New-York tribune., 1907-10-12
JEROME SEES WILCOX.
TRANSIT TESTIMONY UP
District attorney Shoes Increasing
Interest an InGuiYy.

District Attorney Jerome called Chairman
Wilcox yesterday for the second time since the
beginning of the disclosures of metropolitan
finance" before the Public Service Commission, ana
was closeted with him for nearly an hour
I'VE talked the whole situation, discussing
the testimony before the commission, in which Mr.
Jerome is much interested" said Mr.. WILCOX
1t is known that the District Attorney is con-
siderably stirred up the list Of assets car
ried the books of the Metropolitan system and
the numerous unexplained payments OF money
which the commissions investigation has brought
out. The testimony OF Anthony N Brady, "hlch
Mr.. Jerome heard. regarding the payment OF Sl34O"
TO Moore & Schley and of $l1l.0OO each to william
c. Whitney, P. A. B. Widener, Thomas f. Ryan
Thomas Dolan and William J.. Elkins from the
treasury of the Metropolitan Securities Company
by way of Mr. Brady. also is considered OF great
significance by the District Attorney.
In all probability this transaction will be prooeo
somewhat further when the investigation Is
resumed by the commission next week, although
the purposes of the commissioned sho" tla'
funds Of the company went for ileg1timate pur
poses-have been served by the evidence alreauy
taken. Yet William NJ. WINS probably VIII can
Grant B. Schley the senior member of the broker
age firm, tell about the $4,000 payment 10 tHaI
If he does. the truth about the real pur-
pose for which the payments were MADE may come
out.
Two versions 10 account for this payment were
ahoat in the financial district yesterday. One was
that II was for campaign contributions and political
payments made through the brokers. and that
eventually 1t found its way into the pockets
Of Croker and the Tammany Hall high chieftains.
The other much more complicated and IN
volved an explanation also OF the payments TO
Whitney. Ryan. Dolan Widener and Elkins-
whitney. Ryan. Dolan. Widener and Elkins were
the big five In transit affairs in this town for
years and years before Belmont ever was heard Of,
declared a we'll known man in the Wall Street
district yesterday. Since these reports have come
to the front-and for long before among those who
knew the real condition within their companes-the
belief has been prevalent that these milked
the various companies for from 10000 900 to $780,.
OOOOOe Now in my opinion. these payments OF
S.OO0 each represented the little 'rake-of to the in
siders which they got each time it was possible to
arrange It. I have been studying the thing
quite bit, and It looks TO II the sl34 900 to
AIoore & Schley might have been private 'rake-on
to Whitney and Ryan. That firm did lots of busi-
for them the inside, and It might have been
quite possible for Whitney the head of the concern
and Ryan, his right-hand man, to cook up some
sort of services for which the brokerage firm must
be paid, with the understanding. of course, that
the money came back to headquarters. In other
words, I wouldn't consider in this case, that the
ethics of the affair would prevent Whitney and
Ryan from embarrassing their associates any
more than ethics would prevent their bleeding the
stockholders"
Still another explanation of the whole transaction
advanced in quarters which did not make
the situation look any more pleasant for the re-
several years before the Wall & Cortlandt Street
Ferries Railway Company was sold by Brady the
Metropolitan company had been borrowing money
from the five men--Whitney. Ryan, Dolan, Elkins
and Widener-whch did not appear on the books
at ALL but maintained a fund-a 'yel-
low dog fund-and expended by H. II. Vreeland
for various purposes. Finally these contributions
amounted 10 100000 each. and some OF the MEM
bers Of this syndicate wanted their money so the
scheme Of buying Brady's franchise for s715.OO0
than its actual cost was devised raise the
money. and at the time disguise the real
nature OF the expenditure
Without much question this whole affair will be
prObed to the utmost by District Attorney Jerome
special investigator appointed to ascertain
whether criminal action should follow. Reports
persisted yesterday that the Governor would ask the
Attorney General TO designate special deputy to
take action In the District Attorney did not
do within reasonable time. Whether or not
this would the direct result of some action
by the Public Service Commission is not clear.
1t is known. though, that Governor Hughes is
keeping in the closest touch with the work of the
commission in this affair. He has received Chair
Wilcox at Albany several times. and during
his occasional visits TO this city has seen Mr. Will
many times when the fact never was made
public Then. too. the telephone connection be-
tween New York and Albany is excellent, so that
tho Governor may be said 10 be in daily touch with
the commission and its doings
Persons who know the Governor declared yester-
DAY that II he were to take action he probably
would follow the course pursued by him in connec-
tion with the charges made against District At
torney Clark of Broome County, when the Gov
ernor designated ex-senator Bracket as a special
prosecutor and then suggested that the Attorney
General name him a special Deputy Attorney
General.
Little doubt exists, if the Governors reading Of
the testimony should convince him that criminal
action ought TO be taken that he would stir up the
District Attorney supersede him with a special
prosecutor. Attorney General Jackson would be
glad Of an opportunity 10 be brought into criminal
action against the traction men. even indirectly
and would not hesitate to appoint any man whom
the Governor recommended.
The possibility Of criminal action against some of
me directors and the probability that sooner or
later some stockholder Will bring civil suit for tho
restoration of funds msused caused considerable
searching or the records yesterday to ascertain
Just who were directors at the periods Of chief in
terest. When the payments were made through
Brady 10 Ryan. Whitney. Dolan Widener and
Elkins and Moore & Schey the directors of the
two chief companies were:
NIL of1CChlllES. MET. ST. RAILWAY
~ Inonas = Fowler p. A B. Widener
w. n ,1aIdWih' il, Thomas Dolan,
James n: ily0e' Henry 4. Robinson
A. a. Y ~ JuIIiIard. y. r. Hasbrouck
+. j. Bermind, II y-aaia,a
St HtoI lIIheI l.. SchiH, Charles L. Warren.
"eo' Sc :" maven D. &. Moorehead,
Oren Root. jr.
Neither RYAN nor Whitpa,,