The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-05-16
WHOLE WORLD CAN
BID ON MATERIAL
Foreign Supplies May be Used
on Panama Canal
SIMPLY MATTER Of ECONOMY
Secretary Taft Endorses the Decision,
Saying They Will Buy Where the
Goods Can Be Obtained
Cheapest.

Washington, May 15.-The executive
committee of the Isthmlan Canal Com
mission today decided to purchase IN the
ships necessary for the building OF the
Panama canal.
This important decision was reached
with some reluctance because 1t was ap-
preciated by Secretary Taft and the eX-
ecutive committee that there would surely
be a great outery from tne two great in
terests in this country, the producers of
material and the shipowners if the pur
chases were not limited to the American
products. But it was decided that the
money consideration was so great that 1t
could not be ignored for it was held
that in some cases fully fifty per cent
more would be charged for material need
ed in the canal construction than the
same goods could be ocr-ed for in
Europe.
Can Buy Ships Cheaper.
Chief Engineer Wallace, for instance,
showed that two ships in addition to
those running between New York and
Colon, and owned by the Panama RaiI-
road company were absolutely necessary
to carry the food supplies and material
needed for the work. american ships
could be bought at any reasonable price
and when 1t came to building such ships
1t was found, according to Secretary
Tafts statement, that while ne can buy
two 26O-ton ships in Europe for s75o,0O0 1t
would cost $l,400,000 to build such ships
here. In addition while the European
ships could be had at once 1t would take
at least eighteen months to secure Amer
lean boats. Therefore 1t was decided to
buy the ships In Europe, or rather in any
port where they could be had cheapest
and obtained the quickest
As to material needed for canal con-
struetion. the committee decided that by
reserving to itself the right to purchase
in the worlds markets, 1t vnlllA at least
oblige American manufacturers to give
them the benefit of their foreign prices
If they wished to sell goods to the COM
mittee.
Taft Endorses Decision.
Secretary Taft explained today that he
felt obliged to endorse this decision, be-
cause, having given Congress every op-
portunity to give a contrary direction,
he felt that the very terms of the canal
act provided that it should be constructed
dl the 1OWtSi pbSSibit tpSts Anu III tliio
connection he called attention to the fol-
lowing recommendation contained in the
first report of the isthmian canal commits
sion:
AN important question of policy is yet
to be determined. If the isthmian canal
commission Is not bound by any restric-
tion of Congress as to where 1t shall ptr-
chase machinery, material and supplies
then 1t would seem to be their duty to
construct the canal as cheapy as possi-
BILE. so as to buy what they need where
they can get 1t cheapest. This. however,
is certain to produce every time that a
large contract is awarded to a foreign
merchant or dealer, an outcry on the
part of the American unsuccessful conf
petitor. If Congress approves the policy
of favoring American manufacturers and
| dealers even If it increases the cost of
the construction Of the canal then II
seems to be only just that 1t should de-
clare this policy by law and lay down
rule which the commission can easily
! follow"