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filed a report in advance of having seen either of these reports, so I have no doubt that what he will have to say subsequently will be more in the nature of comment and much shorter than it would be if he had delayed action until the end. But he is very anxious to return to the Isthmus as soon as he completes that matter, and I was going to suggest to the committee that Mr. Stevens be first called, so that his testimony may be given in full before I am called, for I am here all the time--that is, I hope to be.

I would also like to state that Major Gallagher, who was the assistant purchasing agent of the Commission, has been detailed to go to Manila. He is a major in the commissary department, and for, I think, nearly all of the time of the existence of the original Commission under Admiral Walker--part of the time, certainly; indeed, down to to-day-he has had more or less to do with the purchasing of materials for the Commission. And in case the committee desires to go into the question of those purchases, as doubtless it does and ought to, he would be an important witness with reference to many of the purchases.

Senator MORGAN. When does he have to go?

Secretary Tart. He sails the 1st of February, so that he would have to leave here probably the latter part of January.

The CHAIRMAN. He is in the city now, is he not? He lives here?

Secretary Taft. He is in the city now. I saw him this morning, and told him that I thought the committee would probably need his services. I presume (though of course I have no means of knowing other than natural inference) that my examination may be with reference to a good deal that these gentlemen who have do the things may testify to, and therefore what I can say would come naturally after they have testified. Therefore, I would ask the committee to excuse me and take up the examination of these gentlemen, whose presence here is only temporary, and whose going will greatly benefit, the one the army service and the other the canal service.

The CHAIRMAN. In conversation with Mr. Stevens yesterday, Mr. Secretary, I understood from him that he was anxious to get away as soon as possible; so that arrangement has been made with him to appear before the committee on Tuesday next, and he is to appear here at that time--at 10.30 on Tuesday next.

Secretary TAFT. Very well, then.

The CHAIRMAN. That is the regular meeting of the committee, and he will be here at that time.

Secretary Tart. Yes, sir.

The CHAIRMAN. As to Major Gallagher we have not fixed any time, because I assumed that the testimony of Mr. Stevens would probably take some little time.

Secretary TAFT. Yes, sir.

The CHAIRMAN. But we can call on him later. I inferred from what you said yesterday that you would like to appear first and make the preliminary statement that you have now made.

Secretary Taft. Yes; I merely wanted to explain the general situation. Of course there are doubtless people now on the Isthmus whom the committee will desire to hear, and any communication sent to me will result in a cablegram direct to the Isthmus to have them come at once. You may ordinarily count on its taking about two weeks to get such persons here; not that it takes two weeks to come, but that that is the average, in connection with catching the steamer. The steamer comes once a week, and you ought to count on from ten days to two weeks in such cases.

The CHAIRMAN. Then, Mr. Secretary, I assume that there is no further reason for detaining you this morning?

Secretary Taft. Of course I am ready to answer any questions that may be asked.

The CHAIRMAN. Do you wish to ask the Secretary something this morning, Senator Morgan?

Senator MORGAN. No; I had no idea for what purpose Secretary Taft was being asked to come before the committee, and I have not yet, except to give us a general exposition or explanation of his views as to what would be and ought to be the policy of the Government, principally as to deciding upon the plan of the canal and its future operations.

Secretary Tatt. I have on my desk, Senator Morgan, if the committee would like to have it—though it is not, perhaps, fair to give it publicity because of the absence of revision---the majority report of the Commission, prepared by General Davis after the resolutions of the majority had been adopted. He says that a few substantive changes and many verbal changes have been made, but if it will assist the committee I will gather up those reports and send them up here. General Davis left nine copies with me, and I will be very glad to send them up, asking the committee, when the main report comes in, to destroy them, or at least to make such notes upon them that it will be understood that they are unrevised copies.

The CHAIRMAN. You would wish those to be kept strictly confidential, I suppose.

Secretary Taft. Yes, sir. I think it would hardly be fair to the majority to publish such a report as their report until they have had a chance to examine it and sign it. I did not know, however, but that an examination of this unrevised copy might afford an opportunity to the committee to do a little advance work, if they desire; because I of course assume that the range of this investigation will not only cover what has been done, but must necessarily cover the question of what ought to be done in the future.

