CIT ISTHMIAN CANAL. COMMITTEE ON INTEROCEANIC CANALS, UNITED STATES SENATE, Washington, D. C., Thursday, April 26, 1906. The committee met at 10.30 o'clock a. m. Present: Senators Kittredge (acting chairman), Dryden, Ankeny, Morgan, and Taliaferro. TESTIMONY OF ALFRED ANDERSON, ESQ. Mr. ANDERSON was duly sworn and testified as follows: The ACTING CHAIRMAN. Where is your residence? Mr. ANDERSON. 32 West Ninety eighth street, New York. Mr. ANDERSON. Assistant purchasing agent of the Panama Railroad and the Isthmian Canal Commission. The ACTING CHAIRMAN. How long have you held that position? Mr. ANDERSON. Of the Isthmian Canal Commission, a little over a year; of the Panama Railroad, about six years. The ACTING CHAIRMAN. Prior to the time you became connected with the Isthmian Canal Commission you devoted your entire attention to your duties as purchasing agent for the railway company? Mr. ANDERSON. Yes, sir. The ACTING CHAIRMAN. What was your occupation prior to the time of your connection with the railway company? Mr. ANDERSON. Prior to the time I was appointed purchasing agent I was in the secretary's office for about two years. The ACTING CHAIRMAN. In what capacity? Mr. ANDERSON. Clerk in the secretary's office. The ACTING CHAIRMAN. And what was your business prior to that time? Mr. ANDERSON. I was in the employ of various railroad companies in different capacities. The ACTING CHAIRMAN. As purchasing agent? Mr. ANDERSON. No, sir; in the maintenance of way department, and general manager's office, and general superintendent's office. The ACTING CHAIRMAN. And for what length of time were you employed with the railway companies to which you have referred? Mr. ANDERSON. From the time I was 17 until the time I went with the Panama Railroad Company. The ACTING CHAIRMAN. What were your duties as purchasing agent of the Panama Railway Company? Mr. ANDERSON. To purchase all material required at the Isthmus and in New York and for the Panama Railroad Steamship Line, their fleet of steamers. The ACTING CHAIRMAN. Under whose supervision or direction did you conduct that business? Mr. ANDERSON. That of the general manager. The ACTING CHAIRMAN. Reporting to him? Mr. ANDERSON. To the general manager; yes, sir. Senator MORGAN. Who was he? Mr. ANDERSON. Charles Paine was general manager for a while, and afterwards Mr. Drake was general manager. The ACTING CHAIRMAN. When you became connected with the Canal Commission in the capacity you have mentioned, in what respect, if any, did your duties differ? I Mr. ANDERSON. The duties of the assistant purchasing agent of the Canal Commission are largely in the way of forwarding material. devote more time to that than I do to the purchase of material. The ACTING CHAIRMAN. You have conducted purchases for the Canal Commission? Mr. ANDERSON. Yes, sir. The ACTING CHAIRMAN. Under whose direction are you working with the Canal Commission? Mr. ANDERSON. Under the general purchasing officer. The ACTING CHAIRMAN. Mr. Ross? Mr. ANDERSON. Mr. Ross; yes, sir. The ACTING CHAIRMAN Reporting to him? Mr. ANDERSON. Reporting to Mr. Ross. The ACTING CHAIRMAN. Do you report to the general manager of the Panama Railway Company in what you do for the Canal Commission? Mr. ANDERSON. No, sir. The ACTING CHAIRMAN. In what manner are your records kept to determine for which company you do work? Mr. ANDERSON. The records are entirely separate, you know. We have separate requisitions and separate systems of filing. The records of the two concerns are absolutely distinct. The ACTING CHAIRMAN. Have you, since you have been serving in the dual capacity you have mentioned, made any purchases for the Canal Commission through the railway company? Mr. ANDERSON. No, sir; not that I know of. The ACTING CHAIRMAN. State just what your duties are as purchasing agent of the railway company and as assistant purchasing agent of the Canal Commission, and the procedure you take in order to perform your duties. Mr. ANDERSON. In regard to the purchasing for the Panama Railroad Company, the supplies required at the Isthmus come up on what is called Isthmian requisitions. They are subdivided into three different kinds. There is one requisition that is prepared by the commissary down there calling for commissary stores of various kinds. There is a separate requisition which is prepared by the storekeeper calling for what we term material stores-that is, all stores other than those required by the commissary department and there is another requisition that comes up for stationery. Those three requisitions are the ones we receive from the Isthmus. In addition to that, there are requisitions made upon me for the requirements of the New York and pier offices-stationery and various office fixtures. Then we have a requisition which we fill every week for the various stores required by the steamers of the Panama Railroad Steamship Line. Those are all the requisitions that are filled by me. for