The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1906-10-18
CANAL LBYCONTRACT
Invitation for Bids is Sent
Forth by Uncle Sam.
A MONOPOLY is GIVEN
Only Men or Corporations With Mil
lions of Cash viii Be Considered.
Control of Engineering Work
to Be Retained.

Invitations for proposals to COM
plete The Panama canal were issued
at Washington Tuesday the canal
commission and the form of contract
under which tie work is to be- done
was made public by Chairman Shonta
who also gave out a letter written to
the secretary Of war, giving the COM
missions reasons TOR contracting tho
work. The contract provides that each
bidder must undertake the entire work
Of construction. No bar will be Of
tered to corporations associating in
tie undertaking, but they must be
legally organized into Single body
with which the government can deal.
Bidders will not be considered who
do ret have capital of s5,000,000. A
bond OF 100000 is required with each
proposal and bond of s3,OO0,000 will
be required from the successful bid
der. The bidding is not limited to
American contractors. All proposals
are to be in before neon Of December
-, when they will be opened.
Proposals are 10 be expressed in
terms Of percentage upon the esti-
mated cost Of construction, which is
to be fixed by board Of five engt-
neers.
The chief engineer of the canal COM
mission is to be chairman Of the en-
gineering board.
The engineering board will also es-
innate a reasonable time for the com.
Fiction Of the canal and will agree
upon a system Of premiums and pen.
alties to be handed to the contractor
according as the work is completed
within or beyond the estimated cost
or time.
The contract specifies that the COM
mission is to retain control Of all en-
gineering work in connection with
the taxation of the canal, also munic-
ipal engineering, the police, sanitary,
hospital and commissary departments,
mess houses, quarters, construction
and maintenance Of buildings opera
ton of the Panama railway.
Sixty days after signing the con-
tract actual work is to begin on the
isthmus. No American employee is to
work more than eight hours.
Chairman Shonts defends the PER
centage system Of payment in his let
ter to Secretary Taft as follows.
"This plan is being employed in
creasingly by the Oldest, largest and
most successful corporations in the
country.
"The government will get the bene-
fit Of the combined efforts of the best
and most experienced contractors IN
the world. each in charge OF a depart
ment in which he is a specialist and
cooperating with other specialists.
"The government will secure the
cooperation Of these contractors IN
keeping mechanics Of all classes.
"By retaining control OF the WORK
and exercising strict supervision
through its engineering force, the
government will protect itself against
cheap or faulty work.
"The contract will be more flexible.
Finally termination of the contract
should it become necessary, will be
less disastrous to the contractors
while a resumption of work would De
easier to the government on account
of its close relations thereto"
Tie canal, under the contract can
be constructed with better results
than It can be done by the govern
ment, Secretary shonts says. 1t Woula
take the commission years to get
,oen and build up departments equal
r. those now controlled by the lead
ino contractors, according to the let
Ter