Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1911-05-02
MAYOR ELDER TELLS
why CONTRACT FOR
SEWER IS ENDED
BY COUNCIL
City Was Not Secured for
Credit Extended on Mater.
ials and Therefore But One
Alternative Was Left.
ACTUAL WORK STOPPED
BY CONTRACTOR FRIDAY


In lengthy statement Mayor John
WEldcl today gave out the facts in
the present status ot the sewer con
struction declaring that Il was nece-.
salN 80 suspend the present contract
with Glass aud Fischer In order Go
protcct the city from further loss ln
the building of the new sewer So.
tenn because II was found that The
bond provided by the contractors all
not cover the advances made by the
city on materials furnished tor the
work
These materials according Ia tho
statement given 10 the mayor by the
council members, were. bought bN the
city In order tn save on the freight
and were then billed by the city To
the contractors, but the bonding
| COMPANY II was found were not re-.
sponsiblc Tor this transaction and -
have continued the practice woull
have r"sdttd IN doing 50 without
any adequate security. the CONTRACT.
ing hsm already owing balance.
The city will continue the work on
The sewer so far as it, funds for TIA.
purpose viii permit
The statement made hy he mayor
Is as follows.
soon after entering upon the office
of mayor I sent an official commuui-
vg tiou To- the sewer committee re
quosting certain Information regard.
I lug IN sewer. There was delay OF
/ a little over q month b.fo.e nu official
rcply was received as 10 was ne
cossary fnr the committee to have
I statements compiled iu various offices
aud this took timc TWO questions
asked were What percentage of the
contract was completed on December
! 2Nth. l9l0'' ana 'Want percentage
! of the contract price WAS paid to
I contractor On Dcccmbtr 2Sth. 1902
rho reply to thr FIRST question vas.
G,.1 pc cent The reply Co the
second question was This I viii
answer a. soon MS | gct the data rrom
| tho hnokkecprr The reply from The
sewer commute was satisfactory up-
/ On thc questions on subjects within
\ the province of this committee.
| meanwhi- had learned that tho
4 amount which M, contractors owed
/ the riN Tor material furnished WAS
/ boz oNcoss of th, amount the cts Was
! holding back on tho monthly pny-
/ menis. tast i~ that tho city WAS boo th,
position of creditor tu M, .pntrartor
| instead pf in IT, r.opcr place of dcb-
/ tor Upon the receipt uf fh, reply
/ from the sewer committee th, iufir-
nation regarding thr tuHlrul status
/ was then sought from th" finance,
/ committee, Nj John lee Cmrl,
! VAS mad, chairman "r 'n. unnur.
committee iu january nud b, ut once
| set tn work To- -'cnr, a., services pf
Hn auditur lupn m, appointment
It the auditor Nj clarke dstpilcd
him In audit the sewer accounts The
auditor did not tak, ,hc account. eel.
kept hN any pf M, committee but
took th' original entries and mad,
his own set of books Coins back
to the contract hptWrol elias. A
Fischer and tho city IL WIS found that
tn' contract was not fpr a specified
amount oi work ~ q specified cost
but Nas 4 contract To de- ia, WORK al
q specified price per foot fur tu,
various classes of work. and that th,
amount contemplated would approx
innate S2,n,00o. IN. rat. for 'ayins
the pip" varied with m, size. kind
depth of excavation. etc
The contract was elastic ia thai
The engineering department would
decide a. work progressed what aut
how much lin" Wuuii DO. suilt. 80 that
the contract Was simply, that IN,
contractors would ircriN, $40 much
per foot FOR tho ~urK decided upnr
bN th. engineers They were 10 h,
paid each month fpr the work done
- pc c"It of Ga" estimate bcinl
rusrrNcd as a guarantee fund. Thi
fund To- bo paid the contractors upor
thc satisfactory completion of tn,
work 81 To- hc given the bonding com
pany should 10 he called upnu I,
complete the work
The faithful performance 81 mi
contract was covered by "A bond fn
$4,000" issued by the United state
Fidelity ana Guaranty company %
baltimore and issued through H. lu
cal agent. Mr. McCGnna Al th
same time "A second contract WAS en-
tered into between the city and lilas
Fischer by which, To- secure the %
per cent discount allowed by the IN
tcrstntc commerce commission Ol
freight on material owned ny ihr cts
: the city was to buy the material
n pay the freight aud sell II To IN
contractors AT the Invoice price am
charge thc contractor full rate %
freight The contractors were 90 pa
interest at the rate of . per cent pc
annun on these hills for material un
til paid. bui nothing WAS containe,
=, In the contract specifying when @
. how these bins should bo paid Thl
contract was never shown tn the BON
d company and there ~ no reforenc
:, whatever Ia II I'm The nond. Thos
" having the work In charge for ia
! city Ncfr under tho impression tina
+ any extension of credit To the con
; tractors was covered hN the bon,
and that the bond company was lia
bic for any bill which the contract
ors might not So" ~ tu pay. In fa,