The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1936-02-27
Both Sides of Political DOPE

100000 cubic yards Of grading for
the State Of Minnesota, he shall
have completed successfully con-
tracts with the Minnesota High
way department for the grading Of
not less than 100000 cubic yards.
(Signed)
Very truly yours,
Floyd B. Olson,
Governor of Minnesota.
The regulations and restrictions
laid down in this letter are "the
Sitting regulations and restric.
tons" denounced by the supreme
court as IAN invitation" to contrac-
tors to "conspire to obtain the work
at exhorbitant profit" They result
ed in fraudulent bids" because Of
which the courts compelled con-
tractors to disgorge $780,, 980.37. Had
they not been halted by court ac-
ton, they would, If applied to all
other paving contracts for 1882,
have fleeced the taxpayers of Min
nesota Of more than 100000
above "the reasonable cost Of the
work plus a reasonable profit"
Even with this letter over the
signature Of their peerless leader
placing the blame beyond perad-
venture Of a doubt, the attempt Is
still made by some farmer-labor
leaders to put the blame on some
one else. If this effort has con-
fused anyone, let him read another
letter written by Governor Olson
on the same day so soon after he
had taken office, February 26, 1881:
Mr.. Charles M. Babcock,
Commissioner of Highways,
1246 University Avenue,
st. Paul, Minnesota.
Dear Mr.. Babcock:
I am sending you, enclosed here
with, two Communications
relative to employment code on
State Highway construction; and
the other with reference to the let
ting of contracts for state con-
struction work.
The communications are couch
ed in their particular form so that
in the event any complaint is made
to you with reference thereto, you
may avoid personal controversy, IL
you desire, by stating that you are
making these requirements in COM
pliance with my order.
I have carefully considered the
law with reference to the matter,
and am satisfied that you have au-
thority to compel compliance with
these orders under the Statutes Of
Minnesota, and the general law.
Very sincerely yours,
(Signed) Floyd B. Olson,
Governor.
In this letter Governor Olson not
only confesses but proclaims his
sole responsibility for the Sitting
regulations and restrictions" which
resulted in the highway frauds of
1882 in which the contracting par
Elephants were compelled to re-
store to the state nearly 100000
and were prevented by court action
from mulcting the people of the
state of possible 100000.
The Sitting regulations and res
trictions," laid down by Governor
Olson and enforced by his order,
resulted in limiting bidding to a
few contractors. These contract
ors, testimony shows, held several
conferences at the Minnesota Club
in st. Paul, parcelled out the work
among themselves and submitted
grossly exorbitant bids. On Nov
ember 10, 1881, they bid on seven
jobs, their bids on six of the jobs
being about so per cent higher than
at previous lettings. The seventh
job was smaller job, open to 9TH
ers besides the "conspiring con-
tractors" To beat out these others,
one firm of the favored group, No
Ian Bros, bid 81 cents ger square
yard on the seventh job, although
their bid on the major job assigned
to them was $1.44 per square yard.
The conditions as to the two jobs
on which Nolan Bros. bid were ap-
proximately the same except that
the overhead on the seventh job
was probably greater. AS to the six
major jobs at the letting, differ
ent contractor was low in each
case; all six of the low bidders
were nearly so per cent above pre-
vious lettings of the same year;
suits at law compelled these six
contractors to restore 1892, 98037 to
the state. On other lettings for 1882
repeated rejection of all bids fin
ally resulted in breaking the ring
and restoring the bidding to normal
levels.
It may hurt but it will be help
full for the people to consider some
of the things said by the supreme
court about this matter:
1T could scarcely be expected
that the highway departments reg
: ulations and limitations would re-
: suit in fair competition among the
bidders"
Limiting the number of bidders
and restricting the amount of con-
struction to be let to each during
1882 was scarcely less than an in
. vitation to the favored contractors
to get together and do just what it
is alleged they did do-conspire to
obtain the work at an exhorbitant
profit"
NEWSPAPERS BEST
III. T. Ewald, president of the
, Campbell-Ewald Company. which