Omaha daily bee., 1907-01-26
OLIVER TO DIG CANAL
Knoxville Man Will Get Contract 1
Certain Conditions Are Net
WHITE HOUSE CONFERENCE CONSIDERS BIDS
Officials Not Satisfied with Financial
Responsibility Of Bangs
OLIVER MAY TAKE ANOTHER PARTNER
Will Be Given Contract IL He Finds One
that is Satisfactory.
MkRTHUR-GlLLESPlt co. MAY COME IN
second Lowest Bidder Represented at
Conference and IL IL Rumored
that it VIII Form Alliance
with oliver.
Officials Not Satisfied with Financial
Responsibility Of Bangs
OLIVER MAY TAKG ANOTHER PARTNER
Will Be Given Contract IL Hs Finds One
that is Satisfactory.
RARTHUR-eILLtsPlt co. MAY COME N

WASHINGTON Jan. 25.-After an ex-
tended conference at the White House to-
night II was decided TO reject the bid of
oliver & Bangs, who proposed to complete
the construction OF the Panama canal for
SIS per cent of the total estimated cost, in
sofar as Arson N. Bangs Of New York
City IL concerned. While no official state
ment was given out at the White House, II
can be authoritatvely stated that IL Will
liam j. oliver of Knoxville, Tenn, can en-
ter into a satisfactory arrangement with
some other contractor, who is financially
responsib' he will be given the contract
for the o dction of the canal.
The fact ,chat the Mc-Arthur-Gilespie
company of New York, whose bid for the
construction of the canal was 12.5 per cent.
were represented at the conference, leads
any OF the interested parties to believe that
a combination may be formed between that
firm and Mr.. Oliver. It is known that the
McArthur-G Gillespie syndicate has convinced
President Roosevelt and Secretary Taft of
it's financial responsibility and after a most
thorough investigation the canal commits
sion officials have expressed satisfaction
that Mr.. Oliver is able to carry out his
end of the agreement. There would have
been no question of awarding the contract
to oliver and Bangs had the credentials
presented by Mr.. Bangs proved as salts
factory to the officials as those furnished
by Mr.. oliver.
oliver May Select Partner.
The decision reached at the White House,
however, means that Mr. oliver will be
given a chance to take some other con-
tractor into partnership with him, whose
financial responsibility meets the satisfac-
ton Of the government. The canal COM
.yrtNA ALL
not undertake to dictate to him who this
contractor shall be.
The question of rejecting all bids was dis
cussed at the cabinet meeting today and
this decision had been practically agreed
upon before the conference today. Secre-
tary Taft tomorrow will make known to
Mr.. Oliver the decision and II arrangement
is satisfactory to Mr.. Oliver he probably
will be given several days In which to
arrange an agreement with the Macarthur
Gillespie company or some other contractor
who can deposit the required cash security.
If Mr.. oliver refuses to consider the con-
tract after the rejection of Mr. Bangs, the
commission will call for new bids. Anson
NJ. Bangs Of New York, Mr. divers as
sociate in the canal proposal, was the con-
tractor for the 500 canal locks. He 10
president of the Federal Construction COM
Phig VI ANtN AOih lily NHlOH - Sdpildl~
lied at S2,o00,OO0 Mr.. Bangs is a brother
in-law Cf John e. Gaynor Of the firm Of
Greene g. Gaynor. which was implicated
with Captain o. NJ. Carter In the Savannah,
Ga. harbor engineer frauds case. This
fact, however. II is stated. had no infiu-
ence with the canal commission In reject
ing Mr.. Bangs as joint contractor with
Mr.. oliver.
oliver Leaves for New York.
After the adjournment OF the cabinet
T-~eting today Mr.. Oliver left for New
'Iork and It Is admitted by his representa-
sition to the McArthur-Gilespie company to
Join him in submitting proposal to the
Canal commission m place of the bid sub
mltted under the firm name OF Oliver &
Bangs. 1t is stated tonight that a COM
promise arrangement viii be considered by
the Canal commission. providing oliver
succeeds In making a satisfactory arrange
ment with Macarthur & Gillespie, to pay
per cent of the total cost for the con-
Htruction OF the canal The Oliver & Bangs
hid was SO per cent. while the Macarthur
Gillespie bid was 1875 per cent
Commission 10 He Reduced.
, Following out the presidents recon-
mendation that the Isthmian Canal COM
mission should be reduced to three mem
bers, or, better still. one member the SEN
ate canal commission expects to have ready
for consideration on Tuesday, next. a bill
abolishiug the commission entirely In the
same measure, provision will be made for
the president to appoint one man, pre-
sumably the engineer in charge Of the con-
struction. to exercise full control and name
his subordinates. All. canal employees are.
however, TO continue under the War de-
partment Senator's Knox and Hopkins are
drafting the bin. There are a number of
features they have not yet worked out 10