The New York herald., 1922-07-08
BACON AND RED TAPE
COST MAN 100000
Loss Falls Upon New Yorker
Merely for Dealing
With q. s.
Special Dispatch to THE New YORK HERALD.
New York Herald Bureau.
Washington. d. c., July I. (

Special Dispatch to THE New YORK HERALD.
New York Herald Bureau.
Washington. ID. C., July !. (
Out of little fier in bacon. purctased
from the Government three years ago,
Louis Leavitt of New York is likely to
get $685. from the Government, but
he still will remain loser to the extent
Of about 100000. Even the 100000
with which he is to be reimbursed Is de-
pendent upon the Senate and House ap-
proving the favorable action taker to-
day by the Senate Committee on
Claims. which has been conducting
hearings on Mr. Leavitt's bacon.
The deal is regarded by Government.
officials and Senate leaders as an cut.
standing instance of the interminable
delay Government red tape brings about
and of the injustice in which 1t some
times results.
President Harding. former Budget Di-
rector Dawes and other Government Of
ficials have recommended that Leavitt's
claim be allowed. According to the rec
ord In the case Leavitt, In .Tdne.
1919. purchased approximately 2.493.s26
pounds of bacon from the Surplus Prop
erty Division Of the War Department.
Bacon LibeIed, Sale Halted.
For this he paid the Government and
for insurance. transportation. etc. The
sum of $694,564.6s. Following this. Mr..
Leavitt was indicted at the instance Of
the United States Attorney for the Fast
ern District of New York, and his bacon
was libeled after he had disposed OF
S20,3s6.51 worth.
In 1921 the bacon still rested IN a
warehouse in New York. Mr.. Leav!tt
then took up the matter of resembling
the contract with the Secretary Of War.
On December %. 1921, the Attorney Gen
eral advised the Secretary of War that
he was authorized to "rescind and III
addition. to reimburse the contractor
for such charges paid by him as were
reasonably required for the t-anspcrta-
ton, storage. insurance and proper pro-
lection Of the property"
1t was found that a reasonable charge
for transportation. insurance. &c. was
s96,4O523. Time went on; the Gov
ernment moved deliberately. On Jam
uary 81. 1922, the Comptroller-General
informed the Secretary Of War that
there were no funds available with
which to reimburse Leavitt, and accord
ingly. the Secretary of War notified the
unfortunate holder OF the bacon tnat
nothing could be done. Leavitt was per-
mitted to sell the bacon at the best
price obtainable. without prejudice to
the rights of either party.
stun Deteriorates.
In the meantime the demand for ba-
con had lessened. and what was left in
the storehouse had deteriorated, some
Of 1t becoming absolutely rancid.
Leavitt sold his bacon at the best
price obtainable, which was 3M cents a
pound. This netted Leavitt $53.554.s1
on his transaction. which, added to
what he had already sold, made his net
sales amount to $73.941.35. This still
left balance against Leavitt on the
wrong side of his ledger OF $500. 0.623.3S.
which the Senate Committee on Claims
recommends shall be paid.
In recommending the payment Of this
claim, Gen. Dawes said: "Mr. Leavitt
has been to large expense. He was
indicted Ave times. the bacon was IL
belled and his. money has been tied up
for nearly three years. so when this
matter Is finally settled Mr.. Leavitt will.
without any wrongdoing or fault on his
part, still be the loser to the extent Of
s250.00o or 100000"