The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1906-10-13
PANAMA. CANAL Commission IS.
SUES INVITATIONS.
Whole of the Work, It l. Speci-
fled. Must Be Undertaken By
One Corporation and Work
Will Be Under Government
Supervision.

canal have been issued by the can8l
commission, and the form of the con-
tract under which the work is to be
done has been made public by Chair
man Shonts, who also gave out letter
written to the Secretary Of war, Civ
ing the commissions reasons for con-
tracing the work.
The contract provides that each bid
der must undertake the entire work of
construction. No bar will be offered
to corporations associating in the un-
dertaking, but they must be legally
organized into single body with
which the government can deal. Bid
ders will not be considered who do not
have available capital of $4,000, 600.
A certified check for 5000, 900 is re-
quired with each proposal, and bond
of So, 600, 600 will be required from the
successful bidder.
Not Limited to Americans
The bidding is not limited to Amer
lean contractors. All proposals are to
be in before noon of December IL,
when they will be opened. Proposals
are to be expressed in terms of per-
centage upon the estimated cost of
construction, which is to be fixed by
board of five engineers, three repre-
senting the government and two rep
resenting the contractor. The chief
engineer of the canal commission is to
be chairman of the engineering board.
The engineering board will also esti-
mate a reasonable time for the COM
pletion of the canal and will agree up
on system of premiums and penalties
for the contractor according as the
work is completed within on beyond
the estimated cost and time. All the
government plant for actual construc-
ton work, including the railway, is to
be placed at the disposal of the con-
tractor and is to be maintained by the
government.
The contract specifies that the COM
mission is to retain control of all engi-
neering work in connection with the
construction of the canal, also munich
pal engineering, the police, sanitary.
hospital and commisary departments,
mess houses, quarters, the construc-
tion and maintenance of buildings, op-
Grafton of the Panama railway, an
auditing department, to which con-
tractors accounts are to be open, and
department of materials and sup
plies.
Sixty days after the signing of the
contract actual work is to begin on
the isthmus, and the contractor is to
take over all employees on the isthmus
which the commission does not wish
to retain. No American employees are
to work more than eight hours.
Chairman Shonts defends the per-
centage system of payment in his let.
ter to Secretary Taft as follows:
The Percentage Plan
''This plan is being employed by the
oldest. largest and most successful
corporations in the country.
''The government will get the ben
eft of the combined efforts of the best
and most experienced contractors in
the world, each in charge of depart
ment in which he is a specialist and
cooperating with other specialists.
1.-THE government will secure the
cooperation of these powerful inter-
ests in keeping mechanics of all
classes.
"The plan offers every incentive for
speedy and economical construction by
penalizing extra time and cost and re-
warding better than contract perform
ance to either.
'By retaining control of work and
keeping strict supervision through it's
engineering force the government
will protect itself against cheap and
family c0nafrnntinn ,,