New-York tribune., 1908-12-29
SOME CURIOUS BIDS
CITY SUPPLY CONTRACTS.
Dealers Go High in One Department
and Losc tn Another.


Professor Collin. OF counsel for the legislative
committee investigating the financial condition OF
the city brought yesterday that since 1904 the
contracts <or forage IN several departments had
gone 20 practically the same contractor In each oe
pzrtment IIe endeavoTed 20 prove by placing these
contractors On the stand hat by understanding
among themselves only of them was to na6e
serious attempt TO get the contracts In oepart
meut They ali denied that there was any such
understanding that they had ever discussed plds
among themselves.
In placing J. A Shankand special accountant
for the commission on the stand Professor Collin
said zone result Of the present system OF letting
contracts the lowest bidders has been the oivid-
ing UP Of the city's patronage among certain
lsurnber OF contractors, end propose 10 show by
the testimony OF this witness that three or four
contractors secured all contracts for feed IN the
Departments Of Parks. Fire and Street Cleaning
sn Manhattan. and that with regard TO each
department Of three got all the contracts
Things were SO arranged that each contractor
would bid low feed for the department which
ne supplied, while the others would bid high- in
this connection evidence IS SO conclusive mat II
couldn't a happening series Of happen
sngs"
Mr. Shankland submitted table showing that
o. twenty forage contracts let by the Department
Of Parks in Manhattan since the first half OF 1895
thirteen had gone TO the Frank ]. Lennon Com
psny: that twelve out OF thirty-four contracts in
the Fire Department IN Manhattan and The Bronx
had gone 10 Horace Ingersou & Co. since 1903; that
fory-tree Of sixty-four contracts in the Street
Cleaning Department in Manhattan and The Bronx
had gone 10 Thomas Ienane since the first half
OF 1900
Mr.. Denane. who has received most Of the con-
tracts for the Street Cleaning Department in Man
hsctan ana The Bronx, put through Cruel
ling examination on the stand by Professor Collin.
He said he had interest in the Lennon company
the IHgersoll company. and had never talked
with representatives Of these concerns about bids
or prices.
=nr TI1a
fact that only twice in four years has any one
else hid below you for the street cleaning con-
Jracts?'' asked Senator Cassidy. lie said that
ether perhaps did not have equal facilities
FOR handling the business.
Records OF the department produced TO show
that for the contract 10 supply the Park Depart
with forage for the last haf of 1905 Thomas
Jenane had bid q 10 for hay. while the Frank J.
Lennon Company. which usually sot most Of the
contracts in that department, bid 81 o75 and got
the contract.
II seems that two days before this contract was
let Thomas I,elane got the contract for forage in
the Street Cleaning Department, bidding SL075 for
hay, while the Frank J. Lennon Company, which
bid 81 GO in the Park Department bid 81 10 in the
Street Cleaning Department, the Lelane bid in the
Park Department
How did you happen 20 exchange bids in this
way asked Professor Collin.
Nr. Lelane denied there had been any exchange
He said he must have thought ii would cost more
10 deliver 10 the Park Department.
MT- Lelane began replying no 10 every Ques-
ton, and Professor Collin said he was making his
answers before the questions had been asked.
BE careful, SIR said Senator Cassidy. You
must not forget that you are under oath i
Mr.. Lelane did not seem TO remember at first
he charged the city for salt; then guessed it
65 hundred, s1s ton He said he
had 10 pay from SO 10 So ton.
Don't you know calculated Senator Cassidy.
with emphasis that salt be bought at tide
water at IS a ton?" He didn't know.
Senator Cassidy and Asseublynau Oliver, a
member Of the committee, had a little spat. The
latter. who is present much of the time, drifted
in and wanted TO ask Mr.. Lelare question at
critical point in the examination.
You can't ask the question now roared the
Senator, until after the counsel is through"
Assembly, man Oliver then went into anteroom-
Later Senator Cassidy sent word by a messenger
that he could ask any questions desired but he
sent hack word he had nothing 10 ask.
Frank J Lennon was asked or the stand about
3he coincidence of bids in 1906. He denied collu-
sion.
Professor Collin asked Nr Lennon If he did not
think fsrer system OF bidding for both the con-
tractors and the city. would be bid for furnish
b1s all departments within given territory with
maximum and minimum amount Of forage in a
given time a. much below in advance Of the
market price on the day the forage ordered.
The witness said he thought it would be long
some standard OF market price could be deter
mined upon What standard Of price do most
sealers use2" Professor Collin asked Most deal
take The Tribune for that said Mr.. Lennon.
Their market reports are considered the most ac
surate.'
Horace Ingerson said be had been doing business
with the Fire Department for thirty-four years.
Sc did approve the idea Of percentage bidding.
he said he old want business with any other
department. and had put in bids simply because he
thought II he got the contracts at the high figures
ae named he could make considerable money It
happened that his figures in other departments
always high win
As for salt. the witness said he charged the city
sometimes 50 cents hundred and sometimes 81 so
hundred. II a small item. and generally used
10 round balanced bid.
Mr Reed. assistant engineer OF the Finance
Department. cited an instance where $500 feet of
thing for the buildings Of the City College were
contracted for ~ 81 cents square foot But the
plans were changed before the work was started,
that only 1900 feet required A rebate
allowed Of only little foot
Tor the ttlnE not used. Air. Reed said he did not
understand what system of figuring used
this transaction. An electric switchboard in the
buildings billed the city at $4,000.
u discovered that IL cost less than 5000" said
Sir. Reed. and refused pay The hill. YF il was
o. kd by the architect and the trustees"