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identical persons who executed the above bond, and severally acknowledged that they sigued and sealed the same. Witness my band and notarial seal at the city of New York, this twenty-eighth (20) day of January, 1873. (EAL)

FRANCIS B. ANTZ,

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

John J. Monell, one of the sureties on the annexed bond of the Continental BankNoie 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 hundred thousand dollars over all his debts and liabilities, and exclusive of property exempt from execution.

JOHN J. MONELL. Subscribed and sworn to before me, a notary republic in and for tho 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 Vew York, 88:

Homer H. Stuart, one of the sureties on the annexed bond of the Continental BankYote Company, being duly sworn by me, npon 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.

HIOMER H. STUART.

Subsеribed and sworn to before me, a notary public in and for the city, county, and State of New York, this 25th day of January, 1073. [SEAL)

FRANCIS B. ANTZ,

Notury 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 BankSote 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 hundred thousand dollars over all his 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, 88:

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

J. C. FREMONT.

Snbscribed and sworn to before me, a notary public in and for the city, county, and State of New York, this 2sth day of January, 1873. [SE AL XOTARY PUBLIC.]

FRANICS B. ANTZ,

Votary l'ublic. 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 preme 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 votary public of New York, dwelling in said city and conuty, duly appointed and sworn, and authorized to ailininister oaths to be used in any court in salit State, and for general purposes; and that his signature thereto is genuine, as I verily believe.

In testimony whereof I bave hereunto set my hand and affixed the seal of the said court and county, the 20th day of January, 1873. [SEAL.)

CHARLES E. LOEW, Clerk.

Official copy

(Copy.)

NEW YORK, July 1, 1873. The United States Post Office Department to the Continental Bank Note Company, Dr. To engraving and making steel-plates for printing the various special postage-stamps reqnired for nse by the several Departments of the United States Government, pursuant to the act of Congress on the subject, approved 3d March, 1873 :

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

$500 each Twelve (12) plates for the postage-stamps of the Treasury Department, at $500

$8,000 each

6,000 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 Sisteen (16) plates for the postage-stamps of the State Departınent, at $300 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 $300 each 5,000 Ten (10) plates for the postage-stamps of the Departinent of Justice, at $500 each...

5,000 Nine (99) 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 furnishiing the l'ost-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 advertisement also set forth that the dies, plates, and rolls from which 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 the stamps required, with the understanding, however, that the contractor should keep the said dies, plates, and rolls in repair, should renew them whenever ordered, and shonld engrave and furnish new desigus, 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 userl 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-bundredths of a cent per thousand. Other responsible bidders, under the same advertisement, othered 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.

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

The series of stamps provided for, by and under this contract of January, 1873, are the same as those tben 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-tour, thirty, and ninety cents 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 iu 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 :pproved January 31, 1873, declared that all official correspondence aud other mailable maiter sent from or addressed to any officer of the Goverument, or person then anthorized to thank 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 npon like matter sent by or addiessed to other persons; and by further act approved March 3, 18733, aw borized and directed the Postmaster-General to prepare or canse to bo prepared special stamps, for official mail-matter only, to be used in each of the Executive Departmen's 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 tive denominations, to wit, the one, two, three, six, aud ten cents stamp.

For the Post Office Department of ten denominations, to wit, the one, two, three, six, ten, twelve, fifteen, twenty-four, thirty, and ninety cents stamp.

For the Treasury Department of eleven denominations, to wit, the one, two, three, six, seven, ten, twelve, fifteen, twenty-four, thirty, and ninety cents stamp.

For the Iar Department of eleven denominations, to wit, the one, two, three, six, seven, ten, twelve, fifteen, twenty-four, thirty, and ninety cents stamp.

For the Nary Department of eleven denominations, to wit, the one, two, three, six, seren, ten, twelve, fifteen, twenty-four, thirty, and ninety cents stamp.

For the State Department of tifteen denominations, to wit, the one, two, three, six, seven, ten, twelve, fifteen, twenty-four, thirty, and ninety cents stamp; and also of the two, tive, ten, and twenty dollars stamp, with one face-plate cominon to the two, five, ten, and twenty dollars stamp.

In the Interior Department of ten denominations, to wit, the one, two, three, sis, ten, twelve, fifteen, twenty-four, thirty, and ninety cents stamp.

For the Department of Justice of ten denominations, to wit, the one, two, three, six, ten, twelve, tifteen, twenty-four, thirty, and ninety cents stamp.

And for the Department of Agriculture of nine denominations, to wit, the one, two, three, six, ten, twelve, fifteen, twenty-four, and thirty cents stamp.

The special stamps, therefore, as now in use, consist of nine series and ninety-two dedominations. They require for their manufacture ninety-three dies, and ninety-three rolls, and one hundred plates. Some of said stamps being double-tinted, require two plates instead of one, and two printings instead of one, thus more than doubling the expense of printing, the second printing being more costly than the first.

