New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-15
FOOD CONTRACT STANDS.
MR. SHONTS SUSTAINED.
Panama Subsistence Apard 4p-
proved by the President.

UOLCO W ire fTcSlGGnT.
and subsistence concession IN the Panama Canal
gone awarded 70 Jacob T. Markell. Of Omaha.
Neh. by Theodore p. Shonts. president OF the
Panama Railroad Company. viii stand.
This. IN effect. is the decision OF President
Roosevelt who to-day approved a report on
the subject made 10 him by Mr.. Shonts. The
contract amounts. in the aggregate. many
millions Of dollars. but Nj Shonts's report in
d.cates that Il may be abrogated at the viii of
she government. which actually viii own the
permanent plant used by Mr.. Markell in filling
tre terms Of his contract
The President to-day authorized the publica-
sion OF a report he had received from Mr..
sronts rs president OF the Panama Railroad
Company. regarding the protest received by
hin from Hudgins & Dumas and H Bale. OF
New York. against the award Of the contract 70
NJ Market The report which AIr Shonts
Greeted by the President TO make when the
protest was referred 10 him. is a simple state
rlert OF the various steps taken and the rea-
sons which irapeiled Mr.. Shonts TO grant the
concession TO Mr. Markell.
The protest forwarded to the President by
Hu6s,rs < Dumas and H. Bale alleged that
they had not received fair treatment from
President Shonts. and that. through a leak IN
Mr. shouts's office. 0Ir. 8Iarkel had been IN
formed Of the nature OF their proposal and had
been enabled thereby TO incorporate in his bid
the menr which Hudgins & Dumas had sub
1n.tted
Nr. shorIss statement clears up these ale
cations 20 The satisfaction OF the President He
therefore has approved the report and no
further action concerning the protest viii prob
ably be taken.
NJ sHONTS REPLIES TO PROTESTS
Al. shonrs's statement to President Roosevelt
follows:
an 81 receipt Of Mr.. Loeb's letter referring 70
IeIegrarns and letters from Nessrs Hudgins d
Dumas and r. Bale 10 you concerning hotel anu
Es1 have already repor-ed 70 YOU. we found upon
ss 2' for c.s inie rrsngernents Tor feed
ing our employees. so much so that Governor Ma
Eoo-, Mr. stevens and myself gave ms ma tIeG
ground We decided that ny first dutv upon reJurn-
trg 70 The States would &c 10 arrange .oI ne sI<ii
ilg Of his privilege 10 the proper parties ano aLso
Tor ne p5aclns q rell-s sLA.I-E P-at1s 49,
ships, building colo storage ptal1ts az CoLo. 81
providing for refrigerator cars 70 transport reIr
Panama Raiiroad Il vas also determined that this
matter should De handled BY the Panama Rat4road
aaS not by me Isthraian Canal Commission, as the
cernInissaTy department was already II charge OF
rss s o6eTStt4s one hotel Al Coon
found Jacob E. Markell the isthmus when /
arrived there, he having gone down al the instance
OF NJ Wallace 10 study the situation and having
been detained by Governor Magoon few days 70
n was decided while on the tsthrnus that the rail-
T9se o9Pany saoe5a 5Sh t Eae aoud
tain the buildings and tns contractor MAINTAIN ne
recessa-y for the railroad 70 cancel the contract
eraI parchasng officer. M Ross and returned 70
me States, We Immediately began the preparation
81 such specifications as we thought necessary 20
enable Us properly 70 receive proposals for he
feeding privilege Before M Markell left the 18th
upon our return. and would Ike 10 have him make
tio gopo We later received eoraIn sncations from
9lessrs- EUdgtns & Dumas and Mr. Bale asking
"A 4 he
specifications were drafted We mailed 70 Dir. Mar
copy in he same form and invited proposals We
did not advertise. because il was railroad mat
yer and because OF the urgency OF ne case l
have had several cablegrans from Mr.. Stevens
since ny return asking ne 70 expedite the ar
r1nsernert. IS eZ-stlng conoltlons We're very had
After We had mailed the specifications 70 the
- - - 49,. ~ 60 ~ o,,,IS a
The specifications. but would be glad receive
speclhca9ions Our speciacatiors as prepared had
included a general menu Tor silver men and gold
men in order only 10 establish a standard, but
when Aessrs Hucg-ns and Dumas sJtend ed the con
ference referred 70 they suggested the insertion OF
weekly menu IA ne specl1caIions instead o. q
-nenU- When they brought 4 70 ne examined IL
81 zosS - tz - q isa--s ss g. 81 orr s S
s-f 80 s.iire he - an liz e ~ al do7,I5
fed OF amended specifications. and all sub
Tn,Fted proposals on that basis OF course there is
nothing original IN the but by inserting II IN
cur specification il satisfied Hudgtns & Dumas and
Bale a. well ourselves, and II pleased all par
les upon equality.
THE PROPOSALS COMPARED
Z was not until after this that the three pro
posals submitted. AL proposals We're made
T76en The proposals were received found that
srke1s -e ia some = i,eHs snd thaf HGd a az
Durnass we're SO much under either OF the others
their part 70 the meaning Of the specifications.
thereupor wrote them Z letter simplifying the
a;S-e sG e;r aJ1e5-io5 70 fya se
-aar tie privilege in regard 70 uncooksd food and
u our treaty agreements with the Republic OF
Panama on case local prices OF the Panama rer-
-1sSe ~ civ sres r1ehir line and ra5lrosd and also
c1r cold storage. were limited absolutely 70 food
80 e = ,11-&-9Ti-v se TheT I'D not understand
he spec. acs ions 20 amend their proposal.
They Immediately amended their proposal rails
ing Their prfces on some items over 80 per cent
ara whe, -bev troUgfIt the amended proposal 70
ny Office hey thanked for having given them
ne additional information aad for calling attention
Loeg had not thoroughly understood the SITUATION
e-ore ano hao made Their prices on c2ohea ile :
-e sac q otaer goods s-uluI aneously win VIII
- ms tetler referred 70 70 audglas D5LlaS
wrote exactly the same Letter 70 M MarheI 50
"a = le zsd laDored unoer any nlisapt 3i -
rs a-AC could amend MS proposal! Ar AIaiFAsI -
I--el tlat, having a thorough knowleege OF L .tle
matters IN making his proposal and stated he stood
Ear" on same. ! did not write Mr.. Bale because
MS prices were 50 high that It was not necessary
~ longer consiCer him II the matter.
MARKETS. OFFER THE BEST
When these amended proposals were received II
was found that ~ every item but one Mr.. Markell
vas either as Low as or lower than Messrs Hudglns
In making the award : took into consideration
GERS and the organization Tor the business that
Iney now have. I found that Messrs. Hqdgins q
clpt three years contract Ellis Island pure
~ local proposition that NJ Markell mas had thirty
years experience II this ii field OF operating
Tnlon Pacific. Illinois Central. Chicago. Burlington
end quincy. Kansas City Southern and other roads.