The Montgomery advertiser., 1903-07-15
THE BID OF PAUL HERMAN
 -$- Now Ber.s Carefully Look
 ed Into. H6 7 WILL HE PROFITl Pertinent Questions for MT. Payne to Answer. Intimated That the Safety" Paper to Be Used in ths Contract will
 Yield Some Good
 Returns.
I6 y WILL HE PRoFIT1

Washington, July M-(special. .)-Why should the Postoffice Department pay Paul Herman. the lowest bidder for the printing of the money order blanks for the coming four years. from $s5.o0 to $5O, 900 for distributing the books when the work can be done in the Postoffice De- partmeHt?
 And, why should the Postofice Depart ment pay s50,OOo additional for safety" paper especially in view of the charge that the difference between the market price of the quantity of safety" paper which is proposed shall be used and the price of the bond paper which has heretofore been used is only $2s.o00?
 These are some of the perplexing Ques- tions in connection with the letting of the new contract for the printing of money order blanks which Postmaster General Payne has passed over to his subordinate officials to investigate during his absence from the city.
 Payne Wide Awake.
 On his return Mir. Payne proposes to take up the matter personally. for he has positively declared that no such contract shall be let until he Is satisfied there is no loop-hole for fraud.
 The contract for the printing of money order blanks is the first of any size to be let since the scandalous revelations in connection with previous contracts, and Mir. Payne wishes to place the depart ment on record as positively declining to execute any contract which can In the future be subject to question.
 When Paul Herman of New York sub . .vv.ttk kaA fnta contract if was known that he was without financial resources of his own and dependent on his daily labor for a living. Consequent ly, other reliable reports were given the department by practical printers that at the figures which Herman quoted he could not make penny's profit, as they cover- ed merely the cost of the labor and paper, etc.
 The department sleuths wanted to know how MT. Herman expected to make his living during the next four years and they were inclined to question the expla- nation advanced that he was playing the part of philanthropist toward the Post office Department to revenge himself upon the present contractors whose employ he had recently left because of a disagree ment.
 Where is the Money.
 They were also interested in learning who would advance Herman the money to establish his plant and carry on his business in view of the fact that there could be no profit in the mere printing of the blanks.
 It is believed that the first solution of the question as to how Herman ex- pected to make his profit has been found in the little ''joker' contained in the specified tions by which the department of It's own volition proposes to pay him three and one-haR cents per book on from one million to one and a half million books for distributing" them. It appears that the present contractors are receiving about $10,0O0 a year for this work which is costing them about $2,500 and MT. Payne Is desirous of ascertaining if it is not pos stble for the department to save the difference which amounts to T,500 per an- mum, instead of handing 1t over to Her man.
 Mir. Payne has also had presented to him an idea which may develop where Herman's packer expects to make his profit. Up to the present time the Post ofice Department has used the ordinary bond" paper. It is now proposed to substitute a so-called safety" paper, for which the Postoffice Department Is to pay from S5O.oOO to s60oOO more than it would for the. bond" paper during the coming years.
 It so happens that while bond paper is made by many mills, the standard safety paper is the product of only one manufacturer and there are many reports to the effect that he is back of Herman in this contract. Should the investigation by the departmen show this to be the case, 1t will then appear that Herman's packer hopes to make his profit, first by reason of his ordinary commercial profit on the sale of S175.0OO worth of paper and then on the $25.0O0 paid him for the use of his safety paper, and finally to secure a $25, 600 bonus in addition, this being the difference be- tween the market price of the safety" paper and its cost to the department.
 R, H, Watkins