Copper & Contracts

A source of unending wonder to Secretary of the Interior Ickes is the number of remarkable and recurring "coincidences" in which half a dozen big U. S. manufacturers submit secret bids--identical down to the last decimal--for Government contracts. Last week it was the Navy's turn to wonder at bids, though not at identical ones. For the first time in official memory the Government could get no bids at all on something it needed.

Early last month the Navy advertised for 2,600,000 lb. of copper. Not an envelope came in. Again it invited bids, again there was nothing to open. Since copper would not go to the Navy, the Navy last week went to copper, ordering 400,000 lb. at better than 12-c- per lb. from Kennecott in Manhattan and Calumet & Hecla Consolidated in Boston.

Though copper men volunteered no explanation for their apathy, the obvious answer was the Walsh-Healey Public Contracts Act, passed at the last session of Congress and applicable to all Government orders of $10,000 or more, exclusive of transportation, communication or construction contracts. The law requires the bidder to 1) pay prevailing wages, 2) adhere to an eight-hour day, a five-day week, 3) employ no child or convict labor, 4) maintain safe and sanitary working conditions. Most reputable corporations can qualify on all points except hours.

More than 600 contracts for some $35,000,000 have been awarded with Walsh-Healey Act stipulations in the last three months, successful bidders ranging from U. S. Steel Corp. to New York Knee Pants Co.. Inc.

Numerous textile concerns have dodged the law by splitting bids into lots of less than $10,000, a method suggested for motor makers. Last week, however, International Harvester and Reo Motor were awarded truck contracts after the Labor Department clarified some knotty legal points. One question raised by Harvester was whether the hours provisions applied to its other operations such as farm machinery or only to its truck plants. The Labor Department held that only the particular plant making Government goods was affected. In the case of the copper companies all mine operations might be included, which was presumably the reason for their refusal to bid. Reason they finally got the business was that the law permits suspension of the rules in an "emergency," a state which apparently exists when the Navy lacks copper. Another "emergency" may arise shortly because of boiler plate.

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