New-York tribune., 1913-10-01
FIRST WITNESS CALLED
IN |NTERBOROUCH SUIT
M. NJ. Fisher, Secretary, Tells
How 1907 Balance Sheet Was
"Buried" by Directors.
VENNER REQUEST TABLED
Auditor of Company Says Sub
sidiary Lines Were Carried
First at $1,532,000,
Then at $4,000.

J. A Hodge. attorney for the Cont
mental Securities Company in its action
against the Interborough Rapid Transit
Company and others. which is being tried
before Justice Van Siclen in the Supreme
Court. Brooklyn. called the first witness
10 the stand yesterday afternoon.
The morning was spent reading into the
record testimony which August Belmont.
one Of the defendants. had given several
years ago. but admission Of testimony
| given by other Interborough officials was
refused because they were not party de-
| PENDANTS and were ready to testify
The first witness Morris NJ Fisher. said
he had been secretary of the Interborough
since May. 1904. He testified that the di-
rectors decided November 6. 1907. not to
give out the balance sheet for the fiscal
year ending June s, 1907, and that De-
cember ls 1907, when letter was re-
| ceived from Clarence II. Venner asking
! for the sheet they voted TO file the COM
munication without further consideration.
Hodge then told the court that he
, would like TO see minutes of the
! board made at meetings prior 10 Novem-
| ber, 1907. Delaney Nicoll, counsel for
| the 1nterborough. replied that Hodge had
no right TO see any books other than those
ne had subppnaed. but he would agree to
show them II he were allowed to see the
! books Of the Continental Securities Com
/ pany. Hodge refused this. but explained
that the reason that he wished to see the
other books was to learn If they con-
tained anything pertinent TO the case.
Nothing could be more pertinent 10
the case" retorted Nicoll. than to learn
where Mr.. Venner got his stock In the
Interborough and when and how"
| Nicoll then cross-examined the witness,
who testified that he knew Venner at the
time of the meeting in December, 1901.
] to be president OF the Continental Sc
curities Company. that he knew his rep
utation as striker" as Nicoll called
/ him, and that this had been discussed
at the meeting before action was taken
on his communication.
Edward f. ]. Gaynor. auditor OF the
| InterbCrough since April. 1903, was ex-
amined by Hodge regarding the way the
ownership Of the stocks and bonds Of
the Pelham Park and City Railroad com
| panies were entered on the books OF the
Interborough. He said that they had
been carried as "l5.00O shares Of stock.
| plus cash disbursements--s1.53 532 COO" In
February. 1905, he came 10 the conclusion
that they were not in the proper account
and recorded them in the books by them
selves. at a value OF s32 900.
In reports to the Railroad Commission
ers they had appeared in a group OF
seven or eight investments. The Inter
| borough. Gaynor said. had owned about
| all the stocks and bonds OF the two rail-
roads prior to the time the property Of
the companies was sold under foreclosure
early last summer. and that the Inter-
borough practically owned all the fran
chises and assets now.
Hodge tried to induce Nicol to admit
that the value Of the assets OF the two
companies was really nothing. but Nicoll
declared that their franchises were worth
| 81. 10000 though the Interborough had
bought both franchises and assets for
s272. 600. The case was then adjourned TO
/ this morning
Among those in court yesterday were
| Cornelius Vanderbilt and Mr. and Mrs.
| August Belmont. Mr.. Vanderbilt left
| after the morning session. The only ex-
| element resulted from charges OF unfair
ness made by Mr.. Nicoll against Mr..
| Hodge while he was reading the Belmont
testimony into the record. He said that
Mr. Hodge read what questions he liked
and skipped the rest.