Final Report of the Louisiana Purchase Exposition Commission

by Louisiana Purchase Exposition Commission

DISPOSAL OF SALVAGE OF LOUISIANA PURCHASE EXPOSITION.

State of Missouri, City of St. Louis, ss:

Before me, this the 16th day of March, 1905, personally appeared H.S.
Albrecht, who, being duly sworn, on his oath says:

My name is H.S. Albrecht. I reside in St. Louis. Have lived here the past twenty-five years. I am engaged in business in St. Louis. In regard to the sale of the salvage of the Louisiana Purchase Exposition Company I herewith make the following statement:

When I saw by the papers that bids were requested for the wrecking and removal of certain exhibit buildings now on the World's Fair grounds I decided that I would make a bid on same. I submitted a bid on that part of the salvage to be disposed of as shown in the specifications prepared by Director of Works Taylor and on following buildings:

Mines and Metallurgy; Liberal Arts; Education and Social Economy; Manufactures; Electricity; Varied Industries; Machinery; Transportation; Forestry, Fish, and Game; Agricultural; Horticulture; four dairy barns, octagonal; live-stock forum; Live-Stock Congress Hall; stock barns; Steam, Gas, and Fuel Building, and cooling towers; Festival Hall; terrace of States, including pedestals and statuary; two pagoda restaurant buildings on Art Hill; four fire-engine houses; five toilet-room buildings; five band stands.

The time limit set for the removal of the buildings and debris was short—namely, three months—and no one could make a reasonable bid. I made my bid in the sum of only $50,000 for that reason, and accompanied same by a certified check for $25,000, as required by the Exposition Company.

The bids were to be opened at 12 o'clock noon of November 10. I, with a number of other bidders, was present in an anteroom adjoining the office of Mr. Isaac S. Taylor, director of works. The bids were not opened at the appointed hour, and we waited there for three hours and until 3 o'clock. We expected the bids to be opened in public, as is done by the United States Government and the city when they dispose of large properties. We were called into Mr. Taylor's office and were informed by President D.R. Francis that the bids would not be opened in public, but in private. I immediately arose and offered an objection to this mode of procedure, as I did not think it was the proper way to handle the matter. I told them what I thought of the whole proposition. My protest was a vigorous one. A Mr. Harris, a representative of the Chicago House Wrecking Company, immediately arose and stated that he desired to have his bid kept secret. Mr. Francis overruled my objection and sustained Mr. Harris. Mr. Francis asked the other bidders present what they desired as to the manner of handling the bids, and they all stated that the bids should be opened in public and not in private. Not only as a contractor, but as a stockholder of the Exposition Company, I demanded that the bids be opened publicly, in a straightforward manner. We were instructed to go out into the anteroom and remain until called for. About fifteen minutes later I was recalled alone to the meeting room of the salvage committee, where President Francis questioned me in regard to the $50,000 bid, and asked whether I could remove the property in the time limit set. I informed the gentlemen that I could make my bid considerably higher if I was granted more time in which to remove the debris. President Francis asked me how much more I could bid, and I told him I could not state offhand. The conditions as to the removal of the wreckage in the specified time, namely, three months, were somewhat prohibitive, as it would be impossible to fulfill the requirements without an enormous expense. It would be well-nigh impossible to get sufficient men and teams on the work to complete the same in the specified time. President Francis stated to me that it was probable that all the bids would be rejected. I requested him to ask for new bids, which were to be opened in public, or that the property be sold at public auction. I saw by the newspapers a few days later that all bids had been rejected, and my check for $25,000 was returned to me. I later saw by the papers that the Exposition Company contemplated forming a company among the directors and wreck the buildings themselves and dispose of the salvage. Later on I saw in the papers that the Chicago House Wrecking Company was figuring to buy all the World's Fair property, and was about to close a deal for the purchase of the salvage in the sum of $386,000.

No further information as to the sale of the salvage was ever furnished me, nor was any notice given me that further or additional bids would be received.

I had never at any time been furnished a list of the property for sale, and made my bid on the buildings as shown by the specifications prepared by Mr. Taylor, director of works. I requested a list of the property for sale, but was never able to get one.

As soon as I heard that the property of the exposition was to be sold to the Chicago House Wrecking Company for the sum of $386,000 I wrote a letter to President Francis as follows:

DECEMBER 5, 1905.

GENTLEMEN: Noticing in the daily papers that you will sell the entire property owned by the Louisiana Purchase Exposition, including railway tracks, exhibit and other buildings, fencing, furniture, wiring, lamps, piping, plumbing, machinery, etc.—in fact, everything owned by the company. If this is the fact we can pay you about $400,000 and perhaps more. Will you kindly furnish us a complete list of everything that you have for sale and specified time of removal, so we can give you an intelligent bid or proposition?

Very respectfully,
SCHOELLHORN-ALBRECHT REAL ESTATE CO.,
Per H.S. ALBRECHT, President.

President D.R. FRANCIS and
BOARD OF DIRECTORS ON SALVAGE,
Louisiana Purchase Exposition, St. Louis.

I failed to receive a reply to the above letter or to receive a list of the property to be sold, and was not notified that further bids would be received therefor. As far as I know, none of the former bidders, nor any one else, for that matter, were given the slightest opportunity to bid on the whole property, except the Chicago House Wrecking Company.

There seemed to be a disposition on the part of the salvage committee to observe the greatest secrecy in procuring the bids and the awarding of the contract. The property was not properly advertised and lists were not furnished to bidders, as is customary in public sales, where large amounts of valuable property is to be sold.

