The New York herald., 1874-11-11
LARGE FAILURE.

The Ccvernmenf Envelope Contractor
IN Dimcuities-severe Structures Upon
possm.stsr General JeWeu-Curfous
"Details of an Envelope Contract.
P,,anc,al ana commercial circles were some
vhat astonished yesterday by hearing that George
Reav the largest envelope maker IN the city,
and nossbly In the country. had failed He had
until recently been engaged In manufacturing
.nve,opes for the government and doing the
atamped envelope work. The suspension throws
some $50 persons out OF employment and VIII
possibly add TO the surerings OF the coming
v,nrer. Mr. Reay yesterday made an assignment
nj All his property his creditors, and they are
disposed to be very lenient. The liabilities are
estimated at from $500 600 to $25oooo, and are not
covered by the assets. The main reason which
precipitatea the failure was the stoppage or work
at the Pearl street factory, which was
formerly owned by George F. Nesbitt, and which
made sl5o00o worth or most expensive ma
chnery unproductive and almost utterly value
less. 1t would appear that the circumstances
which precipltated this are somewhat singular,
and, as told by Mr.. Reay himself reflect
some what upon the authorities at Washing
ton, and more particularly upon Postmaster Gen.
era Jewell
reporter OF the HERALD called upon Mr.. Reay
yestei day to learn his own verson OF the cause OF
the failure. Mr.. Reay SAID
81 attribute my failure entirely TO the unfair
conduct-to call 1t by very mild name-oi the
promised me- and all who should make bids TOR
the envelope contract of the government, tnat the
ierence shouid be made. The lowest
bid to carry the contract. and the
allow nve days over time OF delivery, and possibly
ten; but not more on any account Relying on
these rules we made our bids. The contract was
thereupon given to the Pl1mpton Envelope Com
pany, OF Hartford, OF which Mr.. James Patterson
rs the main man. This gentleman IS partner OF
the Postmaster General in the Hartford travellers
Insurance Company, and the Postmaster General
even owns the binding IN which the Phmpton
Envelope Company IN Hartford conducts its opera
tons or course these facts OF themselves look
suspicious but when you consider that Tins COM
pany only delivered their work twenty-five days
after the day appointed thus clearly breaking the
contract as made by she Postmaster General and
that II is snasaerully done mr. Reay showed the
reporter some OF the Pllmpton work, winch GER
tainiy did not compare with his OWN there Is no
reason to doubt the colluSion."
But was your bid the lowest ?"
.No; the bid OF the Pnmpton Company was
$4,000 less than mlne but with the facilities they
have been given TINS can be understood and the
company cannot deliver the amount OF work
promised for the price agreed upon. But, besides
AL this, it was ali arranged beforehand that the
contract should not come TO me- There were four
BIDS lower than mine, and the bid OF the Plimp-
ton Company was the one next to mine. The
10west bid was made by a clerk in an envelope
IN Hartford and the next by somebody who dd
not sign. 1t was all arranged that should | have
~
est having IT, and lt was to go to them in any
case. II | had been two from the lowest the first
frOm the lowest was TO get II, ana so on. But IN
any case l was not to have 1t and they were. IL
was all nxed beforehand. As IT was, the third
70 much tnat did not get it that / complain
about, bus If had been given to under
stand something OF the kind l could have
sold my machinery TO them. This machinery Is OF
NO earthly use but to make these stamped en-.
velopes, and the Postmaster General knew It.
What cost me s150,00o will have to dispose OF by
the pound as old iron. IL was unnecessary, be-
cause was.not TO get the contract, to utterly rum
me, as this has done. OF course, the thing closed
up my Pearl street factory ana has put me the
condition am. II mas also obliged me TO give up
my own business, which has been doing well, ana
which have handed over TO my credltorSa
A gentleman VINO was present, and whom Mr..
Reay informed the writer was his largest creditor,
confirmed all ne said as TO the conduct OF the Post
master General In the affair, and said that Mr..
Reay had net been treated with fairness or hon.
esty. The whole thing had oeen run IN the interest
OF Mr.. Patterson, the friend and partner Of the
Postmaster General.