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Austin Water Works Bond Sales and Pipe Contracts

Tuesday, July 23, 1895 special called

Bond Sale Approved: The city accepted a bid from E. H. Gay & Co. to purchase $2,282 in premium bonds for the water works and electric light system, generating additional revenue for the project.

Pipe Contract Controversy: The council voted 19-0 to award a water pipe contract to Walter Pips (the lowest bidder at $87,585.50), despite Mayor McDonald's public objection that the pipes came from convict labor and were inferior quality—he urged acceptance of a higher bid instead.

Public Works Board Dissolved: The council thanked and formally relieved the Board of Public Works from duty after completing their assigned infrastructure projects, with special recognition given to the company Jas H. Raymond & Co. for providing interest-free financing to the city.

Full Transcript

202 Minutes of a Called Meeting of the City Council. Hon John McDonald, mayor, presiding" " ", Austin, Tex, July 23, 1895. Roll call. Present Aldermen Fischer, Glass, Glascock, Haynes, Lawless, Linn, Nitschke, Platt, Powell, Schneider, Shelley, Taylor, Warmoth—13 Absent— Aldermen Anderson, Asmann, Goeth, Hume, Jackson Redd, Roberdeau, Robin, Townsend— 9 On motion of Alderman Taylor a call of the council was ordered. A recess of ten minutes was taken. The second roll call showed the following: Present— Aldermen Fischer, Glass, Glascock, Haynes, Hume, Lawless, Linn, Nitschke, Platt, Powell, Redd, Roberdeau, Schneider, Shelley, Taylor, Robin, Townsend— Warmoth—18 Absent— Aldermen Anderson, Asmann, Goeth, Jackson— 4. The call of the council was, on motion, suspended. The following was read:— Austin, Tex, July 23, 1895. Mayor's Call To the members of the Board of Aldermen, Austin, Tex. Gentlemen— I hereby call a special meeting of the City Council of the City of Austin to assemble in the council chamber at the city hall this day, July 23, 1895 at 8:30 o'clock P. M. for the following named purposes to-wit: First. To receive and act upon the report of the finance committee concerning the sale of the water works and electric light bonds, series "B". Second. To receive and act upon the report of the water and light commission in reference to the purchase of water pipe. Third. To consider unfinished business of the last meeting of the council in regard to the Board of Public Works. John McDonald, Mayor. Marshal's Certificate Austin Tex, July 23 1895. 6. P.m. I hereby certify that the following aldermen have been served with the above "call" by having it read to each of them in person, viz: Anderson, Asmann, Fischer, Glass, Glascock, Haynes, Hume, Lawless, Linn, Nitschke, Platt, Powell, Redd, Roberdeau, Schneider, Shelley, Taylor, Robin, Townsend and Warmoth, and that Aldermen Goeth and Jackson have been served by a true copy having been left each of their respective places of business, they being out of the city. James E. Lucy, City Marshal. Alderman Linn presented the following: Austin, Tex, July 23, 1895. Accepting Bid of Hon John McDonald, Mayor, and Board of Aldermen of the City of E. H. Gay & Co. for Austin, Tex; Bonds. Gentlemen— Your finance committee beg leave to report --- Page break --- that bids have been received for Austin Water Works and electric light bonds, series "B", and would respectfully recommend that the bid of Messrs E. H. Gay & Co. who bid par, accrued interest and a premium of $2282 be accepted Respectfully Submitted. Henry A. Linn. Thos F. Paylar. I concur in the above, John McDonald, Mayor City of Austin. The report was adopted (Alderman Linn was called to the Chair) Alderman Armann entered the council chamber and answered to his name. Alderman Tobin, for the Water and Light Commission, preW + L Com. Report sented a report in reference to proposals for furnishing on bids for pipe pipe and special castings for the extension of the water system. The proposals are all based on the following sizes and quantities: 8400 feet or 1041 tons of 24 inch pipe. 500 " " 92 " " 16 " " 500 " " 21 " " 12 " " 500 " " 12 " " 8 " " 120,000 " " 1970 " " 6 " " 50,000 " " 510 " " 4 " " 50 tons of special castings. Bid of Addyston Pipe and Steele Company: For pipe $98,548.28 Special castings 2875.00 Total Bid $101,418.28 Bid of Anniston Pipe and Foundry Company: For pipe $93,231.00 Special castings 2,750.00 Total Bid $95,981.00 Bid of R. D. Wood & Co. For pipe $92,026.40 Special castings 2,375.00 Total Bid $94,401.40 Bid of Howard Harrison Iron Co. For pipe $91,310.25 Special castings 2575.00 Total Bid $93,885.25 Bid of Walter Pipe. For pipe $85,160.50 Special castings 2,375.00 Total Bid $87,585.50 The report closed as follows: "The said bids were further considered at a meeting of the Water and Light Commission held on