New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-10-10
CANAL CONTRACT PLAN
EoYERN1fENT TO CONTROL
Profit To Be Percentage on Cost
of the York.
ppm u. Tribune Bur.au-l

ns Tribune Bureau-l
wsshtnrton. Oct a-The lsthnian CanA
Commission made public to-day the methoe
,b.resy IL is hoped TO secure contracts for th'
r,ns+-,cfion of the canal A form Of contract
novel 10 the popular mind. although II has beer
.rrpioyed with success IN several large enter
prise< has been devised BY II a coTnparati'"is
email number of contracts will. It is expected
be le: TO several large associations or eonuao'
tors each OF which viii undertake separAte
branch OF the canal work
The commission viii furnish supplies oireo'
and supervise the work of the contractors aiia
these viii be paid as profit a percentage on inc
cost OF the work they perform. In oiddlns l0r
these contracts the associations of contractors
Will submit the facts as TO the character OF the
work they are prepared 10 perform ana state 'i4e
percentage for which they are willing 10 uhoei-
take f. and the contracts viii be AWARDED 10
those willing 10 accept the smallest percentage
cbs,rT,s5 sronTs has discussed the methods
OF awarding canal contracts with the olLclais s
OF railroads all over the country. iae nae -
that the Pennsylvania and other lAFse - 80 -
cornnsnias have found by experience that the
nronossd form Of contract IS most satisfactory
on large undertakings. and for that reason no
has prepared the contracts now announced.
LABOR PROBLEM SERIOUS.
IN. lsbo, ,rob,ern on the isthrus presents
serious difficulties II has thus far been i'm
possible 70 secure adequate supplies OF labor
but n IA believed that large firms now engaged
IN railroad construction viii, by forming asso-
Citations be able 10 undertake the work and win
ond * convenient 10 a large extent, 10 work
their forces and outfits on the canal during the
winters. even though they may withdraw part
OF their men during the summer months 10 work
on railway contracts.
Invitations for proposals 10 complete the canal
were issued to-day. Bidders will not be con-
sidered who do not have available capital OF
S500O00O A certified check for 100000 is re-
s-aS -r-sfN echr a
100000 will be required from the successful
bidder. The bidding is not limited 10 American
contractors. All proposals 10 be in BEFORE
noon Of December u, when they viii be opened:
Proposals are 10 be expressed IN terms OF
percentage upon the estimated cost OF cohsuuo-
ton. which is 10 be fixed by boaru OF hFs
engineers, three representing the governmnt ana
two representing the contractor. The chleI en-
s1neer of The canal commission is TO be chairman
OF the engineering board. The engineering ooaro
will also estimate a reasonable time toF the
completion OF the canal and VIII agree upon q
Fystern of premiums and penalties 10 De PAID
% the contractor according as the work Is COM
pleted within or beyond the estimated cost ana
time. An the government plant LOT ac'uai con-
struction work, including the railway Is 10 DC
placed at the disposal OF the contractor and Is
10 be maintained by the government
The contract specifies that the commission Is
90 retain control OF all engineering work In con-
nection with the construction Of the canal; also
all municipal engineering, the police, sanitary,
hospital and commissary departments, mess
houses, quarters, construction and maintenance
OF buildings. operation Of the Panama railway.
counts are 10 be open. and a department of ma
terials and supplies.
REASONS FOR METHOD.
Sixty days after the signing OF the contract
actual work is TO begin on the isthmus, and the
contractor is to take over ell employees on the
isthmus whom the commission does not wish TO
retain. No American employee Is 20 work more
than eight hours.
Chairman shonts explains the percentage sys-
follows:
This plan is being employed increasingly by the
Oldest largest and most successful corporations
in the country. 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 spe-
clallst and cooperating with other specialists
The government viii secure the co-operatton Of
these powerful interests in keeping mechanics OF
al classes. The plan offers every incentive for
speedy and economical construction by penal
lzlng extra time and cost and rewar6ing better
than contract performance as 10 either.
Ky retaining control OF the work and exercis-
ing strict supervision through its engineering
aoIce me government will protect itself against
cheap or faulty construction. The contract will
oe more heHioIe. The Time and cost Of complete
ing me canal as estimated win in ali probability
be reduced by the application OF new prIncinIes
which VIII be discovered as the work progresses
Finally, a termination or the contract sboulS 4,
become necessary would be less 5issstro,s -
the contractor, while an effective resurnptio1
OF the work would be made easter "a r. $3.50 pA
ment' owing to Its close relations thereto
In support Of the commissions position tho.
me canal can be built under contract to greater
anNantage lhan by the government, Mr.. Shonts's
1euter says that because OF the unprecadeT5faS
ana greatly extended Industrial activity ~ ~
uIne ana The consequent violent couDefition fo-
al classes Of superintendents forernen s1b
contractors, skilled mechanics and even orlfnar,
iaooreiS, II would take the commission wears ~
secure men and build mp departmental co1str,c
loA organizations. which would equal in EN-
slency lhose now controlled by the leading con-
tractors or the United States"
Chef Engineer Stevens Of the Isthrnian Canal
Soi.lsslon mas reported that the excavation %
z44,o4S cubic yards IN August and $50 Oo0 tr
September in the Cuebra cut each exceeded
that OF any previous month The doubIa tracl--
ing Of the Panama Railroad is going forys -
steadily. Az "S@1u
Havana Oct 9.-When asked for a state
ment to-day concerning the plan TO constr,,ct
the Panama Canal by contract, Governor ro4,
replied that he had not had time to think y, tts
canal All matters pertaining thereto. he said
must be settled by the authorities al wasb,r,'
ton or await his return.