The San Francisco call., 1898-02-04
SUIT TO KILL THAT CONTRACT Action of the New Charter Clubs President at
 San Jose. City Council Temporarily Re- strained From RObbing
 the Taxpayers. Mayor Koch's Veto of the Brazen Job Warmly Applauded by Good
 Citizens.
Special Dispatch to The Call.

SAN JOSE, Feb. 3.-Sanford E Smith. president of the New Charter Club. to-day began suit in the Supe- rior Court to restrain Mayor Koch Councilmen J. P Fay, Julius Krieg George B. Dittus and William T. Nol- ting and the contracting firm of Nash & McReynolds from entering into three years contract for sweeping the streets of the city.
 The grounds set forth in the con- plaint are: That the letting of the contract is in violation of the pro- vision of the charter whic hprohib- it's the contracting of a debt in any quarter in excess of the money avail able for that period, and that for the quarter ending March 31, 1898, there will be but S1350 in the street contin- gent fund, while under the contract of Nash & McReynolds the street sweep ing will amount to s595 per month, or s17S5 per quarter.
 It is also further alleged that the contract with Nash & McReynolds cannot be lawfully entered into, as their contract was not the lowest.
 The complaint reciteS that but $27,- 900 has been raised for the street con- tingent fund for the year commence ing July 1, 1897; that the street sprink- ling and water for the streets will cost S2000 per month, and that if the con- tract is entered into between the Council and Nash & McReynolds there will be no money which can law fully be used to pay for the same.
 nt rary restraining order and cited all parties to appear in court February 14 and show cause why permanent injunction should not be issued re- straining them from granting the con- tract to Nash & Nc Reynolds.
 On January 19 the City Council, composed of Councilmen Fay, kre1g, Dittus and Nolting, passed resolu- ton awarding Nash & McReynolds a three-year contract for sweeping the streets. Five bids were received for the work, but the Council singled out that of Nash & McReynolds, the highest of them all, and awarded the contract to that firm. The bid of l.. Hewlett, over a third lower than Nash & McReynolds', was thrown aside. The Council claimed that Hewlett was merely speculating in the matter and
 
 him. The two bids are as follows:
 Nash & McReynolds-.0O52S2 cents per square yard per month, six times week for two-year contract; .002641 three times a week Two per cent discount for con- tract for three years.
 l.. HewIett-0O3975 cents per square yard per month, six times a week, two- year contract; one-half of the above amount for three times a week. Two per cent off for three-year contract.
 By giving the contract to Nash & McReynolds it was proposed to mulct the city to the extent of $4000 per year for three years. The old contract was $595 per month, and it is said that the bid submitted by Hewlett was lower than this. Three years ago Hewlett was given the contract and he immediately sold 1t to Nash & Me Reynolds, who pay him s75 per month for it. Just who was to get the $4000 per year that the new contract was to mulct the city of is the all- absorbing question.
 Mayor Koch refused to become a party to footing the city treasury to the sum of $12,000 in the next three years and vetoed the resolution. The veto was filed late Tuesday night and when the facts appeared exclusively in The Call this morning the citizens were unanimous in praise of that of- fciaPs action.