Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1924-12-28
Continued from Page One,

Continued from Page One,
this matter and that this office be adj
vised by wire If additional funds will
be furnished.
on receipt Of notification that the
funds had been exhausted NJ. O'Brien
wired to Major Browne at Galveston
that local interests would meet the
obligation placed upCn them above that
which they mplatcd," but at this
time he had no idea that the money
wosld Be demanded Immediately, he
said. IN the mean time Assistant En-
eineer Henderson arrived and ordered
4 lecheck Of the number Of yards of eX-
cavation Yet to b made. Mr.. O'Brien
was furnished with the result of this on
December IS just before the cold
weather arrived. December %. while
still in bed. he wired to Major Schley,
wlru is in charge of the district. stating
that ''upon receipt Of advice from YOU
that time would be granted we would
arain begin an %activev drive for the nc-
rosary funds and help Individually to
the best of our ability" Late in the
afternoon Of December 20 Major Schl"y
wired to Mr.. O'B1icn that "inner har-
bCr portion Of contract will be terminat-
ed at 6 p. m. today if the funds are not
actually available by that time for the
payments to tho contractor by this Of
fiCc."
II was completely Jared on receipt
Of the information that the funds the
Valley supplied had become exhausted.
and that the contractor had gone $1,000
aid more beyond the amount" Mr..
O'Britn said. NO previous inkling
had been given u that the fund was
not sufficient TO cover the cost Of
dredging the inner channel"
Close Check Not Kept
Major Schlcy pas also been in COM
munication with John Gregg. president
rr the Merchants National Bank. in re-
ference to the hating Of work on the
inner channel. IN a letter 10 Mr.. Gregg.
dated December %. II. says:
unfortunately a very close check
was not kept by this office OF the rate
At which the funds available for dredg-
iur the inner channel were being
spent 50 that they were exhausted when
the matter first came to our atton-
tion about the 9th of December"
Afr outlining exchanges with Mr..
O'Brien and The trip to Brownsville Of
<Mr. Henderson of the engineers office,
Major Schley said:
Meantime, the contractor having
continued mt work. there + now duC
him about $1,000. and no funds avail
able to pay him. ! find the situation
extremely embarrassing since the CON
tract is between the United States and
Mr.. Jacobson and he naturally looks
TO this office Tor payment in spite Of
the fact that under the law funds are
10 be provided by local interests. As a
matter of fact. work should have been
stopped by this office when funds we're
exhausted. as required by law.
Under the circumstances. being un-
able To permit further Indebtedness 10
be incurred. there was no course open
to me except 10 notify the contractor
that funds were exhausted and that
part of the contract which related to
dredging the inner channel is termin-
ated. Nor would i nave been fair to
the contractor to expect him % con
tinuo work without funds to pay him
not to lay up his plant pending the
receipt Of funds.
Plan to Move Dredge
During this time I have had several
conversations with rir. Jacobson. the
last Of which took place Il few minutes
ago. | think that n would be willing
I'd enter into another agreement to
continue the work. but his present plan
seems to be to move the dredge from
Brazos Island harbor ut this time in
order to put il on Scme other worn
which he has~at Aransas Pass.
sThis shortage of funds to complete
the inner channel is due to she fact
thai the original estimate hap proven