The New York herald., 1878-02-10
POSTAGE SrAMP.s.

SUIT AGAINST THE GOVERNMENT FOE PAY FOR
ONE HUNDRED AND sIxTY-NINE MILLIONS OF
POST OFFICE sTAMPs---A CURIOUS AND In
TEREs1ING LITIGATION.
The Continental Bank Note Company of this city
has lately instituted action against the United
States TOR large amount the cain being for
los, 000, 600 postage stamps manufactured and dsv
cred to the government under contract TO supply
the Post Office Department In 1873 the company,
whose oico Greenwich and Liberty strcets ade
u contract with the government, through the then
Postmaster General TO furnish the Post Office
Department with all the adhesive stamps when
would be required Tor the period oil iour
years, and under that agreement IRON The year
1873 down to last April, when new contract was
made. The company was and Is at tho present time
the exclusive manufacturer Of postage stamps or the
government, supplying, US does. all The large and
subordinate Offices throughout the country with
stamps, which hundreds OF men and women kept
busy manufacturing and preparing Tor uso Tho
number OF stamps that were given birth under the
contract OF 1878 numbered many nundrod millions,
consisting OF all the various sdenoninatons known TO
the commercial world.
The contract was essentially an important one,
II involved trust on The part oi
the company of mIlnons oil dollars OF the
govcrnmcnrs property, besides being, Ut the
sano time, o value to thOm AS business
enterprise. Undor clause the contract the
request oil tne government or Its agents. athrse
months advance supply oil stamps to meet any sud
den contingencies OF The service and the legal aspect
the presents tsei most fuiy under clause
When the OLD Contract expired Ia 1917 the coupany
had on hand o. llS,3Os hnisIed aud 49, 374 700 uun
ished stamps, 1894 VOS stamps Ia ALL wnicn they
claimed they vruered " have u three months
supply under the requisiton OF the government, and
that IN consequence The goverDme should pay for
them the prico oil the contract. Hence, IT Is
claimed that some $Ij, OOU Is due tGe company, and
tney sue Tor that amount Bot the government officials
have made different and ADVERSE Interpretation OF Inc
question, and the Attorney General IN leigtny opin-
devcrea the SUBJECT nainta tnaL The order
for the extra supply had never been given, ana that
the government was not IN auy wise liable lor the
10000, 900 extra stamps Nevertheless the govern
meut TOOK them under protest oil the company, aud
wiling To pay fOI tnem according To the
tract price, uhuer u new contract commencing May
1877; but the company refused 10 accedc ~ .his
proposition, as unuer that contract the price per
Thousand stamps was large reduction of the
the rst contract under wncn the l69 100000
were ordered ana manufactured and under which
thoy cluim they are entitled To recover. Feenug
aggrievcd the company some time since took meas
ures " enforce the ciaim and through its eouDsel
against The United states to determine The question IN
the Court oi CLAIMS, the only tribunal through which
tho government Can DC suca.
Testimony IN the case Was taken Tuesday January
49, lor the Drst time, III Washington, before X ". u.
Mitchell, private secretary 10 Mr. Schurz special
CON ssioncr ior Court oil claims. The United States
appeared by D. h. CamnIou, Assistant Atoi ney Cen
ersl, ana the company by John x. Dos Passos and
William McM chael. lengthy examination vy couu-
oil y. ID. Hazen, Thru ASSISTANT Postmaster Gen
erai, and Homer H. stuart president oI the company,
and some Others witnesses on the part Of the
ant, was had and continued ior tnree days
second meeting before the commissioners Was
held yesterday at the coinpany's Office III THIS
city. After the testimony 10 all taken me case Will
20 before he Court OF GAINS IOr argument aud hua
dicatOn. Colonel PRIDE, Post Once agent The
government III regard 10 the contract, and super
III IcndepL oi the continental Bank Note Company,
examined ut length and gave detail the
operandi oi nianuIacturing the Stamps and their
mode oi delivery upon rsqusitions by the govern.
mcnt.