The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-16
AMERICANS WILL BUILD CANAL.
FOREIGN COMPETITION FOR THE
CONTRACT ELIMINATED.
Changes in the Form OF Contract Which Is
to he Followed In Making the Award
Bond Reduces to 81. 900, 900
tai Liability Limited 10 s., 900 900.

WASHINGTON, Dec. 15.-Foreign COM
petition for the contract for the completion
Of the Panama Canal has been eliminated
by Secretary Taft, Chairman Shonts Of the
Isthmian Canal Commission, and Richard
r. Rogers, general counsel, who have been
busy for the last few days making a num-
Der of changes in the form Of contract W hich
is to be followed in making the aw ard for
the work.
An announcement OF the various changes
in the contract was made at the Isthmian
Canal Offices to-day. Some Of the changes,
it is explained, are merely alterations in
phraseology TO convey more clearly the
ideas set forth. 1t was because Of these
alterations that the opening Of the bids
was postponed from December IL to anuRry
II. The changes were the result Of repre-
sensations made by contractors who in
tend to bid and who desired more pro-
lection for themselves, especially with
reference to the possible change in the
scale Of a during the progress OF the
work.
Until to-day il was not known tina there
was any intention of refusing bids from
foreign concerns. As a matter Of fact
it was believed there would be a number
OF propositions from foreign contractors.
But IL has been decided that the COMPETE
ton will be limited TO Americans, the com
mission reserving the right to reject any
or all bids in case none is satisfactory,
and either throw open the proposal TO for
eign competition or proceed with the work
without a contract.
Chairman Shonts, in a statement made
this evening, outlines the other changes
as follows:
"To reduce the bond 10 g. 900 900 and to
limit the total liability Of the contractor
A. A.. Ice 80 NhA -n~oanfap a and raVOlIm y
otherwise payable to the contractor and
s. 900 600 in addition thereto.
ITO relieve the contractor from Tespon-
sibility for the use of defective materials, or
for the preparation FOR use OF the same, pro-
vided he has requested the Chief Engineer
In writing for the definite approval of the
materials or the preparation for Use thereof,
and the Chief Engineer after a reasonable
time fails to act upon such request.
ITO provide for a later change in the
estimated cost and time Of construction
as originally agreed to by the engineering
committee in case the plans and speciica-
tom for the construction OF the canal
shall be materially altered in any respect,
or IL il shall be made to appear TO the Presi-
dent of the United States that the estimates
are based on physical data so erroneous
as to materially AFFECT the estimated cost
and time OF construction, or that the
estimates have become substantially
inequitable by reason of the Intervention
OF an hcJ OF uod OF a puDllc enemy OF ioI
any other material cause which shall not
have been taken into account by the engi-
neering Committee in making their csti-
mate and for which the contractor is not
responsible.
1T was also provided that in case the
Government should decide to terminate
the contract when the contractor IL not in
default the contractor shall be paid the
cost Of the work performed by him 70 date
and $3.50 900 in addition TO such percentage
az may have been earned by him upon such
cost up to that time.
THE responsibility of the contractor
TO the commission for all injuries or dam
ages inflicted upon the plant, canal or it's
auxiliary works is limited to negligence OF
himself or I'M Of his employees or sub
contractors or the employees Of u sub
contractors"