The Montgomery advertiser., 1906-03-07

dent spoke to me about that and told him on account of my large holdings l did not want to give up .he presi- dency. | talked with the President more frankly than I am talking with you. did not want to embarass hin- He said he thought there would De no objection to my holding the place If served without salary: that was merely the nominal president.
 "Then you do not know what your intentions areT' asked MT. Taliaferro.
 "The President will tell me what he wants me to do, I suppose, replied Mir. shontS
 TranscontInental Lines.
 Tn response to number of questions Mr. shonts said that he was now ne- gotiating to get rid of his interests In the Glover Leaf but that he did not know how these would terminate.
 Mr. Taiiaferro attempted to show that all the officials named had inti- mate relations, with trans-continental lines Mir. Ehonts said that the Glover Leaf was in no way associated with rans-continental lines but that the other roads mentioned might be re- garded as related to trans-continentals, although they would not be so con nected fin railroad parlance."
 In referring to communications with officials on tho isthmus. MT. Shonts spoke of cable charges. Do you not think the government should have its own catse between. the nearest points of the canal zone and the United states?" asked MT. Morgan.
 T do, and have repeatedly recom- mended it," said Mir. Shonts.
 The committee tock ] recess until 2I5 o'clock.
 At the afternoon session. Senator Morgan took up the subject of MT. shonts's conversation with President Roosevelt concerning his services with the Clover Leaf Route Mir. Shonts said the President told him the subject of his dual role had been brought up and that it might prove embarrassing to the administration. The President had asked him what he was doing con- corning his holdings of railroad inter ests, and Mr. Shonts said he replied that he would Dispose of his holdings if he had an opportunity to do without sacrifice.
 In this connection Mir. Shonts made it clear that the question of disposinE of his railroad holdings had not been considered seriously in that interview.
 'If the President asked you to re- sign the presidency of the Glover Leaf and sell your holdings, would you feel free to resign your commissionerShipg asked Mir Morgan.
 T never had it presented to me in that way" said the witness
 "As long as the President wants me to stay and his agreements with me are carried out, l think I should re- main in the employ of the government
 He explained that by "agreements" he meant that the President had prom ised free hand in carrying out his policies and his sympathy and support in administrative matters connected with canal matters.
 Where Did Cromwell Get ii.
 Mir. Morgan then referred to a letter from former Chief Engineer Wallace to MT. Shon s marked Personal and con- fidential" which was put into the record by. Mir. Cromwell and desired to know how Mir Cromwell. gained possession of the letter. Mir. Shonts could not say. but be believed he had filed copies of the letter with the canal commission tho Panama Railroad and with secre-
 In that letter air. Wallace said that ] he feared Secretary Taft had misun- | derstood his reasons for wishing to re- | tire and he told Mir. sfonts that he l (Wallace) had a duty to his family to | consider and that a bushes proposi- | tion had been opened up to him which | he could not afford to reject l MT. Morgan asked the witness what | | he must move to the Itshmus and live 1 there and to take the members of his i family and compel them to live there. q don't know" replied Mir. Shonts. "A man must be just to his family" | ought not MT. Wallace to have the same consideration" asked Mir. Nor | gan.
 | lace had the same right to considera- l tion and called attention to the fact that he never had criticized Wallace's | action.
 Mira. Morgan and Mir. Taliaferro in- | culred at length concerning the con | cession to the Union oil Company of | California to lay pipe lines across the Isthmus. Mir. Morgan wanted to know | If Mr. Shonts had ever heard that MT. | Rockefeller owned the Union oil Com pany. MT. shonts said he knew onth- l ing about 1t.
 1t was brought out again that the ] conc ession was revocable at the will 0i the President and furthermore that it i was exclusive
 The Dam ut Gatun. Near the conclusion of the day Mir | Morgan asked concerning the dam al | Gatun that would have to be built un. ] der the plan of the minority of thu consulting engineers.
 | MT. Shonts said that he was not ar engineer but from railroads mar point of view and having faith In thu engineers who declared the projec feasible he would not hesitate to re commend the construction of such | dam.
 Mir. Kittredge brought up the sal of bonds of the Panama railroad com pany. MT Morgan asked whether MT Obaldin, the Panamaian minister to tn United States. one of the directors O the railroad. would be involved in thu event 1t was decided that the paymen of interest on these bonds was declared an improper payment by the govern ment MT, Shonts thought that was { legal question.
 The congestion of freight on tho IsInmus and the controversy between the Panama Railroad and the Pacific Mail Steamship Company on that sub ject was brought up by Senator Kit tredge, and MT. Shonts produced let ter. dated February 15, from Chief En' gineer Stevens declaring that at thai time there was not ton or accounts lated freight on the Isthmus He gave l the records of the arrivals and depar- lures of the Pacific Mail steamers to show that the canal authorities had noi delayed the steamship company, one ol
 inc same date making directly oppo-
 site statements
 Mir shonts testified that on account
 of the mast accumulation of freight on
 tbe isthmus there were pending suits
 for damage amounting to $20,00O,00O
 and claims amounting to hundreds Of
 thousands of dollars. He said there
 was no doubt but that the congestion
 would cost lot of money. He de- clared. however. that the problem was one that must and will be worked out by the men on the isthmus. On thla point the members off the committed | agreed with Mir Shont-
 l AAr shnnta cnnclndad with an aarneal