procured, the required security must be
given, and an organization for building and operating the road must be
anticipated. Mr. Belmont looking through and beyond the intricacies of
the Rapid Transit Act, and the complications of the contract, saw that
he who undertook to surmount the difficulties presented by the
attitude of the surety companies must solve the whole problem. It was
not the ordinary question of financing a railroad contract. He saw
that the responsibility for the entire rapid transit undertaking must
be centered, and that a compact and effective organization must be
planned which could deal with every phase of the situation.

Mr. Belmont without delay took the matter up directly with the Board
of Rapid Transit Railroad Commissioners, and presented a plan for the
incorporation of a company to procure the security required for the
performance of the contract, to furnish the capital necessary to carry
on the work, and to assume supervision over the whole undertaking.
Application was to be made to the Supreme Court to modify the
requirements with respect to the sureties by striking out a provision
requiring the justification of the sureties in double the amount of
liabilities assumed by each and reducing the minimum amount permitted
to be taken by each surety from $500,000 to $250,000. 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 rolli