New-York tribune., 1907-08-02
ROOM ON L" ROADS.
.Shonts Says Third AOenue Line
OnIy Is Run at Full Capacity.


Chairman Wilcox called the first hearing o,
the Interborough- Metropolitan investigation 10
order at 2 o'clock yesterday afternoon. The
eIdermen's chamber in City Hall had a deserted
appearance There was scarcely a score of per
sons present besides the lawyers, witnesses and
stenographers
long table was placed I'm front of the
rostrrIn for counsel for both sides. The entire
legal force Of the Public Service Commission was
present and the transit system was represented
by Paul y. Cravath and Delaney Nicoli-
Numerous other lawyers connected with transit
lines hand to watch the proceedings
Mr. shonts H. Fl. vreeand. Mr.. Root and
Mr. Hedley sat in a group the table for
counsel
Mr. Wins was accompanied by one Of his
clerks who carried a mass of legal looking
papers and documents At the opening Of the
hearing Commissioner Eustis was the only other
Public Service Commissioner present besides
the chairman.
The resolution providing for an investigation
OF the city's two transit systems read as
soon Chairman Wilcox raped for order
This done. Mr. Ivins slowly rose. and with his
opening words the investigation was on in
earnest.
1T is understood" said he. that under the
present public service law this commission has
the right 70 issue certain orders which may or
may not be obeyed. In the event OF disobedence
II then becomes the duty Of the commission TO
take the necessary steps judcially 10 compel
obedience This invest cation is made. as L
understand It. under the general terms OF the
statute for the purpose OF enabling the
mission to inform itself with the problems IN
rapid transit with which IT has To deal II may
at any time result in showing an interchange
OF facts concerning which the commission may
wish 10 pursue a special investigation. and IN
that event the matter will be taken UP as
strictly judicial proceeding Al present We
have inquiry instead of trial"
Mr.. WINS then called attention TO the fact
that statistics officially compiled showed that
all the steam railroads Of the United States
carried during the last calendar year about
o1o00Ooo passengers. while the elevated sur
face and subway lines in greater New York car
ried about / 30 O0O6D
The problem he said. 'of the street railway
lines seems greater than that facing the steam
roads"
To famiarize the chairman Of the commits
sion more precisely with the transit condition
in tho city, Mr.. WINS spread upon the record
the relation between the Interborough- Metro
politan and the railroad problem as drawn
from recent opinion of Judge Holt, declaring
tIe merger a mOncI oily. He next handed To
Chairman WILCOX a table showing the history
OF the consolidation of rapid transit lines that
he said had been going in this city for the
las seventeen years.
TO TAKE Up PHYSICAL CONDITIONS.
Continuing. Mr.. WINS said: Il shall In the
early stages OF the investigation address myself
to the investigation OF the physical problems
to determine whether the commission may is
order after proper notice for the rectif-
cation Of any obvious existing evil
Counsel then hal spread on the records the
report OF the Interborough company TO the
State Board OF Railroad Commissioners. made
June 30, 1905. and the application OF the In
terbOrough- Metropolitan Company. made by
August Belmont TO have its securities listed on
a.. I%,-Ir Il
After reading the agreement between the city
and the company for the and operation OF
the subways. Mr. WINS called Mr. Shonts the
stand.
The president OF the Peterborough AIetropoii-
tan took his seat the witness stand and
smilingly answered the usual questions about
his age. profession and residence. He said he
received salary of S3oooO year while a
canal commissioner
After tnis preliminary questioning Mr. WINS
had the witness tell him what transit COM
panies he was interested in official
Q.-Have YOU qualified member of these
boards by ownership OF securities? Al have. in
most
A.-Are there any other companies which you
have not named that you expect 10 become an
officer of in the near future? A-No.
Q.-You the president OF the Interborough-
Metropolitan? A.-Yes.
Q.-You have II chairman of the board? Ayes
Q.-Who is that chairman? August Belmont
AT the mention of Mr.. Belmont's name there
was a stir of interest; II was thought that Mr.
WINS was preparing to so into the mergers
financial transactions.
Q-Is there any division OF functions between the
chairman and president? A.-The former has
charge of all financial affairs.
O.-Have you charge of any financial matters?
A.-No.
O.-Fas Mr Belmont any relation to operation
construction? A--Not except a member of the
advisory board.
Q-And OF course. naturally as very large
shareholder? A.-Yes-
O-So that generally speaking. he occupies a
position superior to yours? The understanding
was that l should be solely responsible the op-
Grafton and construct a of the railroad.
Mr. Ivins then went into the question Of the
operating and lessor companies comprised I'm the
system, and asked Mr.. Shonts to tell what he
had done toward reorganizing and controlling
the lessor and lessee companies since he took
office. Mr.. Shonts in a general way told of the
work.
Counsel then requested list of all the book
keepers of the system. and also asked about the
organization of the legal department and by
whom and how members of that branch of the
InterDorough were paid
The examiner then took up the question of
operating surface and subway and elevated
roads under system and its practicablity.
thus:
FIVE months you of the opinion that the three
systems susceptible of being merged into one?
A.-Yes
Q--Is there not "A great difference in the manage
and operation of the surface roads from that
IL and subway? Ayes.