The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-02-24
THE BROADWAY FRANCHISE.
FOshay Tells What He Knows of the Matter,
and Denies Any knowledge of Corruption.

New YORK, Feb. 23.-For the first time since
the Albany Senators began to investigate the
mystery which surrounds the granting of the
Broadway franchise the courtroom in which
the sessions are conducted was not crowded this
morning when Senator Low called the commit
tee to order. Perhaps the reason for the small
attendance was the absence in the newspapers
this morning of the announcement of startling
disclosures which would be made. Clarence A.
Seward conducted the examination Of wit
nesses, Mr.. Conkling being absent.
"Where is Mr.. William Malonyl" he inquired,
as he looked over the room.
''Mr Mallory is not here" replied Mr.. New
comb, his attorney "but will be here in few
days
James w Foshay president Of the Broadway
81 Seventh-avenue Railroad Company. on being
recalled stated that of the remaining $500 900 of
the second mortgage bonds, M. M. White pur-
chased $50, 900, Jeremiah Curtis 100000 Geo.
Zoe $4,000 Isaac Brokaw $4,000 and George
| Curtis $50, 900. The money received from the
bonds was not entered on the books of the Sew
enth avenue railroad company. 1t was placed
with a safe deposit company. When asked how
it happened that entry of the 5000. 600 was not
| made in tie books of the company, the witness
replied that the book keeper was ill about that
time, and the matter was consequently delayed.
The company expected to use the money within
few days, and for this reason did not deposit ia
bank.
do you mean to say that your book keeper
was sick from Aug. 4, 1884, to June. 1857
Yes, SIR He was sick during that period,
and has not ever yet been able to return to his
duties"
Chairman Low-'The committee would like to
have you give any other explanation you wish as
to your reason for depositing this $500. 900 in
bills with safe deposit company instead OF IN
bank"
Mr.. Foshay-"I have no other explanation to
offer than that we chose to deposit them as we
had right to do"
Mr.. Sewell-"Have you recently made trans
fer of the capital stock of the Broadway and
Seventh avenue roadV
Mr.. Foshay-"No, sir. No transfer has been
made The stock still stands in my name"
be then stated that An agreement had been
made by which Messrs. Rodman, Weidman, Elk
ins and Kimbel of Philadelphia. should be al
lowed to purchase block of stock of about ten
thousand shares The witness explained that
the Union Passenger Railway Company was a
Philadelphia company, which proposed to lease a
number of street railroad lines in this city. The
Metropolitan Surface Railway Company organ
Houston Street & Pavonia railroad. 1.-THE gem
temen comprising the former company" contin-
ued Mr. Toshay ''seem to think that they can
run railroad better than can. and propose
| to come here and show us how to do it"
"Have you ever heard of the Union Construc-
ton Company"
II have heard of the Union Passenger Rail-
way Company, but not Of the Union Construction
Company"
did the latter company make any PROPOSE
ton to lease the Broadway aud Seventh avenue
ralroad9"
''Such proposition was made"
what were the terms proposedg"
1.-The proposition was to lease the road for a
term of years. condition that we would guar
antee dividend of per cent on the capital
stock"
WAS the proposition acceptedp
mo; when the matter was brought before the
board of directors, it was rejected"
Mr.. Foshay at this point said he desired to
committee refused to hear Mr.. Bliss after the
adjournment gave it to the press. The text is
as follows
81 desire to state that all I did with reference
to the Broadway grant was influenced solely by
my duty as an officer and stakeholder of the
Broadway and Seventh avenue Railroad Com
pany. believed that a road on Broadway not
tributary to the Broadway and Seventh-avenue
road would ruin the latter The truth of this
belief is shown by the fact that while there has
been great increase in the receipts, as | have
shown, of the Broadway and Seventh avenue
road, the University place line is not pay
ing its expenses. l have nothing to
do, directly or indirectly, with any payment
10 the DOarO Oh Atuerm0D, ana nave no knOWl-
edge that any such payment was made, and in
saying this mean to cover any transfer of any
money, bonds or property to any of the alder
men. / have no interest in the Broadway sur
face road, and could not be benefited by it, ex-
cept as an injury to, or benefit to, my Broadway
and Seventh avenue stock. which might come
from such an arrangement. l wish to call at
tention TO the fact that the city gets by the
Broadway grant $50 600 per annum. which is in
terest ON $40, 900 of the city debt. but be-
sides that amount, the cleaning of the streets,
the removing of snow, the keeping of the pave
ment in repair, will save the city $40 900 a
year. The whole payments now being made by
our company In respect to the Broadway sur
| face track are more than equal to the 10 per
cent of our gross receipts for the of the said
tracks. we estimating that the gross receipts of
our road will be increased ST. 900, 900 by cars
running over tracks of the Broadway road and
the result shows that the increase will not ex-
coed 500, 900 per annum."
He understood that the commissioners who
were appointed and who awarded seventy miles
of streets to the cable company. only required
that company to pay q per cent of their re-
ceipts. He thought his company paid to the
city as much as all the other city railroad com
panies combined, and that sum would increase
when, after five years, the road had to pay 5 per
cent of its gross earnings instead of per cent,
| as at present.