Evening journal., 1902-02-04
CONTRACT VOID
SAYS REINHARDT
This His Report in the EIeC.
tric Light Matter
HIS OPINION WAS BRIEF
Director Melvin Presented a ReSOlu-
tiun Commanding Lighting Con-
cern to Cease Operations

At the meeting of the Street and Sewer
Department this morning, City Solicitor
Reinhardt presented his opinion relative
to the street lighting contract between
the Welsbach Company and this city.
He declares it TO be invalid and
void The fight no doubt ultimately viii
be settled in the courts. This much mem
bers Of the department say is almost a
certainty.
Andrew G. Gray, the lighting concerns
attorney was present, and when Mr..
Renhardt announced that he was pre-
pared 10 present his opinion Mr.. Gray
arose and said he would like TO say for
the company that there was no mystery
about the matter. The company desires
that the public shall know all of the par
ticulars.
The concern, Mr. Gray said, is lighting
municipalities from Boston to San Fran
cisco, and the rate for street lighting In
this city is the lowest in the country, The
company is engaged ia a law suit with
the American Street Lighting Company.
of Baltimore, which concern has in
fringed on its patent.
Mr.. Reinhardt here arose and contend
ed that there is a mystery in the matter
and asked Mr. Gray why he did not
make the facts of the existence of con
tract known when the discussion IN the
various newspapers arose.
Mr.. Gray replied that after the CON
tract had been awarded he did not act
as attorney for the concern until about
two months ago when the officials sent
for him. Mr.. Reinhardt then read the
opinion, which follows:
Wilmington Del, Feb, 4, 1902
To the Board of Directors of the Street
and Sewer Department.
Gentlcmen Your letter of January %
has been received. In il You ask my
opinion as To the validity of certain
contract between the Wclshach Street
] Lighting Company Of America, and the
Mayor and Council of Wilmington. In
reply ! beg to submit the following;
There is no such contract on file in this
department. nor is there any record in
this department of any such contract
ever having been executed. The minutes
Of the meeting Of the Board of Directors
of this department dated June %, 1901,
disclose that contract was awarded
to the Welsbach Street Lighting Com
Hhutf VI aAAifiANNf W iANAiA anu hAhAAAAth
five hundred and eighteen l5lSl or more
gas lamps with its improved fixtures, as
per its recent proposals as may be deter
mined and directed for street lighting
There is no record of any other meet
ing of The directors of this department at
which the subject of street lighting was
discussed until the meeting of December
n 81, 1901. In the minutes OF the meeting
Of December 81, 1901, / find the follow
ing: On motion OF Mr.. Fahey, a term Of
ten years was fixed for street lighting
contracts. / am reliably informed that
the term of ten years of the term fol
which the Wclsbach contract was to run
was misdirected and that if this term
was decided at all in a meeting Of the di
rectors il must have been decided at this
meeting of December 81, 1901.
J., BY the courtesy of the Welsbach Com
pany | received copy of the alleged
original contract. From this copy | fine
that the contract is dated June "a, 1901
that it is executed by the Wesbach Com
pany and boy John G.. Fahey. mayor of
Wilmington, and attested by William +
Morrison, clerk Of Council, that the con
tract is TO run for term of ten years
commencing January J., 1902, and that un
der its terms the Welsbach Company IL
to supply this city with 1000 or more in
candescent lanterns Of 5O-candle power
! each at a cost Of S26.75 per lantern pei
annum.
Under the facts and circumstances M
have stated above, l am Of the opinion
tnat this alleged contract is invalid an'
void for several reasons, among whicl
2 2 are the following:
/. The act creating a Board Of DireC
tors Of the uStreet and Sewer Depart
!, ment. being chapter 1SS, volume is, Law
of Delaware. provides in section tina
T. the doings of all works and the furnish
y ing OF all materials and supplies require
y by said department shall be let out TO tn
= best and lowest bidder. Said sectio
further provides that notice that the do
p partment will receive proposals for sue
u work and materials shall i'm all cases b
e published at least five times in two dali
e papers by the city and that such motto
shall state the kind and the amount {
work to be done or furnished etc. N
II tice for gas lighting was duly advertise
and specifications were furnished by Il
department 10 all bidders. There wei
II two bids for gas lighting that Of II
Welsbach Company, with prices rangiI
. from S27 per lamp per year. TO $50 ~
lamp Der year. aud that of the Wilmin
~ ton Coal Gas Company, with prices ran
20 ing from Si620 per lamp per year, 10 s
al per lamp per year. The specification
la called for gas lamps Of sixteen cand
power. From the above figures il a
~ poars that the contract was not award'
!, II TO the lowest bidder nor was it award'
d. upon basis of a sixteen candle pow
lamp This contract is therefore n
valid for this reason.
.. Prior To January 2S, 1902. the Wei
lg bach Street Lighting Company of Anne
mt lea. a corporation Of the State Of lllinoi
al has never complied with any Of the pr
III visions of section Of article Q Of the ne