New-York tribune., 1907-01-27
PANAMA DILEM MA
OLIVER NOT TO BID AGAIN.
No Decision Reached at White
House Conference.
tFrom The Tribune Bureau.l J

Washington Jan. 26-The White House con-
ference on the Panama Canal contract this
afternoon resulted In no decision. and 1t was
announced late to-day that the subject would
go until Monday. In the course of the day
William ]. Oliver informed Secretary Taft that
he would not bid again on the contract should
new bids be called for. He said that Mr..
Stevens, whom Governor Hughes has appointed
Commissioner of Public Works for New York,
would back him financially, and presented a let
ter from Mr.. Stevens in support OF the state
ment This may result in the government de-
Gliding to accept the bid Of oliver & Bangs
with Bangs withdrawn from the partnership
Macarthur & Gillespie also informed the Sec
retary Of War that II new bids were called for
they would merely renew their bid at 12l2 per
cent as consultation had led them to decide
that they could not proftably undertake the
work for less. This decision of the New YORK
contractors is assumed to have resulted from
the announcement In the press that the admin
istration would not accept Bangs as con-
tractor.
The information gathered by Secretary tart
to-day leaves the administration the alternative
Of accepting Mr.. divers offer to construct the
canal for 60 per cent even though 1t does not
come from an association of contractors, or or
rejecting It, with the practical certainty that 1t
will have to accept the contract Of Macarthur
& Gillespie at figure not less than IZ12 per
cent Under these circumstances 1t has been
decided to devote some further time and thought
to the consideration of Mr.. divers offer.
Secretary Taft IS not ready to make any an
nouncement respecting the award Of the con-
tract He made this statement after the con-
ference at the White House. He declined TO
discuss the question in detail or TO indicate IN
any way what might be the decision Of the
In adj n
President and Secretary Taft. Secretary Root.
Postmaster General CorteIyou. Assistant Sec
retary Bacon and James r, Garfield, Commits
soner Of Corporations. were present, and for
portion Of the time Chairman Knapp Of the
Interstate Commerce Commission
John r. Macarthur. Of the combination Of con-
tractors known as Macarthur & Gillespie. who
submitted the second lowest bid for the construc-
ton OF the Panama Canal said yesterday that the
firm stands on its bid as presented 20 the War De-
partment to do the work for 1875 per cent OF the
total cost Of construction. It was reported from
Washington last night that William ]. Oliver whose
bid under the firm name OF Oliver & Bangs has been
held up would endeavor 10 make arrangement
with Macarthur & Gillespie.
Certain overtures have been made to u.s. ssid
Mr. Macarthur. but we have never thought Of
considering them. The bid which and
sociates submitted to the War Department as
low as we felt business prudence would allow. and
We stand on II. We feel that we have offered to
the government as strong a combination of con-
tractors as can be found in this country, and We
have invited the closest scrutiny TO c.ut past
records and our ability actually dig the csnaL
In considering the proposition offered by the gov
ernment, we hesitated for long time at ts per
cent, aad Il was only after the most deliberate
thought and searching inquiry that scaled the
bid 20 L2i5 per cent That. felt, Is only a
normal and reasonable bid. but low a bid as the
eXigencies OF the work will permit
The firm OF Macarthur & Gillespie Is really a
combination OF four concerns. They are the Mac
Arthur Brothers company with offices IN New York
and Cnicagoi the T. A. Gillespie company. Of New
YORK and Pittsours; the Atlantic Gulf and Pacific
Dredging Company and the J. G.. White company.
OF New York. with branches in London and
Canada. ''~