From the contract between the Exposition Company and the Chicago House Wrecking Company, now a matter of record here, I have noticed the nature of the material and property sold to the Chicago House Wrecking Company, and had I been furnished a list of that property I would have bid $750,000, all cash, and would have made a great profit on it at that price. If the property had been properly listed and widely advertised, much higher bids would have been made. If the property had been properly advertised and had been sold at public auction, in detail, I am safe in saying that the Exposition Company would have realized more than $1,000,000 out of the salvage. In my opinion the property delivered to the Chicago House Wrecking Company was of the market value of fully $1,500,000.

H.S. ALBRECHT.

Subscribed and sworn to before me this 16th day of March, 1905. My commission expires on the 22d day of July, 1909.

[SEAL.] IRA C. MONEY, Notary Public, City of St. Louis, Mo.

STATE OF MISSOURI, City of St. Louis, ss:

Before me, this the 16th day of March, 1905, personally appeared Charles
L. McDonald, who, being duly sworn, on his oath says:

My name is Charles L. McDonald. I reside in the city of St. Louis. Am connected with the St. Louis Steam Forge and Iron works. I saw by the St. Louis Globe-Democrat of October 17, 1904, that Mr. Isaac S. Taylor, director of works of the Louisiana Purchase Exposition, had requested sealed proposals addressed to the "Committee on Salvage and Sale of Buildings," for the wrecking and removal of certain exhibit buildings now on the World's Fair grounds, and that specifications and instructions for the above-mentioned work and drawings and specifications of the buildings to be wrecked could be seen at the office of Mr. Taylor. All bids were to be in Mr. Taylor's office by 12 o'clock noon of Thursday, November 10, 1904.

The specifications and instructions as prepared by Mr. Taylor for the wrecking of the buildings, and for which sealed proposals were requested, only applied to the following buildings: Mines and Metallurgy; Liberal Arts; Education and Social Economy; Manufactures; Electricity; Varied Industries; Machinery; Transportation; Forestry, Fish, and Game; Agriculture; Horticulture; four dairy barns, octagonal; live stock forum; Live Stock Congress Hall; stock barns; steam, gas, and fuel buildings and cooling towers; Festival Hall; terrace of States, including pedestals and statuary; two pagoda restaurant buildings on Art Hill; four fire-engine houses; five toilet-room buildings; five band stands; and excluded, or rather did not include, all electrical wiring, piping, plumbing, roadmaking machinery, fire hose in the various buildings, two hospitals complete, Jefferson Guards' uniforms and accouterments, railroad tracks in the various buildings, the Intramural Railway, which included all the equipment (except the cars), hothouses, horses, wagons, and vehicles of all kinds, and many other valuable items.

I submitted a bid on one of the buildings only. However, I was associated with Mr. Albrecht and others when he submitted a bid on all the buildings as shown by the printed list, and was also concerned with him in his proposition of December 5, wherein he offered $400,000 cash for the property, and more if a list of all the property could be secured.

The conditions embodied in the specifications and contract, with reference to the time limit for the removal of all the debris from day to day as the work progressed were too exacting, in that they did not allow sufficient time, and if the same were strictly enforced by Director of Works Taylor would materially add to the expense of the contractor. The time was too short for the amount of work to be done.

On November 10, at the hour called for the opening of the bids, I was present and appeared with other bidders before the committee on salvage. I, with a number of other bidders, waited until after 3 o'clock for the committee to get together and open the bids, and was very much surprised when President Francis announced that all bids would be opened in secret by the committee. This procedure was not in accordance with the custom of the Government and city in the handling of its property when same is for sale under bids. Mr. Albrecht objected to the bids being opened in secret session and demanded that they be opened before the bidders. President Francis asked me what I had to say about the way in which the bids were to be handled, and I answered that I could do nothing more than emphasize the protests of Mr. Albrecht.

I have been a bidder at many sales of both Government and city, property, and the method employed at such sales provided for the opening of bids in public in the presence of such bidders as desired to be present.

A few days later I saw by the papers that the Exposition Company had rejected all bids. After the rejection of our first sealed bids, I learned through another bidder, with whom I was interested, that the World's Fair officials had announced that it was probable that they would wreck the exposition buildings themselves. Upon this information I dropped the matter and heard nothing further about the bidding until it was announced that the Chicago House Wrecking Company had secured the contract. When I heard that the Fair Company proposed to do its own wrecking I thought it a good plan.

The carrying on of the bidding through private negotiations, as President Francis terms it, was not, I contend, the most advantageous to the Exposition Company and its stockholders. If they had given all the bidders an equal show in the matter, and had furnished a list of the property to be sold, much higher bids would have been obtained.

The secrecy with which the contracts were handled did not give the bidders a fair opportunity, and was, I believe, an injustice to the thousands of stockholders of the exposition. The United States Government, the city of St. Louis, and the stockholders were partners in the exposition, which made the fair unquestionably a public institution. Why, then, were not the bids opened in public, thus securing the largest amount for the exposition and for the stockholders? This was not done. If it had been the bidding would have been greatly stimulated, bringing results quite different. The salvage committee refused to allow the bids to be opened publicly before the contractors, but held them for their eyes only. This is not in accordance with the manner of handling bids on big public works. When the partial list of property was given out the requirements in the specifications almost made the bidding prohibitive. The Exposition Company demanded a check for half of the amount of the bid. In all my experience I have never before been asked to meet such a requirement. In itself that was almost enough to drive off the bidders. The Chicago House Wrecking Company put up less than one-fourth of the price to be paid, or $100,000.

