Daily capital journal. (Salem, Oregon) 1903-1919, 1913-05-27
A PAVINGICOMBINE
THAT LASTED QUICK
August Kehrberger Tells of
His Experience in the
Little Deal.
DID NOT STAND BY TERMS
His statment Would Indicate He Got
What Politicians Call the
Double Cross.

A paving combine which, had it not
been broken up by conflict among the
members, would have assumed suffi.
cient proportion to practically abolish
competition in this city, was framed
and placed into execution short time
ago by three leading paving contrac.
tors of this city, namely: W. D. Pugh,
Arenz & Co., and August Kehrberger,
the latter, as will be seen by the follow.
7ng, being made the goat of the propo-
sitiOn or, at least, he thinks so, by rea.
son of an attempt made to double.cross
him on one of the largest paving con-
tracts ever let in the city which it was
understood that Mr.. Kehrberger should
have.
1t happened thusly: The three con.
tractors held a meeting and at that
meeting it was decided to consolidate
the firms in fashion, pooling their
business, while at the same time each
contractor was to be sole operator of
his business and the contracts were to
be awarded by lot. In fact, the game
was to be conducted upon the same
style as is lottery; draw your number
and accept your contract.
The Game Is On.
After arriving at this agreement, the
members proceeded to put tho plan in
operation. Three pieces Of paper were
'cut and upon one was written North
Commercial, upon another Twenty.first
!streetS md upon the last, Chemeketa
street, and these were all placed in
hat. The head piece was poised above
Mr.. Kehrberger's head and he drew
North Commercial street; Mr.. Pugh
drew Chemeketa street, while Arenz &
Co. drew Twenty-first street. So, it
was decided that the holders Of the diff
ferent papers bearing the names of the
streets were to have the privilege Of
bidding upon the contract without any
interference upon the part Of second
'Or third party in the combine, their
bids to be put in higher than that of
the winner.
Hardly a week followed when the
ructiOn which broke up the combine
occurred, and it occurred through one
member besides Mr.. Kehrberger bid.
ding upon the North Commercial con.
tract. Mr.. Kehrberger not only failed
to have the privilege of submitting the
only bid, or the lowest bid as a member
of the combination, but did not get the
contract by $1,000 on account of the
-Arenz company coming in and under.
-Uidding him.
Arenz & Co. Also Fails.
The combine, however, failed to take
into consideration another contractor
who was laying on the outside and
waiting to step in and take the plum
away from them Although Arenz &
Co. defeated Mr., Kehrberger by large
figures, the Geiger Construction com.
pany, at the last moment, submitted
did on the North Commercial street job
by messenger to the city council and
received the contract. The newcomers s
bid was far lower than either Arenz &
Co. or Mr.. Kehrberger.
The members Of the proposed com
bine had no idea that the Geiger firm
was in the city, nor was that company
within four miles Of Salem when it con.
cluded to enter the contest for the con.
tract While the combine was dicker.
ing to land each Of the three streets,
Mr. Geiger was in the east. He heard
of the North Commercial job and
knowing it to be good one, immedi.
ately started for Salem He arrived at
his father.in.law' farm north Of Salem
and proceeded TO figure also. While
the bids were being opened at the city
hall, the Geiger bid was brought in by
a messenger boy and accepted by the
council as the lowest among those sub
mitted.
Combine No More.
There is no more paving combine in
sofar as Kehrberger is concerned. He
declares that he acted in good faith
with the other contractors in the con
soIidation, but after finding himself
double-crossed by one Of the members
he dropped the whole proposition and
intends to hoe his own row hereafter
irrespective Of what offers are tender
ed him. Mr.. Kehrberger declares that
Continued on page four.l