The San Francisco call., 1905-02-28
BUYS SUPPLIES
WITHOUT BIDS
Panama Railroad Acts as
Purchasing Agent for 18TH
; mian Canal Commission
SHOULD BE ADVERTISED
Committee of Investigation
Discovers Violation of
Presidents Instructions

WASHINGTON, Feb. 27-After de-
claring its investigation of the Pan
anna Railroad Company closed last
week, the Special Subcommittee of
the House Committee on Interstate and
Foreign Commerce to-day struck a
new lead which was pursued with Wig
or in an examination of Vice Presi-
dent e. A. Drake and Alfred Ander-
son, purchasing agent Of the road It
developed that for six months. begin
ming early in May of last year, the
railroad company had acted as the
purchasing agent for the Isthmian
Canal Commission and that a total of
$215,000 worth of supplies had been
purchased in this manner without pub
lie advertisement for bids.
Mr.. Drake in answer to a question
as to whether he was aware of the in
structions of President Roosevelt re-
garding the purchase of supplies. said
that he was. and had called the same
to the attention Of the canal commits
sion. Admiral Walker had told him
that the purchases were not covered by
that order, as they were emergency
requirements. Drake maintained that
from 25 to 33 per cent had been saved
to the Government in the purchases
made by the railroad
This is regarded as a violation OF
paragraph 4 of President Roosevelt
letter of instructions to the commits
sion under date of May 8, 1904, which
makes it the duty of the commission
Ito make and cause to be executed
after due advertisement, all necessary
contracts for any and all kinds of en-
gineering and construction works
In detailing to the committee how it
happened that the railroad had made
purchases for the commission, Drake
said that shortly after the railroad
property was transferred, or after the
stock had been acquired and prior to
the transfer of the road to the Govern
ment, General Davis and Major Brooks
requested certain supplies for which
they made reQuisition on Admiral
Walker, chairman of the commission
The chairman had recently been
elected director" he continued, land
was at the Office and with the gen
eral idea that the railroad was about
property he availed himself of it's IA
cilities for purchasing supplies"
Did you purchase any lumber in
California;" asked Mr.. Townsend
I'VE had bids from California he
replied, but had not. accepted any up
to the time the matter was taken out
of our hands by Mr.. Grunsky.''
1t was stated later that an order
for between two and five million feet
of lumber had been placed on the Pa
cific Coast by the Canal Commission.
Drake said Grunsky had contended
that Pacific Coast lumber was cheaper
and just as good. Drake said his fif-
teen years experience with lumber in
the tropics had led him to the opin-
ion that the porous character of sea
coast lumber untitled it for use in
Panama. He understood, however,
that the lumber was cheaper AL
though questions were asked as to
whether D. o. Mills was interested In
the California lumber purchase, Drake
had no information on the subject.
Admiral Walker, chairman of the
Panama Canal Commission, in an in
terview tonight justified every act of
the commission in the matter of pur-
chases of supplies. Every purchase
that had been made through or from
the railroad company, Admiral Walk
er declared, was made for the pur-
pose of obtaining the best terms and
best results in the interest of the Gov
ernment and time and money had
been saved thereby.