New-York tribune., 1903-04-30
CITY'S LOSS MILLIONS.
EFFECT OF LABOR CLAUSE.
Mcdonald Nay Sue for Loss Due to
Eight-HOur Precision.

L. Latin Kellogg counsel to the Contractors
Association of this city. says that the eight-hour
labor clause which the Court OF Appeals on
! Tuesday declared to be unconstitutional, in
wolves a loss to the city of between S1O,OOO,OoO
and $4,000 900; and this estimate does not in
clude the increased cost of the work on the
subway, which will amount to about S5.OOO.OOO
more.
In connection with this IT is rumored that
John b Mcdonald will the city for the loss
involved by his compulsory compliance with the
eight-hour law. Mr. Mcdonald was not at his
home last night when Tribune reporter called.
and the report could not be verified
There never was any sane reason for the
adoption of any such law the eight-hour
law said Nj. Kellogg yesterday 1T was
purely and simply class legislation, and IT
largely helped class of laborers who have the
benefits of working in the open air. while 1t ex-
tended no benefits to the thousands Of clerks
and other unorganized workers who are busy in
doors There never was any reason why the
city shorld be compelled to pay this increased
price for labor while the private employer is
exempted. 1 think the law has occasioned
loss to the city aggregating nearly S12.Ooo,Ooo-
The effect of the decision by the Court of Ap-
meals is to enable the contractors at work on
public undertakings to work their men as many
hours as they please and at such rates as they
can agree with their employees The practical
effect of the eght-hoUr law was that even
where the laborers themselves were willing 10
work at a price mutually agreeable to the EN-
pIoyer and ernploye 1t was 1mpract1caole for
them to do So because the factory inspectors
would prevent it. The factory inspector would
inform the department of the city having the
work in hand of any violation of the law. and
the department would summon the offending
contractor and threaten to take away his con-
tract if he did not obey the eight-hOur clause.
If the department did not effect change in the
working hours the factory inspector would file
an affidavit with the Controller and the con-
tractors pay would be held up
1.-The practical effect of the decision is to de-
crease the cost of public work This question
has come up in several different cases before
the courts. and it has been proved in those cases
that the cost of the public work owing TO the
law was increased about % per cent 1t came
UP in the case of Bridge No. g. There were
two lettings; one for a contract with the labor
law in obliging the contractor TO abide by its
terms and the other with the stipulation left
out The difference between the two sets Of
bids in a contract amounting to about SSOO,eoO
was if ! remember correctly. about 100000
This same eight-hour question is involved in
a case now before the Court Of Appeals in the
contract held by the Pennsylvania. Steel Com
pany for the steel on the Williamsburg bIIOSe-
The decisions of the lower courts have been
adverse in most instances The claim made by
a taxnayer in this particular suit is that the
Contract awarded to the Pennsylvania Steel
Cornpanv by the old East River Bridge Com MS
sion is invalid with the labor clause provision
inserted The taxpayer brought his action TO
restrain the letting and the performance OF the
contract on the ground that IL II were so let it
would constitute a waste Of city funds. The
% sA was partially tried, and the trial it was
proved that the loss 70 the city by virtue OF
the eight-hour clause was between 100000 and
500 600 This will be prosecuted to the
Court of Appeals and an effort will be made to
con7peI the Pennsylvania Steel Company to re-
store this amount Of money to the city. The de-
cision handed down yesterday will not invali-
date contracts entered into in good faith without
notice of any increase in cost The same ques-
ton is up in taxpayers suit against Norcross
Rrothers the successful bidders for the contract
to build the new public library at Bryant
Square"
There is a strong eight hour clause in the sub
way contract awarded to John Mcdonald IL
Is estimated that more than half the work. or
about 500 900 900. done by Unsxilled labor,
and that the eight ho1r clause caused this pro-
portion TO cost 20 per cent. or Si0OUs, more
Than il would have cost il the contractors had
NOT beer tied down TO the eight hour provision.
THE city will not be loser in the end on ac-
count OF the eight hour clause ana subway
work Whatever it costs the contractor must
refund to the city plus interest, said President
orr of the pid Transit Commission last night
Ar the same time IL is conceded that the tunnel
would not have cost much more than about $50
nO0 coo If the eight hour clause han not been In
the contract ,,, ..,,. ,,.
relates TO a section of the Penal Code which
saws If a man shall employ workrnen for a period
Ionger than eight hours he shall be guilty of
Y7isdsueanor. Il declares that section unconsti-
tutional You can see what effect that Will have
T,bs state may make a law providing for an
eight hour day and that law may be enforced on
Cfsf