Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-02-22
MAYORS BONDING COMPANY
FAILS TO ACT IN SUBWAY JOBS

accurately and wisely, but he doubtless
was unaware that while his two con-
tracts were 'in the hands of the bond
ing company" they could not get any
further than Mayor Smiths bonding
company. because other bonding compa-
MES do not care TO take the risk
In this connection also, It may be said
that while the cosurety on the other four
contracts--that is. the two big City Hall
contracts. and the Arch to Eighth and
Locust TO Eighth streets contrscts--are
scattered around in various amounts.
the greater amount in each is assured
by the National Surety-Mayor Smiths
concern.
MAYORS HANDCoME PROFITS
Ard. also he Il said. the Mayor gets
or has already got out OF these four
contracts the neat little commission of
at least $4,000 to S22,b0O. This means
for himself. predcated upon his ad-
mitted ownership of 80 per cent 9f the
stock OF the Thomas u. Smith Com
pany.
Meantime the Mayor viii lose him
self approximately $4,000 to 100000,
II the two Broad street subway con-
tracts Of the keystone state 'onsiruc-
tion company fail TO be consummaied
by other surety companies coming to
the Nationals rescue.
POSSIBLE LOSS or MILLIONS
Meantime. however. what does the Ma
tionsI surety company Mayor Smith =
conpany. stand to lose? Nothing more
or less than the difference In the bids
on the Two jobs, this about $6,0Oi.OOO,
and the cost the city viii or would have
to nav to have them carried out by some
other contractor Some contractors say
.4..sHt .af Ia l.I.f
and material a million dollars some
say two millions.
SUPREME TEST FOR MAYOR.
According to Interested observers this
ls the supreme test Of the Mayor--Does
he serve the city, Does he serve his
bonding company? or will he hide be
I hind the war?
II H. said that Director Twining is
hear and spuI In favor of enforcing
the keystone state Construction COM
panys contract. which means forcing
the National Surety ompany--the
MAYORS conCern---to provide bond or
on its own account go ahead with the
work
As to this. an official OF one of the
largest surety companies said We are
now on the bond OF the Keystone state
Construction Company for several hun
dred thousand dollars. We have no fear
of their not carrying out these particular
contracts. even under the present au
verse conditions. But il was under
stood with the National that we could
go no further. II seems strange that
the Smith company didnT arrange for
the cosurety before they entered into
the proposed bond. 1t looks as though
they are In hit bad. but II Is my
opinion that II the city does not enforce
a contract within slX months Of its belnf
awarded the bondsmen cannot be held.
This latter remark was significant II
true. fer the reason that these two con-
tracts were awarded TO the Keystone
state Construction COMPANY on or about
July % last year and We're accepted
by senator McNichol very shortly after
wards. 1t will be seen. therefore. thai
II the bonding mans idea il correct
only few days remain in which the
Mayors bonding company can l~ held
up to the contract,
At the office of the city Solicitor il
was said that this question had never
been adjudicated. but no opinion would
be expressed upon a hypothetical case.
Meantime, bond or no bond, Mr.
! Louchhelm, president OF the Keystone
! Company says that nothing can he don.
as material cannot possibly be obtained
and also, meantime, the city has jus
entered into contract for fifty year,
for the running OF the subway by tn,
p. X. T. when even the official" con
tracts for the building OF the yer,
: first tubes under Broad street have no
been let
There are those who say this is al
, the very least or very best silly"