New-York tribune., 1900-03-05
STATUTORY THIEVERY.
ARMY AND NAVY DEPARTMENTS CHEAT
ED BY CONTRACTORS.
[BY TELEGRAPH TO THE rRrHuyE1

i
Washington, March 4-Controller Coler's ex-
posure of 'Tegalized robbery" in New-York was
particularly interesting to Army and Navy Of
f1cers. who have long deprecated the existence
of the same sort of thevery under the statute
laws of the United States without being able
TO effect lasting cure, because the thieves ap-
parently have sufficient influence in Congress
and elsewhere to kill remedial legislation.
Favored Army contractors notoriously able
to secure any price they choose to charge for
gently needed supplies. although when there is
time to compel actual bona fide competition ar
ticles wanted by the bureaus Of the War De-
partment frequently bought considerably
below market value. Competition is always
cured when large purchases are made. because
the demand has been anticipated; put for sup
plies that are suddenly required the law is such
that dealers with pull can demand and real
ize enormous profits.
The Paymaster-G General Of the Navy is just
trying to put stop to the rascality. taking
refuge under what is known the open pur-
chase" requisition, which must be hurriedly
filled without competitive bids. An officer
quiring articles quickly makes open pur-
chase requistion stipulating the approximate
value of the purchase which shall not be ex-
ceeded by the dealer. 1t Is customary in fact.
essential that generous figure be quoted on
the requisition that the purchase can be
made If the market price should happen TO have
advanced above the quotation AS the officer
who makes the reQuisition never sees 1t again
and does not have to approve the bills. the op-
portunities for fraud obvious. especially in
purchases of machinery articles involving
technical knowledge.
CHANGES IN REQUISITIONS.
1t is also fact that subordinates sometimes
take liberties with acquisitions after they are
who made the requisition ever 1t again.
For instance. a requisition recently emanated
from the New-York Navy Yard for twelve or
| dinary machinery bolts of small size estimated
to be worth not than Ave cents apiece.
The officer making the reQuisition. therefore.
wrote a nominal value of go cents. He learned
afterward that he could have bought them at
almost any hardware store in Brooklyn for So
a hundred. clerk subsequently, changed the
value to $50. and curiously enough. a certain
western electric company. which eventually got
the order, delivered the bolts and received 500
for them. The only thing that could be done
by the officers Of the yard when they found out
the facts in the case to discharge the clerk
and that was promptly done. The money was
gone and the law prevented any attempt to
compel its return.
The favored firms which have the first
"whack' at requistions have things all their
own way These favorites change when pur-
chasing agents change and the agents are
changed with every Administration
A ship came into the New-York Navy Yard
| not long ago from long cruise and was needed
in the Gulf Of Mexico soon as possible. Open
purchase reouist!ons flew around in great
hurry The ship had originally been fitted under
another Administration. ard favorite firms had
changed In the mean time. Several thousand
dollars worth of special repair supplies were
needed. They had TO be OF pattern made only
by g New-York firm TO fit the machinery orig
inally supplied by that company. But the requi-
sition was delivered to an Ohio firm in the same
| line OF manufacturing. The latter firm promptly
went to the New-York concern. purchased the
| articles a. 40 per cent discount. and their
| bill charged the Navy Department 10 per cent
more than the New-York concerns list price.
The profit was obviously large.
CASE IN POINT.
This was no worse. however than a little bill
| which recently passed through the Navy Ac-
| counting Office There is a book written by an
! officer in the service that has a limited sale,
mostly confined to the service. 1t was published
| ten years ago at 81 a copy. and ordinary NOR
| tails can buy q copy anywhere for that price.
| The publishers have several hundred copies on
| hand and gladly sell them at 20 per cent Off An
| officer needed copy Sor official use, and went
through the customary formalities to get ii. The
| publishers receipted hill. returned from New
| York to the Government voucher. showed
| that SIS so was paid for his copy. The officer
was innocent of any fraud, but that there was
| fraud doubts.
These are minor instances of comparatively
trivial affairs occurring In time OF peace. but in
| dictate what may be expected under the system
| when money has to be kept flowing freely in
| war times and In other Government establish
| ments than the Navy, where honesty ana EN-
| cheney are known to be high.