The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1905-05-25
WASHINGTON.
From our Regular Correspondent.

washington, ~. T., May I8, 1905
Secretary Taft, by a perfectly
proper Interpretation of his duty
under the law, has raised a howl
from the stand patters Of which he
is not likely to hear tn, end for
many months. The Secretary has
decided that, in the absence of any
enactment by Congress, it is the
duty of the Panama Canal Commits
sion to purchase the machinery and
supplies for the Canal where they
can be bought the cheapest. In
other words, American manufactur.
ers must meet the Europeans in
open competition and must bid as
low as their foreign competitors or
their bids will be rejected. This
decision was reached after it had
been fully discussed at luncheon
which the President gave to the
Commissioners on their last day in
Washington and at a conference
which the Commissioners then had
with the Secretary of War.
***
The Importance of this decision
is manifest when some of the fig
ures are stated. For instance, the
Commission has been for some time
seeking to buy two ships for the
transportation OF material between
New York and Colon. They want
ed ships of 6,9oo tons burthen and
the price in this country for the
two was ST., 400. 900 whereas identi-
cal ships could be bought abroad
for $3.50, 900. Moreover, strange
as it may seem, the foreign ships
offered for $3.50, 900 were construct
ed of American steel plate manu-
featured by the Steel Trust but
sold to the foreign ship-builders at
81 or IS ton less than the Trust
would sell the same plates to Amer
leans.
Xxx
Another important item furnish
es a striking illustration. The
Commission has determined to re-
lay the track of the Panama Rail-
way with heavier rails and to dou-
BILE track the road. The rails for
this purpose can be bought abroad
for $40 ton, but if they are bought
in this country the Trust will
charge the domestic price of $33 a
ton. The rails bought abroad
would also be manufactured by the
Steel Trust in their Pittsburg mills.
OF course it is probable that, if the
President has the courage to adhere
to the policy mapped out by him
self and his Secretary of War, the
American Steel Trust will sell the
rails, steel cars, and similar mater
ials to the Commission, but it will
be compelled to give the same dis
count that it now gives to foreign
purchasers.
XXX
The argument of those who
strongly favor the policy Of the
Secretary of War is that the Pana-
ma Canal is great patriotic under
taking, to cost an immense sum of
money, and that with the utmost
possible economy it will be an ex-
pensive enterprise; that being of at
least semi-philanthropic character
it ought to be relieved of the tariff
tax and built as economically as
possible. The estimates and bids
which the Commission has already
received indicate that not less than
so per cent can be saved by COM
pelling American manufacturers
to compete against the European
manufacturers and that without in
juring the American manufacturers,
for the tariff is ample to secure for
them monopoly of the American
market and the Panama Canal is
an extraordinary enterprise under
taken outside the United States.
XXX
OF course no manufacturer is
willing to accept this view of the
situation. They, one and all, in
sist that "the American people are
going to build the canal and should
have the benefit of the trade which
the construction of the canal ere.
ates." They apparently forget
that it has all got to come out ol
the pockets of the American people
anyway, and that if they are sub
jected to extra taxation in order