The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1905-02-17
Compensation as Off
Gals Of Panama Rail-
road Company.
TOLD HOUSE COMMITTEE
E. A. Drake. Vice Presi-
dent, Iestifles of Money
Paid Over.

THE members OF the Isthinian Canal
Commission. serving as directors of the
Panama Railroad Company. were averss
at first to receiving compensation for
their services. But upon application TO
power that rules their objections to re-
ceiving fees were removed"
z. A Drake, vice president and secre-
tary Of the Panama Railroad Company.
made this statement before the House
Committee on Interstate and Foreign
Commerce this morning.
He testified that the members of the
commission had received their fees for
attendance upen meetings of the direc-
torate and the executive committee. He
testified further they had been paid the
dividends uoon the shares of STOCK
standing in their name. which had been
bought To entitle them to places on the
board.
Sensational Developments.
These were the sensational develop
ments of the hearing now IN progress
on the subject of the Panama railway.
Members of the committee sat up in
their chairs as these bland statements
fell from the lips of Mr.. Drake.
The examination of Mr.. Drake was
conducted for the most part by Repre-
sentative Townsend. OF the committee.
though other members frequently inter
posed with queries and suggestions.
It developed through the testimony of
Mr.. Drake that the entire membership
OF the commission, from Admiral Wal
receiving their fees.
The members of the executive com
nittee were paid $40 for each twiee-a-
We ling at dfad 1aa
directors, from whom the committee
men are chosen, SIS for each twice-a-
month meeting
The possible annual amount OF fees
to be received by a member of the COM
rnittee, Mr.. Drake testified, is sl.64o
Tells of Compromise.
MIR. Drake then explained the reiuc-
tance OF the commissioners to accept
these fees in the first instance and told
of the compromise with "a power that
rules" that resulted In the removal of
the conscientious objections.
How did the commissioners qualify
as members Of the board?" Mr. Drake
was asked
Admiral Walker purchased, In the
open market, one hundred shares of the
capital stock of the company, one share
of which he transferred to each of the
five other members of the board. The
remaining shares stand on the books
of the company in the name OF Admiral
Walker, as chairman of the commission.
ITO whom have the dividends been
paid?" Representative Townsend con-
tinued
ITO those in whose names the stock
stands.
Mr. Drake did not know what dispo-
sition had been made of the dividends
after they had reached the hands OF
the members Of the commission.
The Presidents order regulating the
organization of the commission pro-
hibited the members from receiving any
compensation other than their salaries.
Received Assurances.
Mr. Drake said Admiral Walker had
received the assurance that this had
not been designed TO apply to the re-
ceipt of fees as directors.
Mr. Drake entered upon an extended
explanation OF the business of the COM
pany, in the course of which 1t appeared
that its dividends at times reached "a per
cent.
He offered an analysis of certain of the
company's annual reports, in which
81, 1es, S29 was charged 70 profit and loss.
Through the maze of finance where the
explanation led the members of the
committee did not seem able to follow
Mr.. Drake with entire satisfaction to
themselves.
The only other witness examined was
Vernon II. Brown a director and mem
Der Of the executive committee OF the
company
Under the prompting OF Chairman n
Hepburn, Mr. Brown evinced a rather
humorous ignorance of the manner In
which the business of the company was
conducted. He placed the salary of the
vice president and secretary, Mr.. Drake,
at 5000. MIR. Drake had TO explain it
was s.. 500.
Prompted Mr.. Brown.
Mr. Drake, in fact, had to prompt Mr.
Brown In answering most OF the ques-
tions propounded. Finally the witness
became bit annoyed.
How much does your company pay
in salaries at its New York offices %
Mr. Hepburn asked.
II don't know exactly" said the wit
ness
We'll. can't you approximate?
Il prefer not to guess" was the re-
sponse, and from this position Mr.
Brown refused to bulge.
Hearings before the committee will be
continued in the morning.
H. B. MCDONALD WILL
agEonrrr Hkn mar