New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-04-17
II Ia understood that these points VIII be matters Of In
yestiRation.
THE DISTRICT CONTRACT SYSTEM.

THE DISTRICT CONTRACT SYSTEM.
THE RINGS METHOD Northumberland
FOR CONTRACTS NOT INvITED-GREATER TX
PENsE OF THE SYSTEM
IRON REGULAR CORRESPONDENT OF THE TRIBUNEl
WASHINGTON. April 16.-In report recently made
to the Commissioners of the District, Lieut.. Hoxie
the engineer in charge of street improvements in
Washington, defends the method of establishing
rates for contract work instead of throwing 1t open
TO competition, as has generally been done in other
cities He says:
The advantage this establishment Of Board rates for
the contract work is that it enables the assignment Of
work to capable and responsible men, who have good
fact dspnses with most OF the objections to the contract
system.
This language is almost identical with that used
by the old Board of Public Works Ring IN defending
the same system In the report of the Board for
1872 the Board said:
In the ontsct IL determined that would be better
all parties concerned TO establish scale Of prices at
which work shOud he DONE and to award contracts at
paid only for actually DONE would have mter ST
in defraudng their employers The result OF this plnn
sfactOry BY general advertising bids received for
all classes and DESCRIPTIONS o. improvements ne prices
fixed based the information thus derived ana
the rates paid in other cities. and the work was awau
those rates The character Of tho work performed has
demonstrated coHcusivey that this Is the most cconom
zeal and efficient means OF prosecuting such undertR-
ngs IL prevents straw bids and contracts 20 irrespCn
sbe parties who would otherwise harass and retard the
Board in their operations either by Cling ont by
ferng extra or imaginary claims 10 secure more Than
fair equivalent for the services rendered
If this theory had not been fully exploded, Lieut.
Hoxie wonld be excusable for having adopted the
plan he chose. Bnt the method of awarding con-
tracts subject to which the Special Investigate
ing Committee of 1874 gave especial attention I;
numerous witnesses were examined upon IT, and,
after having heard both sides, the Committee pub
lshed its conclusions in the report which it made 10
,llo fl,at r,,rt
will show what those conclusions were:
Taking into consideration the expense involved in the
comprehensive plan before referred to- and enlarged az
adopted erroneous and in It's results vicous method
Of letting contracts for this work, viz. without conIl-
ton omen the public and that the method adopted hy
the Board resulted in the payment az increased price
and above what would have been paid open fair,
and free competition had been invited.
The experience of the District under the nd in
ierin government of the Commissioners has been
the same as under the old Board of Public Works.
Then contracts for the most remuneTaiye work were
awarded to men who were the flvOries of the Ring,
and who not only did it in shabby manner, hut
have universally failed to keep it IN repair rs they
were required to do by their contract, while they
have successfully pressed upon the Board of Audit
many unjust claims for extra work, damages, dc.
The same men have been doing the work under the
present engineer.
The following extract from the letter of Lieut..
fIOxe, already quoted, will illustrate some oil the
defects of this system. In Speeding of the cost OF
building main sewers the engineer says:
In he manuscript OF my report Of Nov 80 1873, was
gwen the following summary Of main sewer rates which
should have appeared page 1913 Oi the printed r0r
Commissioners OF Dec. l, 1870, but which has,
through some inadverIence, been omitted:
MAIN SEWER RATES.
The cost OF TIE work obtained by detailed estimate
OF it's excavation and masonry, viz:
Rates for bricks az
Rates for s Ito for i6 feet deep and less
Ard for all 10 feet deep per cable yard ~
Snoring Ies OK
second An addition OF 10 per centum for contlnscu-
cies.
Third: further addition OF - feet per oentum
count OF the mar ner OF payment
These rates are the as those paid by the late
Board of Public Works, and to them more than 80
per cent is added for contingencies and method Of
payment. For instance, the item for excavation
deeper than 16 feet, II cents per cubic yard, was
computed by finding the cost of the work at far
price, and then adding per cent for contingencies
and 10 per cent for the depreciation of sewer bonds
IN which payment was made. The depreciation OF
the 50 bonds which the contractors have received
during the past year. has never been greater than
that of the sewer bonds was in 1878 and o7I. 80
that while labor has been cheaper Lieut. IloXe has
actually been paying over 32 per cent more than
the late Board Of Public Works did for the same
work. And this las been done under the syetem
that was deliberately condemned by Congress neatly
two years ago.