Los Angeles herald., 1907-01-28
OLIVER TO GET
CANAL CONTRACT
PRESIDENT SUCCUMBS TO
INFLUENCE"
Pressure Brought to Bear from Outside
induces Roosevelt to Repudiate
His Pledge and Bar Bangs
from Award
Rv Assoclated Press.

BY Associated Press
WASHINGTON, Jan. Following
a conference at the White House to-
night It was officially announced that
the contract FOR building the Panama
canal would be awarded to William
Dolliver. who, with Anson NJ. Bangs.
was the lowest bidder I'm the recent
competition, provided that within the
next ten days he associates himself
with an Independent contractor whose
skill and experience, combined with
his own shall cover the entire field OF
the work to be performed under the
contract.
The official announcement tonight
confirms the Associated Press state
ment of last Friday night. President
Roosevelt then took the position that
since Mr.. Oliver had met all the re-
quirements of the government 1t would
be unjust to reject his bid of 6.75 per
cent of the construction of the canal,
or even to require him to submit q
new bid for the contract.
Mr.. Oliver had informed the president
that II was his desire to submit an in
dependent bid for the work and that
when the canal commission officials in
formed him that 1t would be necessary
to form a partnership with some other
lllldlCldllN IeSpOllSlDle contractor tney
even went so far as to suggest that he
enter into an agreement with Anson
NJ. Bangs of New York city.
Mr.. Oliver said that after receiving
this suggestion from Chairman Shonts
he visited the war department and was
informed that Mr.. Bangs would be en-
tirely satisfactory to the government.
Mr.. oliver told the president that with
this assurance as to the reliability of
Mr.. Bangs he Immediately entered into
an agreement with the New York con-
tractor.
Influence" Is Used
Powerful influences were brought to
bear on the president and Secretary
Taft to reject all bids and advertise for
new proposals but the president in
sisted that Mr. oliver should be given
a reasonable time in which to make a
arrangement to substitute
some other contractor or group of con-
tractors to take the place of Mr.. Bangs.
At the White House conference on
night the friends of the Nc
Gillespie syndicate urged that
the contract figure should be increased
to per cent of the total cost of con-
and that the contract be
awarded to Macarthur, Oliver and Gill
lespie.
This suggestion. however, did not
meet with the approval of the New York
firm, who, however, said they could not
the work for less than 1880
per cent of the total cost the figure
in their original bid. The
president, Secretary Taft and the canal
officials then decided to award the con-
tract to Mr.. oliver, provided he could
make satisfactory arrangement with at
least two other financially responsible
contractors.
Secretary Taft and r. r. Rogers,
general counsel to the canal commits
sion, were in conference with the presi-
dent for two hours tonight and the
whole matter was again gone over. At
the direction of the president Mr.. Rog-
ers prepared the official statement for
the press.
oliver Can Get Partners
When informed of the statement
issued by direction of the president Mr..
divers representatives said tonight:
There is absolutely no doubt about
Mr.. oliver being able to fulfill the re-
uuirements of the canal commission.
There are now at least twenty of the
most responsible, contractors In the
United States who have expressed a
to join Mr.. Oliver in con-
structing the canal at the figure men,
toned in his original bid.
"These names will be submitted to
President Roosevelt with proof of their
financial responsibility. Before enter
ing into another arrangement Mr.. Oil
yer wants to know positively that the
he chooses will be accept
able to the government"
The official statement given out to-
night follows:
"As a result of conferences at the
White House it was today announced
by the Isthmian canal commission that
in view of the assurances that had been
received from Mr.. Oliver and capital
lists associated with him that Mr.. oliver
was preDared to make good his bid to
complete the construction of the Pana-
ma canal at a percentage of six and
hundredths With-an or
of contractors and with
financial resources in full compliance
with the requirements of the invitation
for bids, he will be given an oppor-
tunity to do so.
oliver Is Notified
"Mr. Oliver has been notified that
within ten days he will be required to
associate with himself at least two ad-
ditional contractors whose experience
and skill combined with his own shall
cover the entire field of work to be per-
formed under the contract and to or
ganize a corporation for the express
purpose of carrying out the proposed
contract with a capital of $5,OO0000 of
which not less than $1,50O,O00 paid in
cash and $l,5OO,OOO in the form of solvent
shall be available for the
purpose of carrying out the contract
and of which the remaining $2,OOO,OOO
may be devoted to the procuring of a
bond as provided by the contract or
in lieu thereof, in whole
or In part and subject to the conditions
of The bond cash or current securities