The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-01-26
BANGS is OUT OF 1T.
divers Partner Couldn't Make Good
With Canal Commission.

| Washington, Jan. 26.-After an ex-
tended conference at the White House
| 1t was decided to reject the bid D., of
| Oliver and Bangs, who proposed to
complete the construction of the Pan
anna canal for CTS per cent of the to-
tai estimate cost, insofar as Arson NJ.
Bangs of New York city is concerned.
| While no official statement was given
out at the White House it can be au-
thoritatively stated that if. VIM. ].
| Oliver of Knoxville, Tenn, can enter
| into satisfactory arrangement with
| some other contractor who is hnan-
cially responsible he will be given the
contract for the construction of the
canal
The fact that the MacArthur-G Giles
pie company of New York whose bid
for the construction of the canal was
1875 per cent were represented at the
conference, leads many of the inter-
ested parties to believe that a combin-
alton may be formed between that
firm and Mr.. Oliver. 1t is known that
the Macarthur Gillespie syndicate has
convinced President Roosevelt and
Secretary Taft of it's financial respon-
sibility and after a most thorough in
vestigation the canal commission have
expressed satisfaction that Mr.. Oliver
is able to carry out his end of the
agreement. There would have been
no question as to awarding the con-
tract to oliver and Bangs had the
credentials presented by Mr.. Bangs
proved as satisfa ctory to the officials
as those furnished by Mr.. Oliver.
The decision reached at the White
House, however, means that Mr.. Oliv-
er will be given chance to take some
other contractor into partnership with
him whose financial responsibility
meets the satisfaction of the govern
ment. The canal commission with
this requirement met will not UNDER
take to dictate to him who this con-
tractor shall be.
The question of rejecting all bids
was discussed at the cabinet meeting
and this decision had been practically
agreed upon before the conference.
Secretary Taft will make known to
Mr.. Oliver the decision and if arrange
ments are satisfactory to Mr. Oliver,
he probably will be given several days
in which to arrange an agreement
with the Gillespie COM
pany or some other contractor, who
can deposit the required cash security
If Mr.. Oliver refuses to consider the
contract after the rejection of Mr..
Bangs the commission will call for
new bids.
Arson NJ. Bangs of New York, Mr..
divers associate in the canal propos-
al, was the contractor for the 500 can
al locks. He is president of the fed
eral construction company of New
York city, which is capitalized at So
law of John T. Gaynor, of the firm of
Green and Gayner who were fmplicat-
ed with Captain o. NJ. Carter. in the
Savannah. Ca, harbor frauds case.
This fact, however. 1t is said had no
influence with the canal commission
in rejecting Mr.. Bangs as joint con-
tractor with Mr.. Oliver
After the adjournment of the cabi-
net meeting Mr.. Oliver left for New
York and it is admitted by his repre-
sentatives that he will submit a pro-
position to the observation-disclosures
company to join him in submitting a
proposal to the canal commission in
place of the bid submitted under the
firm name of Oliver and Bangs 1t is
stated that a compromise arrange
ment will be considered by the canal
commission, provided Oliver succeeds
in making a factory arrangement
with Macarthur and Gillespie to paw
per cent of the total cost for the
construction of the canal. The Oliver
and Bangs bid was 6-75 per cent while
the Macarthur Gillespie bid was lbs
per cent.