The Montgomery advertiser., 1903-08-04
GS ARE MADE PUBLIC
Department of Justice is Ask
 ed to Act.
Secretary Root Says So Far Moth ing Has Developed to Show culpability on Part of
 Army oaicers.

l Washington. Aug. 3.-Secretary Root made public today all the papers relating to the investigation into the contract for &gloves with E. R. Lyon. this contractor secured from Littauer Brothers. the se- nior member of the firm, l.. N Littauer being a member of Congress.
 1 Secretary Root has referred the case ! to the Department of Justice in order that | it may be ascertained if the law has been violated and that appropriate measures may be taken. There is a statute which prohibits con tracts for the Government being made al. rectly or indirectly with member or Congress and this was the basis of the iri- vestigation by the War Department. Col onel Darlington, of the Inspector Gener- als' Department, was directted by Secre- tary Root to make an investigation Of the whole matter. This was done and his re- port referred to Judge Advocate General Davis, who made an exhaustive review, and submitted an opinion to Secretary Root. In the course of his report and opinion, General Davis says:
 | The Contracts.
 1 s'It appears from the testimony that a contract was awarded to Lyon for SUOO pairs of muskrat gloves at H. 50 per pair Later a second contract for 20,OOo pairs was awarded to Lyon at N, per pair; stipulation being inserted that deliveries under 1t could be increased 50 per cent, at the discretion of the officer making the contract. The Government took advant-' age of the stipulations and G,OO0 were cali- ed for and delivered under the last con tract.
 Some discussion having arisen as to the price which Lyon was to pay Tor gauntlets, an agreement was entered into between Littauer Brothers and Lyon to the effect that an immediate account Of | the cost of the manufacturer was to De kept and if, after the contract was com pleted, 1t should prove that the cost or manufacture should not equal N.6S per pair. Lyon was to receive one-han of the | profits. There was a profit of 8.6S7. one half of which was credited to Lyon on the books of the Littauer Brothers.
 l "A case falling within the provision Of | the statute is clearly shown in the testi- mony which in the opinion of this omcer : charges the Department with the per formance of the duty set forth In Section 3,739, of the revised statutes: and it IS therefore recommended that demand | be made by the Quartermaster General upon the firm of Littaner Brothers TOT the repayment of whatever sum Is found to have been paid in consideration of the l contract with F. R. Lyon by the guar 1 termaster's Department.
 Advice of Attorney General.
 Having regard to the high penalties of | the statues above cited, which requires | 1t to receive a strict construction at the hands of the Department, 1t Is recom- | mended that the opinion or the Attorney General be obtained as to whether, Tn view of the fact that the contract has been completed, that the entire consider l ation has passed and that the articles stipulated for having been delivered to, and have become the property of the United States the whole or part or the consideration shall be made the subject l of the demand.
 'sThe fact that a member of the Con- gress was an officer of the firm wnieh made the sales of gloves and gauntlets to contract with the Quartermaster's De- partment should have caused the onicer charged with the making of contracts 10 stcrutinize their execution with degree measured by the likelihood of violation of the statutes and should also have caused him to be on his guard for evil dence of financial weakness. on the part | of the principal of the agreement.
 ''The fact that it was perfectly laWfui for the bidder to make purchases Of any firm engaged in the making of gloves. | whatever their composition, made It oif- fcult for the contracting officer to ascer- tain whether corrupt intent existeo' so long as the terms of the contracts were 4 carried out in apparent good faith; and 1t l made it similarly difficult to obtain intor- l nation of a positive character In respect to inc execution of a particular contract that would justify a formal inquiry.
 Duty of the Officer.
 "It was the duty of an officer charged with making purchases in behalf or the | Tinted States to see that the articles pro- cured were of standard quality, and that the prices paid were reasonable. The testimony elicited during tho course or the investigation showing the prices paid, the profits realized, and the numerous reJec- tions of goods which fell short Of the standards established by the department, shows that ttts duty was thoroughly and conscientiously performed.
 | Secretary Root makes the following statement on the opinion of Judge AdVo- cate General, which sends the case to the Department of Justice:
 s'I suppose there Is no doubt that manufacturing company member Of | which happens to be member of Con- gress has a right to manufacture and sell goods to parties who are willing to give contracts and that they do not come within the prohibition of the statutes so long as the contract between the hrm ] and the jobber is a separate and distinct | transaction from the contract between the jobber and the government There appears to be no evidence that in the manufacturer of gloves by the Littauer
 Brothers to be used in filling government
 contracts made by Lyon and others there
 was any violation Of the statute, except
 in the contract of December 2, 1898 the
 last contract.)
 "It is not the duty or the right of the
 Secretary of War to adjudicate that case
 ar to determine whether the statute was
 violated, except in so far as 1t may be
 necessary for him to decide what action.
 if any. should be taken by the War De-
 partment. in view of the facts discolsed.
 The Statute Violated.
 ''I think that the indications of an in-
 terest by the manufacturing firm in the
 iobber's contract with the government are
 sufficient to require me to proceed upon
 the theory that there is a prima facie
 case of violation of the statute. These duties are thereupon devolved upon the War Department,
 ''FIrst-To put the Department Of
 Justice in possession oe the facts in order