New-York tribune., 1918-06-08
Subways Relief
Plan Is Rejected;
Strike Looms Up
Estimate Board Proposes
New Scheme; Contractors
Term 1t Unsatisfactory
Ignore Lockwood Law
Union Head Notified of Inten-
ton to Return to Old
Wage Scale


The situation on the uncompleted
subways assumed a more serious as
pect Yesterday, when the Board OF Es-
innate failed to afford any satisfactory
financial relief to the contractors by
which they could meet the demands OF
the laborers for increased wages and
assure the completion Of the new lines.
The agreement proposed last week by
Controller Craig, by which the con-
tractors will meet the wage increases
this week, was yesterday declared IL
legal by the Corporation Counsel
new plan, proposed yesterday by
the Corporation Counsel, was declared
to be as illegal and unsatisfactory as
the first one in statements issued oY
the General Contractors Association
and the Public Service Comm ssion,
following the adoption OF the Corpora
tion CounsePs resolution by the Board
cf Estimate. Frederick L. Crawford,
president of the General Contractors
Association, sent letter Thursday to
Mathew A. McConville, chairman Of
the allied subway labor unions, notify
ing him that unless the Board of Esti-
mate took some satisfactory action
yesterday the contractors would be
compelled to return to the old sched
ule of wages.
General Strike Likely
In other words, the contractors will
not meet the higher wages after this
week, and it is expected this will mean
t,.,1r 1I,4- Il
construction work unless the city au
thorities find more satisfactory way
to meet the situation before another
week rolls round. The new plan sug-
gested by the Corporation Counsel
ignored any action under the Lockwood
law, passed by the last Legislature and
approved by Mayor Hylan, for the spe
cfic purpose of joint action by the
Board Of Estimate and the Public Ser
vice Commission to afford the con-
tractors the relief they claimed was
imperative.
The resolution adopted by the Board
Of Estimate was that the contractors
should file suits against the city based
on damages, delays and breach of con-
tract, and, in consideration of the re-
lease of their claims, the Controller
may agree to pay to the contractors an
amount equal to the increased amount
of wages and Materials The reso!u-
ton was based on Section 149 of the
city charter, which was passed during
The building of the first subway to help
John B. Mcdonald, the contractor, out
of his troubles when the eight-hour law
was passed, and empowered the city to
give him compensation for wages.
Cranford's View of Case
The statement issued last night by
Mr. Crawford; as chairman of the sub
way contractors committee, follows:
The action of the Board of Estimate
this morning repudiates and throws into
the wastebasket the Lockwood law which
was passed by the Legislature, signed by
the Governor and the Mayor, with the
approval of the Board of Estimate itself.
as necessary measure to meet the situa-
tion that the war has created in finishing
the great subway system. This action not
only rcpudiates the Lockwood law, but it
transfers from the joint control of the
PUBLIC Service Commission and Of the
Board of Estimate the settlement of this
very difficult and serious situation into
the hands of individual, the Con-
troller.
week ago the contractors on the sub
way were given assurances that the Board
of Estimate would work with the Public
Service Commission under the Lockwood
law. On the strength of those assurances
we temporarily adjusted the labor difficult
ties. | cannot in the action taken by
the Board of Estimate to-day anything
else than q reputation OF that assurance,
because this action contemplates an indi-
vidual adjustment with each contractor,
while our labor situation faces all OF US
and must be settled simultaneously.
General Contractors Statement
The statement issued by the Genera
Contractors Association said in part
We are constrained to say that the pro-
posed procedure of the Board of Estimate
affords no practical relief. The relief
ment of two things. namely first, meet
ing the just demands of the men for
higher wages to avoid the strike and the
increased cost of material and labor due
plated and unforeseen. and. second. to
mitigate the woes of the straphanger
within reasonably early period. To ac-
complsh these results prompt and cffec-
tive provision must be made for the pay
ment of the advanced cost of labor and
material caused by the war, for which the
contractors are not fairly chargeable and
the burden of which they have been carry
ing for the last fourteen months
The Board of Estimate proposal fails to
meet the situation for two reasons: First,
it is method which would take months
to effect the settlement contemplated and
the situation is one that demands settle
men in hours, and. second, it offers no
guarantee which would warrant any bank
ing institution to advance funds pending
the adjustment of the claims. so that the
contractors could proceed with their work.
The contractors added that the Lock
wood law provided the only fair basis
for adjustment, basis of cost and nc
profit. They declared that if disastc,
resulted to subway construction the
blame could not be laid to the con.
tractors nor to the Public Service
Commission but was CLEARLY charge.
able to the Board of Estimate"
EX-Justice William l.. Ransom, chief
counsel for the Public Service Com.
mission, who represented the commits
sion before the Board Of Estimate, also
strongly disapproved of the action OF
the board
Corr,n To.A,.ra XII.