Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-11-12
CITY MAY ALTER
CONTRACT PLANS
May Arrange for Time Elk.
tensions Instead of
Cancellations
PRICES LIKELY TO DROP
Wars End Will Change Mate.
rial and Labor Market Con.
ditions, 1t Is Believed
PRICES LIKELY TO DROP

The end of the world war finds Coun-
ellis preparing to cancel municipal Inn
provement contracts involving many
millions Of dollars. Time extensions VIII
probably be resorted to instead OF cam
ce,lations in all but the transit contracts
with the Keystone State Construction
Company.
Another effect Of the close of the war
on municipal undertakings will he no.
ticed in 1919 finances. The budget now
being prepared is based upon the highest
prices for materials and labor. and II
the members of Councils Finance Com
mittee allow the sums asked for supplies,
etc, departments are likely to find them
selves with large balances in some items
because OF altered prices.
Contractors and their surety compa-
MES have been extremely anxious to be
relieved from agreements Affecting bridge
and sewer construction and highway
work on the Northeast Boulevard. Dur
ing the closing months of the war when
prices for material and labor were at
their highest very little permanent i'm
provement work was done by contractors
in the hope OF making satisfactory finan-
cial settlement with the city and of being
released from further responsibility.
Keystone's Contracts
The keystone state Construction Com
panys transit contracts provide for the
completion of the subway work under
City Hail. the building of the Arch and
Locust streets subway and the Thomp-
son street sewer. Plans for a release
Of the company and payment by the
city of half million dollars in settle
ment are now before Councils and may
be approved November 81.
Opposition to this settlement is ex-
pected from members opposed to per-
mitting the National Surety Company
and other bonding concerns escape from
repayment to the city any part of the
premium paid them as surety for the
faithful performance of the work. Mayor
Smith. as Chief Executive of the city,
approved the plan that calls for no
premium repayment. As head of the
Thomas B. Smith Bonding Company he
enjoys his share of the profits from such
an agreement.
Whether the opposition to the annul-
ment proves powerful enough to defect
the present plans of canceling entirely
the transit undertakings will be shown
from the final rollcall when the settle
ment is called up in the form of an
ordinance Councilmen opposed to the
settlement in its present form argue
that It will establish precedent that
will permit bonding companies in the
future to escape scot-free from RESPONSE
bility on municipal bonds.
Among Other Projects
Other projects that contractors are
anxious to abandon upon a satisfa ctory
financial settlement include construction
work on the Northeast Boulevard, a
new bridge on Bensalem pike, sewage
disposal work In connection with the
new plant In the north section of the
city and number of others. Most OF
these are In process of settlement and
their abandonpent or partial abandon
ment leaves the Department of Public
Works with little to do aside from routine
work and small construction problems
arising from work incident to the war
time growth of the city. Although
nothing definite has been decided by
Mayor Smith and other officials in
trusted with the task of making the
settlements relative to these contracts
the suggestion has been made that the
contractors be granted time extensions
and a final settlement, based on after.
the-war prices.