The Rathdrum tribune. (Rathdrum, Idaho) 1903-1963, 1905-05-26
An ECONOMICAL POLICY. ]
Adopted BY President and
I'll Secretary Taft.
REGARDING CANAL SUPPLIES
Will Buy Abroad # Home
Manufacturers are too High.

Will Buy Abroad # Home
Manufacturers are too High. X
- GsN se
WEEKLY LETTEE FROM wAsH1NGToN.
Beyond all question the most I'M
portant event in Washington during
the pas. week has been the decision
of Secretary of War Taft regarding
the purchase Of machinery and sup
plies for the Panama Canal. Mr..
Taft has decided that, in the alb
sence of legislation by Congress on
the subject, ttis his,duty and that Of
the Canal Commission TO construct
the canal on the most economical
policy practicable and to that end
that the Commission must purchase
supplies and machinery 10 the open
market and that American bidders
must make as low prices as Europeans
ii they are to secure the Commissions
trades IL is not expected, Of course,
that much will be purchased abroad,
but the American manufacturers,
especially the Steel Trust, must make
to the Commission the same discount
that they now make to foreigners.
For instance, the Steel Trust now
sells steel rails to foreigners for $50 a
ton while the price within the
United States is $33 a ton.
"a There is proportionately large
difference between the price Ameri-
can ship. builders have to pay for the
steel plates which compose the chief
expense in modern vessel construction
and the price paid by foreign ship
yards. For instance, the Canal Conn
mission has been seeking to buy two
ships Of about 5000 tons burthen.
b ds were received from American
and foreign builders. The foreigners
offered to supply the ships for $780,
900 while the lowest bid from Amerl-
can ship builders was $l,400,0 900.
Under these circumstances. Secretary
Taft instructed the Commission to
buy the foreign ships.
In discussing this matter 1T was
held by the President, as we'll as by
Secretary Taft and members of the
Z Commission. that no violation Of the
protective principle was involved for
the reason that the entire aim Of the
protective policy consisted Of pre-
serving the American market for the
American manufacturer and produc-
4 err that In this instance the United
States had embarked on q great semi
philanthropic undertaking, wholly
without the United States territory
and that it would be only just to the
whole people on whom will devolve
the great expense of the canal to
compel American manufacturers to
grant to the Canal Commission the
same discounts they are now granting
to foreigners, in fact would have
cheerfully granted to France had
that country continued the construc-
tion Of the canal.
The ground on which Secretary
Taft based his recommendation to
the President was slightly different.
The Secretary pointed to the fad
that he had, .in a report to Congress-,
laat December pointed out the prob
lem involved, intimated that the
Commission would hardly feel war
ranted in adopting a policy which
would enhance materially the cost OF
the caual, perhaps double it, without
authority from Congress, and con-
cluded by saying that it would bt
''only just for Congress to enact leYis
lation by which the Commission
could be easily guided In the alb
sence Of any expression from Congress
on the subject the Secretary argued
it would be usurpation of legislat-
i've functions for him or for thu
President to adopt policy which
would SO gravely enhance the cost O
the enterprise.
Many prominent Republicans heart
lily approve Of the Secre.ary's positlol
and commend the President for |
decision which is in line with practi
cal economy. The stand patters are
however, angry beyond expression
and the things they are saying woul'
be better unrecorded. General Gros
tenor, has declared himself ia EN-
nhatic terms and Rpprpsenta}iy