Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-04-19

county projects.
The transaction was kept secret, ac-
eording to Charles Zeigler, a member Of
the commission, who lives here and who
urged that it be made, at the request of
Jesse Z. Eschbach. chief examiner Of the
State board Of accounts. Mr.. Eschbach,
according to Mr.. Ziegler, agreed to ap-
prove the transaction Just this one tins"
on condition that it be kept secret so that
every other county in the State would not
request the same kind of assistance on Its
public works. Examiners of the board
Of accounts are now looking into the mat
ter with a view of making a report with
in a short time.
WARREN COUNTY
REFUSES TO COOPERATE.
The Fountain County commissioners,
on petition of a number of citizens of
Attica and of other parts of the county,
decided to build the Wabash bridge. Ths
bridge connects Fountain and Warren
Counties, but Warren County refused TO
cooperate.
Following this decision bonds bearing
an interest rate OF per cent were issued
TO cover the cost of constructing the
bridge. which was placed at S212.04O.Sl
An attempt was made to sell the bonds
at both Chicago and Indianapolis with
out success. Finally, however, the Meyer
Kiser bank Of indianapolis agreed TO
buy the bonds If the county would agree
TO pay a bonus Of S22.5O0.
At this pont the highway commission
came into the deal Mr.. Zeigler, accord
ing to his own statement. placed the
matter before the commission and asked
that Il assist to the extent Of paying
this premium. 1t was finally agreed that
the commission should pay Sl9,10S and
that the contractors, Standish & Allen
Of Chicago, bear the remainder.
MONEY FOR BONUS
BORROWED FROM BANKS.
The bonus was to be paid by thu con
tractors IN its entirety and the highway
commission was then TO reimburse the
contractors in the amount agreed upon.
The money with which to pay the bonus
was borrowed by the contractors from
three Fountain County banks, the Farm
ers ana Merchautst-State Bank lee-Attica,
the Central National Bank Of Attica and
the Citizens Bank Of Covington. No in
terest on the loans was charged by any
Of the banks. Mr.. Zeiglcr. the moving
factor in the transaction, is president OF
the Farmers and Merchants Bank.
The contractors then proceeded to ship
material TO the bridge site. engineers OF
I
and the bills were sent to Indianapolis,
where they were paid by Mr.. Wright,
until they reached the total agreed upon.
This money was then turned over to the
banks in payment of the loan.
/ SIGNED
CONTRACT.
/ The contract which was entered into
by the contractors and the highway com
mission is dated June 13, 1920, and reads
! as follows:
/ ..Tbe Indiana State highway commis-
sion hereby agrees to pay to Standish x
/ Allan S101O9 upon presentation of bills
/ for material bought by them and used In
/ the construction of the bridge across the
Wabash River at Attica. Ind, said bills
I to be approved by Standish Allan and
/ 0. KID by tho State inspector IN charge.
This contract is entered into with the
understanding between Standish and AL
! Ian and the State highway commission
| that the contract entered into between
/ the county commissioners Of Fountain
/ County and Standard and Allan, con-
tractors, is to be completed according to
/ contract and to time and specifications
! of contract
/ "(Signed) L. H Wright. Director.
"Standish and Allan. $. S. Standish,
/ v. F. Allan"
TRANSFER INTEREST IN
/ CONTRACT TO BANKS.
| Eve hereby transfer and assign all
right. title and interest in above con
/ tract to the Farmers and Merchants
| state Bank of Attica. Ind, to the Cen
| trail National Bank Of Attica, Ind, and
/ to the Citizens Bank of Covington, Ind.
! "Sicned. Standish and Allan. S. y.
| Standish, W. f. Allan"
! The minutes of the highway depart
ment show that this contract was ap-
/ proved July Is. 4
! This entry follows:
.AIoved by Mr.. Zeigler, seconded by Mr..
/ Crawford, that the contract with
/ Standish and Allan, Chicago, H., for
/ SO. los for material to go into the Attica
/ bridge be approved. Motion carried"
In this way the State highway commits
/ sion. without warrant in law, made a
I present to Fountain County Of the sum
/ of S19 los and kept it secret so that other
counties would not receive the same kind
of gift.
WRIGHT AND ZEIGLER'S
ATTEMPT TO JUSTIFY.
In Justification for this action, both Mr..
Wright and Mr.. Zeigler point out that
the bridge is on a State highway and as
such is 4 part Of the State road system.
They take the attitude that the county is
making a gift to the State Of the price
Of the bridge less the amount paid by the
State.
In justification of the county's action
in going ahead and constructing the
bridge irstead of waiting for the State
to do it, Mir. Ziegler declared that there
was a serious necessity for a bridge i'm
mediately and if those back of the project
had waited for the State 20 act the bridge
probably would not have been built at
Attica, but further down the river.
This transaction, whereby the State
aided in a purely county project, wGs not
reported by the State board of accounts
I'm its report two months ago, in which
it charged the highway department with
gross extravaga gance. 1t IS not reported
despite the fact that the transaction took
place more than six months previously
and during the year for which the report
10 bo