New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-29
PROFITS, SO PER CENT.
ANo7ced on AU City Contracts, Says
Uitness.

Charles Jacobs. an inspector OF the Finance De
partment testified yesterday before the Commits
sIoners Of Accounts. who shedding a lot OF
light on the business methods in Borough Presi-
dent Ahearn's office that inspectors figure on al
lowing the contractor 80 per cent profit
Asked 10 explain excessive prices paid by the
city for supplies. the witness It was In accord
ance with the custom OF the department He said
that he did not question the price OF % cents for
nantes paid by the city To Herman Hurwitz
Don't you think the inspectors who certified 10
these vouchers were conniving at the robbery of
the cityY' asked Commissioner Mitchell
II am not prepared to say" replied Jacobs
SHOWN that the percentage of Hurwitz was from,
l"f TO $50 per cent. Jacobs said he could not ac-
count for 1t and did know IL. The witness said
he passed Hurwtz's bills because he believed he
had charged a fair price He had not made in
quiries about Il.
Jacobs said lie did not check I'D the nrioe 90
NANTES but relied on the established custom OF
the department "a
Jacobs said he never went into the merits ~ +b..
prices OF mantles- lie said there was a uracada,,
IN the Office in regard to such things when he ,ye
In. and he had simply followed it,
Who instructed you to allow "a per con, MA. 90.
asked Mr.. Mitchell f''''
Chief Auditor Mckinney" answered Jacob,
We had no particular instruction about rho r,.,,a-
and were not told whether the man who ,.as 49,
ting the 20 per cent first man or middle mo-
or tambourine man. our understanding yas -
allow 80 per cent
DO all the inspectors now allow a nor c.,,. -.
asked Mr.. Mitchell
Absolutely; that is the understanding in the
finance department" answered Jacobs
Jacobs said his instructions were never to check
up a bill for less than $40
Are the contractors acquainted with that svs
tenn" asked Mr. Mitchell
Il don't know answered Jacobs
Here Corporation Counsel Ellison entered and
taking a seat. listened for a time TO the testimony
The meeting Of the commissioners in the after
noon lasted Just two minutes and half Max c.
Cramer. on advice of his lawyer. Louis J Vorhaus
refused to testify. He informed that upon ad-
vice Of the District Attorney his testimony was not
wanted now. and that the issue of his refusal would
not be taken up until he should refuse to testify
in the event of his testimony being wanted
Frank Ortez said TO be member of the plumb
ing firm of o Brien & Ryder will be called upon
70 testify this morning, and will Thomas H
Boyce, formerly of the firm of Boyce & Lynch
who had some important carpentry contracts from
the city.
Borough President Coler said last evening.
accept final the certificate of the purchasing de-
partmcnt. Nevertheless, did hold up bills where
by the courts TO them, the COURTS holding that
unless could show fraud, we could not reduce the
amount agreed. upon by the department one of
the cases that recall In this particular the
MitnaCht case, in which the purchase of safes was
involved Deputy Controller Levy drew a bill for
the time which sent 10 Albany giving us
sive. and this bin beaten In the Legislature
After that Mr. Levy, as a member OF the Charter
charter; that every Controller since my time
has had the power which l lacked, pass upon
the reasonabeness and the justice of bills against
the city. However. during my administration. and
with my knowledge, order given 10 any
auditor pass bills where the cost was excessive,
and don't believe Mr.. Mckinney ever gave such