The morning news., 1899-10-19
THREW UP THEIR CONTRACT.
MILES & BRADT ABANDONs HOUSE
DRAINAGE WORK.

ing the Contract to BE Illegal.
The city Disputes This Position
and VIII Hold the Contractors Re-
sponsibIe fer Any Loss 1t May In
cur.
Miles & Bradt have thrown up the house
drainage contract. The reason given by
them tor this action g that the consensus
of opinion is that the contract is illegal
and they cite recent decisions by the Su-
preme Court in similar cases from other
cities and state that they also have the
advice of their attorney 10 that effect.
The question of the legality of the city's
action in entering into such a contract has
been discussed before, and was brought
quite prominently before the public by
reason Of the inability of The former con-
tractors to discount the citys notes given
in payment for the work at The
banks. There was never any doubt,
however, as to the city's good
faith in the matter and Miles &
Dradt accepted the contract with the Eight
of recent occurrences before them. The
city has declined to release them from the
contract and has announced that it will
for any loss or damage TO which the city
may be put as the result Of their action.
The letter of Mics & Bradt, announcing
their withdrawal from the contract, was
received Tuesday by Mayor Myers. The
question being one of considerable i'm
portance the Mayor decided that it was
best not to make the matter public until
he had secured legal advice. After consul
tation with the city attorney the letter was
submitted to Council in caucus last night,
and was afterwards read in open meeting.
1t is as follows:
Tho Honorable Mayor and Board Of
Aldermen, Savannah, Ga.-Gentlemen: In
view of the decision of the Supreme Court
last winter and the attorneys elaborate
opinion in the Ansley case in Atlanta re-
Gently, and the advice of our attorney on
the subject, we have concluded that 1t is
too hazardous TO undertake TO carry out
the house drainage contract, which all
opinions showed TO be Illegal. and we wish
to advise you that We VIII not continue
the work.
While we do not doubt but that the
Council would act in good faith with us,
yet ii is in the power of any taxpayer TO
institute litigation and raise this question,
and as the city is not bound you can see
the danger we would be in should we pro-
ceed any further with the contract We
respectfully ask that the contract be can
celed and that we be paid the balance
still due us. Very respectfully,
Miles & Bradt."
1t did not not take Council long to decide
upon the citys position in the matter as
the following resolution, prepared in eau
Gus and offered by Alderman Thomas, will
show;
Resolved, That the Mayor of the city
reply to the communication of Miles os
Bradt of Oct l6, 1899, that the city cannot
agree TO their release form the house
drainage contract but as they have notI-
fed the city that they will not continue
the work it will be necessary 10 have the
work done by other contractors. In this
event the city viii look to Miles & Bradt
and their bonds for damages. and that the
city does not recognize that there is any
balance due them. In this reply the Mayor
is requested TO call their special attention
to their letter of July 49, 1899 and to send
them a copy of this letter"
The letter of July l3, 1899, referred to is
OF importance in this case. Under the con-
tract with Niles & Bradt the city was to
withhold Is per cent. of the price OF the
work done as a guarantee of a proper
performance of the contract, but the con-
tractors were to be allowed to draw this
amount also upon giving a satisfactory
bond to secure the ciiy on this feature, in
addition to the bond alrealy given by the
contractors. Under this arrangement the
city had about 5000 of the amount due
the contractors held up when the work
was stopped last spring, Early in July a
letter was receive from Miles q Bradt,
requesting to be allowed to draw this
amount. At the same time there were
rumors that they intended Withdrawing
from the contract. These rumors were dis
sA in, ton fhn
application to draw the amount reserved
and the Mayor was instructed TO write
Miles & Bradt informing them of the
rumors and explicitly requesting q stale
ment of their intentions in the matter. To
this Miles & Bradt in a letter addressed
to Acting Mayor Tedeman, and dated July
49, 1899, replied denying any intention on
their part of abandoning the contract and
stating IN terms that they had always
carried out their contracts and proposed 10
carry OUT this In view of the former
rumors and their explicit denial by the
contractors the members of Council now
regard the action of these gentlemen as
peculiar. to say the least. Upon giving
an additional bond of 5000 they were al
lowed to draw something over &, 900 of the
amount Withheld by the city under The
contract leaving on; s. eco due them bV
The city Besides this 81 eco N cash Gnd
The 5000 bond referred to, the city has
! the $4,000 BOND given ny the contractors
when thew first assumed the contract.
Mayor Myers, when seen after the meet
/ ing Of Council. said hat he REGARDED the
action of the Miles & Brodt, as very
| strange, to say the least. HAD they given
notice Of their intention 10 withdraw lost
summer" saii the Mayor .the city might
| have bee en- oh G to reach $ Nme sat,sfac ory
! understanding with them. Taey have wait
| ed untE almost time for resuming work
under The contract before Civ ng notice of
/ their inten'i0n TO abandon he contract.
/ This viii make Il necessary for us to pa 1e
| the contract in other hands, which means
delay and perhaps financial loss The con-
| tractors win certainly he held responsible
! for cny damage which the ci V may sus-
| tain and the $1,000 now - their credit
| will not be paid over 10 Them ror win their
| bonds he surrendered"
II was 'housht possible that the heavy
! advance IN all lines of material used in
construction work might have had some
| thing - do with the abandonment of the
contract by Miles & Bradt but Mayor
| Myers sad that this coud hardly be the
! case as q fea ure OF ihe contract provided