I am of the opinion that had the Exposition Company properly prepared a list of its properties and holdings and furnished the prospective bidders with such lists and an opportunity for the examination of the articles mentioned therein, together with a reasonable period of time for removal of the buildings and debris, they could easily have obtained $750,000.

I have obtained a more comprehensive knowledge of the amount and character of the material and property since put into the hands of the Chicago House Wrecking Company, and am of the opinion that at the time the contract was made with the Chicago House Wrecking Company the property sold represented a value in excess of $1,000,000.

There was present in the office of Mr. Taylor, director of works, at the time the bids were to be opened the following members of the salvage committee: President Francis, Director of Works Taylor, John A. Holmes, Mr. Samuel Kennard, and Mr. John Scullin.

Had I been furnished with a list of all the properties that I have since learned was acquired by the Chicago House Wrecking Company I would have gladly submitted a bid in the amount of $500,000.

C.L. MCDONALD.

Subscribed and sworn to before me this 16th day of March, 1905. My commission expires on the 22d day of January, 1909. [SEAL.] IRA C. MONEY, Notary Public, City of St. Louis, Mo.

STATE OF ILLINOIS, County of Cook, ss:

Before me this the 28th day of March, 1905, personally appeared Mr. S.
Krug, who, being duly sworn, on his oath says:

My name is S. Krug. I am a resident of Chicago. Have resided here for the past thirty-seven years. For the past twenty-seven years I have been engaged in the excavating and sand business. During this time I have also been engaged on contracts for wrecking large buildings. I wrecked the First National Bank Building, the Metropolitan Building, the Montauk Block; Hibbard, Spencer & Bartlett store, and numerous other large buildings in Chicago.

In regard to the sale of the World's Fair salvage at St. Louis I will make the following statement:

I was told by a friend of mine that bids had been requested for wrecking and removal of certain World's Fair buildings at St. Louis, and that specifications and instructions could be obtained from Mr. Isaac S. Taylor, director of works. For business reasons I did not wish the Exposition Company to know that I wanted to figure on the contract. I asked a friend of mine to procure a copy of the specifications for me. It was necessary for him to deposit $10 for the specifications. He sent the specifications to me. Mr. John M. Dunphy, who is in my employ, and I went over the specifications at length and studied them pretty thoroughly. The specifications only referred to exhibit buildings, band stands, fire-department houses, live-stock barns, dairy barns, Festival Hall, fuel building, terrace of States, and toilet-room buildings. On October 24, 1904, some ten days after we read over the specifications and instructions, Mr. Dunphy, Mr. Powers, and myself went to St. Louis to look over the plans to see the nature of the material and the construction of the various buildings. We went to Mr. Taylor's office and were informed that Mr. Taylor was busy and could not see us. Mr. Taylor's secretary, Mr. Carl Hoblitzelle, took us into an adjoining room. He did not ask our names, and we did not tell him who we were. While we were waiting in this room—I presume we were there about five minutes—Mr. Frank Harris, a member of the Chicago House Wrecking Company, came into the room. It looked to me as if he had been posted as to our, being there and came to see who we were. Mr. Harris remained there three or four minutes and then left. We asked the clerk in charge of the office there for the plans of the various buildings to be wrecked. He handed us two sets of plans—one for the Agricultural and one for the Horticultural Building. We requested more plans of him, but he said he was too busy to take them down and immediately left the room and remained out all the time we were in there. We went to the shelves and took out the plans ourselves and looked them over. After we had looked over the plans for a couple of hours we went out on the exposition grounds, and spent the rest of that day and the next on the grounds, and on the following day we returned to Chicago. The bids were to be in Mr. Taylor's office by 12 o'clock noon Thursday, November 10, 1904. Mr. Schmitt, my bookkeeper, and myself went to St. Louis on November 9 and were present at Mr. Taylor's office in the Administration Building before the hour of 12 o'clock noon, November 10. I had prepared my bid. At this time I only bid on the stock barns, live-stock forum, Congress Hall, Agricultural and Horticultural buildings. I also had a separate bid prepared for the Transportation Building, which I submitted. I took my bids and handed them to Mr. Carl Hoblitzelle, Mr. Taylor's private secretary. He placed them in his desk and said he would bring them to the attention of the committee when the time came to open the bids. Mr. Schmitt and I then went into an anteroom, where the other bidders were gathered. There were present at the time Mr. H.S. Albrecht, of the firm of Schoellhorn & Albrecht, St. Louis; Mr. Charles McDonald, of the St. Louis Steam Forge Company, St. Louis; Mr. W. Ware, of the Columbia Wrecking Company, St. Louis; a Mr. Schaeffer and son, of St. Louis, and Mr. Frank and Abraham Harris, who represented the Chicago House Wrecking Company. There were one or two other gentlemen present, but I can not now recall their names. Some middle-aged man came in with the Harris Brothers. He seemed to have free access to the room where the salvage committee was in session, and ran back and forth two or three times and held a conversation with the Harris Brothers in the hall. We expected the bids to be opened at 1 o'clock. It was now some time after 1 o'clock. We were all waiting there when President Francis came in and announced that they were going to lunch, and for us to come back later on. We all left the room and I with several other gentlemen went to get a little lunch. We were back in the anteroom of Mr. Taylor's office by 2.30 p. in. We waited there until 4 o'clock when Mr. Taylor's secretary came into the room and requested all the bidders to go into the room where the salvage committee was in session. The committee met in Mr. Taylor's office. President Francis, Mr. Taylor, Samuel Kennard, Mr. Holmes, and some other gentleman, I can not call his name now. President Francis arose and said: "Gentlemen, the bids are all there on the table and we will open them shortly." He asked how we wished the bids handled—that is, whether we wanted them opened in our presence or in a secret session of the Committee. Mr. H.S. Albrecht, of St. Louis, immediately arose and stated that he wanted the bids opened in the presence of the bidders present, as he wanted everything to be open and above board. All the other bidders present requested that the bids be opened in their presence, except Mr. Abraham Harris, president of the Chicago House Wrecking Company, who arose and offered an objection to the bids being opened in public, and stated that he did not want his bid to be opened in public, but wanted it opened in private, for the reason that he did not want everybody to know what his bid was; that if he was the successful bidder his bid would be published and everybody would know what it was, but if he was not the successful bidder he did not want it known what amount he bid. President Francis held a whispered conversation with several members of the committee and then turned to the bidders and said: "Gentlemen, we have decided to open the bids in secret session." He thus favored Mr. Harris and ignored the demand of the other bidders. Mr. Albrecht again demanded that the bids be opened in our presence. We were then told to repair to the anteroom and wait until called for. While we were waiting in the anteroom Mr. Taylor's secretary called Mr. Abe Harris into the committee room, where the salvage committee was opening the bids. He remained in there some little time. As soon as Mr. Harris came out Mr. H.S. Albrecht was called in. He told me when he came out that he had entered a vigorous protest as to the way the bids were being handled, and that he as a stockholder and a bidder had again demanded that the bids be opened in the presence of the bidders. Mr. Schmitt and myself were next called into the room where the salvage committee was in session. Mr. Taylor asked me if I knew a Mr. Schluetter, of Chicago. I told him that I was well acquainted with the gentleman, that I had done considerable work for him in Chicago, and that he had always paid me for it. When I made this remark President Francis looked at Mr. Taylor and laughed in rather a sneering way. I presumed from his actions that the Exposition Company had had some trouble with Mr. Schluetter. President Francis said to me, "Mr. Krug, you have some excellent recommendations here from prominent people and banks of Chicago." I told him that I was well able to carry out any contract I undertook, as I had good financial backing and understood my business. He said to me, "Mr. Krug, your bid is very satisfactory, but why have you not submitted a bid on all the buildings shown in the specifications?" I told him I had taken into consideration the insurance on the various buildings and that I was afraid I might have trouble in getting insurance on all the buildings, and therefore submitted a bid on buildings that were quite a distance apart and less liable to fire. I told President Francis at this time that I was willing to submit a bid for $76,600 on all the buildings shown in the specifications prepared by Mr. Taylor. My first bid did not include all the buildings shown in the specifications. I made this offer offhand. He asked me if I wanted to figure on wrecking the buildings for the Exposition Company on a percentage basis, they to own all the material and sell it and I to get a per cent for doing the work. I told him I would take it by contract for an agreed figure or would do the work for him on a percentage basis, and that I would be glad to do anything for him I could. President Francis said to me, "Mr. Krug, you put in your bid for $76,600 in writing and have it in this office to-morrow morning." We were then asked to wait out in the anteroom. We waited there until about 6 o'clock. At about 6 o'clock Mr. Taylor's secretary came in and announced that the meeting had adjourned until the next day. We all left the room then. At 10 o'clock the next morning, November 11, 1904, Mr. Schmitt and myself went to Mr. Taylor's office, where I filed my bid in writing for $76,600 to cover all the buildings shown in the specifications. We waited there until about 4 o'clock, expecting some decision from the salvage committee. About 4 o'clock Mr. Taylor's secretary came in and announced that the meeting of the salvage committee had adjourned until the following Monday.

