The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-05-15
BUY IN The OPEN.
Secretary Taft Lays Down Law
About Panama.
Supplies Will Come From Cheap
est Markets.
HE WON'T PAY MORE.
American Industries Must Stand
on Own Bottoms.
Must Sell as Cheap as Foreign
Firms.

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 mar
ket, all things considered, whether
American or foreign.
When this policy was inaugurated
by the secretary over a year ago he
sent a letter asking congress if this i'm
partial buying in the best market
should be continued, and in the letter
sent to both houses today, Mr.. Taft re-
minds the president that congress re-
turned no answer to his questions.
Secretary Taft states that some pur-
chases have already been made abroad,
and at considerable saving, particularly
IN cement, large quantities will be need
co as well as other supplies. He then
briefly reviews the law in the matter,
showing that the act of 1875 giving
preference to American producers and
manufa cturers in making government
purchases, applies only to the United
States and not to the canal strip.
Therefore, says the secretary, "the
result of a consideration of general
principles Of law and the practice Of
the government, in the absence of spe-
ciflc direction 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 sur
rounding the United States proper and
into which, by virtue Of the Hay
Varilla treaty with the republic of
Panama, material, supplies and ma
chinery of all kinds for the construc-
ton of the canal are to be introduced
free from tariff or iInposts, 1t is your
duty to buy where you can obtain the
material, supplies and machinery at
the cheapest price. other conditions
with respect to quality prompt deliv-
cry, etc, being equal. This view, 1t
seems to me, is confirmed by the fail
ure of congress to direct any different
course on your part, although the mat
ter was brought to~its attention more
than a year ago and your view of your
duty in the premises, II congress took
no further action, was clearly indi-
Gated. -
Referring to a resolution introduced
by Senator Dick but never acted upon,
the secretary says.
If this resolution is to control the
acceptance OF bids for the Construction
of these dredges then it should be
promptly considered and passed by con-
gress. IF there is no prospect of early
action by congress- J. shall direct Mr..
Shonts. unless ordered by you to take
q different course, that he accept the
bid of William Simons & Co, Of Rem
frew, Scotland .
The secretary transmits correspond
ence relative to the purchase of foreign
cement as summarized by Joseph Buck
lin Bishop, secretary Of the canal com
mission. Mr.. Bishop says in spea king
| of 10000 barrels of cement purchased
abroad:
THE commission would not have
been justified in paying 81, 400 more for
American cement than for foreign ce-
ment, particularly in view Of the fact
that there was no doubt as to the quail
/ ity of the foreign cement being fully
equal to that offered by the lowest bid
der on American cement
Senator Dick is quoted as protesting