Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-05-20
A COAL DECISION
WHERE A CONTRACTOR FAILED
TO DELIVER DURING STRIKE.
Controller Decides He Must Pay the
Difference in Price for That Fur
chased in Open Market.

Accord;pp tn a decision rendered to the
Secretary of the Navy by the controiier OF
the Treasury, contractors who engaged u
supply the government with coal ourlhs
the present fiscal year and failed to make
good their contracts during the coal strike
are liable for the difference the govern
ment had to pay to secure coal and the
amount contracted for. Whether this decis-
ion will affect the cases of the Washington
coal dealers who had contracts with tho
departments and in many instances falled
to meet them is not known. At the Treas
ury Department today it was stated that
no action had yet been taken to proceed
against the bondsmen of the coal contrac-
tors whose contracts for furnishing coal
to the Treasury Department at certain
prices were not made good last winter
during the coal famine. The contracts TOT
the present fiscal year, made nearly year
ago, contained a provision that In case OF
strikes riots, etc, and other unusual
causes, it was within the discretion of the
Secretary of the Treasury to refrain from
literally enforcing the contract. 1t Is under
stood to be likely that Secretary Shaw,
under this provision, will exercise MS dlS-
cretion and not proceed against coal deal
ers who had contracts with the Depart
ment. The treasury was one or the depart
ments that was forced to secure coal out
side Under the controllers decision the
contractors would be compelled to pay the
government the difference between the con-
tract and the sum paid for the coai.
The Case in Point.
The decision of the controller was made
upon the request of Colonel F. N. Denny.
uuartermaster of the Marine Corps, who
asked. through the Secretary of the Navy,
decision of the question whether the
government can properly pay for coal pur-
chased by the commanding marine OFFICER
at the navy yard. New York and charge
the same to the account of the contractor
In his decision the controller says: The
contract referred to was made by Quarter
master Denny on behalf of the United
States and provides that the contractor
should supply and deliver specified guam
tity of coal at stipulated price per ton
at the marine barracks, navy yard, New
York from the 1st day Of July, 1SO2, to
the Both day Of June, 1903
From the papers transmitted 1t appears
that the coal was required for daily use;
that prior to about September ID, 1902, the
contractor furnished coal from time to time
to meet such requirements; but that on this
date, owing to the scarcity Of coal by rea-
son of the then existing strike of the an
thracite coal miners, he failed to supply
the coal then required, which was pur-
chased in open market at a higher price
The commanding officer of the post. who
made the purchase. states that he waited
until the last moment and to about the last
wheelbarrowful of coal before he bought
the coal in the open market.
II think 1t is clear therefore, that upon
the failure of the contractor to supply coal
in accordance with the terms of his con-
tract the United States had the right to
purchase the coal in open market by means
of any agent authorized to act for 1t in
such an emergency, and to charge the addi-
tional cost of the coal to the contractor. So
far as this contractor is concerned, 1t is
immaterial whether the commanding officer
had specific authority to make the purchase
or not: the purchase when consummated
was valid, and 1t is no concern of the con-
tractor what means the government took to
effect the purchase"