The conditions embodied in the specifications as to the time allowed for removal of the wreckage were so prohibitive as to render it almost impossible to carry them out. The time limit—namely, three months—was too short. It would entail an enormous expense and waste of material to try to comply with the time conditions stated in the specifications.

The amount required by the specifications to be deposited in the form of a certified check, payable to the Exposition Company, viz, 50 per cent of the amount of bid, was very exorbitant. This check was to be forfeited to the Exposition Company in the event the successful bidder failed to enter into a contract with the salvage committee within five days after they accepted the bid. I consider the amount demanded, 50 per cent, very excessive, and it had the effect of frightening bidders away. A 5 to 10 per cent deposit is usually the amount required by the Government and the city.

The specifications also stipulated that the full amount of the contract, less the amount of the certified check, held and to be appropriated by the Exposition Company, must be paid to the Exposition Company at the time the contract is signed. I consider this out of all reason, and in itself would have a tendency to prohibit bidding.

The time-limit clause, namely, three months, from March 1 to June 1, 1905, in which all the buildings must be torn down and the grounds cleared, was entirely too short a time, and out of all reason, as it would be physically impossible for any contractor to do the work in the time specified, and no contractor would attempt it under the terms of the specifications unless he knew he would be favored with an extension of time later on.

The specifications appear to me to have been drawn up with the intent and purpose of discouraging bidders. In all my experience I have never encountered such requirements as set forth in those specifications.

I told Mr. Taylor and President Francis that the time limit was too short, and that I would be glad to make a much higher bid if they would extend the time. They said, "We cannot extend the time one day—the grounds must be cleared by June 1, 1905."

