Evening star., 1934-02-01
Warns Contractors Federal
Government May Produce
Own Materials.
HOLDS NONE TOO BIG
TO ESCAPE PENALTIES
Secretary Declares Unpatriotic
Gougers Will Have Selves to
Blame if They Are Hurt.

In city after city groups OF contrac-
tors and material venders have re-
sorted to collusive bidding in dealing
with the Public Works Administration,
Public Works Administrator Ickes told
the fifteenth annual convention of As
sociated General Contractors of Amer
lea last night at a dinner in the Will
lard Hotel
He warned that if such practices con-
tinue the Government may start manu-
featuring its own materials
No N. r. A. code legallZes collusive
bidding" the Secretary declarled. IF,
one of these days, the Government of
the United States or the governments
OF the various States, great users as
they are of such materials as cement,
decide to go into the business of manu-
featuring that or similar materials
those who are now violating the law
and cynically and unpatriotically
gouging the public will have only them
selves to blame"
Will Fight Grating.
He stressed two points One was
that the Public Works Administration
would track down any charges of graft
ing and the second that no person has
i
He attacked unscrupulous contrac-
tors who, through collision, place un-
reasonably high bids for Jobs and agree
among themselves to hand out the con-
tracts in rotation to the members of
the ring
The honest contractor is frozen
out said Ickes. If by some chance,
he gets job, he may not be able 70
get delivery Of materials. Truck serv-
ices that are supposed to be anxious
to do any legitimate business are re-
fused him, He may be denied a bond
He has difficulty hiring workmen. The
municipal inspectors harass him day
after day. 1t is inherent in collusivs
biGding that the bids are too high be-
cause they have to provide for graft
for local politicians and perhaps even
q share for the unsuccessful bidders. F"
Denounces Kick back"
The Secretary also scored contrac-
tors who increase their profits by the
"kick-back racket" a method which
forces workmen to return a part of
their wages.
Secretary Ickes told the contractors
that political pressure was eXerted in
all attempt to prevent indictment OF
q Democratic lieutenant governor in
connection with P. W. A. projects.
He did not name the official, but the
only lieutenant governor indicted is
Nils G.. Kraschel of Iowa. who was ac-
cused last week of conspiring to defraud
the Government.
Evidence was unearthed by the De-
partment of Justice in Washington" he
related The political cohorts promptly
moved their siege guns to that depart
ment. Every political and personal in
fluence was brought to bear in an eff
fort to hush up the matter. The facts
were laid before the Attorney General.
Orders were given to the local district
attorney to present the evidence to the
grand jury under every safeguard of
the rights of the accused. After hear
ing the evidence the grand jury in
dicted this man and his associates
The session last night brought to an
end the contractors convention. A
resolution recommended that existing
private agencies should be utilized to
the fullest extent before new or addi-
tional governmental agencies are estab-
lished for the purpose of executive pub
lie improvements.