The Washington herald., 1907-02-09

| There is undoubtedly a bad muddle over
the bidding on the Panama Canal mucl
Iof which has not been described in the
/ newspapers. The administration has been
/ learning something about conditions with
reference to successful digging, IT did not
know before the bids were opened. There
has probably been considerable misappre-
hension about the actual situation regard
ing the bidders. Chairman Shonts is cred
tied In the inside circles with contributing
10 the embarrassment
He is jealous Of Chief Engineer Stevens,
and has not been working In harmony
with him. The report that Stevens was
opposed 10 contract construction as dis
scminated Thursday was ascribed 20 the
chairman II was pronounced at the
White House yesterday as unfounded.
The reversal Of the decisions to reject
all the bids following d Cabinet meet
ing several days ago. and the announce
ment that W. J. Oliver would be given ten
days To form a new corporation, We're
brought about by A. r. Macarthur, Of
Chicago a Harvard graduate. and lead
ing member OF the Macarthur firm. He
has been in communication with the Pres
ident and canal officials at various times
during the past year. and prepared the
original draft and specifications on which
bids were asked
CrHNHth Acting for Both.
Mr. Macarthur took the unselfsh
ground before the President that if the
,y..,-,ysry,,.,+ .y..14 roe t1,. aan0I eN...
waited for $50 per cent. even by "A rival
firm. IL should give that firm every OPP
portunity to show whether it could quail
ifs. The hearing which is to be given
Paul Cravath. of New York, Monday
grew out Of the Presidents acquiescence
with Mr. MacArthurs suggestion, but
originated solely with Mr. Cravath's per
sonal request. He is the attorney of the
MacATthur-Gillespie combination. which
bid 12.j per cent. but re is likewise at
torhey for John b. Mcdonald. whom Mr..
Oliver has taken into his combination.
Just what line OF argument Dir. era
vath viii make before The President. even
his clients do not know fully yet. He
came over from New York TO request the
opportunity, but 10 is now apparent some
of his clients in the combination wish he
had not done so. They DO not expect
him 60 make any plea 10 the President or
Secretary Taft for the contract to be
awarded TO the Macarthur Gillespie Com
pan.
The best informed on the case say the
rev company Oliver has formed cannot
stand the scrutiny of canal officials. and
that the rejection OF the Oliver bid seems
inevitable. There is much sentiment in
the South that the Knoxville man be
allowed 10 dig the canal. but the records
as to his financial ability and facilities
are not altogether clear. Serious ques-
hcauons OF Mr. divers new associates
for such a great undertaking
May Wait n Year.
Il has been suggested that the only
way oat Of the muGdle now is 10 reject
an the bids and that further reason
for doing so is that conditions on the
sthmus a year or so from now would
be far more favorable FOR another at
empt at securing bids Contractors admit
that the work is progressing we'll under
Chief Engineer Stevens. and that il is
impossible vet TOT dnN man, or set OF men, /
tc figure closely on the cost
When the engineers have matured their
plans know what kind of material must /
be- excavated, how far il must be hauled. 4
and where disposed Of. it viii probably /
be feasible to invite bids by the cubic /
yard, just as is done with most contract /
ng work. That Is not practicable now I
10 any great extent
Lieut. Col. William I. Marshall Corps /
u Engineers. I. s. A. who is i'm charge
IF the supervision OF certain improve 4
ueuts in New York HarbOr has informed /
he Federal Construction Company. of /
which Arson NJ. Bangs is tho controlling 4
actor. that it must show by February Is (
hat it intends 10 make gold on the BAY 4
Ridge and Red Hook contract, or the
work will be- taken away and either
given To some other contractor. after re-
advertisement, or completed by the gov
rnment
Arson NJ Bangs was associated with
William J. Oliver in the low bid for the
Panama Canal contract. The bid was re-
used because Mr.. Bangs was not salts
aCtOry to the government The work
N the Bay Ridge and Red Hook job has
'een running behind for many months
The contractors had three dTcdges at