Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-02-22
Continued from PAGE One

N'''s""fu tfbth thEf but
& Mclsaacs. a New York Chicago con-
cern. declined TO enter into n contract
fSr section on Broad street. Arch TO
Locust street, with subway station,
for which they were low bidders. The
amount was seA2O.oOo
At conference the Mayor agreed TO
rescind these bids and no attempt was
made to hold the bonding companies on
the proposal bonds.
But, at this time senator McNichol
aud Jerome IT, I.ouchheim, the latter
president 90 the Keystone state Con-
straction company. took different atti-
tude---a sportsmanlil,e attitude, ~ was
said at the time. aud agreed to sign
contracts according to bids as originally
put in several months before.
SMITHS DUAL RELATION
Herein enters what looks like very
serious embarrassment for MI Thomas
- Smith. in his dual rol. of Mayor OF
Philadelphia and controlling stockhoider
Ia company bonding municipal con-
tractors.
INC 'ODlTHflS d"tlufh ~ NV my
stcue state Construction Company were.
besides those mentioned above. one OF
Locust street. Broad to Eighth. and one
on Arch street. Broad to Eighth. These
totaled SL7l3.7li and Slb7a,76o, re-
spectivelN. The bonds required were 30
per cent. ana a penal bond OF 10 per
cent,
The National Surety. represented by
the Smith company. had already bonded
the keystone State Construction Com
pany for the two big contracts for
work under the CuN Hall. totaline
something like $ib0N,09 and had oh
IA ined rGsurety from other bonding
companies for the protection Of the city
in this big undertaking. BE it explained
that the National Surety Company has
the authorization with the United States
Government. and the city OF Philade pha
as well. TO undertake maximum bond
Oh any one contract of only slightly
more than s5O0,ooO.
1t became necessary. therefore. botl
az a matter of ordinance and of goot
underwriting to obtain cosureties FOL
the additional subway contracts. 1t
I the matter of the Locust street and
/ Arch street contracts-the smaller one'
the Thomas B. Smith Company tool
I In the National the Aetna. OF Hart
ford Fidelity and Deposit and Mary
land casually Companies or Baltimore
/ Tor surlcient amounts to make mp tn
/ contract aud penal bonds
The bigger contracts on broad str..
/ TO Pine and Broad street to Buiton
/ wood did not appeal To the other bond
! Ing companies. and have not appeHle,
( to this date. though they have ali bee,
! lmportuned to 60 I'm with the National
I The bond which is reouired nm eacl
/ of these contracts is in the nelehbor
maximum accountability of four or ny
! of the very largest compan,es Thes
have not been forthcoming.
.. .
h'Nhl.\' ''N' EfN 'N' TIoN
The manager Of one Of the large bond
ing compa anies said today:
YES. we were mportuned to go o.
/ these bonds but our home office had &
decline. The financial statement of tn
keystone State Construction was excel
lent for the contracts they already ha,
on hand. but you know conditions ar
now very perilous indeed. and il require
ai 49, ~, y, ''"'L ooo nn o'' 'o''
Besides YOU must remember Senator Nc
Nichol il dead and his ur.sence and ac
tiyitv meant n great deal to us bondiu
men when considering "A phIladelphI
municipal contract"
This remark was particularly ilIun
mating i'm connection with a subseuIen
side remark TO the effect that his com