The Hawaiian gazette., 1916-11-03

Hlo BreakWater Controversy
Now Likely 10 Tie Up Big
Job indefinitely
6Mall spsslal . Ths Aaysrtl.erl

Cldaii Special 70 The Adveftiser)
HfIO, October More and mor'
complicated is becoming the situation
regarding the continuaice OF work on
the Hilo breakwater. Following tn,
vacation by Judge Ashford. of his or
der APPOINTING receiver for the prop
erty and money due from the govern
ment for work in September, another
attachment was fled ON the plant here
belonging to Contractor George E
Marshall.
Last Saturday Official notice was re-
ceived here by Judge G. r. Parsons,
attorney for the siAety company, and
by Mr.. Marshall, that the United
stetes government had annulled the
cortrast with Marshall and had noti-
tied the American Surety Company Of
New York TO proceed with the work.
REFUSED 70 Surrender
This morning an official notice was
served on Contractor Marshall TO turn
over, to the representatives of the
American Surety Company, Richard
Deming, all property needed for the
work on the breakwater, including the
tug and scows for conveying rock from
waipio quarry, This Mr.. Marshall re-
fused to do. ~
J.w. Russell, attorney for Marshall,
left for Honolulu today to confer with
Attorney +. c. Peters 10 take steps to
oppose the cancellation Of the contract
by the government. Mr.. Marshall
claims that the government has no
right TO first stop work on the contract
BY refusing to pay over the money
due for work done and then annul the
Contract on the ground that the work
was not continued.
Denies Government Authority
Regarding this present phase Of the
matter Mr.. Russell, before he left,
made the following statements,
- The next step which MR., Marshall
viii take viii be to prevent the order
af annulment Of the contract BY the
Trited States government from being
executed, upon the ground that the
United States was without authority
TO annul the contract, because Of the
fret that they committed q breach of
the contract themselves by their re.
frsel to pay for the September rock
delivered according TO their contract !,
which payment amounted TO over 500, 4
600, the refusal Of which payment be-
ing the sole cause Of MI Marshall be-
ing unable to continue with the work.
t'ID bther words, the government
esnnDt legally annuI the contract upon
the ground Of cessation Of work, be-
cause the government itself brought
about this. inability by their own ae-
tion and cannot avail themselves. un.
der the law, Of their own wrongful act
for the purpose Of annulling this con
tract. .'E
Wants Heavy Damages
ssIf despite any proceedings which
Mr.. Marshall might take 60 prevent
the annulment Of this contract, the
surety Company win be permitted TO
proceed with the work, then Mr.. Mar.
shall viii undoubtedly file an action
against the Surety Company for dam.
ages, which he claims win be in excess
Of 100000; and he can show that the
annulment of the contract by the gov
eminent was o direct result of the
work by the American Surety Com
pany to bring about this annulment by
the government. 49," p -
1.-THE suit which Mr.. Marshall has
already fled in the Fourth. Circuit
Court to recover on the 100000 bond
filed BY the Surety Company win hmir |
the damages only resulting from the
iniunctiOR proceedings, and that cause
will be proceeded with irrespective Of |
any action which Mr.. Marshall NAV
bring rs result Of the annulment Of |
the contract" &C.. 20. n
This slIit to recover on the bond was
fled in the Fourth Circuit Court last
week BY ". W., Russell for Mr.. Mar.
shall for damages due to the attach
mcnt first issued by Judge Ashford
and later vacated. /
Wants Equity Only |
When the question was asked
whether or not there was some way by |
which all this delay on the bTeakwater /
work could be obviated and the work
permitted to proceed. Mr.. Russell
explained that Mr.. Marshall was
fandy to step out and permit the
Z, mexican Surety Company to complete
the work on the contract if he could
recover even a percentage of the
money which he had invested in the
This sum, stated Mr.. Russell.
amounts to about $4,000, but that Mr..
MARSHALL viii be willing to step out
and gre up whichever profit there may
be y the breakwAter work, now that
the pioneer work Is done, for the sum
Of $4,000, or much less than half OF
the cash he has invested in the plant.
II this offer by Mr.. Marshall Is not
accepted he proposes to fight the an
nulment Of his contract TO the last and
t9 bring suit, as the ease may be, SO
that there Is an apparent possibility
n the breakwpter work being held up
for 2 long time TO come.
CT lfllnc lulNc nMI 4.