The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-11-01
FRAUDS IN GOVERNMENT CONTRACTS.


AnnulmeRt Of tho Contract TO Furnish stamped
EnveIopes--Ns Transfer frem the Lowest 90
One Of tho Highest Didders-EnersetIc Pros
test by the Late Contractors. s2as ssAl,y-3N
ray WASHINGTON, Oct. 80, 1870. I
The ninth paragraph OF the law Of Congress MAX
ing appropriations for the service OF the Post once
Department during the fiscal year ending June 80,
1871, and approved July II. 1870, is az follows:
For postage stamps and envelopes hundred and twenty
n 1. - ri M RI
sass ou. contract. hereafter % p made with
e. Ss upon samples % 30 %
The history OF this nve hundred thousand dollar
paragraph u interesting, for unless appearances arc
very deceptive II will get Postmaster General Ores
well into serious trouble. Na. leseefa II n5S
Some time last spring the Postmaster General 3D.
vertised for proposals. TO furnish his department.
with stamped envelopes. such - no proposed to
sell to letter writer's throughout the country, with
or without the purchasers buslness csrds gra-
tuitously printed thereon, might DO desired. The
lowest bidders were Messrs. Berlin Jones, Of Now
York, highly respectable and, understand, . 70.
sponsible nrm. +
for some reason that was deemed wholly inadequate
by Congress. 70 award the contrast to the lowest
bidder, but gave II to ono Reay, also Of New York.
who was the ifth think. from the lowest Al any
rate wien the matter was brought to the attention
Of Congress the appropriation to pay for the enve-
lopes or business cards. was fatty refused and Mr.
Creswel was ferced BY the special enactment above
quoted to make new contract with tho lowest
bidder, ana 70 purchase Of no one else
Dempsey 4 0'Tooic, whose manuiactory sin Brook.
1rn gave $3.50 900 bonds for the faithful fmens
OF tnelr contract ana expended some $4,000 in pre-
sSs Won. so,S iSS a. r H, @ s A
nsr S ooass
another VI, with his fayorts Reay who most certainly
aIr8 t AN INVESTIGATING COMMITTEE ,ri ta .a
Congressional investigating committee Is newt.
able The law OF Congress Is Imperative. 1t re-
qulres the Postmaster General to purchase stamped
envelopes OF the lowest bidder and OF no one else.
II appears that Mr. Creswel has seen At TO disregard
It, Flow he viii extricate himself remains to DO
service ana less to the wholesale and retail station
cry trade or general business card printing 1t would
be better for himself and oil concerned. asa sa
The following protest has been filed In the Post
once Department by Messrs DEMPSEY O'Tooe,
sIs.Eslng sdvi.sa that n addition q the verbs.
presented 70 me department against the Of
e. @ viii s.. . ~
nd d re %
The BEG ssvs submit 5is their written pros
sa scord 81 aS e. .;n s The ss
s ss. s .s s.ss
and injured blythe action OF The department. they viii
ment furnish articles provided " said contract to be fur
IL Q, hs E $ a
and such approval withheld for the purpose and
s nsn q Tsss SE s %
be re . a. az s amt With
should only Be awarded lowest bidder after advsr
They will show " the testimony Of .wenyons dsintsr
Buildings and Appliances BY the undef.sned ia e:
s s CO fSs s.s sy =: mo
before any order was received from the Department. IN good
% be maauiactued and prepared il said contract
The wnssscs the
az se
Of the United States Postage Stamp Agency New York and
sorss Re.y mensensd and upon t wIisG the
department processes have founded its action
inst, are wholly unfounded and false. q
% asD snHT s s' SsSsr
General contrary 10 law, assumed to make contract with
ss
time sss said soaras va. swsrasa SnSsSssaes %
os ss sa hs
.aa Sisss sss ssss
he he oSsf proposed and we're
ID. has q, been thus .. ADMINS
.ao' subject q inquiry SSsggSsSIs
Hon. J. A. j. CREswELI., Postmaster General.