Senator Knox. How soon will that report be revised?
Secretary TAFT. It will reach here-----

Senator Kyox. It will be revised in the light of the copy that is coming—is that the idea? This draft which you have now will be corrected by the copy that is coming! ?

Secretary Taft. Exactly; exactly; and that will reach here, I should think, about the 20th of this month.

The CHAIRMAN. Mr. Secretary, do you understand that Mr. Stevens will remain here until after that copy comes!

Secretary Tatt. He will not remain here until after it comes, unless the minority report is delayed until that time. But the gentlemen making up the minority report have had the benefit of this report. We have been pushing it as rapidly as we could, and it is quite possible that the minority report may be filed any day. Mr. Stevens has already made his comments on the majority report; and when the minority report is filed, as soon as he completes his comments on that he will go--unless, of course, detained by the committee.

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The CHAIRMAN. He seemed, in his conversation with me yesterday, very anxious to get away:

Secretary Tart. Yes; he is.

The CHAIRMAN. And I assume that Mr. Stevens's testimony here will be quite important and may take a little time.

Secretary Taft. Yes.
The CHAIRMAN. I should think so.

Secretary Taft. Yes; I should think it very likely. He has only been on the Isthmus since the 1st of July, but he has been exceedingly thorough and has decided views.

Senator GORMAN. Will there be any embarrassment, Mr. Secretary, or any impropriety, in your judgment, in having Mr. Stevens testify here and criticise both the majority and the minority reports prior to his official report to you and to the President?

Secretary Taft. Well, assuming that his statement would not be published, I do not think there would be any impropriety in it. I think it probably ought not to be given to the newspapers until after he has filed his regular report.

Senator GORMAN. It seems to me so.
Secretary Taft. I think that would be fair to him, and it is—

Senator GORMAN. Not only to him, but I had in mind the question whether it was exactly the treatment that ought to be accorded to the President under the circumstances.

Secretary Tatt. I am sure the President would waive any question of that sort and would be glad to have you look as fully as possible into his views.

Senator Morgan. I would suggest to the committee, as to any paper that Secretary Taft chooses to present to us under the circumstances he has signified, that we keep the matter entirely private in the committee. It is not for our personal information. We will not coinmunicate what he has said even to members of the Senate, because communications of that sort, received in the ordinary course, are not always considered as being entirely secret. I would suggest that whatever Secretary Taft chooses to submit to us in advance of the incoming of these reports should be regarded as matter entirely within the keeping of the committee--the committee secret, I will call it-until such time as he chooses to release us from that obligation; until such time as the report comes in.

Senator GORMAN. I doubt very much whether there ought to be more than one copy of that report here, so that there may be no question as to its being kept here.

Secretary Tart. It would be very much more convenient to me if I could limit what I send to one copy, because I would have to scrape up the others. There were only nine delivered; one went to the President, seven to the members of the Isthmian Canal Commission, and I have my own at home, which I shall be very glad to send to the chairman of the committee.

Senator MORGAN. It would be a great advantage, I should think, to have this opportunity for longer consideration before calling upon Mr. Stevens, because this is an emergent piece of work that we have to do, and we ought not to be required to do it in too great a hurry.

The CHAIRMAN. Well, Senators, is there anything other than what has been mentioned by the Secretary that you wish to talk with him about this morning? I anticipated that we would have a little longer

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session with the Secretary, but under the circumstances I presume it is better that we should not detain him, unless some of you wish to ask bim some questions.

Senator GORMAN. I do not know, Mr. Chairman, whether or not the Secretary has been preparing a bill for the government of the Canal Zone since the adjournment of the last session; but as such a measure must of course emanate from his Department, it strikes me that it might be wise, if he has not done so, to request him to draft it at an early day, so that as we go on with this matter we can consider it.

Secretary Taft. I should be very glad to do that, Senator. We are quite in need of such a measure, for questions constantly arise which need some kind of legislative action on the Zone. I had hoped that the consideration of the committee would be given to some act of that sort, with a view to relieving us from the constant doubt wbich arises as to what is executive and what is legislative action on the Zone. Of course we are limited altogether now to that kind of government that the President gave in California when there was no government. We simply exercise police power. That is all.

