The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-09-15
SHONTS EXPLAINS.
Tells How and Why Panama Hotel
Contract Was Awarded.

Oyster Bay L. l., Sept. ia con-
tract for the hotel and subsistence con-
cession on the Panama canal zone,
awarded to Jacob E. Markell, of Omaha,
Neb., by President Theodore P. Shonts.
of the Panama Railroad company, will
stand.
This, in effect, is the decision of Pres
ldent Roosevelt, who approved g. report
on the subject made to him by Mr..
Shonts. The contract amounts in the
aggregate to many millions of dollars,
but Mr.. Shonts' report indicates that it
may be abrogated at the will of the
government, which actually will own
the permanent plant used by Mr.. Mar
KEEL in filling the terms of his contract
The president authorized the publica-
ton of a report he had received from
Mr.. Shonts as president of the Panama
Railroad company, regarding the pro-
test recently received by him from
Hudgins & Dumas and H. Balfe, of
New York, against the award of the
contract to Mr.. Markell ~ .ss-I
The protest forwarded to the presi-
dent by Hodgens 81 Dumas and H.
Balfe alleged that they had not been ac-
corded fair treatment by President
Shonts and that, through a leak in Mr.
Shonts' office Mr.. Markell had been in
formed of the nature of their proposal
and had been enabled thereby to in
corporate in his bid the menu which
Hodgins & Dumas had submitted.
Shonts says that on his arrival at the
isthmus on July &c he found a most
pressing necessity for immediate ar
engagements for feeding the employees
and that it was determined by Cover
nor Magoon, Mr.. Stevens and Himself
that this matter should be handled by
the Panama railroad, and not by the
isthmian canal commission, as the COM
missary department was already in
charge of the railroad company and
one hotel at Colon. Continuing, he says:
81 found Jacob E. Markell on the
isthmus, he having gone down at the
instance of Mr.. Wallace to study the
situation. 1t was decided while on the
isthmus that the railroad company
should furnish the plant, including the
buildings and equipment; that it
should maintain the buildings and the
contractor maintain the equipment, so
that in the event of it becoming nee
essary for the railroad to cancel the
contract we could control the entire
plant. When our general purchasing
officer, Mr.. Ross, and returned to the
states we imme diately began the
preparation of such specifications as
we thought necessary to enable us to
properly receive proposals for the
feeding privilege. Before Mr.. Markell
left the isthmus we had told him we
expected to take this step upon our
return, and would like to have him
make proposal when we got ready to
submit specifications. We later re-
ceived communications from Messrs.
Hudgins & Dumas and Mr.. Balfe, ask
ing for opportunity to make pro-
posals.
Gas soon as the specifications were
drafted we mailed to Mr.. Markell, to
Hudgins & Dumas, and to Mr.. Balfe
each a copy of the same form and in
vited proposals. We did not adver-
tise, because it was a railroad matter,
and because of the urgency of the
case. have had several cablegrams
from Mr.. Stevens since my return,
asking me to expedite the arrange
ment, as existing conditions were very
| bad.
Not Hotel Man.
after we had mailed the specifica-
| tions to the firms named / came to
New York and met all these parties.
/ explained to them that I was not a
hotel man; that we had done the best
we could as to the specifications but
would be glad to receive any sugges-
lions from them as to the form of the
prepared, had included a general
menu for silver men and gold men, in
order only to establish a standard,
but when .Messrs. Hudgins & Dumas
attended the conferences referred to
| they suggested the insertion of a
weekly menu in the specifications in
stead of a general one. I asked them
for a form of weekly menu. When
| they brought it to me examined it,
and. considering it an excellent sug-
! gestion, I asked Mr.. Ross to have it
inserted as part of our specifications
] applicable to all alike, SO that all
could make proposals on the same
basis. All were notified of our amend
| ed specifications and all submitted
! proposals on that basis. OF course,
there is nothing original in the menu,
| but by inserting it in our specifica-
lions it satisfied Hudgins & Dumas and
Balfe as well as ourselves, and it
placed all parties upon an equality.
TT was not until after this that the
three proposals were submitted All
proposals were made upon precisely
/ the same form of specification. When
the proposals were received. found
that Mr.. Balfe's was so per cent high