The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-07-11
BANKERS IN SUBWAY COUNCIL
INTERBOROt CAN'T GET
MONEY ON CITIS TERMS,
says Mr.. Shonts- Henry r. Dawson Of y.
T.. Morgan 4 90. al Two Conferences
with WILCOX Another Financial
study Of the Tangic This Morning.

study Of the Tangic This Morning.
With a view to bring about a settle
ment OF the subway situation that would
be agreeable both to the city and the
Interborough company two conferences
were held yesterday. One was in the
office Of Borough President McAneny.
chairman OF the Board Of Estimates g
committee. and the other was held in the
Office OF Chairman Wilcox Of the Public
Service Commission. Besides the city's
representatives there were present at
these conferences Mr.. Low, former
Comptroller Edward NJ. Grout. who has
been engaged as special counsel by the
Interborough company since the Wilcox
McAneny report was drafted. President
Shonts of the Inter borough company and
Henry p. Dawson. one Of the partners
in the firm Of J. P. Morgan h Co.
In these conferences it was urged that
If the Brooklyn Rapid Transit Company
is to be- allowed TO enter Manhattan and
especially to he allowed To build the
line from the Battery to Fifty-ninth street
under Broadway. where the trafiic will
be Of the profitable short haul kind. the
1nterborough company should he assured
that its earnings will not be decreased by
the new transit developments Mr. Shonts
has told the committees, as did MIR
Dawson ven erday. that the Inter
borough company cannot raise capital
for the new roads il the B. r. T. is TO he
allowed 70 parallel its lines in this borough.
No decisions were reached yesterday
at the two conferences and another meet
ing is to be held this morning. at which
J r. Morgan. Jr.. is to he present. The
outlook is. however. that this conference
will lead to nothing MIR McAneny. who
has with him the majority of the members
OF the Board of Estimate. and Chairman
Wilcox Of the Public Service Commission
intimated yesterday that they will stand
by their report. and on his part Mr. Shonts
said that his answer to the city's invita-
tion was written. sealed and lying on my
desk ready TO be delivered This reply.
as is we'll known. is a declination Of the
city's offer
Mr. McAneny promised yesterdsy that
II the lnterborough company showed no
disposition to change its attitude by
Thursday the report Of the committees
would be adopted at the meeting OF the
Board Of Estimate on that day. which will
mean that the Brooklyn Rapid Transit
Company will get all the new lines
| In discussing the subway situation
a few days ago Mr.. Shonts said that while
the 1nterborough company was willing
to raise its share of the money needed
! for the construction of the lines allotted
to it the company would be unable TO
obtain the capital required on the con-
ditions which had been laid down in the
report Of the conferees He added in
saving this that he was speaking uron
the authority OF the Morgan banking
firm. upon which the company would
! rely for the selling OF it's bonds 10 furnish
the capital that would be required for the
building Of the new roads.
The main points OF difference between
the company and the city are well known
Some OF them are of an involved financial
nature. but the principal argument made
on behalf OF the company is that so long
as the city is willing to guarantee to the
B. r. 7. its profits on it's existing lines
the Interborough should have a similar
guarantee.
The company will readily agree to
share with the city the profits or losse,
OF the new lines. hut it wishes to retain
the large profits of it's present lines
To this proposition Mr.. McAneny and Mr.
Wilcox will not agree
| They point out that there is a large
difference between guaranteeing the =
per cent dividends of the Brooklyn
COMPANY and the Is TO II per cent. divi-
dends Of the Interborough's present
lines