The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-02-26
THE MAJORITY REPORT
or the Committee Appointed to In
vestigate the State-House.
Recommendation that the Contract Be
Relet to Howard g. Denig Under
Certain Restrictions.

mttee have completed reviewing the testimony
of the witnesses examined by them, and will to-
| day report to the House. majority and a
minority report Will be Submitted. The majority
report is as follows:
| Mr.. Speaker-The undersigned members of the
| committee To whom was referred House resolu-
ton M. have had the same under cOnsidera-
ton, and wOnld respectfully report as follows:
That the COMMITTEES proceeded by the examina'
tiOn of witnesses under oath to find the differ
ences in prices of labor and material at the time
OF letting the contract and the present time: and
also TO find the average prices paid various
classes Of labor employed on the construction OF
the new State-hOuse during the years 1880, 1881
and 1882; and also the average prices of the
non OF said building during the same years.
Said committee also examined into the charac-
ter OF the work and materials used IN the work
or said building down to Jan. l, 1888.
The committee has also examined into the
changes made in the plans aud specifications,
who made the same, why they were made and
what they have cost the State The committee
has also obeyed that part or the resolution re-
curing it TO learn who the original contractors
were, to whom the contract assigned, il
anybody, who the present contractors are, and
the sutficency of all the bonds executed by the
original architect, State-house commissioners,
contractors, superntendents and present super
vising architect, together with he spopsbility
of the contractors, and also the commercial rat
ing of the firm of Howard & Denig, and of Will
liam 3. Howard, Contractor Denig's partner.
The committee has also required the STATES
Inpervisine architect Adolph scherrer,
of the amount money necessary to
to finish the new State house, ana have also ex-
amined several members of the State-house
board and the contractors upon that question,
and has further inquired into the question OF
whether the building can be completed for 49,,
100000. Upon these various questions your
committee has examined a large number of w.t.
nesses, and closely examined the various plans
and specifications together with all the changes
made in the same as well as the cost by said
changes and all other matters as provided of the
above and foregoing resolution.
an man ffan oft lnfNn C,,6
exhaustive research into all the management of
the States interest by the Board of State-house
Commissioners, would respectfully report that
their entire management of the construction and
all connected Herewith, from the time of their
appointment to the present time, has been wise,
prudent, efficient and economical, and that they
deserve great praise for the constant they
have manifested in the full performance of their
duties. Nothing less can be said of the secretary
of the board, Captain Godown, and the supervis-
ing architect, Mr. Scherrer
Your committee finds from the evidence that
the prices of material and labor entering into the
construction OF the new State-house are now, and
have been for some time, at least 20 per cent.
higher than when the contract was awarded.
We also find that the work has been done in ao-
cordance with the plans and specifications on
file in the commissioners office, the material and
design being uneXcelled.
We also find from the evidence that there have
been many changes in the plans and specfica-
tiOns found necessary by the board in the pro-
gress of the work; that all the changes have
been made by the board IN strict conformity with
the contract. We also find that these several
different supplemental contracts. at an acrual
cost to the State of $1o9, $780, 6, making the
total cost of the building, according to the origi
nal contract, Sl,7oO,4l757.
We believe that all of the said changes have
been made at a minimum cost to the State, and
THAI all of said changes have been wise and
proper
The evidence shows that the original contract
ors, Messrs Kanmacber Il Denig, are the present
contractors, but the evidence further discloses
tine fact that said Kanmaeher has severed his
lailons with the firm but has not been released
by the board OF commissioners The evidence
further discloses that one william B. Howard
now owns Kanmacher's interest in the contract,
but that he is not recognized by the board
contractor. Inc evidence, while very meagre
upon that subject, would seem to indicate that
the contractors, Kanmacher g. Denig, are not
financially very responsible.
The evidence shows that the State has, up to
Jan. l, 1888, expended 1858, 9S2.70, besides
cost of excavations, upon the building. and that
the commissioners have withheld 10 per cent. of
the amount earned by the contractors as pro-
vlded by law, amounting to 500, 17S So, making
they should complete the building S749, 461. IS.
While the evidence of the contractors showed
that they have expended upon the building
S996,3OS9S making au apparent loss of $2S7,
434. TO- this apparent loss includes The o per
cent. retained by the Board, together with all
interest upon the amounts advanced over and
above the amounts received by contractors upon
estimates for work done, well plant. ma
chlnery, etc. reducing the total loss of the
tractors on the building proper TO 100000.
In view of all the fore going facts we are of the
opinion that the State-hOuse can be built within
the amount allowed by law. if completed under
the present management of Howard g. Denig-
So, DOC, O00-but not at the contract price, 81,
1362, 2o755 lbs ov, we are t, Of the opinion
tract is reies to other contractors o sSe
building never be completed within the
$2,000,000. We believe, further, from the EVIL
denoe, that reetting to new contractors, will
retard the completion of the building at least one
year. We also find that Mr.. Kanmacher is nom
resident and insovent and that Mr.. Denig has
little financial ability and that without pecun-
larry aid he cannot complete his contract
We also find that the sureries are non-resdents
of Indiana. We also find by a commnnica-
ton from the Board of Srate-hOuse commissioners
that the contractors are DESTROYS to be released
from their contract, and that the contract be let
to Howard d Den1g. We requested the commis-
soners to furnish us with their views, which are
as follows:
"Hon Horace Heffren, Chairman State-house In
Sestgating Committee:
"Sir-Inclosed herewith is bill prepared by
the undersigned at your request, which we
think embodies about all the Legislation neces-
sary to continue the work the new State
house building and complete 1t in the least time
possible. We prefer to let the work of CONFLICT
ing the building to the present contractors, be-
cause their preparations for working are ali
ready, and there would be no delay in the prog
gress of construction. II we invite bids from
other contractors the work must be DELAYED I'M
til new plans and specifications are prepared, a
letting advertised, bids examined and contracts
made, and TO do this will consume SO much time
that the successful contractors will do little
more than to make preparations for working
before the season ends.
"Again are assured IL the present contrac-
tors continue the work that the entire cost of
the building will not exceed the limit of So, 000,-
600. If other bids are resorted TO we have no
such assurance. On the contrary. we think it
more than probable that new contractor would
require considerable increase over the So, 000,-
600. These are briefly the principal reasons
why we think 1t greatly to the best interests of
the State 10 make such a contract as we have
presented with the present contractors, if they
are willing to enter into it, Very respectfully,
yours, ETC., t. A. MORRIS,
al. ID. G. NELSON,
CIV. b. SEWARD,
Commissioners.
INDIANAPOLIS, Ind Feb. ID, 1888"
We also required Mr.. Denig to state under GA tn
what he thought it would require to complete
the State-house IL now stands; and his an
swer wac, "about $2,0000O0." We also re-
quired the supervising architect, Mr. Scherrer,
IN ri n he ntal nf ba