The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-10-12
THERE IS A BIG DEFICIT.
MONEY DUE DEFAULTIyG CON-
TRACTORS WILL NOT PAY DEBTS.
city IL Protected, but Either the
Hanks or the surety Company
Must stand n Loss of over $4,000

When J. ID. McCauley and d. Delaney,
the contractors for the First avenue pave
ment and The Twenty-third avenue and
Main street sewer systems. disappeared
last Thursday, II was thought that the
city and all persons or corporations hav-
ing claims against them were fully pro-
tected and that no losses would be sus-
tanned as result OF the defalcatfon. 1t
Is now definitely known that there is a
shortage of AT least $4,000 which will have
70 be borne by either the surety company.
wnicn has taken up the abandoned con-
tracts, or the two local banks, which
advanced money to McCauiey 4 Delaney.
the question as TO who must cover the
shortage will undoubtedly have TO be
decided by the courts
In any event, however. the city IL fully
protected from any loss and the three
abandoned contracts will be completed
by the City Trust. Safe Deposit and Sure
~ Company, OF Philadelphia, under the
contracts entered into with McCauley a.
Delaney.
The estimates OF the work done upon
the three contracts at the time of the
abandonment. which have been completed
by City Engineer Thomson, are as fol-
lows: Main street sewer sssiT.46: Twenty
third avenue sewer. sii.2st.li, and First
avenue pavement. s3s2lsL This makes
total OF 2i.i35.S due the contractors for
work already done. sum which viii be
available TO apply upon the debts OF Me-
Cauley a Delaney whenever taxes have
been collected and the city is ready to
make payment.
The debts, for which this s21 .i35 So stands
: and may run far in excess Of that
as the only asset. amount to at least
figure. The claims OF laborers and those
who have furnished materials now on file
IN the city cemptroliers office, amount
70 over 10000: 1t IS thought that most
OF the claims have been filed although II
Is possible that the amount may be
swelled 10 xii.Do0
Two local banks have on file in the
cnmptroliers office assignments from Me
Cauley 4 Delaney OF all money and bonds
due upon the three contracts these as
sgnments apparently having been given
az security for money advanced BY the
banks. The amount OF these advances
cannot be learned but II IL understood
that they are In excess Of 5000
The representatives Of the surety com
pany announce their Intention to contest
any attempt made by the banks to secure
money from the city upon these assign
menis Notices announcing the intention
OF the company to complete the three con-
tracts were filed with the city comptroller
yesterday. In each of these notices APP
pears the following;
In accordance with this notice the un-
dersigned has entered upon said work and
stands ready TO prosecute the same to
completion. You are therefore hereby
notified that the entire proceeds due or
to become due from the city OF Seattle for
performing The work as provided under
said ordinance and contract. are due and
payable and will become due and payable
to the undersigned company. and you will
not make payment or deliver warrants to
any other person or persons, corporation
or corporations firm or firms"
The litigation to secure possession OF
this money will probably not come no
for several weeks yet, as II will be some
time before there win be any money TO
light for. None of the assessment rolls
have been approved. and upon one OF
them the hearing has not yet been had by
When the taxes are collected and
funds are available. the city comptroller
will refuse to pay either the banks or
has by that time been arranged. The
matter will probably be carried into the
courts In the shape OF a writ of man
damns to compel the payment of the
money to one or the other OF the claim
ants
Whatever may be the court decision as
to who shall stand for the shortage cree
ated by McCauiey q Delaney. the surety
company IL proceeding rapidly with It's
plans for completing the contracts and
taking care Of the claims Of the iaboring
men. 1t r. thought that arrangements
viii be perfected today for at once re-
Stunning work upon both the First avenue
pavement and the Twenty-third avenue
saver The Main street sewer Is prac-
tically finished and Is being completed by
day labor.
The claims Of ths laborers will he paid
as fast as they can be verified from the
pay rolls. and II ~ hoped 10 get all OF
them cleaned up today. The money for
the men on the First avenue contract will
be ready at 10 o'clock this morning. while
II Is hoped to have the labor debts nang-
ing Ove- the Tweuty-third avenue sewer
disposed OF either this afternoon or to-
morrow morning. This money will be
distributed by Denny. Calhoun 4 Ewing
the local representatives of the surety
company.