The daily gazette., 1874-12-12
'rAciFOi' asI>stl,

Mr.. Avet on Bs14ssI ~,,dE Cpntraess--
The Contracts for the 0bnsA-ucAbn Of
Foe NeU Vessels not Secret One.
No living man will venture to assert
over his own signature that l in any
manner "lobbied' directly or indirect
y. to secure the Subsidy for the Paci-
fic Mail Steamship Company; or receiv-
ed onedollar of payment1in any form on
account thereof. The truth Is that the
80 called, was obtained before
had anything to do with the contracts
for the China mail service. My con
nection Herewith began afterwards
with the contracts for the construction
OF the steamships City Of Toxic and
City of Peking. freely admit, or
rather claim the part which have sub
sequently taken in Washington with
relation to this affair. An ubiquitous
raid like the one now making wAs smade
upon the credit and interests Of the
company In order to prevent their full
filment of their contracts with myself
with view to the success of corrupt
gambling transactions inv all street, and
not without important comfort from
powerful influences even yet more bit
terly and selfishly inimical to the bull
ding up OF Ameri can commercial inter
ests upon the Pacific. The claim was
made in the public press and in official
and legislative circles in Washington
that the contract between the Govern
ment and the company was void by rea-
son of my own failure to complete the
ships within the time specified, and my
lobbying" consisted solely in a deter
mined effort to set the mater in its true
light for the interects of not the COM
pany only, but of the future..commercc
and prosperity of the whole country.
There was not so much as suggestion
of corruption in or about any of the
influences employed by me directly or
indirectly. l defy any man to say
that approached him or that he ever
approached me with the similtude of
proposition for the use of improper
means in securing legislative or official
action. AS to the ''check" for $500, 600
mentioned, defy any to show that l,
| or anybody for me, ever received
"check" or any other consideration in
any form except in accordance with
the express terms of contracts, and In
the course of honorable and legitimate
commercial transactions.
AS TO the "secret contract" ludic-
frous as the idea of such a thing must
seem to every one outside of Wall
street. the purpose of this letter com
pels me to tender the public, or that
part of the public whose pecnniary in
tterests are affected the following state
ment of facts:-The Pacific Mail Steam
ship Company, in anticipation OF the
inevitable wearing out OF their wooden
Iside-wheel steamers and having only
! two iron ships whose dimensions and
capabilities complied with the terms
of the law, decided to build five other
ships. Two of these were to be OF the
class of the Toxic and Peking, and
three of smaller size, or about 5,oOo
) tons. The secrecy with which, this
was done will appear by the regular
minutes of meeting of the Board OF
Directors, held April A, 1914, eight out
of nine of the directors being present
!, thereat, including the President OF the
company himself. Under the resoiu-
tion adopted n committee was appoln'
ted, the President being a member
thereof, 10 ascertain at what price the
two large vessels could be constructed
by John Roach Il Son. In the course
OF subseouent negotiations the whole
matter was freely discussed in open
|, being absent that the new ships ought
/ | to be obtained at a less price than the
Toxic and Peking, in consequence OF
| the lower market price of labor and
al material, and this view was met In SO
t practical a.manner that while the latter
Two vessels cost, in round numbers II, =
, 200. 900 each, the new ones are to cost
ionly 81, 900, 900 each, or a saving OF
about $4OO, 600 to the company. Ma
! terial has been purchased and work
e done on those vessels. They are abso-
e lutely necessary to the company, but
If the men who are "short" of the com
: Inanv's stock, and intend to use their
Influence with the Government to
e break down the company's credit and
Idestroy its usefulness, are to be per
e mitted to succeed. it may come to pass
o that no more work or material will be
s called for.
The three smaller vessels provided
@ for at a subsequent meeting were also
!. lin like manner put into the hands OF q
n lcommittee. Bids were asked for from
o the well-known builders of New York,
Wilmington, and Philadelphia, and
|. were duly received, each party propos
e ing to build one ship at 1886, 600, OF
), 81 .095, 900 for the three. The board
Il decided by vote not to Duild these
:. \ ships in this country unless they could
obtain them for $500, 600 each.
nj The other parties having declined
a these terms, l accepted the contract,
IS preferring to do the work at small
|. profit rather than that the ships should
not be constructed. The company
It has here effected another saving oi
+. s195, 900, and the ships are now In an
n advanced. Condition are the finest yes
,e sells of their class in the world and Will
n be ready for service in the course OF
" the coming spring. How reckless
Is these destroying agencies are Of the
,e needs and interests of American indus
Ii try may be gathered from the fact that
D. among the threats of which they make
r use is the proposition to introduce 9
.. foreign rival, and to call to their aid
the capital and the labor of Europe IN
their raid upon company whose only
crime seems to have been that 1t has
IaN.E