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This agreement, made this twenty-fifth day of January, one thousand eight hundred and seventy-three, (1873,) between the United States of America, by John A. J. Creswell, Postmaster General, of the first part, and the Continental Bank-Note Company, of the city of New York, by Homer H. Stuart, president thereof, of the second part, witnesseth:

That whereas the Postmaster-General cansed to be published in certain newspapers within the United States an advertisement, bearing date the twelfth day of December, 1872, inviting proposals for furnishing adhesive postage-stamps, which advertisement is in words and figures as follows, to wit:

"PROPOSALS FOR ADHESIVE POSTAGE-STAMPS.

"POST-OFFICE DEPARTMENT, December 12, 1872. "Sealed proposals are invited from steel-plate engravers and plate-printers, and will be received at this Department until 12 o'clock m. on Friday, the tenth day of January, 1873, for furnishing postage-stamps for a term of four years, commencing on the first (1st) day of May, 1873.

"QUALTITY OF STAMPS.

"The stamps must be furnished, subject to the approval of the Department, from steel plates engraved in the highest style of the art of steel-engraving, and printed in such colors as may be selected by the Department, in the best and most approved manner, equal in every respect to the stamps now in use, upon paper of the best quality suitable for the purpose, thoroughly gummed with the best quality of adhesive gum, perforated in such manner that each separate stamp can be readily detached and used, the sheets to be well pressed and packed so as to prevent them from adhering to each other; the same to be furnished, with all reasonable dispatch, in such quantities as may be ordered by the Department to fill the separate daily requisitions of postmasters and postal agents.

"STOCK ON HAND.

"The contractors shall at all times keep on hand a stock of the several denominations of stamps, subject to the control of the agent of the Department in all stages of manufacture, sufficient to meet all orders of the Department and to provide against any and all contingencies that may be likely to occur during the existence of the contract, so that each and every order of the Department may be promptly filled; and the Department shall have the right to require the contractor, at any time during the existence of the contract, to furnish an extra quantity of stamps not exceeding a supply for three months.

"PACKING.

"Stamps to be transmitted by sea routes must be securely packed in hermeticallysealed tin cases, wrapped in strong manila paper; all others must either be packed in strong binder's board boxes, bound on the edges and corners with muslin and enveloped in two thicknesses of strong manila paper, or inclosed in strong manila envelopes, as the quantity to be transmitted may require; all packages to be so inclosed as to enable the agent of the Department to officially seal them.

"BLANKS.

"In addition, the contractor will be required to furnish labels, and direct the same, for each package, in accordance with the daily lists furnished by the agent of the Department, together with all other blanks required to be inclosed with the stamps; also, all blanks for daily, weekly, monthly, and quarterly returns relating to the number and denominations of stamps furnished.

"ESTIMATE OF QUANTITY REQUIRED.

"The number of stamps issued and to be issued during the four years embraced by the present contract is estimated to be two billion ninety-four million, the average yearly increase being eight forty-hundredths per cent.

"For the next four years it is estimated, at the same ratio of annual increase, two billion eight hundred and eighty-three million stamps will be required.

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It must be understood, however, that proposals made under this advertisement shall include all the stamps needed by the Department during the contract-term, without reference to the above estimates, which are here given only for the information and guidance of bidders.

"DELIVERY.

"The stamps may be required to be delivered by the contractor in separate packages, as above provided for, at the post-office in the place where the same are manufactured, or in such quantities at the Post-Office Department, Washington, D. C., (each denomination being kept separate,) as the Postmaster-General may direct.

66 DIES, ROLLS, AND PLATES.

"The dies, rolls, and plates from which postage-stamps are now printed, being the property of the United States, will be placed in the keeping and custody of the contractor on the 1st day of April, 1873, the same to be held subject to the order and control of the Department, as hereinafter provided, and the contractor will be required from said dies, rolls, and plates, and from such rolls and plates as may be necessary to be reproduced from the original dies, to have on hand, ready for issue, on the day the contract-term commences, a sufficient stock of stamps, of the several denominations required, to fill the current daily requisitions from the Department, without hinderance or delay.

"The contractor will be further required to keep in repair all dies, rolls, and plates from which stamps may be printed, and to renew the same whenever required; and should new desigus be required at any time, to take the place of the present series of stamps, or of any of them, or for denominations of stamps not now in use, the same shall be furnished and engraved, subject to the approval of the Postmaster-General, upon his request, within a reasonable time, all which shall be done and executed in the best style of steel engraving by the contractor, and at his own expense. All dies, rolls, and plates made or used at any time in filling the contract shall be the absolute property of the United States, and shall be delivered, in good working-order, to the Postmaster-General, or his authorized agent, whenever demanded.

