Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-08-05
Case Of Purcell Company Against
Postmaster General.
APPLICATION FOR An INJUNCTION
Hearing Of Argument Before Equity
Court of District.
ANSWER OF DEFENDANT

morning in the suit of the Purcell Envelope
Company of Holyoke, Mass, against Post
master General Charles Emory Smith,
Justice Cole presiding. The compliments
seek an injunction against the Postmaster
General to restrain the cancellation of
contract with the Purcell company to fur
nish the Post Office Department with
stamped envelopes and newspaper wrap
pers for a term of four years. The COM
piainants were represented in court by Mr..
Hoehlfng, who is associated with Mr.. j.
M. Wilson, and Mr.. John C. Fay. The Post
master General was represented by Mr..
Henry E. Davis, district attorney, and Mr..
Harrison j. Barrett.
The contract was awarded to the Purcell
company by former Postmaster General
Gary, by Notification and official order
When MIR. Smith succeeded TO the office he
refused to sign the contract. The conten-
ton by the complairants is that the con-
tract as awarded is valid The defendant
says this is q question for the court to de-
termine. Mr.. Davis declared that if the
compliments have a contract they have an
adequate remedy in law in the Court OF
Claims, while if they have no contract they
are not in court.
The history of the case has already been
published in The Star, as well as the con-
tention of the conplanants.
Postmaster Generals Answer.
The answer of the Postmaster General
was filed today. 1t is denied that the con-
tract with the Purcell company was duly
executed without objection by the Post
master General. 1t is averred tiat the
facts are that the contracts, after having
been executed by the complainant, We're
transmitted to and received by the Post
master General, but were never signed by
him, and were, in fact, not accepted by the
Postmaster General. The answer alleges
further that with the letter of the third
assistant postmaster general, transmitting
the contracts in qGadruplicate to the COM
painant for execution, the complainant
called upon for new and distinctive
designs for embossed stamps or stamped
envelopes TO be made under such contract
further communication was addressed to
the Purcell company, informing them that
the Postmaster General had not signed the
contract. but was holding the matter in
allegiance, and requesting them to suspend
all action on the letter received with the
contracts
1t is admitted that former Postmaster
General Gary was satisfied, after investi-
CATION, of the fitness and capacity of the
complainant company to perform the con-
tract, and made the award accordingly. 1t
is not admitted, however that the Purcell
compar at that time had in it's possession
all suitable and LecasSary facilities with
which properly to commence and carry on
the said contract OF was able to carry IN
the same.
Postmaster General Smith denies that the
contract as awarded in the manner set
forth in the bill of complaint constituted a
valid and binding contract or gave the COM
plainant any vested right. The question
whether such contract exists, or IL the
complainant has any vested right is a ques-
ton of law for the court Mr. Smith ad-
mits that he has set aside and anEulled the
contract with the Purcell company by an
official order, has cfdered an advertisement
for new proposals. and that it is his inten-
ton, unless restrained by the court, to
award new contract. It is said that any
preparations made by the complainant
company for carrying out the contract are
immateral.
An Allegation.
In the answer it is alleged that Mr. Smith
made further investigation and decided that
the complainant was not suitable or
proper person or body polite to be intrust-
ed with the carrying out of said contract
1t is lastly alleged that if the complainant
has any vested right it has adequate rem
edy at law.
Mr.. Fay opened the argument declaring
Mr.. Smiths act in annulling the contract a
hsn-handed action" He said that all the
other bidders are members of the envelope
trust. 1t was now proposed to shut out the
Purcell company, the only competitor
lie said there was no adequate remedy
for the compliments in the Court of
Claims, and IL is not competent for sue
ceSsor in office IN such a case to refuse to
sign contract awarded by the prede-
ceSSOr.
AT this point a recess Of half an hour was
ordered.
Opens for Defense
When the court met at 100 Mr.. Barrett
took up the opening argument for the de-
Tense.
During the course of the attorneys re-
marks Justice Cole declared that he thought
| it very peculiar ground for government
officer to take to say that he would annuI
contract for fear the successful bidders
could not carry on the work. especially
when a 100000 bond had been furnished
He said he doubted the officials authority
to take such action.
This remark is regarded as strong point
in favor of the Purcell company
At the conclusion of Mr.. Barrett's argyll
ment an adjournment was taken until Tues
day next at 10 o'clock.