-
partment, but the fees for attending meet
ings of the board Of directors have been
kept by che commissioners. 1t was de-
cided by the administration that we were
entitled to the fees. Instead of reaching
$1,000 a year, the fees amount to about
500 a. year each.
President Drake Testifes.
Before the subcommittee Of the house
committee on interstate and foreign
commerce today, Vice President Drake
of the Panama company, in answer to
questions by Chairman Hepburn, testi-
fed that the records of the meetings of
the board of directors and of the execu-
tive board showed that all Of the meet
ings Of the boards had been attended
by members Of the isthmian canal COM
mission and that the members of the
commission on each occasion received
their fees for attendance, excepting
General Davis, who is out Of the coun-
| try. Mr.. Parsons, member Of the ex-
ecutive board, received fees for service
in that capacity.
| Mr. Drake said that he would furnish
the committee with an itemized state
ment,- showing the amounts that had
been paid to gentlemen who were mem
bers Of the isthmian canal commission
for their attendance at the meetings of
| these two boards. He added that he
would include the dividends paid to
them and that it would be practicable
for him to bring the record of the
transactions of these two boards.
a Not Owned by Big Lines.
William Nelson Cromwell, general
counsel for the Panama Railroad com
pany for the past fifteen years, said
that he negotiated the transfer Of the
stock Of the company and was now en-
gagged in acquiring, under instructions
from the secretary of war, the outstand
ing stock of the company for the gov
eminent. He added that the Panama
Railroad company positively, had nc
connection whatever with the trans
continental railways Of this country.
Government Dividend.
Mr.. Cromwell said that the United
! States received in cash on Feb. l., this
year, dividends amounting to $334,935
This was paid to the secretary Of
war with the exception of dividends OF
ninety shares in the name Of Ad
miral Walker, chairman of the cana
commission, which dividend was paid tt
him directly, and the dividends OF
seven shares paid directly to the or
der Of the seven gentlemen in whose
i names they stand. -.E--. <-g
\ Mr.. Cromwell explained that he hat
purchased for the government $685.
shares of this stock, that since then
the isthmian canal commission has pur
chased 101 shares making the presen
ownership of the government 6,9S'
shares and leaving outstanding IO1;
i shares. .-.----
i Canal Boards Explanation.
The following extract from the min
utes of the isthmian canal commission
of it's meeting held Oct il last, explain
atory of the railroads directors fees
was laid before the house committee to
day:
The commissioners were also informe
by the chairman that at a recent confer
ence with the president the matter of at
tendance fees paid to the directors at
4 tending meetings provided by the bylaw
of the Panama Railroad company was re
ferred to and that the president desire
), the commission to be Informed that hi
order fixing the comp of the com
mossioners was not intended to proven
the acceptance Of such fec