New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-05-22
GAYN0R HURLS BOMB.
ATTACKS UTTERED STOCK
Belmont Replies to Philippe on
Corporations at CiUic Dinner.

An attack by Justice William J. GaynOr on
the stock watering methods Of railroad cOmpa-
nies and other public service corporations Gre
ated excitement at the dinner given at the Park
Avenue Hotel last evening by the New York
Civic Federation to the members Of the investi-
eating committee of the National Civic FEEDER
atoms commission public ownership, who
sail to-day to study conditions in Europe. JUS
tice Gaynors speech was almost like bOmbsheIl
To many persons in the room it seemed TO be
directed at August Belmont. president of the
Interborough. who sat at the presidents table,
and at II. III. VreeIand, president Of the New
York City Railway Company who sought the
cooler air of the corridor soon as the ap-
plaue ceased. Mr.. Belmont arose and made a
spirited reply.
He said that he wished to repudiate in most
unqualified terms" the insinuation that he or his
associates managed their corporations 'in any
other spirit than that of honesty" He sUg-
gested that his critics should seek the real
facts as zealously as this commission will seek
them"
Justice Gaynor followed other speakers who
had nice things to say about the committee Of
investigators and about their missiOnS abroad.
Nobody suspected when he began hisSspeech
that he had a bomb in his pocket He praised
the Civic Federation saying it made exchange
of sentiment possible between such men OF op-
poste opinions as Mr.. Belmont and Mr. Com
pers He said he believed that good would come
of the inquiry to be made by the committee and
that ultimately the understanding reached by the
Civic Federation regarding questions Of muni-
cipal ownership would be the understanding
arrived at by the public at large.
The agitation for municipal ownership he
continued. has not been due 70 any hostility to
private capital to hostility to the private man
agement Of public service corporations. The
live coal in the community was neither origina-
ted nor famed to flame by any such hostility.
but by the mismanagement of such corporations
IN the watering of stock. capital doubled and
trebled again and again. The community can
not look on such conditions without feeling for
the moment and finally without action"
FREE GIFTS TO CORPORATIONS.
The worst of it was. Justice Gaynor said, that
it not the capital of the corporations that
was being heaped up, but it was really the value
of the franchises which had been given to the
corporations free gifts OF enormous value. and
there seemed to be no limit to the expansion.
The watering process was increased. he said.
with every combination as companies drew TO-
gether. Turning toward Mr.. Belmont he said
there was dishonesty in such proceeding.
Here we have great merger announced for
900 years" he said. Can we really stand 1t so
long? Rather for nine years. should say"
at this reference to the Inerborough-N Metropolis
tan merger apparently unmindful Of the laugh
ter and applause which filled the room. Justice
Gaynor went back to the subject Of stock water
ing saving that the increase of capital based ON
public franchises was made a perpetual tax on
the people at large and was dishonest enough
TO shock the sense of a God-fearng community
Then he declared that every railroad in the land
was public highway, continuing:
Tn. .iron highway from here 20 Buffalo Is as
much OF a public highway as any dit road. The
htiil!ng OF public highways was the work OF the
80 r.t5i Ihe railways we.e huit Oy private cspi-
al There has been no public hostility to the use
Fl Fn Pssif bos,y S aCW IS due to The fact that the cor
poation have come t. resSTa the the Fai,ToSds "a ,s as
Interests, and second for the public service.
PEOPLE MAY TEAR DOWN RAILROADS.
As pubyc highways the railroads have no right
eis for S Gse s9Pr bs, 6u5 s5 Raf ba1 Tne SS So,
paid by another shppeI WI@' WI MOuiu ,NS nnNS p ndp-
b en allowed TO drive twice many cattle through
Go5i t2sa!e at the oI sae O cost ha people would have
torn down the toliSate the rate dlscTlmination
s5,re %n S OF the railroads we shall stop the dis
crimiaotion. Ieaceaoly II we can but we shall
stop IL.
I would invoke blessing ON the President Of the
United States. who has looked at this question
Of Congress to il when else dared to do IT,
who has forced Congress 70 action on Il and 20
the ills of rate Discrimination. but Il will have
lasting effect and the greatest good viii come from
the education Of the people themselves.
Justice Gaynor closed his speech with the
expression Of hope that the committee Of In
vestIgators would bring back facts that would
be the basis Of just solution OF the question
OF municipal ownership.
Mr. Belmont spoke OF municipal ownership
first and then went at Justice Gayuor. as fol-
lOwsA
did not expect when I came here this evening
that any argument would be advanced on this sub
ject. l do not think that it would be delicate on
my part To answer those arguments that have been
advanced I could do so and I should very much
like to do SO. ! would like to have those men who
have preceded me this evening. who have resOrted
Continued seventh page.