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

= = ! a p "a = - r. = ssY S
combinations respecting individual
work were entered into. ;,N-'
Beyond establishing the existence
and general purposes of this comblna-
ton, the inquiry of the Commission
| was limited. to the particular
transactions directly or indirectly
| affecting the pecuniary interest OF the
city of Boston. It was shown, how
ever, that the combination was or the
most widespread character, that it in
cluded substantially all the local con-
Germs and many of the largest corpora :
lions in the United States engaged IN
manufacturing or furnishing struc-
tural steel for use in any part of New
England, and that it affected the
Commonwealth, the cities and towns.
| the railroads and street railways, the
owners of first-class buildings, ana
generally all persons having occasion
| to use iron or steel for any purpose IN
| this section of the country
The ostensible purpose of the Boston
Agreement, as stated by the secretary
| of the New England Structural Com
pany and the president of the Boston
Bridge Works, two of its members,
was to collect and distribute mutual
information respecting the work the
members were bidding on; but as
| admitted by the witnesses, its real and
| ultimate objects were to regulate COM
petition and to raise prices. Most OF
| the members of the agreement were
engaged in interstate commerce, and
many. of the particular combinations
| effected were clearly within the
| narrowest definition of commerce be-
T tween the States as that, phrase is
| used in the Act of Congress of July 2,
| 1890. .s-.-
| The meetings of the. prospective
| bidders brought about through the ma
chinery of the Boston Agreement were
| not always successful AS explained
| by the president of the Boston Bridge
Works, the effort to get together and
to secure for one of the members q
| Concession" of the work in question
sometimes failed; but lin many cases
an agreement was reached whereby
work was conceded" to one OF them.
| the others agreeing to bid over him.
He added that such an agreement was
| always made if possible" l..
| 1t would be impossible to estimate
the cost to the city and other users of
| structural steel through the operations
| of the Boston Agreement, because the
| consideration generally paid for an
| award of contract by the bidders to
| one OF their number was the return Of
the same favor on other occasions. No
| passage of money was necessary, as
| the complimentary bidders were
| in due course to have their turn for
| doing work on their own terms. Some
| indication, however, of the loss to the
consumer may be deduced from some
of the transactions with the city of
Boston noted below.
So far as the city is concerned, it APP
peared that the operations of the Bos-
ton Agreement included the tidewater
and railroad bridges built by the city
itself, the bridges built by the various
railroads in this city for the abolition
of grade crossings, the work of the
| Transit Commission, the work of the
Charles River Basin Compassion, and
| the structures of the Boston Elevated
Railway Company, in the cost of which
the city has, under Statute 1897, chap
ter 500, section TO-, a .pecuniary inter-
est. -
The following instances, showing the
detail methods of the combination
known as the Boston Agreement. are
confined to work done directly for the
city OF Boston. ........
The Bennington Street Bridge.-ln
the case of this bridge, advertised in
November, 1901, the Boston Bridge
Works paid various sums aggregating
$500 to five possible competitors in re.
turn for an agreement on their part
either to submit higher bids or to alb
stain from bidding.
The Broadway Bridge.-In Septem-
Der, 1902. bids were, invited for the con-
struction of this bridge. The two lead.
ing competitors were the Boston Bridge
Works and the New England Structur-
al Company. The contract was award
ed to the former as the lowest bidder
for $112,874. An arrangement, however
had been made between these two bid
ders fer putting in a bid on behalf OF
the New England Structural Company
at the higher figure of SIG, $50, in re-
j turn for which this company was to re-
ceive $1,000. This arrangement was
carried out, and in due course 5000
was RENTED by the Boston Bridgs
Works to the New England Structural
Company as the price of this conces-
sion. .-
The Cove Street or Atlantic Avenue
Bridge.-Bids for the superstructure Of
this bridge were advertised for by ths
city in June, 1908. For various reasons
it was at this time very difficult tt
estimate on this work, and the bids
we're all rejected. In October 1904, tl,e
Work was again advertised, and award
ed to the Pennsylvania Steel Company
the lowest bidder. This was apparent
ly case of straight competition. lr
October. 1905. the city engineer adver.
tised the draw span of this bridge:
and the Pennsylvania Steel Company
representing to it's competitors that Il
had lost money on it's contract for the
superstructure, persuaded the member:
of the combination to let it have this
contract to enable it to recoup the loss
sustained under the other contract
Concerted bids SO arranged as to make
) the $5S.G00 bid by the Pennsylvania
} Steel Company the lowest bid, and al
) containing the false statement tina
there was no fraud collision ar con