"BUILDING, PLACE OF MANUFACTURE, ETC.

"The stamps will be required to be manufactured in a fire-proof building, and in separate apartments, distinct from those in which any other work is done by the contractor, and when finished must be placed in a fire and burglar proof safe or vault, to be specially provided for that purpose, and said apartments and safe or vault shall at all times be subject to the inspection of an agent of the Department.

66 REPORTS.

"The contractor will be required to report weekly, under oath, the number of stamps manufactured, (finished, unfinished, and spoiled,) the number issued during the week, and the number available for issue; all spoiled stamps to be destroyed by the agent of the Department in the presence of the contractor or his representative.

"STAMP-AGENT.

"An agent of the Department will have supervision of the manufacture, storage, and issue of the stamps, who shall at all times have full and free access to the apartments, safes, and vaults where the stamps are manufactured and stored, for the purpose of inspecting the same; and the contractor shall furnish him and his clerks suitable office and desk room for the transaction of the business of his agency, without cost to the Government.

"CONTRACT NOT ASSIGNABLE.

"The contract cannot, in any case, be lawfully transferred or assigned.

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"The Postmaster-General reserves the right to reject any and all bids if, in his judgment, the interests of the Government require it; also the right to annul the contract if, in his opinion, there shall be a failure at any time to perform faithfully any of its stipalations, or in case of a willful attempt to impose upon the Department stamps inferior to those now in use.

"PAYMENTS.

"Payments for stamps actually issued and delivered will be made quarterly, after proper examination and adjustment of accounts.

66 AGREEMENT-BONDS.

"Within ten days after the contract has been awarded, the successful bidder shall enter into an agreement, in writing, with the Postmaster-General to faithfully observe and keep the terms, conditions, and requirements set forth in this advertisement, according to their true intent and meaning, and shall make, execute, and deliver, subject to the approval and acceptance of the Postmaster-General, bonds with good and suticient sureties in the sum of two hundred thousand dollars ($200,000) as a forfeiture for the faithful performance of said agreement or contract, according to the provisions and subject to the liabilities of the seventeenth section of an act of Congress entitled 'An act legalizing and making appropriations for such necessary objects as have been usually included in the general appropriation-bills without authority of law, and to fix and provide for certain incidental expenses of the departments and offices of the Government, and for other purposes,' (United States Statutes at Large, volume 5, page 526,)

approved August 26, 1842, which act provides that in case the contractor shall fail to comply with the terms of his contract, he and his sureties shall be liable for the forfeiture specified in such contract as liquidated damages, to be sued for in the name of the United States, in any court having jurisdiction thereof.

"If the contractor to whom the first award may be made should fail to enter into agreement and give satisfactory bonds, as herein provided, then the award may be annulled and the contract let to the next lowest responsible bidder, and so on until the required agreement and bonds are executed; and such next lowest bidder shall be required to fulfill every stipulation embraced herein, as if it were the original party to whom the contract was awarded.

"The agreement will also provide that if at any time during the coutinuance of the contract the sureties shall die, or become irresponsible for the entire penalty of the bond, the Postmaster-General shall have the right to require a new bond with additional and sufficient sureties, which the contractor shall furnish to the acceptance of the Postmaster-General within ten days after notice, and in default thereof the contract may be annulled.

"EXTENSION.

"Should the interest of the Government require, this contract may be extended beyond the time named, not exceeding three months, by order of the Postmaster-General, and the contract-prices, and all conditions herein set forth, shall govern in such extended contract.

"PROPOSALS.

"No proposal will be considered unless accompanied by a satisfactory guarantee signed by at least two responsible parties. Bidders must state in their proposals the price per thousand stamps, including everything to be done or furnished, as set forth in this advertisement, and all proposals must be made upon the blank forms furnished by the Department, securely enveloped and sealed, marked, 'Proposals for postagestamps,' and addressed to the Third Assistant Postmaster-General, Washington, D. C. "JOHN A. J. CRESWELL, "Postmaster-General"

And whereas on the tenth (10th) day of January, one thousand eight hundred and seventy-three, (1873,) between the hours of 12 o'clock m. and 3 o'clock p. m. of said day, upon the public opening and examination of the proposals presented in pursuance of said advertisement, it appeared that the Continental Bank-Note Company, of the city and State of New York, was the lowest bidder for furnishing the adhesive postage-stamps mentioned in said advertisement, and accordingly the contract for furnishing said stamps for the period of four years, commencing on the first (1st) day of May, one thousand eight hundred and seventy-three, (1873,) was awarded by the Postmaster-General to the said Continental Bank-Note Company:

Now, therefore, in consideration of the premises, it is covenanted and agreed by and between the United States, by the said John A. J. Creswell, Postmaster-General as aforesaid, party of the first part, and the Continental Bank-Note Company, of the city and State of New York, by Homer H. Stuart, president thereof, party of the second part, as follows, to wit:

The said party of the second part agrees

1st. To furnish and deliver all the adhesive postage-stamps which may be required by the Post-Office Department for a term of four (4) years, commencing on the first day of May, one thousand eight hundred and seventy-three, (1873.)

