New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-03-04
TALKS WITH DIRECTORS.
HENRY IDEN AND ALEXANDER HADDEc;
GIVE THEIR VIEWS OF THE SITUATION.

TALKS WITH DIRECTORS
HENRY IDEN AND ALEXANDER MADDEN
GIVE THEIR VIEWS OF THE SITUATION.
y don't believe a Grand Jury investigation OF
the Third Avenue company affairs would reveal
anything criminal on the part of the contractors
or officials said Henry Iden. for several years a
director OF the company. at his store, No 40
University Place. yesterday afternoon.
1t does not need receiver to make II certain
that there was Encouragement of the company
finances continued Mr.. Ide1 and there were
many complaints on the part OF the directors at
different times about the money that was being
spent Mr.. Hart held peculiar views, and as he
was prominent stockholder in the company I
attribute the company's nisfortunes to a large
extent to his influence. Months ago I took the
liberty Of suggesting TO Mr.. Hart that he sell
some OF his immense holdings in the company, as
the stock at 80. I showed him that there
were many obligations OF the company coming
due and that ought to be in shape to meet
them Mr., Hart became indignant at once. The
result was that large part OF his stock was
thrown upon the market at one time and the re-
suit was apparent when the stock began to drop
ten points at a time"
Did you as member OF the Executive Com
nittee, approve the contract with Naughton &
Co ?" Mr.. Iden was asked
/ never was consulted about the contract
Had known OF the insertion Of the clauses for
payments Of 10 ard Is per cent to the con-
tractors should certainly have protested
against them. The Executive Committee did not
hold frequent meetings. and when we did hold
them they were usually very brief The con-
tract matters were left usual thing to MI
Hart Mr.. Elias and Mr. Lauterbach. They rep
resented very large holdings Of the stock Not
Wlthstanding the tremendous expense the com
pany was under in changing it's motive power
and purchasing allied lines. think there would
have been no crash If Mr.. Hart had not thrown
his holdings on the market all at once How
ever things are not so bad as the newspapers
try to make out, although they are bad enough
The stockholders and the receiver can do all
the investigating necessary. The quick advance
in the stock today shows that the people are
recovering in a degree from their hysteria-
am confident that the stock Will be as high three
years from to-day as II ever was, and in five
years it will be the best railroad stock in the
city. Its perpetual franchises make it a stock
with a bright future ahead Of it.
Have you heard II said that Mr. Iauterbach
received excessive fees as counsel 20 the road"
Yes" said Mr.. Iden. but those reports are
only rumors. AS I said before the receiver will
straghten out all these irregularities and II will
not be long before the road is on solid basis
again"
DR.. Alexander Hadden. another director Of the
road, said.
The , 5.oqbs Is due almost wholly to the ire
amount OF stock dumped on the market ali az
once by Henry Hart. At the time the Naughton
eompd b Es sex o ana wt tie neg enqy
Hart the vce-president, heId about sixty thousand
shares Of the entire issue Of $4,000 shares The
Emory estate ana the Remsen estate are also
large holders M Hart had great deal Of MS
for buying Third Avenue. Mr.. Elias and Mr.
Lauterbach tried 20 head him OF but they could
not stop him. Within the last few months he mad
decline and Mr.. Hart could make up his mar
gins the bankers began swoop down on him
and then they threw him down. Mr.. LauterGach
urged Kuhn. Loeb Z C0ato take Mr.. Harris stock.
been heavy loser. but probably more than any
other ne IS responsible FOR the present cond!-
ton OF the roads affairs.
DR.. Hadden said that Mr. Lauterbach's ex-
penses as counsel 10 the company during the
fight over the Ford franchise bin at Albany last
winter were extremely heavy. and he ventured
the guess that the Metropolitan people spent
nearly 5000 600 IN the fight.
John Z. Parsons. the well known lawyer a d.
rector in the company, was not al his office yes
terday. but his friends said that he had openly
asserted that he had never seen the Naughton
contract before i was executed
Samuel Riker. who went into the directorate
OF the company November % 1898. before
the Naughton contract went into effect. said
that he could not say anything about the condi-
tons Of the contract, because he never saw IT,