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 completed under this method. This work furnishes, therefore, an excellent opportunity to test the statement so often made that work undertaken by the government and done by it direct is more costly than the same work done under contract. As a matter of fact the total cost up to May I of this year, including all retained balances on contracts and other outstanding liabilities, will be about $4,745,000, or about $100,000 less than the estimate. Included in this cost, however, is about $300,000 in plant, out of which there will be considerable salvage, which will be credited back to the appropriation. It also includes a number of buildings originally not provided for; and it is perfectly safe to say that the cost of the canal is at least $250,000 under the estimate.

The proportion of work done by contract was a little less than one-fifth, and the average cost of the work done by the government, including all items, was less than that done by contract, even though the contract price was very low. But the chief saving was in the greater flexibility and ease in changing plans to effect economies; and from information I have received I think I am quite within the mark when I state that such changes as have been made have, resulted in a saving of $300,000, and possibly more.

The officers in charge of this work from 1902 to 1915 were as follows:

Major W. C. Langfitt. Lt.-Col. S. W. Roessler. Major J. F. McIndoe. Major J. B. Cavanaugh (temporarily for four months). Lt.-Col. Jay J. Morrow (from March, 1910, to date).

Assistants:

Capt. A. A. Fries (under Col. Langfitt). Capt. Henry H. Robert (1910-1913). Capt. Theo. H. Dillon (1913-1915).

Civilian Engineers:

Mr. Fred C. Schubert, Assistant Engineer. Mr. G. E. Goodwin, Assistant Engineer.