Evening star., 1935-10-10
FEDERAL HEARING
OPENS TOMORROW
ON KICK BACK"
Bureau of Mines Project in
College Park, Md, Is
First Case.
WAGE RATE SOUGHT
BEFORE BIDS MADE
information Involves Practice
Under Attack for Several Years
in Workers Defense.
BY JOHN C. HENRY.

Climaxing a fight of several years to
stif1e the kick-back racket, which has
robbed labor of thousands of dollars
and cost the Federal Government a
like amount, the Labor Department
tomorrow will hold its first hearing in
connection with enforcement of the
amended Davis-Bacon act. Newly
drafted regulations for administration
of the act were sent out few days
ago.
The case coming before the de-
partment tomorrow is that af Bu-
reau Of Mines project in College Park,
Md, in which determination OF the
prevailing wage rate for the proposed
work has been requested by the con-
tracting officer of the bureau before
bids are sought.
BY action of Congress in its closing
days of the last session, the teeth OF
the old Davis-Bacon act, relating to
the wage rate to be paid laborers and
mechanics employed by contractors or
subcontractors on public buildings
were sharpened. The sharpening fol-
lowed two general courses, first to
broaden the scope of construction work
In which the act applies and second
to direct that q predetermination OF
minimum wage rates for all classes Of
affected labor be made by the Secre-
tary of Labor before each contract is
made.
Public Works Included.
In extending the application OF the
act, Congress made it include public
works other than public buildings,
painting and decorating, and all con-
tracts in excess of $4,000 as compared
to previous minimum of $4,000.
BY its decision in favor of a pre-
determination of wage rates, however,
Congress inserted the sharpest tooth
in the law and the one which the
Labor Department is now preparing
to enforce. AS its first step, the de-
partment has informed all other de-
partment heads that a request for
such predetermination must be made
in connection with each contract ad-
vertiSement. For this purpose forms
are being sent out.
In its letter of instruction, the Labor
Department asks that the contracting
officer making the request for wage
determination submit extensive in
formation on wage conditions of each
craft affected. Such information, it
Is suggested, might be obtained from
the following sources where the work
Is contemplated:
The Building Trades Council, inde-
pendent labor organizations, municipal
or local officials, employers organiza-
tions, individual contractors and archi-
tects, the State Labor Department
and the local Office of the United
States Employment Service.
Definition for Guidance.
For guidance then in determining
what is the prevailing rate, the fol-
lowing definition has been con-
structed:
(a) The rate of wages paid in the
locality in which the work is to be
performed, to the majority of those
employed in the corresponding classes
of laborers or mechanics on projects
that are similar to the contract work;
(b) In the event there is not
majority paid at the same rate, the
rate shall be that paid the greater
number, providing such number con-
stitute 80 per cent of those so en-
ployed;
(c) If less than 80 per cent receive
the same rate, then the average rate
shall be paid.
With this information made avail
able, it is. the intention of/the de-
partment to hold brief hearings in
the locality of the projected work,
establish the requested rates and have
them included in the contract ad-
Vertlsement with minimum of delay.
In order that this procedure may
not become "bottle-neck" in which
the flow of public works will be
damned, the department is compiling
a list Of lawyers over the country
VINO Will be acquainted with the pro-
cedure and who will serve on a per
diem basis only as referee in hearings
In their particular locality.
Since public works building is pro-
ceeding at rapid pace at present,
about 1000 cases of wage determina-
ton are expected before the end Of
the present fiscal year on June 80,
1886. Nine such requests were made
in the cases of post Office projects
by the procurement division of the
Treasury Department on the first day
Of the acts theoretical operation.
Specific Exemption.
BY specific exemption, construction
under the works progress program
will not be affected by the new pro-
cedure, unless it involves construc-
ton of permanent buildings for the
Government of the United States or
any department of the United States
or the District of Columbia"
Intrusion of the kick-back racket
into public building operations of the
Federal Government has been a long
existent problem, resulting at all
times in unsatisfactory relations be-
tween the Government and contractors
and amounting to outright robbery
Of employees by those Of the con-
tractors who followed the INSCRIPTIONS
practices.
In an attempt to establish fair
rate of wage for such public work,
Congress in 1881 passed the Davis
Bacon act, stating that a prevailing
rate should be paid in connection
with all contract work involving more
than $4,000.
The result, however. was that the
unscrupulous contractors, forcing en-
ployes to turn back part of their wages.
we're able to underbid reputable build
srs, the wage standard was loosely
computed and thus more easily evaded