Year: 1874

signed tue bill providing for government for the
District Of Columbia.


STRAW BIDS IN THE POsT-oFFICE DEPART


MENT.


THE COMMITTEE REPORT ON REPRESENTATIVE


STONES CHARGEs-rHE OFFICIALS OF THE DE-


PARTMENT PRONOUNCED FREE FROM ALL


BLAME-A GENEROUS COMPLIMENT TO THEIR


VIGILANCE AND FIDELITY - THE ABUSES


CHARGED NOT FOUND TO EXIST IN THE DEPART


MENT.


WASHINGTON June 81, isTG~


The House Committee on Post-Offices and Post
Roads has submitted report on the charges made
by Representative Stone that abuses and iTegularl-
ties exist in the Pos-Oiice Department in relation
to certain mail contracts the payment to con-
tractors and contracts for temporary service. The
Committee after an elaborate examination of the
subject say that the facts and proceedings relating
to the letting of the routes specified in the preamble
to Mr. Stonei resolution. and the employment
of the temporary service rendered necessary by the
failure of the bidders TO enter into contracts and
perform the service furnished fair illustration OF
some at least of the annoyances and difficulties to
which the Post-Offce Department was constantly
exposed under the system of STRAW" bidding to
which it was subjected. The present Postmaster
General has, since he assumed the administration
of the affairs of the Post-Office Department,
frequently called the attention of Congress to
these irregularities and abuses recommending
from time to time such legislation at was suggested
by the experience of the Department for the pur-
pose of preventing If possible their continuance
and repetition. and. so far as the Committee have
been able to discover, after very full and careful
investigation they believe be has with an energy
andindustry worthy of special commendatiOn, faith
fully strven to protect the Government from
anv serious losses which would otherwise have been
sustained In consequence of these unlawful COM
binations and Illegal practices; under the advertise
ment of 2.414 routes, at least 10000 bids were re-
ceived and examined, and as soon as 1t became
manifest that the lowest bidders upon a number OF
them including all of those embraced by Represent
ative Stone in his charges. would fail TO enter INTO
the contract, which was directed TO be
executed prior to the 1st day of July,
ISL. the Postmaster General proceeded 10 Law
all the facts before the Attorney-General,
for the purpose of obtaining his opinion. as TO the
true Interpretation of the laws bearing upon the sub
iect and of being officially advised to the proper
course for the Department pursue under the cir
cusances for the protection OF the interests of the
United States and the rights af honest bona de bid
ders Under the Interpretation of the law as IT then
stood but little, if anything was left to the dscre
ton of the Postmaster General. He had
No authority to disregard the rule defined by
the AttorDey-General, nor accept any other bid
upon the list in place of the failing bidder and his
plain duty was to execute the law as he found IT,
That he and his assistants in the Department made
every effort within the scope OF their authority TO
detect and prevent fraudulent bidding, and that
they honestly endeavored to perform itheir whole
duty faithfully and in the best interests OF
the Government. the evidence taken in the
e. 80, rO
while the prices paid for temporary services in
some of the cases in which it became necessary to
employ it, were higher than portion OF the lowest
and robabv irresponsible bids for the regular serv
ice of four years upon the route yet the test
mony proved very cOnclusively that the temporary
contract the only one the POstmaster-General was
then authorized TO make, was uniformly given to
the lowest bidder for that kind of service and thatn
no case was it awarded al price IN excess OF what
was behevedtO be fair and reasonable compensation
for such service. The Committee say if the bill
which recently passed the House should become
law il will have the desired effect of preventing
straw bidding and further that the uncontradIcted
evidence fully established the fact that no pay
ments of money were made in any instances IN adj
vance of the service. until after the expiration
Of the quarter in which the work was DONE Belley-
ing that while the combinations for straw bidding
have frequently Deen oy ouIsue peIsons
the alleged abuses and irregularities have not existed
and do not exist in the POst-Oiice Department, as
charged in the preamble and resolution referred TO
by the Committee; and being of opinion, after
very thorough examination of the whole question,
that the charges against the officers OF that depart
ment have not been sustained, the Committee ask
that the preamble and resolution be laid on the
table and that they be discharged from further con-
sideration of the subject. This was agreed to-


cuCCIoN TA UIrU unI-cE