The Birmingham age-herald., 1903-08-04
Secretary Root Makes Report on Charges Filed Against
 Contractor Lyon
CONGRESSMAN FURNISHED
 GOODS ID FILL THE ORDER
Peculiar Case Was Too Much for Mir. Root and He Turned 1t Over to the Department of Justice to
 Investigate.

Washington, August 3.-Secretary Root today made public all the papers relating to the investigation into the government contract for gloves with D. R. Lyon This contractor secured the gloves from Littauer brothers, the senior member of the firm, L. N Littauer, being a member of congress Secretary Root has refer red the case to the department of justice in order that 1t may be aseertained If the law has been violated and that ap- propriate measures may be taken In the premises There Is statute which pro- hibits contracts for the government be- ing made directly or indirectly with member of congress, and this was the basis of the investigation by the war de partment Col Darlington of the inspec- tor generals department was directed by Secretary Root to make an investiga- ton of the whole matter. This was done and his report referred to Judge Advo- cate General Davis, who made an exhaus- tive review and submitted opinion to Secretary Root. In the court of his re- mort and opinion General Davis says:
 Contract for 5000 Pair.
 a.It appears from the testimony that contract was awarded to Lyon for 5000 nairs of muslxrat glaves at s1.50 per pair. Later a second contract for 2O'0OO pairs was awarded to Lyon at a.7O per pair' a stimulation being inserted that deliver ,as under 1t could be increased hfty per cent at the discretion of the officer mak- ing the contract. The government took advantage of the stipulations and Sosl
  livered under the last contract. Some ris- cussion having arisen as to the price which Lyon was to pay for gauntlels, an agreement was entered into between IjttalIer brothers and Lyon to the CT fect that an accurate account Of the cost of noanufacture was to be kept, ana IT, after the contract was eompleteu' should prove that the cost or mahuAoo ture should not equal $l .65 per palr' bson st was to receive one-half of the pron.s. r-hara was A profit of $3537 one-nall ol .,,,,toh was credited to Lyon on the books of Tittauer brothers. A case falling With ,ro the nroyision of the statute is clear lv shown in the testimony which Tn the onini.n of this officer charges the ue- nartment with the performance O. ene duty set forth In section g. 7Ss or the re vised statutes. and it IS tnerelo,e ,..' 4t,a nnended that demand be maoe py 'n o,,artermaster general upon the hrm or 1sttauer brothers for the repayment Q. 1vhatever sum is found to have been pau in consideration of the contract With n. R I,von. as extended in accordance wl.n it's terms by the quartermaslel
 ment.
 Having regard to the high pehal.les o. the statutes above citeo' Winch st .t.o 1T to receive a strict construction a. lne bands of the department 1t is recommends ad that the opinion of the attorney gen oral he obtained as to whether in VIC" or t,,a sact that the contract has been com ,letelv executed, that the entire consiuera- tion has passed and that the arucles sup ,,,ated for have been delivered to ana a.t x.a.,,,e the property of the United ctates the whole or a portion of the con s,deration shall be made the subject or the demand
 ..1,be fact that a member of the con e~rass was an active officer of the firm which made large sales of gloves anu eauntlets to contractors with the quarter 1oaster's department, should have caused the officer In charge with the making or such contracts to scrutinize their execu- tion with A degree of diligence, measured hv inc likelihood of an attempted viola tion of the statute and should also nave caused him to be on his guard for evil dence of financial weakness on the part of the principal in the performance or inc agreement The fact that it was per fectly la wful for the bidder to make pur- chases of many firms engaged Tn the max ing of gloves whatever their compositions made 1t difficult for the contracting off, cer to ascertain whether corrupt intent existed, so long as the terms of the con tracts were carried out in apparent good faith and it made It similarity difficult to obtain information of positive char
 T.. tf tfno a ticular contract that would justify for nal inquiry. It was the duty of an officer charged with making purchases in behalf of the United States to see that the articles procured were of standard quality and that the prices paid were reason able.
 Duty Was We'll Performed.
 .aThe testimony elicited during the course of the investigation showing the prices paid, the profits realized and the numer- ous reflections of goods which fell short of the standards established by the de- partment shows that this duty was thor oughly and conscientiously performed"
 Secretary Root makes the following en- dorsement on the opinion of the judge ad- vocate general. which sends the case to the department of justice:
 "I suppose there is no doubt that manufacturing firm, one member of which happens to be a member of congress. has A right to manufacture and sell goods to iobbers who are filling government con- tracts. and that they do not come within the prohibition of the statute so long as the contract between the firm and the pobber is a separate and just transaction from the contract between the jobber and the government. There appears to be no evidence that in the manufacture of gloves by the Littauer brothers poor mate rial was used in filling government con- tracts made by Lyon and others. there was any violation of the statute, except fin the contract of December }, 1898, tthe last contract.) It is not the duty or the right of the secretary of war to adjudicate that case or to determine whether the statute was or was not violated, except in so far as it may be necessary for him to decide what action, If any. should be