The Montgomery advertiser., 1907-02-27
w. J. OLIVER
 LOSES OUT Government Will Com
 plete Canal. ROOSEVELT'S SUDDEN CHANGE Work Will Be Done by Engineers
 of Army. Chief Engineer Stevens Springs Sur prise By Resigning from His Position--Senator Blackburn
 VIII Get m Appointment.

addressed to the lSthmian canal com mission today, President Roosevelt, as far as it lay in his power under exist Ing law transferred to the engineer Ing branch of the army the responsi- bility for the further construction of the Panama Canal
 He also, in the same order which took the form of & letter adressed to the chairman of the Commission. Mir. Shonts, himself about to retire from all connection with the enterprise. for mally recorded the abandonment for the present at least of the project of having the canal work done by con- tract on the percentage system.
 Another feature of the order was the announcement of the resignation Of John k. Stevens, as engineer in charge of the canal construction. MT. Shonts Is in New York. where he will tomer- row preside at meeting of the direc- tors of the Panama Railroad Company. of which he Is President, and will. 1t Is said, formally resign that office.
 The intention of the President that there shall be an entire reorganization of the Commission with three army of- ficers of the engineer corps Its leading members who are to have charge Of the engineering features of the canal work. The chairman and engineer-in- chief of the commission will be Major G. W. Goethals, and his associates will be Major D. Dubois Gailard and Major William L. Sibert. to the rank in the order named. These officers are all comparatively young. ambitious and energetic members of the corps.
 Personnel of Commission.
 The reorganization is to become ef- fective immediately upon the confirm alton and retirement of the old com mission. Senator Joseph c. s. Black burn of Kentucky, who retires from the U. $. Senate on the 4th of March, is to be made a member of the reor- ganized commission. The nominations of the present commission now pend- ing include Messrs Stevens, Haines, En- dicott, Herrod, Gorgas and Jackson Smith.
 Their confirmation is desired in order to re1ove all doubt as to the legality of certain acts they have performed in connection with the making of con. tracts. The retirement of Messrs. Shonts and Stevens will leave but two vacancies so that, there will be two more retirements necessary to make way for three army officers and Senator Blackburn.
 AS he told his callers today, the President Is determined that the work on the canal shall proceed continuous 1y and thoroughly and the temporary "dislocation which may come as a re- suit of the resignations of higher off, cials will not be allowed to interfere with the progress.
 The President Is unaware of the spe- cifc reasons which have been infiuen- tial in prompting Mir. Stevens's resig- nation. It surprised him very much. for as late as the middle of December when he was here MT. Stevens made no mention of his wish to retire in the near future. It has been known, however, that MT. Stevens had been stung very much by criticism aimed at him in connection with canal work and he has been disposed to complain somewhat about them.
 Some of this criticism came out dur ing the hearings before committees of Congress The salary question Is also understood to have had an important bearing on his retirement.
 Stevens' Fat Jon.
 It ia understood that MT. Stevens is leaving the governments services to accept a position in connection with great engineering enterprise in this country at an annual salary more than double of that he now receives from the government.
 His friends contend that he has by year and halfs personal experience with the work removed sll doubt as to the feasibility of the construction of the canal in accordance with the plans on which the work is now pro cedinR. The organization of the forces on the isthmus. they say, Is excellent and the president in his letter pro nounced his satisfaction. MT. Stevens is said to believe that he can now term mate his connection with this great enterprise without in any way leopard izing It's success.
 For several weeks 1t has been rumor- ed her that MT. Stevens was dissatis- fled with the plan of letting the canal work out by contract. but as explained by a member of the cabinet today. Mir Stevens really proposed to the presl- dent the adoption of this method of the canal One of the req sons alleged by the president for aban- doning tho project was that it's author was about to withdraw from all con nection with the canal work
 The probability Is that the admins tration may determine to give out the work to be done at the isthmus under contract under the general direction of the army engineers. After Major Goethals and his army associates have been at the isthmus sufficient time to become fully acquainted with the work to be done they will ubmit a report on the situation to the president.
 If they feel that the work can be better done by contract than under the system now In vogue the uestion will again be considered by the presl- dent and as he says In his letter. the services of the same high class con tractors whose bids are now rejected or others of similar standing may then be invoked In the interest of economy and speed
 Reasons of Change.
 The explanation of the Presidents reason for making the sweeping changes today and in refusing all bids SO far offered for building the canal ares sent out in the following letter to Chairman Shonts from President Roose- welt:
 Washington, D. C, Feb. 2G. la07
 "Sir-.I have considered with much care tho question whether the Com mission should accept one of tho bids for the construction of the Panama Canal under the proposed contract. or should reject them all There were two bids worthy ot consideration.
 "Thc bid of the Macarthur syndi- cate. with 12l-2 per cent was the only ons which came within the reduirs-