New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-12-19
ruE DURATION OF THE BOND
Continued from first pngc.

1opted the members refused 10 give out any
ring regarding the discussion. BY the wording
=, rho resolution however. ii is apparent that
,srther action upon the tunnel scheme mas been
,sfsrred for few daYs-untiI, IN Iacl' INC
courts intention as TO whether the BOND snail
osa with me completion Of the road. or re-
os5n in force throughout the fun term "f the
nrrarinC lease has been definitely learned.
when ssen after the meeting Mr.. BOardman,
IN a, tho counsel 10 the Commission, gave Y
os his opinion thai the Appellate Court did not
mean that the bond should be kept alive for
.hir,y-fvr or fifty years. Under the clrcum-
e.arcas however" Mr. Boardman added. there
,s nothing left for the Commissioners to do bat
20 proceed and perfect the plans. and make the
psst possible terms with the contractors, ana
hon when we have done that, we can report 20
,be Judges. who will tell US what they thlnk
q, our work and then it may be mat certain
Jausos which now seem ambiguous. VIII De
(i4ared up. II seems to me that the Court Is
favorable rather than opposed to us ne Jus
.;cns have told US that We have the right To go
beed with our work under certain conditions
ond | cannot see why We cannot comply VIII
,bo conditions specified. At any rate. we VIII
70 on with our work and ask for RELIEF later
PRACTICALLY AN IMPOssIBHlIf'
Nv Delafeld. when seen earlier in the day,
aid in reply 70 an inquiry that II the Court
oersjsted in exacting bond for the entire period
=, the lease Il would have the erect OF killing
the plan. Il would be impossible. he pointed
=. % obtain such a bond with its continuing
~ aud several liabilities. The combined
rapital and surplus of all our surety companies,
nc vent on. does not amount 10 the sum in
bioh silreties upon such bond would be required
~ Justify. As to getting individual persons 10 60
nan such a bond ! may say that 1t would be
ironossible 10 find persons willing 10 SUBJECT
themselves and their estates to practically per
,tmeI liability Moreover, II the language OF
he decision is TO be accepted literally ms
enormous continuing bond is TO be eNacted over
md above the 81 600 600 which must be depos-
S,ed in cash. and in addition to the cliy's lien
mon the equipments which must he furnished
bv the contractor and Will cost about S>""""'
however II this bond is to be made as securl-
=, for the construction of the railroad. do not
regard II as altogether unreasonable. nor do l
mink there would be much difficulty in securing
!, But the Court should provide that the ma
bu,v on the bond should h. diminished ny the
amount Of cash deposit made by the contractor,
and by the value Of the real estate and EQUIP
ment furnished by him. or course taheiD'e
property affords better security 10 the city than
the mere right to sue suretes upon hohd' ana
as the city's lien will attach To oil TINS properN
as oucklv as the contractor furnishes II the Ia
biiy on the bond should be propOruonateiy re-
duced. , 1891,
the exaction OF so large a bond. seem 70 me 10
no based on an apprehension that there was a
possibility Of the city having an unfinished prop
ertv left on its hands. The language in the
opinion in regard 20 he stipulated bond is alto
gether inapplicabe TO the lease. ] regard IL also
as somewhat unfortunate that the Court has
seen f, to attempt to define the sort OF security
10 be obtained For the Rapid Transit Commits
sioners over and above the security Of the bond
which the law requires. expected TO get other Sc
curity Of q much higher order. but this plan VIII
he destroyed il the amount II the bond is to he
so large The trouble seems to be that the
Court without hearing arguments or considering
what other means OF securing the city could be
adopted. has assumed that this bond was the
best possible security and has substituted its
own judgment upon that question for the views
OF the Commissioners"
MR. M'MIIIIN PESSIMISTlC.
Emerson McMillin. who is interested in the
icb bog haop Cd 10
capital for the construction Of the line. takes
an extremely pessmstic view Of the decision
y think the underground scheme is dead he
said unequivocaly. and / think the decision Of
the Appellate Division Of the Supreme Court
has killed il. / assume that no contractors
would assume a responsibility such as the
building OF this railroad would entail, with the
city mourning no liability. Besides. | do not
think any would give SlJOpWB oond
for an indefinite period. Certainly the men with
whom | am associated and for whom am act
ing would not think for second % doing So
An our negotiations are in allegiance until We
know just what the COur; means. II - possible
90 put up the money required ipr -FOUR or nv
vears-that is until the road is completed. and
il the Court is satisfied with that, we are ready
10 90 ahead at once.
II was learned from Frederick Eser yester-
dav that the name OF the syndicate which was
formed u carry Ouu the contract was inc
Metropolis Contract Company II was Moor
p1rated on February "a 1871 with capltdi
Of $1,000 and It's object was TO Dld Tor th'
underground railroad contract The articles ~
association provide that after the incorpora', W
the capital may be increased to any sum on
April 20 papers filed for the increase
of the capital to SJ,OopO The Original m
corn"rators were A W GurndOn. Henry +. Nc
Gowlan James VI. Ludden John II. Meyer ana
F A Brown. These ncOrporators resigned the
day after Incorporation. but Mr. Esier decnnea
n state who constituted the present Board OF
Directors. , NJ
The Contracts Committee Of the Rapid Tran
sit Commission will meet at NO Lob Broadway
tomorrow afternoon