Dunphy, who, being duly sworn, on his oath says:

My name is John M. Dunphy; I reside in the city of Chicago; I have resided here for the past forty-seven years. I was city treasurer of Chicago for one term; was commissioner of buildings for one term in this city; I have been engaged in the contracting business for the past forty years; I have been in the employ of Mr. S. Krug, contractor, of Chicago, for the past three years; I am very familiar with construction and wrecking work.

In regard to the sale of the salvage of the St. Louis Exposition I desire to make the following statement:

Through a friend, Mr. Krug received specifications and instructions for the wrecking and removal of certain buildings at the St. Louis Exposition. These specifications were obtained from Mr. Isaac S. Taylor, director of works of the Louisiana Purchase Exposition. After we had looked over the specifications Mr. Krug suggested that we go to St.

Louis and look over the plans and the buildings, with a view of submitting a bid on the work. Mr. Krug, Mr. Powers, and myself arrived in St. Louis on October 24, 1904. We called at Mr. Taylor's office that day. I asked for Mr. Taylor, but was informed by some clerk there that Mr. Taylor was too busy and could not see us. I talked with his secretary, Mr. Carl Hoblitzelle, in the presence of Mr. Krug and Mr.

Powers. He told us he could answer all questions. I told him I wanted to look at the plans, as we desired to figure on some of the buildings that were to be disposed of. He took us into another room where the plans were stored and introduced us to some gentleman in charge there. I requested the plans from this gentleman. I asked for the plans for the Agricultural and Horticultural buildings. After we had finished looking these two plans over I looked around for the young man to ask for more plans, but could not find him, and we went to the shelves and got down the plans ourselves.

While we were there looking over the plans some gentleman came into the room and spoke to Mr. Krug. Later on I asked Mr. Krug who the gentleman was, and he told me it was a Mr. Frank Harris, of the Chicago House Wrecking Company. Mr. Krug further stated that Mr. Harris was a resident of Chicago, but was then interested in the Ferris Wheel at the exposition. We remained in St. Louis for two days longer looking over the plans and buildings, and then returned to Chicago. I never saw any notice in the newspaper requesting sealed proposals for the wrecking and removal of the exposition buildings. The first I knew about it was when Mr. Krug received the specifications from his friend. We talked over the matter of submitting bids on the work. On the 9th of November, 1904; Mr.

Krug and Mr. Schmitt, a bookkeeper for Mr. Krug, went to St. Louis to submit a bid on the work, according to the specifications and instructions prepared by Mr. Taylor, director of works. The bids were to be in Mr. Taylor's office by 12 o'clock noon Thursday, November 1 1904.

Mr. Schmitt returned to Chicago on Friday night. Mr. Krug remained in St. Louis. Mr. Schmitt went to St. Louis again on Monday, November 14.

On Tuesday, November 15, Mr. Krug and Mr. Schmitt returned to Chicago and told me that all the bids had been rejected. Mr. Krug desired that some one be on the ground to look after his interests, and suggested that I go to St. Louis and keep in touch with affairs there and try and ascertain what was going on. I left Chicago for St. Louis on Sunday, November 20, 1904, and arrived at St. Louis morning of November 21.

After I was informed that all bids had been rejected I did not see any published notice requesting additional or new bids, although I watched the papers pretty close and tried to keep in touch with what was going on. I went to Mr. Taylor's office several times while I was there and sent in my card, as agent for Mr. Krug. I was informed each time by some clerk in the office that Mr. Taylor was busy and could not see me. I remained in St. Louis until the evening of November 26, when I was compelled to return to Chicago. I requested Mr. Wm. H. Ranstead, a friend of mine who lives in St. Louis and who was in pretty close touch with what was going on, to look after matters there for me during my absence, and to keep me advised of what went on, and if new bids were requested to telephone or telegraph me. On the morning of Tuesday, November 29, 1904, I received a telegram from Mr. Ranstead requesting Mr. Krug and myself to go to St. Louis at once, as Mr. Taylor and President Francis desired to have a talk with us. We left Chicago for St. Louis on the first train out--11.03 a. m.--and arrived St. Louis at 6 p. in. November 29. We met Mr. Ranstead at the Lindell Hotel. We talked over matters that evening. The next morning, November 30, Mr.

