The Democratic advocate., 1885-04-11
How a Navy Contractor by Collu-
sion Cleared $4,000.

The present Paymaster General of fthe Navy,
j. A. Smith, was appointed by Mr.. Arthur
some three years ago. 1t was current gossip
in naval circles at that time that Smith owed
his appointment to the influence of Clint.
Wheeler and Steve French. One of the can
didates for the Paymaster- Generals position
at that time was approached by French and
Wheeler and asked the direct question wheth-
er he would favor them with contracts for
naval supplies in case they backed him for
the appointment. He Indignantly refused.
They then gave their support to Smith and he
was appointed the next day. The manage
ment Of Smiths Office will surely be made
subject of investigation by Secretary Whitney
1t is more than suspected that the Paymaster.
General has favored certain contractors to an
extraordinary degree Judging from the
records in one case alone, his undue partiality
to contractors must render him an object of
suspicion.
On Nov. II, 1882, Mr.. Smith awarded a
contract to Austin P. Brown for 500 barrels
of beef and 1000 barrels of pork The con-
tract for the beef was $40. IS per barrel, and
for the pork S21.8O. The contract stipulated
that these articles were to be delivered at the
New York Navy Yard within ninety days.
The market price for beef and pork at that
time was very high. Mr.. Brown secured the
contract by bidding below the market price.
He could not have fulfilled the contract
without serious loss. On Nov. 16 of the
same year Gen. Smith doubled the amount of
Browns contract. Under an honest per-
formance of the contract this would have re-
suited simply in double loss. The contractor
did not object to the increase of the contract.
He must have had some understanding with
the Paymaster General, because he did not
deliver single pound of the beef or pork
within the time specified. With the approval
of the Paymaster- General he waited, with the
calmness of a man holding four aces, for
drop in the market before making a move to
deliver any of his supplies. On Feb. 8, 1883,
the Paymaster- General kindly extended the
time of the contract. Mr.. Brown did not
make any delivery under the contract until
April II, 1888, when it had fallen 81 barrel
from the market price at the time the contract
was made. This did not give a large enough
profit. His contract was extended from time
to time. During July pork dropped S4 a
barrel.
The contractor upon the 9th of that
month made another delivery. Pork kept
dropping during that month, going down so.
This drop so encouraged Mr.. Brown that upon
the 23d of that same month he made another
delivery. Pork from that date went plunging
downward Brown waited for long drop,
and would not turn over any more pork until
September. Upon the 10th of that month
pork had dropped $3.50. Upon the 10Th of
that month he made another delivery follow
ing drop of $3.50. 1t became rule of
Browns method of doing business with the
Government to follow the maxim of no drop,
no pork On Oct. there was drop of $40
from the contract price He made a delivery
then and two days afterwards another.
Meanwhile he had been delivering beef
under his contract whenever he pleased The
drop in beef was in about the same ratio as
that in pork. Six hundred barrels of pork
and 400 barrels of beef were not delivered
until after Feb. 6. 1884, when still further
profits were realized. The Paymaster- Gen
eral made contract with this man for perish
able articles one year before they were need
ed, and when prices were at the very highest
point. More than this-he doubled the amount
of the contract without any authority of law.
He also extended the time of the contract
indefinitely. All of these articles could have
been contracted for before they were needed
and at least $50, 900 saved to the Government
by an honest watchfulness over its interests.
What interest the Paymaster- General could
have had in thus favoring the contractor and
practically presenting him with over $4,000
is matter which will require explanation.
This is only one contract If other contrac-
tors have been equally favored it is no wonder
that the Paymaster- General had before his
appointment the unqualified and hearty in
dorsement of such eminent patriots as Clint
Wheeler and Steve French.