Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-02-11
CONTRACT FOR CANh
EXPLANATION MADE TO foUsz
COMMERCE coMMIryEE.

Secretary Taft, Chairman Shonts Of the
isthmian canal commission and R. r. Rog-
ers, general counsel for the commission,
appeared before the House committee on
interstate and foreign commerce today to
explain the proposed canal contract and the
plan to merge the Panama Railway Com
pany's management with the canal COM
mission.
Mr. Rogers explained that the chief pur-
pose of the contract is to permit the gov
eminent to avail itself of the practical ex-
perience and efficient labor organizations Of
an association Of contractors. The percent
age to be paid the contractor Is to be only
on the cost Of labor. and not on supplies
and equipment, which are to be supplied by
the government.
In discussing cement Mr.. Rogers said
there had been an investigation OF stone on
the isthmus thought desirable for cement
and that it might be decided later to have the
contractors manufacture cement on the
canal zone. The contract Is SO worded that
the cement may be obtained In whatever
way the commission may deem best
Small hand tools are the only supplies
which the contractors will supply under the
contract.
In response to inquiries from members of
the committee. Mr.. Rogers and Secretary
Tart both stated that the eight-horr law
would apply on the isthmus under the pro-
posed contract.
When Mr. Rogers was asked what the
total amount probably would be upon which
the contractor would receive percentage he
said he had not made any estimate and that
so far as he knew no careful estimate had
been made by any contractor.
Control Of the Railway.
Secretary Taft made a statement about the
Panama railway, in which he explained that
1t Is controlled absolutely by the govern
ment The directors are named with the un-
Outstanding that they shall vote as the gov
eminent desires, and Mr.. Taft said any
director would be removed at once for fail
ure to vote as Instructed. He said he de-
sired to be heard at length before any steps
are taken to change the administration OF
the railways affairs.
Secretary Taft stated positively that he
was in favor of the proposed contract as 1t
now stands. He said he believed that with
the highest class of contractors in charge
the work can be done more rapidly under a
contract than by the government.
Secretary Taft and Representative Mann
of Illinois had an animated discussion as to
how experts have been selected for work
on the canal. Mr.. Mann said he knew COM
petent men who had applied for positions,
but had been completely ignored by the
commission.
Mr.. Taft said applications are not ignored
and the greatest care is exercised in making
a choice of employees.
Mr.. Shonts explained that the chief en-
glneer and three experts pass on applicants,
and he and Secretary Taft requested Mr.
Mann to furnish the names of men who
have been ignored, that their cases may be
Investigated.
Secretary Taft said the chief reason for
running the Panama railway as it is rur
at present Is the convenience of admins
tratlon.
sentative Ryan of New York Mr.. Shonts
explained rate troubles involving rebates
which the Panama railway steamers en-
countered in the Colon trade. He said the
Atlas line appointed big shippers in Colon
as agents. and gave them heavy commits
sions which amounted to rebates.
Rivals Brought to Terms.
When Mr. shonts discovered that the rail-
way steamers were losing freight through
this rebating he advised his competitors
that If the commissions were continued he
would make fiat rate of 81 a ton on
freight from Colon up. This was done, he
said. because the government could not en-
gage in rebating. The results were excel
lent. as the competitors promised to do
away with commissions and compete
fairly with the Panama railway steamers.
Responding to inquiries as to the relations
between the canal commission and Panama
railway and the Pacific Mail Steamship
Company. Mr.. Shonts said the relations at
present are amicable and harmonious and
the complaints Of friction have been few
of late.
Secretary Taft expressed the opinion that
the annual payments to the contractor un-
der the proposed contract would probably
be about $4OOO 600 He said that the total
amount upon which the contractor would
be paid a percentage Is estimated at from
$50 600 600 to $70O0OO0O.
Mr.. Taft said that his understanding Of
the contract and the present law is that
they would not prevent the successful con-
tractor from employing Chinese labor on
the isthmus.