Krug, Mr. Ranstead, and myself went to the office of Mr. W.B. Stevens, secretary of the Exposition Company. We waited in Mr. Stevens's office some time. After a while Mr. Stevens took us to Mr. Taylor's office. The salvage committee was in session in Mr. Taylor's office. There were present at the time President Francis, Mr. Taylor, Mr. Samuel Kennard, and Mr. J.A. Holmes. We talked with the salvage committee, and asked them how they wanted us to submit a bid, and what they had to sell that they wanted us to bid on. President Francis said that he wanted us to bid on all the buildings shown in the specifications, and to include the intramural stations, the bridges, and the fence around the grounds; also the railroad rails and the copper wire. President Francis said that the bid must be in by 4 o'clock that afternoon. It was then about 12 o'clock noon. Mr. Krug said that he could not make an intelligent bid on such short notice and asked for more time. Mr. Kennard then spoke up and said: "Mr. Krug, you can give us a bid on the buildings, including the intramural stations, the bridges, and the fence this afternoon, and have it in by 4 o'clock, and we will give you until Friday, December 2, to put in your bid on the rail and the copper wire." President Francis then stated, "Mr. Krug, there are 2,000 tons of steel rail to be disposed of." Mr. Krug asked for a statement showing the amount of rail and copper wire, and stated he would be able to put his bid in before Friday if he was furnished the statement. President Francis stated they could not furnish such a statement. We then left the office and walked around the grounds looking over the stations, the bridges, and the fences. We did not look over the rail and wire that afternoon, as we thought we would have more time for that the following day. After we had gone over the ground we went and figured out a new bid and returned to the office of Mr. Taylor about 4 o'clock. The salvage committee was in session at the time. Mr. Frank and Mr. Abraham Harris, of the Chicago House Wrecking Company, were holding a conference with the committee at the time. About 5.30 p.m. the Harris brothers came out of the committee room without their overcoats and hats on. They had left them in the room where the committee was meeting. As soon as they came out we went in. We were asked if we had prepared our bid. I handed the bid to Mr. Francis, who in turn handed it to Mr. Kennard, who opened it and read it aloud.

The bid was for $101,000. This was only for the buildings, as shown by the specifications, and on the intramural stations, bridges, and fences, it being agreed during the talk in the morning that these latter items should be included. President Francis then told Mr. Krug that he could not wait until Friday for the bid on the railroad steel and the copper wire; that it would have to be in by 11 p.m. that night, and that the salvage committee would be in session until that hour. He said, "To-morrow is the closing day of the Fair--Francis Day--and I will be very busy." During our talk there then, President Francis told Mr. Krug that he had made a mistake that morning in saying there were 2,000 tons of steel rail; that there were 4,000 tons. Mr. Krug then asked for a list of the rails and wire, or rather for a statement of the amount they had purchased, so he could figure on it, but he was unable to get same.

We then left the fair grounds and went to the Lindell Hotel. As we were leaving the room President Francis asked our names and where we were stopping, and stated they would call us up over the telephone during the evening. When we arrived at the hotel we held a conference and agreed on a new bid. I went to the telephone at about 7.30 p.m. and called up Mr.

Taylor's office. I was informed by the party who answered the telephone that the salvage committee had adjourned at 7 o'clock. I presumed they had adjourned to get something to eat and would return shortly. About 8.30 p.m. I again called up Mr. Taylor's office and was informed that, the salvage committee had adjourned at 7 p.m. and would not be back that night. Shortly after this I called up President Francis's house and was informed that he was not at home. I then called up Mr. Taylor's house and was told that he was not at home. About 10 p.m. I called up Mr.

Holmes's residence and was informed that Mr. Holmes had gone to bed. I tried every way I could to reach some member of the salvage committee, but could not. The next morning, December 1, about 8.30 a.m., I called up Mr. Holmes's house and was informed that Mr. Holmes was then on his way to his office. I told Mr. Krug this, and he suggested that I go to Mr. Holmes's office and see him. I went to the office of Mr. Holmes and waited there some time. I think I was there about thirty minutes before he came in. When he came he invited me into his private office. I asked him what the salvage committee had done about the bids. He asked, "Did they not call you up?" I said "No; n.o.body called us up." He said, "Why, that is singular; it was understood that they would call you up before doing anything." I told him that I had telephoned the office of Mr.

Taylor the night before, and was informed that the salvage committee had adjourned at 7 o'clock. I asked him if the contract had been awarded, and he told me that it had been given to the Chicago House Wrecking Company before they adjourned at 7 o'clock on the evening of November 30. I went back to the hotel and told Mr. Krug and Mr. Ranstead that the deal had been closed and that the contract had been given to the Chicago House Wrecking Company. I asked him for what amount the contract was closed and he refused to tell me. I came back to Chicago the next day, December 2.

