The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1906-01-08
SEGRE AIRY TA GIVES
MIR. SHONTS AGALlNG
PRESIDENT or CANAL coMMls!
SION ovERsTEPRED BOUNDS
OF ms KuTHoRiIN
DIRECTORS OF PANAMA RAIL
ROAD COMPANY ALSO CO.
a SLIGHT TOUCHING uR
LETTER MADE PUBLIC TODAY
THROWS SOME LIGHT ON All
INTERESTING SUBJECT.


THROWS SOME LIGHT ON Az
INTERESTING SUBJECT.
WASHINGTON Jan. S.-secretary
LOT War Taft recently felt constrained
to administer a rather severe rebake
to Chairman shonts, Of the Isthmtan
Canal Commission, and the govern
ment officials who are directors q the
Panama Railroad company. This
fact came to light today in the pub
LEGATION Of the secretary's letter =
which he transmitted to President
Roosevelt the reports Of the comnt
sion and of MI. shonts, as president
of the railroad company:
manner in which two particular tan
actions were conduot that did not
meet with the secretary approval
and the letter shows that he told MI
shonts so very plainly One the
selling Of bonds by the railroad com
pany. 1t seems because the commits
sion was unable to meet its obiiga
Itlons to the railroad, the directors Of
the latter decided to sell s2sione thou
sand dollar bonds. This they did
without consulting either secrstary
taft CT President Roosevelt
THE policy Of selling bonds was
doubtful one,g says the aecrea
and should not have been adbptei
until after conference with highef
governmental authority
%Wael this action Of the railroad
directors was learne, the secretary
at once, BY direction . dent
Roosevelt, instructed Mr. shont Is
president Of the railroad company
%repurchase the bonds. This VA Zone
The Secretary adds: dThe executive
officers Of the railroad company have
been advised Of their error and her
after questions of this character
not be acted upon finally by the corn
mission or the directors Il lie rails
road company until after conference
with the proper authorities
The other transaction was III on
nection with the cancellation q he
commissary contract which had been
awarded to ]. b. Markell, Of Omaha.
The reason for the cancellations 81 he
contract was that in carrying out ee
tain recommendations made W n.
Markell, the railroad company Ind
been able to furnish food to EN-
ployes and for those Of the commits
sion at a less price than that tx 6
the contract. After the cancellation
Markell presented a claim for he 4
tual outlay he had made IN preparin
Ito carry out the contract and alsoa
claim for the value Of his time and
services, The directors Of the ian.
road company, %At the instance .
Mr.. shonts says the Secretary
voted to allow to Markell
and the money was paid at once! This
action, also, was taken without con
sulting either the Secretary q W
or President Roosevelt.
In reply to my criticism and disap
proyal in these Two cases continents
the secreta .the president
railroad company tMr. shontsI has
answered that the course taken Mas
plainly within the corporate powers
ot the directors and was supported
advice Of counsel. thlnk. however
that these were5issues Of such lmpe
ance and doubt that they should Inv
Ibeen submitted to you OF . me 4
your representative, for approval
have so advised the president aud
rectors of the company Ii order
prevent q departure from tits
pie In future.
M, Taft adds that after apeFonat
Investigation 81 the Markell mai
rs convinced that the claim allowed
blythe railroad company meort
ohs and moderate BIS only obiec'
aon lay IN that he directors
InILN tie. lelalN.- r. 1911