The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-13
PROFITS OF ELECTRIC SUBWAY
ADD IS 4 LAMP 4 YEAR TO ELEC-
TRIC LIGHT COST.


cIudes discount on Bonds and Patents
-SubpRna for Alderman Ganney'sWife
The legislative investigation into the
lighting situation here took another turn
Yesterday when Charles r. Hughes. the chief
lnqulsitor, began TO delve into the Affairs OF
the conduit companies whose ducts are used
by the New York Edison Company 10 sup
ply current 10 street lamps and private con-
sumers. One Of the witnesses, William j.
Seton, secretary and general superintend-
ent Of the Consolidated Telegraph ard
Electrical Subway Company, was not fertile
soil Mr. Hughes, with characteristic per-
sistence, kept digging until he got, In one
form OF another, the information he sought.
The examination OF this witness brought
out again strihngly how the senior counsel
of the committee has mastered In a few
weeks the intrcacies Of the lighting busl-
ness in this city. From the day the inyesti-
CATION began he has never been lost for
moment in the maze Of millions, Some
idea ~ the size Of the job may be- obtained
from the fact that the Affairs Of thirty-one
companies which go TO make up the com
hine are involved, beginning with the or
gam zation of the old New York Gas Light
Company in 1923. All these corporations
ara controlled by the Consolidated Cas- Com
pany but many of them still preserve
their corporate existence, with the conse-
quent complex system OF accounting.
Under Mr. Hughes's questioning their re-
lation to the parent company has been made
clear TO the committee, and the difference
between actual investments and paper
values has been spread in detail upon the
record.
When il came to the electric light COM
panies Mr.. Hughes did not have TO depend
entirely on his own resources. Associated
with him as junior counsel is Gustavus T.
Kirby, a young lawyer, who also has the
advantage OF being an expert electrical
engineer Mr., Kirby was graduated from
the school Of mines at Columbia before he
took up the study Of law. He has kept
out Of the limelight since the quiz began,
never asking question Of any OF the wit
nesSes. But he il constantly at Mr.. HuRhes's
elbow. and under his suggestions evidence
of the highest Importance concerning the
cost Of production and distribution-the
real purpose Of the investigation-is de-
duCed.
Mr.. Soften testified that the cost Of con-
struCting the conduit subways up 70 Dec 81,
1890. was S5,G75,0OO. Mr.. Hughes then
produced the statement ~ the company
10 the Comptroller that the cost Of con-
str,iction up TO that date was ts,3l7,795.
How do you explain this discrepancy
he asked
the report. Mr. Middleton knows about it
But he did not come to the company
until 1903, and you have been with them
Il can't explain the difference. never
kept the books.
Mr. Middleton succeeded in straighten-
ing out Tho tangle. He said the construction
account vas actually over $1,000, 90 and
to this s''n was added 81 ISL. 500 for discount
on bonds sold which the company would
have to redeem at par and 1882 500 for
patents.
Edwin r. Quimby, the engineer Of the
COMPANY testified hat il cost a little over
5000 a mile to build the suhways in 1889
and only 5000 TO build them in 1891 Mr..
SETON was recalled and asked to explain
why there should be such a difference.
He Said he did not know
Can you give us the name Of any one
who does?- queried Mr.. Hughes.
no, most Of them are dead WINS the
answer.
The chief inquisitor then read the testi-
monv Of Mr. Seton concerning the cost
OF reproducing the subways which he gave
before the state Tax Board several years
you seemed to know something about
the cost Of this work then. How is II that
you are 50 poorly informed now
The figures gave then were furnished
TO me by the engineer
"Has anything become fixed in your
mind since you became connected with
this company OF do you have to depend
on others for everything" asked Senator
Page.
the witness.
what is your salary?" asked Mr. Hughes.
Tho witness hesitated and Lawyer Bearisley
Of counsel for the lighting companies jumped
to his feet Il object TO this question,
he said. 1T l. not material to the invest-
cation what salary he gets.
Doesn't he know what salary he gets?'
inquired Senator Page Mr.. Seton finally
said that he receives S. 900 a year.
General Manager Lieb Of the New York
Edison Company testified that this corpora
ton paid 81 OO6 a mile rental for subways
which made the cost about S. a lamp n year.
What would the rental be II you Installed
the series system Of arc lighting instead Of
the independent asked Mr.. Hughes.
1T would vary between SIS and $50 a
year.
YOU furnish light cheaper than YOU do now?'
mo" answered Mr.. Lieb and he added
that the series Aystcm had been abandoned
in New York,
for subways poid by the Edison company
last year amounted to Sf7s, 722. The Edison
company owns 81 500 900 Of the stock OF
the Subway company and had lent II on
debsnture bonds t3379OCo in the past five
years. The accrued interest on these
bonds is t7S8OOO
The Investigation Of the Affairs OF the
subway company may have a hearing
on an action now before the courts. 40
cording 10 the terms Of the original CON
tract the company agreed 20 pay the city
all it earned in excess Of 10 per cent. OF the
profits computed on the cost Of construc-
ton Thus far the city has got no rc-
Turns and the question largely turns on
whether the company has the right 10 in
oludc in the cost Of construction the dis
count Of it, bonds, t2375OOO Of which were
sold ut 90 and t2375OOO at 30. suit for
an accounting he gun by the city Is pending.
Among those for whom subppnas have
been made out Is +. l. Gnffney, treasurer
Of the New YORK Contracting and Trucking
Company. This is Elsie Irene Gaifney,
wife of Alderman Gaffney. At his request
the subpoena was not 70 rived. He promised
ha WOULD uroCuor his wife Wbencvpr no