Omaha daily bee., 1907-01-28
OLIVER TO DIG THE CANAL
Cficial Announcement Of the Award is
Made frem he White House.
MUST TAKE IN TWO OTHER CONTRACTORS
Successful Bidder Expresses Con-
ndence in His Ability to Comply
with Conditions Laid Down
by War Department.

WASHINGTON. Jan. H..-Following q
conference at the White House tonight It
was officialy announced that the contract
for building the Panama canal would he
awarded to william d. oliver. who. with
Anson NJ. Bangs, was the lowest bidder in
the recent competition. provided that within
the next ten days he associates himself
with at least two independent contractors
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 con-
firms the Associated Press statement OF last
Friday night. President Roosevelt then
took the position that since Mr.. oliver
had met all the requirements Of the gov
ernment, 1t would be unjust to reject his
bid of 575 per cent for the construction OF
the canal or even to require him to submit
a new bid for the contract
Department SugEested Bangs.
Mr. oliver had informed the president
that II was his desire to submit an inde-
pendent bid for the work and that when
the canal commission officials informed
him that 1t would be necessary to form
a partnership with some other financially
responsible contractor they even went so
far as to suggest that he enter into an
agreement with Anson M. Bangs of New
York City Mr.. oliver said that after re-
ceiving this suggestion from Chairman
Shonts he visited the War department and
was informed that Mr. Bangs would be
entirely satisfactory to the government.
Mr.. oliver told the president that with this
assurance as to the reliability OF MT.
Bangs he Immediately entered Into an
agreement with the New York contractor.
Powerful influences were brought to bear
on the president and Secretary Taft to re-
ject all bids and advertise for new pro-
posals, but the president insisted that Mr..
oliver should be given a reasonable time
in which to make a satisfactory arrange
ment to substitute some other contractor
or group of contractors to take the place
of Mr.. Bangs. At the White House con-
ference on Saturday night the friends of
the Macarthur Gillespie syndicate argued
that the contract figure should be increased
! to 8 per cent OF the total cost of construc-
| ton and the contract be awarded to oliver,
4 Macarthur and Gillespie. 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 1880 per cent OF the total cost,
| the figure mentioned in their original bid.
The president. Secretary Taft and the canal
commission officials then decided to award
the contract to Mr.. oliver. provided he
could make satisfactory arrangement with
at least two other financially responsible
| contractors.
Secretary Taft and .oR- Rogers, general
counsel to the canal commission. were in
| conference with the president for two
hours tonight and the whole matter was
again gone over. At the direction OF the
president, Mr. Rogers prepared the ofhclal
statement for the press.
oliver Confident of Success.
When informed OF the statement issued
by direction of the president, Mr.. divers
representatives tonight said:
There is absolutely no doubt about Mr..
oliver being able to fulhll the requirements
of the canal commission. There are now
at least twenty of the most responsible
contractors in the United States who have
expressed 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 tomorrow with proof of their
financial ability. Before entering into an
other. arrangement, Mr.. oliver wants to
know positively that the contractor he
chooses will be acceptable to the govern
ment."
The oficiaI statement. given out tonight,
follows:
AS a result Of conferences at the White
House, It was today announced by the
Isthmian Canal commission, that In view
of assurances that had been received from
Mr.. oliver and capitalists associated with
him, that Mr.. oliver was prepared to make
good his bid to complete the construction
of the isthmian canal at percentage of
1915 with organization of contractors
and with financial resources in full compli-
ance with the requirements In the invita-
opportunity to do so. Mr.. oliver has been
notified that within ten days he will be
required to associate with himself at least
two independent contractors whose skill
and experience, combined with his own,
shall cover the entire field of work to be
performed under the contract, and to or
ganlze a corporation for the express pur-
pose of CARRYING out the proposed contract
than s., 10000 shall be paid in cash and
81 10000 in the form OF solvent subscrip-
tions shall be available for the purpose
the remaining 100000 may be devoted &c
the purpose Of procuring a bond, re-
quired by the contract, or Of substituting
subject to the conditions OF the bond, cash
or current securities satisfactory to the
having been received that the financial
standing OF Mr.: Anson NJ. Bangs met tbs
re1uirsmssnts ,,ne Of the Invitation: by diree
as a participant in the bid filed by Messrs
Oliver and Bangs.
Next Lowest Bidders Satisfied.
| The privilege has been extended tc
Messrs. Macarthur and Gillespie, the only
remaining bidders whose bid has beer
, deemed worthy OF consideration, to eithel
withdraw their pending bid or to allow 4
to abide by the result of Mr. Oliver'I
efforts to make good his bid as herein out
} lined, then to be considered upon its merits
The other bids have been rejected becaus.
Informal and In the case of the highes
bid excessive as well.
: The foregoing action is taken I'm con
, formity with the expressed wish OF botl
Mr.. oliver and the Macarthur Gillespi,
syndicate that the contract should be le
without rebidding and in view of tn,
further statements OF the spokesmen OF tn
observation-disclosures company to the presi
dent that II the commission could close tn,
contract with a satisfactory and respon
sible association OF contractors at a rat,
as low as that proposed by Mr.. Oliver 1
should feel at liberty, 80 far as they wer,
concerned. TO do so.
NJ Ol4,,ar w.gfaa. Ur.o-.-f11-