The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-08-05
Mr.. LlTTAUER EXPLAINS
STATEMENT IN REGARD TO GOVERN
MENT CONTRACTS.
Thinks There Was Nothing Wrong In
His Dealings with Lyon, Who Fur
nished Gloves for Soldiers.

NEW YORK, Aug. 4.-Congressman Lit
tauer has made the following statement:
~ am OF course surprised and disappointed
ct the decision OF the secretary OF war that
there may exist even a prina facie case OF
violation OF statute. The decision only Gre
ates an inquiry as to whether technical
violation of law has been committed and re-
moves from the case entirely any suggestion
Of dishonesty or dishOnOrable action on my
part and of any improper use of my influence
as a congressman in regard TO any glove
contracts
II can ask no more sweeping and COM
plete vindication of my honor and business
integrity than the final findings of the sec
rotary.
las to the matter which has been referred
20 the attorney general am at a loss TO
understand how any question, even OF
most refined technical nature, can exist as
to the project propriety and legality of the
contract OF Dec. Z. 1898. The uncontradicted
evidence concerning this contract develops
these facts. Mr. Lyon was a general con-
tractor TO the War Department. furnishing
not only gloves. but caps, cottons. ducks
and various other articles. There was
awarded to him a contract for 1900 muskrat
=
at price OF $l74 per pair. This price,
we ascertained during the process OF man
ufacture. was too low, as / informed MIN.
subsequently, Mr.. Lyon bid and his Dld
was accepted for 10000 similar gloves, with
q privilege TO the government OF REQUEST
Ing 80 per cent. more, which the govern
ceptance of the bid he called upon me TO
furnish him with the goods. L informed
him that / would not furnish them at the
price that the 1900 pairs had been fur-
q "A
ton, as / had previously informed MIN:
During our conversation L took sneet OF
paper and in my handwriting calculated
the price OF the goods which, with 10 per
cent. profit to my firm, would have amount
ed 70 $1.s1 per pair, which was the price at
which had previously offered TO make the
gauntlets. During the discussion reduced
this anticipated profit TO 10 per cent, max
Ing the price S1.73.
with the material that entered into the
manufacture OF the fur part of the gloves,
insisted that had overestimated the num-
, Der OF skins that would enter into the man
ufacture OF a dozen gloves and subjoined 10
my memorandum in his handwriting his es-
innate of the cost, which he fixed after cor
rection OF his previous figures at Sl.461z.
would not acquiesce in his estimate OF the
cost, and he would not acquiesce In mine.
He importuned me. however, not TO leave
him in the lurch, he had already con-
tracted TO furnish the goods to the govern
ment at $l.65. CT turned out, In fact, that
he had contracted for them at 81. 20. al
bought the goods at sl65. but / conceded
that If 1t should be demonstrated after the
actual manufacture OF the goods, II they
had cost me less than $l.65, his account
would be credited with one-half Of the diff
ference between the actual cost per pair
and $1.65. at which we had sold the goods 10
him. This difference was ascertained TO be
$3,537-05, and he was credited with this re-
bate, which amounted to $,76S.52.
"Our books give evidence In detail OF this
transaction Mr.. Lyon was charged for
the gloves at $l.65 per pair and his ac-
count was subsequently credited with the
rebate referred to. If, the secretary
says, there is no doubt that manufac-
turing firm, one member Of which happens
to be member of Congress, has a right
to manufa cture and sell goods to jObbers
who are filling government contracts, and
that they do not come within the prohibit
ton of the statute so long as the contract
between the firm and the jobber is sep
arate and distinct transaction from the
contract between the government and the
contractor / fail to see, and am sure the
community will fail TO see how even a
technical violation of any statute or of any
code of morals, or commercial propriety,
or airy invidious criticism or censure can
10 fo,,nSad rtpou this transaction