San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1925-11-19
10 CENTS
As FAIR PRICE
FOR ROADS
Engineer Declares Company
Could Make Profit at
Low Figure.

AUSTIN, Nov. 19.-LP)-Ten cents
square yard would have been a rca-
sonable price for the state to pay the
American Road Company for asphalt
surfacins Of more than 4,00O,0CC
square yards of state highways, II. A.
Wise, engineer of Harris County, tes-
titled today. The state is suing for
cancellation Of contracts, under which
the highway commission paid the
company 30 cents square yard, for
recovery of S650,OO alleged excess
profits, and for forfeiture of permit to
do business.
Frank V. Lanham, chairman Of the
highway commission, sat early today
with the individual defendants, Off
Gals of the American Road Company
and conferred at intervals with them
and their counsel.
PRICE UNREASONABLE.
Mr.. Wise said he based his estimate
OF 10 cents a square yard on a letter
OF specifications written in March by
Chairman Lanham to the American
Road Company. He said, il the com
pany should be required to put on two
courses, as the company and commits
sion contend, it is obligated to do, be-
tween ID and 20 cents at the maxi
mum would be reasonable price. He
characterized the 30 cents n square
yard paid the defendant company as
unreasonable.
Mr.. Wise said he had been in civil
engineering work 30 years, that he had
graduated in engineering from Ohio
State University in 1898, and was ia
miiiar with cost of asphalt topping.
AID JUDGE.
After Mr.. Wise had said that under
no conditions would he have approved
a price Of 30 cents a square yard, Joe
Worsham. attorney for the defendant,
said: 1T occurs TO me that the
Judge is sitting up there to determine
whether that price was reasonable.
Yes. and we're here to offer him
through this witness some expert adj
vice." Ernest May, assistant attorney
general. said.
In calculating that 10 cents was a
reasonable price for a one-coursc
Treatment. Mr.. Wise said that the as.
phalt could be bought for ) IL cents
d gallon at Frceport. hauled about 80
miles for 90 cents a gallon and that
with application of half a gallon to
ihc square yard. the cost to the con
Tractor should not be more than s
cents square yard.
PROFIT FOR COMPANY.
He figured that an allowance of
o'nts square yard would take care
% insurance and bond. overhead, sal
Ary OF supcrintendents. and leave
profit for the company of / cent
Yard. Mt cost Of 10 cents to the state.
On cross-cxamination. Mr.. Wise
went into a detailed analysis Of as
lhait surfacinC done under his ap-
l"oval in Harris. The defense sought
10 show that on n number of projects
IN Harris county had cost substantial
~ more than 10 cents square yard.
ile denied this allegation and said
while the cost was slightly more than
10 cents n yard. the projects were
ANAL and could not be compared with
fhc big contract let the American
kOad company.
SMALL JOBS COST MORE.
Among the Harris county projects
iamCd by Mr.. Wise were the Tcle.
phone and BaytownGoosc Creek
roads. The first road was n mile and
q half long and the second seven miles.
Hadcn and Austin. Houston cOntrac-
Tors. did both Jobs. Mr. Wise said
If tho reads had been longer he never
would have approved Hadcn and Aus
tins bids.
On both Harris county jobs, the
contractor laid six-tenths Of gallon
az asphalt TO the square ward. Mr. !
Wise estimated that taking the de-
PENDANT road company's specification
Of half gallon as a basis the Tele-
phone road job would have cost ~
cents square yard and the Bay
town 100 cents.