The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1903-08-05
LITTAUER MAKES REPLY
TO CHARGES OF ROOT
Asserts Perfect PrOpriety''
Of Glove Contract.
OFFERS BOOKS IN EVIDENCE
First Transaction a Loss and But 10
Per Cent Profit on Sue
ceeding One.

NEW YORK. Aug. 5.-Representative
Lucius n. Littauer, of Gloversvills.
spent several hours yesterday afternoon
in conference with his lawyer, Edward
Lauterbach. at % William Street. They
prepared a reply to the memorandum of
Secretary of War Root
Mr.. Littauer, in this reply. says:
AS to the matter which has been re-
ferred to the Attorney General, am at
a loss 10 understand how any question
even of a most refined technical nature
can exist as 10 the perfect propriety and
legality of the contract of December Z,
1898. The uncontradicted evidence con-
corning this contract develops these
facts:
Mr.. Lyon was a general contractor
to the War Department, furnishing nos
only gloves, but caps. cottons. ducks,
and various other articles. There was
awarded to him a contract for 5000
muskrat fur gauntlets, which he pur-
chased from US at the price Of S1.54 a
pair. This price, we ascertained during
the process OF manufacture, was too
low, as I informed him.
Bids Too Low.
Subsequently Mr. Lyon bid, and his
bid was accepted for 10000 similar
gloves. with a privilege TO the Govern
ment Of requiring so per cent more, Of
which the Government took advantage.
After the acceptance of the bid he
called upon me to furnish him with the
goods. 1 informed him that I would
not furnish them at the price that the
5000 pairs had been furnished, We hav-
ing sustained a loss in the transac-
ton. as I had previously informed him.
During our conversation 1 took sheet
OF paper. and in my handwriting calcu-
lated the price of the goods which. with
10 per cent profit to my firm, would
was the price at which I had previously
offered to make the gauntlets.
During the discussion I reduced this
anticipated profit to 10 per cent. max
ing the price S1.75. Mr.. Lyon. who was
e furrier familiar with the material
that entered into the manufacture Of
the fur part of the gloves, insisted that
I had overestimated the number Of
skins that would enter into the produc
ton OF a dozen gloves. and subjoined to
ny memorandum in his handwriting his
estimate of the cost. which he fixed af-
ter correction of his previous figures at
S1.461z.
Would Not Acquiesce-
'T would not acQuiesce in his .sti-
mate of the cost. and he would not &C
quiesce in mine. He importuned ME.
however, not TO leave him in the lurch.
as he had already contracted to furnish
the goods to the Government at s1.65
Qt turned out that in fact he had con-
tracted for them at S1.75, although I
did not know III, and he finally bought
the goods at SI.65, but l conceded that
il II should be demonstrated after the
actual manufacture OF the goods that
they had cost me less than S1.65 his &C
count would be credited with one-haif
OF the difference between the actual
cost per pair and S1.65, at which We
had sold the goods to him.
This difference was ascertained to be
s, 537.05 and he was credited with his
rebate, which amounted to $l.763.52.
Our books give evidence In detail OF
this transaction. Mr.. Lyon was charged
for the gloves at s1.65 per pair, and his
account was subsequently credited with
the rebate refererd TO.