Evening journal., 1905-03-10
OLD CONTRACT T;RESCINDED,
NEW ONE SUBSTITUTED
DELAWARE WATER IMPROVEMENT COMPANY
NOW HAS THE POWER TO ISSUE
STOCK
READING CONTRACTORS TO BUILD
snoclal tn rhe Evenlng LJournaL

,nr The original contract Of rho Dsla-
ware water Improvement Company was
rescinded and a new contract was ae-
cented by council on behalf Of tho city,
whereby the water company is empow-
cred to issue and dispose of It's stock
at will.
In tbe absence ,of Presidenr Reynolds
Ar Ienason was made prsHdcat pro
tenn ana Me- Duny clerk. with power TO
act Alexander b. Cooper was also pres
emit al the nesting After the body had
boen called TO order Mr.. Jemison stated
the object OF the meeting and asked
Mr.. Cooper for his opinion regarding the
aaontion OF a new contract as asked for
nv the Delaware Water Improvement
Company TO take the place Of the one
originally adopted.
Contract is Valid.
In response Mr.. Cooper read the follow
ing opinion which he had prepared
"Gentlemen: 1 haNe examined the new
contract which It Is proposed shall be en-
tered into between the Mayor and city
Council. Of New Castle and The Della
ware water Improvement Company in
relation to supplying the city with water
and electric lights. when properly exc
cuted It will, IN my opinion be valid
and legal contract between the parties IN
so far as they each have the power to so
contract This new contract entirely re-
solnds and makes void all previous con-
tracts and substitutes a new one IN their
place. Under the old contract there is
provision requiring security TO be given
by the water company foU its perform
ance Of the contract for the period Of
twenty-five years. the fun limit Of the
contract Under the new contract secur-
ity is only required for the erection. COM
pletion and putting into operation Of the
said water works and electric light
plant. provided for therein. The provision
In the old contract that the management
and control of the company should be
kept in its present hands and not sell or
otherwise dispose OF its privileges and
franchise TO any other person or per-
sons IN any way Is stricken out In order
TO permit Il presumed the present con-
tomplated change and new management.
II the City Council is satisfied with
these changes and also satisfied with the
integrity Of the new parties who are to
take control ol the water company. ]
see no reason IN law why It should not
enter into the substituted contract with
the now bond of suretyship. These are
matters Of which you are the Judges. Il
is only my duty 10 advise you as to the
law as I conceive Il TO be- I cannot, Of
course. say that no litigation will groW
out Of this general subject matter but
viewing Il IN the light IN which Il now
presents itself / can not see that the city
Of New Castle can be seriously involved
as It has only granted powers in so far as
Il was able to do SO. All risks of this
kind df any must be assumed by The
Delaware Water Improvement Company.
] herewith return an the papers which
were handed 20 me by you. Yours truly,
Alexander B. Cooper, City solicitor"
Resolution Adopted
Upon the strength OF this opinion city
Council felt justified In taking action on
the subject of now contract and the
following resolution was offered and
passed
Resolved. That the Mayor and Council
OF New Castle are hereby authorized TO
make. execute and deliver n contract
with The Delaware Water Improvement
Company for the supplying of water and
electric lights for the City Of New Castle.
a copy OF which had been read and APP
proved"
Copies OF the new contract were hand
ed TO members OF Council by W. H. Coop
er. Jr.. counsel OF the Water Company
and compared 10y them with the contract
as adopted and as read by him. At the
request OF Mr. Cooper the resolution and
contract were ordered spread upon the
minutes.
May Now Sell Stock
The only change in the new contract
from the old one and n is an important
one at that. As the clause permitting Tn,
Delaware Water Improvement Company
70 issue and place upon the market its
stock. Under the original contract thi.
action was not pennissable In explaining
why this was asked Tor Mr.. Cooper, Jr.
stated that u was hardly TO be expected
that the incorporators of the compan,
would be able 10 erect and MAINTAIN
water and electric light plant upon theh
own capital and that therefore an issu
ance Of stock would be necessary. Thl
company however. under the new con
tract would be compelled TO operate un
der its corporate name although a ney
set OF officers might possibly be electe,
by the stock holders.
Reading Contractors to Build.
The contract for erecting the ney
plants has been awarded TO II. f. Ahrei
and Brothers, general contractors. o
Reading, Pa. ana work viii begin abou
April l. Material for the work has alread
been ordered and will be shipped here a
soon as a site Tor the plants has been Sc
lected. lnasmuch as the original con
tract has been rescinded the bond of III
American Surety Company for 5000 be
comes void. but Mr.. Cooper stated tina
the water company would again offer sh
Surety Company as bondsman under th
new contract
To Meet Old Company.
In relation 10 the old water compan,
Mr.. Smith asked the city solicitor win
action in his opinion. should be taken 4
council in regard TO the old water CON
pany continuing its service temporaril,
Mr. Cooper replied that undonhteai
some arrangements should be made wi,
the New Castle Water Works Comma /
regarding the matter ana ar NJ era,,n
suggestion the chair appointed a con
mittee composed Of Messrs. smith. rs
lagher and Duny TO join Mr.. cooner h.
conference with the old company in !.
lation to water at an early date A,
Jemison. as president pro tenn Of 90,
eli viii also be a member OF the con,pl
tee
Always. .Remsmber the Fun Mar