Knoxville weekly chronicle. [volume] (Knoxville, Tenn.) 1870-1875, 1874-02-18
The Cincinnati Southern Road Contracts.

A correspondent of the Cincinnati Ilmct
has been interviewing the contractors whc
have been awarded work on the proposed
Southern road. He complains that the
| Trustees have forced contractors to accept
work too low, and that the road can not be
build for less than $4,000 per mile The
interview runs as follows
Responsibilities what conditions were
these bids made?
COntractor-The Trustees agree to pay
the contractors in money or bonds mt par
on monthly estimates, retaining 20 per
cent of said estimates until the work was
completed. They also reserved to them
selves the right to reject any or all bids.
Reporter-What obligations were re
quired of contractors?
Contractor-They asked for no security
for the faithful performance of work, ex-
cept the 20 per cent. to be retained from
monthly estimates.
Reporter-Do you think it satisfactory :?
Contractor do not. The work has
been let at rates so low that the contractors
will be unable to complete the work
awarded them. All contractors know
what il will cost them TO remove a yard of
dirt. If they agree to do it for ~ cents,
when it will cost them % cents, you may
rest assured that they will never complete
their contract. These are precisely the
terms upon which the contracts for the
Southern road have been awarded. In fact,
the contractors propose to do work worth
not less than dollar for which they will
receive only 80 cents.
Reporter-What would induce them to
accept work on these terms?
Contractor-LabOr is in a depressed state.
They expect to obtain hands at Sl.25 per
day, when before early spring labOrers
will be in demand at from S1.75 to $500
per day. These contractors have made
their estimates on labor at Sl.25 per day,
but any man experienced at all in supply
and demand of railroad work knows that
labor is the boss of contractors. Now, in
these calculations, what can be expected
since prospects for q demand of labor are
Frightening? There will be plenty of
work on railroads at higher rates, and
these enterprises will take laborers from
that same supply to which the Southern
railroad contractors look. Right within
easy reach of this supply are the works of
double tracking the New York Central,
Erie, Canada Southern, Pittsburg, Fort
Wayne and Chicago, and the extension of
the Erie, to he known as the Chicago and
Atlantic, besides the extension of the Bal
timore, Pittsburg and Chicago. To this
may be added the proposed extension of
the Chesapeake and Ohio to Louisville and
st. Louis. There are other enterprises of
credit, and which are bound to be built,
that by May will make great demand for
laborers.
Under this state of affairs, it will be inns
possible for the contractors to fulfill their
promises at the rates at which they have
received the work. The Trustees must
either advance their prices, or the contrac-
tors will give up their agreements, and SUBJ
ject the Trustees to reletting the contracts.
The contractors can easily do this, for un-
der the specifications OF their award they
have nothing to lose. They can afford to
let the 20 per cent. go. AS to the enter
prise as it now stands no one is responsible
for anything. The contractors can come
over, get money on their estimates. secure
their labor for awhile, and when prices
advance, throw up the contracts, pocket
the money, and leave to the Trustees au
unfinished work, Indebtedness for sup
plies, and annoyance from unpaid laborers.