New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-03-19
TIE METHODS OF CANAL FRAUDS.

TIE METHODS OF CANAL FRAUDS
STEALING BY CONTRACT MADE EAsY-THE SYSTEM
or UNBALANCED BIDs-vARIATIoNs UPON THE
PRINCIPAL DEVICE or THE CoNTRACTOIs-A
MANUAL FOR YOUNG CONTRA CTORs.
IRON TIE REGULAR CORRESPONDENT OF THE TRrBUSE.l
ALBANY, March lS.-The machinery of canal frauds,
which Gov. Tden's message isexpected to denounce,
is SO simple that may be made plain TO the man
who dctests facts and abhOrs figures as to the man
who thinks arithmetic the most charming OF prose
and holds a bank statement as high as al epic
poem.
Repairs on the canals in the course Of which these
frauds are committed, are of two kinds-Ordinary
and extraordinary. The ordinary repairs merely
make good the usual wear and tear of the canals:
the extraordinary repairs consist of new work
II all kinds-enlaTgepents, new structures,
new cmbanlnents new walls &c. The
ordinary repairs are paid for out of the
revenues Of the canals; the extraordinary are ad-
ger..sed 10y the Board of Canal Commissioners and
et to the lowest bidder being paid for by direct
aNation. The bids are in accordance with tab
ulI- statement OF the work to be done, called the
quantity sheet" which is prepared by the engineer
10 charge OF tie division of the canal on which the
r-oposed repairs are to be made, and which IS by
law required to represent as nearly as practicable
the actual amounts of work which must be per
foilneI-a requirement seldom complied with.
The mod,s operandi of the canal contractor Is as
follows: The advertisement of the Canal Commits
sioAers calls say for 5000 yards of slope wall, which
cannot be built with profit for less than 81 70
cubic yaId; the contractors bid is so cents The
Commissioners call for hundred yards
of vertical wall in cement. which ca be
built for from So to So 80; the contractor bids
Sc The Commissioners call for 1000 feet board
measured of white oak, which is worth $40 per
thorsand feet; the contractor is willing to fur
nish it at so. The Commissioners call for 1909
feet Of WHITE pine, worth $50 per thou
sand: the contractor bids $5-he probably
exrccts to furnish little or none. The Commits
soners call for $1,000 feet of hemlock, worth $2O;
th contractor bids So, either not expecting TO fur
pish any or hoping to reap so rich harvest from
cheap articles for which nc has bid high price that
his loss on this head will be his gain on another.
For the sake of cearneSs, let this comparison of
few leading bids be made, in which the honest bids
are put al ratherlow prices, to give the contractors
bids the advantage Of as much doubt as possible:
THE HONEST BID
5000 cubic yards slope wall at 81 rs .......ssd5O
TO- cubic wards vertical wall At 50 VO...--.- 500
1900 feet white oak al $40 per 40
s0ofeet hemlocK al 81 per M................ 1000
Total.
THE CONTRACTORS BID.
5000 cubic yards slope wall at 80 cents ,oO
100 uDc yards vertical WALL III cement, al SG COO
100 feet whi;e oak at $40 per M-...-...-..... ~
500 fct pine a. IS per ACKNOWLEDGEMENTS. 20
$1,000 oei hemecA a. Ioo
1Otul S<'of'
The total of the contractors bid is $1,000 lower
than that of the former, and he receives the con-
ct. and if it Is fulfilled as such contracts usually
Ms, will realize a handsome profit. He has
agreed TO builG i's" cubic yards of slope
wall at 30 cents. and 100 cubic yards of
vertical wall IN cement at Sc cubic yard if he
follows the example of contractors from time imme-
mortal he VIII make all the wall vertical and rem
der bill for 5,lOO cubic yards Of vertical tcdH at Sc
cubic ydrd, making $4,000; so that this one
Item COSTS thiee tlmes what the honest bidder would
have asked Tor the wnoie contract. Also instead of
furnishing the various amounts of white oak. white
pine, and hcmlock, the contractor under the same
system, would furnish or claim to have furnished
the total amOunt-56,0OO feet--in white oak for
which he is to be paid $40 per 1000 feet and which
is worth only $40 Instead of receiving then
$245 for oak, R.ne and hemlock at the stipulated
price. lie would be paid $500, exactly
sixteen times much, or two-ffths of the sum for
which the honest bidder would have been willing
10 perform the entire contract. These figures are
mainly imaginary, but they are adapted from con-
tract w pending and awarded within six months
is Cd " TO conclude whether any injustice has
been done to the contractor by the differences just
made, from the fact that competent engineer. who
has within a few days made careful ex-
animation of the manner in which this con-
"act IS being carried out. reports that the
excavations are being made as to provide for the
construction of vertical walls, indicated above
a$6a yard.
ihls is the whole alphabet Of canal fraud-a sys-
m OF unbalanced bids. Items of which the con-
Mt 10 x,r,f ab 1ao
a 'or IN large Quantities and at low price items
"neb he knows viii make 10 most Of the contract no