The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1907-01-29
CANAL CONTRACT GOES TO
OLIVER AND ASSOCIATES
Bidder Must Take On Two Others
and Furnish $5,000,000.
MATTER REGARDED AS SETTLED
Contract For Building Panama Canal
Awarded to William j. Oliver,
who Was The Lowest Bidder in
the Recent Competition.

washington, D. C.-After o long
conference at the White House be-
tween President Roosevelt and Secre-
tary Taft it was decided that William
j. oliver, Of Knoxville, Tenn, be Civ
en- the contract for building the Pan
ANA Canal if he can form a combina-
ton with two reliable contractors
within ten days and raise $5,000,000
capital, S1,50o,00O to be in cash,
E$1,50O,O00 in solvent subscriptions
and $2,O00,0OO in the shape of a
bond.
Arson M. Bangs, the partner of
Oliver in this enterprise, was rejected
as a participant in the bid filed t.
them, as satisfactory assurances were
not received by the Government as to
the financial standing of Bangs. The
fact that he Is in arrears on three
contracts with the Government and
that he had business relations with
Greene and Gaynor in the Savannah
contract, which resulted in sending
Captain Carter to the penitentiary,
also was responsible for the elmlna-
ton of Bangs.
William j. Oliver said that he
would comply with the requirements
of the Government within the speci-
fed time, but he would not state
with whom he expected to make a
business connection. There are strong
reasons for the statement that he will
not enter into an arrangement with
the MacArthur-G Gillespie Company,
but will form partnership with
other contractors.
1t was agreed by Mr.. Oliver, a rep
resentative of the MacArthur-Gille
pie Company and the Secretary of
War that there should not be any re-
advertisement for bids. If Oliver
fails to form the combination speci-
fed by the Government the bid of the
Macarthur Gillespie Company and
that of Oliver will be considered on
their merits. The MacArthur-Gilles-
pie bid was 1875 per cent, while that
of Oliver was 6.75 per cent. of the
cost of construction. None of the
other bidders will be considered.
There has been strong sentiment
on the part of the President, Secre-
tary Taft and other Government Off
cials in favor of the MacArthur-Gil-
lespie Company. In the event of the
failure of Oliver to fulfill the require
ments stipulated, an effort will be
made to induce the MacArthur-Gilles-
pie Company to reduce its bid. 1t is
believed an arrangement satisfactory
TO the Government can be made.
At the White House conference the
friends of the gillespie
syndicate argued that the contract
figure should be increased to nine
per cent. and the contract awarded
to Oliver, Macarthur and Gillespie
The 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 1880 per cent, their original
bid
Mr.. divers representatives said:
There is absolutely no doubt about
Mr.. Oliver being able to fulfill the re-
quirements of the Canal Commission.
There are now at least twenty of the
most responsible contractors in the
United States who have expressed a
Willingness to join Mr.. Oliver in the
work of constructing the canal at the
figure mentioned in his original bid.
These names will be submitted to
President Roosevelt with proof of
their financial responsibility. Before
entering into another arrangement,
Mr.. Oliver wants to know positively
that the contractor he chooses will be
acceptable to the Government.