The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1885-08-07
WHITNEY AND ROACH.
Tho secretary OF the Navy Gives His Views
on the Roach Assignment.

Tho secretary OF the Navy Gives His Views
on the Roach Assignment.
WASHINGTON, July 2s.-Secretary Whit
ney has sent the following letter to Mr..
George w. Gruntard and the other gentle
men to whom Mr.. John Roach made an as
signment: "At our interview in New York
on Wednesday last, at your request to take
the contracts between the Government and
Mr.. John Roach pending their completion,
and i'm view of his assignment to make some
suggestions as to the method of dealing
with the whole subject 1 gave you assur-
ances that would do so and communicate
after reaching Washington. As view the
matter, the rule which governs individual
business transactions should govern the ac-
ton of the department. At all events if
there is a different rule proper to be applied
am not aware of it. My past duty here
tOfOre has
SEEMED TO BE VERY SIMPLE
and plain. 1t has been to insist upon the
strict enforcement OF the contract and OBJ
legations, as Interpreted to me, without re-
gard to consequences This is tine ordinary
plain business method. a departure from
which i'm public officer can have no justi-
fication. In like manner know of no
reason why the ordinary principle which
actuates merchants in dealing with each
other and in accordance with which gener-
Gus consideration is extended ordinarily to
an unfortunate business associate, should
not govern the action of the department
under similar circumstances. The business
method of dealing with matters which
would be pursued by private parties would
be, first to become satisfied that the assign
ment was made in good faith, ard then to
consider the best method from q business
standpoint of bringing about a settlement Of
current and incomplete contracts upon a
fair and Just basis for both parties. If |
have the power, therefore, l will enter into
the consideration with you of the point to
which the contracts have been performed
and endeavOr to settle upon some fair and
just basis for the disposal of the matters.
Of this | informed you at our meeting in
New York. This course, just and right
under all circumstances, is compulsory upon
the Government in the present case. The
liberal treatment which the contractor has
heretofore received has left the Government
WITHOUT SUFFICIENT MARGIN OF MONEYS
reserved to enable it to protect itself in the
present emergency. The contract provided
that ten per cent should be retained from the
bills as they came due, and held as security
for the completion of the work. At the
present time this reservation would have
amounted to S21O,71O. They have been
surrendered to the contractor under circunl-
stances not important to consider now,
with the exception of S26,672. In addition
to this small sum of S26,670 in our hands,
there are unpaid bills for extras claimed on
the ships amounting to S26,6SS.95, and in
dispute OH the Dolphin S29.945.Os, alto
gether, mostly in dispute. SS3,3O4.-
0S. As against this, four ships
are in your hands, upon
which over S2,OOO,0O0 has been paid. which
must be completed to be valuable, liable to
greater deterioration by neglect than all the
moneys unpaid and in dispute would repay.
1t is of the utmost confidence to the Gov
eminent. as it is to yourselves, that just
settlement of past transactions should be
had and new departure made. L suggest
as a practical method of arriving at sOu-
ton Of the matter a meeting of yourselves
and your counsel with the Attorney Gen
eral and myself, at which some practical
method of dealing with the subject may be
arrived at which snail be within my legal
authority"