The San Francisco call., 1906-05-16
NO FAVORITISM
WILDE Shown
Supplies for Canal Are to Be
Bought in the Cheapest
Markets.
Foreign Goods Acceptable if
Material Saving Can
Be Made.

WASHINGTON, May 15.-The Presi-
dent today transmitted toh Congress a
letter from Secretary Taft, accom-
panied 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 more than a year ago
he sent letter asking Congress if this
impartial 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's letter in the present
instance relates chiefly to the purchase
of two seagoing suction dredges. The
Maryland Steel Company has put in a
bid Of $724,S50. while the Scotch firm
Of Simons & CO. Of Renfrew, Scot
land, offers to provide the dredges at
a cost Of $654,o00, delivered at the
Clyde. Adding to the latter bid Incl
dental expenses Of transportation to
Panama, ETC., Secretary Taft, after
minute calculations. finds that the
Scotch bid is per oent lower than the
American.
TAFT REVIEWS LAW.
Secretary Taft states that some pur-
chases have already been made abroad
and at considerable saving, particu-
larly in cement, large quantities of
which will be required, as well as other
supplies. He then briefly reviews the
law In the matter, showing that the
act of 1875, giving preference to Amer
ican producers and manufacturers In
LING CnxyernraaY1f "a
only to the United States and not to
I'll 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-
cific direction to the contrary, is that
in the construction of the Panama
canal, in the canal zone, on the 18TH
mus, which is outside the tariff wall
surrounding 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 ror the construc-
ton Of the canal are 10 be introduced
free from tariff or imposrs, it is your
duty to buy where you can obtain the
material, supplies ana 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 year ago, and your view of your
duty in the premises, IL Congress took
no further action, was clearly indi-
Gated"
BIG SAVING ON CEMENT.
De =
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 1t should be
promptly considered and passed by
Congress. If there is no prospect Of
early action by Congress 1 shall direct
Mr.. Shonts, unless ordered by you to
take different course. that he accept
the bid Of William Simons & 90. Of
Renfrew, Scotland"
The Secretary transmits correspond
ence relative to the purchase of for
eign cement as summarized by Joseph
Bucklin Bishop, secretary OF the Canal
Commission Bishop says, in speaking
Of the 10000 barrels Of cement pur-
chased abroad:
The commission would not have
been justified In paying $7400 more for
American cement than for foreign ce-
ment, particularly in view Of the fact
that there was no doubt as to the
quality of the foreign cement being
fully equal to that offered by the low
est bidder on American cement"
Senator Dick Is quoted as protesting
against this purchase and saying, ITO
favor foreign manufacturers with pa
tronage at the expense OF business that
should be placed with American firms,
to the benefit of American labor and
industry, is not IN accord with the
spirit which it seems should dominate
those in charge Of a public work under
the auspices Of the American Govern
nent."