The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1885-07-28
NATIONAL NEWS NOTES.
WHITNEY ON NAVY CONTRACTS
The Secretary of the Navy's Ideas on
Proper Business Methods of the
Government-Admiral Jou-
ett Other Matters.
whitney and Roach


WASHINGTON, July 27.-Secretary
Whitney has sent the following letter
to MIR. George w. Quintard and the
other gentlemen to whom Mr.. John
Roach made an assignment:
"At our interview in New
York ON Wednesday last, YOU
requested mo to take into
consideration the condition of each of
tho contracts between the government
and Mr., John Roach, pending and in
complete, and in view of his assign
ment to make suggestions as TO the
method OF dealing with the whole SUBJ
iect. gave you assurances that /
would do so and communicate after
reaching Washington. AS l view
the matter, the rule which
governs individuals in these business
transactions should govern the action
of the department. At all events, ii
there is different rule proper TO be ap.
piled, am not aware OF 1t. My duty
heretofore has seemed to be very SIM
pie and plain. II has beon to insist up
on the strict enforcement of contract OBJ
legations, as interpreted 10 me, without
regard TO consequences. That is tho
ordinary, plain business method, de
parture from which in public officer
can have no justification; ana in like
manner know of no reason why the
ordinary principles which actuate
merchants in dealing with each other
and In accordance with which gener-
Gus consideration is extended ordina-
rily to an unfortunate business associ-
ate, should not govern the action of the
department under similar circum-
stances. The business method of deal
Nnt. WI ufA N
pursued by private parties would be,
first, to become satisfied that the as
signment was in good faith, and then
consider the best method, from
|a business standpoint, of
bringing about settlement of current
and incomplete contracts upon iair
and just basis for both parties. If l
| have tho power, therefore, [ will enter
into tho 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 dis
posal of the matter. o. this informed
you at our meeting in New York. This
course, just and right under all cir
cumstances, is compulsory upon the
government in tho present case. The
very liberal treatment which the con-
tractor has heretofore received has left
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margin of moneys reserved to enableit
to protect itselfin tho 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 those reservations would
have amounted to $2l0,7l0. They have
been surrendered To the contractor
under circumstances not important to
consider now, with the exception of
I$2,G67. In addition to this small sum
| in onr hands there arc unpaid bills for
extras, claimed on the ships, amount
ing to SZ6,GSS.95, and in dispute on the
Dolphin, $29Sl5.OB; altogether (mostly
in dispute), $S3,3R 03. AS against this,
four ships are in your hands, upon
which over $2,0OO,00UN has been paid,
which must bo completed TO be valu-
able, liable to greater deterioration by
neglect than all tho y moneys
repaid and in dispute would repaY. IL
is OF tho utmost consequence to the
government, as IL Is toyOurselYes, that
q lust settlement OF past transactions
should be had and new departure
made. / suggest as practical method
OF arriving at a solution of tho matter,
meeting of yourselves and your
counsel with the attOrney-genera and
myself, at which sOmo practical meth
od of dealing with tho subject may be
arrived at, which shall bo within my
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