the 22nd --- Page break --- 204 instant, and a motion was adopted recommending to the city council the acceptance of the bid of Mr Walter Pips, conditional on the city reserving the right to take any part of or none of the 24 inch pipe as may be determined within 90 days. Respectfully Submitted, Wm H. Pobin, Francis Fischer P. J. Lawless, J.P. Schneider." The Water and Light Commission" The following was read: Austin, Tex, July 23, 1895. Mayor Dissents Gentlemen of the City Council: I feel it my duty to most respectfully dissent from the action of the water and light commission in their recommendation to accept the bid of Walter Pips for pipe for the following reasons: First Mr Walter Pips proposes to furnish the pipe from the State penitentiary, and I am opposed to patronizing convict labor as against free labor. Section 7 of an ordinance creating the Board of Public Works prohibits the use of convict labor and undertakes to forfeit all contracts where convict labor is used, which shows that your honorable body is in favor of free labor as against convict labor. Second The metal in the pipe is hard and difficult to cut or drill for making proper connections It is not uniform in character or weight and is a second grade of pipe, not fit to be used in a first class plant, such as we are building. Believing it would be false economy to use a second class grade of pipe for the purpose of saving a few thousand dollars, I would recommend the acceptance of the next lowest bid, that of the Howard Harrison Iron Company. Respectfully John McDonald, Mayor. Awarded Pips Alderman Nitschke moved the adoption of the majority report. Adopted by the following vote: Yeas Aldermen Assmann, Finler, Glass, Glascock, Haynes, Hume, Lawless, Linn, Nitschke, Platt, Powell, Redd, Roberdean, Schneider, Shelley, Taylor, Pobin, Townsend, Warmoth-19. By Alderman Shelley. Resolved that the Mayor be and he is hereby instructed to enter into contract with Hon Walter Pips for furnishing pipe and special castings for completion of water system as per his bid and the recommendation of the water and light commission. The resolution was adopted (Mayor McDonald in the Chair.) --- Page break --- B. P. W. Res. relieving them &c Thanks &c By Alderman Linn- Whereas, The Board of Public Works of the city of Austin is desirous of being relieved of their duties as soon as their final report, now being prepared, is presented and approved by this council, and Whereas, Said board has about completed the duties assigned it and for which it was created; therefore, be it Resolved- First, That said board be requested to make a full report of their actions, and that after the acceptance and approval of their report by this body, and in accordance with the wishes of the members of said Board of Public Works, that they be relieved from further service. Resolved, Second, That the City council, as the representatives of and acting for the people of Austin, hereby tenders to the members of said Board of Public Works the heartfelt and sincere thanks of the people of Austin for their faithful, effecient and unselfish service. Resolved, Third, That we beg to assure the individual members of said board of the hearty appreciation of their services by the people of Austin and that thier unselfish and efficient services will be held in grateful remembrance by the people of the city. Resolved, Fourth, That the City Clerk be and he is hereby directed to furnish each member of the Board of Public Works with a copy of these resolutions. Resolved, Fifth, That these resolutions be printed in full in the proceedings of the council. The resolution was read, after which Alderman Lawless offered the following amendment: Jas H. Raymond & Co Resolved, Fourth and a half, That the earnest and sincere thanks of the people of Austin are hereby extended Jas H. Raymond & Co, for advancing the city money without interest, when it was most needed and for the efforts of said company, both as a company and as individual, in ever looking to and advancing the interests of our Water and Light system. The amendment was adopted. A motion was made to adopt the resolution as amended. Alderman Haynes moved that the water and light commission be excused from voting on the motion to adopt. A motion to excuse the Water and light commission from voting on Alderman Haynes' motion prevailed. The motion to excuse the commission from voting on the adoption of the resolution carried by a vote of 10 to 5. The resolution was then adopted by the following vote: Yeas- Aldermen Aermann, Glass, Haynes, Hume, Linn, Nitschke, Olutt, Powell, Rodd, Roberdeau, Shelby, Townsend, Warmoth- 13. Nays Aldermen Hancock and Neylan- 2. Excused Aldermen Fischer, Lawless, Schneider, Tobin- 4. The council then adjourned. Milton Morris, Chy Clerk.