The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-10-08
EASY MONEY FOR him
MDONALD'S STORY OF HOW
HE GOT IT.
Received $4,000 a Year Just for Doing
Nothing-His Split with August Bel
mont Due to Misunderstanding.

NEW YORK, Oct. S.-John Is Nc
Donald's recitation before the Public
Service Commission yesterday of the
inside history of his flop In the early
part of 1905 from the Belmont to the
Metropolitan Street Railway interests is
the chief topic of conversation in Wall
Street today. Mr.. Mcdonald said that
he had had a Misunderstanding with
Mr.. Belmont both in regard to the plans
for future work and in regard to fnan-
cial matters, and that he had gone over
to the other side under assurances that
the Metropolitan would build new SUBJ
ways II the contract were awarded to
them.
Mr.. Mcdonald went ahead upon these
assurances and entered into obliga-
tions. One day when he was in the
midst of his plans he awoke to the
fact that the Metropolitan and the In
terborough companies had merged.
Mr.. Mcdonald declared that he knew
absolutely nothing about the merger
until he saw the announcement on the
bulletin boards. He protested, and the
Metropolitan Securities Company paid
him $3.50, 900 for a release from its con-
tract obligations in connection with
the proposed extension of the subway
system and 800. 900 for a further re-
lease from obligations in connection
with the Mcdonald project of building
two tunnels under the North River.
Besides this, the Interborough-Met-
ropolitan Company entered into a five
year contract with Mr.. Mcdonald
agreeing to pay him $50, 1000 a year for
the privilege of calling upon him in
the future. Thus far Mr. Mcdonald
has been drawing his salary and wait
ing for a call.
What interested the, commission
chiefly was the fact that the Metropol-
itan Securities Company under its con-
tract with Mr.. Mcdonald was ap-
parently not obligated to bear any Of
the expense of constructing the new
subway system.
So far as the contracts submitted to-
day show, the Metropolitan company
agreed only to establish ~ system Of
transfers with the subway lines. The
financing of the subway enterprise was
undertaken by a syndicate Of individu-
ais who entered into a hard and fast
agreement with Mr.. Mcdonald to fur
nish funds. Yet papers introduced in
evidence today showed that the Metro
WIleIl IL paul MI.
$3.50, 900, understood that it was to be
used to defray ''such expenses as he
had incurred prior to January !, 1907"
Mr.. Mcdonald, in return for the
money which was paid to him, re-
bounced all claim which he had on the
company relative to the transfer agree
ment. Whether the syndicate of finan-
who were behind the subway en-
terprise paid any part of the expenses
was not brought out today.
Although he is vice-president of the
ter-Metropolitan company, Mr.. Nc
Donald said he was drawing no salary
for such services. The contract which
he has with the Inter-Metropolitan
provides for the performance by him of
future work. Mr.. Mcdonald admitted
that he got paid. anyway, whether he
did any work or not, but he would
rather work. Since he had entered into
the contract the whole matter of sub
way construction had been in abey-
ance.