NEW YORK. 



557 



had amounted to $9,202,434.23, leaving an ap- 

 parent surplus of $5,855,927.52. During the 

 same period the disbursements for extraordi- 

 nary repairs had amounted to $10,960,624.84, 

 causing a real deficiency of $5,104,697.32. 

 Adding to this payments on the canal debt, 

 and other outlays on account of the canals, an 

 aggregate of over $11,000,000 was obtained as 

 the amount expended by the State in five years 

 for these works. It was directly charged by 

 the Governor that the expenses for both ordi- 

 nary and extraordinary repairs had been great- 

 ly in excess of what was required. He showed 

 that there had been corrupt and fraudulent con- 

 tracts for work and materials, which the con- 

 stitution required to be let out to the lowest 

 bidder. The method of making these contracts 

 was illustrated by the following statement : 



When a contract is to be let, the engineer makes 

 out an estimate of the quantity and kinds of work to 

 be done. Those who make bids state at what prices 

 they will do each kind of work, or furnish each kind 

 of material. These prices are footed up, and the 

 bid which amounts to the smallest sum is accepted. 

 The sums thus agreed upon average but little more 

 than one-half the amounts estimated by the engineer, 

 and apparently the State makes advantageous con- 

 tracts. On examination, it will be found that the 

 prices for the several items bear no relation to their 

 real value. In some instances excavation of earth is 

 put at one cent per cubic yard, and in others eighty- 

 flve cents are asked. Excavation of rock blasted at 

 one cent in some cases, and two dollars in others. 

 Slope-wall is bid for in some cases at twenty cents, 

 and in others at two dollars. Hemlock-timber, which 

 is worth at least twelve dollars per thousand, is in 

 some contracts put at less than three dollars per thou- 

 sand, and in others at thirty dollars per thousand. 

 Oak-timber in one instance is put at one dollar per 

 thousand and in others at seventy dollars. Some 

 items are absurdly low, others unreasonably high. 

 .... When the engineer's estimate of quantities 

 and kinds of material are published by the Commis- 

 sioners, the contractor will find^out by collusion, or 

 in some other way, what quantities of each kind of 

 work or material will, in fact, be required, or he will 

 see what influence he can exert to change the con- 

 tract after it is made. If it is changed, no new let- 

 ting is had, but he claims the job as his right. He 

 than puts in his bid, offering to dp such work or o 

 furnish such material as he finds will not be required 

 at all, or in small quantities, at absurdly low prices, 

 at a quarter or in some instances at a twentieth part 

 of its cost. The items which will be required in 

 full, and probably in extra quantities, he will put at 

 unreasonably high rates, and it turns out that what 

 the contractor offers at low prices is called for in 

 small quantities, if at all, while those which are put 

 at high prices are not only required in full, but in 

 most cases in extraordinary quantities. 



An example will more clearly illustrate how the 

 State is defrauded by these devices. 



The engineer having estimated certain work and 

 materials as follows : 



100 cubic yards of vertical wall at $3 $300 00 



3,855 " " slope-wall at $1 . 50 5,782 50 



2.400 feet B. M. white-oak at $50 120 00 



60,000 " " hemlock at $15 90000 



Total estimate $7,102 50 



A'a bid for the job at these rates amounted to 7,102 50 



B's bid for the same was, for 



100 cubic yards vertical wall at $6 $600 00 



3,855 " " slope-wall at 30c 1,156 50 



2,400 feet B. M. white-oak at $70 168 00 



60,000 " " hemlockat$3 18000 



Aggregated $21,104 50 



The proposal of B, apparently so advantageous to 

 the State, was accepted, and the contract awarded to 

 him as the "lowest bidder." But afterward, by 

 some influence, it was decided to make only vertical 

 and no slope wall, and to use only oak and no hem- 

 lock timber. There was no reletting, although the 

 agreement had been in fact revamped into a new and 

 different contract, which enablea B to collect from 

 the State for 



8,965 cubic yards of vertical wall at $6 $28,780 00 



62,400 feet B. M. white-oak at $70 4,868 00 



Total. 



As a result of this kind of contracting, it 

 was shown that the State had paid, up to 

 February 1, 1875, $1,560,769.84 on ten con- 

 tracts, while the amount to be paid, upon the 

 quantities exhibited in the proposals at the con- 

 tract prices, would have been $424,735.90. 

 The Governor recommended various measures 

 of reform to remedy the evils in canal man- 

 agement. He proposed that on a change of 

 plan or specifications of contract there should 

 be a new letting,; that the award of contracts 

 be made by the Ganal Board, who should be 

 authorized to discard bids showing bad faith on 

 the face of them ; that an Inspector of Public 

 Works be provided for; and that provision 

 be made to " enforce the accountability of the 

 officers charged with the disbursement of the 

 public money by a liability to summary re- 

 moval or suspension." He also suggested that 

 an investigation be made in order that frauds 

 might be " exposed and punished, and a check 

 be put upon practices so destructive to morals, 

 a's well as to the public interests of the people 

 of the State." 



Governor Tilden's suggestions in favor of 

 reform in the administration of the canals 

 were earnestly applauded by the Produce Ex- 

 change and Chamber of Commerce of New 

 York, and many of the other public and po- 

 litical bodies, and a large portion of the press 

 of the State. The subject was at once placed 

 in the hands of a committee in the Legislature, 

 and several acts were passed for the purpose 

 of carrying out the recommendations of the 

 message. Those providing for the removal of 

 officials, and the appointment of an Inspector 

 of Public Works, have already been noticed. 

 A bill abolishing the office of canal superinten- 

 dents, and making other important changes in 

 canal management, passed the Assembly, but 

 failed in the Senate. An act was passed au- 

 thorizing the Canal Commissioners and State 

 Engineer and Surveyor to examine into the 

 matter of disposing of the lateral canals, and 

 report a plan for the purpose to the next Leg- 

 islature. The points to be covered in their 

 report were designated as follows : 



1. The portion of the lateral canals which, in their 

 judgment, it is desirable for the State to retain as 

 feeders or otherwise, with the reasons therefor. 



2. The portion of the laterals which, in their opin- 

 ion, it is desirable that the State should dispose of. 



3. The best manner in their judgment of disposing 

 of the same. 



A joint resolution was adopted authorizing 

 the Governor to appoint, with the advice and 



