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Manning - TUESDAY, MARCH 17, n it Wood River Edict: 'Pay...
TUESDAY, MARCH 17, n it Wood River Edict: 'Pay Or We Sud Council Orders Attorney To Cash $43,000 Good Faith Check Goes to City Funds Manning Calculates Re. suits of Court Action on Sewer Puzzle the of of the to of WOOD RIVER, March 17.—Authority 17.—Authority to demand or to sue for payment of a $43,599.50 certified "good faith" check, deposited with the board of local Improvements by the R. B. Higgins <fc Son Construction Construction Co. at the time it bid on the $450,000 trunk and relief sewer was vested in Corporation Counsellor Manning by resolution of the City Council Monday night. The resolution authorized the corporation counsellor first to demand demand •payment of the check by either the contracting firm or by the Granite City Trust St Savings Bank; and later to institute legal proceedings against the bank or against the contracting firm If both refused to settle for the full amount of the check by March 36. Manning explained to the council that while the check originally had been deposited with the board' local improvements by the cont tor, it became the city's and the council's concern when the* contractor forfeited his contract and the check was returned un- cashed, Notation on Back This situation was'brought about by a statutory provision which made funds from forfeited "good faith" checks, a part of the city's general fund, to be used for repairs and maintenance of improvement projects, projects, according to Manning's opinion. opinion. The Higgins contract has been declared forfeit since last November, November, but the board of local improve™ ments, after the, check was once turned back uncashed, has retained the check and the Higgins firm has Issued an assignment of its contract, contract, i Manning told the council that a notation on the back of the check, made at the time it was turned over to the local improvements board, conditioned the check's validity validity on the satisfaction of the contract contract entered. Answering a question question of Alderman Burroughs as to whether anything in the nature of a "Joker" were on the check, Manning Manning expressed the opinion that reservation would not prevent the city's collection of the check, since the contract had been accepted and signed by the contractor. Burroughs said he asked his question question because-he had heard a num». ber of rumors 'about the streets,to the effect that the contractor had placed on the check "something" which would prevent the cashing of the check. Opinions as to how much the city might realize from a suit for payment payment of the check varied. While Manning said the law would require either full payment or none at all, unless the case went before a Jury, Mayor Hamilton expressed the opinion opinion the city probably would get only damages it could show had resulted resulted from the contractor's failure to fulfill his contract. Manning also pointed out the bank would be financially liable if it could be shown it had stopped payment on the check without good cause. The resolution, accompanied by a recommendation for action sent by the board of local improvement*. W ^u? f ?_ re _ d , b y Alderman Veach. referred to u T £ e u 00uncil lasfc Us light committee a communication communication from the Public Works Admin- offer of a grant for construction of a municipal power plant. Renfltv Muny Plant Talk Manning advised, in this respect th> notlfted that the city planned to drop the SJSSSf 1 fn wer projeot - h »vins awarded a 10-year street lighting contract to the Illinois Power & !, ^A."" 16 PWA had 'informed both the latest offer and the °« e , ^ BM "• Burned. Oglesby, Veach, and Carstens Carstens urged that possibility of a | light referred to and the matter the committee. previously had're^ merited ter yjB koj 3& reven "e bonds with flnanc « the plant. ast lUght ' s actlon Mavor commented to the coun- everybody can get out and try to sell thebonds." Alderman Oglesby said that he. uif^tfry of the light committee hm H ^ Ivcd only ono «'"«» to a tin,, n M ProP 08 * 1 ' but Corpora- him , choun * ill < )lv Manning had received ««,. i several more, and had Inquired of a ' a . number of'bond buying firms wnion had not even given an an- Ihe rate cute made by the I. P. « L. would Involve a general realignment realignment of the financial structure ">r the municipal power plant to rwln*^, ^Petition, Alderman can-oil pointed out.

Clipped from
  1. Alton Evening Telegraph,
  2. 17 Mar 1936, Tue,
  3. Page 2

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