New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-08-23
MERGER BOOKS CLOSED.
SOME EVEN DESTROYED.
Iuins Says Company Refused Infor-
mation-Test of p. S. Lac Likely.

hooks asserting that IL is q holding company
and not an operating company the Public Ser
vice Commission he's no jurisdiction over II. II
the commission insists seeing the books of
the merger It will have to carry the to the
courts.
This fact was brought out toward the close OF
the hearing yesterday. when De Lancey Niooll
Of counsel for the transit system in addressing
Commissioner Wilcox. presiding. declared that
the merger had acted in good faith toward the
Public Service Commission. had rendered ii ev-
cry possible assistance during the investiga-
ton and had given it access to fits books and
papers
you have not" interrupted Mr.. Ivins. You
have refused TO allow me, representing the Pub
lie Service Commission. my accountants
cess TO the books OF the fnterborough- -Metropoii-
tan Company. Your
Have you asked for them?" broke in Mr.
Nicon
Z have. and they were refused by Mr.
crarath on the claim that that company was q
holding company and not an operating COM
pany.
Mr.. CraTath Gid not reply TO the statement.
and MI Nicoll had nothing further to say.
II was learned yesterday that the books OF
the Metropolitan Street Railroad Company had
been destroyed and that the information they
contained was lost. Whether it can be obtained
from reports made TO the former Board of Rail-
road Commissioners and from the books Of the
merged companies that are still in existence is
nc. known. but is considered by representatives
of the Public Service Commission improbable
II is said that officers of the merger admitted
the destruction of the books to accountants OF
the commission
Mr wins himself believes the books are not
.n existence now. When my accountant Mr
Scudder. has gone through the books Of the New
York City Street Railway Company" said he
after the hearing yesterday. Il will know
whether the books are extant or not"
Mr.. WINS expressed 10 Of his associates in
the investigation grave doubt as to the posi-
hility Of their existence.
SOME METROPOLITAN FACTS.
The Metropolitan Street Railroad Company
was merged with the New York City Railway
Company In 1900. II was. in fact. leased to the
latter road for 999 years. The Metropolitan
Street Railroad Company formed in 1906
It comprised numerous surface lines including
rany OF those which, II is alleged, cost millions
Tor the construction OF road and equipment on
per c,ile basis
I. has been the purpose of Mr. WINS to go
6te the capitalization OF the surface lines and
6ad 1ust where the enormous amounts that were
easd to have been expended went The destruc-
ton ~ the books OF the Metropolitan Street
Railroad Company VIII make this task many
tines more difficult. IL not impossible. Mr.
Twins. however. does not intend 10 give It up.
Both he and Commissioner WILCOX believe that
with or without the books they can get the facts.
Officials Of the merger refused TO discuss the
question OF the destruction OF the books They
did not deny that they had been destroyed. but
Of them said: 'I assure you OF this fact,
no books have been destroyed since February,
1902 All OF our books and records from that
time are IN existence" On the other hand,
other official Of the road said that the books Of
the Metropolitan Street Railway Company were
extant In 1904 when District Attorney Jerome
made an Investigation OF the Anlory charges.
The Public Service Commission will have ac-
cess TO the books Of the New York City Rail-
road Company, and its expert accountants will
within few hours, be at work going over these
books Upon the result OF their work, on what
they find, will depend to some extent the future
OF the inquiry and. many students of rapid tran
sit believe. the future Of the merger as well
There seems now no doubt Of there being
test Of the constitutionality Of the public SER
vice law. 1t has been generally conceded that
soon as the commission issued order that
would seriously affect a common carrier corpo-
ration financially the corporation In question
would have a test of the bill made in the courts.
Al the session yesterday Mr. Nicoll re-
fused to allow Mr.. Bryan TO answer a question
TO whether he considered the commission had
authority to issue reasonable orders" Mr..
Nicou himself declared that he doubted the
power Of the commission His action was SEEM
ingly interpreted by every one present as mean
ing that should the merger object seriously to
an order of the commission ii would refuse to
obey It and that would precipitate an immediate
constitutional test of the bill itself
OBJECTION BY MR. NICoLL
II was In the last half hour of the hearing
that Mr. NicoIl sprang this the first Of the sur
pri.es Of the day. Mr. Bryan. president Of the
1nterborough Rapid Transit Company. was on
the stand and MIR. Twins asked him If the COM
pany would have any hesitation in obeying any
reasonable order the commission might issue to
Il in regard to furnishing better transit facili-
ties.
i object" shouted Mr.. NIcol. jumping to his
feet ct object. Why should you ask question
Of that character. Mr. Twins? 1t is not fair.
What does Mr.. Bryan know about II? He can't
~asner that 1t is a question for the legal de-
5artnleat."
Well. all right. them quickly replied the
commission. counsel You are OF counsel for
fae road I Will ask you that question IL you
are going to take that position the sooner we
now il the better"
Il am in doubt as your authority, replied
DIR. Nicon -T think you have power to do
sood many things and I think you have done
q good many that you have not had any power
20 do"
Both the inquisitor and Mr. NicoI who mad
been bantering each other off and on during the
hearing more or less good naturedly--often less
became excited at this point.
Didn't you think it was your duty TO your
clients 10 advise them that effect, thenE
demanded Mr. wins.