New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1871-12-29
portion of the bill that have marked read

person or persons bidding for the trans
pOrtatiOn Of the mails upon any route
! which may be advertised to be let, and re-
ceiving an award of the contract for such
service, who shall refuse or fail to enter into
| contract with the Postmaster General in
due form and perform the service described
in his or their bid or proposal, or who shall
withdraw, or attempt to withdraw, after
the day appointed for the opening thereof,
any bid or proposal he or they may have
made for such service. shall, on conviction
thereof, be deemed guilty Of misdemeanOr,
and be punished by fine not exceeding
- dollars, and by imprisonment not ex-
ceeding - months.
SEC. 2. That no bidder for carrying the
mails shall be released from his obligation
under his bid or proposal. notwithstanding
an award made to a lower bidder until
contract for the desi gnated service shall
have been duly signed by such lower bidder
and accepted and the service entered upon
and performed by the contractor to the sat
istactiOn of the Postmaster General.
SEC. 3. That the Postmaster General shall
have power to reject bids for mail service
which shall appear to him, upon due inves-
tigation, to be fraudulent or fictitious.
SEC. 4. That after a regular bidder or
contractor shall have failed either to enter
into contract, or to fulfill his contract when
made, the Postmaster General shall pro-
coed to contract on the best obtainable
terms with any responsible party, whether
bidder or not, for the performance of the
service for the residue Of the contract term,
or any part thereof.
SEC. 5. That the provision of the fourth
section of the act of March 3. 1871, reQuir-
ing certified checks or drafts to accompany
bids, be SO amended as to Tx the amount Of
the certified check or draft TO accompany
bids for service on each route at five per
cent Of the last regular contract price per
annum on said route where the contract
price exceeded $4,000.
Mr.. Kellogg: stated that that was
practical bill, and one that | thought re-
quired immediate attention. 1t is intended
to correct an abuse that has obtained con-
siderable magnitude. especially in the
South. Every one knows that the war
swept away all the mail service of the
South. The re-establshment of that SER
vice has been work at once difficult and
delicate. But. sir. in the Southern States,
especially in the Southwestern States, EN-
bracing the State that l have the honor in
part to represent, perhaps. to greater ex
tent than any other State in the South, this
difficulty has grown to be so formidable,
the business is in the hands of parties who
| are so adroit. who have formed cOmbina-
ton so effective. as practically to set at de-
| tiance all the requirements and safeguards
of the law. to defy the Postotfice Depart
| ment, and virtually compel the Postmaster
| General to give the mail service of those
States to contractors who apply for it, not
| as contractors Tor term OF years under the
| cid law of 1886, but for a few months tenn
| porary service. at an exorbitant price.
This can he obviated in no other way than
| by some such law as this, stringent as adj
| nit it to be in its provisions and rather ex-
traordinary in some respects. 1t is intended
| to obyiate this difficulty. and cut off the
| efforts of these two classes to plumber the
| Treasury. One is the contractor, who really
| intends to carry the mail if he can get the
| award. and the other is the intermediary or
middleman. the straw bidder as he is some
| times termed, who puts his bid upon file,
| makes his application determined to pro-
| cure the award simply because ii is below a
| paving figure, so to speak, and then, having
received the award. compel the contractor
to buy him out. This bill proposes to re-
move that difficulty.
hope my friend from Minnesota, the
chairman of TIE postoifice committee (Mr.
| Ramsey. will see that this measure is
pressed to a speedy contamination, tor it is
very important TO lis at the South. Let me
| illustrate the state OF things it seeks to
| reach. Somewhat over q year ago. as is
! provided under the old law and as has been
the practice for over thirty yeals under the
| act OF 1886. the Postmaster General adver-
| tised for mail service. at considerable ex-
pense to the government. The bids were
opened in May and June last. On the
first of July the awards We're made. and
the result was that nine tenths of the bid
ders who received contracts when they
were required to do the service. were in de-
fault Then the Postmaster General was
| compelled to reaLVertlSe, and let out this
| mail service to temporary contractors at an
exorbitant price. He appealed to the At
torney General and the Attorney General
| decided that under the law of 1896. as ii eX-
| i,t, on the statute book, the Postmaster Gen
erai had no discretion in the premises, but
was absolutely compelled and restricted to
| accept the lowest bidder or resort to tenn
porary service. The lowest bidder having
| been in default he was compelled thus to
! resort to temporary service. He adver-
| tsed again. as that was his only resoruce.
| On the fist of November. or Whereabouts.
! the bldg were again opened. when 1t was
! found there We're one hundred and ninety
| defaults. and only two of those awarded
contracts were bona tide bidders, the rest
| were straw bidders. He advertised under
| the law OF Congress passed III March, which
| provided what was supposed to be salu-
! tarv and sufficient safeguard. that Il GER
| titled check of five per cent of the amount
| proposed as compensation for carrying the
mail. where the amount WAS over $4,000.
| should be deposited with the bid as evil
dence of the good faith of the bidder; but
| the fact was shown to be that. with two or
| three exceptions, all who made propositions
as straw bidders put in their bids at a less
| amount than $4,000. thus avoiding that pro-
vision of the law
| This temporary service expires on the
| first day Of January. within few days.
Then the Postmaster General must adver-
| tise again. There is no way of obviating
this difficulty except by the passage of "a
bill with stringent requirements. like this
| or something similar; first, make it a mis-
| demeanor tor any man to submit propo
sition TO perform the mail service unless he
in good faith makes that proposal, and I'M
| less. when the award is made to him, lie
carries it out in good faith: and, second
| give the Postmaster General the right. in
| the event of a bid being manitestly traudu-
| lent and fictitious, to rei ect it and award
| the service to any man who will carry the
| mail efficiently and effectively and perform
| the service as 1t ought to be performed at
| the lowest possible price, whether he be a
| bidder or not. And, more than that, the
| five per cent that Is to accompany the bid
| in certified check of the bidder, which
| the present law. passed in March last, pro-
| vides shall be deposited where the amount
! of the bid is over $1,000. should not be five
| per cent on amounts over 5000, but five
! per cent of the last regular contract price
| for which the service has been performed.
! This is matter OF good deal of impor
| tance. 1t is practical, and demands immc
date action. When | lear on all sides
suggestions for ''reiorln." and for stopping
the leaks in the Treasury" | respectfully