The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-10
TERMS OF CANAL CONTRACT.
EXPECTED THAT MUCH TINE AND
MONEY WILL BE SAVED
by Allowing n Private Concern 20 DO In
Work Of Construction On the Isthmus
Labor Problem Chief Reason for the
change Rigid Restrictiens On RlAder..

by Allowing n Private Concern 20 DO the
Work Of Construction on the Isthmus
q Problem Chief Reason for the
ChanEe Rigid Restrictions On Rtader..
WARRINGTON, OCT. a.-The Isthmian Canal
commissions recently evolved scheme OF
having the actual work Of Panama Canal
construction o by contract with a pri-
vate concern was made public to-day.
The plan is complex, although not new to
contractors WIG have had to do with other
gigantic undertakings, but Chairman Shonts
and those who are associated with him, as
well ~ President Roosevelt, are very much
In favor Of ii. INC sreEoertain that it will
not only materially lessen the total cost Of
the canal, but it will hasten the compile
ton OF the great waterway. To Just how
great an extent the cost and time Of con-
struction will be decreased no one is entirely
prepared to say, but it il certain in the
minds OF those who have worked out the
form Of contract upon which will be based
invitations for bids that it will be to the
very great advantage Of the Government
to adopt the plan. That this will he done
there il no doubt, and all that remains is
a matter Of form and issuance Of executive
orders.
In making announcement OF the change
OF policy from that of building the canal
by the Government to the private contract
plan, the Cana Commission does not in
any way indicate that il has failed to ac-
complish its sole mission. the building Of
the canal in the shortest possible time at
the least possible cost, but, on the other
hand, it is said that the action which has
been taken has always been contemplated
as being the cheapest, most practicable
and best VIZ Of getting the great water
way through the Isthmus of Panama.
1t is not that the commission has found
the task impossible. OF that il could not
finish the work along the lines on which il
was started but that under the new arrange
ment the work can be accomplished cheaper
and quicker.
The greatest reason for the change.
although there are many, is found in the
labor problem. This has vexed the COM
mission more than anything else. Labor
for the lower forms of work has been diff
cult to procure, although many expert
ments have been made, and the efforts
OF the commission to take TO the Isthmus
men capable OF directing the common
laborers in an efficient fashion and 10
perform other duties of a higher nature
have brought equally unsatisfac tory re-
suits. In the case Of a private contractor,
or at least with one Of the character and
resources which the commission will re-
Quire, the matter of labor will be not onlv
taken OF the hands Of the Government.
but the problem will he more easily solved
by this contractor, who will already have
at his command a tremendous working
force of tens Of thousands OF men skilled
in the very class Of work which must be
accomplished in Panama.
While the construction work will be let
out by contract, the Government of the
lnlted States does not relinquish one bit
OF authority or responsibility; instead il
retains much OF the whole task, everv-
thing, in fact, save the actual construction.
This falls to the contractor, with the Gov
ernment's engineers supervising.
The commission will make the contract
with one individual or concern. While
there will be a single contracting mpan
IL will be composed of several reputabIe
concerns, by the terms of the contract.
each of which will be especially expert in
some particular branch OF the work to be
done in Panama. The commission will take
into careful consideration the ability OF
the bidders to accomplish the task laid out.
The companies presenting bids must rave a
capitalization, over all debts and incum-
branoes, Of s., 900, OO0, and will be Obliged
TO present a certified check OF $500, 900 with
each bid The successful bidder must
furnish a bond OF 81, 200, 900.
The compensation Of the contractor will
be on the percentage plan, and upon this
OASIS the Dlu5 viii De awarded. each
bidder setting forth for how small a per-
centage of the total cost of the work he will
assume the task. To the lowest bidder.
details OF ability to perform the contract
being considered, the contract will be given.
Then the total cost, upo2 which the COM
pensation OF the contractor will be based.
will be estimated by a board OF engineers
two Of whom will be appointed by the
successful bidder and three by the Govern
ment. The chief engineer Of the commits
sion will be one OF the Governments APP
pointees, and will act az chairman Of the
committee. The committee will have. saw.
ninety days, or at the utmost six months,
10 prepare an estimate OF the cost Of the
work outlined by the commission.
Mr.. Shonts consulted with dozens of
engineers and contractors before finally
adopting the form Of contra ct which has
been announced, and there IL now little
doubt that several bids will be submitted
to the Canal Commission for the work of
construction.
The competition ia not limited TO Ameri-
can bidders, and If foreign firms desire
to submit bids to the Canal Commissio n
they will be received and considered upon
the same basis az bids handed in by strictly
American firms. There il one concern
likely TO make a bid which is Interested
with English contracting companies. This
company will submit a bid probably as an
American concern but with an associated
company which il English
~ n " blhAh1iAllNNlIk 10 oeCTplATY |
Of War Taft the form of contract which |
has been drawn Chairman Shonts says in
part:
The question may be asked. WHY
does not the commission gather together
experts in each ranch Of the work and
with them as heads create its " organiza-
ton and do the work by days labor II
the elements OF time and COST did not enter
20 vitality into the undertaking the com
mission might do this, hut because Of the
unprecedented and greatly extended in
dustrial activity Of the times and the oon-
sequent violent competition for oil classes
OF Euperintendents, forepen, sub-con-
tractors, skilled mechanics and even or
binary laborers IL would take the com
mission years to secure men and build up
departmental oonst rtICtion organizations |
which would equal in Efficiency those now
controlled by the leading contractors OF
the United States. II, therefore, the com-
mission by sssociatinR with il the hest
trained construction men available can
receive the immediate benefit Of the exist
ing organizations which these men con-
wA ed which they have spent years in
egFeaAAAm and by reason Of their assist
Il