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


cause the legislation, marks, our
participation in a great. and stern
moral movement to bring our. ideals
and our conduct into measurable ac-
cord IA :-..- F~s
THEODORE ROOSEVELT.
The White House, April a.. 1908.
go APPENDIX. ..
Communication to the Mayor and City
Council Relating to the Practice Of
Certain Bidders for Furnishing
Structural Iron and Steel and for
Iron and steel Work Upon Boilers,
Bridges, and Buildings.
Boston, April II, 1903
To the Honorable the Mayor and City
Council.
Gentlemen:-!The finance commission
has already called attention to certain
administrative practices under which.
by connivance between favored con-
tractors and the city authorities, the
advantages of competition were lost.
contracts were given out by political
favor instead of to the lowest bidder.
and the city sustained serious financial
loss. -.-.
Contracts of this sort, relating to
coal, clay goods, and various forms of
CONCRETE construction were referred to
in the report of November Il, 1907; for
North River tagging in the report of
December s, 1907; for sewer construc-
ton in the report of January %, 1905;
for crushing stone in the report OF
March 2, 1908; for cement in the report
of March 4, 1908; for oil, drain pipe,
ard paving blocks in the report OF
March 9, 1908; and for the cleaning of
catch basins in the report Of March
| 20, 1905 Similar practices in the pur-
chase of coal were disclosed at the
public hearings held by the Commits
sion in September and October, 1907.
In it's report of January %. 1908, the
Commission noted the apparent ex-
istence of combination between the
manufacturers Of the rubber tires used
by the Fire Department. a''
The Commission now desires to di-
| rect attention to instances of collision
between ostensihle competitors for
iron and steel work, by means OF
which, and by false representations.
the city has been induced to award
contracts at excessive prices.
The methods discussed in this report
| will be considered Under three heads,
namely, combinations among boiler
makers, combinations among contrac-
tors for fireproofiing, and combina-
lions between corporations and firms
| engaged in the manufacture or supply
| of structural steel.
DENOMINATIONS IN BOILER RE-
PAIR WORK. ,..,
The boilers in the various city
schools are examined yearly by an in.
| spection and insurance company to as
certain their condition, and upon re-
ports of this company arrangements
are made for the renewal or repair OF
the boilers as required.
For some years it has been the prac.
! tice of the Schoolhouse Commission tc
irvite bids from selected firms and
corporations for this class Of work
The department has been in the habit
of combining the selection of contrac.
tors to those doing business in this
city, and the concerns receiving such
invitations during the past few years
have been the Atlantic Works, the
James Russell Boiler Works Company
| tiiC SuAiAAA6AUAh AAOsA SOAAsF>~-'SS
the Hodge Boiler Works. o.
The subsequent proceedings were
generally as follows: F.
Some one familiar with the opera.
tions Of the Schoolhouse Department
would furnish each person invited t.
bid the names Of the other persons t.
whom invitations had been extended
The concerns selected would then ar
range between themselves rs to WHIT
should do the work, as to the price t.
be fixed, and as to the division OF tht
profits. Bids, ostensibly Independent
and competitive. were then submitted
and the department, being misled b!
this appearance of genuine competi
ton. awarded the contract to the con
Germ which the bidders had agreed
should get the work. Upon compile
ton of the work the excessive PROF
rendered possible by this collusiv'
competition would be divided among
the parties to the fraud.
In the summer of 1904 contracts wer
made with the James Russell Boile
Works Company for the repair o
boilers in the Albert Palmer, Roxbur,
High. Winchell. Mary Hemmenway
and Aberdeen schools. Besides thi
concern. the Hodge Company, TIL
Cunningham Company and the Allan
tic Works had been invited to submit
bids. The aggregate amount paid b.
the city on these contracts was abou
$500. and Of this the treasurer of tn
company stated that about $1.400 wa
profit Out Of this sum the compan
paid 5000 to the Hodge Boiler Works
$500 to the Cunningham, Iron Company
} and $500 to the Atlantic Works 70
having submitted to the city prear
ranged bids higher than those sub
mitAed by the James Russell Boile
Works Company.
The $500 appears on the books of tn
James Russell Boiler Works Company
and is offset by false entry of ''mer
cl,ardise" to balance the account TIL
$500 paid the Atlantic Works was nc
entered upon the company's CONNER
cial books The $500 paid the Hodg
Boiler Works was entered on II
books, according to the treasurer
statement, as "cash received" but tn
Commission could not find the ertr,
The $500 paid the Cunningham Iro
Company was entered account school
houses" ~t