Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-04-28

tween the bidders. He justified this
and similar transactions as part Of
the company's regular business meth
DDS, and said that in his opinion 1t
Was IAN entirely proper transaction"
The superintendent Of the Atlantic
Works testified that his company often
put in Lids not intended to secure the
work. 5,-.,-. y
The treasurer of the James Russell
Boiler Works Company testified that
his concern had done much business
with the city, that on several occa>
sions he had paid money to competi-
tors for putting in apparently geiu-
inc bids which, by preconcerted
agreement, were higher than his, and
that his company had paid out part
Of its profits for this accommodation.
He admitted. also, that he had de-
stroyed the books of the company
which would disclose these transac-
tions. tt
Works testified that he knew who the
other bidders were to be, having pro-
badly found out from some one in the
Schoolhouse Department.
The manager of the Cunningham
Iron Company admitted that the 5000
received in 1904 was for bidding up"
on the work at the request Of the
James Russell Boiler Works Company.
(2) COMBINATIONS OF FIRE
PROBING CONCERNS.
The two concerns whose transact
[ tions with the city have been inves-
tigated are the Eastern Expanded
Ank, ~r,H
struction Company, corporations do
ing an extensive business in this city.
These companies combined for the
purpose of parceling out the work.
Contract for contract was generally
conceded, although in some cases
money was paid as the price of
abstaining from competition. This re-
suited in high prices to the customer,
and exactlOns were thus obtained from
all sorts and conditions of men and
corporations Even charities secured
no exemption. and the prices obtained
from hospital, a home for crippled
children. and the city of Boston were
united in one check, which represented
the price of collision on these jobs.
The two companies arranged to parcel
out the work on many schoolhouses,
the Roebling Company taking some,
while the Eastern Expanded Metal
| Company secured the rest. Both con-
| Germs. however, by keeping up the APP
pearance of an active and real COM
petition with the attendant circum-
| stances of figuring and bidding, gave
the city officials to understand that
| there was no collision.
hn CT RI cd
| by the case of the Emerson School in
| East Boston, for the erection of which
| bids were invited in January, 1908.
| The fire. proofing was figured by the
| Eastern Expanded Metal Company at
| $5,375. To this sum $500 was added
for the Roebling Company, and bid
| submitted to the city of $5,875 The
Roebling Company agreed to bid So
9B6, and did so. The work was then
awarded by the general contractor to
| the concern which was apparently the
lowest bidder, the Eastern Expanded
Metal Company for $5,S75; this sum
was paid by the city to the general
contractor and by him to the Eastern
Expanded Metal Company, and at the
conclusion of the work this company
paid the Roebling Construction Com
pany the $500 agreed on.
| (3) COMBINATIONS IN THE
| STRUCTURAL STEEL TRADE.
| About the year 1900 carefully
planned combination was created em-
bracing practically all the firms and
corporations engaged in structural
steel work in New England. These
concerns had previously been linked
/ xor iv, To-
New England Iron League" ostensi-
bly, maintained for the purpose of
mutual protection against labor
troubles, hostile legislation, and "un-
scruplous contractors" Members OF
the league who entered into the COM
bination in regard to contracts and
bids, hereinafter referred to, called it
the Boston Agreement" or the RE
porting Agreement" but the testi-
mony -of certain persons and certain
letters indicates that the League" and
the Agreement" were interchangeable
designations
The purposes and methods of this
combinati were as follows:
A central Office was established and
placed in charge of an officer called the
commissioner. to whom the members
Of the combination reported as to work
which they intended to figure on OF
desired to secure. The commissioner
kept Il record of these reports and
notified each concern SO reporting
what other members of the agreement
were figuring on the job Meetings OF
the members interested In this
particular work were then arranged
at which it would be determined
whether an arrangement for collusive
bidding should be entered into. If this
: was decided on, an agreement was
made as to who should get the job, az
to the price at which it should be
; taken, and as to the consideration
which was to be received by the
others.
In order to preserve the appearance
, Of competition and to insure the sue.
cess of. the scheme, the parties to the
agreement would arrange the bids t
. be submitted In progressive scale
above the prearranged bid of the con-
, Germ to which the work had beer
allotted. The consideration to be pait
by the selected bidder to the othel
, parties to the combination was some.
| fir1ec q ast naymenf hnt rnort