The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-02-01
CLAIMS PANAM A
LINE MISMANACED
Steamship Official Tells Senate
Committee That Negligence
of Panama Railroad Man
agcment is Response
bic for Freight
Congestion"
tBy Associated Press.)

<s'-oHS'tisSNA
WASHINGTON. January 3i.--Robcrt p.
Sclwerln, general manager of the Pacific
Mail Steamship Company. was before the
Senate Committee on Interoccanic Canals
to-day. Regarding Secretary Tafts criti-
cisni OF the service between Panama and
San Francisco, for Its part In contribute
ing TO the congestion of freight at Pan
ann, he said: Secretary Tafts statement
was made either through malice, tending
to injurc an American industry, or
through ignorance OF the causes of the
difficulties of which he has complained -
Hc said that since the canal commission
took charge of the Panama Railway.
freight had accumulated on the wharves,
all commercial shipments having been
held up by the movement of canal mate
rialse and the difficulty, Mr.. Schwern
asserted. was due to "culpable negligence
OH the part of the managing officials of
the Panama Railroad and utter indif-
ference to their obligations as common
carrier" The equipment of the railroad,
he added, had deteriorated greatly during
the two years prior 10 the sale of the
property to the United States.
'.As SOON as control OF tie railroad
passed to the United States said Mr..
schwerip. "the conditions described be-
gan to grow worse. The railroad manage
.,rlent cut the wages OF men working on
the docks. which caused a strike and
our labor followed. AZ q resul; we are
both paying higher wages than We were
before for the poorest labor in the world.
IL was said by Secretary Taft. Mr.. Wal
,ace. Admiral Walker, the former chair
nan OF the commission, and others, that
commerce was secondary 10 the move
ment OF canal material. II was that in
difference that brougii. about the conges-
dom
Concession to Steel Trust.
Mr.. Schwer!n said he had resorted to
every means to bring about improved con
tlitions. even making n protest to the
State Department 10 induce 1t TO appeal
to Panama Mr.. Schwern complained
also that the Panama Railroad has arbi-
frarily 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. He said he was Informed that the
reduction was IL concession to the steel
trust, which had protested to Admiral
Walker the former chairman of the
canal commission. that the rates were
cheaper from Europe to Central America
than from New York to the same nor. g
Secretary Taft had then taken the mat
tcr UP. said Mr. Skipwith. and authorized
a reduction of the rates. He declared
there had been no money in the business
between San Francisco and Panama
He denied that the Pacific Mail has
any connections with trans-contineniai
railroad and declared that Secretary
pafts statement that his company had
put small steamers in the isthmian
trade In order to divert the better
steamers to the coffee trade, was "ab-
solutely false He said that saflings had
been missed because the Panama Rail-
road had held up the ships at the
isthmus.
MIR. Schwerin said the Tehuantepec
Railroad across Central America will be
completed by June 1st, and declared that
Will kill the American commerce which
now crosses the isthmus. He said that
it would put the Panama Railway and
the Pacific Mail Steamship Company's
Panama line out of business, as by the
new line there would be a reduction III
the time from San Francisco to New
York from thirty-four to twenty-six
days.