the Panama Railroad Company. The ACTING CHAIRMAN. Who sends the requisitions from the Isthmus? Mr. ANDERSON. The commissary requisitions are sent to me by Mr. Burnett, the manager of the commissary department. The material stores requisitions are sent to me by the superintendent. Senator MORGAN. The superintendent of what? Mr. ANDERSON. Of the railroad company. Senator MORGAN. Who is he? Mr. ANDERSON. Mr. Bierd; and all those requisitions are approved by Mr. Stevens, the vice-president and general manager of the Panama Railroad Company. The ACTING CHAIRMAN. Prior to the time Mr. Stevens took charge, who approved these requisitions? Mr. ANDERSON. Prior to that time there was no subdivision in the requisitions down there, as all the requirements were in charge of the commissary, and those requisitions were approved by the commissary and by the superintendent, Mr. Bierd. The ACTING CHAIRMAN. Through whom do you receive requisitions for supplies for the Canal Commission? Mr. ANDERSON. Mr. Ross. The ACTING CHAIRMAN. Are they approved by anyone? Mr. ANDERSON. The requisitions are prepared at the Isthmus, and signed by the head of the department requiring the material, approved by the chief engineer, and transmitted to Mr. Ross, and he sends over to me such parts of those requisitions as he wants me to fill in New York. The ACTING CHAIRMAN. Did you furnish the new ships that were purchased last year? Mr. ANDERSON. No; I had nothing to do with that transaction. The ACTING CHAIRMAN. Who had that matter in charge? Mr. ANDERSON. I do not know, but I think it was Mr. Drake. Senator MORGAN. You say that when Mr. Ross sent you requisitions he would send you parts of requisitions? Mr. ANDERSON. Yes; he would notify me to the effect that the following material was called for under a certain number (as we call it), Canal Zone requisition, and direct that I make purchase of that material. Senator MORGAN. After you made the purchase, to whom did you report it? Mr. ANDERSON. I would report to Mr. Ross; at the same time of course communicating with the general storekeeper at the Isthmus of the Isthmian Canal Commission, advising him what I had done, and sending him the necessary invoices, etc., so as to enable him to identify and accept delivery of the material upon its arrival at the Isthmus. Senator MORGAN. When your purchases were made, to whom were they submitted? I mean those made for the Canal Commission. Mr. ANDERSON. I sent to Mr. Ross a complete record of all transactions. Senator MORGAN. Were any of them ever rejected? Mr. ANDERSON. No, sir. Senator MORGAN. As a matter of course, if you made a purchase under a requisition that he sent you, and you sent the account to him, he would approve it? Mr. ANDERSON. Yes, sir. Senator MORGAN. To what extent have you made purchases since Ross went into office? Mr. ANDERSON. They have not been considerable. They do not amount to much, Senator. Senator MORGAN. Have you the record of it? Mr. ANDERSON. I have not a record of the total cost of it; no, sir. Senator MORGAN. What kind of materials do you buy on Ross's requisitions from the Isthmus? Mr. ANDERSON. It would be hard to classify it. It is almost everything, you know-various kinds of material." Senator MORGAN. In large amounts? Mr. ANDERSON. No, sir; the amounts are not large. Senator MORGAN. Let us have about the largest amounts, some of the largest amounts that you have purchased. Mr. ANDERSON. The requisitions sent me by Mr. Ross for account of the Isthmian Canal Commission, I do not think, in any instance, exceeded $1,500. Senator MORGAN. What were they? What was the character of the material that you purchased? Mr. ANDERSON. Oh, it would be stationery and drawing material, miscellaneous light hardware, small supplies for the sanitary department down there, and things of that kind. Senator TALIAFERRO. Do they buy their stationery in New York? Mr. ANDERSON. Occasionally; small lots that are urgently required. It is only requisitions of that kind that are transmitted to me in New York. Requisitions received from the Isthmus calling for a considerable quantity of material, permitting wide advertisement, are always filled by the Washington office. Senator TALIAFERRO. Are your purchases advertised? Mr. ANDERSON. Yes, sir. Senator TALIAFERRO. Always? Mr. ANDERSON. Always. Senator TALIAFERRO. For what length of time? Mr. ANDERSON. In the purchase of small amounts, we would only advertise in this way-by posting on the bulletin board, and by requesting competitive bids from concerns that we know are competent to bid upon that class of material. Senator TALIAFERRO. The bulletin board in your office? Mr. ANDERSON. In the hall: yes, sir. Senator MORGAN. Have you always made your purchases from persons who made biddings under those advertisements? Mr. ANDERSON. Yes, sir. Senator MORGAN. None outside? Did they make regular biddings? Mr. ANDERSON. We try to get as many bids as we possibly can. |