New-York tribune., 1907-11-28

ple paid the interest. but did not know whether
they would he able to raise the money 20 purchase
the bonds under this option.
After election they found that without taking
this option they could get tho bonds for little
less money so in February 1874 of the bonds were
taken over at about $3.50 each. To DO this, the
company borrowed Sl,257 800 from the Knckerbocker
Trust Company notes for year. Within that
the whole financial situation hettered, Colonel
Williams continued and 1t seemed advisable TO sell
the bonds at a good figure and pay the knicker-
booker its money. On the first sale Of the bonds
the Hollins firm received S1S5.0o commission paid
in Brooklyn Rapid Transit per cent bonds.
In September, 1907 the Brooklyn Rapid Transit
company bought go bonds at $500. and in December
81 $50 In June OF the following year these were
written up IN value the company books $at'o2o
This increased the companys assets a. the end OF
the fiscal year. Colonel Williams didn't remember
the details OF that transaction, but said that in
July OF 1898 those bonds we're sold al net pront
Of s277 90. on the same day that the bond values
were written I'd there was a marked increase
amounting 70 sl7254O in the value OF securities in
the guarantee fund Colonel Williams explained
that the bonds had appreciated greatly IN value
Mr. WINS figured that these write-ups IN value were
about 5000 than the pront or $1'"V from tlle
resale Of the bonds.
lust after this on July 81, isas. the commission
was paid to the directors and others VINO nougnt
the bonds when the Brooklyn Rapid TRANSIT s'4u
st a profit TO pay the Knickerbocker Trust Com
pauv The Flower firm made the most from the
transactlon-S37I rs. Mr.. Gallagher, director re-
eeived 81 go: Theodore Jackson director s62o j.
G. Jenkins another 5000. and c. l.. keeney. S-'-l'
Prices around 50 and Sc offered fer the bonds
said Colonel williams. but the company thousht
these TOO low and eventually hxed rate OF $50
bond less q. per cent for cash The Uansac-
rion ne said was entirely open and above ooaFu
ana the company thought It was getting gooa
nrce although the bonds continued 10 20 up so lLal
in a few months they sold IN the market al I'i
Colonel williams did not think that the company
Gold these bonds at $50. At the same uIne u was
writing up It's own holdings at par, lie sald thal
while the dates OF the entries on the books we're
identical the actual transaction did not take place
on tba date on which the bonds we're written up ds
e. par-July 81, 1898 49,, ,.,.
F,jovyer & Co at that time had no connection with
the T3rooklyn Rapid Transit Colonel Williams sad
rne,- certainly reaped the advantage or speculative
n-o6t as did the directors. but then. he sa4a tley
tool certain risk In spite OF the huoyancy OF the
market ~-,, " W.T.,
A. the beginning OF the hearing Edwin w WIN
,Ar the president Of the company. presented d
statar,ert Of recommendations for improvements
made bv the old Railroad Commission, and de-
cIared that every recommendation not subsequently,
roodi0ed had been complied with in the five years
he had been president
The public investigation Of the Brooklyn Rapid
Transit ended with yesterdays hearing. Commis-
sioner McCarrcu adjourned the hearing without