THIRTIETH CONGRESS—SECOND SESSION.
Report No. 49.
HOUSE OF REPRESENTATIVES.
GUION AND McLAUGHLIN.
January 25, 1849.
Laid upon the table.
Mr. Goggin, from the Committee on the Post Office and Post Roads, made the following
REPORT:
The Committee on the Post Office and Post Roads, to whom was referred the petition of Guion and McLaughlin, report:
Report No. 49.
HOUSE OF REPRESENTATIVES.
GUION AND McLAUGHLIN.
January 25, 1849.
Laid upon the table.
Mr. Goggin, from the Committee on the Post Office and Post Roads, made the following
REPORT:
The Committee on the Post Office and Post Roads, to whom was referred the petition of Guion and McLaughlin, report:
That the petitioners, on the 26th November, 1844, entered into separate contracts
with the Post Office Department to carry the mail in two-horse coaches, the former
from Raleigh to Fayetteville, North Carolinia, the latter from Fayetteville to Columbia, South Carolina, at the rate of $60 per
mile, making the aggregate sum of $12,340 per annum, with the privilege of ordering
the great mail on the routes, at $41,120 per annum; that, on the 3d December, 1844,
the great mail was ordered on the routes, and, on the 6th of February, 1845, the great
mail service was annulled, and two months’ extra pay was allowed on the amount saved, viz: $28,280, being the difference between the great
mail service and the ordinary service. It is, however, unusual to allow more than
one month’s extra pay when a route is reduced. In the copy of the contract with Guion,
filed with the papers, too, there is an express stipulation that “the Postmaster General
may discontinue or curtail the service, he allowing one month’s extra pay on the amount dispensed with.”
In this case, however, there was two months’ extra pay allowed on account of the peculiar service and the large outlay and expense to be
incurred to stock the routes. According to the universal rule of the department, the extra pay was cast on the amount saved or dispensed with, viz: $28,280. The contractors claim it on the whole amount of the cost of the great
mail service, including the
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ordinary or original service, which was still continued, and for which there is no pretence
that they failed to get their pay. The amount allowed was $4,713 33; the amount claimed
was $6,853 33; difference $2,140. This is the issue presented. The committee are unanimously
of the opinion that there is no ground for the passage of a bill to add to the compensation
of the contractors, who have already received, or had awarded them by the Post Office
Department, more than they were entitled to under their contract. In further proof
of this position of the committee, they refer to the petition itself, which admits
that the petitioners knew, when they entered into the contract, that it would eventuate
finally (as it in a few weeks did) in a restoration of the original service only.
They present the petition therefore as part of their report, and recommend that the
claim be rejected.
To the honorable the Speaker and members of the House of Representatives:
The petition of E. P. Guion and B. McLaughlin,
The petition of E. P. Guion and B. McLaughlin,
Respectfully shows:
That, on the 26th November, 1844, they entered into separate contracts with the Post
Office Department to carry the mail in two-horse coaches, the former from Raleigh
to Fayetteville, North Carolina, and the latter from Fayetteville to Columbia, South
Carolina, at the rate of $60 per mile.
The Post Office Department shortly afterwards got into a controversy with the Wilmington
Railroad Company, on account of the sum demanded for carrying the great southern mail
on that route, and made a new contract with your petitioners to increase the service
on their route to four-horse coaches, at the rate of $180 per mile. This last contract
is dated the 1st January, 1845, and was annulled, and the service discontinued on
the 7th of February, 1845. The Wilmington Railroad Company having been brought to
terms by this contract with your petitioners, reduced their demand $25,000 per annum,
which sum was thereby saved to the department.
Your petitioners were aware, at the time of entering into this last contract, that
it was only intended to force the Wilmington Railroad Company into more favorable
terms; and that said company were to be forced to reduce their demand; and that the
contract with your petitioners would then be annulled; and that, in the meantime,
they would be greatly losers by the large outlay for horses, coaches, drivers, &c.,
&c., and they therefore stipulated that if, at any time, the route was again reduced,
that they should be allowed two months’ pay extra to indemnify them.
As they anticipated, in less than five weeks their contract was annulled, and they
were left with this large and expensive stock on their hands. When they applied for
the two months’ extra pay,
E. P. GUION,B. McLAUGHLIN.<Page 3>
the Postmaster General refused to allow them more than $120 per mile, the difference
between the two-horse and the four-horse service. That the latter was the true understanding
of the contract, your petitioners would call the attention of your honorable bodies
to a single fact. When they were negotiating with the department on the subject, and
expressing their fears of loss if the larger service be discontinued, Mr. Dundas,
an officer in the department, made a calculation in figures, which is now in the department,
in which he estimates the two months’ extra pay at the rate of $180 per mile, as now
contended for by your petitioners, (and it was upon the faith of that calculation
that they entered into the contract,) which they pray may be appropriated for their
benefit.
Mr. Dundas, of the Post Office Department, will verify the above statement if applied
to by the committee.
Printed Document, 3 page(s), Volume 76, RG 233, Entry 345:
Records of the United States House of Representatives, Twenty-Ninth
Congress, 1845-1847, Records of the Office of the Clerk, Record Books,
Printed Reports of the Committee on the Post Office and Post Roads