New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-01
M'DONALD GROWS BOLDER
THROWS THE GUARANTY COMPANIES
OVERHEARD,
wINsLow. LANIER co. ASKED TO JOIN IN CIV
ING PERSONAL BONDS TO THE RAPID
TRANSIT BOARD.

John B. Mcdonald. the tunnel bidder. threw
the guaranty companies overheard altogether
yesterday and August Belmont asked the bank
ing house of winslovv, Lanier & Co. to join him
in giving personal bonds to the Rapid Transit
Board Edward winslow. head of the firm. told
a Tribune reporter that he had the matter I'M
der consideration row and would decide quickly.
Whether he agrees not, 1t seems evident that
the construction company which Mr., Belmont
is forming got so far along that all fear that
his bonds will not be forthcoming at the proper
time is removed from Mr.. McDonald's mind
II will sign that contract and build that road
without a doubt" he said yesterday with
tone of confidence In his voice which has been
lacking for the last few days.
The contractor seemed grimly pleased he
announced his treatment of the guaranty COM
panies. That they led him to believe before he
put in his bid that bonding him would be an
easy matter few who have watched the situa-
ton and know the cautious character OF the
can doubt. That certain ones tried TO
squeeze him after his $150,0O0 check depos
tied is generally believed and that Mr.. Melon
aid is glad to get rid Of them and their antici
pated commissions of nearly 81 900 900 is easily
understood. 1t was great surprise to the surety
companies of course. Representatives of sew
eral of them had met for conference in the Office
of the United States Fidelity and Guaranty
Company. They wished to agree upon their de-
mands for indemnifyng bonds They
sured that a construction company would be
formed. but they saw possibility that the tun-
mel and the road would cost more than S35,OOO-
900, the amount Of the bid. Against such pos
sibiiity this they wanted absolute protection,
1t is said.
APPEARS AT THE MEETING.
While the meeting was in progress Mr.. Nc
Donalds card was brought in by messenger.
1t followed Immediately by the contractor
himself. He said:
Gentlemen, wish to withdraw any application
that | have made, or that ANYBODY has made for
that we cannot agree upon plan for the transae-
thank Sou very MUCH oe the TIME S Mfrf IS
ness
The members of the conference looked at
one another for moment in silence. Then there
were some smiles, some informal discussion Of
the question with Mr. Mcdonald. and the meet
ing was over, there being nothing further to de-
bate.
Andrew Freedman, vice president Of the United
States Fidelity and Guaranty Company said
after the adjournment:
We much surprised anybody can be.
e aTf So 5So we StTi to GnH
and will be ready 10 listen TO Mr.. Mcdonald IL he
do not Know ms what M no az k psn s
with regard TO sureties but 1 do not believe that
his action in Withdrawing from negotiations
will interfere with his furnishing OF the bond that
is required of him.
The representatives OF other companies had
nothing to say
Albert E Boardman Of counsel for the Rapid
Transit Commission. made the following state
ment:
The stumbling block was the question of indemni-
Tying bonds. The per cent that the companies
would charge would not affect contractor. but
the additional charge that he ,Ould be under to
furnish a bond of indemnity would cost him too
much. This extra cost would make the bond
very costly affair If the construction company
shall be formed of men who qualify in twice
the amount Of the bond they may do so, and ii will
not cost the company cent II they do not care
to furnish all the amount of the bond they may
furnish half of it, and go to the surety companies
for the remainder 1 60 not see anything In the
action of Mr.. Mcdonald that should agitate the
Board OF Rapid Transit Commissioners believe
he will be able to meet all the requirements ana
sign the contract If not tina date when ne is due
do so. at the latest short time after that.