New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-12-09
NATURE OF THE swINDLNG SYSTEM.
ESTIMATES INTENDED TO MIsLEAD THOSE NOT IN
THE CONTRACTORS RING.

ESTIMATES INTENDED TO MIsLEAD THOSE Nol ~
THE CONTRACTORS RING.
The system of unbalanced bids by means of which
the old Canal ring swindled the State out OF million
of dollars was fully exposed in THE TRIBUNE in
1875. Recent inves Agations into the records OF
the Finance Department show that the same sys-
tenn of unbalanced bids exists to-day in several de-
partments of the City Government. Within COM
paratively few years 1t has caused the loss OF
millions of dollars to the city Treasury. Although
tbe system existed under Tweed when ne
was at the head of the Department OF Puo-
lie Works. II Is carried on TO greater
extent there to-day than ever before. 1t has IN
creased enormously in recent years. Nearly all the
contracts for street improvements, which cost the
city over 81, 900 900 in 1882, are made on unOal-
anced bids The estimates under which these con-
tracts are let are often prepared in such way that
the expense TO the taxpayers proves to be ten
times the original amount Of the contractors old.
The exact nature of an unbalanced bid is easily
illustrated 1t always depends upon misleading
estimates If there is TO be really large amount
of earth excavation and small amount OF rock
excavation, the estimates reverse the amounts
Bids are invited for a small amount OF earth exca-
vation and large amount of rock excavation. a
contractor knowing the truth concealed by the
estimates n
price for earth. In that way on the face of the
estimates his total bid will be low. But as he Is
maid by the cubic yard according 70 the returns on
The completed work his bid viii in the end turn
ont 70 be the highest and the city is consequently
defrouded II a contractor bids cent per cublc
ward for excavating rock and So per cubic yard or
evcavating earth the bid is plainly unbalanced
II ia ont of AL reason and shows at glance that IL
il not honest But the departments are full OF con-
tracts made on just such bids
THE ERRORS IN THE ESTIMATES.
Auoood errors of n startling character have been
discovered in the estimates prepared by engineers
employcd by the Public Works Department. At
least one contractor in every case is aware OF these
orrors IN before he makes his bid, and is
TINS able to secure contracts at figures out
of all proportion TO the value of the work. Con-
tractors have been paid over 100000 for work on
which their total bid was less than $4,000. John
Rrady. n contractor in the Public Works Depart
ment. is receiving SIS cubic yard for excaVatlng
earth while the value Of the work is not more thah
fftv cents cubic yard. Michael Finn. another
contractor is receiving 81 90 cubic yard tor the
same work; and d. X. Gallagher is receiving % oo'
In the Park Department j. w. OGrady was re-
Gently paid $50 cubic yard for excavatng rock
while another contractor was doing similar work
for So a cubic yard, which was fair price In the
Pnblic Works Department again j. ID. Moore was
maid $40 cubic yard for rock excavation,
aud other contractors have been paid from ~ to
Sc ward for the same work, the fair value OF
which was established by the Assessment Commis-
sion at less than 81 a cubic yard.
Differences of an equally startling character exist
in all other kinds of work which is done by con-
tract in the Public Works Department, and which
ia maid for by the issue of city interest-bearing
bonds. In street-pavng contracts Thomas Gearty
WAS paid So 4S square yard, w. A. Cumming
80 05 and Charles Guidet 81 AZ, while other
contractors did the same work for 81 90
and 81 81 square yard. j. Phelan was
paid S1G5 each for receiving basins, while
John McKim & Son furnished basins OF the
same kind for 500. One contractor is paid $40
a thousand feet for lumber which another one
furnishes for $40.
In advertising contracts estimates are prepared
for each item in the work. In regulating and
grading street. for instance the engineers are sup
posed to make careful surveys, and to present
accurate estimates of the quantity of earth and
rock 70 he excavated. The contractor then bids a
price per ward for each kind of work. The lowest
total bid according to the estimated quantities
determines TO whom the contract shall be given.
But the contractor is paid his price per yard with
ont regard to the estimates. The estimates are
often fictitious, and this is known 10 contractors.
By means of this knowledge they are able To get
enormously high rates for work, while contractors
who do not know the inside facts are prevented
from securing such contracts. The result is shown
by the following table which gives the bids OF con-
tractors on estimated prices Of work, ana the
cost to the city: