Detroit evening times. (Detroit, Mich) 1921-1958, 1941-03-18

posted in the name of the Whole
sale Builders Supply Company.
On September 19. a $500 check
was drawn and paid to Hamilton,
and on October 8. the two COM
panies having obtained the con-
tracts they sought, the other
81, 500 was paid, il is alleged.
SAY $4,000 DIVIDED
Hamilton. Barron and Abel. II Is
further alleged, met in Detroit and
divided the last payment. in this
way: $1,000 on October 8 to Abel.
of which he paid Barron $1,000,
retaining $1,000 for himself. and
that Barron deposited 81 800 in
the bank on that date.
Bids for the construction OF the
project were announced Aug. 8,
1910. The bid of the A. M. Smith
& Co. and the Lipman Construc-
ton Company. bidding as unit,
was for $3.50, 900, based on con-
crete construction. The bid Of the
Maurice L. Bein Company was
IS. SOC, 900 based upon the use Of
steel. This bid was later revised
upward to SS.3l5, 900. but IL still
remained the lowest bid. Steel was
also favored by the Detroit hous-
ing commission.
BLOCKED BY TWO
However, when the council met
TO vote on awarding the contract
to the Bein company on August 20
Hamilton and Councilman Robert
G. Ewald objected and an open
hearing was called.
After squabbhng for the next
three weeks on a steel versus con-
crete issue. the council on Septem-
Der % voted to give the concrete
construction its approval, with the
contract going to the Smith-Lip-
man company.
Counciimen Hamilton. Ewald,
Harry !. Dingeman. Henry S.
Sweeny and James H. Garlick,
voted for concrete construction.
Councilmen John w. Smith. Eu-
gene I. Van Antwerp, Charles II.
Dorais, and John c. Lodge voted
for steel.
Rumors OF attempts 10 sway the
Judgment of the councilmen dur
ing the bitter controversy circu-
lated freely about the city imme-
diately after the contract was
awarded. but II was not until a
suit was filed in Chicago on De-
cember 8 that the rumors were
substantiated.
SUIT STARTED PROBE
The Belsan Company. a plaster
ing firm in Chicago. had expected
to receive the sub-contract for
plastering OF the project from the
Smith-Lipman Company. When
the contract went to a Detroit firm
instead. the Belsan Company sued
the Smith-Lipman Company for
breach OF contract and alleged
that officials Of the company said
that they were forced TO make
huge payoffs 20 Detroit politicians
in order to get the contract.
Councilman Smith Immediately
revealed that he had been offered
a Sos, 900 bride while playing cards
in a downtown cafe, but had re-
fused II. Van Antwerp said that
he had been offered "a roll Of bills
that big"
Official investigations by several
agencies were started and Judge
Ferguson was named to sit as a
one-man grand jury to probe the
contract award TO the bottom.
Meanwhile, Bein. having lost the
contract. sued the city in Circuit
Court 10 have the contract declared
null and void on the basis of fraud.
REFUSED TO COME HERE
Judge Keidan took considerable
testimony. but was unable to
reach decision since neither Rein
nor Abe Smith of the Smith-Lip-
msn-C ompany,-would- come 10
Detroit to testify.
Decision is still pending In the
case and IL is thus that the ques-
ton of suspension of construction
work on the project arises. II
Judge Keidan finds that the con-
tract was awarded fraudulently on
the basis of latest information
from grand jury testimony. pre-