The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-06-18
KEYLESS LOCK
FEE EXCESSIVE,
CAPITAL TOLD
Monopoly Evidence Heard
by Group Studying
Factory Bill.
BY LEE G. MILLER
Times Special Writer


evidence that the government is be-
ing forced by "a practical monopoly
to pay "exorbitant and unreason-
able" rentals for postoffice equip
ment was before the house postof-
flee committee today.
The information was studied by
Chairman Mead Dem., N. W and
other members in connection with
their consideration of the Randolph
bill authorizing construction of a
government factory at Reedsville,
w. Va, for the manufacture of post
Office equipment.
An Investigators report concern
ing contracts by which the Keyless
Lock Company of Indianapolis
leases "screen-line equipment" to
postmasterS is studded with such
phrases as "inordinate rentals"
harsh and very unfair contracts"
"unrelenting tenacity," etc.
While these contracts for the
lease of equipment are signed by the
individuals who rent postoff1ce space
to the government, the house COM
mittee was advised that lin prac-
tically every case the amount paid
for rental of equipment by the lessor
is reflected in the rental being paid
by the postoff1ce department for
leased quarters"
A number of examples of the |
Keyless Lock Company's practices
were reviewed.
Examples Are Cited
At Van Dyke, Mich, for instance,
the postmaster-and indirectly the |
government-paid $2,988.48 in rental |
over a seven-year period for equip |
ment which was replaced by the |
postoffice department with more
and better equipment at total
cost, installed, of $1,621.37.
At Burkburnett, Tex, the govern
ment finally bought for $2,055.47
new equipment which more than re-
placed the rented equipment on
which in thirteen years total of
$12,09325 had been paid in rent.
At Plains, Kas., a new postmas-
ter took charge on July l, 1882, and
being a new man in postal affairs"
renewed his predecessors contract |
with Keyless Lock, which provided
for payment of s21780 in annual
rental.
The ink on. the contract was hard
ly dry before the company informed
the postmaster it had just received
an order from the poStoffice de-
partment to furnish new equipment
for the Office, and this was installed
on Aug. 1. The Investigators re-
port continues:
Example of Leniency
"In their letter to the postmaster
the Keyless Lock Company called
attention to the fact that this post
old equipment to them prepaid, and
that their contract specified he
would have to pay the monthly
rental of $15.18 on the returned fix
lures as long as he remained post
master at Plains. :"
However, ito be lenient," the COM
pany offered to release the post
master from the contract upon re-
ceipt of the usual rent for six
months after the fixtures were re-
turned. :"
Meanwhile, the new equipment
was delivered from Indianapolis to
Plains by truck, the old equipment |
was returned to Indianapolis in the
identical truck, and the postmaster
was compelled to pay the company
500 to cover the return shipment
The postmaster fatty refused,
however, to pay rent on the removed |
equipment.
Further Losses Listed
AS a demonstration of the losses
incurred by the government through
rental of equipment by small post
offices, figures were obtained on the
rent paid by the government for
leased postoff1ce quarters in Kansas.
In those buildings where the
equipment was furnished by the de-
partment, the average rental was
1926. In buildings where the lessor
furnished the equipment-this be-
ing usually rented by him-the
average rent paid by the govern
ment was $875.
Similar statistics for Oklahoma
showed an average rental of $545
where the equipment was govern
ment-owned, and 1927 where the
lessor provided the equipment.
In Texas the averages for the two
types of rental were 1902 and $797.
Chairman Mead of the house
committee considers these figures a
striking demonstration of the need
for such factory as is proposed
at Reedsville-where the subsistence
homesteaderS in whom Mrs. Frank
lin D. Roosevelt is deeply interested
would be supplied with at least
part-time work.
Mr.. Mead pointed out that the
bill now being considered limits the
factory'S output to Screen-line
equipment, and does not permit
government manufacture of chairs,
tables, etc.
When the Reedsville project was
before the house several months ago
manufacturers throughout the
country joined in successfully
bringing pressure on congress to re-
ject the measure.
Negro Killed in Plunge
Wi1lioY1o NoryLo1t 30 KJoox1 Aoc1L |