Smyrna times., 1907-06-19
IFLAGRANT FRAUD
IN CAPITOL JOB
Penna. Capitol Contractors Charged
What They Pleased
MISSING ARTICLES PAID FOR

the new capitol under his per loot
and per pound" contract with the
board of public grounds and buildings
was told to the investigation commits
sion in the report of the Audit Com
pany of New York, presented through
James Cameron, the chief auditor.
The auditors found that what was
known as a quantity book" was used
as a basis for making out bills for
articles as we'll as furnishing them,
the schedule upon which the contract
was awarded to SandersOn being ap-
parently disregarded in favor of the
compilation of quantities made up by
Architect Joseph NJ. Huston and ap-
proved by James NJ. Shumaker, who
was superintendent of grounds and
buildings during sthe building and fur
nishing of the capitol.
Mr.. Cameron said that in making
the audit he had not gone by the
quantity book" at all, as from the
records the contracts were based on
the schedule. But the quantity book"
was what Sanderson went by and af-
forded him the means to make his
enormous charges.
Overcharges running into hundreds of
thousands of dollars were shown by the
auditors to have taken place under the
arbitrary fixing of prices by SandersOn.
Mention was also made Of pen and ink
interlineations in the quantity book
on which large orders to Sanderson were
based. 1t was also brought out that in
the case of carpet some cne had marked
out yard" and inserted feet" in red
ink in this book.
The report recommends that Shumaker
be asked to explain the absence of GER
tain articles. among them window seats
for which the state paid SandersOn, and
which the auditors were unable to To-
cate It was suggested that Shumaker
be asked to tell the whereabouts of mir
rors which he had certified as having
been delivered in good condition while
he was superintendent
The report also brought out these
facts:
The painting as done by sanderson cost
the state $2640 900 more than it would have
cost II the contract had heen awarded to
John Gibson, the lowest bidder.
Mahogany on walls cost $SSO.0OO and
should have been furnished by George
F. Payne < Company, urder their origi-
nal contract for the construction of the
capitol.
Sanderson was allowed to get in on
Payne's contract for parquetry flooring
under order from Huston. and did
$4,000 worth of work before he was
stopped. Payne collected S114, $3.50. I'm
addition to being paid for a yellow pine
floor under his original contract.
No known method by which designed
marble was measured and for which
Sanderson was paid $213,5OO at the rate
of $3.50 per foot"
sanderson collected 1876, 40 for de
signed furniture, one invoice for $685.
5000 being paid for without affidavit as
to correctness being required.
Overcharge Of $4,000 on desks. as they
were furnished under one item when they
could have been charged under another.
Sanderson also bid by the piece for the
furniture and other supplies, but he was
paid by the per foot and per pound"
rule.
Ornamental desks for feads of depart
ments cost the state S3Gs. while Sander
son collected S6l0 each for plain desks
supplied to subordnates. Loss to the
state on desks through this measurement
33.312.50.
The quantity book called for 60 desks
more than were invOiced. In other words
the state paid for this number of desks
that il did not receive.
Sanderson collected 1923. $3.50 for 1854
chairs under the per foot" rule. an over
charge of 5000 per chair. or s214 1872 IS in
the aggregate. The quantity book
volced.
An overcharge Of S4617e.9O on tables for
which Sanderson collected $S1.2A
The quantity plans and quantity book
called for many items which have never
been inVolced ard include many other
items similar TO those which have been
tnvoiced or which have been invoiced only
in part. These items alone at average
weight or measurement charged by the
contractor and at the unit price called
for by the quantity book for the re-
spective articles or work amount to an
proXimately 81, 100000 Tie report says in
conclusion
Since the beginning of our examfna-
tion 1t appears that the contractor has
been called upon for restitution of a num-
Der Of items outside Of the new capitol
furniture. and the treasurer's books show
that refunds on April IS. 1907 for g.
nioS. and on May 8, 1907. for $149.GO, ag-
Fregating Slsl06S. has heen received on
hNe Of the six invoices which we exam
ined.
1t is evident on the face of the record.
claims for restitution of ar
t-re can be- made ard we
--..-e commend a general audit OF
the accounts Of all contractors in the de.
partment Of the auditor general GOVERNS
that period at least wherein a reclaim
might not be defeated by the statute o.
limitation"
Titles as placed by the quantity book
rule the items painting and decorating
designed bronze metal for gas and elec
trio fixtures. etc, and designed specia
finished white metal gaA and electric fix
tures' were contemplated at the time o
the award OF the schedule, Sanderson'
bid exceeded that of the lowest Bidder b
tl.992.09O76.
After Mr.. Cameron had finished tn
reading of the report, Sterling +
Thomas, a representative of theAmeI
ican Car & Foundry company, Of Wi
mington. Del, was called. He testifie
that his firm had furnished Pawn
wainscotting for the attic for $500
and that Payne had secured some /,
its Office stationery and made out
bill to the state for $4,000. Sanderso
collected from the state s545.13
for cabinet work, which had been fu
nished to him by the Wilmington co
cern for $se.O73.
CAUGHT SCANNING BOOKS