The evening world. [volume] (New York, N.Y.) 1887-1931, 1908-12-08
Col. Mentally Charges At
tempted Freeze-Out Game
Backed by Politicians.
WATER SUPPLY PL M
CatSkill Contract His Firm
Holds Promises Big Profits,
and Others Want II.

The chief topic OF discussion In local
political circles to-day was the prac-
teal stoppage of work on the big
ssooo'"n contract IN TIE Catskill water
sired That a veritable hornets nest
has been stirred up was made clear bv
the declaration OF Arnold l.. Davis
counsel FOR the Thomas McNally Com
pany. which has the contract. to the
erect that the present difficulty is "a
case or freeze-out, so far as Col Nc
Nally is concerned, but that he has no
intention of being frozen out"
Less than one hundred and fifty men
were at work to-day on that part OF
the big project from Hunters Brook
to Foundry Rock Valley. where hereto
fore 100 men have been employed.
There is no telling now tong even this
reduced force VIII be retained. Notice
has been served by the Board OF Water
Supply on the sure,ies of the contractor
Thomas McNaliy, that they may be
called upon to carry out the contract
Hint Of Politics.
There Is more than vague intlmatton
that powerful political Influences are
working 10 GUST Cot McNally. so tina,
the contract may fall into the lap of
one OF the big local contracting firms
with strong political back!gn.
To the surprise of all concerned ex.
cept perhaps Col. McNslly, It has tcen
found that his contract is the hes, good
thing that has been handed out in a
long time. In spite OF the fact that he
was the lowest bidder, at sil26ic3, II is
estimated that there would remain a
clear profit of from $780, 900 to 81, $50, go.
In addition to this, q new contractor
would have the benefit OF a 500, 600 plant
which Col. McNslly has established.
The elimination of troubles which
have been brewing for six months came
yesterday when attachments We're filed
against the Thomas McNally Co,npany
with the Comptroller. They are for rel
suvely small amounts, but they serve
70 hold up check for 81, 600 which was
soout to be turned over to the company
ns me city. The Morrisdale Coal Com
pdny mas the claims-one for Sl,5i5 for
roar delivered In October and Noyem-
per and the other for 81. 225 on note
oated Nov ! and payable Dec. l. The
,h sacn nm We're granted on the ground
that the company Is a foreign corpora
!ipn and were served on the Comptroller
70 attach any money due the company.
To Force Mentally Out.
THIS serious situation is the result OF
internal dissensions in tho Thomas
MieNaily COMPANY, which recall the
snuati9n when John B. Mcdonald had
nhished the subway and was told that
MS services were no longer needed Col
McNally. In this case, is the digger, the
man actually in charge Of the work
NFtsl Ia .lsI
70 withdraw from the concern or be
Forced out, neither Of which he appears
70 r rase , sny Intention hnao Of pemtns
Nally was unable to collect sl2j 900 due
from other contracts which lie had de-
pended upon as part OF his working
capital, said Mr.; Davis. This difficulty
was intensified by a provision of the
contract according to which payment
f1r certain excavating is withheld until
the work is completed"
col M BECAME necessary last April for
at his disposal. and he entered into n
contract with William F.. Paine. Of the
nance the aqueduct contract. Under this
agreement the Georgia Florida Com
pany, agreed to advance $20C,Oo0, for
WHICH II was to receive one half the
profits from the contract. 1t was also
provided. among many other things,
lhat all OF the stock, OF the McNaily
Company was TO be deposited in escro
as security for the payment OF the ad-
vances.
Mentally viii Fight.
THE strange thing about the situa-
tion ~ that while Thu trouble was at
rs height ScN eral offers We're made by
other contractors To carry on the
NprH. one Of the greatest estntes in
triS country was ready to close n
by which il agreed TO give the com
p2ry clear profit of 5000. 900. That
was entirely satisfactory to Col. Nc
NallY, but at the last minute the ne
Eotiations We're upset hy Mr.. Paine"