New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-01-18

would be proper exercise or discretion on tne part
OF the Board accept such suretyship unless the
property of the suretes free from liens OF serl-
Gus amount The contract Of suretyship OF Itself
sompany no would s be o debt SUBJECT
to all the risks of business and these IN me case case
OF any private corporation, during period OF nity
years In which II Is at liberty to enter upon new
mortgage It's property IT'S will without inter
ference OF the city, are obviously such-ahd this
mas ooen nsIvso any such snrctyshp
could be fairly considered sufficient. . ,
80 large bond to continue for so long n period Ia
that there would be little II any competition Tor
the contract The RUNNER s OF be- extremely
email The result Of the requirement would be- In In
opinion that the competition contemplated by
the Rapid Transit act would be defeated
OBLIGATIONS OF THE CONTRACTOR.
The statutory obligations to he imposed upon
the contractor In addition TO the bond required
under Section "a, are set out at length. and II
is stated that It was not the intention or the
city or the Legislature that the Board should
attempt the imposslhlity Of eliminating all risk
to the city in carrying out the rapid transit
plan. Summing UP the amount OF security
which the contractor would have to deposit out
side Of the bond. and the providing Of from
S6,0OO.O0O to S1000O000 worth OK equipment
the committee states that the segregation Of a
further Sl5 900 600 OF capital for term OF hfty
years. the operative period. Is obviously and ABB
soutely impossible under municipal and busi-
ness conditions, now existing or In prospect.
Consequently the committee recommends that
the Court be requested to limit its requirement
10 a bond for construction. leaving the Board 70
fix the amount.
AS has been pointed out. the committee says
It Is impossible at present TO fix the amount or
security to be required. but In obedience TO the
requirement OF the Board to report what Sc
curlty in money, bonds or otherwise. can be oD-
tanned from responsible bidders" the following
Is submitted as the utmost security which the
committee believes can under existing condi-
tons be exacted for the proposed rapid transit
contract without absolute defeat OF the plan OF
municipal construction and ownership:
% The deposit OF N,0CoCO0 and in addition C) the
Withholding or deposit. subject TO the cOntro! or
the Board. OF reasonable percentage or me
to the contractor only upon his providing proper
equipment OF quail value. upon when the city
should have first len to secure the rental and
satisfactory operation and not TO be fully paid
untll complete delivery OF the railroad ready TOT
operations: and n addition ca severa! bonds TO Sc
cure construction md equipment, but not rental
the total amount of such bonds not to exceed $500
CO; and In addition "a bond, under Section 81 OF
the act in an amount which. with the cash value
OF the equipment. shall be equal 10 the estimated
rental for seven years.
Your committee cannot report that even II the
other difficulties In the way Of making a contract
snail be removed, security TO so large an amount
can certainly be obtained. But your committee Is
Gear that the exactcn OF any larger security will
be an efectual prohibition Of municipal cOnstruc-
ton for many years TO come.