Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-05-30
IMPORTANT 70 C|||ES
Ottumwa Wins Bond Case
Against Paving Co.'S Sure
ties, Involving $14,52O
PAVING WAS OF POOR QUALITY
Bond Company Sought to Evade Re-
sponsibiIity by Claiming That Ac-
ceptance Of the Work Released It
From Any LiabiIity-Pavins Com
pany Had Failed.
Special to Times-Republican.

Special to Times Republican.
Ottumwa, May 30.-Ottumwa won its
suit against the Assyrian Asphalt Com
pany and the American Bonding and
Trust Company yesterday afternoon In
the United States District court a. Des
Moines. The verdict which was rem
dercd by jury of twelve men after
about one hours deliheration gives to
the city S1,520.33 the full amount of the
principal and interest asked for by the
city. The 4Assyrian Asphalt Company,
being in bankruptcy, was not defended
in the case and the entire amount of
the Judgment was rendered against the
bonding company.
History of Case.
The history of this case which has
attracted great attention, not only
turnout Iowa but also other states, is
briefly as follows: The Assyrian As
phalt Company of Chicago, in the fail
of 1898, secured the contract for the
paving of West Second street. The
guarantee the durability of the com
pany's work and also to guarantee that
the paving be kept in good repair for a
period of seven years the American
Bonding and Trust Company, of Balti-
more, executed bond for $14,00 to the
city.
Of Poor Quality.
The paving put down by the COM
pany proved to be of very poor quality
and within year the asphalt top be-
gan to crumble. Meanwhile the AS
syrian Asphalt Company failed and the
bond company was called upon to put
the pavement into proper condition. A
J. Sinclair, Il Chicago engineer, who
had had charge of the work originally,
was sent out by the bond company and
made extensive repairs. This work did
not prove successful and in 1902 suit
was brought by the city against the
bankrupt company and the bond COM
pany for the full amount Of the bond.
In District Court.
The suit was brought in the Wapel-
10 county district court and was APP
pealed by the bond company to the
United States court at Keokuk. Re-
Gently it was transferred from the keo-
kuk court where it could not have been
heard till the October term to the same
court at Dies Moines.
The case is the first one of its kind
to come to trial and is OF the greatest
interest and Importance to every city
of the state which is engaged In public
irnproyeuents Had the bond COM
pany won it it would have been valu-
able precedent.
The bond company denied It's liabil-
ity on the ground that the completion
of the paving by the Assyrian Asphalt
Company and it's acceptance by the city
of Ottumwa was a release of the bond.
Judge Mcpherson instructed other
wise.
Point Was Valuable.
This one point, had 1t been submit
ted to the jury, would have been OF i'm
mense value to the bond companies OF
the United State inasmuch as 1t would
have established precedent OF allow
ing bonding companies to escape Ia
bility in similar cases where guaran-
tees for a term of years are made and
the bonding company given the right to
plead a release when the work was ac-
cented by the city. Judge Mcpherson
instructed the jury to find whether the
work was done i'll workmaniike manner
and if the materials named In the specl-
tications had been used and in snort 10
find whether the work as Whole nad
been performed according to the con-
tract.