The sun. [volume] (New York [N.Y.]) 1833-1916, 1891-07-31
BIG RAPID TRANSIT SCHEME.
IT WAS TO GATHER IN ALL THE NEW
PORK CTTY FRAyCHIsES

Mcmahon Says He Thought and Bought
Notors-wM the Syndicate Take the
UNDERGROUND Railroad Jobs
The suit brought in Boston against James
M. Waterbury By William Mcmahon OF Rah-
way. which involves million dollars worth Of
gilt-edged securities and other matters OF In
terest. was discussed here yesterday. Mr..
Waterbury said he didn't know Mr.. Mcmahon.
and had never heard OF MIN. Mr.. Mcmahon
said Mr.. Waterbury wasn't the FIRST man who
had attempted to throw him down that way"
and wouldn't be the first man whom he had
compelled to honor contract honestly made.
In tho story Of the suit. which was printed In
THE Bun yesterday. 1t was said that ST. 900. 900
in securities were deposited with tho Old
Colony Trust Company in Boston. to be de-
livered to persons named when certain bills
pending in the New York Legislature become
law"
This and tho fact that the suit wns about
some sort OF rapid transit scheme was all
that came out in tho Boston court.
Mr.. A. L. Atterbury. Mr. Wsterbury's coun-
sci. said yesterday that Mr.. Waterbury had
hnd on hand project Of important dimensions
in the rapid transit fold In New York
city. He was tho head OF q syndicate"
said Mr.. Atterbury. and rs the head
OF that syndicate no agreed to pur-
chase stock In q corporation that should in.
clude all the old rapid transit companies. pro-
vided they had certain rights and franchises
or procured certain rights and franchises
which advised them were necessary. all
within certain time. Those franchises and
rights were not secured. hence no stock was
purchased. and the scheme fell through. Tho
plan to form the big corporation was ono Of
Col. Hazards. the well-known engineer. who
has been associated for many years with rapid
can 'I assare You that Mr. Wat s j DOESN'T
know him. He knows nothing about him and
81 wy he the SUIT
Mr. Atterbury said that Mr.. Waterbury and
transit. They were simply after the com
pantes and the rights. and then. whom. they
the hsr scheme a
AFFAIR." No. 1t wasn't: was anything for rapid
The question had been suggested By a min
the tor Of mir. Atterbury's bookcase .The feed
head. and the troileys we're on level with the
platform Of he ear that stood on the tracks.
sSid 1pEs
he said 1t was put with the company last Jan :
the the STOCK to that was to be issued When the
conditions Of the contract with the syndicate
sfssa cut ,h The ms aas ae.
post. Mr. Atterbury refused to tell the name
He doesn't know me Ell" said Mr. Nc
Mahon. when the reporter called to AJAX what
viii SIni fts s n S S atsr but T can't
talk about It WITHOUT giving away my case. az
1000 70 Il
We will see whether he can get out OF it by say
ing he doesn't know me. Ali can say is this;
thai did vas on liz orders q Mr. Watsr6pry
Of hss
over. that's all Ii isn't the first time it's been
done and II isn't an easy thing to do success
.Tersistent questioning brought out that Mr..
McMahon's work. or part OF 1t Mt least. was
trio scheme that was feasible. He says he en-
perimented and bought motors and other
s.s TN pr h
carry It ont would b iorthcoplne twas not
What bills were to b passed: and had your
contract anything to do with that" the re-
said Mr qS
IL , was nR e saa sd t. fTpdG{sa
IT. On .Rs Cfdls H. @
the motor; he sS Ina Il sa, ys
! forty-ton affair. and 1t was a success. He
would not explain what he meant p saying
| over. But friend In tho same building: 4O
| Wall street. said that It would not be hard to
| prove that Mr.. Waterbury and his associates
| were behind the present scheme for rapid
| transit. and that they would bid for and prob
| ably get the privilege OF building the under
ground road. and in doing 1t would use ideas
belonging to MI. Mcmahon. This same friend
also said that a. part OF Mr.. McMahons con-
tract with Mr.. Waterbury. or Mr.. Waterbury's
agents. was to organize certain companies
This he did. The suit which was begun In
Boston on Wednesday. the friend said. Is only
one Of three.
They refused to talk about the case.
Mcmahon Is o sueculator. He says he organ
lied the company to build spbways. and after
ward organized fifteen smaller telegraph and
telephone companies TO- occupy them. and by
means OF these companies forced tho Western
Union and the Metropolitan Telephone Com
peny to pay a great deal OF money to get pos
session OF the Subway Company. Whom the
latter company got the money. McMahon says
| thing He says he fought them through all the
courts. and finally got his share of the money
He said yesterday that the present case Ii
similar to the subway case.
Mr.. Waterbury is President Of the National
Cordage Company. and Is several times mil
lionRlro.