Act were rigid and forbade any solution of the problem which committed
the city to share in the risks of the undertaking. Engineers might
make routes and plans, lawyers might draw legislative acts, the city
might prepare contracts, the question was and always had been, Can
anybody build the road who will agree to do it and hold the city safe
from loss?

It was obvious when the surety companies declined the issue that the
whole rapid transit problem was thrown open, or rather that it always
had been open. The final analysis had not been made. After all, the
attitude of the surety companies was only a reflection of the general
feeling of practical business and railroad men towards the whole
venture. To the companies the proposition had come as a concrete
business proffer and they had rejected it.

At this critical point, Mr. McDonald sought the assistance of Mr.
August Belmont. It was left to Mr. Belmont to make the final analysis,
and avert the failure which impended. There was no time for indecision
or delay. Whatever was to be done must be done immediately. The
necessary capital must be 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.