New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-09-06
MOVE AGAINST MERGER.
CRIMINAL SUIT LIKELY.
IUanS Says He UM Lay Transit
Case Before Jerome.

"4iidnl VI IVlns, special counsel for the Pub
nc service Commission. created stir at the
nearing OF the Interborough- METROPOLITAN ner-
ger inquiry yesterday. when he said he thought
there was possibly cause for criminal action
against officials of the merger and that he
would formally call the attention OF the District
attorney to the case that he might take such
steps as he deemed necessary
Mr. WINS during the hearing read numerous
sections Of the Penal Code as bearing possibly
upon facts that had hitherto been brought out
In the evidence at the hearings It was learnedi
later that the possible causes OF criminal action
he would submit to the District Attorney were
also based on evidence adduced during the In
quiry- After reading the sections he said. adj
dressing Chairman WILCOX:
Il call your attention TO the sections OF theI
Penal Code bearing upon this question. and
at the same time think that it Is entirely apt
proprfate on my part to call the attention for
mally ot the District Attorney not only 70 ths
testimony which taken here yesterday bug
to those sections OF the law as possibly bearing
upon II in ORDER that II any crime has been
committed proper steps may be taken to cure st<5
and If the Law does not cover the crime thar;
then this commission shall have the benefit OF
the advice of the District Attorney IN regard
TO amendment Of the law. and at the same
time call hts attention to the series of reports
which have from year to year been fled with
the commissioners Of railway IN this state, and
which reports according to the report made to-
hin, bv Mr. TeaIe. as I construe II. appear not
to have been regular. because Mr.. Teale him.
self reported TO the District Attorney 70 tAe
effect that the accounts themselves were no7
regular on their face"
BELMONTs CORRESPONDENCE READ
August BeImonts correspondence with tne
chairman of the Public Service Commission. n
which he made long defence OF both hinnseLri
and the Interborough Rapid Transit Company 8
system OF bookkeeping. was read and entered
on the record This correspondence included a.
letter from Mr. Belmont to Mr. Gaynor. auditor
of the company's books demanding answers TO
certain questions and explanations Of his sys-
tenn of bookkeeping. and saying that. as upon
him rested the responsibility Of keeping tnst
books and seeing that all entries were n1aoe
properly. upon him also must rest the duty OF
making so thorough and satisfactory an ex~'
nlanatfon as would destroy the false and mis-
taken impression that had got abroad rom /
the testimony he gave on the stand
Mr. Gavnor IN his reply TO Mr.. Belronts |
letter acknowledged that he had received no !
orders from Mr. Belmont about keeping his
books or making entries in them and then
followed In detail an explanation or the points
about which false impression existed
1T- Belmont said a great injustice had been
1ona him by the creation OF the impression that
Belmont & Co had received s450.oo' rnr1ission
on 900 bond issue Of the Interoorousn
con,pany. Mr. Belmont said that the actuai
commission, which. he Said was shared WIN
two other firms, amounted TO only ss7,5Oo for
his company
Mr. wins read and had entered on the record
tb-se agreements: Between the Interborousn-
METROPOLITAN Company and the Metropolitan Sc
curtties Company; the New York City EtaiI"ay
Company and the Metropolitan Securities com
nanv and the Metropolitan Street Railway Coiii-
nanv ana the New York City Railway company
which he said. materially modified IN some re-
snects the lease Of the Metropolitan street. ran
uav Company 10 the Interurban Railroad COM
uany. and constituted. in fact a trlPar'''0 @
ment made on May 3, 19Oi-
Af,s- the hearing Mr.. Cotton. one OF Mr.
-,.+t,s Isvrrers went to Mr.. Mason. VINO nad
hae, assisting MI WINS in the case ana pro-
tested that the copies OF the agreements entered
on the records were not correct or tna' 0-'
least one OF them was not copy OF 'lie go
aqreenent Mr. Cotton refused 70 explain 70
newspaper men how they differed from tne leaH
agreements He also refused 10 give MI. ocuU
der expert accountant for the commission. tlS
.o,,, of the real agreement when the latter
-. for n Iaving emphasis on real asree-
n1ent"
- g the Public Service Commissions ac-
co,,ntant by Mt Brown attached TO the end 7s
a voucher and many OF the Public Service COM
missions officials believe 1t was never ror Nif'
s-,,dda-,s examination, but that 1t was gwen
him through a mistake
ROOT ONLY ONE ON THE STAND
oren Root general manager OF the Ne" 1O1S
Citv Railway Company, was the only "i'Ae
c.IIsa Yesterday Mr.. WINS examined nirn
80, the lines pursued with Mr.. Moorehead on
the preceding day. He was. however unaois
IN get the witness to admit that ne was an
80 arr,r,v director Of the Metropolitan Street
Railway or that he was made director OS "i-
y--ss1and and his confreres simply to vote ZOE
- GOO 1,..- lease Of the road to the Interurban.
-. .re Neu, York City Railway Mr.. ROOF
orsrared all of the questions put to him oy Nir-
I,5ns IN a prompt decisive manner ana thS
o,I,, admission that the latter could get rom
hin, was that 100 shares OF Metropolitan stOCA
had been entered in his name thar ne might
bacorne a director He also said that ne hao not
,,uo1r, of the destruction of the Metropoitans
booLs until II was brought out curing tie co-i-
missions inquiry into the merger
There was an unusually large NUMBER OF
,s1vsrs representing the Interboroush-Metro-
-,,..,, Cononanv at the hearing yesterday.
When Mr. WINS made his remarks ABOUT tno
pa,ar Code and criminal action there was
bastv consultation among them. at the end OF
which broad smiles were noticeable on tna
countenances OF De Lancey Nicoli. MI. QuacA-
enbush, and even Mr.. Cravath
II was remarked yesterday that Mr. WINS
was attempting by his questions TO get some
evidence against prominent official or tne
merger Mr.. vreeland, Thomas F. Ryan and
August Belmont are the three officials OF ths
merger that he has decided not TO put on the
q