While we were in the salvage committee room talking about the bids I asked President Francis for a list of all the property to be disposed of, so that we would know what to figure on and make an intelligent bid.

He said that they were not furnishing lists to anyone; that they were only giving out the specifications, and that we could go out on the grounds and gather our own data. I never saw, by the papers or otherwise, that new bids were requested after I was informed that the first bids had been rejected.

I consider the manner in which the bids were handled very irregular, in that the bids were opened in secret, and not in public, as demanded by a majority of the bidders, and as is customary on large contracts. The manner in which the bids were handled was not in accord with the way the Government and the city handle bids.

I have had a great deal of experience in the past thirty years in figuring on specifications for the construction and wrecking of buildings, and never before saw specifications drawn up in the manner in which these specifications were drawn up. They required such a large deposit to accompany the bid and made the time limit too short, namely, three months. The usual amount required to be deposited with a bid runs from 5 to 10 per cent of the amount bid.

I have seen a list of the property acquired by the Chicago House Wrecking Company under the terms of the contract, and will say that I consider the market value of all the property at the time it was turned over to the Chicago House Wrecking Company, on November 30, 1904, to have been at least $1,000,000.

I will say further, that had the Exposition Company properly advertised the sale of the property, and had disposed of same in piece lots, they would have realized at least $1,200,000.

It was very apparent to me that the Chicago House Wrecking Company was being furnished inside information, and it was also evident that they were being favored in the deal.

I consider the awarding of the contract to the Chicago House Wrecking Company for the sum of $450,000 was detrimental to the interests of the United States, the city of St. Louis, and the stock-holders of the exposition.

JOHN M. DUNPHY.

Subscribed and sworn to before me this 28th day of March, 1905. My commission expires on the 15th day of October, 1905.

[SEAL.] HARRIET A. DUMAS, _Notary Public_.

APPENDIX 3.

REPORTS OF FOREIGN COUNTRIES.

THE ARGENTINE REPUBLIC.

In November, 1903, the organization commission was appointed by the President as follows: Senor Francisco Sequi, president; Senor Ricardo Pillado, secretary; Senor Luis Suberbuhler; Senor Antonio La.n.u.sse; Senor Francisco de Souza Martinez; Senor Manuel G. Llamazares.

Dr. Jose V. Fernandez, commissioner-general; Senor Eduardo Schiaffino, commissioner of fine arts; Senor Horacio Anasagasti, commissioner of liberal arts and mines; Senor Guillermo A. Puente, commissioner of manufacture and electricity; Dr. Damian Lan, commissioner of live stock; Senor Ernesto Nelson, commissioner of education; Senor Enrique M.

Nelson, commissioner of agriculture and forestry; Senor Jose de Olivares, commissioner of press and propaganda; Miss Ernestina A. Lopez, Ph.D., delegate of the National Board of Education; Mrs. Sara C. de Eccleston, delegate to the Women's Congress; Dr. B. del Castillo, delegate of the Argentine Press a.s.sociation; Dr. Luis A. Sauze, honorary commissioner; Dr. Vicente Casares, jr., honorary attache; Senor Ricardo Fernandez Guerrico, honorary attache; Senor Jorge Newbery, delegate of the munic.i.p.ality of Buenos Aires to the Congress of Electricity.

In the extent and importance of its partic.i.p.ation the Argentine Republic ranked among the greatest foreign exhibitors at the International Exposition of 1904. The total amount of money expended, including the national appropriation by Congress, the contributions of the various ministries of the Government and of the art, industrial, and scientific inst.i.tutions of the country, represented more than $300,000 gold. The total s.p.a.ce covered by the Argentine exhibit sections, independent of the site occupied by the national pavilion, was about 20,000 square feet.

The Argentine commission constructed an elegant pavilion at the northern extremity of the grounds in the renaissance style, which was a copy, although reduced in dimensions, of the two higher stories of the central part of the "Casa Rosador," or "Pink Palace," the princ.i.p.al Government building in Buenos Aires. In the pavilion was installed the offices of the Commission, a reception and a reading room. On the second floor was exhibited an excellent archaeological collection.

Numerous photographs distributed on the walls, in alb.u.ms, and in stereoscopic apparatus almost equaled a visit to the princ.i.p.al cities of the country. The princ.i.p.al exhibits of the Argentine Republic were found in the palaces of Agriculture, Mines, Liberal Arts, Manufactures, Fine Arts, Education, and Electricity. The art facades constructed about each of the exhibit s.p.a.ces in the greater palaces of the exposition were universally admired.

