Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-01-29
Must Associate Himself With
Two Other Reliable Con-
tractors and Give SatiSfaC-
tory Bond to Perform Work,
GIVEN TEN DAYS TO
PERFECT ARRANGEMENTS
President IntercedeS to Pro-
teCt Lowest Bidder Despite
Influences at Work to Pro-
cure Rejection of All Bids,

IBy Morning journal Special Leased Wire.I
Washington Jan. 2S.-WiEliam J..
Oliver. of Knoxville, Tenn, the low
est bidder in connection with the con-
tract for the completion of the Pana>
ma canal, today notified Secretary
Tafa that he would complete his con-
tract within the ten days allowed him.
He assured the secretary that he was
able to associate himself with two or
more contractors who would be salts
factory to THE secretary and to the
president. In speaking of the matter
today Secretary Taft said that the
contract would be given to Mr.. oliver
it, as stated, the persons with whom
he intends associating prove their re-
sponsibility to the satisfaction of the
canal commission and the president.
The official announcement last night
confirmed 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, it
would be unjust to reject his bid of
rs per cent of the cost Of the canal,
or even to require him to submit a
new bid for the contract Mr. oliver
had informed the president that 1t
was his desire to submit an inde-
pendent bid for the work. and that
when the canal commission officers
informed him that 1t Would be neces-
sary to form partnership with some
other financially responsible contract
or, they even went so far as to sug-
gest that he enter into an agreement
with Anson M. Bangs, of New York
City. Mr. Oliver said that after re-
ceiving this suggestion from Chair
man Shonts he visited the war de-
partment and was informed that Mr..
Bangs would he entirely 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 agree
ment with the New York contractor
Powerful influences were brought
to bear on the president and Secre-
tary Taft to reject all bids and adver-
tise for new proposals, but the Presi-
dent insisted that Mr.. oliver should
be given reasonable time in which to
make a satisfactory arrangement to
substitute some other contractor or
group of contractors to take the place
Of Mr.. Bangs. At the White House
conference on Saturday night the
friends of the McArthur-G Gillespie syn
dicate argued that the contract fig
ures should be increased to per cent
of the cost of construction. and the
contract be awarded to Oliver, Nc
Arthur and Gillespie. This sugges-
ton, however, did not meet with the
approval of the New York firm, who
insisted that they could not undertake
the work for less than 1850 per cent
of the total cost, the figure mentioned
in their original bid The president,
Secretary Taft and the canal commits
sion officers then decided to award
the contract to Mr.. oliver, provided
he could make satisfactory arrange
ments with at least two other finan-
cially responsible contractors.
Secretary Taft and r. r. Rogers,
general counsel to the canal commits
sion, were in conference with the pres
ident for two hours tonight, and the
whole matter was again gone over.
At the direction of the president. Mr..
Rogers prepared the official statement
for the press
When informed of the statement is
sued by direction of the president, Mr..
divers representatives tonight said:
There is absolutely no doubt about
Mr. Oliver being able to fulfill the re-
quirements of the canal commission.
There are now at least twenty of the
responsible contractors of the United
States who have expressed a willing
ness to join Mr., Oliver In the work of
constructing the canal at the figure
mentioned in his original bids These
names will be submitted to President
Roosevelt tomorrow. with proof of
their financial ability. Before enter
ing into another arrangement, Mr..
oliver wants to know positively that
the contractor he chooses will be ac-
ceptable to the government"
The official statement given out to-
night follows:
"As result of conferences at the
White House, 1t was today announced
by the Isthmlan canal commission
that In view of assurance that had
been received from oliver and capital
lists associated with him that Mr.. Oil
yer was prepared to make good his
bid to complete the construction OF
the Isthmian canal at percentage OF
6.75. with an organization of con-
tractors and with financial resources
In full compliance with the require
ments of the invitation for bids. he
will be given an opportunity to do so
Mr.. Oliver has been notified that with
In ten days he will be required to as.
soclate with himself at least two in
dependent contractors, whose skill
and experience, combined with hll
own. shall cover the entire field OF
work to be performed under the con
tract. and to organize a corporation
for the express purpose of carrying
out the proposed contract, with a cap.
ital of 10000. 600. OF which not leg
than sf.500O00 paid in cash, anc
s1.500, 900 In the form of solvent sub
gorf.ftaaa ohaff In nvaflahla FOR fht