The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1870-02-24

ViIbin eis6s month"; Yfoia sks data q
heir agreement, NOT less than $7OO, 600
iNotfk 81 work, which amount they agreed
to a;lvance, taki1& ouiygas oQ'lateral an
S0fiiyalent sum iflfha bShds Il the oSm-
asny,, with thes hderst hdin thatIAsid
bouds we're not be did 3osed3 without
ihs ;Es % sssoting - olshsS are Ths 1s
9f6st naucement to make such O con-
tfhct. las the fact the Engineer, having
Eaportea that tho coat tEpfscopstEpetion
.Noh1d be between eight and nine mil
lions, OF dollars, tbat an absolute sole, of
any portion Of the bonds necessary to
carry onzthe work until the meeting of
the Legislature you'd have prevented
that b56y rom authorizing, by an
amended sAct, the Issue Of 5 sufficient
number Of the game GLASS Of bonds, to
wit:p First mortgage bonds, to complete
the undertaking. The company were
fully convinced that if the road was to
be finished, il could only be done by
State aid through gnacantead bonds and
that disposStIon,' absolutely, of any of
the four millions would have compelled
the LegisietnIe, in granting additional
assistance, to- issue o second GLASS of
mortgage bonds, which, would have ma
terially deteriorsted in value and unne-
cessarily injured the interests of the road
and of the State. Hence. the object of
the agreement with Messrs. Creswell &
Co., was TO compel an advance by them
of $780, 900 for work done. in addition
to the $500. 600 fret alluded to, and thus
to save the Blue Ridge Railroad Compa.
ny all of the original bonds, to the end
that when the Legislature took further
action in the matter, the additional issue
of bonds requisite to complete the road
might be of the same GLASS.
Up to the 4th of December, the sub
contractpr under Messrs. Cresswell &
Co., notwithstanding their agreement,
had done but little of the work. The
Directors Of the CompanHa met in
Charleston on the 10th, aud The Stock
holders on the 2Oth of Nevehhes, aud
declared the contract of CresWeH & Co.
invalid, because of their failure to per-
form its stipulations; but at the same
time, in the resolutions which were
adopted, they authorized the Executive
Committee ''to give to the contractors
an opportunity to withdraw from said
contract, if they prefer to do so, ana also
to make such indemnif1cation for any
outlay to which the said contractor may
have been subject, which may be agIeed
upon by the two parties, and which, in
the event of disagreement, may be
deemed to be just, by disinterested per-
sons selected by both parties"
Subsequently, the Executive Commit
tee met in Columbia, and the contract
ors made claim for very large indemnifi-
cation for outlays, and expenses already
incurred, as we'll az for profits, which
they claimed would have been realized
by them, had the contract been fulfilled.
On an examination of the contract, it
was found that the Company had right,
IN case of Unreasonable neglect or fail
ure to perform the contract, to serve O
written notice upon the said parties,
setting forth the grounds of their appre-
tensions, and specifying the manner.
together with q reasonable time, in
which said parties might cause such
grounds to be removed, and if, at the
expiration of such time, said grounds of
apprehension were not removed, then
full power and authority was vested in
the Chief Engineer, to place such force
of men on said work as would, in his
judgment, secure completion of said
work in the manner and time specified
by the contract, deducting the expense
80 incurred from the estimate of the
amount due, and payable to said parties
of the first part
Under this clause of the contract,
Creswell Il Co. having failed to do the
amount Of work required, it would have
been competent for the Chief Engineer
to have let tho work to other parties;
but it was found, in consequence of the
very great depreciation in the price of
gold at that time, as compared with tie
price of gold when the contract was
made, that new contracts could be en-
tered into at 80 much lower rates as
would have saved the Company more
than $l,OOO,0OO; yet, while the
Engineer had the right, under the
contract with Creswell & Co., to employ
labor, he would have been compelled by
its terms to pay them the full amount
therein stipulated; hence, Messrs. Cres-
we'll & Co., having the advantage, under
the contract, first, by reason of their