Herald and tribune. [volume] (Jonesborough, Tenn.) 1869-current, 1886-01-14
NATIONAL AFFAIRS.
MAIL CONTRACTS AND MAIL
CONTRACTORS.
How tho Speculative Bidder is Said to
Benefit the Government by Keep
ing Down Prloss

How tho Speculative Bidder Is Said to
Benefit the Government by Keep
ing Down Prices.
The clerks in the office OF the second
assistant postmaster general will be very
much occupied next month in looking
over the bids which are now being receiv.
ed for carrying the mails on the star and
steamboat routes in the western section
Of the country. AS is known, the coun-
try 10 divided into four sections, and each
year contracts are awarded for carrying
the mails in one OF these sections for the
four ensuing years. The value of the
service thus contracted for is about $3,-
100000 which the government pays in
addition to the compensation given to
railroads, which forms another branch of
the mail service. The western section
comprises all the country west of the
Missouri, and the railroad service is pro-
badly less than in any other section, and
hence the star service |, more extensively
In use. Four years ago, when these con-
tracts were awarded, the rates obtained
by the government were, 1t is claimed by
the contractors, too low, and in conse.
quence they have not made much money.
1t is hoped that better prices will be al.
lowed this year, although, naturally.
there is no disposition on the part of the
government officials to have the expendi-
ture for this service increased. The spec
ulative contractor has a great deal to do
with low bidding, for the reason that he
gets large number of contracts, which
he sublets either at the same price paid
him by the government or for more.
When man has 400 or 500 contracts he
can afford to sublet one here and there at
profit of $40 or $40, because on some
other route he makes very liberal profit
and as long 90 the average brings good
balance in his favor be is inclined to
make great profit on every one of his
contracts. In fact, he could not do it if
he chose, because in order to get the con-
tract he is obliged to bid low in order to
beat the local competitor, or the man who
will actually do the service, and the con.
sequence is that the ectu2l mail carrier
has the great satisfaction, while going
through with the fatigue OF performing
the service, OF knowing that the profit is
going into the pockets CT some one else,
while he is barely making his expenses.
Naturally the local mail carrier hates the
general or speculative bidder, but he
brings the cost of the service down to the
government and that is a great considera-
ton. Various measures OF legislation
have been devised to head off the specu-
lative contractor, and one that was re-
Gently proposed, but never made into a
law, contemplated that the sureties on the
bond of a contractor should be persons
who resided in the vicinity of the route
for which the hid was made. This would
prevent bidder who lives in Washington
and knows no one in Arizona from com.
peting for a mail route in that territory.
Because it would be effective in shutting
out the speculative contractor to a large
extent, such law is objected to in the
interest of the government. Still it is
stated that there is not so much money in
these mail contracts as is supposed, and
that the books Of the department, where
the contracts and subcontracts are
placed on file, show that of the three
millions paid for this service but two
hundred and fifty thousand is profit, al
though the books do not show when the
routes have been sold right out and other
changes which might make this amount
somewhat larger.