Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-03-07
SHONTS ON THESTAND
Chairman Of Canal Commission Before
Senate Committee All Day,
TELLS MORE or THE MARkel CONTRACT
Other Bidders Higher After They Changed
Their Figures,
RIGHT TO CANCEL CONTRACT EXISTED
Witness, However, is Unable to Find Clause
in instrument,
IGHT TO CANCEL CONTRACT EXISTED
TALKS OF RELATION TO RAILWAY
Leaves Inference that He VIII Dispose
of Glover Leaf Holdings IL
President Requests Him
to DO So.

| commission, under examination all day
| by the senate committee. answered ques-
tions technical and personal concerning
the plans for the construction of the great
waterway and his relations to the organi-
zation. incidentally he left the inference
that he would gladly sever his connection
| with the Clover Leaf route II this was
| demanded of him, but that he would not
| take his family to the isthmus. He gave
! former Chief Engineer Wallace a good
record and said that he was entitled to
! consideration in the matter of taking his
! family to the isthmus Mr.. Shonts closed
! by urging congress TO take action imme-
dately on the style of canal to be con-
| structed.
Markell Contracts Taken Up.
| Theodore Z. Shonts chairman of the
| Isthmian Canal commission, today resumed
his testimony before the senate committee
| on interoceanic anals. Senator Taliaferro
had read the protest of Hudgins 4 Dumas
| of New York to President Roosevelt against
| the manner in which the commissary con-
cession had been granted TO Jacob K. Mar
kel of Omaha, and urging its discontinue
ance on the ground that 1t had been en-
tered irregulary. The New York firm
said the proceedings In connection with the
letting of the contract were irregular. in
timating collusion and a predisposition to
award it to Markell.
Mr.. Shonts said the president had re-
| ferred this protest to him, and he read the
reply he had made to the president. These
documents were made public at the time
The change Hudgins & Dumas made In
their bids after certain conditions had been
| called to their attention, said Mr. Shonts,
made their bids higher than that of Mi.
Markell Referring to Mr.. Shonts reply to
| the president, wherein 1t was stated that
the commission had the right to cancel the
Markell contract upon giving thirty days
notice, Mr. Taliaferro asked Mr.. Shonts 10
point out In the contract the right of can
collation.. Mr.. Taliaferro showed that at
the time the contract was let there was no
way in which the contract could be can
oeled long as the concessionaire uvesl
up to the terms of the concession.
Right of Cancellation.
| The witness was examined at length con-
cerning the differences between the Markell
| and Hudgins & Dumas bids.
Reverting again to the Markell contract
Mr.. Shonts said he understood the right
of cancellation, as he had stated in his
letter to the president. but that he had not
analyzed from legal point view.
WAS it not your duty to do so?" asked
| Mr.. Taliaferro.
81 suppose it was. but I then understood
It as / said before" replied Mr. Shonts.
Personally, however. I had little to do
with preparing the contract. That was
done by Mr. Ross"
DO you intend to continue your connec-
ton president of the Clover Leaf?'
asked Mr.. Taliaferro
THAT depends" replied the witness.
"On what?"
We'll" said the witness the president
spoke to me about that and told him that
on account of my large holdings did not
want to give up the presidency l talked
with President Roosevelt more frankly
than am talking with you. did not want
TO embarrass him. He said he thought
there would be no objection to my holding
the place II / served without salary; that
Is. II was merely the nominal president"
''Then you do not know what your in
tentions are?" asked Mr.. Taliaferro.
"'rhe president will tell me what he
wants me to do, 1 suppose" replied Mr..
Shonts.
In response TO a number or questions Mr
Shonts said that he was now negotiating
to get rid of his interests IN the Glover
Leaf but that he did not know how these
would terminate
other Railroad Men Employed.
Mr.. raliaferro asked Nj. shontz for
names OF employees and their railroad CON
nections The witness mentioned himself
as being connected with the Glover Leaf
route, Purchasing Agent Ross with the hi
nois Central, Auditor Benson with the
, Southern Pacific and Chief Engineer Stew
ems with the Chicago, Rock Island a IA
cHc
Mr.. Taliaferro attempted to show that all
OF the officials named had intimate rela-
tons with transoontinental lines. MT.
Shontz said that the Glover Leaf was not
In any way associated with tTansconti-
mental lines. hut that the other roads men
toned might be regarded as related to
transcontinentals, although thoy would not
be so-called in railroad parlance."
In referring 10 communications with ofii-
cials on the isthmus Mr shonts spoke OF
cable charges
do YOU not think the government should
have its own cable between the nearest
points OF the canal zone and the United
States?'' asked Mr.. Morgan.
Il do. and have repeatedly recon-
nended IT," said Mr. ShOnts.
At the afternoon session Senator Morgan
, took up the subject OF Mr.. Shonts' conveI-
sation with President Roosevelt concerning
his services with the Glover Leaf route. Nj.
shonts said the president told him the sub
ject Of his dual role had been brought up
ana that IT might prove embarrassing u
the administration The president had
asked him what he doing concerning
his holdings OF railroad interests and Mr
shonts said he replied that he would dir
pose of his holdings II he had an oppor-
tunity 10 do so without sacrifice In this
connection Mr.. Shonts made IL clear that
the question OF dispOsing OF his railroad
holdings had not been considered seriously
III that Interview.
IF the president asked YOU TO resign the
presidency OF the Clover Leaf and dispose
, OF your holdings would YOU feel free to re-
: sign your commissionership7 asked Mr..
Morgan.
II never had IL presented that way" an
sWered the witness AS long a. the
| 10.