The new
corporation was to execute as surety a bond for $4,000,000, the
additional amount of $1,000,000 to be furnished by other sureties. A
beneficial interest in the bonds required from the sub-contractors was
to be assigned to the city and, finally, the additional amount of
$1,000,000, in cash or securities, was to be deposited with the city
as further security for the performance of the contract. The plan was
approved by the Board of Rapid Transit Railroad Commissioners, and
pursuant to the plan, the Rapid Transit Subway Construction Company
was organized. The Supreme Court granted the application to modify the
requirements as to the justification of sureties and the contract was
executed February 21, 1900.
As president and active executive head of the Rapid Transit Subway
Construction Company, Mr. Belmont perfected its organization,
collected the staff of engineers under whose direction the work of
building the road was to be done, supervised the letting of
sub-contracts, and completed the financial arrangements for carrying
on the work.
The equipment of the road included, under the terms of the contract,
the rolling stock, all machinery and mechanisms for generating
electricity for motive power, lighting, and signaling, and also the
power house, sub-stations, and the real estate upon which they were to
be erected. The magnitude of the task of providing the equipment was
not generally appreciated until Mr. Belmont took the rapid transit
problem in hand.
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