The Washington times. (Washington [D.C.]) 1901-1902, 1902-05-03
BRAND NEW TRUST,
CONTRACTORS CLAIM
Bonding Provision in River
and Harbor Bill.
Attention of Members of Congress- Called
to Alleged Section for Crushing
Small Bidders for the Work.

A number OF contr actors throughout the
country claim to have discovered brand
new trust. and Congress is being peii-
toned to throttle the new species Of oc-
topi before ii attains full growth.
While war was being waged against
the beef trust ii appears that the new
trust took advantage Of the disturbance
in another quarter to gain possession OF
the Congressional pork barrel 1t was
apparently an easy conquest, for an inno-
cent looking paragraph, contained in the
River and Harbor bill recently passed
by both houses of Congress, created the
new trust, according to the claims Of
those petitioning Congress to kill this
particular provision Of the bill. The bill
is now in conference. and the conferees
will meet today. when the matter Of the
trust will be brought before them.
The paragraph complained of provides
that contractors who undertake work
created by this act shall give a surety
company's bond. The fact that the bill
contained such a paragraph, or If there
what effect 1t would have. was known to
but few members of the committees Of
the House and Senate. and TO very few
members OF either body.
Small Contractors Claim.
The small contractors now set up the
claim that II the bill Is passed in its pres
ent form they will be driven from compe-
eition with several large contractors for
river and harbor work of the Government.
They declare that they are willing TO fur
nish any reasonably safe bond but do not
want 1t made compulsory that they fur
pish a surety company bond. They de-
clare that several Of the big contrac tors
for Government work have entered into
combination with certain security COM
panics to drive the small ones from the
field, and to create monopoly for them
selves Of the river and harbor improve
ments undertaken by the Government, I'M
der the direction Of the War Department.
One Of these contractors, writing TO a Sen
ator, describes the plan:
How Plan Could Work.
The small contractor who is to bid
against big contractor seeks bond from
a security company TO accompany his bid.
The security company will then request
that the applicant state what his bid will
be. The contractor naturally would de-
cline such proposition. until assured
that the security company must know.
because If his bond is too low, the com
pany is liable TO be held responsible for
the work, should the contractor fail to
perform It, When the contractor, know
ing that he must furnish a security com
pany bond in order TO make his bid a
legal one, furnishes the required informa-
ton. he finds, on the opening of bids, that
some big contractor who is in the COM
bine has underbid him by the slightest
fraction.
Some Senators and Representatives who
have heard from the smaller contractors
think perhaps their correspondents are
needlessly alarmed and take an extraya-
CANT view OF the situation. but neyerthe
less the provision will De discussed today.
AZ the paragraph was passed by both
House and Senate, the conferees cannot
strike II out, but IL may be stricken out
by an amendment by both houses before
a final agreement In conference is
seachcd.