The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-07-21
RESOLUTION
FOR BID ON
COAL VOID
City Attorneys Ruling De-
clares Illegal Boards Move
to Contract for Is, 900 Tons
of Fuel.
COAL COST IS HIGH

GUAL GUSl Is Hull
That It had no authority for the
action it took Monday in adopting a
resolution to advertise for bids for
an additional $4,000 tons of coal for
the municipal electric plant, and that
the resolution will have to be rescind-
ed is the legal opinion the board of
public works will receive from City
Attorney Robbins.
Mr.. Robbins bases his opinion on the
fact that no appropriation has been
provided for such purpose. Advertise
ments for coal bids were published
Tuesday and, it is understood, the
board members probably will have to
Lets Contract
The same day the board adopted
the resolution calling for bids for an
additional $4,000 tons Of coal for the
municipal plant, last Monday, con-
tract for the same amount of coal,
Kentucky run of mine, nut and slack,
was let on bid Of $500 per ton, f. O..
b. mines, for delivery during a period
OF one year. The advertisement for
bids which appeared Tuesday called
for delivery within a period of six
months.
In discussing the proposal of the
board Of public works to contract for
$4,000 tons Of coal City Attorney Rob-
bins called attention to the fact if all
this coal was actually delivered to the
city, which the board does not an
ticipate, the cost involved, at the rate
OF $7.95 per ton, which includes a
freight charge Of $1.95, would total
$397,500.
Impossible Appropriation.
An appropriation Of such an amount
would be impossible. Enjoying its
most prosperous year in 1919 the mu-
nicipal plants gross receipts for that
year amounted to approximately $275,-
600, which is $122,5OO less than the
anticipated cost of coal the board pro-
posed to contract for for deliveries
within one year and within six months,
respectively.
Board members explain that they
proposed to secure two contracts for
coal, each for $4,000 tons, with the
expectation that neither contractor
would be able to supply the maximum
amount his contract called for, that in
the event one contractor was unable to
make deliveries the city would have
measure of protection under the sec
Snd contract.
The city attorney, however, held
the opinion that in assuming that only
partial deliveries would be made un-
der each contract the board was TAX
ing too much for granted, and that in
the event full deliveries were made
under ca ch contract the city would be
unable to foot the bills.
More Coal Than Needed
In proposing to contract for $4,000
tons there would have been 10000
more tons provided than the annual
coal consumption Of the plant.
Board members, the city attorney
and James E. Dillon, superintendent
of the municipal plant, also conferred
Wednesday over "a report that last
March a local coal dealer had offered
to enter into a contract to supply the
municipal plant with 10000 tons of
West Virginia nut and slack at $3.50
per ton, T. o. b. mines, and that his
offer had been rejected
Deny Proposal
Mer-oers of the board emphatically
der Il that they had any knowledge
of such a proposal. Supt. Dillon
stated that no direct contract proposal
at the figure stated was made to him
at the time mentioned.
He said that one local dealer asked
him last March whether the city in
tended to enter into a contract for
plant coal and, Dillon added, his cor
respondence shows that the dealer
was Informed that owing to the coal
shortage the city had been purchasing
it's coal on the open market, at prices
under the market, and that no con-
tract was contemplated owing to the
fact that 1t was then believed there
was to be a reduction of prices in the
near future.
The plant superintendent further
stated that the dealer was asked if he
desired to submit bid to the city
for contract, and the dealer declined
to do so.
'If the city was offered West Vir-
ginia coal last March at $3.50, which is
better than the Kentucky coal we
were buying at the time at the average
price of $5.57, and the offer was re-
jected, there is no question but that
whoever was responsible for such
action is open to censure." City At
torney Robbins said.
THE fact remains, however, that
the name of the dealer who is said
to have made such an offer Is being
withheld. If the facts in the case
are true, the identity Of this dealer
should be made public"
Bodies of $50 Veterans