Detroit evening times. (Detroit, Mich) 1921-1958, 1941-03-20
Rigid Inspection Of Site May
Give Mayor Reins

II the SIS ass. 600 contract fc
construction Of the Sll000,0o0 )
lanes Herman Gardens houSln
project is officially found worit
less and II The city decides {
become the general contractor an
complete the job itself, the fms
task undertaken vii he a thor
ough inspection Of work done :
far
Purpose Of the Inspection, il
said. will be 70 make certain TIA
the general contractors, 4. Smit
& Co. and Lipman Constructor
COMPANY. have complied wit
specifications set forth IN tn
contract. Officials az both firm
have been charged in grand Jur.
indictments with hribing two De
troit councilmen TO secure Tn
contract.
Although Mayor Edward J
Jeffries Jr. has called tho contract
largest ever awarded 10y The city
worthless. Corporation CounSc
Paul Z. Krause. responsible leCa
authority OF the city, has nevei
conceded that.
TOUGH PROBLEM
II have come to no definite
conclusion as 10 validity of the
contract" krause SAID today,
but I expect to have an opinion
by tomorrow. This Is tough
problem and much depends on
what we do and say now.
at IL an advantageous con-
tract from the standpoint OF
cost and we are trying to solve
the problem so as TO save all the
money we can. IL may he pos
sible to save II all"
Krause said that he and his
assistants are considering the legal
aspects of three general steps:
Call the Smith-Lipman con-
i tract Invalid and recon-
mend that the city complete the
job as general contractor. per-
hitting the go or more sub
contractors to carry on under
the city.
C-Force the bonding COM
= panies. the United States
Fidelity and Guaranty Company
and affiliated Arms, to take over
and complete the project under
the present contract.
C-Throw out the present con-
- tract, re-advertise and begin
over again.
MAY COMPLICATE RULING
Another factor that may COM
plicate any finding Krause may
make is the suit being heard by
Circuit Judge Harry B. keidan in
which Maurice L. Bein. unsuccess-
full bidder for the Herman Gar
dens contract. seeks an injunction
on grounds the contract was il
legally let.
Although Bein is under indict-
ment by the Ferguson grand jury
for conspiracy to bride Council
man Robert G. Ewald. Judge
Keidan can. conceivably, find the
contract worthless despite any
determination by Krause. Up to
now the city has contended the
contract legally let and has fought
the Bein suit.
George Edwards. director-sec-
rotary Of the housing commission,
doubted that any construction ir-
Irregularities will be revealed in the
inspection.
we have had inspectors on
the job daily since the begin
ming" he said.
81 might say also that I have
confidence in my own technical
staff and when and II such an
inspection is made my staff will
make IT."
WON'T LOSE MONEY
Questioned about the advisable
ity of such an inspection, Mayor
Jeffries said that city experts
already have inspected the prof.
ect," but added that another in
spection might be made after
Krause determines status of the
contract tomorrow.
'In the first place" Jeffries
said. "the city IL not going TO
lose any money on the work al
ready done because we have
paid for only part Of the work
and materials already put In.
SECONDLY, II must he re-
membered that Smith and
Lipman are not building the
project. They are merely brokers
and the actual work is being
done by some go sub-contrsc-
tors"
Edwards. who met with as o.
the sub-contractorS 10 discuss theil
willingness 10 carry on" IL tht
city has 70 take over completion
OF the work, said a majority
assured him thAy would cooperate
gladly.
CITY CANT LOSE
Bearing out Mayor Jeffries' con
tention that the city cannot los,
money on the work already done