National Republican. (Washington City (D.C.)) 1872-1888, 1875-02-23
PACIFIC MAIL CONTRACTS.
loniinued ZION Firsi Paqe. }

tsl Laying OUT VI NloHg lOE arguments
sake, the foregoing points, It Is respectfully sub
mitted that the non-completlon Of the ships has
been satisiaetorily accounted Tor, and that NO
proved would here work forfeiture Of the con-
First. It appears that after the company had
entered into contract with John Roach for the
ships Il was discovered that there were no rolling
mills In this country having sufficient capacity
CURED. New machinery had to be prepared, and
before It was completed and In operation nYe
months Of valuable time had been lost.
Second. Then came the strike Of the puddlers
In the iron mills, upon whose labor Mr.. Roach
depended for angles and smaller iron work.
Third Next was the labor strike for less time
and increased wages.
Fourth. And then the long and severe winter
Of 1s72-'T3, when labor upon materials and metals
necessary to be done out Of doors was seriously
retarded and at times entirely stopped.
fhtn; we are now come to the controlling and
the testimony Of Mr. Roach before The House
Committee on Post Offices and Post Roads April
"a, ct seq, viz: "At the time Of making the con-
tract the requirements Of the proposed Service
thought to have been provided for in dsmsndInSS
ships Of specified speed and tonnage, every Way
superior to the side-Wheel steamers then and now
owned by the company, and employed in the SER
'These chips, as 1 can show by letters that
passed between the company and myseIE could
and IcoIId kGue been completed in time to eoHpIv
with the conditions as to time Of she contract
with the Government, and they would have fully
met all other specifications; and yet, while this
the letter Of the contract, would have been kept
beyond cayil, its spirit would have been broken,
and the object which the Government sought to
obtain would have been defeated.
"1t was speedily discovered that larger and
faster ships than had been contracted for with
ment, were building on the Clyde to be used, If
practicable, in this very trade on the Pacific.
"These ships would, have made quicker voy-
ages performing their service at such a saving Of
time as would shortly have placed our Govern
ment in the awkward position Of having on It's
~ H.
while the mali itself would be forced into he
faster line by the absolute business needs Of our
ITO prevent this absurd result, to save Us from
. national disgrace and worldwide ridicule, as
we'll as to realize for itself and the Government
the precise object sought in making the contract
"a solid commercial foothold on the Paelhc-the
company modified its contract with me at TIE
pense to them Of $4,000, but giving the Govern
ment larger, faster. and more costly ships than
their own contract called for. 1t was never for q
moment supposed that under such circumstances
Congress would avail itself of q mere technical
point. 1 do not believe there is in Congress to-
day o man who would take such an advantage
under like circumstances in his own private bust
ness, and certainly hope there is not one who
would add TO that the grave responsibility Of
transferring our Pacific mails to the English
%when the change in the model Of the ships
was first contemplated, this question Of the DELAY
and the element Of time In the contract were
brought up and discussed, but 1t was apparent
that only Congress had the power to extend the
time, and Congress was not then in session For
myself had had much experience with business
men, as we'll as In contracts for the construction
Of ships for the Government when the very life
Of the nation was in danger and was familiar
with the policy Il had pursued with railway en-
Government, like honorable private citizens had
never awaited itself Of technical provisions as to
time and the like, where good faith had been
kept and proper energy exhibited. That have
done this latter appears from the fact that
within the short time given me, have prepared
yard at great cost, Of a capacity to compete
with any in the world for the construction Of the
largest ships, and that under this modified con-
tract have actually built six ships in less than
two years for the Pacific Mall Steamship Com
Certainly NO language could be stronger or
more opposite than that used by Mr.. Roach.
these various acts Of the Government through its
different officers and Departments as they were
received and acted upon by the Pacific Mail
me in briefly adTertinG to the circumstances
under which the opinions Of the law officers
effect they hSd upon the the acts, not only Of
the Government, but Of the company, the general
public and those persons who on the faith of this
Government action made contracts with the COM
pany, and became purchasers Of its stock:
!. II there was ever q time when the Govern
ment could have justified itself upon legal or
equitable grounds In the cancellation Of the con-
tract, upon the allegation OF the nOn-perform-
ance BY the company Of any OF the provisions
the time Of the alleged failure to perform. II
could not lie by and allow the company to carry
the mails, and long afterUard raise the ques-
2 lift is claimed that this question was raised
| by the Report Of the Postmaster General Of the
year 1873 1t must be conceded that the various
ports Of the several committees Of both Houses Of
Congress herein referred to, and the scqulescence
by Congress in their recommendations, had fairly
settled the question that the Government did not
intend to insist upon forfeiture Of the contract.
