The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-07-28
THE ROACH FAILURE,
Secretary Whitney's Suggestions to Mr..
Roach's Assignees.

Secretary Whitney's Suggestions to Mr..
Roachs Assignees.
WASHINGTON, July 27-Secretary Whitney
has sent the following letter to Mr. George W.
Quintard and the other gentlemen to whom Mr..
John Roach made assignment;
'At our interview in New York, on Wednes
day last, you requested me to take into consid
GRAFTON the condition Of each of the contracts
between the government and Mr.. John Roach
pending aud incomplete, and in view of his
assignment make some suggestion as to the
method of dealing with the whole subject. gave
you assurances that l would do so and
communicate after reaching, Washington. AS
governs individuals in these business transactions
should govern the action of the department.
AT all events, if there is different rule proper
to be applied l am not aware of it. My duty
heretofore has seemed to be very simple and
plain. It has been to insist upon the strict en-
forcement of contract obligations, as interpreted
to me, without regard to consequences. That
is the ordinary, plain business method, de-
parture from which a public officer can have no
justification, and in like manner, | know of no
reason why the ordinary principle which
actuates merchants in dealing with each other,
and in accordance with which generous
consideration is extended, ordinarily, to an un-
fortunate business associate. should not govern
the action OF the department under similar cir
cumstances. The business method of dealing
with the matter, which would be pursued by
private parties would be- first, to become satisfied
that the assignment was in good faith, and then
consider the best method, from business stand
point for bringing about settlement of current
and incomplete contracts. upon fair and just
basis for both parties. If l have the power,
therefore, | will enter into the consideration
with you of the point to which the contracts
have been performed and endeavor to settle
upon some just and fair basis for
the disposal of the matters. Of this,
informed you at our meeting in New York.
This course, just and right under all circum-
stances. is compulsory upon the government in
the present case. The very 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 situation. The contract provided
that 10 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 these reservations would amount to
$2l0, TO. They have been surrendered to the
contractor under circumstances not important
$26,67 In addition to this small
sum of $2667O in our hands. there
are unpaid bills for extras claimed on these ships
amounting to $26, 688 80, and in dispute to the
Dolphin, 500 945 O8; altogether (mostly in dis
pute), $50, ,3O4 Oh. AS against this, four ships
are i'll your hands, upon which over S. 000 900
has been paid, which must be completed to be
valuable, liable to greater deterioration by neg
lect than all the moneys unpaid and in dispute
would repay. 1t is of the utmost consequence to
the government. as it is to yourselves, thata just
settlement of past transactions should be had,
and new departure made. l suggest as
practical method Of arriving at solution of the
matter meeting Of yourselves and your coun
sci, with the Attorney general and myself, at
which some practical method of dealing with the
subject may be arrived at, which shall be within
my legal authority"