The Montgomery advertiser., 1905-02-28
PURSUED A NEW LEAD
COMPASSION DID NOT ADvERTIsE
 FOR BIDS.
hnvstigatfon by House Sub Committee Dfsclesed That Purchasing Agent
 of Panama Railread Did
 Buying fer C0m- nalosiOneru.

Railroad Company closed last week the special subcommittee of the House Committee on Interstate and Foreign Commerce today struck a new lead which was pursued with vigor in an examination of vice-President E. A. Drake and Alfred Anderson. purchasing agent of the road. '"
 It developed that for six months. be- ginning early in May of last year the railroad company had acted as the pur- chasing agent for the Isthmian Canal Commission and that a total of $215,000 worth of supplies had been purchased in this manner without public advertise. ment for bids.
 This is regarded as a violation of Paragraph of President Roosevelt's letter of instructions to the committee under date of May g. 1904. which makes 1t the duty of the Commission ITO make and cause to be executed after due ad- vertisement all necessary contracts for any and all kinds of engineering and construction works" In detailing to the committee how it happened that the railroad had made purchases for the Commission, MT. Drake said that shortly after the rail- road property was transferred. or the stock had been acquired, and just prior to the transfer of the road to the Gov ernment. General Davis and Major Brooke rejected certain supplies for which they had made requisition on Ad- miral Walker, chairman of the Com mission.
 The chairman had recently been elected a director, he continued. ''and was at the office as the railroad was ment'o property he availed himself of its facilities for purchasing supplies.
 These were called emergency mat tcrs?" inquired MT. Townsend.
 At that time they were not" an- swered Mir. Drake, who then gave a detailed account of the class of sup plies purchased, a large part of which was lumber. A hurry order from Gen eral Davis for various utensils as a special order was filled. In making these purchases the officers of the road allowed the practice which always had been pursued, namely, asking bids by letter for several firms.
 In this case list of eighty-seven firms was made up from a much larger list of firms and all supplies bought were from these firms. In emergency cases no bids whatever was asked. The first $18,000 worth of supplies were paid for directly by the railroad. after which the Commission paid the bills. While no indications were received for the purchase of supplies from any par. ticular firm from members of the Ca- nal Commission, MT Drake said that asked was increased largely by appli- cation of others who said they had been told by members of the committee to apply. Asked what members had made such suggestions he mentioned Com missioners Grunsky, Harrod and Hock- CT.
 Did you purchase any lumber In Californian" asked MT. Townsend, add ing that he understood that was where MT. Grunsky was from.
 we had bids from California;" he replied. but had not accepted ahy up to the time the matter was taken out of our hands by Mir. Grunsky."' 1t was stat ed later that an order for to mill lion feet of lumber had been placed on the Pacif, coast by the Canal Commis- sion. MT. Drake said MT. Grunsky had contended that the Pacific coast lumber was cheaper and just as good. MT. Drake said his fifteen years experience with lumber in the tropics had led him to the opinion that the porous charac- ter of the Pacific Coast lumber united it for use in Panama.
 He understood, however, that the
 
 question was asked as to whether D. o. Mills was interested in the California lumber purchase, Mir Drake had no in- formation on the subject. No bids were asked from the North Central States, 1t being the policy of the purchasing de- partment of the road to get its supplies convenient to the Atlantic or Southern seaboard. Considerable lumber was purchased adjacent and shipped from New Orleans and Florida ports. Ques- tions intended to develop that the great quantities of material bought was not needed for emergency work failed of confirmation by the witness.
 He said that the specifications for lumber which had been made up through long years of experience re- garding requirements on the Isthmus were entirely changed by Chief Engi- neer Wallace, who adopted the specif- cations of tte Illinois Central Railroad and thereby greatly increased the cost of lumber.
 Mir. Anderson. who made these pur- chases. gave detailed information con- corning them.
 MT. 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 he was and had called the same to the attention of the Canal Commission. Admiral Walker had told him that the purchases were not covered by that or der. as they were emergency" reQuire- ments. MT. Drake maintained that from 25 to 33 per cent. had been saved to the Government in purchases made kIr hA