The Birmingham age-herald., 1907-02-27
Accepts Resignation of Chief Engineer Stevens, Who Is Of-
 tered Bigger Pay Elsewhere
PROGRAMMES CORNERSTONE
 SHONTS QUITS THE PANAMA
Senator Blackburn of Kentucky and Three Army Officers Are Members of the New Commission-They
 May Recommend Contracts.

Washington, February 26.-By an order addressed to the isthmian canal commits sion today, President Roosevelt, as far as 1t lay in his power under existing law. transferred to the engineering branch Of the army the responsibility for the fur ther construction of the Panama canal. He also in the same order, which took the form of a letter addressed to the chairman of the commission, Mr. Shonts, himself about to retire from all. connec- ton with the enterprise, formally record- ed the abandonment, for the present att least, of the project of having the canal work done by contract OH the percentage system. Another feature of the document was the announcement of the resignation of Joseph F. Stevens as engineer in charge of the canal construction.
 Shonts May Resign Today.
 Mir. Shonts is in New York, where he will tomorrow preside at meeting of the directors of the Panama Railroad com pany, of which he is president, and will 1t is expected formally resign that office then.
 
 shall be an entire reorganization of the commission, with three army officers of the regular corps it's leading members, yho are to have charge Of the engineering features of the canal work. The chair man and engineer-in- chief of the commits sion will be Maj. G. w. Geothals. and his associates will be Maj. D. Dubois Gail ard and Maj. William l.. Sibert, to rank f,, II off a comparatively young, ambitious and en- .h seiia members of the col -r----- ------i---l The reorganization is to becon, --~f--, fective immediately upon the confirmation and retirement of the old commission. Senator Joseph C. S. Blackburn of Ken lucky, who retires from the United States Senate on the 4th of March, is to hs made a member of the re-organized commission. The nominations of the present commis- sion now pending before the Senate in- cude Messrs. Shonts, Stevens, Haines, Endicott. Herrod Gorgas and Jackson Smith. Their confirmation is desired in or der to remove all doubt as to the legality of certain acts they have performed in connection with the making of contracts.
 Two Vacancies. The retirement of Messrs. Shonts and Stevens will leave but two vacancies, so that there will be two more retirements necessa~N to make way for three army of- ficers and Senator Blackburn. As he told his callers today, the President is de- termined that the work on the canal shall proceed continuously and thoroughly, and the temporary "dislocatons" which may come as a result of the resignations Of higher officials will not be allowed to in- terfere with tine progress. The President is unaware of the specific reasons which have been influential in prompting Mir Stevens, resignation. It surprised him very much, for as late as the middle of December, when he was here, MT. Stevens made no mention of his wish to retire in the near future. It has been known however that Mir. Stevens has been stung very much by criticism aimed at him in connection with canal work and he has been disposed to com plain somewhat about them. Some or fcial criticism came out during the hear ings before committees of Congress. The salary question is also said to have had an important bearing on his retirement.
 Will Get Double Salary.
 It is understood that MT. Stevens is leaving the governments service to ac- cept a position in connection with a great engineering enterprise in this coun- try at an annual salary more than dou- ble that he now receives from the gov ernment. His friends contend that he has been d year and half personally with the work and removed all doubt as to the
 
 Panama canal in accordance with the plans on which the work Is now proceed ing. The organization of the forces on the isthmus, they say, is excellent, and the President in his letter pronounced his satisfaction.
 Mr. Stevens is said to believe that he can now terminate his connection with this great enterprise without in any way jeopardizing its success.
 For several weeks it has been rumored here that Mr. Stevens was dissatisfied with the plan of letting the canal worK out by contract, but as explained by a member of the cabinet today, MT. Stevens really proposed to the President the adoption of this method of constructing the canal. One of the reasons alleged by the President for abandoning the project was that it's author was about to with draw from all connection with the canal work.
 May Give Contract.
 The probability is that the administra- ton may determine to give out the work to be done at the isthmus under con tract under the general direction of the army engineers After Major Goethals and his army associates have been at the isthmus a sufficient time to become fully acquainted with the work to be done, they will submit a report on the situation to the President. If they feel that the work can be better done by con- tract than under the system now in vogue, the question will again be consid- cred by the President and as he says in his letter, the services of the same high-class contractors whose bids are now rejected, or others of similar stand ing may then be invoked in the interest of economy and speed.
 Presidents Letter.
 The explanation of the Presidents req son for making the sweeping changes to- day, and in refusing all bids so far offered for building the canal. are set out in the following letter to Chairman Shonts from President Roosevelt:
 .'Washington. February 26. 1907
 "Sr-I have considered with much care the question whether the commission should accept one of the bids for the 
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