| Show The Government in in S Business I I What Does It Mean to YOU I The Day Labor System If Persisted in Will Deprive the Nation of Specialists Who Are Responsible Responsible Re Re- for Progress ARTICLE L XI From N. N Y Yo Commercial I The United Unite States has reached its present state of greatness greatness greatness great great- ness because of individual initiative and effort The very character character char char- acter of the government provides that the individual shall profit from his efforts his skill and ln his ability This is as it should be Individualism which finds its highest expression in inthe inthe inthe the United States is is the tile opposite from collectivism which we find ill in in operation for the first time in m a large country country Russia I Special Specialists st arc ari arp n needed ede in every line of activity Specialists i nave mace maae mis nis country i ocy nave had the most important place in science invention manufacture and business generally Due to them Ve fe have our wonderful transportation tion system our remarkable bridges our great irrigation systems our efficient manufacturing manufacturing- plants I Had the day I a labor system of construction been In vogue from the beginning of this government it itIs itIs itis Is hardly likely the nation would be traversed bv y a number of ot great double double double dou dou- ble track railroads ls such rivers as as- the Mississippi spanned by gigantic bridges Had the day labor system system tem tern been applied In detail It ItIs I is Is hardly likely there would be the wonderful subway system of transportation transportation transportation trans trans- of such great value to the City of New York Construction contracting Is the work of ot specialists Again quoting as we have many times in these ar article article ar- ar tide we select the following of ot In Interest interest In- In terestA terest A few years ago a Middle West city cHy voted a bond Issue of or about for a new water supply and after atter some Borne opposition from day labor a advocates let the work worle to sIx si different contractors The entire project was efficiently I ra put through I without 1 default a or delay and at the price bid for the work but every everyone everyone one of these cor contractors lost heavily The work actually cost them 3 These men like countless others In the same business not only performed the service of constructing con con- bt but also the function of ot insuring the municipality against i excessive cost or loss from unknown and underground conditions condi condl- Hons In so so doing they were acting in their full capacity as contractors or construction specialists This function o b underwriting con truc- truc tion risks plus pIus the service of short selling on time labor and materials materials' constitute a vastly different busIness business business busi busI- ness than the mere buying of commodities commodities com corn and selling them at a margin marginA A TECHNICAL IJ SERVICE SEncE The construction company's function tunc- tunc tion contrary to o popular conception i is not merely buying and selling It Itis It Itis ments is e composed First Ot of the these technical nel essential n personaL lea elements elements ele- ele i i I service similar to that of ot the engineer engineer engi- engi i neer and supplementing his functIon ton tIon of providing the personal specialized specialized I knowledge of successful methods of construction second the managerial service of ot purchasing directing field operations plus the estimating service which the company company com corn pany guarantees with its reputation reputation tion t tangible I wealth v and a surety I I bond d third hi a an insurance a function u protecting rote the owner against all alti i manner of contingencies which might night bring him financial loss if It ItIe he Ie e were executing the project with hi his own forces and management The hazard attached to this Insurance in insurance In In- service Is so great that no Insurance company will assume It y c construction companie accept it ita itc c a a. a part of their service Needless to say a. a.- majority a-majority of or them are bankrupt bankrupt bank bank- rupt sooner or later by this hazard The saying is common in the construction con cOn- cOnI I industry that industry that every contractor con con- tractor eventually goes broke These services combined are the function of ot the specialist and It Is upon these that he bases he-bases bases his Ms right to reasonable profit Whether he ac actually actually ac ac- gets that reasonable profit in a a. majority of cases cases may be Judged by the reports of ot banks s. s surety companies and federal Income tax ta rilE THE PUBLIC PAYS Of Ot the three functions here mentioned mentioned mentioned men men- the public official In charge of ot day labor operations supplies but buta a portion of ot one the managing and purchasing service When costs overrun the excess Is not made good goodby goodby goodby by public officials themselves or of course but comes from the public treasury treasur In In he Instance cited above It Is clear that the six sK contractors not riot only rendered a a. valuable service to society but contributed to the commonwealth commonwealth com corn some Even If It these thee conti contractors actors had come out even on en this work ot of possibly made a J a profit it is conceivable that their services still may have been of ot valne value value val val- ue ne to society There seems to be be therefore a very ery Important question question ques ques- tion connected with this matter as asto asto asto to whether or not society needs this specialist designated as a a. contractor contract contract- or Whether hether it nee needs not only his bis skill and experience c and his managIng managIng managing manag- manag Ing ability but also whether It needs him to guarantee the cost of ot its public structures He is the one and only agent which can and Is willing to guarantee th ho cost ot or construction One Ono can Imagine the replies that wont vo be received from Insurance companies If It a pUblio public body asked them to guarantee the I I ultimate