Saturday press. [volume] (Honolulu, H.I.) 1880-1885, 1884-05-17

The Taisr Pipe Contract.

The editor of this paper called yesterday on
Mr. 6. W. Macfarlane and asked distinct and
succint statement of the last pipe Transaction
between the government and the firm of which
Mr. Maciarlane is head. This request was
made because Of insnuations by the Honolulu
Bulletin that Mr.. Maciarlane's conduct in the
matter has savored Of sharp Practice il not of
rrcgularity. He received an answer in sub.
stance as follows
"rhe pipe transactions between this firm
and the government began during the Wilder
administration and continued through the
Carter administration. Under the latter
town competed and our bid being the lowest,
was accepted. We were then enabled to lay
down superior pipe more cheaply than any
other hrm because of our Glasgow connections.
The superiority OF Glasgow pipe is acknow-
ledged everywhere and the GlaSgowpipe market
is the cheapest in the world. This superiority
consists chiefly in the method OF casting.
Glasgow pipe is cast vertically in other
countries pipe is cast horizontally, the former
method nsuring uniform thickness, which
enables the pipe to stand great pressure. Its
cheapness is insured because of Glasgow's
position as the largest pig iron market of the
world. 1t was natural then that the interior
department, should look to us for any further
supply Of pipe needed by the government. In
July or August of 1882, Minister Bush APP
piled to US Tor an estimate upon a required
length of pipe line, to be furnished in IS inch
pipe. We furnished the estimate. lie found
the total estimated cost largely in excess Of the
appropriation available. Al the beginning of
negotiations | had said to Minister Bush tina.
in my opinion not only were is inch pipe too
large for the purpose intended but that IL inch
pipe would be ample. lie informed me that
the requisition had been made out by the
superintendent OF water works, who insisted
tina, is inch pipes were needed. | then sug-
gested that he ask Engineer Strings opinion
as TO the size required and, | believe, he
recommended IL inch or IS inch pipe. 1t was
sinally agreed 10 substitute IS inch pipe for the
"a inch pipe asked for, for reasons already
explained. After the bargain had been closed
and had received my contract, Mr. Spreckels
| suggested, both TO the ministry and to mysel
that for motives of policy, the pipe order (being
4 large one) ought to be filled in the United
states, provided it could be filled there as
gestion and released the government from the
| contract, with proviso tina, if Mr.. Spreckels
was unable, through his American connections,
10 lay down the pipe here at the same figure s
my tender that the contract with me should
continue in force Mr.. Spreckels and | wer
to San Francisco ON the same steamer, | be :
on my way TO England IN the interests Of i'm
migration. Two or three days after GU,
arrival in San Francisco, Mr. Spreckels in.
formed me that the best tender he had
been able to obtain from pipe manufacturers
IN the eastern states was two cents per pound,
| ,kfiistJd in JAipJ in Ne1c YORK, which quo.
lation was a small fraction higher than the
contact price OF my pipe, laid 6o40u on Ns
| s0hayf az Honoinin. then of course placed
| the order in the hands OF my Glasgow agents
lor execution. The Bulletins iusinuation
| tha, received pay for the whole pipe order
before the pipe left England is untrue. re.
ceived only the customary one fourth advance
| and 7,uS TO receive one half on shipment from
| Glasgow. and the remaining one fourth on the
arrival OF the ship in Honolulu Harbor ! was
no, even furnished with letter of credit, Gus
iomaly in similar large transactions. On the
contrary ! was obliged to do the hnancierng
chietyout Of the resources and credit oi my iirm.
W far from being paid in advance, did not re-
ceye the final payment OF $4,000 until nearly
seven months after delivery Of the pipe ac'
oording TO contract.
This question has been brought directly be-
fore the pnblc in the above manner for two
reasons. Because Mr.. Maciarlane's version Of
ihe Transaction ought to be known, and be-
cause any diiiercul version that may be sub.
aanlialcd by facts is nov IN order. While
Mr.. Maclariane did not seek this publication,
he assures the writer that he Is prepared Ia
substanliate every statement made herein