The Birmingham age-herald., 1908-10-10
Colonel GOethaIs ReSents StatH-
 nent In Investigation
DENIAL OF ANY WRONGDOING
William A. Brothers Accuses a Witness of Perjury In the Inquiry Into the Charges of Favoritism In
 Awarding Canal Bids.

New York October 9-Col. George w. Goethals general director of the Panama canal work, was placed on the witness stand today in an inquiry that is being conducted before Inspector General Gar lington, as the result of charges of dis crimination and favoritism in awarding cable way contracts for the canal by gov ernment officials
 Colonel Goethals took the stand toward the end of a session replete with sensa- tional incidents William A. Brothers, who brought the charges, had publicly ac- cused Spencer Miller, a representative of tho Underwood Manufacturing company, of perjury, and had followed this aecusa- ton by the charge that the inquiry was not being conducted on fair lines, saying the witnesses for the defense were the only ones given a hearing.
 "I have been charged with false state ments by MT Brothers, said Colonel Goethals. T am also practically charged with corrupt practices by Senator Slater, MT. Wood and and MT. Brothers. in- tend to answer these charges fully, but the matter will not be taken up in the manner it should be taken up until to- morrow when Colonel Seiberts, who is perfectly familiar with the entire situ- ation, arrives.
 ''I knew nothing about this inquiry un- cl I came up from the isthmus to taks | a rest. When I arrived in New Orleans I was hit in the face with the charges. I have had to get my information from | +11 lnfI I xyfI1 he able to prove the absolute lack of founda- l ton for any claim that there has been favoritism shown in the bidding for the cable way system on the isthmus." , Colonel Goehtals said that it had been intimated that there might be a contro- versy over the awarding of the contract it it was not given to the Underwood com- pany.
 Trouble In the Air.
 ''1 saw that trouble was in the air, '' i he said "so I turned the matter of the | bids over to Major Seiberts, H. H. Rous- | seau and such other persons as they might | call in"
 Colonel Goethals read letters from MT. Rousseau reporting the hearing given to bidders and recommending another adver- l Using for bids. The bidders were notified that no award had been made, the letters 1 showed but that the bids would not be | formally refused until Spencer Miller had | been given an opportunity to explain a | matter in connection with the Underwood ] company bids. After an interview with 1 MT Miller, Colonel Goethals says, MT. Rousseau recommended that it would be | to the advantage of the government if the 1 Underwood company could be granted the 1 contract. This was not satisfactory, Col onel Goethals testified, so all the bids
 were rejected.
 If an attempt has been made to proye collusion between the Underwood or any othe company and myself, l deny any foundation for it,' said Col l onel Goethals. We are not expert cable way men and are not eXperI in many other lines. When we want to get materials we consult, as far as possible, business men who are ex- perts.''
 The charges that the specifications | advanced in the second bid had limited | the bidding to two companies was ! then taken up by Colonel Goethals, and he named nine other companies which he said were competent to be i bidders.
 Called a Liar
 If any one can show me that 1 have 1 discriminated in favor of the Lider- l wood company I want to be shown" " | continued Colonel Goethals. "A alter 1 I want placed on record is the visit to my office of MT. Wood of the New York Cable Way and Engineering company l MT Wood asked if 1t would be of any use for his firm to bid on other works He said he had been told on the isth- | mus that his firm could never do any work down there l told him that his l informant was a damned liar and in | case his informant came to my office 1 would tell him the same thing. After stating. in behalf of the New York Cable Way and Engineering com pany that there never had been any question raised against the integrity of either Colonel Goethals or Mai jor Sieberts Senator Slater asked Colonel Goethals if after the first bids had been opened he had expressed prefer ence for the Lakewood company. Col onel Goethals replied that the letter was in evidence and showed that he had not.
 Purpose of Inquiry. The inquiry by General Darlington, inspector general of the army. has been in progress In the army building here for several days. It was begun for the purpose of looking into the merits of the charges of discrimination by the canal commissioners in awarding a contract for cable ways on the isthmus. which had been preferred by William A Brothers MT. Brothers. who is president of the Balance Cable Crane company of New York. alleged that the isthmian canal commission in issuing | specifications for cable ways had dis criminated against his company, and that improper methods had been em- ployed in preventing him from receiv- l ing the award.
 | MT. Miller, who Is chief engineer of l the Underwood company, was on the witness stand yesterday. and he was recalled when the inquiry was re- l stunned today. He had told of being in | formed when on a visit to Panama | that bids were to be asked for , cable l ways for use on the Gatun locks. Did you ever offer me any money