New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-01-28
BONDS NOT READY YET.
WONDER GROWS THAT TERMS WERE
NOT SETTLED IN ADVANCE.
GUARANTEE COMPANY OFFICIALS REAs
sERT THAT THEY ARE NOT
SQUEEZING MCDONALD.

SQUEEZING MCDONALD.
AS day by day goes by and John B. Mcdonald
the successful bidder for the rapid transit con-
tract, seems far away as ever from getting
The guarantee companies to underwrite his
100000 OF bonds, the wonder grows that a
man accustomed TO carrying on vast enterprises
10 a successful conclusion should have omitted 10
make his terms with these companies before he
deposited his $4,000 check and assumed the
other liabilities which bidding entailed The
form Of contract had been printed for circulation
and also advertised long enough before the bids
were received to allow the solicitors OF any
company 10 satisfy themselves fully Of the exact
extent Of all the risks involved. Therefore many
persons believe, in view Of the fact that MI.
Mcdonald will not explain how he came 10 IAN
into such a trap. that an effort is being mace
by one of the surety companies at least 10
squeeze him.
strengthening this theory is the fact that 10
antagonize one Of these companies at least Is
10 antagonize the ruling powers OF Talnrhah!
Hall who can if they desire, make the "oIh Vi
excavation much more costly ana olllcu'' 'ii'.'
would be the case If their friendship Is retaheu'
Mcdonald is supposed TO have that rlehoSiip
now but il is slippery thing TO hoiu' anu ~
,aonle were surprised 10 hear him assert so IRE
nnnnflV
Zen accented that no member of Tammany han
- =. .bore IN the enterprise. IT was argued
-. r-o-,ranv's leaders would hate 10 see
co. ooo 900 maid out for any purpose without
80 having g finger in the pie, and this pracu-
-, boldun by the surety companies is looked Oh
s. ,,onx As the method Tammany has chosen 10
insert that finger
THE CONSTRUCTION COMPANY PLAN
,,-,.,. che three guarantee companies involved
80 in declaring that they are not squeezing
Mr. Mcdonald they also all admit that ne mas
nor accepted the terms upon which they oner
20 underwrite his bonds After dickerlng with
them for some days, Mr.. Mcdonald asks and re-
ceives an extension of the time limit until ten
DAVIS from yesterday, and makes the announce
rnent that he will get up a construction COM
pany TO build the road; and at the same time
the Rapid Transit Commissioners. who are in
thorough sympathy with Mr.. Mcdonald. and
anxious for him TO qualify, take pains to tell
all reporters that they are just as ready to ac-
cept good personal bonds those Of any guar
antee company.
The construction company being formed,
shares of its stock would be given by Mr.. Nc
Donald to certain individuals. who would un-
derwrite his bonds. Some persons think TINS
idea is a bluff" the part Of Mr.. Mcdonald
TO bring the guarantee companies to terms on
pain Of being left out of the deal altogether II
they are not more reasonable On the other
hand, II is pointed out that MI Mcdonald Wouiu
be obliged to give up probably as much or ms
profits to these individual sureties as to the
companies. Some, indeed, think the suggestion
came TO Mr. Mcdonald from one Of the guar
antee companies whose friends want some Of
the stock OF that construction company without
the disadvantage Of any publicity attending
their ownership. Stock can be held in trust in
these days for favored individuals in several
secret ways
Whichever of these theories be true certain
Il is that Mr.. Mcdonald and his counsel, De
Lancey NicoI spent a large part Of yesterday
afternoon in conference with the representatives
Of the PIatt, the Freedman and the American
Surety companies. and when they separated for
the night all that Mr.. Nicol could say to the
waiting reporters was that the prospects of a
speedy agreement are exceedingly bright" Mr.
Mcdonald referred aIl questions TO Mr.. Nicoll.
Another conference will be held on Monday.
HITCH OVER THE SECURITIES.
President Lyman Of the American Surety
Company said the disagreement not over
the commission, but over the nature Of Mr.
McDonald's securities H. B. Platt said the
same thing. adding in answer to q direct Ques-
ton a positive denial that his company or his
friends wanted any stock of the construction
company.
Andrew Freedman said:
Matters are now in such shape that there is no
probability Of hitch. Mr.. Mcdonald is reasonable
viii interfere with the progress of the rapid
transit movement This company expects to have
Its share OF the bonding OF the contractor. The
matter will be settled in a few days from now.
President Orr had not heard anything from
Mr. Mcdonald yesterday. There will not be
a meeting Of the Board he said until there is
something 10 meet for. In the mean time
far as 1 know, the work is progressing very
satisfactorily. Undoubtedly a construction
company will be formed to dig the tunnel and
construct the road. After this work has been
done the road viii be turned over to a sub
lessee TO operate. I understand that the con-
struction company is now in process of forma-
ton, and the complete organization will be
ready TO take up the work before the time for
signing the contract has expired"
No clew could be found as to who will Join
MI Mcdonald in the construction company.
The rapid transit amendment to the charter
mat was passed in Albany with the assistance
OF an emergency message from the Governor
reached the Mayor yesterday morning Under
the law he cannot give public hearing on the
measure in less than three days after receiving
the Dill for his signature. The Mayor has set
Wednesday morning at 1920 o'clock as the
Time Tor public hearing in his Office This bill
provides for the issue Of the bonds for the
work OF building by the Board of Estimate and
the Controller without consultation with the
Municipal Assembly.
COST OF LAND FOR BRIDGE AppposCuPo
The investigation of pans for The .o
nrloges across the East River which the rar,rno,,
administration Is anxious to have built has con-
Flhceo some Wei informed persons that the raasor
i 'ainihahy interest in the plans is mainly dine IN
-, a'io1 'iat large fortunes can be made bv
ieaL estate operations depending upon the oo-drn