Every evening, Wilmington daily commercial. (Wilmington, Del.) 1878-1928, 1906-01-08

Associated Press Dispatch by Special Wires.
Washington, Jan. s.-Tho letter Of
the Secretary Of War to the President
transmitting the annual reports of the
lathmian Canal Commission and the
president Of the Panama Railroad Co.
together with the reports, was received
by the two houses Of Congress today.
The report OF the Canal Commission
has been made public.
Secretary Taft, in his letter, advised
the President that there 10 to be a
majority and a minority report from
the Board OF Consulting EnQinoers as
to the type of,oanal to be recommended
Bnd that he expects soon to receive by
cable from Gen. Davis, chairman Of
the board, who will meet the foreign
members in Brussels tomorrow, a con-
hrmation Of the majority report. The
minority report 10 icing prepared, be
added, and he hopes that the whole
matter may be presented for sub
mission TO Congress by February LIST.
/ The Secretary took up the report Of
the president Of the railroad company
and discussed two transactions referred
to in the Teport-the issue OF bonds
and their repurohnee BY the company
and the market contract for feeding
employees on the Isthmus. OF these,
the Secretary said;
There are two transactions referred
to IN the report of the president of tho
railroad company Of which special
mention should be made. On Deoem-
heE let, at a time when the creditors
Of the railroad company we're urgent
in demanding the payment OF their
bills and when the railroad company
was not able 20 meet it, obllnaticns,
because the Canal Commission was
unable to pay the railroad company
what was due it. the president and
directors sold 62S $1,000 4l6 per cent
bonds, which had been in the treasury
Of the corporation ever since tho
United States acquired a controlling
interest in It's shares. Ine bonds had
been placed there BY the former
management, for the purpose Of using
them in order to improve the equiv
ment of the road. On November Sth
the directors authorized the exeou-
tive officers to issue the bonds, aud
after written invitation TO several
probable purchasers they we're sold on
, November 1lth 10 Mackey & Co. ,
bankers, the highest bidders One
. hundred and seyenty-hve thousand
dollars Of the purchase price we're
paid on November llth, though the
5 bonds we're not delivered until No.
1 yember 24th. The purchasers paid pal
and q premium Of o per cent for the
bonds.
f "The question of issuing the bonds
4 was not submitted 70 you or 10 me
T. before final action was taken by the
+, board of directors. The policy O.
r selling the bonds was a doubtful on'
:, and should not have been adopted
without governmental authority.
% have not the slightest doubt that thl
T. president and diractorH Of the oompan.
|. acted 10 entire good faith ia what the.
n did and. as they thought, for the hes
! interests OF the government; but, con
/. sidering the anomalous and peoulia
\ relations between the directors Of tn
company and the government, tn
bonds should not have been ISSUE
without your approval or mine
= Arrangements were subsequently mad
!. with the PURCHASERS by which th
bonds we're bought back at th
T, Interest to date Of repufchase froE
October lst.
The Secretary commented on th
: cancellation of j. Z. Markets. oontrac
l. for feeding employees Of the Canal Com
p mission and Of the railroad compan
): on the Isthmue. Mr. Taft said:
'The reason for the cancellation {
" the contract was that, In carrying on
B.; Mr.. Markets recommendations, Oh
!, railroad company, under Mr. Stevens
had been able to furnish food to II
10 employees and those of the commissio
r at a less price than that fixed in th
- contract. At a meeting of ths railroa
n directors on November Sth, Mr.. Mark'
presented bis claims fer his aotul
outlay, amounting to 50, 745. 81, an
also a claim for the value OF his tin
and services. The directors, at ii
instance Of Mr.. Shonts, voted to allo
Nj. Markell for his expenses On
+ services the sum of $40, 1857, and Il
money was paid at once.
+ "Ihis action was taken without coi
J sulting either you or me and was nl
J. brought to my attention until son
time after my return from Pauam
on November 10Th. Looked at from
70 purely and strictly legal standpoln
70 II the amendment OF the contract wit
d respect 10 the cancellation at the di
If OF etion Of the President we're to
9 strictly construed,a cancellation wou
X fContnued on ffth paoe1