On the following Monday, November 14, 1904, I went to Mr. Taylor's office at 10 a.m. I was informed by Mr. Taylor's private secretary that all bids had been rejected, and that I would be notified if further bids would be requested. I returned to Chicago that night, and awaited some advice from the Exposition Company as to what disposition was to be made of the property, and if new bids would be requested. For fear that something might happen that I would get slipped up on, and the contract be given to some one else, I sent my agent, Mr. John M. Dunphy, to St. Louis, so that he would be on the ground and be in touch with what was going on, and told him to watch the papers to see if new bids were requested. Mr. Dunphy was in St. Louis from November 20 to 26, inclusive, and he informed me that during all this time he was unable to get any information as to what the Exposition Company was going to do with the property or whether new bids would be asked for. Mr. Dunphy was compelled to return to Chicago on the night of November 26. He asked a friend of his, a Mr. William H. Ranstead, who lives in St. Louis, to look out for news in regard to the wrecking of the World's Fair buildings, and if new bids were requested to notify him immediately by telephone or by telegraph. On November 28 I received a telegram from Mr. Ranstead, as follows:

ST. Louis, November 28. S. KRUG and John Dunphy, 167 Dearborn street, Chicago, Ill.:

Salvage committee met at 2 p. m. At the adjournment Mr. Taylor and President Francis called me in and wished me to wire you to come on first train. Everything looks well. Meet me at the Lindell Hotel before you go to the grounds. Also wire me in care Lindell Hotel when you leave.

W.H. RANSTEAD.

This message was received by me at about 8.40 a. m. November 29. Mr. Dunphy and I took the first train out to St. Louis. We left here at 11.03 a. m. and arrived St. Louis at 6 p. m. November 29. We met Mr. Ranstead at the hotel and talked matters over. The next day, November 30, Mr. Ranstead, Mr. Dunphy, and myself went to the fair grounds and called at office of Mr. Stevens, secretary of the Exposition Company. This was about 10.30 a. m. At about 11 a. m. Mr. Stevens took us to the room where the salvage committee was holding a meeting. Mr. Stevens did not remain in the room during the meeting. There were present President Francis, Mr. Taylor, Mr. Kennard, and Mr. Holmes, members of the salvage committee. After a short preliminary talk, we were told by Mr. Francis that we would have to put in our bid for all the buildings shown in the specifications, including copper wire and railroad iron, and that we would have to have the bid in by 4 o'clock that afternoon. It was then about: 12 o'clock. We protested against such short time for figuring on all the property shown by the specifications. I requested more time and told them I would be able to make an intelligent bid if granted more time. I asked President Francis to give me the figures on the steel rails and the copper wire, and stated that he should have the figures showing the amount on hand, as it was all bought by weight; that if I could get an idea of the amount of wire and rail I could get my bid in all right in time. He stated he could not give me the figures on the rail and the wire. Mr. Kennard then stated that I could put in a bid for the buildings that were shown in the specifications, including the intramural stations, the fences, and the bridges by 4 o'clock that day, and that I could have until Friday, December 2, to put in my bid on the railroad iron and the copper wire. I asked if it would be possible for me to get an extension of time in which to do the work, providing I secured the contract. President Francis stated that the time could not be extended one day. I then asked for a list of the property so I could figure on all of it. President Francis stated that they did not have any lists and that it would be necessary for us to go over the ground and get our own data. He stated to me then that there were 2,000 tons of steel rails. We then left the office and walked over the grounds and looked at the buildings, the intramural stations, the fences, and bridges, on which we were asked to submit a bid that afternoon. We did not look over the rail and the wire, as we thought we would have more time the following day for that. We went back to Mr. Taylor's office at 4 o'clock p. in. We waited there in the anteroom until about 5.30 p. in. While we were waiting in the anteroom Mr. Frank and Mr. Abe Harris, of the Chicago House Wrecking Company were closeted with the salvage committee in Mr. Taylor's office. While we were waiting there they came out of Mr. Taylor's office without their overcoats or hats on. They had left them in the room where the salvage committee was in session. Mr. Dunphy, Mr. Ranstead, and myself were then requested to enter the room where the salvage committee was in session. Mr. Frank and Abe Harris waited outside until we got through. The same members of the salvage committee present at the morning session were present at this meeting, including Mr. John Scullin, but Mr. Scullin only remained a few minutes after we entered the room. There was another gentleman present, but I do not know who he was. President Francis told me later that he was an insurance agent and that he held insurance on all the buildings then. I handed the bid, or rather Mr. Dunphy handed the bid to President Francis, who in turn handed it to Mr. Kennard, who opened it and read it aloud. The bid was for $101,000 for the buildings mentioned in the specifications, the intramural stations, the fence around the grounds (except the stadium fence), and the bridges. Mr. Francis held a whispered conversation with Mr. Taylor, and then turned to us and said that the committee had decided to let the contract that day, and that they would not wait until Friday for the bid on the other material, that is the rails and the copper wire, and that it would be necessary for me to put in my bid that night, as they would be in session until 11 p. m. I stated that I could not make an intelligent bid on such short notice, unless I was furnished with figures showing amount of rail and wire purchased by them. Mr. Taylor spoke up and asked me if I knew a man by the name of Evans, of Chicago, who was in the wrecking business, I told him that I did not know a Mr. Evans, of Chicago, who was engaged in the wrecking business, and that I was well acquainted with all the prominent wrecking concerns and contractors in Chicago but had never heard of or met Mr. Evans, the gentleman referred to. Mr. Taylor asked me why I could not get in a bid in the same time that Mr. Evans got his in, and stated that Mr. Evans had submitted a bid on all the property from Chicago by wire in three hours. I stood up then and spoke to President Francis and said, "President Francis, how do you know but that this bid of Mr. Evans may be a dummy?" President Francis arose from the table and stood opposite me, and, scratching his head, said: "Well, Mr. Drug, you have got me a guessing. There may be something in that."

