Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-12-29
LAWS GOVERNING CONTRACTS
GIVE AUTHORITIES MUCH
LEEWAY.
CAN MAKE OR BREAK ANY
CONTRACTOR EMPLOYED
Can Cancel Agreements At Will and
Leave Successful Bidder With Thou
sands Of Dollars Of Worthless Sup.
plies on Hand-SsvsraI Cases in
Point.
Especial Correspondence

ment to break any contractor with
whom it has a contract involving the
carrying of the mails 1t is generally
said among contractors that the gov
eminent is the meanest customer in the
country with which to do business. but
! this saying is ten times emphasized
with respect to the postoffice depart
men1.
/! The conditions there are not peculiar
! to the present administration, for the
rule under which the department OPP
crates has existed for a great many
! years
| The story is both old and new. It is
/ cid because the postoffice department
/ has practiced its holdups upon contrac-
tors for a great many years; and II Is
new because the public at large has
! little or no knowledge Of the enor-
/ nous power which the postoffice Off
Gals can exert with utter irresponsi
/ bility over contractors il they choose
! to exert it. Whether or not this power
/ approaches the scandalous is not for
! the layman to say but that 1t Is extra
ordinary and contrary to all the rules
and ethics Of fair dealing in business
/ life can not be disputed.
/ Can Cancel at Will.
! Of the department to cancel at its own
will any contract into which II may
have entered with any individual or
corporation having to do with any in
istrumentality with respect to the
I carrying of the mails. and this with no
possibility Of redress for the injured
! contractor except that he is allowed
! one months extra compensation. in the
{ case Of a continuing contract. The
! government could cancel all its con-
tracts for team service. leaving the
/ contractors helpless with their teams
and equipment on their hands. 1t could
order a railroad company to put on
limited train to carry the mails and
discontinue the service at the end of
! a week It could discontinue its collec-
tions by team and substitute street
cars and then. after the street railway
companies had been to the expense OF
fitting up special cars for the service
the government could return to the
teams and leave the companies to
pocket their losses as best they could
Nor does the department hesitate to
exercise its power. The story Is toiu
Of concern which contracted to sup
ply the department with lot OF spec
cial twine The specifications called
LOT t"1ne Oh elSHtVCii 81 SAAt9 49,
altho the actual strength necessary
was only fifteen The contractors
made up the twine and on test much
Of it was found to be above IS. nearly
all OF IL tested at 10 or above and
few balls fell below IS. altho none ran
as low as Is. the recognized safety
point The department arbitrarily re-
jected the whole lot. causing the con-
tractor loss Of $4,000.
Questionable Methods Resorted To.
Incidentally. It may be said that the
departments as a whole. or some OF
their officials. make misuse OF their
powers as part Of the government
which men in outside business life
would scorn to initiate. A supply con-
Germ recently put in bid for furniture.
including an item Of sixty chairs. Later
1t was discovered in the office OF the
concern that a mistake had been made
and that the chairs which had been
quoted to the government at $3.50
. apiece actually cost $72 a dozen or IS
apiece to manufacture. The manager.
: when the proposals were opened. went
to the department and requested per-
mission to withdraw or amend this
item OF chairs. Not only was per-
mission refused, but the officials In
sisted that they be supplied with sew
eral hundred chairs at $3.50 apiece.
Nor could the contractor refuse to exc
cute the order and the concern lost
, something like $500.
To return to the postoffice depart
, ment. That department derives its
autocratic power over its victims by
means Of an innocent looking clause
, in the contract whereby the whole con-
: tract Is made subject TO the Postal
: Laws and Regulations and to the Pub
lie Statutes OF the United States. The
Postal Laws and Regulations is a book
: OF more than $50 pages. containing
a much more than a thousand para
graphs. and the Public Statutes include
all the federal law now In force. The
ablest Of corporation lawyers often
have been fooled by this demure
: clause. constituting It as simply provid-
ing that their clients shall be good
( boys during the period Of the contract,
. to the great subsequent loss Of the
n contractors and the discontinue OF the
e attorneys.
"A Generate Illustration.
t A concrete Illustration of how this
unfair system works may be presented
: thru a case which was decided by the
e court of claims Dec. 4. 1911. It appears
I that John r. Crittenden contracted
Il with the postoffice department tc
y transport tho mails over route 1906
:. from Valdez, via the stations named Il
the contract. to Eagle, Aslaska terri
tory, AS miles and back once q week
from Nov.1 to April 80. and twice a
week from May 1 to Oct 81 in sact
, year. for the period Of four years from
J. May 1, 1905, at and for the conssdera.
I ton Of $4,000 per annum The con.
!. tractor gave the required bond, stocked
!. himself up with dogs. sleds, and othel
!. equipment. hired his men and went &
|. work. The claimant in the case, Johl
Miller, had advanced money to tn
contractor with which to purchase tn,
i necessAry equipment and supplies ant
later entered into partnership witt
. him to protect himself In the perform
. ance Of the contract No roads sxiste.
. over much Of the route and in addition
i to anaintaining the trail the contracto
-. vas compelled to construct bridge
jacFoss streams and build cabins All
= S. ~