The San Francisco call., 1908-05-24
union NATIONAL IS
SUEDFORS162,7O(
BurreIl Construction Company
Charges Altered Contracts
and Mismanagement
Action Grows Out of Sublet Cow
ernment Contract Financed
by Bank

OAKLAND, May 23.--Suit for $780,
zoo damages has been fled in the su-
perior court by A. w. Burrell of the
Burreu construction company against
the Union national bank. Warren B.
English and Charles i. Haney. The
suit grew out of contracts let by the
United States government, through
acting Quartermaster Charles c. wal
cutt Jr., for the construction of "a
buildings at Whipple barracks, Pres
colt. Ariz., in August, 1906.
English secured the contracts and
subIet them to Burrell for $24O, 1914
English was acting as a special agent
for the Union national bank, and he
arranged with Burrel for the bank 70
finance the undertaking.
In January. 1907, when j. Dalzell
Brown became connected with the
bank, English terminated his relations
with the institution and Charles F.
Haney succeeded him.
With Haney's assumption of the
duties of special agent trouble began
for the Burrell company, according TO
the complaint. Haney. acting in col
lusion with Walcutt," according TO the
complaint, altered contracts, handled
financial matters in his own way and
usurped prerogatives," for which the
Burreu people contended in vain as
their own. it is charged. His alleged
mismanagement of affairs included the
purchase and delivery of material at
times when il could not be used. over
payment Of sUbcontractors. diversion OF
funds secured from the bank on prom
issory notes given by Burrell, altera-
tions OF contracts which caused heavy
losses. and unwarranted interference
with the actual work of construction.
Eleven counts are made against the
bank and Haney as its special agent.
The amounts demanded and the specific
charges are S2O,000 for losses result
ing from interference with the pur-
chase OF material by Burrell: $4,000
for alleged cOllusion with Walcutt, re-
sulting in unreasonable exactions and
notifications of plans; $1,000 for in
terest on cash advanced by the bank at
q time when il was not required; $4,000
for loss to material ordered by Haney
and arriving before it could be used
$1,000 charged as misappropriated by
Hsney when he negotiated Burrells S
notes: SIS, 900 for alleged overpayment
TO a subcontractor for steel ceilings;
$500 alleged overpaid TO granite
quarry man; s25.000 for the retention OF
an alleged incompetent superintendent
$4,000 for the discharge of an assist
ant whom Burrel ranked as valuable
and capable man; 100000 for the al
legged changing of the specifications
from sandstone brick TO granite
blocks after the brick machinery had
been installed. and after $4,000 bricks
had been made, and $4,000 for the al
legged sale OF the machinery and the
bricks TO another firm by Haney.
English was absolved from blame
by a paragraph in the complaint stat
ing that he had acted in good faith.
The suit makes him a nominal defend
ant OF the total amount Haney ad-
vanced but s1S.726 toward defraying
the cost Of the work, so the complaint
recites-
The complaint was drawn by Attor-
ney E. G. Ryker, who said he had only
resorted TO the action when months
Of effort TO settle had failed
The bank officials made light of the
suit Cashier Jordan said: ''Occa-
sionally people try to get something
for nothing Mr.. Burreh appears to
be making 8 great effort in that df-
rectaon- We do not care to discuss
the matter further at present"