President Francis said to me, "Mr. Drug, I made a mistake this morning in giving you the number of tons of steel rail; there are 4,000 tons instead of 2,000 tons of rail." I then told him that it would be impossible for me to give him any kind of an intelligent bid without some kind of a list of the property to figure on. President Francis stated that the matter would be settled that night and that I had until 11 p. m. to bring in my figures on all the property to be disposed of as shown by the specifications, and including the intramural stations, the bridges, the fence around the grounds, the copper wire, and the railroad rails. We then left the room, and as we were passing out President Francis asked our names and where we were stopping as they would call us up later on that day.

As soon as we walked out of the room Mr. Frank and Abe Harris of the
Chicago House Wrecking Company went in.

We left the fair grounds immediately and went to the Lindell Hotel, where we prepared a new bid. About 7.30 p. m. we decided to put in our bid by telephone. Mr. Dunphy called up Mr. Taylor's office and was informed by the party who answered the telephone that the salvage committee had adjourned at 7 o'clock p.m. Mr. Dunphy told me that the salvage committee had adjourned, and I supposed they had adjourned to get something to eat and would be back shortly. I told him to call up again. About 8.30 p. in. Mr. Dunphy called up Mr. Taylor's office and was told that the salvage committee had adjourned at 7 p. m. and would not be back that night. About 10 p.m. he called up President Francis's residence and was inform that President Francis was not at home, and also received the same reply when he called up Mr. Taylor's house, and when he called up Mr. Holmes's residence he was informed that Mr. Holmes had gone to bed. We were unable to reach any of the salvage committee. were not called up that evening, nor did we hear anything from the salvage committee that evening, although we waited in the corridor of the Lindell Hotel until after 12 o'clock midnight.

During our conversation with the committee nothing was said about fire engines, office furniture and furnishings, hose carriages, fire hose, horses, buggies, wagons, steam rollers, roadmaking machinery, three steel greenhouses, with plants of every description, surveying instruments, engineering tools, two hospitals complete, 2,000 folding cots, 2,500 opera chairs, 400 revolving chairs, 25,000 kitchen chairs, 200 roller-top desks, 300 flat-top desks, 200 typewriter desks, the brick in the roadways, and the various buildings, or numerous other valuable articles and pieces of property.

About 8.30 a. m. Thursday, December 1, Mr. Dunphy, my agent, called up Mr. Holmes's residence to find out what Mr. Holmes knew about the disposition of the bids. He was told by some lady who answered the telephone that Mr. Holmes was on his way to his office. He came and told me that Mr. Holmes was on his way to his office. I requested Mr. Dunphy to go to Mr. Holmes's office and try and ascertain what the committee had done about the bids. Later in the day Mr. Dunphy came to me and told me that Mr. Holmes had told him that the contract had been awarded to the Chicago House Wrecking Company between the hours of 6 and 7 p. m. of November 30.

On December 3, 1904, I addressed a letter to President Francis in which I offered him $199,000 for all railroad iron and ties and all wire in and about the exposition grounds. I also, in the same letter, offered to pay him $101,000 for the buildings, fences, bridges, and intramural stations on the exposition grounds, which would total $300,000.

On December 5 I addressed a letter to President Francis as follows:

St. Louis, December 5, 1904.

Dear Sir: Since I have made an examination of the property belonging to the Exposition Company I find a great deal more property than was stated to me at your meeting last Wednesday. If you will furnish me with a correct list of the property I think now that I can make you a bid of from $400,000 to $450,000 for same, half cash, balance to be paid when property is turned over. I am prepared to make my bid in three hours after I receive a list of the property. Should my proposition meet with your consideration call me up at the Lindell Hotel and I will call for the copy at once.

Yours, truly,
S. Krug.

Hon. D.R. Francis,
President Louisiana Purchase Exposition Company,
St. Louis, Mo.

I never received a reply to either of the letters referred to.

In the specifications as prepared by Mr. Taylor it was stipulated that a charge of $6 per car would be made for switching empty cars into the exposition grounds, while I notice the contract between the Chicago House Wrecking Company provides that only $3 per car shall be charged for this service.

The specifications as prepared by Mr. Isaac S. Taylor, director of works, provides that—

All bids must be made out upon blanks furnished by the director of works, and with each bid there shall be deposited a certified check, payable to the exposition, upon a responsible bank doing business in St. Louis, for the amount of 50 per cent of the amount of bid submitted, the sum indicated in said check to be forfeited to the Exposition Company in case the party or parties to whom award is made does not enter into contract with the Exposition Company within five days from date of said award for the work called for in these specifications and instructions—

while I see by the contract between the Exposition Company and the Chicago House Wrecking Company, which is of record in office of recorder of deeds, city of St. Louis, in book 1811, page 195 and following pages, that the bid of the Chicago House Wrecking Company was accompanied by a check for $100,000, which amount represented less than 25 per cent of the amount of their bid, viz, $450,000.

The specifications further stipulate that "A contract will be written by the Exposition Company for the faithful performance of this work, and upon the signing of same by the parties thereto, the full amount of said contract, less the amount of the certified check held and to be appropriated by the exposition Company, must be paid to the said Exposition Company by the contractor," while the contract between the Chicago House Wrecking Company and the Exposition Company, which is of record, provides that the Chicago House Wrecking Company shall execute and deliver to the said Exposition Company at the time the contract is signed four promissory notes three for $100,000 each, and one for $50,000, making a total, all told including the certified check, of $450,000, and allows them six months in which to make the payments.

