The New York herald., 1921-05-14
CONTRACT RENEWAL
AROUSES COMMITTEE
Lockwood Investigators Say
Board Of Education Has
Fl0uted Findings.
MAY RECALL MAYOR
Would Learn if Reduction
of | Per Cent. Is Best Bar
gain Obtainable.
DIR. FERGUSON EXPLAINS
Believes Need of New Schools
Transcends Other Con-
sideratiOns.

Members of the Lockwood legislative
pressed surprise and no little indigna-
! tion yesterday at the reported action
of the Board of Education in voting
to revive certain school contracts that
were held up last fall as a result OF
the committees disclosures OF col
lusive bidding. 1t was said that should
the contemplated action be taken by
the Board of Education the members
and possibly Mayor Hylan might be
called again before the committee to
explain why a reduction of l per cent.
from the figures of the original con-
tracts were accepted as the best bar
gain the city could get.
The boards action was contained in
buildings in Brooklyn, Queens and
Richmond the total contracts for which
amounted to s360,724, at a reduction of
! per cent. from the face of the con-
tracts.
Attitude Unchanged.
An account of the boards action
published in a Brooklyn newspaper OF
Thursday conveyed the suggestion that
the Corporation Counsel at whose sug-
gestlon the original contracts were can
celed, had undergone a change of front
and now approved the original con-
tracts, despite the connection OF some Of
the contractors with the Hettrick code
Of practice" ring, with the one per cent.
reduction.
Corporation Counsel John p. O'Brien
explained yesterday that this was not
the case. There has been no change
in the attitude of this office toward
collusive bidding" he declared, adding
that whatever opinion his office might
have given the Board of Education
would be concerning the legality Of the
resolution by which they proposed to
go on with the school construction at
the reduction mentioned.
1t was explained also that the action
OF the Board of Education was
prompted by the imperative need of
more schools in the communities af-
fected. and that the renewal OF the
original contracts was contingent upon
the signing of a stipulation. by the
cover in the event fraud or collusion
later was proved.
DIR. John A. Ferguson of Brooklyn.
chairman of the building and sites COM
mittee of the Education Board, was one
who felt that the need of new schools
transcribed other considerations. Others
felt that while 1t was one thing to can
eel a contract, 1t was another to pro-
tect the city from damage suits re-
sulting therefrom.
Called "sccond Surrender"
The one per cent reduction amounts
in most cases to what the contractors
ADDED for Counsel fees" which was
one of John T. Hettrick's methods Of
adding to the gross The members Of
the Lockwood committee who ex-
pressed themselves yesterday felt that
the renewal of the contracts with the
omission of this item, the only con-
dition imposed. was a flouting of the
committees findings and little short
Of a second surrender to the building
ring.
The committees record and the ex-
hibits in the Cumberland Street Hos
pital case have not yet been sent to
District Attorney Lewis of Kings
county. and the suggestion was also
pue forward yesterday that the evil
dence might be laid before an extraor-
binary grand jury in New York county
ir.asmuch as the alleged Illegal con-
tracts were signed In Manhattan.
II was learned yesterday that the
Greater New York Association of Heat
ing and Plumbing Contractors decided
Inst wednesday To- disband immedl-
etely and copies OF resolutions TO that
effect were cent To all members as well
as to the Lockwood committee. That
was one Of he organizations OF which
Frank s. Hanley was secretary and
whose activities were the subject OF
Samuel Untermyer's inqulsition last