Birmingham age-herald., 1894-11-28
ALABAMA-JApAN PIPE CONTRACT

WHAT THE NICARAGUA CANAL WOULD DO.
 MT. T. B. Nichols, second vice. president of the great Howard Harrison Iron com pany of Alabama, in letter to the Msnu- facturers' Record in regard tothe reported gale of iron pipe to Japan. says:
 "We were the lowest bidders On 10, ,O00 tons Of pipe to be delivered at Tokio Japan, with the understanding that tbere would be from 30, ,O00 to 00, u00 tons in the deal be- fore 1t was closed, but we declined to sign up the contract, and we declined not be- cause there was not enough margin in the work, but because the Japanese govern ment required us to give a very excessive bond and wanted us 10 leave large percentage of our account until the con tract was completed.
 ''As this is contrary to our policy, we having decided to sell to the export trade on a basis of cash, money to be deposited in this country, after spending $500, S700 or $500 in cabling, we finally wrote to the gov ernor of Toklo, telling him that we felt that we-could not trade unless they would send duly authorized agent of the govern ment over here to examine into our manner and method of making pipe, said reppe- sentative to have fuil authority to contract with us. It was necessary to do this in order to secure proper rates of freight and insurance, for we could not get guaran- teed rate from the sailing vessels unless we knew the amount of each size pipe wanted and the amounts per month to be shipped. The pipe, by the way, would have gone via Pensacola instead Of Tacoma. It was necessary to have a represent ntatiye come over here, as their specifications for mak ing pipe were not satisfactory to us, being based on the European way of shorter lengths.
 "Now, in regard to the benefits that would arise to us in the event the Nica- ragua canal WAS opened up, we would say that you have struck warm spot in the writer's heart, as he has large map of the proposed Nicaragua canal in his office, Which he looks at frequently and dreams of rolling in wealth when the canal is opened. It would, so far as our business IS concerned, give us all the Pacific coast, Mexican, Central and South American, Australian, Chinese, Japanese and Pacific coast island trade in our line not only for cast Iron pipe, but for our sugar machin- cry, and, in the opinion of the writer, we would rather have foot of manufacturing ground in the state of Alabama than 10 feet in any other state in the union after the canal is completed.
 "I don't think l have exaggerated as to the business that we could control when you take into consideration tbat on this Tokio deal we paid heavy commissions, competed with all pipemakers of the world and paid long distance freights via rail and sail via Pensacola, and still we were the lowest bidders.
 "Now, if we could compete under these circumstances, you can readily understand that with short line, low rates of freight and regular steamers, weekly or tri- weekly, it would not only throw all business in question to us, but the business of those countries to the other manufacturers in this section of the country in fact, the whole of the Mississippi valley and western states, as well as the eastern states, would be materially benefited. p