Evening journal., 1908-10-05
TOWNSEND BALKS
AT ARBITRATION
Solicitor Tells Water Board
They Should Settle Finch
Claim in Other Way
THINKS CITY WOULD LOSE


At the meeting Of the Water Commits.
sioners this morning city solicitor Town
send submitted form Of arbitration
agreement IN the case Of the claim oil
jeremiah II Finch for about Sis.oo for
extras on the construction OF the Porter
reservoir although for various reasons
he thought that arbitration would not vel
to the citys advantage. The matter was
postponed until the next regular meeting
OF the commissioners.
Following is Mr.. Tovnsends letter on
the subject:
September % .9ts.
Board Of Water Commissioners. ci.y.
Gentlemen.--I enclose herewith 3urncaie
copies Of the proposed arbitration agree
ment for the settlement Of the claim OF
jeremiah r. Finch for extra services al
! legged to have been performed and extra
materials alleged 10 have been furnished
by him In and about the construction Of
the thirty-hve million gallon sedimenta.
tion reservoir belonging TO the city.
] am sending this form Of agreement be-
cause directed 70 do So and not hecaus;
7 approve ~ raitrs,i rprqc sdhiss since
seeing q copy OF the signed contract.
IN all my previous conferences with the
Board on this subject matter. Z hav,
relied on the terms OF a certain ptintel
form Of contract given me by the chic.
engineer. but when l came to make up The
enclosed form Of arbitration agreement. |
found that the signed contract was not
on one OF the printed forms but was a
| typewriter contract prepared over three
years ago.
There are material differences IN the
terms Of the printed form OF contract
(Which was not signed and the typewrls.
ten contract which was the actual con.
tract. These differences are so material
that I do not think this case should be
submitted to arbitration FOR two reasons;
One IS. that there are various legal prop
osiions which the arbitrators could net
determine. another is that By the solcc-
tlon Of three arbitrators-one by tho city
one hy the contractor and the third bv
the two arbitrators so seleoted--ivo Of
whom would be non-residents AMI have
no interest in the welfare of the cit, d.
the responsibility for any unreas ,neh'o
award would be taken on the shoulders
Of myself, the Board Of Water Cemmis-
sioners or the resident arbitrator The
character of the nonresident arbi'rafc. "a
might be a geat isk the city 7ould to
taking.
BY the terms of the signed contract ex-
press provision was made that the irrrd
could cause the use Of a.erials ar tho
performance Of labor cot conte apl1ted
in the pains and drawings Tor inn led IN
the specifications as extra cork aq1 that
the contractor should accept O. 'refore
such compensation as should be agreed
upon previous 10 the commencement Of
such extra work or the furnishing OF
such extra materials. another clause pro-
vides that all final estimates of the chief
engineer should he hnal and conclusive.
Further than this. in a conversation had
with Mr. Finch after the meeting Of the
Board on the Twenty-frst instant he gave
me 10 understand that this case could be
settled at approximately eight thousand
dollars 7 have no doubt whatever. but
J that YOU can settle IL with him for con-
siderably less if you make the effort and
since a majority Of the board has agreed
TO paw FIVE thousand dollars. 1t seems 10
me. that the submission 70 arbitration.
/ considering the terms OF the contract is
rather dangerous FOR the city
DO not understand that I am recon-
/ mending any settlement whatever-for
am not. That is entirely a matter for the
Board.
have no doubt however. but that the
Board can take this case up directly 9Th
Mr. Finch and settle with him az from
hve thousand 10 eight thousand dollars If
the members feel that he IS entitled 70
such a figure. or II they fear that arbitra-
ton might secure him ag reatef amount.
! hsve no thought that he would secure
eight thousand dollars BY an action az
Law. but believe that by arbitration pro-
ceedings he would get more than that
amount.
Yours very truly.
s. D. Townsend Jr.