Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1908-05-07

L b.
made and completed all the rebuild
ing repairs, additions, and enlarge
ments and betterments in this ord1-
nance hereinbefore specified, then
there Is hereby granted to the gran
tees, the right and privileges to main
tain said water works plant and to re-
pair and further add to and enlarge
and to operate tho same for the supply
OF water to the city of Ottumwa and
its Inhabitants and those residing III
the vicinity thereof, with water for
public and private purposes, during the
full period Of twenty-fve(25) years
from and after the adoption of the
ordinance by the electors of the city at
a legal election y "but section
~ of this ordinance contains this pro-
vision: In case the said grantees
without fault of their own in a reason-
aple prosecution of said improvements,
petterments and extensions or through
neglect or delay of material, men or of
sub-contractors shall be unable to
make all of said Improvements, bet
terments, extensions, within said per-
lod OF four years, then in such case
the franchise hereby granted and the
contract hereby made shall not fail;
put the said grantees shall not be
entitled to receive during time equal
TO such delay, after the expiration of
such period of four years, any hydrant
rental or moneys for the public use of
water and the retaining of such mon
eys by the said city shall be liqudated
damages for such delay on the part Of
the grantees
The last section, it will be noted
says in substance that the contract
that is, the franchise, shall not fail
by reason of the inability of the gran
tees to perform the work provided for
and make the improvements within
the time named but that the city shall
retain the water rentals as liquidated
and agreed gor damages occasioned
by such delay.
In my judgment this would give the
city the right of election at all events,
to pursue the remedy provided for In
section 20 instead of claiming for,
fixture. Section % provides for the
giving of $4,000 bond guaranteeing
the making Of the improvements with
In the time named, to-wit, four years
and sixty days as understand it.
About Damages.
Now just what would be the meas
ure of damages in an action to recover
on that bond if the city should elect
to bring suit, I am not prepared at
this time to state. Indeed I am not
prepared to state that the city at this
time would be entitled to recover any
damages
| understand though was not pres
ent at the council when it happened,
that the representatives of the Public
Water company claim that the fran
CHS has expired by reason of its fail
ure to comply with the terms of the
franchise in making Improvements. I
am quite certain that nobody, but the
city should claim a forfeiture for that
reason and if the city does not claim
it then it valves it.
Proposed to Act.
further understand that they have
proposed to finish the improvements
out of the water rentals if given time
In which to do so. If the bonding com.
pany would consent to this in my
Judgment it would be a good arrange.
ment to make under all of the cir
cumstances and taking into consider
alton the fact that there is no prob
ability of another company being or
ganized and that the operation of the
old company has been loosing prop,
osition almost from the commence
ment down to the present time 1t
would seem to me that if the bonding
company and the public water com
pany would agree to make such i'm,
provements that it would be good
plan to enter into that kind of an ar
rangement.
Touching the matter of the liability
OF the bonding company l have a letter
from the company who reinsured the
risk asking for detailed statement Of
the particulars in which it is claimed
that this company failed to complete
the plant as provided for in the fran
chise, which letter | have referred to
Mr.. Brady for detailed statement.