The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1870-03-04

may haVe been subject, or which may
DO agreed upon by the two parties,
and which, in tho ovent of disauree.
ment' may be deemed just by disinter
ested persons selected by both par
ties.''
I Subsequently the Executive Com.
m'ttee met in Columbia, and the con-
tractors made claim for very largo in
oemnihcation for outlays and expense
already incurred, as we'll as for pro.
hts which they claimed would have
been realized by them had the con-
tract been fulfilled. On an examina-
ton of tho contract it was found that
the Company had right, iu case of
unreasonable neglect or failure to
perform the contract, to servo n writ
ten notice upon the said parties, sctt-
ing forth the grounds of their apprc-
henslons, and specifying tho manner
together with reasonable timc i,
which said parties might cause such
grounds to be removed and if at the
expiration Of such time said grounds
OF apprehension wcro not removed
thcn full power and authority was
vested in the Chiet Engineer to place
such force of men on said wor, as
would, in hisjudgmcnt, secure a COM
pletIon of said work in the ma,uer
and tImo specified by the contract
deducting tho expenses so incurred
from the estimate of the amount due
and payable to said parties Of the first
part"
Under this clause of the contract
Crcsswc & Co., having failed to do
the amount of work required, it
would have been competent for the
Chief Engineer to have let the work
to other parties. but it was found, in
consequence of the very great dcprc
cation i'll tho price Of gold at that
time as compared with the price of
gold when tic contract was made,
that now contracts could be entered
into at SO much lower rates ma wonld
have saved tho Company moro than
a million of dollars; yet, while tho
Engineer had the right, under the
contract with Cresswcll & Co., to en-
ploy labor, he would have been CON-
PEELED by its terms to pay them the
iull amount therein stipulated; ; hence
Messrs Crcsswell & Co., having tho
advantage, under the contract, first,
by reason of their advance of three
hundred thousand dollars, (although
the Company have not deemed it pru-
dent to use the the same y and, &C.
condly, by reason OF the depreciation
IN the price of gold, have claimed
large damages should the contract
with them be annullcd. ...'.
The Executive Committee, consid-
ering the advantages which would ac-
crue from annulling the contract, and
making another that would save
moro than q million Of dollars for the
cause already stated, the Attorney
General of the State and the Solicitor
of Cresswell & Co., were invited to
appear before the Board of Directors
and these gentlemen presented their
views. The principal point of the
controversy discussed was, whether
Messrs Cresswell & Co., had forfeited
their contract by failure to commence
the work within the period and in the
manner stipulated. On both sides
the arguments were able and learned;
and, without undertaking to decide
which view was correct, legally, the
Executive Committee are satisfied
that there is sufficient material in the
case for a long, tedious and doubtful
law suit, which will necessarily result
in the suspenion of work on the
road.
They therefore, advise, to avoid H.
tigation, by compromising with tho
contractors, which they recommend
shall be done by paying to Messrs.
Cresswell & Co., seventy-fve thousand
dollars to release thoir contract, and
thirty-seven hundred dollars, being
one-half interest apon tho sum de-
posted to the credit of the President.
:. This recommendation of the Exec
utive Committee is confirmed by the
fact that tho Company, was not in a
condition to deposit the bonds, and
thus comply with their part of the
contract. .'-.-.'
AS above stated, none of the bonds
authorized to be issued by the Legis-
lature have been disposed of. A
small amount has been deposited in
the Office Of the South Carolina loan
and Trust Company, Charleston, as
collaterals, to raise money necessary
}: for the purposes of the company, but
they have been used in such a way aa
not to prevent the Legislature from
putting any additional issue of bonds
:. which it may authorize in aid OF
the road upon precisely the same foot
y