New-York tribune., 1907-01-13
THE CANAL BIDS.

The reception and opening of contractorR'
bids for the work of completing the Panama
Canal, which we assume will be followed in 4
short time by the awarding of the contract and
the beginning of operations by the successful
competitors, should be regarded with satisfac-
non, as indicating not only progress with the
canal enterprise but also the actual opening
of the eliminating epoch in the long drawn out
history of that undertaking. There will be no
regret at the transferrence of the work from
direct government management 10 the hands of
private contractors, nor any occasion for re-
proach or criticism of the Canal Commission for
having failed 10 do the work itself without re-
course TO contractors. The most thoughtful
discriminating and authoritative men who have
been connected with the enterprise since our
governments assumption of if have all along
contemplated such an arrangement as this. not
as necessary. but In high degree and for
numerous reasons desirable and expedient The
letting Of the contract will, in fact. be merely
the fulflnent of design formed and published
long ago Those who have observed the ex-
treme deliberation with which some public
works have been performed under direct gov
ernnental direction-as for example the Har-
lem River Improvements In this city-and the
far greater expedition with which private con-
tractors have done like works. will see in the
letting of the contract promise of more speedy
OF the fullest possible measure of governmental
control and supervision should guarantee the
most Thorough workmanship in all details
In fact, this retention Of governmental con-
troll is one Of the striking features of the case
and dlfferentiafes it from nearly all others
That the government would supervise the york
very carefully was of course taken for granted
from the outset But that is not nearly all.
The government will prescribe not only the
general plan Of the canal but also the manner
of its execution: it will provide all the nate
rails. engines machinery, fuel and supnlies.
IT Will conduct the commissary department and
house and feed the laborers. and to a certain
extent Will control the terms and conditions of
labor. II will also logically assume a resoon.
sibility comparable with the authority which II
retains, and IL it's plans-as for example. for
the big dam and flights Of locks at GatI,n-
prove faulty or impracticabie il and not the
contractors will have TO bear the blame and
pay the penalty. The contractors will reall% be
concerned with nothing but doing the actual
physical work necessary for the fulflment of
the governments plans
The terms Of the contract are comparatively
novel, though not unique. The CONTRACTORS do
not bid lump sum for which they will do the
work. They bid q certain percentage of the
cost Of construction estimated by an exoert
commission Thus the lowest bidders are re-
ported TO nave bio o.fo per cent That means
that If the canal were To cost only 500 100000
they would receive S6,750,000 as their earnings
or profits. and if its cost were S2O0OOOOOO ghey
would receive S13500O00. The more the cinaI
costs. therefore. the more the contractors will
receive But they cannot themselves swell the
cost Of the canal for the sake of increasing their
own gains. because the estimated cost Is to lie
Fixed in advance by the governments experts.
ne contractors must accept that estimate, and