Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1885-08-12
WHITNEY AND RO4CH.
The Secretary Declares the Contra CTS.
Forfeited.


WASHINGTON, D. c., Aug. 7.-Secre-
tary Whitney yesterday sent the fol-
lowing letter to John Roach and
his assignees and sureties on the con-
tract for the Chicago:
By the seventh clause Of your CONTACT
with the United States, dated July 26,
1888, for the construction of one steel
cruiser of about $500 tons displacement,
it WAS agreed that the hull, machinery and
fittings of such vessel should be completed
and ready for inspection for the purpose of
delivery on or before the expiration OF eight
cen months from the date Of the contract.
1t was further provided in the eleventh
clause that in case of the failure or omis-
sion Of the contractor at any stage OF the
work prior to final completion for any
cause other than the order of the Secretary
Of the Navy, to go forward with the work
and make satisfactory progress toward it's
completion, it should be optional with the
Secretary to declare the contract forfeited
More than six months have now ELAPSED
since the expiration OF the limit thus fixed
and the work upon the vessel has been
stopped while much remains to be done
before she can be finally completed. At the
same time it is evident that the public in
terest requires the vessel in question, known
as the Chicago, to be completed with all
come necessary for the department to take
immediate and definite action looking to
that end. Under these circumstances, and
in consequence Of the failure of the con-
tractors to proceed with the work, have
to inform you that the contract above
referred to is hereby declared to be forfeited
on the part of the contractor. and
that the rights of the United States, under
the contract, and especially under the
eleventh, twelfth and thirteenth clauses
thereof, are now operative. You are further
informed that it is the intention Of the de-
partI1ent, after the inventory and ap-
praisement shall have been had to take
steps for the prosecution OF the work and
the completion of the said vessel IN accord
ance with the conditions expressed in the
contract; and that, in the meantime the
chiefs Of the bureaus of steam engineering
and construction and repair OF this depart
ment will take charge OF the vessel, ma
chinery, materials and fittings.
Similar letters also were sent in re-
gard to the Atlanta and Boston, and
an order was issued to the chiefs OF
certain bureaus to take charge Of the
work. In issuing the order, Secretary
Whitney says:
The order issued to-day with reference to
the Boston, Atlanta and Chicago. is made
is pursuance ofmy duties under theeleventh
clause of the contract. Under that section
there is to follow en- inventory showing to
what point of completion the vessels have
come, and what material is on hand in the
contractors yard which has been proved
for the ships, and how far the work has
progressed to be followed by q valuation
Of these things. There is then a provision
that the department shall decide whether
to complete the ships. As the matter now
stands there is no question of my duty to
go on and do this; and it works an inciden-
tai benefit, OF course, to the contractor
and to his employees. The government
steps into the yard, takes possession OF the
ships, the plant, etc, pays for the compile
ton and then has an accounting with the
contractor at the end, and if there is any
profit the contractor has it, and If there is
any loss he pays it. Under these circum-
stances, it is entirely fit for the heads OF
the bureaus having the supervision Of the
work to use the contractors force and his
plant for the purpose"