from his actions that the Exposition Company had had some trouble with Mr. Schluetter.  President Francis said to me, “Mr. Krug, you have some excellent recommendations here from prominent people and banks of Chicago.”  I told him that I was well able to carry out any contract I undertook, as I had good financial backing and understood my business.  He said to me, “Mr. Krug, your bid is very satisfactory, but why have you not submitted a bid on all the buildings shown in the specifications?” I told him I had taken into consideration the insurance on the various buildings and that I was afraid I might have trouble in getting insurance on all the buildings, and therefore submitted a bid on buildings that were quite a distance apart and less liable to fire.  I told President Francis at this time that I was willing to submit a bid for $76,600 on all the buildings shown in the specifications prepared by Mr. Taylor.  My first bid did not include all the buildings shown in the specifications.  I made this offer offhand.  He asked me if I wanted to figure on wrecking the buildings for the Exposition Company on a percentage basis, they to own all the material and sell it and I to get a per cent for doing the work.  I told him I would take it by contract for an agreed figure or would do the work for him on a percentage basis, and that I would be glad to do anything for him I could.  President Francis said to me, “Mr. Krug, you put in your bid for $76,600 in writing and have it in this office to-morrow morning.”  We were then asked to wait out in the anteroom.  We waited there until about 6 o’clock.  At about 6 o’clock Mr. Taylor’s secretary came in and announced that the meeting had adjourned until the next day.  We all left the room then.  At 10 o’clock the next morning, November 11, 1904, Mr. Schmitt and myself went to Mr. Taylor’s office, where I filed my bid in writing for $76,600 to cover all the buildings shown in the specifications.  We waited there until about 4 o’clock, expecting some decision from the salvage committee.  About 4 o’clock Mr. Taylor’s secretary came in and announced that the meeting of the salvage committee had adjourned until the following Monday.

The conditions embodied in the specifications as to the time allowed for removal of the wreckage were so prohibitive as to render it almost impossible to carry them out.  The time limit—­namely, three months—­was too short.  It would entail an enormous expense and waste of material to try to comply with the time conditions stated in the specifications.

The amount required by the specifications to be deposited in the form of a certified check, payable to the Exposition Company, viz, 50 per cent of the amount of bid, was very exorbitant.  This check was to be forfeited to the Exposition Company in the event the successful bidder failed to enter into a contract with the salvage committee within five days after they accepted the bid.  I consider the amount demanded, 50 per cent, very excessive, and it had the effect of frightening bidders away.  A 5 to 10 per cent deposit is usually the amount required by the Government and the city.