The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-08-04
CONGRESSMAN
MADE A PROFIT
Inquiry Into this Glove Contract
With {. r. Lyon.
FURTHER FACTS ARE WAGJED
so FAR NO CRIMINAL INTENT is
SHOWN.

CT ASHINGTON, Aug. S.-Secretary
w Root today made public all the
papers relating to the investiga-
ton into the government contracts
for gloves with E. r. Lyon. This con-
tractor secured the gloves from Liz
tauer Brothers, the senior member OF
the firm. L. NJ Littauer being a mem
Der Of congress. Secretary Root has
referred the case TO the department, Of
justice in order that il may be as
certained if the law has been violated
and if so that appropriate measures
may be taken in the premises. There
is a statute which prohibits contracts
for the government being made direct
" or indirectly with "A member OF
congress, and this was the basis II
the Investigation by the war depart
ment. Colonel Darlington OF the in
SpectOr generals department was di-
rected by Secretary Root TO make an
Investigation Of the whole matter
which he did. taking testimony and
submitting report as To the facts IN
the case. This report and the teSti-
mony were referred &c Judge Advocate
General Davis. who Made an extensive
review and submitted an opinion to
Secretary Root. In the course of his
report and opinion General Davis says:
Official Report.
1T appears from the testimony that
on oct. 70. 1898, a contract was award
ed TO Lyon for 5000 pairs OF muskrat
gloves at $I.54 per pair; on Dec. q,
1898. a second contract for 10000 pairs
was awarded TO Lyon at S1.70 per pair,
a stipulation being inserted TO the eff
feet that deliveries under il could Ut
increased 50 per cent at the discretion
IL.
government took advantage of the stip-
ulaGon and 30,061 pairs were actually
called for and delivered under the con-
tract of Dee. Z, 1898. Some discussion
having arisen as to the price whici.
Lyon was to pay for gaUntlets deliv-
cred under the contract of December Z.
an agreement was entered into be
tween Littauer Brothers and Lyon to
the effect that an accurate account o.
the cost of manufacture was to be kept.
and if, after the contract was COM
Pleted, it should prove that the cost
of manufacture did not equal $1.65 per
pair, Lyon was to receive One-half' Of
the profits. There was a profit of
1881. One-half Of which was credited
to Lyon on the books of Littauer
Brothers A case falling within the
prohibition Of the statute is clearly
shown in the testimony, which, in the
opinion of this officer, charges the de
paTtment with the performance of the
duty set forth i'm section 1898 OF the re-
vised statues: and il is therefore rec
commended that a demand be made by
the Quartermaster general upon the
firm Of Littauer Brothers for the repay
ment Of whatever SUM is found 10 have
been paid I'm consideration of the coli
tract of Dee. Z. 1898. with t. r. Lyon
as extended. in accordance with its
terms by the Quartermaster depart
Tent.
Statute Violated.
1T viii be observed that section 1888
of the revised statutes requires that
demands 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
such contract or agreement. and i'm the
case of a refusal or delay to repay
the same the statute goes on TO re-
quire that "A suit shall be instituted
for the recovery of any such sum OF
money so advanced. thus making an
important distinction between those
portions OF the consideration which are
advanced and those which retain their
executor character
Having regard to the highly venaI
character OF the statute above citeu.
which requires &c to receive strict
I, construction AT the hands of the de-
partment, it is recommended that tn
opinion of the attorney general be OBJ
timed as TO whether. in view of the
fact that the contract has been COM
pletely executed. tat the entire con
SlderatiOn has passed and that the
articles stipulated for have been deiiv-
cred TO and have become the property
of the United States. the whole or q
portion Of the consideration shall be
made part of the demand.
Made No Investigation.
The fact that a member Of congress
was member OF a firm which made
large sales of gloves and gauutlets to
contractors to the quartermas ter's de-
partment should have caused the Off
Ger charged with the making of such
contracts to scrutinize their execution
with Il degree of diligence measured by
the likelihood OF an attempted violation
of the statute and should also have
caused him to be on his guard Tor evil
oence of financial weakness ON tho part
of the principal in the performElce of
the agreement. The fact that Il was
perfectly lawful FOR the bidder 10 MAKE
purchases Of any firms engaged in the
making OF gloves. whatever their com
position, made il difficult for the con-
tracing officer TO ascertain whether a.
corrupt intent existed. so long as the
]
in apparent good faith; and il made il
similarly difficult 10 obtain Information
of positive character in respect to
the execution of a particular contract
that would justify fOrma, inquiry u
was the first duty OF an officer charged
with making purchases IL behalf of the
/ United States 10 see that the articles
procured We're OF standard quality and
that the prices paid were reasonable.
The testimony elected during the
course of the investigation showing the
prices paid and the profits realized. and
the numerous reflections OF goods which
! fol- short Of the standards established
by the department shows that this
duty was thoroughly and conscien-
/ tiously performed"
Missing Evidence.
! General Davis recommends that the
/ testimony of two witnesses who could
not be found by Inspector Darlington
( is rather important and that the inves-
tigation be continued with a view of
getting their testimony. When taken.
he says, st can be referred 10 the de-
| partment of justice with the other pa
pers in the case.
Secretary Root makes the following
] Endorsement on the opinion Of the
judge advocate general. which sends
! the case to the department Of Justice.
Il suppose there is no doubt that a
manufacturing firm. one member OF
which happens to be u member of con-
gress. has a right to manufacture and
| sell goods TO jobbers Who are filing
| government contracts and that thev
| do not come within the prohibition ~
the statue so long as the CONTRACT De-.
| tween the firm and the jObher is q SEN