Omaha daily bee., 1906-05-16
LOWEST MARKET FAVORED
Taft Would Have Greatest Competition in
Buying Panama Supplies
CANAL OUTSIDE OF THE TARIFF WALL
Some Purchases Have Already Been
Made Abroad and One scotch
Bid is Lower Than
American.

WASHINGTON. May 15.-The president
today transmitted to congress a letter from
Secretary Taft, accompanied by numerous
appendices, in which the secretary, who
has the full approval of the president lays
down the principle that supplies for the
Panama canal should be bought in the
cheapest market, all things considered
whether American or foreign.
When this policy was inaugurated by the
secretary over year ago he sent letter
asking congress II this impartial buying in
the best market should be continued and
In the letter sent to the house today Mr
Taft reminds the president that congress
returned no answer to his questions
Secretary Taft's letter in the present in
stance relates chiefly to the purchase of
two sea-going suction dredEes. The Mary
land Steel company has put in a bid Of
S72iSSO while the Scotch firm OF simons &
Co. Of Renfrew. Scotland. offer to provide
the dredges at cost of S654,OOO, delivered
at the Clyde. Adding to the latter bid
incidental expenses of transportation TO
Panama, etc, Secretary Taft, after minute
calculation, finds that the Scotch bid is s
per cent lower than the American.
Some Purchases Abroad.
Secretary Taft states that some pur-
chases have already been made abroad
and at a considerable saving. particularly
in cement large quantities of which will
be required, well as other supplies. He
then briefly reviews the law in the mat
ter. showing that the act OF 1875, giving
preference 10 American producers and man
ufacturers in making government pur-
chases, applies only to the United States
and not 10 the canal strip.
'fTherefore tho sacratarv
suit of consideration Of general princi-
pies of law and the practice of the govern
ment, in the absence OF specific directions to
the contrary, is that in the construction of
the Panama canal in the canal zone on
the isthmus, which is outside the tariff
wall surrounding the United States proper
and into which, by virtue of the Hay-Va.
| rilla treaty with the Republic of Panama
| material, supplies and machinery OF all
kinds for the construction of the canal are
to be introduced free from tariff or i'm
posts, II is your duty to buy where you
can obtain the material, supplies and ma
chinery at the cheapest price, other condi-
| tions with respect to quality, prompt deliv-
| cry, etc, being equal. This view. II seems
| to me is confirmed by the failure of con-
| gress TO direct any different course on
your part, although the matter was
| brought to its attention more than a year
| ago and your view of your duty in the
premises. II congress took no further ac-
| tion, WAS clearly indicated"
! Desires, Prompt Action.
| Referring to resolution introduced by
Senator Dick, but never acted upon, the
secretary says:
III this resolution is to control the Rc-
| ceptance of bids for the construction of
these dredges, then 1t should be promptly
considered and passed by congress, for It
is OF great Importance to secure their early
construction. II there is no prospect of
early action by congress, shall direct Mr..
Shonts, unless ordered by you TO take a
! different course that he accent the bid OF