Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1915-03-09
CONTRACTOR RULE IN TERRE HAUTE
Who Got the Taxpayers Money and How-Hundred of People
Lost Their Homes Because of Nerosm
in City Politics.
BY IRWIN L. GORDON

TIME Fairbanks Organization at
i Terre Haute after all opposition naa peel
beaten, began a systematic contract graz
Within one year the plunder of the CITY
TREASURY caused the tax rate to RISE while
the enormous assessments on property
holders forced hundreds of the citizens to
lose their homes. They were unable 10
pay the tribute exacted by the contractors
Roberts already had an unsavory reputa-
ton in Terre Haute as a contractor IL
was he who had paved Maple avenue and
Lafayette street and waged bitter ngnt
against the Board of Works for refusing 10
accept his inferior material. 1t was he who
broke into the city cisterns to save money
in hauling water 1t was he VINO hao
mulcted the city on intersections and cheap
curbing These contracts, however, amounted
to no great sum, but they were indicative
of the type of work to be done when the
contractor gained more power.
During the Roberts campaign one OF the
principal cries was poor streets-H miles
must be paved. The Organizations original
project of eliminating the leading thorough
fares from the city plans and placing their
maintenance on the township was popular
with the citizens, as the wealthy township,
and not the city, would have to pay for the
X.
paid so long as 1t gained its point. When
the PENNSYLVANIA Railroad, the largest town.
ship taxpayer fought this scheme on con-
stitutional grounds the contractors were
stuck-only about 100000 work had been
completed. Then Roberts and his friends
turned to the city streets as their salvation.
Philadelphia History Repeated
The disclosures made during the investiga-
ton by the Catlin Commission In Philadel-
phia in 1912 were identical with those which
have come to light in Terre Haute during the
last month.
There were the same contractor poll
ticians There was the same fraudulent ad-
vertising There were the same supplemental
contracts, the same juggling of accounts,
the same substitution OF material, the same
faulty work, the same fake inspection, the
same political pull which gave millions to
the Philadelphia contractors but only thou
sands to the Terre Haute contractors. The
courts of Philadelphia condemned the meth
ods OF the Philadelphia bosses; three of
the leading experts in the country called the
work at League Island Park contracting
crime; but the political power held by the
contractors kept them in power and has
secured additional contracts. In Terre
Haute this has not been the case. The
citizens in that city have started suits to
prevent the completion OF the work, and
are about to begin proceedings to compel the
contractors to refund. The Governments in
tervention has been the great city saver
It has completely and for all time ended the
contractor regime in that Indiana city.
Roberts and his partners on the Board of
Works-George Ehrenhardt and Harry Mont
gomery-saw that all the contracts went to
the Cain Construction Company of Gary,
Ind. In Terre Haute four fake subsidiary
companies were formed to deceive the
citizens. High-sounding names were given
to them, but the political sharpers forgot to
have them incorporated in Indianapolis.
Now, in the letting Of the contracts the
city officials-as in the case OF Henry Clay
in PhiIadelphia-ma all kinds of substitu-
tions and changes. and so tied up the sub
contractors that they would be forced to
purchase supplies from firms named by the
Organization and be absolutely under their
control
The work began an 100000 contract was
let. This was for asphalt concrete and brick
streets One of the leading engineers in the
Middle West recently went over the entire
work and presented figures showing that
slOO. 900 extra profit has gone into some
body's hands-probably Sl50,O0O In other
words, the asphalt contracts, which were let
at S1s4 a yard. could have been fulfilled at
s5 cents a yard and then yielded IS per
cent profit to the contractor. This showing I
strangely resembles the famous rs cents 70
81 IS asphalt rate by which the Filbert Paw
ing ana Construction Company muleted this
city under Mayor Reyburn.
trip 10 League Island Park ana a view
of the cracked broken concrete eurba and