The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1906-01-11

edpess of the canal commission TO the ram
road comnany was quite large enough 70
supply the railroad company with the neel
ed funds Tor taking up the bonds "i'no''
borrowing from the commission
The executive officers of the raiiroau coI4
pany have been advised of their error ann
hereafter questions of this character NJ
not be acted upon finally by the cQllHliS
sion ar the directors of the railroad COM
pany until after conference WITH 'ne Pi"P''
authorities
On the Food Question.
Another matter calling for comment Is
the cancellation of the so-called Marx
contract ana subsequent settlement. ~
March 1908, ii became an urgent question:
how the employees of the canal commission
and of the railway company on the lsthiii'is
could obtain proper food az re;laon . =
prices. Chief Engineer Wallace hhe" D.
+. Markell of Omaha. ~
Mr.. Wallace in March last wrote 10 NE
Markell ana invited him to come 10 the
lsthmus and look the ground over WIN -
view to making an arrangement TO feeu ~
the employees on terms satisfactory TO the
government and himself. The latter uiu
not reach Mr.. Market until May, wheh ne
answered, accepting the suggestion ,,ut.o,
The contraCf was awarded 10 MI Marhei
as the lowest bidder on September =
Price Was Too High.
When news of the contract reached the
isthmus, Mr.. Stevens, by cable, objected
to IL as fixing too high IA price, ana thcrc-
upon a clause was introduccd lhto me
contract. by the consent of Mr.. Marker;
by which the commission was permitted
to cancel the contract ut any time in the
discretion of the President. In view OF
the cancellation Of the contract IL IS uh-
necessary to consider this issue further.
AT a meeting Of the railroad directors
on November Mr. Markell prest ntd his
claim for his actual outlay, amounting TO
S5745. %, and also n claim for the value OF
his time and services. The directors, at the
t,,st - r.
Markell for his expenses and services the
sum of S10,7l5.97, and the money was PAID
at once.
either you or me. and was not brought 10
my attention until some time after my re-
turn from Panama, on November 10. Looked
at from purely and strictly legal stand
point II the amendment of the contract
with respect TO the cancellation at the DIS
erection of the president was TO be strictly
conserved, cancellation would END the
obligations of both parties under 1t. In
other words It would appear that the pay,
mcnt ordered by the directors was gratut-
Gus and without legal consideration.
Moral Obligation Greater.
on the other hand, the moral and mertO.
rious consideration arising from the fact
that Mr.. Markell had actually rendered val
liable expert services to the railroad com
pany, had made an actual outlay of more
Tim 5000 all in authorization of securing
the contract and relying on the permanencc
Of tie contract, would justify a good busi-
ness man. with whom such transaction
was had. in compensating him for his loss
of money time and services. The opinion
of the attorney general In the affirmative
will be found as an appendix.
| respectfully recommend that the action
OF the commission in settling with Mr. Mar
Ike! now have your formal confirmation.
Panama Railroad Profits.
The annual report of the Panama
Railroad company for the ten months
ended October 81 last, shows that after
payment Of all costs there remains $500.
24S. or somewhat in excess of per cent.
on the capital stock