Evening star., 1932-05-03
CONTRACTORS SEEK
1,7)O,OlO,O()O FUND
AS AID TO BUILDING
New Federal Corporation
Proposed for Public
Improvements.
STATE AND CITY LOANS
SOUGHT UNDER PLAN
Association Takes Up Resolutions
Before Concluding It's Sessions
Held Here.

Establishment by the Government Of
a ST, 500, 100000 Productive RecontrIc-
tion Work Corporation" was proposed
tocay by the governing board of the
Associated General Contractors of
America. The affirmative vote endors-
ing the proposal was taken without dis
cussion, as the board prepared to con-
Hotel
This agency, its capital drawn BY
issue OF Government Eonds, would lend
at cost to States, cities, and other pub
nc agencies, amounts for financing,
SeH-supporting and amortizing public
improvements. The program recently
was adopted by the Policy Committee
OF the Construction League of the Unit
ed States, body representing IA allied
national organizations connected with
the construction industry.
Slum rehabilitation, sanitary i'm
proyementS, modernization of obsolete
utility plants and improvement of pub
llc transportation facilities were recon-
mended by the general contractors as
the best subjects for the outlays by the
proposed reconstruction work CORPORA
ton.
Held Insufficient.
The board held the Reconstruction
Finance Corporation and the newly
broadened Federal Reserve credit DOW
ers have made the credit of the United
States 'impregnable, and have made
conditions favorable for utilization of
bank and industrial credit. BY them
selves, however, these forces were held
insufficient to bring about RESUMPTION
OF business and industrial activities.
After a prolonged discussion over
bonding matters, the governing board
early today directed its Bonding Com
mittee ito work out a set-up on public
work contracts which shall Include the
dispensing Of all bonds and the qualifi-
cation of the contractor which shall
mean that the job will go to respons-
ible contractor"
The issue was raised by William L.
Collins of Hornell, N. Y, a member of
the Bonding Committee, who declared
that the bonding companies have failed
TO cooperate with contractors in en-
deavoring to settle the many differences
that exist between the two groups.
Take Up Resolutions.
The governing board was preparing
to pass on a number of resolutions be-
fore 1t adjournS its session. One of
these included proposal advanced yes
terday for voluntary one-price system
of bidding within the construction in
dustry to overcome the present evils of
bid peddling.
The following report of the Nomina-
t1ons Committee was adopted: A. C.
Tozzer Of New York City, vice presi-
dent; B. L. Knowles, worcester, Mass,
director of the New England district;
Richard Hopkins, Albany, N. Y, chair
man of the engineering division;
Charles Ray, Grand Island, Nebr., vice
chairman, engineering division; Andrew
Eken Of New York City. and Charles E.
Shea of Portland. Greg, members of
the advisory board.
Amendment Increased.
The board renewed its Endorsement Of
legislation amending the Bacon-DaviS
building labor wage law so as to pro-
vide for the predetermination of what
shall be the prevailing scales on each
project. The action was taken yester-
day in approving a stand taken pre-
yiously by the legislative committee of
the A. G.. c., of which Col George B.
Walbridge of Detroit is chairman.
The board also urged enactment of
legislation to provide for use of uniform
Government contracts, the creation of
an administration of public works, the
establishment OF system of Federal
home loan banks and the repeal of the
recapture clause Of the transportation
act.
The potential value Of advance plan
ming Of public construction work was
cited by Col. D. H. Sawyer, director of
the Federal Employment Sterilization
Board. He reported that his bureau Is
engaged in surveying future plans of
approximately 120 construction agencies
Of the Federal Government with the
ultimate object Of balancing these ac-
tiVitieS.
Favors Advance Planning.
Belief that advance planning Of pub
lie works also should be adopted by
States and smaller governmental units
also was expressed by Col. Sawyer.
The contractors were urged by c. w.
Galloway. vice president Of the Balti-
more g. Ohio Railroad, to support pro-
posals for regulation of interstate truck
and bus operation, which, together with
subsidized water transportation, he said,
are working serious hardship on the
railroads.
Universal elimination of railroad
grade crossings is desirable, but not
financially possible, he said, declaring
that it would cost his road S600,000,000
to eliminate all of its grade crossings.