New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-02-26
He and Rockefeller Interests
Refuse to Accept Certificates
for Third Tracking
Manhattan IL"
MENACES DUAL SYSTEM
Interborough, B. R. T. and Pub.
lice Service Board Agitated
Over Sudden Brcal1-At
Sea on Plan to Over.
come Difficulty.

1 "s INV Gap OF tnunocr out OF
a clear sky objections made by George
j. Gould, president and one OF the prin.
cipai stockholders of the Manhattan
Railway Company, TO the certificates
for third tracking the lines of that cor
poration have held UP the signing OF
the contracts for the dual transit sys-
tenn
! The serious nature Of the protest u.ss
manifest yesterday by the agitation OF
members IL the Public Service Com.
mission and of the Board Of Estimate
Corporation Counsel Watson entered
into buried consultation with George
:. Coleman, counsel for the commits
sion, and Richard Reid Rogers. counsel
for the Interborougli Rapid Transit
Company.
The situation is this: The Manhattan
Elevated company. which owns the clc-
vated lines in Manhattan and The
Bronx, has a perpetual franchise
! These lines arc held BY lease for T99
years by tho Intcrborough Rapid Tran
sit COMPANY. which is to enter into nc
transit contracts with the city. BE-
cause the Manhattan company owns
tho elevated lires II was considered
necessary that it enter into the agree
ment with the city for the third track.
I ing TO be done as part of the dual
system.
John D. Rockefeller In II.
President Shonts OF the Interboroush
said last night that every step in the
framing Of the certificates for third
tracking was presented 10 Mr.. Gould
and to Mr. Gates. the other principal
stockholder.'
The reference is 10 Frederick T.
Gates. financial representative Of John
D. Rockefeller.
At the suggestion Of Alr. Gould. Mr..
: Shonts says. the regular counsel for
the company advised every step and
asreed to the certificates. The board OF
directors Of the Manhattan promptly
rejected the certificates upon the ad-
vice OF r. L. Chadbourne. OF Chad
bourne & Shores. personal counsel for
Mr.. Gould.
AS the Inter thorough has all along
taken the position that i, would not
enter into any contract for the con-
I struction or operation Of more subways
unless IL was accompanied by an agree
ment for extending the Manhattan cle-
waited lines the failure OF the Manhat-
tan to approve the certificates has put
a hurdle directly in the path Of exc
cutting the contracts How difficult q
hurdle il is has not yet beon deter
mined. hut any delay always opens the
possibility Of the entire proposition foi
. dual system falling through.
Colonel Timothy S. Williams, presi-
dent OF the Brooklyn Rapid Transit
Company. and George d. Yeomsns. its
| counsel hurried over TO the offices OF
the Public Service Commission yester-
dav afternoon when they heard OF the
hitch. They were much agitated, but
would not talk Of the latest develop
ment in the situation. The Brooklyn
Rapid Transit Company is now paying
S1OO 600 a month in interest for none,
borrowed to carry out the proposed
contracts. II is said BY those In posi-
t,on 20 know that it Will not. continue tc
carry this load should the contracts be
held lid for any extended period OF
time II il withdraws, the entire
scheme will have to be reconstructed.
Gould Denies Sale Offer.
AIR. Gould emphatiCslly denied last
night that he had offered to sell ms
large stock holdings in the Manhattan
70 tbe Interborough at 175. The mar
ket price Of the stock is now l"-.
"a story has come from several
sources that you have offered your
stock 70 the Interborough at No. MI
Gould was told.
81 have not offered my stock Tor SAFE
| a.. any nrice." the president OF the Man
lbattan replied NO one Is quahned 70
m.ks q suggestion that my stock Is fo'
sale"
r. l.. Chadbourne. personal couiise'
,or Mr.. Gould, said his client had ASKED
him for an opinion on the certincates
and that he had advised against thei'
occentance. He would not give the
Grounds for his opinion unless Mt
could would consent to his wing
them. Mr.. Gould refused to gi|e these
Grounds. He said the opinion was d
complicated document.
"I have no disposition to hold up tAe
contracts for an increased transit SER
vice in this city" said MIR. Gould. 'cui
i, Is clearly my duty as president OF
the Manhattan Railway Company te
nrotect the interests Of the stockhoid-
ers of that corporation. agreed with
the opinion Of Mr.. Chadbourne that the
certificates did not sufficiently safe
guard the interests Of our stockholders
personally took the opinion Of my
counsel before our directors and thej
agreed with me-.
Mr.. Gould AMI members OF his ian'
ily are the largest stockholders In the
| Centinued on Hfth page. second column.
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