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"additional” within the meaning of the contract. This has been paid for and exceeds the demands of the contract by 138,555 cubic feet.
Therefore (as remarked above), from the time that the impregnation of 150,000 cubic feet of this last-named timber was completed, the contract expired by fulfillment of article 6.
A short calculation will show that the department has thus far paid out for the impregnation of the wood thus far treated $28,000—more than it would have done had it purchased the works on the impregnation of the first 100,000 cubic feet. Of course this does not include the cost of the works themselves.
This money has all gone into the pockets of the company, and, together with the freedom from taxation, is a proper offset against "delay," " loss,” &c., as dwelt upon by the counsel for the company in his argument.
I am of the opinion that the second course above referred to is the one to be pursued, and it will be good policy for the department to inform the company that it will not have any more wood impregnated at the price established by the contract (14 cents); also, that it does not wish to purchase the works at the figure given by the company.
Negotiations for a new contract will then be in order on the part of the company, or a reduced price for the works.
The coursel for the company proposes that the department shall either buy the works, and then pay 4 cents royalty on each cubic foot of wood treated, or else make a new contract with the company.
I should, however, advise against the new contract just at present, and also against the immediate purchase of the works, unless at a very reasonable price.
Instead I would recommend that the Bureau of Construction and Repair be instructed to make immediate inquiry as to improved processes of wood preservation; if any are found superior to that under consideration, the department had better spend its money in buying the new plant rather than it acquiring ownership of that now in the Boston navy-yard. The papers in this case are herewith returned. I have the honor to be, very respectfully, your obedient servant,
Chief of Bureau. Hon. WILLIAM H. HUNT,
Secretary of the Nary.
THE POSITION OF THE NAVY DEPARTMENT AS SET FORTH IN THIS DOCUMENT.
The department has fulfilled its part of the contract as follows:
3. The 150,000 cubic feet "additional” (article 6) have been impregnated and 138,555 cubic feet in excess thereof.
Course of action open :
No. 8.-CONTRACT WITH THE AMERICAN WOOD PRESERVING COMPANY,
Contract for the preservation of timber and wooden material for construction by the Vary
Department, with the American Ilood Preserving Company.
Contract for the preservation of timber and wooden material for construction by the
Navy Department. This indenture of two parts, made and concluded this eighth day of February, A. D. 1877, by and between the Secretary of the Navy, acting for and on behalf of the United States, party of the first part, and the American Wood Preserving Company, a body corporate at Cleveland, Ohio, of the second part, witnesseth:
That the said parties of the first and second parts, in consideration of the several and respective mutual covenants and agreements, hereinafter set forth and described, have covenanted and agreed, and do hereby covenant and agree, as hereinafter articulately and fully set forth and described, viz:
ARTICLE 1. The said parties of the second part, for the purpose of impregnation
with the solutions mentioned, and in the way described in letters patent of the United States No. 88390, such live and sound timber as the party of the first part shall furnish for such impregnation at the navy-yard at Boston, in the district of Charlestown, do hereby, for themselves, and their successors and assigns, covenant and agree with the party of the first part that they will supply and place in said navy-yard, at their own cost and expense, a copper cylinder eighty feet long and six feet in diameter, with gun-metal tracks inside thereof, and cars needful to convey thereinto and thereoutof the timber to be impregnated; and to furnish in like manner the substances and solutions in said letters patent named, for the purpose of such impregnation; and also the tanks needful and proper to hold and contain said substances and solutions, said cylinder, tanks, cars, and chemicals to be delivered at said navy-yard within one hundred and twenty days from and after the day of the date of this indenture.
ARTICLE 2. The party of the first part doth hereby covenant and agree with the parties of the second part, their successors and assigns, that it will, without cost or charge to them, furnish the labor necessary for bandling the timber to be impregnated; and that it will allow said parties of the second part, at their own expense, to supply as superintendent of the process of impregnation, subject to the regulations of said navy-yard, such person as they may select for that purpose.
ARTICLE 3. Said parties of the second part, for themselves, their successors and assigns, do hereby covenant and agree, as aforesaid, that they will, at their own ex: pense, furnish as superintendent a suitable and competent person, who shall be paid by the party of the first part a snm not less than one hundred dollars per month for his services, who shall be subject to the rules and regulations of said navy-yard, and liable to be discharged at any time therefrom for inefficiency or violation of such rules and regulations; in which case the party of the second part shall furnish another competent and suitable person; and will at their own cost and charge, and within the period aforenamed, set up, establish, and place in snitable working condition, for the purposes aforesaid, the cylinder, tanks, cars, and tracks by them furnished, and also the steam-engine, boiler, and force and vacuum pumps, pipes and gauges ready for operation in the process of impregnation.
ARTICLE 4. The said party of the first part covenants and agrees with the said party of the second part, their successors and assigns as aforesaid, that as soon as fifty thousand cubic feet of timber shall have been impregnated in pursuance of this agreement, it will pay therefor to the said parties of the second part, their successors or assigns, the sum of seven thousand dollars ($7,000), and the like sum when another fifty thousand feet shall have been, in like manner, impregnated.
