The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-12-10
A CORRUPT COMBINATION.
Exposure of Ring for Defrauding the Tax
Payers of New York.

New YORK, Dec 9.-The Tribune says a
careful investigation of the department of
records by Tribune reporters reveals the ex-
istence in the city of a ring of contractors
whose methods are similar to those of the
canal ring, which was broken up eight years
ago, but no efforthas yet been made to break
up the corrupt combination which is de-
frauding the tax payers OF New York.
A system of unbalanced bids, by which
the public treasury suffers heavily, has grown
to startling proportions in the department of
public works. under the eye of Commits
sioner Thompson. Misleading estimates of
work to be done are the. rule rather than
the exception in that department, and GER
tain favored contractors, succeed in
obtaining secret information as tc
the real nature of the work which
these misleading estimates cover. They are
thus enabled to put in balanced bids at
figures which result in large gains to them
and serious losses to the city. The extraor-
binary nature of these bids may be imagined
when is is known that the department of
public works is now paying on contracts
still in force all the way from L cent to So
per cubic yard, forexactly the same kind of
out of the field by the ring men, who putin
unbalanced bids,
These outrageous street-contraots, of which
the public works department is full, result
in the vacation of assessments on an
extensive scale, throwing the whole burden
of the expenditure on the city. BY the va
cation of assessments resulting from these
abuses, the municipal treasury has suffered
to the extent of millions of dollarsin the last
fewiyears.
The method is absolutely simple. A
street-opening, or sewer, for example,, will
require an excavation. of SO much in rock,
and so much in earth. The engineer states
approximately the amountof each, and bids
are invited. An outside contractor makes
straightforward bid, allowing him fair
profit on each. The inside contractor makes
a bid considerably higher on one and very
much lower on the other; resultingin alower
average. He thus gets the contract. Then
1t mysteriously turns ont that of the work
on which he made the unreasonably high bud
there is far more. The engineers deceptive
estimate and the contractors secret knowl-
edge of the real facts work together, and
an unbalanced bid becomes, as thorough
a. piece of burglary as if the city treas
ury had been pred open with a jimmy
The Tribune gives the details of several
contracts in which the city has been swindled
the following being fair illustration; Bids
were invited for regulating and grading
Ninety-fifth street, from Tenth avenue to
Riverside drive and setting. curbstones and
tagging sidewalks thereon. The department
called for bids on $3.50 cubic yards CT earth
excavation, and 2l540 cubic yards of rock
excavation. J. Brady bid S. per cubic yard
on the earth excavation, and quarter of a
cent per cubic yard en- the rock excavation.
His aggregate, $15,676 being the lowest, he
received the con tract The amount on rock
is sossmall and on earth excavation so great,
it is estimated he will receive $112;0o0.