Perth Amboy evening news., 1915-05-27
PAVE WAY TO SIGN
PLANT CONTRACT
Action on Sale of Municipal
Bonds Confirmed by Board
of Aldermen Last Night.
READY TO START SHORTLY
Contractors and City Officials
are Looking Over Different
Forms of Contracts Today.
READY TO START SHORTLY

Following the confirmation Of the
action of Treasurer James A. Rhodes
on the sale of municipal light bonds
in the amount OF $150,000, by the
Board of Aldermen last night, the
signing OF the contract with the Wat
son-Flagg Engineering Company for
the erection of the light plant. 1t ap-
peared today, Is the last remaining
act TO be conspmmated before actual
, work Is begun on the much-delayed
proposition, which was carried at the
polls last fall.
Representatives of the contractors
are in the city today and together
with Mayor Ferd Garretson and City
Attorney Andrew ]. Wight are going
over the form of contracts to be sign
ed. BY resolution adopted at re-
cent meeting of the Board of Alder
men the mayor was empowered to
enter into the contracts with the
Watson-Flagg concern On behalf Of
the city. The contracts will likely
be executed in few days and work
started Immediately.
In detailed report Mr.. Rhodes
told Of having been to New York
yesterday and delivered the bonds
to A. B. Leach & Company and j. D.
Everitt & Company, joint bidders on
the issue. He reported that he had
received the s150,000 and opened
an account with the Orange Ma
|tional Bank to the credit Of the city
In that amount. He also received a
check for $1,165.50, representing
balance due on the premium, and 4
check for s1,022.62, representing
accrued interest. less $3.50, interest
on the concerns deposit check Of
IS, 900, which has been held by the
city since the submission of the
companies bids ON the bond issue.
The $4,000 deposit check, the bal
ance of the premium on the issue,
$1,16550, and the accrued interest
1,022.62, makes a grand total Of
s5,188.12 realized by the city from
the issue exclusive of the principal
sum of $15O,000. Just what inter
est money on the s150,000, which
was deposited at the Orange Nation
al Bank by agreement, and which
draws no interest for Perth Amboy,
the city will lose, will depend on how
fast the money will be drawn out on
contractors certificates. This will
depend on the rapidity with which
the work is done and whether any
injunction is issued against the con-
struction Of the plant, as has been
intimated might be probable. One
of the aldermen declared his belief
that $4,000 of the $3.50, 900 would
be drawn out on contractors certifi-
Gates within two months. By the
agreement of sale the bond COM
panies will receive any interest from
the money on deposit at the Orange
bank for a year from date, when any
balance will be turned over to the
city.
Accompanying the treasurer's re-
port was a certification from Cald
we'll, Masslich & Reed, New York
bond attorneys, certifying that the
bonds were valid and that all legal
requirements had been complied
with.
Also accompanying the treasurer
report was a letter signed by A. B.
Leach G Company agreeing to the
day night on the brokers' proposi-
tion that the money need not re-
main In the Orange National Bank
for a greater length of time than one
year from the date hereof" Several
of the aldermen stated prior to the
meeting last night that the transac-
ton in the sale of the light bonds
was Identical with that made in the
sale of the last $4,000 school bond
issue, when they declared the money
for the sale of same was deposited
In bank and controlled by the bond
companies until same was actually
Continued on page A.
Typewriters at Jensen's. State st.