New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-16
WILL BUY IN BEST MARKET
MATERIALS FOR CANAL.
Panama Commission Not Limited to
Purchases of american Goods.

IFRoM THE TRTRUNE nrRrAuf
Washington. May ia most important de-
cision regarding the methods OF purchasing 70
be followed by the Panama Canal Conmis-
sion resulted from the luncheon Of the ex-
ecutive committee at the White House and ~
conference with Secretary TAFT to-day r
has been finally decided. wtth the approval OF
the Secretary. that supplies. machinery. YES
sells etc. SHALL in the ahsencej os- action by
Congress. be purchased in the chsaoesr market.
whether that market be in this coUatry
abroad. In many instances foas'sr manu-
facturers or American manufacture. corn
PEELED 70 meet the competition Of foreigners,
Will sell goods to the Canal Commission for
nearly 30 per cent less than the prevailing
prices in the American market, and the Secre-
tary Of War has decided that, in the absence
Of specific Instructions from Congress. it is the
duty Of the commission to construct the canal
as economically as possible The decision also
applies 10 the transportation of goods for the
cInal and foreign vessels may be employed
II American owners fail to meet the bids OF
foreigners for the same service. although in the
main the commission expects to own its own
vessels on the Atlantic and to depend on the
Pacific Mail Steamship Company for trans
portation the Pacific.
1t is explained that this one OF the first
questions to arise when the commission under
took the work OF construction. and when the
Secretary Of War transmitted 10 Congress. on
December 1, 1904. the first annual report OF the
commission. he called attention 10 the problem
and suggested that Congress should Indicate It's
wishes In the premises Congress did not re-
spond to this invitation, and it has therefore
been decided that the commission is in duty
bound to purchase machinery. supplies. etc, at
the lowest possible price
COST ABOUT HALF IN EUROPE
A specific instance Is furnished in the case OF
two ships of approximately 5000 tons burden.
which the commission has been for some time
trying to buy. If these ships were purchased in
this country they would cost 81. 100000. More
over. it is doubtful if the ships could be pur-
chased In the United States already built at any
price. and 1t would require eighteen months TO
construct them. When constructed they would
cost almost double what foreigners stand ready
to furnish them for Immediately
A high official who was present at to-day's
conference was asked whether or not it was
expected that steel rails and cars would be
purchased at or near PittsbUrg- The reply was
that such goods would be purchased there il
the producers offered as low prices as they now
offer to foreigners The Ptttsburs steel man
ufacturers must give the commission the full
foreign discount
1t is obvious the officials say. that IL the com
mission is permitted TO pursue the policy
adopted to-day 1t will materially decrease the
cost of the canal. On the other hand. it is eA-
pected that the decision will result in emphatic
protests from American manufacturers and ship
owners. and it would cause no surprise il Con-
gress were 10 direct that opposite course be
taken OF course, the commission Will cheer
fully carry out any instructions which may be
given by Congress. but il is not felt that the
commissioners ought TO assume the response
biIity Of purchasing at prices so much higher
than the lowest available without specific IN
structions from Congress
TAFT's STATEMENT To CONGRESS.
The statement which Secretary Taft made to
Congress on this subject is follows:
An important question Of policy is yet to bs
are not bound by any restriction OF Congress as
TO where they shall purchase machinery, ma
teral and supplies then IL would seem 70 Dc
their duty TO construct the canal as cheaply as
possible, and so to buy what they need where
they can get it cheapest This. however. lS
certain TO produce, every time that large con-
tract is awarded to a foreign mapufacturer or
dealer an Outcry the part of the American
unsuccessful competitors II congress alpIoS-s lp
the policy Of favOring American manufacturers
and dealers. even If it increases the cost OF tne
construction of the canal, then II seems 10 me
only Just that il should declare this Fohcy Ey
law and Law down 4 rule which the commission
exactly follow
THE CANAL AND THE TARIFF.
In further support of the administration, IL
is pointed out that the purpose of the tariff
is to insure the home market 10 the American
manufacturer and producer; that in the con-
struction of the Panama Canal the United
States has gone outside Of its own territory 10,
engage in a largely International enterprise
1t is therefore, no curtailment OF the market
ordinarily enjoyed by American industries -
purchase machinery and material Tor Vle cahti
in the cheapest market. while the magnitudS
oP tha Undertaking and the resultant expense
would seem to Indicate that American manu-
facTurars ought not TO demand that the bene-
fts they already enjoy as a result OF the
tariff be extended to a government WORK Whlc1
is largely for the benefit of all manklI.d' anu
-+bicb nerhaps will never pay for itself
II is expected that the decision or the Attorney
General finally settling the question as 10
-Latbsr or not the eight hour law applies on
~ isthmus will reach Secretary TAFT IN aoout
Tan dqvs There are strong indications that
the Attorney General VIII decide that the law
ovTIies 10 the canal as 10 all other government
,,iorl, II this is the tenor OF the decision ths
Iaborers on the canal Will be worked In three
sbifts ~ eight hours each, SO that the work viii
co ON continuously In any event the work VIII
he conducted continuously as soon as The electric
plant which is TO light the works Is In running
order
mission to-day held what will be its last meet
ing in Washington for many months. prepara-
rorv 10 starting for the isthmus- The commit
tee went to New-NOTk tonight to attend q
meeting OF the directors Of the Panama Railroad
Company tomorrow, and VIII san on Wednes-
day for the isthmus.