New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-01-09

sequent settlement. In March. 1906 it became an
urgent question how the eImpoyes on 9e on the
ishnus eould obtain pTopFer fS3e E. Marke
of Omaha as q contractor engaged by raliI I so
companies feed boarding camps and 70 cilter 10
railroad hotels and restaurants MI. MaI me car
been in the business for fifty years d ana nag
red out large contracts OF TINS kho niIToad the
ton work done by the Union FaG f arga raiIway
Illinois Central Railroad and 9dner IN March last
wrote to Mr. Markell and invited him 10 come , ~ n
isthmus and look the ground over viii oitag on
terms satisfactoTy to the government ana n aS
The letter did not reach IA, A[ +ba Suggestion and,
with his son and partner ana prat trnnp to TINS
c1nntrv after a months stay upon te iI@ six
ana nster absence OF soi,T. nrdsi to Mr.
W WsrS It the lowest bidder September ne {,
When news OF the h, cable objected 1t
as fixing too high price, and theteu t roe con-
was ntroduc sr INTO HI re which the company was
permitted to cancel the CONTRACT a. ,.av of the
IN me aneIiation clause Mr. Markell took only loI
persons to The lsthmps ana o. matter in respect
70 the contract was definitely settled on sep IN
per ~ Mi and did not return until Octooer H. DHi
ing this time after con lernor Nagoon the
notice of cancellation, in accordance WIZ Ie a,r
C,.roor Slaeoon then stating that Mr. Marker
ought to be would be compensated LOT ms bad
Injured to the benefit of the government, I ne
reason for the cancellation ol tne Tenommenda-
lions the railroad company under Mr. stevens mao
been able 10 furnish food its employees ana those
of the commission at q Jess price than that 1Xed
in the contract Markell still insists that the esu7
mate of cost made by him reasonabie, anu
that the results obtained by the company We're que
cost 20 +" to the Contractor we're included in the
railroad companys estimate Tor me coz, "a tin
of the contract required for meals OF me SSe1To
class of employees more expensive e i not of inc
cancellation Of the contract it is unnecessary 10
All meeting Of the railroad directors Novem,
Der S. Mr. Markell presented his claim Tor ms act9!
the value of his time and services. The directors,
~ IN For hie EXPENSES ana services the sum of
SO 745 81. and the money was paid al once. -,
YOU or me- and was not brought to my attention
Until some tune aLeT my from purely and strictly
legal standpoint if the amendment OF the CONTRACT
with respect to the cancellation at the discretion
of the President was TO be strictly construed a
cancellation would end the Obligations OF pom par
damages ny either against the other ana tneretpre
Mr. Markell would seem TO have no claim Tor eltheI
his expenses or his services against the rdd ti
company after the right of absolute cancelatIlon
words II would appear that the payment ordered
by the directors was gratuitous and without Iegal
On the other hand. the moral and meritorious
consideration arising from the fact that Mr. Mark
81 had actually rendered valuable expert services
10 the railroad company, had made an act'iaI OUT
lay Of more than $5Oo all in anticipation Oh
of the contract, would justify good business man
with whom such transaction was mac, II. com
pensating him for his loss OF money, time ana ser
vices, 1t perfectly plain IRON MT hdThtI : OWL
evidence that if he had been permitted to carry
on the contract; indeed, if he had bid and not
considered the railroad company indebted to him for
anything The directors. however, thought that the
clause had been 9s6 fn na ag S Mne se
vices. required that they should make INN WhoIe.
ACTIONS DIsAPPROvED
That they acted in this regard in good Gath and
with a due regard to their trust have no doubt.
In reply to my criticism and dlsapprSVh ~ Ine9 t
he o
has answered that the course taken was plainly
within the corporate power of the directors and
was supported by advice of counsel l think how
ever that these issues of such importance ana
doubt that they should have been submitted TO you
or to me. as your representative, for approval.
corporation with individuals as stockhoiders Hgi.I
exercise the discretion which vas exercised here
and the president and directors of the company,
the exercise of such a discretion IS only safe Wncn
I have SO advised the president and directors of
the company in order TO prevent departure from
l have deemed it my duty, in view of the fact
to me until after the final action of the board. to
Investigate quite fully the facts have received a
have subjected Mr. Markei to a long examination
have secured from him all the correspondence
throwing light on the subject and have requested
from him the vouchers for such Of his expenses as
the correspondence / append to this letter. The
vouchers Mr.. Markell has not yet been able TO send
If complete vouchers are not forthcoming it
will be significant because when the expenses
We're incurred Markell did not suppose that they
would form the basis of claim against the gov
eminent and. moreover. q large part of the money
was expended for travelling, for which il is
usual to obtain receipts I think one can read
his evidence without being convinced that the claim
WHICH was allowed by the railroad company was
meritorious and moderate. l have submitted the
question to the Attorney General whether you may
legally confirm the action of the railroad company
and make the payment legal one. The opinion of
the Attorney General in the Affirmative will be
found appendix.
respectfully recommend that the action Of the
commission in settling with Mr.. Markell now have
your formal confirmation. ! further request that
the two reports and this letter of transmttal with
its appendices be submitted to Congress
In conclusion the Secretary says:
Those who are responsible for the work of the
canal commission court investigation of the most
thorough character into everything which has been
done under its authority.
The Presidents letter to the Secretary follows:
The White House. Washington, Jan. :, 1906.
To the Secretary of War: have received your
letter Of January 3. transmitting the annual re-
port of the Isthmian Canal Commission and the
Panama Railroad Company hereby formally APP
prove your actions and recommendations as therein
set forth. THEODORE ROOSEVELT.
PANAMA r. r.. REPORT.