The daily morning journal and courier., 1907-01-26
OLIV R-BANGS BID FOR
 CANAL WORK IS REJECTED
COMMISSION NOT SATISFIED WITH THE CREDENTIALS
 OF MR. BANGS,

AaVter BrOther-fn-Iaw of John F.
 Gaynor, Who Was Implicated in the
 Savannah Harbor Engineer Fraud
 Case-Faet, However, Said Not to
 Have Influenced Decision -- Divers
 Standing All Right and He May Form
 Combination With Other Bidders.
 Washington, Jan. 25.-As d result of an extended conference at the White House tonight, it was decided to re- ject the bid of Oliver and Bangs, who proposed to complete the construction of the Panama canal for 6.75 per cent. of the total estimated cost, in so far as Anson M. Bangs, of New York city, is concerned. While no official state ment was given out at the White House, it can be authoritatively stated that If William J. Oliver of Knoxville, Tenn., can enter into a satisfactory ar rangement with some other contractor, who is financially responsible, he will be given the contract for the construc- ton of the canal.
 The fact that the MacArthur- Giles pie company of New York, whose bid for the construction of the canal was 12.5 per cent, were represented at the conference, leads many of the interest ed parties to believe that combina- tion may be formed between that firm and Mr. Oliver. It is known that the MaeArthur-G Gillespie syndicate has con- vinced President Roosevelt and Secre- tary Taft of it's financial responsibility, and after a most thorough investiga- ton the canal commission officials have expressed satisfaction that Mir. Oliver is ableto carry out his end of the agree ment, and there would have been no question as to awarding the contract to Oliver and Bangs had the creden- tials presented by MT. Bangs proved as satisfactory to the officials here as those furnished by MT. Oliver. The de- cision reached at the White House, however, means that MT. Oliver will be given a chance to take some other con- tractor into partnership with him, whose financial responsibility meets the satisfaction of the government. The canal commission with this re- qlirement met will not undertake to dictate to him who this contractor shall be.
 The question of rejecting all bids was discussed at the cabinet meeting to- day, and this decision had been prac- tically agreed upon before the confer- erlce tonight. Secretary Taft to-mor- row will make known to MT. Oliver the decision that has been reached and if the arrangement is satisfactory to MT. Oliver he probably will be given sev- eral days in which to arrange a sat isfactory agreement with the MacAr- Gillespie company, or some other contractor who can deposit the requir- ed cash security. On the other hand, if MT. Oliver refuses to consider the contract, after the rejection of MT. Bangs, the canal commission will im- mediately issue a call for new bids.
 Anson M. Bangs of New York MT. Olivers associate in the canal proposal, sion, was the contractor for the Soo sion, wos the contractor for the Soo canal locks. He is president of the Federal Construction company of New. York city, which is capitalized at 3D. O00,00 The board of directors of that company consists of Anson M. Bangs, John F. Donovan and James Hughes. MT. Bangs is a brother -in-law of John F. Gaynor of the firm of Greene & Gaynor, who were implicated with Captain o. M. Carter in the Savannah Ga, harbor engineer fraud case. This fact, however, it is stated, had no in fluence with the canal commission in rejecting MT Bangs as joint contract or with Mir. Oliver.
 After the adjournment of the cabinet meeting to-day, Mir. Oliver left for New York and 1t is admitted by his representatives tonight that he will submit a proposition to the Macarthur Gillespie company to join him in sub mitting a proposal to the canal com- mission in place of the bid submitted under the firm name of Oliver and Bangs. It is said tonight that com promise arrangement will be considered by the canal commission, provided Oli- yer succeeds in making satisfactory arrangement with Macarthur and Gill lespie to pay mine per cent. of the to- tal cost for the construction of the canal The Oliver and Bangs bid was 6.75 per cent, while the MacArthur- Gillespie bid was 12.50 per cent MT. Bangs has been informed of the deci- sion of the commission, and has left for New York. No official statement has yet been given out.