cost of ot day labor labor- opera opera- I There are a number of ot interesting inter Inter- InterI I eating esting questions th tha o n naturally como come cometo comoto comoto to mind In connection with the contractors contractor's contractors contractor's contractors contractor's con con- tractors tractor's function as a a. specialist l For or example Who will train ap apprentices apprentices ap- ap pr prentices and carry carryon on the work of ot otI I inducting new recruits into the construction crafts crafts' Who Vho will w-Hl exercise exercise ex ex- a bearish influence on the material if It not the short selling contractor Public officials will vill not do so because they lose nothing from roni rom a rise in the market Contractors Contractors Contractors Con Con- tractors on the other hand and must do so or go bO out of ot business Will the he public officials spend their own i time equipment and money manufacturers J in operation co-operation f ano to develop devel devel- with W op 01 new and improved P machines C as ence nce the I e contractors t are now doing and how under shifting administrations and nd superintending force can the public body conserve the specIalized specialised knowledge gained in Its operations operations' This whole question quest of or whether America needs he specialist is a matter worthy of ot serious consideration tion in connection with day labor Today the contractor after successfully suc sue building some somo 60 per cent of ot the nations nation's permanent wealth is asked because of ot utter misconception tion of ot his function and service to ao Justify his existence In industry As one contemplates merely the physical physical cal problem being solved today by bythe bythe bythe I the master constructors of the world it seems odd that they should even need to argue algue their case se He lIe I like the engineer the chemist and the surgeon is constantly investigating investigating investigating gating an and 1 adding to the store of ot knowledge in his vocation Desire to oust him from public publio work seems to be predicated on one or both of two errors E E her the specialist is not needed and has nothing to conI contribute contribute con con- I tribute to the welfare of society or orthe orthe orthe the political office holder Is also a ai i specialist capable of ot managing the most hazardous ventures encountered encountered encountered I in business If the company's usefulness fo to o society Is In doubt then one ma may as well ask does ask does oes the society need the financial ability I and experience of the successful l banker or shall shaH the casual office holder manage our monetary Institutions institutions Does it need the trained railway executives or shall the government government government gov gov- operate our transportation atlon system with trained to the specifications of civil service examination examination nation Does it need the men who have developed and managed the telegraph and telephone systems or should these be entrusted to the Democrats this year and to the RepUblican Republican Republican Re Re- publican next There seems rea- rea grounds for doubt that the public office holders of this country axe are the proper agency for Cor managing I the nations nation's vast public construction construe construe- tion aion program Those Individuals who have haye managed managed man man- aged ed to survive against th the st-en- st dous ous and even ignorant competition of construction believe that society does need this man who has built up a great fund of experience and specialized skill and ancl holds his organIzation organization or- or ready read for responsible public service Th They y l know now that he heIs heis heis Is the product of orderly development development development develop develop- ment in in industry and a necessary unit In the system of ot competitive ec ec- ec It is perhaps well wel to re remember remember remember re- re member that the contract system is not something forced upon so society society so- so and maintained there against Its needs but is a system which I gradually replaced day labor operations operations opera opera- of ot earlier year jear through it ef efficiency efficiency efficiency ef- ef and the requirements of rapid modern development It is based upon well wen established economic economic eco ceo truths Its competition dei de- de and enforces high i I I low cost efficiency It furnishes the guaranI guarantees guarantees guaran guaran- I tees and responsibility upon which the safe e financing n of construction i j I projects j must s restI rest f. f I The contract system doubtless I has Its evils Just as ever every system of ot is beset with vIlli evils but these the e vils are now peculiar pecullar to or an inherent part of the sy system tern tem or fostered b by it They are the result of human weaknesses to be found under any system Such evils as exit appeared to result principally principally pally from the failure of ot owners ow-ners to demand skill Integrity and responsibility re re- re- re in their constructors lv I th the public body awards I Its contract to a bidder with barely Intelligence enough to fill out a aI I proposal and with no financial re- re using less care in Selecting se selecting selecting se- se the contractor for a 1000 project than it would in buyIng buying buy buy- ing a pair of shoes Comparatively few fee officials seem to haye the courage cour cour- age ace to award contracts on tracts onlY to contractors who are capable of or carrying carrying car car- out the obligations and to toI withstand the criticism ensuing I when hey they skip a low but irresponsible irresponsible sible Ihle bidder I If lf the I day labor advocate has hasi i ground for tor complaint against the contracting Industry because of ot the service it has rendered It is because j 1 he be himself t has been too weak to I 1 reject je lmh the 1 bidder d and carry out his functions as an awarding awarding awarding award award- I ing officer in accordance with the the established law The Tho next and d last article to ap appear p lt CI d 19 pei pear tomorrow 1 0 will deal with II the seriousness of ot the situation |
