New-York tribune., 1907-01-28

OF Tennessee. who has ten days in which 20 n1aks
arrangements for assuming the Panama Canal
contract.
which provided for the completion OF the canal
for $50 per cent OF actual cost
This decision has been reached because Of tho
assurance Of Mr.. Oliver that he could comply
with these conditions within the time named
and the further information received from tha
representative OF Macarthur & Gillespie that
that association was not prepared to submit an
offer lower than it's present bid but would deen1
the administration fully warranted in accepting
the Oliver proposal provided Mr.. Oliver could
present an entirely satisfactory financial stand-
ing.
THE OFFICIAL STATEMENT.
Pursuant to this decision. which has. o.
course. the full approval of the President. the
following statement was given to the press by
the Canal Commission this evening:
AS result OF conferences at the White
House, 1T was to-day announced by the Isthmian
Canal Commission that. in view Of assurances
that had been received from Mr. Oliver and
capitalists associated with him, that Mr.. Oliver
the construction of the isthmian canal at a per-
centage of 6.I5. with organization Of cOn%
tractors and with nnanctal resources IN fuLk
compliance with the requirements OF the invita-
tiOn for bids he will be given an opportunity,
to do So.
Mr. oliver has been notified that within ten
days he will be required to associate with him
self at least two independent contractors whose
skill and experience combined with his own.
shall cover the entire field Of work to be per-
formed under the contract. and to organize a.
corporation for the express purpose of CARRYING
out the proposed contract, with a capital OF
SO,O0O,OOD. Of which not less than S1,0Ol0tSl.
paid In in cash. and Sl,JOOOOO, I'm the form OF
solvent subscriptions. shall be available for the
purpose of carrying out the contract. and OF
which the remaining 100000 may be devoted
to the purpose OF procuring bond. as reauiTed
by the contract, or or SUBSTITUTING IN HeU
thereof. in whole or in part. and subject to tho
conditions Of the bond, cash or current securities
satisfactory to the commission
Satisfactory assurances not having been
ceived that the financial standing OF Arson II.
Bangs met the requirements of the invitation, by
direction Of the President he has been rejected
participant in the bid filed by Messrs. Oliver
and Bangs
Macarthur & Gillespie, the one remaining bid
der whose bid had been deemed worthy of con-
sideration TO either withdraw their pending bid.
to allow IL to abide by the result OF Mr. OIL
ver's efforts to make good his bid as herein OUT
lined. then to be considered upon It's merits. Tho
other bids have been rejected because informal
and in the case OF the highest bid excessive as
we'll
The foregoing action is taken in conformity
with the expressed wish Of both Mr.. Oliver and
the Macarthur Gillespie syndicate, that the con-
tract should be let without rebidding, and in
view OF the 1urther statements OF ths spokeSIneh
Of the MacArthUr-GhlSpie company 20 the Presi-
dent that II the commission could close the con-
tract with satisfactory and responsible as
sOciatiOn Of contractors at a rate as low as that
proposed by Mr. oliver it should feel at liberty,
far they were concerned TO do 50.
Mr.. Oliver resides at Knoxville, Tenn.
WISHED To BID ALONE
President Roosevelt last Friday took the DO.
sition that. since Mr.. Oliver had met all the re-.
quirements Of the government it would be un-
just to reject hts bid OF 6.75 per cent for the
construction of the canal. even to require hiun
to submit a new bid for the contract Mr..
oliver had informed the President that It was
bis To Ind for.
work. and that when the canal officials Informed
him that it would be necessary TO form part
nership with some other financially responsible
contractor they even went so far as TO suggest
that he enter into an agreement with AnsOn NJ.
Bangs. of New York City. Mr.. Oliver said THAI
after receiving this suggestion from Chairman
ShOnts he visited the War Department and was
informed that Mr. Bangs would be entirely sat
isfactOry TO the government. Mr.. Oliver told
the President that with this assurance he Inn
mediately entered into an agreement with tho,
New York contractor.
Powerful influences We're brought to bear on
the President and Secretary Taft to reject al
bids and advertise for new proposals. but tho
President insisted that Mr. oliver should have a.
reasonable time in which to make a satisfactory
arrangement to substitute some other contractors
or group of contractors to take the place or Mr.
Bangs. At the White House conference on Sat-
urday night the IrlehuS OF lHe NidSEAI'lNl -S1A.-
lespie syndicate argued that the contract figure
should be increased to per cent OF the total
cost of construction and that the contract be
awarded TO Oliver. Macarthur and Gillespie. This
suggestion, however did not meet with the aR-
Droval of the New York firm. which insisted
that IL could not undertake the work for less
than 1850 per cent of the total cost the figure
mentioned in the original bid. The President.
Secretary Taft and the Canal Commission off,
Gals then decided TO award the contract 70 Mr..
oliver. provided he could make satisfactory ar
ransements with at least two other financially
responsible contractors.
Secretary Taft and r. r. Rogers. general
counsel to the Canal Commission, were in con-
ference with the President for two hours to-
night. and the whole matter was again gone
AFTER ALL, UsHER's THE SCOTCH