The evening world., 1912-01-23
lnterborouglh, He Says, Had
Agreed With City Officials
in New Deal.
LAWYERS NOW AT WORK
Head of Transit Company
Says Evening Worlds Story
Was Correct in Details.

Theodore r. shonts. President Of The
Marlborough. returned this afternoon
from Chicago and Immediately confirmed
tho exclusive story of The Evening
World to the effect that the Morgan
nrm had agreed 10 under write the ne "
financial proposition Of the subways;
that two members Of the Morgan nrm
would ~ Into tho directory and thai, the
intorborouRh had agreed with the rep
rcssnta lives Of the city upon "thc funda.
mental pr!nciplcB' OF a new deal for tho
construction aad operation Of the nav
subwRys.
These details. he said. were IN the
hands OF the attorneys representing the
Morgan arm and the Public Services
Commission for nnai threshins into
shape. lie said that he could not make
any statement upon tho plan until the
attorneys had completed their work,
II WAS learned from the highest au-
thority that Lewis csss Lsdyard, repre-
'~niing tho Morgan nrin. and n. q. Cole.
man. representing tho Public Service
Commission. went into conference to-day
upon the ANAL draft OF the ~Interboroush
proposition.
LAWYERS HAVE HARD CUES.
TON TO DECIDE.
Their chief dlficuity arises In DO word
inx the document m to prevent Il from
conflicting with the c~onst1tution OF New
York. wherein II n prohibited TO Q city
10 ioan Its credit TO a corporation, A. Il
10 charged would b the case II ne city
guarantees 10 tho PETERBOROUGH It's Darn
Inks on IN old Investment. along with
Interest and sinking fund ON the old and
new obligation. This arrangement.
called under the varioua headings Of
guarantee" preferential payment"
assurance OF present earnings." u the
present stumbling block before tho
lawyers.
Whom Mr.. ShonNs came 70 his oeaoe
he had Just left the limited Chicago
train. which vas three hours late. lie
did not secm to have had any OF tho
unpleasant experiences In Chicago that
were predicted Tor him by shoss who d.
cussed tho possibility of his leaving the
Chicago n Anon road rs its president.
lie w~s pleased and pleasant.
Il will have no statement 70 make
regarding tho subway aituation to-
day" he said. 1T IL possible that
something may BE- aaid by the gentle.
men at this City Hall or at the Public
Service Commission. will have moth
Ing 70 say until the attorneys IN ROM
ferenoo make known h result Of their
conference.
The ~intcrborough and the city OFF,
cish dbl agree on tho Fundamental
principles OF the situation. but the
nnai details will have TO bs worked out
by tho attorneys and submitted 10 the
Public Service Commission"
Mr.. ShoAts then said that The Even.
Ing Worlds story. nrst given TO tho
public. was correct as TO this line OF
action already taken. In The Evening
Worlds story la asserted:
That thu In%terborouSh had decided
to renew Its bidding.
That Morgan u Co. had agreed to the
financing.
That iva members Of J. y. Morgan L
Co Hould 10 on the l~ntsrborough d.
r%ec,ory.
mat the Public Service Commission
aud The board OF Estimate hud agreed
10 support the y PETERBOROUGH bid.
That thu bid was based upon basic de-
lalls laid dawn nj the conference OF
last week at the rooms OF the Downtown
Association. upon which both sides had
come together.
sHONTs SAWS EVENING WORLD
MAD ACCURATE STORY.
Mr.. shonts did not so into detail as
TO these facts. He raid OF the general
story:
The story As published II In sub.
stance correct
Chairman WILCOX discussed the ques.
ton at some length In an interview In
whlsh he went over what no yesterday