The Washington herald., 1914-05-01
new HAVEN FAILS
! TO give ACCOUNT
i. c. c. Unable to Learn What
Use Was Made of $4,000
Expenditure.
MEMORIES SEEM VACANT
Diamond Jim" Brady. Who Will
Testify. Will Be Asked About
New York Politicians.
MEMORIES SEEM VACANT

| The Interstate Commerce Commission
continuing its inquiry yesterday into the
financial affairs Of the New Haven Rail-
road under the old MANAGEMENT. sought
In vain to learn something Of the de-
tails Of an expenditure of $4,000 in con-
rection with the securing OF pier right
in New York City. back In ls0.
This expenditure was charged on the
books Of the Quintard Iron Works a.
repairs on a steamship. and presum-
ably that company was later reimbursed
by the New Haven. The only connec-
tion between the New Haven and the
QuIntard Iron Works seems to have been
that Stevenson Taylor. the president OF
| the latter. was a close friend OF Presi-
dent Mellen. Of the New Haven. NJ.
Taylor testified yesterday that John II.
Mckay, general counsel for repairs, had
suggested that the item be charged by
the iron works as repairs on a steam
ship.
Cannot Recall Details.
Mr.. Taylor could not recall any Of the
details OF how this money had been used
He was under the impression that the
expenditures were necessary in order to
offset opposition by members OF the New
York board OF aldermen. He recalled
that the late President MCGOWAN, Of the
board OF aldermen, had attacked the re-
sponsibility OF the United States Trans
portation Company, the New Haven sub
sidiary, which was seeking TO obtain the
pier rights. Mr.. Taylor apparently did
not intend to reflect in any way upon
President McGowaL personally.
The commission gathered further facts
in regard to the purchase by the New
HavefHof the westchester and Portches-
ter trolleys. In the case OF the latter
it was shown that the New Haven paid
to William c. Gotshall. for the surren-
der OF his rights. the sum of sl.0S5, 600
while the assets of the company amount
ed to about $1,000 in real estate
James p. Mcdonald. a contractor. tes-
titled he had received $50. 600 for the sur
render Of his contract to construct the
WestChester road. Mr.. Mcdonald seemed
to regret that he had not got more out
of the transaction. He Acknowledged on
the stand that IL he had suspected that
the New Haven road was back of the
negotiations to acquire the westchester
it would have cost them $4,000 for the
contract
Brady VIII Testify.
Diamond Jim" Brady has been sum-
mOned as a witness by the commission.
He sat all through yesterdays hearing.
scintillating restlessly in his seat The
commission. II is intimated, hopes to be
able to develop some interesting infOrma-
tion from Mr.. Brady, possibly relating
to the New York politicians.
Frank S. Fowler. the examiner of the
commission. in his testimony said the
New Haven had piled up a floating in
debtedness OF S33J 900 by June 90 1872,
although ten years before II had none.
In ten years. Fowler said. the books
showed the New Haven ran behind some
thing over $4,000 90. but that notwith-
standing this IL paid out $500 900 in divi
dends. The bonded Indebtedness, said Mr..
Fowler. increased during the same period
from S25,OUo.OO0 to S17s.0oo.OO0 Its capi-
talization increased from sl7.Oco, 900 to
SI3S, ,000,Oa. Mr.. Fowler added that the
books showed that the loss to the New
Haven on the Westchester road for the
fiscal year which ended June 30. 1913. was
81, ,405,OC0.