The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-03-07

and his sympathy and support in admhis-
irative matters connected with canal mat
ters.
Mr. Morgan then referred 10 a letter
from former Chief Engineer Wallace To
Mr. shonts marked personal and conf
dential,n which was put into the record
by Mr.. Cromwell, and desired TO Know
how Mr.. Cromwell gained possession OF
the letter. Mr.. Shonts could not say, but
he believed he had filed copies OF the
letter with the canal commission the
Panama railroad and with Secretary Taft.
Must Be Just to Family.
In that letter aIr Wallace said that lie
feared Secretary Taft had misunderstood
his reasons for wishing TO retire. and he
told Mr.. Shonts that he CWsllace) had a
duty to his family to consider. and that
a business proposition had been opened
up to him which he could not AFFORD to
reject. Mr.. Morgan asked the witness
what he should do if the President told
him he must move TO the isthmus and
live there. and TO take the members of
his family there and Keep them there
and to live there.
q don't know" replied Mr.. shonts. "A
man must be Just to his family
fought not Mr.. Wallace to have the
same considerations. asked Mr.. Morgan.
Mr.. shonts said he thought Mr.. Wallace
had the same right to consideration. and
called attention 10 The fact that he never
had criticised Wallaee's action
Mr.. Morgan and Mr.. Tallaferro inquired
a length concerning the concession to
the Union Oil company OF California to
lay pipe lines across the isthmas. Air.
Morgan wanted to know If Mr.. shonts
had ever heard that Mr.. Rockefeller
owned the Union Oil company. Mr..
Shonts said he knew nothing about it.
It was brought out again that the con-
cess!on was revocable at the will of the
President. and Furthermore that 1t was
exclusive.
Near the conclusion Of the DAY Mr.
Morgan asked concerning the dam at
Gatum that would have to be built under
the plan Of the minority OF the consult
ing engineers. Mr. Shonts said that he
was not engineer. but from a railroad
mans point of view and having faith
IN the engineers who declared the project
feasible. he would not hesitate TO recon-
mend the construction of such a dam
Mr.. Kittredge brought up the sale of
bonds OF the Panama Railroad company.
Mr.. Morgan asked whether Mr.. Obaldia
the Panamanian minister to the United
States, one of the directors Of the rail-
road, would be involved In. the event 1t
was decided that the payment of interest
on these bonds was declared an improper
payment by the government Mr. Shonts
thought that was a legal question.
Congestion Will Be Costly.
The congestion OF freight on the 18TH
mus and the controversy between the
Panama railroad and the Pacific Mail
Steamship company on that subject was
brought up by Senator Kittredge and Mr..
Shonts produced letter dated February
10 from Engineer Stevens, declaring that
at that time there was not a ton of ac-
cumulated freight ON the isthmus. lie
gave the records Of the arrivals and de-
partures of the Pacific mail steamers to
show that the canal authorities had not
delayed the steamship company, one OF
the same date, making directly opposite
statements. Mr. Shonts testified that on
account of the past conges ton of freight
on the isthn1us, there were pending suits
for damages amounting to $50 COO OO0 and
claims amounting to hundreds of thous-
ands of dollars He said there was no
doubt but that the congestion would cost
a lot of money lie declared, however.
that the problem was on3 that must and
will be worked out by the men on the
isthmus, and that no explanation could
correct On this point the members of
the committee agreed with Mr. Shonts
Mr.. Shonts concluded with an earnest
appeal to the committee to determine the
type of canal as soon as possible and
leglslate in suchN manner that the canal
commission may know what to do. He
said that Chief Engineer S;evens has been
accommodating his forces. If level
canal should be ordered he had too many
OF one character of men. and not enough
OF another, and that condition was true
also OF lock canal. said the witness.
lie declared that 1t was essential to eco
Monty to legislate without delay. He rec
onmended that Gen. Oswald s Ernst be
tlVited 10 SIT With the committee during
the determination Of the tyne of canal i,
order that any technical questions might
be arbltrated promptly and correctly
Adjourned until tomorrow.