Evening star., 1944-02-07
Treasury Acts 10 Save
Money on Contract
For u. ). Waste PapeI

Seeking a more equitable adjust
ment in its contract for the dis
posal OF waste paper from loca,
Government agencies, the Treasury
Departments Procurement Divi-
sion today called for bids on a new
contract after two-months study
The existing contract, held by the
Penn Paper and Stock Co. IA years
will be Cancelled. The new contract
will call for service by the success
full bidder up to June 80, 1916, in.
stead OF for the customary IL.
months period. and will includ.
several other new features for tn.
mutual protection Of both parties
A Treasury spokesman said Il
would include an "escalator" clause
guaranteeing the Government s
higher rate as paper prices rise
The Penn Co. now pays the Gov
eminent $2.20 ton for loose pape,
and resells 1t at the OPA ceiling
Of $14 a baled ton.
Byrd Committee Investigated.
The TreaSury's attention was
called to the inequality of the ex.
istlng contract by the Byrd Econ.
omy Committee. according tx
Joseph Borda. committee clerk, H.
said an investigation disclosed thai
invitations for bids on the existing
contract had not been generally
circulated and that two or three
bids had been received. Mr.. Bords
also said that only four days elapsed
between the time the bids were
announced and closed. The new
invitations will be circulated TO,
Is days, with the bidding scheduled
to close February %.
At the Treasury, however, 8
spokesman said the Penn Co. hac
submitted the only bid for the
entire wastepaper job, although al
least one other firm had bid on q
part of 1t. This latter firm, 1t was
explained, was willing to collec,
select paper, such as map-end clip
pings, while the Penn Co. bid or
all types. The bulk of paper COL
lected Is the mixed" variety that
comes from office wastepape,
baskets.
The Byrd committee became in.
terested in the matter after discov-
ering the Penn Co., under the term.
OF its contract, paid the Govern
ment 1920 a ton for loose paper
and reSold 1t at $14 a ton baled,
Paper Must Be Moved.
The Treasury spokesman. how.
ever, pointed out that the Govern.
ment actually is selling a raw ma
terial, while the dealer must pay
the costs of collecting wastepaper
sorting 1t, baling it and shipping il
to the mill Another item that has
been overlooked, he said, is that
wastepaper must be moved, regard
less of whether it is sold or given
away. The 100000 pounds col
lected monthly in local Govern
ment agencies, he said, would con-
stitute a serious fire and health
hazard or raise big storage prob
lem II not Kept moving.
A spokesman for the company
today said the firm had tried fol
more than five years to get the
Government to incorporate some OF
the features in the contract that will
60 into the new document. He also
said the new contract was not the
result of paper thefts but is de-
signed to put the matter on a more
equitable basis.
The company has received many
letters from Government agencies
thanking it for recovering lost val
uables, which might easily have been
lost or stolen. Among the articles
recovered from the company's sort
ing belt were an admira's uniform
an envelope containing $120 belong
ing to a Government clerk and sew
eral sheets of unfinished 81 bills
from the Bureau of Engraving and
Printing.