The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1903-06-04
KNOX OPINION ON
MACHEN CONTRACTS
Postmaster General Payne Publishes Letter Writ
ten January IS.
ten January IS.

Postmaster General Payne gave out
yesterday afternoon the following as the
opinion of the Attorney General concern
ing the Machen coal contracts:
Department of Justice.
Washington, d. c., January Is, 1908.
The Hon. the Postmaster General.
Sir: l have the honor to acknowledge
the receipt of your letter of the Sth
instant, in which you ask my opinion
as to whether you can award a con-
tract for the purchase of coal, for the
use of your department, under the fol-
lowing circumstances:
On December 80, 1902, sealed proposals
were invited for furnishing the Post
Office Department with bituminous coal
for the remainder of the fiscal year end
ing June 80, 1908. An advertisement
was placed therefor in three Washing
ton papers, and a typewriter copy
thereof was sent to about twenty-five
coal dealers. Four bids were submitted
that of Machen Bros. who propose to
furnish 1000 tons (the amount prob
ably needed by the department for the
balance of the present fiscal year, for
$5.75 which is $3.50 per ton cheaper
I, than the next lowest bid. You state
| that the proposal is properly executed,
land that no question has arisen in this
respect. The fact is presented, however.
that the firm of Machen Bros. is COM
posed of William A Machen and August
W Machen. the latter being superin-
1 Of dali tn h.a fnf 7na
| Department.
Statutes Involved.
The question thus submitted involves
construction of the following sections
of the Revised Statutes:
Sec. 412. No person employed in the
Postoffice Department shall become in
terested in any contract for carrying the
mail, or act as agent, with or without
| compensation. for any contractor or
person offering to become a contractor,
| in any business before the department;
and any person SO offending shall be i'm
mediately dismissed from office and shall
| be liable 70 pay so much money as would
have been realized from said contract,
to be recovered in an action of debt, for
/
Sec. 1888. No officer or agent of any
banking or other commercial corpora
| ton, and no member of any mercantile
or trading firm or person directly or in
directly interested in the pecuniary
profits or contracts of such corporation
| or firm, shall be employed or shall act
as an officer or agent of the United
| States for the transaction of business
with such corporation or firm; and every
such officer, agent, or member, or per-
son, so interested, who so acts, shall be
| imprisoned not more than two years,
and fined not more than $4,000. nor less
! than $500"
s4f7 Was Not Forbidden.
| In my judgment, section 412 does not
forbid you from awarding the contract
/ to the firm of Machen Bros. If the con-
| tract was one for carrying the MALI
| It would clearly be within the general
prohibition which forbids any employe
| of the Postoffice Department from hav-
| ing any interest in such contract. Con-
gress did not see fit, however. to apply
such general prohibition TO every kind
! of contract. but limited its inhibition
! TO the special kind of contract above
referred TO. It did, however. prohibit
any employe from acting "as agent. with
or without compensation, for any con-
tractor, or person offering TO become a
contractor. in any business before the
department"
The statute is in derogation of com
| mon right, and is Quasi-penal in char
acter. 1t provides for the immediate
dismissal OF any PostofIice employee who
does act as such agent, and subjects him
to heavy liability 1t must, therefore,
be strictly construed. Under such con-
structlon, partner cannot be held to