g. But when, on the completion Of the new
they were rendered, on the sth day Of July, 1874
to the Government by the company for inspection
States mails between San Francisces China and
| Japan, under the contract Of August 9, 1873, 1t
then was the bounden duty Of the Government to
| for any alleged breaches thereof or for reasons
| existing prior to that date.
| The Postmaster General, realizing this position
| and duty Of the Government, before committing
1t BY so grave an act as the formal acceptance OF
these vessels for the service sought the opinion Of
tion and 1t was at the instance Of the Postmaster
General, upon the question Of the acceptance of
these vessels under that contract, which was to
| be an overt act on the part OF the Government,
that was the occasion for the opinions that have
heretofore cited in my former argument, and
(g.) Now It is most respectfully claimed and in
sisted BY the company that the formal acceptance
| Of these vessels BY the Government on the sEh
| day Of August, 1874, based upon
l. The certificate Of the board Of naval officers,
acting under the appointment Of the Seere-
erai, which the law required, and
2. The opinion Of the law officers OF the Govern
ment, which opinion goes over the whole
ground, and passes upon the very questions
your committee are now instructed to con-
| slider,
was such q formal and deliberate act Of ratihca-
tion and acknowledgement respecting the validity,
/ birding force, and present existence of the con-
tract as completely estOps the Government from
| az have given the opinion Of the Attorney
General, as we'll as that Of the Solicitor General
what l believe Will be regarded by your commit
/ tee as an authoritative and able decision upon
the law Of the case.
Bile committee, or Of Individual members thereof,
as to the correctness Of these opinions, Of the
force and weight Of the conclusions arrived at BY
/ either Of them in their formal decision, under
| which the United States acted through its Post
master General in accepting these vessels under
/ their contract, 1t is most confidently claimed, In
/ behalf Of the company / represent, that the ae-
| ton Of the Government based upon It. and all
conclusive as to ali the questions then a. issue
between the Government and the company.
| ~ 1t is respectfully but seriously Unlisted
l. That the company, in good faith, acting IN
/ der the acceptance Of those vessels, on the sth
| day Of August, has fully equipped them At great
for this service under what they have regarded
as the express orders and directions Of the Gov
2. The PekinE now lies at her dock in San
| Francisco, loading for China and will sail with
the mails Of the United States this week for
| The Toxic is In the southern waters Of the Pa
eihc ocean, en- route for San Francisco.
3. To annul the present existing contract, after
| the outlay shown and the faith Of the Govern
ment pledged BY the action Of It's officials, would
be outrage upon the rights Of its large list Of
| shareholders shown to be $40 In number, over 800
| Of whom are small holders, owning from ten to
| fifty shares each.
| Finally.
| Ill In behalf Of this great company that has
| expended millions in the performance OF q con-
| tract which was intended to reflect lusrre upon
| the American name and control the commerce Of
| the Pacific, which has as yet received not q sin
| gle dollar from the Government for this service,
nor divided dollar to its stockholders since the
| contract was made, ask from the Judiciary
Il Committee Of the Senate, composed Of the
| noblest and most learned names OF that body,
| calm, dispassionate and fearless examination Of
| the questions presented.
| In view Of the recent events think may be
justified in insisting that these questions should
| be considered without regard to the pulic clsmor
Of the press, but upon the merits, upon the law,
| the rights Of the company, and It's creditors and
contractors, as well as the enormous interests at
stake affecting maritime and commercial in
/ terests.
Under the urgent necessities Of the case this
presentation OF the law and facts has been hastily
| prepared In q few hours, while the gravity Of the
/ subject required as many days.
| Feeling assured the committee will appreciate
the situation, crave their charitable indulgence
| CLARK BELL,
Attorney and Counsel for the Pacific Mail Steam