Let it be remembered that the law autborizing the special stamps was approved on the 3:1 of March, 1873. The stamps were required for use by the first day of the foll » wing July. The order for their manufacture was given about the 4th of April, 1873. Less than ninety working days were allowed for engraving the plates, preparing the dies and rolis, printing the stamps and delivering them for use throughout the country. When this order was receivell your petitioner regarded its exeention, within the time prescribed, as an impossibility. The engraving for one single plate, ordered for the use of the State Departinent, required the exclusive skill and labor of oue of the best steelengravers in the country for some three or four weeks. To till this order for the special stamps, it became necessary for your petitioner to set aside all other engagements, (which are well known to be extensive in the city of New York,) and to concentrate its entire force on that particular work. Its employés were worked on double time, and of course at double the ordinary rates of compensation. Only in this way could the order of your Department be complied with. The stamps were furnished within the time appointed, but at great expense, loss, and inconvenience to your petitioner.

No arrangement has yet been made with your Department as to the compensation for this extra work, and your petitioner is advised that, until some arrangement be made, it can be paid only at the rate specified in its contract for furnishing the general stamps, to wit, fourteen cents and ninety-nine hundredths of a cent per thousand.

The object of this petition is to present the case fully and fairly to the consideration of the Postmaster-General, with the view of having it adjusted on principles of eqnity, justice, and law.

Your petitioner admits that the language of the contract entered into between your petitioner and your Department in January, 1873, is broad and comprehensive in its terus. It binds your petitioner to furnish all the adhesive postage-stamps required by your Department during the term of four years, commencing on the 1st day of May, 1572.

Under that contract your petitioner recognizes its obligation to keep in repair the dies, plates, and rolls intrusted to its care by your Department, and to renew the same whenever required. Also to engrave and furnish new designs for stamps, should now designs be ordered ; and for new denominations of stamps, should new denominations be required to take the place of the series of stamps in general use by the public at the date of the contract.

But your petitioner respectfully suggests that all these obligations have reference to the general stanips in use in the Department on the 12th of December, 1872, when you advertised for proposals, and on the 25th of January, 1873, when the contract was signed, sealed, and delivered.

The special stamps, which were rendered necessary by act of Congress passed and approved after the execution of the aforesaid contract, were not designed to take the place of the general stamps in use when the contract was made; they have not taken their place in any sense of the term. The general stamps are still in use, and the obligations resting ou your petitioner to furnish new designs and new denominations of stamps, to take the place of the general stamps in use when the contract was executed, are as binding on your petitioner to-day as they were on the 25th day of last January.

It may be argued, and probably will be argued, that the Postmaster-General, iwder the contract of January, 1873, las full power and authority to order rew denomina

a

tions of stamps to an unlimited extent, and that he might require a hundred or more additional denominations.

But it is not reasonable to suppose that the exigencies of the Post-Office Department will require such an increase of the general stamps during the contract term. Nor is there any reason whatever to believe that an arbitrary order for such increase wonld be given when the stamps were not actually neeiled; nevertheless, it your Department should require your petitioner to prepare dies, plates, and rolls for a hundred or more new denominations of the general stamp, the order would come within the strict provisions of the contract, and your petitioner would yield willing obedience to the demand. Even in a case of that kind, bowever, unless the new stamps were ordered in numbers sufficient to defray the increased expense, and to allow a reasonable profit to the contractor, there would be great equity and justice in an application for increased compensation.

But the special stamps do not come within the spirit, intent, meaning, or purview of the contract. They were unkuown to the law when the contract was made ; they had no existence at that time; they were not in use, and never had been in use, and there was no reason to believe that their use would be reqnired during the existence of the contract. Until the franking privilege was abolished there was no occasion for their use, and until the law of March 3, 1873, was passed and approved, the PostmasterGeneral had no authority to order the said special stamps for the Executive Departments. That they are of great utility and value to the Government in preventing a complication of accounts, and in frustrating frauds which might be perpetrated in evasion of the postal laws and regnlations, cannot be questioned ; otherwise, why were they provided for by special act of Congress ? And why were not the general stamps then in nse throughout the country for the accommodation of the public, also used instead of the special stamps for the Departments ?

Your petitioner is very certain that in its proposal under your invitation for furnishing your Department with the general stamps no estimate was made for furnishing the special stamps; that expepse did not enter into the calculation; there was nothing in your advertisement to call it forth; it was not mentioned or contemplate by either party to the contract, even at the time the contract was signed, sealed, and delivered.

Your petitioner, therefore, believes, and, so believing, assumes, that the expense of furnishing the special stamps cannot be regarded as coming within the provisions of the contract.

If this assumption be correct, your petitioner is clearly entitled to a fair and just remuneration for the materials used and for the work performed in furnishing your Department with the special stamps. Its claim rests upon a quantum meruit; and as to the value of the work and the amount of compensation deserved, your petitioner begs permission to present a few suggestions.