The specifications further required—

That a surety company's bond for an amount equal to the amount of contract must also be given to the Exposition Company by the said contractor to protect the said Exposition Company from loss during the execution of the work and for faithful performance contract—

while the contract referred to shows that the Chicago House Wrecking Company furnished a bond in the small sum of $40,000, or less than one-tenth the amount required by the specifications.

From the above it is my belief that the Chicago House Wrecking Company was shown favoritism and that they were favored from the beginning of the deal.

I was never furnished a full list of the property to be disposed of by the Exposition Company. I personally requested a list two or three times, as did Mr. Dunphy, but we were unable to get one. Had I been furnished a list of the property that I learn has since been turned over to the Chicago House Wrecking Company under their contract I would have gladly bid $800,000, and would have made a very handsome profit on the deal at that price.

I consider the value of all the property turned over to the Chicago
House Wrecking Company on November 30 was more than $1,000,000.

I consider the manner in which the bids were handled was very irregular and not the usual custom in that the bids were opened in secret and not in the presence of the bidders, as requested by a majority of the bidders present, but as requested by Mr. Abraham Harris, who represented the Chicago House Wrecking Company. This is not the customary procedure when bids are called for by the city or the Government.

From what I saw there in the anteroom and in the presence of the salvage committee the several times we were there I am convinced that the Chicago House Wrecking Company was furnished inside information and that they were shown favoritism.

Mr. W.B. Stevens, the secretary of the Exposition Company, was not present in the committee room at any time while I was there talking over the bids and he does not know what was going on in there, except what has been told him and what he has gained from the papers he handled.

The contract between the Exposition Company and the Chicago House
Wrecking Company, which is of record in St. Louis, bears date of
November 30, 1904, while I note by a letter dated March 7 and signed by
Mr. W.B. Stevens, he states the contract was not closed until December
13, 1904, on which date the board of directors of the exposition met.
This was eight days after my letter of December 5 was delivered to Mr.
Stevens in person by Mr. Ranstead.

If the sale of the exposition buildings and the property to be disposed of had been properly advertised there would have been much more competition in the bidding. If a list of all the property to be disposed of had been furnished the bidders much higher bids would have been made. If the property had been sold at public auction, building for building, and other property in detail, so anyone could have bought what he wanted and had use for, I am confident that the Exposition Company would have received more than a million and a half dollars.

I consider the manner in which the salvage committee handled the bids very irregular in that great secrecy was observed, and will state that the awarding of the contract to the Chicago House Wrecking Company for the sum of $450,000 was unjust to other bidders, and detrimental to the interests of the United States, the city of St. Louis, and the stockholders of the Exposition Company.

S. KRUG.

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.

STATE OF ILLINOIS, County of Cook, ss:

Before me, this, the 28th day of March, 1905, personally appeared Mr.
George J. Schmitt, who, being duly sworn on his oath, says:

My name is George J. Schmitt. I reside in Chicago, Ill.; have resided here for the past thirty-five years. Am employed as clerk and bookkeeper in office of Mr. S. Krug, contractor, of Chicago. I have been in Mr. Krug's employ for the past eight years. On November 9 I left Chicago for St. Louis with Mr. Krug, to look after his bids and do any clerical work that he might want done. We arrived St. Louis on morning of November 10, 1904. Mr. Krug had his bid made up, and upon arrival at St. Louis we immediately went to the National Bank of Commerce, where Mr. Krug wanted to have his draft cashed and his check certified. We then went to the Administration Building and called at the office of Mr. Isaac S. Taylor, director of works, where Mr. Krug handed his bid to Mr. Taylor's clerk. This was about 12 o'clock noon on November 10. We were requested to go into the anteroom and wait until called for. There were present in the anteroom at the time Mr. Albrecht, Mr. McDonald, Mr. Schaeffer and son, Mr. Ware, of the Columbia Wrecking Company. One or two other gentlemen were present. I do not now recall their names. After we had been there some little time, Messrs. Frank and Abraham Harris, of the Chicago House Wrecking Company, came in. We all waited there until about 2 p. m. About this time President Francis passed through the room and went into Mr. Taylor's office. He came back shortly and said to us to come back in about an hour, as the salvage committee was going to lunch then. We went back again about 3 p. m. The same crowd of bidders present in the room. There, was some gray-haired gentleman who came in with the Harris brothers. When I first saw him I thought he was a member of the salvage committee, on account of his running back and forth into the room where the salvage committee was in session. I learned from Mr. Albrecht later on that the gentleman referred to was working for the Harris brothers. While we were waiting there to be called in he made two trips into the room where the salvage committee was in session, and came back each time and went and held a whispered conversation with the Harris brothers in the hall.

