Sunday, October 18, 2015

Liens and Fires and Strikes, Oh My...

In 1891, the Atlas Iron Construction Company put up the iron framework for a building in downtown New Rochelle, New York for prominent local businessman George Ferguson.  They then got into a lengthy dispute with Ferguson over the final payment and the quality of the work.  If not for this dispute and the court records it generated, I wouldn't have even known that Atlas Iron worked on this building.  It turns out to be a rather troubled story all the way through.

George Ferguson ran a grocery store which also offered such things as hardware, feed, bicycles and corsets.  It was located on an L-shaped lot with one facade on Main Street and the other on Center Avenue (the building wrapped around another which was directly on the corner of Main and Center).  He had the misfortune of having his store burn down not once, but twice. 

The first fire claimed Ferguson's store and several other buildings in early September 1875.  He rebuilt, using brick for his new store.  The second fire occurred fifteen years later, at the start of November 1890.  It too claimed several buildings.  Fire companies from half a dozen nearby towns rallied to prevent the destruction of more of the downtown area.  Papers gave estimates upwards of $225,000 for the total damage done.  Ferguson's building was destroyed, along with furniture stored on the second floor in spaces he rented out to others.  One mention in the court records says that Ferguson burned his hand in the fire, badly enough that he was still recovering the following June.

Once again intent on rebuilding, Ferguson hired the noted New York City architect William H. W. Youngs (of Youngs & Cable) to design a four-story brownstone building.  Ferguson insisted that the new building needed to be strong enough to handle any sort of storage needs that he might have, especially on the second floor where he once again planned to rent out space.  After drawing up the plans, William Youngs lobbied for Atlas Iron to be given the contract to construct the iron framework of the building.  His son, Frederick Youngs, was Treasurer of the newly formed company - a connection which was not concealed from George Ferguson.

Atlas Iron did win the contract, and raised the building's framework during the spring and summer of 1891.  There were some delays during the process, partly caused by an iron workers' strike which lasted through the month of May.  The Housesmiths' Union called the strike in an attempt to have work hours reduced to eight hours per day while keeping their nine hour wage.  Over four thousand men were involved.  Fifty employers in New York City, Brooklyn and Jersey City joined together to resist the strike.  Both sides thought that it would end quickly, but it dragged on until the union men gave in and returned to work on their old terms.  This effectively ended the influence of the Housesmiths' Union.  The impact on the Ferguson building site was that some of the iron columns came from the foundry of F. W. Davis & Brother, and others (much delayed) came from that of Francis Haas.

Upon completion of their part of the construction, Atlas Iron sent George Ferguson an invoice to settle their bill.  This included $990 still owed on the contract, plus other charges and credits accumulated by both parties which reduced the invoice to just over $900.  Ferguson refused to pay, disputing the additional charges and credits.  After attempting in vain to settle their differences, Atlas Iron filed a mechanics' lien in January of 1892 to try and secure their final payment.

George Ferguson responded with a counterclaim, stating that the work had not been completed satisfactorily and that Atlas Iron and William Youngs had colluded against him, forcing him to accept inferior work.  He sought damages for this loss of value to his building and for the delays in construction, plus the full amount of his additional charges.  His claim came to a total of just over $4000.  The court directed that the matter be heard by a referee - Walter Large, Esq. - who would make a ruling.

Much of the documented testimony from these proceedings focuses on the strength of the iron columns used in the building.  The plans called for columns one inch thick. The Atlas Iron men insisted that they ordered the columns as specified, but that three-quarter inch columns were entirely sufficient for the building (it's unclear which thickness of column was actually ordered).  George Ferguson and his head builder, David Meyers, recalled being concerned about the quality of the iron columns when they were delivered.  The columns were put in place anyway and the building was completed and occupied.  It was only during the course of the legal proceedings that holes were bored to measure the thickness of the columns (something not typically done upon delivery unless the buyer requested it), and they were found to be three-quarters of an inch thick.  Other aspects of the construction and of the various additional costs on both sides were also disputed in front of the referee.

Walter Large filed his findings in May of 1893.  He concluded that Atlas Iron and William Youngs had not colluded against George Ferguson.  There was no wrongdoing found in some of the substitutions made in the building plans, however the use of three-quarter inch columns rather than one inch columns was ruled a violation of the contract.  Atlas Iron could not collect the balance of the contract price.  On the other hand, George Ferguson was not awarded the damages that he sought.  Each side was allowed to collect some of its additional charges, leading to a nearly balanced bill.  Atlas Iron was then ordered to pay for Ferguson's costs in the legal action, which came to almost $1400.

Atlas Iron promptly filed an appeal, but in December 1893 the court affirmed Walter Large's findings. 

Once again, Atlas Iron filed an appeal.  They claimed that the case had been mishandled, the information about the columns not interpreted correctly by the referee, and the judgement against them (especially the requirement that they pay for Ferguson's legal costs) went beyond accepted norms.

I have found no further references to this case until January 1896, which may in fact have been the next time anything happened with it.  The court once again affirmed the original judgement, with costs.  By that point Atlas Iron had faltered as a company, gone into the hands of a receiver and likely ceased operation.  It's unclear whether George Ferguson was actually repaid for his legal costs in the end.

The building at the center of this dispute can be seen in a few of the photographs in New Rochelle by Barbara Davis.  It was torn down in the 1930s and replaced by a Schrafft's restaurant.


Sources:
"A Big Fire In New-Rochelle", New York Times, 6 November 1890.
"Some of the Big Ones", from Red Shirt, Blue Shirt by Thomas A Hoctor.  New Rochelle Fire Department Centennial Committee, 1961. pp 38-40.
Regarding the strike: Real Estate Record and Builders' Guide.  2 May 1891, pp 692-693; 9 May 1891, p 732; 23 May 1891, pp 820-821; 30 May 1891, p 862; 6 Jun 1891, p 900; 13 Jun 1891, p 948.
Court of Appeals, New York Bar Association, Vol. 3, No. 21, 1896.  This has nearly 200 pages of details on the court and referral proceedings, up to the point when Atlas Iron filed their second appeal in December 1893.
Reports of Cases Decided in the Court of Appeals of the State of New York, Vol. 148, 1896, p 740.
New Rochelle by Barbara Davis.  Arcadia Publishing.  First edition 2009, p 88 (linked above).  Second edition 2010, pp 54-55.

No comments:

Post a Comment