The Birmingham age-herald., 1906-02-01
Incompetent Officials Have Caused Freight Congestion
SCHWERIA SCORES MR TAFT
Says His Charges Are Either Mao. Through Malice or Through lgnor- ance of the Causes of the
 Present Difficulties.

Washington, January s1.-Robert P. schwerin. general manager of the Pacific Mail Steamship company. was before the Senate committee on interoceanic canals today. His attention was called to a statement made by Secretary Taft criti- cising the service between Panama and San Francisco. and it's part in contribut- ing to the congestion of freight at Pana- ma. He replied;
 Secretary Tafts statement was made either through malice tending to injure an American industry, or through ignor- ance of the causes of the difficulties pre- sented. as he has complained on them"
 Continuing he said that the Pacific Mail Steamship company operated nine regular steamers on the Pacific coast which steamers sail on schedules ap- proved by Honduras Mexico. Nicaragua and other countries which ports are en- tered The schedules provided for con nections with the steamers of the Pana- ma Steamship company from New York by means of the railroad across the isth- mus The schedules require the company to make connections and exchange freight. said MT Schwerin.
 Railroad Officials Incompetent.
 A description of the conditions on the isthmus since the canal commission took charge of the Panama railroad was given by Mir Schwerin He said that freight had accumulated on the wharves, all commercial shipments having been held up by the movement of canal materials, and the difficulty. MT. schwerin asserted, was due to ''culpable negligence on the part of the raanaging officials of the Psn- ana railroad aud n4er nd Terence 10 their obligations as a common carrier.
 Tt became the understanding that the United States had bought the railroad to build the canal and cared nothing for the commercial business across the isthmus. Comercial business was neglected and It was said by Secretary Taft, MT. Wallace, Admiral Walker. the former chairman of the commission, and others connected with the building of the canal that commerce was secondary to the movement of canal material. It was that indifference that brought about the congestion.
 we found it impossible to segregate the shipments for particular loadings, all of which was due to the inefhciency of inc officers of the Panama Railroad conn pany."
 Demurraqe Charges Enormous.
 Mr schwerin said that the British ships from New York were held up so long that there were bills for demurrage amounting to sl8.617 between August and November gO 1905. and the Panama railroad Will nave these to pay. He said that the Pacirc Mail steamers were held up for longer periods and there was no way this com many can enforce demurrage charges He oharged thai the railroad company had further delayed the Pacific Mail Steam chin company ships by failure to furnish them with coal, as they are required to oo under contract. 4.. .o
 Mr schwerin said he had resorted to avery means to bring about improved con ditions even making a protest 10 the stalo denartment MraISchwerin complained also that the Panama railroad had arpiliai lts reduced rates from New York to ports an inc Pacific coast where the haul was di,,ided between the Panama Steamship conpany and the Pacific mail. He said he was informed that the reduction was a concession to the steel trust which had protested to Admiral Walker that the rates were cheaper from Europe to Central America than from New fork to the same ports. Secretary Taft had then taken the matter up, said MT. schwerin. and authorized reduction in the rates.
 Tn the absence of a contract, he added, the rate could not be learned, except by mutual consent and the adjustment of the rates is still pending.
 Company Has No Monopoly.
 If was denied by MT. Schwerin that his company has had monopoly on the Paci- Ac coast. and he declared that there had been no money in the business between San Francisco and Panama.
 Senator Knox asked MT. Schwerin If he had not smarted a little under the critic fem of Secretary Taft and if that feel ing had not cropped out in his testimony Mir. Schwerin replied he had thought it too had to be held up to ridicule and disgrace by any official of the United States when every effort had been made ito uphold the American flag in bus1- ness that had almost been driven off the seas. He denied to Senator Morgan that the Pacific mail has any connections with A trans-contnental railroad and declared Secretary Taft's statement that his com many had put small steamers in the isth- mus trade In order to divert the better steamers to the coffee trade absolutely false MT Schwerin made the statement that the Tehuantepec railroad across Cen tral America will be completed by June 1. He said that 1t would put the Pan anna railroad and the Pacific Mail Steam ship company's line out of business. as by the new line there would be reduc- ton in time from San Francisco to New York from twenty-four to twenty-six days"