Truth. [volume] (Salt Lake City, Utah) 1901-1908, 1907-02-09
WHY THE CANAL BY CON-
TRACT?
BY Frederick Palmer.


mus for twenty-five years. 1T rams;
the sun is hot; they find the idea IS
old, and they go away wilted and
wet. Yes. yes, this canal, it makes
many experiences
Now comes the experience" OF the
contract. We do not go to the con
tractor with proposition that he
shall do the work on the total cost
The right of sanitary control, OF po-
Ii ling, and of government generally
is reserved to the United States. All
our tracks, dredgcs, steam shovels,
rolling stock tools, and material what
soeyer i'm operation, in transit, or or
dered. are put under the contractors
control.
In the future we are to buy all ma
terial and machinery except small
tools, and to pay all the wages except
those of contractors personal or9ani-
zation He is simply the agent OF eX-
ecution who works by the piece in
stead of by wage. He is to be repre-
scented by two engineers, the Canal
Commission by three, including Mr.
Stevens. This engineering committee
is to decide the total cost OF the canal
and the time for its completion.
For every month required over the
stipulated time the contractor loses
100000: for every month under he
wins that amount If the actual cost
exceeds the estimated cost he shall
forfeit one-half of the percentage
which he receives for his services.
The basis of his bidding was this
brokers' percentage. An ASSOCIATION
and not single firm OF contractors
was advertised for. Thereby the ex-
perts in the different kinds of exca-
walton and construction required on
the Isthmus were to be brought into
harmonious working under single
head.
On January IL the bids were open
cd and four WIRE found. Arson
Bangs of New York and w. J. Oliver
of Tennessee bid the lowest, 6.75
per cent. The contractors who began
the work for De Lesseps received g.
They paid their forfeit inside of two
years and returned to France. After
ward De Lesseps tried many other
forms of contract. But, besides the
percentage, our Canal Commission is
considering two other factors: records
of the bidders and their financial
guarantees.
Record of the Lowest Bidder.
Mr.. Bangs has done Government
work before. He undertook to deep
en- the ship channels in New York
Harbor and defaulted on his contract.
The work which he failed to do for
10 cents yard is being done by
Engineer Henry N. Babcock under
the direction of Lieutenant Colonel
WI /. Marshall, of the Army Engi-
neer Corps, for 5.25 cents. Govern
ment success is due to better organ
zation and to Mr.. Babcock's own
improved type of dredger, which he
built to meet the problem in hand.
This is not all of Mr.. Bangs's record,
but it is sufficient. Any one who is
unable to make good on dredging
job in home waters is scarcely rea-
sonable choice for clcaving CONT
nent.
The second firm of bidders was
George Pierce and Company. They
wanted 7.Io per cent, but failed to
meet the financial requirements. The
North American Dredging Company
set as its price 2S per cent, or a
quarter OF the sum total Of the cost,
which is brokers' commission to
make bucket shops envous.
1t is strange that bid was received
from only one association of con-
tractors who seemed by record, cap
4 L.