New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-07-02
HERMAN GETS CONTRACT.
Postmaster General Payne'S Decision
on Money Order Printing.
TrRoN THE TRIBUNE BUREAU


Washington, July 1.-The Postmaster General
to-day issued order for the awarding OF the
money order printing contract TO Paul Herman.
of Rutherford, N. J.. as Herman files
the $4,000 bond called for by the department
The award to Herman based on an Opin-
ion by Assistant Attorney General Robo hold
ing that Herman's bid was made in good faith,
that he has substantially complied with every
condition prescribed in the specifications. and
that to disregard the bid on the objections
raised would be against both reason and sound
public policy Mr. Robb held that Hermans
bid is in regular FORM and that Herman is eX-
ceptionay qualified so far as mechanical aoil-
ity is concerned, to execute the contract" After
citing Herman's financial responsibility, Mr..
Robb said the contention that the law con-
templates that bidder "at the time Of the bid
shall be competent. with reasonable plant and
capital, to perform the contract" would stife
competition and defeat the spirit and letter OF
the law The specifications. he added, do not
contemplate that the bidder should be already
equipped with the plant. Congress. he holds.
obviously intended that the contract should be
awarded to the lowest bidder unless there were
good and sufficient reasons for disregard1ng his
bid The Wynkoop-Ha beck era wford Com
pany by to-day's award loses the contract,
which 1t has held for sixteen years.
Postmaster General Payne to-day gave hear
ing to a delegation from the Typothetse of Amer
lea, who protested against giving the contract to
Paul Herman. John H Eggers and Colonel ID.
w. Sackett, or New York, ana wilson H. Lee,
of New-Haven, Conn, urged that letting the
contract to Herman would violate the statute
forbidding the letting of sub-contracts; tnat ne
could not do the work and that IL was contrary
to business methods to gain a firms secrets and
then become a competitor.
Herman, who was heard later in the day. fur
nished an affidavit that he had been employed by
the present contractors nearly ten years. and
had no idea Of competing with them when he
left their employ, which, he said, was before the
specifications were taken up. He searched Tor
work and says that he concluded he had been
practically blacklisted in the trade, and there
upon decided to start for himself on financial
backing offered by an intimate friend. He SUD
mitted other evidence to show that he was not
a straw bidder, alleged, and Swore that
he had not directly or indirectly, assigned any
interest whatever in the contract He testined
that the firm which objected to his securing
the contract offered to re-employ him. after the
bids had been opened. at an increased salary
provided he would withdraw his bid, which oTfer
he rejected Mr. Hallenbeck, Herman SAID OF
fered him. If he would withdraw his bid, $50 a
week and a large part Of % per cent of the net
profits of his business, which he would guar
antee to be at least $1,000 year. in addition to
his salary He said Mr.. Tooker, of the Metro
poltan Printing Company, offered to pay him
$1,000 If he would agree to execute the contract
in that establishment and let them share in the
contract, and to make contract for five years
TO pay him 500 week salary. These PROPOSE
lions he rejected.
Mr. Herman was the lowest Of fourteen bid
ders and the award Of the contract, which in
wolves the payment OF between S3OOOOO and
$3.50 900 in the next fiscal year. will erect IL is
said at the department. a saving OF nearly
$4,000 IN the four years contract. Supertn-
tendent Metcalf of the Money Order Bureau
was dismissed some days ago on the charge OF
indiscretion in seeking the withdrawal of Her
man as a bidder in favor Of the present con-
tractors.