The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-08-04
DEAL LAID BARE.
Secretary Root Makes Public
Facts About That Glove Deal.

Washington, Aug 4.-Secretary Root
has made public all the papers relating
to the investigation into the government
contract for gloves with E. r. Lyon.
This contractor secured the gloves from
1ittauer Brothers, the senior member of
the firm, L. N. Littauer, being member
of congress- Secretary Root has refer
red the case to the department of JUS
t1ce in order that it may be ascerIained
If the law has been violated and If so
that appropriate measures may be taken
In the premises. There is statute
which prohibits contracts for the gov
eminent being made directly or indirect
ly with member of congress and this
was the basis of the investigation by the
war department. Colonel Darlington OF
the inspector generals department was
directed. by Secretary Root to make an
investigation of the whole matter, which
he did, taking testimony and submitting
a report as to the facts in the case. This
report and the testimony were referred
to Judge Advocate General Davis, who
made an extensive review and submit
ted an opinion to Secretary Root. In
the course of his report and opinion
General Davis says:
1T appears from the testimony that
on October Is, 1885, contract was
awarded to Lyon for 5000 pairs of
muskrat gloves at $1.54 , er pair; on De-
cember 7, 1898. a secchd contract for
10000 pairs was awarded to Lyon at
$40 per pair, stipulation being in
serted to the effect that the deliveries
under it could be increased so per cent
at the discretion of the officials making
the contract. The government took adj
vantage of the stipulation and 30,061
pairs were actually called for and de-
livered under the contract of December
Z, 1898. Some discussion having arisen
as to the price which Lyons was to pay
for gauntlets delivered under the con-
tract of December Z, an agreement was
entered into between Littauer Brothers
and Lyon to the effect that an accurate
account of the cost of the manufacture
was to be kept and if, after the con-
tract was completed. it should prove
that the cost did not equal $1.65 per
pair, Lyon was to receive one-half of
the profits. There was a profit of 49,,
537, one-half of which was credited to
Lyon on the books of Iittauer Broth
ers. 1t is recommended a demand be
made by the quartermaster general
upon the firm of Littauer rothers for
the repayment of whatever sum is found
to have been paid in consideration of
the contract of December, 1898, with z.
r. Lyon as extended, in accordance with
it's terms by the quartermaster's de-
partment.
1t will be observed that section 3739
of the revised statutes requires that de-
mandS shall be made for the repay
ment of any sums of money which may
have been advanced on the part of the
United States in consideration of any
contract or agreement. and in 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 making inpor-
tant distinction between those portions
of the consideration which are ad-
vanced and those which retain their
executory character.
Having regard to the highly penal
character of the statute above cited,
which requires it to receive a strict
construction at the hands of the de-
partment. it is recommended that the
opinion of the attorney general be OBJ
tanned as to whether in view of the
fact the contract has been completely
executed, that the entire considerations
has passed, and that the articles stip-
ulated for have been delivered to and
have become the property of the United
States the whole or a part of the con-
sideration shall be made the subject
of the demand.
The fact that a member of congress
was an active member of a firm which
made large sales of gloves and gaunt-
| let's to contractors with the quarter
masters 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 have caused him to be on his
guard for evidence of financial weak
ness on the part of the principal in the
| performance of the agreement.
! The fact that it was perfectly lawful
/ for bidders to make purchases of any
4 firms engaged in the making of gloves,
whatever their composition, made it
difficult for the contracting officer to
/ ascertain whether a corrupt intent ex~
listed, so long as the terms of the con-
/ tract were carried out in apparent good
faith; and it made it similarly difficult
to obtain information of a positive
character in respect to the execution OF
a particular contract that would justify
I 81 r.
of an officer charged with making pur-
| chases in behalf of the United States
to see that the articles procured were
of standard quality and that the prices
paid were reasonable. The testimony
ELECTED during the course of the inves-
LEGATION shows the prices paid and the
profits realized, and the numerous re-
| jections of goods which fell short of
the standards established by the de-
partment shows that this duty was
thoroughly and conscientiously per-
formed.
Secretary Root makes the following
Endorsement on the opinion of the judge
advocate general which sends the case
to the department of justice:
| 4 suppose there is no doubt that a
manufacturing firm, one number Of
| which happens to be a member of con-
gress, has a right to manufacture and
sell goods to jobbers who are filling gov
eminent contract and that they do not
| come within the prohibition of statute
so long as the contract between the firm
and the jobber is a separate and distinct
transa ction from the contract between
the jobber and the government. There
appears to be no evidence that in the
manufacture of gloves by the Messrs
Littauer Brothers to be used in filling
government contracts made by Lyon
and others, there was any violation OF
the statute except in one case. the con-
tract of December Z, 1898. 1t is not the
duty or the right of the secretary OF
war to adjudicate that case or to deter
mine whether it was violated insofar it
may be necessary for him to decide
what action II any should be taken by
the war department in view of the facts
disclosed. I think the indications of an
interest by the manufacturing firm in
the jobber's contract with the govern