The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-02-28
PROBING CANAL PURCHASES.
house COMMITTEE ASKS ABOUT
"EMERGENCYn ORDERS.
iSthnlan Commission Bousht supplies With
out Advertising for Bids Iiinted That
Certain Firms We're Unduly FaN-
ored-Prcsidcnts Order Violated"

WASHINGTON, Feb 27.-An exhaustive
inquiry into the so-oalled emergency
purchase by the Isthmian Canal Commits
sion was begun to-day by tho sub-oom-
mittee Of the HOUSE Committee on Inter
state and Foreign Commerce. Representa-
tive Townsend interrogated f. A. Drake,
VICE president of the Panama Railroad
Company, and A. S. Anderson u purchas-
ing agent Their testimony was as to
orders executed for the commission by the
officers of the railroad company, Mr.,
Drake said that about $4,000 had been
spent from May TO November Of last year
for supplies and freights, all without ad-
yertisement for bids
Both said they had no idea that that
sum covered all the so-called emergency
orders. all in violation, as the committee
thinks. OF the Presidents order Of May 8,
1901 Mr. Townsend asked questions
which gave the impression that Secretary
Murphy and Commissioner Grunsky took
great pains 10 see that orders for patented
articles were placed only with certain
firms.
Mr. Drake said that the commission had
bought large quantities of drain pipe at
Marion. Ohio This was bought by the
railroad company, but he couldn't say
if the purchases were necessary. Mr..
Drake communicated the amazing fact
that j. L. Mott Il Co. of New York were
named in one of the orders given 10y the
commission to the railroad company as
having the required goods. The order
In which Mott d Co. were mentioned was
Tor lavatories. Mr.. Drake said he did
not know that the lavatories purchased
from Mott 4 Co; had been condemned
by the New York Board Of Health.
Mr.. Townsend read the fourth section
OF the Presidents order of May 0, 1908.
recurring advertisement for BIDS on all
kinds OF engineering and construction
material
Did you know about that order?' in
duired Sir. Townsend.
Yes sir called the attention OF the
commission to It, but Admiral walker
speaking for the commission sal the
order did not apply TO emergencies such
a. this was.
MIR. Townsend asked Mr.. Drake who was (,
secretary OF the Canal Commission.
~ Murphy answered Mr.. Drake.
so far as you know he was not connected
with any of those who supplied materials
for the commission.
No sir.
In answer to questions by Mr.. lowering
Mr. Drake said that he believed the com
mission had done better by It's methods than
It could have done by advertisement. III
we were to try 10 get the same materials now
they would cost from % to 80 per cent.
more.
A. S. Anderson. until Feb. "A Of this year
assistant purchasing agent for the Canal
Commission was Intercepted as 20 the pro-
cedure followed by him, He said he
had never asked any one as to his right TO
buy without advertisement, because he re-
ceived orders from superiors. He under
stood that the orders we're for emergencies
and therefore no hurried shipments.
Did YOU ever hear that the docks at Colon
couldn't hold all you sent?' asked Mr..
Townsend.
yes, [ have heard l swamped them"
said Anderson with laugh.
Mr. Townsend's questions after that |
elected the fact that after Commissioner
Grunsky had talked much b Anderson
taken of his hands He doesn't know
whether that order was ever given. He
assumed that il was. The money value
Of the contract was about $4,000.
What Is the total amount Of money dis |
bursed by reason of contracts made by |
About $4,000
Any of these contracts let after adver-
tisingf'
NO. we never advertised for anything
IAN emergency suppiesf'
Understood to be So"
do YOU know Of any member or employee |
Of the Commission interested in any OF tho |
firms or corporations that have been fur /
nishing supplies Has Secretary Murphy (
ever recommended any firms or corpora
tions?"
NO more than 10 send me letters received |
by him from prospective bidders.
Mr. Anderson admitted that he had re-
oeived complaints from Southern mill
owners. He called them post mortems and /
said that they came from irresponsible men:
He refused 10 admit that they complained
because they had had no opportunity to
bid
Mr. Anderson objected to being called
back tomorrow, because he had lot OF
emergency ORDERS to dispatch from New
York The word emergency by this time
had become a signal for derisive laughter.
But this is a real emergency, he said