Evening star., 1932-01-22
CONTRACTORS ASK
HOOVER PAY VIEW
Order for Prevailing. Wage on
U. S. Project Brings Re-
quest for Specific Rate.

The executive order by President
Hoover yesterday to keep contractors
on Government building projects from
paying lower wages than other en-
ployes in the same community today
brought to the White House an appeal
on behalf of the contractors for pre-
determination of just what are the
prevailing" wage scales.
The Hoover order was that stipulat-
tionS of the Bacon-DaviS prevailing
wage law shall be written into all
public building contracts along with a
clause permitting cancellation of the
contracts if the prevailing community
wage scales are not paid.
Existing contracts do not include the
cancellation stipulation or the prohibi-
ton of rebates, as will be incorporated
in the new contract agreements.
Specified Rates Asked.
A letter from the National Associa-
ton of Builders Exchanges, having a
national membership of about 1000
contractors and subcontractors, petit
tionS the President to incorporate in
the specifications on public projects
the rates to be paid to the building
mechanics. The letter, signed by Earl
Stokes, executive secretary of the as
sociation, declares that this is neces-
sary SO that contractors would know
on what basis to compile their bids.
Organized contractors. it has been
argued for some time, are potential
victims" of the Bacon-Davis act, since
it prescribes that the prevailing" wage
scales of a community must be paid
by the contractor, but sets up no ma
chinery for determination of these
scales before the contractor submits his
bid Then, it has been argued if it
is found later that the scales paid are
not up to the prevailing wage" levels,
the contractor must pay the increased
sums without receiving any additional
compensation from the Government
for the work done.
The National Association of Builders
Exchanges declares in its letter to Pres
ident Hoover that on Government
projects the contractors are not con-
cerned with what wages shall be, SO
long as he can know before bidding
what they are, because the wages are
computed in the bid price.
Doak Ruling Requested.
The letter adds that the association,
representing both contractors and sub
contractors interested in Government
building projects, has requested rul-
ing on the wage scale question from
Secretary of Labor Doak who is desig-
mated in the Bacon-DaVis act as the
final judge of what shall be determined
to be the prevailing" wage scales.
Secretary Doak, however, has con-
sistently replied that he could not pre-
determine prevailing wage rate" the
association informs Mr. Hoover.
I'VE are writing to ask how the exec
utive order will affect the position taken
by Mr.. Doak, and how the prevailing
wage rate will be determined, and by
whom" the letter continues.
The association suggested that the
Supervising Architects Office be charged
with the responsibility of Incorporating
on page l of all Federal specifica-
tions, that the prevailing wage rate
would be considered the rate being paid
by the majority of the contractors or
SubcontractorS to the various building
trades crafts in that particular city or
community in which the work was to
be done, on the day that the Super
Vising Architects Office asked for bVj."
The contractors body declared: ut is
not a question with the contractor or
the subcontractor what wage he has
to pay on Federal work, as that is the
Governments burden, but he does want
to know what figures to use before he
begins to figure a Federal project, so
he may be assured if he should be the
successful bidder and started the work.
that some one would not change the
figures, because some certain group
thought they were not what they
should be