Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-10-10
WILL YARD CONTRACT
PROPOSALS FOR DIGGING THE
CANAL ASKED.
Chairman Shonts' Reasons for Perfer.
ring the Plan to Construction
by the Government.

Invitations for proposals to complete the
Panama canal have been issued by the
canal commissioners and the form of con-
tract under which the work is to be done
was made public by Chairman Shonts, who
also gave out letter written to the Sec
rotary Of War. giving the commissioners
reasons for contracting the work.
The contract provides that each bidder
shall undertake the entire work of con-
struction. No bar will be offered to cor
porations associating in the undertaking,
but they must be legally organized into a
single body with which the government can
deal. Bidders will not be considered who
do not have available capital of $4,000 900.
certified check for 100000 is required
with each proposal and bond of $3,O0O,O00
Will be required from the successful bidder.
The bidding is not limited to American
contractors. All proposals are to be in be-
fore noon of December II, when they will
be opened. Proposals are to be expressed
In terms of percentage upon the estimated
cost Of construction, which is to be fixed
by board of five engineers. three rep
resenting the government and two repre-
senting the contractors. The chief engineer
of the canal commission is to be chairman
of the engineering board. The engineering
board will also estimate a reasonable time
for the completion Of the canal, and will
agree on system of premiums and pen
alties to be paid to the contractor accord
ing as the work is completed within or be-
yond the estimated cost and time. All the
government plant for actual construction
work, including the railway, is to be placed
at the disposal Of the contractor and is to
be maintained by the government.
Commission Retains Control
The contract specifies that the commits
sion is to retain control of all engineering
work in connection with the construction
Of the canal. also all municipal engineer
jpp he tai
missary department. mess houses. quar-
tiers, construction and maintenance of
buildings, operation of the Panama rail-
way and auditing department to which con-
tractors accounts are to be open; and
department Of materials and supplies.
Sixty days after the signing of the con-
tract actual work is to begin on the 18TH
mus, and the contract Is to take over all
employees on the isthmus which the COM
mission does not wish to retain. No Ameri-
can employe is to work more than eight
hours.
Chairman shonts defends the percentage
system Of payment in his letter to Secre-
tary Taft as follows:
This plan Is being employed increas-
ingly by the Oldest. largest and most sue
cessful corporations in the country.
1.-The government will get the benefit of
the combined efforts of the best and most
experienced contractors in the world, each
in charge Of department In which he
is a specialist and cooperating with other
specialists.
The government will secure the co-ope
ration of these powerful interests in me-
chanics of all classes.
..The plan offers every incentive for
speedy and economical construction by
penalizing extra time and cost and reward
ing better than contract performance as to
either.
by retaining control Of the work and
exercising strict supervision through Its
engineering force the government will pro- |
tect itself against cheap or faulty con-
struction.
The contract will be more flexible. The !
time and cost Of completing the canal as
estimated will, in all probability, be re-
duced by the application of new principles |
which will be discovered the work pro- |
crosses. Finally, a termination of the con-
tract, should it become necessary, would !
an effective resumption Of the work would |
be made easier to the government, owing |
to it's close relations thereto
Why a Contract is Preferred.
In support of the commissions position |
that the canal can be contracted to |
greater advantage than 1t can be built by |
the government, Mr.. Shonts says that be- |
cause Of the unprecedented and greatly |
extended Industrial activity Of the time, !
and the consequent violent competition for !
all classes of superintendent, foremen, !
subcontractors, skilled mechanics and even |
ordinary laborers, it would take the COM |
mission years to secure men and build up |
the departmental construction organiza- !
lions which would equal in efficiency those |
now controlled by the leading contractors |
of the United States.
Chairman Shonts says that the commits
sion carefully considered letting he work
in sections to separate contractors, and de-
cided that complications would arise which
could not be overcome In case this plan
were adopted. The letting Of the work 10
one contractor on a basis of unit prices
was also considered, and was believed by
the commission to be plan which would
be more expensive than the percentage
system.
Chief Engineer Stevens Of the canal COM
mission has reported that the excavation
of pa ,S44 cubic yards in August, and 1885,,
600 in September, in the Culebra cut, ex
ceeded in each month, any previous month.
pP no Don