Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1883-12-10

The City Of New York DenanaeA Oaf
Of $4,000, 900.

NEW YORK, Dec. 3.
This mornings Tribune contains the ex-
posure of 4 system of contracts made by the
department Of public works, of which Hub
bert O. Thompson 10 the head, BY which tax
PAYERS have been defrauded within the past
seven years of $4,000 These frauds have
beer nade possible by system OF un6ai-
anced bids, such as resulted in the State be-
ing swindled of . million dollars some years
ago by the old canal ring.
The nature of an unbalanced bid ID de-
scribed a. follows: 1t always depends upon
a misleading estimate. If there is really to
be q large amount of earth excavated and q
small amount of earth excavated, the esti-
mates reverse the amounts. Bids are invited
for q small amount of earth and large
amount of rock excavation. The contractor,
knowing the truth concealed by the esti-
mates. bids q normal price for the rock and
big price for the earth. 10 this way on the
face of. the estimate, his total bid will be
low, but as he is paid by the cubic yard, &C.
cording to The returns on the completed work
his bid will in the end turn out to be
the highest, and consequently the Guy ID de-
frauded. If the contractor bids one cent per
cubic yard for excavating rock and two dol
lars per cubic yard for earth, the bid IL
plainly unbalanced. 1t is ont of all reason
HUu hui uOuSst, UOt Tic uSPaituSus 40 ~~AA ~
contracts made from just such bids.
A number of contracts cited show bids for
the same class of work. The bids range as
follows: For earth excavation per cubic
yard, from one cent to 50; rock, one-quarter
OF q cent to $40; curbstOnes per linear foot,
one quarter of q cent to 6S cents; tagging
per square foot, one quarter OF q cent to q
cents.
The contractors have been paid over $780,
600 for work on which the total bid was less
than Sl5, 900. These raids are also extended
to the park department where q man was re.
Gently paid $50 per yard for excavating rock
and another doing similar work for 81.
Eight contracts are cited where the total &C.
cepted bids were 6,69l, but the amount
paid for the work was 1927, l31. The street
improvements are paid for by issue Of bonds
which are to be paid of when the assessments
completed from owners of property benefited.
The assessed property owners go into the
courts and prove the cost of the work excess
i've and the courts vacate the assessments
the loss is then added to the city debt. Since
1876 the city has lost 81, 1868, 43l by vacated
assessments, nearly all caused by unbalanced
bids. But this is not one-half the loss. The
courts decided the fact. The work was done
by contract under public contracts, hence the
board of aldermen recently assessed the prop
erty owners only what that board considers
fair value of work done without regard to
contracts made by public works or park
board. The excess Of costs over the amount
levied in the assessment is charged among
other matters to the fund called DEFICIENCIES
in the assessments. The fund which rep
resents the total loss to the city now amounts
to 81, 1856. Altogether since 1876 there
has been loss to the city treasury over &c.
900, 900 because of the frauds, Irregularities
and excessive costs in assessments. Nearly
all this loss has been caused by unbalanced
bids.