The Washington times., 1906-03-06
Closely Questioned on
the Canal Deal by Sew
eral Senators.
Witness on Stand States That
He Consulted With Presi-
dent on the Matter.

Senator IaIiaferro led Theodore P.
Shonts ov-- the conditions leading Up
TO the awarding Of the Markell feeding
concessions and his report TO President
Roosevelt on the award when the SEN
ate Comr ittee on 1nterOceanic Canals
convened 7day.
The Senator asked the witness TO ex-
plain why ne had reported to the Presi-
dent that with one exception the Markei
bid was considered the lowest. when
the records of The various bids show
that the bid made by Hudgins & Dumas
was lower in several items than the bid
upon which the concession was made.
Chairman Shonts said that when he
made the reDort TO the President it was
based on the general average or al
least that was the intention he, had IN
mind at the time
Did you not make thorough digest
of the bids submittedZ'' asked Mr. Tai
iaferro. Was it not your duty to clear
J. determine which of the bids was
the lowest?''
1T was my duty" answered the wit
ness and I reported 10 the President
that even il it should develop that the
bid OF Markell was higher that I thought
( the Government could we'll afford to pay
. Tor the knowledge the successful Bid
E
Alleged Irregular Deal.
Senator TaIiafer-o submitted a com
munication from Hudgias s. Dumas 10
President Roosevelt at oyster Bay last
September. wherein the bidders protest
ed against the contamination Of what
they termed an irregular deal shonts
admitted that the President, called his
attention 10 the report.
Mr. TaEaferro coutendea that the
explanation made by the witness 10 tie
| President regarding the insertion OF
| a thirty-dsy cancellation clause was
made on a groundIess assumption or
on an erroneous Interpretation Of the
| technical terms of the law The Wit
ness said that he still understood thst
| the clause inserted was couched ia
such language as to give the canal
/ commissioners the power TO cancel the
contract if 1t did not work to the IL
terest Of the Government.
Mr. Taliaferro advised him that il
was only applicable il the contractor
failed TO live up TO the agreement Of
the concession.
The witness then gave a fun explana-
ton Of the awarding OF the contract.
and said that after the contract haa
been awarded he invited the other
bidders to call al the office Of the Pa
mama Railroad Company in New York
to examine the bid OF Mr.. Market. II
they chose The bidders availed them
selves of this opportunity. and as he
understood their expressions, they
agreed that Mr.. Markell was the lowest
bidder, taking everything into consid-
Grafton.
Glover Leaf Railroad.
Senator Taliaferro then took I'D the
examination of the witness along the
Of Ea xr-fff
Lear railroad as its president, and
asked Mr.. Shonts If he intended TO
maintain such relationships with that
railroad
THAT depends upon conditions, said
the witness.
ssThe President and I have talked this
matter over He understands my posi-
| tion. l explained to Kim that i could
protect my large holdings in the Clover
Leaf better by remaining as it's prssi-
dent than otherwise. It's now mere
question of salary, upon which there
awaits a decision, answered Mr.
Can you state to this committee
what your intentions in this matter
are?' asked the Senator
We are negotiating now; 1 can I say
what the results will be- replied MI
Shonts.
In selecting your assistants you
which are in the transconttnental lines,
did you not?" was asked the witness.
Mr.. Ross was connected with the
Illinois Central. ! am interested in the
Glover Leaf. These roads are not in
cIuded in transcontinental lines said
Mr. ShOnts.
Senators Kittredge and Morgan shen
questioned the witness as to the area
of the lines of these roads. They re-
vealed from the witness that the IlH-
nois Central reached west 20 Omaha.
Neb., and there made connection with
lines reaching farther West.
Markell Contract Again.
Mr. Kittredge then took up the
Markell contract again. and asked with
whom he consulted, and why the con
tract was made with the Panama Rail
road Company instead Of the Isthmian
Canal Commission. The transaction of
the Markell expense itenl,' paid by this
Government, was touched. The wit
ness said that he had conferred with
that as the railroad company had been
conducting the commtssary business
on tt ? isthmus they concluded to place
the contract with Markell under that
branch Of the canal.
At this juncture the committee took
recess until 215 this afternoon. al
! which time Mr.. Shonts again appeared
on the stand.
1t had been agreed upon by the COM
mittee that Mr.. Shonts would be ques-
toned as to the type of the canal the
changes he would recommend 10 be
made in the administration of the af-
fairs, both i'm Washington and on the
isthnus and that all questions foreign
to the construction of the canal would
be deferred until a later date. When
the committee met, however. noT.e Of
he members present indicated Hesira
10 go in.o the type question. The COM