New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-03-09
STAMPED ENVELOPES.


| oTooLE's PAILURE-4.HE ADVANTAGE on
| STAMPED ENVELOPES.
- PROM OUR OWN CoRRRsA)SDRfrl
| WASHINGTON, March s.-The hub-Commtee
OF the Committee on Appropriations, engaged last 500
sion In investigating the stamped envelope oontrscta
did not have time to report but 1t Is understSOu tha inc
result Of their inquiry to eXOnerate the
Department from all blame in connection wtlrthe mat
ter and to sustain Nj Ceswel In the course he adopt
ed Prom the testimony taken before the COmmtte and
from statement made by Mr. CFeswelri appears fhat
On the st OF March 1870 contract WAS made with NJ
Geo. H. Reay q HewYork TO furnish al the stamped en-
yeopes and newspaper wrappers required by the Dr.
partment for years from July ar the sanbles
lectsa from those presented by him being 81 better nish
than those any other bidder. Mr. Reay at gave
the required bonds and soon after submitted proofs OF
watermark" for security against limitations OF the
papers OF which the envelopes To be made, beside
proof impressions steel dies for embossed postage
stamps for all denominations in He also provided
the necessary machinery, and promptly began deliver
in u the 1st OF July.
In the mean time the unsuccessful bidders united In
memorial 10 Congress for the annuent this contract
the ground first that the manufacture and sale Of
stamped envelopes by the POst-Ofice Department ia
direct interference with the business OF all the envelope
manufacturers sationers and printers of the United
States, thereby creating monopoly" &C.; and, second
that the contract made with one OF the highest
bidders" Instead Of the lowest, DC In regard TO the
last charge the POsmasterGeneral only replied with an
extract from his advertisement, IN which he announced
that the viii be awarded to the bidder whose
proposal although it may be the lowest considered
most advantageous TO the Department, taking into &C
the prices, quality, OF the samples workmanship
and the suicency, and ability ofGe bidders 70 7Gngdc-
re and defirer the ereopes aud rGppers in accordance
with OF this advertisement Congress, how
ever took different view Of the matter; and although
ignoring the antmonopOy proposition directed in the
Post Office Appropriation BILL that contracts should after
Oei.l 1870 be let the lowest bidder. This action
amullcd tho Reay contract; but contract was
made with him Tor temporary supply, at rates is per
less than those agreed 20 three months before.
The POstmaster-Gener Immediately advertised for
new proposals and as only 81 days remained before OcI
four weeks Of which required for advertising, the
matter pushed vigorously az possible. There
only three bidders for this contract-Dempscy
OToole Geo H. Reay, and Geo. F. Ncsbitt-and the pro-
posa Of the frstnamed firm lower than those OF
the others. Dir. Reay protested to the Postmaster
General against awarding the contract TO Dempsey
OTO0le the ground that they not manufacturer,
OF envelopes, required by the advertisement and
moreover, not trustworthy contractors, having
hitherto failed TO I'LL contracts with the Government
Nh CresWel then caused inquiries 20 be made in the
several Departments 70 the standing OF Demsey d
OTooe Secretary Belknap testified that they failed to
perform their contract with the War Department made
in 1868 Secretary advised ono business relations
with them beyond what the law requires" the Commits
of Patents referred 10 House investigation III
1865 I'm which the conduct OF this firm said 20 be
"beyoud our comprehension" and the Commissioner Of
Internal Revenue testified failure Of the firm 10 per-
form contract with that Bureau II further appeared
there had also been trouble in the PostOnce Depart
ment itself with the firm IN question
Mr.. Cresweu then consulted the Attorney General as
TO his authority 20 reject the bid Of Dempsey OIo)le
on the ground they envelope manufacturers
and were not Trustworthy contractors and that officer
decided that under the law OF July H. 1870 the Post
Genera bound 20 give this firm the contract
II their bid was the lowest. that other crcum
stances were to consideration On the 18Th
OF August therefore order issued awarding 81 90
Dempsey O'Tcole, that firm being at the same time
reminded that fun and satisfactory deliveries must begin
Oct l. the 30th " August IA days after the contract
was awarded, Dempsey oToolc applied for permission
to transfer thoir contract to Geo f. Nesbtt Co. offer
ing to give additional bond Of $200O The Attorney
General however decided that there was no authority
for transfer and 3ir Creswe though he believed Mes
bits TO be the responsible hrin was obliged to
refuse.
Dempsey d OToole given an the information. "a
istance and encouragement the power OF the Dspart
ent TO enable TO fulfil their contract and on tie
Goth Of September Gen. Terrell Thrd-A-si5tant fost
naster-Genera went to NewYork 10 inspect their ar
rangements The result II this visit, as shown in re-
MORT which Gen Terrell made to the P0stmasterGeneral
was TO demonstrate the utter inability Of Messrs Demp
sev Il OToole 10 20 on with their contract without an
extension Of time which provided for In the law.
The contract provided that the dies we're to be eX-
ecuted IN the style OF art and submitted TO and sp
proved by the PostmasterG and the water MARKS
we're 70 be such a. he should prescribe" The contractors
were furnished Immediately with samples and distinctly
informed that they would be required TO produce and
submit dies and vatermarks letter in design and eIecu-
tiou n nossle but al least equal % he," under
no circumstances would they be approved should
they be in any respect inferior But dies cor proofs
or specimens % water-narks submitted until the
a. and hal
was TO 90 into effect and then only very imperfect i'm
ressions OF than half te stamps then in use These
dempsey a o'Toole then made application for ex-
tension to enable them 10 ger ready 70 perform ther
the Cabinet and, after the hrn had had full larnG'
inc President decided that The contract had been Tor
fred and ought to he snnucd and rclot 10 the next
loMtSe VS. rlf IN george II Hray OF course Demp-
sew 4 OToole protested and applied TO congress Tor
lT cesreu saws that the contract price Is 37g per
cent les than was paid Ncsht no 10 april l. 1871, While
NE alltv ~ the envelopes 81 least y PER cent better
A. CresVeI recently wrote a letter reply 90 the
uonsrauce of euyeOpe-aalers, that ~ Was Wrong Ia
principle for the Government 70 iurnI,h stanped e
Teiopes he argues that withstandng the strngency
of the laws the Government lost largely IN postage by
carving unpaid letters by f1rvads, steamboats,, eN,
presses stages, &c and that the use OF stamped
saws are rendered more secure IN tran. inlssiDn t II
prepaid by adhesive stamp which are liable 70 become
10 the deadetter once. while the Government !. iuiy
protected against loss by the reuse OF s.amPs' hs
HE postage stamp embossed or impressed on
an envelope is virtually Clnceed Wneu me euFtlupe
h addrcs sed and sealed the embossed stamp eng OF no
value when detached. such thing as T9uhteIIethhg
stamped nyclOpes has not been known lie shows that
a. Ie made i'm different parts the country, and then
slammed NV gents and that the "return requests have
re reduced the force and expense ~ the dcad-eiier
Sfe He denies that II Is the custom OF the Government
no furnish the envelopes al less than cost loss OF less
bsu haa been incurred during the present year
through the failure Of Dempsey a OIOole To perform
their contract The schedule ~ prices has however, Deeh
sIUays so xed reimburse the Government Tor te
cost OF the envelopes aud leave margin 10 pay safes
6e Finally Mr. Creswen shows that no extra charges
re made bv mail contractors Tor transporting stamped
! ai' sl,r Qy "a UrYafe