The morning news. [volume] (Savannah, Ga.) 1887-1900, 1900-02-28
CENTRAL SUED FOR $4,000.
RISE IN PRICE OF IRON CUTS BIG
FIGURE IN A CONTRACT.

Isaac Joseph Iron Company of Gin
cinnati Claims to Have Suffered
Large Loss by Reason of Failure
of the Central Railroad TO Keep "a
contract Made With Its Purchas-
ing Agent to Turn over All Scrap
iron for One Year at an Agreed
List of Prices-Scrap Iron Now
worth More Than New Material
Cost a Year Ago.
A suit for over $4,000 was filed in the
clerk s office of the Superior Court yester-
day by the Isaac Joseph Iron Company
ol Cincinnati against the Central Of
Georgia Railway Company. The suit is
BASED upon the alleged non performance
by The Central of contract made with
che iron company in January, 1899, by
which the Central was to dispose of its
scrap iron and other metallic waste Of
every description at a scale of prices
agreed upon.
The suit brings out clearly the immense
advance in the prices of all metallic prod
ucts and especially of iron and steel with
in the last six months. When the con-
tract was made, little over year ago,
scrap iron was not in especial demand,
and the Central sent out letters to various
concerns inviting them to make bids for
the " aste metals likely to accumulate dur
ing the year.
The petition filed by the iron company
shows that on Jan. 10, 1899, letter was
received by the agent of the company al
savannah from Mr.. ]. W. Conner pur-
CHASING agent of the Central announcing
that a Birmingham concern had made "a
bid for the scrap and waste metals for
thc year and requesting offer from the
Joseph Iron Company. To this letter the
savannah agent, Mr.. Joe Wolf, replied,
naming a scale of prices which the COM
pany was willing to pay for the different
classes of material. Mr.. Conner Endorsed
this as Accepted" ana attached his sig
nature. Mr.. Wolf holds that this acs
ceptance made the contract binding, and
that the Central is liable to damages for
failure to live up 10 its part of it.
In the offer which Mr.. Wolfe made for
the material the list of prices TO be paid
included scrap iron rail $12.25 "a ton, scrap
steel rails, frogs, switches, etc, S. ton;
wrought iron, scrap, $1O.50 a ton, and 9TH
or classes of waste metal a still lower
prices. The petition of the iron company
states that the railroad company delivered
il scrap and waste metal from Jan. IA,
1899, to Aug. 2. 1899, since which date it
has ceased and refused TO furnish any
further, Notwithstanding it has been re-
peatedly urged 10 carry out the terms of
the contract.
The petition states that during the pc
riod between Aug 2, 1899, and Jan. IA,
1900, when the company failed and re-
fused TO furnish scrap material as it had
agreed to do under its contract, all iron,
steel and other metal products, were at
their highest prices, the advance in scrap
material having been very marked. The
petition names certain amounts of the va
rious classes of scrap material which
should have been furnished under the con-
tract, which, at the prevailing prices,
would have netted the company quite a
handsome profit This statement includes
2,607 tons of scrap iron rail, valued at 1913
per ton. The contract price was Sl2.25 and
the iron company estimates its loss
on this item alone at $5i,095 Is
The iron company claims that
to have been deprived of 800 tons of
wrought iron, which, with the difference
between the contract price of $40. so, and
the market price Of $29 would have netted
SLIGO. On scrap steel loss of $42S5.25 is
claimed, and on other classes of metal
various other losses, bringing the total
up to S4,971.76. In addition to this the
company disks for $500 damages for the
trouble, expense and inconvenience to
which it has been put in bringing the
suit. Garrard & Meldrim are attorneys
for the plaintiff. ~
The question at issue in the case is evil
IDENTIFY whether or not the acceptance of
the iron company's offer by the purchas-
ing agent of the railroad for one year con-
situted contract binding on the latter
company. With the decided advance in all
lines of iron and steel products and the
heavy demand for these metals in any
shape, the railroad company undoubtedly
found it to its advantage to either hold
its scrap or to dispose Of it to other pur-