have
that city largely repaved and re-sewered, and asked an American firm
somewhat noted for its political influence, that of Michael J. Dady &
Co., of Brooklyn, New York, to submit plans. A year later it accepted
some of this firm's proposals, payment for the work to be made in bonds
of the City of Havana. But the oncoming of the war caused postponement
of the project, and it was not until December, 1898, just before the
Spanish evacuation, that the corporation of Havana finally accepted the
proposals and authorized the issue of bonds. The American authorities,
however, who were about to take over the control of the city, protested
against being thus saddled with a scheme of Spanish making, and
accordingly the last Spanish Governor, General Castellanos, very
properly declined to approve and sign the ordinance; declaring that it
and all similar projects, which would have to be executed under American
control, should await American approval.

A few days later the transfer of sovereignty occurred, and General
Ludlow, as Governor of Havana, decided to set aside the Dady proposals
altogether and to proceed with the work himself. This was doubtless an
economical and logical course to pursue. But under the old Spanish law,
which was still in force, Dady & Co. claimed to have certain rights in
the matter. The matter remained in suspense for the whole of General
Brooke's administration, with a succession of engineers from the United
States making and remaking plans for the work and with Dady & Co.'s
interests undecided. Apparently the United States government--for the
whole matter was controlled by the Engineering Bureau of the War
Department at Washington--was reluctant to challenge Dady & Co. to a
trial of their claims in court, and was unwilling to seek a compromise
with them, but was seeking by interminable postponements, changes of
plan and delays to tire them out and induce them voluntarily to
withdraw. But that was something which that astute and resolute
corporation showed no inclination to do. Meanwhile very important
public works were at a stand-still.

This was an intolerable state of affairs, and General Wood in the spring
of 1901 determined to end it after the manner of Alexander's disposition
of the Gordian knot. He paid Dady & Co. $250,000 in satisfaction of
their claims, which was possibly less than the courts would have awarded
them if the case had been carried before them, and then ordered bids to
be solici