building the tunnels by the shield method, on a modification of the
percentage basis, and as this firm had built the Blackwall tunnel within
the estimates of cost and was the only bidder having such an experience
and record in work in any way similar to the East River tunnels,
negotiations were continued between that firm and the railroad company.

The original plans and specifications contemplated that all tunnels
between the First Avenue shafts in Manhattan and East Avenue in Long
Island City would be shield-driven, and that work would proceed
simultaneously eastward from the First Avenue shafts and both eastward
and westward from the Long Island City shafts located west of Front
Street at the river, requiring twelve shields. When making their
proposal, S. Pearson and Son, Limited, suggested that shields might be
started from the east end of the work and arrive at the Front Street
shafts as soon as these shafts could be completed, and proposed sinking
a temporary shaft transversely across all four lines near the east end
of the work just west of East Avenue, from which, within a short time,
to drive toward Front Street by the use of shields. The railroad company
accepted the suggestion for the additional shaft, although the greater
part of the tunnels east of Front Street was built without shields.
After several months of negotiation, a contract was entered into on July
7th, 1904, with S. Pearson and Son, Incorporated, a corporation of the
State of New York organized by the English firm for the purpose of
entering into and carrying out this contract. The main features had been
agreed upon, and work had begun about two months before. The contract
embraced the permanent shafts in Manhattan and Long Island City, the
tunnels between these shafts, and their extension eastward in Long
Island City to East Avenue, including in all about 23,600 ft. of
single-track tunnels. The contract had novel features, and seemed to be
peculiarly suitable for the unknown risks and the unusual magnitude of