Evening star., 1926-05-15
REAL ESTATE

Perhaps the most vital question
that Is stirring the building construc
tion industry of the Nation Is that
of day labor. The day-labor system
which has brought State and Fed
eral Government into the construc
tion industry, according to prominent
construction engineers and contrac
tors. has had a marked effect on the
activities of the general contractor.
An effort is now being made in
Congress to eliminate the Federal
Government from continuing in the
building industry in connection with
public works. such as Federal high
ways. dams. reclamation projects, etc
This bill. n. r. S902. introduced by
Representative Campbell OF Pennsyl
Vania, would preclude the erection OF
public works by the daY-la hor system
and would establish the bid system
under which the general contractor
making the lowest bid would usually
get the contract Times OF public
emergency declared by the Presideni
are excepted.
Under the day-labor system bids by
private concerns are eliminated and
the Federal or State government
purchases its materials, hires its own
labor and conducts the work under
the supervision OF its own officials.
Resent Such Competition.
The chief complaint of the Asso-
ciated General Contractors. architects
and the Chamber of Commerce of the
United States is that under the day
labor system both Federal and State
governments are entering into busi-
ness. This is felt to be an un-Amer-
ican principle, and dangerous one.
in that the general contractor and
private business man is being driven
from his legitimate field of business.
Not only on the grounds OF govern
mental interference with private bus
mess, but because day labor is inetfi-
cient, EXPENSIVE. dIlatory and presents
wide opportunities for abuse, do these
interested parties claim that they OPP
pose the day-labor system.
The favorable recommendation OF
II. r. S902 by the subcommittee of the
House judiciary committee this week
was hailed with much enthusiasm by
those in the building industry and has
been termed the first actual move by
Congress toward eliminating Govern
ment from the field of private bus
tness."
Army Engineers Criticized.
The Corps Of Engineers of the
United States Army has come in for
ite share of condemnation by the AS
sociated General Contractors OF Amer
lea. who do about SO, 900. 600, 900 worth
of the Nations annual construction.
II Is charged by the contractors that
the Army engineers have driven pri.
vate business out of contracting by
bids for many Federal jobs and that
by the day labor system used by the
engineers vast sums of money have
Lat - AA fox ~
mates have been exceeded two and
half times in the ultimate cost.
1t is pointed out that under the day
labor system Federal and State gov
ernments are not held to completing
Jobs within a specified length Of time
and at stated cost under bond, as is
the general contractor.
In the hearings on the bill Brig.
Gen. G. r. Marshal, 1r., retired, for
mer head Of the construction division
of the United States Army during
the war and now president of the As
ISOLATED General Contra ctors said in
discussing the day labor system:
Great Cost OF Projects.
THE construction of public works
In the United States is today costing
the American people something like
s., 900 900, 900 a year, sum which
promises to pyramid to inconceivable
proportions as the decades pass. The
construction work Of the Federal
Government alone seems likely to run
well over S200,00,000 a year. Thus
does 1t become evident that the man
ner in which this money is spent is
a matter of no small public concern.
There are two well-defned methods
bv which an individual, a community,
a government. may perform It's con
struction work. One is by letting !.
out by contract to the lowest reSpons-