South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-08-11
COUNTY COUNCIL
BOLTS ON ORDER
TO BUILD ROAD
Body Holds up Construction
of Erie Road as $4,000
Saving Looms.


County Council OF the proposal 20
20 ahead with the pavement or the
Erie trail from Kennedy school
northeast OF Affshawaka to the Elk
hart county line under the contract
made with tho Rieth-Reilly Con
struction Co. Of Goshen IN 1919, led
70 ne council deciding 70 take no
action at the present time. Just what
steps viii De taken IN the future
are unknown
The problem which the council
discussed during rs session Thurs
day morning was whether or not Il
should now declare the highway
public utility and eliminate obstacles
20 the sale OF bonds for the con
- struction work end the start OF the
p ctual construction. Thu fact YVES set
forth 10 the council that the high
way could be paved az the present
line ~ a saving or approximately
> - 900. below the contract price.
and the discussion revolved about
whsther or not this saving could be
enforced. Various legal entangle-
ments IN which the county had be-
come involved by reason OF previous
4 developments made IL finally seem
advisable 10 the council 20 take no
steps which would tend 20 involve
the country more deeply and the
council adjourned without making
any record OF discussion on the
proposition.
Would Save Part.
During the discussion or the pro-
blem n was brought out that the
contract Price for the road is APP
prOximstely $4,000 a mile. The Elk
hart and South Bend. IS said 20 have
been contracted for at the rate OF
about s23. 900 a mile. No information
was available as 20 whether speclfi-
cations FOR the Elkhart county job
were equal to the specifications for
the St. Joseph County contract. but
the opinion was unanimous that the
contract price was much too high
and that the contract should not
be started until 1t was finally de-
termined whether there was any re-
lief from the county facing a loss OF
$4,000 by living up 20 a contract
made under high postwar time
prices.
The original contract was made IN
1919 and called for s. 16-foot pave
msnt. At the time the contract was
/ made 81 was provided that work
= should commence on notice of sale of
y bonds. The state law at that time
provided that bonds should be sold
1T not less than par, and that they
should not bear interest at a rate
higher than percent The bonds
could not be sold under those condi-
tons, and the contract was necessar-
lily held up. In 1921 the special ses-
sion OF the legislature Overcame the
difficulty regarding the sale of the
bonds by increasing the interest rate
but he situation developed then that
the record was not clear inasmuCh
as che proposed highway had never
been declared a public utility by the
county council, thus leaving a cloud
on the validity Of TIE bonds and this
cloud has not yet been cleared up.
Between the time when the orig
fnal contract was made and the state
legislature increased the. interest
rate. the county and the contractor
agreed 10 a cancellation OF the CON
tract. but the state supervising
authorities held that the contract
could not be cancelled. With the
contract still In force. according to
the opinion OF state officials. the con-
tractors, RGth-ReIny Construction
Co. of Goshen recently offered 20 go
through with the contract. and in
view OF the decreased construction
costs offered 20 build an 1s-foot road
instead or a 16-foot road as the con-
tract originally provided and at the
contract price specified for the 16-
foot road
This compromise offer was con-
sidered. but Investigation tended 70
convince the officials that the county
would have 20 pay about $4,000
, more for the work than they could
set u done for under a new contract
and consequently there is the pres
snt tRngle which leaves the final
outcome or the controversy in doubt
Clearing OF the record by the
county council now declaring the
highway 8 public utility would have
the eject OF fully validating the
present contract and calling for the
Immediate carrying out OK It's pro-
visions. The council. in declining
10 take any such action. leaves the
way stu open 20 take other steps
toward getting the road built more
cheaply. either through securing a
further compromise with the con-
tractors. or through a possible find
ing that the contract IS invalid. and
the consequent readvertising for
new bids.