Evening star., 1934-05-04
Will Demand Explanation
Why They Allowed Alleged
Violation of Law.
MILLIONS IN PAY HELD
TAKEN FROM WORKERS
Labor Leaders Present Evidence
to Back Charge Against
Contractors.

AAICA ACdAAlS SAiui SCo eAAde OOii-
tractors had taken from labor in this
city an amount estimated to run into
the millions, Chairman Walsh of the
Senate committee investigating the
"kickback racket" said today he in
tended to call to account the repre-
sentatives of all Government depart
ments supervising construction to ex-
plain why they had allowed such al
legged violations of the law.
The committee heard three labor
leaders present a mass of evidence in
support of their contention against the
contractors and then adjourned until
Monday morning.
Senator Walsh declared he plans to
investigate the role played by Govern
ment officials and inspectors on jobs
who are supposed TO enforce the laws
in respect to payment of wages on
Government jobs
AT the present time" Walsh said,
this seems to be the nub of the in
quiry."
Specific in Charges.
The labor leaders we're specific in
their charges. They presented large
number of affldavits and other docu-
mentary evidence to support their
charges against contractors whom they
named.
John Locher, for the Building
Trades Council, explained in detail
how the "kick-back racket" had
worked in several places.
At Boiling Field, Locher charged
that in the construction of barracks
L. A. Soebel paid men off at 40 cents.
SO cents and 60 cents an hour, when
they should have had SIPS per hour.
Some of these men, Locher said. were
paid off at the full rate and then met
the contractor or his representative
outside the gate and made payment
of the "kick-back" 1t was on this job
that Senator Walsh first raised the
question of the responsibility of Gov
ernment inspectors.
After Locher had declared a sub
contractor, George M. Fox, had
threatened dismissal to workers who
failed to kick-back, Walsh asked if
there was not a Government inspector
on the job and asked his name
Locher named Capt. Alverson."
Protested to Hoover.
Upon questioning by the Senator,
Locher said protest had been made
to President Hoover, who referred the
/, matter to the Labor and War De-
partments.
What was done?" asked Walsh
What steps were taken to remove or
discharge that official?"
ITO the best of my knowledge"
Locher answered, 'he was transferred
to Panama"
At this point Walsh asked the COM
mittee first to demand from the War
Department the names of all their
inspectors and where they are now
located.
Complaint was registered by Locher
against the Bennett Co., which built
the Stoddard School. and letter sent
to the District Commissioners charg-
ing kickbackS, but no action was
taken. Locher said
Walsh tried to get the name of the
District official responsible for this,
but Locher said he was not sure who
was directly responsible.
Forced Kickback Of 50 Cents.
At the Paul Junior High School. the
union leader charged, a contractor, A.
Lloyd Goode Co., paid $1.30 per hour
on the job. but forced a. kickback of
so cents an hour, so the men received
a net of only 80 cents. On this job
even laborers we're forced to refund
10 cents out of the 40 cents they re-
ceived.
Among contractors whose names
were read into the record on charges
of violations of contractural obliga-
tions with labor were Frederick L.
Crawford, Inc, on the Archives Build
ing; the Industrial Engineering Co.,
on the Kenilworth School: the M. A.
Long Co, at Walter Reed Hospital;
the Fidelity Construction Co., on
market sheds for the District of Co.
lumbia and a garage; the j. M. George
Bensel Co., on the Federal warehouse;
George S. Canteleno, on Phelps Voca-
tional School; w. B. Rose Co., new
Thirteenth street fire house, and L. A.
Soebel Boiling Field.
Leslie L. Myers, business agent for
the ironworkers, protested against
payment by a contractor at st Eliza
beth's Hospital.
Albert Caya, business agent OF the
carpenters union, was the last wit
ness. He complained against the or
ganization of various carpenters into
partnerships by which, he charged,
they attempted to beat down wage
scales and violate the Bacon-Davis
law. Caya will continue his testi-
mony Monday.
Linoleum Sales Planned.