New-York tribune., 1907-10-10
RYAN SPENT $4,000.
FOR CIVIC FEDERATION.
Payments We're Made Without
Stockholders KHOzcIedge.

Though none OF the stockholders or directors
authorized the expenditure. Thomas F. Ryan
spent $1,000 from the treasury of the Metro
politan Securities Company toward financing the
investigation conducted by The National Civic
Federation into the question OF nunicipdd
ownership. 1t was brought out before the Pub
lie Service Commission yesterday that Mr.. Ryan
guaranteed S2O,OoO toward the expenses OF that
investigation. which required travel all through
Europe by party OF experts and business men,
IL reported also that August Belmont guar
anteed like amount, making the total OF
$4,000, which was guaranteed to the fedora
tion before the investigation was undertaken
Diverse reports were rendered by the in
vestigatoTs on their return to this country, but
the trend of most of them was distinctly
favorable to the municipal control Of public
utilities In one Of the letters read before the
commission yesterday. Mr.. Belmont told II. H
Vreeland that the work would prove salts
factory This was long before the formal reports
were ready to be issued.
Milo r. MaItbie. now OF the members OF
the Public Service Commission itself. was one
of the special investigators chosen by the Civic
Federation for this work. He assigned TO
look into the municipal ownership of lighting
plants His report declared that the conditions
in Europe were radically different from those
here, but its general tenor was favorable to
municipal control-sO much So in fact. that it
criticised in quarters "socialistic."
Most Of the hearing yesterday was devoted By
William NJ WINS TO an exposition OF the pecu-
liar methods OF bookkeeping and accounting
employed by the transit companies. The $1,000
spent by Mr.. Ryan for the contributions TO the
Civic Federation were charged to the general
expenses account An item of $500. payment
to Chase Mellen a lawyer, was charged TO prop
erty and franchise" Items aggregating IN the
course Of several years S3S.S paid to Harry
d. Macdona. also were charged to the prep
erty and franchise account. Mr. MacdOna's
services, as nearly as Edward W. Sayre could
identify them, were those of a press agent, al
though Mr.. Vreeland had said they concerned
the development Of property
On April 30. 1901 a check for S37. .492 56 was
paid to the Morton Trust Company This. II
was brought out was for two Ioans-S2O,Ooo
and S16TOO-and accrued interest. The entire
amount was in the account Of items awaiting
distribution; and amount Of Interrogation
by Mr.. WINS could bring out what these loans
were to whom they were made Response
bility saddIed on to Mr.. Vreeland-
vREELAND's ACCOUNTS LACKING
Mr. vreeland himself received considerable
money for which no proper accounting ever was
given Even when vouchers were returned. in
did not explain in the least where the money
went. Among other things for which money
was spent were entertainment OF guests among
the delegates to the convention of the American
Street Railway Association in this city. which
cost $500 and contribution OF $4,000 to the
treasurer of that organization These items
were charged TO special expenses for construc-
ton On May 81. 1902. there was one item OF
special expenses for construction of $4,000.
This was charged thus by order of Mr. Vree-
land himself. D. C. Moorehead. secretary OF
the Metropolitan could not tell for what the
money was spent. This was back in the period
for which the NIetropOIitan's books were de-
stroyed.
Considerable interest was attached to the fact
that Mr.. Vreeland always received a salary OF
$4,000 per annum from this construction ac-
count. in addition to his regular annual salary.
thus netting him IN salary alone. under the
Whitney control OF the company. $4,000 year.
Edward ". Sayre was the first witness yes
terday. He identified three checks for $4,000
each payable to August Belmont. and said the
disbursements had been charged TO general ex-
penses by Mr.. Hreeland's direction Mr. WINS
then read the correspondence accompanying and
acknowledging each check. IN which Mr.. Bel
mont wrote. president OF the National Civic
Federation on the federatiOn's notepaper. The
1rSC C1eCk was Drawn 10 InS OFder or the Ied-
Grafton. This returned by Mr.. Belmont to
Mr.. Vreeland. with instructions to draw II 10
the former personally. This was done. On Juns
II Mr.. Belmont had 70 write to Mr.. Vreeand.
reminding him that 5000. was due on Mr..
Ryan's guarantee in the matter Of the municipal
ownership investigation connected with the Ma
tiOnal Civic Federation"
On August 20. 1906. Mr.. Belmont wrote:
I saw the chairman OF the public ownership COM
mttee. Mr. Ingalls, to-day. and he told me that the
report OF the commission will be very volumiuouS
and will most likely be out OF the printers hands
by the middle OF next January. The work as far
understand. Is very satisfactory. The dsburse-
ments OF the commission to date have been S7S.-
S57 80. On the other hand. receipts have been:
From guarantors. $4,000: from contributors $50
4S $3.50 4s2 50-leavng present Overdraft OF sSS75
As roughly speaking the estimated total expenses
will be abCAt $4,000 IL will be necessary to call
another assessment OF 5000 each from the guaran-
tors shall thank you to send check TO my
beginning OF the work was $4,000. that you will
see that the expenses have been kept pretty close
to that figure.
PAYMENTS UNAUTHORIZED.
Mr. WINS drove home by question after ques-
ton the fact that these payments were totally