The Savannah morning news., 1904-03-10
COUNCIL To ALLOW
CASH DEPOSIT
IF MADE BY NOON TO-DAY.
VERY STRINGENT CONDITIONS ARE
IMPOSED IN MAKING NEW DEAL.

Twenty Per Cent. Is to BE Retained
by the City on All Payments I'm
ill the Building Is Complete.
Leonard's Requests for Certain
Concessions Were Not Agreed to.
If He Puts Up the 100000 by Noon
1t VIII BE Taken in Place of Sure
ty Company Bond.
II is up to Contractor S. S. Leonard
to place with the city a $4,000 cash
deposit by noon to-day in lieu of the
$50, 900 surety bond he was expected
to give, or else, under the terms of
the resolution passed just ten days
ago, the award of the contract to him
will be annulled.
At a secret session of Council yes
terday afternoon. lasting a little over
two hours, it was agreed that Mr..
Leonards offer of a $4,000 deposit
in place of the bond should be ac-
copied, though the acceptance is to
be on terms more stringent than the
old contract embodies. Certain con-
cessions which Leonard asked were
not agreed to and several features of
the affair are very complicated. In
taking the cash deposit in place of
the bond, the aldermen determined to
reserve 20 per cent. on every payment
made, instead of only is as the con-
tract agreed upon specifies.
What Mr.. Leonard wanted Council
to do was to allow him to put up the
$4,000 until he could give the $52, 900
bond and then withdraw the cash de-
post 1t was agreed to accept the
deposit in lieu of the bond, but the
withdrawal proposition was not decid-
ed. If the deposit is made, Council
can, if it sees fit, hold the money until
the building is complete, regardless of
whether the contractor is able to give
the bond originally decided upon.
Aldermen wouldn't Agree.
The contractor also wanted the city
to agree to allow him to assign his
contract to another party upon notice
of a specified time being given. This
was not agreed to. The point was
not decided either one way or the
other. 1t leaves the city, however, in
a position to decide as the officials
see fit, after the cash deposit is put
pp.
Mr.. Leonard already has on deposit
with the city $500. This amount was
Leonard submitted his bid without the
check. when it was found that his
was the lowest one offered, the alder
men allowed him time to put up the
deposit. This deposit can be forfeited
by the city in the event he fails to
make the $4,000 deposit by noon. This
deposit was required of all the bid
ders as a guarantee of their ability
and good faith to carry out the terms
of their respective bids.
All Done in Caucus.
The new City Hall and the bond
question was the all absorbing topic
at the City Exchange and on the
streets during the day. When it was
announced that Mayor Myers had call
ed a special meeting of Council to
consider a second proposition from Mr..
Leonard it was generally supposed that
the aldermen would hold a public meet
ing and take some action. 1t was
known, of course, that a caucus would
be held and the matter decided there,
as all matters of any Importance are
but 1t was thought a public meeting
would afterwards take place.
But no public meeting was held at
all. After being in secret session for
about an hour. Contractor Leonard and
his attorney, Col. r. l.. Colding, We're
called into the meeting. They spent
and the session was continued after
that for another half hour. And then
the meeting adjourned.
Were Not COmmu NEGATIVE.
The Mayor and some of the alder
men were not very communicative on
the subject. Nothing at all has been
decided" was generally the answer
from these officials to all questions.
The agreement given was reached,
however. The cash deposit will be al
lowed on the stringent conditions
named. 1t will have to be put up
without any assurance that 1t can be
withdrawn, and the contractor can re-
ceive only so per cent. of the cost in
labor and material that he has put
into the building, until the structure
is finished. Should the surety bond be
later secured and offered. the city can
still retain the $4,000, if the officials
see fit. In the event, however that
surety bond is later substituted the
20 per cent reserve clause will stand,
unless the aldermen make still an
other change in the conditions.
There is much speculation as to
whether Contractor Leonard will make
the deposit by noon to-day or not
Predictions are freely made both that
he will and that he will not.
1t was said during the day that a
representative of the New York con-
Germ that was the second lowest bid
der had left for Savannah, and there
secure the contract and give bond
ar~aa