The Montgomery advertiser., 1905-02-19
THE CANAL
 COMMISSION Interesting Extracts From
 Its Minutes. HOUSES INVESTIGATION ice-President Drake'S TeSti-
 T10ny Taken. Chairman Hepburn of sub~Committee Probes Matter of Payments fer Directors Attendance on
 Meetings.

Washington, Feb. 1s.--The following extracts from the minutes of the Isth- milan Canal Commission of It's meeting held October Il last, explanatory of the directors fees taken from the Panama Railroad Company by members of the Canal Commission, was laid before the House Committee on Interstate and Foreign Commerce at the conclusion of it's hearing today by Chairman Hep- burn, having been received by him from Commissioners Harrod and Grunsby in letters dated today.
 The Commissioners were also inform ed by the chairman that at a recent con- ference with the President the matter of attendance fees paid to the directors attending meetings provided by the by laws of the Panama Railroad Company, was referred to and that the President desired the Commission to be informed that his order fixing tho compensation of the Commissioners was not intended to prevent the acceptance of such fee" Commissioner Grunsby stated today that the words "the President" in the Commissions minutes. referred to Pres ident Roosevelt. No action in the mat ter was taken by the committee.
 The letter of Commissioner Grunsby encloses a communication 10 him from Vice-P President Drake of the railroad company of September 1s last, in which he returns unopened" an envelope containing his fee for the first meeting he attended. He states that he did not refuse the envelope at the time 1t was handed to him at the close of the meet ing, because he did not wish to em- barrass his assocates on the commits sion. He says he could not construe the attendanme fee other than compen- sation and must decline to accept 1t.
 The investigation of the affairs of the Panama Railroad was continued to- day before the subcommittee of the House Committee on Interstate aud Foreign Commerce.
 MT. Dralxe's Teatimony.
 vice-President Drake resumed his testimony Chairman Hepburn lmme- diately took up the matter of payments for the attendance on the meetings of the Board of Directors and of the Ex- ecutive Committee of the company by members of the Isthmian Canal Com mission
 Do you keep a record of the meet ings of the Board of pirectors?" he was asked
 T do." answer Mir. Drake.
 ''Dou you keep a record of the meet inRs of the executive board?"
 "A full and complete record of every meeting is kept"
 Have you that with you?'
 ''No."
 DO those records show the atten- dancer"
 "They do"
 How many meetings of either of those boards have been attended by the directors who are members of the Isthmian canal commission?"
 "All the meetings of the boards have ben attended by members of the com- mission"
 Have members of the commission on each occasion received their fee for attendance"
 They have. sir"
 "Who that you remember?"
 All of them except General Davis, who is out of the country"
 Were any of them members of the executive committee?'
 MT. Parsons is member of the ex- ecutive board"
 Did he receive his fees for that?''
 "Yes sir
 Mir. Drake said that the nonresident directors were not allowed mileage and denied any of tho members of the Isthmian canal commission were ever paid their travelling expenses by his company.
 By Previous Resolution.
 Continuing, the witness said that the meetings of the board of directors and of the executive committee were rarely held on the same day and that the fee for attendance from members of these two boards was determined upon by resolution of the executive committee sox or seven years ago.
 Has any change been made in the salaries or compensation to officers of the company since January. 1902?" wit ness was asked.
 None. except to subordinate em- pIoyes.'
 "Can you furnish the committee with any itemized statement, showing the amounts that have been paid to gem tIemen who are members of the Isth- milan canal commission for their at tendance at these board meetings of these two boards?"
 Yes I will. There is a perfect de- tail in the account Of every penny spent by the company
 MT. Drake added that he would in- clude in that statement the dividends maids to them and that 1t would be practicable for him to bring the record of the transactions of these two
 
 feature of the investigation,
 MT. Mann then inquired regarding the steamship connection of the com pany and rates, both of steamship and railroads.
 speaking of the $25O,OOO paid to Colombia each year, Mir. Drake said that he understood 1t would be neces- sary to pay this sum as long as the concession ran, which would be until 1869. This money he said is now to be paid to Panama. It was Mir Drake's opinion that the railroad would continue to do business and be in inn oortart factor when the canal is con- structed.
 keplying to MT. Wagner he said that the Southern Pacific Railroad Com pany owned the controlling interest in the Pacific Mail Company. Mir. Drake expre ssed the opinion that the officers of the company should not be moved from New York to Panama.
 Cromwell on Stand.
 William Nelson Cromwell, general counsel for the Panama Railroad Com Dany for the past fifteen years followed MT. Drake. He stated that he nego- tiatad the transfer of the stock of the