The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1904-12-23

give over 600 pounds, and many go
| far over that"
From Thursdays Advertiser)
Governor Carter has given the Amer
| lcan-Hawaiian Engineering G. Con-
struction Co., it's legal adviser and
bondsmen, an ultimatum. in effect re-
| quiring them either to claim fraud in
connection with the Asylum contract.
which if established would void it, or
to so ahead with the work, and tacitly
intimating that If they try to allow
the time for completing the contract to
expire without doing anything the Su-
perintendent of Public Works will have
to bring an action upon the bond
In giving out his letter to the COM
pany for publication, the Governor
stated that it contained all he had TO
say, at this time, on the subject. Here
is the letter:
December 81, 1904
American-Hawaiian Engineering &
Construction Company, Stangen-
wald Building, Honolulu.
Gentlemen: In your communication
of December eth, you call atten-
ton to the statement that in the last
year you have bid 1,597 less than the
next lowest bidder. The individuals
who have appeared in your behalf are
men of standing in this community,
who would scorn any desire on their
part to Intentionally take advantage of
the government and the taxpayers. Will
you, therefore, kindly state whether or
not you intend to claim fraud in con-
nection with the insane asylum con-
tract, and thereby void it?
If last evenings Star" is correct,
your attorney still disclaims any desire
to make charges of fraud; while in
your communication of December 7th
you submit statements that can have
no other Interpretation but that you
believe there is fraud.
In your letter of December 10th, the
third reason given for declining arbi-
tration is that your bondsmen object
under the conditions which exist in
this contract, without a determination
of the question of fraud, which they
believe should not be left undecided,
and which cannot be decided by arbl-
tration.'
In my last interview with your at
torney, he was told that both you and
he would render a public service by
exposing fraud.
You alone have raised this question,
of fraud, by your statements. 1t has
reflected on the architect and gentle
men who hold high public positions.
The Legislature made an appropriation,
and the administration is desrous of
carrying it out. Under the law, the
contract goes to the lowest bidder who
| furnishes a satisfactory bond. You
We're that bidder. You have been noti-
| fled by the Superintendent of Public
! Works to proceed with the work Do
you intend to proceed with the con-
tract, or delay the matter, under one
! preteXt or another, until the time al
lowed you under the contract expires? =?
| Public interest requires that this ques-
| tion be brought to an issue, and until
you decline to proceed with the work,
I fail to see what more the government
can do, than to wait your convenience.
The Superintendent of Public Works
has notified you to proceed, or the gov
ernment would hold your bondsmen.
Upon my initiative, you agreed TO
withdraw from the contract at my re-
quest, Under the circumstances, / be-
gan an investigation, taking what ap-
peared to be a reasonable interpreta-
ton of your statement of December Z.
that you claimed there was fraud in
connection with the matter. In this
1t seems, l was mistaken, and 1 then
agreed to arbitrate the question as 10
whether or not the specifications were
ambiguous and required you to do the
impossible.
Had you consented TO arbitration, and
the arbitrator had decided in your fav-
or, the odium and responsibility for the
delay would have been clearly upon the
administration. You decline arbitra.
ton. and still express a willingness tc
go on with the work. As the Super.
intendent of Public Works can take nc
action until the time for completing
the contract has expired, the taxpayers
await your convenience.
Very sincerely yours,
(Signed) G. r. CARTER,
Governor
P.S.-As the public has been led Il
| knliaula there Il a sansntinr ,nnnontos