Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1907-02-15
QUEER ASPECT OF THE Pro
POSED PANAMA CONTRACT.

Engineer John c, Saesena Of the
Panama ranal. mas determined 10
resign II the plan Of letting out the
work on contract IL adopted. There
would seem To be moving reasons
for this attitude. 10 the Oliver bid
l. accepted, for example. the real
builder Of the canal will be the
New York company now being or
ganixed and the New York and
.other engineers and contractors
associated with the company. Mr.
Stevens would become a more or
ress idle representative of the GOV
ernment, holding q supervisory posi-
ton OF no great responsibility and
involVing no particular credit or DID
credit for the successes or failures
Of the undertaking. Robbed. then.
Of any glory attaching to the enter
prise. he In thrown back upon the
salary paid him by the government
for his exclusive compensation. and
such q salary or a better one doubt.
iess could be commanded by him In
private industry. Why then might
he not resign In all fairness 10 the
government aud why should he not
resig In all fairness TO himself:
Meantime ID might be well for the
administration to let the public into
a clearer idea Of the nature Of the
contract plan which has been adopt.
I'd or On which bids have been In.
vited. Few people understand IL.
and On the face Of the published
statements IL Ii not understandable.
Tho Oliver bid. which IL on - the
point apparently Of being accepted.
10 8 % per cent OF the cost Of con.
struction, with a bonus OF 800. 600 =
mouth or something Of that sort by
as much az the time OF completing
the work 10 shortened under ten
years. Therefore. as the case N
represented. the gain TO the con.
tractors varies directly with the
costs 10 the government. and with
no risk Of loss 10 them. While a
premium 10 put upon expedition In
finishing the work. a premium Is al
so put upon extravaganza In expen
diture within the time limit.
The governments estimate of the
cost Of the work has been $3.50, 900,
900. OF which $780, 0 900 has beer
expended. IL this should prove q
correct ESTIMATE, the contractors
under the Oliver bid would gair
some $4,000. 900. and, so far a. tn,
public has been informed to tn.
contrary. this would be substan
TALLY a net gain or compensation
for the personal services OF tho
contractors. But Wall street, which
has taken a new interest In Tho
project since the Ryan.McDonalt
crowd have gone to the Oliver con
tract. Is guessing that the cost will
vastly exceed the governments OK
pectation and may go az high a,
$350.000.0 900 additional to preyiou,
expenditures. in which case tn,
contract would yield sea 00. 90,
or more to those back OF 1t. Ant
since the gain to the contractors In
creases as they are able to i~ncreas,
the cost, why not figure upon
much larger cost to the government
than has been calculated:
II Is a singular performance--this
bringing In OF a private money
making interest. not to secure econ
omy as we'll as expedition in the
construction under the stimulus Of
no profit or a loss II there Is no,
economy and expedition. but merely
TO substitute a private for a public
management under the stimulns o.
making the work as costly as posi-
bic. What can possibly be the rea,
son for this? Wherein Hes the pos.
sibiiity Of any Improvement over
direct government construction?
Very likely important details OF the
contract lie concealed from the gen
eraI public. IT so. they should be
made known. But as matters an.
pear TO stand. the government II
making a great mistake. II IL Civ.
ing ground for public suspicion of
arranging a eerat rake-off at The IA
tionaI expense for private interests.
and such interests. too. as have be,
come associated in the public mind
with the most profitable exploita,