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GOVERNMENT ACTION \REQUIRED TO STOP _ "PEDDLINC"" QOF BIDS Contracting Experts Agree 'Intolerable Evil' \ _ Growing in Ontario, \ Heard at Lecislature Committee on Labor -- Fee and Licensing Sys-- tem Sought by Russell Nesbitt PROPOSED CODE NOT UNLIKE NRA 'The opinion that "bid--peddling" was an intolerable and growing ev.l in construction circles in Ontario, and that remedial Government action was necessary, was concurred in yos-- terday by experts heard by the Legis-- lature Committce on Labor, which convened for the first time in many r as a consequence of the action Russell Nesbitt (Conservative, Bracondale), in submitting to the House a resolution calling for an in-- vestigation into that field. With W. H. Yates and J. M. Pigott of Hamilton speaking for the gencral contractors and the Canadian Con-- struction Association; C. Ernest Wood, representing the Toronto Build'ng and Construction Association, and W. L. Somervilile, speaking for t..>: architects, the committee heard a forencoon of discussion in which litte disagreement in principle was evident, and adjourned until 10.30 on Monday morning, when other representatives, ndw'l'bor men, will be invited to William Morrison (Con-- servative, Hamilton East) was Chair-- man, supported by Hou. Dr. J. M. Robb, Minister of Public Health and Mr. Nesbitt's Proposals. Mr. Nesbitt, who proposes a bill W measures against * and other evils of the industry, is advocating a fee--and-- licensing system for contractors. Can-- cellation of license would be provided in case of any of seven infractions of the proposed code, which is not un like the NRA code in the United States in principle and practice. The acts which, under Mr. Nes-- bitt's proposed bill, would cause A contractor to forfeit his license, are: (1) abandonment of a contract with-- out legal excuse; (2) improper use of funds entrusted to him; (3) fraudu-- lent departure from or disregard of plans or specifications in any ma-- terial respect without consent of the owner or his duly authorized repre-- sentative; (4) wilful and dcliberate disregard and violation of building code of the Province or of the safety or labor laws of the Province; . (5) failure' to keep full records of all busi-- ness transactions; (6) misrepresnta-- tion of facts in obtaining license; (7) 3 yer 00. ttinct Amamidnlarnt funds entrusted lent departure plans or specif terial respect W owner or his c sentative; (4) disregard and * the doing of wilful fraudulent (¥<ere n Subcontracts Discussed. Much of yesterday's discussion re-- ' volved about the subject of whether contractors should be forced to sub-- raas A nog eCE N4 Ne c sadlers : cb in ic \«Ulv'wku EPTETTTTCT PC L mit a list of all subcontracts with the amounts involved, the general con-- tract to be awarded on the basisa of m}llt. fx'fim en the policy of T s e policy of the To-- ronto BMx and -- Construction Association," said Mr. Wood, "for the subcontractor to put in his price and stick to it. The subcontractor is sel-- dom'to blame in the condition which is now complained of." Dr. Robb--There is, however, &A general chiselling down? Mr. Wood--We know there is Dr. Robb--Who is the ultimate self. ing man does noOlt 1060 . Mr. Wood--He shouldn't lose, if the subcontractor is playing the game. Mr. Morrison--But he may lose, through men outside your group? Mr. Wood--That's common knowl-- edge. Mr. Nesbitt--Would you be in favor of legislation whereby . pvery sub-- contractor would be protected? "Evil of the Industry." Mr. Morrison asked if this step would stop general contractors from peddling contracts among subcon-- iractors. Mr. Wood objected to the word "peddling,' but agreid with Mr. Morrison that there often was "a man, a sort of efficiency expeort, wpo the evil of the industry. He added that the workingman was less lkely to suffer than the contractor, because the former was protected by organized "But a lot of workmen," said Dr. Robb, "are not organized today, or are cbliged by conditions to forget that threy are organized." Mr. Wood agrsed. Along NRA Lines. goes to the subcontractor and tries to beat him down after he has put in his bid." That, said Mr. Wood, was did its excavating itself. Mr. Yates said they would be doing it from now on. Mr. Yates agreed that last--min-- ute telephoned bids should be barred, and he approved a suggestion that all subcontractors' final bids must be in forty--eight hours before the general contracts closed. Iir Mr. Morrison--You mean the labor-- March 24 'The subcontractor him-- "Isn't it afact," asked Mr. Nesbitt, "that if a subcontractor finds hs is losing money, he passes on the' cut to labor?" Mr. Yates repglied: "Not reputable firms." In reply to George Oakley (Conservative, Toronto River-- dale) he admitted that there wore frequently leaks whereby a second sub. contractor could at the last minute learn a rival's bid and rush in a lower onr. Reputable Firms Defended. Mr. Pigott, who read a detailed and studied report on the entire situation, and was complimented by the com-- mittee, said the "whole structure is honeyrombed -- with pricec--cutting." From the moment the general con-- szxactor opened his bids he was be-- sieged with influences, he said. Some subcontractors tumbled over them-- selves to cut their own bids, and an-- other evil was collusion, under which attempts were made to fix pricss among the trades. He feared that in legislation aimed at the "efficiency experts," damage might be done in-- nccent general contractors, and sug-- gested a board under Government aus-- pices to deal with price--cutters, He too, would not admit the workingman frequently sufifered when prices were cut. Dr. Robb interposed that his infor-- mation did not agree that workingnen were not the losers under bid--cutting. Mr Pigott said those who did thus victimize labor were in such a cate-- gory that a licensing law would not touch them. "Chiselling" Cause. Mr. Somerville, the architect, agreed that one of the chief causes of what he called "chiselling" was the "own-- er's representative, or efficiency man." The basis on which this man worked gave him every motive for price--slash-- ing, for his only fee was a proportion of what he saved for somebody else by going to the subcontractors and securing cuts in their bids. He sug-- gested the 48--hour law would leave a loouhole for "tipping off." Mr. Morrison and Mr. Nesbitt ex-- plained, in adjourning the meeting, that it was desired to give Labor rep-- resentatives a full hearing on Mon-- day. so thevy would not bevin t in day, so they would not begin to in-- vite them,to speak before then. ne is ut to "Not eorge liver-- were