The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1903-08-10
KNOX ASKED TO MAKE
DECISION,
Root in Doubt AS To the Violation
of Law by Littauer and There
fore the Opinion Of the At
torney General Has
Been Requested.

Washington, August 3.-Secretary Root
today made public all the papers relating
to the investigation into the government
contract for gloves with e. r. Lyon. This
contractor secured the gloves from Lit
tauer Bros, the senior member OF the
firm, l.. N. Littauer, being member OF
congress- Secretary Root has referred
the case to the department OF Justlce
In order that it may be ascertained IL the
law has been violated and that approprl-
ate measures may be taken in the prem
Uses. There is a statute c.lich prohibits
contracts for the government being maze
directly or indirectly with member OF
congress- and this was the basis OIL the
investigation by the war department.
Colonel Darlington, of the inspector gen
erals department, was directed by Secre-
tary Root to make an investigation OF the
whole matter This was done and his
report referred to Judge Advocate Gen.
eral Davis, who made an exhaustive re-
view and submitted an opinion TO Secre-
tary Root
Littauer and the Contract.
In the course of his report and opinion,
General Davis says:
at appears from the testimony that
a contract was awarded to Lyon for 5000
pairs of muskrat gloves at $l,50 per pair.
Later second contract for 2OOVo pairs
was awarded to Lyon al 81. 10 per pair,
stimulation being inserted that deliveries
under it could be increased 90 per cent, at
the discretion of the officer making the
contract. The government took aoVan-
tage of the stipulations of 30,6ol PAIRS
were actually called for, and delivered
under the last contract Some discus
sion having arisen as to the price Whlch
Lyon was TO pay for gauntlets an agree
ment was entered into between Littauer
Bros and Lyon to the effect that an &C
curate account of the cost of manufacture
was to be kept, and if, after the contract
was completed. it should prove that the
cost of manufacture should not equal $l6o
per pair Lyon was to receive one-half
of the profits There was q profit OF
1851 one-half of which was credited TO
Lyon on the books of ittauer Bros.
case falling within the provision of the
statute is clearly shown in the testimony,
which in the opinion of this officer
charges the department with the per
Torrance of the duty set forth In section
3733 of the revised statutes; ana 1t IS
therefore recommended that demand
be made by the quartermaster general
upon the firm Of Littauer Bros. for the
repayment of whatever sum is found to
have been paid in consideration OF the
contract winth f. r. Lyon az extended,
in accordance with its terms, by the quar-
termasters department.
Having regard to the high penalties Of
the statutes above cited, which requires
it to receive a strict construction at the
hands of the department, it is recon-
mended that the opinion Of the attorney
general be Obtained as to whether, in
view of the fact that the contract has
been completely executed that the entire
consideration has passed and that the ar
ticles stipulated for have been delivered
Nnr-trv ne hn
United States, the whole or portion OF
the consideration shall be made the SUP
ject of the demand.
THE fact that a member of the con-
gress was an active officer OF the firm
which made large sales of gloves and
gauntlets to contractors with the quarter
masters department, should have caused
the officer in charge with the making OF
such contracts to Scrutinize their eXecu-
ton with degree of diligence, measured
by the likelihood of an attempted viola
ton of the statute and should also nave
caused him to be on his guard for evil
dence of financial weakness on the part
OF the principal In the performance of the
agreement. The fact that it WAS perfectly
lawful for the bidder to make purchases
of any firm engaged in the making of
gloves whatever their composition, made
it difficult for the contracting officer to
ascertain whether a corrupt intent exist
ed, so long as the terms OF the contracts
were carried out in apparent good faith;
and it made it similarly difficult TO OBJ
tain information of a positive character
in respect to the execution Of a particu-
lar contract that would justify a formal
inquiry 1t was the first duty of an Of
ficer charged with making purchases in
behalf of the United States TO see that
the articles procured were of standard
quality and that the prices paid Were rea-
sonable. The testimony elected during
the course of the investigation showing
the prices paid, the profits realized and
the numerous reflections of goods which
fell short OF the standards established by
the department shows that this duty was
thoroughly and conscientiously per-
formed"