The daily sentinel., 1907-02-18
City Council in Adjourned Session Satur-
day Night Accepts Proposal to Build
the Mountain Water System for
$263, ,OOO--$3OO, 900 Bond
Issue Sold for Cash.
Mayor Bunting Declares Cash Must be in Bank
Before He Signs Bond-Aldermen Ex-
press Opinions Account
of Vastly Important Session.

l.. Gordon, of Denver, who expected
to take the bond issue If Mitchell
got the contract. objected to the
council giving any further atten-
ton to the Sethman bid, he declared
that Sethman had no right to ask
for more time and further delay, that
he had had the same show as all
other contractors bidding.
Mayor Bunting ruled that con-
sideration of the matter in question
was not out of order under the cir
cumstances as Mr.. Sethmans bid was
the lowest yet made.
Alderman Norris then called for
a report of the special water COM
mittee, stating that on adjournment
Wednesday night the council had re-
ferred the two bids to that committee
Committee Approves Mitchell Bid.
Chairman oBoyle then announced
that the water committee desired to
report favorably on the acceptance
of the proposal and bid made by
the Mitchell Engineering & Building
company by d. Mitchell. general
manager.
Alderman Lutes then moved that
the report of the water committee be
accepted. and this motion was second
ed by Alderman Norris.
A Full Discussion.
Chairman o'Boyle asked that if
there were any objections to the Nit
chell proposal the water committee
desired to hear them at this time
before the motion was put to n vote.
He declared that it was not for the
water committee to decide finally
whether the Mitchell bid was to be
accepted but that for the council it
self to decide. the water committee
to decide finally whether the Mitchell
bid was to be accepted but that it was
for the council itself to decide, the
water committee simply made the
recommendation and was willing to
abide by the decision of the council
Mayor Bunting also urged full
and free discussion OF the matter by
the aldermen.
Alderman Platt remarked that he
had no objection whatever to the ac-
ceptance of the water committees re-
port but would like to be enlightened
as TO the bonds, as to whether the
company expected to take the issue
at par.
Chairman O'Boyle Explains.
Chairman o'Boyle then made quite
n lengthy but still a timely and clear
explanation. He stated that the Nit
cbell company had put up $4,000
certified check as a guarantee that
they would accept the contract and
If thev failed to accept the contract
thew forfeited to the city of Grand
junction the sum of $1,000 repre-
sented by the check. The company
agreed to put up bond for a sum
eaualling twenty per cent of the
contract for the satisfactory fulfill
ment of the contract. The company
agreed to take the 100000 bond is
sue at par for cash. Immediately after
eiqning of the contract and the pre-
marathon OF the bonds the Mitchell
company is to place in escrow in To-
cal bank 100000 in cash to take the
first 500. 900 issue of the bonds, the
money, IN he placed to the credit OF
the city. the remainder, 100000
would be paid for the bonds in four
eaual payments of $4,000 each all
of this money to be placed in a pahk
to the oity's credit.
Ready to Put Up Cash.
Mr. o'Bovle stated that the bond
buving company desired to put up the
sooo 400 cash all at once and take
~ entire issue of the bonds at once
hrt that the water committee did not
mini, IT best. as the city would not
need all the money at once but that
a. could use the first 100000 just
as soon as the bonds are read, for
doliverv Mr.. o'Boyle further stated
maj the United States National Bank
Of Denver. stood behind the company
which will take the bonds
The City Is Secure.
.If the contractor fails to furnish
the bond required, fails to take the
s3oo 600 issue and fails to enter up
cn the contract the city win not lose
ANYTHING. We have a certified cheek
for $1,000 to be forfeited If the con
tract is not entered into by the com
CONTINUED on Second Page''