Evening journal., 1902-05-06
REPUDIATED THE
GAS CONTRACT
Street and Sewer Directors
to Advertise for Bids
LITIGATION TO FOLLOW ACTION
Result Of The Refusal Of Mayor
Fisher 10 Pat His Name to
the Paper

Members of the Street and Sewer Di-
rectors. after a conference with City
Solicitor Reinhardt this morning, re-
pudiated the Welsbach gas lighting
contract which Mayor Fisher refused
to sign last week and decided to ad-
vertise for new bids for lighting.
The directors previously adopted a
resolution favoring the awarding of a
compromise contract for 518 lights. The
gas company also holds a contract for
1000 lights, which was signed by for
mer Mayor Fahey.
The Welsbach Company contends
that the contract was legal, and the
city will be forced into expensive liti-
cation in the courts to try and main
tain the position it has taken
Before it was decided to revoke the
contract two lengthy conferences were
held, one yesterday afternoon and an
other this morning. City Solicitor
Reinhardt was present at both, and
the public meeting this morning.
After the board assembled Secretary
Christy read the following resolution;
Whereas, At a meeting of the Street
and Sewer Department held at Sixth
and King streets, in the city of Will
mington, on the 18th day of March, A.
D., 1902, a certain resolution was adopt
ed by this board, directing that form
of contract between the Welsbach
Street Lighting Company of America
and the Mayor and Council OF VIII
mington, for lighting the streets Of
said city, be prepared by the city solici-
tor to be executed by the proper au-
thOrities of said city and
Whereas, The said contract was so
prepared, as provided for in said reso-
luton but the Hon. George NJ. Fisher,
the Mayor of the city of Wilmington,
has declined to execute said contract
on behalf of the city; and
Whereas, In the best judgment OF
this board. the interests OF the said
city of Wilmington demand prompt
and speedy settlement of this lighting
controversy, even though such settle
ment may involve the city in litiga-
ton; now, therefore, be it
Resolved, That the said resolution
passed by this board at the said meet
ing on the 18th day orr March, A. D.,
1902 be and the same is hereby re-
voked and repealed; and be it further
Resolved, That the secretary of this
board me and he is hereby authorized
and directed TO advertise Immediately
for proposals for lighting five hundred
and eighteen (51S) or more gas lamps
in the city of Wilmington in accord
ance with the specifications herewith
submitted: and be it further
Resolved. That the secretary of this
board be and he is hereby authorized
and directed to notify the Welsbach
Street Lighting Company of America
that the Mayor and Council of Will
mingtOn, through its legally cOnsti-
tuted agent, the Board of Directors Ci
the Street and Sewer Department, has
repudiated and renounced and does
hereby formally repudiate, renounct
and refuse to be bound by any of the
terms of a certain alleged contract foI
lighting the city of Wilmington, bear.
ing date the q TIL day of June, A. ID.
1901. purporting to have been executed
by the Mayor and Council of VII
mington and said Welsbach Stree
Lighting Company of America, for the
reason that the said alleged contract is
Illegal and void.
Mr.. johnson made the motion tina
the resolutions be adopted, and Mr.
Carter seconded them.
The following was read to explain
the position of the members in tn,
matter:
"The members Of the Board hav'
tried all through this Welsbach con
trOversy to do what in their judgmen
was for the best interests of the city
In view of the large sums of none!
which the city has been obliged I,
pay for legal expenses in the last few
years il was the desire of the board Il
avoid. If possible, involving the city il
. expensive litigation over this allegei
contract. It was with this end il
view that the compromise with tn
Welsbach Company was attempted
Under this compromise the city was L
receive a 100000 bond of indemnit,
from the Welsbach Company indemni
fying it against all litigation expense
in connection with the compromis
contract. But Mayor Fisher, in hi
best judgment, saw fit TO refuse T.
carry out the compromise. The boar
IS, therefore, confronted with stron
probability of litigation, no matte
what step it may take in this matter
IT has therefore. decided to ask 70
new bids and award a new contract
relying upon the opinion of the Cit
Solicitor that the alleged ten-year con
tract with the Welsbach Company i
invalid and void"
Andrew c. Gray, representing tn
Welsbach Company, said the action o
the board came as a surprise to him. ''
will have to make a report to the com
pany." me said. "1he action Of tn
board this morning will force us int
court We claim we already have
contract with the board. Until tn
contract Is awarded IN onothar hidda
we are ready to take out or furnis
the board with additional light"
1t will be impossible to get the bid
L--l-.-- 1 a