The Birmingham age-herald., 1906-10-10
Big Waterway to Be Constructed
 By Private Enterprise
UNCLE SAM TO SUPERVISE
Shonts Thinks the Plan Is Great and Believes Contractors Can Do the Work More Successfully
 Than Government.

Washington October 9.--lnvitations for proposals to complete the Panama canal were issued today by the canal eomnis- sion, and the form of contract under which the work is to be done was made public by Chairman Shonts who also gave out a letter written 10 the secretary of war. glvins the comm ssion's reasons for contracting the work. The contract rrovdes that each bidder must undertake the entire work of construction. No bar will be offered to corporations associating in the undertaking. but they must be legally organized into sing le body with which the government Cad deal Bidders will not be considered wno do mol have [, capital of 5000, Oo0. A bo"d of s210GNO is required with each proposal, and bond of s5ooo,oOO will be required from ihe Sc- cessful bidder The bidding Is not limited to Anetican contractors An proposals Ire to be in before noon of December |, when they will be opened.
 Proposals are to be expressed i.i terms of percentage upon the estimated cost of construction, which Is to he fixed by q board Of five engineers
 The chief engineer of the canal eommis- sion is to be chairman of the engineering board.
 Will Estimate Reasonable Time.
 The engineering board will also estimate a reasonable time for the completion Of inc canal, and will agree upon system Of premiums and penalties to be handed t3 the contractor according as tho work Is completed within or beyond the est- mated cost or time.
 The contract specifics tha1 the eomm,s- sion Is to retain control of all ensireer- l ing work in connection with the eonslrue- ton of the canal, also municipal en- gineering, the police. sanitary, hospital and conmissary departments. mess houses, quarters, eonstruc .icn and main tenance of buildings. operation of the Panama railroad.
 Sixty days after signing the contract ac- tual work Is to begin on the isthmus No American employe is to wolk more than | eight hours.
 Chairman Shonts defends the percentage system of payment in his letter to Secre- tary Taft as follows:
 Shonts Defends System.
 This plan is being employed increasing l ly by the oldest. largest and most suc- l cessful corporations in the country. The government will set the benefit of the combined efforts of the best and most experienced eontracto~s in the wosld each in charge of a department in which 1 he Is a specialist and cooperating with other specialists.
 "rhe government will secure the CO., | operation of these contractors in keeping mechanics of all classes.
 By retaining control of he werK and exercising strict supervision through It's engineering force, the g" ernmelt will protect itself against chelp or faulty 1 work
 "rhe contract will be more fiexibIe Fin l ally d termination of the contract should | 1t become necessary will be less disaS- trous to the contractors. while resumption of work should be easier 10 the govern ment 1n account of It's close relations 1 thereto" I | The canal under the contract system can be constructed with better results than 1t can be done by ihe government, l Chairman Shonts says. It would take the commission years to get men ard build up depai tments equal to those now con- troled by the leading contractors, accord Ina fba