Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-07-25
QUESTION OF PRINTING
Diverge Of Views Between
Government Officials.
THE STAMP CONTRACTS
THE POSTMASTER GENERALS IN
vITATIoN TO BIDDERS.
Effect of Increased Charge by the Bu-
reau Of Engraving-Attitude
of the Treasury.
THE STAMP CONTRACTS

master General Payne that bids are to be
received for the printing of stamps for the
fiscal year ending June 80, 1904, lies a di-
Vergence of views between post Office Off
Gals and those of the bureau of engraving
and printing which is Of more than ordi-
nary consequence. This action of the Post
master General indicates, first, that Con-
troller Tracewell's recent ruling-that in
spite of economical considerations ell gov
eminent printing must be done In the gov
ernment's printing offices-does not apply
to the printing Of stamps and similar ar
ticles 1t indicates also, and herein lies its
greatest Significance, that the Post Office
department proposes to abandon the estab-
lished principle of the treasury that all
printing of bank notes, bonds, stamps and
similar commodities should be done under
the eye of the government and by govern
ment employees. The outcome of Mr..
Payne's move will be awaited, therefore,
with the most tense interest by the officials
OF both the departments concerned.
Increased Charge by Engraving Bu-
reau.
For several years the contract for print
ing postage stamps has been let to the bu-
reau of engraving and printing. The sum
represented by this award has steadily in
creased at an approximate rate of per
cent until for the current fiscal year the
contract price Is $3.50 600. Before this work
was Entrusted to the bureau 1t was done by
the American Bank Note and Engraving
Company. and the change was made. not
because the latter firm did not do the work
satisfactorily, but because, other things be-
ing equal, 1t was thought better tor the
government to do it's own printing of post
age stamps, bonds and other commercial
certificates. With improved machinery and
the advantage of location here in Washing
ton the award to the government bureau
had also the advantage of small saving
IN cost which confirmed the officials of
the Treasury Department in their position
that all such printing could best be done by
the government.
But this year has brought to light a new
d!1hculty. When Mr.. f. c. Madden, the
third assistant postmaster general asked
for the bureaus estimate on the stamps to
be used during the next fiscal year the bu-
reau raised the price of printing postage
stamps by very considerable percentage.
The exact increase asked by the bureau is
not given out for publication but it is be-
lieved to be large. One officer of the Post
Office Department said this morning that
the increase lifts the offer of the bureau
of engraving and printing out of all rea-
son and makes it impossible for the depart
ment to have its stamps printed there"
Confronted with this increase in cost and
with the almost certain knowledge that the
American Bank Note Company would be
figures the Postmaster General decided to
advertise for bids. No one, apparently, eX-
poets the bureau of engraving and printing
to enter into such competition. Its pro-
posal sent several weeks ago to Mr.. Mad
den Is taken as being the final action of the
Treasury Department. In consequence the
action of the Postmaster General is re-
garded as excluding the bureau of engrav-
ing and printing from the competition and
limiting the contest to the half dozen en-
craving firms not connected with the gov
eminent which are able to undertake the
printing of over 5,00o,0oo000 stamps a year.
Controller Tracewell's Decision.
Controller Tracewer's decision was an
nounced at about the time this course was
determined. After some investigation 1t
was agreed in the Post Office Department
that this construction of the law by Mr..
Tracewell could not apply to the printing
of stamps because at the time 1t was an
nounced the treaSuryS approval had al
ready been given to contracts for the print
Ing by outside firms of stamped envelopes
and postal cards. The value of these two
contracts is something less than $1OOo,OOo,
Whatever their value however, their APP
prevail by the controller is taken as aouno-
antly justifying the contention that postage
stamps need not be printed by government
workmen except at the option of the Post
master General
Both Mr.. Payne and Mr.. Madden are UNI
derstood to affirm heartily the treasury
attitude that printing of this class should
be done by the government. But Mr.. Mad
den feels and his position In this matter is
sustained by his chief, that the increase In
cost proposed by the bureau makes 1t i'm
perative for business reasons that the de-
partment have its work zone elsewhere.
Were the increase proposed less than IL is
the department might feel itself free to
have the work done by the bureau. This
increase is said to be so great, however,
that the department cannot even con-
slider 1t.
Possible Consequence of Award.
The possible consequences OF awarding
this contract to an outside firm are being
widely discussed. 1t is said the American
Bank Note Company has for several years
been seeking loophole for the renewal OF
it's old contracts with the government. Ii
it can obtain the contract for printing
stamps by undertaking the bureau or en-
craving and printing the general inference
is that the company will also underbid the
bureau on bonds, bank notes ana other
government papers. If the attitude OF the
Post Office Department should eStaDllsn d
precedent then it is claimed the treasury
must accept these lower bids on bonds ana
like commodities, and the final consequence
would be that the treasury position estap
lished by John Sherman when Secretary OF
that department would be entirely aban-
doned.
The Attitude of Labor Interests.
Organized labor in the District OF Co
lumbia and throughout the country VIII
probably play a part in the matter before
it is settled and there is no telling now just
how the far the question will go. Should
the contract go to private firms about four
hundred employees OF the bureau OF engrav-
ing and printing, most Of them girls WIN
families depending on their earnings, would
lose their positions.
The bureau of engraving and printing is
qualifying for the purpose OF entering tne
contest as bidder, but the officials OF the
bureau and of the treasury have no idea
that the bureau will be able to compete
with the bids Of private concerns. 1T is
stated that during the year just closed the
bureau did the work for the Post Office De-
partment at loss of $4,000. 1t will not
attempt to do this at such loss another
year, and consequently determined - in
crease its bid for the next stamp year SO as
to cover this loss Assistant Postmaster
General Madden, who has charge Of the
case, it is said, is disposed to look upon the
matter as a business proposition pure and
simple, and wholly part from its effect
on the employees in the bureau. Mr.. Mad
den is not at all unfriendly to the interests
of organized labor, it is claimed, out is
studying the matter with concern.