Evening star., 1939-07-01
New Works Agency
|nherits Second
Grant Controversy
Ickes, in One Of Lost
Acts, Cancels Funds
For Pennsylvania

The Federal Works Agency which
herited another building grant con-
troversy from the Public Works Ad-
ministration which it Is taking over.
AS one of his last official acts,
former P. w. A. Administrator
1ckes, alleging irregularities, yester-
day ordered withheld from the
grant for construction of the Penn
sylvania State Hospital at Norris
town funds which may total $685.
600. The action brought prompt
disclaimers of wrongdoing from Off
cials involved. The concern has
done a large amount of Govern
ment building here.
In tying up the money, P. w. A..
officials said an investigation had
disclosed that McCloskey & Co. of
Philadelphia, the contractor for
Units l and 2, had received pre-
bidding information from employees
and agents of the Pennsylvania
General State Authority which per-
mtted the company to underbid it's
nearest competitor by $500 on build
ing tile.
They added there probably had
been similar disclosures which gave
the company an edge of perhaps
$4,000 over the nearest competitor
on Unit 2.
Up to State Authority.
1t is entirely up to the Pennsyl-
vania General State Authority
whether it continues construction,
the P. W. A. officials said. They
did not know the exact amount of
the grant on the two units, but put
the estimate at $355 900 on the basis
Of total cost of Unit l as s490 900,
and of Unit 2 as $633, 900.
From Atlantic City, the Associated
Press quoted Matthew H. McCloskey,
Jr, the contractor, as denying that
his firm had been able to underbid
competitors because of advance in
formation.
Il most emphatically deny the
charges; there is no truth to them
whatever" he said Il shall obtain
a copy of the charges and see what
they contain, and then I shall make
a further statement"
In Harrisburg, Col. Augustine
Janeway. executive authority OF
the State Authority, denied any
knowledge of a leak" Other State
officials, away for the holiday,
could not be reached for comment.
The authority's board. which is
due to meet again on July II, is
headed by Gov Arthur James.
Denial From Georgia.
Developing from another case
where Federal funds were with
held, the Georgia State Board of
Public Welfare in Atlanta formally
denied yesterday the charges OF
the P. w. A. that its contract
with L. w. Chip Robert, secretary
of the Democratic National Com
mittee, provided for a $4,000 fee
for promoting" hospital build
ing project.
On June II, Mr.. Ickes coupled a
denunciation of lobbying anG
"promotional activities" for public
works projects with the announce
ment he had refused to permit
use of P. w. A. funds to pay
$4,000 fee to the Robert engineer
ing firm in connection with the
construction of the S4,88l, 900 State
Hospital for Insane at Milledge-
vile.
A resolution unanimously adopted
and sent to Mr.. Ickes by the board,
said:
This board refutes any idea of
any promotional or lobbying serv-
ices, stated or implied, either directly
or indirectly, entering into the con-
tract price agreed upon by the State
Board of Public Welfare and Robert
& Co., Inc, and any suggestion. i'm
plication or statement to that effect
is not in accordance with the actual
facts and is wholly without founda-
ton"
Two days ago, Mr.. Ickes Cancelled
grant of S21 600 to the University
of Georgia on the ground the money
had been used for fraternity house
instead of dormitory for which it
had been allocated He also de-
manded return Of the initial advance
of $1,000 Mr.. Robert. chairman of
the University Building Committee,
has temporarily delayed a formal
reply.