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Subway in Brooklyn is included. Although the Brighton Beach line is for operation by the Brooklyn company, the one station in question was included in this contract because of the fact that six subway tracks are provided for and were constructed at one time under Flatbush avenue, two of them for the Brighton Line connection and the other four for Interborough operation.

Bids were received on May 16, 1917, from four bidders, of whom the Snare and Triest Company, at $464,540, was lowest. At the meeting of the Commission on May 18, 1917, the Secretary presented a communication from J. A. Lewis, President of the J. A. Lewis Construction Company, Inc., one of the bidders, stating that by inadvertence an error had been made in the bid of that company through which the figures $0.175 had been set down instead of $.0175. Mr. Lewis pointed out that this mistake made a difference of $82,000 in his bid and that if he were permitted to correct it, his proffer would stand at $443,267.49, or approximately $20,000 lower than the lowest bidder. He asked the Commission, in the event that it was impossible to correct the bid of his company, to reject all bids and advertise anew, agreeing to submit a proposal at a figure not in excess of his first proffer, as corrected.

The Commission, however, following its consistent practice of refusing to permit adjustments of bid figures or changes in bids, declined to accede to this request and on motion of Commissioner Charles S. Hervey an award was made to the Snare and Triest Company, the lowest bidder, on May 21, 1917, the contract being delivered on June 27, 1917.

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Route No. 5, Sections Nos. 13 and 15; Station Enclosures.In the contracts for construction of station finish on these sections, awarded previous to 1917, there were included certain enclosures at the ends of the Third Avenue, 125th Street and 149th Street stations. While the work of constructing these stations was in progress, notice was received from the Interborough Rapid Transit Company that additional space would be required and that the size of the structures must be increased. The station finish contractor refused to construct them under his contract and it became necessary for the Commission to make other provision.

Exercising the option granted to the Chief Engineer under an amendment to the Rapid Transit Act, passed by the 1917 Legislature, increasing from $10,000 to $25,000 the amount to which that official is permitted to receive bids without formal advertisement, bids were called for. Three proffers were received, that from D. C. Serber, at $24,175.80, being lowest. After canvass of the bids and recommendation of the Chief Engineer, the contract was awarded on August 8, 1917, and delivered on September 27, 1917.

Only two track installation contracts were let during the year on lines for operation by the Interborough Rapid Transit Company.

Route No. 5, Sections Nos. 14 and 15; Routes Nos. 19 & 22, Sections Nos. 1, 1A and 2; Track Installation. This contract provided for the installation of tracks in the Southern Boulevard, Westchester Avenue and Pelham Bay Park branch of the Lexington Avenue subway. Bids were received by the Commission on June 4, 1917, two proffers being made, the lower bid being received from the Terry and Tench Company, Inc., whose figure was $363,860. On recommendation of the Chief Engineer, the Commission on June 8, 1917, awarded the contract to the lower bidder, to whom it was delivered on July 2, since which time. work has been actively prosecuted.

Route No. 18, Section No. 2; Tracks at Gunhill Road Station. Owing to certain alterations made in the structure of this station, a relocation of the tracks on the lower or elevated railroad level became necessary. The Commission on June 25 awarded to the Empire Construction Company a contract for this work for the sum of $4,076.75, plus a contingent expense, amounting in all to $4,500, upon the basis of bids received by the Chief Engineer of the Commission, the Empire Construction Company being the lower bidder. The contract was delivered on August 27, 1917.

COMMISSION TO TAKE OVER WORK

Routes Nos. 19 & 22; Southern Boulevard, Westchester Avenue and Pelham Bay Park Branch of the Lexington Avenue Subway. A contract was entered into with Lawrence C. Manuell for the construction of the elevated railroad portion of the

Pelham Bay Park branch of the Lexington Avenue subway on May 5, 1916, after several months of negotiations between the Board of Estimate and the Commission. About four miles of line are embraced in this contract, beginning at a point over Whitlock avenue near Bancroft street, The Bronx, at the end of the subway portion of this branch, and extending northerly over Whitlock avenue to Westchester avenue near Eastern boulevard, and thence out Westchester avenue to Pelham Bay Park. This line will open a new district served now only by steam railroad and street surface railroad lines.

The contract price for the work was $2,063,877.50. Shortly after the contract was executed, it was assigned to the Flick and Manuell Construction Company. The contract had been awarded by the Commission on December 1, 1915, but the execution of the agreement was delayed through a question raised by the City authorities as to whether duct lines included in the contract were properly chargeable to construction or to equipment accounts. The Commission repeatedly pointed out to the Board of Estimate the necessity of having this contract executed, else the City might suffer considerable financial loss in the face of a rising stecl market, inasmuch as Mr. Manuell, before placing his bid, had obtained a favorable option for the thirty thousand tons of steel needed, at a price greatly below the market rates prevailing at the time of the execution of the contract.