The Argentine Republic, being a country essentially agricultural, its section in the Agriculture Building revealed the productiveness of the country and its vast agricultural resources. Wool was displayed in numerous samples. That obtained from the Merino and Lincoln sheep was noticeable. The first species was of a short and exceedingly fine thread; the other, longer, coa.r.s.er, and adapted for the manufacture of "cheviot."

The Argentine Republic is reputed to be the greatest producer of wool in the world, having outrivaled Australia in its annual output. It is said to have 120,000,000 sheep, or as many as Australia and the United States combined. Besides wool, there was a magnificent display of sheepskins and hides. The industry of footwear and harness was excellently displayed.

The Argentine section in the Palace of Agriculture showed the enormous development of the dairy industry, including the manufacture of b.u.t.ter and cheese. Two large Argentine establishments exhibited natural milk, pasteurized, sterilized, and maternized. Both of these companies each day produced 6,000 gallons of milk, for which 5,000 cows are milked daily. In eight years the export of b.u.t.ter has multiplied twelve times.

The product exhibited was excellent, having been tested by examination and a.n.a.lysis made in various colleges of agriculture in the United States.

Numerous samples of wheat, corn, and cotton were shown also. There were samples of wheat weighing 67 pounds to the bushel. Statistics show that the annual harvest of wheat reaches 120,000,000 bushels. Argentine linseed also deserves consideration in this description, the Republic producing almost one-third of the linseed consumed in the world. Flax in abundance indicated the existence of an important textile industry in connection with the enormous production of linseed.

There were exhibited also various fibers extracted from native plants, and excellent samples of cordage showed what industry can get out of the rich Argentine textile material.

The Argentine section of the manufactures offered many interesting exhibits, among which figured a large variety of tanned leathers. In the same section was exhibited foundry work executed in the a.r.s.enal de Guerra, of the city of Buenos Aires. There were also artistic medals, ornamental shields, and munitions of war. One of the industries of Buenos Aires is the manufacture of wax matches. The exhibit in the section of manufactures spoke eloquently in favor of the position reached by the industry in Buenos Aires. Exhibits of this industry showed that Argentina is rapidly pa.s.sing into the rank of industrial nations. This suggestion was confirmed by the display of the other manufactures exhibited in the Argentine section, which consisted of furniture, textiles, hats, footwear, etc. The Republic also displayed an interesting collection of minerals, which generally are shown in the Departments Nacional de Minas Geologia, in the city of Buenos Aires.

There were samples of gold, silver, and copper on exhibition; also an excellent display of coal.

Another Argentine section of great interest was that in the Liberal Arts Palace, where an extensive collection of plans and relief models were displayed, showing notable works undertaken by the Argentine Republic to facilitate river as well as ocean navigation. One of the models showed the harbor of Buenos Aires, which now occupies the second place in the South American continent.

An interesting exhibit representative of the Argentine Republic was that of the national press, which in the number of publications presented and extent of s.p.a.ce covered was one of the most important displays of the kind in the exposition.

In consequence of the size and importance of the exhibit, it was found necessary to install it in a special section. The credit for the collection of the press exhibit was due princ.i.p.ally to the Circule de la Prensa, or National Press a.s.sociation of the Argentine Republic, one of the princ.i.p.al literary and journalistic inst.i.tutions in the southern continent. Models of dams, as constructed in the interior of the country to facilitate irrigation, were also shown. The same section contained excellent lithographic and engraving work.

The Argentine Republic had two rooms in the west wing of the Palace of Fine Arts. The Argentine paintings received as many awards in this department as any other country in proportion to the number of exhibitors.

The intellectual development of the country revealed itself in the Palace of Education. A graphic statistical exhibit in the Argentine section showed that that country spends as much money per capita in public education as any other nation in the world. Another statistical display demonstrated the number of teachers employed. A diagram showed that the Argentine Republic comes next to France and among the Latin countries in respect to the number of students attending schools. The scholastic works, especially the needlework, ranked well with that in many of the advanced schools of the United States.

AUSTRIA.

_Austrian commission._--Mr. Adalbert R. Von Stibral, commissioner-general; Mr. Victor Pillwax, a.s.sistant commissioner; Mr.

Dominik Fetz, secretary; Mr. Emil S. Fischer, commercial secretary.

_Austrian commercial commission._--Count Johann Harrach, president; Mr.

Oskar Edler Von Hoefft, first vice-president; Mr. Franz Hiess, second vice-president; Mr. Charles M. Rosenthal, executive commissioner; Mr.

Johann Peterka, commercial director; Mr. Adolph Taussig, commercial representative and a.s.sistant commissioner.