The news-democrat. (Providence, R.I.) 1906-1909, 1906-10-10
CALL FOR BIDS
To CONSTRUCT
PANAMA CANAL

Washington. oct lO-Invitations for
proposals to complete the Panama canal
were issued yesterday by the Canal com
mission and the form of contract under
which the work Is TO be done was made
public by Chairman Shonts, who also
gave out a letter written 10 the secretary
of war giving the commissions reasons
for contracting the work.
The contract provides that each bidder
must undertake the entire work OF CON
struction. No bar will be offered to cor
porations associating I'm the undertaking,
but they must be legally organized into
single body. with which the government
can deal Bidders will not be considered
who do not have available capital OF So
900. A certified check for 100000 is re-
quired with each proposal and bond OF
81 000, 900 will be required from the sue
cessful bidder.
The bidding Is not limited TO American
contractors. All proposals are TO be In
before noon OF Dec. ~. when they will
be opened Proposals are To he expressed
In terms OF percentage upon the estimated
cost OF construction, which Is to be fixed
by a board of five engineers, three repre-
senting the government and two repre-
senting the contractors
The chief engineer OF the canal COM
mission is to be chairman OF the engin,
eering board The engineering board will
also estimate a reasonable time for the
completion OF the canal and will agree
upon system OF premiums and penalties
to be paid to the contractor according
as the work is completed within or beyond
the estimated cost and time. All the
government plant for actual construction
work, including the railway, is TO be
placed at the disposal OF the contractor
and Is To be maintained by the govern
ment
ha -
sion is TO retain control OF all engineer
ing work In connection with the construc-
ton OF the canal, also municipal engi-
neering the police. sanitary, hospital and
commissary departments, mess houses,
quarters, construction and maintenance
OF buildings, operation OF the Panama rail
way an auditing department TO which
the contractors accounts are 10 be open
and department OF materials and sup
plies.
Sixty days after the beginning OF the
contract actual work Is 10 begin on the
isthmus. and the contractor is to take
over all employees on the sthmus which
the commission does not wish To retain
No American employe is TO work more
than eight hours.
Chairman Shonts defends the percen-
tage scheme OF payment in his letter to
Secretary Taft as follows:
This plan is being employed increas-
ngly by the oldest, largest and most sue
cessful corporations in the country
THE government will get the benefit of
the combined efforts of the best and most
experienced contractors I'm the world
each in charge OF department i'm which
he is a specialist and cooperating with
other specialists
THE government will secure the CO.
operation OF these powerful interests I'm
keeping mechanics OF all classes
Co.
speedy and economical construction by
penaliZing extra time and costs and re-
warding better than contract perform
ance as to either.
by retaining control OF the work and
strict supervision through its engineering
force. the government will protect. itself
against cheap or faulty construction The
contract will be more flexible. The time
and cost Of completing the canal is esti-
mated Will in all probability be reduced
by the application OF new principles
which will be discovered as the work
progresses. Finally a termination OF the
contract, should II become necessary.
would be less disastrous TO the contrac-
tor, while an effective resumption OF the
work would be made easier TO the gov
ernment, owing to its closer relations
thereto"
In support of the commissions position
that the canal can be contracted at great
er advantage than IL can be built by the
government. Mr. Shont's letter says that
because of the unprecedented and great
ly extended industrial activity OF the time,
and the consequent violent competition
for all classes of superintendents, fore
men, ub-contractors. skilled mechanics
and even ordinary laborers. II would take
the commission years TO secure men and
build up departmental construction or
ganizations which would equal in eff
cheney those now controlled by the lead
ing contractors of the United states"
Chairman Shonts says I'm his letter that
the commission carefully considered let
ting the work In sections to separate con-
tractors, and decided that complications
would arise which could not be overcome
in case this plan were adopted The let
ting Of the work to one contractor on
basis of unit prices was also considered
and was believed by the commission to he
a plan which would be more expensive
than the percentage system.