The evening world. [volume] (New York, N.Y.) 1887-1931, 1913-01-25
TRIPLE RAKE-OFF
FOR MORGAN IN
SUBWAY PLANS
Millions in Bond Deal Only a
"Starter" for Bankers
Profits.
TAKES SHARE OF ALL.
Digging Contractor Must Di.
vide With "Backer" and "Sup-
ply Man"--That's Morgan.
TAKES SHARE OF ALL.

). p. Morgan q Co's second BIZ rake
on IN The construction Of the city's new
subway 10 financing the subway con-
tractors. whbch pront has been est
maked at upwards Of -, 10000 consid-
cred BY itself This particular branch
OF the financing has already been -.
stsnsd to Harry p. Davispn. the olevw |
young member Of the Arm who not .
great w4Ais ago financed che contract
ing family Of Bradieys. rriously known
in the world OF nying DIRT ~ civilian
Bradley" Bradley Contracting Com
pany" and the bradley CARNEY Steers
Company"
The banking house At Broad and Wall
streets only begins to make money from
the new subways with tho ,Ooo
cleanup in banking profits from the pr!-
vate purchase Of Si7oooo.o 900 Of per cont.
marlborough bonds. backed by the city's
credit q the exceedingly low price Of
d IL which same bonds viii he redeem
able At 10. This might be considered a.
the foundation for tho pyramid Of prof
Ne to follow II the big grab goes
through tho Public Service Commission
and tho Board OF Estimate.
Then there u the third great harvest
Of indirect pront accrunG to J. Pierpont
MorGAn 4 Co. from the vast quantities
OF cement and steel used In tho con-
struction OF the underground tubes, and
the steel bought for rails and trains. No
contractor will DO able to buy steel and
cement whose credit II not satisfactory
TO tho United States Steel Corporation
and It's cement subsidiaries. II looka
IKE q Morgan Job. these new subways.
from sub-cellar to roof
CONTRACTOR MUST NAVE CON.
FiOENcG OF MORGAN.
In considering the amount Of gain J.
p. Morgan & Co. will draw down
through its chain Of local trust oom.
panies. state and national banks frun
financing the subway contractors there
must FIRST be considered the amount ~
money that goes into the actual con-
struction OF the new subways. Accord
ing 10 the last abridged edition Of the
McAneny report bearing date OF May
| e, 1912, which heather doubters arc told
to look upon as Holy Writ. the est-
mated cost OF the construction OF the
new subways In see s6s. 30. or a quarter
OF billion dollars This figure does
not include N7.O0O. 900. which In the esti.
mated cost Of equipment.
To get into speaking acquaintance
with this SEC. SIS. 900. of which SlS2 SIS, 200
10 lodged In tho city's strong box. and
esO.OOO.00o. being a portion of the rem-
nants In the Golfers OF tho two traGStlon
companies after J. =. Morgan 4 CO. has
subtracted its banking profit previously
referred to. tho subway CONTRACTOR
have to be financed while they are carry
ing the load OF cost Of labor and mater
ial. Wisdom In the ways OF modern
business would counsel these contrac.
tors to md a financial hsrbor where
young Mr.. Dawson or one OF his saso.
ciates u Collector OF the Port. AZ such q
connection would carry with II. provided
such q connection could b made. the
necessary credit 70 obtain the very ma
teriais which enter 20 largely into the
building Of subways-steel and cement
Il vail be recalled that J. Pierpons
Morgan Or. testified before the Con-
Sressionai Committee investigating the
Money Trust:
~ have known . man 70 come
iato my once ana have 6ivsl
him Q check for Q ,nillion dollars
when knew ne had not . cent N
the world. The nrst thing TO eon-
slider In commercial credits 10
character and then money or prop
sxty. 4 nan I 40 not trust oould
not get money from me on all the
bonds In Ohrtstsndom."
HOW BANKERS FINANCE SUCH
BIG CONTRACTS.
An Evening World reporter aeekiEi
bedrock information as to how contrlc,
tors are financed by private bankers to-
day visited one Of the latter and frankl,
put the question.
Before any contractor can embari
upon his contract he must see "A clca
financial road out to the turning Of th'
last spadeful OF dirt" was The reply
I'VE money lenders remove the obstruc
ton and do so by two methods on
method Is to make a straightout loai