Evening star., 1898-06-14
A Fight Involving Several Million
Dollars.
CLAIM MADE 0F A VERBAL AWARD
Arguments Before the Postmaster
General.
POLITICAL INFLUENCE

Postmaster Genera! Sraith sat in iu-
! dicial caracity yesterday afternoon to hear
| the arguments in the matter of the con-
| tract for furnishing the government with
| stamped envelopes and newspaper wrap
pers for the next four years. The contract
| involves an aggregate expenditure of near
| ly So, ,OOOG;o and has attracted more atten-
| ton than any other contract in recent
years.
| Before the bids for the new contract were
| prepared General Merritt, the third assist
ant postmaster general, called to the at
| tention of Postmaster General Gary the
! situation which made it practically impos-
| sible for any but a certain combination to
| participate in the bidding. With the con-
| sent of tie Postmaster General he drew the
| specifications in such way that the bid
| ding was practically thrown open to the
envelope makers of this country. This
was made possible by inserting a proviso
that bidders would be permitted to offer
samples of paper, which should at least
equal the government sample.
Four years ago the Purcell Paper Com
pany of New York5came into the market
and gave the Plympton Envelope Company
(Which. by the way, had had the contract
for twenty years previous) shock by ma
terially undertaking 1t. The contract was
accordingly awarded to the Purcell Com
pany. After that company had demon
and had made 60,O00,O0O envelopes, the
Plympton company had conference with
the new contractors, and made such over
lures that the Purcell company subet the
contract and received handsome bonus
But this is ancient history. 1t gives, how
ever. a brief outline of the situation before
the present bids We're invited.
When the proposals under consideration
were offered it was found the Plympton
company had made a combination with the
Morgan Envelope Company, under the
name 1.-The Plympton- Morgan Envelope
Company" 1t was generally understood
however, that the name was merely one of
convenience. since all of the large envelope
companies in the country We're concerned
in the matter and had an interest in the
new firm. The opening of the bids showed
many surprises First of all, the old ene-
mics of the Plympton company underbid
all others on envelopes made of paper
known as the government standard. Then
the bids were several hundred thousand
dollars lower than the figures of four years
ago, showing the advantages of competi-
tiOn
The Fight Opens.
After the bids had been scheduled the
fight commenced in earnest and it is safe
to say that in the history of the Post Office
Department there has heefl no fiercer con-
tention. Politicians whose tnames are mas
ter ones on the political chess board were
called in. and the matter reached such
formed the subject of a cabinet discussion.
The Purcell company hadC at the head of
its affairs the famous New York politician
Lou Payn, and he's turned the political
machine Of New York in favor of his COM
pany. Serator Platt came to the help of
his political ally, and soon he brought be-
fore Postmaster General Smith all the in
f1uence that he could command.
The Plympton people We're not idle and
Senators Lodge and .Hoar came frequently
TO the Post Office Department and sur
rounded the Postmaster General with New
England politicians and senatorial influence
until the corridors of the Post Office De-
partment reminded one of a republican
presidential convention. And day after day
the battle of influence waged. One day
the hopes of the Plympton company went
high; the next the Purcell company scared
into the realms of prosperity.
Postmaster General Gary was overwhelm-
ed with the political showing, and took
casion to declare himself in no uncertain
terms that he would not be actuated in
awarding the contract by any other influ-
ence than that which the best interests of
the government dictated. In other words
politics and personal pressure would cut no
Inquire in the matter. Meanwhile the tests
We're going on and the board of experts
was preparing to make its report. Finally
after weeks of waiting, Postmaster ten
eral Gary announced his decision He
awarded the contract to the Purcell COM
pany on the government sample. The let
ter transmitting the order of award was
accordingly written and sent to the Pur-
cell company, followed the next day by
contracts in qCadruplicate. Two days later,
and before the contract had been signed by
Postmaster General Gary, he resigned and
Postmaster General Smith found when he
assumed the duties of the office the inheri-
tance of a big political struggle He hesi-
tated about signing the contract. This was
most important to the defeated PIympton-
Morgan company, and the mass of infiu-
ence Which had been directed to Postmas-
Ter General Gary was switched to the new
mead of the Post Office Department. Other
influence came. and a week had not elapsed
before the new Postmaster General found
himself besieged on all sides. by personal
and political friends of the contending COM
panles. He listened attentively to the ar
guments. but did not execute the contract
He undertook to look into the matter nir1-
SELF, and with characteristic enterprise be-
came informed on all the points affecting
the contract. Special inspectors investigat-
ed the character of the bidders and the
abll1ty OF the companies to perform the
contract Having satisfied himself on all
tnese points, ne announced to both sides
that he would hear arguments If they de-
action
The Hearing.
Yesterday was the day agreed upon. and
at $50 O'Clock the forces met for the final
struggle. The Plympton and Morgan Com
pany was represented by Mr.. r. Ross
Perry, while Mr.. Jere Wilson essayed the
management OF the Purcell case. The
hearing took place in the office of the
Postmaster General, and was attended by
Mr.. NJ S. Chapman of the Plymton, Nor
gan Company and Secretary Henry E.
1ownsend of the Purcell Company. Assist
ant Attorney General Tyner and Law
Clerk Barrett We're also present, and Mr..
Merritt, third assistant postmaster gem
eral, under whom the subject directly
comes, dropped in and heard some of the
argument 3t
Postmaster General Smith in opening the
hearing, said it was fhe fist time he had
ever sat In judicial capacity, and told the
counsel that each would be given ample
opportunity to be heard.
Mr.: Jere Wilson opened. He referred
briefly to the subject, under discussion and
then proceeded with an argument tending
to prove that the proceedings were un-
necessary, since the government already
had contract with the Purcell company,
as olndlng as any contract could be. 1t was
not necessary, he said, toohave the sigma
ture of the Postmaster General to the con-
tract to make it binding, The notice of
eWard which has been made a part Of the
public record was sufficient He cited num-
erous authorities which showed where the
government had notified a company or per-
son OF the acceptance of ehis bid and the