New-York tribune., 1897-12-19
THE DURATION OF THE BOND
REGARDED AS THE VITAL POINT in ihr
RAPID TRANSIT SITUATION.

7
SECURITY is TO LAST ONLY FOR THE
PERIOD OF CONSTRUCTION. 40
SERIOUS OBSTACLE HAS BEEN
PLACED IN THE WAY or
BUILDING THE ROAD.
Whether New-York ia to have the system OF
pd transit planned for 1t after long pefiod
OF earnest thought and labor by the men ap-
pointed to solve the problem of lettering 'hc
transport facilities of the city depends largely
upon the period which the stipulated SloWoooo
bond is to run Much perplexity existed yes
tcrday as to the construction to be placed In
this connection. upon the decision OF the APPEL
late Division OF the Supreme Court. II 1t should
be held by the Court that the bond shall be en-
tered into only for the satisfactory and COM
plete construction of the work. then the under
ground rapid transit line will be begun compare
lively soon But If II shall be Insisted that
the bond must cover the whole period or the
half century during which the successful con-
tractors must operate the line, then the obilga-
ion seems TO be To all practical intcnts prohlbi-
tive. At least this was the general opinion ex-
pressed by members Of the Board OF Rapid
! Transit Commissioners yesterday. ana py IN
| fact every one who is closely Interested or con-
| cernod in the carrying out OF the underground
| project The decision of the ma jority of the
/ Appellate Court was much discussed yesterday
hy persons qualified to interpret the judgment.
and the opinion prevailed widely that the judges
in Axing Sl5 5OoOOOO bond had in mind only
n guarantee for the completion Of the work. once
/ II undertaken. and not the imposition o:
impossible conditions upon any syndicate Of cap
! itallsis formed 10 build. and afterward to oper-
ate the railroad.
WHEREFORE THEY REJOICE.
The jubilation manifested by those opposed to
the underground railroad is based entirely upon
the following paragraph Of the Courts decision:
In view OF the magnitude o; the undertaking
| which We are asked to approve. and the vital
Interest which thu city has in the prompt com.
petion OF the contract .or the building or the road
/ when entered into and its effective equipment,
maintenance and operation. think that We
| should before consummating our confirmation o.
/ the report o. the supreme court 'ominlssioners
by the entry OF an order to that effect have some
assurancc tnht the po".rs OF tme h"pd drdhttt M
commissioners III 'sl"mt 10 security proEldru D!
Section = OF he Rapid Transit act for the payment
! faithful perrormanrs of ali the conditions cove
! uluts and requirements provided FOR In tn" con
Interest," ot the city ir substantial manner, and
| to that end a stipulation should be ned by the
! the bond specified in section 3 % the Rapid Transit
&c, will be- fixed at not ess tnan si5ooo"o
Section 81 after providing that those who
contract to build IN" system must equip and
/ operate IT for a period II not less than thirty
/ i've years and not more than hfty years pro-
/ vides that The person. firm or corporation 50
/ contracting FOR the construction. equipment.
maintenance and operation Of said road shall
give a bond to said city In such amount as said
Board = Rapid Transit Railroad Commissioners
shall require and with suretes 10 be approved
by said Board. who shall justify In double the
amount OF said bond. said bond shall be con-
! tnuing 'SrCyrity.'
| TO CARRY ir ITO COMPLETION"
a, nrst sight II might appear that the Sl5,-
rsLpU security was intended by the Court to
I cortinu" for the thrty-nye or hfty years opera
ton OF the line by the constructing contractors.
But az one - the Commissioners pointed out
/ 10 A Tribune reporter yesterday that the Court
/ meant TO convey no such intention N its deci-
/ sion was apparent in thc language used in that
/ document which directly and clearly stated that
/ the Justices object In requiring so large a bond
. was - protect the city. 10y making 1t obligatory
/ that, once the contracting syndicate or firms be
gan work upon the road. IT should be- carried out
to "A completion. This Is held TO be- manifest In
/ the paragraph Of the decision which Immediately
/ follows the stipulation of "A Sl',W",W" bond.
/ and which reads:
This amount In view of thr large interests OF the
c involved In its advances OF credit Tor the work
a. II progresses IL not more than sufficient security
-
tr,ri,r 10 perform his or it, contract and 10
aGc II to carry the road to completion in case the
enterprise thrown It's hands by the default or
I forfeiture OF the contractor
+ Several of thu commissioners. after thelr meet
I ing Yesterday. alluded to this paragraph OF the
decision as showing fully that the Justices were
swayed In fixing 80 high guarantee. by fear
/ that a combination Of capitalists after having
contracted for and perhaps started the work.
might abandon it, 10 the detriment OF the in
/ ieres!S Of the city
THEN TIE DANGER WOULD BE OVER.
"I'ndoubtedly II was TO obviate some such
danger IA this" said l.. l.. Delafeld. the secre-
! tarv Of the Commission. that the Court stipu-
| lated for so big bond. But once the road is com
plcted the danger which the Court has In con-
I temptation is over ard the necessity for the eX-
istence OF tho bond is done away with"
II was admitted on all sides yesterday that
the syndicate which has been organized to bid
for the contract is able and would be willing to
! file a bond OF $1JNlOUO for the construction
| OF the railroad but 1t IL regarded almost
certain that the syndicate would not attempt to
meet an obligation to continue the bond for
| something like half century.
The commissioners themselves are all at sea.
| Their demeanor and the nature OF their answers
| to injuries go to demonstrate their belief that
! the rapid traI.sit proposals are dependent upon
! the question of the duration OF the bond. Be
| fore proceeding 10 draw up any form OF con-
! tract decide upon the terms OF the lease. the
| Commissioners will wait until the application Is
made next Tuesday Or Wednesday, to the Court
/ to enter the order. and then doubtless. means
| will be taken to have some ~ the paragraphs Of
! the decision more explicitly defined by the
| Judges.
MEETING OF THE COMMISSIONER
After the decision made known on Fri
day a call for n special meeting was Immediately
| sent 10 the members OF the Commission. This
meeting was held yesterday afternoon at the