New-York tribune., 1921-10-23
Failure to Understandable
on Awarding of Health
Department Contract
Adds to Tax Burden
Officials Delay
Will Be Probed
Offer of $4,000 a Year
for Work Not Accepted,
and Jumps to $4,000

Ignorance of the law and provisions
of the city charter on the part of GER
tain municipal officials, queer and con-
fiictlng advice of the Corporation Coun-
sci and unaccountable delay in the
office of the Department of Health. have
resulted in loss to the city of about
$685. 900 in connection with the letting
of contract under the jurisdiction
of the Health Commissioner. The
data in the case are to be presented to
the Meyer Committee for investigation.
In the course of an investigation re-
lating to the matter, a representative of
The Tribune discovered yesterday that
the city had an opportunity on June 30,
1920, to enter into tive-year contract
with the Products Manufacturing Com
pany for the removal of dead animals
at an annual cost of $57,O 900, or $4,750
month.
Big Increase in Cost
For one reason or another, in which
the advice of the Corporation Counsel
figured prominently, the matter was
permitted to drag along for eleven
months, at the end of which time the
city was forced to grant the Products
Manufacturing Company two-year
contract at a total cost of $354,000.
month as against the S57 900 year
or $4,750 month, which the city could
have arranged for if the administra-
tion had acted promptly and with
knowledge of the law.
1t appears that a contract for the
removal Of dead animals held by the
Products concern had expired on June
80, 1920. The city then was paying
s44,730 year for a hve-year period.
AS early as January of the same year
, H. A. Schickling, auditor of the Health
Bureau. had notified DR.. Royal S. Cope
land Commissioner of Health, that a
new contract would soon be necessary
and that specifications should be pre-
pared.
II was just at this point. The Trb-
unc's representative learned, that the
first bungle occurred. On March 15,
1920, the Commissioner asked the
Mayors permission to advertise for
bids The Mayor approved and the bids
were advertised. 1t is pointed out that
under court decision of January, 1910,
! L,
this particular job was exempt from
public letting, so that the Health Com
missioner was empowered to have the
work done in the open market.
Bids Opened on May S, 1920
Nevertheless, bids were opened on
May s. The Products Manufacturing
Company bid $4,000 a year for FIVE
years to do the work, or $4,750 a
month. The firm was notified on May s
that it would be granted the contract,
but no legal papers were signed by
either party, because the Health Com
missioner found himself $6,164 short
of the money to complete the contract.
Commissioner Copeland requested
the transfer of the necessary $6,164 OF
i the Board of Estimate on May 13 to
! the matter was referred to the Comp
troller The Comptroller on June 25
recommended that the Health Commits
sioner's request be denied. He based
his advice, he said, on all opinion of
George P Nicholson, Acting Corpora
| tion Counsel, who had held that the
acceptance of the bid was improper
and invalid because the Health De-
partment didn't have the $6,164 to meet
the obligation.
On December 81. however. the Cor
pOratlOn CounSei III reply TO anOther
query on the subject said "The con-
tract having been awarded, the Board
of Health is bound by the award" He
thus held that the Health Department
was bound by an award upon an invalid
, bid
Another Snarl in Tangle
In the mean time, the contract hav-
! ing expired on June 80, and the under
standing with the Products company
having been declared invalid, the Health
Commissioner applied to the Board of
Aldermen for exemption of the work
from public letting, which exemption
already had been given to him ten
years ago by court decision. Under
the exemption granted by the Board of
Aldermen. it appears the work was
done on monthly basis by the Prod
ucts concern at an average of S14,250
a month.
The Board of Estimate. however, on
August 20, had reconsidered the M at
ter, and assented to q transfer of the
S6.l64 which the Health Commissioner
had requested to enable him to legally
close the contract. Why the contract
was not then formally entered into has
never been explained. The facts are
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