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1. E. J. Williams, Jr., paymaster of the canal, who handled over $250,000,000 in cash.

2. Types of canal workers.

3. Interior of pay car, which carried 1600 pounds of gold and 24 tons of silver coin on each monthly trip.

OF

THE CONTRACT PLAN ABANDONED

rule, and it was remarkable how much assistance each could give to the other and to the advancement of his own work.

Owing to the difficulties encountered in securing men of experience for subordinate positions in the early stages of the work, I inclined strongly to the belief that to secure the quickest and most economical results it would be best to place the purely physical parts of it under contract, and on my expressing such views I was requested by the chairman to outline formally such a plan as I might deem practicable, and accordingly I did so.

A careful study of the conditions under which any contract could be entered into and carried out made me absolutely sure that, owing to the multiplicity and variety of details which were known and which must be considered, there would enter into the problem many unknown factors, some of which it would not be practicable to provide for, or even foresee, under any system based upon unit prices. I, therefore, reverted to the well-tried-out plan of contract by percentage, which plan on the whole, when well conceived and honestly executed, is as fair to all interests as can be devised.

My underlying idea was that it might be possible to attract the attention and cooperation of strong railroad and general contractors in the United States, who by combining their strength and influence could form a powerful syndicate, one that not only would command the respect of the business world, but would easily be able, by utilizing their own well-trained forces of experts in all lines of construction, to at once make up an organization composed of the best material that the world afforded. All of these contractors have a following of such men, who are reluctant to leave their service, as I found when trying to build up an independent organization.

After serious study I drew up a plan based upon percentage, under which I considered the interests of both the government and the contractor would be

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carefully guarded, and every contingency possible to foresee would be provided for. By this plan all governmental and sanitary laws and regulations were to be undisturbed, and the commission, through its chief engineer, was to be to all intents and purposes as much the dictator and arbiter as though the work was to be carried out by its own forces.

The plan was cordially approved without modification by the commission and consideration of it by the higher powers that were was given without delay. But on a trip which I made soon thereafter to Washington, I found that such changes and modifications-mostly of a purely technical character-had been made, that in my opinion would render it unattractive to the class of contractors I desired to interest. However, bids were asked and a few were obtained, none of which were satisfactory in the judgment of all—including myself.

Inasmuch as the objects sought to be accomplished had not been attained, all of the bids were rejected, and decision was made to go on and complete the work with our own forces, which was probably wise. The organization had been so improved and perfected, and such a satisfactory rate of progress was being attained, that it was not thought advisable to incur the certain delay and possible disappointment which another call for bids might entail, as we knew we were certain of success in the handling of the work, as it was then proceeding.

Any present discussion which is being indulged in as to the great superiority of the plan under which the work was done, as compared with what might have been the result if it had been done under contract, is entirely futile. The record is made, as far as the one method is concerned, and only hypothesis and theory can be set forth in regard to the other method, and when such speculations are made by parties having had no practical experience in handling large works by percentage contract, their opinion can

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