Allusion has already been made to the circumstances under which the special stamps were ordered, and to the unavoidable expense incident to having the dies, plates, and rolls for a hundred different denominations of stamps engraved and furnished, and the stamps ready for use, within the period of ninety days.

Your petitioner may further add that, under its contract to furnish the general stamps for the use of your Department, it is required to manufacture said stamps in a fire-proof building, and in apartments separate and distinct from those in which any other work is performeil

, and when finished, they are to be placed in a fire-proof and burglar-proof safe or vanlt, and each denomination to be kept in a separate apartment. That such safe or vault was furnished with the necessary divisions for keeping the eleven denominations of stamps in use when the contract was madle: and, assuming that your Department would require as much particularity for the safe-keeping of the special as the general stamps, when the order for the special stamps way received, your petitioner remodeled the saiii sate or vault, and cansed it to be divided into over a hinndred apartments, instead of eleven, and thus furnished ample accommodation for the safe-keeping of the special as well as the general stamps. All of which was attended with great additional expense.

And, in general terms, it may be said that every portion of your petitioner's business, connected withi furnishing stamps for the Government, bas been enlarged and rendered more expensive by the introduction of the special stamps. Soine portions of it have been increased as much as nine-fold, and other portions four-fold. The whole has been angmented, rendered more complicated, more cumbersome, and more ditticult to systematize and keep in perfect order. Especially inay it be nirged that the designs for some of the special stamps are more elaborate and more expensive than the designs for the general stamps. That the engraving of the vignette for one single stamp for the use of the State Department cost your petitioner over $500, this expense being in. dependent of the cost of the plate, and of other work incident to the engraving; and yet, notwithstanding this heavy expenditure, the State Department will probably not require over a thousand stamps of this denomination during the coutract term of four years, for which your petitioner will be entitled, if allowed according to the contract

rates for furnishing the general stamps, to fourteen cents and ninety-nine one-hundredths of a cent, and no more.

At the close of the fiscal year, on the 30th of last June, there were thirty-three thousand two hundred and forty-four post-ottices in the United States. Of this number, about twenty-three thousand are known as offices of the fifth class, which, on an average, require not over a hundred of the special stamps per quarter. By order of your Department, these stamps are forwarded to the different post-offices in an envelope separait from the general stamps. Each envelope costs your petitioner a fraction less than two cents; whereas, at the rate established for furnishing the general stamps, the whole amount your petitioner can receive for the stamps incloser in that envelope is about a cent and a half. As applicable to a single package of a hundred stamps, this deficiency is insignificant, but when it is remembered that at least four packages are forwarded every year to each of the 23,000 post-offices of the fifth class, the item of loss becomes one of considerable magnitude.

In toe contract between your Department and the National Bank-Note Company, which expired only few months ago, there was a proviso that never less than two hundred stamps should be inclosed in a package. This is a judicious provision, which, bowever, for some cause unknown to your petitioner, was omitted in its contract with your Department.

Your petitioner would further suggest that there is no profit to a contractor in furnishing postage-stamps for the Government at the rate of fourteen cents and ninetynine ove-hundredths of a cent per thousand, unless the stamps are required in immense numbers. A large issue is necessary to defray actual expenses. The proposal of your petitioner to furnish the general stamps for your Department, ou your invitation of December 12, 1872, was based on the assumption that seven hundred and twenty million seven hundred and fifty thonsand of' said stamps would be nised each and every year, and that the number required during the contract-term of four years would aggregate two billion eight hundred and eighty-three million, and on the further as suun ption that the dies, plates, and rolls for furuishing these stamps belouged to the Government, and would be placed in the custody of your petitioner, to be used, free of expense, in the manufacture of said stamps.

With all these advantages, it must be admitted that the offer to furnish the said

tapi jis at the rate of fourteen cents and ninety-nive one-hundredths of a cent per thousand was exceedingly low, and very favorable to the Government-only a little more than one-half the rate at which stamps of the same series had been furnished under the contract then about to expire. This will more fully appear by reference to the following statements, taken from the records of your Department:

Postage-stamps issued to postmasters under contract with the Vutional Bank- Vote Company.

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Postage-stampe furnished by the Continental Bank-Vote Company for the quarter ending Sep

te mber 30), 1873, this being the only full quarter for which stamps hare been issued by this

company, (special stamps excluded.) Number of stamps issued..

140, 820, 835 Amount paid for them, at the contract-price of$14.99 per 1,000.

$21, 109 04 Taking this quarter as the average, and allowing for the remaining quarters of the year at the same rate, and the annual cost of furnishing the general stamps under the present contract will amount to $84,436.16, as against $102,145.43 under the former contract. It is true that the dies, plates, and rolls now in use were furnished by the former contractors, but all other expenses remain about the same, and, of course, there mu-t be a corresponding diminution of profits to the present contractors. This is stated, not in the spirit of complaint, but by way of illustration.

The number or special stamps which will be required annually or during a term of four years cannot now be determined with accuracy. Having so recently been

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