Work was begun during July, 1916, and good progress was made for a period of several months. In May an agreement was entered into between the contractor and the City, through the Commission, and the American Bridge Company, subcontractor under the Manuell contract for the furnishing of the steel, by which the American Bridge Company took over the obligation of the contractor as to the furnishing of steel and agreed to accept payment direct from the City.

Early in 1917 the Commission received reports from its engineers that the work was not being prosecuted with diligence, which reports were followed in March by an announcement that Mr. Manuell had severed his connection with the company. On May 2, 1917, a communication was presented to the Commission from D. L. Turner, its Chief Engineer, to the effect that the work to be done under the construction contract, entirely separate from

the steel contract, had been abandoned by the contractor, that he (the Chief Engineer) was of the opinion that the performance of the contract obligation was unnecessarily and unreasonably delayed and that the contractor was willfully violating the terms of the

contract.

The Commission thereupon fixed a hearing for May 14, 1917, at which the contractor and his sureties, including the National Surety Company, the Fidelity and Deposit Company of Maryland, the London and Lancashire Indemnity Company of America, the Royal Indemnity Company, the Globe Indemnity Company, the Hartford Accident and Indemnity Company and the Southern Surety Company were directed to appear. On the date stated Messrs. Flick and Manuell and representatives of some of the sureties attended. Mr. Manuell announced that he saw no reason why the company could not go ahead with the work and that if the company did not, he was willing to proceed with it himself, while Mr. Flick stated that the company was not in a position to proceed with the work because of lack of funds and that he could see no hope of obtaining them. Mr. Flick stated that he had no reason to offer why the company should not be declared in default. Representatives of the sureties asked the Commission for a brief period in which to have an engineer examine the work to determine whether the bonding companies were prepared to take over the contract and complete it. On May 23 another hearing was held, at which a representative of the bonding companies stated that the companies had found it impossible to reach an agreement which would permit them to go ahead with the work. Thereupon, the Commission, on motion of Commissioner Henry W. Hodge, adopted a resolution declaring the contractor in default and forfeiting the contract.

By a coincidence, it occurred that on the same day Governor Charles S. Whitman had signed the amendment to the Rapid Transit Act, known as Chapter 625 of the Laws of 1917, giving the Commission the power to take over and complete with its own force any rapid transit construction contract which the contractor is unable for any reason to prosecute satisfactorily. Reference to this Act is made elsewhere in this report. Immediately after the declaration of forfeiture was made, the Commission, informed

that the above mentioned Act had become effective, set in motion the machinery to take over the Flick and Manuell contract. On May 24, 1917, on recommendation of the Chief Engineer, Mr. J. A. Flick, a member of the contracting firm, was appointed manager, to take charge of certain excavation and miscellaneous work which it was essential to make safe at once. The Commission also took such other steps as were necessary to provide for the carrying out of this work and on the same day addressed a letter to the Board of Estimate reciting the circumstances of the forfeiture of the Flick and Manuell contract and requesting that body to reappropriate the balance of the original appropriation for the construction of this section, so that it might be available for the work under the new conditions. The Board was also notified of the Commission's action in respect of the appointment of Mr. Flick and requested to make an appropriation of $10,000 to provide for such work as might be immediately necessary.

An arrangement was made by which the Interborough Rapid Transit Company was to meet the expenses incurred under the Commission's resolution through the unexpended portion of its contribution to the construction of this particular contract. Mr. Flick under the direction of the Chief Engineer of the Commission proceeded to hire the necessary labor and to carry the work forward. The Flick and Manuell Company also assigned to the Commission early in June a number of its subcontracts for materials, such as cement, iron castings and ducts, previously entered into by it.

In the meantime the consent of the Board of Estimate and Apportionment had been given to the action of the Commission in retaining Mr. Flick, and appropriation was made to permit of the work being advanced. On July 18, 1917, on recommendation of the Chief Engineer, the Commission adopted a resolution, the effect of which was to terminate the services of Mr. Flick and to retain Mr. John J. Hagerty, a member of the contracting firm of Rodgers & Hagerty, to take charge of the work for the Commission. Mr. Hagerty's concern and he, personally, have had much experience in subway construction. His firm built Section No. 1-A of Routes Nos. 19 & 22, the underground portion of the Pelham Bay Park branch adjoining the section involved in the

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