Senator KITTREDGE. How do you manage, Mr. Secretary, about the courts?

Secretary Taft. The courts simply sit right on. We have not done anything; we have just let the status quo continue. There did not seem to be anything else to do. They had been constituted properly when they were created and when they were appointed, and we have not done anything further.

The CHAIRMAN. Mr. Secretary, do I understand that Governor
Magoon expects to come here soon after the return of Mr. Stevens?

Secretary Taft. Yes, sir; I suppose they will pass each other on the way. I have telegraphed him to come, and he will arrive here probably the latter part of January, the last week in January.

Senator Knox. Are those courts working satisfactorily?
Secretary Taft. So far as I know.
Senator Knox. Do they have much business?
Secretary Taft. Not a great deal.

Senator Knox. They are principally occupied with criminal cases,
I presume?

Secretary Taft. It is chiefly criminal business and business that arises with reference to titles. As in all of those Spanish-governed countries that I have been familiar with, at least, titles are in a des per ate condition.

Senator Knox. You mean questions of titles as between individuals, do

you-not any question as to our title?
Secretary Tatt. Not any question as to our title to what we have a
title to; but there are a number of questions arising as to what lands
we do have a title to. The legal adviser of the Insular Bureau has been
engaged for weeks in going over the lands of the railroad company
and the lands of the Canal Commission with a view of establishing
proper boundaries. The Spanish surveys are always most unsatis-
factory.

Senator Knox. Who is the legal adviser of the Commission?
Secretary TAFT. Mr. Paul Charlton.
Senator Knox. Oh, yes--of Omaha?
Secretary Taft. Yes.

Senator Knox. I remember him.

Senator MORGAN. I suppose the question of title down there, so far as the Government is concerned, has reference to questions of condemnation.

Secretary Taft. Yes, sir; questions of use and condemnation. There are some claims which still remain unadjusted, made against the old canal company for trespass. They have a curious view of trespass under the Spanish law. Trespass seems to be an insult which involves exemplary damages. Bringing suits for trespass is a very profitable business.

Senator Knox. Were not those claims assumed or agreed to be paid by the New Panama Canal Company, the first company? Was there not a fund left with somebody to cover those claims?

Secretary TAFT. Yes.
Senator Kyox. I thought so.
Secretary Taft. But of course we have to litigate the question.
Senator Kxox. Of course you have to fight those claims out.
Secretary TAFT. Yes, sir.

Senator Kyox. But if they result in damages, they are to be paid not by the Government, but by the New Panama Canal Company?

Secretary TAFT. Yes, sir. The court consists of three judges, the chief justice, Señor Mutis Duran, who is one of the leading lawyers in Panama and the former governor of the province when it was under Colombian régime; Judge Gudger, who was for four years consulgeneral there and who speaks Spanish and is quite familiar with the Spanish law; and Judge Collins, formerly for two terms, I think, judge of the superior court in Illinois.

Senator Knox. Mr. Secretary, whatever became of the stock of the Panama Railroad? Is it still carried in the name of the counsel who bought it over, or has it been transferred?

Secretary TAFT. No, sir; it is carried in my name.
Senator Kyox. It is carried in your name?

Secretary Taft. Yes, sir; the President directed it to be put there on the books of the company.

Senator Kyox. When was that transfer made? About a year ago?

Secretary Tart. My impression is that it was last spring, but I can not tell the exact date.

Senator Kyox. Was it not shortly after you got the certificate! Secretary TAFT. Yes, it was immediately after I got the certificate. Senator Knox. That was a year ago last May or June, then! Secretary TAFT. Yes; I sent it over at once.

Senator MORGAN. Mr. Secretary, this little discussion leads my mind to this conception: Would it not be best for Congress to enact a law, a joint resolution, or something, or for the President, in the exercise of his present powers, to ordain, that any party in possession of land in the Zone might be considered as a sufficient representative of the title to be made a party defendant in the proceeding, with liberty to others to intervene for the protection of their interests if they choose to do so!

Secretary TAFT. I think, Senator, that in the Government act it might be well to make some such provision as that. It likens itself to the provision that we have had to make in the Philippine Islands on the same subject, with reference to the question of the statute of

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