Omaha daily bee., 1907-01-13
CANAL BIDS ARE OPENED
Fest Proposition is from Oliver q Bangs Of
New York and Knoxville n
OFFER is ON BASIS OF SIS PER ctNS
Highest Bid is from Lop- Angeles
Firm-I,Owest BidderS Are Men
OF wilde Experience and
Large Capital.

| WASHINGTON, Jan. l2-The proposals
opened by the canal commission today Tor
the entire construction Of the Panama.
canal were as low as had been expeetdtA
by experts construction work. For
some time Il has been known that several
members OF the commission believed per
cent upon the estimated cost Of construc-
ton would be fair remuneration for the
contractor under the form prepared by the
commission. The lowest proposal. that Of
William J, oliver of Knoxville. Tenn. and
Arson b. Bangs of New York. who offered
to do the work for as per cent OF thk
estimated cost, is lower than had beeh
expected.
Granting that the estimate OF silOooAOOo
for the construction OF the canal. which
has been frequently spoken OF in congress.
Is accurate the remuneration of the Oliver
Bangs combination. would be Se.i5o.0oo In
case II were TO be awarded the contract.
Much discussion has been caused by the
great difference in the only four bids re-
celved. as they ranged from SIS to % per
cent.
william j. oliver and Arson NJ Bangs
have been in the contracting business for
many years and the statements they FUR
nished with their proposal show that they
have done much important work MIR.
oliver states that he has completed tlS,-
10000 worth Of work I'm ten years and now
has sS1 100000 worth OF work in progress
He gives his assets at ss,OoOOoO Mr. Bangs
gives his assets at ss,0OO,oO0 and states that
he was the contractor for the Poe lock
at Sault Ste. Marie. Mich, the Delaware
breaitwater and the Buffalo breakwater,
the contract price for each Of these being
10000.
nasG. nf mgAs
The basis on which the contract is TO b
awarded is a percentage OF the. cost OF
completing the work Bidders are required
to accompany their proposals with a GER
titled check of 10000 and the SUCCESSFUL
bidder is required to give bond in the sum
OF 100000 to protect the government from
loss. .t.. y, 3 e..
The government expressly reserves to IT,
self the control of sanitation, Of engineer
ing, and In the matter OF quarters aud the
subsistence department, so directly con-
nected with the health and well being Of
canal employees, the right OF rigid super
vision is retained. ..ts..--
In no event" says Chairman, shonts.
can the contractor be allowed TO make
hese departments an independent source
profit" 90,
The government likewise retains the. de-
irtment Of materials and supplies and so
tr as the Panama railroad is concerned y
xpressly was declared IN the letter of in-f
tation for bids that II could not wisely be \
urned over to the contractor The work u,
Q done by the contractor therefore has
,een confined to the actual work Of con-
truction. ~ts-
Ii is believed by the commission that the
stimated cost OF completing the canal will
Ie materially reduced by the application OF
lew principles OF construction which will be
discovered as the work progresses.
Reward for Quick Work,
The proposals. provided a system OF re-
wards for the completion OF the work in a
much shorter time than the contract calls
,or and this. Il is contended. will effect a
saving sufhcient to offset the entire pkx-
centage required to be paid the contrRd r
On the estimated cost of the work.,
w. J. oliver of Nashville. Tenn, and
Arson M. Bangs OF New York, associated
ogether, were the lowest bidders for the
construction OF the canal. They propose
do the work for SIS per eentum upon
he estimated cost. The bids were opened
1t noon by Chairman Shonts. -Four pro-
posals only were received
The other bidders were George Peirce a
o. Of Frankfort. Me- and New YorR City,
Tho offered to do the work for 71s per
tentum upon the estimated cost; the NorthnA
American Dredging company of Los Al
geles. Call who offered 10 do the work FOL
Is per centum OF the estimated cost, and
the observation-disclosures company OF New
Jersey, whose bid was 12.5 per -oentnnL,
W. J. oliver and Arson Bangsi the lowest
bidders, have had much experience In con
tracing work Mr.. Oliver is Onss Of the
largest railroad contractors In America, and
at present Is engaged in tunnelins Lookout
mountain and other extensive work., Mr..
Bangs was the contractor for the 500
canal locks. .,ss-..'
More than 100 contractors and their rep
resentatives attended the opening of the
bids Before reading the proposals. Mr..
Bhonts explained that no bid would be 40
cepted until after the commission has thse-
oughly studied and investigated II.