New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-08
BONDS PROVE ACCEPTABLE
AUGUST BELMONTs PLAN SUITS RAPID
TRANSIT BOARD.
SECURITY OFFERED IS CONSIDERED BET
TER THAN GUARANTY COMPANIES
COULD POSSIBLY GIVE.


In our Judgment, business men, the
security which the Rapid Transit Board hns
agreed to accept from Mr.. Mcdonald is far
better than could be furnished by any guar
anty companies I'm existence.
ALEXANDER ORR,
CHARLES STEWART SMITH
The Rapid Transit Board accepted by a unani-
nous vote yesterday the plan of financing the
tunnel contract which submitted to it by
August Belmont & Co. on behalf of the success
full bidder. John B. Mcdonald. 1t differs in
many details from the plan approved by the
Appellate Division OF the Supreme Court when
the bond reduced from SIS 100000, but it
differs for the better, in the opinion of the Com
missioners, and they anticipate trouble in
obtaining the courts assent and that speedily,
to the new proposition Here it is:
New-York February T. 1900
To A e. Orr, President Board of Rapid Transit
Commissioners
Sir: Conforming to the understanding arrived
at with the subcommittee of your Board at
conference yesterday we now beg to lay before
you the plan which is proposed to enable Mr.
Mcdonald to qualify and execute the contract
for the construction of the Rapid Transit Rail-
way:
under the laws of this State with capital of
secured, and which is payable follows: Twenty
per per cent upon orga4zati9n 20 per cent 6o on May
| balance as called This company is to enter into a
| contract with Mr.. Mcdonald TO promote the con-
struction of the work under his contract with the
city furnish the security required to be given by
him and finance his undertaking. A copy Of the
proposed certificate of incorporation and of the con;
tract to be @ made with MI Mcdonald is submitted
second-Your Board is make application to
concerning the bond to be given to secure the con-
struction of the work by striking out the provision
amount of liability assumed by each and by re-
ducing the minimum amount permitted to be taken
Third-Mr Mcdonald will furnish the continuing
tify in double that amount and the company VIII at
to be approved by your Board of the value of 81 90
600, which, so far as may be necessaIY the cry
bond in case any liability shall arise thereon. Your
Board will then enqeavor to procure the passage OF
sit act by permitting the deposit Of securities salts
in lieu of the continuing bond and upon the passage
of such amending act you will accept the said
securities @ as deposit IN nj len & o said bond and WI"
execute as surety Mr.. McDonalds bond to secure
the performance Of the contract for construction to
trIction bnndameiX 81 50o oiIl he frnisbed
FifthThe said corporation will cause the 81 00o
cash required by the contract to be deposited with
sxthEA list Of the subscribers to the stock of
mitted TO your Board to be approved by it.
company 50 to be ormed viii cause the
| interest In the bonds tc be required of suh-con-
be- s aE ps the e6Ra the city W ana
Mcdonald shall upon the request OF the Board be
modified in accordance with this provision
Eighth-The said corporation will cause an addi-
tional 81 900 600 cash. the equivalent in securi
ties, to be deposited with the Controller be-
the Controller additional security for the per-
formance of the obligation of the sureties upon the
bond for construction.
If this plan meets with the approval of your
your request to modify the requirements of the
bond above stated. shall be prepared to
AUGUST BELMONT & co.
The Board adopted these suggestions without
a dissenting vote, and at once passed the fol-
lowing resolution:
Resolved That the president of the Board be
authorized to communicate August Belmont &
Co. the approval by this Board of the terms of
detail. if any as may be approved by the presi.
dent; that the president with such committee of
the Board he may appoint. present TO the Ieg1s-
ter. and that the counsel of the Board be directed
to apply to the Appellate Division for modification
of the stipulation given by the Board upon that re-
quirement of the Appellate Division.
After the meeting was over the Commissioners
explained some points that not wholly
clear. but refused firmly to divulge the names
of the men who are to become stockholders in
the construction company with Mr. Belmont
These names, they said, would come out later
and would be found to be among the best in the
city, financially considered. Their names are
known to the Commissioners now, and salts
factory. Rumor places on the list j. p. Morgan
Winslow Lanier & Co., Vermilye & Co.. and
several others of that stamp. 1t will be noticed
that Mr.. Belmont agrees to put up S1O00000
of securities and considerably more cash than
is called for in the original contract and that the
by allowing them to furnish 81 900 900 OF the
bonds referred to in Paragraph ".