New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-09-30
TO CALL MORGAN
In !. R. I. QUIZ
Legislators Also Will Ask
ShOntS TO Unravei the
Tracking SnarI.
COMMITTEE. SEEKING
YOUNG, IS BAFFLED
Former Director TeStifies About
Contracts lie Fought Against
in the Board.

j. ?. Morgan will be asked 20 tes-
tify before the Thompson Legislative
committee investigating the Public
Service Commission as TO what h.
knows about the alleged yellow dog"
fund in connection with the contracts
for third tracking the elevated lines Of
tho Interborough Rapid Transit ON
pany
President Shonts Of the traction
company, will also be asked his rea-
sons for wanting to give John F. Ste
vens the contract for the Undertaking
and extensions at fixed price Of II
per cent plus the cost. Il is alleged
that this profit was from sl,500.000 10
$2.000,000 excessive.
The name Of Mr. Morgan was
brought into the inquiry yesterday
when William A. Read. a director in
1913. when the contract first came up
testified that he. George W. Young and
Gardiner Vi. Lane, two other members
OF the board. opposed the proposed
contract in the executive committee Of
the board In spite Of their opposition
the contract vas sent TO the Public
Service Commission for APPROVAL
n was more than a year later. after
Mr.. Read and Mr. Young had retired
from the board. that the contracts for
the third-trackng was let TO p. J. Gil
lespie, Snare & Triest and Terry &
Tcnch on the 10 per cent basis.
When Mr. Read was put on the stand
yesterday he explained he and the two
other directors had defeated the APP
proval Of the contract in the INTERIOR
ough board and that it had been sent
10 the Public Service Commission in
spite Of them.
"Ilr. Lane and | were so anxious to
defeat this plan that We went to J. p.
Morgan, then Mr.. Morgan, jr.," said
the witness. eve enlisted his interest
and he said he would take the matter
up with President Shonts."
Then Mr.. Morgan had more power
in the marlborough than any one
else >" asked Senator Thompson
ooh. yes" was the reply. "He took
care Of our bonds and other securi-
ties"
What we want to know" remarkci
Senator Thompson us why the Inter
borough or Mr.. Shonts intended to give
S2,000,000 to any one for eighteen
months work. It seems to me that
Mr. Shonts. who is a public man. would
welcome an opportunity 20 come here
and tell us something about it"
Mr.. Lane, who lived in Boston, is
now dead The Thompson committee
has been unable TO serve subpoena
upon Mr.. Young. They have been IN
able TO find him in his Office here or
get track Of him at his home in DeSl.
n. J. Former Senator Merton +.
Lewis. counsel of the committee. sug-
gested that as the sergeant-at-arms
had failed 10 get any information
about Mr.. Young or his movement
Senator Thompson himself might visi.
his Office.
"WeU, if necessary. We will 20 70
Mr. Young's home in New Jersey 10
take testimony" said Senator Thonp-
son. las our powers are broad enough
for that"
The contracts we're not given -
John f. Stevens. as originally intend
ed, because he became involved IN
financial difficulties. Recently. before
the committee, he testified that he
might have been willing to take he
contract for ~ per cent.
The authority on the contracts yes
terday said that II there was an excess
sive profit of IN per cent it would
amount to about $l.500000. Capital
izing this at 6 per cent would mean
a yearly fixed charge of 100000; Of
this amount one-hgif would have TO
come out of the profits Of the city.