Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-02-06
MCDONALD IS CHOSEN
New York Contractor Heads
New Panama Company.
OLIVER IS VICE PRESIDENT
Surprise That He Was Not Given
Higher Office.
FINANCIER MADE CHAIRMAN
Man Whose Bid Will Probably Be
Accepted Practically Eliminated
From Management.
FINANCIER MADE CHAIRMAN

NEW YORK, February 6.-Some surprise
was occasioned by the announcement that
the incorporators of the Panama Construc-
ton Company had elected to the presidency
of the corporation John b. Mcdonald In
stead of w. B. Oliver. on whose bid of 80
per cent of the cost of construction the
contract is expected to be obtained. Mr..
Oliver was elected first vice president and
general manager, which was the office ex-
pected 20 be given to Mr.. Mcdonald when
the group of contractors and their bankers
first got together in this city to arrange
their plans.
AS late as Monday noon Mr.. Oliver told
reporters that he took it for granted that
he would be president of the new company.
That afternoon it came out, however, that
Mr. Mcdonald was to be executive head so
far the construction work was con-
cerned. Mr.. divers duties were not fully
defined. and were left in somewhat neb-
ulous state, inasmuch as it appeared that
the various contractors Joining IN the
scheme would each run that end of the
work for which his experience best fitted
him. while r. A C. Smith would no doubt
be the financial manager here in New York.
With Mr.. Mcdonald employing the eX-
perts and supervising the construction work
In cooperation with Chief Engineer Ste
vens, it puzzled some persons a little to see
where Mr.. Oliver came in.
e Process of Natural Selection"
Yesterdays developments gave color to a
report that the associated contractors had
allowed what might be termed a process of
natural selection to displace Mr.. Oliver
from the leadership of the canal contract
project. This brief statement was given
out at Mr.. Smiths Office. where themeeting
for the election of officers was held yester-
day:
In the organization of the company Mr..
Oliver desired to associate with him several
contractors and groups of contractors
whose varied experience made them famil-
lar with the different phases of construc-
ton to be met in the great work of sue
cessfully carrying out this contract
What yesterdays doings disclosed of the
financial arrangements tended to confirm
the impression regarding MIR. divers
position. r. A. C. Smith of this city, who
is well known in Wall street and has wide
financial affiliations, was chosen chairman
of the board of the Panama Construction
Company, and r. A. Chester of Washing
ton. vice president of the bank of which ex-
Senator Frederick c. Stevens is president,
was elected treasurer. d. V. Reynolds
was elected secretary and assistant treas
urer. Mr. Smith was asked yesterday how
wide his powers were to be.
81 presume that they will be those usual
~ attaching to the office of chairman,
said Mr.. Smith.
VIII they be as wide as those of Judge
HdEy Oh IHe United SldleS Sleel SOIpOid-
tiCn?" Mr. Smith was asked.
II presume So was his reply.
Then you will be the real financial
power in this company a reporter sug-
gested.
NO, no." said Mr.. Smith II shall
merely preside at meetings and attend to
such matters here in New York can be
easily handled by a man who is on the
spot all the time
May Leave New York.
These developments greatly strengthened
the impression that John B. Mcdonald
would leave the marlborough Metropolitan
traction combination just as soon as the
plans of the Panama Construction Com
pany were worked out, SO as to be able
to devote his entire time to the canal
work.
The following were chosen directors of
the canal company yesterday: John b. Nc
Donald, W. j. Oliver, John Pierce, Charles
H. Ackert Robert "a. c. Smith, Robert A.
Chester George Pierce, Patrick T Walsh,
William III. Sayre. Patrick II. Brennan,
George +. Hartman. and Robert Russell,
Mr.. Mcdonald, Mr.. Oliver, Mr.. Pierce, Mr..
Smith and Mr.. Chester are the executive
committee. Ii is understood that Mr. Ches-
ter represents ex-senator Stevens, who. as
Gov; Hughes superintendent of public
works, could not devote any of his time to
the executive details of the enterprise.
To-day nearly all of the incorporators will
go to Washington to present their PROPOSE
IOll 10 lHt government.
Statement From Stevens.
ALBANY, February 6.-Supt Frederick
C. Stevens of the state department of pub
lie works returned yesterday from Washing
ton, whittier he went on private business
to discuss with the Secretary of War and
others concerned in the matter the
Panama canal bid of William j. Oliver of
Knoxville, Tenn, with whom Mr. Stevens
has associated himself as financial hacker
Mr.. Stevens last night issued this formal
statement:
"Inasmuch as / am a public official of
the state, possibly il may be desirable for
me TO say that, having been instrumental
in bringing together the strongest combina-
ton of general and expert contractors to b =
found in the United States who are willing
TO associate themselves with Mr.. Oliver
and build the Panama canal as per the
terms and conditions contained in the BID
made by Mr.. Oliver, corporation having
been formed under the laws of this state
and all the other conditions imposed by
the government having been complied with,
my active connection with this enterprise
is at an end
THE active interest taken by me in this
matter has not in the slightest manner in
terfered with my duties as superintendent
of public works OF this state. / intend to
devote my time and such abilities as / pos
sess TO the affairs of this department"
Tug in Collision With Lighter.