New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-06-16
holding CONTRACTORS TO THEIR DUTY.
ENERGETIC ACTION OF THE PosroFFICE DE-
PARrMExT N THE CASE oF MAN WHO
FAILED on MANY STAR RoCI

FAILED on MANY STAR hOO1E>'
WASHINGTON. June - ispccianA conviction was
obtained last week I'm the United states court aO
portland. Me-. which will be Of great Importance 70
,be posal service i'm correcting an evil tliat oade ltr
a. disorcani,o the star service Of tho country thner
me system of competitive bidding which permits pro
TO- slonaI contractors to compete WIN local o"'o''
for star service. Il happened In great many Eases
that the margin between the lowest bidder ana 'h'
nevt above him was only few dollars As these
u,ofcssona bidders frequently obtain some huhdtcl'
Of routes. II often happens that among them 'nere
GIN bo a considerable number of what are caiied
losing rontcs: that it, routes on which tie service
must be performed by the contractor at Ioss' OF
where no sub contractor can be obtained cNcep iVr
sum in excess Of the price at which the contract was
awarded Under a system which had grown up III
tho Department a professional contractor would iali
IN mt the service on such route. and then would
come In with an offer to compromise for actual
DAMAGES: that is the difference between his DID
and the next lowest bid plus the cost OF temporary
service pending the time when he abandohcd te
route or failed 20 put on the service ana TIE time
when il was taken up by the bidder next above him.
one of the professional contractors, w a. atod-
dart had failed on nearly zoe of these routes; and
after considerable time. the service having meantime
been provided for by the Department. he came IN Win
the usual Offer of compromise for actual damages.
This offer at once rejected by second A.
ss,ant Po,tmas ter General Whitfield, rs were large
number Of Others made about the same time by Other
failing contractors. \ great dcdl OF uH"'aiHHs
pressure was brought to bear on Mr. Whitfield; ana
when IL was found impossible to change his do
termination an appeal was taken to postma tertien-
cra wanamalcr, who however stood By his ASSISTANT
In tho decision the latter had reached.
In addition TO the full sum OF the bond when tho
statute provides lqndated damages for the failure
to perform service after award has been made ana
contract entered into Section 30jI Revised Statutes
as amended by act Of August II. l-7G. PROVIDE
an additional penalty Of fine and imprisonment Colonel
Whitfield Immediately caused proceedings to be in
sti,utcd IN the United states Court ot Portland Me-
against W. \. stoddat. falling contractor; and the
result il To- conviction above noted.
The result is notable from the fact that rs far as
the records Of the Department show, Il Is the first
conviction ever had under the criminal statute fr
falling 10 perform hi. service. Civil action on the
Iond will BE- Instituted by the Government 10 recover
uouidatod damages as provided for by the statute
The importance Of the new departure VIII be seen
when II is borne in mind that in the case Of Stoddnn
the actual damages amount to about 5000, "hi!e
the damage, provided for IN the bond VIII ia l,lc
short II $4,000 Nr StOddad failed in nearly 100
Of his routes. 1t should be borne IN mind that this
failure occurred after award, and when -nddarl had
entered into contract, duly executed, with bond
men whose suflccncy had been certified to b. the
postmaster the place whore the bond was executed
and after the usual oath had been taken bY him 70
peri rm service In accordance with the term, OF
III, contract. The competition among professional
bidders. and between them and the local bidders has
become ~ close "a, to reduce the margin Of profit
Nh extremely low figure. These failures. il persisted
IN. would have utterly dcmoraAzcd and hLaly dis
organized the star service of the country.
Colonel Whitfield found, almost from tho Start
disposition the part Of some Of the contractor, not
only dsfc gard the terms II their contracts but to
execute proposals and contracts IN utter contempt Of
the Lave and regulations. soon after he took charge
Of the Office. he set aside nearly el4jOOO worth
Of fudulcn; contracts In which cases Il appeared that
the names II niraCtOrs srces AID witnesses were IN
one handwriting, and In which "A subsequent lnve-ti-
CATION developed tho fact that the surety not only
slsnrd tie contractors name, but actually took the
oath =. him. ana subscribed 10 The Thi, spring
when The award was made for the contracts to begin
july 500 about 900 worth Of proposal,
a.dc for informally ~ execution similar 10 the
contracts above noted.
II is believed that the prompt action taken by the
United states Court al Portland. and the position u
The Department IN refusing compromises, Will tend -
break up entirely the practice OF falling TO perform
,crvco In accordance with the terms Of the contract.
and that the setting aside 81 contracts and proposals
improperly executed will result in convincing bidders
and contractors that obligation forma "
entered into with the Government under seal. and
executed under the socmnity Of an OATH is not dead
letter. but that y something and that the
Department will hcnceforth insist upon specific per
forinancc apply all the remcdea provided by the
statute.