Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-02-04
NEW CANAL COMPANY
Financiers and Contractors
Organize in New York.
ten BIG FIRMS INTERESTED
10 Raise $4,000, 900 and Issue Bonds
for 100000.
EXPERTS JOIN IN THE WORK
Washington Man Becomes Associated
With Stevens, oliver and
Mcdonald.
TEN BIG FIRMS INTERESTED
EXPERTS JOIN IN THE WORK

MEM 1ORh, FeDTudTy IA Soi PNi"'ioiA
Of contractors and fnanciers to build the
Panama canal for the government was Or
sanized in this city today. The preliminar-
y,es were arranged yesterday. The company
composed of ten of the largest firms
of contract and builders and at least
three of the most prominent men Of affairs
In the United States. The prospect Is that,
with this incorporation effected, the gov
eminent contract will be awarded at once
and that the work will then proceed very
rapidly.
The new company, which Is known as the
Panama Construction Company, Will nave
100000 capital OF this 100000 will be
raised by bonds. and the other S.0O,oW
will be subscribed by the men behind the
company. OF the 100000 one-half will be
paid in cash Immediately and the other half
will be subject to call by the men In charge
of the work.
Chief interest attached yesterday to the
change of plans with reference to the
financing of the project 1t was announced
that with Frederick A Stevens. superin-
tendent of public works in this state, viii
be associated K. A. G. Smith of New York
and r. A. Chester of Washington
Mr.. Smith. who will have a very large
part In the work Is the head of two steam
ship companies, several traction lines and
many business enterprises in the West In
dies and Central America. Mr.. Chester is
vice president of the Commercial National
Bank of Washington, of which institution
Frederick c. Stevens is president.
Mr.. divers Associates.
The directors, named in the articles of in
corporation. are: John B. Mcdonald, John
PIERCE. Robert A. c. Smith. VIM. II. Sayre
George F. Hartman, all of New York city,
VIM. j. Oliver of Knoxville, Tenn: Charles
II. Ackert. Robert A. Chester. Patrick J.
Brennan of Washington; George Peirce of
frankfort. Me-. Patrick r. Walsh of Daven-
port. Iowa. and Robert Russell of Lynch
burg. Va.
John and George Peirce who are broth
ers. are the owners of the largest granite
quarries in the country in Maine. John
PIERCE is a contractor and builder of wide
experience. is president OF the New York
and Maine Paving Block Company. d.
rector of the marlborough Rapid Transit
Company and of the Rapid Transit Subway
Construction Company. He has built many
public buildings throughout the United
States. 1t is understood that the PeiTces
will have charge of the masonry work on
the canal.
Patrick Walsh of Iowa, 1t Is understood,
Wil have considerable part Of the con-
tract for the actual digging of the canal
Mr.. Brennan probably will have charge Of
the work at the canal which calls for the
use of asphalt He is well-known WASH
mgton contractor. He built some of the
buildings of the Soldiers Home there and
did much work of the asphalt paving in that
city.
Charles Eckert will be the new company's
transportation specialist. Before he became
vice president and general manager of the
Southern railway he was traffic manager
of several roads, and is considered an au-
thority on traffic arrangements. 1t is not
known whether his connection with the
Panama canal project will necessitate his
severing his connection with the Southern.
The inclusion of these names In the new
corporation does not signify that they will
do all of the work connected with the canal.
1t is expected that they will employ OF take
INTO the company any other men firms
whose services they may deem necessary
Tor the expeditions and successful progress
II the work
Studying the Situation.
1t was said yesterday by one of the mep
who had attended the conferences that the
contractors were making a thorough study
OF the situation and it's needs, and that they
would take in other persons to assist them.
Those Interested In the contract already
have begun investigation of the fitness
and availability of various engineers who
may be needed
II was declared that the contractors, as
well the financiers, who have associated
themselves with this work consider 1t a
great undertaking. which affords unprece-
dented opportunities for the builders and
the government. too, to make a record.
government has a good bargain in the
Oliver bid. and that contractors and finan-
ciers the possibilities of reward and
honor in rushing the work. now that all
persons concerned have come to an under
standing.
An explanation was asked of the alacrfty
with which the contractors and capitalists
had come forward for share in the enter
prise after many had denounced the bid of
Mr.. Oliver low that 1t would be i'm
possible TO carry out the contract at q
profit.
Made a Close Price.
1T was considered at first" was the
reply OF the conferred. that the Oliver bid
was too low. but 1t Is believed now that
with the associating together of the various
firms OF contractors. who shall divide the
work, it will be possible to make it pay
through economies and expedition"
Does 1t mean. was then asked. that
" Is the expectation or the hope of the
builders to complete the canal considerably
government thereby gaining a large re-
Enumeration in the way of the S10O, coo a
month bonus that has been offeredg'
An eauivocal reply was made to this The
speaker said that there were many diff
eulties of canal construction which even
those who had Investigated II closely could
not comprehend at this time. 1t was hoped,
however. that 1t would be possible to finish
the canal IN ten years. though IL was pos
stble. also that IL would require fifteen
years
DO you think the length of time required
for the building OF the canal may be de-