Evening star., 1935-01-28
USE OF DAY LABOR
|NU. s. EMERGENCY
CONSTRUCTION HIT
Contractors Official Gives
Roosevelt Challenge to
Seek Help.
SQUANDERING, WASTE
OF FUNDS CHARGED
Outstanding Government Projects
Attacked in Report by
Subcommittee.

Charging inexcusable waste and
squandering of public funds through
Government use Of the day-labor
system in carrying out most of its
emergency construction projects, an
official of the Associated General Con-
tractors of America this morning
issued direct challenge at President
Roosevelt to call upon the contracting
industry for help.
The official was B. F. Knowles of
Worcester, Mass, head of a subcom-
mittee of the organization which has
been making a special study Of Gov
ernment competition with the con-
tracing industry.
Sparing few of the agencies ami
projects which involve construction
work, Mr. Knowles cited lengthy facts,
figures and accusations of inefficiency.
His attack opened against the C. w. A,
during the life OF which, he said,
the construction industry, already in
a starving condition, was Obliged to
sit idly by and witness the eXpendi-
ture of hundreds of millions of the
taxpayers money on a day-labor pro-
gram frought with inefdciency and
profligate waste such as has never
been known in this country's history.
C. w. A. Cost Billion.
&C. w. A. was discarded after it
had taken from us Sl,000,000,0O0
worth of our market. But the So
called relief administration still goes
on and its trail of waste, incompe-
tence. ghastly ineficiency and indus
trial prostitution may easily be fol-
lowed from one end of the country to
the other.
"Out of % cases concerning which
comparative information has been re-
ceived % show excessive cost by the
day labor method, as compared with
the contractors low bids of from 10
to more than 100 per cent. In other
cases of which we know there is con-
siderable doubt as to the accuracy and
integrity of the States accounting. In
many cases the quality of the work
done under the day labor method has
been shown to be exceedingly poor
and such as would never have passed
inspection If performed by q con-
tractor. Almost invariably the progress
of the work has been slow and its
coordination and planning inefficient"
One by one, Mr.. Knowles then at
tackled some Of the outstanding Gov
ernment projects, the road work in
Great Smoky National Park, construc-
ton work by day labor at BeltSville
and Reedsville. the home construction
at Norris Dam and the heavy con-
Struction work of the dam itself. On
the basis of the ineff1ciency shown
in such as these, he declared, the fol-
lowing effects may be expected from
an extended day labor program:
Il. The complete emascuIation of
the second largest industry of the
country, namely, construction. 1t will,
without any question of doubt, be
rendered absolutely impotent as far as
real industrial recovery is concerned
Development of Incompetent.
"2. The development of a genera
ton of incompetent and inefficient
workers, lacking in initiative and self
respect.
'f3. The colossal waste and stupen-
| dous extravaganza attending day
labor operation.
"4. The stultifying of initiative
and native American ingenuity which
has characterized our industry from
the beginning.
IS. The loss to the Government of
property and income taxes resulting
| from the idleness of members Of the
construction industry.
IS. Losses to industries related to
construction through the financial
collapse of general contractors which
must inevitably follow the adoption
of a wholesale Government DAY labor
| plan"
In the only other report submitted
at the opening session Of the three
day convention here, Col. George b.
J Walbridge, chairman of the Legisla-
tive Committee, spoke with alarm
about the pending $4,000, 100000 re-
| lief measure and the great authority
| which it hands to the President.
| Should this bill be permitted to
become law in its original form, the
| fate of our industry will rest in the
hands of the President of the United
States. If he we're to decide to dis
pense with the services of general
| contractors in carrying out his pro-
/ gram, and to execute the construction
/ projects by use of the day labor or
force-account method, then, indeed,
would this industry be erased from
| the recovery picture. There is much
apprehension and concern in the
minds of contractors that such are
his intentions.
zoo Bills Reviewed.
Col. Walbridge also reviewed about
| 200 bills which have been introduced
| in Congress and enactment Of which
| would have some effect upon the con-
| struction industry. Among those re-
ceiving his Endorsement was the Clark
Shannon bill, which would require all
Federal agencies to submit bids In
competition with private contractors
before undertaking any construction
! work.
Nick F. Helmers, president of the
association, called the convention to
order this morning and made an ad-
dress of welcome. Rev. James Shera
Montgomery, D. D., chaplain of the
House of Representatives, delivered
| the invocation.
Secretary of Commerce Roper and
Edwin z. Witte, executive director Of
| the Committee on Economic Security,
and Willard T. Chevalier, vice presi-