The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1904-12-20

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~ IF there has been fraud I y
=: want to have it come out. y
:. High or low, 1 want to know ~
" it."-Governor Carter. -
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company wrote to the Governor rails
ing some new points. entirely apart
from the matter it had been agreed
upon to arbitrate. Upon receipt OF this
letter Governor Carter wrote that he
of any foreign matter at this point. He
said that he did not consider it fair
to ali parties.
And then, yesterday, came the refusal
of the contractors to submit the Ease
to arbitration at all. The reasons for
the refusal to arbitrate given in the
letter of the contracting company are:
THAT no arbitration could be bind
ing upon the Government, and even
after it had been had there would fol-
low no protection to the contracting
company from the proceeding of any
citizen who might be inclined to COM
mence injunction proceedings against
them to stop their work; that there
was no person in the Territory suffi-
GENTLY informed upon the matter at is
sue who was sufficiently impartial to
give his decision weight; that the
bondsmen of the company under the
contract objected to any arbitration
without a determination of the ques-
tion of fraud in the specifications.
FRAUD IS ALLEGED.
And here comes story. In the hear
ing before Governor Carter the repre-
sentatives of the American-Hawaiian
Construction Company had said that
they would not press any allegation of
fraud in connection with the Insane
Asylum contract. Nevertheless, in the
papers laid before the Governor by the
representative of the company that al
legation is made. That, in fact, is the
story. 1t is a long story, as told by
the documents on file with the Cover
nor, and it must be understood that
the story as it is related is the story
of the representatives of the Americana
Hawaiian Construction Company.
This story does not make a direct
charge of fraud against Mr.. Holloway.
1t does charge, however. that trap
was set for Holloway in the prepara-
ton of the specifications for the In
sane Asylum building, and that he
walked into it unwittingly.
The story hangs upon the particular
specification naming the kind of con-
crete block that should be used in the
construction of the building. Under the
specifications, which Mr.. Amweg claim
ed he had not noticed sufficiently until
after the contract was signed, it is
claimed that concrete block is called
for which must be tamped and pressed
at the same time-a thing which the
contractors claim is physically impos-
sible and a new departure in mechanics.
Now the claim is set up that before
the specifications were drawn up the
architect of the building, f. w. Boards
lee. had been informed that L. e. Pink
ham, now president of the Board of
Health, had made certain concrete
blocks by hand, of finer grain upon one
side than upon the other, which blocks
were shown to Beardslee and Holloway,
and made the basis upon which the
specifications were drawn. Tt is charged
further in the statement of the con-
tracing company's case on file with
Governor Carter that Pinkhalm had en-
tered into an agreement with the Con-
crete Construction Company, which was
the opposing bidder for the work, to
make a machine that would make the
contract blocks for the said company
unknown to the American-Hawaiian
Company. The contracting company
claims that Architect Beardslee admit
ted to them that he had drawn the
plans and specifications for the Insane
Asylum building in accordance with
the desires of the Concrete Construc-
ton Company.
In support of this q copy of a con-
tract is offered purporting; to be in
Beardslee's handwriting. offering to
them the machine in question, and
which contract they say they refused
to sign. Under the provisions of this
alleged contract the claim is made that
BeardsIee would have cleared $4,000.
AN ADVERSE COMBINATION.
Proceeding with the presentation of
their case the contractors claim that
there was a combination OF contract
ors against them at the time that the
contract was let. In proof of this the
fact is cited that when their bid was
put for this work several bids that had
Continued on page 3D.