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~32— os “When Matz gave a copy of this schedule to the close associate, he was told that he would be expected to make payments to the close asseciate for county contracts. The close associate said that as Matz's company received fees from the County, payments were to be made to him in the appropriate per- centages, 5% on engineering contracts and 2-1/2% on surveying contracts. He ‘led Matz to believe that this money would be given to Mr. Agnew. These pay- ments were not described by the close associate as “political contributions"; they were payments made in return for contracts. Thereafter, Matz discussed this proposition with Childs. They were not surprised that payments would be necessary because it was generally under- stood that engineers had been naking such payments for consulting work ina number of Maryland jurisdictions.. They agreed that this would be a satisfactory arrangement. In fact, they were delighted that they would be among the small group of engineérs who would be close to the Agnew administration and that they would, therefore, receive their share of the substantial county engineering consulting work. Although the 5% payments were not insubstantial, the company could aiford to make them, and Matz and Childs both believed that the payments would make a substantial difference in the amount of work that their company would receive from the county. During the balance of Mr. Agnew's tenure as County Executive, Matz and Childs would find out what contracts were coming up in the county, and Matz would then contact the close associate to ask him for as many of these contracts as possible. The close ‘associate always seemed well aware of the work to be let, and from time to'’time, he would advise Matz that his company had been awarded a particular contract. Matz then knew that, under their arrangement, the necessary payments were due, and he would therefore deliver the required cash payments personally to the close associate in the latter's office. On most occasions, Matz placed the necessary cash in plain white envelopes. Usually he paid in installments rather than in one total pavment in advance. Matz and Childs believed that even if they had refused to make these payments their company would have received some county contracts, but that, as before, the com- pany would not have received any substantial amount of work. In short, they believed that the payments made a great difference in the amount of work they received. ; i ete tae weep A werden sper!