Evening journal., 1903-08-05
.LITTAUER GIVES
HIS OWN VERSION
Congressman Surprised at
Decision of the Secretary in
Glove Contract Case
STATUTES WERE NOT VIOLATED


New York. Aug. 5.-Congressman
Littauer has made the following state
ment:
"I am of course surprised and disap-
pointed at the decision Of the secre-
tary Of war that there may exist even
a prima facie case of violation OF stat
ute The decision only creates an in
quiry as TO whether q technical viola
tion Of law has been committed, and
removes from the case entir2ly any
suggestion Of dishonesty or dishonor-
able action on Ey part and of any
improper use of M inAuence as a con-
gresham in regard to any glove con-
tracts.
Il can ask no more sweeping and
complete Yindication Of my honor and
business integrity than the final find
ings of the secretary.
CAS- to the matter which has been
referred TO the attorney general l am
at loss to understand how any ques-
tion. even of a most refined technical
nature, can exist as to the perfect pro-
priety and legality Of the contract of
December Z. 1898. The uncontradicted
evidence concerning this contract de-
velops these facts: Mr.. Lyon was a gen.
eral contractor to the war department,
furnishing not only gloves. but caps,
cottons. ducks. and various other ar
10 fieles. There was awarded to him a
contract for 5000 muskrat fur gaunt-
, lets. (which he purchased from us at a
price of S1.54 per pair. This price, we
-ascertained during the process Of man
ufacture, was too low, as | informed
him.
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,
which the government took advantage
Of. / informed him that / would not
furnish them at the price that the 1000
pairs had been furnished we having
sustained a loss in the transaction.
During our conversation l took a sheet
of paper and in my handwriting calcu
lated the price Of the goods, which
with a Is per cent. profit to my firm
would have amounted to SlSl per pair
which was the price at which / he'd
previously offered to make the gaunt-
lets. During the discussion l reduced
this anticipated profit to 10 per cent.
making the price S1.73.
"Mr. Lyon insisted that l had over
estimated the number of skins that
would enter into the production of q
dozen gloves, and subjOined to ny
memorandum in his handwriting his
estimate Of the cost. which he tixes
after correction of his previous figure:
at s1.461s. l would not acquiesce l.
his estimate of the cost, and he woul,
not acquiesce in mine. He importuneC
me. however. not to leave him in the
lurch. as he had already contracted
to furnish the goods to the government
at s1.65. ct turned out that in fact hi
had contracted for them at S1.7O, al
though 1 did not know it, He tinall,
bought the goods at s1.65, but con
ceded that if 1t should be demonstrates
after the actual manufacture of tn
goods that they had cost me less thai
s1.65. his account would be credite'
with one-half Of the difference betweei
the actual cost per pair and $l65, a
which we had sold the goods to him
This difference was ascertained to b
sS537.O5. and he was credited with tni
rebate, which amounted to Sl16S.oz."