New-York tribune., 1907-10-09
JEROME AT INQUIRY.
Interested IN agreement Produced
by Mr. IUiRs.

In one short half hour yesterday Anthony y.
Brady revealed a scheme for loOting the stock
holders not on the inside so simple. Yet so COM
prehensive. that the startling disclosures of the
insurance investigation almost paIed in COM
parison. Perhaps he told about it little more
willingly because he was one of the victims Of
the big fellows in the innermost circle.
His testimony about the purchase of the
franchise of the Wall Street & CortIandt street
Ferries Railway Company by the Metropolitan
Securities Company about the most sensa-
tional thing brought out yet in the Public Ser
vice Commissions investigation of traction af-
fairs. 1t was clearly a case where the head
men in the company had bought a worthless
franchise for small price, charged the COM
pany-that is. the stockhoIders-a big one and
themselves pocketed the difference that the
lawyers for the traction company sought to
minimize its effect much as possible by addi-
tional questions which they asked the witness
a touch Of interest was given to the hearing
yesterday by the fact that Just before Mr.
Brady was called to the stand District Attorney
Jerome came into the hearing room and took
a seat beside Chairman WILCOX The traction
lawyers looked at each other for a minute; then.
as Mr.. Wilcox took the District Attorneys
hand. with one impulse Delaney Nicou and
Paul D. Cravath rushed forward and made it
a quartet They were erusive in their greet
ings of Mr.. Jerome. He Immediately settled
back into his chair and gave the closest atten-
tion to Mr.. Brady's words
Before calling Mr.. Brady William NJ WINS
read into the record the contract between John
B. Mcdonald and the marlborough Metropolitan
Company by which the contractor is 70 draw
$4,000 a year for five years to come. This was
dated January II. 1907. It provided that Mr.
Mcdonald should build whatever subways the
1,fo
controlled by it should receive contracts for and
assured to that company his exclusive services
for five years. If he dies before the expiration
of that period the remainder of the $4,000 shah
be paid to his heirs or executors.
Mr. WINS also read an agreement between tha
Metropolitan Securities Company and Kuhns
Loeb & Co. dated February II. 1902. by which
the bankers agreed to do their utmost TO obtain
for the securities company a control Of certain
traction companies or rights This agreement
is destined to play an important part in the
coming features OF the investigation. From 1t
Mr. WINS expects to bring out that S1.5OO.O00
was paid for underwriting S23 100000 OF tho
stock of the securities company "at risk to
anybody
This agreement specified that the securities
company having unissued all except $4,000
of the SSOOOO.OOO OF stock. desired to acquire
all the capital stock of the Interurban Street
Railway Company. the BcOple : IIdtIloh COil-
many Of the City OF New York. the New
York Westchester & Connecticut Railway
Company and the Wall and COrtlandt Street
Ferries Railway Company. That having been
ACCOMPLISHED the Interurban was 10 lease tho
lines of the metropolitan Street Railway Conn
pany and to pay to that company on ratliica-
ton of the lease by its directors, the sum o.
S23 ONaOOO The Interurban was to advance.
pending such ratification, up 70 $9.OOOOOO *
NEEDED for construction The securities conf
many proposed to provide such advances, and
purchase ST.. 100000 of athe stock and an issue
of debenture bonds OF the Interurban on the
ratification of such lease.
SECURITIES COMPANY AGREEMENT.
The agreement then went on:
First-The bankers agree to their best efforts
To bring about the sale to the Securities company
of an of issued shares Of stock and other Secur-
titles of the InterUTban company, the Peoples Trac-
ton Company of the City of New York and the
Company and the Wall & Cortlandt Street Ferries
Railway Company at prices satisfactory TO the
Securities company, and they agree to advance tc
the securities company such OF money as
may be necessary To pay for such shares of stock
BALTIMORE OLD HOME WEEK
more and return. via Pennsylvania Railroad; Octo.
Der II. Is. a. good to return until October Il. IN
clusive-Advt