New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-03-09
VAN Colts COAL CONTRACT.
STORY OF A SUIT AGAINST THE EX-
POSTMASTER.

SAID TO HAVE BEEN SETTLED OUT OF CoURT-MR.
VAN Colts VERSION OF THE TROUBLE.
big batch of papers has been received in the
County Clerks office from the Treasury Depart;
ment at Washington. sent here under order
signed by Justice Pryor. IN the Supreme Court.
the application Of Alexander Campbell a lawyer,
of No. l Broadway. The papers were intended 10
he used in a suit Instituted by James Birmingham
against Cornelius Van Colt. ex- Postmaster OF this
city. II is likely. however. that the suit will not
to trial. having practically been settled out
OF court. The plaintiff in the contemplated suit
the assignee of William Terhune, represented
TO be partner In the firm Of Terhune & Van Colt.
In the coal business. and the suit TO have
been brought. according to the papers. to recover
the value OF quantity Of coal sold TO the Post
master by Terhune
Il appears tina; in 1891 Terhune & Van Colt got
CONTRACT from thu Government 70 supply 5000
tons of coat 10 the Postoflce at 81 os ton. for the
year ending June 90. 1892. The papers show that
an investigation was held which brought out that
in 2.o57 tons Of coal received there was a dis
crepancy OF $50 tons II also shown that the
scales In Mail-st were out OF order while some
OF the coal was being weighed. and that some OF
the coal delivered not weighed at all. The
weghcrs Riginal Morgan James Alderman
and Bernette Taylor and they were under the su-
pervision Of Assistant Postmaster Gregory.
J. T. Powell. United States Inspecto. of Electric
Lights who conducted the investigation. reported
that the vouchers and the certincation on them
most carelessly prepared. and that great sus-
picion was cast on their accuracy. lie recon-
mended that Taylor. the Waterman and weigner.
be discharged. and that no further coal be bought
from the firm
There Is also a mass of correspondence from
which II Is gathered that the Treasury Department
looked TO Mr. Van Colt to make good the de-
fciency and II made good by some one. but
whether by Mr.. Van Colt or some one else does
not appear.
When seen last night by Tribune reporter. ex-
Postmaster Van Colt said This investigation
made by the Treasury Department at washington
relative TO the supplying OF coal 10 the Postofiice
by the firm Of Terhune & Van Colt during the time
I was Postmaster resulted from report written
by me- These are the facts Of the case, which mas
recently been settled out Of court Mr. Terhunes
representative compromising with me: In 1881 BIDS
were asked for the furnishing of 5000 tons OF coal
to the Postoffice. One OF the bids submitted was
from the firm Of Terhune Van Cott of which
my brother Whitfield was a member. As l was
Postmaster then. my brother did not favor sub
hitting bid. When the contract was awarded
to mis- firm. he disposed 10 have the supplying
Of the coal given 10 other parties. Terhune was
DESTROYS of holding the contract and IN case Whit-
field persisted In the stand he had taken, Terhune
expected 10 furnish the coal himself. As the BID
had come from the firm and not from single
member | informed Terhune that J. had no alterna-
tive in the matter; must deal with the hrm alone
From some OF under me: l learned tadt
the contract had not been fulfilled There was a
shortage. as near as could learn apou, d he Rad
Mr.. Van Colt was asked whether or not ne No No
learned of the deficit from employees OF the
Building or the assigned as weghers lie IN
tma,ed that the only way the shortage wa His ,
covered was by the burning OF the coal. which had
been consumed In less time than such an amount
as was supposed TO have been delivered usually
was consumed. These facts he submitted 10 the
Treasury Department in report asking ina an
investigation be made. AS a result the treasury
Department learned that the deficit was about 400
tons How the Treasury Department arrived at
that decision Mr.. Van Cott did not appear 10
know Nor was ne able 10 confirm or deny the
report that any weigher attached 10 the Postoflce
Of duty. After the awarding OF NE contract 10
Terhune & Van Colt Mr.. Van Colt declared that
the firm had been dissolved, Terhune undertaking
10 carry out the contract
Prior to the discovery Of the shortage" contln
ued Mr. Van Colt, "Terhune mad got another con-
tract for the supplying of the Federal Building with
by the first contract and had supplied some OF the
coal stipulated In the second contract. when the
Treasury Department announced the discrepancy IN
the former contract. Before Terhune received pay,
him make good the deficit. Subsequently he
brought suit against me for the amount had re-
quired him TO make good"
Mr.. Van Cott would not say what were the terms
OF the settlement OF the suit outside OF court.
Mr.. Campbell declined 10 nave much 10 say about
the case when seen last night. We are not seek
money. and think we've got IL. From what took
place this afternoon think the case il practically
settled and will never come 10 trial. II II is not
settled. however. II will be on trial next Wednes-
day and then you see what there Is in It, but
! can't say what the case Is II would never
nave been noticed perhaps II It hadn't been Cor,
in IL There's thing can tell YOU and that
is that Cornell never in the coal business:
Mr.. Van Colt is supposed 10 have the backing
OF the Republican State machine for the New
York tmastership.