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 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.  He foresaw from the beginning the importance of that branch of the work, and early in 1900, immediately after the signing of the contract, turned his attention to selecting the best engineers and operating experts, and planned the organization of an operating company.  As early as May, 1900, he secured the services of Mr. E. P. Bryan, who came to New York from St. Louis, resigning as vice-president and general manager of the Terminal Railroad Association, and began a study of the construction work and plans for equipment, to the end that the problems of operation might be anticipated as the building and equipment of the road progressed.  Upon the incorporation of the operating company, Mr. Bryan became vice-president.