The San Francisco call., 1907-01-28
Cont TRACT ON
PANAMA CANAL
William D. Oliver Awarded
Work of Completing the
Big Waterway at Isthmus
BANGS IS ELIMINATED

n
conference at the White House tonight
IT was officially announced that the
contract for completing the Panama
canal would be awarded to William
ID. Oliver, who with Anson NJ Bangs
was the lowest bidder In the recent
competition, providing that within the
next ten days he associntes himself
with an independent contractor whose
skill and experience, combined with
his own, shall cover the entire field
of the work TO be performed under the
contract.
The official announcement tonight
confirms the Associated Press state
ment of last Friday night. President
/ Roosevelt then took the position that
since oliver had met Aall the require
ments of the Government 1T would be
unjust to reject his bid of 6.75 per
/ cent of the construction of the canal,
or even to require him to submit a
new bid for the contract.
Oliver had informed the President
/ that it was his desire to submit an
independent bid for the work. and
that when the Canal Commission ofh-
cials informed him that it would be
necessary to form a partnership with
Ksome other financially responsible con-
4 tractor. they even went so far as to
suggest that he enter into an agree
ment with Anson M. Bangs of New
York City
TELLS OF ASSURANCE
oliver said that after receiving this
suggestion from Chairman Shonts he
/ visited the War Department and was
! informed that Bangs would be entirely
satisfactory to the Government oliver
told the President that with this as
| 10 of
he Immediately entered into an agree
ment with the New York contractor.
I Powerful influences were brought to
| bear on the President and Secretary
Taft to reject all bids and advertise
for new proposals, but the President
insisted that Oliver should be given
! reasonable time in which to make a
satisfactory arrangement to substitute
some other contractor or group of con-
| tractors to take the place of Bangs.
At the White House conference on
Saturday night the friends of the Nc
Arthur Gillespie syndicate urged that
the contract figure should be increased
to per cent of the total cost of con-
/ struction, and that the contract be
awarded to Oliver. Macarthur and Gill
lespie This suggestion. however, did
not meet with the approval of the
New York firm, who insisted that they
could not undertake the work for less
than 1875 per cent of the total cost. the
/ figure mentioned in their original bid.
AWARDING OF CONTRACT
The President, Secretary Taft and
the canal officials then decided to
/ award the contract to Oliver provided
/ he could make satisfactory arrange
ments with at least two other finan-
cially responsible contractors.
Secretary Taft and r. R. Rogers.
/ general counsel to the Canal Commits
sion, were in conference with the Pres
! ident for two hours tonight. and the
I whole matter was again gone over. At
| the direction of the President, Rogers
prepared the official statement for the
press.
When informed of the statement is
sued by direction of the President, Oil
ver's representatives said tonight:
There is absolutely no doubt about oliver
being able to fulhll the requirements of the
twenty of the most responsible contractors in
the United States who have expressed will
at the figure mentioned in his original bids
These names will be submitted to President
Roosevelt with proof of their financial ability.
Before entering into another arrangement Oliver
wants TO know positively that the contractor he
chooses would be acceptable to the Govern
STATEMENT ISSUED
The official statement given out to-
! night follows:
As a result OF conferences at the White
House 1t today announced by the Isthmian
Canal Commission that In view OF the
and capitalists associated with him that IL Mr..
Oliver prepared 10 make good his bid to
/ complete the construction of the isthmian canal
at percentage Of six and seventy-hve hun
dredths. with an organization of contractors
and with financial resources in full compliance
with the requirements of the Invitations for
bids, he will be given an opportunity TO do So
Mr.. Oliver has been notified that within ten
douc ho xrfl ho trad 70 efofa xrfb
! himself at least two additional contractors whose
experience and skill, combined with his own
! formed under the contract, and to organize a
| corporation for the express purpose OF carrying
ont the proposed contract with capital of
So 600 0O0 of which not less than 81, SOC. 900 paid
in cash and 81 500. 600 in the form OF solvent
subscriptions, shall be available for the purpose
/ OF carrying out the contract and Of which the
I remaining 81 600 may be devoted TO the
purpose Of procuring bond, as provided by the
whole or in part and subject to the conditions
Of the bond cash or current securities salts
factory TO the commission. Satisfactory assur-
ances not having been received that the financial
standing of Bangs met the requirements of the
invitation by direction of the President, he
! has been rejected as a participant in the bid
hled by Messrs. oliver and Bangs.
The privilege nas been extended TO Macarthur
and Gillespie the on;y remaining bidders whose
/ bid has been deemed worthy of consideration, to
either withdraw their pending bid or TO allow it
make good his bid as herein outlined The
| other bids have been rejected because informal
and. In the case OF the. "shest piu, excessive
! as we'll
The foregoing action is taken in conformity
with the expressed wishes OF both Oliver and
| the MacArthur-Gi gillespie syndicate that the con
4 tract should be let and In view of the further
statements of the spokesman of the Macarthur
| Gillesnie Company to the President that the
! conn mission could close the contract with a
1 satisfactory and responsible association of con
/ tractors at a rate as low as that proposed
! bv Mr. oliver II should feel atliberty, so far
! as they were concerned, TO do So
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