The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1916-01-17
employees
GUARANTEE
FUND URGED
ACTION OF SECURITY COMPANY
COSTING U. S. LARGE SUMS
Screen Wagon Contracts for Carrying
Mails Go Largely to One Con-
eern-Hot Report.

WASHINGTON. Jan. l6.-kestrlc-
tions placed by surety companies on
bidders for screen wagon transfer
work in the governmental postal ser
vice is costing the United States a
vast amount OF money unnecessarily.
Daniel c. Roper. first assistant post
master general. has declared TO con-
gress in strong plea for establish
ment of a federal employees guarantee
fund
So important did Mr.. Roper consider
the situation that has developed as .
result of investigation by federal
agents. that he called the postoffice
committee into executive session TO
lay the inquiry before them. Members
questioned him at length. His reve-
lations were closely guarded and only
became public today when an account
OF the executive session was inadvert-
emily included in a house report.
The American Surety company of
New York. which Is dominant in the
screen wagon bonding field. was men,
toned particularly by Mr.. Roper as
partly responsible for the limited bids
for this class OF transfer work. The
investigators report dealt sharply
w.-n the company and its Washington
agent. Some of the agents acts ia
connection VITA the awarding of con
tracts and the bonding of bidders were
termed "unwarranted. unfair and ques-
tionabla." The investigation will be
continued vigorously. Mr.. Roper assur-
, ed the committee.
The Cassidy Interests.
Frequent references were made
throughout the report and in Mr.. Rop-
ers remgrk 10 the Cassidy interests,
who formerly held screen contracts in
several cities and who were bonded
/ by the American Surety Company.
/ other bidders. according TO evidence
adduced by the investigators. found
/ the Cassidy firm a hard one with
which to compete. Three members Of
the firm now are serving terms in
/ the Atlanta federal prison for postal
! Jaw violations.
We must give the people Of the
/ country some definite assurance said
| Mr.. Roper to the committee. that
all bids submitted by responsible cit
: liens for tho performance of postal
/ service will receive full consideration
and thst the contract will De awarded
without any restriction or favoritism
Of any kind In New York city. where
/ amount Of $500 OOO. there were only
two bidders in addition 10 the Cassidy
people. In New York city. where we
have contract OF 100000 for screen
wagon service. We had only one or two
measly bidders. We are paying. in
my judgment. in New York city about
100000 more than We should pay"
Some Allegations.
| These are some tho uligmafiOna
the investigators report makes Of the
American Surety Company:
That II refused TO bond certain bid
ders unless the amounts OF their bids
were made public. while 10 bonded
others without inquiry.
That is refused 10 bond bidders on
what is considered low estimates. but
lagreed To furnish bond in a higher
amount on the same indemnity pro
yided
That tho cbmnauy'- Washington
agent acted as personal attorney foi
i. j Cassidy. a bidder who now ~
lCerving e term in Atlanta for postal
frauds. While he vas presumed 10 BE-
serving the interests of all bidders
That The com0any's Washington
sought 10 have tho second assistant
postmaster general revise certain
schedule so that Doe Postal Transfer
company OF Illinois. OF which j. j
Cassidy was vice president. might ob
tain the contract. although me com
lpany was The second lowest bidder.
Mr. Roper said that strictly iron
a business standpoint that bondini
through private compau.cs was unwis.
L lie pointed 10 "a congressional rcpor
showing that for fhe five years pre-
ccding 1909 the government recorded
onl onc-fourth a. much from bondinl
companies az DO paid them ln pre-
lmiums. Hc advocated adoption Of IN,
Canadian system. under which an em
ployes contribute 20 general bonding
fund