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approved August 26, 1842, which act provides that in case the contractor shall fail to comply with tbe 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 baving 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 inust state in their proposals the price per thousand stamps, including everything to be done or furnished, as set forth in this advertisemeut, and all proposals must be made upon the blank forms furnished by the Departinent, 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 followe, 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 tirst 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 manufactured by the National Bank-Noto 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 band 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.

1th. 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 njuslin, and enveloped in two thicknesses of strong mapila paper, or inclosed in strong mauila envelopes, as the qnantity to be transmitted may reqnire; all packages to be so inclosed as to enable the agent of the Department to officially seal tbem.

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 tbe 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 aud 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 binderance or delay. Also, to keep in repair all dies, rolls, and plates from which stamps may be printed, and to renew the same whenever reqnired ; 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 absolate 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 prinied 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.

8th. 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 manofacturing 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 mannfactared, (finished, unfinished, and spoiled,) the number issued during the week, and the nnmber 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 mom 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 tbe stamps delivered in pursuance of this agreement, at the rate of fourteen cents and pinety-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. Tbat an agent of the Department shall have supervision of the mannfacture, storage, and issue of the stamps, who shall at all times have full and free access to the apartments, safes, and vanlts 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 anonl 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 bave the right to require a new bond, with additional and sufficient sureties, which the party of the second part sball 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 mouths, by order of the Postmaster-General, and the contract-prices and all conditions herein set forth shall govern in such extended contract.

In testimany whereof the said John A. J. Creswell bath hereunto set bis 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, bath on bis part set his hand and affixed the seal of the said Coutinental Bank-Note Company, this twenty-fifth (25) day of January, one thousand eight hundred and seventy-three, [SEAL.]

JOHN A. J. CRESWELL,

Postmaster-General. Attest: W. H. H. TERRELL. (seal.]

THE CONTINENTAL BANK-NOTE COMPANY,

By HOMER H. STUART, its President, Attest: JARED K. MYERS, Secretary.

[SEAL.]

know all men by these presents :

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 II. 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, (3200,000,) for the payment whereof, well and truly to be made, we bind ourselves, our heirs, executors, and administrators, jointly and severally, by these presents.

Aud 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. Statntes at Large, vol. 5, page 5:26,) 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 liqui. dated damages, to be sued for in the name of the United States in any court baviug 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 Bavk-Note Company, of New York, by its president, Homer II. Stuart, has entered into a contract with the Uniter 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, 1073, and attached to this bond:

Now, if tbe 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-tifth day of January, one thousaud eight hundred and seventy-three.

The Continental Bank-Note Company by-
[SEAL CONTINENTAL BAXK XOTE COMPANY. ]

HOMER H. STUART,

118 President. JOHN J. MONELL. HOMER H. STUART. TOURO ROBERTSON.

J. C. FREMONT. Approved January 30, 1873.

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

identical persons who executed the above bond, and severally acknowledged that they signed and sealed the same. Witness my band and notarial seal at the city of New York, this twenty-eighth (28) day of January, 1873. (SEAL)

FRANCIS B. ANTZ,

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

John J. Monell, one of the sureties on the annexed bond of the Continental BankXote Company, being duly sworn by me, upon oath says that he is a resident and freeholder of said State, and is worth the sun of one hundred thousand dollars over all his debts and liabilities, and exclusive of property exempt from execution.

JOHN J. MONELL. Sobscribed and sworn to before me, a notary republic in and for the city, county, and State of New York, this 25th day of January, 1873. (SEAL)

FRANCIS B. ANTZ,

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

Homer ft. Stuart, one of the sureties on the annexed bond of the Continental BankNote Company, being duly sworu by me, upon oath says that he is a resident and freeholder of said State, and is worth the sum of one hundred thousand dollars over all his debts and liabilities, and exclusive of property exempt from execution.

HOMER H. STUART.

Subscribed and sworn to before me, a notary public in and for the city, county, and State of New York, this 25th day of January, 1873. (SEAL)

FRANCIS B. ANTZ,

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

Touro Robertson, one of the sureties on the annexed bond of the Continental BankNote Company, being duly sworn by me, ipon oath says that he is a resident and freeholder of said State, and is worth the sum of one hundred thousand dollars over all bis debts and liabilities, and exclusive of property exempt from execution.

TOURO ROBERTSON. Subscribed and sworn to before me, a notary public in and for the city, county, and State of New York, this 25th day of January, 1873. (SEAL.]

FRANCIS B. ANTZ,

Notary Public. STATE OF NEW YORK, City and County of New York, ss :

John C. Fremont, one of the soreties on the annexed bond of the Continental BankNote Company, being duly sworn by me, upon oath says, that he is a resident and freeholder of said State, and is worth the sum of one bundred thousand collars over all bis debts and liabilities, and exclusive of property exempt from execution.

J. C. FREMONT.

Subscribed and sworn to before me, a notary public in and for the city, county, and State of New York, this 28th day of January, 1873. (SEAL NOTARY PUBLIC.]

