The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1908-05-23

with the Hilo Railroad was prepared
tardily;
That while the agreement as to rates
was not signed by either the Railroad
Company or himself, the same was re-
duced to writing and orally agreed up
on by both parties before Mr.. Metzger
submitted his bid
That with the sixty days advertise
ing contractors-sav probably Mr.,
Plummer who represented Mr.. r. A.
Perry of San Francisco-were dilatory
in ascertaining freight rates from the
Hio Railroad;
That the Hilo Railroad was dilatory
in not having prepared rates based on
various conditions, most of which could
have been foreseen, hereby forming
a basis for prompt consideration upon
application OF any contractor ut
should be stated in justice to the rail-
road company that they claim the
matter would have been taken up soon
err had not the return of Mr. Walter
Dillingham; been delayed, due, partially
at least, to his illness, but in any event
had any contractor called upon them
in time, they would have entered nego-
tiations)
That from the evidence available, the
opinion is not warranted that the Hilo
Railroad desired to quote a rate to Mr..
Metzger only, this, however, being sub
ject to proof by Mr.. Plummer that he
did not make the refusal attributed by
Walter Dillingham; to him.
Based on the above facts, it is be-
Neved that:
The bid of Mr.. Mayer should be re-
jected;
The bid of Mr.. Metzger should be ac-
cepted, provided-first, that it is not
based on a freight rate fixed by the
Hilo Railroad with the evident intent
of furnishing it to Mr.. Metzger only,
thus enabling them to dictate an ex-
orbitant charge for hauling; second,
that the price is reasonable.
With reference to the first consider
alton:
The only evidence warranting Sc
rious consideration is inference to be
drawn from the statement of Mr.. Plum
mer that he was practically denied a
rate by the Hilo railroad. If
the statement of Mr.. Walter Dill
bingham is correct, and there
is little evidence to the contrary, there
is no. proof of the charge of attempt to
control the rate. Unfortunately, it is
impossible to interview Mr.. PluInmer
further, and only such other evidence
as may be locally available can be con-
sidered. The main question of in
terest to this Office is whether or not
there would be any material reduction
in freight rates should the proposals be
readvertised-this being necessary in
case Mr.. Metzger's bid be not accepted
the other two bids being irregular and
excessive.
A very fair indicator of the reason.
ableness or of the excessiveness of the
freight rate of the Hilo Railroad would
seem to be obtainable by comparison
of the bids for rock hauled over the
railroad, and for rock not so hauled
The bid of Mr.. Mayer for rock pro,
cured from quarry off the Hilo Rail
road, one, or not to exceed two, miles
from the breakwater, is 81 so, while
! that of Mr.. MetZger for rock hauled q
miles over the Hilo Railroad is 81 SO
difference of but cents. This Sigh
the rate of the Hilo Railroad is rea
sonable The bid of 81 80 is probabl!
based on difficulties or other reasons
balancing the cost of the long
er haul. Beyond Mr. Hoogs simpl,
statement that if proposals were read
vertised they would make a much bet
ter figure, there is no evidence to war
rant the assumption that the bid O
$3.50 is not based on careful considera
ton of the actual cost with Teasopabl
contractors profit Needless to Say
such a statement should receive yer
little consideration. If they could hav
made a lower figure, but did not, know
ing the advantage of their location
there is little reason to assume tina
the figure is greatly in excess of tina
to be expected in the future tenders
There could therefore be no materia
advantage to the United States to re
advertise, while there would be tn
disadvantage of delay at least, and o
the possibility that such action Nigh
be interpreted as a recognition of IN
businesslille methods in submitting pro
pOsals for Federal work.
With reference to the second proyi
sion:
The original estimate Of this ohic
was 81 80 per short ton for stone i
place in the breakwater, if of type
or $1.47 per short to nif of type 2
While it is believed that these fil
ures are sufficient, if the entire breal
water be considered, still, since there
l reouired a relatively large Dercentaa