ARTICLE 5. If said party of the first part, after said second payment, shall desire to purchase at the cost thereof the works erected in pursuance of this contract by the party of the second part, and continue such process of impregnation at its own cost and charge, it may make such purchase, which cost shall be ascertained by a board of appraisers appointed and constituted as hereinafter provided in article 9, for appoisal of buildings; and for all such further impregnation made while said patent remains in force, pay to said parties of the second part, their successors and assigns, at the rate of four cents per cubic foot for all the timber which it may so impregnate.
ARTICLE 6. It is mutually agreed as aforesaid that if the party of the first part, at any time after the impregnation as aforesaid of one hundred thousand cubic feet of timber, may if reasonably dissatisfied with the efficiency or desirableness of the process annul this contract, and require said parties of the second part, at their own expense and with reasonable speed, to take down and carry away the materials by them firnished, and the works by them furnished and set up or placed in said yard; or if said party of the first part shall not elect so to do or to make the purchase described in article 5 of this indenture, it shall furnish from time to time for impregnation, in the manner and at the price per cubic foot hereinbefore named, an additional quantity of timber amounting to one hundred and fifty thousand cubic feet, and for the impregnation thereof shall pay the sum of seven thousand dollars ($7,000) for each fifty thousand cubic feet as the same shall be impregnated; and that when said impregnation is completed, said party of the first part may then make said purchase on the terms aforesaid, and continue the impregnation as provided in article 5 of this indenture,
ARTICLE 7. It is mutually agreed by the said several parties hereto that the question of reasonable dissatisfaction named in article 6 shall be submitted to and deterinined by a board of three naval constructors appointed by the Secretary of the Navy for the time being, before which board the parties of the second part, their successors and assigns, shall have notice and permission to appear and be heard.
ARTICLE 8. It is mutually agreed as aforesaid that so long as the impregnation is continued under this contract at the rate of fourteen cents a cubic foot, no timber shall be impregnated to which the objection that it is not live and sound timber is made by the superintendent named in article 2 of this indenture.
ARTICLE 9. It is further mutually covenanted and agreed that the said party of the second part shall, at their own expense, erect in said navy-yard a suitable building or buildings to receive and hold the steam-engine, boiler, cylinder, tanks, cars, ap.
paratus, machinery, and materials used in said process of impregnation, and that the party of the first part, whenever this contract is either annulled or completed according to the terms of this contract, may purchase, and, if so requested, said parties of the second part shall sell such building or buildings, at the then value thereof, which value shall be determined by the appraisal by the major part of a board of appraisal, who shall be sworn to make a just and true appraisal, consisting of three suitable and disinterested persons, one of whom shall be selected by the party of the first part, one by the party of the second part, and the third by the two thus chosen: Provided, however, if the commandant at said yard shall report that a suitable building can be had in said yard for the purposes aforesaid that may be used therefor without detriment to the public service, then said building may be used by said party of the second part, instead of erecting buildings for that purpose as herein before provided.
In witness whereof, the parties of the first part have hereunto interchangeably set the hand of their representative and duly authorized agent, and attixed the seal of the Department of the Navy, and the party of the second part have hereunto interchangeably set the hands of their representatives and duly authorized agent, and affixed the seal of said corporation, the day and year first above written.
GEO. M. ROBESON, [L. S.]
Sec. of Nary. For the American Wood Pr. Comp’y:
H. W. LUETKEMEYER,
Secretary. In presence of
I. H. RANF,
Washington City, March 25, 1880. In consideration of the increased price of chemicals used by the within-named company since the date of the within contract, the said company will be allowed an increased compensation of one cent per foot for 40,000 additional feet of timber to be hereafter impregnated by them, the said increase not to affect in any way the price to be thereafter agreed upon, but to apply only to the said 40,000 feet. In all other respects the conditions of this contract shall be binding on both parties.
R. W. THOMPSON,
Secretary of the Navy. H. Ex. 143_2
LANDS GRANTED RAILROADS.
L ET TER
SECRETARY OF THE INTERIOR,
IN RESPONSE TO
A resolution of the House of Representatives relative to lands granted by
the government to certain railroads.
MARCH 29, 1882.-Referred to the Committee on the Judiciary and ordered to be
DEPARTMENT OF THE INTERIOR,
Washington, March 28, 1882. SIR: In answer to House resolution of the 9th ultimo, calling on me for information concerning land-grant railroads, I have the honor to transmit herewith report on the subject, under date of yesterday, by the Commissioner of the General Land Office, to whom the resolution was referred. This report gives the material information called for, so far as it can be obtained from the records of this department, as I am advised by the Commissioner of the General Land Office. Very respectfully,
S. J. KIRKWOOD,
Secretary. The SPEAKER
of the House of Representatives.
DEPARTMENT OF THE INTERIOR,
GENERAL LAND OFFICE,
Washington, D. C., March 27, 1882. SIR: I have the honor to acknowledge the receipt on the 11th ultimo, by reference from the department on the 10th, for report, of a resolution of the House of Representatives, passed the 9th ultimo, as follows:
Resolved, That the Secretary of the Interior be requested to inform the House, at his earliest convenience, the nanies of all the railroad companies to which the government has granted lands to aid in the construction of their railroads, and the names of all States and railroad companies where grants of public lands have been made by the government to said States for the benefit of said railroad companies in the construction of their railroads, which have not completed their said roads within the time provided by law; the amount of land embraced in each grant, and the amount disposed of by each of said railroad companies and States, and the dates of all acts