The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1901-06-13
AGREED.
Mr.. Flynn and the City
Fathers Decide to
Modify the Water
Contract.
100000 TO Be RETAINED
Only Hitch Is Over the Pay
ment of Interest on the
Sum Kept Back.

The water muddle is at last clearing. AT
this mornings adjourned conference be-
tween representatives of Contractor p. II
! Flynn and the Mayor and joint com
mittees of the Finance and the Street
and Water Boards, terms for the modifi-
cation of the water supply contract were
practically agreed upon. The only hitch
now is over the question as to whether
the city shall pay every six months the
interest on the $500, 600 which Mr.. Flynn
agrees TO allow the city to retain until
he can secure the alleged rights of the
Morris and Essex Canal Company to q
portion of the flow of the Rockaway
River or retain the interest with the prin-
cipal until his terms of the original con-
tract are carried into effect.
The other terms offered by Mr.. Flynn in
consideration of modification of the or
iginal contraot-a modification that will
not impair the original terms, but merely
removes teehnicaiity that stands in the
way of financiering the big work, appear
acceptable to the city. The matter of re-
tanning the interest on the S500,000 re-
taiAed out of the purchase money at the
completion Of the works until the cor
tractor can carry out the original con-
tract and give Jersey City the whole"
flow of the Rockaway River, is to be
submitted to Mr.. Flynn by his counsel,
AS soon as Mr.. Flynn is heard from an
other conference will be held and the
proposition to modify the contract def
nitely settled.
The full text of Mr.. Flynn's PROPOSE
tion is embodied in the following COM
:nunication to the Mayor and the joint
committee of the Finance and the Street
and Water Boards
To His Honor the Mayor and Joint Com
mittee of the Boards of Finance and
Street and Water Commissioners.
Gentlemen-As requested by your joint
committee, 1 submit the following terms
to which I am willing to agree, if the city
viii modify the water contract of Febru-
ary Is, 1899, under the act of March %,
1891. as outlined in my letter of March 80,
lsol:-
"a The surety bond for five hundred
thousand dollars which now remains in
force so long as Jersey City shall pur-
chase water of the contractors by the mil
Ion gallons" shall remain in force for the
benefit Of the city fer three years after
the purchase of the plant by the city.
~ The limit of time for the testing of
the works for purchase shall be extended,
if desired by the city. to period not be-
yond January 2S, 1905. without the pay
ment of the additional sum of four hun
dred thousand dollars, provided in the
original contract.
80 Upon the purchase of the plant the
city shall have the right to retain on de-
post five hundred thousand dollars of the
purchase money of seven million five hun
dred and ninety-five thousand dollars un-
til the happening of any one of the follow
ing events:-
(a) A final Judgment or decree of the
highest court of the State Of New Jersey
to which test case may be carried that
the Morris Canal and Banking Company
has no legal or equitable right, by pre-
scription or otherwise, to divert out Of
the watershed of the RoclSaway River at
Boonton any of the waters of the Rocka-
way River over and above the amount of
water brought into said watershed by
said canal from Lake Hopatcong and else
where outside of the Rockaway River
watershed.
(b) The delivery of a valid release from
the Morris Canal and Banking Company
and its lessee, vesting in said contractors,
for the benefit of Jersey City, the first
right to the whole flow of the Rockaway
River into said storage reservoir at Old
Boonton so far as the same may be
actually required from time to time to
furnish and deliver, with the storage pro-
vided for in the original contract, all the
water said Jersey City may require up to
d0r
tc) The abandonment under legislative
sanction by the Morris Canal and Bank
fng Company and its lessee of that portion
of the Morris Canal lying between Dover
and Montyille and the surrender of all
its rights to divert the waters of the
Roekaway River above said proposed
reservoir site.
Upon the happening of any one of said
three events Jersey City shall pay over
to the contractor said retained sum. Sc
long as the works shall continue to fur
nish the fully supply of water required Dy
the contract the city shall pay the in
ferest at 31s per cent. on said deposit.
90 Whenever the contractor shall de-
liver to the city a valid release from the
Morris Canal and Banking Company and
its lessees, releasing all their rights, II
any to the waters of the RocAaway River
watershed, after the abandonment OF
navigation for sum therein to be nara
ed, the same to be paid on the abandon
snent of that portion Of the canal under
legislative sanction then there Shall bt
paic by the city to the contractor al
Of said sum of five hundred thousand do:-
lars, except the amount named in said re
lease.
% The contractor shall not sell any wa
ters out of SAID watershed at any time K
any other person or corporation
10 The contractor shall upon the pur
chase of the plant and supply by Jersey
City, and without additional compensa
lion, convey to the city all of their rever
sionary rights in the waters Of ths
Rockawsy River watershed.
~ These notifications shall not reliev'
said contractor or his sureties from fur
nishing and delivering to Jersey Cit,
quantity and quality of water required
by the original contract. nor from con
s