Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-12
FOR DIGGING CANAL
Oliver & Bangs Presented Low
est Bidders.
OPENING OF PROPOSALS
Over a Hundred Contractors and
Representatives Present.
GREATEST OF MODERN TASKS
Contract to Be Awarded on Percent
age Of Cost of Completing
the Work.
GREATEST OF MODERN TASKS

The isthmian canal commission opened
bids at noon today from private contrac-
tors for the completion of the Panama
canal. In the opinion Of Chairman Shonts
1t is the greatest task Of modern times, and
it is in the highest degree exceptional in
magnitude and complexity of the enter
prise.
w. j. Oliver of Nashville, Tenn, and
Arson NJ. Bangs Of Nassau street, New
York, associated together, were the lowest
bidders for the construction of the canal.
They propose to do the work for 675 per
cent upon the estimated cost. Four pro-
posals were received.
The other bidders were George PIERCE &
Co., a partnership consisting of George
PIERCE G.. A. PIERCE and Earl S. PIERCE;
the North American Dredging Company, a
corporation whose president is William H.
Allen jr., of Los Angeles, and whose vice
president is R. A. Perry of San Francisco;
the McArthur-Gillespie Company, a New
at IL Pine street, New York. Its president
is A. F. Macarthur of Chicago, and its
vice president, T. NJ Gillespie of Pttsburg
The Lowest bidders.
w. j. Oliver and Arson Bangs, the low
est bidders have had much experience in
contracting work
Mr. Oliver is one of the largest railroad
contractors in America, and is at present
engaged in tunneiing Lookout mountain
and other extensive work. Mr.. Bangs was
the contractor for the 500 canal locks. He
is president of the Federal Construction
Company of New York city, which is capt.
talized at $2000,0OO. The board of directors
of that company are Arson Bangs, John
F. Donovan and James Hughes. Associated
with the Federal Construction Company is
the subcontracting firm of Hughes Brothers
&, Bangs, which is composed Of James
Hughes and Arson N. Bangs.
More than one hundred contractors and
representatives attended the opening of the
bids. Before reading the proposals Mr..
Shonts explained that no bid would be ac-
cepted until after the commission has
thoroughly studied and investigated it.
Basis of the Award.
The basis on which the contract will be
awarded is on a percentage of the cost Of
completing the work. Bidders were re-
Quired to accompany their proposals with a
certified check for 5000, 600, and the success
full bidder is required to give bond in the
sum of So, 100000 to protect the govern
ment from any loss.
The government expressly reserves to
itself the control of sanitation and engi
neering, and in the matter of quarters and
the subsistence department, so directly con-
nected with the health and wellbeing Of
canal employees, the right of rigid super
vision is retained
In no event. says Chairman Shonts,
''can the contractor be allowed to make
these departments an independent source
of profit The government likewise re-
taps to itself the department of materials
and supplies. and. so far as the Panama
railroad is concerned. it expressly was
declared in the letter of invitation for bids
that 1t could not wisely be turned over
RI he n he
by the contractor therefore. has been con-
fined to the actual work of construction.
1t Is believed by the commission that
the estimated cost of completing the canal
will be materially reduced by the applica-
ton of new principles of construction which
will be discovered as the work progresses.
The proposals provide system of re-
wards for the completion of the work in
much shorter time than the contract
calls for. and this. it is contended, will
effect saving sufficient to Offset the entire
percentage required to be paid the contrac-
tor on the estimated cost Of the work.