The Montgomery advertiser., 1906-10-10
CONTRACT FOR
CANAL WORK
Invitations for Bids Are
Asked For.
PER CENT SYSTEM OF PAYING
All Bidders Must Have Capital Of
$5,000,0M.
No Contractor Ii Barred but All Amer
lean WOrkmen Must Not Labor
Over Eight Hours
PER CENT SYSTEM OF PAYING

Washington. Oct 9.-Invitations for
proposals to complete the Panama ca
nal were issued today by the canal COM
mission and the form OF contract un-
made public by Chairman Shonts. who
also gave out a letter written to the
Secretary of War giving the commits
sion's reason for contracting 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 under
taking. but they must be legally orga-
nixed into a single body with which
the government can deal
Bidders will not be considered who
do not have a capital Of 100000. A
bond OF 100000 10 required with each
proposal and bond Of 100000 will be
required from the successful bidder
The bidding Is not limited to Ameri-
can contractors. All proposals are to
be In before noon of December H.
when they will be opened.
Proposals are to be expressed In
terms OF per centage upon the esti-
mated cost of constructing. which is to
be fixed by a board OF five engineers.
The chief engineer Of the canal COM
mission Is to be chairman of the sn-
cheering board.
The engineering board will also es-
innate a reasonable time for the COM
pletion of the canal and will agree up
on a system of premiums and penal
ties to be handed to the contractors
according as the work Is completed
within or beyond the estimated cost or
time.
The contract specifies that the COM
mission Is to retain central of all en-
cheering work in connection with the
construction of the canal: also NUM-
40
hospital and commissary departments.
mess houses, quarters. construction and
maintenance of buildings, operation Of
the Panama railway.
Sixty days after signing the contract
actual work is to begin on the 18TH
mus. No American employe is to work
more than eight hours.
Chairman Shonts defends the pc
centags system of payment In his let-
ter. to Secretary TAFT as follows:
This plan Is being employed in
creasinsly by the oldest. largest and
most successful corporations In the
country THE government will get
the beneft of the combined efforts OF
the best and most experienced con
tractors in the world. each In charge OF
a department in which he Is special
tst and cooperating with other spec
ialists.
'aThe government will secure the CO.
operation of these contractors In keep
ing mechanics Of all classes. BY re-
taining control of the work and ex-
ercising special work through its en-,
gineering force, the government Will
protect itself against cheap or faulty
work. a,I,.
"rhe contract will be more hexible'
r,najlv a termination Of the contract
should It become necessary. VIII DC
less disastrous to the contractors,
u-hie a resumption Of work would De
easier to the government, on account
~ it's close relations thereto
The canal. under the con.rac., s, NJ,
. pe - can be done by the government.
r 1nna shonts says. 1t would take take
en- Commission years to get men and and
t.uild up departments equal 70 ,n"se
rom controlled by the leading contract
~. according to the letter