Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1906-01-10

edness Of the canal commission to the rail-
road company was quite large enough to
supply the railroad company with the need
ed funds for taking up the bonds without
borrowing from the commission.
The executive officers of the railroad COM
pany have been advised of their error, and
hereafter questions of this character will
not be acted upon finally by the commits
sion or the directors of the railroad COM
pany until after conference with the proper
authorities.
On the Food Question.
Another matter calling for comment is
contract and subsequent settlement. In
March, 1905, it became an urgent question
how the employees of the canal commission
and of the railway company on the isthmus
could obtain proper food at reasonable
prices. Chief Engineer Wallace knew J..
g. Markell of Omaha.
Mr.. Wallace in March last wrote to Mr..
Markell and invited him to come to the
1sthmus and look the ground over with a
view view to making an arrangement to feed all
government and himself. The latter did
not reach MIR. Markell until May, when he
answered, accepting the suggestion.
as the lowest bidder on September Z.
Price Was Too High.
When news of the contract reached the
isthmus, Mr.. Stevens, by cable, objected
to it as fixing too high a price, and there
upon clause was introduced into the
co by the consent of Mr. Markel
to cancel the contract at any time in the
discretion Of the President. In view of
the cancellation Of the contract It is I'M
AT meeting OF the railroad directors
on November Mr.. Markell prese ntd his
claim for his actual outlay, amounting to
$5745.97, and also claim for the value Of
his time and services. The directors, at the
instance Of Mr. Shonts, voted to allow Mr..
Markell for his expenses and services the
Gil of nd no a
at once.
This action was taken without consulting
either you or me, and was not brought to
my attention until some time after my re-
turn from Panama, on November 10. Looked
at from a purely and strictly legal stand
point, If the amendment of the contract
with respect to the cancellation at the dis
erection of the president was to be strictly
conserved, a cancellation would end the
obligations Of both parties under 1t. In
other words it would appear that the pay.
ment ordered by the directors was gratuit-
Gus and without legal consideration.
Moral Obligation Greater.
On the other hand, the moral and merito-
| 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 $1,000, all in anticipation OF securing
the contract and relying on the permanence
of the contract, would justify a good bust
ness man, with whom such q 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
kel 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 1886,
| 24S. or somewhat in excess of per cent.
on the capital stock.