New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-03-08
GRAND JURY MAY ACT SOON
INDICATIONS THAT TT WILL NOT WATT
FOR GRANTS REPORT ON TH1RD-AvB.

REPORT THAT THE INVESTIGATION WILL
BE BEGUN ON MoNDAY-CHIEF Off
GALS MAY BE sUBPGNAED.
There are strong indications that the Grand
Jury will wait until March Il for District
Attorney Gardiner TO lay before them the report
Of Receiver Grant upon the condition OF the
Third Avenue Railroad. but will itself take the
initiative in probing into the dark methods by
which that great property was ruined. The
reported iN-natured criticisms ernanstiag from
the District Attorneys Office yesterday upon the
work or the special Grand Jury which found in
dlctnents in the Brooklyn Rapid Transit case,
added TO the feeling with which the public re-
CARDS the present District Attorneys STAFF seems
10 nave had its effect on George Haven Putnam
the foreman Of the March Grand Jury. for yes
terday morning he had a conference with Re
corder Gon and Mr. Gardiner and after the
Grand Jury had made its report for the day
MI Putnam had another conference with the
Recorder
In short time afterward IT was reported at
the Criminal Courts Building that the investi-
CATION Of the Third Avenue Railroads affairs
would probably be begun next Monday, but
District Attorney Gardiner would not tell which
one Of his assistants would have charge of the
presentation Of the evidence TO the Grand Jury.
II is believed that the District Attorney will
receive from Mr. Grant, the receiver, all the in
formation that Mr.. Grant can give before the
reports Of the expert accountants are submitted
10 the Circuit Court Mr.. Grant viii also send
to the District Attorney copies Of the full re-
ports OF the experts. It is thought the Grand
Jury will not be content with this report alone
but VIII subpoena the chief officials Of the com
pany, such Henry Hart. President Elias. and
also Edward Lauterbach. and members Of the
firm Of Naughton & Co, the contractors who
changed the motive power Of the road. Re-
corder Golf is said TO have advised Mr.. Putnam
that the investigation likely TO be q long
one, and II not begun soon would have TO be
handed over IN an unfinished condition to the
April Grand Jury. Subpenas may issue
once
NOT YET FILED.
An interesting fact came out yesterday from
Albany. where II learned that the report Of
the Third Avenue Railroad Company for the
quarter ending December 81. 1899. had not yet
been fled II is said the Railroad Commission
overlooked that breach Of duty because il did
not wish TO harass the company at time when
its affairs were in such a tangled condition"
Whether this is a valid excuse or not for the
Railroad Commissioners, it does not explain why
the company failed TO file the report. Edward
Lauterbach and Henry Hart refused 10 throw
any light at al the question, but perhaps
there ls some connection between the failure 70
file that report and the report that when Re
cefver Grant came 10 look for the Il .2S7 shares
Of the Dry Dock road. the 1929 shares Of the
Forty secord-st. road and the 10000 shaTes OF
the ''HuckIeberry'' road set out n former
reports a. assets Of The Third Avenue, he
found that they had been hypothecated for
loans. that Kuhn, Loeb & Co. held the Dry
Dock stock as security for 4 loan o. sl,S5QOv0,
originally advanced by the Mutual Life; thar
the Central Trust Company held the Forty
seconG-st- shares as security for another loan
and the National City Bank held 1890 Of the
''Euckleberry" shares for like reason. Mr.
Grant would not confirm this statement yester-
day. because he said II would not be fair TO the
property for him 70 talk about il before ne
made his report TO the court. He would not
deny it. however: neither would ne discuss an
other persistent run1or that Some Of the account
hooks Of the company are missing. Here is
good ground for the Grand Jury plough. Nj
Grant SAYS Il T. n PART # his -dur. I'd supp.
the missing report
EFFORTS TOWARD REORGANIZATION.
This hypothecation Of the stock Of the sub
gidiarv lines If true. VIII make he reor-anIza-
ton Of the mpany more difficult matter To
handle than it would otherwise be; nevertheless,
efforts 10 that end are quietly going forward,
and yesterday il was reported hat plan
raise S10OO0G0O with which TO complete the
unfinished work or The T0o6 and tide il over It's
present need had Deen -..--.l.a,~l w ,-- -Ie--
itors' Protective Committee, and might be
placed before the stockholders to-day for their
approval The exact nature Of tins plan could
not De learned, but IL was said that Kuhn, Loeb
& Co. would guarantee the 100000 under
certain conditions
Pending the completion OF the work OF ex-
anining the books under the direction Of Re
ceiver Grant, there is much speculation as to
the actual Indebtedness Of the company, and
as 70 the actual value Of It's real assets. The
railroad property has been valued al $50 100000
but Russell Sage is quoted as calling that "en-
tirely TOO high The amount necessary 10
complete the change OF motive power and
equipment has been placed al $4,000 G1; but
John D. Crimnins says that is too much and
Daniel F. Mcmahon, chairman Of the Executive
Committee OF Tammany Hall, and political
member OF the firm Of Naughton & Co.. was
quoted yesterday as saying:
If we GOT 100000 more from the Third Avenue
besides what has already been handed Us. our
outstanding bills would all be paid and would
be able 10 finish the contract.
4 Wall Street man who has faith in the re
Mobilization Of the company has compiled this
conservative estimate Of its fnarciaI debt:
Principal. Interest
Railroad s..