Los Angeles herald., 1907-09-21
PARCEL OUT
CIT Y PLUMS
EVIDENCE AGAINST CONTRACT
oRs' COMBINE PILING UP
clTYs LAW DEPARTMENT HEARS
OF ouTFALL POOL
Outside Contractors VIII Be Invited
to Enter Los Angeles Field to
Break the Street Work
Trust

works that Los Angeles has for some time
been in the grip of contractors combine
or pool.
show this indsputably.
Just how to get around this form of ex-
tortion on taxpayers is not clear, but
one way suggested is to invite outside
bidders. to come here and go after the
plums
ter have much to say along the line of
high prices for grading and paving, and
out of this reforms will probably come,
say city hall officials.
1t is said one of the members of this pool
or combine, disgruntled by getting the
small share of the profits, has told things,
and 1t would not surprise the knowing
ones If the contentious between at least
three of the contractors do not reach the
courts soon.
From Boyle Heights, where much i'm
provement work is being done, complaints
loud and long have come concerning the
price of new work and the leisurely way
In which contracts are started
Have City ParceIed Up
1t is current belief out that way that the
contrac ctors have the city parceled up into
sections and that they divide the con-
tracts in each of these sections just as
dividends are distributed In a stock COM
pany.
Several St Louis and Chicago con"
tractors have been apprised of the profit
able field that exists here and it is prob
able that several of them will enter the
paving business here.
This is also true of the interests push
ing other paving besides asphalt.
In Pasadena bitter war has developed
between the asphalt and the various
"lithic" pavement patentees, and this fight
will result in new capital being put into
competition here against the old COM
panies which have hitherto dictated prices.
In this CONNECTION rumors concerning
the outfall bids are being retold.
Hewitt Getting Facts
The whole facts will come out shortly
when as soon as the new outfall sewer Is
built, City Attorney Leslie R. Hewitt will
sue the surety company for the excess
cost borne by the city of Los Angeles
when Stansbury & Powell defaulted on
their contract to build the sewer.
The original bid was granted to IS. j.
Edwards"
This Edwards is a Pasadena man who
has been accused of being merely straw
determined to divide the plum between
them.
Edwards assigned the contract to Stans-
busy Ss Powell and cut no further figure
in the work.
Enemies of Edwards have circulated the
story that the outfall bid OF over $ooo'Ooo
was awarded under circumstances 1ndi-
eating that when Edwards got the bid
each contractor in the alleged pool was
privileged to make a final private bid for
the work, the others In the combination to
get the excess over the bid.
Figuring the Bonus
This excess was figured this way:
All the contractors figured carefully just
what the job would cost.
Then a bid was agreed on sufficiently
higher than the cost price to insure a
good profit for all in the deal All agreed
to submit bids of their own, too.
The lucky bidder was obliged to divide
the excess over the cost and the DID price
between his coconspirators.
In the outfall contract, 1t is said, about
SEQ 900 bonus was divided between five or
six firms
The board of public works has never
been able to get facts or figures on these
alleged deals, but the citys law depart
ment is at work on them.
Because of the charge that in assigning
& Powell certain phrases were omitted In
the new surety bond the city may have
some trouble in collecting the amount
claimed. but City Attorney Hewitt says
he has no fears on this score
Meanwhile the new outfall sewer work
is being rushed and the difficulties caused
by overfowing of the old outfall are being
adjusted.
Baldwin Says Stop
e.. ]. Lucky) Baldwin has just notified
the board of public works that he will not
permit sewage to be distributed on his
property near Vernon avenue from the old
outfall.
To reduce the breaks at Vermont and
Santa Barbara streets and Normandie and
Santa Barbara the sewer is turned loose
at Vernon avenue and empties on Bald
wins land.
This stuff has been allowed to escape at
regular intervals to reduce the pressure
ON the old outfall, but the board must now
find another remedy.
City Engineer Homer Hamlin said yes
terday that the outfall would probably be
complete by November l.
Already seventy-five men have been
dropped from the force, as much of the
underground work has been finished and
this class of labor is not needed in such
loroe numbers.