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tendent, and I think Mr. Stevens testified that he said the job was too big for him, and he was quickly relieved-and Mr. Bierd, the acting superintendent, went in; and I do not see that we are getting very much more relief under Mr. Bierd than we were under Mr. Prescoti.

Senator DRYDEX. But I bad reference to the men who were there when the road was operated before it came into the possession of the Government.

Mr. SCHWERIN. Yes, sir; practically an entire change has taken place, with the exception that Mr. Hunt, who was the man down on the dock, under Captain Bierce, has been made terminal agent at Panama.

Senator DRYDEN. Do you know whether these men who took these positions were experienced railroad men before they took them?

Mr. SCHWERIN. I do not know anything about that, sir. Now, in the period as to which I believe Mr. Shonts and the Secretary gave testimony in relation to the glut of tonnage at Ancon, which was from May to September, 1905, it may be interesting to note that in May there was 7,824 tons brought to Colon, and we took away from Ancon 9,561 tons. In June there was brought to Colon 8,389 tons, and we took away 7,330 tons. In July there was brought to Colon 5,986 tons, and we took away 8,134 tons. In August there was 6,48+ tons brought to Colon, and we took away 6,666 tons. That was in the height of the bubonic plague period. Now during that period there was not anything that we did not do to help out the Panama Railroad in the situation on the Isthmus. We got our State Department to appeal to the Central American governments to let our ships go on. We got our ministers throughout Central America to work; the entire time tending to relieve the Isthmus of any congestion that might take place there.

Senator DRYDEN. You,claim that any fault or blame for this congestion does not lie at your door?

Mr. SCHWERIN. Yes, sir; and if our ships are hung up until they lose their schedules so that we can not run on them, we can not manufacture a ship to perform that schedule, which requires nine steamers to do it. All we can do is to get an extra steamer in there from time to time as quickly as we possibly can to help the situation.

Senator ANKENY. May I ask a question?
The ACTING CHAIRMAN. Surely.

Senator ANKENY. That contract you had with the railroad company for coal is still in existence?

Mr. SCHWERIN. Yes, sir.
Senator ANKENY. What coal do they furnish?

Mr. Schwerin. They are supposed to furnish us with Pocahontas coal.

Senator ANKENY. That is an eastern coal ?
Mr. SCHWERIN. A Norfolk and Western coal.
Senator ANKENY. Where do they get it?

Mr. SCHWERIN. The last contract they bad was--I am not familiar with the contracts, but, as I remember, they made a contract with(Mr. Schwerin paused.).

Senator ANKENY. It is not important.

Mr. SCHWERIN. I think perhaps you know him; he is one of the brothers who are prominent directors in the Santa Fe Company.

Senator Knox. Berwind?

Mr. SCHWERIN. Berwind Brothers.
Senator ANKENY. And you take it at the mines, do you!

Mr. SCHWERIN. No, sir; we take it and deliver it into our lighters at Ancon. Their contractor delivers the coal to them, as I understand it, at Panama; and then they transport it across the Isthmus and dump it into our lighters.

The ACTING CHAIRMAN. You mean Colon?

Mr. SCHWERIN. At Ancon. They have a delivery to them in vessels at Colon.

The ACTING CHAIRMAN. Yes.

Mr. SCHWERIN. Then they transport it across the Isthmus and deliver it in our lighters at Ancon.

Senator ANKENY. What do you pay them for that coal under that contract?

Mr. SCHWERIN. We pay $7.50 now.
Senator ANKENY. Thank you. I only asked that for information.

Mr. SCHWERIN. Yes, sir; we paid them $8, and then the price of coal was reduced, and then they reduced the price to $7.50.

The ActiNG CHAIRMAN. How does the commercial business during the period of the bubonic plague compare with the commercial business at other times?

Mr. SCHWERIN. It is impossible to stop the tonnage moving. For instance, there might be ships afloat from Europe bound for the Isthmus and from San Francisco and New York, and if there is a case of bubonic plague reported that tonnage has all got to arrive there before any more tonnage can be stopped. You can not stop that tonnage, but you can stop any subsequent tonnage after the notice has been given out that there is bubonic plague at the Isthmus.

The Acting CHAIRMAN. And in fact the commercial business moves steadily throughout that plague period?

Mr. SCHWERIN. It would seem so from these statements.

Senator DRYDEN. Have you increased or in any way changed the rates for commercial freight over your line since the Government became the owner of the railroad?

Mr. SCHWERIN. No, sir; we have reduced them.
Senator DRYDEN. You have reduced them?

Mr. SCHWERIN. That is, the Panama Railroad Company practically arbitrarily reduced them. They cbanged the method of classification of freight from New York to Mexico, and I figured out that if we handled the same amount of tonnage in 1906 that we handled in 1905 it would be a reduction of our earnings of thirty-odd thousand dollars. That was done practically without any consultation or acquiescence on our part to meet, as I understand, the demand of the steel trust.

Then, again, this year, in the coffee contracts for Europe, these European companies were insistent that a rebate of 10 per cent should be paid to the coffee planters, and we fought it. The Panama Railroad Company said that they would not participate in any rebates for the reason that they were a government institution, and it was inimical to government interests. We were placed in the position that if we did not come in and accept the 10 per cent rebate the Hamburg-American Packet Company would send a fleet of steamers out on the west coast of Central America and handle the coffee, and of course the Panama Railroad Company would take it, and we would be shut out of the business. We were forced to accept our pro rata of the 10 per cent commission. That will cost us in the neighborhood of thirty-odd thousand

dollars.

So that these reductions on this year's business will be, I think, altogether between sixty and seventy thousand dollars.

Senator ANKENY. Mr. Chairman, would it be in order to make that freight schedule a part of our record? I would like to have it.

The ACTING CHAIRMAN. It would if it is the desire of any member of the committee.

Senator ANKENY. I would like to have it.

(By direction of the committee the schedule referred to was made part of the record, and the same is as follows:)

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