Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-01-20
MUCH INTERESTED
Bids for Building Railways in
Philippines Opened.
NO COMPETITION IN LUzoN
Proposals Not Submitted for Leyte
and Samar.
AWARDS NOT ANNOUNCED YET
Several Days VIII Be Required for
the Consideration Of the Offers
Details Of the Conditions.
NO COMPETITION IN LUzoN
AWARDS NOT ANNOUNCED YET

Bids were opened at the bureau of insu-
lar affairs of the War Department today
for cencessionary contracts or grants to
be made by the Philippine government for
the construction, maintenance and opera
ton of railroads in the Philippine Islands.
as provided by act of Congress. Circulars
inviting proposals for these grants were
issued during the summer, and bids were
opened December Is last, but owing to de-
partureS from the terms proposed all bids
then submitted were rejected and new
proposals were invited. under modified con-
ditions.
Much interest was manifested in the bid
ding. as shown by the number present.
although there was no competition for the
lines In Luzon or In the three isalnds for
which proposals were submitted. Governor
Wright and Commissioner Forbes OF the
Philippine government were present, while
the bids were opened by Col. Edwards,
chief of the insdlar bureau. 1t was stated
after the proposals had been read that
several days would be required for the con-
sideration of the bids before determine
ton can be reached as to awards.
No bids were submitted for concessions
for the Islands of Leyte and Samar. TIE
bid of Soloman & Co. and their associates
was for 100 miles on the Island of Negros,
100 miles on the Island of Panay and %
miles on the Island of Cebu, which they
contemplate will cost $10.oO0,0o0 to con-
struct. Their bid contempiates the full
guarantee on per cent bonds for the thirty
years on 95 per cent of the cost of construc-
tion They were represented at the opening
by Frederick H. Reed.
The bid of Speyer & Co. provides for the
construction of the following lines in south
ern Luzon: Manila to Batangas and Baum
with branches to Santa Cruz and Lucena;
a line from Pasacao to Legaspi and Tobacco,
and a line from Manila to Cavite and Naic.
In northern LuZon they propose to buiio
under their bid eighty-six miles of branches
which may be operated in connection with
the existing railway from Manila to Dagu-
pan, also a line from Dagupan to Camp
No. 1, distance of twenty-five miles. All
these lines they propose to build without
the government guarantee Ihelr secoho
bid for the construction of a line from
Dagupan to Laoag is conditioned upon the
acceptance Of their other bid. and on this
grant they ask the full guarantee. It Is the
purpose of Speyer & Co. to operate lines In
connection with the existing railway in Luz
zon if granted concessions for which they
bid. They were represented by Mr. Speyer.
The Conditions Imposed.
The circular first sent out by the depart
ment provided for the construction Of rail-
way lines on the islands of Luzon, Panay,
Negroes, Leyte and Samar, whose aggregate
mileage is estimated at 1928 miles. The
Philippine government proposed to guaran-
tee for fixed period, not to exceed thirty
years. the payment by the guarantee of in
terest at fixed period, not to exceed per
cent per annum. first lien bonds issued by
the grantee under the concessionary con-
tract grant to an amount not to exceed
95 per cent of the actual cost Of construc-
tion and equipment.
Under the modified conditions bidders who
proposed to build lines without a guarantee
were permitted to deviate from the terms o;
the original invitation, provided the terms
proposed could be lawfully granted by the
Philippine government under the act of
Congress. and those taking advantage of
the guarantee were permitted to deviate
from the original terms as to time and cost
Of construction in SO far as contractors
profits affect that item, the Philippine gov
eminent reserving the right to reject a
bid where this item exceeded a reasonable
maximum amount.
Under the new proposal 1t was stated that
time Of construction and contractors profits
required would be additional points OF COM
petition in awarding the concessions. An
alternative route was proposed for the Is
land of Leyte. No bids were submitted at
the last competition for the grants for the
islands Of Leyte and Samar.
Lines to Be Constructed.
The lines to be constructed are to be post
routes and military roads, subject to the
use of the Philippine government and the
United States, for postal, military, naval
and other governmental service and the
act of Congress provides how the gross
earnings shall be applied. Points to be
considered in the awarding the grants are
as to the extent OF lines which will be
built without guarantee. the rate of inter-
est to be guaranteed on bonds, the dura-
ton of the guarantee and the percentage,
less that 95 per cent of the cost of con-
struction which the bidder will accept as
the amount for which guarantee bonds win
be issued.