FRANICS B. ANTZ,

Notary Public. STATE OF New YORK, City and County of New York, 88 :

I. Charles E. Loew, clerk of the city and county of New York, and also clerk of the supreme court for the said city and county, being a court of record, do hereby certify that Francis B. Antz, before whom the annexed depositions were taken, was, at the time of taking the same, a notary public of New York, dwelling in said city and conaty, duly appointed and worn, and authorized to administer oaths to be used in any court in said State, and for general purposes; and that his signature thereto is genuine, as I verily believe.

In testimony whereof I have hereunto set my hand and affixed the seal of the said court and connty, the 29th day of January, 1873. (SEAL.]

CHARLES E. LOEW, Clerk. Official copy.

(Copy.)

New York, July 1, 1873. The United States Post Ofice Department to the Continental Bank Note Company, Dr. To engraving and making steel-plates for printing the various special postage-stamps required for use by the several Departments of the United States Governinent, pursuant to the act of Congress on the subject, approved 30 March, 1873 :

....

6,000

4,500

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Sixteen (16) plates for the postage-stamps of the Post-Office Department, at $500 each.

::.. $8,000 Twelve (12) plates for the postage-stamps of the Treasury Department, at $500

each ................ Eleven (11) plates for the postage stamps of the War Department, at $500 each. 5,500 Eleven (11) plates for the postage-stamps of the Navy Department, at $500 each 5,500 Sixteen (16) plates for the postage-stamps of the State Departinent, at $500 each 8,000 Five (5) plates for the postage-stamps of the Executive Department, at $500 each.........................................

2,500 Ten (10) plates for the postage-stamps of the Interior Department, at $500 each 5,000 Ten (10) plates for the postage-stamps of the Department of Justice, at $500 each........

5,000 Nine (9) plates for the postage-stamps for the Department of Agriculture, at $500 each....

.... 4,500

50,000 To the Hon. John A. J. Creswell, Postmaster-General of the United States :

The petition of the Continental Bank-Note Company of the city and State of New York, by Homer H. Stuart, its president, respectfully represents :

That on or about the 12th day of December, 1872, you invited proposals for furnishing the Post-Office Department with adhesive postage-stamps for four years, commencing on the 1st day of May, 1873; and estimated the number of stamps required during the contract term, at two billion eight hundred and eighty-three million.

Your advertisemeut also set forth that the dies, plates, and rolls from wbich the postage-stamps then in use were printed belonged to the Government, and would be placed in the custody and keeping of the contractor, to be used in printing t required, with the understanding, however, that the cont

nding, however, that the contractor should keep the said

repair, should renew them whenever ordered, and should engrave and furnish new designs, should new designs at any time be required to take the place of the series of stamps then in use, or for denominations of stamps not then in use : and that all dies, plates, and rolls made or used at any time in filling the contract. should become the absolute property of the United States, and should be delivered in good working order to the Postmaster-General, or his authorized agent, whenever demanded.

Having considered the terms and conditions of the aforesaid advertisement, your petitioner offered to furnish the stamps required, at the rate of fourteen cents and ninety-nine one-hundredths of a cent per thousand. Other responsible bidders, under the same advertisement, offered to furnish said stamps at twenty-two and twentythree cents per thousand.

At the time these proposals were made, the Government was paying under the contract then about to expire, for stamps of the same series and denomination, twenty. seven cents and one-half cent per thousand.

Your petitioner being the lowest bidder was awarded the contract, which was duly signed, sealed, and executed on the 25th of January, 1873.

Cuder this contract, up to the present time, all postage-stamps ordered by your Department bave been promptly furnished, and your petitioner has reason to believe that they have given entire satisfaction to the public.

Ihe series of stamps provided for, by and under this contract of January, 1873, are the same as those then in use in your Department, and consisted of the following denominations, to wit, the one-cent stamp, the two, three, six, seven, ten, twelve, fifteen, twenty-four. thirty, and ninets cepts stamp. They embrace eleven denominations, and require for their manufacture some twelve or fourteen sets of dies, plates, and rolls, which are furnished by the Government. In contradistinction from the special stamps hereinafter mentioned, they may be designated as the general postage-stamps, then and now in use throughout the United States.

Subsequent to the execution of the aforesaid contract of the 25th of January, 1873, the Congress of the United States abolished the franking privilege, and by law approved January 31, 1873, declared that all official correspoudence and other mailable maiter sent from or addressed to any officer of the Government, or person then authorized to frank the same, should, from and after the 1st day of July, 1873, be chargeable with the same rates of postage as might be lawfully imposed upon like matter sent by or addressed to other persons; and by further act approved March 3, 1873, au borized and directed the Postmaster-General to prepare or cause to be prepared special stamps, for official mail-matter only, to be used in each of the Executive Departments of the Government.

Acting under this authority, your Department ordered your petitioner to engrave and furnish new designs--new dies, plates, and rolls for these special stamps. Each Executive Department of the Government required a separare series of stamps.

The series for the Executire Department consisted of five denominations, to wit, the one, two, three, six, and teu cents stamp.

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