The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1904-12-22

Governor Garter has decided to bring
the new Asylum Contract controversy
to a head. After all the talk that has
been made by the American Hawaiian
Company no direct charges have been
forthcoming and Governor Carter has
therefore indited the following letter to
the company:
December p, 1904.
American Hawaiian Engineering &
Construction Company, Stangen-
valid Building, Honolulu.
Gentlemen: In your communication
of December eth, you call attention
to the statement that in the last year
you have bid S31 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. VIII
you. therefore, kindly state whether or
not you intend to claim fraud i'm con-
uectiOn with the insane asylum con-
tract, and thereby void it?
If last evenings "Star" is correct.
your attorney still Gisclaims any desire
to make charges of fraud; while in
your communication of December 18th
you submit statements that can have
no other Interpretation but that you
believe there is fraud.
In your letter of December 18th, 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 arbi-
| 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 DESTROYS of
| carrying it out. Under the law, the
| contract goes to the lowest bidder who
/ furnishes a satisfactory bond. You
were 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-
ton be brought to an issue, and until
you decline to proceed with the work,
l 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
/ eminent would hold your bondsmen.
! Upon my initiative, you agreed to
withdraw from the contract at my re-
! quest. Under the circumstances, l be-
gan an investigation, taking what APP
! peared to be a reasonable interpreta-
! tiOn of your statement of December I,
that you claimed there was fraud in
connection with the matter. In this
it seems, l was mistaken, and l then
/ agreed to arbitrate the question as to
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 to
go on with the work. AS the Super
intendent of Public Works can take no
action until the time for completing
the contract has expired, the taxpayers
await your convenience.
Very sincerely yours,
(Signed) C. r. CARTER,
Governor.
! p. S.-As the public has been led to
/ believe there is a sensation connected
| with this matter I think they should
! have the whole story, and as the tax
/ payers are interested, l propose to
/ make this letter public.