Birmingham age-herald., 1895-08-01
THAT JAPANESE CONTRACT.
Some Light on the Failure of the Howard Harrison Iron Company to Se-
 cure It.

Last May Vice President Nichols of the Howard-HarrisonI Iron company went to Japan to bid on a large contract for pipe The fact was noted in the Age Herald at the time, and it was under stood that the contract would be let some time in July. It seems that the Howard Harrison compa ny's bid was the lowest by about 20 per cent of those submitted, but for some reason it was not accepted.
 William l.. Curtis, writing to the Chi cago Record from Tokio under date of June 27 tells the secret of the Howard Harrison company's failure to secure the order.
 He says:
 The second letting, for 14,0oo tons, is just taking place. Although the city ohi- eials were very much disgusted at the lack of faith shown by the American firm that was awarded the last contract, they invited the same people to bid again, and the same bidder, an Alabama com pany, was by far the lowest again. which shows that we can compete in prices with the world. But this proposal was rejected without ceremony or considera- ton, because it did not comply with the specifications. It stipulated that the pipe should be inspected delivered and paid for before it left the United States. Another American company requested that the specified tions be changed to read that way, but the city authorities politely declined to make such a conces- sion. They explained that whenever the government of Japan had purchased for eign supplies during the last twenty-five years it had always been upon the same terms and conditions-that is, payment in cash within three days after the in- spection and delivery in this country, and it could not change It's methods With out much trouble and expense. If it ac- tod Ina mi in A if compelled to send agents and inspectors over there and pay some commission house for looking after the chartering ot vessels and attending to the details or shipping.
 Both of the American firms invited to submit proposals sent agents here to make inquiries. One of these agents was the vice-president of the company he rep resented, and he was assisted by rep resentative of their New York selling agents, who do a large export business. These gentlemen made a thorough inves- tigation and reported strongly in favor of securing the contract if possible on any terms, not only because they believed there was a large profit in 1t, but also. what was more important, that IL Woulu give them an advantage in securing future business in Japan, because other cities are certain to follow the example of Tokio in establishing water works and other modern Improvements.
 The American minister, the American consul-general and all the bankers and business men they talked with told them that the city of Tokio had as good a credit as Boston or Berlin, that there was not the slightest risk Of securing payment if the contract was compiled with and that there was very strong desire on the part of the government to give the business to an American hrm The minister of public works said that preference would be given to American bidders wherever 1t was possible, and ex- pressed the hope that all three ot the firms invited would submit proposals.
 But the directors of the two companies at home lacked confidence in the reports of their agents. or for some other reason both declined to comply with the speell-s cations. One of them, as.>I nave said, refused to submit aarSa5id whatever un- less the cent.acL could provide for de- livery and payment in the United States, butaa proposal was submitted in It's be- half by a firm of American merchants in Yokohama who assumed all responsiblll- ty. The second American firm submitted a bid for delivery at Pensacola, newport News or any Atlantic or gulf port. al though it was aware of the refusal to change the specifications in this respect.
 It's bids was the lowest submitted- nearly 20 per cent lower than any other but the committee of the common council in charge of the business threw It out without further examination, and felt that it was an insult to their integrity