The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-11-24
HOW Is NEW YORK GOVERNED

The Street Commissioners Department.
TnE CONTRACT SYSTEM AND IT'S EFFEcTs-Aks
JENKINS AND MR.. sNKINs-THE WAY THE wOKA
OF THE DEPARTMENT Is PERFORMED, Etc. Erc'
We have already presented statement to the
public Of the financial condition Of our city govern
ment and of the total yearly expenditures OF the
various departments. It il also our intention to
give an account of the detailed expenses of each,
and Of the manner in which the business of all are
conducted, with an exposition Of the evils Of the
present system of making contracts. This is reu-
dered more particularly necessary from the defective
and unsatisfactory accounts rendered by the nan-
cial department. We commence with that of the
Street Commissioner which we regard as one of the
most important under the city government.
The law requires that he shall before entering
upon the duties Of his office, execute bond to the
Corporation with at least two sureties, to be ap
proved by the Mayor and filed in the office of the
Comptroller, in the penal Of ten thousand dollars
for the faithful performance of those duties. His
Office extends over all contracts for work of any
hind relating to the opening regulating and paving
OF streets, the building and repairing of wharves
and PIERS the digging and construction Of wells the
making Of public roads when done by assessments
the Improvement of public lands or places, and the
done in his department is payable by the warrant Of
the Comptroller, drawn upon his requiston against
the appropriation made for that purpose He is also
requested to keep strict account Of the work per
formedin his Office, and to report to the Common
Council what improvements repairs are necessary
and the best mode of making them. The first
Thursday of every month he must render to the
Comptroller full statement under oath of the re-
cepts and expenditures of his department. and is
invested with the authority to countersgn all bills
which, in his judgment, are correct, for building
erecting, altering or repairing the public wharves
and piers, and which may be certified by the Super
intendent of Whaves. In addition to this he has
the control and direction of the expenditures con
nected with the Bureau of Lands and Places. These
comprise the principal duties Of his Office, but there
are many minor details which are not necessary to
repeat here.
To show the extent of the business of the
Street Commissioners Department, it is only ne
cessary to state that during the last six months
OF the year 1854 the expenditures of that Depart
ment amounted TO $73l 297, or about onefourth the
whole expenses of the city government. This is an
immense sum, and, if properly expended, would be
attended with the most beneficial effects to the city
OF this amount, however, not more than one-fourth
ut the utmost is devoted to the purposes required by
law-the remaining three fourths finding its way
into the pockets Of Office holders connected with the
department, contractors and other outsiders en-
ployed to do the work. The Office of Street Com
missioner is, in fact of the most lucrative con-
nected with our mi ncipal government; and it's out
lays, as the Mayor rightly says, are among the
heaviest burdens our citizens have to bear. The
salary of the principal o1icer--the Street Commits
sioner-does not exceed 81, 500 year and yet, in
the course Of single term of three years. it il said
that as much as 800 900 have been realized This
10 obtained in various ways, but principally by the
contract system, which is one Of the greatest
sources OF corruption that aifcts our people. To
the uninitated it may appear to be the most
economical that could be devised, and when
it was first proposed its economy was its
principal recommendation. 1t was never sup
posed that where there was fair competition be-
tween the bidders, and where each was interested
in reducing their estimates to the lowest possible
amount that there could be any opportunity for
collusioD. Not Satisfied wi h this security all the
terrors Of the law were suspended over the heads
all who should be detected directly indirectly in
obtaining contracts by fraudulent means. The pen
atty imposed was ten years imprisonment in the
State prison, and not less than IS, 900 fine.
This, however, instead of acting as preventive,
utterly Intellectual, and its very severity threw
around the guilty parties sort OF protection Both
the officers Of the government and the contractors
being lcagued together and both being therefore
equally criminal, 1t became the interest Of each to
preserve the others secrets; and profoundly have
they been kept, that among all the charges
OF corruption, not one has ever been made by the
latter. The system OF making contracts and the
coluson between officials has been already exposed
by the Mayor, but we will again refer to it, for the
enlightenment Of our readers, and particularly those
who are owners Of property in New York. We will
suppose q case in which the Corporation has adver
tised for proposals to perform work for the city.
which, at q rough calculation, is valued at fifty
thousand dollars the work to be given to the lowest
bidder Four bidders send in their proposals ut the
following estimates;-
First bidder. $40 900
oe :ond 40 4),ooo
Third DO. Observation-Disclosures. 5OO0J
fouith DO. ................,......'. oo,oVo
According to law, the contract must be awarded
to the person who offers to do the work for $4,000;
bat when it is placed in his hands he refuses to
ccpt it, on the plea, perhaps that his estimate Is
incorrect, and that he would be loser by un.
dertaking the work. The next lowest bidder
is applied to in this emergency; but he also is
willing to incur the risk, and on offering 1t to the
third he has similar excuse. In this way the con.
tract generally falls into the hands Of the highest
bidder who realizes 500 at least by the bargain
il must not be supposed however, that this all falls
&c him, or that nobody else has claims upon it, The
twenty thousand has to be divided among the other
three bidders, who withdrew their claims TO the con
tract in consideration of his making an equal dyi
sion Of the spells. Then IL is said portion also
goes TO the worthy official himself who Is supposed
not only to I've cognizant Of the agreement under
standing between the parties, bat who is perhaps
The most active among them. Now it may be urged
that there IL law TO prevent bidders from backing
sut after they have made their proposals by com
pelling then, on their refusal to execute the
contract. TO pay any difference between the