Every evening, Wilmington daily commercial., 1921-06-17
SAYS CITY HAS
NO CLAIM AGAINST
SANITARY COMPANY
City Solicitor Says There Was
Nothing Irregular by Com
pany in Stopping Work.
CAN'T BRING SUIT ON BOND

!
shich was destroyed by fire January
-, 1891. and the rights of the city
md tho Wilmington Sanitary Co. un-
aer the contract dated December 20,
1918. Mr. Huxley stated the only
possible claim which the city could
aave against the Sanitary Co. on ac-
,ount uf insurance would be about
81 500 for replacing a roof, TO Offset
which tho company left on the
promises building worth probably
So GOO or $4,000. He found nothing
irregular on the part OF the company
or anv of it's officers; it ceased oper-
ations 20 avoid bankruptcy. He said
suit could not be brought on the COM
pany's bond until the city had oper-
stcd the new cromatory for such time
as the extra cost of operation eN-
ccedcd the contract price to be paid
To the company up TO the amount OF
the bond. lie is still negotiating for
the paymcnt Of the bond snd Will
hrtng suit n settlement cannot be
secured. His communication follows;
TO the President and Members of
Ceunctl--Gcntlemen: | have carefully
gone into the question Of the matter
nf the city crematory. which was de-
stnoyea by fire January %. 1921. and
the rights OF the city and the VIII
mington Sanitary co. under the con-
tract dated December 20. 1915. So
car as I am able to ascertain from re-
liable sources I find the facts TO be as
follows:
Under said contract the Sanitary
90 had the option OF using said Gre
natory for erecting one of its own.
IL elected Go use the city's plant and
install therein apparatus and ma
ehincry costing in the neighborhood
81 yie0. 900. which was paid for and
owned by the Sanitary Co Said
company also erected at its own ex-
nense brick boiler house and an
otheT large brick building, which was
used Ms a dryer house. Under said
contract at the termination Of the
contract the city was TO have the
option Of purchasing said plant and
machinery at AN amount to be fixed
by FIVE rcferees. two 10 he appointed
~ the mayor. two by the Sanitary
90. and tho fifth hy said four referees.
- far as | can learn the only build
ing on said property al the time the
sanitary Co commenced operating
was small building valued at So
600 and this b~iiding was not de-
str,syed by Gre. the roof alone being
DESTROYED. Th,s building, under
stand was torn down when making
room for the erection 81 the present
inolnorating plant
wThc Sanitary Go. carried insurance
an the buildings. machinery and stock
a ali
the premiums thereon. ! understand
that settlement was made with the
insurance company for S4s.ooo.
After the flre the brick boiler house
was torn down and an other buildings
with the exception OF the dryer house,
which. as before stated. was built by
the sanitary CO. at a cost of about
Sc 0oo. This building is intact with
the exception of a roof. which is about
10 be replaced, and which building
has been rented by sylvester Healy
for $500 a year. II viii be seen from
these facts that the only possible
claim which tho city could have
against the Wilmington Sanitary Co.
"a account of said insurance would
probably be about 81 500 10 replace a
roof. 70 offset which the Sanitary Go.
has left on said premises a building
worth probably $4,000 or $1,000.
For some months prior to the time
when the Sanitary Co. ceased to oper-
ate II was costing said company in the
pcighborhood OF $500 per week TO op-
crate said plant, for which it was re
ceiving from the city s7e1.6s per month.
The Sa aiitary Co. was under a $4,000
bond TO the -Ciiy for the faithful per
a.. ..FF g~g I hax hnd
the question OF payment under this
bond up with the American Surety
Co. surety on said bond. with the view
If having same paid without bring
ing suit.
SO Tar as my investigation goes.
and I have made a very careful one,
/ can find absolutely nothing irreg-
ular on the part of the Sanitary Co.
OF any OF It's officers. II simply did
what any good business man would
do-that is. cease operations when it
saw bankruptcy staring it in the face
n It con tinued.
Prom my investigation, either
through negligence of the Board OF
Health. or on account OF inability TO
sseure insurance. there never has
been any insurance carried on the
city crematory by the city. Said Gre
matory was destroyed by fire on sew
erai occasions previous to January,
1921, and the same course was pur-
sued at the last fire as on previous
occasions. when the insurance was
paid TO the Sanitary Co.
In closing would say that suit
could NOT be brought on the bond until
lAe city had operated the crematory
Tor such time as the extra cost of
operation exceeded the contract price
10 be paid to the Sanitary Co. up to
the amount Of the boud.
"As already stated am stiil negoti-
atinE with the bonding company and
unless settlement can be secured will
hiring suit on said bond. In the mean
time ] have refused TO approve any
bonds for city officials or city con-
tracts where the American Surety Co.
is surety.
i viii keep your honorable body
advised of whatever steps / take ia
the matter. Very truly yours,
John W. Huxley, Jr.,
City Solicitor"
Council referred the communication
10 the committee of the whole