Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-03
AVERAGE PAY BILL
SIGNED BY HOOVER
Elimination of Cheap Labor
Contractors on Capital Jobs
Seen in Enactment.

Elimination of cheap labor con-
tractors from competition for WASH
ington municipal building was seen to-
day when President Hoover signed the
bill providing that regular average
local wage scales be paid by all con-
tractors engaged in the construction of
buildings for the Federal Government
and the District of Columbia.
Representatives of local contractors
and labor unions vigorously protested
the award of bids on school buildings
here last Fall to a contractor who EN-
ployed out-of-town non-union labor
and paid a lower scale. Although sew
eral hearings were held at the District
Building, th& Commissioners wsre
forced to follow the law and award the
contracts to the lowest bidder.
Most of the contractors on the Gov
eminent triangle building program have
employed only union men and paid their
full scale
The terms of the measure signed by
the President today require contractors
and subcontractors engaged in con-
structing, altering or repairing any pub
lie building of the United States or
of the District to pay their employees
the prevailing wage rate, when such
wage rate has been established by pri-
vate industry.
Labor Secretary Umpire"
In the event the contracting officer
Is unable to adjust any dispute as to
the prevailing wage rates, this law pro-
vides that the matter shall be referred
to the Secretary of Labor, whose de-
cision as to the wage rates shall be
conclusive.
In urging this bill, both in the Sem
ate and the House, emphasis was laid
on the fact that the Federal Govern
ment has entered upon an extensive
public building program in the District
OF Columbia and throughout the coun-
try which will continue for a period of
or 10 years, and will result in the
expenditure of approximately half a bill
lion dollars.
1t was intended, those in charge of
the legislation emphasized, that this
vast sum Of money should be expended
not only to properly house Federal Of
fices in their own buildings, but also TO
benefit the United States at large
through distribution of construction
throughout the communities without IA
Voring any particular section.
The Federal Government must. under
the law, award its contracts to the low
est responsible bidder. This has pre-
vented representative of the depart
mentS involved from requiring success
full bidders to pay wages to their en-
ployes comparable to the wages paid for
similar labor by private industry in the
vicinity of the building projects under
construction.
Cheap Labor Imported.
Though the officials awarding con-
tracts have endsavored to persuade
contractors to pay local prevailing
wage scales, some successful bidders
have imported labor from distant 10
calities and have exploited this labor
at wages far below local wage rates.
Daniel Garges, secretary to the
Board of District Commissioners. ex-
planned this afternoon that the new law
probably will be put into effect by writ
ing a prevailing wage" proviso into
the specifications for the structures on
which bids are being sought.
The new legislation. Mr.. Garges ex-
planned. will not alter the present law
requiring the Commissioners to award
contracts to the lowest bidders.
Thus, in carrying out the law re-
quiring union wages. the Commissioners
would specify that that scale of pay is
to be applied to the labor just as it
would specify, for instance, marble
trim. If a contractors bid is low be-
cause he uses cheap labor, he would
be refused the job just as he would
If he were to substitute limestone trim
for the specified marble.