We waited in the room there until 4 o'clock, when Mr. Taylor's private secretary requested all the bidders to go into Mr. Taylor's office, where the salvage committee was in session. We all went in there. President Francis asked the bidders how they wanted the bids handled, whether opened in their presence or opened in secret session of the salvage committee. All the bidders present requested that the bids be opened in their presence, except Mr. Abe Harris, who got up and told President Francis that he did not want his bid opened in the presence of the bidders, as he did not want everybody to know what he had bid, and that if he was the successful bidder we would all know later on what he had bid, and if he was not the successful bidder he did not want his bid to be known. Mr. Albrecht got up and stated that he wanted his bid to be opened in the presence of the bidders, as he wanted everything to be open and aboveboard. President Francis then held a whispered conversation with Mr. Taylor and some other gentleman there, and then in a few minutes turned to the bidders and said, "Gentlemen, we have decided to open these bids in secret session of the salvage committee." and requested us to go into the anteroom and wait until called for. We all went back into the anteroom. In a few minutes President Francis requested the Harris brothers to come in the room where they were holding the meeting. They did so, and remained in there about ten or fifteen minutes. As soon as they came out Mr. Albrecht went in, and when Mr. Albrecht came out Mr. Krug and myself went in. President Francis spoke to Mr. Krug and said, "Mr. Krug, you seem to have some very good letters of recommendation here, and from the letters I judge you have done considerable work." Mr. Taylor asked Mr. Krug if he knew a Mr. Schluetter, of Chicago. Mr. Krug said that he was acquainted with Mr. Schluetter, had done considerable work for him, and had always been paid his money. I inferred from their actions that they had had some trouble with Mr. Schluetter. President Francis said, "Mr. Krug, your bid is very satisfactory." Mr. Krug had only submitted a bid on part of the buildings, as shown by the specifications. President Francis asked Mr. Krug if he could not put in a bid on all the buildings, and why he had not done so. Mr. Krug said that he was afraid he would have some trouble getting insurance on all the buildings, and for that reason only submitted a bid on buildings that were more isolated and less liable to fire. President Francis told him it would be an easy matter for him to get insurance, and he asked Mr. Krug what he would bid on all the buildings, according to the specifications. Mr. Krug said that he would be willing to bid $76,600 on all the buildings as shown in the specifications. President Francis asked Mr. Krug what he would wreck the buildings for on a percentage basis, or if he would take the work on a contract at a figure to be agreed upon, and they to own and dispose of all the material themselves. Mr. Krug studied awhile and said that he would be willing to do the work for President Francis, but it would take him some time to figure on the proposition so as to submit an intelligent figure. President Francis said that if they decided to wreck the buildings themselves on a contract that he would let him know when his bid would be wanted. At this time President Francis requested Mr. Krug to submit in writing his bid for $76,600 and have it in by 10 o'clock the next morning. We then left the room, and they requested us to remain in the anteroom. We were there until about 6 o'clock. During that time they called in other bidders. About 6 o'clock Mr. Taylor's secretary came into the room and announced that the salvage committee had adjourned until the next day at 2 p. m. We then left the grounds and went to the Lindell Hotel. When we reached the hotel that night we made up a revised bid. The next day we went to Mr. Taylor's office about 10 a. m. and gave to Mr. Taylor's clerk the bid in writing for $76,600, and he said he would bring it to the attention of the committee when they met. We waited there from 10 a. m. until 2 p. m. In the meantime Mr. Krug sent in his card to Mr. Taylor's office and asked if any action would be taken on the bids that afternoon. We were informed that nothing would be done with the bids that day, and that the salvage committee had adjourned until the following Monday. I left St. Louis that night for Chicago. I returned to St. Louis on Monday, November 14, 1904, arriving there at 10 a. m. Mr. Krug remained in St. Louis all the time. When I returned to St. Louis Mr. Krug and I went to Mr. Taylor's office. We reached there about 10 a. m., Monday, November 14. We waited there until about 2.30 or 3 p. m. While we were waiting in the anteroom Mr. Taylor's private secretary came in and told us that all bids had been rejected. We then left the grounds, and Mr. Krug and I returned to Chicago that night.

I never saw by the papers or otherwise where new bids were requested after the announcement that the first bids had been rejected. I watched the papers very closely, as we were desirous of submitting a new bid when called for.

From what I saw while I was in the anteroom and in the committee room I am fully convinced that the Chicago House Wrecking Company was given inside information as to what property was to be sold, and I consider that they were given privileges and favored from the beginning of the deal, in view of the fact that a majority of the bidders desired their bids opened in public, while the Harris brothers protested against such procedure, and they were sustained in their protest by the salvage committee.

I have had considerable experience in handling bids and being present when bids are opened, and I never before saw such proceedings as took place in the meeting room of the salvage committee on November 10, 1904.

I am sure that had the Exposition Company properly advertised the sale and furnished a list of the property to be disposed of, which I have since seen published in a catalogue gotten out by the Chicago House Wrecking Company and listed in the contract between the Exposition Company and the Wrecking Company, was turned over to the Chicago House Wrecking Company, that much higher bids would have been made, and considerably more money realized from the sale than they received from the Chicago House Wrecking Company.

Between the 15th and 20th of December, 1904, I came in possession of one of the catalogues that the Chicago House Wrecking Company sent out, showing all the property they had for disposal. It contained cuts and descriptions and computations that would take at least one month or more to compile and print. I have had considerable experience in getting up catalogues of material and property, and am confident that they could not have compiled all the figures, secured all the cuts and descriptions, and had the catalogue printed and on the market in a month's time.

I consider the manner in which the bids were handled very irregular, and that the awarding of the contract to the Chicago House Wrecking Company for $450,000, in view of the amount and value of the property turned over to them, as shown by their catalogue and their contract, to have been detrimental to the interests of the United States, the city of St. Louis, and the stockholders of the Exposition Company.

GEORGE J. SCHMITT.

Subscribed and sworn to before me this 28th day of March, 1905. My commission expires on the 9th day of November, 1908.

[SEAL.] S.E. KELLOGG.

STATE OF ILLINOIS, County of Cook, 88:

Personally appeared before me this 28th day of March, 1905, Mr. John M.
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; nobody 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.