The Montgomery advertiser., 1906-02-01
SECRETARY
 CRITICISED Scflwerin Answers State
 ments of Taft, BEFORE SENATE COMMITTEE
Manager of Pacific Mail Steam
 ship Company.
Says Taft's Declarations Were Made Either Through Malice or Through
 Iguerance of Causes of Dini- entities Complained Of.

Washington, Jan. 3f--Robert P. schwerin. General Manager ef the Paci- ic Mail Steamship Company was oc- fore the Senate Committee on Intet- oceanic Canals today. His attention was called to, q statement made by Soc retary Taft critfcizfng the sefSice be- tween Panama and San Francisco. for it's part in contributtng to the conges- tion of freight at Panama. In reply, he said: s
 Secretary Taft's statement was made either through malice tending to injure an American Industry. or through ig- norance of the causes of the difiiculties of which he has complained.
 Continuing. he said that the Pacific Mall Steamship Company operates nine regular steamers on the Pacific coast, which steamers sail on schedules ap- proved by Honduras. Mexico, Nicaragua and other countries whose ports are ea- tered. The schedules provide for con nections with the steamers of the Pah- anna Steamship Company from New York by means of the railroad across the isthmus The schedules require the company to make connections and exchange freight. said Mfr. Schwerin
 A description of the conditions on the isthmus since the Canal Commission took charge of the Panama Railway was given by Mir. Schwerin. He said that freight had accumulated on the wharves. all commercial shipments hav- ing been held up by the movement of canal materials and the difficulty. Mir Schwerin asserted. was due to ''culpa- b1e negligence on the part of the man aging officials. of the Panama Railroad and utter indifference to their obIiga- tions as a common carrier
 G0nanaerciaI Busfness secondary.
 Tt became the Understandings that the United states had bought the rail- road to build the canal and cared noth- ing for the commercial business across the 1sth1Ails. Commercial business vas >negieetaa and it was said by Secretary Taft NIT Wallace. Admiral Walker, the fornlef chaiflnaa 0f tho coninllssion. that cominerce was FeeondarH to the siiioVemeft of canal ma tef8aGl 4t was that indifference that brought about the congestion.
 We found it impossible to ssgregate fhe Shipments for particular loadings, all of which was due to the ineficiency of the officers of the Panama Railroad Company.
 MT. Schwerin said that lumber ships from New York were held up so long that there were bills for demurrage amounting to $1S,617 between August 1 and November 30, 1905 and the Pana- ma Railroad will have these to pay. He said that. the Pacific mail steamers were held up for longer periods and there was no way this company can enforce denturrage charges. He charg- ed that the railroad company had further delayed the Pacific Mail Steam ship Company's steamships by failure to furnish them with coal, as they are required to do under contract.
 Mir. schwerin said he had resorted to every means to bring about improved
 + fn the State Department. Mir. Schwerin complained also that the Panama Rail- road had arbitrarily reduced rates from New York to ports on the Pacific coast where the haul was divided between the Panama Steamship Company and the Pacific Mail.
 Concession to Steel Trust.
 He said he was informed that the reduction was a concession to the Hteel trust, which had protested to Admiral Walker that the rates were cheaper from Europe to Central Ameri- ca than from New York to the same ports Secretary Taft had then taken the matter up, said Mir. Sehwerin, and authorized a reduction in the rates.
 In the absence of a contract, he ad ded, the rate could not be lowered ex- cept by mutual consent and the adjust ment of the rates is still pending.
 It was denied by MT. Schwerin that his company has had monopoly on the Pacific coast and declared that there had been no money in the busi- ness between San Francisco and Pana- ma.
 Senator Knox asked MT. Schwerin if he had not smarted q little under the criticism of Secretary Taft, and if that feeling had not cropped out in his tes- timony. MT. Schwerin replied he had thought it too bad to be held up to rid icule and disgrace by q high official of the United States when every effort had been made to uphold the American flag in a busineEs which had almost heen driven of the seas.
 He denied to Senator Morgan that the Pacific Mail has any connections with a trans-continental railroad and declared that Secretary Taft's state ment that his company had put small steamers in the isthmus trade in order to divert the better steamers to the coffee trade was absolutely false,'