2nd. That all the stamps shall be furnished subject to the approval of the Department, from steel plates, engraved in the highest style of the art of steel-engraving, and printed in such colors as may be selected by the Department, in the best and most approved manner, equal in every respect to the stamps now in use as now manufac tured by the National Bank-Note Company, upon paper of the best quality suitable for the purpose, thoroughly gummed with the best quality of adhesive gum, perforated in such manner that each separate stamp can be readily detached and used, the sheets to be well pressed, and packed so as to prevent them from adhering to each other; the same to be furnished with all reasonable dispatch, in such quantities as may be ordered by the Department to fill the separate daily requisitions of postmasters and postal agents.

3d. To keep on hand at all times a stock of the several denominations of stamps, subject to the control of the agent of the Department, in all stages of manufacture, sufficient to meet all orders of the Department, and to provide against any and all contingencies that may be likely to occur during the existence of the contract, so that each and every order of the Department may be promptly filled; and the Department shall have the right to require the party of the second part, at any time during the existence of the contract, to furnish an extra quantity of stamps, not exceeding a supply for three months.

4th. To securely pack all stamps to be transmitted by sea-routes in hermetically

sealed tin cases, wrapped in strong manila paper; all others to be either packed in strong binders' board boxes, bound on the edges and corners with muslin, and enveloped in two thicknesses of strong manila paper, or inclosed in strong manila envelopes, as the quantity to be transmitted may require; all packages to be so inclosed as to enable the agent of the Department to officially seal them.

5th. To deliver the stamps in separate packages, as above provided for, at the postoffice in the city of New York, or in such quantities at the Post-Office Department, Washington, D. C., (each denomination being kept separate,) as the Postmaster-General may direct.

6th. To furnish labels and direct the same for each package, in accordance with the daily lists furnished by the agent of the Department, together with all other blanks required to be inclosed with the stamps; also, all blanks for daily, weekly, monthly, and quarterly returns relating to the number and denominations of stamps furnished, and stock on hand and in process of manufacture.

7th. To safely keep all dies, rolls, and plates from which postage-stamps are now printed, which may be placed in the custody of the party of the second part, the same to be subject to the order and control of the Postmaster-General; and to have on hand ready for issue on and after the first (1st) day of May next, a sufficient stock of stamps of the several denominations to fill the current daily requisitions of the Department, without hinderauce or delay. Also, to keep in repair all dies, rolls, and plates from which stamps may be printed, and to renew the same whenever required; and should new designs be required at any time to take the place of the present series of stamps, or of any of them, or for denominations of stamps not now in use, the same shall be furnished and engraved, subject to the approval of the Postmaster-General, upon his request, within a reasonable time; all which shall be done and executed in the best style of steel engraving, by and at the expense of the party of the second part. All dies, rolls, and plates made or used at any time in filling this contract shall be the absolute property of the United States, and shall be delivered in good working-order to the Postmaster-General or his authorized agent whenever demanded. Also, not to prepare, or permit to be prepared in the stamp manufactory, or in the Continental Bank-Note Company's establishment any dies, rolls, plates, or engravings, from which printed stamps resembling those prepared for the Post-Office Department can be made or produced; and, further, to use every possible means to prevent the issue by any one of postage-stamps from the dies, rolls, and plates engraved and used for the Post-Office Department, or any other stamps resembling them.

eth. To secure and keep during the existence of this contract a strictly first-class fire-proof building in the city of New York, which shall contain suitable apartments for manufacturing said stamps, and a fire and burglar proof safe or vault for storing the same; said apartments and safe or vault to be at all times subject to the inspection of an agent of the Department, and to be used solely and expressly for the purpose of manufacturing said stamps, separate from any other work done by said party of the second part.

9th. To report to the Department weekly, under oath, the number of stamps manufactured, (finished, unfinished, and spoiled,) the number issued during the week, and the number available for issue; all spoiled stamps to be counted and destroyed in the presence of an agent of the Department and a representative of the party of the second part.

10th. To furnish the agent of the Department and his clerks suitable office and desk room at the place of manufacture for the transaction of the business of his agency, without cost to the United States; and to conform in all respects to such regulations as the Department or its agent may from time to time adopt for the security of the Government.

