In 1923, Rabbi Meir Shapiro, the founder of Daf Yami, was establishing his Yeshivas Chachmei Lublin in Poland. During construction, the contractor discovered he had made a significant error in his project costs and realized that he had undercharged the Yeshiva. Due to the error, the contractor would lose money on the project. Fearful and embarrassed to ask the Yeshiva for more money, he continued building while secretly using inferior materials to cut corners and minimize his losses.
Rabbi Shapiro noticed the inferior materials being used and called the contractor into his office. Realizing that he had been found out, he expected to be fired, shamed, and was prepared to lose his hard-earned reputation within the Jewish community. Instead, Rabbi Shapiro said, "Show me your original project cost calculations."
After reviewing them, Rabbi Shapiro said, "I see the mistake. This was an honest error that anyone could have made." Rabbi Shapiro then recalculated what the building should have costed and paid the contractor the difference from his own funds which he had been saving for years.
The contractor protested, saying it was his mistake to bear. Rabbi Shapiro responded, "If I allow you to lose money building a house of Torah study, what lesson does that teach? That Torah brings ruin to those who serve it? No. Your honesty in showing me these calculations is worth more to me than the money I spent."
The contractor was so moved that he not only replaced the inferior materials that had been used, but he also added building and structural enhancements at his own expense. The building became renowned for its beauty and durability. The contractor's family still tells this story, emphasizing Rabbi Shapiro's honesty and integrity.
Rabbi Shapiro could have rightfully insisted that the price he agreed to with the contractor was the price to be paid and insist that the contractor build the Yeshiva with the proper materials and eat any losses due to his error. Instead, Rabbi Shapiro insisted on paying from his own funds, the rightful project costs of the Yeshiva to ensure that the contractor would not lose any money.