Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-02-18
Payment for Attending Pan
anna Railway Meetings.
PRESIDENT Is WILLING
STATEMENT MADE TO THE IN
vEsTIGATING COMMITTEE.
Examination Of Vice President Drake
Resumed - Inquiring Into the
Administration of Affairs.

The following extract from the minutes of
the isthmian canal commission of it's meet
ing held October II 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 close of its hearing today
by Chairman Hepburn, having been receiv-
ed by him from Commissioners Harrod and
Brunsky in letters dated today:
''Ihe commissioners were also informed
by the chairman that at a recent confer
ence with the President the matter of the
attendance fees paid to the directors at
tending meetings provided by the bylaws
of the Panama Railroad Company was re-
ferred to. and that the President desired
the commission to be informed that his or
der fixing the compensation of the COM
missioners was not intended to prevent the
acceptance of such fee"
No action in the matter was taken by the
committee.
The letter of Commissioner Grunsky in
closes communication from him to Vice
President Drake of the railroad company
of September IS 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 II was handed him at the close of the
garrass his associates on the commission
He says he could not construe the attend
ance fee other than compensation and must
decline to accept 1t.
Vice President Drake Resumes.
The investigation of the affairs of the
Panama Railroad Company was resumed
today before the committee. Vice President
Drake went on with his testimony. Chair
man Hepburn Immediately took up the mat
ter of payments for attendance on the
meetings of the board of directors and of
the executive committee of the company by
members of the isthmian canal commission
DO you keep a record Of the meetings of
the board of drectors?'' he asked.
Il do," answered Mr.. Drake.
do you keep a record of the meetings or
the executive board?'
"A full and complete record of every
meeting is kept"
Have you that with you?''
No"
do those records show the attendance?"
''They do.
How many meetings of either of those
boards have been attended by the directors
who are members of the isthmian canal
commission
IAN of the meetings of the boards have
been attended by members of the commits
sion.'
''Have members of the commission on
each occasion received their fees for at
tendance?'
They have, SIR
who, as you now remember?'
"All of them except General Davis, who
is out of the country"
Were any of them members of the eX-
ecutive committee?
Mr.. Parsons is member of the execu-
tive board"
Did he receive his fees for that?'
Yes, sir.
Mr. Esch: Were any of the members OF
the board of directors nonresident to New
York;"
Yes; some of them
Where you have nonresident director
is he allowed milea ge?
NO, sir
Not Paid Travelling Expenses.
Mr. Mann: Are there any members OF
| the canal commission who were ever paiG
for their travelling expenses by your com
pany?
| NO, sir
DO any of the members of the isthmian
| canal commission live in New York;
Mr.. Parsons and Mr.. Burr
| Continuing. the witness said that the
| meetings of the board of directors and OF
| the executive committee are rarely held or
| the same day and that the fee. for attend
| ance of the members Of these two boards
was determined upon by resolution or tht
| executive committee SIN or seven years ago
| Has any change been made in the sal
! aries or compensation to officers or the
company since January, 1907! witness was
| asked.
| None except to subordinate employees
| Can you furnish the committee witt
! an itemiZed statement showing thu
| amounts that have been paid to gentle
| men who are members of the isthmiaI
| canal commission for their attenda nee a
| these board meetings of these tive
| boa rds.
| YES. / will There is perfect detailed
account of every penny spent by the com
pany.
Mr.. Drake added that he would INCLUDE
| in that statement the dividends paid t
| them and that it would be practicable
for him to bring the record of the trans
| actions of these two boards.
This closed for the time this feature o
the investigation.
Mr. Mann then inquired regarding th
| steamship connections of the compan,
and rates, both of steamship and railroad
Annual Payment to Panama.
Speaking of the s2J0O0o paid to Colon
bia each year, Mr.. Drake said that h
understood it would be necessary to pa
| this sum as long the concession rar
which would be until 1869. This money
he said, is now to be paid to Panama.
was Mr.. brakes opinion that the railroa
| would continue to do business and be a
important factor when the canal is con
! structed
| MI Lowering reverted again to tn
board of directors and asked what wa
the specific work done by the board. TIL
answer was that it dealt with all ques
tions of policy. the approval of contract
and traffic agreements, the operation {
the road and the increase of facilities.
Mr.. Drake suggested that there is II
board whose members have higher stant
ing. Replying to Mr.. Wanger. he said ths
the Southern Pacific Railroad Compan
owned the controlling interest in the Ps
| cific Mail Company.
| Mr.. Drake expressed the opinion that I'll
offices of the company should not be move
from New York to Panama.
Mr. Cromwell Testifies.
| William Nelson Cromwell, general couns
for the Panama Railroad Company for II
past fifteen years, followed Mr.. Drake. II
stated that he negotiated the transfer
the stock of the company and is now el
gagged in acquiring, under Instructions fro
the Secretary of War. the outstanding stoc
of the company for the government.
Mr.. Cromwell had bought thirty shares
| the stock for himself several years ago.
Have you transferred these shares to II
| United States?" asked Mr.. Townsend.
'Twenty-nine of them. I have retain'