The Birmingham age-herald., 1903-12-23

next month 10 SeItle the aHdTS ol lHe concern before Referee N. W. Trimbie, the claim of D. M. Drennen for S10,0OO against this company, the Pennington Construction company and C. M. Burk- halter & Company. for acting as an ad- visor in securing a contract from the Jef- ferson County Sanitary commission will be contested.
 This information was given out in n statement made yesterday afternoon by Harry W. Coffin, who was appointed re- ceiver and later trustee of the bankrupt company.
 MT. Coffin said
 Intention of Trustee.
 "It has always been the intention of the trustee and his attorney to contest the claim of MT. Drennen, and any other claims that in our opinion should not be allowed My attorney. MT. Frank White, Is now Investigating all of the claims against the creditors of the Donelson com pany."
 Further than making this statement Trustee Coffin refused to be quoted.
 Mir. Drennen refused to be interviewed on the subject. When seen yesterday af- ternoon, at his place of business, and ask ed if he cared to make any statement, he declined to discuss the subject, saying:
 I've are having the best Christmas trade we have had since have been In Birmingham, think"
 Mayor Drennen's Views.
 w. Melville Drennen, mayor of Birming- ham, and brother of the claimant in the suit against he Doneson Construction company, when asked if he knew any thing about his brothers claim. or cared to say anything, replled
 'This is strictly a personal matter with D. M. Drennen, and, of course, I am not connected with it in any way. I must ad- init. however, that I have heard a good deal of talk since publication was made of the suit, and some insinuations have been made about the circumstances. I can see nothing irregular In such an agreement being entered into between business men by which the services of another are secured in the capacity of an adviser MT. Drennen simply acted as a financier for the three contracting firms, as I understand 1t. There are hundreds of business men who do this every day"
 Engineer Hendricks Statement.
 Julian Kendrick, engineer for the city of Birmingham, was seen. He made this statement:
 "The figures contained in the statement of Secretary R. B. Smyer in today's Age Herald are correst so far as I know. The commission received bids in May, 1902. from the Donelson Construction company, the Pennington Construction company and c. M Burkhalter & Go. for building the sewer Their aggregate bid was s3OO0OO. which considered much too high At my suggestion the commission decided to re- ject the bids and advertise for new ones, which was done. The second bids were all right so far as the price to be charged for the excavating, in my opinion, but the bids of s2 65 per llneal foot for con- stfuction was too high. It was estimated the construction work should not cost over $2.52k per lineal foot. In July the contractors furnished revised bids which aggregated $9SO0 less than the first ones for the entire contract.
 "Of course this is as far as I am con- cerned in the matter. The question of the contractors buying the bonds did not come in my department and therefore I can give you no information on that sub ject."
 Cost of Actual Construction.
 The books in the office of Secretary R. B. Smyer show that the sanitary com mission has already expended the sum of $1S,52614 on actual construction. Secre- tary Smyer said:
 "The total expenditure to date of s1s- 52614 for construction of course includes the sum of sS043. 70 paid c. M. Burkhalter & Co. for building the Bessemer exten- sion of the trunk sewer. This extension which is now being used by the city or Bessemer, IS one and one-half miles In length and has been completed some seven or eight months.
 "C. M Burkhalter & Co.,, which firm is now in the hands of receiver, have the contract for building four sections or the main sewer. The amount of $l342.S9 has been paid this firm on the work so far completed. This was the estimate for one month, that of October. Before the time came for the second months esti- mate to be paid the contracting firm went into the hands of receiver, and as the United States court had not then appointed receiver, there was no one to pay over the money to. The estimate for the second months work will amount to probably 5000, and 1t will be turned over to the receiver in January with tho estimate for December, giving c. M. Burkhalter & Go. about $10,000 for the two months estimate.
 fSo far the Birmingham Construction company, which firm has the contract for constructing one section of the sewer. has been paid s914O75 on their contract. This was for last months estimate. The estimate of this firm for the month of December will amount to probably s35O0.
 Under the contracts the commission holds up 10 per cent of the amount due the contractors every month until their entire contracts are completed and &C., cepted by the commission.
 Method of Paying.
 .The contractors are paid in this way. At the end of each month Chief Engineer Kendrick makes estimates on the work completed during the preceding month. These estimates are then forwarded to the auditing committee. which is com posed of James J. Smith, chairman; J. M Gillespy and T. H. Notion, to be audited and approved
 'Tf the committee reports favorably on the estimates a resolution is adopted in- structing the president to draw a requ- siton on the board of revenue for the amount of the estimate. The board of revenue in turn draws a warrant for the contract on the county treasurer and the estimate Is paid
 'The sanitary commission meets on the first Tuesday in each month for the pur- pose of passing on these accounts and transacting any other business that might