The Washington times., 1931-02-12
WORK
COSTS j: s.
HUGESUN
Officials Demand Action AS
Senator La Toilette Is
Asked to Take Action


Asked to Take Action
A new form of racketeering has
invaded Washington, form hat
costs the Government hundreds
of thousands of dollars in inferior
work. drives down the wage scale
of labor and adds to the unen-
ployment situation by bringing in
cheap labor from the South, it
was charged here today.
This accusation was made by
local union labor leaders and sent
to Senator Robert M. La Toilette
in the hope that some action will
be taken to. combat it here and
elsewhere.
Act as Brokers
According to the charges, which
were made by John J. GleesOn
and Thomas Lane, officials of the
BrickIayers, MaSOns and PlaS-
terers' Union, the contractors who
have been bidding and winning
scores of Government jobs are not
contractors at all. but merely act
ing as brokers, driving legitimate
contractors out of the field.
These men, it is declared, know
little or nothing of contracting,
and have neither machinery, ma
terial nor experience to engage in
the industry.
When Government contract
is to be let, they go to sub-con-
tractors, bricklayers, electricians,
plumbers, excavators and others,
and ask them for bids on their
part of the work.
Receiving these bids, they add
them up, take the grand total
and submit that, leaving no mar
gin for themselves. Often too, it
is charged, number of these
"racketeer" firms will combine
and decide to let one man or
group have the contract.
The Government requires
nothing of these men submit
ting bids other than that they
be able to furnish bond.
No Proof Needed
He is required to offer no proof
of ability to perform the job.
If he wins the job, he calls in
the sub-contractors who he has
previously consulted and tells
them that he has the Job and
asks if they would like the sub
contract. Here is where the
profitable part of the "racketeer," ,"
work comes in.
He informs the sub-contractor
that the price he named n the
first place is too high, and that
he has an offer much lower. or
course, if the sub-contrActor is
willing to be reasonable, he would
r2uch prefer that he get the job.
And the sub:cOntractOr, anx-
ious to get the job, is usually
willing to shade his price. And
it is here that the contractor
makes his profit. Depending
on how much he is sIable to beat
down each Sub-cOntraCtOr de-
pends how much he makes off
the job.
Beaten down in price, the sub
contractor is unable to pay the
usual wage scale. He must get
nonunion or unSkilled workers.
often he uses inferior materials.
But here the general contractor
has him again.
The sub-contractor is forced to
put up a bond to him to com.
plete the work properly, and If
the Government inspectors refuse
to pass his work he must do 1t
over, at a loss to himself.
Adds to JObless
Under this system many sub
contractors, unable to employ
men at the union scale of wages,
import cheap labor, thus throw
ing workmen in community out
of employment.
The practice is demoralizing
the building industry.
A recent Government project
was cited where the contractor
who won the bid furnished moth
ing but the bond. When the job
was finished he merely put on his
coat and hat, and collected his
check.
To curb this, it is asked that
the Government demand when
letting bid the name of the sub
contractors to be employed.
This, it is pointed out by the
union officials, would eliminate
from the field the racketeer con-
tractor who goes in with the in
tention of making his profit by
beating down the sub-contractor.