New-York tribune., 1905-01-11
CANAL AFFAIRS In TANGLE
DELAY rs INEFITABLE.
Bond Selling and Contract Letting
Impossible NozC-C Cunneca Blamed.
LBY TELEGRAPH TO TIE TRIBUNE !

LBY TELEGRAPH TO THE TRInuNEl
Albany. Jan 10-The sensational develop
ments regarding the constitutiOnaIty OF the
law authorizing the expenditure OF S101.OO0.-
600 on canal improvement and the certainty
that the question will be carried to the Court
OF Appeals for determination furnished the
main topic OF discussion at the Capitol to-day.
and was attended with distinct Developments
Goverssr Higgins talked about the matter
frankly. and IN discussing II revealed the fact
that the whole question must go to the AttOr-
ney General for decision. and pending that de-
cisioD 1t would be impossible for the Controller
to sell bonds or the superintendent OF Public
Works to let contracts. 1t is evident that the
fact that such legal issue was pending with
such eminent counsel arrayed against the meas
ure would materially affect the marketable value
Of the bonds TO extent that would make any
thing but policy of waiting unwise-
The form that the legal proceedings viii take
is one complicated beyond apparent solution. IL
is known that in the first place the counsel for
the anti-canal interests including Elihu Root
and various other lawyers will ask and obtain
from Attorney General Mayer a hearing. at
which they will explain their reasons for believ-
ing the law unconstitutional and he will be-
asked to give an opinion II his opinion sus-
tains the contention of ex-Secretary Root. then
he will probably seek some method Of carry
ing the matter to the Court OF Appeals. Just
how IS still matter of conjecture. for ne would
normally appear then both plaintiff and attOr-
ney for the defence-that is. for the cOnstitu-
tionaIfty of the law. But il he rules against the
anti-canaI contention, then those who are back
of the fight have the whole range Of the courts
open to them They may begin taxpayers
suit against the letting of the contracts or ths
selling OF the bonds. which would in effect. IL
not in form. amount 10 an injunction. Such a
S11ify vOT1Id mas nm Oh he
the Appellate Division and finally TO the Court
of Appeals. DuEing all this time the canal work
would. perforce. be suspended.
DELAY FRAUGHT WITH DANGER
Delay then is inevitable and fraught with ths
possibility of defeat for the canal measure. No
one pretends at the present moment even to es-
innate the amount of legal difficulty that
be caused if those arrayed against the measure
desire to fight to the end. The step is no sudden
one. on the contrary, it has been maturing for
q long time. Back of it are countless interests
not insignificant among which various
farmers oranges. Not until the time arrived
when definite action was certain II the canal
were to be delayed and the construction put off.
Il not finally defeated, did this movement coms
10 the surface, but now when the contracts ara
pending and the bids have actually been submit
ted and the Controller is busy with the plans
for bonds. the legal tight has been disclosed and
it's revelation has come with stunning effect to
the friends of the canal
Pat the difficulties III the path 07 the Canal
construction are by no means exhausted with IN
disposal of the question Of constitutionaIity
The tange over the different systems of bid, the
unit and the lump sum has been repeatedly told
in these dispatches. To-day it was learned on
unquestioned authority that there was a posi-
biIity of almost limitless litigation this score.
The relative merits Of the two forms Of bid
have been discussed and caused division in the
Canal Board Now comes the question OF deter
mining which is the lower. and no one seems
to be able to solve it. The lump sum bidder
agrees to do the work for fixed price. the unir
bidder for SO much a foot Of excavation, but
without absolute figures on the amount Of earth
to be excavated, a comparison OF bids with ref
erenCe 10 price is obviously impossible.
But this is only the beginning of the trouble.
The canal act. Chapter 147 Of the Laws OF 1908.
says nothing on the point of alternative forms OF
bids. but the canal law of the State does pro-
hibit such bids Now the Attorney General will
have TO decide whether or not the general canal
law applies in this case If it does. the bids al
ready submitted are clearly Illegal and must be
thrown out
HAVE SEEN EACH OTHERS HANDS"
But here a new complication arises. The bids
have been submitted and opened. They were
submitted in soOd faith by contractors from all
over the State and nation. and now each bidder
is in possession of the exact estimates or MS
competitors. To use a cOlIOquial phrase, they
have seen each others hands" To ask the8
to bid again would be to put them in a pecUliaS
position, and which might without much
question give them grounds for an action OF
damages against the State. Certainly It would
disgust the best class Of bidders
This complication is directly due to politics.
The provision authorizing the alternative bid
was put in at the express motion of ex-AttoTney
General Cunneen at the exact time when he was
talking '.FurnaceviIe iron contracts from the
stump To emphasize his position and apparent
IL to make political capital he hammered this
r,rovision through the canal bid, which simply
modified his desire by making the ALTERNATIVES
contract permissive. not obligatory, and now, as
a direct consequence, comes the present situn-
tion which must go to the Attorney General for
his determination.
There is no Disgusting the fact that all this
sf1its the anti-canal faction. Their jUbilatiOn is
uurlistaka BILE. and not a few of them believs
that they have found way to kill the canal.
II is moreover. certain that with the present
tangle as an excuse. they VIII attempt 70 pass
2 law repeating all the canal authorization act.
but on the other hand, with the arrival of the
Buffalo and New-YOTk legislators champions
of the canal. some plan of meeting the attack
will certainly be devised. At all events. IL seems
likely that the prediction made in The Tribune
on sunday that the present legislature would be
most occupied with canal questions will be
speedily vindicated-