The Forest Republican. [volume] (Tionesta, Pa.) 1869-1952, 1903-08-05
ARMY CLIO IE CONTRACT
Papers Rel2ting to Investiga-
ton Made Public.

judge Advocate General Davis Says a
Case Falling Within Prohibition of
the Statute Has Been Shown In
Connection With Lyons Contract.
Demand For Repayment.
Washington Aug. - Secretary
Root has made public all the papers re-
lating to the investigation into the
government contract for gloves with
e. R. Lyon. This contractor secured
the gloves from Littauer Bros, the
senior member of the firm being Con-
gresham Littauer.
Secretary Root has referred the
case to the department Of justice to
ascertain if the law has been violated,
so that appropriate measures may be
taken if it has. There is a statute
which prohibits contracts for govern.
ment supplies being made directly or
mum IOSIiy VIII q luSlllDSI VI tOl-
gress.
Colonel Darlington made an inves.
tigaticn and submitted a report as to
the facts in the case. Judge Advocate
General Davis made an extensive re-
view and submitted an opinion to Sec.
retary Root. In the course of his
report General Davis says:
1T appears from the testimony that
on Oct. 15, 1898, a contract was
awarded to Lyon for 5000 pairs of
muskrat gloves, at $1.54 per pair; on
Dec. 7, 1898, a second contract for
10000 pairs was awarded to Lyon at
S1.70 per pair, stipulation being N.
serted to the effect that delivery un.
der it could be increased so per cent
at the discretion of the officer making
the contract.
Division Of Profits.
"The government took advantage of
the stipulation and 30,061 pairs were
actually called for and delivered un.
der the contract Of Dec. 7, 1898. Some
discussion having arisen as to the
price Lyon was to pay for gauntlets
delivered under the contract of Dec.
Z, an agreement was entered into be.
tween Littauer Bros. and Lyon to the
effect that an accurate account of the
cost of manufacture was to be kept,
and If, after the contract was com.
rleted, it should prove that the cost
of manufacture did not equal S1.65 psr
pair, Lyon was to receive one half of
the profits. There was a profit of 49,,
537.05, one half of which was credited
to Lyon on the books of Littauer Bros.
"a case falling within the prohibi.
tion of the statute is clearly shown In
the testimony, which, in the opinion of
this office, charges the department
with the performance of the duty set
forth in section 3,739 of the Revised
Statutes and it Is therefore recon,
mended that a demand be made by the
quartermaster general upon the firm
of Littauer Bros. for the repayment
Of whatever sum Il found to have
been paid in consideration CT the con.
tract of Dec. 7, 1898, with e. r. Lyon,
| as extended, in accordance with its
terms, by the quartermaster's depart.
ment.
1T will be observed that section g.
739 of the Revised Statutes requires
that demands shall be made for the
repayment of any sums Of money
which may have been advanced on the
Grafton of any such contract or agree.
ment and in the case Of a refusal OF
delay to repay the same the statute
goes on to require that a suit shall be
instituted for the recovery of any such
sum of money so advanced, thus max.
ing an important distinction between
those portions of the consideration
which are advanced and those which
retain their executory character
Having regard to the highly penal
character of the statute above cited
which requires it to receive q strict
construction at the hands of the de
partment, it is recommended that the
opinion CT the attorney general be OBJ.
tanned as to whether in view of the
fact that the contract has been com.
pletely executed; that the entiro con.
sideration has passed, and that the
articles stipulated for have been de.
livered to and have become the prop.
erty of the United States, the whole
or a portion shall be made the subject
of the demand
Duty of Inspecting Officer.
"The fact that a member of congress
was an active manager of firm which
made large sales of gloves and gaunt.
lets to the contractors with the quar-
termaster's department should have
caused the officer charged with the
making of such contracts to scrutinize
their execution with a degree of dill.
gence measured by the likelihood OF
an attempted violation Of the statute;
and should also have caused him to be
on his guard for evidence of financial
weakness On the part of the principal
I'm the performance of the agreement
| The fact that it was perfectly lawful
for the bidder to make purchases OF
any firms engaged in the making OF
gloves, whatever their composition
made IT difficult for the contracting
officer to ascertain whether a corrupt
intent existed. so lCng as the terms OF
the contract were carried out in ap
parent good faith and it made it sim.
ilarly difficult to obtain information OF