New-York tribune., 1907-09-28
SURPRISE PROMISED
IN TRANSIT INQUIRY
BIG "YELLOW DOG" FUND
NAY BE DISCLOSED.
Hundreds of Thousands of Dollars
Traced to Vel KnO7CR Men,
Says RumOr.

/ a thorough study of the books of the New York
City Railway Company. the Metropolitan Se
curities Company and the interchangeable
pOIitan. will be resumed before the Public Ser
vice Commission Tuesday In the course Of
the next few sessions. it is declared. there will
be disclosed conditions as startling and sinister
as any which Charles E Hughes brought out
j of the insurance investigation.
The declaration was made yesterday that
/ transactions whose total figures would amount
TO almost 81, 1,o000 900. had been traced through
the books of the New York City Railway Com
pany by the Investigators because they believed
a thorough explanation of those transactions
might help explain why some of the equipment
needed had not been purchased with money
supposed to have been applied to that purpose
While the bookkeeping which recorded these
transactions. the information ran, hardly would
permit the characterization of --juggled figures.
the entries certainly showed a new and original
system of record. Items of cash payment en-
tered on accounts whose nature seemed to the
investigators peculiarly foreign to the character
of the services supposed TO be rendered havs
been found on more than one occasion
All through the financial district yesterday
there was discussion Of revelations expected
when William NJ Wins renewed the probing OF
the companies financial affairs Charges OF
corruption within the company and misuse OF
funds in every conceivable connection have been
/ Ievelled so often against the management OF the
/ street railway system in particular that Wall
+ Street men ready to credit tales Of "yei-
low dog fund OF startling dimensions. which
/ could be traced into quarters the identity Of
/ which would starte the entire political and
+ financial world.
/ One persistent report had it that the con-
/ struction account" to which payments of $500
/ to Lemuel E. Quigg. the politician-lawyer, had
| been charged. had been used TO far greater
/ extent than $500 in the payment of services
+ which hardly came within the customary
| ceptance of railroad construction work Mr.
I Quigs explained that the S. 800 paid TO him
was for services whose nature concerned only
him and the company If the tales ahoat yes
( terday be verified, items amounting to hundreds
+ Of thousands of dollars will be found to have
/ been charged to construction" and similar
I general accounts. for payment 10 persons OF
I prominence in the political and business and
legal life of the city Politicians of both parties
will be among the payees, according to this
. rt1rnor and one of the best known of their num-
Der will be credited with sum in six figures.
OLD CAMPAIGNS RECALLED
Whether the services actually rendered tr
I these payments will be shown by the vouchers
| and receipts IT has been impossible to learn
Coupled with the reports of yellow dog
I fund yesterday were recOlIections Of the vtgor-
/ Gus campaigns which were waged for and
/ against certain much discussed railroad bills in
+ the years 1901. 1902 1903 and 1901. when the
/ elm street grab" the Amsterdam avenue track
bill and various measures for the quiet extern
sion of street railway franchises came before the
Legislature
All these bills were fought tooth and nail BY
civic organizations both in this city and be-
fore the Legislature. and organizations ike the
Citizens Union. the Citizens Transit Reform
/ Committee Of One Hundred, the West End As
sociation and many others we're not slow IN de-
cIarng that the railroad concerns were using
| questionable methods to Jam through their
desired legislation
William NJ Ivins said yesterday that he had
completed his scrutiny of the books OF the In
terborough- Metropolitan and the Metropolitan
Securities Company. He declined very emphat-
icaIly to discuss his discoveries. and would not
outline his plan for subsequent investigation.
or talk at all about the reports of misuse Of
funds and sensational discoveries which had
flooded the financial district
"AH the books I asked for have been supplied
to me readily, and all the vouchers 4 desired to
inspect are being supplied 20 me-" he said IN
answer to questions mo attempt has beer
made on the part Of the companies TO withhold
anv documentary evidence. far concerts
the Metropolitan Securities Company or the In
terborough Metropolitan Company They are
giving me everything. have had some diff
Guilty in finding certain vouchers OF the New
York City Railway Company. but r expect that
ultimately they will be supplied. if IN exist
enCe."
It is probable that several hearings next week
will be devoted TO investigation OF the COM
panies' financial affairs along lines suggested
by the study OF the books of the Interboroush-
Metropolitan and the Metropolitan Securities
Company. In the mean time. the Public Services
Commission probably will decide whether to lee
the Interborough go ahead with the Increases of
service which President Bryan promised for ths
elevated and subway lines
The probability is that the increased service
will he begun as soon as possible and that t1e
commission, having granted that permission
without binding itself not TO issue orders for
further increases then will make another in
vestiSation of service and the number of stand
ing messengers the new basis The comm. a.
sion is perfectly willing to take any increase
t,e con1pany will make in the running of cars
TO provide for standing passengers, but still
there Is some amount of skepticism to Mr.
Isryan-s statement that the company cannot be--
ter the schedule put forth on Thursday
NO STAY TO INVESTIGATION.
Investigation of the surface lines service. and
orders for the improvement of that services.
wherever deemed necessary. will not be shut
off because of the New York City Railway Com
pany receivership- Commissioner WILCOX vas
somewhat annoyed yesterday because a wrops
iupression seemed to have been created by the
adjournment of the hearing on the order for new
cars for the Madison avenue line
THAT hearing was adjourned because the road
now is In the hands of receivers he explained.