And the said party of the first part agrees to pay the said party of the second part for the stamps delivered in pursuance of this agreement, at the rate of fourteen cents and ninety-nine one hundredths of a cent (14%) for each one thousand (1,000) stamps, which shall be full compensation for anything required to be done or furnished under this contract; payments to be made quarterly-that is to say, in July, October, January, and April, after a proper examination and verification of the accounts.

It is further mutually agreed by and between the contracting parties as follows: 1st. That an agent of the Department shall have supervision of the manufacture, storage, and issue of the stamps, who shall at all times have full and free access to the apartments, safes, and vaults where the stamps are manufactured and stored, for the purpose of inspecting the same, and whose duty it will be to require the stipulations of the contract to be faithfully observed.

2d. That the Postmaster-General shall have the right to annul this contract if, in his opinion, there shall be a failure at any time to perform faithfully any of its stipulations, or in case of a willful attempt to impose upon the Department stamps inferior to those now in use.

3d. That if at any time during the continuance of this contract the sureties upon the bond given by the party of the second part shall die, or become irresponsible for

the entire penalty of the bond, the Postmaster-General shall have the right to require a new bond, with additional and sufficient sureties, which the party of the second part shall furnish to the acceptance of the Postmaster-General within ten (10) days after notice, and in default thereof the contract may be annulled.

4th. That should the interest of the Government require, this contract may be extended beyond the time named, not exceeding three months, by order of the Postmaster-General, and the contract-prices and all conditions herein set forth shall govern in such extended contract.

In testimony whereof the said John A. J. Creswell hath hereunto set his hand and affixed the seal of the said Post-Office Department; and he, the said Homer H. Stuart, as president of the Continental Bank-Note Company, hath on his part set his hand and affixed the seal of the said Continental Bank-Note Company, this twenty-fifth (25) day of January, one thousand eight hundred and seventy-three,

[SEAL.]

Attest: W. H. H. TERRELL. [SEAL.]

JOHN A. J. CRESWELL,

Postmaster-General.

THE CONTINENTAL BANK-NOTE COMPANY, By HOMER H. STUART, its President.

Attest: JARED K. MYERS, Secretary.

Know all men by these presents:

[SEAL.]

That we, the Continental Bank-Note Company, of the city of New York, by Homer H. Stuart, president thereof. as principal, and John J. Monell, of Fishkill, county of Dutchess, and State of New York, Homer H. Stuart, of New York City, Touro Robertson, of New York City, and John C. Frémont, of New York City, as sureties, are held and firmly bound unto the United States of America in the just and full sum of two hundred thousand dollars, ($200,000,) for the payment whereof, well and truly to be made, we bind ourselves, our heirs, executors, and administrators, jointly and severally, by these presents.

And it is distinctly understood and agreed that this obligation is entered into with full knowledge of the seventeenth (17) section of an act of Congress approved August twenty-sixth, (26,) one thousand eight hundred and forty-two, (1842,) entitled "An act legalizing and making appropriations for such necessary objects as have been usually included in the general appropriation bills without authority of law, and to fix and provide for certain incidental expenses of the Departments and offices of the Government and for other purposes," (U. S. Statutes at Large, vol. 5, page 526,) which act provides that in case the contractor shall fail to comply with the terms of his contract, "he and his sureties shall be liable for the forfeiture specified in such contract, as liquidated damages, to be sued for in the name of the United States in any court having jurisdiction thereof," and with special reference thereto, and that in case of failure to perform the annexed condition the full penalty of this bond shall be paid as liquidated damages.

The condition of this obligation is such, that whereas the above-bounden Continental Bank-Note Company, of New York, by its president, Homer II. Stuart, has entered into a contract with the United States of America for furnishing adhesive postage-stamps for the use of the Post Office Department, during a period of four (4) years, commencing on the 1st day of May, 1873, which said contract is dated the twenty-fifth (25) day of January, 1873, and attached to this bond :

Now, if the said Continental Bank-Note Company shall well and truly perform said contract, according to the true intent and meaning thereof, then this obligation shall be null and void; otherwise to be of full force and effect.

In witness whereof we have hereunto subscribed our names and affixed our seals this twenty-fifth day of January, one thousand eight hundred and seventy-three. The Continental Bank-Note Company by[SEAL CONTINENTAL BANK NOTE COMPANY.]

Approved January 30, 1873.

HOMER HI. STUART,

Its President.
JOHN J. MONELL.
HOMER H. STUART.
TOURO ROBERTSON.
J. C. FREMONT.

JOHN A. J. CRESWELL,
Postmaster-General.

STATE OF NEW YORK, City and County of New York, 88:

I certify that on the twenty-fifth day of January, 1873, before me personally appeared John J. Monell, Homer H. Stuart, Touro Robertson, and on the twenty-eighth day of January, 1873, before me personally appeared John C. Frémont, known to me to be the

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