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These are the last regular issue stamps printed by the American Bank Note Company. Although similar to previous issues, they are smaller and different in their shades of color, introducing the look and style of U.S. definitive stamp issues for the next 50 years. The old contract had expired in 1889 and sealed proposals for the next contract was requested by the Third Assistant Post General. The bid requested stamps that were to measure 1 by 25-32 inch, and a smaller size, measuring 3/4 by 7/8 inch. An important change, from previous bids, was that the color of each of the several denominations of stamps was prescribed by the specifications, with the purpose of preventing arbitrary and unnecessary changes during the existence of the contract. Samples of the stamps in the selected colors, appropriately cancelled, were attached to the specifications and blank forms of proposal furnished to bidders. In response to the advertisement two bids were submitted, one by Mr. Charles F. Steel, of Philadelphia, and the other by the American Bank Note Company, of New York, the old contractors for furnishing stamps. Charles F. Steel had been a supervisor with the National Bank Note company and is the inventor of the grill process.
In response to the advertisement two bids were submitted, one by Mr. Charles F. Steel, of Philadelphia, and the other by the American Bank Note Company, of New York, the old contractors for furnishing stamps. The bid of Mr. Steel amounted, upon the basis referred to, to $155,017.39 for stamps of the larger size, and to $151,489.06 for stamps of the smaller size printed on hand-roller presses; to $124,642.36 for stamps of the larger size. and to $122,094 77 for stamps of the smaller size printed on steam-power presses on which a part of the work is done by steam and a part by hand; and to $120,723 for stamps of the larger size, and to $117,587.51 for stamps of the smaller size printed on all steam-power presses The bid of the American Bank Note Company was for printing the ordinary stamps on steam-power presses only, and for the remaining kinds of stamps on hand-roller presses only, and the totals were $158,033.87, comprehending ordinary stamps of the larger size, and $148, 215.47 embracing ordinary stamps of the smaller size. The difference between the amount of this bid and that of Mr. Steel for stamps printed on all steam-power presses was $37,310.87 for stamps of the larger size, and $30,647.96 for stamps of the smaller size.
At the opening in public of the bids, a protest was made by the American Bank Note Company against the award to Mr. Steel, on the ground that he was not eligible as a bidder under the terms of the advertisement restricting the bids to steel-plate engravers and plate-printers. This protest was shortly afterwards withdrawn, and, preliminary to an award, Mr. Steel was, upon the 1st of August, called upon to demonstrate his facilities for carrying out the contract. Though not engaged in the business, and being unprovided with a plant for printing and engraving, he promised to procure all the necessary equipment and material in time to manufacture and begin the delivery of the stamps on the 1st of October, or shortly thereafter. The specifications called for a fire-proof building in which to manufacture and store the stamps, but though called upon repeatedly to do so, Mr. Steel failed to submit for inspection suitable premises for the purpose. He offered only one building, though promising a choice of several different ones, and that building utterly failed to meet the requirement. The award was consequently withheld, and it becoming evident that Mr. Steel was either unwilling or unable to comply with his proposal, the Postmaster General, under date of September 11, 1889, issued an advertisement calling for new proposals for a contract for the four years commencing December i, 1889. At the same time provision was made for a temporary supply of stamps for the interval between October 1 and December 1 by calling on the American Bank Note Company to furnish a specified number of stamps, under the provisions of the contract giving the right to order an extra quantity not exceeding a three months’ supply.
At the time appointed for closing the receipt of the new proposals, on the 26th of September, two bids were submitted. One was from the Franklin Bank Note Company and the other was from the American Bank Note Company, both of New York. The bid of the Franklin Bank Note Company amounted, on the basis of the quantities specified in the previous advertisement, to $163,904.82 for stamps of the larger size, and to $163,904 82 for stamps of the smaller size, printed on all steam-power presses, and the bid of the American Bank Note Company amounted, on the same basis and for the same class of work, to $157,641.93 for stamps of the larger size and to $149,215.31 for stamps of the smaller size. The bid of the American Bank Note Company was $391.94 less than its bid under the former advertisement for the larger stamps and $979.84 more for the smaller stamps.
Subsequent to the receipt of these proposals another call was made by letter of the Postmaster-General, dated October 8. upon Mr. Steel to comply with the requirements of his bid submitted in July, and he responded on the 12th of October by declining to proceed further in the matter. There appeared to be no alternative but to make a selection from the other bids already received, especially in view of the fact that, through the time lost in the endeavor to induce Mr. Steel to comply with his proposal, the Department had exhausted its resources for obtaining temporary supplies of stamps. The contract was therefore, on the 23d of October, awarded to the American Bank Note Company under its bid received on the 17th of July (it being the lowest of all the bids, except that of Mr. Steel, received under both advertisements) the award being made for ordinary stamps of the smaller size. No hesitation was felt in awarding the contract for stamps printed on all steam-power presses, the work having been satisfactorily done by that process during the preceding four years. As already shown, the successful bid amounted, upon the basis of the number of stamps issued during the year ending March 31, 1889, to $148,235.47. This amount was $9,406.46 more than the cost of corresponding kinds and numbers of stamps under the previous contract. It is to be observed, however, that under the terms of the new contract, the cost of preparing dies, rolls, and plates for new designs of stamps, or for additional denominations, is to be borne by the Department, while under the previous contract, the contractor was required to make these changes at the discretion of the Department and at his own expense; and, moreover, that by the new contract the two-cent stamps, constituting by far the greater portion of all the-issues, are printed in much more expensive color than formerly.
The contract was duly executed, and it being found impracticable to prepare stamps of the new designs prior to December 1, arrangements were made with the American Bank Note Company by which stamps of the old style were to be furnished at the old contract rates until such time as the new stamps should be ready for issue. The issue of the new stamps was begun in time to place them on sale at the leading post-offices on February 22, last.
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