Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-05-15
BUYING OF SUPPLIES
Question of Purchase Abroad
or at Home
SUBMITTED TO CONGRESS
Foreign Bids for Canal Dredges Were
Lowest.
LETTER FROM SECRETARY TAFT
Views Transmitted to the Capitol by
the President With His
Approval
SUBMITTED TO CONGRESS
.ETTER FROM SECRETARY TAFT

gress letter from Secretary Taft, accom-
panied by numerous appendices, bearing on
the controverted question of the right of the
isthmian canal commission to buy supplies
abroad II they can be obtained cheaper than
IN America. The President, in letter to
Secretary Taft. says that the views ex-
pressed by the latter, in the affirmative,
have his full approval.
In this particular case, says Secretary
Taft. there were nine bids for the construc-
ton OF two sea-going suction dredges, one
to be used at Colon and the other at La
Boca, on the Pacific side of the isthmus.
The lowest two bids were submitted by,
first. the Maryland Steel Company of Spar
rows Point. Nd, at $724 $50. and the second
by the Scotch firm of William Smons &
Co. of Renfrew. at 1854 600. The Maryland
dredges were to be delivered at Sparrows
Point and the Scotch on the Clyde, but the
scotch firm offered to deliver them at Girls
tobal and La Boca at an advance on the
contract price of ST. $3.50 for the first and
$34.O2O for the second.
Saving on Foreign Bids.
Having in mind certain arguments ad-
vanced by the Maryland Steel Company in
favor of their bids, the Secretary says:
The result of these comments seems to
be that there is, under any circumstances,
a difference in favor of the bid of Simons
& Co. of about 8 per cent Of the total ex-
pendlture There is no question of the high
standing of both bidders, and no doubt that
II the bid of either is accepted 1t will be sat
fsfactor1ly performed. The exact question
now presented is whether, on the sole
ground that one bidder is an American
manufacturing corporation and the other is
Scotch. the fsthmian canal commission shall
pay to the Maryland company from 500, 600
TO $70,0O0 more for two steel dredges than
u rr,aU EIxy hos 7,,a<l
from Simons & Co.
I'm my letter of January u. 1906. in
which l transmitted to you the first report
of the isthmian canal commission invited
your attention to the general policy to be
pursued in cases like this
In the letter referred to the Secretary ap-
Pealed to Congress to specifically direct
him whether or not he should continue this
policy OF buying In the cheapest market,
but he remarks that no action has since
been taken by Congress on this subject.
he then briefly reviews the law as 1t
stands bearing On the procurement of sup
plies under government contract beginning
with the appropriation act of 1875, giving
preference to American material which act
he points out applies only to the United
States and not to the isthmus. Coming
down to the experience of the army in the
Philippines, the Secretary shows that large
amounts of meat have been bought from
because its cost was about one-half or
that brought from the Pacific coast.
Duty to Take Lowest Bid.
Therefore" says the Secretary. ''the re-
suit of a consideration Of general principles
Of law and the practice of the govern
ment, in the absence of specific 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
surrounding the United States proper, and
into which, by virtue of the Hay-Varilla
ha rarlrrb rf Do
terial, supplies and machinery of all kinds
for the construction of the canal are to be
brought in free from tariff or imposts, 1t is
your duty to buy where you can obtain the
material, supplies and machinery at the
cheapest price, other conditions with re-
spect to quality, prompt delivery, etc,
being equal. This view, it seems to me- is
confirmed by the failure of Congress to
direct any different course on your part, al
though the matter was brought to it's at
tention more than a year ago, and your
view of your duty in the premises If Con-
gress took no further action, was clearly
indicated.
II ought to add that, while of course a
very large proportion of all the purchases
made for the construction of the canal have
been from American merchants and manu-
facturers, some purchases have already
been made abroad. and saving effected In
the purchase of comparatively small guam
titles OF cement. In the construction of
the canal, an enormous quantity of cement
will have to be purchased, and the Ques-
ton will soon reeur again as to the accept
ance of foreign bids from this material.
Interest Of congressman.
Members of Congress have manifested
an interest In this matter. and Senators
Dick and Ankeny have applied to me to
know the situation. l append correspond
ence that l have had with both of those
gentlemen. together with form of reso-
luton which. at Senator Ankeny's request,
! had drafted to carry out his views. The
resolution has been introduced into the
Senate by Senator Dick.
las l pointed out to Senator Ankeny, X
this resolution is to control the acceptance
of bids for the construction of these
dredges, then 1t should be promptly con-
sidered and passed by Congress, for 1t Is
OF great Importance to secure their early
construction. If there is no prospect OF
early action by Congress shall direct Mr.
Shonts, unless ordered by you to take
different course, that he accept the bid
of William Simons & Co. Of Renfrew, Scot
land"
The Secretary transmits a letter from the
Maryland Steel Company In which they
contend. briefly stated, that II the vessels
are built In Scotland the costs of inspec-
ton will be about 5000 or $4,000 more
than II built here: that IL the vessels are
delivered at the isthmus the government
mltst take them over with unframed crews:
that the auxiliaries cannot be easily and
quickly replaced: that the costs OF trans
portation to the fsthmus are excessive, and
that the dredges cannot be used In United
States waters.
Mr.. Shonts' View.
Commenting on these arguments, Mr..
Shorts, chairman Of the commission, SAYS
the difference In cost OF inspection would be
trifiing: that 1t Will be easy to get men
familiar with the dredges and he attaches