The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-02-27

No great surprise was caused by the
Official announcement yesterday that all
the bids offered for the construction al
the Panama Canal had been rejected and
that the work would be intrusted TO the
supervision Of army engineers. This out
come Of the seeming uncertainty sur
rounding the disposition Of the bids had
been very generally expected.
COincident with the announcement
which was made by the War Department
a statement was issued from the White
House IN the form Of a letter from Presi-
dent Roosevelt to Chairman Shonts. ~
the Canal Commission, which told that
john f. Stevens had resigned as chief
engineer OF the canal and that DE would
be succeeded by Mai. George Washington
Goethals. Corps OF Engineers, L. s A..
who would be assisted BY Mai. David Du
Bose Gaillard and Mai William Luther
Sibert, both Of the Corps OF Engineers.
Mai. Goethals will, in addition to his
duties as chief engineer, succeed Theodore
p. ShOnts as chairman of the Canal Com
mission when the latter rctircs. on March
4. to accept place with the Inter-Metro-
politan Railway interests in New York.
Msjs. GaiIiard and Sibert also win be ap-
pointed members of the Canal Comms-
sion
Announcement was made also that sen
ator Joseph C. s Blackburn of Kentuckr.
whose term in the Senate will expire ou
March (, viii become Canal Commls-
soner.
Find the ISOLATION
The administration. or at least tha
President, believes that IN determining 10
intrust the construction Of the canal 10
the supervision of officers of the army
Engineer Corps, the solution of one OF the
chief difficulties connected with the great
waterway project has been reached This
determination, does not mean. however.
that the canal viii be dug under the
( direct superintendency of men employed
/ by the United States government and by
/ laborers hired and paid and machinery
owned directly b. the government In
! fact. the assertion was made this evening
/ IN a high authoritative quarter that thu
canal would probably be constructed
/ 10y private contract under the supervision
/ of army engineers.
Maj. Goethals is in favor or contracting
not only for labor, but for material. 10 is
quite likely therefore. that bids will be-
again invited for doing part al least OF
I the construction work Until Mai
Goethals has had = chance to study the
canal problem by personal visit 10 the
/ isthmus. the work viii he continued under
+ the existing arrangement Mai. Goethals
Z fr=-7fF
! be accompanied by Mats Gailiard and
/ Sfbert.
/ Considerable mystery surrounds the IN
/ expected resignation Of Chief Engineer
/ Stevens. There are unconhrmed stories
/ that President Roosevelt was dissatisfied
with him. but these are apparently dis
proved by statements made TO visitors
I by the President yesterday OF character
highly complimentary 90 AIr Stevens
supervision of the construction work.
Many Reasons Advanced.
It is said also that BIr. Stevens was at
outs with Chairman Shonts From the
/ hest available source Of knowledge the
/ information was obtained that even the
/ President did not know for certainty
why Mr.. Stevens wanted 10 quit tGe Office
/ of chief engineer. It was explained. as
!
nation. that Mr. Stevens felt that he had
| been criticised by certain members Of the
/ Senate at the time he appeared before
| the Senate Committee on Interoceanic
] Canals, and that this supposed criticism
I had ranked in his mind.
Another reason advanced was that Nj
stevens WIS dissatisfied because of thr
/ fact that he was receiving $4,000 q year.
while other engineers of lesser reputa-
ton and ability were getting much more
money under pleasanter surroundings
! From person IN the confidence or AIr
! Stevens il was learned that NJ. Stevens
/ had been dissatisfied with life on The
isthmus since last summer. and believed
! that for reasons of health and happiness
| it would be well for him to resign.
/ lie has not made any engagement to
work for any interests in this country
/ When he returns to the United States
/ Mr.. Stevens will make an extended visit to
/ Europe accompanied by Mrs Stevens
/ No official or private expression Of what
/ the President thought of the action of
/ AIR Stevens could be obtained at the
White House
Explains Rejection of Bids.
The letter Of President Roosevelt TO
! Chairman Shonts gives reasons for the
rejection Of the canal bids, and tells OF
/ the selection of Mai. Goethals to succeed
! Mr.. Stevens The letter follows.
/ "Sir: 1 have considered with much care
/ the question whether the commission
should accept the bids for the coRstruc-
/ ton of the Panama Canal under the pro-
/ posed contract, or should reject them ALL
There were two bids worthy Of consid-
| Grafton. The bid of the Macarthur Syn
dieate at f21a per cent was the only one
which came within the requirements The
/ Oliver and Bangs bid at SO per cent was
| rejected as not satisfying the specifica-
! tions of the invitation. Mr. Macarthur
and his associates not objecting and pre-
| ferring this course 10 an invitation for
new bids. mr.. Oliver was allowed to per
/ feet his bid with new associates and new
| financial responsibility; but this perms-
/ sion did not IN any way change the situ-
alton from what Il would have been, had
Mr. divers bid in its present form been
/ presented January i, the day fixed for
| receiving the bids Under the Invitation
/ for bids, the reserved power exists I'm the
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