New-York tribune., 1903-06-04
NACHEN'S COAL CONTRACT
HELD NOT TO BE ILLEGAL.
attorney General Knor's Opinion
Rendered to Mr. Paine.

Washington. June 3.-Postnaster General Payne
to-day made public the decision Of Attorney Cen
eral Knox which Mr.. Payne based his award Of
the coal contract Of the department to Machen
Brothers, Of this city. of which firm August w
Machen, then general superintendent Of the free
delivery service. is a member. The award was
made to that firm the lowest bidder IN the coal
famine last winter, and newspaper publications at
the time charged that the award to firm Of which
department official member violation
Of law. The decision is dated January L. The At
torney General says:
The Postmaster General
OF your letter of the Sth inst. in which you ask
tract for the purchase Of coal for the use Of your
department under the following circumstances:
yi[sd for furnishing he Postof5ce Department with
therefore in three Washington papers, and q type
a~- {s 1 blqS e N5 IN Pgoters
Who 2opns 5e f ] o I tos 0I 5sbe nonf ZOE
ably needed by the department for the balance OF
ton ehesper 96S the next zf lowest I @ bd You STATE
that the proposal is properly EXECUTED P and tnst no
REessnJed h0wegeT thar @ & the nrm Of Mache5 5
August W Mache6 the latter beins superintendent
Of free delivery in the Postof9ce Department
ton OF the following sections Of the revised
section H2-No person employed in the Post
office Department shall become interested in any
with without compensation. for any contractor
person Offering q contractor, in
business before the department. and any person
SO offending shall be mme diately dismissed from
as would have been realized from said contract,
10 be recovered II an action of debt for tie use
Section L7S3-No officer or agent Of any bank
beT oe snv roercsn+iIe or t-ading frm or person
directly indirectly interested in the pecunIary
profits or contracts Of such corporation or frrl,
shall De employfd or shall act as an olGer ti OF OF
such officer, agent or member, or person, SO IN
than two years: and fined not more than Szo"
In my judgment Section 412 does not forbid you
from awarding the contract TO the firm Of Machen
te a # vdg5 I5e r5eariy be within the general
prohibition which @orbds any employe Of the Post
z contract. Congress did not see nj, however 70
contract bur limited its Inhibition to the speclaI
kind OF contract above referred to- It did. how
with or without compensation, for any contractor
or person Offering to become contractor In any
The statute is in derogation of the common right.
and is quas-penaI in Character. It provides for
the immediate dismissal OF any postofice employe
who does act as such agent. and suojects MIN 70 q
construed. Under such construction partner can
az least in making joint BID for a contraGS; TI;+e
act Is essentially the act Of principals. Witnont
agent within the meaning Of the act Of Con
gress for the firm of which ne is memper IN tn
partner as principas in a bid for a contract does
not make him such agent" and Section AZ does
not apply.
Referring TO r. S. 17Ss, you do not state in your
letter the exact nature of Nj Machen's duties, ex
cept that ne IS general superintendent Of the free
delivery system. I assume for the purposes Of this
opinion, that he has official relation with the
and # this be the fact Section I78 is nappcabe'
for Mr.. Machen such superintendent does not
act an officer or agen. OF the United States
with reference TO such purchase of coal
The general question to the right OF executive
officers TO contract az principals with the govern
ment was discussed by Attorney General Williams
ferring to Sections 781 and 17S2 he says: But
there is rot in the statutes any general prohinl-
tracing directly with the government. as prin-
cipals. in matters entirely separate from their
formance Of their duties officers Of the govern
ment: are they forbidden 10 be connected with
such contracts after they are procured. by ac-
quiTing an interest IN them And here there Is
marked difference made the legislation OF Con-
gress between the members of the body and the
come under the prohibition Of laws above cited.
But in the 1865 (two Statutes, 49, Rev.
Statutes. S3e which strictly prohibits ali interest
in and all connection principals with government
contracts. members Of Congress and delegates only
are mentioned as coming within the intention"
been the purpose Of Congress to prohibit executive
nected with government contracts, nor, except
fbero TLere ,e NOT in 4I1a E+a+I1+es snv sIIch nrn
hibtion applying TO United States pension agents.
While 7 am, for the stated. Of the opinion
that YOU not forbidden by any statute from
lowest bidder, I must not be understood advfs-
ing YOU that you under any legal obligation
award a contract Of this character TO the lowest
bidder. Ire acceptance Of any bid is a matter of
are at liberty. for any reason that in your judg-
raenr is the public interest to disregard any bid.
The r~stter Is one OF e1r1instratve Judgment and
thoritv or obligation 70 EXPRESS anv opinion with
reference TO IL Respectfully. P. e KNOX.
Attorney General.