New-York tribune., 1900-01-30
BELMONT BEHIND BID.
L. l. AND B. r. T. NAY BE
WITH pDONALD. TOO.
BIDS SOON To BE CALLED FOR FOR THE
LONG ISLANDS EAST RIVER TUNNEL

S30OO0OOO contract. August Belmont admit
ted to Tribune reporter yesterday that the
noted banking firm OF August Belmont 8 Co.
had become Mr.. McDonald's financial agents.
and he added that when the construction COM
pany which he and Mr.. Mcdonald are organfz-
ing is completed full statement Of it's details
would be given out for publication.
There will be nothing to conceal about IT."
said Mr.. Belmont when once the matter Is all
cut and dried At present things in rather
an inchaotic state, and. Of course. under those
circumstances 1t would not be busnesslike for
me to discuss them in the newspapers"
Mr.. Belmont being a director of the Long
Island Railroad Company and also of the Brook
lyn Rapid Transit Company. the question was
Immediately asked. If either OF those COM
panies was to be. through him. connected with
Mr.. McDOnald's contract. Mr.. Belmont politely
intimated that If the reporter entertained that
opinion he would better ask the Long Island
Railroad Company or the Brooklyn Rapid Tran
sit people. Mr.. Belmont then took his leave
and the reporter took the hint
Clinton L. Rossiter. president Of the Brooklyn
Rapid Transit system, first called upon
and was asked: rs your company now OF is 1t
to be interested through August Belmont in the
Mcdonald contract?"
MR.. ROSSITER NON-CONIMITTAL4
'I prefer that you should ask Mr.. Belmont
Il
he said about it would be all right. Why don't
| you ask him?''
Il did ask him." replied the reporter. and he
| declined to tell"
| Then do t. said Mr.. Rossiter.
| will you not even deny?'' pleaded the
porter. that your company is interested with
| McDonaldT"
| Il must decline to speak Of these outside mat
| ters," said Mr.. ROssiter firmly. Il would not
refuse you interview on any matter con-
neCted with the actual management of the road.
but outside subjects. such as this one. I must
refuse to discuss"
| When Mr.. ROssiter's remarks were repeated
| to a who is pretty closely n touch with
street railway affairs in this city he said he
did not need any more emphatic confirmation OF
the report that Brooklyn Rapid Transit inter-
ests were after the Manhattan underground
road and that the substantial form Of the Stand
| ard OIL Company could be found without the
| aid of a telescope not far in the background
| President Baldwin Of the Long Island Rail-
way next seen. In reply TO the ques-
ton whether his road was interested directly
or indirectly in the Mcdonald contract he re-
] piled: mo; not now.
| Being asked if after the tunnel was construct
ed his company might not contract with Nc
Donald for the operation Of the road. Mr.. Bald
win said: THAT is long way ahead. We are
not interested in It now
How long will it be-" the r porter asked
before bids are asked upon the construction
of the Long Island Railways proposed tunnel
under the East River and tapping Mr.. McDon-
aids tunnel?'
II think shall ask for bids within the next
ten days" replied Mr.. Baldwin
You have no doubts about getting fran
chise, then?"
None. We viii get the franchise eventually.
I feel sure. The people of Brooklyn demand 1t.
and I glad to hear that Mr.. Belmont is be-
hind Mr.. Mcdonald. Mcdonald would now be
a most desirable bidder for tunnel He
could probably handle both tunnels at once.
more cheaply and expeditously, than any other
contractor in the business"
ONE GUARANTY COMPANY AssENTs.
Quickly following the announcement that Au-
gust Belmont & Co. had become Mr.. McDon-
AIDS financial agents came the satisfactory
news that one Of the guaranty companies to
whom Mr.. Mcdonald has applied for the S6.-
100000 Of bonds which he must give TO the
city, had become fully satisfied with the securi-
ties which August Belmont & Co. had put up
for Mr.. Mcdonald. and that the others were
likely to reach the same conclusion speedily.
It was the Croker Freedman concern-ths
United States Fidelity and Guaranty Company,
Of Baltimore-which first took this view. An
drew Freedman its resident director. announc-
ing after a long conference with Delaney
Nicon Mr.. McDonalds counsel. that his COM
pany had reached agreement with Mr. Nc
Donald to go upon his bond, although it had not
been settled yet he added what proportion OF
the S6OOOOOO his company would underwrite-
From another source IL was learned that the
reason why this proportion Is not settled yet, is
that other guaranty companies, besides the lars-
est three. have been asked TO assume a share OF
the burden and when they have all decided. the
proportions will be allotted Those who may
be expected 10 act are the American Bond and
Trust Company. the Guaranty Trust Company.
the National Surety Company and the City
Trust Safe Deposit and Surety Company. CT
Philadelphia. Mr. Nicou late yesterday after
noon assured a group of reporters that the
bond question was practically completed" and
that no reasonable doubt now existed that all
obstacles had been removed
A man who is closely identified with the guar
anty business in this city said yesterday that
the trouble over the bonds had not arisen from
any unreasonable demands the part OF the
guaranty companies. who willing 70 Un-
derwrite Mr.. McDonald's bonds at the usual
rates, but had arisen over the fact that the
financial power at the back Of Mr. Mcdonald
had been unwilling to give the companies
much security as they thought they ought to
bid of SS5OOOOOO is at least SS.OOO.OOO less than
the Rapid Transit Board calculated the road
would cost.
Speaking Of the proposed construction eom-
pany, this man said;
Mr.. Mcdonald has proposed company with
paid up In our Judgment that would never do.
We understand also that PRESIDENT OFT, OF tns