Evening star. [volume] (Washington, D.C.) 1854-1972, 1874-05-12
THE DISTRICT INVESTIGATION.
Proceedings Of the Joint Congressional Committee



Joint Special Committee investigating District
affairs closed yesterday, the examination Of
Governor Shepherd was continued. The Gov
ernor, in answer to a question, said: We never
had any purpose of awarding contracts to the
lowest bidder. The idea of the board was to
yet such information as was sttainable, and t.
use their best judgment in doing this work. As
regards awarding work TO the lowest bidder
had we ate pied IL In this city the streets woud
have been torn up. aud we would have been ia
state of chaos and ruin to-day. Tbs only way
IN which improvements such as we have abe
here could he carried out was by giving the
work to responsible parties, and holding them
to strict accountability.
Q. Do you not, in view of the testimony in
this case, think that you would have ESCAPED
and the board would have escaped, from the
embarrassments caused by the letting of con
tracts TO DE Golyer & McClellaud, If contracts
had been let to the lowest bidder after public
advertisement? A. No, sir; L do not think So
think we would have been at the mercy OF any
combination that mighG have been formed As
it was, we retained control of the work. While
the DE Golyer & McClelland matter isone OF
these things incident TO any extensive improve
ment, think that they are the sufferers by the
transaction, not the District. The bitter wa.
bit.
Q. Do not you think that If they had bid
without feeling themselves under the oblig alton
to make these arrangements which involved the
expenditure Of such large sums Of money that
they could have bid at a price less the bonus
they paid? A. hardly think they would have
10 nave done the WORK under the Restrictions
established by the board and undertaken to
keep IT in repair tor the time specified in the
contract.
Q. DO you think that the securities taken for
compliance with the conditions OF their con
tract were sufficient, being q chattel mort age
merely, and the entire cost-the original COST
of the property upon which the chattel mort
gage was given being only some s23 600? A.
think IL Is amply sufficient to keep their work
in order for the time specified; for three years
Q. Have not you used certificates, issued for
n
ing obligations of the District government-f0r
instance; in paying salaries? A. Tax-hen Ger
tificates?
Q. Yes, sir; used them in paying the iudebt-
edness OF the corporation? a The law au-
tborized that disposition of them.
q. Have you excepted those from the assets
that you have enumerated as still in the pos ,es-
sion OF the District government? A. The re-
port OF the controller shows that, the whole
matter, very thoroughly.
Q. Were you aware of the fact that William
A. Cook, who you say inspected the bonds-snd
passed upon their sutiiciency, at least the form
of the bonds-at the time that he was rendering
this service to the Board of Public Works was
accepting employ ment generally for contI act
ors-the various contractors who were giving
these bonds to the Board of Public Works? a
| was lot, or should not have allowed hun 10.
he would have had TO serve either attorney
Tor the contractors or as attorney for the board
MIR. ChIisty.-That is good law and good
sense.
Q. Do you know OF any instance in which
we're allowed TO purchase material that they
would use in the Improvements, from the fscGo-
ries or the first hands, and that in some in
stances, at least, they puI released at price less
than the same material was furnished TO the
board? A. know of no such instance, nor do
think it possible or probable.
q. DO you know OF any preference given 70
contractors, or those " no have held By hypothe-
cation, or purchase, certificates in the ayment
by the treasurer of the Board of Public Works?
a. do not know OF any.
O. Twill pass from that biect for q monoept
20 you know u contractor by the name Of
Laughlin or Latin? A. There are two con
tractors OF the board, one named McLaushliu
and the other Latin.
q. Have you sold property to either OF thOs,
persons? a. have sold property to Lain.
g. What al. did you rscslys? A. received Gee
q. When was this? A. The record shows I
was several months ago. The transaction was
done through Mr. Wilson, my agent.
q. What amount in certificates aud what
amount in cash did you receive? A. 1 did hot
receive dollar in cash.
q. Where was the property situated? A. on
18th street, between X and l..
q. Have those certificates been since paid?
A. They have not; l got some sewer bonds tor
come of them, which / sold at II or ~ cents on
the dollar.
Q. Was 1t part of the condition of the pur-
chase by Me-. Latin that he should receive
work under the board? A. No, sir; he had done
all his work long before he bought the property.
q. Was the transaction conducted by your
self in person? A. No, sir; by my agent; 1 had
nothing TO do with it in any shape or form, |
did rot know until the proposition was made 10
me that they were negotiating about the house
at all; L will state, in that connection, that the
proposition was made to me to take certificates;
did ii as much from the fact that it would not
do for me to repudiate District securities as for
aDv other reasOn; made nothing by it.
q. And obtained no advantage? Not a
particle. will state that all the contr acts Ia At
they had were long anterior to the date OF this
sale. 1t had no connection, in any shape o.
form, with tbs sale, and think il was 4 dis
advantageous thing TO me.
=. Have you, or any other member OF the
Board or Public Works, made any purchases
of property in advance of the public declara-
ton that Improvements were to be made, and
in contemplation OF such Improvements a.
No. sir; never, In single instance.
q. And in that you include, 30 far as you
know, every other member OF the District gov
eminent and Of the Board of Public Works
A. think may; am the only member OF the
Board OF Public Works who has oper ated in
real estate; that have done ever since have
attained my majority, and hope to continue to
Q. You have purchased real estate largely?
A. Yes, cir.
Q. DO you cay distinctly that you have done
proyements? A. Without reference to aOy
contemplated improvements. 1 would say, fur
Their, that l have sold, as appears from the
testimony OF Mr.. kilb0urD, some ground VIII Oh
l bought from Mr.. Merrick. 1 sold it at 81
cents, and il advanced within a year and hall
TO 81. If had had any intention of the kiI d
tAat WI ieiSf ", s1ouIu Certainly nave nolu
on TO il.
MIR. Merrick. cid not buy it from me- l
sold IL long since. You bought II from the peO-
pie, who purchased it from me. 1 sold the
property in lSC3.
The witness.-T knew that you originally
Owned 1t. We were speaking of IL the other day.
q. Hadn't you and the other members OF the
board personal knowledge OF the cost OF the
construction or wood and concrete pavement $
as to form an independent? A. No, sir; 1
had DO knowledge whatever. L never gave tue
subject any consideration.
q. Had you not been q member Of the Metro
politan Paving Company which hal paved
Pennsylva avenue? A. invested 81 500,
for the benefit OF my brother-in-lsw, in that
company, but knew no more about what the
profits were, or anything in connection with IL,
than did any member of this committee.
The witness in answer to another question
said, ~ was convinced, and am convinced now
that $3.50 yard for q treated wood pavement,
properly LAID, will not pay more than . fair
business percentage for laying it, and that in
the matter OF concrete pavements Ii is o very
risky business to lay them at $780," and he
then submitted o comparative statement of the
"debts, property, expenses, and public improve
ments OF American cities, compiled from OIL
The witness was then subjected to long ex-
animation as to the receipts Of the District
government and Board of Public Works, and
m ear ifg ri cntA